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 […]

Take-Away: For those individuals who wish to make a large lifetime gift in order to consume their temporary large federal gift tax exemption, but who are reluctant to actually give up control of the gifted assets, they might consider the gift of a legally enforceable promissory note. Thanks: A special note of thanks goes to […]

Take-Away: Much has been written about the importance of taking advantage of the current $11.58 million dollar federal transfer tax exemption, with the focus on the ‘use it or lose it’ principle for lifetime gifts. However, there are, with any estate planning strategy, some potential negative consequences associated with making a large lifetime gift that […]

Take-Away: The IRS’s life expectancy Tables used to establish an individual’s required minimum distributions (RMDs) were scheduled to be updated and become effective on January 1, 2021. Those changes just got delayed one year. Those updated Tables, reflecting longer life expectancies, would have produced smaller RMDs. Now, those smaller RMDs of taxable income are delayed […]

Take-Away: With a census comes new actuarial studies. The census data derived from the 2010 census will result in the issuance of updated decennial life tables that show a much longer life expectancy that will be used in valuations and with several estate planning strategies. The unanswered question is when will the new life expectancy […]

Take-Away: If the donor’s gift to a donor advised fund (DAF) is subject to too much control over the contribution to that DAF, it may cease to be tax exempt under the Tax Code, and the donor’s gift to the DAF may be treated as a gift to a private foundation. That ‘worst-case-scenario’ would limit […]