While spring is normally a metaphor for rebirth, many financial advisers say it’s a good time to look into estate planning choices.
Make sure that your estate plans are in line with your current situation by verifying your coverage amounts, confirming and updating all of the beneficiary designations for your accounts and, as Brian Fricke
, president of Financial Management Concepts, suggested, converting
your retirement savings account to a Roth individual retirement account for tax benefits.
“Recently one of our clients inherited a substantial IRA from a relative,” Fricke recounted. “Unfortunately they didn’t name a designated beneficiary, so the proceeds will end up going through probate and the account will have to be liquidated within five years,” he says, adding that the client’s relative could have made his estate finances much easier to handle if he had switched the account to an inherited or stretch IRA.
You never know what can happen, so keep abreast of all your plans so that your money goes to the right place.
Photo Credit: jriro2000