Take-Away: It is important to address the potential for adoptions when class bequests are part of a Will or a Trust, and in particular, how adult adoptions will be treated under the governing instrument. Background: Many trust instruments contain a definition of a descendant or heir,  and address the possibility that an individual will be […]

Take-Away: When a co-trustee also is a trust beneficiary, actions taken by the co-trustee/beneficiary against the other co-trustee may not constitute a breach of trust. Background: A breach of trust is defined under the Michigan Trust Code as ‘a violation of a duty the trustee owes to a trust beneficiary.’ [MCL 700.7901(1).] Several duties are […]

Take-Away: Lifetime transfers that are includible in the transferor’s taxable estate at death will not be protected from the fear of double taxation, such as GRATs and QPRTs.   Background: We have dealt with this topic before (sadly). The 2017 Tax Act increased a transferor’s basic exclusion amount (BEA) that is sheltered from federal transfer […]

Take-Away: The recent Proposed Regulations identify situations where the use of a donor’s large applicable exemption amount may create estate tax problems in the future at the time of the donor’s death. Background:  After the 2017 Tax Act and its Final Regulations, we all assumed that gifts that were made while the applicable exemption amount […]

Take-Away: With rampant inflation, some predict an 8.9% increase in Social Security retirement benefits for 2023. Background: The Social Security retirement benefits are adjusted annually,  calculated on the Consumer Price Index for Urban Wage Earners and Clerical Workers, or the CPI-W Index. In 2022 the increase was 5.9%. Currently, the Index has increased 9.4% over […]

Take-Away: Charitable giving a major part of the American culture. The culture of giving has pretty much remained static over the last half century. However, it is the form of philanthropy which has greatly changed. Background: The Urban Institute’s Centers on Nonprofits and Philanthropy released in mid-April its Giving Dashboard that provides an interesting overview […]

Take-Away: When rolling over funds from an IRA to an IRA, the same property must be used in the 60-day rollover transfer. Background: For an IRA to an IRA 60-day rollover transfer, or a Roth IRA to Roth IRA 60-day rollover transfer, the same property  that is received must be the same property that is […]

Take-Away: The still working exception to the required beginning date (RBD) for required minimum distributions (RMDs) is a great way to delay having to take taxable RMDs. A problem surfaces, though, if a rollover occurs early in the calendar year and the still working plan participant retires or is laid-off later in the same year, […]

Take-Away: A bill has been filed in Congress, with bipartisan support that would renew some benefits to an investment in a Qualified Opportunity Fund, but it would also increase the reporting requirements with such investments, with corresponding penalties for the failure to report with respect to the Fund. Background: The 2017 Tax Act adopted incentives […]

Take-Away: We have yet another favorable IRS Private Letter Ruling that authorizes a surviving spouse to move a deceased’s spouse’s IRA assets to her own IRA and escape immediate income taxation and accelerated required minimum distributions. Background: Generally if a decedent’s IRA proceeds pass through a 3rd party, like a probate estate, and then are […]