As we approach the final months of 2024, it’s crucial to pause, assess, and prepare for changes impacting your estate plan. With numerous new regulations, evolving laws, and economic uncertainties, now is the time to evaluate your plan and adjust it to secure your legacy. Here’s a guide to the key issues you need to consider, why timing matters, and how Cain, Cain & Janik can help you navigate this complex landscape without relying on automated AI solutions.
Corporate Transparency Act: Act by December 31, 2024
The Corporate Transparency Act (CTA) is a significant shift for business owners, especially those with control over various entities. The new reporting requirements, due by the end of the year, extend beyond just filling out forms. The CTA could impact trusts, dissolve entities, and even require updates to shareholder agreements. Noncompliance penalties can be as steep as $600 per day per infraction, or up to two years of jail time, so tackling this now is essential.
2026 Tax Exemption Reduction: Begin Planning Now
In 2026, the estate tax exemption is set to be halved, but waiting until next year could complicate your options. Actions like setting up Spousal Lifetime Access Trusts (SLATs) or retitling assets should be done over multiple tax years to avoid triggering IRS scrutiny under the reciprocal trust and step transaction doctrines. Planning before December 31, 2024, allows for greater tax efficiency, offering your estate more protection when the exemption change hits.
Election Uncertainty: Preparing for Any Outcome
The 2024 presidential election may bring significant changes to estate tax policy. Preparing flexible options now—such as establishing grantor trusts or retitling assets—will ensure you have strategies ready to adapt to any policy shifts. Cain, Cain & Janik can help you design a plan that accommodates these potential changes.
Final SECURE Act Regulations: New Rules for IRAs Starting January 1, 2025
The SECURE Act brings final rules affecting retirement accounts, including IRAs held in trusts. If your plan involves minors or other beneficiaries, take advantage of the new regulations for multi-beneficiary trusts and ensure compliance with the ten-year rule for required minimum distributions. Thoughtful tax planning, especially with Roth IRAs, can maximize tax-free growth and align with your broader estate plan.
Increased IRS Audits on High-Income Taxpayers
The IRS has increased its audit rates for high-net-worth individuals by 50%. Now is the time to address any potential vulnerabilities in your tax strategy before receiving an audit notice. By working with Cain, Cain & Janik, you’ll ensure your estate plan is as robust as possible.
The Importance of Human Expertise in Estate Planning
At Cain, Cain & Janik, we believe that estate planning requires skilled expertise and nuanced insight. One-size-fits-all approaches overlook critical details that affect your unique goals and family dynamics. We work closely with each client to develop personalized strategies that adapt to today’s rapidly changing legal landscape.
Don’t Wait—Start Planning Today
The year-end rush is here, and the complex changes in estate planning regulations mean there’s no time to delay. Cain, Cain & Janik is ready to help you review and adjust your estate plan to meet your needs, now and in the future.
Stay Ahead with Cain, Cain & Janik’s Estate Planners for Life Maintenance Program
In times of constant change, keeping your estate plan up-to-date is essential. Our Estate Planners for Life maintenance program offers an easy way to stay on top of legal, tax, and regulatory updates like those happening now. Our EPFL clients receive regular reviews, personalized updates, and proactive recommendations, ensuring your plan always aligns with the latest laws and your evolving needs. Protect your legacy with peace of mind, knowing you have a dedicated team keeping your estate plan current. Request a consultation to learn how you can become an Estate Planner for Life!