Careful retirement planning helps ensure you have the financial resources to fully enjoy your golden years and prepare for the future. But what happens to those assets when you pass away? You’ve spent a lot of effort building your wealth, which is why it’s important to integrate your estate planning with your retirement plans. With the help of a skilled estate lawyer, you can ensure your savings go to the people you choose and minimize the taxes your beneficiaries will have to pay.

3 Tips for Incorporating Your Retirement Savings Into Your Estate Plan

1. Name Beneficiaries

401(k) accounts, life insurance policies, and some other savings vehicles allow you to name a beneficiary to take over the account if something happens to you. However, the tax consequences and process for withdrawing the funds differs depending on whether or not the beneficiary is your spouse or another family member, so speak to a knowledgeable attorney before naming an heir. Depending on your financial situation, they may be able to recommend a strategy that allows your investments to continue growing after your death.

2. Write a Will or Establish a Trust

Many people make the mistake of assuming their family members will know how to divide their assets after their death. Unfortunately, without writing a will or establishing a trust, your belongings, including your retirement accounts, will be distributed according to a formula that doesn’t take your actual wishes into account. Setting up a living trust can give you a great deal of control over your assets than a will, and may offer your beneficiaries significant tax advantages.

3. Diversify Your Accounts

Holding a variety of different accounts not only shields you from risk, it can also allow you to pass more of your wealth on to your family members. Some retirement accounts aren’t subject to income tax at all if they’re part of an inheritance, while some others may put your heirs into the top tax bracket. A skilled estate lawyer can help explain the advantages and drawbacks of different investment vehicles.

For over 130 years, the estate lawyers at MacVean, Lewis, Sherwin & McDermott, P.C. have provided generations of clients throughout the Hudson Valley with high-quality legal advice in a wide range of situations. With their personalized approach, you’ll always receive legal solutions and guidance tailored to your specific needs. Visit their website to learn more about how they can help you plan for the future, call (845) 343-3000 to speak with an estate lawyer today, and follow the law firm on Facebook for more tips and insight.