Often there is the temptation to rent one’s home for a short period of time, especially when there is a strong demand for housing for short period of time. The tax law favors such short-term rentals of a home, but as always there are limits to this opportunity.

Disabled or chronically ill designated beneficiaries of retirement accounts have the opportunity to stretch required minimum distributions over their lifetimes (using the Single Life Table). Qualifying as an eligible designated beneficiary who is either disabled or chronically ill in order to be able to stretch those distributions is difficult.

Take-Away: Federal Deposit Insurance (FDIC) insurance coverage for deposit accounts held by a trust depend on the number of identifiable, primary, trust beneficiaries. The rule is also changing in 2024.

While the IRS has provided relief in two Notices to some beneficiaries who have inherited retirement accounts in the past three years, thus relieving them of the obligation to take annual required minimum distributions (RMDs), deferring an RMD may not be a wise move from an overall income tax-savings perspective.

Changing the restrictions of a charitable gift is possible, but not everyone can participate in the legal proceedings brought to modify, or eliminate, that restriction or condition.

As more modern trusts incorporate the use of a trust director, or trust protector, it is important for the proposed trustee to closely read the trust instrument to clarify when, how, and in what circumstances that the trustee must follow the directions of the trust director.

There are different rules (or traps) depending upon what type of 457(b) plan an individual participates in through his/her employment

Take-Away: There are two, separate, ‘5-year rules’ that need to be satisfied before taking a distribution from a Roth IRA.

It is important to distinguish between a successor IRA beneficiary and a contingent IRA beneficiary. The rules are different for each.

It may be possible, albeit in highly limited circumstances, for a surviving spouse to claim a 100% basis adjustment when their spouse dies.