SAMPLE BENEFICIARY DESIGNATIONS FOR SIMPLE ESTATE PLAN
john & jane doe ESTATE PLANNING
Life Insurance Beneficiary Designation
Each of JOHN DOE’S life insurance policies should have as its beneficiary the following:
Primary Beneficiary:
My wife, JANE DOE, if she is then surviving;
If JANE DOE is then surviving, but shall disclaim any portion of my account, then the disclaimed portion of the account is to be distributed to the Trustee of the Disclaimer (Bypass) Trust created under my Last Will and Testament.
Contingent Beneficiary: (choose one of following)
Either:
If JANE DOE is not then surviving, to the Trustee of each separate trust for issue established under my Last Will and Testament pursuant to Section ___ of Article ___, each trust to receive the share allocated to issue per stirpes.
Or:
If JANE DOE is not then surviving, in separate shares as follows:
1/3 to CHILD 1
1/3 to CHILD 2
1/3 to CHILD 3
Each of JANE DOE’S life insurance policies should have as its beneficiary the following:
Primary Beneficiary:
My husband, JOHN DOE, if he is then surviving;
If JOHN DOE is then surviving, but shall disclaim any portion of my account, then the disclaimed portion of the account is to be distributed to the Trustee of the Disclaimer (Bypass) Trust created under my Last Will and Testament.
Contingent Beneficiary: (choose one of following)
Either:
If JOHN DOE is not then surviving, to the Trustee of each separate trust for issue established under my Last Will and Testament pursuant to Section ___ of Article ___, each trust to receive the share allocated to issue per stirpes.
Or:
If JOHN DOE is not then surviving, in separate shares as follows:
1/3 to CHILD 1
1/3 to CHILD 2
1/3 to CHILD 3
IRA and Qualified Plan Beneficiary Designations
Each of JOHN DOE’S employee benefit plans should have as its beneficiary the following:
Primary Beneficiary:
My wife, JANE DOE, if she is then surviving;
If JANE DOE is then surviving, but shall disclaim any portion of my account, then the disclaimed portion of the account is to be distributed to the Trustee of the Disclaimer (Bypass) Trust created under my Last Will and Testament.
Contingent Beneficiary: (choose one of following)
Either:
If JANE DOE is not then surviving, to the Trustee of each separate trust for issue established under Last Will and Testament pursuant to Section ___ of Article ___, each trust to receive the share allocated to issue per stirpes.
Or:
If JANE DOE is not then surviving, in separate shares as follows:
1/3 to CHILD 1
1/3 to CHILD 2
1/3 to CHILD 3
Each of JANE DOE’S employee benefit plans should have as its beneficiary the following:
Primary Beneficiary:
My husband, JOHN DOE, if he is then surviving;
If JOHN DOE is then surviving, but shall disclaim any portion of my account, then the disclaimed portion of the account is to be distributed to the Trustee of the Disclaimer (Bypass) Trust created under my Last Will and Testament.
Contingent Beneficiary: (choose one of following)
Either:
If JOHN DOE is not then surviving, to the Trustee of each separate trust for issue established under Last Will and Testament pursuant to Section ___ of Article ___, each trust to receive the share allocated to issue per stirpes.
Or:
If JOHN DOE is not then surviving, in separate shares as follows:
1/3 to CHILD 1
1/3 to CHILD 2
1/3 to CHILD 3
SAMPLE BENEFICIARY DESIGNATIONS FOR ESTATE PLAN with tax planning
DOE ESTATE PLANNING
Life Insurance Beneficiary Designation
Irrevocable Life Insurance Trust Has Been Created:
Owner: BROTHER DOE, as Trustee of the Doe Irrevocable Trust dated January 1, 2011.
Beneficiary: BROTHER DOE, as Trustee of the Doe Irrevocable Trust dated January 1, 2011 (or his successor trustee).
Other Life Insurance Policies:
Primary Beneficiary: JOHN DOE and JANE DOE, as Co-Trustees of the Doe Family Trust dated January 1, 2011, and as may be amended from time to time, and their successors in trust.
Secondary Beneficiary: Spouse
IRA and Qualified Plan Beneficiary Designations
Each of JOHN DOE’S employee benefit plans should have as its beneficiary the following:
My wife, JANE DOE, if she is then surviving;
If JANE DOE is then surviving, but shall disclaim any portion of my account, then the disclaimed portion of the account is to be distributed to the Trustee of Trust B (Bypass Trust) under the Doe Family Trust dated January 1, 2011, and as may be amended from time.
If JANE DOE is not then surviving, to the Trustees of the separate trusts created under the Doe Family Trust dated January 1, 2011, and as may be amended from time; each trust to receive the separate, proportionate share allocated.
Each of JANE DOE’S employee benefit plans should have as its beneficiary the following:
My husband, JOHN DOE, if he is then surviving;
If JOHN DOE is then surviving, but shall disclaim any portion of my account, then the disclaimed portion of the account is to be distributed to the Trustee of Trust B (Bypass Trust) under the Doe Family Trust dated January 1, 2011, and as may be amended from time.
If JOHN DOE is not then surviving, to the Trustees of the separate trusts created under the Doe Family Trust dated January 1, 2011, and as may be amended from time; each trust to receive the separate, proportionate share allocated.
Assets Including Bank or Brokerage Accounts and Real Property
Except for small accounts, all bank or brokerage accounts other than IRAs and Qualified plans should be held: (1) in the individual name of a spouse; or if held jointly, (2) held as tenants in common (without right of survivorship).
Accounts should not be styled in joint names with right of survivorship.
If probate avoidance is desired, assets other than IRAs and Qualified plans must be owned by the trustee on behalf of the Family Trust B (Bypass Trust) by retitling assets as follows: “JOHN DOE and JANE DOE, as co-trustees (or their successor trustees) of the Doe Family Trust dated January 1, 2011, and as may be amended from time.”
SAMPLE LANGUAGE FOR QTIP TRUST FOR DESIGNATION AS BENEFICIARY OF A QUALIFIED PLAN
Special Provisions Regarding IRA and Qualified Plan Benefits. If the QTIP TRUST shall be the beneficiary of any benefits from a qualified plan as defined in Internal Revenue Code §401(a) or an individual retirement account (“IRA”) as defined in Internal Revenue Code §408(a), then Settlors direct the trustee to treat distributions from any qualified retirement plan or IRA as income of the QTIP TRUST to the extent of the greater of income generated or deemed to be generated by such plan or individual retirement account or the amount determined to be income under the Texas Trust Code. For purposes of determining income, fiduciary accounting principles shall be applied. In determining the amount of income of the QTIP TRUST to be distributed to the surviving Settlor with respect to the qualified plan or IRA benefit, the trustee shall determine such income so that in all events the surviving Settlor shall have a qualifying income interest for life as provided in Internal Revenue Code §2056(b)(7). The trustee shall not charge to income any expense properly chargeable to the principal portion of any distribution. In addition, the trustee shall have the right in its discretion to:
(a) Require the qualified plan trustee or IRA custodian to convert non-income-producing assets or low income-producing assets into income-producing assets or assets producing adequate income.
(b) Withdraw any part or all of the remaining qualified plan benefit or IRA, including, but not limited to assets sufficient to meet the required minimum distribution rules.
SAMPLE LANGUAGE FOR BYPASS TRUST FOR DESIGNATION AS BENEFICIARY OF A QUALIFIED PLAN
BYPASS TRUST WITH SPOUSE ONLY AS BENEFICIARY:
Distributions to Settlor’s Spouse.
If this TRUST B shall be the beneficiary of any benefits from a qualified plan as defined in Internal Revenue Code §401(a) or an individual retirement account (“IRA”) as defined in Internal Revenue Code §408(a), then the independent trustee shall treat distributions from any qualified retirement plan or IRA as income of such trust to the extent of the greater of income generated or deemed to be generated by such plan or individual retirement account or the amount determined to be income under the Texas Trust Code. For purposes of determining income, fiduciary accounting principles shall be applied. The trustee shall not charge to income any expense properly chargeable to the principal portion of any distribution. In addition, the trustee shall have the right in its discretion to:
(a) Require the qualified plan trustee or IRA custodian to convert non-income-producing assets or low income-producing assets into income-producing assets or assets producing adequate income.
(b) Withdraw any part or all of the remaining qualified plan benefit or IRA, including, but not limited to assets sufficient to meet the required minimum distribution rules.
To the extent necessary to cause Settlor’s spouse to be deemed and maintain the status as the sole “designated beneficiary” for the “required minimum distribution rules,” the independent trustee shall distribute to Settlor’s spouse an amount of income necessary to meet such rules.
After complying with the provisions of Section ____ above, the independent trustee may pay to or use for the benefit of Settlor’s spouse so much of the income and principal as the independent trustee determines will adequately provide for the health, education, support, and maintenance of Settlor’s spouse, taking into consideration his/her standard of living, adding any excess income to principal at the discretion of the independent trustee. In exercising the foregoing power to make distributions of principal, the independent trustee may, but is not required to, first take into consideration all other financial resources available to Settlor’s spouse and Settlor recommends that no payments of principal be made to Settlor’s spouse pursuant to the terms of this section while, in the independent trustee’s sole judgment, there are funds readily available for such purposes in TRUST A, QTIP TRUST, or in Settlor’s spouse’s own estate.
BYPASS TRUST WITH SPOUSE AND CHILDREN AS BENEFICIARIES:
Distributions to the Surviving Settlor. If this TRUST B shall be the beneficiary of any benefits from a qualified plan as defined in Internal Revenue Code §401(a) or an individual retirement account (“IRA”) as defined in Internal Revenue Code §408(a), then the independent trustee shall treat distributions from any qualified retirement plan or IRA as income of such trust to the extent of the greater of income generated or deemed to be generated by such plan or individual retirement account or the amount determined to be income under the Texas Trust Code. For purposes of determining income, fiduciary accounting principles shall be applied. The trustee shall not charge to income any expense properly chargeable to the principal portion of any distribution. In addition, the trustee shall have the right in its discretion to:
(a) Require the qualified plan trustee or IRA custodian to convert non-income-producing assets or low income-producing assets into income-producing assets or assets producing adequate income.
(b) Withdraw any part or all of the remaining qualified plan benefit or IRA, including, but not limited to assets sufficient to meet the required minimum distribution rules.
To the extent necessary to cause the surviving Settlor to be deemed and maintain the status as the sole designated beneficiary” for the “required minimum distribution rules,” the independent trustee shall distribute to the surviving Settlor an amount of income necessary to meet such rules.
Distributions to the Surviving Settlor, Settlors’ Children, and Descendants of Deceased Children. After complying with the provisions of Section ___ above, the independent trustee may pay to or use for the benefit of any one or more of a group consisting of the surviving Settlor, Settlors’ children, and the descendants of any deceased child of Settlors, so much of the income and principal as the independent trustee determines will adequately provide for the health, education, support, and maintenance of any of such beneficiaries, taking into consideration each beneficiary’s standard of living, adding any excess income to principal at the discretion of the independent trustee. In exercising the foregoing power to make distributions of principal, the independent trustee may, but is not required to, first take into consideration all other financial resources available to each beneficiary, the respective needs, capabilities and requirements of each beneficiary, and the need to conserve the trust estate to provide for the surviving Settlor during his or her lifetime; provided, however, that Settlors recommend that no payments of principal be made to the surviving Settlor pursuant to the terms of this section while, in the independent trustee’s sole judgment, there are funds readily available for such purposes in TRUST A, QTIP TRUST, or in the surviving Settlor’s own estate. Payments to Settlors’ children and descendants of a deceased child of Settlors shall not be used to satisfy any legal obligation of support of Settlors, need not be equal, and shall not be charged against their respective shares of the trust. The deceased Settlor’s primary concern is for the well-being of the surviving Settlor.
SAMPLE LANGUAGE FOR TRUSTS FOR DESCENDANTS FOR DESIGNATION AS BENEFICIARY OF A QUALIFIED PLAN
Special Provisions Regarding IRA and Qualified Plan Benefits. To the extent not otherwise provided herein, if any trust shall be the beneficiary of any benefits from a qualified plan as defined in Internal Revenue Code §401(a) or an individual retirement account (“IRA”) as defined in Internal Revenue Code §408(a), then Settlors direct the trustee to treat distributions from any qualified retirement plan or IRA as income of such trust to the extent of the greater of income generated or deemed to be generated by such plan or individual retirement account or the amount determined to be income under the Texas Trust Code. For purposes of determining income, fiduciary accounting principles shall be applied. The trustee shall not charge to income any expense properly chargeable to the principal portion of any distribution. In addition, the trustee shall have the right in its discretion to:
(a) Require the qualified plan trustee or IRA custodian to convert non-income-producing assets or low income-producing assets into income-producing assets or assets producing adequate income.
(b) Withdraw any part or all of the remaining qualified plan benefit or IRA, including, but not limited to assets sufficient to meet the required minimum distribution rules.
To the extent necessary to cause the current beneficiary of a trust to be deemed and maintain the status as the sole “designated beneficiary” for the “required minimum distribution rules,” the independent trustee shall distribute to such current beneficiary an amount of income necessary to meet such rules.
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