Federal Tax Updates Recent federal tax law changes have made “permanent” the favorable provisions around step-up in basis, higher estate, gift, and generation-skipping transfer (GST) tax exemptions. The exemption is scheduled to be $15 million per person in 2026 (indexed for inflation), and the top estate and gift tax rate remains 40%. Certain income tax…
Beginning with the 2025 and 2026 calendar years, many significant changes to individual income tax laws will take effect, creating both opportunities and considerations for taxpayers. Beginning with 2025, more individual taxpayers will be able to itemize deductions, rather than relying solely on the standard deduction. Thanks, in large part, to the increased SALT deduction….
With the passage of the One Big Beautiful Bill (OBBB) in July 2025, Trump Accounts were born. For the benefit of children under the age of 18, these accounts are tax-deferred investment vehicles. Initially drafted by legislators for tax-advantaged use in paying for education, first-time home purchases, and small business startups, the final version of…
One of the most valuable tax benefits available to families is the step-up in cost basis of assets owned by a decedent at death. For income tax purposes, it is often better to hold assets until death rather than selling or gifting them during life. What It Means Assets That Don’t Get a Step-Up: Income…
A very successful estate planning attorney asked me once if I meant BILL PAY when I mentioned the term FAMILY OFFICE. No, no, no. Not at all. When I look around at what financial service institutions are doing right now, services like bill pay are being added under the umbrella of Family Office Services. For…
In Michigan, in most cases trustees of an irrevocable trust are required to inform certain adult beneficiaries of an irrevocable trust about the existence of a trust for their benefit. However, the law has evolved in Michigan to except certain trusts from disclosure for a period of time defined by the trust agreement. Background Michigan…
If you are concerned about potential gift or estate tax exposure and reporting, and believe the stock market (or any other investment) has the potential to appreciate from here, then now is a great time to consider family loans. Consider this simplistic example: You would like to make a gift to a trust for the…
See if you can locate the ORIGINAL signed copy of your Last Will and Testament and let your nominated executor (or personal representative) know where it is. Also, check with your parents to see where they are storing their Wills. It most likely will be: Elyse W. Germack, Attorney and CPA Law Offices of Elyse…
The IRS made some changes to its 2024 Gift Tax Form 709. Among the changes, a new procedure for electing gift-splitting among spouses has been established. What is Gift Splitting? A gift-splitting election permits spouses to share 50/50 in gifts made to third parties. Example: Dad gifts $30,000 of his cash to Child. During 2024,…