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INSTITUTE FOR ESTATE PRESERVATION

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THE ADVANCED INSTITUTE FOR ESTATE PRESERVATION

The Advanced Institute is a professional training course that offers an extensive education on current topics affecting your estate planning practice.  Each subject is presented by an expert in the industry.  An example of training topics are Medicaid and Veterans Planning, When a Corporate Trustee is Necessary, The Power of Trust Provisions, IRA Trust Planning, Settling the Estate, and more.  The Basic Institute course is preferred prior to attending this course.

THE BASIC INSTITUTE FOR ESTATE PRESERVATION

The Basic Institute is a professional training course that offers a solid education on living trusts, solutions for clients and higher net worth clients using advanced planning concepts, how to properly execute and fund a revocable living trust, steps for estate settlement, available marketing materials and how to use them, and where to look to potentially unlock new business and more.

TOPICS YOU WILL LEARN IN THE BASIC ESTATE PRESERVATION TRAINING INSTITUTE

The History of the Living Trust and Its Relevance Today
The Dangers of Probate
The Revocable Living Trust System
The Revocable Living Trust – 222 Provisions
Ancillary Documents in a Good Trust System
The Planning Team and Avoiding the Unauthorized Practice of Law
Client Generation, Marketing, and New Internet Systems
Advanced Planning Vehicles
The Estate Planning Client Process
Building Estate Planning Office Systems
Working with The Estate Planning Source
Putting Your Plans in Motion
Case Studies

ONLINE TRAINING & EDUCATION

Various information, training and educational material available to network professionals

State Estate Tax and Exemption Chart 2009-2013

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NOTE: State laws change frequently and the following information may not reflect recent changes in the laws. For current tax or legal advice, please consult with an accountant or an attorney since the information contained in this article is not tax or legal advice and is not a substitute for tax or legal advice.

Currently only a handful of states and the District of Columbia collect a state estate tax. Below is a chart that lists which states collected state estate taxes from 2009 through 2013, along with each state’s respective state estate tax exemption. Summary of Changes to State Estate Tax Laws

Here is a summary of the changes that took effect with regard to state estate tax laws between 2009 and 2013:

Delaware enacted a state estate tax that was only supposed to be effective for deaths occurring between July 1, 2009 and July 1, 2013. Nonetheless, in the spring of 2013 the Delaware legislature acted to eliminate the sunset of the tax.

Two states saw their estate tax exemption increase on January 1, 2010: Rhode Island’s exemption increased to $850,000 and Connecticut’s exemption increased to $3,500,000; however, see more on these two states below.

Two states saw their state estate tax disappear on January 1, 2010, due to state legislative action: Kansas and Oklahoma.

On June 27, 2011, S.L. 2011-330 was signed into law by North Carolina Governor Beverly Perdue. This law clarifies that the North Carolina estate tax does not apply to the estates of decedents who died in 2010 but will apply to the estates of decedents dying on or after January 1, 2011 with a $5,000,000 exemption, which is indexed for inflation in 2012 and future years.

Illinois saw its estate tax disappear on January 1, 2010 due to repeal of the federal estate tax, and despite the retroactive reinstatement of the federal estate tax, Illinois’ tax did not come back automatically like in North Carolina. Nonetheless, the Illinois legislature acted quickly at the beginning of 2011 to reinstate the Illinois estate tax for the 2011 tax year with a $2,000,000 exemption. However, in December 2011 the Illinois legislature acted to increase the exemption to $3,500,000 in 2012 and $4,000,000 in 2013.

*Hawaii brought back its state estate tax effective May 1, 2010. Note that although the Hawaii estate tax exemption appears to be set at $3,500,000 for deaths occurring before January 26, 2012, in calculating the tax due the tax really does not kick in until the estate exceeds $3,600,000. In May 2012, Hawaii tweaked its estate tax laws to provide that the Hawaii estate tax exemption will be tied to the federal estate tax exemption for decedents dying after January 25, 2012.

The Rhode Island estate tax exemption will be adjusted for deaths occurring on or after January 1, 2011 based on the percentage increase in the Consumer Price Index rounded to the nearest $5.00.

Vermont’s estate tax exemption was increased to $2,750,000 effective January 1, 2011.

On May 4, 2011, the Connecticut estate tax exemption was retroactively decreased from $3,500,000 back down to $2,000,000 for deaths occurring on or after January 1, 2011.

On June 30, 2011, Ohio Governor John Kasich signed the 2012 – 2013 budget into law, which eliminates the Ohio estate tax effective for deaths occurring on or after January 1, 2013.

On January 1, 2012, the name of Oregon’s death tax changed from an “inheritance tax” to an “estate tax.” In addition, while the Oregon estate tax exemption (formerly inheritance tax exemption) remains at $1,000,000 for 2012 and future years, the tax will only apply to the value of an estate in excess of $1,000,000 (under prior law once an estate exceeded $1,000,000 the tax applied to the entire estate). The estate tax rates have also been changed for 2012 and future years such that the majority of estates valued between $1,000,000 and $2,000,000 will pay slightly less in taxes and estates valued over $2,000,000 will pay slightly more in taxes. Note that on November 6, 2012, Oregon Ballot Measure 84, which would have repealed Oregon’s estate tax by 2016, was defeated, so it does not appear that Oregon’s estate tax will be repealed any time soon.

Effective January 1, 2013, Maine’s estate tax exemption increased to $2,000,000 and the estate tax rate has been lowered.

In May 2012 Tennessee repealed its state gift tax retroactively to January 1, 2012. In addition, the Tennessee estate tax (referred to as an inheritance tax in the Tennessee statutes) will be phased out by 2016.

In June 2013, Washington tweaked its state estate tax laws in several ways that will affect the estates of decedents who die on or after January 1, 2014. First, the $2,000,000 exemption will be indexed for inflation on an annual basis. Second, the estate tax rates for the top four brackets will increase by one percentage point. Finally, certain family-owned businesses will receive an estate tax exemption of up to $2,500,000.

In an unusual move, Minnesota enacted a state gift tax that went into effect on July 1, 2013. Aside from this, Minnesota tweaked its estate tax laws as they are applied to nonresidents who own real estate in Minnesota. The new legislation includes Minnesota property held in a pass-through entity such as an S corporation, a partnership (including a multi-member LLC taxed as a partnership), a single-member LLC or similar entity, or a trust in a nonresident’s estate.

In July 2013, North Carolina’s estate tax was repealed retroactively to January 1, 2013.

State Estate Tax Rates

For information about current state estate tax rates, refer to the 2013 State Death Tax Exemption and Top Tax Rate Chart. State Inheritance Taxes

For information about state inheritance taxes, which are not the same as state estate taxes, refer to the State Inheritance Tax Chart.

State Estate Tax and Exemption Chart

State 2009 Exemption 2010 Exemption 2011 Exemption 2012 Exemption 2013 Exemption
Connecticut $2,000,000 $3,500,000 $2,000,000 $2,000,000 $2,000,000
Delaware $3,500,000 effective 07/01/2009 $3,500,000 $5,000,000 $5,120,000 $5,250,000
District of Columbia $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
*Hawaii No state estate tax $3,600,000 effective 05/01/2010 $3,600,000 $3,600,000 or $5,120,000 $5,250,000
Illinois $2,000,000 No state estate tax $2,000,000 $3,500,000 $4,000,000
Kansas $1,000,000 No state estate tax No state estate tax No state estate tax No state estate tax
Maine $1,000,000 $1,000,000 $1,000,000 $1,000,000 $2,000,000
Maryland $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Massachusetts $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Minnesota $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
New Jersey $675,000 $675,000 $675,000 $675,000 $675,000
New York $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
North Carolina $3,500,000 No state estate tax $5,000,000 $5,120,000 No state estate tax
Ohio $338,333 $338,333 $338,333 $338,333 No state estate tax
Oklahoma $3,000,000 No state estate tax No state estate tax No state estate tax No state estate tax
Oregon $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Rhode Island $675,000 $850,000 $859,350 $892,865 $910,725
Tennessee $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,250,000
Vermont $2,000,000 $2,000,000 $2,750,000 $2,750,000 $2,750,000
Washington $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000

 

Overview of New Jersey Estate Tax Laws

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Understanding How New Jersey Estate Taxes Affect an Estate
By Julie Garber, About.com Guide

NOTE: State laws change frequently and the following information may not reflect recent changes in the laws. For current tax or legal advice, please consult with an accountant or an attorney since the information contained in this article is not tax or legal advice and is not a substitute for tax or legal advice.

In addition to a state inheritance tax, New Jersey also imposes a separate state estate tax which has been decoupled from the federal estate tax laws. Here is a summary of the current New Jersey estate tax laws.

When is a New Jersey Estate Tax Return Required to be Filed?

A New Jersey estate tax return, Form IT-Estate, must be filed if the decedent’s gross estate plus adjusted taxable gifts exceeds $675,000. How is the New Jersey Estate Tax Calculated?

The New Jersey estate tax is either the maximum credit for state inheritance, estate, succession or legacy taxes allowable under the provisions of the Internal Revenue Code in effect on December 31, 2001 (this is called the “Form 706 Method”), or an amount determined pursuant to the Simplified Tax System prescribed by the Director, Division of Taxation (this is called the “Simplified Form Method”).

The Form 706 Method must be used if the taxpayer is required to file a federal estate tax return, IRS Form 706.

If the taxpayer isn’t required to file IRS Form 706, then, in addition to the Form 706 Method, the Simplified Form Method may be used provided that it produces a tax liability similar to the Form 706 Method.

When is the New Jersey Estate Tax Return and Any Payment Required Due?

Form IT-Estate must be filed and any tax due must be paid within nine months of the decedent’s death, or nine months plus 30 days if the Form 706 Method is used.

An extension of time to file Form IT-Estate may be requested, however, even if an extension is granted it won’t delay the time for payment of any tax due.

The Form 706 Method requires that Form IT-Estate be prepared and filed along with a 2001 IRS Form 706. This is in addition to IRS Form 706 for the year of the decedent’s death if one is required to be filed. Where is the New Jersey Estate Tax Return Filed?

Mail the New Jersey estate tax return, Form IT-Estate, and all other required forms to:

NJ Inheritance Tax and Estate Tax
P.O. Box 249
Trenton, New Jersey 08695-0249

What is the New Jersey Estate Tax Rate?

The tax rate is a progressive rate that maxes out at 16% for the amount above $10,040,000.

Are Transfers to a Surviving Spouse Taxable?

Outright transfers to a surviving spouse are not taxable.

For married couples who have used AB Trust planning to reduce their federal estate tax bill, a New Jersey estate tax may be due on the B Trust after the first spouse’s death if there is a gap between the New Jersey estate tax exemption and the federal estate tax exemption at the time the federal estate tax comes back into effect. A married decedent’s estate is authorized to make an election on Form IT-Estate to treat property as marital deduction qualified terminable interest property (“QTIP”) for New Jersey purposes, but married New Jersey couples cannot defer payment of both New Jersey estate taxes and federal estate taxes until after the death of the surviving spouse using an ABC Trust scheme.

Are Transfers to a Surviving Domestic Partner Taxable?

Federal estate tax laws do not have a provision providing a deduction for property passing to a domestic partner. However, if a New Jersey decedent was a partner in a civil union and died on or after February 19, 2007, and was survived by his or her partner, then a marital deduction equal to that permitted to a surviving spouse under the provisions of the Internal Revenue Code in effect on December 31, 2001, is permitted for New Jersey estate tax purposes.

Does New Jersey Impose a Lien on the Deceased Person’s Property?

For New Jersey decedents dying after December 31, 2001, the New Jersey estate tax remains a lien on all property of the decedent as of the date of death until paid. No property may be transferred without the written consent of the Director of the Division of Taxation.

Where Can I Find Additional Information About New Jersey Estate Taxes?

For more information about New Jersey estate taxes, refer to New Jersey Inheritance and Estate Tax General Information on the New Jersey Division of Taxation website.

Overview of New York Estate Tax Laws

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Understanding How New York Estate Taxes Affect an Estate
By Julie Garber, About.com Guide

If you live in New York, then you live in one of a handful of states that collects a state estate tax. The estates of New York residents, as well as the estates of nonresidents who own real estate and/or tangible personal property located in New York, are subject to a state estate tax under the following guidelines.

NOTE: State laws change frequently and the following information may not reflect recent changes. For current tax or legal advice, please consult with an accountant or an attorney since the information contained in this article is not tax or legal advice and is not a substitute for tax or legal advice.

When is an estate subject to the New York estate tax?

For New York residents, an estate may be subject to the New York estate tax if the total of the federal gross estate, plus the federal adjusted taxable gifts and specific exemption, exceeds $1,000,000.

For nonresident U.S. citizens, an estate may be subject to the New York estate tax if it includes real estate or tangible personal property having a situs within the state of New York and the gross estate, plus federal adjusted taxable gifts and specific exemption, exceeds $1,000,000.

For nonresident, non-U.S. citizens, an estate may be subject to the New York estate tax if it includes real or tangible personal property having a situs within the state of New York and the estate is required to file a federal estate tax return (Form 706-NA).

What New York estate tax forms must be filed?

Each estate that may be subject to the New York estate tax as described above must file a Form ET-706, New York State Estate Tax Return.

The estate of a nonresident must also file Form ET-141, New York State Estate Tax Domicile Affidavit.

Aside from these New York forms, the starting point for Form ET-706 is the federal estate tax return, IRS Form 706. Thus, a completed IRS Form 706 (or IRS Form 706-NA for a noncitizen, non-U.S. resident) with all schedules and supporting documents must be completed and submitted with New York Form ET-706 even if the estate is not required to file a federal estate return.

Are transfers to a surviving spouse taxable?

Outright transfers to a surviving spouse are not taxable.

For married couples who have used AB Trust planning to reduce their federal estate tax bill, a New York estate tax may be due on the B Trust after the first spouse’s death due to the gap of $4,250,000 between the New York estate tax exemption of $1,000,000 and the 2013 federal estate tax exemption of $5,250,000. A married decedent’s estate is NOT authorized to make an election on Form ET-706 to treat property as marital deduction qualified terminable interest property (“QTIP”). What this means is that married couples cannot defer payment of both New York estate taxes and federal estate taxes until after the death of the surviving spouse using an ABC Trust scheme.

When is the New York estate tax return and any payment required due?

Form ET-706 must be filed and any tax due must be paid within nine months after the decedent’s date of death unless an extension of time to file the return and pay the tax is received.

An extension of time to pay the estate tax for up to four years from the date of death may be granted if it is established that payment of any part of the tax within nine months from the date of death would result in undue hardship to the estate, but annual installments may be required. Extensions of time to file the return, pay the tax, or both, are requested on Form ET-133.

Where is the New York estate tax return filed?

Mail the New York estate tax return, Form 706-ET, and all other required forms to:

NYS Estate Tax Processing Center
P.O. Box 15167
Albany, NY 12212-5167

What is the New York estate tax rate?

The New York estate tax rate is a progressive one that starts at 5.085% and rises to 16% for the amount above $10,040,000.

Where can I find additional information about New York estate taxes?

For more information about New York estate taxes, refer to the New York Department of Taxation and Finance website.

How can I get an estimate of my New York estate tax liability?

To calculate an estimate of your New York estate tax liability, refer to the following calculator offered by the New York law firm of Cohen & Schwartz, LLP: New York Estate Tax Calculator

Overview of Rhode Island Estate Tax Laws

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Understanding How Rhode Island Estate Taxes Affect an Estate
By Julie Garber, About.com Guide

NOTE: State laws change frequently and the following information may not reflect recent changes in the laws. For current tax or legal advice, please consult with an accountant or an attorney since the information contained in this article is not tax or legal advice and is not a substitute for tax or legal advice.

If you live in Rhode Island, then you live in one of the remaining states that collects a state estate tax or a state inheritance tax. The estates of Rhode Island residents, as well as the estates of nonresidents who own real estate and/or tangible personal property located in Rhode Island, are subject to a state estate tax under the following guidelines.

When is a Rhode Island Estate Tax Return Required to be Filed?

For a Rhode Island resident, a Rhode Island Estate Tax Return, Form 100A, must be filed if the decedent’s gross estate plus adjusted taxable gifts exceeds $675,000 in 2009, $850,000 in 2010, $859,350 in 2011, $892,865 in 2012, or $910,725 in 2013.

For a nonresident, the estate must file Form 100A if the estate includes real or tangible personal property located in Rhode Island and the gross estate plus adjusted taxable gifts exceeds $675,000 in 2009, $850,000 in 2010, $859,350 in 2011, $892,865 in 2012 or $910,725 in 2013.

A signed copy of the federal estate tax return, IRS Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, must accompany Form 100A if the estate is required to file Form 706.

Note: The Rhode Island estate tax exemption increased from $675,000 to $850,000 on January 1, 2010, and has been indexed for inflation beginning in 2011.

When is the Rhode Island Estate Tax Return and Any Payment Required Due?

Form 100A must be filed and any tax due must be paid within nine months of the decedent’s death.

An extension of time to file Form 100A may be requested, however, even if an extension is granted it won’t delay the time for payment of any tax due.

Where is the Rhode Island Estate Tax Return Filed?

Mail the Rhode Estate Tax Return (Form 100A), a $25.00 filing fee, any payment due, and all other required forms to:

Rhode Island Division of Taxation Estate Tax Section
One Capitol Hill
Providence, RI 02908

Make checks payable to “RI Division of Taxation.”

What is the Rhode Island Estate Tax Rate?

The tax rate is a progressive rate that maxes out at 16% for the amount above $10,040,000.

Are Transfers to a Surviving Spouse Taxable?

Outright transfers to a surviving spouse are not taxable.

For married couples who have used traditional AB Trust planning to reduce their federal estate tax bill, a Rhode Island estate tax may be due on the B Trust after the first spouse’s death since there is a gap between the Rhode Island estate tax exemption and the federal estate tax exemption (for example, the gap in 2012 is equal to a whopping $4,107,135). A married decedent’s estate is, however, authorized to make an election on Form 100A to treat property as marital deduction qualified terminable interest property (“QTIP”) for Rhode Island purposes, so married Rhode Island couples can defer payment of both Rhode Island estate taxes and federal estate taxes until after the death of the surviving spouse by using an ABC Trust scheme instead of AB Trust planning.

Do Nontaxable Estates Have to File Any Forms?

For gross estates valued at the exemption amount or less, Form 100, Estate Tax Credit Transmittal, can be filed to obtain discharge of the automatic statutory lien that attaches to all Rhode Island real estate a person owns at death, to obtain a Notice of No Tax Due for probate administration purposes, and to allow the sale of Rhode Island securities, including Rhode Island incorporated stock, Rhode Island state and municipal bonds, and mutual funds organized as business trusts that do business in Rhode Island.

Form 100 should be signed by the executor, administrator, trustee or heir at law of the deceased person. It should be mailed along with a death certificate and $25.00 filing fee to the address listed above for Form 100A.

Note: As mentioned above, the Rhode Island estate tax exemption was increased from $675,000 to $850,000 on January 1, 2010, and was then indexed for inflation beginning in 2011. Does Rhode Island Impose a Lien on the Deceased Person’s Property?

Form T-77, Discharge of Lien Form, must be filed along with Form 100A or Form 100 if the decedent had any interest in real estate located in Rhode Island. Form T-77 must be filed in triplicate and the description of the real estate must be stated as the tax assessor’s description which can be found on the property tax bill issued by the applicable city or town.

Form T-79, Estate Tax Waiver Form, must be filed along with Form 100A or Form 100 if the decedent had any interest in a security of a Rhode Island incorporated business requiring an estate tax waiver. Form T-79 must be filed in duplicate.

Where Can I Find Additional Information About Rhode Island Estate Taxes?

For more information about Rhode Island estate taxes, refer to the Rhode Island Division of Taxation website.

5 Reasons People Dither, Dawdle And Put Things Off- Self Growth Series

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Ever found yourself saying “One of these days I’m going to ………” but then finding ‘one of those days’ never happens? Or find yourself with so much to do but little desire to tackle any of it? What about the time you were determined to stick to your New Years resolution only to find your initial enthusiasm on the wane by January 2nd? If you can relate to any of the above, you have found yourself caught in the great procrastination trap. Procrastinating (delaying taking action) can lead to increased stress, a lack of fulfilment and rob you of living a more enjoyable life. How do I know? I’m talking from experience. I delayed tidying my garage for two years and then wondered why I’d been putting it off for so long when I finally tackled it. De-cluttering my office was a task I wish I’d done sooner……… about five years sooner! It was only when I felt my stress levels were becoming unacceptably high, that I finally decided clutter and calm were not compatible. And I have been a master of deluding myself into thinking that the reason I haven’t made that difficult phone call is due to a lack of time, rather than the real reason, which is I felt uncomfortable about making it.  So why do we do it?

Here are five reasons:

1. Failure Focus.

We choose to focus our thoughts on ‘what if I fail’, which can render us powerless to act. It undermines our confidence and self belief and we comfort ourselves with the notion that ‘if I don’t attempt something, I can never be accused of failing’. That’s true. And neither can you experience the emotional highs gained from achievement and success.

2. Comfort Blanket Syndrome.

Taking action may at times require us to leave our world of familiarity, safety and security. Yet when we do something new or different, it can feel strange initially. This feeling of uncertainty can see us reaching out for our comfort blanket of previous habits and behaviour and withdraw from our new challenge.

3. Frozen By Feelings.

We can sometimes allow our feelings to dictate whether or not to take action. So we wait until we feel motivated or feel creative. Put simply, emotions can take our actions hostage.

4. Illusions Of Activity.

You may appear busy, but busy doing what exactly? Planning, discussing and researching may all be very necessary, but there comes a point when only action will do.

5. Conned By Complacency.

“There’s no rush …….. I’ll wait till I’m older ……… I’ll start it in the New Year”. There is always some reason to put off taking action today. As time passes, we delude ourselves into believing ‘There’s plenty of time’ whilst we drift along in a haze of complacency.
By Paul McGee, Sumo Guy

Federal Reserve Bank of New York

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The Federal Reserve Bank of New York is one of 12 regional Reserve Banks which, together with the Board of Governors in Washington, D.C., make up the Federal Reserve System. The Fed, as the system is commonly called, is an independent governmental entity created by Congress in 1913 to serve as the central bank of the United States. It is responsible for formulating and executing monetary policy, supervising and regulating depository institutions, providing an elastic currency, assisting the federal government’s financing operations, and serving as the banker for the U.S. government. In addition, the Federal Reserve System has important roles in operating the nation’s payments systems, protecting consumers’ rights in their dealings with banks and promoting community development and reinvestment.

The New York Fed oversees the Second Federal Reserve District, which includes New York state, the 12 northern counties of New Jersey, Fairfield County in Connecticut, Puerto Rico and the U.S. Virgin Islands. Though it serves a geographically small area compared with those of other Federal Reserve Banks, the New York Fed is the largest Reserve Bank in terms of assets and volume of activity.

The New York Fed employs about 2,700 officers and staff at the head office and the regional office in East Rutherford, New Jersey.

In addition to responsibilities the New York Fed shares in common with the other Reserve Banks, the New York Fed has several unique responsibilities, including conducting open market operations, intervening in foreign exchange markets, and storing monetary gold for foreign central banks, governments and international agencies. Foremost among its functions is the implementation of monetary policy, one of the three missions of the New York Fed. The other two are supervision and regulation, and international operations.

Go to the website: http://www.newyorkfed.org/index.html

SBA Office of Advocacy

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Created by Congress in 1976, the Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. Appointed by the President and confirmed by the U.S. Senate, the Chief Counsel for Advocacy directs the office. The Chief Counsel advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. Economic research, policy analyses, and small business outreach help identify issues of concern. Regional Advocates and an office in Washington, DC, support the Chief Counsel’s efforts.   As the federal office responsible for examining the contributions and challenges of small businesses in the U.S. economy, we are constantly looking for answers to small business questions—those that intrigue researchers, challenge business organizations, enlighten policymakers, and vex small business owners. Reference materials published annually include small business profiles for each of the 50 states and U.S. territories, quarterly small business indicators, and The Small Business Economy report.   Advocacy attorneys work within the government, educating regulators about their obligation to consider how small entities will be affected by federal regulatory proposals. The Regulatory Flexibility Act (RFA) and Executive Order 13272 require federal agencies to determine the impact of their rules on small entities, consider alternatives that minimize small entity impacts, and make their analyses available for public comment. The Office of Advocacy gives small firm owners and their representatives opportunities to make their voices heard about rules that affect their interests. Annually, the Office of Advocacy helps small businesses save billions in regulatory costs.   Recognizing that state and local governments can be a source of burdensome regulations, the Office of Advocacy works with policymakers to bring regulatory flexibility to the states. Many states have enacted legislation or taken other steps to strengthen regulatory flexibility for small businesses. Giving small employers a voice early in the process is key to reducing the small business impact of state regulations while increasing regulatory compliance and passing on cost savings. Our Regional Advocates in the 10 SBA regions stand ready to hear from you about small business concerns and to help you level the playing field for small businesses in your state.

Website: http://www.sba.gov/advocacy/7496/260591

What We Inherit From Parents and Attitudes It Creates

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“Happy families are all alike; every unhappy family is unhappy in its own way.” -Tolstoy, Anna Karenina

Have you read Jonathan Franzen’s new novel, “Freedom”? It has the dubious distinction of being one of Oprah’s Book Club selections and receiving a devastating review in The New Republic.

There being no such thing as bad publicity, the breadth of comment and reaction in many venues at many levels of criticism and approbation has it firmly ensconced on the New York Times best-seller list. The main plot, the train wreck of a marriage between Patty and Walter Berglund and all the collateral damage caused to other family members and friends, I will leave to your reading.

The Berglunds are liberals during the George W. Bush administration and raise a family, have affairs, destroy relationships and generally wreak havoc. As Ruth Franklin, writing for The New Republic says, Freedom is a “The Way We Live Now” novel in which, as in Trollope’s novel of that title, the perfidy and moral vacuity of the age are laid bare. “Mistakes were made.”

Near the end of the book, Patty Berglund’s mother, Joyce, is trying to make an estate plan. She is a widow and owner of a family estate her husband inherited from his father.

Spoiler Alert: The story that follows about Patty’s family is near the end of the book. You may want to wait and read the book. On the other hand, in truth, this particular vignette has precious little to do with the rest of the book; and you won’t really be spoiling anything.

What is Joyce’s problem? Her children and other family members are pressuring her. Her son Edgar, his wife and numerous children live in the estate, which has fallen into grave disrepair. They live there rent free, of course. This son has produced Joyce’s only grandchildren. He threatens that he, his wife and the precious grandchildren will relocate to a settlement on the West Bank in Israel if he doesn’t get his way.

Patty’s two sisters, Abigail and Veronica, who were the favorites while Patty was growing up, have failed to become self-supporting and count themselves entitled to mother Joyce’s support.

Patty hasn’t been part of the family for years — since the first Thanksgiving after she married Walter. Now she is back in the picture trying to broker a deal. But of course, she and her children aren’t in line for part of the inheritance — she has been the family black sheep for too long.

Also in the picture are Joyce’s two brothers-in-law. Her husband received the family estate from his parents. The other two brothers were left other assets in the will but, regrettably, these declined in value and were worthless when they were inherited. Joyce feels they may have a moral claim on part of the family estate.

What is the inheritance here? False claims of entitlement, emotional blackmail, long-held grudges, greed, and jealousy. Who is the property owner? That would be Joyce. Does anyone care, does anyone even ask, what she wants? Joyce is paralyzed by the conflicting demands, so does nothing? This is always making a decision in itself. By doing nothing she is choosing to let New York’s intestacy statute apply, dividing the estate equally among the four children. And who is to say that is not the best thing?

From generation to generation: what is the legacy for Patty and Walter’s two children? That selfishness and cruelty continue down the family tree? That people are really “selfish and shortsighted and egotistical and needy.” Will Walter make sure that his children get the lake cottage he inherited from his mother? Will one of the children demand that they get all of it — cutting off a sibling in juvenile rivalry?

And you, what will you do with your estate? Are you avoiding making decisions because you know the children will be “unhappy?” Are you planning your dispositions secretly, so the bomb will go off after the funeral when the will is read?

By Patti S. Spencer, Staff Writer

Concerns of a Trustee, a Valuable Interview

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Q: Do your parents have a trust? A: Yes

Q: Do you know where the trust document is? A: Yes

Q: As your parents are getting up in years, what are your main concerns? A: Will I have enough money to take care of them or do they have enough money?  What will be my costs for supporting them if I need to?  Are their assets protected fromt he state or goverment, or prtoected from family members who they don’t want to have it?

Q: Do you have a copy? A: Yes

Q: What have they told you about it? A: Not much, I am the Executor and in charge of everything.

Q: Do you know what it means to be an Executor? A: Yes, to read out the document and make sure my parents’ wishes are carried out.

Q: Do you know Executor’s have specific fiduciary responsibilities? A: No

Q: Would it be helpful for you to have information that explains these responsibilities? A: Yes, as long as it was not too long ot in terms which are hard to understand.  I would like to know what’s expected of me.

Q: Do you have siblings? A: Yes

Q: Do you anticipate conflict with your siblings? A: For the most part, no.  I anticipate we could have frustrations over how to handle things, but nothing major.  My parents trusted that I could handle it best out of all kids.  My plan is to disperse everything evenly, without conflict…if possible.

Q: Do you feel added presure or burden for being the Executoe, especially because your siblings are not? A: Yes

Q: Do you know what Settlement means? A: Sort of. I have a basic understanding.

Q: Where would you turn for settlement help? A: An attorney

Q: Did you know a CPA could be needed for settlement? A: No

Q: Do you know all of your parents assets or have you seen a list of all their accounts? A: No but I have a decent idea.

Q: Do you know the name of your parents’ financial advisor? A: Fidelity

Q: Anyone at Fidelity specifically? A: No

Q: Do you know the firm or name of the attorney who drafted their trust? A: No

Q: If you have any questions about the trust document, where would you turn? A: An attorney