Securing retirement before giving away assets

Posted by Angela Holliday Hansen Esq. | Apr 03, 2014 | 0 Comments

A recent article interviewed a certified financial planner in order to develop a plan for a hypothetical couple planning ahead for their retirement. This couple is different from many other Maryland residents who are approaching their 60s because they are not fearful of dying before they have exhausted their financial resources. This particular couple has no problem living life to its fullest while still having funds available to share with their family and any charities of their choice.

One strategy this couple used in order to preserve a portion of their assets for distribution during the probate process was for the wife to receive only a small Social Security benefit until she turned 70 instead of taking alesser amount at normal retirement age. This strategy allowed the couple to achieve a positive cash flow in excess of $18,000 before taxes. This amount would increase over the next few years in line with their income.

According to the financial planner, this couple is on the right track but needs to increase the funds they possess in cash accounts, currently only $6,000. It is recommended that a liquid fund be created that has a least an entire year's worth of expenses. Another recommendation is to set funds aside for funeral expenses. An estate that is comprised of nothing but retirement plans will present difficulty for the executors who are trying to cover those costs.

When a couple retires, there are many financial issues that may arise. It may be advisable for them to consult with an estate planning attorney who can review existing documents and suggest changes or additions that may be appropriate.

About the Author

Angela Holliday Hansen Esq.

Angela Holliday Hansen, Esq., is a former big firm corporate attorney who now practices family law in Rockville Maryland. Ms. Hansen oversees complex estate administration and drafts...

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100 Park Avenue
Suite 106

Rockville, MD 20850
301-517-5729
Mon, Tue, Wed, Thu, Fri: 09:00am - 05:00pm

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