700.7819 Tax matters; powers of trustee.

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Sec. 7819.

(1)A trustee may do any of the following in connection with a tax matter:

(a)Make, revise, or revoke an available allocation, consent, or election affecting a tax that is appropriate in order to carry out the settlor's estate planning objectives and to reduce the overall burden of taxation, both in the present and in the future. This authority includes, but is not limited to, all of the following:

(i)Electing to take expenses as estate tax or income tax deductions.

(ii)Electing to allocate the exemption from the tax on generation skipping transfers among transfers subject to estate or gift tax.

(iii)Electing to have all or a portion of a transfer for a spouse's benefit qualify for the marital deduction.

(iv)Electing the date of death or an alternate valuation date for federal estate tax purposes.

(b)Exclude or include property from the gross estate for federal estate tax purposes.

(c)Value property for federal estate tax purposes.

(d)Join with the surviving spouse or the surviving spouse's personal representative in the execution and filing of a joint income tax return and consenting to a gift tax return filed by the surviving spouse or the surviving spouse's personal representative.

(2)A trustee's decision on a matter described in subsection (1)(a) binds all beneficiaries.

(3)After making a decision described in subsection (1)(a), a trustee may make compensating adjustments between principal and income in the manner provided by the uniform principal and income act, 2004 PA 159, MCL 555.501 to 555.1005.

History: Add. 2009, Act 46 , Eff. Apr. 1, 2010

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