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The SECURE Act and Its Impact on Your Estate Plan

SECURE Act Trust, Tax, and Estate Planning Beneficiary Rights

As the festivities of the New Year have waned and we approach Tax Season, we bring you news of recent legislative development – The SECURE Act – that warrants your attention and may require changes to your estate plan.

Key Takeaways for You

  • Age required to begin taking distribution from Retirement Account increased from 70.5 years to 72 years; the age cap for starting an IRA is also removed.
  • The SECURE Act has changed the rules so that most beneficiaries will be required to receive the full amount of an inherited Retirement Account within 10 years of the death of the person who funded the Retirement Account.
  • The SECURE Act took effect on January 1, so it is imperative to review your estate plans with your planning professionals.

About the SECURE Act

During the final weeks of 2019, Congress enacted federal tax legislation known as the “SECURE Act.” The law makes important changes to the federal tax code that will impact distributions from retirement accounts such as 401(k)s, 403(bs)s, IRAs, and tax-qualified annuities (referred to in this legal advisory collectively as “Retirement Accounts”). Those changes may affect you during your lifetime and may also affect the way Retirement Accounts are distributed to your beneficiaries after your death. Consequently, the law may also limit your ability to protect retirement accounts from your beneficiaries’ creditors in a tax-efficient manner.

How Does the SECURE Act Affect Me and My Beneficiaries?

The Norris McLaughlin Trust, Estate & Individual Tax Practice Group has written a legal advisory summarizes the key aspects of the SECURE Act, which is effective as of January 1, 2020, that may affect your estate plan.

Click here to read the full Client Alert for more details.

About the Norris McLaughlin Trust, Estate & Individual Tax Practice Group

Norris McLaughlin’s estate planning & administration attorneys have vast experience in all aspects of state, federal, and international tax law, with a particular emphasis on the planning and administration of trusts and estates. Their goal is to assure that assets pass to the intended beneficiaries at as little cost as possible, including minimizing state and federal tax burdens which may require the use of sophisticated and creative planning techniques.

For more information or to review your plan, contact one of the firm’s experienced attorneys today.