By Gloria M. Chon and Cynthia L. Umphrey
If you want to provide generations of your descendents with estate tax and creditor protected assets, you may now do so.
In the past, under a law known as “The Rule Against Perpetuities,” we were restricted from creating trusts for the benefit of endless generations (often known as Dynasty Trusts). Happily, Michigan repealed this Rule for most property held in trusts as long as the trust is revocable on, or created after, May 28, 2008.
One caveat: the old Rule Against Perpetuities still applies to real estate held in trust. However, you can avoid this difficulty by transferring the real estate to an entity such as an LLC or an S Corporation. This way you can create trusts to hold your property that can last for a perpetual or indefinite term.
As this change opens up new legacy and creditor protection planning opportunities, we invite you to contact us to discuss your options further.
For further information regarding these matters, please contact Ms. Chon at 248.740.5689 or
click here to send an email. Or, you can contact Ms. Umphnrey at 248.619.2591 or
click here to send an email.
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