Take-Away: Last Friday the IRS published Final Regulations with regard to the transfer and sale of life insurance policies. Those Regulations include a description of the 2017 Tax Act’s new IRC Sections 101(a)(3) and 6050Y that relate to the sale of life insurance policies, the reporting of that sale of the insurance policy to the […]

Take-Away: Roth 401(k) accounts are similar, but not the same, as a Roth IRA. Additionally, contributions to a Roth 401(k) account are not always treated the same as an after-tax contribution to a Roth IRA account. These different rules can sometimes lead to confusion and missed opportunities. Background: 401(k) accounts, Roth or traditional, start with […]

Take-Away: We have previously reviewed Bernie Sanders’ proposed “For the 99.8%” Bill that was filed last spring in the Senate. We now have an identical Bill filed in the House of Representatives by Congressman Jimmy Gomez, of California. If adopted in some form, these Bills would create major changes in conventional estate planning. Summary: Progressive […]

Take-Away: Yesterday the IRS issued News Release 2019-141 that announced that taxpayers who plan to travel abroad and who have outstanding assessed federal tax liabilities of more than $52,000 could have their current US passports suspended or revoked. If you have clients planning to travel abroad and who are currently in a dispute with the […]

Take-Away: Much has recently been written about the ability to decant a trust’s asset to adapt to changing circumstances. While Michigan permits a trust’s assets to be decanted, either for administrative purposes, or I limited situations to change a trust’s dispositive provisions, it is important to keep in mind that along with the cost to […]

Take-Away: In the past we have noted that even if the settlor of a trust becomes incapacitated, the trust is still considered to be a revocable trust under the Michigan Trust Code. However, if the trust instrument expressly states that the trust becomes irrevocable upon the settlor’s incapacity, that trust provision will override the Michigan […]

Take-Away: While most of us are familiar with IRA rollovers, and several of my missives over the past few years have dwelled upon the dangers of using a 60-day rollover, not much has been written about a reverse rollover, or roll-up, where an IRA balance is transferred to a qualified plan, like a 401(k) account. […]

Take-Away: Many Americans are not fully retiring when they start to take social security. Instead, they may continue to work part-time, or as an independent contractor to add to their social security retirement income. Alternatively, individuals may have their own business on the ‘side’ to supplement their earnings while working for an employer. A Simplified […]

Take-Away: A testator possesses the right to leave his or her property by Will. However, the rights of the beneficiaries to the testator’s property are subject to the restrictions and limitations of EPIC which are intended to facilitate the prompt settlement of the decedent’s estate and its administration, including the payment of the decedent’s debts. […]

Take-Away: While special needs trusts are extremely helpful to preserve a trust beneficiary’s eligibility to receive Medicaid benefits, a trustee needs to be cautious in making discretionary distributions when the trust beneficiary is eligible to receive Supplemental Security Income (SSI) benefits. Background: A disabled or special needs individual may seek a monthly fixed income,  usually […]