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August 21, 2015 / in 2015 Summer, Written by Katherine Albrecht
As school resumes parents may be ready for a vacation from their children. Or the child may be traveling for school, sports, or religious activity. Perhaps the parents must travel for work. Whatever the reason that causes parent and child to be separated, it is important for parents to provide appropriate written authority to the person caring for the minor child. This authority should include consent to have the child participate in regular activities, receive medical care, and travel with the caregiver. Read More→
March 16, 2015 / in 2015 Winter, Written by Katherine Albrecht
In January the IRS issued its annual “Dirty Dozen” tax scams for 2015. Tops on the list is aggressive and threatening telephone calls purporting to come from IRS agents. “Phishing” for personal information through the use of fake emails and websites also made the list.
Callers often target the elderly, immigrants and others they believe to be highly susceptible to their scare tactics. The caller may claim to be from the IRS or U.S. Treasury and give a name and badge number. Some scammers even alter the caller ID information so the call appears to come from the IRS. The caller may specify an exact amount of an alleged debt owed to the IRS and the method of payment to be used. Often the caller suggests payment via credit card or prepaid debit card. If the caller encounters resistance, he may issue threats that law enforcement is poised to make an arrest within minutes if payment is not immediately made. Read More→
October 2, 2014 / in 2014 Summer, Written by Katherine Albrecht
Most people know they need a will, whether they choose to do something about it or not. They care about how their assets will be distributed at their death. However, they often do not realize that they also need to plan for what will happen to themselves and their assets if they become incapacitated. They assume family members will handle things, but fail to give those family members the tools to do so. The most important part of an estate plan may turn out to be the patient advocate designation, the durable power of attorney, and the authorization of disclosure of medical information. Read more →
March 23, 2012 / in 2010 Summer, Probate & Estate Planning,Written by Katherine Albrecht
Like a finely tuned automobile, once an Estate Plan has been established, it requires regular maintenance to ensure that its components are working properly. Without a regular tune-up, it’s not going to run smoothly when it’s time to perform.
Privacy regulations have become more stringent in recent years, making access to your medical information more difficult for your chosen decision-makers in the event of your illness. Family situations may have changed, from the birth of grandchildren to divorce or death, making your original plans outdated.
The following checklist will help you to determine if it’s time for an Estate Plan Check-Up:
Are the provisions for beneficiaries still appropriate?
Are the value and nature of your assets generally the same as they were when your estate plan was created?
If you answered “no” to any of these questions, it’s time to schedule a visit to your estate planning attorney to make the appropriate changes.
To make the visit to your estate planner as efficient as possible, bring along a list of your current assets, including their value and how the assets are titled; copies of all current beneficiary designations; and copies of all current estate plan documents.
Do not write on your signed estate plan documents in an effort to make changes yourself. You may inadvertently invalidate the documents or create ambiguities that will be expensive to resolve after your death.
March 23, 2012 / in 2010 Summer, Probate & Estate Planning,Written by Katherine Albrecht
In 2001 Congress enacted legislation gradually increasing in the federal estate tax exemption from $675,000 in 2001 to $3.5 million in 2009 and decreasing the top marginal estate tax rate from 55% to 45%. The legislation also included repeal of the federal estate tax for 2010 only.
When this legislation was enacted, estate planners predicted Congress would never allow this repeal of the estate tax to take effect. We continued to predict this right up to the time Congress adjourned at the end of 2009. We were wrong. The one-year estate tax repeal became effective January 1, 2010.
The quick fix we anticipated in early 2010, reinstating the 2009 estate tax law, has not occurred. Congress has been unable to agree on legislation, and the longer the estate tax repeal remains in effect in 2010, the less likely it is that Congress will retroactively reinstate the estate tax for 2010.
If Congress takes no action before the end of 2010, the estate tax will return beginning January 1, 2011. It will apply to estates of $1 million or more, with a 55% top marginal rate, and a 5% surtax on estates between $10 million and $17 million. If this happens, the Michigan Estate Tax, which has been inapplicable to decedents dying after December 31, 2004, will return, too. The politicians’ inaction may be intentional. The result of their inaction is a tax increase without the bad publicity of actually voting for an increase.
Along with the repeal of the estate tax for 2010 came the advent of “carry-over basis” for assets inherited in 2010. When the estate tax was in place, a beneficiary’s cost basis in inherited property was stepped up to the value of the property at the decedent’s death. Beneficiaries who inherit assets this year take the cost basis the assets had in the hands of the decedent during the decedent’s lifetime, usually the price the decedent paid for the asset.
The personal representative of the estate of a 2010 decedent may allocate a $1.3 million exemption to the decedent’s assets to “step-up” the cost basis of those assets. An additional $3 million exemption may be used to offset gain on assets passing to a surviving spouse. For estates with a total value of less than $1.3 million at death, carry-over basis is of little concern.
However, depending on the size of the estate and the degree to which the assets have appreciated, the capital gains tax paid when inherited assets are sold may well exceed the amount of estate tax that would have been paid.
Who Should Review Their Estate Plans?
Contact Beier Howlett, P.C. at (248) 645-9400, or email kalbrecht@bhlaw.us.com.
March 23, 2012 / in 2010 Summer, Probate & Estate Planning, Written by Katherine Albrecht
New Trust Code Features Option To Name Third Party Decision-Maker
Trusts and their administration can involve complicated or delicate decision-making by family members, often resulting in uncomfortable rifts among beneficiaries and trustees. The new Michigan Trust Code (MTC), which took effect April 1, 2010, sets forth the law governing the administration of trusts in Michigan. It now offers a viable option to help administer the trust: a Trust Protector.
A Trust Protector is a person or committee named in a trust agreement to direct certain actions with respect to the trust. This person/committe is neither the person who created the trust, nor the trustee. As a third party, the Trust Protector may be given authority to make certain decisions that could be difficult for the trustee to make, bringing neutrality or distance to delicate family decisions, or business expertise to the operation of trust assets. These types of decisions could include:
If your trust assets include a closely held business, if a future beneficiary of your trust requires special consideration, or if you want to provide an additional measure of flexibility in your estate plan, you may want to consider naming a Trust Protector in your trust.