Vol. 1   Issue 1   August 2009         www.cannonfinancial.com

Planning Ideas - Charitable Lead Annuity Trusts Couldn’t be Better

With interest rates at historic lows, it may be an opportune time for your clients to take advantage of a Charitable Lead Annuity Trust.

How it Works
A CLAT is a charitable trust under which a public charity receives a fixed annuity interest for a period measured by a term of years or a life or lives. Following expiration of the charity’s interest, the non-charitable beneficiaries, most often the donor’s heirs, receive the trust property. Read More.

Regulation and Compliance

It should come as no surprise that the recent spate of criminal enforcement activity and high-profile trials including that of Bernie Madoff have prompted regulatory action. A good example is the proposed regulation relating to the “custody rule” under the Investment Advisor’s Act of 1940. Read More.

Practice Management

If you want your practice to run smoothly, you need a blueprint. Cannon’s Growing Your Business blueprint lays it out. Read More.

Taxes: IRS Guidance on Employer-Owned Life Insurance

It used to be relatively easy to understand the income taxation of death proceeds of life insurance. As a general rule, under IRC Section 101(a) (1) death proceeds were income tax free, unless the policy was transferred for a valuable consideration during the insured’s lifetime. In those cases, the amount of the death proceeds excluded from income was limited to the consideration paid for the policy plus subsequent premium payments made by the transferee. The balance of the death proceeds were includable in the beneficiary’s income and taxed at ordinary income tax rates. Read More