How Estate Planning Can Help Fund Your Retirement
One of the biggest fears that aging parents with little retirement savings have is, who will underwrite the cost of their "golden years"? Most parents don't want to burden their children with the costs of long-term care or funeral expenses; this is where intelligent estate planning comes in.
In this post-subprime mortgage crisis world, many people are starting all over, and plenty of those people borrowed from themselves. Restoring funds in 401(k)s, IRAs, and other sources like mutual funds may not be easy to do, but every penny counts. Anyone who can should continue to put away what they can into their retirement fund.
Another way to make sure your children won't have to carry you financially is to defer the taxes on your IRA by using the stretch option. This will allow you to maintain what is already in your IRA without paying taxes on it until the funds are distributed to those listed in your will. You'll want to mention this idea to your Irvine estate planning attorney so that she can guide you through the steps.
Lastly, you can create an irrevocable life insurance trust. To do this, your attorney will help you set up a trust in which the life insurance policy will be held, and upon your passing, the insurance monies will be distributed in a manner suitable to handling the costs of your funeral and other proceedings. They will also help ensure that a surviving spouse and children have something for their financial future.
The Flanigan Law Group provides Southern California residents with personal attention for estate planning, administration and litigation legal services. When disputes between families, arise, they are very successful in resolving legal estate issues quickly and efficiently while preserving financial and emotional resources. Contact the Flanigan Law Group at 949-450-0042.