BIAT provisions can be added to almost all new and existing revocable living trusts, retirement benefit trusts and irrevocable trusts such as spousal lifetime access trusts (SLATs), irrevocable life insurance trusts (ILITs) and the like.

We strongly recommend that you review your plan periodically and make updates as necessary. Failing to do so could result in unintended consequences that may not align with your wishes, loss of potential estate and income tax savings, and possible non-compliance with the latest legal regulations. 

Here are a few factors that trigger an estate plan review:

Change in family circumstances: Marriage, birth/adoption of a child, divorce, death of loved one, new employment status or moving to a different state

Change in financial situation: Acquiring new assets or investments, starting or selling a business, collecting an inheritance

Change in the law: New state and federal legislation such as: 

• The current all-time high estate and gift tax exemption of $12.92 million is scheduled to decrease to $5 million on December 31, 2025 (adjusted for inflation).

• The new Illinois Trust Code, effective January 1, 2020, contains law modifications which apply to all Illinois trusts.

• The federal SECURE Act, effective January 1, 2020, has significantly changed retirement benefit planning

Change in your healthcare wishes: Updates to living will or healthcare power of attorney

K+H’s proprietary Beneficiary Income Accumulation Trust (BIAT) provisions create a streamlined solution to most existing estate plans and provide significant tax savings; especially for IRA, 401(k) and other retirement plans. 

Kelleher + Holland's BIAT provisions may help you obtain significant tax, time, and monetary savings such as:

• Income tax savings

• More income tax deductions

• Estate tax savings

• Generation-skipping tax savings

• Transfer tax savings

• Lower professional administrative fees

• Less paperwork

• Enhanced long-term creditor protection

• More money to beneficiaries

The implementation of these strategies can take time; consider immediately reviewing your estate, business, and tax planning options well in advance of the anticipated surge in demand during 2024 and 2025. By being proactive, you can leverage the expertise of your legal and tax professionals who still have ample time to assist you.

Contact one of our estate planning attorneys at Kelleher + Holland today to properly prepare your estate plan to protect your assets in the future.