Retirement and Tax Planning

Retirement and Tax-Planning Attorneys in Haddon Heights and Lawrenceville

Estate planning is about more than deciding how you want your assets distributed upon your death. Estate planning strategies can also help you minimize your tax liabilities and prepare for your retirement.

For example, many retirees roll over their 401(k) accounts into an Individual Retirement Account (IRA) when they retire. As a result, the IRA becomes a significant portion of the estate of many retirees. However, an IRA is a very tax-sensitive vehicle. There are techniques, such as stretching out an IRA that can maximize the investment.

Another important consideration for retirees with IRAs is choosing a beneficiary. IRAs do not go through the probate process, but are instead distributed directly to the person you name as your beneficiary. There are many good reasons to name your spouse as your IRA beneficiary, and most people do just that. However, in the case of blended families, some people are concerned that their spouse will simply roll over the money to their own IRA and name their own children as the beneficiaries. One solution is to create a trust and name it as the beneficiary for your IRA.

A trust could also be named as a beneficiary in the case of a minor, disabled person, or irresponsible (spendthrift) adult child. However, in order to continue taking advantage of many of the tax benefits available, the trust must be carefully constructed to qualify as a Designated Beneficiary under regulations issued by the Internal Revenue Service. This is a very complex area of the law, but the knowledgeable and experienced lawyers at Sharp Bratton can handle any retirement and tax planning issue for you.

Our attorneys have a background in high-level tax planning for corporations and wealthy individuals. They use their experience to skillfully advise families on retirement and tax-planning issues to maximize their estates for themselves and their beneficiaries.

For more information or to schedule a consultation about retirement and tax-planning, contact a New Jersey Accredited Estate Planner at Sharp Bratton today.