You have spent many years saving for retirement, and you want to get the most out of your golden years. Regardless of whether you have one retirement account or several retirement accounts, you may want to pass on the balance of those retirement accounts to your heirs. When you pass away, most of your assets will be frozen until they go through the probate process. The assets in your estate need to be validated, your beneficiaries have to be properly identified, and your debts need to be paid. On the other hand, your retirement accounts may be able to avoid the probate process and certain situations. How can you circumvent the probate process and make sure your 401k, IRA, or 403b pass directly to your beneficiaries?

When Do Retirement Accounts Go Through Probate?

There are a few situations where your retirement accounts may end up going through the probate process. They include:

• If you name a minor as a beneficiary, your retirement accounts may go through probate.
• If you name a trust as a beneficiary, your retirement account could end up in probate.
• If you do not name any beneficiaries at all, your retirement accounts will end up in probate.
• If your beneficiaries have already passed away, your retirement accounts could go to probate.

The probate process can be long and expensive, so it is important for you to minimize the chances of your assets and hang up in probate court.

What Happens To Your Retirement Assets When You Pass Away

In a lot of cases, the owner of the retirement account is required to withdraw a certain amount of money from that account every year instead of simply withdrawing all of the money when they reach retirement age. When you pass away, the remaining benefits on your retirement account are probably going to be paid to the beneficiary under the original terms of your plan. It could be paid out as an annuity, or it could be paid as a lump sum distribution.

The beneficiary will submit a certified death certificate to the administrator of the plan, and the administrator should specify the amount of money in the retirement account, the types of benefits received, and whether the assets can be rolled over into a different retirement plan. It would be our pleasure to help you with that process.

Trust Dana Law Group for Help With Retirement accounts and Estate Planning

If you are looking for help with estate planning, we are here to assist you. We are the Dana Law Group, and it would be our pleasure to make sure your retirement accounts pass to your beneficiaries. Contact us today, and let us help you set up your estate plan.

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