A Michigan owner of a 529 account who transfers ‘excess’ 529 funds to a Roth IRA may be subject to a state income tax recapture if their initial contribution to the 529 account created a state tax deduction or credit.

Starting in 2024 the SECURE Act 2.0 allows a rollover from a 529 account with ‘excess’ funds to a Roth IRA. As reported previously, there are several limitations to deal with before this new rollover opportunity and be exploited.

Naming a Trust as the IRA beneficiary may not always be the best choice for a retirement account owner.

Michigan’s more comprehensive durable power of attorney statute is effective come July 1, 2024.

The Court held that a corporation’s contractual obligation to redeem the stock of one of its shareholders was not a liability or debt.

There does not seem to be a consensus if a grantor Trust is to be treated as a separate legal entity or not. The Courts apparently are not really sure. This decision can have tax implications when a grantor Trust ceases to be a grantor Trust.

Often it is unfortunate that a Trust’s distribution provisions obfuscate if the Trust is intended to be a discretionary trust or a support trust.

The 6-year statute of limitations applies when a claim is made that a settlor mistakenly gave to a trust beneficiary a limited power of appointment.

A Trust can be classified for many different reasons, or provisions, as a grantor Trust, which may or may not be in the settlor’s best interest.

In a couple of situations there is an automatic waiver when there’s a failure to take a required minimum distribution.