Trusts and Retirement Funds: Should They Meet?

A significant portion of wealth in an average estate typically exists in some form of qualified or non-qualified retirement plan.  Most people are generally aware of the common parameters governing their plans, such as contribution limitations, penalties for early withdrawal and so forth.  What most retirement plan participants overlook are the rules governing distributions after death.

Given that most estate plans include some form of trust agreement that contains the plan’s operative components, it is crucial to be aware of the requirements for trusts when they are named as a beneficiary of a retirement plan.  The article, “Designating A Trust As Retirement Beneficiary,” offers a very concise introduction to these requirements.  As always, professional counsel is imperative when addressing specific concerns about your estate plan.

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