Daniel Timins Esq CFP The Law Offices of Daniel Timins 477 Madison Avenue Suite 240 New York NY 10022 212 6833560 wwwTiminsLawcom The right person gets the money Tax Savings ID: 640014
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Choosing the Right Beneficiary (for the Right Reasons)
Daniel Timins, Esq.,
CFP
®
The Law Offices of Daniel Timins
477 Madison Avenue, Suite 240
New York, NY 10022
(
212) 683-3560
www.TiminsLaw.comSlide2
The right person gets the money
Tax Savings
You control your estate’s destinyYou protect your family
Why the Right Beneficiary MattersSlide3
Joint AccountsRetirement Plans
Life Insurance
TOD (Securities) & ITF
(Bank) AccountsWills & TrustsWhen Beneficiaries ApplySlide4
Retirement & Life Insurance is protected from your creditors…unless your Estate is the
Bene
Retirement Plans MUST be distributed within 5 years
Court, Attorney & Accountant fees are increasedTakes more time to collect
funds (because of Probate)The Worst Beneficiary: Your Estate
!Slide5
Younger spouse can transfer to her IRA and use her Required Minimum Distribution rate
RMDs
increase as you age: 71 year old = 3.77% RMD93 year old = 9.6% RMD
Younger spouse can defer taxes / withdraw slowlyOlder spouse can keep it in deceased spouse’s IRAName a “See Through” Trust
as Contingent BeneCreates an “Inherited IRA” using each child’s life expectancyBest Retirement Plan Beneficiary:
Your
SpouseSlide6
Proceeds may avoid estate taxes & grows estate tax freeSpouse can still have full access to funds
Can set terms for children
“No drug dependency”Pay in incrementsSeparate from child’s marital assets
Spouse / child doesn’t even need to be a Contingent Beneficiary
Best Life Insurance Beneficiary:A TrustSlide7
The Good:Avoids Probate (easy to transfer)
Survivor can “Renounce” other spouse’s half
If between spouses: Considered 50% / 50%The Bad:Usually more taxes at survivor’s death
If between non-spouses: Assumed 100% / 0%Source of friction between siblingsThe Low Down on
Joint AccountsSlide8
Easy to collect
All avoid Probate
(but not estate taxes)“Private” Transfers
Less contention between children siblingsBest Beneficiary for Other Assets:
TOD, ITF, Revocable Trusts