Coordination of Your Estate Plan and Retirement Plan

Many people are confused about the difference between estate planning and retirement planning.

Estate Planning is the process of controlling what you own during your lifetime, providing for your potential disability, and then leaving what you have to whom you want, when you want, and the way you want, all at the lowest possible cost to your loved ones.

Retirement Planning is a process which determines your financial goals and needs after retirement.

Retirement Plan Assets (such as IRAs) must be handled differently from other kinds of assets for estate planning. Retirement plan assets are unique and should address the following issues:

• Include a deferred income tax component that must be considered.

• Are subject to rules regarding distribution which must be considered when developing an estate plan; and

• Each plan is different in that they are controlled by the terms of their own specific plan.

Rules on Distributions from retirement plans are controlled by a combination of factors:

• The terms of the retirement plan; and

• The minimum distribution rules of the Internal Revenue Code.

Your Professional Team of Experienced, Qualified, and Caring Advisors can act to coordinate your retirement plan with your estate plan.

Your Attorney (Preserver of Wealth) must evaluate the impact of your estate and income taxes and balance many factors to meet planning goals and objectives for your disability and after your death.

Your Financial Advisor (Manager and Grower of Wealth) needs technical and counseling experience in retirement planning.

Through Collaboration, each member of your Professional Team can create a strategy most appropriate for you with YOU at the Foundation. Unfortunately, most advisors do not communicate with one another on a regular basis. It is important that your attorney and financial advisors work to combine their experience and expertise to serve you in an effective and pleasant fashion.

Your estate plan and your retirement plan must be coordinated with and consistent with one another to ensure that both will enable you to meet your specific needs and objectives.

This information was prepared by Lena Barnett & Associates, LLC and is intended only to provide general information. It is neither offered nor intended for use as legal advice, nor is it a substitute for a consultation with an attorney.

© 2006 Lena Barnett & Associates, L.L.C. All Rights Reserved

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