- January 15, 2020
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The SECURE Act is one of the bigger legislative changes in retirement planning in recent years. One of the biggest changes it brings is how assets in IRAs are distributed when the owner dies. In the past, people used the stretch option of the IRA to allow heirs to stretch out distributions over their lifetimes. The IRA could keep growing, while the least possible amount was withdrawn.
The SECURE Act has changed all of this.
Now, only spouses and a small select group of beneficiaries can enjoy the stretch option for IRAs. Anyone else must withdraw all assets in the IRA within ten years of the death of the owner. They could wait ten years and take all the money at once, or take it out gradually over ten years, but there’s no more stretching for decades.
Anyone with an estate plan that included strategic planning for IRAs needs to review their estate plan to see if it still aligns with their overall goals of wealth transfer.
And as trust and estate and elder law attorneys are reviewing their client’s estate plans, this is also the time to review digital asset plans.
With more and more failures of costly legal appeals, the impact of ineffective plans for digital assets are increasingly common. Families facing off against big data companies like Apple, Yahoo! and Google (not to mention the U.S. Treasury) are learning the hard way that without a valid digital asset plan, property and legacies are being lost.
Directive Communications Systems offers a proven platform that gives users the ability to effectively prepare their digital property, assign and legal and valid digital executor of their assets, and protect their digital property.
People rely on their estate plans to protect their hard-earned. Digital estate plans cannot be neglected.