When you sit down in Atlanta to do your retirement plan, make sure you take your estate plan into consideration, and vice versa. Likewise, if you make significant changes to your estate plan, make sure you make the corresponding changes to your retirement plan as well and vice versa.
In order to understand why the two go hand in hand, consider the subject matter of each — your money and assets. Your retirement plan is based on assets and money that you plan to life off of when you reach retirement age. Your estate plan is a plan that proposes to dispose of all assets that you own at the time of your death. Assets that are marked for use in your retirement plan may, or may not, be available to pass down to family members or loved ones upon your death. On the other hand, assets that you place in a trust as part of an estate plan may not be available to be used during your retirement. As a result, careful consideration should be given to both your estate plan and retirement plan when creating either one.
Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.