Law Offices of Frye & Vazquez, P.L.
Call Today. 305-508-5749 | 877-421-5473

Estate plans affected by IRA trust changes

Florida residents who have IRAs should be aware of how a provision of the SECURE Act, which was passed on May 23, 2019, will impact their IRAs. It is also important to understand how the new legislation will impact any estate plans that include IRA trusts.

The provision allows the elimination of the stretch IRA, a type of IRA that gives beneficiaries the option to extend, over the course of their lifetimes, the distributions from IRA accounts that they have inherited. The stretch IRA has now been replaced with a 10-year payout for the majority of non-spouse beneficiaries, which includes trusts.

There has been a longstanding sentiment in Congress that retirement accounts should be used solely for retirement and not as tools for estate planning. In the Senate, members are considering a bill that will lower the payout period for beneficiaries who inherit retirement accounts to just five years, with some exceptions.

For people who have designated a trusts as the beneficiary of their IRAs, the change in the law means that they cannot rely on such estate plans ensuring that the funds will be controlled for the beneficiaries or that the stretch IRA can be used. The changes will impact individuals with large IRAs the most, as they tend to be more likely to assign a trust as the beneficiary of an IRA so that the distributions can be controlled and the IRA preserved for an extended time.

An attorney who practices estate planning may assist clients who have IRAs with determining how changes in the IRA may impact their estate plans. The attorney might consider the goals of a client and may recommend alternative estate planning vehicles and strategies to ensure that the funds left to certain beneficiaries can be properly managed.

No Comments

Leave a comment
Comment Information

What Our Clients Are Saying

  • I have known and worked with Austin Frye and his team since 2008. In that time he has helped serve both my business and personal legal planning needs. From guidance on reviewing and keeping shareholder and state documentation up to date... - Robert
  • It is difficult enough to cope with the emotional challenges of closing a parent's estate, and when you are also faced with the issue of your parents having insufficient documentation, and being remote from your siblings… - Zara L.
  • Austin Frye provided legal services to my father while alive and to his estate after his death; when showing the EP docs his firm prepared to other professionals (lawyers, financial advisors, accountants)… - Mark S
  • I've been a client of Austin Frye's for over 10 years. In that time, he's handled my estate/trust planning and asset protection as well as complicated business deals. - Leslie
  • Mr. Frye recently set up a complicated special needs trust for my son and, as usual, did a great job explaining it and in putting our minds at ease about our son's future well-being. - Dr. Howard
  • Massachusetts Bar Association
  • The Florida Bar 1950
  • CFP
  • Florida Bar Elder Law Member
  • Academy Of Florida Elder Law Attorneys
  • Florida bar Business law Member
  • NAELA National Academy of Elder Law Attorneys, Inc.
Email Us For a Response

Contact Us For Personal Attention To Your Legal Matter

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Location

Get In Touch With Us
20900 W. Dixie Highway
Miami, FL 33180

Toll Free: 877-421-5473
Phone: 305-508-5749
Map & Directions