Beneficiary Designation Form: Primary Beneficiary: Spouse Outright; Possible Disclaimer Options – Either outright to children, in favor of a Family Trust; or to a Trust solely for the benefit of Children (3 Pages)
This Form begins by leaving the Plan benefit outright to the surviving spouse. If the spouse accepts this designation, nothing further need be done. However, this Form also provides that should the surviving spouse disclaim all or any part of the Plan benefit, such disclaimed benefit passes to children outright. In the event the option of a disclaimer is desired, but the outright disposition to children is not desired, Alternative 1 provides that the Plan benefit shall pass to a Family Trust. The surviving spouse may be a beneficiary of a Family Trust, and the decedent’s Family Trust should be cross-referenced here. If, instead, it is desired that the disclaimer by the surviving spouse lead to a trust that is solely for the benefit of children, than Alternative 2 should be used. Alternative 2A directs the Plan benefit to a Trust already created by the participant; Alternative 2B provides for the creation of such a Trust. In Alternative 2A the appropriate cross-reference should be made; in Alternative 2B additional trust provisions, as desired, may be added. Note the inclusion of required minimum distribution directions in all discussions of payments to trusts.
This Form begins by leaving the Plan benefit outright to the surviving spouse. If the spouse accepts this designation, nothing further need be done. However, this Form also provides that should the surviving spouse disclaim all or any part of the Plan benefit, such disclaimed benefit passes to children outright. In the event the option of a disclaimer is desired, but the outright disposition to children is not desired, Alternative 1 provides that the Plan benefit shall pass to a Family Trust. The surviving spouse may be a beneficiary of a Family Trust, and the decedent’s Family Trust should be cross-referenced here. If, instead, it is desired that the disclaimer by the surviving spouse lead to a trust that is solely for the benefit of children, than Alternative 2 should be used. Alternative 2A directs the Plan benefit to a Trust already created by the participant; Alternative 2B provides for the creation of such a Trust. In Alternative 2A the appropriate cross-reference should be made; in Alternative 2B additional trust provisions, as desired, may be added. Note the inclusion of required minimum distribution directions in all discussions of payments to trusts.
Author:
Steven G. Siegel is president of The Siegel Group, a Morristown, New Jersey - based national consulting firm specializing in tax consulting, estate planning and advising family business owners and entrepreneurs. Mr. Siegel holds a BS from Georgetown University, a JD from Harvard Law School and an LLM in Taxation from New York University.
He is the author of several books, including: Planning for An Aging Population; Business Entities: Start to Finish; Taxation of Divorce and Separation; Income Taxation of Estates and Trusts, Preparing the Audit-Proof Federal Estate Tax Return, Putting It Together: Planning Estates for $5 million and Less, Family Business Succession Planning, Business Acquisitions: Representing Buyers and Sellers in the Sale of a Business; Dynasty Trusts; Planning with Intentionally-Defective Grantor Trusts; The Federal Gift Tax: A Comprehensive Analysis; Charitable Remainder Trusts, Grantor Trust Planning: QPRTs, GRATs and SCINs, The Estate Planning Course, The Retirement Planning Course, Retirement Distributions: Estate and Tax Planning Strategies; The Estate Administration Course, Tax Strategies for Closely-Held Businesses, and Tort Litigation Settlements: Tax and Financial Issues.
Mr. Siegel has lectured extensively throughout the United States on tax, business and estate planning topics on behalf of numerous organizations, including National Law Foundation, AICPA, CCH, National Tax Institute, National Society of Accountants, and many others. He has served as an adjunct professor of law at Seton Hall and Rutgers University law schools.
The Siegel Group provides consulting services to accountants, attorneys, financial planners and life insurance professionals to assist them with the tax, estate and business planning and compliance issues confronting their clients. Based in Morristown, New Jersey, the Group has provided services throughout the United States. The Siegel Group does not sell any products. It is an entirely fee-based organization.
Contact the Siegel Group through its president, Steven G. Siegel, e-mail: [email protected].
