Accumulation Trusts Versus Conduit Trusts: New Rules for Old Tools Under the SECURE Act

The Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act)¹ slams shut a valuable income-tax benefit for most inherited IRAs.² A clear result of the SECURE Act is that the “stretch” inherited IRA is now unavailable for most beneficiaries other than a surviving spouse, and a 10-year payout³ is the new norm. The adage is that “where one door closes, another opens,” but the new rules suggest that estate planners will need to hold all the keys, and to pick the right one depending on the client’s situation. For the reasons discussed in this ...