I must confess that all this talk about estate tax repeal and farmers losing their corn fields has resulted in our clients being confused and my mother being worried. No son wants to worry his mother and no mother would want her child without a job. Recently, my mom inquired how our business would fair if there were no estate tax planning required. Implicit in that question was her belief that no one would need our services if the Republicans were successful in repealing the estate tax and thus her poor son would end up starving and her grandchildren destitute!… Read more
Tax Law
High Altitude Dreams
Santa Fe, New Mexico. Far removed from my office in New York City and recently hiking with friends in the mountains of New Mexico, I had a daydream. It goes something like this: That during this election year, the candidates would have a clear non-polarizing debate about the estate tax laws. Well, it must have been the thin air and magnificent beauty of New Mexico was making me light headed and forcing me to have delirious thoughts. I truly suspect that this will not happen. So if the candidates will not have this discussion then it will be up to… Read more
Rock ‘N’ Roll & Estate Taxes
Having grown up listening to and memorizing every Beatles song, I was deeply saddened by the death of George Harrison. His musical and social contributions will remain indelibly etched in the culture of this country. So why is it that an estate tax attorney chooses to write about Rock ’n’ Roll? Shortly after George Harrison’s death, I was reminded of a song he wrote in 1966 entitled “Taxman.” The lyrics are scathing, but true. And for our clients, a healthy and even humorous dose of reality about the American tax system: that even upon your death the government can levy… Read more
Random Thoughts About Planning With S Corporation Stock
I am particularly fond of the quote from the noted author, Stephen R. Covey. He commented: “Did you ever consider how ridiculous it would be to cram on a farm – to forget to plant in the spring, play all summer and then cram in the fall to bring in the harvest? The farm is a natural system. The price must be paid and the process followed. You always reap what you sow; there is not shortcut.” And so it goes with many things in life. There is no shortcut in establishing a durable relationship with your spouse or partner…. Read more
Success through Succession
The current global economic maelstrom, leaving no business unscathed, has caused many of our clients who are business owners to reflect (and inquire about) the key ingredients that it will take to enhance the chances of successfully transferring their businesses to the next generation. This is not some theoretical debate about the importance of family enterprises and how they will survive (and thrive) as it has been widely noted that between 70 and 90 percent of the global GDP was accounted for by family businesses. These same findings suggest that family businesses will remain the cornerstone of the worldwide economy…. Read more
Win Win
The economic turmoil that enveloped our country created an unusual set of circumstances for both affluent donors and charitable institutions. On the one hand, after many years of relative ease in raising money, charitable institutions are encountering unprecedented headwinds in reaching their financial goals for their capital campaigns. For the affluent donors that created a Charitable Remainder Trust (“CRT”) they are now feeling significantly de-capitalized as they watch their balance sheets dramatically shrink. Many donors are “feeling poorer” and, in some cases, their purse strings have become hermetically sealed. But there is a bit of good news that should be… Read more