New 2020 Tax Law May Require Immediate Changes to Your Estate Plan
As of January 1 of this year, changes were made to U.S. tax laws that may require those with an IRA, 401(k) or 403(b) to update their estate plan. The Setting Every Community Up for Retirement Enhancement (SECURE) Act made significant changes to retirement account rules that will require many people to update their beneficiary designation forms, and in some cases, living trusts.
The attorneys at Schaumburg-based Lavelle Law encourage clients to schedule an appointment to update their estate plan to ensure their wishes are carried out.
"If you have an estate plan in place, it's essential you speak with an attorney about how this new law will affect your beneficiaries," said Estate Planning attorney David O'Leary. "The new rules eliminate the Stretch IRA and require beneficiaries to withdraw all funds from IRAs within 10 years of the date of death of the IRA owner, which comes with tax implications."
Heather Walser, the Shareholder who heads the Estate Planning and Administration practice group at Lavelle Law, said the firm has developed a new trust that can be used for some existing estate plans to mitigate the impact of the SECURE Act.
"The regulatory framework in the area of estate planning is always changing. The SECURE Act represents a major change to how certain estate plans are administered, so it is essential that those with existing plans -- particularly older ones -- contact us for a review and potential modifications."
To make sure the SECURE Act doesn't adversely affect how your estate will be distributed upon death and to take advantage of planning opportunities under the new law, contact the attorneys at Lavelle Law at 847-705-7555 or https://www.lavellelaw.com/contact.
Lavelle Law's main office is in Schaumburg and maintains an additional office in the Chicago Loop. The firm was founded in 1989 as a single attorney practice with an emphasis on tax law. The firm has added more than a dozen practice groups including Estate Planning, Business Law, Banking Law, Litigation, Criminal, Immigration, Divorce and Family Law, Commercial and Residential Real Estate and Law Practice Consulting. The firm has received numerous awards and commendations for their business success, their commitment to ethics, national recognition for their pro bono services, and multiple acknowledgements of the charitable work they do in the local communities. For more information, visit www.lavellelaw.com or follow Lavelle Law on Twitter, Facebook and LinkedIn.