Estate planning is a quickly changing field, constantly influenced by updates in elder law, tax law, and family law. Recent legislative changes, including the SECURE Act, the Corporate Transparency Act, modifications to Medicaid qualification rules, and potential changes in law firm ownership requirements, have made it essential for estate planning attorneys to stay updated.
To keep up to date with recent legal changes in Estate Planning, At Lawyers With Purpose (LWP), our Monthly Member Training Roundtables provide an invaluable resource, equipping attorneys with the knowledge and tools to learn about these changes effectively.
Significant Legal Changes in Estate Planning 2024
The SECURE Act
In recent years, the SECURE Act has significantly impacted the retirement planning landscape. This legislation redefined the categories of IRA beneficiaries, introducing designated beneficiaries, eligible designated beneficiaries, and non-designated beneficiaries, each with distinct rules for inheriting IRAs. While some beneficiaries still benefit from stretching IRA distributions over their lifetime, most are now subject to a 10-year payout period.
Beneficiaries inheriting IRA funds face unexpected tax consequences, as they must distribute the assets within a decade. This often coincides with their highest-earning years, potentially pushing them into higher tax brackets. Although beneficiaries can use the inherited funds to cover taxes, estate planning attorneys must explore strategies to minimize the tax burden. These strategies might include shifting the tax responsibility to the IRA owner during their lifetime or considering alternate beneficiaries, such as disabled individuals who can still enjoy a lifetime stretch, or charitable organizations.
Understanding these nuances and guiding clients through these complexities will set estate planning attorneys apart in their communities.
Corporate Transparency Act
The Corporate Transparency Act, signed in 2020 and taking effect in 2024, mandates increased transparency for business owners to combat financial crimes. However, its constitutionality is currently being litigated, with debates on its impact on small businesses. Some view the legislation as an unconstitutional burden, while others see it as necessary to address financial crimes.
Estate planners, CPAs, and business owners are closely monitoring the outcome of these litigations. The impact of this legislation is significant, as it requires small business owners to comply with new reporting requirements, adding administrative burdens and potential legal complexities.
Non-Lawyer Ownership of Law Firms
Historically, the American Bar Association’s Model Rules prohibited non-lawyer ownership of law firms. However, states like Utah and Arizona have relaxed these restrictions, allowing for some non-lawyer investment and ownership in legal service companies. California is also beginning to loosen its rules regarding fee-sharing between attorneys and non-attorneys.
The rationale behind these changes is to make legal services more cost-effective and accessible. The rise of legal-adjacent services and online platforms offering low-level legal services at lower prices has driven this shift. Estate planning attorneys should be aware of these changes but focus on delivering high-quality, valuable services to distinguish their practice in the community.
Estate Tax Exemption Sunset
The estate tax exemption, doubled by the Tax Cuts and Jobs Act in 2017, is set to expire on December 31, 2025. Without legislative intervention, the exemption will revert to 2017 levels, adjusted for inflation. This impending change raises significant planning questions for estate planning attorneys, particularly for high-net-worth clients.
Time is of the essence for advanced tax planning, as asset transfers often need to occur in specific tax years. Estate planning attorneys must proactively discuss the potential impacts with their clients and develop strategies to mitigate tax liabilities. The upcoming presidential and congressional elections will likely influence whether the estate tax sunset proceeds as scheduled.
Benefits of Monthly Member Training Roundtables
The Monthly Member Training Roundtables at LWP are crucial for estate planning attorneys. These one-hour webinars cover a diverse range of topics, including legal education, operations, marketing, finance, and team training. Hosted by LWP specialists, these sessions offer prepared content along with interactive discussions, creating a collaborative learning environment.
Staying Updated and Compliant
These webinars ensure members stay informed about legal changes and maintain compliance with relevant estate planning statutes and regulations. Recent webinars have addressed the Corporate Transparency Act, state-specific topics like Transfer on Death Deeds, and Michigan’s adoption of the Uniform Power of Attorney Act. By keeping abreast of these changes, LWP members can confidently guide their clients through changes in the law.
Enhancing Practice and Client Service
Beyond compliance, the webinars provide practical insights on adapting business operations, adjusting pricing strategies, and marketing approaches. This comprehensive approach helps attorneys enhance their practice, making them more efficient and competitive. Offering the most up-to-date information and innovative solutions establishes LWP members as trusted advisors in their communities.
Many LWP members have successfully navigated recent legal changes with the support of these training roundtables. For instance, members have effectively implemented strategies for handling IRA distributions under the SECURE Act, minimizing tax burdens for beneficiaries. Others have streamlined their practice operations based on insights from webinars, leading to increased efficiency and improved client satisfaction.
Future Training Topics by Lawyers With Purpose
Looking ahead, LWP will continue to address pressing issues like the sunset of the estate tax exemption, advancements in legal technology, and ongoing developments related to the SECURE Act and Corporate Transparency Act. The topics for these webinars are often suggested by members, ensuring they are timely and relevant.
Want to join Lawyers With Purpose?
For estate planning attorneys, staying informed about legal changes is crucial. LWP’s Monthly Member Training Roundtables offer an excellent opportunity to gain valuable insights, improve practice operations, and connect with a supportive community of like-minded professionals.
Join Lawyers With Purpose to access these invaluable training sessions and stay ahead in the ever-evolving field of estate planning law.
Schedule a demo today by contacting Briana Moriarty at bmoriarty@lawyerswithpurpose.com.
For more information about upcoming sessions, visit the LWP events calendar
