Posts by LinLaw

The SECURE Act of 2019: The End of “Stretch” IRA Distributions

Posted on Jan 6, 2020

On January 1, 2020, the Setting Every Community Up for Retirement Enhancement (SECURE) Act, making widespread changes to the rules and regulations regarding retirement assets, became effective. From an estate planning perspective, the most significant change is the requirement that most non-spouse beneficiaries of an inherited IRA or other inherited retirement asset, such as a 401(k), must withdraw the entire balance of the inherited asset within 10 years of the decedent’s death. Prior to the SECURE Act, beneficiaries of inherited retirement assets were able to “stretch” the required...

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How Not to Amend your Revocable Trust

Posted on Dec 17, 2019

A California state court recently held, in Pena v. Dey, that interlineations made by a grantor to the text of his trust agreement were not sufficient to amend the terms of the trust. The grantor, James Robert Anderson, sent the marked-up copy to his estate planning attorney, with a post-it note instructing the attorney to prepare a written amendment. The trust agreement itself provided that any amendment must be made by way of a written instrument, signed by the grantor and delivered to the trustee.  Unfortunately, Anderson subsequently passed away before the amendment was finalized, and his...

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Wisconsin Legislature Considers Online Notarization

Posted on Nov 21, 2019

The next time you need to execute a document in the presence of a notary public, you may be able to find one online! Assembly Bill 293 and Senate Bill 317 (introduced June 13 and July 10, 2019, respectively), if passed by the Wisconsin Legislature, would allow a Wisconsin notary public to become commissioned as an “online notary” who is authorized to notarize legal documents online.  Pursuant to the Bills, online notarial acts must be accomplished via communication technology, such as videoconferencing, which allows the notary to communicate in real time with the affiant.  Both Bills...

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IRS Announces 2020 Estate and Gift Tax Exemption Amounts

Posted on Nov 7, 2019

On November 6, 2019, the IRS announced the final estate and gift tax exemption amounts for 2020, as adjusted for inflation.  The estate and gift tax exemption for 2020 will be $11.58 million per person, whereas the annual gift tax exclusion amount is unchanged at $15,000.  The adjusted estate tax exemption amount means that an individual will be able to shelter up to $11.58 million in assets from estate tax upon his or her death in 2020, and a married couple will be able to shelter up to $23.16 million in assets (assuming that portability is utilized). Keep in mind, however, that the Tax...

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National Estate Planning Awareness Week

Posted on Oct 23, 2019

In 2008, the 110th United States Congress passed House Resolution 1499, designating the third week of October (October 21-27, 2019) as National Estate Planning Awareness Week.  In doing so, Congress undoubtedly hoped that it would increase awareness with regard to the importance and benefits of estate planning.  However, a 2019 Caring.com survey found that only 43% of respondents had prepared an estate plan, compared to the 76% of respondents who believed estate planning to be important.  Some indicated that this was the result of procrastination, whereas others mistakenly stated that...

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