Comply with the SECURE Act 2.0: Act Now to Update Your Estate Plan

The Red Wagon Estate Planning & Elder Law Show

The Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0 was passed in December 2022. Some sections are already in effect and others begin January 1, 2024. The law focuses mainly on retirement and tax-related issues, but has significant implications for estate planning, also. People who have estate plans that list trusts as beneficiaries of retirement accounts are advised to have them reviewed and updated to ensure that their plans continue to meet their financial and estate planning goals.

WHAT YOU NEED TO KNOW

(01:56) The original SECURE Act was passed on Christmas Eve in 2019. The SECURE Act 2.0 was passed in December 2022. The law includes consequential changes.

(02:54) Before the SECURE Act, estate planners would often create an accumulation trust as the beneficiary of a retirement account. Benefits could accumulate, providing long-term asset protection and the ability to stretch out tax payments over the lifetime of the heir(s).

(4:00) Now, spouses can still stretch out taxes over their life expectancy, but children have 10 years to pay.

(07:01) The SECURE Act also means loss of asset protection. For the spouse and the child, a conduit trust (which requires distribution of assets) replaces the accumulation trust.

(08:38) Review all your documents currently in place that have trusts listed as the beneficiary of a retirement account!

(11:00) Bellomo & Associates has the updated language and has reached out to all clients who need their documents changed. Please contact us if you fall into this category but have not yet made the changes.

(14:47) We highly recommend that you list contingency beneficiaries.

(17:14) Connect with your lawyer at least once a year. Laws change regularly and, increasingly, banks want powers of attorney to be less than one year old.

(18:23) Our Red Wagon Club lets families update documents as often as they want for a very low maintenance fee. It's a great way to make sure that your documents are ready when you need them.

LINKS AND RESOURCES MENTIONED

Bellomo & Associates workshops:https://bellomoassociates.com/workshops/

• Life Care Planning
• The Three Secrets of Estate Planning
• Nuts & Bolts of Medicaid

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