“T.O.D.” (Transfer on Death), and “P.O.D.” (Pay on Death) designations have become common with most financial institutions. These are essentially “beneficiary designations” like we usually see with life insurance, annuities, IRA and qualified plans. At one time it was common for banks and brokers, not to offer these. When we used Revocable Living
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Designating IRA and other Qualified Plan Beneficiaries
Please note that this is a very complex area and what follows is generalizations. This is an area that should be reviewed on a client-by-client, case-by-case basis with a qualified attorney or CPA.The surge of Estate Planning “experts,” including websites and seminars over the past 20 years has created a surplus of “information” related to…
Should You Have a "Ladybird Deed" ?
With all the competition for customers (from lawyers and non-lawyers alike) in the estate planning field, it is easy to see why the consuming public has the perception that an estate plan merely consists of a pre-printed form, or a set of forms, and that there is a “standard” method of planning. And it seems …
Should your Children have an Estate Plan
Occasionally, during an Estate Planning conference with clients, this question comes up. As an Estate Planning lawyer, I should probably be more pro-active about suggesting this topic. As a professional, however, I always feel some discomfort about coming across as just “selling” services or forms. So, I tend to soft-peddle the selling aspect of…
Welcome Clarification on Family Transfers of Residential Real Property and “Uncapping”
The new law now provides that transfers of property into and out of a trust, and via an estate, to these family members, are exempt, in addition to direct transfers.Beginning December 31, there is yet another beneficial new exception to “uncapping” of transfers of residential real property between certain family members.In…
Should You have a “Ladybird” Deed?
Twenty-five years ago, I was covering for an astute, senior partner at my first law firm employment. I got a call from the title company questioning a deed he had drafted. His proposed form of conveyance purported to convey all but a “life estate,” to her son, while retaining the right of the grantor to…
New Michigan Law Avoids “Uncapping” in Family Transfers
Two years ago in March, I reported here on the Klooster v City of Charlevoix case, which addressed the issue of “uncapping” in a real estate transaction between family members. 1994 amendments to the Michigan Real Property Tax, placed a “cap” on the amount a taxing authority could increase the value of real property…
Congress Finally Gives us Answers on Estate and Gift Tax
To quote former President Gerald Ford, with respect to the Federal Estate and Gift Tax: “our long, national nightmare is over.” Late on January 1, Congress enacted “The American Taxpayer Relief Act of 2012.” I won’t go into great detail about the act (there is a lot about it we still don’t actually know and…
SHOULD YOU BE DOING LARGE YEAR-END GIFTS IN 2012?
Unfortunately, before we can intelligently answer this question, some history is necessary. With the pending expiration of the so-called “Bush Era Tax Cuts,” there is a significant amount of buzz about making large year end gifts to take advantage of the current high gift threshold. Historically, the current Federal Estate and Gift Law scheme dates…
The Michigan Property Tax Personal Residence Exemption
The Michigan General Property Tax Act authorizes municipal entities, including cities, townships, villages, schools, and municipal “authorities” to levy taxes real and personal property in Michigan. There are two principal exemptions from part of the taxes that routinely impact our clients. The most commonly invoked exemption is the “personal residence exemption” (a/k/a “homestead exemption). The…