Travel, Communities and Local Events
Late last week I received an email from a friend of mine who works in the Detroit area. He had just returned from a week-long trip to Providence, Rhode Island. In spite of being a bit bleary-eyed from his drive in from the east coast, he wanted to share information about how many law firms sponsor local community events.
He also made a few comments about a ten-day trip another friend is on in central Europe. He’s visiting family members who work for the U.S. Embassy in Bratislava, Slovakia. Their plans include traveling through rural Slovakia, Austria and the Czech Republic.
My own travels this month included a trip to Washington, D.C. on behalf of a client. The meeting went smoothly and a lot was accomplished. I won’t bore you with the frustrations of the two-hour drive in from the airport in rush-hour traffic with a driver who was heavy on the brake pedal nor of airline engine problems which ultimately kept me in D.C. for an additional night.
I have always had an appreciation and understanding for those whose careers require them to travel extensively and be away from their families and some semblance of a regular routine. Even with all our new fancy electronic devices to stay in touch, it’s not the same. I still struggle with juggling multiple offices and trying to make sure I am available to attend my kids “big games”.
The one factor that makes all the difference in the world are the people and the communities I encounter during my trips. As a traveler I looked at this experience differently while thinking about my firm’s heritage of serving not only our clients, but the local communities in which we practice. And I realized that local is simply a matter of geography. We all benefit in one fashion or another, wherever we are, from the generosity of companies who sponsor local events and activities and from the volunteers who give so much of their time to make these events a success for local residents and visitors alike.
With the Memorial Day holiday weekend approaching it signals the beginning of summer vacations and weekend getaway trips. Many will travel out of the country, or to other states, while others will travel closer to home to resorts or the family cottage. Regardless, enjoy yourself and the local events, festivals, and activities that were planned and sponsored with you in mind!
Dan A. Penning
P.S.
Not to rush the season, but do plan to attend the annual Suttons Bay Fireworks Celebration over Labor Day weekend in the Marina Park that The Penning Group co-sponsors each year!
The Supreme Court’s decision in the Klooster case provides that certain types of joint ownership of real estate in Michigan can prevent property taxes increasing at the time of a joint owner’s death. While the decision is generally favorable to the taxpayer, there are various rules and contingencies that must be satisfied in order to achieve property tax savings.
However, after certain transfers of ownership occur, property becomes uncapped and thus subject to reassessment based on actual property value. In the event of a “transfer of ownership” of property after new law took effect in 1995, the property’s taxable value for each calendar year following the year of the transfer is the property’s state equalized valuation for the calendar year following the transfer.
In order to avoid an uncapping of property taxes at the death of a joint owner, the first element that must be satisfied is that when the joint ownership was established, at least one of the joint owners was an “original owner”. An “original owner” to satisfy this provision of the joint tenancy exception would be a person who owned the property at the time that the last “uncapping occurrence” occurred. For example, if a husband and wife, or the survivor of them, purchased property in 1998 resulting in the uncapping of the property at the time of their purchase, then either of them would be an “original owner” and satisfy this element of the joint tenancy exception.
The next element that must be satisfied in order for the joint tenancy exception to apply is the form of joint ownership must be “joint ownership with rights of survivorship.” This type of joint ownership means that all of the joint owners have a current ownership interest in the property; however, at the time of one of their deaths, the deceased individual’s interest then, by operation of law, transfers to the remaining joint owner(s). A type of joint ownership that does not satisfy the test is joint owners as “tenants in common”. This type of joint ownership indicates that a joint owner and undivided fractional share of the property and in the event of a joint owner as a tenant in common’s death, the deceased individual’s share is then part of his or her estate and can transfer to their heirs.
While the Supreme Court’s decision presents a benefit to Michigan taxpayers who are real estate owners, everyone should keep in mind that the Legislature could amend the current law to remove the joint ownership exception which has been recognized by the Supreme Court in the Klooster case. Whether or not legislative action in the future would be retroactively applied to those joint ownership situations that existed prior to any legislative action taking place is unclear. If you are considering a transfer of real estate to possibly take advantage of the joint tenancy exemption, please contact us to discuss the specific facts of your situation and your goals to make sure your proposed action is best for you and your family.
We are pleased to announce that for the second consecutive year, Dan A. Penning was named a FIVE STAR wealth advisor for 2011 by HOUR Detroit Magazine. The magazine contracted an independent market research company to administer a research process to identify a select group of wealth managers who were exceptional in both their ability and commitment to overall client satisfaction.
More than 102,500 high net worth individuals and 4,200 financial services professionals were asked to evaluate wealth managers including financial planners, investment advisors, estate attorneys and accountants in the Detroit community. The final list was reviewed by a blue ribbon panel of financial services industry professionals. Less than 7% of the wealth managers in the Detroit area, including attorneys, accountants, and financial advisors, were selected.
Dan A. Penning has been invited as a featured speaker to present on the topic of estate and gift tax issues concerning cottage succession planning at the ICLE 51st Annual Probate & Estate Planning Conference for Michigan attorneys. Penning will join two other speakers addressing cottage law succession planning issues during the three-day conference featuring a variety of topics for Michigan attorneys seeking continuing legal education. The conference will be held at the Grand Traverse Resort, in Acme, Michigan on May 19-21, 2011 and a second presentation will be held at The Inn at St. John’s in Plymouth, Michigan on June 17-18, 2011.
We have three great sons; our oldest son, Tucker, 19, a student at the University of Michigan, and twin 16-year-old boys, Conor and Casey who are finishing their sophomore year in high school.
It would take much too long to recount all the special things we have experienced the last 15 years, but aside from the many weekends in hotels, driving home on Sunday nights after weekends away through snow and ice storms, there were many special moments. As a family, we witnessed incredible accomplishments by a young boy and, in recent years, a young man as a player, teammate, and leader.
in a Chicago tournament where the team won a championship. As far as sports go, we now have the opportunity to continue our support and cheer our son Conor on in his efforts as a very good high school lacrosse player.
