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Estate choices for retirees

On Behalf of | Jan 19, 2021 | Uncategorized

Many retirees should consider their estate plans so that their loved ones are taken care of after they pass away. Although some considerations are similar for everyone who makes an estate plan, retirees in Texas and elsewhere should evaluate a few specific things when making their estate plans.

401(k) accounts

Many retirees have 401(k) accounts that can be an asset in retirement. Such accounts provide retirees a tax benefit in their working years and provide penalty-free income in retirement. Many 401(k) plans require that accountholders designate a beneficiary that will receive the assets after the account holder passes away, and it is important that retirees designate one or more beneficiaries.


Workers for certain kinds of employers are entitled to pensions. This allows individuals to receive money for the remainder of their lives after they retire. However, some pensions also pass to certain beneficiaries after the pensioner passes away, and an experienced lawyer should know the rules of many pension plans when it comes to beneficiaries.

Home sales

Many retirees sell their homes so that they have more money in retirement and can move to a different location to spend their retirement. There may be tax consequences for selling a home, and the proceeds should be invested prudently. Legal and financial professionals can account for home sales in an estate plan so that retirees have access to capital and beneficiaries will be taken care of after the retiree passes away.


Trusts can be a great way for retirees to lower their taxable income in retirement. In addition, trusts can also provide retirees income in the present while beneficiaries are entitled to trust assets after the settlor passes away. As a result, retirees should speak to an experienced estate planning lawyer when establishing trusts and considering other estate planning methods.