Missives

A spouse’s consent is not normally required when a plan participant takes a distribution or borrows from his/her qualified plan account, such as a 401(k) plan account.

Whenever the topic of a domestic asset protection trust (DAPT) comes up, there is always the cautionary remark that other states which do not have DAPT legislation may not respect a DAPT that is established in another state that does recognize such a trust.

Promoted tax planning ‘strategies’ often fall into the ‘too good to be true’ category. With the IRS on the lookout for the use of Charitable LLCs, it would be wise to stay clear of them.

Borrowing against a life insurance policy’s cash surrender value can sometimes lead to phantom taxable income if the debt owed exceeds the policy’s cash surrender value.

 Last week the Congressional Budget Office forecasted that the Social Security trust fund is set to run out one year earlier than originally projected- in 2032,  not 2033. If Congress does not act to address this shortfall, there could be a 24% reduction in benefits, for all Social Security beneficiaries.

A rollover of that QDRO-awarded separate account balance to an IRA will be without any penalty, regardless of the former spouse’s age.

We often take the annual exclusion gift opportunity for granted, until we remember that only present gifts qualify.

ABLE accounts provide a unique estate and special needs planning device for disabled individuals and their families. These 2026 changes will be helpful when either drafting trusts or gift- planning for disabled individuals.

If it is a family business that is to be created and ultimately expected to be run by succeeding family generations, it may not make much sense to set up the business as a C corporation to begin with (using an LLC or S corporation passthrough entity to save taxes.)

What is important is to make sure that the trust provisions satisfy the see-through trust rules, and that the deemed election announced in the SECURE Act Final Regulations is consistent with the IRA owner’s testamentary wishes.