Last year in this Blog I wrote about the efforts of Sen. Max Baucus (D-Mont.) to limit the ability of non-spouse beneficiaries of IRAs to stretch out withdrawals over their lifetime. Presently a non-spouse beneficiary can enjoy years, if not decades, of tax deferred or tax free growth on inherited IRAs (traditional or Roth). Last week, the Senate took up this cause again in relation to its efforts to fund the extension of low interest rates on student loans.

Earlier this week the United States Supreme Court issued its opinion in the case of Hillman v. Maretta. The Hillman case involved the resolution of an apparent conflict between a Federal law and a Virginia law. While the legal question was one of federal pre-emption the result is instructive of the importance of regularly reviewing and updating beneficiary designations.

A recent case I have been working on has reminded me again of the importance of thinking through your beneficiary designations.