Vol. 3   Issue. 2 - February 2011  www.cannonfinancial.com

Planning Ideas - Life Insurance after the 2010 Tax Act

Main Content Inline Small   A reasonable question, following enactment of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 is how clients should handle their existing life insurance policies.

   Many affluent and high net worth (HNW) clients purchased life insurance primarily for the purpose of creating liquidity to facilitate the payment of estate taxes. The new law made several changes that may cause many clients to consider surrendering or reducing the face amount of their policies. Read more

 

Regulation and Compliance -
SEC Recommends Fiduciary Standard for Broker-Dealers

   Last summer, when Congress enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act or Act), it left out one of the more controversial proposals, a provision that would have required broker-dealers to observe the same fiduciary standards as are required of RIAs. Instead, the Act charged the SEC with responsibility for conducting a study of the issue and in six months reporting its findings on the costs and benefits of expanding the investment adviser fiduciary duty to brokers.

    The SEC completed its study on Friday, January 21, 2011 and delivered it to Congress. In general, and to no one’s surprise, the study recommends that both broker-dealers and RIAs be subject to the same regulatory framework. However, the SEC’s study is just the beginning. The report leaves many details to be ironed out, and there are arguments on each side. Read more

 

Taxes - Charitable Gifts of Conservation and Preservation Easements

Main Content Inline Small   Gifts of fractional interests in property generally do not qualify for a charitable deduction. The rule applies for income, estate, and gift tax purposes. One exception to the rule is the deduction allowed for “a qualified conservation contribution.” This type of gift, deductible for income, gift, and estate tax purposes, is a contribution of a “qualified real estate interest” to a “qualified organization” “exclusively for conservation purposes,” which are defined to include- Read more