1. Choosing the Right Beneficiary (for the Right Reasons)
Daniel Timins, Esq., CFP®
The Law Offices of Daniel Timins
477 Madison Avenue, Suite 240
New York, NY 10022
(212)

2. Why the Right Beneficiary Matters
The right person gets the money
Tax Savings
You control your estate’s destiny
You protect your family

3. When Beneficiaries Apply
Joint Accounts
Retirement Plans
Life Insurance
TOD (Securities) & ITF (Bank) Accounts
Wills & Trusts

4. The Worst Beneficiary: Your Estate!
Retirement & Life Insurance is protected from your creditors…unless your Estate is the Bene
Retirement Plans MUST be
distributed within 5 years
Court, Attorney & Accountant
fees are increased
Takes more time to collect
funds (because of Probate)

5. Best Retirement Plan Beneficiary: Your Spouse
Younger spouse can transfer to her IRA and use her Required Minimum Distribution rate
RMDs increase as you age:
71 year old = 3.77% RMD
93 year old = 9.6% RMD
Younger spouse can defer taxes / withdraw slowly
Older spouse can keep it in deceased spouse’s IRA
Name a “See Through” Trust as Contingent Bene
Creates an “Inherited IRA” using each child’s life expectancy

6. Best Life Insurance Beneficiary: A Trust
Proceeds may avoid estate taxes & grows estate tax free
Spouse can still have full access to funds
Can set terms for children
“No drug dependency”
Pay in increments
Separate from child’s marital assets
Spouse / child doesn’t even need
to be a Contingent Beneficiary

7. The Low Down on Joint Accounts
The Good:
Avoids Probate (easy to transfer)
Survivor can “Renounce” other spouse’s half
If between spouses: Considered 50% / 50%
The Bad:
Usually more taxes at survivor’s death
If between non-spouses: Assumed 100% / 0%
Source of friction between siblings

8. Best Beneficiary for Other Assets: TOD, ITF, Revocable Trusts
Easy to collect
All avoid Probate
(but not estate taxes)
“Private” Transfers
Less contention between children siblings