A trial court dismissed stepchildren’s challenge of their disinheritance. An appeals court wants more information on how it reached the decision.

Kent, WA -- (ReleaseWire) -- 03/25/2020 -- At the trial court involving the validity of a will, a judge ruled that the decedent's siblings were the rightful heirs. However, the appeals court (In re the Matter of the Estate Of Cecilia Brost) wants clarification on the evidence the court relied on to make that decision.

Stepchildren Filed a TEDRA Petition

The Trust and Estate Dispute Resolution Act (TEDRA) is a Washington State statute that governs many disputes over the distribution of assets. As explained by Renton will attorney Dan Kellogg, "When a party files a TEDRA petition, they are essentially taking the steps to bring a lawsuit regarding who can claim assets. TEDRA is used to resolve many issues—from the competency of the decedent to cases of intestate succession." In this case, the stepchildren filed a TEDRA petition claiming that the decedent's true intention was to pass her estate to them, not to her siblings.

Trial Court Determined the Will Unambiguously Disinherited the Stepchildren

 The trial court that heard the case dismissed the TEDRA petition filed by the stepchildren. As stated by that court, the will unambiguously disinherited them. In accordance with Washington State law, outside evidence—often referred to as "extrinsic" evidence—could not be considered. Extrinsic evidence is generally only admitted if there is an ambiguity that must be resolved. If the will is legally valid and its instructions are clear, then whatever is written in the will should be upheld. In these proceedings, the trial court determined that the will made the siblings the proper heirs.

Appeals Court Remanded the Case for Clarification of Evidence

The stepchildren filed an appeal challenging the trial court's refusal to allow extrinsic evidence in for consideration. The appeals court has determined that, at the current time, it cannot make a ruling on this issue.

To be clear, the court is not ordering a new trial in the case or any specific procedure. Instead, it wants to know the precise evidence and testimony that the trial court used in rendering its initial decision in favor of the siblings. Only then will the court be able to fairly review and adjudicate the appeal filed by the stepchildren.

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The SECURE Act took effect on January 1st, 2020—it changes the estate planning rules for people with retirement accounts.

Kent, WA -- (ReleaseWire) -- 02/03/2020 -- On January 1st, 2020, the Setting Every Community Up for Retirement Enhancement (SECURE) Act officially went into effect. The legislation, which garnered significant bipartisan support in both the House of Representatives and the Senate, was signed into law by President Trump last month. The law puts sharp new limits on the use of so-called 'Stretch IRAs'—which were long a popular estate planning strategy.

Many Beneficiaries Can No Longer Stretch Tax-Deferred Investment Holdings

Under the old rules, most people who inherited a tax-advantaged retirement account, such as a traditional IRA or a Roth IRA, from a loved one were permitted to "stretch" withdrawals over the course of their life. In other words, they could take the minimum required distribution during each period. Doing so offered significant financial advantages, as it allowed the investment holdings in the account to continue to earn returns on a tax-deferred basis.

Under the SECURE Act, most beneficiaries will now be required to take all of their withdrawals on an accelerated ten year basis—meaning, access to the Stretch IRA is no longer an option that is available to everyone. The federal government is limiting access to this strategy. Notably, conduit trusts, which were often used in conjunction with Stretch IRAs, may now create adverse financial ramifications.

The SECURE Act Creates Five Exceptions to the Elimination of Stretch IRAs

It should be noted that the SECURE Act carves out five specific exceptions to the new rules. A beneficiary can still take minimum required payouts and stretch their tax-deferred retirement investments if they fit into one of the following five categories:

1. Surviving spouses;
2. Children who are minors;
3. I0ndividuals with disabilities;
4. Individuals with a chronic illness; and
5. Individuals within ten years of age of the original plan participant.

Careful Estate Planning May Mitigate the Impact of the Changes

With a federal law in place, it may be the appropriate time to update your estate plan. As noted by Renton, WA estate planning attorney Dan Kellogg, "The federal reforms reduce the value of a popular estate planning option for retirement account holders. If you are one of the many Americans affected by these changes, there may be strategies available to limit any adverse effects of the statutory changes. As with other estate planning issues, you can best protect your financial interests by taking a proactive approach.

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If passed into law in its current form, the SECURE Act could eliminate the Stretch IRA.

Kent, WA -- (ReleaseWire) -- 08/08/2019 -- In May of 2019, the House of Representatives passed the Setting Every Community Up for Retirement Enhancement Act or SECURE Act by a vote of 417 to 3 — an overwhelming bipartisan majority in an era where that is increasingly uncommon. As of August of 2019, the bill is still making its way through the Senate. Though, most congressional observers expect that it will eventually pass, at least in some form.

The SECURE Act Reforms Retirement Savings Plans

The SECURE Act proposes a number of different changes to retirement savings accounts. Many of these changes are relatively minor and highly technical. Beyond that, the reforms mostly create additional opportunities for people who are saving for retirement. That being said, there is an important provision within the SECURE Act that could have significant ramifications for some people who are creating their estate plan.

Strict New Limitations May Be Put on Stretch IRAs

Notably, the SECURE Act proposes strict new limitations on an estate planning strategy referred to as the Stretch IRA. Essentially, a Stretch IRA allows a person to pass on their Individual Retirement Account to a non-spouse beneficiary, without it immediately losing its tax-deferred status. Beneficiaries can withdraw assets from a Stretch IRA very slowly, thereby maintaining protection for decades.

In other words, the IRA can be passed from generation to generation, all the while retaining its tax protection. This is valuable. As Renton, WA estate planning attorney Dan Kellogg notes "Tax considerations are a key part of effective estate planning." However, this estate planning strategy may not survive the Secure Act — at least in the bill's current form. Under the Secure Act, beneficiaries would be required to withdraw all assets in a Stretch IRA within ten years of the death of the benefactor.

The Senate Still Needs to Pass the Bill

Of course, the nuts and bolts of the SECURE Act will only be relevant if the Senate actually passed the bill and it is signed into law by the President. While the Senate is expected to take action on the legislation after the August recess, there are some senators who prefer an alternative bill called the Retirement Enhancement and Savings Act (RESA). Interested parties should keep their eye on what happens to Stretch IRAs.

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Recently, the Consumer Financial Protection Bureau (CFPB) released a new report on elder financial abuse in the United States.

Kent, WA -- (ReleaseWire) -- 03/28/2019 -- According to the CFPB, the nation's largest private financial institutions state that they have received massive amounts of elder financial fraud. They report more than $6 billion in elder financial fraud between 2013 and 2017. Even more alarming, the agency cautions that the true extent of senior citizen financial abuse is almost undoubtedly far higher.

Elder financial exploitation goes systemically underreported. The CFPB estimates that there were more than 3.5 million incidents of elder financial exploitation in 2017 alone.Elder financial abuse comes in a wide range of different forms.In some cases, this is a type of fraud committed by an overseas scammer. Someone using the internet, a phone call, or the postal service to carry out their illicit scheme. In other cases, elder financial fraud is committed by close friends or family members . An unscrupulous person using their position of trust to take advantage of a vulnerable senior citizen.The CFPB recommends that a person who has been the victim of elder financial fraud reach out to their local adult protective services agency or to a private legal professional. Depending on the specific nature of the incident, there may be options available to try to recover money or property lost in a fraud scheme.

Notably, the best way to protect a vulnerable elderly person is by taking proactive measures.As explained by Renton, WA estate planning attorney Dan
Kellogg, "Estate planning is about more than dividing and distributing assets. There are many cases in which older people are no longer able to effectively manage their own financial or legal affairs. Using estate planning tools such as giving a trustworthy family member power of attorney or setting up a trust to help manage and protect assets can dramatically reduce the risk of a vulnerable person becoming a victim of financial fraud or financial exploitation."The CFPB notes that many elder financial fraud victims lost tens of thousands of dollars. Often, the money was not lost all at once, but instead over multiple, ongoing fraudulent transactions. To help reduce the rate of elder financial exploitation; the

CFPB has teamed up with the Federal Deposit Insurance Corporation (FDIC) to create Money Smart for Older Adults. A program designed to raise awareness among senior citizens and caregivers; on how to prevent and respond to elder financial fraud.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm