Vol. 2   Issue 6 - June 2010  -  www.cannonfinancial.com

Planning Ideas - Net Gifts

   With the maximum gift tax rate down to 35 percent, the applicable federal rate (AFR) hovering near historic lows, and the return of the estate and generation-skipping transfer tax (GST tax) looming in 2011, 2010 presents opportunities for gifts to children and grandchildren, even for those clients that have exhausted their lifetime gift tax exemption of $1 million. One strategy that’s sometimes overlooked in lieu of more complex transactions, such as grantor retained annuity trusts (GRAT) and intentionally defective grantor trusts (IDGT), is the net gift. Read More.

Practice Management -
Cutting the Jargon

   Has your physician ever said that you can have a medicine PRN? Has she ever asked if you have pain in the upper right quadrant? Has he recommended that you have a coronary bypass surgery due to myocardial insufficiency, and left you wondering whether that’s good or bad? Chances are, most of us have had these or similar experiences. When confronted with technical, impersonal, language like this, we are faced with a difficult choice. Either we act like we know what our doctor means, or we ask for an interpretation. Read More.

Taxes - New Case of Successful Family Limited Partnerships

   The IRS continues to attack family limited partnerships (FLPs), often arguing that, notwithstanding the partnership structure, the decedent has retained an interest in the underlying partnership interests under IRC Section 2036. Consequently, so the argument goes, the assets should be includible in the gross estate at full fair market value. Read More

Regulation and Compliance - Guidelines for Trust Protectors

   Trust Protectors initially gained popularity in connection with offshore asset protection trusts. Those Trust Protectors are typically expected to remove and replace fiduciaries or change the situs of a trust in an attempt to stay one step ahead of a settlor’s creditors. The role of the domestic Trust Protector is not as clearly defined as only a few states have legally recognized the dual existence of Trustee and Trust Protector. Read More