Quick and Easy E-mail Newsletter



| DECEMBER 2017 NEWSLETTER |

| |

| |

|POZZUOLO RODDEN, P.C. |

|COUNSELORS AT LAW |

|THE BYE-BENSON HOUSE |

|2033 WALNUT STREET, PHILADELPHIA, PA 19103 |

|215-977-8200 |

| |

|[pic] |

| |

|UTILIZING PRIVATE FOUNDATIONS AS AN ADVANCED ESTATE PLANNING TECHNIQUE |

| |

|FIRM ANNOUNCEMENTS: |

|A. AMERICAN INSTITUTE OF FAMILY LAW ATTORNEYS- 10 BEST LAW |

|FIRMS |

|1. Pozzuolo Rodden, P.C. is pleased to announce that the firm was selected for exclusive Membership as one of the “10 Best Family Law Firms” |

|for 2017 and 2018 in Pennsylvania by the American Institute of Family Law Attorneys for client satisfaction in the practice area of Family |

|Law. |

|The American Institute of Family Law Attorneys (AIOFLA) is an impartial third-party Attorney and Firm rating service and invitation only legal|

|organization recognizing excellence of practitioners in the field. This is a significant achievement as each Firm must: |

|*Be formally nominated by the Institute, clients, and/or a fellow Attorney; |

|*Have attained the highest degree of professional achievement in Family Law; and, |

|*Have an impeccable Client Satisfaction rating. |

| |

|2. Pozzuolo Rodden, P.C. is also pleased to announce that Joseph R. Pozzuolo, Esquire was selected by Philadelphia Life Magazine as a “Top |

|Attorney” for 2017. “The Best Legal Professionals” are selected by their legal peers. |

|B. BLOGS |

|1. The following are a few of the business, tax, employment, estate planning and business litigation blogs posted on our main website |

| during the past month: |

| |

|a. Legal Issues: Caring For Parents With Dementia; |

|b. How To Administer An Estate; |

|c. Estate Planning: Step Children And Your Will; and, |

| |

|d. Steps To Building A Business. |

| |

|Please visit our website for more information on these and other |

|relevant business, tax, estates and employment topics. |

| |

|2. The following are a few of the family law blogs posted on our family law website during the past month: |

| |

|a. Surviving Spouse Is Required To Obtain Consent Of The Personal Representative Of Deceased Spouse To Withdraw Divorce Action; |

| |

|b. The Presumption Is In Favor Of Father In Best Interest Of Child Analysis In Grandmother’s Child Custody Petition; |

| |

|c. Limited Partnership Interest Not Included In Equitable Distribution Because Partner’s Interest Was Terminated If that Person Divorced; |

|and, |

| |

|d. Repeated Flagrant & Ongoing Contempt Of Child Custody Orders Requires Sanctions |

| |

|Please visit our website for more information on these |

|and other relevant family law topics. |

| |

|Please visit our Facebook page to read all of our past and future blogs: Pozzuolo Rodden, PC |

| |

| |

|C. EDUCATIONAL SEMINARS ON YOU TUBE AND WEBSITE: |

| |

|Pozzuolo Rodden, P.C. is pleased to announce you can view the following seminars taught by Joseph R. Pozzuolo and/or Jeffrey S. Pozzuolo at |

|“Pozzuolo Rodden, P.C.- You Tube” |

|*The Negotiation and Documentation of Commercial Real Estate Loan Documents |

|*The Fundamentals of Starting a Business |

|*How Middle Income Families Should Plan for Retirement |

| |

| |

|UTILIZING PRIVATE FOUNDATIONS AS AN ADVANCED ESTATE PLANNING TECHNIQUE |

|There are many tools, techniques and plans that can be utilized to personalize your estate plan. Many individuals approach estate planning |

|with the sole objective of reducing their overall tax liability. There are other individuals who consider charitable giving during their |

|estate planning. Setting up a private foundation can help with both these goals. Private foundations can allow for you to make a meaningful |

|philanthropic impact of creating a charitable legacy that supports causes that are important to you and your family. By definition, a private |

|foundation is a non-government, non-profit organization established either during life as a corporation or trust or at death by |

|incorporating the nonprofit organization into and as part of your estate planning documents. Their creation allows you the ability to create a|

|formal philanthropic legacy for your interests, control the funding, investments, timing and use of your charitable funds, make an impactful |

|and lasting change in society, give back to organizations that may have helped you and your interests such as schools, colleges and |

|universities, hospitals, medical research organizations, churches and religious organizations, museums, and certain social service |

|organizations, encourage others to give back, and even teach your family how to financially manage wealth more effectively. |

|Private foundations offer a much more fulfilling experience than simply writing a check to charity. Foundations can donate or make grants to |

|national or international charities, hospitals or medical research organizations award scholarships at schools or universities, and can |

|involve other family and friends in the management of the foundation. Private foundations are created with charitable intent but also have |

|beneficial income, gift and estate tax benefits that flow from being a qualifying charitable organization. With only a required distribution |

|of 5% of assets and income per year, this can allow for long term investments and the benefits of continuity and consistency. The private |

|foundation structure can ensure that the founder’s charitable vision will live on, well past the founder’s lifespan. |

|For those who are already engaged in charitable giving, it may be best to set up the foundation during life. Setting up the foundation during |

|life allows for training for those who will manage the foundation later after death. It allows for the ability to designate the philanthropic |

|goals and functions much like a family business. Different generations including children and grandchildren can work together towards a common|

|goal and learn the important skill of wealth management and philanthropy. Creating the foundation during life also allows for relocation of |

|support if there is a change of focus to something more meaningful to the Trustees or Board of Directors of the foundation. However, a well |

|planned estate plan may allow for the creation of a private foundation at death. Trusted individuals will be designated to manage the |

|foundation after your death and you won’t need to make the commitment of arranging for the foundation now. |

|When it comes to funding a private foundation, some assets are better suited than others. Assets that are characterized as income in respect |

|of a decedent will give rise to income tax liability and are better suited as charitable contributions. For example, distributing a pension, |

|deferred compensation, or IRA to a private foundation at death is more tax-efficient. The full market value of the pension, deferred |

|compensation, or IRA is included in the taxable estate of the taxpayer/owner when left to an individual beneficiary. Additionally any |

|withdrawals of funds by a beneficiary are reported as income and thus taxed a second time. This double taxation, estate and income taxes, |

|could substantially diminish the inheritance of up to 85%. A private foundation, however, pays no income or estate tax and therefore 100% or |

|the full value of the pension, deferred compensation, or IRA is kept intact. |

|During life contributing cash to a foundation is deductible up to 30% of the adjusted gross income. Gifts of appreciated, publically-traded |

|stock to a private foundation enables you to obtain a full fair market value income tax charitable deduction without reducing the amount that |

|can be used by the foundation by the capital gains tax payable. Gifts of appreciated property to a private foundation, such as stock and real |

|estate, are deductible up to 20% of adjusted gross income and the donor is entitled to a 5-year carryover in excess of the percentage |

|limitations following the year of contribution. In contrast, if you transfer appreciated stock or real property to an individual during your |

|life, the recipient of your gift pays a much higher capital gains tax on the sale of the appreciated property. Additionally, contributions |

|given to a foundation do not affect the $14,000 annual gift tax exclusion or the current $5.45 million federal estate and gift tax exemption. |

|There are other tangible assets that should be considered to be donated to a foundation. For example, if your foundation is dedicated to |

|supporting fine arts, you might want to donate your collection of paintings rather than having it sold and dispersed. If your foundation is |

|engaged in promoting the development of new techniques for sustainable farming and you own farm land, you might want to donate that land to |

|your private foundation. In other words, planning with an experienced tax advisor is mandatory to determine which assets to use to fund a |

|private foundation to avoid any potential pitfalls. |

|With the proper guidance and estate planning, a private foundation can be a very important tool and technique in your personal wealth and/or |

|philanthropic planning. If you have charitable intentions now or in the future, creating a private foundation will provide you with not only |

|income and estate tax benefits, but also with many intangible benefits. These include wealth management opportunities, family engagement in |

|philanthropic matters, and the ability to work on long-term, public good, charitable projects to carry out your or your family’ charitable |

|intentions. You can create a lasting legacy. These unique benefits are not afforded to you by simply making an outright charitable gift to |

|public charities. |

| |

|An experienced estate planning attorney at Pozzuolo Rodden, P.C. can help you to assess your personal wealth and goals to determine whether a |

|private foundation is a technique to preserve your wealth, your family’s charitable legacy and your control of the timing and use of your |

|charitable funds. |

|__________________________________________________________________________________ |

| |

|If there are any legal questions you would like this office to answer in the future, please email the question to us at info@. |

|Each month, the question with the most relevance to our privately held business clients, advisors, and friends will be answered in our monthly|

|newsletter. The questions can relate to any of the areas practiced by this office including business planning and transactions, corporate |

|law, commercial litigation, employment law and litigation, commercial real estate and development, construction law and litigation, estate |

|planning, estate administration, tax and pension law, family law litigation. |

|PUBLICATIONS |

|All of the following professional publications and past newsletters written by attorneys of this office are available by clicking here: |

| Articles.shtml |

|Corporate/Tax Articles |

|Bankruptcy - How To Prevent It And How To Cope With It Should It Happen To Your Business |

|Deferred Compensation Rewards And Retains Key Employees |

|Design Buy-Sell Agreements For Maximum Utility |

|How An S Corporation Avoids The Double Taxation Incurred When Excessive Compensation Is Treated As A Dividend |

|How Mortgage Lenders Should Draft Broker Agreements To Avoid RESPA Violations |

|How To Look, Act And Sound Like A Professional Corporation |

|How to Structure a Suitable Buy-Sell Agreement |

|How To Use Non-Qualified Deferred Compensation Arrangements As A Business, Retirement And Tax Planning Tool |

|Money Purchase Pension Plan Falls Out Of Favor |

|Protecting A Client's Business From Unfair Competition Using Restrictive Covenants |

|Structuring Loans From Qualified Plans - How To Handle The Strict Tax Rules |

|What Type of Qualified Corporate Retirement Plan Best Serves Your Business, Tax And Retirement Needs |

|Why An Employment Contract Is Mandatory |

|Estate Planning Articles |

|Adapt Estate Planning Strategies to Fit the Needs of Same-Sex Couples |

|College Funding Tool Offers Estate Planning Advantage |

| |

|Diversify Strategies For An Effective Estate Plan |

|Divorce and Estate Planning |

|Divorce Raises The Need For Performing An Estate Planning Review |

|Drafting The Durable Power Of Attorney For Wealth Protection Purposes |

| |

|Estate Planning For Pet Owners |

|Remarriage Situations Can Raise Special Estate Planning Considerations |

|Six Proven Estate Planning Techniques |

|Special Needs Trust - An Estate Planning Tool For The Disabled |

|The Limited Liability Company -A Sophisticated Tool For Estate Planning |

|Using Trusts To Maximize Family Protection And Minimize Estate Tax |

|Why Living Wills- Advance Directives Are An Essential Part Of Estate Planning |

| |

| |

|Actual resolution of legal issues depends upon many factors, including variations of facts and state laws. This newsletter is not intended to |

|provide legal advice on specific subjects. It is to provide insight into legal developments and issues. You should always consult with legal |

|counsel before taking any action on matters covered in our updates. |

| |

|This newsletter is courtesy of Pozzuolo Rodden, P.C. |

|To subscribe, unsubscribe, or for any questions, please contact us at info@. |

| |

| |

| |

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download