Unreported Gifts to Family Members: A Trap for the Unwary

Dear Clients, Colleagues, and Friends, As we have noted in our previous Client Alerts, the current law provides unprecedented gift tax planning opportunities. Until the end of this year, the gift tax exclusion (which is cumulative over one’s lifetime) is $5,120,0000. In addition, the law allows each person to make annual gifts of up to $13,000 to any donee without reporting the gift to the IRS. To this end, during […]

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Obama’s Tax Proposal Regarding Grantor Trusts

Dear Clients, Colleagues, and Friends, As we mentioned in our recent CLIENT ALERT, the Obama Administration’s 2013 Revenue Raising Proposals contained several suggestions that, if enacted, would eliminate commonly-used estate planning techniques that have been effective in significantly reducing an individual’s estate and gift taxes and, in some instances, even eliminate all gift and estate taxes. Earlier this month, we discussed the proposal to reduce the effectiveness of dynasty trusts. […]

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Wealthiest Americans Fearful of Liability Lawsuits, Survey Says

Dear Clients, Colleagues, and Friends, In previous Client Alerts, we have described the necessity and benefits of instituting effective “firewalls” in your estate planning to protect assets and lifestyle from an unforeseen financially ruinous lawsuit. Often this advice goes unheeded until an incident arises which makes it too late to do any planning. We recently came across this following article in which the insurance industry similarly acknowledges the risks of […]

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Major Tax Changes – Administration’s Proposed Tax on Dynasty Trusts

Dear Friends, Colleagues, and Clients, This week, the Obama Administration released its report detailing the myriad of changes coming to the tax laws, many of which are slated to take effect by the end of this year. This announcement should come as no surprise to our Client Alert recipients, as we have been warning of this coming tidal wave of change for the past two years. Under the guise of […]

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Asset Protection for Multiple Partners and Business Owners

Dear Friends, Colleagues, and Clients, Individuals often implement asset protection strategies to protect their personal assets from the individual’s unforeseen creditors. In today’s litigious society, it is necessary that the prudent businessperson consider utilizing asset protection strategies not only to protect one’s individual assets, but also to protect those assets owned by the company. This Client Alert will focus on two techniques used to protect the assets of both the […]

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Doing Business in California after Brinker

Dear Friends, Colleagues, and Clients, If you own a business in California and pay employees, you should be aware of the Brinker case. What is the employer’s obligation with respect to employee meal and rest periods? Must an employer force its employees to take these breaks, or is it enough to make them available for employees who are interested in taking them? An incorrect answer can be expensive. California courts have seen a marked increase in […]

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More Important IRS Reporting Requirements Released

Dear Friends, Colleagues, and Clients, Many of our clients and regular Client Alert readers have foreign asset protection trusts or have invested directly and indirectly in assets which are foreign based. The Department of Treasury, in its attempts to further capture unreported income, has just released another information return, Form 8938, that requires certain eligible taxpayers to timely report the existence of these assets. Many taxpayers or their CPAs, who are already filing the FBAR return, […]

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Piercing the Corporate Veil

Dear Friends, Colleagues, and Clients, In this issue of Client Alert, we will examine the concept known as “Piercing the Corporate Veil,” and how this “weapon” is used by skilled plaintiff’s lawyers to reach beyond a corporation to trap assets personally owned by the corporation’s shareholders. With the advent of the Internet and websites offering low cost incorporation services, many business owners will seek these lower cost alternatives to hiring a business lawyer and can […]

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Democrats Propose to Raise Taxes on the 1%; Protect Programs for the 99% – The Assault on the Rich Continues

Dear Friends, Colleagues, and Clients, In my last issue of Client Alert, I reported that the rumor mill would have the Congressional Super Committee recommending the earlier expiration of the generous gift and estate tax exemption set to expire at midnight on December 31, 2012. The Super Committee failed to reach agreement on anything, so we many never know if this was fact or fiction. Just because the Super Committee failed to reach an […]

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Congress May Reduce the $5M Gift Tax Exemption Before End of 2011

Dear Friends, Colleagues, and Clients, The rumor mill has been spinning regarding potential looming changes to the current $5M gift tax exemption. We have learned that the Congressional super-committee is seriously considering an imminent change to the gift tax rules. For a variety of reasons, this is a compromise the republicans appear willing to accept. If a majority of the committee members agree, there will be an immediate reversion back to 2009 gift tax […]

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