Now that the federal estate tax and gift tax equivalent has been “permanently” increased to $5.43 million per individual ($10.86 million for a married couple) for decedents dying in 2015, and the top tax rate is 40% rather than the previous maximum rates reaching 55%, many of the complex A/B Trust and Reduce to Zero estate plans previously implemented can be simplified and new plans can be prepared without all the focus on minimizing transfer taxes. But does that mean all the tax planning issues have been resolved? Not by any means. Under the old planning methods, the focus was on getting the assets out of the estate before death so that the taxable estate at the time of death was as small as possible. But by doing so, the transferee was not receiving a “step up” in basis of the asset which means that highly appreciated assets would ... [Continue Reading]
Enhanced Knowledge in Contested Probate Matters Helpful in Mediations
Like many mediators, I have been through the requisite training to be a court approved mediator in both general civil and domestic relations mediation. And theoretically, I can mediate any type of case. However, as a litigator, I feel that it is a great benefit to have a mediator who is knowledgeable and experienced in my area of work—probate and trust matters. Contested or litigated probate matters may involve such issues as challenges to the validity of a will or trust, challenges to accountings or fees, interpretation of discretionary provisions in a document, breach of fiduciary, and guardianship and conservatorship proceedings. Challenges often deal with matters of legal capacity or undue influence, so having experience in the symptoms and nuances of these problems is very helpful. There are several reasons that probate and trust ... [Continue Reading]
Estate of Mark Moon, the Sequel
Little did I know there would be a sequel..... S T A T E O F M I C H I G A N C O U R T O F A P P E A L S In re Estate of MARK E. MOON. KRISTINA MOON, Personal Representative, Appellant, UNPUBLISHED August 14, 2014 v No. 315698 Eaton Probate Court MERLIN MOON, LC No. 08-045647-DE Appellee. Before: SAAD, P.J., and OWENS a nd K.F. KELLY, JJ. PER CURIAM. Appellant, as personal representative of the estate of Mark E. Moon, appeals as of right the probate court’s order that denied her motion for summary disposition, which requested that the probate court determine that the estate has a 50 percent partnership interest in real property titled in appellee’s name. We affirm. As a preliminary matter, appellee claims that this Court does not have jurisdiction because not all interested parties appear to have been served with the claim of appeal. ... [Continue Reading]
Estate of Mark Moon
Below is the Court of Appeals Opinion on a case that I worked on in the trial court. I represented the appellee, Merlin Moon. S T A T E O F M I C H I G A N C O U R T O F A P P E A L S In re MARK E. MOON ESTATE KRISTINA MOON, Personal Representative of the Estate of MARK E. MOON, Appellant, UNPUBLISHED January 27, 2011 v No. 294176 Eaton Probate Court MERLIN MOON, LC No. 08-045647-DE Appellee. Before: MARKEY, P.J., and WILDER and STEPHENS, JJ. PER CURIAM. This case arises from a dispute regarding whether certain property belongs in decedent’s estate. The probate court held that a partnership existed between decedent Mark E. Moon and his father, appellee Merlin Moon, and that appellee therefore has a 50% ownership stake in several items that had been listed in the estate inventory. Appellant Kristina Moon, the personal representative of ... [Continue Reading]
Farmers Face Unique Challenges in Estate and Succession Planning
Planning for the succession of the family farm poses some unique challenges and should not be undertaken by those who are not familiar with the industry. While farmers are similar to many closely held business owners, there are some situations that make them unique. For example, farmers tend to have high “book value” because so much of their estate consists of land. However, they tend to have low cash value and lack liquidity. This situation used to cause a severe problem when a farmer died because the value of their estate would most often exceed the amount of the exemption or “unified credit” for federal estate taxes and the estate would struggle to find sufficient cash to pay the estate tax. However, this situation has been greatly mitigated now that the unified credit amount is over $5,000,000 per person and over $10,000,000 per ... [Continue Reading]