What is the negative effect of my retirement plan assets passing to my estate?
A. Your retirement benefits could end up in your estate if: (1) your estate is the designated beneficiary, or (2) none of the designated beneficiaries named by you survives you. Designating your probate estate as the designated beneficiary of your retirement plans is often ill advised because your estate beneficiaries lose the opportunity to maximize income tax deferral relating to your retirement plan assets.
