Updates and Articles
Here is where you will find information about recent law changes that may affect your estate, tax, or business plan, as well as articles of general interest written by the attorneys in our firm. Please check back periodically as this page will be updated regularly. If you have any questions about any of the information contained on this page, please contact us.
Updates
Gift Tax Annual Exclusion Increased for 2006
IRS raises gift tax annual exclusion to $12,000 for 2006. Please contact us to discuss how this change affects your estate planning efforts.
Married Couples May Choose to Have Wholly Owned LLC Taxed As a Disregarded Entity
Under IRS Revenue Procedure 2002-69, a married couple who own 100% of the membership interests in a limited liability company as community property may choose whether their LLC will be treated as a partnership or as a disregarded entity for federal and state tax purposes. Previously, such an LLC was required to be treated as a partnership. If you have an LLC that is wholly owned by yourself and your spouse which is taxed as a partnership, please contact us to discuss whether it would be beneficial to change the entity's tax status.
Disclaimer Trust Reminder
Many of our married clients have trusts which contain disclaimer provisions as the mechanism for funding the Marital and Credit Trust portions of their trust at the first death. To ensure that the surviving spouse is able to benefit from this planning opportunity, the surviving spouse is strongly advised to seek counsel from a qualified estate planning attorney as soon as possible after the other spouse's death. Failure of the surviving spouse to disclaim assets within nine months of the first death, or the use or receipt of benefits from the assets to be disclaimed by the surviving spouse, will terminate the survivor's ability to disclaim. In that event, the surviving spouse will lose the opportunity to take advantage of the possible tax benefits of a qualified disclaimer. Please contact us if you have any questions about this important planning technique.
Articles
Rayndon's Rules
Like many successful entrepreneurs, Darra Rayndon has her own set of “rules” when it comes to advising her clients about business. Here’s her list. Consider it free legal advice.
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Private Offerings: A Summary of Regulation D
In almost every instance, the sale of common stock, preferred stock, debentures, or limited liability company interests involves the sale of securities. The significance of an interest being deemed a security is that comprehensive federal and state regulatory provisions become applicable to the offer and sale of the security unless exemptions from the registration requirements of applicable laws are available.
Converting Corporations to LLCs for Enhanced Asset Protection
Clients currently holding investments and business interests in corporate entities should consider converting those corporations to limited liability companies due to the the superior ability of an LLC to protect its member's assets and its flexibility of administration.
Counting Purchasers in a Private Offering
Exemption Rules 505 and 506 of Regulation D place no limitation on the number of persons to which an issuer may offer securities. Offers to significant number of persons, however, may be deemed a prohibited general solicitation. The Rules do restrict the number of purchasers to which the securities may be sold. The Rules allow an issuer to offer and sell its securities to an unlimited number of accredited investors and to 35 non-accredited investors. Rule 506 further requires non-accredited investors to be
Arizona Advanced Directive Registry
To further assure that one’s end-of-life wishes are properly expressed, the Arizona Secretary of State’s Office has created an Advanced Directive (i.e., health care power of attorney and living will) Registry. This Registry provides Arizona residents with the opportunity to store a copy of their health care powers of attorney and living wills in a central depository. The records of the Registry are only available to the person to whom the documents belong and medical doctors. Registering one's living will and health care power of attorney in this manner helps to assure that these crucial documents can be found and honored in the event of a health care crisis.
End of Life Estate Planning and Legal Issues
There are a number of legal issues that one should keep in mind when facing end-of-life planning issues. This article discusses some of the areas where we see many people making mistakes, misunderstanding the law, and taking actions that are either unnecessary or are improper.
