Designating Beneficiaries for Retirement PlansDesignating Beneficiaries for Retirement Plans

Almost every estate-planning client who walks through my door owns at least one qualified retirement plan asset, be it a typical 401(k) plan with her current employer or a traditional individual retirement account. A large percentage of this group has a majority of their net worth “tied up” in such accounts. As an estate-planning attorney, it’s my job to educate these clients on the most tax-efficient way to transfer such wealth to their beneficiaries, while taking into account and balancing such efficiency with their non-tax objectives. Sometimes, that can be quite a challenge.  

Most estate-planning clients elect to have a revocable trust as their main estate-planning document. We all know the drill—we explain to our clients that revoca...