Purchase video replay of Natalie’s most recent SECURE seminar:
My 4-credit-hours webinar “Estate planning and trust drafting for retirement benefits: One year into SECURE” (12/4/20) is now available for video replay sales. The webinar explains clients’ choices when leaving retirement benefits to the surviving spouse, minor child, disabled individual, or other beneficiary, including which trusts do and do not qualify for “eligible designated beneficiary” status. The “minimum distribution trust rules” you still must know (and when they don’t matter anymore). The seven features of fiduciary income taxes that trust drafters, administrators, and tax-preparers must know. Charitable giving and other ways touted to “beat” SECURE. IRS SECURE guidance (none has been issued so far) may clear up some details, but the main lines are already clear. This webinar is for planners who must advise clients and draft/administer trusts NOW. To purchase the video or learn more, visit:
Note: If you have ANY PROBLEMS with the download or questions about the video, the credits, etc. don’t call me! Instead email Boston Tax Institute’s support team at VC@BostonTaxInstitute.com
“Loved your webinar. Normally, I really struggle to stay engaged on Zoom – you had me focused for the full time!”—Financial planner, TN.
Life and Death Planning for Retirement Benefits (8th ed. 2019)
UPDATES FOR SECURE AND CARES
Click here to download Natalie’s outline (most recently updated 11/20/20) covering SECURE, CARES, the IRS CARES guidance issues late June 2020 (IRS Notices 2020-50 and -51), and the “final” new life expectancy tables for computing RMDs effective in 2022 (NOT 2021). Natalie is still working on a formal update to the book Life and Death Planning for Retirement Benefits (8th ed. 2019), which will posted here for free download someday.
Sign up here if you wish to receive Natalie’s email newsletter Choate’s Notes, which will include notice when an update is posted.
To all readers of the 8th edition: The “SECURE” law enacted December 20, 2019, and effective January 1, 2020, makes significant changes to the minimum distribution rules. Many sections of the book will need updates to reflect the new law. Here is a brief description of the changes, followed by a detailed analysis of SECURE and its effects on our clients’ estate plans:
Most significantly, SECURE replaces the life expectancy payout with a 10-year payout (modelled on the old 5-year rule) for all but 5 specified categories of designated beneficiary—surviving spouses, minor children of the participant, disabled and chronically ill beneficiaries, and beneficiaries less than 10 years younger than the participant.
SECURE does NOT change the definition of designated beneficiary. Your beneficiary designations are still good. And it does not affect the definition of see-through trust—your conduit trusts and see-through accumulation trusts (STATs) are still perfectly good. The only trouble is, except for the specified categories of designated beneficiary (called “eligible designated beneficiaries”), the existing estate plan won’t work as expected—the benefits will have to be distributed in 10 years rather than over the life expectancy of the designated beneficiary (or oldest trust beneficiary).
Other significant changes: Age for starting required minimum distributions raised to 72 from 70-1⁄2 for people born after June 30, 1949. The age cap for contributing to a traditional IRA is removed. And for deaths prior to 2020, where benefits are being paid out over the life expectancy of the designated beneficiary, the 10- year rule will kick in upon the death of the designated beneficiary.
Click here for the detailed discussion of SECURE and its changes in the RMD rules. As soon as possible, I will publish a section-by-section update of the 8th ed. and simultaneously update the electronic edition of the book. I am presenting seminars on SECURE at Heckerling in Orlando on January 16-17, 2020, and hope to also offer webcasts to ILS subscribers and Leimberg Information Services subscribers in January 2020.
— Natalie Choate
Natalie B. Choate is America’s leading author and speaker on estate and distribution planning for retirement benefits. Her book, Life and Death Planning for Retirement Benefits, is a leading resource for estate planning professionals.
The 2019 8th edition of Life and Death Planning for Retirement Benefits is printed!
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