Not affiliated with The United States Office of Personnel Management or any government agency

Not affiliated with The United States Office of Personnel Management or any government agency

Beneficiaries Named for Your TSP Supersede Wills and Trusts by, Aaron Steele

Do you know that your beneficiaries now supersede Wills and Trust? 

How are the Thrift Savings Plan (TSP) and most other government benefits similar? The reality is that payouts would not be delivered in line with a trust or a will after your demise.

Besides the TSP, beneficiary forms also control the Federal Employees Group Life Insurance (FEGLI

), FERS or CSRS retirement payments, and non-paid wages. There’s a regular sequence of priority for government benefits if there’s no beneficiary application or if the individual(s) designated on the beneficiary document have died. 

Benefits will be distributed in the following manner: 

The first benefit goes to the spouse. The second benefit will go to the children or child in equal portions (for each stirps) (excluding step-kids except if officially adopted). Afterward, the benefit goes to the parents. The one after that goes to the court-assigned administrator or executor of the property. The final benefit goes to the closest family member, contingent on the constitution of inheritance in the region where you lived at the time of your demise.

But hold on! I’m confident that you are not astonished to learn that the typical order has an exception. A legitimate court ruling (e.g., in cases of divorce) would trump the standard protocol of priority and a specified recipient in the event of FEGLI.

You can establish a trust with your TSP recipient if you’d like your TSP to disburse your fund after your demise to people or entities you’ve named in the trust. If you decide to go this route, ensure that you speak with an experienced lawyer with a retirement plan and trust legislation. If you wish to place your TSP account in the care of specific people, the simplest method is to name them on the Thrift Savings Plan-3 form.

If your specified recipient is a government employee or retiree, they can presently roll your TSP fund into their own. Non-federal partners will be awarded a “beneficiary participant account” and can keep their funds in the TSP if their deceased partners identify them as a beneficiary. If your designated recipient is not your partner, they can’t leave the fund in the TSP account, but they can choose an “inherited IRA.” 

It allows them to extend the payouts out depending on the life prediction in some conditions. Except they fulfill specific requirements, most non-partner recipients are not able to choose inherited IRAs and extend payments for the rest of their lives as per the SECURE Legislation. The fund has to be drained in 10 years consistently.

Whenever in doubt, seek the advice of your federal benefits lawyer or counselor. It shouldn’t be too tough if you live in the Washington region. Many people may not be aware of federal perks if they travel further away. Consider having a private conversation with a benefits specialist.

Contact Information:
Email: [email protected]
Phone: 3604642979

Disclosure:
Disclosure:Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.Confidential Notice and Disclosure: Electronic mail sent over the internet is not secure and could be intercepted by a third party. For your protection, avoid sending confidential identifying information, such as account and social security numbers. Further, do not send time-sensitive, action-oriented messages, such as transaction orders, fund transfer instructions, or check stop payments, as it is our policy not to accept such items electronically. All e-mail sent to or from this address will be received or otherwise recorded by the sender’s corporate e-mail system and is subject to archival, monitoring or review by, and/or disclosure to, someone other than the recipient as permitted and required by the Securities and Exchange Commission. Please contact your advisor if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. Additionally, if you change your address or fail to receive account statements from your account custodian, please contact our office at [email protected] or 800-779-4183.

After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.

Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.

Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.

Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.

Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.

With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.

Aaron can help you and your family to create, preserve and protect your legacy.

That’s making a difference.

Disclosure: Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.

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