Tax

The Importance Of International Tax And Estate Planning.
By: Avi Z. Kestenbaum and Eli Akhavan
The current global economic environment demands that legal, accounting and financial professionals be well versed in international tax and estate planning. Sound planning and creative structuring will potentially save clients millions in tax dollars and significant reporting obligations, as well as help clients avoid serious criminal consequences.

Roth IRAs and Real Estate Investments
By:Richard Reichler
The "Roth IRA" is a form of long-term, tax-free investment that may be well-suited to those who believe that real estate assets are now priced for future appreciation.

Structuring Workout Transactions
By:Richard Reichler
Workout transactions involve complex tax rules that require careful tax planning to reduce additional cash outlays and avoid costly liabilities.
© 2010 Thomson Reuters/RIA. All rights reserved

Freeze Partnerships--An Alternative to the Installment Sale to a Grantor Trust
By:Laura Blasberg
As most high net worth individuals are aware, the federal estate tax will be reinstated as of 1/1/11. One common way in which a person can minimize their estate is the replace appreciating assets with assets that will not appreciate, freezing the value of asset in the individual's estate.
(Real Estate Taxation, Volume 37/Issue 4, Copyright © 2010 Thomson/RIA)

IRS Looks Closely at Tax Issues of Closely Held Businesses
By: Jeffrey A. Galant and Dana L. Marks
Owners of closely held corporations should maintain detailed documentation when structuring transactions with their businesses to achieve favorable tax treatment.

Carried Interest Bill — Impact on Real Estate Partnerships
By: Stephen M. Breitstone, Esq.
This article discusses the practical impact of carried interest legislation on real estate partnerships if enacted in the form currently proposed. This legislation would do far more than deny capital gains rates to service providers; it would also change fundamental deal dynamics and structuring for real estate partnerships.

Carried Interest Bill - A 'Death Trap' for Real Estate Partnerships.
By: Stephen M. Breitstone, Esq.
Recently proposed carried interest legislation contained in HR 1935, which was initially intended to target certain compensatory arrangements used by managers of private equity funds, hedge funds, and other types of investment funds, would be a real game changer for estate planning for the real estate entrepreneur.

"Madoff Victims Who Paid Taxes On Scheme Seek Refunds"
By: Stephen M. Breitstone, Esq. and José Berra, Esq.
The typical Madoff investor who was victimized by the alleged Ponzi scheme has paid taxes over the years (sometimes many years) on income it now seems never existed.

"Tax Perils for Benficiaries of Q TIP Trusts"
By: Stephen M. Breitstone and Rachel Jesselson
A QTIP trust is frequently used to protect children from being disinherited by a surviving spouse beneficiary.

"Federal Estate Tax Repeal Could Bankrupt Land Owner's Estates and Heirs"
By: Stephen M. Breitstone
Stephen M. Breitstone, head of Meltzer Lippe's Tax Law Group, discusses the Estate Tax Repeal Legislation.

"IRS Expands Tax-Free Exchanges of Real Estate"
By: Stephen M. Breitstone
Stephen M. Breitstone heads the Tax Group. A look into the tax-free like-kind exchange treatment under section 1031.

Section 1031 "like-kind" exchanges - Use of Tenants in Common to "Pool" Capital and to Create Liquidity
By: Stephen M. Breitstone
When the IRS issued Rev. Proc. 2002-22, 2002-1 CB 733, it provided a degree of guidance as to when a tenants in common arrangement ("TIC") would not be treated as a partnership for Federal income tax purposes. This guidance has greatly expanded the utility of IRC section 1031, which provides for non-recognition of gain on exchanges of property of a "like kind" held for use in a trade, business or investment. It has greatly enhanced the utility of section 1031 since TICs can qualify for non-recognition of gain while partnership interests cannot.

Tax Exempt Organizations

Know the Differences - Why All Charitable Contribution Deductions Are Not Equal.
By: Avi Z. Kestenbaum.

Numerous Pension Act Changes Affect Charitable And Estate Planning.
By: Avi Z. Kestenbaum
Charitable organizations and their donors need to cope with a variety of provisions in the Pension Protection Act and a few changes can actually produce tax savings.

"Proposed Revisions to the Uniform Management of Institutional Funds Act"
By: Avi Z. Kestenbaum
Specialists in the charitable planning and nonprofit fields should be aware that proposed revisions to UMIFA, which are expected to be enacted in 2005, will have a significant impact on the management and spending of charitable funds.

"Duties and Liabilities of Nonprofit Directors and Officers"
By: Avi Z. Kestenbaum
Recent developments have increased the duties and obligations of nonprofit corporation boards of directors and officers and may have increased their liabilities as well. This article focuses on some of the developments, provides insight into understanding the duties and obligations of nonprofit directors and officers, and offers guidance on affirmative steps to minimize the liability of these individuals.

"The New Age of Corporate Goverance for NonProfit Organizations"
By: Avi Z. Kestenbaum
With the abundance of corporate governance scandals and abuses in recent years, and the remedial measures and penalties imposed by the legislature and judiciary at both the federal and state levels to address them, the nonprofit sectors are experiencing a new age of corporate governance.

Business

"Beware of Ideas"
By: Loretta Gastwirth
Loretta Gastwirth is a member of Meltzer Lippe's Litigation Group. She discusses why even listening to a new idea bespeaks great caution to any business owner lest he/she be accused of misappropriation.

Corporate

Accredited Investor Today Not Tomorrow
By:Gisella Rivera
Individual investors can no longer include the value of their primary residence when calculating their net worth for purposes of determining whether they are eligible as "accredited investors," to purchase unregistered and unlisted securities.

A New Networking Opportunity for Chief Financial Officers
Ira Halperin
Chief Financial Officers generally face unique issues and experience relative isolation from others in their firms. Partner Ira Halperin who co-chairs the CFO and Financial Executive Committee of the New York State Society of CPA's has worked to reinvent the committee as a roundtable discussion group which meets monthly at Meltzer Lippe’s Mineola office.

Directors Beware: It Could Happen to You!
By: Ira Halperin
A March 2008 ruling by the Delaware Chancery Court in Schoon v. Troy Corp. should prompt Delaware Corporations to review their bylaws to ensure the indemnification and advancement provisions are clear on when rights of directors vest, what rights are afforded to current and former directors, and if and when such rights can be removed.

"Major Changes To Rule 144 – Small Businesses, Rejoice!"
By: Corporate Practice Group
On November 15, 2007, the Securities and Exchange Commission (SEC) voted unanimously to adopt several rule amendments designed primarily to enable smaller companies to raise capital more effectively and ease some of the historically burdensome reporting and disclosure requirements.

"Internal Control Guidance For Small Companies"
By: Ira Halperin, Partner and Patti Piccininni, Intern
On July 30, 2002, President Bush signed into law the Sarbanes Oxley Act of 2002 ("SOX"). Rule 404 of SOX requires public companies to annually provide investors with an assessment of the quality of their internal control over financial reporting. Accelerated filers, typically large public companies, were required to comply with the requirements of Rule 404 for its first fiscal year ending on or after November 15, 2004. Smaller public companies, as non-accelerated filers, are required to comply with the requirements in their first fiscal year ending on or after July 15, 2007.

Employment

The Past Two Years Has Shown A Significant Increase In Costly Wage/ Hour Litigation
By: Peter A. Schneider
The concepts of minimum wage and time and one half appear straightforward, yet for an increasing number of employers, particularly those in the food industry, the past two years has shown a significant increase in costly wage/ hour litigation. All indicators point to a continuation, if not escalation, of this trend for a number of reasons.

U.S. Department Of Labor Targets The Food Industry For Enforcement Of The Fair Labor Standards Act
By: Peter A. Schneider
The plaintiff’s bar and the U.S. Department of Labor (DOL) are targeting the food industry for enforcement of the Fair Labor Standards Act (FLSA). It is important that businesses in the food service industry understand their requirements under the FLSA or risk facing litigation and the the associated costs and penalties.

"Employers: Don't Blow Your Employee's Covenant Not to Compete!"
By: Loretta M. Gastwirth
Loretta Gastwirth, member of Meltzer Lippe's Litigation Department, reviews the complexity surrounding employment contracts.

Investment Funds

Exemptions from Registration Under the Advisers Act.
By: Gisella Rivera
Pursuant to final rules adopted by the Securities and Exchange Commission effective July 21, 2011, family offices, foreign private advisers and investment advisers to venture capital funds and to private funds with assets under management of less than $150 million are exempt from registration under the Investment Advisers Act of 1940, as amended (the “"visers Act").

Through the Looking Glass (Inside the World of Private Funds)
By:Gisella Rivera
This article presents how recent regulatory initiatives benefit investors in private funds. Private fund industry participants, particularly compliance officers of private fund advisers, closely monitor proposed regulations to determine how such proposals affect the business and operations of private fund advisers.

Accredited Investor Today Not Tomorrow
By:Gisella Rivera
Individual investors can no longer include the value of their primary residence when calculating their net worth for purposes of determining whether they are eligible as "accredited investors," to purchase unregistered and unlisted securities.

"Beware of Ideas"
By: Loretta Gastwirth
Loretta Gastwirth is a member of Meltzer Lippe's Litigation Group. She discusses why even listening to a new idea bespeaks great caution to any business owner lest he/she be accused of misappropriation.

Real Estate

Roth IRAs and Real Estate Investments
By:Richard Reichler
The "Roth IRA" is a form of long-term, tax-free investment that may be well-suited to those who believe that real estate assets are now priced for future appreciation.

Freeze Partnerships--An Alternative to the Installment Sale to a Grantor Trust
By:Laura Blasberg
As most high net worth individuals are aware, the federal estate tax will be reinstated as of 1/1/11. One common way in which a person can minimize their estate is the replace appreciating assets with assets that will not appreciate, freezing the value of asset in the individual's estate.
(Real Estate Taxation, Volume 37/Issue 4, Copyright © 2010 Thomson/RIA)

"Popular Estate Planning Techniques Can Cause Income Tax Horrors For Real Estate Owners"
By: Stephen M. Breitstone
Stephen M. Breitstone, head of Meltzer Lippe's Tax Group, discusses the income tax pitfalls that can result from the use of popular estate planning techniques. He also describes a technique that can be used to avoid those pitfalls, known as the preferred partnership freeze.

"IRS Expands Tax-Free Exchanges of Real Estate"
By: Stephen M. Breitstone
Stephen M. Breitstone heads the Tax Group. A look into the tax-free like-kind exchange treatment under section 1031.

Technology

Social Media Advertising and Consideration of New York Privacy Laws.
By: Pedram Tabibi
The social media rise through websites including Facebook and Twitter and the increased use of electronic communication has dramatically shifted advertising to the Internet.

Before you purchase customized software, make sure you’re protected.
By: Paul Rubell
Every company wants to grow, but expansion presents complexity and challenges, and requires more sophisticated computer systems. Custom-built software may be the right choice and it is essential that you and your company are protected.

"Preventing Inevitable Disclosure of Internet Company Trade Secrets"
By: Loretta Gastwirth
Long Island Business News
Friday, November 24, 2000
Loretta Gastwirth, a member of Meltzer Lippe's Litigation Group discusses the developing body of law known as the "inevitable disclosure" doctrine.

Trusts & Estates

The Quarterback Dilemma
By: Avi Z. Kestenbaum
Understanding, communicating and coordinating the roles and responsibilities of the estate-planning team can help prevent important items from falling through the cracks.

Reckoning With New York's Marital Right of Election.
By: Stephen M. Breitstone and Avi Z. Kestenbaum
Throughout history, many cultures have imposed restrictions on the right of an individual to freely bequeath assets. The historical basis of forced heirship was to require land to pass down to one's issue—frequently giving priority in distributions to the eldest son. Today, most U.S. jurisdictions permit one to freely disinherit their descendents.

Basic Principles of Estate Planning Within the Context of Jewish Law.
By: Eli Akhavan
The following article familiarizes attorneys with the basic principles of Jewish inheritance law and provides them with an overview of the techniques that can be employed to resolve potential disparities among three competing influences: (1) religious law, (2) testator intent, and (3) secular law.

The State of Estate Planning.
By: Avi Z. Kestenbaum, Jeffrey A. Galant & Eli Akhavan
How the new law influences the way we practice now and in the future
On Dec. 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (the Act). The Act significantly impacts the estate planning that advisors will recommend to their clients, as well as the way planners will practice now and in the future.

The Importance Of International Tax And Estate Planning.
By: Avi Z. Kestenbaum and Eli Akhavan
The current global economic environment demands that legal, accounting and financial professionals be well versed in international tax and estate planning. Sound planning and creative structuring will potentially save clients millions in tax dollars and significant reporting obligations, as well as help clients avoid serious criminal consequences.

Steve Leimberg's Estate Planning Email Newsletter, December 14, 2010 featuring "The Beneficiary's Defective Inheritor's Trust: Is it Really Defective"
By: Avi Z. Kestenbaum; Jeffrey Galant; Eli Akhavan
In a previous newsletter we informed members how to create a trust that remains a section 678 trust, even after the power to withdraw all property from the trust lapses. By contrast, Avi Kestenbaum believes that it would be difficult if not impossible to create a comprehensive estate plan utilizing a BDIT in most circumstances.

Freeze Partnerships--An Alternative to the Installment Sale to a Grantor Trust
By:Laura Blasberg
As most high net worth individuals are aware, the federal estate tax will be reinstated as of 1/1/11. One common way in which a person can minimize their estate is the replace appreciating assets with assets that will not appreciate, freezing the value of asset in the individual's estate.
(Real Estate Taxation, Volume 37/Issue 4, Copyright © 2010 Thomson/RIA)

Steve Leimberg's Estate Planning Email Newsletter, May 10, 2010
featuring "A Practitioner's Risk Assessment Checklist"
By: Avi Z. Kestenbaum
Tax planning professionals should all consider creating and using a risk assessment checklist at the outset of each estate plan to help us determine which planning techniques, if any, to recommend and then monitor that checklist throughout the planning process.

Risk Assessment: Do it at the outset of all estate planning.
By: Avi Z. Kestenbaum
Estate planning professionals all too often recommend techniques and strategies without doing risk assessment. Partner Avi Z. Kestenbaum suggests using a risk assessment checklist at the outset of estate planning to help determine which planning techniques to recommend and then monitor that checklist throughout the planning process.

It's Personal.
By: Avi Z. Kestenbaum and Rachel D. Mansdorf.
The best estate planning takes into account clients’ intimate individual and family matters. Article is published in Trusts & Estates and on www.TrustsandEstates.com.

True Counselor
By: Avi Z. Kestenbaum and Rachel D. Mansdorf
The important role Trusts & Estates attorneys have as family counselors is the topic of this New York Law Journal article.

"Why Have A Will"
By: Irwin Scherago
Irwin Scherago, member of Meltzer Lippe's Estate and Trusts Group, discusses the reasons for creating a will.

"Popular Estate Planning Techniques Can Cause Income Tax Horrors For Real Estate Owners"
By: Stephen M. Breitstone
Stephen M. Breitstone, head of Meltzer Lippe's Tax Group, discusses the income tax pitfalls that can result from the use of popular estate planning techniques. He also describes a technique that can be used to avoid those pitfalls, known as the preferred partnership freeze.

"Financial Survival For The Families Of The Missing Victims Of The World Trade Center/Pentagon Tragedies"
By: Irwin Scherago
Irwin Scherago, member of Meltzer Lippe's Estate and Trusts Group, discusses, in layman's terms, the financial survival for the families of the missing victims of the World Trade Center/Pentagon Tragedies.

"Declaration of Death of a Missing Person: Obtaining Preliminary Letters Testamentary While Waiting for Declaration"
By: Irwin Scherago
Irwin Scherago, member of Meltzer Lippe's Estate and Trusts Group, discusses the legalities of financial survival for the families of the missing victims of the World Trade Center/Pentagon Tragedies.

"Prop. Regs. Reduce Many Required Minimum Distributions"
By: Howard Esterces
Howard Esterces, a member of Meltzer Lippe's Estate and Trusts Group, discusses that those who have already begun receiving required minimum distributions from IRAs and qualified plans may be able to reduce their annual withdrawals—thereby increasing their tax deferral.

"Faulty IRA Beneficiary Designations Explode Estate Plans"
By: Irwin Scherago and Howard Esterces
Irwin Scherago and Howard Esterces are members of Meltzer Lippe's Estate and Trusts Group. Given the size of the retirement plans in individual estates, careful planning of beneficiary designations is essential to assure that the wishes of the IRA owner or the plan participant are carried out and that whole classes of beneficiaries are not unintentionally omitted from sharing in the retirement plan benefits.

"Estate Planning for Marriages (First, Second and Terminating) and for Unmarried Live Togethers"
By: Irwin Scherago
Irwin Scherago, a member of Meltzer Lippe's Estate and Trusts Group, discusses laws of inheritance for non-traditional relationships.

"Preserving the Capital Base Mitigating the Estate Tax Mordida"
By: Irwin Scherago
Irwin Scherago, a member of Meltzer Lippe's Estate and Trusts Group, discusses protecting your capital.

"Paying Estate and Gift Taxes at a Discount"
By: Irwin Scherago
Irwin Scherago, a member of Meltzer Lippe's Estate and Trusts Group, discusses negotiating the stated rate for estate or gift taxes.

"SCINs Are Still Useful Tools Despite Recent Decision"
By: Howard Esterces
Howard Esterces is a member of Meltzer Lippe's Estate and Trusts Group. He examines SCINs and compares them to similar estate planning devices.

"Rights of Surviving Spouses To Pension Benefits"
By: Howard Esterces
Howard Esterces, a member of Meltzer Lippe's Estate and Trusts Group, discusses compensation and benefits.

"Use Disclaimers to add flexibility and hindsight to estate plans"
By: Avi Z. Kestenbaum
The disclaimer can be a helpful tax and estate planning tool if used correctly. Often, the disclaimer is employed as a postmortem remedial device to fend off adverse tax repercussions and other unintended consequences of an estate plan gone awry. Other times, the anticipated use of the disclaimer is consciously incorporated into the estate plan by its drafter to preserve tax and distributive flexibility at the decedent’s death. Although, this article focuses on the application of the disclaimer in the estate tax context, significant non-tax objectives may also justify its use.

"Year Round Gift Giving to Families and Charities"
By: Irwin Scherago
Irwin Scherago is a member of Meltzer Lippe's Estate and Trusts Group. He discusses how to properly plan your gift giving program to your family and to charitable organizations.