From the tax treatment of a forfeited individual retirement account (IRA) to a US Supreme Court decision affecting Veterans’ disability claims and FinCEN’s issuance of an interim final rule limiting enforcement of the Corporate Transparency Act (CTA), we have recently seen significant developments in estate planning, elder and special needs law, and business law.

Written by Jayna M. Voss, JD

High-net-wealth individuals are turning to dynasty trusts, not only to avoid federal estate taxes but also to protect assets from general creditors and spendthrift heirs. Even those who do not have a taxable estate should consider a dynasty trust to preserve and grow wealth while ensuring that their loved ones are protected. 

Many people are aware of the advantages of conventional trusts and incorporate them into their estate planning, but they often design the trusts so that assets pass outright to their children when those children attain certain ages or milestones. When a conventional trust distributes assets outright to the beneficiary, the distributed assets are includible in the beneficiary’s estate and possibly subject to estate tax when the beneficiary dies. If, after an outright distribution, the beneficiary goes through a divorce or has other creditors, those assets could be at risk. Family assets that are distributed to beneficiaries with no restrictions are often depleted by the third generation due to mismanagement or spendthrift heirs.

From new legislative proposals relating to the federal estate tax to the use of vehicle purchases as a Medicaid spend-down strategy and the Treasury Department’s suspension of the enforcement of the Corporate Transparency Act (CTA) against US citizens and companies, we have recently seen significant developments in estate planning, elder and special needs law, and business law.