Ask Terry Questions Is my trust impacted by new tax law?

Is my trust impacted by new tax law?

By Terry Savage on January 19, 2020 | Financial Planning / Retirement

The San Diego newspaper advertised a trust workshop with the heading, “Does your trust address
the new tax law passed on December 20, 2019”
Is this something I should be concerned about?

Terry Says

I think this is just a “come-on” to get business for the estate planning attorneys. The major change that affects your heirs was shortening the time period that IRA beneficiaries have to withdraw money after they inherit the IRA> Very rarely do people make a “trust” the beneficiary of an IRA — precisely because if you name an individual they get the chance to keep the money growing for their own retirement (now only for 10 years). But if you had named a trust, the money would be distributed and taxes paid right away.

Other than that, I am unaware of anything in the SECURE Act, passed in December, that would impact your estate planning or the validity of your existing Revocable Living Trust.



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