The Tax System
Retirement Plans
Estate Tax Reduction Choices
Summary of State Taxes
| Proper
coordination of the distribution of retirement plan benefits with
a trust provides the only means of accomplishing optimum tax planning
in many cases. It is more and more common with estates to find one
spouse owning or participating in a retirement plan that consists
of more than 50% of a couple's combined wealth. With individual retirement
accounts (IRAs), for example, designating your spouse as a primary
beneficiary without proper integration of plans will oftentimes result
in a tax increase of $345,000 or more on the subsequent death of your
spouse. Proper planning can prevent this from occurring.
Decisions related to payment of retirement plan benefits to you during life are also very important. Retirement plans can become exposed to income taxes, and estate taxes at the same time, and proper planning involves avoidance or reduction of many of these taxes. The frequency of payment (whether fast or slow) is also inextricably tied to these decisions and planning opportunities, and only with proper legal advice can you be assured of optimizing the effects of your retirement plan options and decisions. Decisions which may appear to create the best income tax result will often cause a substantial increase in estate tax, and vice versa.
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The Tax System | Retirement Plans | Estate Tax Reduction Choices | Summary of State Taxes |
