Retirement assets such as IRAs, 401(k)s, and other tax-deferred accounts often represent a significant portion of a client’s estate, yet they remain one of the most commonly misunderstood components of estate planning. This program provides estate planning attorneys with a comprehensive, practical framework for integrating retirement assets into sophisticated estate plans while navigating the complex and evolving tax rules that govern their administration.
The course begins by examining the fundamental differences between individual income taxation and fiduciary income taxation, including the distributable net income (DNI) regime and its critical role in minimizing exposure to compressed trust tax brackets. The program then explores the far-reaching impact of the SECURE Act and SECURE 2.0, with particular emphasis on the elimination of the “stretch” IRA for most beneficiaries, the categorization of designated and eligible designated beneficiaries, and the application of required minimum distribution (RMD) rules to inherited retirement accounts. Through detailed analysis of beneficiary designations, trust structures (including conduit, accumulation, and applicable multi-beneficiary trusts), and post-death administration issues, attendees will learn how to avoid common planning pitfalls and align retirement asset planning with client objectives.
The course concludes with an in-depth discussion of advanced tax planning strategies, including income-shifting techniques, administration of inherited IRAs, and the most tax-efficient methods for gifting retirement assets to charitable organizations.
After completing this program, participants will be able to:
* Explain the income tax treatment of retirement assets in estate planning, including the differences between individual (Form 1040) and fiduciary (Form 1041) taxation and the role of distributable net income (DNI).
* Analyze the impact of the SECURE Act and SECURE 2.0 on retirement asset planning, including changes to required minimum distributions, beneficiary classifications, and the loss of the traditional stretch IRA.
* Identify the legal and tax consequences of various beneficiary designations, including designated beneficiaries, eligible designated beneficiaries, and non-designated beneficiaries.
* Evaluate the use of trusts as beneficiaries of retirement accounts, including conduit trusts, accumulation trusts, and applicable multi-beneficiary trusts, and their effect on taxation and distribution timing.
* Apply practical strategies for administering inherited IRAs and minimizing income tax exposure for beneficiaries.
* Assess the advantages, limitations, and tax efficiency of charitable giving strategies involving retirement assets, including qualified charitable distributions and beneficiary designation techniques.
LaCasse is an of counsel attorney whose practice focuses on estate, business and tax planning, administration of decedents’ estates including trust and probate administration, and various business matters such as creation, administration, governance and succession of entities.
