Of particular importance are beneficiary designations for retirement accounts and other tax-deferred accounts.
For many people in Michigan, their retirement account is the single-largest account in a person’s estate, and far too often circumstances change and beneficiary designations become stale or an estate planner fails to provide sufficient assistance in the completion of beneficiary designations so as to avoid a tax and financial disaster for beneficiaries. Choosing the right beneficiary means knowing what happens to the retirement account when a person dies.
Spouses enjoy special rights – especially in connection with qualified plans covered by the Employee Retirement Income Security Act of 1974 (ERISA). In contract, IRAs and plans sponsored by public employers and religious organizations are not covered by ERISA.
What may seem like a simple process of completing a fill-in-the-blank beneficiary designation is a much more complicated endeavor. The wrong designation can have catastrophic results. Naming a trust as beneficiary is especially problematic.
To learn more about naming beneficiaries of retirement accounts in Michigan, give our experienced Michigan estate planning lawyers a call today. We look forward to answering your questions, and assisting your family.