Helping Your Family Claim Your Retirement Benefits After You Pass Away

Death is an inevitable part of life but it is not one most people like to think about. Unfortunately, when planning your financial future, you should also consider your death. While you may have money set aside for your burial expenses and your inheritance taxes, it is important for you to also think about your retirement benefits. After your passing, the members of your family may be able to file a claim for any outstanding benefits in the accounts. To make this emotional time easier, you should keep a list of the basic information about your retirement accounts, pension plans, and Social Security benefits. But before you make your list, look at some of the basic rules about what happens to these retirement benefits after you have passed away as well as how you can start organizing this list.

What Happens to the Retirement Accounts When You Die?

From a 401(k) to an IRA, there are many different retirement accounts for you to have to save for your retirement. Each of these accounts and pension plans should have a beneficiary on them. Unfortunately, a will will not cover these accounts. Naming a beneficiary will allow these accounts to be passed on directly to a person without the hassle or expense of a probate court. Some plans like the 401(k) and pension plans have laws that require that your spouse to be your beneficiary unless they have signed their rights away. IRAs and employer profit-sharing retirement plans allows you to name any beneficiary for your benefits.

Listing Your Retire Benefit Accounts

While it should not take long to make a record of your retirement plans and accounts, it will save your loved ones a great deal of trouble down the road. At a minimum, you should make a list of every account you have as well as whether you have received benefits from it or when you expect to receive them. Along with these accounts, you should also include the employer-sponsored plans or pensions, IRAs, and any self-employed 401(k)s, profit-sharing plans, or Keogh. For each account, you should also list the location of the plan statements, the name of the managing organization or financial institution, the account or identification number, contact information for any adviser or account manager, and whether you are receiving benefits. You should also list and describe your Social Security benefits, including those that are based on your earnings that may go to your family members after you pass away.

There are many different things you must do to plan for your financial future and the financial future of your family. For more information on planning what happens to your retirement benefits, call WeberMessick today!

Planning Your Retirement Benefits with WeberMessick

Want more information on planning your financial future? Contact WeberMessick today! Since 1984, WeberMessick’s team of CPA’s and financial advisors have been helping individuals and businesses throughout the Maryland and Delaware devise a plan for their finances. With a “client-first” philosophy, WeberMessick has been helping their clients achieve financial success. Whether it is through financial planning or our accounting services, WeberMessick is always here for you!

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