From the Internal Revenue Service’s (IRS’s) announcement of a two-year transition period for the SECURE 2.0 Act’s Roth catch-up contribution requirement to the Equal Employment Opportunity Commission’s (EEOC’s) first settlement against an employer for the unlawful use of artificial intelligence to hire an employee, we have recently seen significant developments in estate planning, elder law, and business law. To ensure that you stay abreast of these legal changes, we have highlighted some noteworthy developments and analyzed how they may impact your estate planning, elder law, and business law practice.

Traditional estate tax planning often includes funding a credit shelter trust (also known as a bypass trust or family trust) up to the amount of a decedent’s unused estate tax exemption, then funding any assets in excess of the exemption amount into a marital trust for the benefit of the decedent’s surviving spouse. This type of planning was appropriate for many married couples who wished to maximize their remaining estate tax exemptions while leaving most assets for the support of a surviving spouse and deferring or avoiding estate taxation under the unlimited marital deduction.

By Phoebe Stone, JD, MA (Bioethics) 

When creating an estate plan for a married couple, there are many ways to plan for its division into marital and nonmarital shares upon the death of the first spouse. The circumstances and the client’s wishes (as informed by your professional guidance) will dictate the most appropriate design. For example, planning for couples of very modest means will likely include different choices than planning for high-net-worth couples; planning for an elderly couple in a decades-long marriage who have only shared children may look different from planning for blended families. To best serve your clients, it is critical that you understand the options available and are able to communicate the benefits and burdens associated with each option in ways your clients will understand so that your expertise can appropriately guide their choices.