Evaluating retirement needs against estate planning may require a balancing act. Potential estate assets may include retirement accounts, real estate and investments or securities. Yet with an array of estate planning instruments, such as wills and revocable and irrevocable trusts, an individual may not know where to start.
All aspects of estate planning are tied to the goal of retaining control over one's finances - even after one is incapacitated or deceased. We create wills in order that everyone knows the manner in which we would like to see our assets distributed. We also put together estate planning so that it's clear what we have as a part of our estate. And we name executors in order that we have someone we can trust to carry out our wishes.
All of us want to make certain that our wishes are carried out when we are no longer able to make those determinations for ourselves. Though we may have children or other relatives we depend upon to make those determinations for us, there are times when these individuals may not be up for such a duty.
Tax considerations often motivate individuals to create irrevocable trusts when it comes to estate planning purposes. We therefore wish to take every precaution when creating or modifying such a trust to make certain unintended tax consequences cannot be triggered.