Decrease in Federal Gift and Estate Tax Exclusion Amount: No Time To Wait

Amanda Afton Martin

The time is now to review your estate plan. Though it is not certain what changes to the federal gift and estate tax laws proposed by President Biden will be made, significant opportunities will be missed if estate and income tax planning is delayed. Changes to the estate tax are common with each new presidency, especially to the federal estate tax exclusion amount (“Exclusion Amount”), and it is important to understand the possible impact on your assets...

Amanda Afton Martin

Loss of Basis Step-Up at Death and Increase in Capital Gains Tax

Michael C. Zahrt

The Internal Revenue Code (the “Code”) currently taxes long-term capital gains at lower rates than ordinary income. Depending on the taxpayer’s taxable income, the current rate is between 0% and 23.8% (including the Net Investment Income Tax). The Code also currently provides a “step-up” in basis upon the death of a taxpayer, which causes the tax basis of an asset to be increased to its fair market value on the date of the taxpayer’s death... 

Michael C. Zahrt

Changes to Income Tax May Make for Favorable Roth IRA Conversions

Alaina M. Nelson and Anna K. Gibson

In order to save for retirement, individuals may choose to contribute to a variety of different types of accounts, one of which is called an Individual Retirement Account (“IRA”). There are two types of IRAs – a traditional IRA and a Roth IRA. 

Contributions made to traditional IRAs are “pre-tax” contributions, whereas contributions made to Roth IRAs are “after-tax” contributions. However, unlike traditional IRAs, withdrawals taken from Roth IRAs are generally are not subject to income tax because the income tax was previously paid on the funds at the time of the contribution... 

Alaina M. Nelson

Charitable Planning and Gifting in the Biden Era

Warren H. Krueger

With the election of Joe Biden, a number of changes to the U.S. tax laws may be on the horizon. If changes proposed by Biden are passed, estate and income tax planning for many taxpayers would be significantly impacted. Perhaps the most notable proposed change is a reduction of the federal estate tax and gift tax exclusion amounts...

Warren H. Krueger

Remembering Al Claypool

Long-time member of the Foster Swift trust and estates team, Allan J. Claypool, died June 4, 2020 at the age of 79. Born in Battle Creek, Al received
an appointment to the US Naval Academy in 1962. After multiple tours,
Al returned to Michigan to marry Cathy and they soon relocated to Ann
Arbor where Al attended the University of Michigan Law School.

Al joined the firm in 1969 and spent his entire 50 year career with the firm. Al
was known for his character, his leadership, his intellect and love for his
community.

Claypool's obituary can be viewed here: estesleadley.com/obituaries/allan-claypool/

This past summer, the staff members and fellow attorneys at Foster Swift that knew Al best put together a tribute video in honor of his legacy: https://youtu.be/A9VaO2mhwHk

If you are a client of Al, we have a team of estate planners ready and capable to meet your needs. Contact us and we will help ease the transition to a new team member.

Allan J. Claypool