From long-awaited guidance on the tax treatment of cryptocurrency to the banning of forced arbitration agreements for workers in California—we’ve recently seen some impactful developments in estate planning and business law. To ensure that you stay abreast of these legal changes, we’ve highlighted five noteworthy developments and analyzed how they may impact your estate planning and business law practice. 

Happy Veterans Day! In honor of our veterans, let’s take a look at the structure of the Veterans Asset Protection Trust (VAPT). The VAPT is a powerful tool that can protect assets while enabling the grantor to qualify for needs-based pension benefits. There are two sub-trusts within the VAPT – one is a grantor sub-trust and the other is a non-grantor sub-trust. Why is it structured this way? The Veterans Affairs (VA) has a direct line of communication with the IRS. The VA routinely checks the tax returns of pension recipients, to get income information. Because of this, it is best to avoid any “phantom income” from a grantor trust being reported on the grantor’s tax return. This additional reported income may jeopardize eligibility for benefits.

When consumers experience a “breach” of certain categories of information, state laws have required organizations to notify those affected and, in some instances, to also notify state agencies, consumer reporting agencies, and the media. A growing number of states—including California, Colorado, Connecticut, Maryland, Massachusetts, Texas, and, most recently, New York—have gone a step further, requiring organizations to develop and implement “reasonable safeguards” to secure the personal information they collect and use.