Take-Away: While we are all familiar with the income tax benefits of a qualified charitable distribution from a traditional IRA, less clear is the implication of the IRA that holds non-deductible contributions. The after-tax portion of the IRA will not be treated as a qualified charitable distribution from the IRA. Background: A qualified charitable distribution […]

Take-Away: As we begin to digest the new SECURE Act and its various provisions, some of its new rules become clearer. What follows is digging a bit deeper into those new rules. IRA Contributions Beyond age 70 ½: Beginning in 2020 there is no prohibition on the amount an individual can contribute to an IRA, […]

Take-Away: As mentioned in the past, the Michigan Legislature is currently looking closely at several different proposed Bills that are intended to address and curb in some manner rampant elder abuse. Many of the proposed Bills would specify criminal behavior with respect to an elder’s health and welfare and the abuse/misuse of an elder’s finances. […]

Take-Away: As we have covered in the past, Michigan is a common-law jurisdiction. Married individuals are permitted to own and control their own separate property. We also know that married couples who move from one of the handful of community property states to Michigan can agree to have the property that they bring with them […]

Take-Away: With most of the SECURE Act provisions becoming effective in 2020, existing estate plans and retirement plan and IRA beneficiary designation forms will need to be reviewed, particularly those estate plans that feature large IRA and 401(k) accounts. A few practical observations follow. Acceleration of Taxable Income: Perhaps the biggest problem, by far, is […]

Take-Away: Last week provided a broad overview of the SECURE Act’s changes to retirement plan contributions and distribution. The next couple will dig a bit deeper into the substance of those changes, and in particular on retirement plan distributions to trusts. This summary deals with the 10-year payout rule for inherited IRAs and qualified plan […]

Take-Away: 2019 was a busy year when it comes to rule changes and reminders with regard to retirement plan distributions. A short summary of some of those changes follows, starting with the most obvious, the SECURE Act that passed last week. Secure Act: Key changes that arise from this December Act are: Age 70 years […]

Take-Away: Earlier summaries have provided an overview of some of the SECURE Act changes and a look at the new 10-year distribution rule for designated beneficiaries of IRAs. This summary goes a bit deeper into the impact of the SECURE Act’s 10-year distribution rule on some standard estate planning trusts. I. Marital Trusts: As previously […]

Take-Away: The Michigan Court of Appeals recently confirmed the inability of creditors to attack a beneficiary’s interest in a discretionary trust under the Michigan Trust Code, notwithstanding the fact that the trust instrument used the words shall apply to or for the benefits of…. and that the beneficiary was then delinquent in his child support […]

Take-Away: The ‘name of the game’ in drafting trusts these days is flexibility, in order for the trust to be able to adjust to the constantly changing tax laws. In addition, flexible trusts address future changes in the circumstances of both beneficiaries and fiduciaries which is critical with a dynasty type trust that is expected […]