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This page is a archive of recent entries written by lsaret in September 2008.

lsaret: October 2008 is the next archive.

Find recent content on the main index or look in the archives to find all content.

lsaret: September 2008 Archives

Donald KozuskoSummaryGuidance on private trust companies was recently proposed by the U.S. tax authorities to address whether family ownership and participation in the governance of a trust company that is serving as trustee of the family's trusts would trigger unintended...

Continue reading "Choices: "Recent Tax Guidance on Private Trust Companies, Family Co-Trustees and Distribution Committees: Notice 2008-63""

Estate and Gift Tax Developments

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  Gal N. Kaufman, Melissa A. May, Patrick M. Schoshinski, and Todd I. Steinberg       LEGISLATION: The Tax Relief and Health Care Act of 2006 (Public Law 109-432, December 20, 2006). On December 20, 2006, President Bush signed...

Continue reading " Estate and Gift Tax Developments"

Higher Rewards Equal Higher Risks?

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Michael Zhuang     Review of "The Value Premium and the CAPM" by Fama and French It is common wisdom that higher risks equal higher rewards. Indeed in the world of finance and investment, "higher risks equal higher rewards"...

Continue reading "Higher Rewards Equal Higher Risks? "

Strategies For Generating Income

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  Michael D. Cohn   Atlantis Asset Management   Synopsis In order to manage risk, merely diversifying into investments and asset classes defined as non-correlated is not sufficient as an asset protection strategy. For investors and fiduciaries seeking to add...

Continue reading "Strategies For Generating Income "

Bankruptcy And Probate

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  Paul D. Pearlstein   Washington, D.C.   This note will attempt to familiarize the reader with bankruptcy law and how it may interact with probate and intervention proceedings.1 I. Some Questions and Answers Q. May a solvent or insolvent...

Continue reading " Bankruptcy And Probate"

The Path Of Altruism: A Reflection On The Nature Of A Gift James E. Hughes, Jr., Esq.   As I write this, America is approaching Christmas 2006.  All over the country, attorneys and accountants are reminding their clients that it...

Continue reading "The Path Of Altruism: A Reflection On The Nature Of A Gift"

Beyond Traditional Estate Planning: Addressing The Personal Impact Of Inherited Wealth William Soskin, Attorney/CPA       Traditional estate planning involves minimizing estate taxes, reducing administrative costs and drafting documents to accomplish non-tax goals.  However, well-written documents do not assure...

Continue reading "Beyond Traditional Estate Planning: Addressing The Personal Impact Of Inherited Wealth"

Encouraging and Helping Your Clients to Provide for Pets in Estate Plans The Humane Society of the United States (HSUS)       Your clients want the very best for their pets. They want to know that you as an...

Continue reading "Encouraging and Helping Your Clients to Provide for Pets in Estate Plans"

Never Spend Principal?

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Never Spend Principal? Alice S. Paik and Edward K. Dunn, III   Brown Investment Advisory and Trust Company, Washington, D.C.   Never spend principal.  Perhaps no other precept of investing has been passed from generation to generation so solemnly, and...

Continue reading "Never Spend Principal?"

Reducing Taxable Wealth Yet Keeping It All In the Family (Courts' Views On Best Method To Take Discounts) Lance S. Hall   Managing Director, FMV Opinions, Inc., N.Y., N.Y.   For many decades, estate planning professionals have advised their clients...

Continue reading "Reducing Taxable Wealth Yet Keeping It All In the Family (Courts' Views On Best Method To Take Discounts)"

Developing Confidence in Planning

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  Henry K. Hebeler   www.analyzenow.com   No one can predict the future, but you can't tell that from most planning forecasts.  We don't know how long we are going to live, what surprise events will develop, nor what is...

Continue reading "Developing Confidence in Planning"

The End Of Bank Secrecy

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Michael C. Durney   Michael C. Durney Law Offices, Washington, D.C.   For many years, there has been a widespread belief in European bank secrecy.  A client of a bank was assured that his bank would not routinely pass...

Continue reading "The End Of Bank Secrecy"

William H. Lunger and F. Peter Conaty, Jr.   Martin, Conaty & Lunger, P.A., Wilmington, DE   I. Introduction. The purpose of this article is to provide an overview of (i) the basic concepts of an Asset Protection Trust...

Continue reading "Delaware Asset Protection Trusts: Basics And Opportunities"

Sebastian V. Grassi, Jr.   Grassi & Toering, PLC, Troy, MI   Introduction It is not uncommon for a divorced person or a widow/widower to remarry. For example, if a widow has children from a prior marriage and wants...

Continue reading "Drafting A Marital Deduction Trust For Second Marriages"

Nancy G. Fax     Introduction The Uniform Trust Code (UTC) is the first national codification of the law of trusts.  Since it was completed by the National Conference of Commissioners on Uniform State Laws (NCCUSL) in 2000, the...

Continue reading "Practical Drafting Under The Uniform Trust Code"

Premarital Agreements and the Young Couple

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Linda J. Ravdin     A premarital agreement is a legally binding contract between two people who intend to marry that determines the property rights of the surviving spouse upon the death of the first spouse and that may...

Continue reading "Premarital Agreements and the Young Couple"

Kenneth R. Solow     By training and by inclination, financial planners typically construct portfolios under the illusion of certainty.  The most popular investment strategy for professional investors, strategic asset allocation ("SAA"), assumes that financial markets are efficient and...

Continue reading "Decision Making Under Conditions of Uncertainty"

Eric A. Manterfield       While tax savings represents a primary goal for many high net worth clients, there are real world drafting issues estate planners must consider when working with these individuals.  Some planning strategies drive the...

Continue reading "Select Drafting Issues for High Net Worth Clients"

Succession, an Attorney's Perspective

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Jeffrey A. Galant and Dana L. Mark       Family Business and the Process of SuccessionThere are various definitions of a "family business."  We are focusing on a business owned or controlled by members of a single family,...

Continue reading "Succession, an Attorney's Perspective"

Donald Kozusko Partner, Kozusko Harris Vetter Wareh LLP, Washington, D.C.     Summary Trusts are most often valued as vehicles for tax planning, protecting against creditors, and managing assets for beneficiaries who are minors or incapacitated adults.  While valid,...

Continue reading "Choices: "Why Do I Need A Trust? Setting the Stage for Decision-making""

Estate and Gift Tax Developments

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Gal N. Kaufman, Melissa A. May, Patrick M. Schoshinski, and Todd I. Steinberg       CASES: Beneficiaries of Estate Must Use Discounted Estate Tax Values for Income Tax Basis Purposes (Janis v. Commissioner, T.C. Memo 2004-117, aff'd 98...

Continue reading "Estate and Gift Tax Developments"

Linda Davis TaylorOver the past twenty years, I have worked with many families on charitable gift planning activities involving their family foundations, both as a representative of a not-for-profit organization seeking funds, and as investment counsel and advisor to families...

Continue reading "Keeping the "Family" in the Family Foundation"

Ethics of Email

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Thomas E. SpahnHistorians looking back at the late 20th Century might well focus on a revolutionary change in society that all of us now take for granted    the universal use of e mail.From the first use of writing several thousand...

Continue reading "Ethics of Email"

By Roger D. Silk, Ph.D., CFA and Evan D. Unzelman    An advisor recently approached us with a dilemma. His client, we'll call him John, set up a charitable remainder trust ("CRT") several years prior. Since then, John's circumstances had changed...

Continue reading "SELLING A CRT INCOME INTERST, Keep the Pros, Eliminate the Cons "

Jeanne L. Newlon, Esq.Venable LLPOn April 21, 2008, the IRS published Revenue Ruling 2008-22 (2008-16 I.R.B. 796) in which it held that the grantor's retention of a power, exercisable in a non-fiduciary capacity, to acquire property held in a trust...

Continue reading "IRS Announces That Substituion Power Does Not Cause Inclusion of Trust Property In Estate"

David W. Reinecke   Foley & Lardner LLP   VII. Conclusion Retaining and planning for the community property interest of the client who migrates to a common law state will normally result in considerable advantages for the estate.  Recognizing...

Continue reading "Community Property Planning Techniques For Professionals In Non-Community Property States"

David W. Reinecke   Foley & Lardner LLP   V. ESTATE PLANNING TECHNIQUES FOR IMPORTED COMMUNITY PROPERTY A. Consultation with Community Property Attorneys 1. Many lawyers in common law jurisdictions may want to consult an attorney in the community...

Continue reading "Community Property Planning Techniques For Professionals In Non-Community Property States"

David W. Reinecke   Foley & Lardner LLP   IV. ADVANTAGES OF RECOGNIZING AND PRESERVING IMPORTED COMMUNITY PROPERTY A. Federal Income Tax Advantages 1. Retaining the community character of property brought into a common law state, or acquired in...

Continue reading "Community Property Planning Techniques For Professionals In Non-Community Property States"

David W. Reinecke   Foley & Lardner LLP   III. The Effect of Migration from a Community Property State to a Common Law State on a Married Couple's Ownership Interests A. Introduction 1. The transfer of community property to...

Continue reading "Community Property Planning Techniques For Professionals In Non-Community Property States"

David W. Reinecke   Foley & Lardner LLP   II. Community and Marital Property Law: The Basics A. Fundamental Principles 1. Community Property States a. Eight states follow a community property system (Arizona, California, Idaho, Louisiana, New Mexico, Nevada,...

Continue reading " Community Property Planning Techniques For Professionals In Non-Community Property States"

Edward A. Moses, Ph.D., J. Clay Singleton, Ph.D., and Stewart A. Marshall III, Esq.     Authors' Note: Modern Portfolio Theory has become a customary tool used by investment professionals and, as such, constitutes an industry standard that investment...

Continue reading "Developing and Defining a Well Managed Portfolio - A Primer on Modern Portfolio Theory"

Espen Robak     Are estate planners shortchanging their clients by applying obsolete and inappropriate valuation rules that overvalue transferred stock options? Regardless of how you feel about the ability of older valuation methods to produce accurate estimates of...

Continue reading "A "Fair Market" Approach To Valuing Stock Options"

Croakspeak

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Gerald Le Van   The Le Van Company, LLC, Black Mountain, NC   I. Beclouded by Croakspeak? Take Charge! Most of us who have estate plans can't tell you what's in them. We thought we understood at the time...

Continue reading "Croakspeak"

For Professionals In Non-Community Property States David W. Reinecke   Foley & Lardner LLP   Executive Summary In our highly mobile society, it is likely that many legal practitioners and other professional advisors from common law states will encounter clients...

Continue reading " Community Property Planning Techniques - Part I"

Artwork And Collectibles: An Introduction

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Matthew F. Erskine, Esq   Erskine & Erskine, Worcester, MA   Introduction Whether it is picking up shells on the beach, picking out fine art in a gallery or picking over items at a yard sale, all of us have...

Continue reading "Artwork And Collectibles: An Introduction"

Catherine M. ShawPresident, Mediastudio Inc.   Summary Branding for Wealth Strategy and Planning Executives begins by defining why branding is an important element in your firm's growth in the marketplace.  Following, the article discusses ways in which executives can...

Continue reading "Branding For Wealth Strategy And Planning Executives: How to weave key brand messages into everyday conversations or presentations "

Charles M Bruce Partner, Moore & Bruce, LLP     Summary Viewing international estate planning broadly, the ideal approach takes advantage of a diversity of jurisdictions, so as to achieve the best results and preserve the most flexibility. Leaving...

Continue reading "Michael Collins, Dauphins and Other Approaches to International Estate Planning"

George P. Levendis   Levendis Law Group   Overview            This listing is the first in a series of columns that Mr. Levendis will publish periodically in the online publication, Wealth Strategies Journal.  Each article will be on a subject...

Continue reading "Federal Transfer Tax Law and the Recent and Coming Elections"

Using the Power of Currency to Add Return

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Mary Ann Best   Bernstein Global Wealth Management   Most investment professionals think investors should allocate a portion of their portfolios to international stocks so they can fully participate in the best investing opportunities around the globe--and reap some...

Continue reading "Using the Power of Currency to Add Return"

Sarah M. Johnson   Venable LLP, Washington, D.C.   Introduction The appointment of guardians for minor children is one of the most important aspects of a parent's estate plan.  If called to serve, the ideal guardian will oversee the...

Continue reading "Planning Considerations In Naming A Guardian For A Minor Child"

Newell W. Anderson Jr.   RBC Dain Rauscher, Philadelphia PA   Building a financial plan tailored to your current situation is essential, but as many financial professionals will tell you, it's equally important to factor in the future. As...

Continue reading "Planning Your Finances During All Stages of Life"

Watching The Watchman

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Lawrence A. Frolik   Professor of Law, University of Pittsburgh School of Law, Pittsburgh, PA    "Those who have wealth must watchful and wary:"                                                  -Thomas Haynes Bayly  The sad events surrounding 104 year old Brooke Astor should remind...

Continue reading "Watching The Watchman"

Donald Kozusko Partner, Kozusko Harris Vetter Wareh LLP, Washington, D.C.     Summary The increase in the number and value of family trusts in the United States has been accompanied by an evolution, even revolution, in the ways in...

Continue reading " Choices: "Reciprocal Trust Doctrine Threatens Family Decision-making""

Jonathan E. Gopman   Cummings & Lockwood LLC, Naples FL   Crummey Powers and 5 and 5 powers are two of the most common forms of withdrawal rights granted to beneficiaries of trusts.  Planners using trusts containing such withdrawal rights...

Continue reading "Asset Protection: "UTC Section 505(b) - Pandora Opens The Box""

James E. McNair, Gregory J. Rupert, and Cynthia L. Gausvik   Patton Boggs, LLP   It is a situation that many parents and grandparents, particularly those with significant wealth, dread: the trust fund baby.  Think of Benjamin Braddock in...

Continue reading "Family Incentive Trusts Dynamic New Approach Employing Trust Distributions to Communicate Family Values and to Promote Productivity and Performance in Beneficiaries"

by Martin M. Shenkman, CPA, JD, MBA and Richard L. Harris, CLU, AEP   Introduction to Split-Dollar A Split-dollar arrangement is a way of funding the purchase of life insurance between two parties.  It is not an insurance policy....

Continue reading "What Trustees Should Know about Asset Management Approaches and Rebalancing Elections"

Tax Return Preparer Penalties

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James E. McNair, Gregory J. Rupert, and Cynthia L. Gausvik, Eric C. Wang and William A. MacDonald   On May 25, 2007, Congress unexpectedly made changes to Internal Revenue Code ("Code") Section 6694, which imposes penalties upon accountants, lawyers, and...

Continue reading "Tax Return Preparer Penalties"

Edward A. Moses, Ph.D., J. Clay Singleton, Ph.D., and Stewart A. Marshall III, Esq.     Authors' Note Modern Portfolio Theory has become a customary tool used by investment professionals and, as such, constitutes an industry standard that investment decision...

Continue reading "Determining the Appropriate Income Withdrawal Rate for a Portfolio: The Crossover Rate"

By David A. Wexler, CLU, ChFC At a recent life insurance industry convention, two pundits were debating the pros and cons of the Investor Owned Life Insurance - known as IOLI - transaction (also known as Speculator initiated Life Insurance...

Continue reading "The IOLI, SPINLIFE, STOLI transaction, what is it and is it good for your client?"

Alan S. Acker   Introduction Our transfer tax system motivates wealthy individuals to give property to spouses, children, grandchildren, and others in an effort to reduce anticipated transfer taxes that hover over us. Donors motivated by tax considerations often...

Continue reading "Every Drafter's Dream: The Flexible Irrevocable Trust"

Alexander Bove   Believe it or not, there was a time when just about the only investment choices in the public "stock market" were stocks and bonds.  As economies grew and amounts of investable assets grew even more, however,...

Continue reading "Stripping in Private: Planning with Stripped Installment Notes"

Patrick J. Collins, Ph.D., CLU, CFA and Josh Stampfli, MS (EESOR) Abstract Trust beneficiaries are best served when trustees select investment portfolio management approaches that enhance (1) the probability of achieving settlor objectives; and (2) beneficiary utility.  Investors and...

Continue reading "What Trustees Should Know about Asset Management Approaches and Rebalancing Elections"

Martin M. Shenkman, CPA, JD, MBA and Richard L. Harris, CLU, AEP   Introduction to Split-Dollar A Split-dollar arrangement is a way of funding the purchase of life insurance between two parties.  It is not an insurance policy.  In split-dollar,...

Continue reading "Split-Dollar Arrangments for Life Insurance - An Overview"