8/ INVESTMENTS:
The Illusion of Calm?
By Michael E. Lewitt
A stable global financial system is an absolute necessity—unfortunately, a stable financial system is precisely what we still don’t have. The world remains highly vulnerable to another crisis until appropriate economic and regulatory changes are instituted. Meanwhile, investors should insure their portfolios can be turned into cash quickly. Also, pay close attention to value measures such as price/earnings ratios and credit spreads for warning signs.
Michael E. Lewittis president of Harch Capital Management, Inc. in Boca Raton, Fla. and author of The HCM Market Letter.
14/ ESTATE PLANNING & TAXATION:
Arghhhhhh!
By Roy M. Adams & Stuart A. Weichel
We’ve been waiting for a real solution to the estate tax dilemma since 2001, but at press time we still didn’t know what would happen.
Roy M. Adams is a partner at Constantine Cannon LLP, in New York.
Stuart A. Weichel is an associate at Constantine Cannon LLP, in New York.
15/ VALUATIONS:
Discounts Under Siege
By Radd L. Riebe
In the family limited partnership arena, 2009 was a bad year for taxpayers who didn’t do things properly. The Internal Revenue Service challenged transfers of interests using the indirect gift or step-transaction doctrines, or the failure to meet the bona fide sales exception. Expect the focus on valuation issues in general and discounts in particular to intensify in 2010.
Radd L. Riebe is a managing director of the Valuation and Financial Opinions Group at Stout Risius Ross, Inc., in Cleveland.
18/ RETIREMENT BENEFITS:
The North Winds Howled
By Michael J. Jones
Retirement accounts took a hit last year, not only from the economic meltdown, but also because of swindlers like Bernard Madoff. Here are some practical ways you might help clients clean up this mess.
Michael J. Jonesis a partner in Monterey, Calif’s Thompson Jones LLP and chairs the Trusts & Estates Retirement Benefits Committee.
25/ PHILANTHROPY:
Rising to the Challenge
By Karen H. Putnam
Since personal and foundation portfolios nose dived last year, philanthropy has focused more on gifts that might have the most impact on charities, such as infrastructures and public-private partnerships.
Karen H. Putnamis director of Philanthropic and Family Wealth Stewardship Services at Bessemer Trust in New York.
27/ INSURANCE:
The Estate Planner’s Guide To Product Suitability
By Charles L. Ratner
There’s too often a mismatch between complex estate plans and premium-paying strategies on the one hand and life insurance products on the other. Here are some practical guidelines for determining a policy’s suitability for your client.
Charles L. Ratneris the national director of personal insurance counseling at Ernst & Young, LLP, Cleveland.
33/ FIDUCIARY PROFESSIONS:
Situs Shopping
By Douglas Moore
The last few years have seen more clients consider jurisdictions other than their residences or domicile for trusts and closely held business entities. As a wealth advisor, help identify states that provide greater protection or flexibility for grantors, beneficiaries or fiduciaries.
Douglas Mooreis a managing director in the New York office of U.S. Trust Family Office.
36/ THE INTERNATIONAL PRACTICE:
Is 2009 the Year That Bank Secrecy Died?
By Barbara R. Hauser
The big news for last year in global wealth management: disclosure, transparency, information exchanges, and perhaps the end to bank secrecy. The United States’ efforts to find money around the world, force disclosure and reap unpaid tax revenues has strained relations with other countries. But the United States is far from alone.
Barbara R. Hauseris a an independent global family advisor based in Washington.
42/ ASSET PROTECTION:
Don’t Be Foolish
By Gideon Rothschild
Good asset protection complies with all laws—and merely takes advantage of a jurisdiction’s statutes to minimize clients’ exposure to future creditors or predators. But too often clients seek asset protection after the horse is out of the barn. Don’t let that happen to your clients.
Gideon Rothschildis a partner in the New York law firm of Moses & Singer LLP, where he co-chairs the Trusts and Estates and Wealth Preservation Group.
45/ HIGH-NET-WORTH FAMILIES:
Revising the Conversation About Risk and Risk Taking
By Anna Nichols
There’s a silver lining in the recent market meltdown for wealthy families: Future generations’ wealth may be safer because families and advisors of today learn new ways to communicate about and manage risk.
Anna Nichols is the director of research at the Family Office Exchange in Chicago.
50/ ELDER LAW:
Long-term Care Is Critical
By Bernard A. Krooks & Michael Gilfix
Long-term nursing care costs are staggering. Yet Congress’ proposed health care reforms have only modest plans to address long-term care. So older Americans will likely still have to rely on Medicaid or drain their families’ coffers.
Bernard A. Krooks is a partner in the New York City,White Plains, and Fishkill, New York firm of Littman Krooks LLP.
Michael Gilfix is a partner in the Palo Alto, Calif. firm of Gilfix & La Poll Associates LLP.
Feature
Fiduciary Professions
54/ Which Situs Is Best?
By Daniel G. Worthington & Mark Merric
There’s a new competitiveness to be considered the “best” jurisdiction for trusts and thus win the most trust business. Clients benefit: If they select the right jurisdiction for their trusts, they may be able to transfer wealth for generations, even perpetually, without paying additional state and federal transfer taxes. Find out which jurisdictions these authors rank among the best—and why.
Daniel G. Worthingtonis CEO and managing member at Worthington Everidge Group, LLC and Family Office USA, LLC, in Orlando, Fla.
Mark Merricis manager of the Merric law Firm, LLC, and a manager of the Alliance of International Legal Counselors, LLC, both in Denver.
