Category: Trust and Estate

Resource booklet: Financial affairs at the end of life

The Michigan Association of Certified Public Accountants, together with Hospice of Michigan, offers a valuable tool to assist patients and families with organizing end-of-life financial affairs. Our clients can find this guide at https://www.hom.org/wp-content/uploads/2014/07/Financial-Affairs-at-the-End-of-Life-Booklet.pdf. For more information on trust and estate planning, contact...

IRS provides guidance on using QTIP elections for reducing estate taxes

The IRS has released new procedures that help a taxpayer make the decision on whether to opt for a qualified terminable interest property (QTIP) election to reduce estate taxes. In Rev. Proc. 2016-49, the IRS removed a prohibition on utilizing a...

The benefits of using cost segregation in estate planning

This article originally appeared in The Tax Adviser. A critical estate planning area for tax professionals involves managing the step-up  in basis  on inherited assets for estate and income tax purposes after someone dies. The general rule for real estate is...

Make estate planning a top priority this summer

As Benjamin Franklin once said, “In this world nothing can be said to be certain, except death and taxes.”  Estate planning may not be a top priority to many people.  However, if ignored, your assets may end up in the...

Cost segregation in estate planning

One of the most effective ways to reduce the federal income tax burden on a recently deceased taxpayer’s estate is by conducting a cost-segregation study of the original pre-stepped-up basis of buildings the decedent held. This typically generates an immediate...

Social security “file and suspend” changes

Up until a few weeks ago, if a married couple had one spouse at full retirement age (66 or older), the “file and suspend” strategy allowed the other spouse and/or a dependent to enjoy short-and long­-term benefits. But after April...

IRS delays estate basis reporting deadline

The Internal Revenue Service has again delayed the deadline for reporting the basis of property distributed from the estate of a decedent until March 31. Notice 2016-19 provides that statements required under section 6035 of the tax code, regarding the basis...

Capitalization Rate: Relationship of rental income to property value

A simple methodology to determine the value of investment real estate is necessary in many financial situations.  The value, generally, of business real estate can be determined using three different methods. The simplest method is recent sales of comparable property...

Making the most of required minimum distributions

If you’re a retiree that has sufficient assets and doesn’t need to spend the required minimum distributions from your retirement plans, you might be frustrated by being forced to take them and incur the associated tax liability. Here are several...

Guest Author Melanie Cullen: Get It Together—for yourself, for your loved ones

If you’ve ever pitched in for someone who has become incapacitated, or if you’ve helped to wrap up an estate following a death, you know how hard it is. It’s hard emotionally to step into the void left by that...