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The ������Ƶ’s Professional Advisor Network is proud to present the top estate planning highlights from the 59th Annual Heckerling Institute on Estate Planning. We will also address common problems advisors face in estate and charitable gift planning and solutions available to members of the ������Ƶ’s Professional Advisor Network.

1. Recent Developments 2024

The Recent Developments session is normally jammed with tax updates from the prior year, but this year, there was a review of the tax proposals that were introduced in 2024 but were either not presented or did not receive adequate support. Sam Donaldson reviewed the sunset provisions of the 2017 Act outlining provisions that could return in 2026 should there be an extension of the Act, as well as items that would disappear. The Joint Committee on Taxation has not identified provisions that could be resuscitated in the absence of an extension.

Steve Akers discussed the Secure Act, the Secure Act 2.0, and the multiple provisions of the code the Acts affected. After multiple tries, the Service FINALLY published regulations in July 2024 regarding distributions from Individual Retirement Accounts. Steve discussed distributions and beneficiaries, noting that Natalie Choate would discuss in greater detail during her presentation on Friday.

There are numerous Budget Proposals included in the 2025 Greenbook, but with a new Treasury Secretary, changes are inevitable. As 2026 approaches, there are many uncertainties since the House, Senate and Executive branch of the government are controlled by the same party. Clients and planners alike are laying the foundation for transfers even if it is skeptical that exclusions will decrease.

Common problem in advising: Clients act before seeking advice and guidance.

Professional Advisor Network benefit: We can assist advisors with custom illustrations as well as suggested language for documents.

2. Taking Care of Business: New Approaches to Business Succession Planning

Yvon Chouinard, founder of Patagonia, surprised many with the donation of his company to a purpose trust in 2022. Ellen Harrison and Hanalei Reitman-White discussed not only the mechanics of the transaction, but also the characteristics of a successful transaction and how to fulfill the purpose the owners find important. As Natalie Reitman-White outlined, there are alternative ownership structures, but the purpose trust preserves the mission and ties the products provided to the community with the profits advancing the purpose that is important to the owners. Common business succession plans include transferring the ownership to family members, facilitating an internal sale, arranging a management buyout, gift ownership to a charity, or create a purpose trust. As Natalie discussed, while each option has its pros and cons, engaging in meaningful discussions with the owners and thoroughly understanding the needs of the family, its management, and structure can lead to a satisfactory solution. Chouinard and his family found the purpose trust to best fit their needs.

Ellen Harrison discussed the mechanics of the transaction and stressed the need to bring experts to the table to ensure the best result. She also stressed using great care in naming the management team and creating the Trust Stewardship Committee. Naming the trustee as well as the trust protector was also essential to success.

With Patagonia, the family is cared for, Patagonia’s values are maintained, charitable and political contributions can continue, the company can be nimble in the market, and profits would continue to be used to fight climate change.

Common problem in advising: Business succession planning is complex, and clients often approach it with preconceived ideas.

Professional Advisor Network benefit: Charitable estate planning conversations with donors often lead them to a Professional Advisor Network member through a referral for guidance on making decisions.

3. What’s New in Charitable Planning

When the Supreme Court ruled that the use of race in college admissions was unconstitutional in June 2023, many celebrated the decision while others mourned it to be one of the last remaining legs of Affirmative Action. Justice Ketanji Brown Jackson voiced her opinion by saying “deeming race irrelevant in law does not make it so in life.” Alan Rothchild and Brad Bedingfield discussed the decision as it applies to Title VI and Title IX, as well as restrictions in endowments. They noted that across the country, scholarships are being reviewed to ensure the scholarships can be lawfully awarded in order to reduce litigation. They also advised reviewing gift acceptance policies, gift agreements and other documents to determine their compliance with the law and to avoid issues with Title IX and Title VI. They stressed that all charities should review their policies and documents to ensure compliance, not just higher educational institutions.

On another front, they reviewed case law for donor’s rights to enforce the purpose of a charitable gift. The question becomes “does the donor have standing to file a lawsuit to enforce the purpose of the charitable gift.” Courts have various opinions and as a result, different results. The Philanthropy Roundtable introduced a model bill, Donor Intent Protection Act (DIPA) to be used to guide the rights of the donor and their intent when making the gift. As of this writing, three states have enacted – Georgia, Kansas, and Kentucky.

Common problem in advising: Donors make irrevocable charitable decisions without professional advice.

Professional Advisor Network benefit: Restriction on gifts to the ������Ƶ are followed. Working with a Charitable Estate Planning Advisor can help offer your client guidance in making a restricted gift.

4. But I Thought it was Irrevocable? Using Nonjudicial Settlements Agreements to Modernize Trusts

Michael Gordon, Elizabeth Luk, and Michaelle Rafferty discussed changes modernizing an irrevocable document. Michael mentioned that clients drive the request to modify or change a document. Michaelle added that the type of change depends on who is asking – settlor, trustee, or beneficiary. The most common reasons are that the beneficial provisions no longer work, the administrative provisions are outdated, the tax planning needs to be updated, or other reasons that would cause a trust to become stale. The Uniform Trust code contains a multitude of solutions that can assist. One should remember that judicial reform is also a possibility and can be used to modify administrative provisions but may also be used for dispositive provisions.

The panel explored multiple consequences of modernizing and modifying trusts, all of which should be considered during the process. Many of the concerns relate to tax issues that could be triggered.

Common problem in advising: Clients often do not understand that there is a possibility of changing the provisions of an outdated document.

Professional Advisor Network benefit: As we are collaborating with donors, we often need to make a referral to a member of the Professional Advisor Network when the discussion becomes tax or legal-based for their expertise.

5. Planning and Administration Decisions for Clients’ IRAs Under Final(ly) IRS RMD Regs

To conclude our time in Orlando, Natalie Choate introduced the IRS FINAL RMD Regs for IRAs that were released in July 2024. With her usual wit and flare, Natalie set about to whittle down 296 pages into 90 minutes of instruction. She reflected on the years since the Secure Act and Secure 2.0 where direction from the Service was lacking and the law was ambiguous. She reminded the audience that Secure changed the landscape with respect to RMDs. She discussed the RMD rules for one beneficiary as well as trusts, multiple beneficiaries, and separate accounts. She recommended that lawyers should encourage their clients to have a financial planner engaged for their overall planning, but especially to assist with the distribution rules, dates, and tax consequences. She noted that financial planners will “chase their clients to make decisions and execute documents while attorneys tend to wait for clients to come to them.”

Natalie also noted that the rules are tedious and can be confusing. She suggested associating others to assist with an area that is not often used in the attorney’s practice. She noted that unintentional mistakes on beneficiary forms – lack of space or blanks or inability to complete correct titling information online – can cause irrevocable mistakes.

Common problem in advising: IRA planning for income tax as well as for estate tax is overwhelming and forever changing.

Professional Advisor Network benefit: We provide customized illustrations for gifts of retirement assets, qualified charitable distributions, beneficiary designations and IRA funded Charitable Gift Annuities. Join us on May 7 for the Professional Advisor Network’s Trusts & Estates: Virtual Summit, a complimentary event featuring Natalie Choate. Visit to register!

Please consider joining the ������Ƶ Professional Advisor Network. We can help you offer your clients meaningful options to reach their unique personal and financial goals and grow your practice while helping save more lives from heart disease and stroke.

About the Author

John W. Cullum, CFP®
Senior Charitable Estate Planning Advisor
[email protected]
864-517-2154

John is based in Birmingham, AL, and serves the southern states.

After a 35-year private banking and trust career, John, a Certified Financial Planner ®, took early retirement and decided to do something that would make a difference. He worked in college fundraising and has dedicated the last nine years to the ������Ƶ, where he collaborates with professional advisors to connect the philanthropy of their clients with the mission of the association. Throughout his career, he has served on numerous philanthropic boards.

John is a graduate of the University of South Carolina and University of North Carolina at Chapel Hill Young Executive Institute. John and his partner, Chris, live in Highland Park in Birmingham. Between the two, they have four adult children and four grandchildren as well as two four legged children, Julio, and Boone. John is an avid gardener.

This material was not produced in conjunction with or endorsed by the Heckerling Institute on Estate Planning. The Heckerling Institute is not responsible for its content. For information about the Heckerling Institute, visit .