Estate planners may want to consider advising clients to leave more of their retirement benefits to children with special needs and non-retirement accounts to other children in light of recent changes to the retirement planning landscape. The SECURE Act (Setting Every Community Up for Retirement Enhancement) established an exception for special needs trusts to qualify for stretch distributions. The SECURE Act 2.0 enhanced this crucial exception by allowing special needs trusts to name charitable organizations as remainder beneficiaries and maintain eligibility for stretch distributions.
Retirement planning has undergone a significant transformation with the introduction of the SECURE Act 2.0. One noteworthy provision is that special needs trusts with charitable organizations as remainder beneficiaries now qualify for stretch distributions. This development marks a pivotal change for families seeking enhanced financial security and flexibility for their loved ones with special needs while encouraging charitable intent.
