The Internal Revenue Code currently provides a significant tax break for individuals age 70 ½ or over that expires on December 31, 2011. You can make distributions of up to $100,000 from an IRA directly to a charity and exclude the distributions from your taxable income.
Making the distribution directly form the IRA to the charity results in tax savings compared to either (1) the taxpayer making charitable gifts using other, after-tax assets, or (2) the taxpayer taking a distribution from his or her IRA and then contributing the distributed funds to a charity.
Also, because the amount distributed from the IRA to charity is not included in taxable income, it is not subject to the AGI limitations on charitable deductions.
If you are planning year-end charitable contributions you should consider whether your contribution can be completed using IRA assets.
Tuesday, December 27, 2011
Friday, August 19, 2011
What is President Obama's Stance on the Federal Estate Tax?
In response to a recent question during his bus tour about the Federal Estate Tax, President Obama answered, in part, "Well, there's no reason why we have to go all the way back to the 2001 level. There is a compromise that has been discussed where you'd essentially have a $7 million exemption per family."
Also, there is speculation that the appointment of Sen. Jon Kyl (R - AZ) to the Congressional panel that has been created to tackle the federal budget deficit means that the Federal Estate Tax will either be completely repealed, or at least remain at the 2011 and 2012 levels ($5 million estate tax exemption and 35% estate tax rate) since Sen. Kyl was instrumental in getting that deal done at the end of 2010.
Also, there is speculation that the appointment of Sen. Jon Kyl (R - AZ) to the Congressional panel that has been created to tackle the federal budget deficit means that the Federal Estate Tax will either be completely repealed, or at least remain at the 2011 and 2012 levels ($5 million estate tax exemption and 35% estate tax rate) since Sen. Kyl was instrumental in getting that deal done at the end of 2010.
Friday, August 12, 2011
Fido's Future - our new estate planning for your pets site
We are pleased to announce the launch of our latest website: FidosFuture.com. Visit FidosFuture.com to learn what steps you can take to plan for your pet's future when you die.
Did you know that an estimated 150,000 pets are brought to animal shelters each year because their owners passed away and did not plan for what was to happen with their pets?
See what what you can do today to protect your pet. And, while you are visiting the site, send an e-mail to Turner!
Did you know that an estimated 150,000 pets are brought to animal shelters each year because their owners passed away and did not plan for what was to happen with their pets?
See what what you can do today to protect your pet. And, while you are visiting the site, send an e-mail to Turner!
Tuesday, August 9, 2011
PRESS RELEASE -- NEW INNOVATIVE AND ECONOMICAL ONLINE ESTATE PLANNING SERVICE
LANSING, MI – August 9, 2011 - Lansing Michigan estate planning law firm, Doyle Law PC -- has announced the recent launch of its online estate planning service, EstatePlansDirect.com. Through this new innovative service, clients can now order their attorney prepared estate plans online without having to visit an attorney’s office. At the time of launch, the service was available in Michigan, New York, Texas, Arkansas, Georgia and Maryland, with more states being added.
Company president and estate planning attorney, Thomas A. Doyle, says: "Our mission in creating EstatePlansDirect.com was to bring affordable attorney prepared estate plans directly to clients through the Internet. By not requiring the client to schedule an office appointment, we have removed one of the traditional barriers that stopped many individuals from getting their estate plan prepared. And, with estate plans starting as low as $375, we are able to pass on significant savings to the clients by using the Internet.”
The service also gives the consumer an alternative to do-it-yourself sites like Legalzoom that, Mr. Doyle notes, states right in its disclaimer that it is not a law firm, and that its service is not a substitute for the advice of an attorney. “With our EstatePlansDirect.com service, your estate plan is prepared by an experienced attorney who you can talk to if you have any questions about your plan” says Doyle.
Doyle Law PC is a Michigan law firm that specializes in the areas of estate planning and estate settlement. Mr. Doyle has been a licensed Michigan attorney since 1980.
Mr. Doyle is the author of an estate planning video "How to Avoid the Six Most Common Estate Planning Mistakes", and the publication Giving The Client What They Want, part of the Trusts and Estates Legal Strategies published by Aspatore Books in 2008. He has been a member of the adjunct faculty at Thomas M. Cooley Law School since 1990 where he currently teaches Estate Planning and the Law of Cyberspace. He is, also, the continuing legal education instructor on estate planning and business succession planning for Farm Bureau Insurance Company, and has been an invited estate planning guest speaker for a number of companies, including Merrill Lynch and American Express, as well as churches, credit unions and financial advisors throughout Michigan.
For more information visit www.EstatePlansDirect.com.
Media Contact:
Thomas A Doyle
517-323-7366
tdoyle@doylelawpc.com
Tuesday, July 5, 2011
IRS Increases Standard Mileage Rate for Balance of 2011
The Internal Revenue Service has announced an increase in the optional standard mileage rates for the final six months of 2011. The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011.
Tuesday, June 7, 2011
Monday, April 25, 2011
Ladybird Deed
A "ladybird deed" is a type of deed (Quit Claim or Warranty) in which the maker retains a life estate in the property being conveyed (i.e. the right to continuing living there until death), and retains the right to change the remainder interest (i.e. who gets it when the maker dies). Thus, it is easiest to think of it a having the same effect as a beneficiary designation on real estate.
It has primarily been used in the past as a Medicaid planning device, but is being used more frequently as an estate planning tool.
If a client is not going to have a trust, it is a way to transfer your real estate at the time of your death, and thereby avoid probate. If client has a trust, using a ladybird deed for the client's home still qualifies the home as an exempt asset for Medicaid purposes, but avoids probate by having the home go to the trust when the client dies. This, also, avoids the home being subject to Michigan's Medicaid Recovery Law, under which the State is to go after your probate estate when you die in order to recover assets to re-pay the Medicaid that was paid on your behalf.
Thus, the ladybird deed avoids probate and Michigan's Medicaid Recovery Law.
It has primarily been used in the past as a Medicaid planning device, but is being used more frequently as an estate planning tool.
If a client is not going to have a trust, it is a way to transfer your real estate at the time of your death, and thereby avoid probate. If client has a trust, using a ladybird deed for the client's home still qualifies the home as an exempt asset for Medicaid purposes, but avoids probate by having the home go to the trust when the client dies. This, also, avoids the home being subject to Michigan's Medicaid Recovery Law, under which the State is to go after your probate estate when you die in order to recover assets to re-pay the Medicaid that was paid on your behalf.
Thus, the ladybird deed avoids probate and Michigan's Medicaid Recovery Law.
Friday, February 11, 2011
Unclaimed Property
Did you know that the various states have millions of dollars in lost or forgotten assets from dormant bank accounts, uncashed checks, valuables left in safe deposit boxes and stock certificates? Because these properties were considered abandoned and unclaimed by the bank or company entrusted with them, they are turned over to the state, as required by law.
Common types of unclaimed property include:
The National Association of Unclaimed Property Administrators maintains a database of governmental unclaimed property records that you can search for free. It is located at www.missingmoney.com
Common types of unclaimed property include:
- Bank accounts and safe deposit box contents
- Stocks, mutual funds, bonds, and dividends
- Uncashed checks and wages
- Insurance policies, CD's, trust funds
- Utility deposits, escrow accounts
The National Association of Unclaimed Property Administrators maintains a database of governmental unclaimed property records that you can search for free. It is located at www.missingmoney.com
Tuesday, February 8, 2011
Should You Make Your Home Jointly Owned With Your Child?
Are you considering making your home jointly owned with a child in order to avoid probate? Before you do, have you considered the 45% gift tax that you might be liable for? How about the capital gains tax problem you might be giving to your child? Are you willing to risk losing your home to your child’s creditors? Did you know that your son’s wife might become a part owner as well? Finally, are you certain that your child will allow you to sell your home if you ever want to?
Before you make your home jointly owned with your child, please consider the consequences carefully. There are likely better alternatives that will avoid probate while not having the potential negative consequences of joint ownership.
Before you make your home jointly owned with your child, please consider the consequences carefully. There are likely better alternatives that will avoid probate while not having the potential negative consequences of joint ownership.
Monday, February 7, 2011
Chief Justice Warren Burger's Do-It-Yourself Will...costs his estate $450,000+
You would think that the Chief Justice of the US Supreme Court would know how to prepare his own Will. Sadly, though, Chief Justice Warren Burger's self-prepared 1 page Will resulted in unnecessary probate expenses, and likely cost his heirs over $450,000 in avoidable taxes.
According to the Associated Press article in the November 1, 1995 edition of the Marin Independent Journal, Justice Burger's Will, that he prepared on his computer, was replete with misspellings, and lacked a number of ordinary provisions that resulted in needless probate expenses. Additionally, he failed to protect his heirs from estate taxes that were estimated to be in excess of $450,000.
Although he zealously guarded his privacy during his lifetime, Justice Burger's Will and probate record are available for public viewing at the Arlington County Courthouse.
All of this could likely have been avoided if Justice Burger had spent about $2,000 for an appropriate estate plan by an experienced estate planning attorney.
If Justice Burger wasn't able to prepare his own estate plan, should you really be preparing your own?
According to the Associated Press article in the November 1, 1995 edition of the Marin Independent Journal, Justice Burger's Will, that he prepared on his computer, was replete with misspellings, and lacked a number of ordinary provisions that resulted in needless probate expenses. Additionally, he failed to protect his heirs from estate taxes that were estimated to be in excess of $450,000.
Although he zealously guarded his privacy during his lifetime, Justice Burger's Will and probate record are available for public viewing at the Arlington County Courthouse.
All of this could likely have been avoided if Justice Burger had spent about $2,000 for an appropriate estate plan by an experienced estate planning attorney.
If Justice Burger wasn't able to prepare his own estate plan, should you really be preparing your own?
Sunday, February 6, 2011
Transferring Watercraft Title without Probate
After a family member dies you might wonder what you need to do to gain title to his or her boat or other watercraft. Well, it’s really quite similar to the process involved in transferring the title of vehicles. If there are no probate proceedings taking place there are a few simple steps that need to be taken to transfer the title of the watercraft.
Again, as long as there are no probate proceedings, and the combined value of all watercraft does not exceed $100,000, a surviving spouse, or next of kin needs only to submit to the Secretary of State a few things: 1.) an affidavit of kinship; 2.) the certificate of title for the watercraft; and, 3.) the death certificate of the decedent.
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