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Crafting Your Legacy: Essential Estate Planning Tips for Textron Employees

Healthcare Provider Update: Textron, an aerospace and defense company, primarily uses UnitedHealthcare as its healthcare provider for employee health plans. In 2026, healthcare costs are anticipated to rise significantly, with many Affordable Care Act (ACA) marketplace insurers projecting premium increases. A combination of factors-including the potential expiration of enhanced federal premium subsidies-could lead to out-of-pocket costs skyrocketing for millions of consumers. For instance, without these subsidies, many individuals may face premium hikes of over 75%. States like New York and Arkansas are expecting the most severe increases, with some premiums rising by up to 66.4%. This trend underscores the rising burden of healthcare costs, making it imperative for consumers to strategize their healthcare expenditures ahead of 2026. Click here to learn more

Benefits of a will:

Distributes property according to your wishes
Names an executor to settle your estate
Names a guardian for minor children
Can create a trust

You've worked hard with Textron over the years to accumulate wealth, and you probably find it comforting to know that after your death the assets you leave behind will continue to be a source of support for your family, friends, and the causes that are important to you. However, we'd like to remind our clients from Textron that to ensure your legacy reaches your heirs as you intend, you must make the proper arrangements now. There are four basic ways to leave a legacy: (1) by will, (2) by trust, (3) by beneficiary designation, and (4) by joint ownership arrangements.

Wills

A will is the cornerstone of any estate plan. We suggest that our Textron clients have a will no matter how much their estate is worth, even if they've implemented other estate planning strategies. You can leave the property by will in two ways: making specific bequests and making general bequests. A specific bequest directs a particular piece of property to a particular person ('I leave Aunt Martha's diamond broach to my niece, Jen'). A general bequest is typically a percentage of property or property that is left over after all specific bequests have been made.

Typically, principal heirs receive general bequests ('I leave all the rest of my property to my wife, Jane'). With a will, you can generally leave any type of property to whomever you wish, with some exceptions, including:

Property will pass according to a beneficiary designation even if you name a different beneficiary for the same property in your will
Property owned jointly with rights of survivorship passes directly to the joint owner
Property in a trust passes according to the terms of the trust
Your surviving spouse has a right to a statutory share (e.g., 50%) of your property, regardless of what you leave him or her in your will
Children may have inheritance rights in certain states

Caution: Leaving property outright to minor children is problematic. You should name a custodian or property guardian, or use a trust.

Trusts

Another option we'd like to point out to our Textron employees is to leave property to their heirs using a trust. Trust property passes directly to the trust beneficiaries according to the trust terms. There are two basic types of trusts: (1) living or revocable, and (2) irrevocable. Living trusts are very flexible because you can change the terms of the trust (e.g., rename beneficiaries) and the property in the trust at any time. You can even change your mind by taking your property back and ending the trust.

An irrevocable trust, on the other hand, can only be changed or ended by its terms. This can be useful for our Textron clients who want to minimize estate taxes or protect their property from potential creditors. You create a trust by executing a document called a trust agreement (we suggest these Textron clients have an attorney draft any type of trust to be sure it accomplishes what they want).

A trust can't distribute property it does not own, so you must also transfer ownership of your property to the name of the trust. Properties without ownership documentation (e.g., jewelry, tools, furniture) are transferred to a trust by listing the items on a trust schedule. Property with ownership documents must be re-titled or re-registered. You must also name a trustee to administer the trust and manage the trust property. With a living trust, you can name yourself trustee, but you'll need to name a successor trustee who'll transfer the property to your heirs after your death.

Tip: A living trust is also a good way to protect your property in case you become incapacitated.

While property that passes by will is subject

to probate, property that passes by a trust,

beneficiary designation, or joint ownership

arrangement bypasses probate.

Beneficiary Designations

Property that is contractual in nature, such as life insurance, annuities, and retirement accounts, passes to heirs by beneficiary designation. Typically, all you have to do is fill out a form and sign it. Beneficiaries can be persons or entities, such as a charity or a trust, and you can name multiple beneficiaries to share the proceeds. You should name primary and contingent beneficiaries.

Caution: You shouldn't name minor children as beneficiaries. You can, however, name a guardian to receive the proceeds for the benefit of the minor child.

We suggest that these Textron clients consider the income and estate tax ramifications for their heirs and their estate when naming a beneficiary. For example, proceeds your beneficiaries receive from life insurance are generally not subject to income tax, while your beneficiaries will have to pay income tax on proceeds received from tax-deferred retirement plans (e.g., traditional IRAs).

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These Textron clients should check with a financial planning professional to determine whether their beneficiary designations will have the desired results. Be sure to re-evaluate your beneficiary designations when your circumstances change (e.g., marriage, divorce, death of beneficiary). You can't change the beneficiary with your will or a trust. You must fill out and sign a new beneficiary designation form.

Caution: Some beneficiaries can't be changed. For example, a divorce decree may stipulate that an ex-spouse will receive the proceeds.

Tip: Certain bank accounts and investments also allow you to name someone to receive the asset at your death.

Joint Ownership Arrangements

Two (or more) persons can own property equally, and at the death of one, the other becomes the sole owner. This type of ownership is called joint tenancy with rights of survivorship (JTWRS). A JTWRS arrangement between spouses is known as tenancy by the entirety in certain states, and a handful of states have a form of joint ownership known as community property.

Caution: There is another type of joint ownership called tenancy in common where there is no right of survivorship. Property held as tenancy in common will not pass to a joint owner automatically, although you can leave your interest in the property to your heirs in your will.

You may find joint ownership arrangements are useful and convenient with some types of property, but may not be desirable with all of your property. For example, having a joint checking account ensures that, upon your death, an heir will have immediate access to needed cash. And owning an out-of-state residence jointly (e.g., a vacation home) can avoid an ancillary probate process in that state. But it may not be practical to own property jointly where frequent transactions are involved (e.g., your investment portfolio or business assets) because you may need the joint owner's approval and signature for each transaction.

There are some other disadvantages to joint ownership arrangements, including: (1) your co-owner has immediate access to your property, (2) naming someone who is not your spouse as co-owner may trigger gift tax consequences, and (3) if the co-owner has debt problems, creditors may go after the co-owner's share.

Caution: Unlike with most other types of property, a co-owner of your checking or savings account can withdraw the entire balance without your knowledge or consent.

How does the retirement process at Textron Systems begin for employees, and what initial actions should they consider taking leading up to their retirement date? What are the key timelines and steps involved in initiating their retirement plan with Textron Systems, and how can these impact their retirement benefits?

Retirement Process Initiation: Employees planning retirement with Textron Systems should start by preparing 180 days before their desired retirement date. This involves confirming eligibility for the pension plan, ensuring it is within 180 days of their pension benefit commencement date, and reviewing their current pension benefit options on Fidelity's website. The retirement election process begins by contacting the Fidelity Benefits Service Center to request the necessary forms 45 to 90 days before the desired benefit start date(Textron Systems_Getting…).

What are the eligibility criteria for retiring employees under the Textron retirement plan, specifically regarding service hours and plan details? Furthermore, how do any past employment records with AVCO Corporation influence retiree benefits under Textron Systems?

Eligibility Criteria and AVCO Corporation Influence: Employees become eligible for the Textron Retirement Plan by completing at least 1,000 compensated hours per year. If the employee worked for AVCO Corporation before the merger with Textron, they may have additional retirement benefits, such as federal tax exclusions on part of their pension, if they kept their contributions in the AVCO Retirement Plan(Textron Systems_Getting…)(Textron Systems_Getting…).

How are the various pension benefit options structured within the Textron Systems retirement program, and what considerations should employees keep in mind when choosing between these options? Additionally, what happens if an employee wishes to change their payment option after retirement?

Pension Benefit Options: Textron Systems offers multiple pension payment options, including Single Life Annuity, Joint and Survivor Annuities, and Year Certain and Continuous Annuities. The chosen option is crucial, as it impacts retirement income and cannot be changed once the pension payments begin. Employees should consider their financial situation and consult a financial advisor before making a decision(Textron Systems_Getting…).

What documentation is necessary for Textron Systems employees to gather and submit in order to collect their pension benefits? How does the provision of accurate and complete data affect the processing of their retirement applications with Textron Systems?

Required Documentation: Employees must gather specific documents, such as birth certificates (for both the employee and spouse if applicable), marriage certificates, and a voided check for direct deposit. Providing accurate and complete information helps avoid delays in the retirement application process(Textron Systems_Getting…).

What tax implications should Textron Systems employees be aware of concerning their pension benefits, particularly in relation to IRS regulations? Additionally, how can employees explore the possibility of non-taxable portions of their retirement income?

Tax Implications: Pension payments are generally considered taxable income by the IRS and the state, except in some cases for former AVCO Corporation employees. Employees should consult a tax advisor for more specific information regarding potential tax exclusions(Textron Systems_Getting…).

In what ways does Textron Systems provide for the continuation of health insurance for spouses of retiring employees, particularly if the spouse is under 65? What specific documentation is required, and how does this process differ from regular health insurance enrollment?

Health Insurance for Spouses: If a retiring employee’s spouse is under 65, Textron Systems requires a letter from a Textron HR representative to verify prior coverage under the company's medical plan. This differs from regular enrollment, as the new insurer may require proof of prior coverage(Textron Systems_Getting…).

How does the decision to retire before the age of 65 affect an individualâ€™s pension benefits within the Textron retirement plan? What specific reductions and conditions should potential retirees consider when making this decision?

Retirement Before Age 65: Retiring before age 65 results in a permanent reduction in pension benefits. Typically, the reduction is 5% per year under the age of 65, though some employees may be eligible for an unreduced pension based on certain age and service requirements(Textron Systems_Getting…).

What strategies can Textron Systems employees adopt to prepare for their transition into retirement in a way that ensures a smoother process? How can employees manage emotional and practical aspects of retirement to facilitate this major life change?

Retirement Transition Strategies: Employees are encouraged to start retirement planning well in advance to ensure a smooth transition. Engaging with financial planners, addressing emotional and practical aspects, and having clear goals can help manage the complexities of retirement(Textron Systems_Getting…).

What steps should employees take if they experience difficulties accessing their retirement benefits through Fidelityâ€™s services as coordinated by Textron Systems? In what ways does Textron Systems support employees in resolving such issues?

Accessing Benefits Through Fidelity: If employees face difficulties accessing their retirement benefits through Fidelity, they should contact Fidelity’s Benefits Service Center. Textron Systems provides support through coordinators who help resolve such issues(Textron Systems_Getting…).

How can Textron Systems employees reach out for additional information about their retirement process and benefits packages? What are the specific contact details for reaching a retirement benefits coordinator at Textron, and what resources does the company offer to assist employees in their retirement planning?

Contacting Retirement Coordinators: Employees can reach out to the Fidelity Benefits Service Center at 1-866-698-9847 for assistance with their retirement benefits. Fidelity’s website, www.netbenefits.fidelity.com, is also available for reviewing pension options and benefits(Textron Systems_Getting…)(Textron Systems_Getting…).