In 2024, several important legal developments have taken place that could significantly impact estate planning, business law, and elder law. From the final IRS regulations on basis consistency to updates on the Corporate Transparency Act (CTA) and a federal ruling regarding Medicaid and medical necessity, it’s crucial to stay informed. In this post, we’ll break down these key legal changes and explain how they could affect you.
IRS Final Rule on Basis Consistency: What Estate Planners Need to Know
The IRS final rule on basis consistency was released in September 2024. This regulation requires the value of property reported by an estate for tax purposes to be consistent with the value reported by the beneficiary. The rule is part of efforts to prevent discrepancies that could lead to significant tax liabilities for heirs.
Key Takeaways for Estate Planning:
• The basis consistency rule applies to property inherited from a decedent until it is sold or transferred.
• Executors must now provide beneficiaries with a statement of the property’s value as reported on the estate tax return. This needs to be done within 30 days of filing the return or by January 31 of the following year.
For estate planners, this new regulation emphasizes the importance of aligning reported property values and staying compliant with IRS rules. Failure to do so could result in unexpected tax consequences for beneficiaries.
Corporate Transparency Act (CTA): What Business Owners Should Know
The Corporate Transparency Act is one of the most significant business law changes of 2024. It mandates that all U.S. businesses, including LLCs and corporations, report their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). This requirement aims to prevent money laundering and increase corporate transparency.
Key Points for Business Owners:
• Businesses must report the names and details of any individuals with 25% or more ownership to FinCEN.
• Noncompliance can result in hefty fines and, in some cases, criminal penalties.
If you own or manage a business, now is the time to ensure your compliance with the Corporate Transparency Act. The reporting deadline is approaching, and staying compliant will help avoid penalties.
Medicaid Ruling: States Gain More Control Over Medical Necessity Determinations
A federal court ruling in M.H. v. Georgia Department of Community Health has given states more control over how they determine what is “medically necessary” for Medicaid recipients. This ruling could have a significant impact on the approval process for skilled nursing care under Medicaid.
You can read the full court opinion here: M.H. v. Georgia Dept. of Community Health
What This Means for Medicaid Recipients:
• The ruling allows states to use their own review systems to evaluate medical necessity, rather than deferring solely to a treating physician’s opinion.
• This change may lead to reductions in approved skilled nursing hours, especially if a caregiver can perform some medical tasks.
For anyone relying on Medicaid for long-term care, it’s essential to understand how your state may adjust its approach to skilled nursing approvals under this ruling.
Conclusion: Stay Ahead of Legal Changes
These 2024 legal updates highlight the ever-evolving nature of estate planning, business law, and elder law. Whether you’re an estate planner, a business owner, or managing care for a loved one on Medicaid, staying informed is critical to ensuring compliance and protecting your assets.
At Law Rooted, we’re dedicated to keeping you updated on these changes and how they impact your legal strategies. We are also offering complimentary estate planning questionnaires to help you get started with your estate planning process. Visit LawRooted.com to access your free questionnaire, and feel free to reach out to us for personalized legal advice.
