Take-Away: Today’s trust instruments need to contain greater flexibility and thoughtful definitions to guide a trustee that must deal with the needs and desires of the ‘modern family.’   Overview: The long-running  comedy TV show ‘Modern Family’ showed to us just how different contemporary families appear and act when compared to what we normally assume […]

Take-Away: 2019 did not produce many decisions from Michigan appellate courts with regard to trusts and their administration. However, a handful of cases from around the country, in particular Massachusetts, and surprisingly Nebraska, provide some interesting commentary with regard to Wills, Trusts, their interpretation or construction, and their administration. ‘My Issue by Representation’: The Will’s […]

Take-Away: Children who are adopted are treated under the Michigan Estates and Individual’s Code [EPIC] as natural born children of their adoptive parent. At common law that was not the case when it came to third-party dispositions, which treated adopted children as strangers to the marriage. Common Law: About 150 years ago, while adding children […]

Take-Away: Now may be the perfect time for an individual to make a gift of a remainder interest in a home, cottage, or farm to a charity. Such a gift creates a charitable income tax deduction. Background: An individual is entitled to claim an immediate income tax charitable deduction if a remainder interest in their […]

Take-Away: The SECURE Act imposed a 10-year distribution rule on most inherited IRAs (traditional and Roth.) However, the Act changed the required minimum distribution rules to eliminate annual required minimum distributions from an inherited IRA, only requiring that the inherited IRA be completely emptied by December 31 of the 10th year following the IRA owner’s […]

Take-Away:  A recent Michigan Court of Appeals panel declined to terminate an irrevocable life insurance trust (ILIT) notwithstanding arguments that the trust was invalid because the trustee did not comply with crummey withdrawal notices that were supposed to be given to the trust’s beneficiaries. The Court found that despite the risks of the death benefits […]

Take-Away: A Simplified Employee Pension IRA (SEP) and a Savings Incentive Match Plan for Employees IRA (SIMPLE) have similar features, but they also have different rules that are often confused. While they are technically qualified plans, they are subject to IRA tax rules, not the rules that  generally apply to other qualified plans like 401(k) […]

Take-Away: Given the size of its population and the number of its senior citizens, Florida’ relatively progressive legislature  often provides some helpful guidance on probate and estate planning laws that are designed to better protect its citizens. Unlike some states that aspire to be trust ‘havens’ to attract trust assets, Florida’s probate laws seem to […]

Take-Away: There may be several good reasons for IRA owners to seriously consider a Roth conversion in 2020. Each owner’s circumstances are unique, so this is not a ‘one-size-fits-all’ decision, but the possibility of a Roth IRA conversion, in whole or in part, warrants a discussion with IRA owners at this time. Why A Roth […]

Take-Away: Despite the waiver of required minimum distributions in 2020, an individual age 70 ½ and above can still make qualified charitable distributions from their IRA. Overview: A qualified charitable distribution (QCD) provides a great tax break. A QCD will satisfy the IRA owner’s required minimum distribution (RMD) for the year. The QCD will not […]