Retirement Planning

Retirement planning is something best done with a qualified and licensed financial professional. The firm does not render financial advice nor do we manage assets. We work closely with a number of talented and accomplished retirement planning specialist and regularly refer our clients to them.

There are, however, occasions on which retirement planning intersects with a client’s estate planning and/or charitable giving goals. The firm frequently advises clients on these aspects of their retirement plans.

Estate Plan for your Retirement Plan

Did you know that if you die with unspent retirement assets, there is a way for you to leave them to your heirs in a protected way, so that the creditors of your heirs (including a divorcing spouse) will not be able to reach those assets? We often help clients create protected trust shares for retirement assets as part of their overall estate plan.

Did you know that instead of paying out retirement plan assets upon your death as a lump sum (and therefore facing a large income tax liability) there is a way to stretch out retirement plan assets for the life of your spouse or other heirs so that the assets can continue to grow tax deferred? There is.  We can help advise on these elections and we can assist in creating a special kind of trust that complies with IRS regulations so that a co-called IRA Stretch Out
can be protected for beneficiaries. This is a terrific way to help jump start your
children’s or grandchildren’s own retirement.

Charitable Giving

Ben Franklin once said, “The only thing in life that is certain is Death and Taxes.” This truth is especially harsh when it comes to retirement assets. When someone dies without proper estate planning for their retirement plan assets, these assets can be wiped out by the double hit of estate and income taxes. Because of their vulnerability to both the estate tax and income tax regimes, retirement assets can be the best type of asset to fund a charitable bequest. To determine whether this strategy is relevant or appropriate for you, we suggest you consult an attorney who is an expert in this area. We have several in our firm.

Creative Retirement Planning

Did you know that you can invest retirement plan assets in investments that are non-traditional, such as real estate or even private companies? With the help of certain investment firms like Pensco Trust Company (www.penscotrust.com), we can help you establish a Self Directed IRA, which allows you to invest in other asset classes. The IRS regulations in this area are tricky so be sure to consult with a qualified professional before undertaking any changes.

If we can assist you in your retirement planning, please do not hesitate to contact us at (617) 716-0300 or info@squillace-law.com.