No Regrets for These Former Owners

Mike1We bring you another excellent article written by Denis M. Brown from Pace Capital Resources, LLC.  It is from The Exit Planning Review newsletter, issue 281, dated May 20, 2014.  No Regrets for These Former Owners

Sincerely,

Mike

 

For more information regarding this or any other business planning concern, please visit the Hoffman & Associates website at www.hoffmanestatelaw.com, call us at 404-255-7400 or send us an email.

In accordance with IRS Circular 230, this article is not to be considered a “covered opinion” or other written tax advice and should not be relied upon for IRS audit, tax dispute, or any other purpose. The information contained herein is provided “as is” for general guidance on matters of interest only. Hoffman & Associates, Attorneys-at-Law, LLC is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. Before making any decision or taking any action, you should consult a competent professional advisor.

Sopranos Star’s Will Creates Windfall for IRS

James Gandolfini, the actor best known for his years as Mob boss, Tony Soprano, on HBO’s The Sopranos, died of a massive heart attack at age 51 in June.  The actor’s unexpected death leaves estate planners wondering if Mr. Gandolfini had any legal advice when making his Last Will and Testament, as the largest stakeholder of his estate will be the U.S. Government.

Gandolfini’s Will leaves 80% of his estate to be split equally among his two sisters and his infant daughter.  The remaining 20% is payable to his wife. Though a formal inventory is not due to be filed in the New York Courts until later this year, most estimate Gandolfini’s estate to be worth approximately $70 million.  That sounds like everyone gets a nice piece of the pie, but the government gets first bite.  The New York and U.S. government’s combined share is up to 55%, meaning the IRS could get approximately $25 million.  While Gandolfini’s wife’s 20% share is not subject to such taxes, her portion is determined after taxes are paid, leaving her with about $9,000,000.

The IRS’ share is to be paid in cash, and it is due within 9 months of death.  Gandolfini, like many wealthy celebrities, has mostly illiquid assets.  So, his family will likely be forced to sell certain assets to meet this tax liability.

The lesson here is that tax planning could have saved the Gandolfini family millions.  Assets pass tax free to spouses, so there were ample planning opportunities for a marital trust.  Gandolfini could have taken advantage of gifting strategies during his lifetime to reduce the size of his taxable estate.  A Revocable Trust could have been created to avoid the public knowing these details of his estate plan.  And, the property left to his infant daughter could have been placed in trust so she does not receive her entire inheritance in one lump sum upon attaining age 21.

 Alas, we are only left to wonder if this estate plan meets Gandolfini’s wishes.  With such a disproportionate amount of his estate being distributed to the IRS versus his wife and two children, it leaves an unsettling feeling that he just didn’t get the right plan in place before his untimely death.

For more information regarding estate planning, please visit the Hoffman & Associates website at www.hoffmanestatelaw.com, call us at 404-255-7400 or send us an email.

In accordance with IRS Circular 230, this article is not to be considered a “covered opinion” or other written tax advice and should not be relied upon for IRS audit, tax dispute, or any other purpose. The information contained herein is provided “as is” for general guidance on matters of interest only. Hoffman & Associates, Attorneys-at-Law, LLC is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. Before making any decision or taking any action, you should consult a competent professional advisor.

AT&T Class Action Lawsuit – Are you entitled to recover money from AT&T?

If you had landline telephone service through AT&T between January 1, 2005 and January 14, 2013, you could be eligible for money through a Class Action lawsuit.

During the period between January 1, 2005 and January 14, 2013, AT&T billing statements included third-party charges that you may have incurred and paid, but did not authorize.  If this is the case, then you are eligible for money through a Class Action lawsuit.

If you do not have billing statements, we can help you request a copy of a billing summary to determine if you did in fact pay third-party charges, and are eligible to receive a reimbursement from the Class Action lawsuit.  The request must be submitted no later than December 2, 2013.

We can also assist you in filing a claim form to be included in the Class Action lawsuit.  The claim form must be submitted by December 2, 2013, unless you have filed a request for a billing summary.  If you have filed a request for a billing summary, then the claim form must be submitted within thirty (30) days after you receive the billing summary.

 

For more information on estate planning, general business, and tax law, please visit the Hoffman & Associates website at www.hoffmanestatelaw.com or call us at 404-255-7400.

In accordance with IRS Circular 230, this article is not to be considered a “covered opinion” or other written tax advice and should not be relied upon for IRS audit, tax dispute, or any other purpose. The information contained herein is provided “as is” for general guidance on matters of interest only. Hoffman & Associates, Attorneys-at-Law, LLC is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. Before making any decision or taking any action, you should consult a competent professional advisor.

Hoffman Family Office

Hoffman & Associates is now offering Hoffman Family Office (HFO) services to promote the investment, legacy, and personal success of wealthy individuals and their families. These new HFO services deliver accounting, bookkeeping, and consulting to help clients manage their complex financial lifestyle across generations.  What these services do not provide is investment advice.  Our menu of HFO services, alongside our traditional legal and tax services, provide clients with an understanding of: (1) their current financial situation, (2) how to preserve and protect their wealth, (3) how to support philanthropic organizations and the causes they desire, and (4) what assistance is needed in managing day-to-day financials.  Whether it is paying bills, reconciling checkbooks, measuring investment performance or shopping for insurance,  HFO services provide value that far exceeds cost.  HFO services include:

Accounting:

  • Financial statements
  • Bill payment
  • Cash flow management
  • Record keeping and retention
  • Bank statement reconciliation
  • Budget and payroll management

Investment & Insurance:

  • Investment review, measurement and reporting
  • Balance sheet and net worth management
  • Insurance needs definition and policy acquisition
  • Insurance shopping, evaluation and monitoring
  • Titling of assets
  • Beneficiary designation for insurance, annuities, IRAs, etc.
  • Medicare and Social Security planning and administration

Philanthropy:

  • Establishing of family goals and vision
  • Philanthropy advice and management
  • Investment and strategy alignment
  • Charity administration
  • Tax reporting
  • Establishing and oversight of family charitable foundations

Pricing:

  • Pricing will include both fixed monthly fees for accounting services  and hourly rates for investment & insurance and philanthropy services. Fixed monthly fees will start at several hundred dollars per month and will be adjusted depending on the number of checks written, the complexity of  management or any other special reporting requirements.

 

For more information on Hoffman Family Office services, please visit the Hoffman & Associates website at www.hoffmanestatelaw.com or call us at 404-255-7400.

In accordance with IRS Circular 230, this article is not to be considered a “covered opinion” or other written tax advice and should not be relied upon for IRS audit, tax dispute, or any other purpose. The information contained herein is provided “as is” for general guidance on matters of interest only. Hoffman & Associates, Attorneys-at-Law, LLC is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. Before making any decision or taking any action, you should consult a competent professional advisor.