Legal

from The Scottsdale Standard, March 2020

Real Estate

CHANGES IN THE LAW MAY CHANGE YOUR ESTATE PLAN FOR YOUR RETIREMENT ACCOUNTS By Libby Banks, the Law Office of Libby Banks, retirement accounts could stretch out distributions Just as important, if you haven’t had a review of your PLLC over their individual life expectancy, meaning your estate plan in a while, you should make an appointyounger beneficiaries would take smaller distributions ment with an attorney to go over it. I recommend a

Anew law governing beneficiaries of your usually over a long time period, resulting in lower review at least every three years. I’m happy to help! retirement accounts could create a tax disaster taxes. Under the SECURE Act, most beneficiaries Just call our office at 602-375-6752 or schedule an or result in large distributions to beneficiaries (not including spouses) must withdraw the entire appointment via our website: LibbyBanks.com/sched(like minors, young adults and irresponsible heirs) IRA over a period of 10 years. That shorter 10-year ule-estate-planning-meeting. who are ill-equipped to manage the funds. time frame for taking distributions will result in the That law, the Setting Every Community Up for Retirement Enhancement Act (SECURE Act) became Your old trust needs a review and a possible change effective January 1, 2020. This law may upset your because a trust created while the old law was in place estate plan because the Act requires most designated took into account the ability to stretch retirement beneficiaries (other than spouses) to withdraw the account distributions out over a beneficiary’s lifetime. entire balance of your retirement account within 10 With that option eliminated, that same helpful trust years of inheriting the account. could now result in much higher taxes, and large For anyone who has their trust as the beneficiary not be what you want. of their retirement account, it is imperative to have acceleration of income tax due. distributions to the ultimate beneficiaries, which may a trust review and evaluate the options for their This change in law means that a proper analysis of beneficiaries. your estate planning goals, and a review of your estate documents is needed to be sure you have properly Under the old law, all beneficiaries of inherited planned for your beneficiaries.

Call us today to schedule your FREE Estate Planning Consultation

Our Estate Planning in Phoenix and Scottsdale is highly customized to meet your unique family situation, assets, values, and personal goals. Our complimentary first meeting allows you to get to know Libby, our Estate Planning attorney and talk about your unique situation and what plan will best fit your needs.

Remember, when you choose Libby you are not only hiring someone to prepare your Estate Plan, you are choosing a seasoned Estate Planning attorney to guide you through this often complex process and raise questions you might not have considered. You are choosing an experienced professional to create a plan that serves your family in the way that you want and, after you are gone, a trusted advisor that your loved ones can depend on.

Come see us in our new, convenient office located just down the street at 5010 E. Shea Blvd, Suite 205 Scottsdale, AZ 85254 602.375.6752 | www.libbybanks.com | libby@libbybanks.com