Life can take unexpected turns. If you are concerned about what will happen to your property and finances if you become incapacitated, you may want to consider creating an estate plan. An estate plan is a set of legal documents that allow you to arrange your affairs and express your wishes for your future. One of the benefits of having an estate plan is that it can help you avoid or reduce the need for a conservatorship, which is a court-supervised process where someone else is appointed to manage your affairs for you. A conservatorship can be costly, time-consuming, and intrusive. It can also limit your personal freedom and autonomy, as you may lose the right to make your own decisions or access your own assets. Moreover, a conservatorship may not reflect your preferences or values, as the court may appoint someone who does not know you well or share your views. Therefore, it is advisable to plan ahead and create an estate plan that can help you avoid or minimize the risk of a conservatorship. There are different ways that an estate plan can help you avoid conservatorship, depending on your situation and goals. Some of the common methods are: ·         Power of attorney : This is a document that allows you to appoint someone you trust to act on your behalf in financial and legal matters, such as paying bills or filing taxes. You can choose when and how long this power will be effective, and you can revoke it at any time. A power of attorney gives you more control over your own affairs and reduces the burden on your family or friends who may have to apply for a conservatorship if you become incapacitated. ·         Revocable trust : This is a type of trust that you create during your lifetime and can change or cancel at any time. You transfer some or all your assets into the trust and name yourself as the trustee. The trustee has the responsibility to manage the trust according to its terms. The beneficiaries of the trust receive their inheritance directly from the trust, without going through probate or court supervision. ·         Health care directive : This is a document that allows you to appoint someone you trust to make medical decisions for you if you become unable to do so yourself. You can specify what kind of treatments or interventions you want or do not want in certain situations, such as life-sustaining measures or organ donation. A health care directive can help ensure that your wishes are respected and followed by medical professionals and family. By creating an estate plan that includes these documents, you can avoid or reduce the need for a conservatorship and ensure that your affairs are handled according to your wishes. You can also save time, money, and hassle for yourself and your loved ones. However, estate planning can be complex and requires careful consideration of your personal and financial circumstances, as well as the applicable laws and regulations. Therefore, it is advisable to consult with a qualified estate planning attorney who can guide you through the process and help you create an estate plan that suits your needs and goals. Call me today to talk about getting your documents in place! (714) 619-4145.   I look forward to hearing from you!

Leaving an outright inheritance to your children at your death might seem like a natural choice, but there are good reasons to consider alternatives ways for them to inherit. First consider that a revocable trust does not protect assets during the life of the person who created it. This is a common misconception. Instead, revocable trust assets are subject to creditors, just as if they were titled in the name of an individual. But when the person who created the trust dies, it automatically becomes irrevocable and not easily reachable by anyone but the beneficiary. Assets held in that irrevocable trust are off limits to your children’s potential future ex-spouses, unexpected extreme debt resulting from health crisis or business failure, lawsuits, or mismanaged personal wealth. Creditors can’t access assets what you worked your life to build. This is why it is usually best to retain your hard earned assets in an irrevocable trust for your children's benefit with stepped distributions over time. There are other reasons to delay distributions to your children: 1. Financial Maturity Patience pays off. By postponing an outright inheritance, you give your children time to develop financial maturity. They learn to manage their own resources, make informed decisions, and appreciate the value of hard work. Waiting ensures that they don’t receive a windfall before they’re ready. 2. Protection from Life’s Uncertainties Life is unpredictable. By structuring an inheritance to be received gradually, you shield your children from sudden financial shocks. Whether it’s divorce, bankruptcy, or unforeseen legal issues, a well-timed inheritance can provide stability during turbulent times. 3. Encouraging Purposeful Living An immediate inheritance might inadvertently discourage ambition. When children know they have a safety net, they may not strive as hard. Delayed inheritances encourage them to pursue their passions, build careers, and contribute meaningfully to society. 4. Fostering Strong Family Bonds Waiting to inherit fosters communication and collaboration. Family discussions about financial planning, philanthropy, and shared goals become essential. These conversations strengthen family bonds and create a legacy beyond mere wealth. 5. Tailoring to Individual Needs Each child has unique circumstances. By delaying inheritance, you can tailor distributions to their specific needs. Whether it’s funding education, buying a home, or starting a business, a customized approach ensures that the inheritance aligns with their life stages. Let us help you decide how and when your kids ultimately inherit. It's what we do! Preserve your wealth by calling us today (714) 619-4145!

Inheritance can be a sensitive topic for many families, often avoided or postponed until it becomes a source of tension. However, having open and honest conversations about inheritance and financial expectations can be one of the most important steps to ensure that your wishes are honored and that your loved ones are not left in a state of confusion or conflict after you're gone. In this blog, we'll explore why discussing inheritance is so important, the benefits of initiating this conversation, and practical tips for how to approach it in a thoughtful and constructive way. Why Conversations About Inheritance Matter Prevents Disputes and Conflicts. One of the most common reasons family members fight after a loved one passes away is a lack of clarity around inheritance. When someone dies without clear instructions or without having discussed their wishes, it can lead to confusion, resentment, and legal disputes among surviving family members. These conflicts can erode relationships and create long-lasting divisions within families, which is often further complicated by the grieving process. By addressing inheritance beforehand, you ensure that your wishes are well understood and reduce the chances of disputes after you're gone. Clarifies Financial Expectations. Different family members may have different expectations or assumptions about how assets will be distributed. Without clear communication, one family member may feel entitled to more than others, or there may be confusion about who is responsible for what after your passing. A conversation about inheritance allows you to clarify these expectations in advance, helping everyone involved feel more at ease with the process. Helps Reduce Stress for the Surviving Family. Grieving the loss of a loved one is challenging enough without adding the burden of sorting out financial and legal matters. If family members don’t know where important documents are stored or what assets exist, they may struggle to manage your affairs while coping with their grief. Talking about inheritance ahead of time can provide your loved ones with the clarity and guidance they need during a difficult time. Allows for Emotional Closure. For some family members, inheritance can be tied to emotional and personal expectations. Discussing your plans and reasoning behind your decisions can help your loved ones better understand your choices. For example, if you’ve decided to leave a specific asset to one child instead of another, explaining the reasons—whether it’s due to financial need, a specific interest in that asset, or another personal reason—can help reduce feelings of favoritism or resentment. We can help you create a positive legacy for you and your loved ones. Call to get more information! (714) 619-4145

As we step into the ever-evolving landscape of estate planning, it's important to stay informed about the latest updates and changes that could impact your financial future and the legacy you leave behind. In this article, we'll explore some of the recent developments in estate planning and how they might affect your strategies moving forward. 1.      Digital Assets : In our increasingly digital world, it's essential to consider what will happen to your digital assets after you're gone. From cryptocurrencies to social media accounts, digital assets present unique challenges in estate planning. Make sure your estate plan addresses how these assets will be managed and transferred to your heirs. 2.      Healthcare Directives : The COVID-19 pandemic has underscored the importance of healthcare directives and end-of-life planning. Review your healthcare directives regularly to ensure they reflect your current wishes and preferences, especially in light of any recent changes in medical technology or regulations. 3.      Family Dynamics : Changes in family dynamics, such as marriages, divorces, births, or deaths, can have significant implications for your estate plan. Regularly review and update your plan to account for any changes in your family situation and ensure that your assets are distributed according to your wishes. 4.      Estate Planning Tools : New estate planning tools and strategies are continually emerging to help individuals protect and manage their wealth more effectively. From revocable living trusts to irrevocable life insurance trusts, explore the latest estate planning tools and consider whether they could benefit your financial situation. 5.      Charitable Giving : If philanthropy is an essential part of your legacy, stay informed about recent developments in charitable giving laws and strategies. Whether it's donor-advised funds, charitable remainder trusts, or other giving vehicles, there may be new opportunities to maximize the impact of your charitable contributions. 6.      Long-Term Care Planning : With the aging population and rising healthcare costs, long-term care planning has become increasingly important. Stay informed about recent developments in long-term care insurance, Medicaid rules , and other strategies for covering the costs of long-term care in your estate plan. 7.      Estate Administration : Changes in probate laws and estate administration procedures could affect how your estate is settled after your death. Stay informed about any recent updates in probate laws and consider how they might impact the administration of your estate. Estate planning is not a one-time event but a process that requires ongoing attention and adaptation to changes in laws, regulations, and personal circumstances. By staying informed about the latest updates in estate planning and regularly reviewing and updating your estate plan, you can ensure that your wishes are carried out and your legacy is preserved for future generations. We are here to help. Give us a call today! (714) 619-4145

Estate planning is essential for ensuring that your wishes are honored, and your loved ones are taken care of after you're gone. However, many people make critical mistakes that can complicate the process and lead to unintended consequences. Here are the top five estate planning mistakes to avoid in 2024. 1. Neglecting to Update Your Documents One of the most significant mistakes is failing to update your estate plan regularly. Life changes such as marriage, divorce, the birth of a child, or the death of a loved one can dramatically affect your wishes. Review your estate plan at least every few years, or immediately after major life events, to ensure it reflects your current situation. 2. Ignoring Digital Assets In our digital age, assets aren't just physical anymore. Digital assets, including online accounts, cryptocurrencies, and social media profiles, need to be included in your estate plan. Create a list of your digital assets and specify how you want them handled. This can prevent confusion and potential loss of valuable information or sentimental content. 3. Assuming You Don’t Need a Will Many people think that they don’t need a will because they have few assets or are young. This is a common misconception. Without a will, your state’s intestacy laws will determine how your assets are distributed, which may not align with your wishes. A simple will can provide clarity and ensure your assets are distributed according to your preferences and if you have a revocable trust, your will ensures that your assets will not be probated. 4. Not Communicating Your Wishes Failing to communicate your estate plan with family members can lead to misunderstandings and disputes after your passing. Open discussions about your wishes can help reduce conflicts and ensure everyone is on the same page. It’s essential to involve your heirs in the conversation about your plans and decisions. 5. Overlooking the Importance of Beneficiary Designations Many individuals forget to review or update beneficiary designations on accounts like retirement plans and life insurance policies. These designations typically override your will, which means if they are outdated or incorrect, your assets may not go to the intended recipients. Regularly check your accounts and update beneficiaries as needed. Conclusion Avoiding these common estate planning mistakes can save your loved ones from unnecessary stress and confusion during a difficult time. By taking proactive steps to update your plan, include digital assets, and communicate openly, you can ensure that your wishes are honored, and your legacy is protected. Call me today to discuss your plan at (714) 619-4145!

When it comes to owning real estate in California, there are two common ways that individuals can hold title to a property: Joint Tenancy and Tenancy in Common. While these terms may sound similar, they have distinct legal implications that can have a significant impact on your rights and obligations as a property owner. One of the main issues to consider when deciding whether to own property as Tenants in Common or Joint Tenants is how each respective owner’s interest will transfer upon death.   JOINT TENANCY Joint Tenancy is a form of property ownership where two or more individuals own property together and have an undivided interest in the entire property. It is characterized by the “right of survivorship,” meaning that when one owner passes away, that share of the property automatically transfers to the surviving owner(s). Joint Tenancy is commonly used for married couples or family members who want to ensure that the surviving owner(s) will inherit the property without the need for probate. The right of survivorship is a key feature, bypassing the probate process and directly transferring ownership to the surviving joint tenants. Advantages: The property automatically passes to the surviving owners upon the death of one owner, avoiding probate. Each “tenant” has an equal share and equal rights to the entire property. Simplifies the process of transferring property upon death but only if there are other surviving joint tenants. Disadvantages: Owners cannot pass their share of the property to anyone other than the joint tenants upon death. If one owner wants to sell or encumber the property, all owners must agree. The property might be at risk if one of the joint tenants faces legal judgments or bankruptcy. It does not account for what happens to the property when there is only one remaining tenant (owner). The last surviving joint tenants can dispose of the property in any way they want.   TENANCY IN COMMON Tenants in Common is a way of holding title where two or more individuals own property together, but with separate and distinct shares. Each owner can sell, transfer, or mortgage their share independently. In the event of an owner’s death, that share of the property passes to the decedent heirs or beneficiaries as directed by their estate plan or through intestate succession. Tenancy in Common is often used by business partners, some family members, friends or investors who wish to own property together while maintaining separate control and ownership over their respective shares. Upon the death of an owner, that tenant’s share passes to their heirs or as directed by their estate plan, rather than automatically transferring to the other owners. This allows for more flexibility in estate planning for each individual owner but can create issues when the surviving owner is suddenly co-owner with decedent’s children or other family members. Advantages: Owners can hold unequal shares and can independently control their portion of the property. Each owner can sell or encumber their share without needing consent from the others. Owners can bequeath their share to anyone in their estate plan. Disadvantages: The property doesn’t automatically transfer to the other owners upon an owner’s death, potentially leading to complicated estate issues. Differences in management or investment goals can lead to disputes. Any owner can file for a partition action, which can force the sale or division of the property. Each owner can sell or encumber their share without needing consent from the others.   CONCLUSION Whether you own property as Joint Tenants or Tenants in Common is a choice dependent on many factors. You should consult with an attorney specific to your situation when deciding how to hold title. Call Lynn today to learn more! (714) 619-4145

Imagine the nightmare situation of sending your child off to college and he gets into a serious accident, then you call the hospital to find out about his condition and are told, “I’m sorry, but I’m not authorized to provide you with any information or allow you to make any decisions.” A frustrating reality for parents is that once a child turns 18, they have all the legal rights and privileges of any other adult: they can vote, enter contracts, get married, and they also have the right to privacy. New California Law A new California law became effective on January 1, 2023, requiring hospitals and health care providers to consult with the next of kin of an incapacitated adult patient and allow them to make medical decisions on the patient’s behalf, unless there is a valid advance directive that states otherwise. This “default surrogate consent law” applies to spouses or domestic partners, siblings, adult children and grandchildren, parents, and an adult relative or close friend. It generally provides a hierarchy of authorized family decision-makers who in descending order starting with the spouse can make medical treatment decisions on someone’s behalf. An important caveat is that the hospital or provider has discretion to decide which family member or close friend can make medical decisions, but they must act in good faith and in the best interest of the patient. And many times a hospital will rely on the person who initially cared for or brought an unconscious patient to the emergency room. For this reason, we strongly advise that your adult child have two straightforward legal documents in place to ensure that you are able to intervene if your child can’t make those decisions for himself: 1. HIPAA Release The Health Insurance Portability and Accountability Act, better known as HIPAA is a federal law that protects the privacy and security of health information and prohibits medical personnel from revealing it to an unauthorized person. In the eyes of the law, it doesn’t matter that the parent pays for the health insurance of the child. But HIPAA does give individuals the right to authorize or restrict the disclosure of their health information to others. A HIPAA Authorization allows health care providers to disclose and share medical information about an adult child with the people he chooses to list on the form. The adult child can specify what information they want to share and what information they want to keep private, such as information about sexual, mental, or substance abuse issues. The adult child can also revoke the release at any time. 2. Advance Health Care Directives An advance directive is a document that allows an adult to express their wishes and preferences regarding their medical care, such as what types of treatments they want or do not want, and who they want to make decisions for them if they are unable to do so. An advance directive can name a person as the patient’s medical agent and overrides the next of kin law to give that agent the sole authority to make medical decisions. An advance directive must be signed by the patient and witnessed by two adults or notarized. These forms can vary by state and by campus, so parents of college students should check with their child’s school and state laws to see what forms are required or recommended. Parents should also keep copies of these forms and make sure their child’s health care providers and school officials have them as well. If you are interested in helping your child, get these important documents in place, have them call me! (714) 619-4145

Blended families are becoming more common in today’s society, as more people remarry after divorce or death of a spouse. According to the U.S. Census Bureau, about 16% of children live in a blended family, which includes stepchildren, half-siblings, or adopted children. Blended families face unique challenges when it comes to estate planning, as they must balance the needs and wishes of their current spouse, their children from previous relationships, and their stepchildren. One of the tools that can help blended families achieve their estate planning goals is life insurance. Life insurance is a contract between an insured person and an insurance company, where the company agrees to pay a lump sum of money to the beneficiaries of the insured person upon their death. Life insurance can provide financial protection and peace of mind for the surviving spouse and the children in case of an unexpected loss. Here are some of the ways that life insurance can benefit married couples with children from previous relationships: Provide income replacement: If one spouse is the primary breadwinner or contributes significantly to the household income, their death can cause a major financial hardship for the surviving spouse and the children. Life insurance can help replace the lost income and cover the living expenses, such as mortgage, rent, utilities, groceries, education, and childcare. This can help the family maintain their standard of living and avoid financial stress. Pay off debts: If one spouse has debts that are not jointly held with the other spouse, such as credit cards, student loans, or personal loans, their death can leave the surviving spouse responsible for paying them off. This can reduce the amount of money available for the family’s needs and goals. Life insurance can help pay off these debts and free up cash flow for the family. Cover final expenses: The average cost of a funeral in the U.S. is about $9,000, which can be a significant burden for the surviving spouse and the children. Life insurance can help cover these final expenses and avoid dipping into savings or going into debt. Create an inheritance: If one spouse wants to leave an inheritance for their children from previous relationships, they may face some challenges if they rely solely on their will or trust. For example, if they leave everything to their current spouse, they may not have control over how their spouse distributes the assets to their children after their death. Alternatively, if they leave everything to their children, they may disinherit their current spouse or create resentment among the stepchildren. Life insurance can help create an inheritance for their children from previous relationships without affecting their current spouse’s share of the estate. They can name their children as beneficiaries of their life insurance policy and leave other assets to their current spouse. This way, they can ensure that their children receive a fair and timely inheritance without creating conflicts or delays. Fund a trust: A trust is a legal arrangement where a person (the grantor) transfers assets to another person or entity (the trustee) to hold and manage for the benefit of one or more persons (the beneficiaries). A trust can help blended families achieve various estate planning objectives, such as avoiding probate, reducing taxes, protecting assets from creditors or lawsuits, providing for special needs children, or controlling how and when the beneficiaries receive the assets. However, creating and funding a trust can be costly and complex. Life insurance can help fund a trust by naming the trust as the beneficiary of the policy. This way, the grantor can transfer a large amount of money to the trust upon their death without paying income or estate taxes. The trustee can then distribute the money according to the terms of the trust. As you can see, life insurance can be a valuable tool for estate planning for blended families. To choose the best type of life insurance for your blended family, you should consider your needs, goals, and budget. Call me and ask about how life insurance may help with your blended family estate planning. (714) 619-4145.

For typical homeowners, a house is their largest investment yet most don’t go through the extra step of protecting that asset. If you are a homeowner or have children, or both, then you might seriously consider creating an estate plan that includes a revocable trust. Take care of your estate so that you can relax and focus on what matters most now. Avoid Probate. Assets held in a revocable trust avoid expensive and time-consuming probate; a court supervised process that typically takes months or even years to complete. In California, both the executor and attorney are entitled to receive fees payable from the decedent’s estate. Worse yet, those fees are calculated by statute and based on gross value without considering mortgages or liens: 4 percent of first $100,000 3 percent of next $100,000 2 percent of next $800,000 1 percent of next $9,000,000 0.5 percent of next $15,000,000 Reasonable amount above $25,000,000 As an illustration, the executor and the attorney are each entitled to receive $33,000 for probating a home valued at $2,000,000. If the house has a sizable mortgage, there won’t be much left for your family or friends. These expenses can be avoided by simply investing a relatively minimal amount for a plan now. Protect Your Beneficiaries by Planning in Advance. Minor children may inherit property through probate if a parent dies unexpectedly; and under California law that child is entitled to manage his or her inheritance at 18. The first thing many people do with inherited money is look for ways to spend it. By creating a revocable trust, you can provide thoughtful distribution of assets and ensure funds are spent responsibly. Provide an orderly way to distribute your assets and avoid probate in the process!

The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 was enacted by Congress on December 20, 2019, and signed into law on that date. On July 18, 2024, the Internal Revenue Service released final regulations under the SECURE Act relating to required minimum distributions from retirement accounts (87 Fed. Reg. 10504-01). Under the SECURE Act and the final regulations, most designated beneficiaries of retirement accounts may no longer stretch distributions over their lifetimes. The ability to stretch distributions using a life expectancy calculation is now reserved for individuals who qualify as “Eligible Designated Beneficiaries” (“EDBs”).   EDBs include spouses of account holders, those who have a disability or chronic illness, those not more than 10 years younger than the decedent, minor children of decedents, or “See-Through” trusts. Eligible Designated Beneficiaries Exempt from the 10-Year Rule The SECURE Act provided a few exceptions to the mandatory 10-year withdrawal rule with a list of eligible designated beneficiaries: ● Spouses ● Beneficiaries who are not more than 10 years younger than the account owner ● The account owner’s children who have not reached the age of majority ● Disabled individuals and chronically ill individuals New Provisions in the SECURE 2.0 Act On December 29, 2022, President Biden signed the Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0 Act) which made quite a few enhancements to clarify the original legislation. Several of the key enhancements are summarized below: ● It raises the RBD age for RMDs to 73 in 2023 and 75 by 2033. ● It decreases penalties for not taking RMDs to 25 percent of the RMD amount and 10 percent of IRAs if corrected timely. ● Employees will be automatically enrolled in 401(k) and 403(b) plans but may opt out within 90 days. ● Higher catch-up contributions are allowed for participants over 50 ($7,500 in 2023). ● There is more flexibility in annuity payments paid from qualified retirement plans. ● Early distributions are permitted for long-term care contracts without penalty. ● Qualified charities can be named as remainder beneficiaries after the death of a disabled or chronically ill beneficiary without disqualifying the trust as a see-through trust. ● Plan sponsors may match contributions made on student loan repayments on the same vesting schedule as elective deferrals, effective 2024. ● 529 plans maintained for at least 15 years may be rolled over into a Roth IRA with a $35,000 lifetime limit, effective 2024. Exceptions to the Early Distribution Rule The SECURE 2.0 Act allows exceptions to the 10 percent early distribution excise tax, including the following: ● Qualified births and adoption expenses ● Terminally ill individuals ● Federally declared disasters ● Emergency personal expenses ● Domestic abuse victims The new provisions and exceptions in the SECURE 2.0 Act may change the decisions you have made for your intended beneficiaries and alter the path to achieving your long-term goals. Under the old law, beneficiaries of inherited retirement accounts could take distributions over their individual life expectancy. Under the SECURE Act and SECURE 2.0 Act, the shorter 10-year time frame for taking distributions will accelerate income tax due, possibly bumping your beneficiaries into a higher income tax bracket and causing them to receive less of the funds in the retirement account than you may have originally anticipated. Eligible designated beneficiaries exempt from the 10-year rule may still have the opportunity to benefit from future retirement plan growth. Your estate planning goals likely include more than just tax considerations. You may also be concerned with protecting a beneficiary’s inheritance from their creditors, future lawsuits, and a divorcing spouse. In order to protect your hard-earned retirement account and the ones you love, it is critical to act now. Review Your Revocable Living Trust or Standalone Retirement Trust We may have addressed the distribution of your retirement accounts in your living trust, or we may have created a retirement trust that would handle your retirement accounts at your death. Your trust may have included a conduit provision, which requires that retirement distributions be immediately distributed to or for the benefit of the beneficiaries (rather than being held in trust). With the SECURE Act’s passage, a conduit trust structure may not be the best choice any longer because the trustee will be required to distribute the entire retirement account balance to most types of beneficiary within 10 years of your death (which, as discussed above, can create an income tax headache for the beneficiary). Under the current rules, if a person dies prior to their required beginning date for RMDs, then designated beneficiaries will not be required to take out RMDs during the 10-year payout period (but would need to take full distribution by the end of the 10-year payout period). However, if the person died after their required beginning date, the beneficiary must continue to take out RMDs on an annual basis (with full distribution at the end of the 10-year payout period). We should discuss the benefits of an accumulation trust, an alternative trust structure through which the trustee can take any required distributions and continue to hold them in a protected trust for your beneficiaries. Consider Additional Trusts For most Americans, a retirement account is the largest asset they will own when they pass away. If we have not done so already, it may be beneficial to create a trust to handle your retirement accounts. While many accounts offer simple beneficiary designation forms that allow you to name an individual or charity to receive funds when you pass away, this form alone does not take into consideration your estate planning goals and the unique circumstances of your beneficiary. A trust is a great tool to address the mandatory 10-year withdrawal rule under the SECURE Act, providing continued protection of a beneficiary’s inheritance. If you have beneficiaries with a disability or chronic illness, you may want to consider a special needs or supplemental needs trust. Beneficiaries are exempt from the mandatory 10-year payout rule, giving them more time for the retirement account to grow tax-deferred. Review Intended Beneficiaries With the changes to the laws pertaining to retirement accounts, now is a great time to review and confirm your retirement account information. Whichever estate planning strategy is appropriate for you, it is important that your beneficiary designation is filled out correctly. If your intention is for the retirement account to go into a trust for a beneficiary, the trust must be properly named as the primary beneficiary. If you want the primary beneficiary to be an individual, they must be named on a beneficiary designation form. You should ensure that you have listed contingent beneficiaries as well. If you have recently divorced or married, you will need to ensure that the appropriate changes are made to your current beneficiary designations. At your death, in many cases, the plan administrator will distribute the account funds to the beneficiary listed, regardless of your relationship with the beneficiary or what your ultimate wishes might have been. Other Strategies Although these new laws may be changing the way we think about retirement accounts, we are here and are prepared to help you properly plan for your family and protect your hard-earned retirement accounts. If you are charitably inclined, now may be the perfect time to review your planning and possibly use your retirement account to fulfill your charitable desires. A charitable remainder trust can use annuity and unitrust payments to mimic the “stretch” provided by using life expectancy. Assets are funded into the trust and then liquidated or sold by the trust. The money from the sale is then invested to produce a stream of income. The sale avoids capital gains tax at the trust level because the trust is liquidating the account and is tax-exempt. However, the noncharitable recipient of the income stream will still be responsible for income tax on the distributions. In contrast, you may distribute your entire retirement asset directly to a charity, and they will not have to pay tax on the income from the plan. Additionally, If you have a significant estate, there may be an estate tax charitable deduction. Following the recent changes to the SECURE Act, you may be concerned about the amount of money that will be available to your beneficiaries following your death and the impact that the potential accelerated income tax may have on that ultimate amount. We can explore different strategies with your financial and tax advisors to infuse your estate with additional cash upon your death. Give us a call today to schedule an appointment to discuss how your estate plan and retirement accounts might be impacted by the SECURE Act and SECURE 2.0 Act. If you have any questions about how the SCEURE Act might affect your estate plan, I'd be happy to chat. Call me today! (714) 619-4145 DISCLAIMER: The information provided on this blog is for general informational purposes only. While we strive to ensure that the content is accurate and up-to-date, we make no guarantees about the completeness, reliability, or suitability of the information contained herein. Any reliance you place on such information is strictly at your own risk. We are not responsible for any errors or omissions, or for any losses, injuries, or damages arising from the use of this blog or its content. Additionally, the blog may contain links to external websites, which are provided for convenience. We do not endorse or take responsibility for the content of these external sites. 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