The SECURE Act of 2019: Does it Affect You?

Background As you may be aware, on Friday, December 20, 2019, President Trump signed legislation that contains provisions from the Setting Every Community Up for Retirement Enhancement Act of 2019 (the “ SECURE Act,” or “ Act”). The SECURE Act includes several provisions affecting Individual Retirement Accounts (“IRAs”). No IRA? No Problem. If you do not have an IRA, this change in the law will not affect you and your estate planning documents. If you have an IRA that is worth over $500,000 or makes up a substantial part of your overall estate plan, and your IRA designates a trust …

Avoiding Constructive Receipt: Paying Tuesday for a Hamburger Today

Wellington Wimpy, the gluttonous gourmand from the Popeye comics famously said, “I’d gladly pay you Tuesday for a hamburger today.” Although the payment was to be made at a later date (if at all), the agreement between Wimpy and the Rough House diner was made at the time the “sale” was consummated. Assuming Wimpy made good on his promise and paid for the hamburger on Tuesday, when did the diner receive its income? As even the most cursory glance at the burgeoning Internal Revenue Code will attest, this basic question of “When is income received?” is not as simple as …