Take-Away: Probably a wait-and-see approach to estate planning is inadvisable at the beginning of 2021. It is time to build flexibility into estate plans to address a rapidly changing environment for donors, settlors, and their beneficiaries. A New Planning Environment: With a new year comes a new government, and an unusual set of external circumstances […]

Take-Away: Trust Codes contain statutes of limitations that are intended to enable the expeditious administration of a trust by avoiding late-in-the-day trust challenges. It is difficult, however, to active those statutory statutes of limitations to eliminate future trust challenges. Background: Challenges to the validity of a trust in Michigan are limited by a statute of […]

Take-Away: The Michigan State Bar’s Probate and Estate Planning Council is once again prepared to support a Bill that would enable the transfer of title to a motor vehicle with a beneficiary designation. Background: For a few years now Bills have been introduced with Michigan’s Legislature to permit the transfer of title to a motor […]

Take-Away: With the current uncertainty with regard to the likelihood of new taxes, and the possible retroactive effect of new tax legislation, one way to mitigate the risks of a retroactive reduction in the federal gift tax exemption is with a net, net, lifetime gift agreement. Background: President Biden has proposed a dramatic decrease in […]

Take-Away: Michigan’s revocation-on-divorce statute revokes all provisions made for an ex-spouse and the ex-spouse’s relatives, in a wide variety of instruments created by a divorced individual, including a Will and Trust. A relative is one who is related to the ex-spouse by blood, adoption, or affinity. The affinity of the ex-spouse’s relative with the divorced […]

Take-Away: Towards the end of 2020 substantial gifts were made in anticipation of a change in the federal transfer tax laws with a change in administrations. Intra-family loans were made to exploit the low interest rate environment to shift wealth gift tax-free. 2021 may prove to be no different. A parent’s inclination to help a […]

Take-Away: Yes, many federal tax law changes can be made retroactive. Background: There has been plenty written already with regard to the possible increase in income and transfer tax laws at the federal level with the recent change in administrations. While the Senate could be deadlocked 50%-50% between Republicans and Democrats, Vice-President Harris can cast […]

Take-Away:  A ladybird deed is an effective and efficient way to avoid probate and also help an individual qualify for, if needed later,  Medicaid benefits. Background: For the last three decades there has been an increased use of ladybird deeds as part of an estate plan. These deeds are sometimes also called ‘revocable life estate […]

Take-Away: While the SECURE Act pretty much eliminated stretch IRAs for most beneficiaries, it created exceptions for surviving spouses, those who are disabled and chronically ill, minors of the deceased IRA owner, and those designated beneficiaries who are less than 10 years younger than the deceased IRA owner. This last exception to the required 10-year […]

Take-Away: What follows is a brief legislative update from Nathan Piwowarski, who is the chair of ‘Special Projects Committee’ for the Michigan Probate and Estate Planning Council. This is a short ‘follow up’ to previous reports on legislation being considered by our representatives and senators in Lansing. Delaware Tax Trap ‘Fix’: Testimony on this Bill […]