Timothy Sumer

Many assets allow you to name a beneficiary, that is, whom you would like to receive the asset in the event of your death. Life insurance policies and retirement accounts are common examples but some other account types such as bank accounts and non-retirement investment brokerage accounts also may allow you to name beneficiaries through a Pay on Death (POD) or Transfer on Death (TOD) form. While these forms are generally straight forward, they often lead people to make inadvertent errors. We have identified six common mistakes people make when preparing for the distribution of their assets after death. This is PART THREE OF SIX. Leaving retirement assets to a trust or estate. While wills and trusts can be effective planning vehicles, unfortunately, they are not always the most tax-advantageous when it comes to retirement accounts. While individual beneficiaries can choose life expectancy distributions which allows them to spread the tax liability over their lifetime, m...