Cassady Law Offices, P.C. - Las Vegas Estate Planning Attorney
Call for a free consultation

New law could impact how estate plans are structured

The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 likely changes the tax treatment of inherited IRA accounts. The legislation was approved in the House and will likely be approved in the Senate as well. Previously, Nevada residents could transfer an IRA to beneficiaries who weren't spouses. Those beneficiaries could then stretch distributions throughout their expected life spans.

However, the SECURE Act would generally require the balance to be withdrawn within a decade of the current owner's death. An exception would be made if the beneficiary's age is within 10 years of the current account holder's age. If a minor inherited an IRA, the clock wouldn't start until that child reached the age of majority. A surviving spouse can still inherit an IRA and stretch the payments over the rest of his or her lifetime.

If a person dies without designating an IRA beneficiary, it would become part of that person's estate. The money inside of the account would need to be distributed within 10 years according to the SECURE Act. Previously, any IRA balance that became part of an estate had to be distributed within five years. It is important to note that the new legislation would apply to qualified retirement plans such as 401(k) or a 403(b).

Ideally, individuals will treat the trust planning process as an ongoing one. This is because changes to the tax code could make a current plan obsolete or less effective than it otherwise could be. If adjustments aren't made to an existing trust, it may not meet a person's needs while alive or after passing. An estate planning attorney may be able to help create or alter a trust document in a manner that conforms to applicable laws.

No Comments

Leave a comment
Comment Information
Email Our Team

More Questions? We Have Answers.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Las Vegas Office
10799 West Twain Avenue
Las Vegas, NV 89135

Toll Free: 800-557-6423
Phone: 702-706-1083
Fax: 702-650-5561
Las Vegas Law Office Map

Henderson Office
2425 W. Horizon Ridge Pkwy.
Henderson, NV 89052

Toll Free: 800-557-6423
Phone: 702-706-1083
Map & Directions