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Mike Cumming Quoted in Bankrate.com Article on Irrevocable Trusts

Notes that Trust Structure is Triangular: Trustee, Beneficiaries, and the Trust Asset

June 13, 2013

Michael G. Cumming, Bloomfield Hills-based member who leads Dykema’s Tax Practice Group, is extensively quoted in an article, “An Irrevocable Trust That Evolves With You,” that appears in the June 13, 2013 online edition of Bankrate.com, the leading aggregator of financial rate information on the web.

In the article, Cumming notes that while irrevocable trusts are chiefly created as part of a tax-reduction plan, they are often designed to ensure asset protection and to provide control over how trust assets are used and distributed in the future.

Cumming observes that while irrevocable trusts are “just that—irrevocable,” it’s prudent for the creator of the trust to maintain some measure of control. Says Cumming, “We try to build in as much flexibility as possible, without blowing the tax benefits.” He cautions, however, “from a tax aspect, you have to be careful not to give (beneficiaries) too many rights to the trust, or it ends up being taxable to them.”

To read this article in its entirety, click here.