The Estate Planner - Reuters



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|October 2011 | | |

|IN THIS ISSUE: | |The Estate Planner Archive |

| | | |

|News, Articles, and Updates for the Estate Planner | |Cowles Resources |

|See updates and article references involving charitable trusts and donations;| |Order Cowles and Supplies |

|elder law; estate and gift taxes; estate and trust administration--probate; | |Cowles Members Only |

|estate planning; generation-skipping transfer tax; health care; retirement; | |Westlaw |

|small and mid-size law firm practice; special needs trusts; guardianships; | | |

|trusts; and wills. | |Contact Us |

| | |E-Mail the Editor |

| | | |

|Cowles Tech Tip | |Other Resources |

|Version 2011-2 of Trust Plus gives you new options to work with client data. | |Other Reference Material |

|This Tech Tip discusses the new ability to import and export Client data. For| |Other Newsletters |

|example, the client importer can directly use .csv files created from | | |

|Microsoft Outlook, and vCards created from Apple Address Book, and Client | | |

|data in Trust Plus may be exported in a number of formats. | | |

|See all articles in this issue |

| |

| |

|NEWS, ARTICLES, AND UPDATES |

|For The Estate Planner |

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|Charitable Trusts and Donations |

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|OTHER |

|Massachusetts. Final Rules Issued for Conservation Land Tax Credit. The Massachusetts Executive Office of Energy and |

|Environmental Affairs issued final regulations establishing criteria and implementing conditions, limitations, and exclusions for|

|certification for the Massachusetts Conservation Land Tax Credit Program of donations of qualified real property to charitable |

|land conservation organizations. Starting in 2011, the commonwealth provides a credit equal to 50% of the fair market value of |

|the qualified donation not to exceed $50,000 to landowners who voluntarily donate qualifying conservation land. The Office noted|

|that landowners who donated property between January 1, 2011 and the effective date of the regulations are eligible to apply for |

|Pre-CLCC. Westlaw: 2011 WL 4541891 (October 3, 2011); Web: 301 CMR 14.00: Conservation Land Tax Credit, Massachusetts Executive |

|Office of Energy and Environmental Affairs |

|U.S. Tax Court. Court Rules on Donation of Conservation Easement. On October 3, the U.S. Tax Court concluded that Barry S. |

|Friedberg and his spouse were not entitled to a charitable contribution deduction for the donation of a façade easement of an |

|historic townhouse in Manhattan's Upper East Side Historic District to the National Architectural Trust because petitioners |

|failed to submit a qualified appraisal for the easement, and granted summary judgment to the government on that issue. However, |

|the court granted summary judgment to the couple on the issue of whether the conservation easement deed restricted Friedberg’s |

|use of unused development rights on the property. The couple had deducted $3,775,000 for the donation of the facade easement and |

|development rights on the property on their 2003 joint income tax return; in 2009, the Internal Revenue Service assessed a |

|deficiency of $1,321,250 and a penalty of $528,500, claiming that the appraisal report failed to meet the requirements of Treas. |

|Reg. § 1.170A-13(c)(3)(ii)(C),(H), (I), (J), and (K), Westlaw: Friedberg v. Commissioner, T.C., No. 9530-09, T.C. Memo. |

|2011-238, 2011 WL 4541723 (October 3, 2011); Web: Friedberg v. Commissioner, T.C., No. 9530-09, T.C. Memo. 2011-238 (October 3, |

|2011) |

|Congress. Senate Finance Committee Holds Hearing on Charitable Giving. On October 18, the U.S. Senate Committee on Finance held a|

|hearing examining tax reform options to encourage charitable giving in a fair and efficient manner. Under current law, taxpayers |

|can benefit from a charitable contribution deduction for donations to qualified 501(c)3 organizations if they itemize their tax |

|returns and deductions. However Senator Max Baucus (D-MT) stated in his remarks that the majority of Americans aren’t able to |

|receive a tax benefit from their charitable contributions since most taxpayers do not itemize, noting that less than one-third of|

|filers itemized last year. Westlaw: Baucus Announces Hearing on Charitable Giving, 2011 WL 4827381 (October 13, 2011); Web: Tax |

|Reform Options: Incentives for Charitable Giving, U.S. Senate Committee on Finance Hearings (October 18, 2011). |

|JCT. JCT Examines History and Present Law of Federal Tax Treatment of Charitable Contributions. On October 14, the Joint |

|Committee on Taxation issued a paper containing an overview of the current rules on federal tax treatment of charitable |

|contributions and a discussion of economic issues relating to federal tax incentives for charitable giving. The Present Law and |

|Background Relating to the Federal Tax Treatment of Charitable Contributions reports that the federal income tax charitable |

|deduction has been a feature of the income tax system since 1917 and estimates that charitable giving reached $290.89 billion in |

|2010, comprised of contributions by individuals of $211.77 billion, by foundations of $41.00 billion, by estates of $22.83 |

|billion, and by corporations of $15.29 billion. While not all charitable contributions are deductible for tax purposes, the |

|report noted that tax deductibility does encourage charitable giving by reducing the economic cost to the donor of his or her |

|donation and continues by examining the different economic rationales and effects of charitable tax deductions. Westlaw: |

|JCX-55-11, 2011 WL 5025220 (October 14, 2011); Web: JCX-55-11, The Joint Committee on Taxation (October 14, 2011). |

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|Elder Law |

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|ARTICLES |

|5 Common Elder Law Blunders. Monica Franklin. (Tennessee Bar Journal, October, 2011). Westlaw: 47-OCT Tenn. B.J. 28; Web: |

|Tennessee Bar Journal. |

|Colorado Advocates Push Mandatory Reporting Law for Elder Abuse. Sara Burnett. (Denver Post, October 24, 2011). Web: |

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|Elders in the Criminal Justice System. Mary E. WanderPolo. (NAELA Journal, Fall, 2011). Westlaw: 7 NAELA J. 219; Web: NAELA |

|Journal. |

|The Growing Problem of Elder Abuse. Bridget O'Brien Swartz,. (NAELA Journal, Fall, 2011). Westlaw: 7 NAELA J. 169; Web: NAELA |

|Journal. |

|An Overview of the U.S. Retirement Income Security System and the Principles and Values It Reflects. Kathryn L. Moore. |

|(Comparative Labor Law and Policy Journal, Fall 2011). Westlaw: 33 Comp. Lab. L. & Pol'y J 5. |

|Sentencing Elderly Criminal Offenders. Dawn Miller. (NAELA Journal, Fall, 2011). Westlaw: 7 NAELA J. 221; Web: NAELA Journal. |

|Study Finds Certified Guardians with Legal Work Experience Are at Greater Risk for Elder Abuse Than Certified Guardians with |

|Other Work Experience. Winsor C. Schmidt, Fevzi Akinci, and Sarah Magill. (NAELA Journal, Fall, 2011). Westlaw: 7 NAELA J. 171; |

|Web: NAELA Journal. |

| |

|LEGISLATION |

|California. Extension of Mandated Reporting of Financial Abuse of Elders and Dependent Adults. California has passed legislation |

|that to amend and repeal provisions related to elder and dependent adult abuse. The existing Elder Abuse and Dependent Adult |

|Civil Protection Act (which establishes procedures for the reporting, investigation, and prosecution of elder and dependent adult|

|abuse) include provisions which require mandated reporters (such as care custodians of elder or dependent adults and local law |

|enforcement agencies) to report suspected financial abuse. The failure to make such reports is subject to a civil penalty. The |

|legislation extends these provisions indefinitely (without a fixed date), which would have expire on January 1, 2013. The |

|legislation also incorporates additional changes in Section 15630.1 of the Welfare and Institutions Code, proposed by SB 718 |

|(relating to the means of reporting; enrolled version passed 9/1/2011), to be operative only if SB 718 and this bill are both |

|chaptered and become effective on or before January 1, 2012, and this bill is chaptered last. (2011 California Senate Bill No. |

|33, California 2011-2012 Regular Session; Title: Elder And Dependent Adult Abuse.; VERSION: Adopted; September 30, 2011). |

|Westlaw: 2011 CA S.B. 33 (NS); Web: California Legislature. |

|California. Elder Abuse; Identity Theft. California has passed legislation relating to identity theft provisions of the elder |

|abuse statute. The legislation provides that a caretaker of an elder or dependent adult, or a person who knows or reasonably |

|should know that the victim is an elder or dependent adult, who violates specified identity theft provisions with respect to the |

|victim's property or personal identifying information is subject to a fine not exceeding $2,500, or by imprisonment in the county|

|jail not exceeding one year, or by both that fine or imprisonment, or alternatively by a fine not exceeding $10,000, or by |

|imprisonment in a state prison for 2, 3, or 4 years, or by both that fine and imprisonment, if the value of the assets taken is |

|of a value exceeding $950. (2011 California Assembly Bill No. 332, California 2011-2012 Regular Session; Title: Elder Abuse.; |

|VERSION: Adopted; September 30, 2011). Westlaw: 2011 CA A.B. 332 (NS); Web: California Legislature. |

|California. Elder Abuse; Preserving of Defendant's Property For Restitution To Victim. California has passed legislation that |

|relating to elder abuse. The act strengthens existing criminal provisions regarding theft, embezzlement, forgery, fraud, or |

|identity theft against an elderly or dependent adult victim by authorizing the prosecuting agency, as defined, in conjunction |

|with a criminal proceeding alleging theft or embezzlement of property of an elder or dependant adult worth $100,000 or more to |

|file a petition with the superior court of the county in which the defendant has been charged with the underlying criminal |

|offense for preservation of property of the defendant for purposes of restitution to the victim. (2011 California Assembly Bill |

|No. 1293, California 2011-2012 Regular Session; Title: Elder Abuse: Theft Or Embezzlement: Restitution.; VERSION: Adopted; |

|September 30, 2011). Westlaw: 2011 CA A.B. 1293 (NS).Web: California Legislature. |

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|WEBINARS |

|Elder Care Planning for Snowbirds. Speakers: April D. Hill. (NBI, Inc (National Business Institute, Inc.), 11/11/2011 2:00 PM |

|EST). 1 Hours, 30 Minutes. West LegalEdcenter: Live Audio. |

|Tax Issues and the Elderly. Speakers: Peter Walsh. (Milwaukee Bar Association, 11/30/2011 1:30 PM EST). 1 Hours, 0 Minutes. West |

|LegalEdcenter: Live Video. |

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|Estate and Gift Taxes |

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|ARTICLES |

|Estate, Gift, and GST Taxes: What Actually Happened. (Practical Lawyer, October 2011). Westlaw: 57 No. 5 Prac. Law. 25. |

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|IRS DECISIONS, REGULATIONS, AND GUIDANCE |

|IRS. Guidance on Electing Portability of Deceased Spousal Unused Exclusion Amount. The IRS has released a notice with guidance |

|under IRC § 2010(c) on electing portability of a deceased spousal unused exclusion amount on a Form 706 (United States Estate |

|(and Generation-Skipping Transfer) Tax Return). The notice also announces that the Treasury Department and the Internal Revenue |

|Service intend to issue regulations to implement the provisions of section 2010(c) of the Code, and is inviting public comments. |

|(Released: September 29, 2011; Published: October 17, 2011). Westlaw: Notice 2011-82, 2011-42 I.R.B. 516; Web: IRS. |

|IRS. Tax Treatment of Property Acquired from a Decedent Dying in 2010.. The IRS released a Taxpayer Information Publication |

|regarding the tax treatment of property acquired from a decedent dying in 2010, including the election for the modified carryover|

|basis rules. The publication is designed to help executors and individuals who acquired property from a decedent dying in 2010, |

|for which the Section 1022 Election has been made, determine the tax treatment of the property acquired. Westlaw: Publication |

|4895 Tax Treatment of Property Acquired from a Decedent Dying in 2010 (IRS, IRS Pub. 4895, 2010 WL 7768873 (I.R.S. )Web: IRS. |

|IRS. Section 2056A - Qualified Domestic Trusts (Deductible v. Not Deductible). The IRS granted the U.S. Trustee a 120 day |

|extension to file Form 706-QDT, U.S. Estate Tax Return for Qualified Domestic Trusts, to notify the Service and certify that |

|decedent’s spouse, who had established and funded the QDOT under I.R.C. § 2056A with assets received from her deceased husband, |

|had become a U.S. citizen following her husband’s death, after the law firm for the estate failed to advise spouse that filing |

|the form was necessary. Westlaw: PLR 201140001, 2011 WL 4645565 (October 7, 2011); Web: PLR 201140001, IRS Determinations |

|(October 7, 2011). |

|IRS. Guidance Released on Filing Protective Claims for Refund of Estate Tax. On October 14, the IRS released Rev. Proc. 2011-48 |

|providing rules on the filing and subsequent resolution of a protective claim for refund of estate tax that is based on a |

|deduction for a claim or expense under I.R.C. § 2053 and corresponding regulations. The guidance says that a taxpayer that does |

|not follow or comply with these rules is subject to the generally applicable provisions as well as the specific § 2053 provisions|

|governing refund claims, and will not have the benefit of the limited review described in Notice 2009-84 and this guidance. A § |

|2053 protective claim for refund must be filed before the expiration of the period of limitation under § 6511(a) for the filing |

|of a claim for refund, which states that a refund claim shall be filed by the taxpayer within 3 years of filing the return or 2 |

|years from the time the tax was paid, whichever period expires later, or if no return was filed, within 2 years from the time the|

|tax was paid. Westlaw: Rev. Proc. 2011-48, 2011-42 I.R.B. 527, 2011 WL 4863700 (October 14, 2011); Web: Rev. Proc. 2011-48, |

|2011-42 I.R.B. 527 (October 14, 2011). |

| |

|LEGISLATION |

|New York. Formulas Construed to Refer to the Federal Estate and Generation-skipping Transfer Tax on Estates of Decedents Dying |

|During 2010. New York has passed legislation that modifies certain formulas construed to refer to the federal estate and |

|generation-skipping transfer tax on estates of decedents dying during 2010. The act makes references to the “unified credit”, |

|“estate tax exemption”, “applicable exclusion amount”, “applicable exemption amount”, “applicable credit amount”, “marital |

|deduction”, “maximum marital deduction”, “unlimited marital deduction”, “charitable deduction”, “maximum charitable |

|deduction”"unified credit", "applicable exemption amount", and similar words or phrases referring to the federal estate tax in a |

|will or trust of such a decedents dying during 2010, the phrases are to be construed as referring to federal estate law as it |

|applied to decedents dying on December 31, 2009. (2011 New York Assembly Bill No. 7729, New York Two Hundred Thirty-Fourth |

|Legislative Session; Title: Modifies Certain Formulas Construed To Refer To The Federal Estate And Generation-Skipping Transfer |

|Tax On Estates Of Decedents Dying During 2010.; VERSION: Adopted; September 23, 2011). Westlaw: 2011 NY A.B. 7729 (NS); Web: New |

|York Legislature. |

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|WEBINARS |

|How to Use Gifting Strategies in Medicaid Planning. Speakers: Martin C. Womer. (NBI, Inc (National Business Institute, Inc.), |

|11/30/2011 2:00 PM EST). 1 Hours, 30 Minutes. West LegalEdcenter: Live Audio. |

|Preparing for 2011 Federal Gift and Estate Tax Returns. Speakers: Andrew W. Lohn. (National Business Institute, Inc., 11/01/2011,|

|10:00 AM EDT.) 1 Hours, 30 Minutes. West LegalEdcenter: Live Audio. |

|Tax Issues and the Elderly. Speakers: Peter Walsh. (Milwaukee Bar Association, 11/30/2011 1:30 PM EST). 1 Hours, 0 Minutes. West |

|LegalEdcenter: Live Video. |

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|OTHER |

|IRS. New Estate Tax Statistics for 2010 Released by IRS. On September 28, the Internal Revenue Service released new estate tax |

|statistics for estate tax returns filed in 2010, the majority of which were for deaths that occurred in 2009. The reports |

|indicated that the number of returned filed in 2010 fell to 15,191 estate tax returns compared with 33,515 for 2009, a drop of 55|

|percent. California estates filed the most returns at 3,009, with Florida estates accounting for 1,734, followed by New York at |

|1, 409. Westlaw: 2011 WL 4589147 (October 6, 2011); Web: SOI Estate Tax Data Tables, Filing Years, IRS Tax Stats (September 28, |

|2011). |

|IRS. Filing Year 2010 Estate, Gift and Split Interest Trust Statistics Available. The IRS has published on its website new data |

|for filing year 2010 for estate tax returns, split-interest trusts, and gift tax returns. The three tables available for estate |

|tax returns include data on 1) income, deduction, and tax computations classified by taxability of return and size of estate, 2) |

|tax computation classified by state of residence, and 3) charitable bequests classified by state of residence. The eleven tables |

|available for split-interest trusts include data on income streams, asset values, and distribution information classified by |

|trust type, including charitable remainder unitrusts, charitable remainder annuity trusts, charitable lead trusts, and pooled |

|income funds, and end-of-year book value of total assets. The table on gift tax presents data on total gifts, deductions, |

|credits, and net tax amounts by tax status and size of total taxable gifts. Westlaw: 2011 WL 4563517 (October 5, 2011); Web: |

|Filing Year 2010 Estate Tax Study, Filing Year 2010 Split-Interest Trusts, Filing Year 2010 Gift Taxes, IRS SOI Tax Stats - |

|What's New (October 2011). |

|BNA. Practitioners Warn Even Estates Under Exclusion Amount Must File Form 706 to Claim Unused Estate Tax Exemption. According to|

|Notice 2011-82, the executor of a decedent’s estate must file Form 706 to elect to allow the surviving spouse to use the deceased|

|spouse’s unused exclusion amount under I.R.C. 2010(c)(5)(A), even if the estate is not otherwise required to file a return. On |

|October 11, practitioners told BNA that this procedure for electing “portability” of the decedent’s unused exemption will force |

|even estates of less than $5 million in assets to file a Form 706 for 2011 and 2012 in order to make the election. They warned |

|that the new requirement creates a malpractice risk if the election is not made on the first estate, since the executor can never|

|be certain even in situations where it appears that the surviving spouse will never need the unused exemption, as in the case of |

|a surviving spouse later winning the lottery. Westlaw: 2011 WL 4797530 (October 12, 2011); Web: More Estates Forced to File With |

|IRS Under Estate Portability Proposal, BNA Daily Tax Report (October 12, 2011). |

|U.S. Tax Court. Tax Court Corrects Error in Valuation of LLC. On October 11, the U.S. Tax Court issued a supplemental memorandum |

|opinion correcting an error made when calculating the value of 3,970 membership units in Paxton Media Group, LLC, a Kentucky |

|limited liability company included in the gross estate of Louise Paxton Gallagher ( Estate of Gallagher v. Commissioner, T. C., |

|No. 16853-08, T.C. Memo. 2011-244, 10/11/11). Using a discounted cash flow analysis, the court had originally computed the value |

|as $32,601,640. However, in the memorandum, the court noted that it had erred in the present value factor used and upon |

|correction found the value of the units to be $35,761,760, $3,160,120 more than originally reported. Westlaw: Estate of Gallagher|

|v. Commissioner, T.C. Memo. 2011-244, 2011 WL 4797456 (October 12, 2011); Web: Estate of Gallagher v. Commissioner, T.C. Memo. |

|2011-244 (October 12, 2011). |

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|Estate and Trust Administration; Probate |

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|ARTICLES |

|Fattening Up the Skinny Estate -- the Non-Probate Transfer Statute's Remedies for Pursuing a Decedent's Assets. Robert J. Selsor.|

|(Journal of the Missouri Bar, September-October, 2011). Westlaw: 67 J. Mo. B. 286. |

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|WEBINARS |

|Handling Insolvent Estates in Estate Administration. Speakers: Bruce R. Moen. (National Business Institute, Inc., 11/02/2011 2:00|

|PM EDT). 1 Hours, 30 Minutes. West LegalEdcenter: Live Audio. |

|How to Terminate Trusts. Speakers: Mary A. Akkerman. (NBI, Inc (National Business Institute, Inc.), 11/21/2011 2:00 PM EST). 1 |

|Hours, 30 Minutes. West LegalEdcenter: Live Audio. |

|Probate Practice Part 1: Emerging Issues in a Modern Guardianship Practice. Speakers: Margaret C. Benson; Stacy J. Berk; Paul S. |

|Franciszkowicz; James F. Tozzi. (Chicago Bar Association, 11/09/2011 4:00 PM EST). 3 Hours, 0 Minutes. West LegalEdcenter: Live |

|Video. |

|Probate Practice Part II: Planning Issues Related to Probate and Guardianship. Speakers: . (Chicago Bar Association, 11/16/2011 |

|4:00 PM EST). 3 Hours, 0 Minutes. West LegalEdcenter: Live Video. |

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|Estate Planning (Generally) |

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|WEBINARS |

|Asset Protection Techniques for the Physician Client. Speakers: Harold E. Snow, Jr.. (NBI, Inc (National Business Institute, |

|Inc.), 11/10/2011 2:00 PM EST). 1 Hours, 30 Minutes. West LegalEdcenter: Live Audio. |

|Basic Estate Plan Documents. Speakers: Matthew R. Hillery. (Boston Bar Association, 11/02/2011 12:30 PM EDT). 1 Hour, 0 Minutes.|

|West LegalEdcenter: Live video. |

|Estate Planning 101 Segment A. Speakers: Mary Ann Mancini; Stanley L. Ruby; A. Christopher Sega. (ALI-ABA, 11/02/2011 8:00 AM |

|EDT). 4 Hours, 0 Minutes. West LegalEdcenter: Live Video. |

|Estate Planning 101 Segment B. Speakers: Stanley L. Ruby; Barbara A. Sloan. (ALI-ABA, 11/02/2011 1:30 PM EDT). 3 Hours, 30 |

|Minutes. West LegalEdcenter: Live Video. |

|Estate Planning 101 Segment C. Speakers: Julia B. Fisher; Mary Ann Mancini . (ALI-ABA, 11/03/2011 8:30 AM EDT). 3 Hours, 15 |

|Minutes. West LegalEdcenter: Live Video. |

|Estate Planning 101 Segment D. Speakers: Farhad Aghdami; Julia B. Fisher; Diane Hubbard Kennedy. (ALI-ABA, 11/03/2011 1:15 PM |

|EDT). 4 Hours, 0 Minutes. West LegalEdcenter: Live Video. |

|Estate Planning 101 Segment E. Speakers: Farhad Aghdami; Gayle Evans. (ALI-ABA, 11/04/2011 8:15 AM EDT). 4 Hours, 30 Minutes. |

|West LegalEdcenter: Live Video. |

|Estate Planning 101 Segment F. Speakers: Mary Ann Mancini. (ALI-ABA, 11/04/2011 2:15 PM EDT). 2 Hours, 45 Minutes. West |

|LegalEdcenter: Live Video. |

|The "Soft" Side of Succession: Psychology, Emotions and Family Dynamics. Speakers: Anjali Seefeldt Shipra Seefeldt. (Milwaukee |

|Bar Association, 11/01/2011 1:30 PM EDT). 1 Hour, 0 Minutes. West LegalEdcenter: Live Video. |

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|Generation-Skipping Transfer Tax |

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|ARTICLES |

|Estate, Gift, and GST Taxes: What Actually Happened. (Practical Lawyer, October 2011). Westlaw: 57 No. 5 Prac. Law. 25. |

| |

|LEGISLATION |

|New York. Formulas Construed to Refer to the Federal Estate and Generation-skipping Transfer Tax on Estates of Decedents Dying |

|During 2010. New York has passed legislation that modifies certain formulas construed to refer to the federal estate and |

|generation-skipping transfer tax on estates of decedents dying during 2010. The act makes references to the “unified credit”, |

|“estate tax exemption”, “applicable exclusion amount”, “applicable exemption amount”, “applicable credit amount”, “marital |

|deduction”, “maximum marital deduction”, “unlimited marital deduction”, “charitable deduction”, “maximum charitable |

|deduction”"unified credit", "applicable exemption amount", and similar words or phrases referring to the federal estate tax in a |

|will or trust of such a decedents dying during 2010, the phrases are to be construed as referring to federal estate law as it |

|applied to decedents dying on December 31, 2009. (2011 New York Assembly Bill No. 7729, New York Two Hundred Thirty-Fourth |

|Legislative Session; Title: Modifies Certain Formulas Construed To Refer To The Federal Estate And Generation-Skipping Transfer |

|Tax On Estates Of Decedents Dying During 2010.; VERSION: Adopted; September 23, 2011). Westlaw: 2011 NY A.B. 7729 (NS).Web: New |

|York Legislature. |

| |

|Health Care |

| |

|ARTICLES |

|Living Wills: is It Time to Pull the Plug? Dorothy D. Nachman. (Elder Law Journal, 2011). Westlaw: 18 Elder L.J. 289. |

| |

|WEBINARS: |

|HIPAA Update for Paralegals. Speakers: Deborah Frazier ; Paige Joyner. (IPE (Institute for Paralegal Education), 11/07/2011 11:00|

|AM EST). 1 Hours, 0 Minutes. West LegalEdcenter: Live Audio. |

|Medicaid 101: Get the Basics Down. Speakers: Ronald Fatoullah; Stacey J. Meshnick. (NBI, Inc (National Business Institute, Inc.),|

|11/03/2011 11:00 AM EDT). 1 Hours, 30 Minutes. West LegalEdcenter: Live Audio. |

|Nursing Home Failure of Care Litigation. Speakers: Leslie M. Jenny. (NBI, Inc (National Business Institute, Inc.), 11/15/2011 |

|11:00 AM EST). 1 Hours, 30 Minutes. West LegalEdcenter: Live Audio. |

|Protection of Health Care Fraud and Abuse Cases. Speakers: Stacy Gerber Ward. (Milwaukee Bar Association, 11/08/2011 1:30 PM |

|EST). 1 Hours, 0 Minutes. West LegalEdcenter: Live Video. |

|Troubleshooting SSDI/DIB: Proving Mental Impairment. Speakers: Marcie E. Goldbloom. (NBI, Inc (National Business Institute, |

|Inc.), 11/10/2011 11:00 AM EST). 1 Hours, 30 Minutes. West LegalEdcenter: Live Audio. |

| |

|OTHER |

|Congress. House Committee Votes to Include Social Security in Income for Certain Medicaid Applicants. On October 13, the House |

|Ways and Means Committee supported H.R. 2576 amending the Internal Revenue Code to include social security benefits in the |

|calculation of modified adjusted gross income, beginning in2014, for purposes of determining eligibility for certain Medicaid |

|applicants and federal subsidies for health insurance bought through the new health insurance exchanges. Supporters of the |

|measure claim it is necessary to close a loophole in the Patient Protection and Affordable Care Act (P.L. 111-148) that could |

|result in under-65 retirees receiving both Social Security and Medicaid, even if their income is up to 400 percent of the |

|federal poverty level. The provision at issue expands Medicaid eligibility to people under 65 with MAGI below 133 percent of the |

|federal poverty level, but because the current MAGI calculation excludes up to $25,000 in Social Security income for individuals |

|and $32,000 for a married couple, early retirees may be allowed to receive both benefits even if income levels exceed the |

|designated poverty level. Westlaw: 2011 WL 4845355 (October 14, 2011); Web: Markup of 3 Percent Withholding Rule and Modifying |

|the Income Definition for Certain Health Care Programs, House Ways and Means Committee (October 13, 2011). |

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|Irrevocable Trusts--See Trusts (Generally) |

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|Probate--See Estate/Trust Administration and Probate |

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| |

|Retirement |

| |

|ARTICLES |

|The Aging Of America: Retirement Planning On The Web. Frank J. Cavaliere. (Practical Lawyer, October 2011). Westlaw: 57 No. 5 |

|Prac. Law. 11. |

|An Overview of the U.S. Retirement Income Security System and the Principles and Values It Reflects. Kathryn L. Moore. |

|(Comparative Labor Law and Policy Journal, Fall 2011). Westlaw: 33 Comp. Lab. L. & Pol'y J 5. |

| |

|IRS DECISIONS, REGULATIONS, AND GUIDANCE |

|IRS. Section 402 - Taxability of Beneficiary of Employee's Trust (Time and Manner of Taxation). The IRS ruled that a minor |

|daughter, as sole beneficiary of her father’s retirement plan, is eligible to have a court-ordered reimbursement of plan |

|proceeds, along with any refund of federal and state taxes received due to amending her tax returns, transferred into an |

|inherited IRA and she will not be required to include the proceeds/reimbursement in gross income for federal income tax purposes,|

|after a conservatorship proceeding was undertaken to obtain an order that the lump-sum distribution made as a result of the |

|demands by the decedent’s former spouse, as guardian and mother of the child, be repaid except as used for permissible expenses. |

|Westlaw: PLR 201139011, 2011 WL 4505552 (September 30, 2011); Web: PLR 201139011, IRS Written Determinations (September 30, |

|2011). |

|IRS. Section 408 - Individual Retirement Accounts. The IRS granted taxpayers a 60-day extension to rollover their IRA |

|distribution after taxpayers assert their failure to accomplish a timely rollover was due to the failure of taxpayer’s financial |

|advisor to inform him that the purchase of stock in a non-publically traded company with funds distributed from a qualified |

|individual retirement arrangement was required to be held in trust by an authorized IRA trustee and that the trustee was the |

|entity required to purchase the shares. Westlaw: PLR 201139012, 2011 WL 4505553 (September 30, 2011); Web: PLR 201139012, IRS |

|Written Determinations (September 30, 2011). |

|IRS. Section 408 - Individual Retirement Accounts. The IRS granted taxpayers a 60-day extension to rollover their IRA |

|distribution after taxpayers assert their failure to accomplish a timely rollover was due to taxpayer’s medical condition which |

|impaired her ability to manage her financial affairs and prevented her from discovering that the distribution that she had |

|attempted to deposit into an IRA with another institution was mistakenly deposited into a non-IRA account. Westlaw: PLR |

|201141022, 2011 WL 4873349 (October 14, 2011); Web: PLR 201141022, IRS Written Determinations (October 14, 2011). |

| |

|LEGISLATION |

|California. Public Guardians and Conservators. California has passed legislation related to public guardians and conservators. |

|The law (1) authorizes a public guardian or public conservator, if he or she intends to apply for appointment as the guardian or |

|conservator of a person domiciled in the county, to restrain the transfer, encumbrance, or disposal of real or personal property |

|held in a trust for that person, if certain requirements are met, except as specified; (2) prescribes a certification form in |

|this regard, which may be recorded in the case of real property, and which may be provided to a financial institution; (3) |

|requires a financial institution that receives the certification to provide information to the public guardian or public |

|conservator and to restrain the transfer, encumbrance, or disposal of the property at issue without the necessity of inquiring |

|into the truth of the certification and without court order or letters being issued; and (4) extend to 30 days the period that |

|the written certification issued for purposes of taking possession or control of property is effective. (2011 California Assembly|

|Bill No. 1288, California 2011-2012 Regular Session; Title: Public Guardians And Conservators: Authority: Property Held In |

|Trust.; VERSION: Adopted; September 30, 2011). Westlaw: 2011 CA A.B. 1288 (NS); Web: California Legislature. |

| |

|Same Sex Marriages; Civil Unions; Domestic Partnerships |

| |

|ARTICLES |

|Perry V. Schwarzenegger and the Future of Same-Sex Marriage Law. Clifford J. Rosky. (Arizona Law Review, Fall 2011). Westlaw: 53 |

|Ariz. L. Rev. 913; Web: Arizona Law Review. |

|Same-Sex Marriage, Second-Class Citizenship, and Law's Social Meanings. Michael C. Dorf. (Virginia Law Review, October, 2011). |

|Westlaw: 97 Va. L. Rev. 1267. |

|Same-Sex Relationships, DOMA, and the Tax Code: Rethinking the Relevance of DOMA to Straight Couples. Keeva Terry. (Columbia |

|Journal of Gender and Law, 2011). Westlaw: 20 Colum. J. Gender & L. 384. |

| |

|Small and Mid-Size Law Firm Practice |

| |

|ARTICLES |

|I Think I Know How to Retire: McArthur's Rules. Scott McArthur (Oregon State Bar Bulletin, October, 2011). Westlaw: 72-OCT Or. |

|St. B. Bull. 36; Web: Oregon State Bar Bulletin. |

|The Grammatical Lawyer: Forgotten English (Part 2). Michael G. Walsh (Practical Lawyer, October 2011). Westlaw: 57 No. 5 Prac. |

|Law. 5. |

|Law Firm Network Decision--Which Fits Your Needs: a Cloud-Based Managed Network or Telecom Carrier's Managed Router? James |

|Whitemore. (Lawyer's PC, October 15, 2011). Westlaw: 29 No. 2 Law. PC 6. |

|Matter Benchmark Reports: WestlawNext Offers Business Intelligence Analysis Tool to Aid Decision Making in Law Firms & Agencies. |

|(Lawyer's PC, November 1, 2011). Westlaw: 29 No. 3 Law. PC 9. |

|Printers in Law Practice: Green is the Goal, but a Reliable Printer Remains a Must. Daniel E. Harmon (Lawyer's PC, November 1, |

|2011). Westlaw: 29 No. 3 Law. PC 1. |

|Recovering Lost Revenue: Five Features Lawyers Should Look For In Selecting a Mobile Time Capture App. Don Joyce. (Lawyer's PC, |

|November 1, 2011). Westlaw: 29 No. 3 Law. PC 5. |

|Take a Load off Your PC: Hard Drive Housekeeping Should Be a Regular Task. Daniel E. Harmon. (Lawyer's PC, October 15, 2011). |

|Westlaw: 29 No. 2 Law. PC 1. |

| |

|IRS DECISIONS, REGULATIONS, AND GUIDANCE |

|IRS. Service Advises Tax Professional to Obtain E-File ID Numbers Now in Order to Meet 2012 E-File Requirements. On October 12, |

|the Internal Revenue Service issued IR-2011-100 urging tax professionals that do not have Electronic Filing Identification |

|Numbers to begin the process to obtain EFINs now so they can meet new e-file requirements for 2012. As of January 2012, paid tax |

|preparers or firms that reasonably anticipate preparing and filing 11 or more Form 1040 series returns, Form 1041 returns, or a |

|combination of these returns generally must use IRS e-file, although their clients who file these forms may still file by paper. |

|To become Authorized IRS e-file Providers, preparers must create an e-Services account, submit an EFIN application and pass a |

|suitability check, then receive approval from the IRS which can take 45 days or more. Westlaw: IR- 2011-100, 2011 WL 4818457 |

|(October 12, 2011); Web: IR- 2011-100, IRS Newsroom (October 12, 2011). |

|IRS. IRS Offers Online Seminars for 2011 Tax Forums. On October 14, the IRS announced (IR-2011-102) that the IRS Nationwide Tax |

|Forums Online is offering self-study seminars for tax professionals from the speakers at the 2011 IRS Nationwide Tax Forums, |

|which may be taken for either continuing professional education credit or audit. The 2011 seminars that may be of interest to |

|estate planning professionals include Basics of New Estate Tax Law and Power of Attorney and Other Third Party Authorizations. |

|The presentations include a 50-minute interactive with PowerPoint presentation, and transcripts for each seminar. Westlaw: |

|IR-2011-102, 2011 WL 4871741 (October 17, 2011); Web: IR-2011-102, IRS Newsroom (October 14, 2011). |

| |

|WEBINARS |

|Creating a "Less Paper" Office: A Paralegal's Guide. Speakers: Pamela K. Bebon. (IPE (Institute for Paralegal Education), |

|11/28/2011 3:00 PM EST). 1 Hours, 0 Minutes. West LegalEdcenter: Live Audio. |

|Effective Client Development. Speakers: Michael Moore. (Milwaukee Bar Association, 11/02/2011 6:00 PM EDT). 1 Hour, 0 Minutes. |

|West LegalEdcenter: Live Video. |

|Up and Out - Succession Planning for Lawyers: Getting Ready for the "Second Season". Speakers: Andrew Elowitt, JD, MBA, and NCC; |

|Edward Poll. (LawBiz® Management, 11/15/2011 1:00 PM EST). 1 Hours, 0 Minutes. West LegalEdcenter: Live Audio. |

| |

|OTHER |

|IRS. Service Forcing Submission of Tax Returns through Modernized E-File System. In the fall of 2012, the Internal Revenue |

|Service plans to shut down the legacy system for filing tax returns, forcing tax professionals to submit tax returns filed by |

|their clients through the modernized e-File system. On October 12, 2011, Commissioner of Internal Revenue, Douglas Shulman, told|

|attendees at the Council for Electronic Revenue Communication Advancement, in Arlington, VA, that the Service has not seen |

|“enough volume of returns submitted through MeF,” and that he could not continue to run two systems as the primary e-filing |

|platform. Shulman also noted that the IRS is progressing on a real-time tax system that will identify issues at the time of |

|filing rather than after the fact, which will help avoid audits and other correctional measures that take place up to three years|

|later and often result in penalties and interest when the taxpayer did not realize they had a problem in the first place. |

|Westlaw: 2011 WL 4827347 (October 13, 2011); Web: Prepared Remarks of Douglas H. Shulman, Commissioner of Internal Revenue, to |

|the CERCA Fall Meeting 2011, IRS Newsroom (October 12, 2011). |

| |

|Special Needs Trusts; Guardianships |

| |

|WEBINARS |

|How to Use Gifting Strategies in Medicaid Planning. Speakers: Martin C. Womer. (NBI, Inc (National Business Institute, Inc.), |

|11/30/2011 2:00 PM EST). 1 Hours, 30 Minutes. West LegalEdcenter: Live Audio. |

|Probate Practice Part 1: Emerging Issues in a Modern Guardianship Practice. Speakers: Margaret C. Benson; Stacy J. Berk; Paul S. |

|Franciszkowicz; James F. Tozzi. (Chicago Bar Association, 11/09/2011 4:00 PM EST). West LegalEdcenter: Live Video. |

|Troubleshooting SSDI/DIB: Proving Mental Impairment. Speakers: Marcie E. Goldbloom. (NBI, Inc (National Business Institute, |

|Inc.), 11/10/2011 11:00 AM EST). West LegalEdcenter: Live Audio. |

| |

|Trusts (Generally) |

| |

|ARTICLES |

|The New Direction of American Trust Law. Thomas P. Gallanis Westlaw: . (Iowa Law Review, November, 2011). [97 Iowa L. Rev. 215; |

|Web: Iowa Law Review. |

| |

|IRS DECISIONS, REGULATIONS, AND GUIDANCE |

|IRS. Section 1362 - Election by Small Business Corporation. The IRS granted relief to a corporation whose S election was |

|inadvertently terminated after the corporation agreed to hold shares in trust for a shareholder but failed to treat the shares as|

|outstanding shares of the corporation. Westlaw: PLR 201139001, 2011 WL 4505568 (September 30, 2 011); Web: PLR 201139001, IRS |

|Written Determinations (September 30, 2011). |

|WEBINARS |

|Drafting Credit Shelter Trusts After TRA 2010. Speakers: Robert J. Fry. (NBI, Inc (National Business Institute, Inc.), 11/29/2011|

|4:00 PM EST). 1 Hours, 30 Minutes. West LegalEdcenter: Live Audio. |

| |

|Wills |

| |

|ARTICLES |

|In the Name of God, Amen: Language in Last Wills and Testaments. Karen J. Sneddon. (Quinnipiac Law Review, 2011). Westlaw: 29 |

|Quinnipiac L. Rev. 665; Web: Quinnipiac Law Review. |

| |

| |

|See all articles in this issue |

| |

|[pic] |

|With version 2011-2, Client data may now be imported and exported. Supported formats include Excel, vCard for Apple users and |

|others, and CSV for Microsoft Outlook and Gmail users. You can find the import and export feature on the main client listing |

|screen. |

|Import Client Information |

|Trust Plus gives you the ability to import client information you have stored in other applications. This feature does not |

|directly sync with other applications, but does allow you to save time and effort when initially entering client information into|

|Trust Plus. |

|Caution: This feature is not designed at this time to take client information into Trust Plus, and later return data back to the |

|original application. Such attempts are not recommended. |

|The client importer can directly use .csv files created from Microsoft Outlook, and vCards created from Apple Address Book or |

|other applications. The client importer can also use files that are in traditional .csv format (i.e., a .csv text file that uses |

|the importer's own headings). For details on how to prepare client information for import, see the Import section of the Trust |

|Plus Software Guide. |

|[pic] |

|To begin your import, select Import from the Client Screen on the System menu to display the Import options. On the Import tab, |

|use the search option to the right of the Import File field to search for the file to be imported. Once the correct file has been|

|selected, click Process File. The screen will display the data to be imported. If the data looks correct, select Import. If there|

|are changes to be made or if this is not the correct file, select Do not import this data. |

|Imported files will be displayed on the Client screen with a file number beginning with "IMPORT". |

|Export Client Information |

|Select Export from the Client screen on the System menu to display the Export options. The folder location and new file name are |

|entered on this screen. The Search button to the right of the Folder field may be used to search for the correct location. |

|[pic] |

|Once the appropriate selections have been made, click Continue to Client Selection. A new screen will be displayed where clients |

|to be exported may be selected. Check the box to the left of each individual client to be included, or click Select All in the |

|top left corner. |

|A search field is also available as well as an option to add a new client. Once the clients to be exported have been selected, |

|click Continue to export your data. A confirmation message indicates the location of the exported data. Locate and open the |

|exported file in the appropriate software application (i.e., Outlook or Excel). |

|For more information on the these features, see the Import or Export sections of the Trust Plus Software Guide. |

|If you have any questions on the Cowles software, support is just a phone call away using the following numbers: |

|License activations - Customer Technical Support, 1-800-366-1730 (option 1) |

|Questions about your West account or requests to add/remove Members Only or Listserve access - Customer Service, 1-800-366-1730 |

|(option 2) |

|Content questions and questions on how to use the software - Reference Attorneys, 1-800-277-9378 (option 3) |

|Technical software problems and questions (installation, networking, technical errors) - Customer Technical Support, |

|1-800-366-1730 (option 4) |

|Sales of supplies (Estate Organizer Binders, client booklets, etc.) - Inside Sales, 1-800-366-1730 (option 5) |

|To schedule training on using the software - Telephone Training, 1-800-328-0109 (option 1) |

| |

|Start of Tech Tip Article |

|See all articles in this issue |

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