Take-Away: Several weeks ago (actually it now seems like several years ago in light of the coronavirus) a short summary was provided on how the SECURE Act permits stretch distributions from a retirement account taken by a disabled or chronically ill beneficiary. If disabled or chronically ill individual is the named beneficiary of an accumulation see-through […]

Take-Away: Michigan has two separate statutes that deal with a trustee’s ability to decant a trust’s assets to a new trust created by the trustee. While that authority exists to transfer assets from an existing trust to a new trust, several tax questions remain unanswered with regard to the trustee’s exercise of a decanting power. […]

Take-Away: As we counsel clients with how to maintain their sanity during the COVID-19 ‘lock-down’ and their sudden loss of 25% of their wealth, knowing that they are overwhelmed by anxiety and tend to compartmentalization of their problems they may act out of impulse. That is where we come in to control those impulses. We […]

Take-Away: In a period of large federal gift tax exemptions, it should not come as a surprise that many individuals are encouraged to take advantage of those large transfer tax exemptions by making substantial lifetime gifts. That said, behind those lifetime gifts is the need to have a working understanding of Michigan’s Voidable Transactions Act […]

Take-Away: There are several tax traps when S corporate stock is the subject of a gift to charity, particularly if the S stock is used to fund a charitable remainder trust (CRT.) It may be better for the S corporation to use one of its assets as the subject of a gift to charity, as opposed […]

Take-Away: In the past we have reviewed the importance of identifying the settlor’s intent behind the creation of a trust. This focus is manifested in the Michigan Trust Code’s periodic reference to preserving a trust’s material purposes in trust modification or termination proceedings. However, the Michigan Trust Code and the Uniform Trust Code also have […]

Take-Away: In 2018 Michigan adopted a statute that authorizes electronic and remote notarizations of legal documents. However, not all states have such statutes. In light of the multiple nationwide ‘stay at home’ orders, there is now a Bill pending in the U.S. Senate that would authorize electronic and remote notarizations throughout the country in order […]

Take-Away: More guidance was published by the federal government on April 8 in the form of additional questions and answers with regard to the Payroll Protection Program (PPP.)A few of the 20 proposed answers to questions tend to help clarify some earlier confusion in the implementation of the PPP. Source: https://tinyurl.com/yxxn5g6b Background: Under the PPP excluded […]

Take-Away: Many existing IRA beneficiary designation forms and see-through trusts will have to be revised in light of the SECURE Act’s 10-year distribution rule, and the special category that it creates for eligible designated beneficiaries who may continue to take stretch distributions from inherited IRAs and qualified plan accounts using their life expectancy. Example: I fielded […]

This is Part II of the promised summary with regard to when to name a Trust as the beneficiary of retirement plan accounts and IRAs. Earlier I provided a summary of a conduit trust. This is a summary of the see-through trust known as an accumulation trust. I will not repeat the earlier summary of […]