Steve Akers' Heckerling Musings 2009

Steve Akers, Associate Fiduciary Counsel, Bessemer Trust, provides the following comments re the 43rd Heckerling Institute.

Steve R. Akers, Associate Fiduciary Counsel
Akers@bessemer.com
February 10, 2009

The 43rd Annual Philip E. Heckerling Institute on Estate Planning the week of January 12, 2009 was excellent. A summary of some of the highlights of the week for me (as well as other recent developments over the last several months) is available by the attached link below. Much of the discussion at the Institute focused on planning issues in light of the recent market meltdown and financial scandals and in light of possible future estate and gift tax legislation. A general summary of many of the discussions would come under the heading of planning in politically uncertain and financially turbulent times. The attached link is not a general summary of all of the sessions, but just my musings of highlights that were particularly interesting to me personally.

A few of the highlights include:

1. Discussions by various speakers prognosticating on various legislative proposals and addressing the planning implications of legislative proposals, including possible restrictions on valuation discounts.  (Items 1-2)
2. Planning strategies in light of possible law changes with an effective date prior to a transaction. (Item 3)
3. Optimal transfer planning strategies in politically uncertain and economically turbulent times (including ideas from a number of speakers). (Item 22)
4. Possible regulations further restricting discounts for family limited partnership interests and restricting the use of "Graegin notes." (Item 6)
5. Planning in light of possible valuation drops during an estate administration (with a drafting suggestion to allow the bypass trust or GST exempt bequest to receive all possible appreciation but only have to bear a portion of possible losses). (Item 9)
6. Practical planning suggestions for representation of clients impacted by the Madoff or other financial scandals. (Item 20)
7. Creative ways of using profits interests (for partnerships or LLCs) for making desired transfers of interests in the entity at minimal tax costs. (Item 29)
8. Thought provoking discussion by Professor Jeffrey Pennell of whether planners should update general planning approaches in light of dramatic societal changes over the last 30 years. (Item 35)
9. A vitally important planning step that everyone who has a Roth 401(k) account should take before reaching age 70 ∏. (Item 36)
10. A terrific conceptual discussion of what every estate planner should know and put in documents about special needs trusts and planning for special needs beneficiaries. (Item 37)
11. Quotations from the week that I found particularly interesting. (Item 42)

Please click here to read a full summary.

Posted by Lewis J. Saret, General Editor, Wealth Strategies Journal.