Michigan Estate Planning & Settlement

Year-End Planning - Individuals 70 ½ or Older Should Consider Charitable Gifts from IRAs

2011-12-27T06:15:00.000-08:00

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.

What is President Obama's Stance on the Federal Estate Tax?

2011-08-19T05:49:00.000-07:00

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that has been created to tackle the federal budget deficit means that the Federal Estate Tax will either be completely repealed, or at least remain at the 2011 and 2012 levels ($5 million estate tax exemption and 35% estate tax rate) since Sen.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.

Fido's Future - our new estate planning for your pets site

2011-08-12T13:16:00.000-07:00

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!

PRESS RELEASE -- NEW INNOVATIVE AND ECONOMICAL ONLINE ESTATE PLANNING SERVICE

2011-08-09T14:04:00.000-07:00

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

IRS Increases Standard Mileage Rate for Balance of 2011

2011-07-05T09:57:00.000-07:00

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.

Order Your Estate Plan Online!

2011-06-07T14:01:00.000-07:00

Save time and money by ordering your estate plan through our new EstatePlansDirect.com service. Unlike document preparation services such as LegalZoom, a licensed attorney will prepare your estate plan and, if you have any questions about your plan, will answer your questions.

Our EstatePlansDirect.com service is available in several states, with more states being added.

Visit www.EstatePlansDirect.com for more information

Ladybird Deed

2011-04-25T13:57:00.000-07:00

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.

Unclaimed Property

2011-02-11T17:56:00.000-08:00

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:

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

Should You Make Your Home Jointly Owned With Your Child?

2011-02-08T08:10:00.000-08:00

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.

Chief Justice Warren Burger's Do-It-Yourself Will...costs his estate $450,000+

2011-02-07T17:40:00.000-08:00

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?

Transferring Watercraft Title without Probate

2011-02-06T09:45:00.000-08:00

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.

Re-Designed Website

2010-09-06T07:14:00.000-07:00

Please visit our re-designed website: www.doylelawpc.com

117 Days and Counting

2010-09-06T06:56:00.000-07:00

Only 117 days left until the Federal Estate Tax is scheduled to return on January 1, 2010. The unified credit exemption amount for estates and gifts will again be $1 million total, with a top tax rate of 55%.

Given that the top tax rate for taxable gifts in 2010 is 35%, making taxable gifts in 2010 might make sense if congress does not act by year's end. However, you should check with your attorney or tax adviser before taking any action.

Latest on Federal Estate Tax.....

2010-04-23T06:08:00.000-07:00

Bloomberg's Businessweek reports that the spending blueprint approved yesterday by the Senate Budget Committee assumes that the estate tax will be set at last year’s levels ($3.5 million exemption), with a $7 million exemption for couples, indexed for inflation, and a top rate of 45 percent. The Democrats were forced to allow the estate tax to lapse this year after they were unable to produce the 60 votes needed to extend it.

New Fax #

2010-03-28T08:20:00.000-07:00

Notice: the fax number for Doyle Law PC has been changed to: 517-803-4396 effective immediately.

Estate Tax Reform In the Works?

2010-03-17T09:08:00.000-07:00

Boomberg Business Week reports that, per Sander Levin, The House Ways and Means Committee will begin work next month to retroactively reinstate the 2009 Federal Estate Tax law which applied a 45 percent tax rate on the value of estates that exceeded $3.5 million per individual.

The lapse of the law, and the complicated capital gains tax that replaced, is was making it hard for families to plan their estates. One possibility being considered would let heirs choose to pay the capital gains tax that replaced the estate tax if that is more beneficial.

Who Will Inherit Your E-mail

2010-03-11T06:11:00.000-08:00

Download and listen to this podcast of my recent Tuesdays with Tom teleseminar "Who Will Inherit Your E-mail".

Protecting the Family Cottage

2010-02-25T09:00:00.000-08:00

Keeping Your Family Cottage In The Family

2010-02-25T08:00:00.000-08:00

Do you have a family cottage in Michigan that you want to keep in the family after your death to be used by your children?

A limited liability company (LLC) can be a good way to keep the cottage in the family. Essentially, the LLC is created and the cottage is transferred to it. At the time of death the membership interest in the LLC is then distributed to the children.

Through the LLC’s Operating Agreement, restrictions can be in place that will keep the cottage from ever being distributed to an individual outside of the children or descendants. Doing so protects the cottage from being exposed to claims of children’s creditors or spouses. Additionally, the Operating Agreement includes procedures for assessing costs of repairs and maintenance, who is to use the cottage went, et cetera.

For more information on having an LLC created for your Michigan cottage, please contact us.

Dynasty Trusts in Michigan

2010-02-25T05:42:00.000-08:00

As a result of recently enacted legislation in the State of Michigan, we have eliminate the rule against perpetuities relative to personal property. Without a rule against perpetuities we can now draft a Dynasty Trust which is a multi-generational trust that has no end date. Under Michigan's previous law, a trust had to be fully distributed within a set period of time (i.e. 90 years). Since we have now abolished the rule against perpetuities relative to personal property, we can create a trust that will last in perpetuity.

If you have an estate that will be subject to Federal Estate Tax, and you want to provide for future generations without incurring a Federal Estate Tax at each generation, a Dynasty Trust should be considered by you and your estate advisor.

Haiti Donations Deductible 0n 2009 Return

2010-02-05T06:47:00.001-08:00

If you donated to the relief effort in Haiti, you will most likely qualify to claim your donation on your tax return as an itemized deduction in 2010. According to the Internal Revenue Service, in order to be eligible for this special tax relief provision, taxpayers must have made cash contributions (as opposed to property) between Jan. 11, 2010 and March 1, 2010.

2010 IRA Conversions

2010-02-05T06:45:00.000-08:00

If you have been considering converting a traditional IRA to a Roth IRA, 2010 presents potentially significant tax advantage to making the conversion. The previous income limit of $100,000 has been repealed, meaning that anyone, regardless of income, can make the conversion. Moreover, the income taxes that would be due on the 2010 conversion can be spread over two years. So the 2010 conversion amount may be included as taxable income in 2011 and 2012 - helping to spread out the tax bite.

The Hidden Tax on Estates in 2010

2010-02-05T06:44:00.001-08:00

When the Federal Estate Tax expired on December 31, so did “stepped-up basis” on inherited assets. Under the former tax law your heirs received a stepped-up basis on inherited assets which minimized (in most cases avoided) any capital gains tax when the asset were subsequently sold. Under EGTRRA, however, stepped-up basis ended on January 1. Thus, while all estates are free of Federal Estate Taxes in 2010, estates that have assets with significant growth might end up subjecting the heirs to significant capital gains taxes when the assets are sold. Even worse is the fact that an estate that might not have even been subject to Federal Estate Tax in 2009, might now have capital gains tax issues in 2010, even though the Federal Estate Tax has been repealed.

Reverse Mortgage Facts from the FTC

2009-08-18T11:41:00.000-07:00

If you’re 62 or older you may be considering a reverse mortgage to pay off your current mortgage, supplement your retirement income, or pay for healthcare expenses. A reverse mortgage allows you to convert part of the equity in your home into cash without having to sell your home or pay additional monthly bills.

For more information about how a reverse mortgage works, here is a link to the Federal Trade Commission's online publication: Reverse Mortgages: Get the Facts Before Cashing in on Your Home’s Equity.

National Do Not Call Registry

2009-08-14T11:59:00.000-07:00

Did you know that telephone numbers placed on the National Do Not Call Registry will now remain on it permanently due to the Do-Not-Call Improvement Act of 2007, which became law in February 2008? More than 157 million phone numbers are on the National Do Not Call Registry.

TO REGISTER YOUR NUMBER:

Online: www.donotcall.gov
Phone: 1-888-382-1222

Social Security Representative Payee

2009-05-14T12:04:00.000-07:00

Are you considering serving as the Representative Payee for someone who is receiving Social Security or SSI benefits? Be sure to visit the Social Security Administration website regarding the Representative Payee Program at www.ssa.gov/payee/faqrep.htm.

April is Donate Life Month

2009-04-07T16:16:00.000-07:00

National Donate Life Month was established in 2003. Every day in April, people across the U.S. make a special effort to celebrate the tremendous generosity of those who have saved lives by becoming organ, tissue, marrow, and blood donors and to encourage more Americans to follow their fine example.

A list of State organ donor and tissue donor registries is available at this OrganDonor.gov site

Planning for the Blended Family

2009-03-18T12:28:00.000-07:00

Download and listen to this podcast of my recent Tuesdays with Tom teleseminar "Planning for the Blended Family".

Tuesdays with Tom

2009-02-23T19:11:00.000-08:00

Join me for one or more of my weekly teleseminars in which I will discuss a number of topics including estate planning, wills and trust, probate and estate administration, trust administration, taxes, business succession planning, medicaid planning, private foundations, special needs planning, and more.

Now, with a simple telephone call, you can participate in one of my renowned educational teleseminars from the comfort of your home.

Simply click HERE for a schedule of upcoming teleseminars (including topics and featured guests) and for registration information.

Michigan Medicaid Estate Recovery

2009-02-12T05:36:00.000-08:00

Download and listen to this podcast of my recent Tuesdays with Tom teleseminar "Michigan Medicaid Estate Recovery".

Responsibilities of a Successor Trustee

2009-02-12T05:32:00.000-08:00

Download and listen to this podcast of my recent Tuesdays with Tom teleseminar "Responsibilities of a Successor Trustee".

A Will Does Not Avoid Probate!

2009-01-19T19:54:00.000-08:00

Many clients indicate to us that their estate planning goals include avoiding probate. If that is your goal, you need to recognize that having a Will is not a probate avoidance mechanism. That is, having a will does not avoid probate. Rather, your Will is only effect if your estate goes through probate. Thus, if your estate planning goals include avoiding probate, you need to consider other alternatives such as a living trust.

Nursing Home Ratings Are Now Online

2008-12-18T17:29:00.000-08:00

The Centers for Medicare and Medicaid Service, a division of the US Department of Heath and Human Services, "Nursing Home Compare" site provides a 5 star rating of nursing homes. Search the database to learn how nursing homes that you are considering compare.

You will, also, find other information that will help you in making your decision, including a Guide to Choosing a Nursing Home and and helpful Nursing home checklist.