Take-Away: Generally, the Michigan Trust Code requires two co-trustees to act in unanimity. What happens when one co-trustee delegates his/her authority to the other co-trustee? Reported Decision: In the Matter of the Fund for the Encouragement of Self Reliance, An Irrevocable Trust, 135 Nev. Adv. Opinion (March 21, 2019) Facts: The Nevada Supreme Court was […]

Take-Away: The SECURE Act is a Bill now being considered by Congress. The Bill has considerable bipartisan support, which means that parts of it might actually become law in the next couple of years. If adopted, the SECURE Act would have a dramatic impact on retirement planning (both contributions and distributions.) If some of the […]

The following is a checklist compiled by David A. Handler and Kristen A. Curatolol that appeared in the April 2019 edition of Trusts & Estates. Plan for incapacity Fund the revocable trust Make tax-free gifts Make charitable gifts during life Use gift tax exemptions Make taxable gifts Reduce state estate taxes Substitute low basis trust […]

Take-Away: When an individual nears the end of his or her life, some steps can be taken to mitigate future tax liabilities. While during the time they have remaining there are no doubt far more important things to take care of by the terminally ill individual and his/her family, advisors can provide  helpful advice to […]

Take-Away: Many of us have heard of the so-called ‘Marriage Penalty’ with regard to income tax liabilities. Less known is the concept of the ‘Widow’s Penalty’ (or the ‘Widower’s Penalty.’) The 2017 Tax Act actually made the Widow’s Penalty even worse in some situations when it broadened the federal income tax brackets for jointly filed […]

Take-Away: The rules that govern distributions from retirement accounts are bewildering. Mistakes are often made when funds in a retirement account are moved that result in a taxable distribution, along with a penalty and interest. Fortunately, if the ‘fumble’ is caught soon enough, it can be ‘fixed’ without too much of a hassle. Distribution Fumbles […]

Take-Away: Planning for retirement account distributions is critical in light of the amount of wealth now held and accumulated in qualifed plans like 401 (k) accounts and IRAs. Unfortunately, the distribution rules are complex, and several have timing rules that are inflexible that can lead to the assessment of penalties. As a result, it is important to pay […]

Take-Away: While we are far less concerned about the value of transferred assets these days due to the large federal estate and gift tax exemptions, valuation discounts are still relevant when we consider the sunset of those large exemptions beginning in 2026 (or even sooner if there is a ‘blue wave’ in the 2020 election.) […]

Take-Away: More and more small business owners look for ways to restructure their business (S corporation or LLC) in order to be able to claim an IRC 199A 20% deduction from their qualified business income. One planning step that should be considered is the adoption of a qualified defined pension plan for the small business, […]

Take-Away: A charitable remainder trust(CRT) must be irrevocable if it is to provide the income and estate tax benefits that are intended by its settlor. But sometimes life takes sudden turns, and the CRT does not work as well as originally intended. While the CRT must be irrevocable and it is somewhat inflexible, the beneficiaries […]