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USG Corporation Legacy Planning: 16 Essential Estate Tasks Before You Pass

'Estate planning is essential for USG Corporation employees nearing retirement to make sure their assets are properly allocated and their legacy is preserved, reducing future complications and optimizing the smooth transfer of benefits like retirement accounts and life insurance policies.' – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

'By prioritizing estate planning, USG Corporation employees can safeguard their retirement benefits, streamline the management of their assets, and confirm their loved ones are well cared for, ultimately providing peace of mind during the retirement transition.' – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

The importance of estate planning for USG Corporation employees nearing retirement
Key steps for organizing and managing your assets, including retirement accounts and insurance
Common mistakes to avoid in estate planning and the benefits of starting early

The process of making arrangements for the administration and allocation of a person's assets upon their passing or in the case of incapacitation is known as estate planning. You can make sure your affairs are handled appropriately, your loved ones are cared for, and your wishes are respected by taking a few preparatory actions. From drafting a will to using key legal instruments to manage your financial and medical decisions, estate preparation entails a number of steps. For USG Corporation employees nearing retirement, making these steps a priority is particularly important given the scope of benefits and accounts involved. To make sure your estate plan is in order, here is a checklist of 16 things to consider as part of your estate planning process.

Important Takeaways:

Make sure your estate plan is carried out smoothly by keeping track of all your assets and wishes. It may help to keep thorough written lists and let your estate administrator know where they are.
To facilitate a smooth transfer of assets, designate named beneficiaries on insurance policies, retirement funds, and other accounts.

1. Inventory Your Assets

USG Corporation employees should begin by listing all tangible assets. This includes items such as your house, vehicles, tools, jewelry, and personal collections. Don’t forget items of sentimental value like family heirlooms and photo albums.

2. Keep Records of Your Intangible Assets

Beyond physical possessions, USG Corporation retirees should gather documentation for 401k accounts, IRAs, life insurance, and USG Corporation benefit accounts. Include institution names, account numbers, and storage locations for any paper documents.

3. Compile a Debt List

List your outstanding debts such as mortgages, credit cards, HELOCs, and personal loans. Include all necessary details so your estate administrator can quickly identify and resolve any liabilities.

4. Create a Membership List

Whether you’re part of USG Corporation alumni associations or other organizations, list all affiliations that could provide life insurance, survivor benefits, or charitable giving connections.

5. Make Copies of the Lists You Have

Keep at least three copies: one for yourself, one for your estate administrator, and one in a secure location such as a fireproof safe or safe deposit box. USG Corporation’s employee resource centers may offer guidance on document storage.

6. Examine Your Retirement Funds

USG Corporation offers a variety of retirement plans. Confirm that your 401k, pension plans, and life insurance policies have updated and correct beneficiaries, especially after life events like marriage or divorce.

7. Revisit Your Policy

Review annuity and insurance policies to make sure your heirs receive benefits without delays. USG Corporation life insurance plans may be a key part of your legacy, so keeping this documentation up to date is critical.

8. Permit Designations for “Transfer on Death”

For USG Corporation employees with brokerage or savings accounts, designating a TOD beneficiary can reduce the burden of probate. This applies to certain accounts depending on your state’s laws.

9. Select a Trustworthy Estate Administrator

Choose a dependable person who can handle the complexity of your estate. For USG Corporation employees, this might be someone familiar with handling corporate benefits and related tax forms.

10. Write Your Will

Draft a will that covers distribution of your assets, guardianship of minor children, and care of pets. A clearly written will is essential in avoiding confusion, especially when USG Corporation retirement benefits are involved.

11. Examine Your Documents Frequently

Revisit your estate documents at least every two years or after major life changes to make sure they align with your current financial and family situation.

12. Make a Copy for Your Administrator

Make sure your estate administrator has access to the original will and is informed of its location. Only the original can be submitted to probate court.

13. Speak with a Financial Planner or Estate Attorney

In addition to speaking with any retirement advisor provided by USG Corporation, take time to consult with an independent estate attorney to assess your unique family, financial, and tax planning needs.

14. Simplify Your Finances

USG Corporation retirees often accumulate multiple retirement accounts from past employers. Consolidating them into one IRA can make future management more efficient.

15. Complete Any Other Vital Records

Documents like a durable power of attorney and a health care proxy allow decisions to be made on your behalf by someone you trust. USG Corporation resources may help guide employees to legal support services for drafting these forms.

16. Make Use of College Funding Accounts

If you wish to help your grandchildren, setting up a 529 plan can benefit them while also helping reduce your taxable estate. Many USG Corporation employees use these tools to support the next generation.

Typical Errors in Estate Planning

Failing to plan altogether is a major error. Not naming contingent beneficiaries or neglecting to update documents after major life events can create confusion and delay. USG Corporation employees should take care to communicate their wishes clearly and review documentation often.

The Dangers of Living Without an Estate Plan

Without a clear estate plan, your assets could be tied up in probate. This process may delay access to USG Corporation retirement benefits and increase legal costs for your heirs.

The Bottom Line

Though estate planning can seem overwhelming, especially for long-tenured USG Corporation employees with layered benefits, starting now offers peace of mind. Early planning helps reduce future complications, allows for thoughtful giving, and helps preserve your legacy.

According to a 2020 study from the National Institute on Aging , nearly 70% of Americans over age 65 will require long-term care. These costs can significantly reduce a retirement estate. Including long-term care insurance in your planning helps manage these risks and preserve your lifestyle and legacy.

Conclusion

Use this checklist to build a solid estate plan. From naming beneficiaries and cataloging your assets to preparing legal documents and discussing end-of-life preferences, every detail matters. Estate planning is like preparing for a major expedition—you want the right gear, a clear path, and a well-considered map. Thoughtful preparation today means fewer detours for your loved ones tomorrow.

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Sources:

1. Segal, Troy. 'Estate Planning: 16 Things to Do Before You Die.' Investopedia , 16 Jan. 2025, https://www.investopedia.com/articles/retirement/10/estate-planning-checklist.asp .

2. 'Estate Planning Checklist.' Charles Schwab , https://www.schwab.com/estate-planning/estate-planning-checklist .

3. 'Estate Planning Checklist: Five Tasks to Prioritize.' Kiplinger , https://www.kiplinger.com/retirement/estate-planning/602219/estate-planning-checklist-5-tasks-to-do-now-while-youre-still .

4. 'Estate Planning Mistakes to Avoid for Retirees and Pre-Retirees.' Goldstone Financial Group , https://www.goldstonefinancialgroup.com/essential-estate-planning-mistakes-to-avoid-for-retirees .

5. 'Estate Planning Checklist: 7 Key Steps To Making A Successful Plan.' Bankrate , https://www.bankrate.com/retirement/estate-planning-checklist .

How does the retirement plan structure at USG Corporation impact both final average earnings participants and cash balance participants, especially regarding their eligibility and benefits accrued over time? In what ways does the differentiation between these two categories influence the retirement outcomes for employees of USG Corporation?

Retirement Plan Structure: USG Corporation's retirement plan differentiates between Final Average Earnings Participants and Cash Balance Participants. Final Average Earnings participants, who joined before January 1, 2011, accrue benefits based on their final average earnings and years of service, which can result in higher benefits for longer-serving employees. Cash Balance participants, who joined after January 1, 2011, have their benefits calculated based on a cash balance account, which grows with contributions and interest credits. These differences affect retirement outcomes, as Final Average Earnings participants may see higher pension payments if they have longer service or higher wages, while Cash Balance participants have more predictable but potentially lower benefits based on their account balance(USG Corporation_Retirem…).

USG Corporation's Retirement Plan allows for different age-specific rules regarding early retirement. How do the "Rule of 90" and "Rule of 82" affect the financial planning of employees considering an early retirement option, and what should they consider regarding their long-term financial security?

Rule of 90 and Rule of 82: The "Rule of 90" allows employees to retire early without a reduction in benefits if their age plus years of service total 90, provided they retire at or after age 62. The "Rule of 82" permits early retirement with reduced benefits for those whose age and years of service total 82. Employees planning early retirement must consider these rules as they directly affect the amount of benefits they receive, making it important to assess how long-term financial security will be impacted, especially if they retire before age 62(USG Corporation_Retirem…).

Could you elaborate on the process through which employees at USG Corporation can change their beneficiaries within the retirement plan? What steps need to be taken, and what are the implications of these changes on the benefits received upon the participant's death?

Changing Beneficiaries: To change beneficiaries, USG Corporation employees must contact Your Benefits Resources™, where they can designate a primary and contingent beneficiary. If married, the spouse must provide notarized consent to name a different primary beneficiary. The process involves completing a form, and any changes affect who receives benefits upon the participant's death. Failing to update the beneficiary could result in benefits being paid to unintended individuals(USG Corporation_Retirem…).

As part of the retirement process at USG Corporation, how are pensionable earnings calculated? What factors are included in this determination, and how might they vary among different employees based on their roles within the organization?

Pensionable Earnings Calculation: Pensionable earnings at USG Corporation include regular pay, shift differentials, and bonuses but exclude items like nonqualified deferred compensation, severance, and stock awards. These earnings are used to calculate benefits based on formulas that take into account an employee’s service years and earnings over the 36 highest consecutive months of the last 15 years of participation(USG Corporation_Retirem…).

How does the automatic enrollment in the USG Corporation Retirement Plan work, and what options do employees have if they initially chose not to participate? What implications might this have for their retirement savings strategy?

Automatic Enrollment and Opting In: Employees at USG Corporation are automatically enrolled in the retirement plan unless they choose to opt out. If employees decide not to participate initially, they can enroll later by contacting Your Benefits Resources™. Failure to participate from the start could result in lower retirement savings due to fewer years of contributions(USG Corporation_Retirem…).

In the context of USG Corporation, what are the potential tax consequences for employees withdrawing their retirement benefits, especially regarding the mandatory withholdings? How might employees effectively manage these tax liabilities when planning for retirement?

Tax Consequences of Withdrawals: Employees withdrawing their retirement benefits from USG Corporation will face mandatory federal income tax withholdings, typically 20% for lump sum distributions, unless the distribution is rolled over into an IRA. Employees must plan for these taxes when withdrawing to avoid unexpected liabilities and ensure they maximize their after-tax retirement income(USG Corporation_Retirem…).

How do employees at USG Corporation access the necessary documents related to their retirement benefits, and what is the process for obtaining copies of these documents if needed? What are the responsibilities of the Plan Administrator in this process?

Accessing Retirement Documents: Employees can access documents related to their retirement benefits through Your Benefits Resources™ online or via phone. If additional copies are needed, employees can request them from the Plan Administrator for a small fee. The Plan Administrator oversees ensuring these documents are provided to participants as required by ERISA(USG Corporation_Retirem…).

What unique provisions exist for USG Corporation employees who experience a break in service? How do these provisions impact their accumulated benefit service and overall benefits upon reemployment?

Break in Service Provisions: USG Corporation allows employees who experience a break in service to retain their accumulated benefits if they are reemployed within one year. If reemployed after one year, their previous service may not count toward future benefits unless they were vested prior to termination. This can affect the total benefits an employee accrues if they leave and later return(USG Corporation_Retirem…).

What options do employees of USG Corporation have for managing their benefits if they return to work after retirement? How does this affect their pension benefits and the overall strategy for maximizing retirement income?

Returning to Work After Retirement: Employees returning to work after retirement at USG Corporation will have their pension payments suspended and recalculated based on additional years of service. This recalculation takes into account prior payments, meaning employees should consider the impact of returning to work on their long-term pension strategy(USG Corporation_Retirem…)(USG Corporation_Retirem…).

How can employees of USG Corporation contact their Benefits Resourcesâ„¢ for more information on their retirement plan options? Are there specific channels preferred for different types of inquiries, and what resources are available to assist them?

Contacting Benefits Resources™: Employees can contact Your Benefits Resources™ via the web or a toll-free number to inquire about retirement plan options. Different inquiries, such as changes to beneficiaries or requesting benefit estimates, can be handled through these channels. Resources such as detailed benefit estimates are available to help employees plan for retirement(USG Corporation_Retirem…).