The Secure Act, Cares Act, and Future Changes to the Estate Tax Exemption
Estate planning is enjoying a renaissance in the wake of 2020 as clients realize that death and incapacity are inevitable. In the wake of the Tax Cuts and Jobs Act, the Secure Act, and the Cares Act, clients are scrambling to analyze opportunities to minimize future income and estate tax. In this course we will review and analyze the income tax impact to beneficiaries of inherited IRAs and explore estate planning techniques that can address these concerns. Additionally, we will review the impending decrease in the estate tax exemption under the Tax Cuts and Jobs Act and explore the details of complex estate tax planning strategies that can prepare your clients for the exemption decrease.
Publication Date: January 2021
Designed For
Attorneys, CPAs, and Enrolled Agents.
Topics Covered
- Key Estate Planning Considerations
- Powers of Attorney
- Dying without a Will
- Benefits of Trust Planning
Planning for the Inheritance of Retirement AssetsSecure Act: Delayed Required Beginning Date, Elimination of Contribution Age Limit, Inherited IRA Withdrawal PeriodCares Act: Withdrawal Penalty Waivers & RMD HolidayChanges to Gift & Estate TaxEstate Tax Exemption Reduction under the Tax Cuts & Jobs ActRegulatory and Case Law DevelopmentsExemption Maximizing GiftingPortability
Learning Objectives
- Recognize how to summarize the main estate planning techniques and when clients should seek out estate planning services
- Describe the changes to inherited retirement accounts under the Secure Act and Cares Act
- Recognize how to analyze the potential tax impacts related to changes to the IRA contribution, withdrawal, and beneficiary rules
- Describe how to recommend estate and financial planning ideas for clients looking to reduce tax liability while achieving estate planning goals
- Identify the future estate tax credit decrease under the Tax Cuts and Jobs Act and the implications to clients with significant assets
- Recognize which decisions would be made by an agent under a Medical Power of Attorney
- Describe which document can accomplish the goal of avoiding probate
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Klaralee R. Charlton
Klaralee Charlton is a Partner at 3i Law in Denver, Colorado. She practices fiduciary tax, estate administration, and business transactional law. As part of her practice, she guides clients through the process of administering a loved one’s estate including the collection, valuation, management and transfer of assets including financial accounts, real estate, and business interests with a focus on minimizing estate and income tax liability. Klaralee also works closely with trustees of ongoing trusts to ensure compliance and prepares clients’ fiduciary income tax returns annually.
Klaralee has written and lectured on topics including estate and gift tax, fiduciary income tax reporting and U.S. regulations governing the valuation of small family businesses. She is an active member of the Colorado Bar Association, Tax Section and Adjunct Profession at the University of Denver, Graduate Tax Program.
She earned her J.D. in 2011 from the University of Utah, S.J. Quinney College of Law, her LL.M. in Tax Law from the University of Denver in 2013, and her B.A. in political science in 2009 from Bryn Mawr College. She is admitted to practice in both Colorado and Montana.