Take-Away: The intersection of federal qualified plan retirement law and community property law is very clear. Federal law trumps state community property principles for qualified plans. But the law is much more muddled when it comes to community property rights in a spouse’s IRA. So while the law is clear with qualified plans, it is […]

Take-Away: Michigan’s two decanting statutes do not impose an affirmative duty on a trustee to decant the assets of an existing irrevocable trust to a new trust that is created by the trustee. But what if a trust is administered under the common law. Is there an implied duty to decant and what are the […]

Take-Away: Each year nationally recognized estate planning attorney Steve Oshins publishes his ranking of state legislation that is intended to provide flexibility and creditor and tax protection to irrevocable trusts. Michigan appears fairly high in a couple of ranking categories while in others is simply does not appear ranked at all. Some of those rankings […]

Take-Away: A change is soon coming for veterans who have served in the military long enough to earn a military pension. A companion change may also help those veterans who served in the military for less than 20 years. Background: The current military pension system provides a defined benefit pension for those service personnel who […]

Take-Away: If a retirement plan participant wishes to name an individual who is not their spouse as the beneficiary of their retirement account balance on death, the participant’s spouse must consent (‘waive’) their right to be named as the participant’s retirement plan account beneficiary. However, this spousal ‘waiver’ rule does not apply  to an IRA […]

Take-Away:  A IRA’s investment losses cannot be claimed by the IRA owner on his or her personal income tax return. Background:  IRAs are generally tax-exempt. IRC 408. But some self-directed IRAs can also produce taxable (not tax deferred) income on which a current income tax will be owed. IRA Taxable Income: An IRA can be […]

Take-Away: As we near the end of the calendar year, it is a pretty good guess that there will be a lot of discussions with regard to charitable giving, and charitable remainder trusts (CRTs) in particular. With the run- up in the stock market this year, many investors are sitting on appreciated stock portfolios who […]

Take-Away: Since a week has passed, commentators have now had an opportunity to study the sketchy Tax Reform Proposal that was released last week. There are still many unanswered questions, and thus considerable speculation about what a new Tax Code might look like, but it is possible to begin to identify some estate planning strategies […]

Caveat: This has nothing to do with Estate Planning, Taxes or Trusts. It has to do with our clients. Take-Away:  We often know when a client has a chronic or life-threatening illness who is about to undergo surgery, and/ or is facing an imminent hospitalization. Knowing at least some of the basics about patient safety […]

Take-Away: The simple message with regard to all IRA rollovers is probably to never do one. A failure to complete an IRA rollover in the mandatory 60 days produces draconian results for the IRA owner. Nor can an IRA owner make two rollovers within 365 days of one another, leading to taxation and penalties.  Consequently, […]