Saving for your future is a smart way to ensure your retirement will be properly funded in addition to the use of social security income, or in place of SSI. If you do not plan ahead and establish a Phoenix will or Phoenix trust, your loved ones may end up losing their inheritance that is left over in your retirement accounts! Find out why it is so important to include your retirement accounts in your estate planning.

Planning for Retirement Accounts in a Phoenix Will or Phoenix Trust

The most common types of retirement accounts used in this country are known as an Individual Retirement Account (IRA) and 401k. These two retirement savings programs are very similar yet quite different in the way they are structured. IRAs are commonly held by the individual and the account is not connected to a company or place of employment – because of this, most people who open IRAs do so because they are self-employed, are not offered benefits at work, are small business owners, or the 401k offered through their employer has too many contingencies. A 401k is a type of savings program offered through companies to their employees in which the employer usually matches some portion of the deposit. Both accounts come with big tax breaks, and both have minimum retirement ages. If the rules of these accounts are not followed, it could mean big fines for you and your beneficiaries.

When a Phoenix Will is Needed

There are my different circumstances when a Phoenix will needs to come into play. A will is a legal document that outlines your wishes in regards to the distribution of your property. The purpose of a Phoenix will is to maximize the probability that your estate plans will be carried correctly out when you pass. In the case of retirement accounts, it is essential to name who will get the funds from these accounts should you pass before they are spent. If you fail to outline your plan, the money may not reach your heirs at all.

Naming a Phoenix Trust as a Beneficiary

A Phoenix trust program offers you options beyond just designating who gets the money in your retirement accounts. This type of documentation allows you to not just name who gets the money out of your retirement accounts, but how it is spent. Phoenix trust programs are often a part of the existing Phoenix will and can protect your retirement accounts from debt collectors and settlements against you.

Need Help?

If you are not sure as to what legal document you currently have contact one of our professionals to help you with your estate planning. They will make sure you have all of your grounds covered and have the right legal documents that best suite your wants and needs.

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