Vol. 1   Issue 2 - September 2009  -  www.cannonfinancial.com

Planning Ideas - Wealth Transfer with a IDGT

The economy has begun to recover, interest rates remain low, and it’s a good bet that the Federal transfer tax is likely to remain with us given the current political environment and the increasing size of the federal deficit.

It couldn’t be a better time to discuss business succession planning with your clients. A technique that takes advantage of currently low interest rates is an installment sale of the business to an “Intentionally Defective Grantor Trust” (IDGT). Read More.

Regulation and Compliance - Proposed Changes to Regulation SHO

The SEC has extended the time for commentary on its proposed changes to Regulation SHO (short sales). Fed. Reg. Vol. 74, No. 160, August 20, 2009. The proposed regulations, initially made public in April (Fed. Reg. Vol. 74, No. 74, April 20, 2009), have been the subject of considerable comment. According to the SEC, to date there have been over 4,000 unique comments to its proposal. Read More.

Practice Management - Dynamic Discovery

Most advisors agree that the sale occurs during the interview phase, sometimes referred to as discovery. But discovery goes beyond merely “getting the facts.” The best advisors conduct their interviews using Dynamic Discovery techniques including the use of “consequence questions” geared to engage the client and hone in on appropriate solutions. Read More.

Taxes - IRS Puts Taxpayers on Notice - Beware “Toggle Trusts”

In Notices 2009-55 and 2009-59, IRB 2009-31, August 3, 2009, the IRS reminded taxpayers that certain “toggle trusts” (and substantially similar transactions) continue to be considered “transactions of interest.” Designating the listed transactions as “transactions of interests” imposes obligations on taxpayers and their advisors under pain of penalties for non-compliance. Read More