This post is part of our continuing series on beneficiary designations for retirement accounts after the Secure Act. As you may know, the Secure Act largely did away with the stretch distributions for most beneficiaries substituting instead a ten-year payout. There are exceptions to this and this can fundamentally change the choices we recommend for our clients. In this blog post, my friend Steve Hartnett, the Director of Education for the American Academy of Estate Planning Attorneys, … [Read more...] about Beneficiary Designations and the SECURE Act: Eligible Designated Beneficiaries
Beneficiary Designations and the SECURE Act: Prior Designations
This is the second in a series of blog posts from my friend Steve Hartnett, Director of Education for the American Academy of Estate Planning Attorneys. Here Steve talks about how the Secure Act, which became effective at the beginning of 2020, impacts the designation of trusts as the beneficiary of retirement accounts. We make these designations pretty commonly for our clients at Clarity Legal Group and the approach Steve describes here is the one we most common implement. In any event, … [Read more...] about Beneficiary Designations and the SECURE Act: Prior Designations
Beneficiary Designations and the SECURE Act Basics
Anyone who has worked with Clarity Legal Group has heard us say that estate planning is just as much about how your organize what you own as what your legal documents say. Beneficiary designations can seem simple when they are not. But their simplicity is sort of like an iceberg. Danger lurks beneath those tranquil waters, both for the client and the attorney. We find ourselves more frequently crafting customized beneficiary designations for retirement accounts, in order to get the plan … [Read more...] about Beneficiary Designations and the SECURE Act Basics
Asserting Control and Exercising Care over Multigenerational Wealth
I wrote in my last post about using an asset protection trust to protect a specific beneficiary who might have need protection, for example from a substance abuse problem. Sometimes we implement multigenerational trusts not to protect against the problems of a specific trust but to provide a management or tax planning structures for family wealth. This is what is commonly called a “Dynasty Trust”. Such a trust is one that continues for the maximum term possible. There can be estate tax … [Read more...] about Asserting Control and Exercising Care over Multigenerational Wealth
Families Gather in Novel Ways in Pandemic
COVID-19, the novel coronavirus, has been a challenge confronting countries around the world. The disruptions from the social distancing required to fight the virus have been felt by people around the world. As we mark passing holidays, we reflect on the importance of family. Learn how to share time with family during this pandemic and tackle tasks such as Estate Planning. As we begin to open up non-essential businesses and some of us begin to spend more time outside of our homes, remember … [Read more...] about Families Gather in Novel Ways in Pandemic
Estate Planning Conference Discusses SECURE Act and More
Those of you who attended our 2019 Clarity Legal Group® Annual Client Education Program heard our discussion and predictions regarding the possibility of significant changes to the rules relating to IRAs and other tax deferred retirement accounts. We discussed the SECURE Act, which at the time was stuck in committee in the United States Senate, having passed the House of Representatives. On December 19, 2019, having passed the Senate, it became law, effective January 1, 2020. Clarity Legal … [Read more...] about Estate Planning Conference Discusses SECURE Act and More
The SECURE Act and What It Means for You
Those of you who attended our 2019 Clarity Legal Group® Annual Client Education Program heard our discussion and predictions regarding the possibility of significant changes to the rules relating to IRAs and other tax deferred retirement accounts. We discussed the SECURE Act, which at the time was stuck in committee in the United States Senate, having passed the House of Representatives. On December 19, 2019, having passed the Senate, it became law, effective January 1, 2020. Clarity Legal … [Read more...] about The SECURE Act and What It Means for You
New Tax Proposal re: Retirement Savings
There are new tax proposals working their way through the House and Senate. These proposals, if passed, would change retirement savings significantly. Read on to learn more about these proposals and whether they might impact you or your clients. New Tax Proposal re: Retirement Savings … [Read more...] about New Tax Proposal re: Retirement Savings
Beneficiary Designations, etc., Aren’t a True Substitute for a Trust
My friend Steve Hartnett, Director of Education for the American Academy of Estate Planning Attorneys has a clear blog post addressing the most basic differences between use of a transfer on death (TOD) or pay on death (POD) designation for an account rather than planning through a trust. These designations, like joint tenancy with right of survivorship, have a lure of simplicity which in my judgement is false. They do not address a variety of potential problems which might arise, they leave … [Read more...] about Beneficiary Designations, etc., Aren’t a True Substitute for a Trust
Planning to Avoid Too Much SALT
The 2018 changes in the federal tax laws were a mixed bag. One of the disadvantages for many tax payers was the new cap of $10,000 on federal deduction of state and local taxes. For many people this will mean a higher tax bill. Any time there is a change in the tax law, there will be people looking for different ways to get around the cap. I always encourage clients to be cautious. Anything in the tax world that sounds too good to be true, almost certainly is. Some of the ways people … [Read more...] about Planning to Avoid Too Much SALT
