In The Legal's Wealth Management/Trusts & Estates supplement read about how GRATs are a great way to transfer money to loved ones, inherited wealth and the divorce process, as well as several takes on what's next after the enactment of the SECURE Act.

It's a new year, which means new laws. Effective on Jan. 1, the SECURE Act—Setting Every Community Up for Retirement Enhancement—will dramatically change how the industry approaches estate planning by substantially reducing the payout period for many beneficiaries of retirement assets.

The notable changes to retirement plans (for purposes of this article, the term "retirement plans" will refer to individual retirement accounts (IRAs) and employer-sponsored, qualified retirement plans) that have provided much fodder for financial and tax professionals, as well as the news media.

For individuals with large estates (or those concerned that the exemption amounts may decrease even further), they may wish to consider utilizing a grantor retained annuity trust (GRAT). GRATs can be a useful tool for passing money between generations while potentially avoiding estate and gift taxes.

The inspiration for this article is a client I have been representing for a few months. He and his wife have decided to go their separate ways and need help figuring out the economic claims ancillary to divorce. The biggest of those is the "who gets what" of a divorce, also known as equitable distribution.

The elimination of the lifetime stretch has caused practitioners to collectively rethink some of their long-held norms with respect to legacy planning and tax planning for retirement benefits, particularly with the use of trusts that will receive retirement plan benefits.

The changes enacted in the SECURE Act, most of which are effective as of Jan. 1, will have a major effect on many individuals' estate plans, in which retirement benefits often play an outsized role.

It is important to understand not only the major provisions, such as the devastating elimination of the tax savings strategy the "stretch IRA," but also the history and legislative intent behind it to better guide clients through this new retirement planning and administration landscape.