GST Tax-Efficient Planning: Beneficiary Deemed Owner Trust and Accumulation Trust Planning for Large Qualified Retirement

Private client attorneys Lisa Presser and Brian Balduzzi authored an article for Law.com on the Setting Every Community Up for Retirement Act of 2019 (the SECURE Act).

Recent decisions changed the distribution rules for beneficiaries inheriting defined contribution plan benefits in 2020 and later. A designated beneficiary of plan benefits who does not qualify as an “eligible designated beneficiary” under the SECURE Act must take annual required minimum distributions (RMDs) for each year following the year of the death of the account owner who reached her required beginning date and must withdraw the entire remaining balance of the plan benefits by the end of year 10 following the year of this death.

The coauthors discussed the impact of the SECURE Act for designated beneficiaries of inherited plan benefits, accumulation trusts for qualified retirement plan benefits, beneficiary deemed owner trusts, application of BDOT accumulation provisions, and considerations for BDOT accumulation trusts.

The full article is available to Law.com subscribers.