Estate planning news 2019

Here are some notable estate planning news stories from 2019:

  1. SECURE Act Passes: The Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law in December 2019, making significant changes to retirement accounts and estate planning. The law increases the required minimum distribution (RMD) age from 70.5 to 72, allows for penalty-free withdrawals from 401(k)s and IRAs for birth or adoption expenses, and eliminates the stretch IRA for non-spouse beneficiaries.
  2. Estate Tax Exemption Increases: The IRS announced in June 2019 that the estate tax exemption would increase to $11.4 million per individual for 2019, up from $11.18 million in 2018. This means that more individuals will not be subject to estate taxes.
  3. New York Enacts Comprehensive Estate Planning Legislation: In June 2019, New York Governor Andrew Cuomo signed a bill that makes significant changes to the state's estate planning laws. The new law, effective January 1, 2020, increases the state's estate tax exemption, eliminates the state's gift tax, and introduces a new "step-up" in basis for inherited assets.
  4. California Enacts New Trust Code: California Governor Gavin Newsom signed a bill in September 2019 that updates the state's trust code, making it more modern and flexible. The new law, effective January 1, 2020, allows for more flexibility in trust drafting, simplifies the process of creating and administering trusts, and provides greater protection for trust assets.
  5. IRS Issues New Guidance on Cryptocurrency and Estate Planning: In October 2019, the IRS issued new guidance on the taxation of cryptocurrency and its impact on estate planning. The guidance clarifies that cryptocurrency is considered property for tax purposes and provides rules for reporting and paying taxes on cryptocurrency transactions.
  6. Estate Planning for Digital Assets: As more individuals own digital assets, such as cryptocurrencies, online accounts, and social media profiles, estate planning professionals are recognizing the need to address these assets in estate plans. In 2019, there was a growing trend towards including digital asset planning in estate planning documents and strategies.
  7. Increased Focus on Long-Term Care Planning: With the rising cost of long-term care, estate planning professionals are emphasizing the importance of long-term care planning in estate plans. This includes strategies such as Medicaid planning, long-term care insurance, and asset protection planning.
  8. Estate Planning for Blended Families: As more families blend through remarriage, estate planning professionals are recognizing the need to address the unique challenges and opportunities that arise in these situations. In 2019, there was a growing trend towards creating customized estate plans that take into account the complex family dynamics of blended families.
  9. IRS Issues New Guidance on Charitable Giving: In August 2019, the IRS issued new guidance on charitable giving, including rules for deducting charitable contributions and reporting requirements for charitable organizations. The guidance aims to simplify the process of giving to charity and ensure compliance with tax laws.
  10. Estate Planning for Small Business Owners: Small business owners face unique estate planning challenges, including the need to protect their business and ensure its continuation after their death. In 2019, there was a growing trend towards creating customized estate plans that address the specific needs of small business owners, including strategies such as buy-sell agreements and business succession planning.

These are just a few of the notable estate planning news stories from 2019. As the estate planning landscape continues to evolve, it's essential for individuals and families to stay informed and adapt their estate plans accordingly.