When retirement accounts pass via trust to a minor child, both time and tax planning become very important. The SECURE Act 2.0 modified the treatment of inherited IRAs, and in that changed the taxation of distributions to children, as well as when distributions must be taken.
A conduit trust requires the trustee to pass all retirement distributions directly to the child. This keeps things simple and qualifies the child for “Eligible Designated Beneficiary” (EDB) status until age 21. During that time, distributions follow the child’s life expectancy.
However, once the child turns 21, the clock starts: All assets must be withdrawn within 10 years, and possibly in annual installments, depending on when the account owner passed away.
An accumulation trust, by contrast, gives the trustee power to hold distributions inside the trust. This protects assets from creditors or early spending but comes with a tax tradeoff.
Distributions retained by the trust are taxed at high rates quickly. Unless the remainder beneficiaries qualify to be ignored under IRS rules, the account may need to be emptied within 10 years of the original owner’s death, even if the child is still a minor.
Families often overlook how fast taxes increase. Conduit trusts expose the child’s distributions to the “kiddie tax,” which means those funds may be taxed at the parents’ rate.
On the other hand, accumulation trusts trigger the trust’s compressed income brackets and possible net investment income tax. On top of that, the IRS confirmed that individuals who turn 73 in 2024 must begin required minimum distributions by April 1, 2025, ending the extended grace period previously available under pandemic-era relief rules.
At O’Brien Law Firm, LLC, we help clients across DeSoto County and Memphis draft minors’ trusts that honor their wishes without triggering avoidable taxes. Whether you’re creating a new estate plan or adjusting an outdated one, we’ll help you apply the SECURE Act 2.0 rules correctly. Call 662-672-7619 or fill out our intake form to get started.
Bankruptcy does more than just change your bank account. For a lot of people in Southern Mississippi, it’s a stressful reset button. However, it’s also a chance to start over without the stress of old debts. When the court closes your case, the bills stop coming after you, and you can finally think about the big picture again. That’s when you should take a closer look at your estate plan.
The plan you made before bankruptcy was built for a different life. Maybe you had more property then, or different accounts, or a life insurance policy you’ve since changed. Some assets might have been sold to pay creditors, while others, like a Mississippi homestead up to a certain value, were protected. If your will or trust still lists property you no longer own, or leaves money to people you no longer intend to benefit, you’re leaving behind a legal mess for your family.
There’s no rush to rewrite everything the day after discharge. First, make sure your footing is solid. That means:
Jumping into new loans too soon can undo months of hard work. Think of this as rebuilding the foundation before adding new rooms to the house.
Once your finances feel steady, your estate plan can reflect that. You could start over with your will or make a trust to keep your property out of probate. You could change your life insurance to make sure your dependents are covered, or you could check your retirement accounts to make sure the right people are named.
We’ve helped people across Southern Mississippi protect what they’ve rebuilt after bankruptcy. At O’Brien Law Firm, LLC, we understand you don’t want to go through financial loss again, and a strong estate plan is part of that protection. Call us at 662-672-7619 or use our online intake form to get started.
Running a family business in Mississippi can bring relatives closer together or tear them apart when it is time to plan for the future. Without clear estate planning, fights over control and ownership can erupt quickly. Many family businesses never make it past the second generation because of these conflicts. Business owners who plan ahead can protect the company and keep family relationships strong.
A buy-sell agreement acts like a rulebook for what happens when an owner retires, passes away, or can no longer run the business. These agreements often use life insurance to fund the buyout. This means cash is ready to buy the departing owner’s shares without forcing the company to sell assets or borrow money.
There are different ways to set these up:
No matter the type, the main goal is to avoid confusion and keep control in the right hands. It is also important to update these agreements regularly to reflect changes in the family or business.
A family limited partnership (FLP) can help transfer business ownership while keeping decision-making power with certain family members. In an FLP, the parents or founders usually serve as general partners and keep control, while children or other relatives hold limited partnership interests.
This structure can prevent non-active family members from taking over daily operations, which is a common source of disputes. An FLP can also help reduce estate taxes and protect business assets from creditors.
Issuing different classes of stock is another tool that works well. Voting shares can go to family members involved in the business, while non-voting shares can be given to those who are not. This approach lets all heirs share in profits without giving everyone a say in big decisions, reducing the chance of future conflicts.
At O’Brien Law Firm, we know how stressful it feels to think about passing on a family business. We help Mississippi families create solid plans that protect both the business and family bonds. If you want to make sure your business stays strong while avoiding future fights, contact us today.
Passing down firearms may seem straightforward, but it can become legally risky when the weapons fall under federal regulation. Items like silencers, short-barreled rifles, or automatic weapons are classified as National Firearms Act (NFA) items. These require special handling, even during inheritance. A gun trust helps families in Mississippi avoid legal violations by allowing the transfer of such firearms within a legally compliant structure.
Under federal law, only the registered owner may possess an NFA-regulated firearm. If someone inherits one of these weapons without proper documentation, they could face felony charges.
The standard transfer process includes:
However, when a gun trust is used, the trust, and not the individual, owns the firearm. This means co-trustees can legally possess the weapon and pass it along according to the terms of the trust without triggering new transfer violations.
Mississippi does not add extra rules on top of federal gun laws when it comes to inheritance. Still, only eligible individuals can legally receive a firearm. That excludes convicted felons and others restricted under federal guidelines. Even if a family member is listed in a will or trust, they cannot inherit a firearm if they are legally prohibited from owning one.
Gun trusts help families avoid common mistakes during estate transfers. They eliminate the need for probate, which keeps records private and reduces delays. Executors who are unfamiliar with firearms law may unintentionally commit crimes when transferring guns.
A gun trust reduces that risk by naming trustees who understand the rules. It also allows for multiple legal users, so no one unintentionally violates “constructive possession” laws.
If you own firearms or expect to inherit them, it is important to plan. At O’Brien Law Firm, LLC, we help Mississippi clients build clear legal strategies for passing down guns safely. Whether you need help setting up a gun trust or resolving inheritance concerns, contact us today to get started with confidence.
If you’re building a legacy for your family, the last thing you want is for that wealth to get tied up in lawsuits or drained by creditors. In Mississippi, asset protection planning can be folded right into your estate strategy without sacrificing your long-term goals. With the right tools, you can pass down what you’ve built while reducing the risk of someone else taking it away.
Mississippi allows a specific kind of trust called a Qualified Disposition in Trust (QDIT). This irrevocable trust protects assets from most lawsuits and creditor claims.
To work, the trust must include a “spendthrift clause” and be managed by a Mississippi trustee. You’ll also need to prove that you’re solvent when transferring assets and sign an affidavit confirming that you aren’t trying to dodge current debts.
The protection isn’t instant. Creditors have up to two years to file a claim after assets are transferred into the trust. However, once that window passes, those assets are much harder to reach.
Exceptions do exist. These include unpaid child support or certain government claims. However, for most people, this tool adds a strong layer of security.
For business owners and real estate investors, forming a Family Limited Liability Company (LLC) is another smart move. It keeps your personal assets separate from business risks and offers liability protection. Additionally, if the LLC is owned by your trust, the protection is even stronger.
If a creditor wins a judgment against you, they usually can’t touch the company itself. All they may get is a “charging order,” which gives them a share of future distributions but no control or access to the business or its property.
At O’Brien Law Firm, we help clients create estate plans that pass on and protect wealth. Whether you want to shield family property, limit exposure to lawsuits, or pass on a business safely, we’ll show you how these tools work together. Contact us today to start building a plan that keeps your future and your family secure.
