Take-Away: In a recent case from Rhode Island, the notary to a Will’s execution by the testator was treated by its Supreme Court as a subscribing witness, thus satisfying that state’s requirement that a Will must be attested by two subscribing witnesses. Background: Like most states that have adopted the Uniform Probate Code, Michigan requires […]

Take-Away:  At the end of each calendar year there is normally a last-minute scurry in Congress to extend sections of the Tax Code to provide relief to a handful of taxpayers. This year there does not seem to be much effort to extend and continue some tax breaks to businesses and individuals. Background: Several tax […]

Take-Away: While pursing a backdoor Roth IRA contribution is still ‘legal’ you may want to think twice before engaging in that type of planning transaction. Background: A backdoor Roth IRA strategy permits an individual to make an indirect Roth IRA contribution if the individual’s income is too high to qualify for a direct contribution to […]

Take-Away: A so-called modern trust is one that is highly flexible to adapt to changing laws and the evolving needs of the trust’s beneficiaries. One flexible feature of a trust is the trustee’s ability to change the situs of the trust to another jurisdiction that has more favorable laws. Chasing another state’s trust laws may […]

Take-Away: “IRA money in motion is IRA money at risk.” Mike Jones. Background: As a gross generalization, 3 things can go wrong when the transfer of funds, or a rollover of funds, into an IRA from a qualified plan or another IRA occurs. (A)Hardship Waiver:  If the rollover misses the applicable deadline (usually 60 days) for depositing […]

Each year Ronald D. Aucutt provides a summary of the top 10 estate planning and tax developments from the prior calendar year for the American College of Trust and Estate Council (ACTEC.) What follows are what Mr. Aucutt’s believes are the most important developments for 2021. His first, which I will omit, is the impact […]

Take-Away: A charitable lead trust is an effective estate planning tool to often used in a low-interest environment to shift wealth transfer tax-free. Background: A charitable lead trust (CLT) is an irrevocable trust which gives to the charity a ‘leading’ interest in the trust, either for a lifetime or a term of years. That ‘leading’ […]

Overview: Part I covered the four types of charitable lead trusts (CLTs) and suggested some of the reasons when a CLT might be used. Part 2 covers some of the detailed requirements of a CLT and  distinguishes the features of a charitable lead annuity trust (CLAT)  versus a charitable lead unitrust. (CLUT.) Common elements and […]

Background: A popular feature of many sophisticated trusts, to add flexibility to the trust to respond to future changes in the circumstances of trust beneficiaries, is to give a trust beneficiary a testamentary power of appointment over the trust assets, or a portion of the trust’s assets. The person to whom the testamentary power of […]

Take-Away: Much discussion took place in 2021 over the threat of the repeal of a basis step-up on the death of the asset’s owner. While that change in the tax law did not materialize in 2021, the debate on the merits of a step-up in basis is not going to go away anytime soon. Background: […]