Simplifying Retirement Benefits in the Estate Plan

Edward V. Atnally, (attorney, White Plains, New York) has recently published his article entitled Estate Planning and Retirement Benefits: An Approach Toward Simplification, Part I, Prob. & Prop., July.Aug. 2009, at 23.

The following is the introduction to the article:

Much has been said and written about the use of retirement plan benefits in the estate planning process, but little has been done to simplify the concepts and procedures involved. This article is designed to help practitioners provide guidance to their clients when dealing with retirement plans in estates of all sizes and complexities.

Part I of this article reviews the steps to be taken in smaller estates when there is not need for a trust arrangement and in more complex estates in which trusts are useful to provide for beneficiaries with special needs. Part II, which will appear in the September/October issue, will review the steps to be taken when credit shelter and marital deduction trusts are desirable to reduce estate taxes.  The planner’s goal is to avoid the payment of unnecessary taxes and especially income taxes by “spreading out” retirement plan distributions and related tax liabilities thereby enhancing the value of assets eventually passing to the plan beneficiaries.