Sometimes,
naming a beneficiary can result in disaster. For instance, naming an “estate”
as beneficiary may result in probate proceedings in California when the plan
and other probate assets exceed $150,000 in value. In addition, naming an
improperly drafted trust as beneficiary could speed up distributions from the
trust. Finally, naming an older beneficiary could cause the plan to be
withdrawn more swiftly, thus minimizing the potential tax savings available to
the estate. To avoid these problems, individuals would do well to regularly
review their beneficiary designations, and retain competent estate planning
counsel for advice.
Contact our Redwood City Living Trust Attorneys with your questions.
NOTICE: While we would
love your business, we cannot represent you as an attorney until we are able to
determine that there are no conflicts of interest between yourself and any of
our existing clients. We ask you not to send us any information, (other than as
requested on the “Contact Us” page,) about any matter that may involve
you until you receive a written statement from us that we will represent
you.
DISCLOSURE
UNDER TREASURY CIRCULAR 230: The United States federal tax advice, if any, contained in
this website and associated websites may not be used or referred to in the promoting,
marketing, or recommending of any entity, investment plan, or arrangement, nor
is such advice intended or written to be used, and may not be used, by a
taxpayer for the purpose of avoiding federal tax penalties.
