Media Mentions
2012
“Carryover Basis Returns Were Time-Consuming, Frustrating for Practitioners”
Tax Notes Today, February 7, 2012
Amy Heller expressed surprise that the IRS would request comments on an estate tax carryover election form after its filing deadline, especially since the form is not required in future years. “I suppose it’s possible that a practitioner who had difficulties completing [the form] would take the time to make suggestions,” she said. “But I doubt that serious effort will be put into preparing comments just in case that carryover basis returns.”
“Firm Life”
Chicago Lawyer, February 1, 2012
Erin Arnold, Kevin Miller, Brett Johnson and Maureen O’Brien, Amol Parikh and Adam Sherman were cited as the six McDermott Chicago office lawyers among 29 recently named to the Firm’s partnership.
Erin Arnold, Brett R. Johnson, Kevin L. Miller, Maureen O'Brien, Amol Parikh, Adam Sherman, Airport & Aviation, Employee Benefits, Health, Intellectual Property, IP Litigation, Private Client, Trial
“How to Get the Latest Tax Break Without Spending a Bundle on Legal Fees”
Forbes, January 11, 2012
Carol Harrington said it “would not be cost-effective” for married couples with small estates to file a Form 706 federal estate tax return when one spouse dies and no tax is owed. Such a form is required to allow the surviving spouse the possibility of claiming a future $5 million estate tax exclusion from the deceased spouse.
Carol A. Harrington, Private Client
2011
“IRS Seeking Comments on Tax Consequences of Trust Decanting”
Tax Notes Today, December 28, 2011
Amy Heller said that an IRS effort to seek comments on the tax consequences of decanting (transferring the assets of one trust to another) “seems to suggest one of the government’s concerns is whether a beneficiary can play a role in a decision to decant, as opposed to the decision being made solely by a trustee.” Ms. Heller noted the issue’s importance, in that “the number of states that have decanting statutes has grown, and even in states that do not have decanting statutes, lawyers are putting decanting provisions in trust documents.”
“Pitfalls of Inherited IRAs”
Wall Street Journal, December 10, 2011
Bobbi Bierhals advised single, divorced or remarried parents serving as guardians of a child who inherits an IRA account to set up a “see-through” trust to protect an inherited IRA’s assets and handle annual distributions.
Bobbi J. Bierhals, Private Client
“Lawyers Giving Back: Bundles of Love”
ABA Journal, December 2011
Menna Eltaki, Latonia Keith, Carol Harrington and Elise Beyer were pictured creating “Bare Necessities Bundles” of clothing, diapers and personal care items for women and children at a local Chicago women’s treatment center, as part of the inaugural “Together for a Cause” event co-sponsored by McDermott and LexisNexis.
Carol A. Harrington, Latonia Haney Keith, Elise J. McGee, International Tax, Private Client, Pro Bono & Community Service, Tax
“In the Law Firms”
Chicago Daily Law Bulletin, November 28, 2011
Erin Arnold (Trial), Brett Johnson (Employee Benefits), Kevin Miller (Health), Maureen O’Brien (Employee Benefits), Amol Parikh (Intellectual Property) and Adam Sherman (Private Client) were the Chicago office lawyers among the 29 new global partners that McDermott announced effective January 1, 2012.
Erin Arnold, Brett R. Johnson, Kevin L. Miller, Maureen O'Brien, Amol Parikh, Adam Sherman, Employee Benefits, Health, Intellectual Property, Private Client, Trial
“Are Those Estate-Tax Rumors Real?”
Wall Street Journal, November 18, 2011
Carol Harrington said that she could not “find any substantiation” for Internet rumors that Congress is seeking to raise the rate and lower the exemption for the estate tax, adding that such a change “makes no sense and would be highly unfair to taxpayers who have been told they have at least two years to make gifts at the higher exemptions.” Nonetheless, Ms. Harrington said that tax practitioners “have enough sense to know that we cannot predict what Congress is going to do,” and urged clients to “avoid risk by doing gifts as soon as possible, even if that risk is small.”
Carol A. Harrington, Private Client, Trust & Estate Controversy
“Widows and Widowers Often Lose Money Needlessly”
Wall Street Journal, November 12, 2011
James Cundiff noted that a married couple’s estate can be hit by state-level estate taxes in about a dozen states with estate-tax thresholds below the $5 million federal tax exemption, and such taxes can apply when each spouse dies. Mr. Cundiff suggested that putting the estate into two separate trusts valued below or closer to the state exemption level can help defer such taxes by making what is called a "qualified terminable interest property" election.
James H. Cundiff, Family Offices, Private Client
“How Low Rates Can Cut Your Tax Bill”
The Wall Street Journal, October 1, 2011
Carol Harrington, citing such issues as how the Internal Revenue Service resets the interest rates it allows for private loans and various estate-planning transactions carried out each month, said that low interests rates make intrafamily loans especially attractive. Ms. Harrington stated, “It’s a wonderful time to lend to a child, say, to buy a house.”
Carol A. Harrington, Private Client
“Crummey Trusts Still Smart, Say Advisers”
Wall Street Journal, September 24, 2011
Carlyn McCaffrey said that a recent Tax Court finding for an estate that failed to send out required annual withdrawal notice letters to beneficiaries of a so-called Crummey trust should not be taken as license to avoid sending such letters. She predicted that the IRS will continue to pursue trusts that fail to give proper withdrawal notice.
Carlyn S. McCaffrey, Private Client
“Earning Income by Making a Gift”
Wall Street Journal, September 17, 2011
Neil Kawashima said that making a charitable gift annuity to a nonprofit in exchange for lifetime fixed annuity payments is a good way to help a charity, get an upfront tax deduction and secure a predictable lifetime income stream. He added, however, that before making such a donation it is advisable to determine what the charity will do to guarantee the payments, particularly when donors outlive their life expectancy.
Neil T. Kawashima, Private Client
“Warning: Too Many Eggs in One Basket”
Barron’s, September 17, 2011
Henry Christensen III advised structuring trusts with a heavy concentration in one asset as a directed trust with a third party appointed to direct investing. In such an arrangement “a directed trustee will have materially reduced [his] risk of liability,” Mr. Christensen said, especially in Delaware and a number of other states that are relatively hospitable to concentrated holdings.
Henry Christensen III, Private Client
“IRS Loses a Gift-Tax Battle”
Wall Street Journal, September 17, 2011
Carlyn McCaffrey, commenting on a Ninth Circuit decision that upheld a complex estate planning strategy of transferring hard-to-value assets to a limited liability company for making large gifts to beneficiaries, said that the IRS challenged the strategy because if the taxpayer prevailed, the IRS “had no incentive to audit” the asset valuation.
Carlyn S. McCaffrey, Private Client
“NY Same Sex Marriage Creates Tax Complications”
Wealth Briefing, September 6, 2011
Carlyn McCaffrey, citing such issues as the fact that legally married New York same-sex couples can file joint state tax returns but not joint federal returns, said that “wealth managers really need to associate with attorneys, accountants and others who are expert in these areas to get the best advice that will benefit their same-sex clients who live in New York and choose to get married, because these are very complicated issues.”
Carlyn S. McCaffrey, Private Client
“In Deep Water; Charity Incentive Could Backfire”
Sunday Telegraph, September 4, 2011
Martyn Gowar cautioned that British government proposals to lower the estate tax rate on persons who leave larger charitable bequests could reduce their charitable giving while alive. “Encouraging charitable giving is an admirable aim for the Government to have, but these proposals are complex, capricious and counterproductive,” Mr. Gowar said. “We fear that the very complexities, costs and uncertainties may well act to dissuade would-be testators from embracing it.”
“UK-Swiss Secret Deposit Tax Agreed”
Spear’s Wealth Management Survey, September 2011
Martyn Gowar said that a new UK-Swiss agreement in principle to levy a one-off tax on deposits held by Britons at Swiss banks and establish a permanent withholding tax will help the British government “get a handle on everybody who’s not compliant. If you’re not, where do you go? The Swiss will be telling the UK [depositors] if they move an account out … there’s nowhere to hide. Banking secrecy doesn’t exist for the future.”
“How Volatility Eases Estate Planning”
Wall Street Journal, August 20, 2011
Carlyn McCaffrey described the workings of a grantor-retained annuity trust (GRAT), in which a bundle of assets is placed in the trust and any appreciation can be transferred to beneficiaries without paying gift tax. The benefit, Ms. McCaffrey said, is that even though the current gift tax exemption is $5 million, “the people who want to do GRATs want to give away more than that.” She added that legislation in Congress to require that assets remain in a GRAT for at least 10 years has not yet passed.
Carlyn S. McCaffrey, Private Client
“Wealthy Take Estate Tax Exemptions Beyond Grave Until 2013”
Bloomberg News, August 16, 2011
Carlyn McCaffrey warned wealthy taxpayers against undoing bypass trusts and relying on recent Congressional action that allows unused estate tax exemptions to be passed to the surviving spouse, because Congress may not extend this tax law provision. She added that trusts also protect assets from creditors and election rights of spouses, and ensure that assets and their appreciation are outside of the estate.
Carlyn S. McCaffrey, Private Client
“Hawaii’s ‘Aloha’ to Special Trusts”
Dow Jones Newswire, August 9, 2011
Julie Kwon noted that, although a number of states have approved laws for asset protection trusts as vehicles to protect financial assets from litigation or creditors, these laws have not been tested through court challenges. Thus, she said, as court interpretations evolve through litigation, someone assuming a trust will be ironclad may discover that creditors who have gotten favorable judgments in one state may be able to use that to pursue trust-protected assets in another.
“PINs That Needle Families”
Wall Street Journal, July 23, 2011
Carol Harrington warned that digital estate planning services that maintain records of online assets like passwords and PINs may not be reliable. “If there’s more than one person who has access to data, experience has shown us that it can always be crashed in one way or another,” she stated. Ms. Harrington instead advised writing down passwords and telling family members where to find them – preferably not in a bank safe deposit box, since passwords need frequent updating.
Carol A. Harrington, Private Client
“10 Ways to Lawsuit-Proof Your Estate”
Forbes.com, July 13, 2011
David Baker addressed what persons can do while living to avoid disputes over a will after their death. He advised treating people with the same degree of relationship equally, given that “people fight, generally speaking, because they feel they aren’t getting a fair share or a fair slice of control.” Mr. Baker also suggested documenting which hard assets go to each person (“Juries and judges like a piece of paper” if a dispute goes to court), transferring a family business while living (“It’s harder to challenge a transfer by lifetime contract than by will or trust”), and establishing mental soundness without using videotape (Video “can generate more fodder for people who want to fight”).
David A. Baker, Private Client
“IBM, Corning Requiring Gay Couples to Marry for Health Benefits”
The Christian Post, July 9, 2011
Nicole Pearl cited differences in state and federal law treatment of same-sex marriage as the reason why some legally married same-sex couples will have to file four tax returns: separate individual returns and a “dummy” joint return for federal tax purposes, and as a married-filing-jointly couple for state taxes.
Nicole M. Pearl, Private Client
“Headaches for Same-Sex Couples”
Wall Street Journal, July 9, 2011
Nicole Pearl noted that, because federal law does not recognize same-sex marriage, even same-sex couples who are legally married in certain states must file multiple tax forms in those states as if they were single, and cannot leave each other unlimited assets without owing federal estate tax. In the latter instance, to keep the same assets from being taxed after each spouse dies, Ms. Pearl recommended leaving assets in an irrevocable trust to benefit the surviving spouse. “You would owe estate tax at the first death on the amount that goes into the trust, but not at the second death,” she pointed out.
Nicole M. Pearl, Private Client
“State Estate Tax Changes Make Plans Trickier”
Wall Street Journal, July 8, 2011
Julie Kwon said that because some states are raising estate taxes while others are cutting them, any estate plan developed to meet federal estate tax rules also needs to take into account the relevant states’ rules and build in some flexibility. Otherwise, Ms. Kwon warned, a mistake in a plan for a couple could mean an unexpected tax when the first spouse dies.
“Gift Tax Bonanza Faces Challenge”
Dow Jones Newswire, June 30, 2011
Carol Harrington said that, although Congress could extend the high 2011-12 gift tax exemption to 2013 (when it is set to fall sharply), she is reluctant to predict what if any Congressional action will occur. Meanwhile, she noted, trying to sort through the complications and uncertainties of the gift tax is “head spinning” for many clients because of the planning difficulties it causes.
Carol A. Harrington, Private Client
“Collegiate Confusion”
Forbes.com, June 27, 2011
Carlyn McCaffrey recommended 529 Plans as a “convenient and easy way” for depositing funds that can be withdrawn tax-free to pay for college expenses, while preserving the option for funds from a taxable estate to be withdrawn or transferred to another beneficiary. The article noted that Ms. McCaffrey is “known for the sophisticated trusts she sets up for superwealthy clients.”
Carlyn S. McCaffrey, Private Client
“California Court Gives ‘Rogue’ Wills More Validity”
Wall Street Journal, June 20, 2011
Julie Kwon offered advice on best practices for drafting wills in California. The state's harmless error law gives credence to informal wills that are not properly drafted or documented. However, such documents still have been contested in court, and Ms. Kwon said that “even simple formal documents” will spare beneficiaries a great deal of time and expense if there is a lawsuit challenging will terms.
“The Five Biggest Ways to Bungle a Trust”
Barron’s, May 21, 2011
David Baker called keeping detailed records of trust income and distributions “the most mundane, and at the same time, the most troubling task for individual trustees.” He also urged trustees to diversify trust assets, saying that any position accounting for more than 10% of a portfolio is likely too big, and advised that it “is generally not a fair assumption” for trustees to think they will receive a fee without devoting a lot of time and effort to getting paid.
David A. Baker, Private Client
“10 Tips for Downsizers with Too Much Stuff”
Forbes.com, May 19, 2011
Carol Harrington advised Baby Boomers looking to reduce the personal assets they hold to give them as gifts of cash, stocks or valuables. “You can give away a lot of stuff, keep it in the family, and there are no tax costs,” she noted, provided that the annual value of such gifts does not exceed $13,000. However, she added that once gifts exceed that limit the donor must file a federal gift tax return and the tax amount counts against the donor’s lifetime gift tax exemption.
Carol A. Harrington, Private Client
“Power Grab!”
Wall Street Journal, May 14, 2011
Henry Christensen III urged that wealthy individuals who grant power of attorney to a spouse or child and who continue making annual gifts should state their intent to do so in writing. Similarly, he advised persons receiving the power of attorney designation that, “if you’re going to be using that power to make gifts, you have to be expressly authorized to do it. You certainly have to be authorized to make gifts to yourself.”
Henry Christensen III, Private Client
“Getting Personal: More Trusts Used as Families Get Complicated”
Dow Jones News Service, May 2, 2011
Carlyn McCaffrey noted that same-sex couples often need to do special estate planning, because the federal estate tax is levied at the death of each partner in a gay couple even if the partners are legally married under state law.
Carlyn S. McCaffrey, Private Client
“Top-Ranked Estate Planner Joins McDermott”
Private Wealth, April 12, 2001
Jeffrey Stone and Carol Harrington both praised Carlyn McCaffrey, who has led her team of seven estates and trusts lawyers from a major New York-based firm to McDermott’s Private Client Group in New York. Mr. Stone called Ms. McCaffrey “one of the most highly respected practitioners in the country” and singled out “the results she and her team have continually delivered.” Ms. Harrington added that Ms. McCaffrey “is a truly brilliant and highly sought-after advisor,” and noted the skills of new partners Amy Heller and Elyse Kirschner.
Carol A. Harrington, Carlyn S. McCaffrey, Jeffrey E. Stone, Private Client, White-Collar & Securities Defense
“McDermott Adds Private Client Group from Weil”
New York Law Journal, April 8, 2011
Carlyn McCaffrey stated that she has moved her team of trusts and estates lawyers to McDermott from another major multinational law firm because of the size and reputation of and support for the Firm’s Private Client Group. “For me it’s important to bring my clients to a place where they have access to other departments, so I can offer them a full range of service,” she said.
Carlyn S. McCaffrey, Private Client
“McDermott Expands Private Client Practice with Addition of Preeminent Trust & Estate Lawyer Carlyn S. McCaffrey”
Trusts & Estates, April 7, 2011
Carlyn McCaffrey was welcomed to McDermott’s Private Client Group with estates and trusts partners Amy Heller and Elyse Kirschner, and lawyers Laura Hirschfeld, Christopher Parker, Shu-Ping Shen and Dena Wolf. Peter Sacripanti praised them as a “top-notch team” and an “exceptional group of lawyers.” Henry Christensen III, who will co-head the New York office’s Private Client Group with Ms. McCaffrey, called her “a friend and colleague” and added, “It will be a joy to have Caryn, Elyse and Amy as partners of McDermott.”
Henry Christensen III, Amy E. Heller, Elyse G. Kirschner, Carlyn S. McCaffrey, Peter John Sacripanti, Private Client, Trial
“Where There’s a Will: Estate Planning Group Bolts Weil for McDermott”
American Lawyer, April 7, 2011
Carlyn McCaffrey called McDermott “a firm … that values private client work” as she discussed her decision to move her team of seven estates and trusts lawyers and their clients to the Firm’s New York office, where Ms. McCaffrey will become co-chair of the office’s Private Client Group.
Carlyn S. McCaffrey, Private Client
“Getting Personal: Dynasty Trusts Get a Push Amid Scrutiny”
Dow Jones News Service, April 5, 2011
Julie Kwon said that tax advisers need to keep an eye on the prospects for President Obama’s proposal to limit to 90 years the lifespan of dynasty trusts that now can shelter money from gift and generation-skipping taxes for many generations. Ms. Kwon called the Obama proposal part of “a kind of arms race” between federal tax authorities and some states that have been changing their laws to attract more trust business. She noted that there has “probably been more foment and change in trust law in the last 10 years than there was for the past century.”
“Most Influential Lawyers”
National Law Journal, March 28, 2011
Carol Harrington was one of just 34 influential lawyers singled out by readers and researchers as among those who “have clout … to shape the world and the way it works.” Ms. Harrington called her private client practice “the closest thing in a large law firm to a general practitioner.” The publication praised her as “a national authority on the federal generation-skipping tax and a widely published commentator in her field,” and added that she “also knows the ins and outs of the tax, property and inheritance codes.”
Carol A. Harrington, Private Client
“For Death and Taxes, Americans Shop Around”
Bloomberg News, March 22, 2011
Ryan Harding advised high wealth individuals who are worried about state estate taxes to weigh making lifetime gifts, especially since most states don’t impose gift taxes. He added that now is a good time to do this because the lifetime exclusion for making gifts was raised by Congress to $5 million for an individual from $1 million, and giving gifts shifts assets outside of the estate.
Ryan M. Harding, Private Client
"A Look Inside the Estate Planning Industry: Key Findings from the 4th Annual Industry Trends Survey"
Trusts & Estates, January 2011
"The survey's findings are generally consistent with what we have observed in our practice, with a few slight differences," said attorney Julie K. Kwon of McDermott Will & Emery LLP in Menlo Park, CA. "The economic downturn actually did not depress our business very much; our group remained tremendously busy as our clients took advantage of the wealth transfer opportunities given unusually low asset valuations and interest rates that drive planning vehicles. As a result, we have added attorneys to our group nationally and expanded Private Client to an additional office," Kwon stated.
“Seizing the Tax-Friendly Gifting Moment”
Wall Street Journal, January 28, 2011
James Cundiff said that, by raising the individual lifetime tax-free gift limit from $1 million to $5 million, Congress created a dilemma for some wealthy donors. “If they knew the [new] transfer tax opportunities would be there forever, many clients would defer large wealth transfers,” he observed.
James H. Cundiff, Private Client
“Rich Folks Seek to Undo 2010 Taxable Gifts”
Forbes.com, January 12, 2011
Carol Harrington addressed the strict tax rules that apply to anyone who decides to turn down a taxable gift or inheritance, an action called a disclaimer that might be justified by recent tax law changes that Congress made. When financial assets are involved, Ms. Harrington said, a recipient who takes title to an asset or deposits a check into an account could probably make a valid disclaimer; but a disclaimer might not cover interest or dividends received. She added that, given all the special circumstances that applied in 2010, Congress could have made the rules for charitable gifts more lenient, but it did not.
Carol A. Harrington, Private Client
2010
“New Tax Law Offers Wealthy Families Options on Trusts”
The Wall Street Journal, December 21, 2010
James Cundiff emphasized that the new tax law passed by Congress makes it clear that a family donor can give property to a grandchild either outright or in a trust without paying a generation skipping tax (GST). Mr. Cundiff added that several of his clients plan to take advantage of the new law.
James H. Cundiff, Private Client
“Estate Measure Creates Window to Give Children Up To $10 Million Tax-Free”
Bloomberg News, December 14, 2010
James Cundiff pointed out that the tax agreement between President Obama and Congressional Republicans would enable families to substantially increase the tax-free gifts they can make to their children or others. “You could transfer $10 million next year without paying any tax,” Mr. Cundiff said. “That’s a big tax-free gift. This benefit evaporates in two years, so take it while you can.” He added that parents who are concerned about making such large gifts directly to children may use trusts to give the money to descendants.
James H. Cundiff, Private Client
“The State of the Estate Tax”
The Wall Street Journal, December 11, 2010
Carol Harrington called it a “welcome move” that the tax plan negotiated between President Obama and Congressional Republicans would for the first time unify the estate, gift and generation-skipping taxes, with one $5 million per individual exemption for all three.
Carol A. Harrington, Private Client
“A Look Inside the Estate Planning Industry”
Wealth Counsel, December 7, 2010
Julie Kwon affirmed that a new survey showing that estates and trusts work has remained strong despite the recession is supported by McDermott’s solid performance. “The economic downturn actually did not depress our business very much, as our clients took advantage of the wealth transfer opportunities given unusually low asset valuations and interest rates that drive planning vehicles,” she explained. “As a result, we have added attorneys and expanded to an additional office.”
“Baucus Aims to Stop Wealthy from Year-End Asset Moves”
Bloomberg Business Week, December 4, 2010
Carol Harrington said that the possibility that Congress could still approve a higher gift tax rate for late 2010 would affect “a significant number of people across the country who are contemplating year-end gifts” from their estates.” The uncertainty “may make some people stop and see what Congress is going to do,” she predicted, adding that if individuals do not make gifts the government is “going to give up a lot of revenue immediately” from the gift tax rate that is already in place.
Carol A. Harrington, Private Client
“Payday for Trust Babies”
Forbes.com, December 2, 2010
Julie Kwon emphasized the need to move quickly on making trust distributions to take advantage of 2010’s dual expiration of the estate and generation-skipping taxes. “Some trustees have been reviewing trusts to see if distributions are appropriate, but in some cases, this option may not have been raised yet at all, and the year is drawing to a close,” she said. Ms. Kwon, who is advising beneficiaries and trustees in several cases, added that tax considerations are important: “If you want to think about this, you need to start the discussion now. It’s not just an individual deciding to make a gift or not.”
“How to Protect Your Family from Estate Tax Uncertainty”
Forbes.com, November 28, 2010
Richard Lang commented on the current uncertainty in federal estate tax law by saying, “It’s wacky to have so many scenarios and not know what the tax is.” He cited the situation of one client whose entire estate plan was tied to the now-defunct federal estate tax, creating substantial difficult in division of assets, but vowed, “This is going to be worked out.”
Richard A. Lang, Private Client
“Mom, Dad, Can I Borrow $140,000?”
The Wall Street Journal, November 27, 2010
David Herpe discussed the increased use of interfamily loans, which allow transfer of wealth without paying an estate tax if the borrower invests the loan’s proceeds in something that turns a profit after repayment. With the IRS allowing family members to charge each other as little as 0.35 percent interest on such loans, Mr. Herpe said, “it’s not hard to find an investment that will appreciate by more.”
David A. Herpe, Private Client
“Last Chance to Foil a Gift Tax”
The Wall Street Journal, October 30, 2010
Carol Harrington stated that the 2011 return of the estate tax and the generation-skipping tax (both suspended for 2010), together with possible application of the gift tax, can mean that the federal government could receive more in taxes than beneficiaries receive from any wealth transfer gifts made next year within high-income families.
Carol A. Harrington, Private Client
“How To Ask Grandma For $1 Million”
Forbes, October 8, 2010
James Cundiff spoke about how many wealthy, elderly persons waited until year-end to give family members large financial gifts, which are subject to 2010’s one-year reduction in the gift tax before the tax rate rises in 2011. “People are starting to gear up and get in line with these massive gifts,” Mr. Cundiff said. “We’ll see if they will go through the last week of December,” by which point Congress may decide what to do about the 2010 estate tax expiration. Because the estate tax also rises next year, Mr. Cundiff, added, giving large gifts this year makes sense. “In a lot of cases, adult children are just waiting for their inheritance. This is the pushover to make that transfer now,” he said.
James H. Cundiff, Private Client
“Wealthy Lock In Low Gift Levy as Time Runs Out on 0% Estate Tax”
Bloomberg, October 7, 2010
Domingo Such was quoted in a dispatch on how wealthy individuals are taking advantage of this year’s elimination of the estate tax and reduction in the gift tax. He mentioned one client who gave her children half of her multimillion dollar fortune this year, reflecting the fact that she may have reduced her ultimate estate tax bill up to 40 percent by doing so. “This is the lowest rate the gift tax has ever been at; it’s only going to get higher,” Mr. Such added.
Domingo P. Such III, Private Client
“How to Play the Tax War”
Wall Street Journal, September 11, 2010
Carol Harrington addressed estate and gift tax issues in an extensive story about tax law issues facing Congress yet this year. Congress allowed the estate tax to expire 2010, but unless Congress acts the gift tax rate will rise in January and the generation-skipping tax will return. It is unclear how Congress will deal with these issues when considering the fate of the estate tax. Ms. Harrington said it would seem unfair to impose the taxes retroactively for 2010 this late in the year, but added, “If they [Congress] are hunting for pennies in the sofa cushions, who knows what will happen?” She is advising wealthy clients to plan for taxable gifts in 2010 but not to act until December, at which point the law could be clearer and unnecessary taxes could be avoided.
Carol A. Harrington, Private Client
Henry Christensen III was quoted by the New York Times on September 7 concerning efforts by the Tate Modern, the first museum in London devoted solely to modern art, to raise funds for an expansion. Mr. Christensen, a trustee of American Patrons of the Tate, a tax-exempt fundraising group, called the effort to secure contributions “a giant challenge” but added that the museum’s activity to secure U.S. donors has been “unabated even in this economy.”
Henry Christensen III, Private Client
Julie Kwon was pictured August 30 in The National Law Journal, which noted that she has rejoined McDermott as a partner in the Menlo Park, CA office, focusing on estate planning issues. Ms. Kwon was previously philanthropic adviser for Stanford University.
Julie Kwon was mentioned by Law.com on August 23, which noted that she had rejoined the firm as a private client group partner in the Silicon Valley office and will advise clients on estate planning, transfer tax, charitable planning and exempt organization compliance issues. Ms. Kwon had previously been a partner in McDermott’s Chicago office, but most recently was philanthropic adviser at Stanford University.
Henry Christensen was quoted in the Washington Post on July 14 concerning the estate tax implications of New York Yankees owner George Steinbrenner's death. Steinbrenner's personal fortune has been estimated at over $1 billion, and Mr. Christensen noted that the amount of the estate subject to tax could have been "substantial" had not Congress allowed the estate tax to lapse for 2010. "Because of Mr. Steinbrenner's public name and stature, his death may draw the attention of Congress -- they simply have to decide what do [about the tax]," Mr. Christensen declared.
Henry Christensen III, Private Client, Trust & Estate Controversy
"Top 25 Tax & Trust Solicitors"
Spear’s Wealth Management, 1 July 2010
Martyn Gowar was ranked among the Top Five of the Top 25 Tax & Trust Solicitors in London.
Martyn Gowar, International Private Client, London, Private Client, Tax, Tax - London
Martyn Gowar was quoted inLegal Business (May 2010) on wealth management.
Martyn Gowar, London, Private Client
Richard Lang spoke to Forbes.com (May 24) about the great uncertainty being caused for his clients by the expiration and possible retroactive reinstatement of the federal estate tax for 2010. He cited one estate where the inheritor’s tax could range from 53 percent to 0 percent, and another where the surviving spouse could either get all of a modest estate, or see it all go to the children from the decedent’s first marriage, depending on what Congress does with the tax. “It’s wacky to have so many different scenarios and not know what the tax is,” Mr. Lang declared.
Richard A. Lang, Private Client
Martyn Gowar was named “Private Client Lawyer of the Year” at the recent Citywealth Magic Circle Awards (14 May 2010). In addition, the Firm was runner up in two other nominated categories ''International Law Firm of the Year'' and ''Industry Newcomer of the Year”, while associate Claire Murray was named runner up for the Tomorrow Club ''Woman of the Year” award.
Martyn Gowar, Claire Murray, London, Private Client
Carol Harrington commented on the 2010 expiration of the federal estate tax for Bloomberg.com on May 7, calling the estate planning problems that it creates “a total, complete nightmare.” She cited the example of one client, a small business owner who died suddenly this year. Ms. Harrington is uncertain how to settle the client’s estate because the tax could be brought back retroactively. “We would normally be looking at what we were going to do to raise money to pay the taxes, and what our options are,” she said. “We have no idea whether we’ll even owe the estate tax or not, but it would be hundreds of millions of dollars.”
Carol A. Harrington, Private Client
James Cundiff was quoted in the May 2010 issue of Financial Advisor Magazine regarding tax legislation pending in Congress that could put restrictions on grantor retained annuity trusts (GRATs). The trusts have been a popular strategy for transferring assets free of gift tax, but Mr. Cundiff expects the GRAT restrictions to become law. “There definitely has been some momentum building on this for over a year,” he said. “With that kind of background, you get the feeling it’s inevitable.”
James H. Cundiff, Private Client
Timothy Halleron was mentioned by The National Law Journal (April 12) as having joined the Firm’s private client practice in the Chicago office. Mr. Halleron, who previously was with Winston & Strawn, will focus on trusts and estates planning, administration and litigation.
L. Timothy Halleron, Private Client
Richard Lang was quoted on March 24 by a Forbes.com story about pending restrictions on grantor retained annuity trusts (GRATs), which allow rich families to pass on wealth while sharply cutting estate and gift taxes. New legislation would require a GRAT to last at least 10 years, and Mr. Lang noted that “someone who is 70 might be comfortable doing a series of two-year GRATs, but a 10-year GRAT would be a riskier proposition.” He also noted that the legislation essentially bars a GRAT from zeroing out, meaning that it would still contain taxable income. For those structuring a GRAT, he said, the change means “they’d have skin in the game. That’s a new risk.”
Richard A. Lang, Private Client
Carol Harrington was quoted by the New York Times on February 18, in a story about how the failure by Congress to address the expiration of the estate tax at the end of 2009 is causing uncertainties that could paralyze the resolution of financial affairs after a death. Speaking of the inability of estate planners to address financial complications for persons who lose a loved one this year, Ms. Harrington declared, “It’s a sad situation that the government lets us twist in the wind while people have to make decisions.” She cited as an example the need for executors to delay selling assets in an estate because the tax implications of a sale are unclear.
Carol A. Harrington, Private Client
Carol Harrington told Law.com on February 2 (in a story also carried that day in The National Law Journal and The Recorder) that she is one of many estates and trusts lawyers whose clients need advice and counseling about their legal documents after Congress failed to reinstate the federal estate tax that expired on December 31, 2009. “This is a huge time-waster,” Ms. Harrington said, speaking of a review she is making of a 125-page list of clients who might need help. “We’re going to spend hundreds of hours just trying to figure out what it all means.”
Carol A. Harrington, Private Client
Henry Christensen was quoted by Forbes.com on January 19 concerning the impact that the 2010 expiration of the federal estate tax will have on wealthy individuals and families. “The longer the estate tax lapse lasts, the more clients are going to begin putting real thought into how much they want to give to charity and how much they want to give to their family,” he stated. Mr. Christensen cited the example that a client may change the substantial part of his estate earmarked for charity into a conditional charitable gift, and added: “If the estate tax is eliminated, the amount going to charity will be dramatically reduced because more can be given to the family at an acceptable (tax) cost.”
Henry Christensen III, Private Client
Carol Harrington commented about the 2010 expiration of the federal estate and generation-skipping taxes for the Chicago Daily Law Bulletin on January 5. She noted that both lawyers and clients were surprised that Congress allowed the taxes to expire and added that she is telling clients, “particularly if they are elderly or ill, [that] they should review their estate plan to make sure it works properly if they were to die while there was no estate or generation-skipping tax.” The taxes are scheduled to return in 2011.
Carol A. Harrington, Private Client
2009
Carol Harrington was quoted on the potential 2010 expiration of the federal estate tax due to a 2001 tax cut. "We don't know what to tell our clients.... Nobody...thought Congress would be this irresponsible in dealing with a situation that they had on the horizon for nine years" (Washington Post, Dec. 19). Although Congress may make the tax retroactive, "there are some people who will take that bet" that it won't, which "could be a pretty big advantage if Congress is so dysfunctional" as not to act (Bloomberg, Dec. 21; Denver Post, Dec. 28). Meanwhile, the expiration "bring[s] potential planning opportunities but also dilemmas, because we don't know what will happen" (Wall Street Journal, December 19). In short, she sees "a disaster even if you are in favor of repeal" (Reuters, Dec. 18), because estate planners "may have to change every other client document....The uncertainty is paralyzing" (Forbes, Dec. 17).
Carol A. Harrington, Private Client
Carol Harrington was quoted on December 21 by Business Week.com in a Bloomberg News story concerning the 2010 expiration of the federal estate tax. Ms. Harrington noted that, although Congress may reinstate the tax and make it retroactive on those individuals who used the expiration to transfer wealth at a steep tax discount, “There are some people who will take the bet” that this will not happen. “It could be a pretty big advantage if Congress is so dysfunctional that retroactivity is no better than a 50-50 bet,” she added.
Carol A. Harrington, Private Client
Judith McCue was cited in a December 14 Forbes.com review of important estate planning steps. Concerning the issue of titling financial assets, Ms. McCue warned that married couples whose wills set up credit shelter trusts that preserve the state and federal estate tax exemption of the first spouse to die must hold the assets in the name of each spouse separately. Also, individuals who plan to have their estates distributed through living trusts must retitle their assets in the name of the trust.
Judith W. McCue, Private Client, Trust & Estate Controversy
Domingo Such was quoted in William Blair & Company’s Client Focus (third quarter 2009) concerning the wealth transfer opportunities afforded by the current economic environment to strengthen estate plans. He noted that, with many asset values well below their highs, placing assets in new grantor retained annuity trusts and charitable lead annuity trusts will allow them to appreciate faster than the “hurdle rate” that is tied to today’s extremely low interest rates. “It’s a wonderful time to transfer assets” to these and other trusts, Mr. Such said, because of the current potential to minimize transfer taxes. He also suggested that investors take advantage of the gift tax annual exclusion for gifts to an unlimited number of recipients in 2009.
Domingo P. Such III, Private Client
Martyn Gowar and Andrew Vergunst were mentioned in The AmLaw Daily (September 11) for joining McDermott and establishing a new private client practice group in the Firm’s London Office. Mr. Gowar was formerly with Lawrence Graham, and Mr. Vergunst had been with Maitland.
International Private Client, Private Client
Henry Christensen, Martyn Gowar and Andrew Vergunst were featured in the Times Online (September 10) regarding their move to McDermott build an international private client practice. Mr. Christensen said, "For many clients, international estate planning is a key concern. The addition of Martyn and Andrew to the team means that McDermott is now the first major US firm to put in place an international private client team in London."
Henry Christensen III, International Private Client, Private Client
Neil Kawashima commented for The Wall Street Journal on August 8 concerning a bill introduced in the U.S. Senate to make it easier for wealthy collectors to donate artwork for museums. The bill, introduced by New York Senator Charles Shumer, attempts to reverse recent declines in donations by allowing donors 20 years to complete their gift and letting them take a tax deduction on some of the appreciation. “This bill remedies some of the problems with respect to the current law, but it doesn’t go far enough,” said Mr. Kawashima.
Neil T. Kawashima, Private Client
Domingo Such is quoted in a May 6 story by Lawyers USA about the booming demand for trust and estate planning work in today's economic climate. Mr. Such attributed his strong volume of work to "the perfect storm of events: low valuations, low interest rates, expected changes in federal tax policies – it just creates a tremendous estate planning environment."
Domingo P. Such III, Private Client
Neil Kawashima is mentioned in an April 7 story by The Wall Street Journal concerning defective grantor trusts. The trusts can be used to move money out of taxable estates and transfer gains to heirs tax-free, and despite their risks have seen increased interest in the wake of the market declines in real estate and stocks. Mr. Kawashima expects that he will increase the number of these transactions he executes this year by nearly one-third.
Neil T. Kawashima, Private Client
Neil Kawashima was quoted on March 2 in The Chronicle of Philanthropy regarding President Obama's proposal to reduce the value of the charitable deduction for wealthy Americans. Mr. Kawashima commented that people who are considering types of giving that offer one-time, upfront charitable deductions on their federal taxes may especially be tempted to consider acting before the deduction rate falls. Although, Mr. Kawashima said that fund raisers may have a difficult time enticing donors to give more due to the bad economy, "Most people are feeling tapped out already," he said.
Neil T. Kawashima, Nonprofit Organizations, Private Client, Tax Exemption
Neil Kawashima was quoted on March 1 in The Wall Street Journal regarding nonprofit organizations criticism of the proposed limits to charitable deductions in President Barack Obama's budget plan. Critics argue that the decreased deduction rates will be an additional hindrance to nonprofits already struggling with a steep drop-off in donations. However, the change could cause an increase in donations before the new law takes effect. Mr. Kawashima said, "The only silver lining out of this is charities can try to argue that donors should prepay pledges now so that they can take advantage of the deduction sooner rather than later."
Neil T. Kawashima, Nonprofit Organizations, Private Client, Tax Exemption
Read Moore was quoted in the January 27 issue of Chicago Daily Law Bulletin about how people are passing their businesses on to their children because the business is probably worth less in these economic conditions and the gift tax is based on the value of a business. "People figure if they're going to pay tax, they might as well pay it when it's lower. So we've seen a lot of that," said Mr. Moore. "If you don't own assets, creditors can't get them. Everybody thinks the party's over with low tax rates and all that. But it remains to be seen," Mr. Moore added.
M. Read Moore, Private Client, Trust & Estate Controversy
Carol Harrington was quoted in the January 26 issue of the Private Asset Management about how families with $30 million in assets have been looking to set up their own private trust companies. Carol noted that a trust company can share resources and infrastructure with a pre-existing single or multi-family office and the family can also bundle both investment advisory fees and trustee fees to further reduce costs.
Carol A. Harrington, Private Client, Trust & Estate Controversy
2008
Henry "Terry" Christensen III was quoted in the November 11 issue of The New York Times about how the current economic crisis is causing people to question how much they should give to charity while alive and what to leave in their estate plan. ''Will I have enough to retire comfortably?'' and ''Do my spouse and children need a larger inheritance than I previously assumed?'' are among the issues distracting donors from philanthropy, leaving charity ''a second-class beneficiary,'' said Mr. Christensen.
Henry Christensen III, Private Client
Henry "Terry" Christensen III was quoted in the November 21 issue of the Chicago Tribune about so-called qualified personal residence trust, or QPRT, which allows homeowners to live in a property for many years before passing it on to their heirs. He commented that McDermott has executed about 50 percent more QPRTs earlier this year than it did two years ago. Mr. Christensen says that the trusts are especially popular in California and Florida, where home prices have dropped the most.
Henry Christensen III, Private Client
Henry "Terry" Christensen III was quoted in the November 2 issue of The State about so-called qualified personal residence trust, or QPRT, which allows homeowners to live in a property for many years before passing it on to their heirs. He commented that McDermott has executed about 50 percent more QPRTs earlier this year than it did two years ago. Mr. Christensen says that the trusts are especially popular in California and Florida, where home prices have dropped the most.
Henry Christensen III, Private Client
Henry "Terry" Christensen III was quoted in the October 30 issue of The Wall Street Journal about so-called qualified personal residence trust, or QPRT, which allows homeowners to live in a property for many years before passing it on to their heirs. He commented that McDermott has executed about 50 percent more QPRTs earlier this year than it did two years ago. Mr. Christensen says that the trusts are especially popular in California and Florida, where home prices have dropped the most.
Henry Christensen III, Private Client
Carol Harrington, George Heisler, Henry "Terry" Christensen and Jonathan Lurie were quoted in the August/September issue of Private Wealth Magazine on McDermott's elite Private Client Department. "Within a law firm, a department or practice group needs to be successful vis-à-vis the other departments in order to be able to grow or receive capital when necessary," explained Mr. Heisler. "Our private client group is very strong internally, but I know lawyers at other firms who are not being permitted to build their groups because they're not deemed to be profitable enough," he added. Working in estate planning, one needs not only technical skills, but people skills as well. "The single most important factor in estate planning is understanding your clients and having a genuine concern for them...," Mr. Lurie said.
Henry Christensen III, Carol A. Harrington, Quentin G. Heisler Jr., Jonathan C. Lurie, Private Client
Read Moore was quoted in the April 21 edition of The New York Times about how if you help a family member and the gift exceeds a certain value and the IRS catches it, you could be forced to pay a gift tax as well as interest. One strategy for subsidizing relatives without having to pay gift tax is to pay medical and educational expenses. Especially with elderly parents, the chance to pay for medical expenses is an ''overlooked opportunity,'' said Mr. Moore.
David DeYoe was quoted in the March issue of Worth Magazine regarding the risks related to putting a private plane in an LLC. Mr. DeYoe discussed how private planes held in LLCs could be viewed as commercial aircrafts by the FAA, which could in turn invalidate insurance and legal protection. Under these circumstances "you haven't shielded anything," Mr. DeYoe said.
David P. DeYoe, Aircraft Acquisition and Operation, Corporate, Private Client
Julie Kwon was mentioned in the February 25 issue of Tax Analysts for forwarding the Department of Treasury an article commenting on proposed regulations on qualified trust severances under section 2642. The Treasury withheld the contents of the article for copyright reasons.
George Heisler was quoted in the February 5 issue of Chicago Daily Law Bulletin about the importance of legal services for the poor. "It's always seemed to me that we have a duty to provide service to the community using the talents we have," Mr. Heisler said.
Quentin G. Heisler Jr., Private Client
George Heisler was quoted in the February issue of Chicago Lawyer in an article on what law firms are doing to define their cultures and separate themselves from the rest. "Part of the culture has to be that we are fair and supportive to our younger lawyers," Mr. Heisler said. "We spend very significant amounts of money training and developing new lawyers. We are assuming in the highly technical world we exist in that most schools don't prepare our lawyers for the highly technical practice areas we have. There has to be a commitment to that teaching."
Quentin G. Heisler Jr., Private Client
2007
Neil Kawashima was quoted in the December 17 issue of Crain’s Chicago Business about how banking institutions that cater to high net worth families are discovering that helping clients give money away helps the banks, too. "It's the good old-fashioned profit motive," Mr. Kawashima said.
Neil T. Kawashima, Private Client
David Baker was quoted in the December 4 issue of The San Diego Union-Tribune about how a recent lawsuit revealed that the Evans Hotels family, the San Diego company that operates The Lodge at Torrey Pines, the Bahia Resort Hotel and the Catamaran Resort Hotel is split over trusts. "The trusts were being used as sort of a low-interest bank account for the businesses," said Mr. Baker.
David A. Baker, Private Client
Henry "Terry" Christensen III was mentioned in the November 14 edition of The Wall Street Journal for joining McDermott and his continued representation of long term client, Maurice R. "Hank" Greenberg, the former American International Group Inc. chief executive. Mr. Greenberg commented that Mr. Christensen is a "man of integrity and loyalty."
Henry Christensen III, Private Client
Richard Dees was quoted in the November 14 edition of The New York Times about how business owners need to start thinking about estate planning, since the federal estate tax, with a top rate of 45 percent, can have a big effect on the business left behind, and planning now is the best way to manage that. "First, divide the business into voting and nonvoting shares, even if you must recapitalize the company," said Mr. Dees. "Ideally, voting stock should make up no more than 10 percent of the total company shares," he added.
Richard L. Dees, Private Client
Henry Christensen III was mentioned in the November issue of Private Wealth for joining and heading McDermott’s private client practice in New York.
Henry Christensen III, Private Client
Domingo Such was featured as the Planner of the Month in the October 29 issue of Life Insurance Law Newsletter.
Domingo P. Such III, Private Client
Henry Christensen III was mentioned in the October 22 issue of The New York Sun for being honored at the the 20th anniversary of the Prospect Park Alliance.
Henry Christensen III, Private Client
Carol Harrington was quoted in the August 29 issue of Bloomberg and the August 30 issue of the Kansas City Daily Record on how Leona Helmsley, the late real estate developer, left $12 million to her Maltese dog, Trouble, which received a larger share of her $4 billion estate than any of her grandchildren. Ms. Harrington hadn't heard of anyone leaving as much as Trouble will receive.
Carol A. Harrington, Private Client
Jay Rivlin was mentioned August 21 edition of The Wall Street Journal and the August 16 issue of The Daily Deal for joining McDermott’s Private Client Department in New York.
Jay Rivlin was mentioned August 14 on Reuters online for joining McDermott’s Private Client Department in New York.
Henry "Terry" Christensen III was mentioned in Bloomberg on July 23, the July 25 editions of The Wall Street Journal and the New York Law Journal and the August 13 edition of Crain's New York Business for joining McDermott’s Private Client Department in New York.
Henry Christensen III, Private Client
Julie Kwon was quoted throughout the article, “IRS Seeks Consistency For Estate And Trust Expenses Not Subject To 2% Floor; ‘Uniqueness’ Test Proposed” in the August 2 issue of CCH Federal Tax Weekly. Ms. Kwon was somewhat surprised that the IRS issued regulations at this time, because the Supreme Court has recently granted certiorari in one of the cases, W.L. Rudkin Testamentary Trust, that concluded the fees were subject to the two-percent floor.
George Heisler was quoted in the August issue of Chicago Lawyer in an article about law firm bullies. Mr. Heisler described a bully as someone who doesn’t participate in the firm’s mission. "I have been practicing 39 years and I’ve seen a whole lot of things happen,” Mr. Heisler said. “This law firm is a big part of my life. I don’t want to practice in an atmosphere that is corrosive and selfish, and an atmosphere where there is no collegiality, and no particular friendship," he added.
Quentin G. Heisler Jr., Private Client
Carol Harrington was quoted in the August 1 issue of The Wall Street Journal about how the Internal Revenue Service's proposed regulations say investment management and advisory fees paid by trusts or estates typically cannot be deducted in full. Under current tax law, certain costs may be deducted in full if they're paid or incurred in connection with the administration of an estate or trust and wouldn't have been if the property weren't held in the trust or estate. But "the language is ambiguous," said Ms. Harrington. "When smart judges come to different conclusions, it's pretty clear the language is unclear," she added.
Carol A. Harrington, Private Client, Trust & Estate Controversy
Ryan Harding was quoted in the July issue of Institutional Investor about how New Hampshire enacted sweeping new legislation designed to reposition the Granite State as the nation's friendliest jurisdiction for personal trusts, kicking off a multiyear effort to join the ranks of Delaware, South Dakota and Alaska, which have become havens for trust assets. "With this law you're going to consider New Hampshire one of the main contenders," Mr. Harding said. "These changes won't filter out to the rest of the country immediately," he added.
Ryan M. Harding, Private Client
Gordon Greenberg, Russell Hayman and Jonathan Lurie have been recognized as top lawyers in their industry by Super Lawyers in June 2007 as "Southern California Super Lawyers for the Family and Consumer." Mr. Greenberg and Mr. Hayman were recognized in the area of "When Disaster Strikes" and Mr. Lurie was recognized in the area of "Planning Your Future."
Gordon A. Greenberg, Russell Hayman, Jonathan C. Lurie, Health, Private Client, Trial
Domingo Such answered a reader question in the "Advisors' Forum" section of the April issue of Worth magazine about succession planning with a family business. "Although in the past it was uncommon for parents to discuss testamentary plans, today it is becoming an accepted and proactive practice," Mr. Such said.
Domingo P. Such III, Family Business Consulting Services, Private Client
Judith McCue was featured in an article in the March 2007 edition of the Leading Lawyers Network Magazine. The McCues, Judith and her husband Scott, were covered in the "Leading Couples" segment. They were noted for their separate successful estate and trust practices, as well as their love and support of the arts in Chicago. "Scott and I became estate planners by accident," Ms. McCue said, "so it's quite remarkable that we ended up doing something we both found incredibly enriching and fun."
Judith W. McCue, Private Client
2006
Domingo Such was recognized in the December 2006 issue of Robb Robert Worth magazine as one of the top 100 estate planning attorneys in the United States.
Domingo P. Such III, Private Client
Domingo Such was quoted in the October 2006 issue of Worth magazine about how rising interest rates are changing the relative attractiveness of some popular trust structures. Domingo designed a 10-year QPRT for a client with a second home in Lake Tahoe a decade ago, another period when interest rates were high and real estate prices softer. "Real estate prices in that area have about doubled in that period," he said. Since the trust ended, "the kids have had the use of the house and the benefit of all that accumulated value," he added.
Domingo P. Such III, Private Client
Joseph Rubinelli was quoted in the Fall 2006 issue of Wealth in an article about the challenges faced by estate planners as Congress continues to debate revisions to the federal estate tax. Mr. Rubinelli said, "Your plan needs to take into account your real beneficial priorities, so tax law changes don't leave a lopsided estate plan."
Joseph O. Rubinelli Jr., Private Client, Tax
Neil Kawashima was quoted in the September 13 issue of The New York Times about how directors and trustees of the nation's top art museums are preparing a major lobbying effort to reverse a federal tax provision approved last month that they say will significantly harm their ability to acquire new artworks. Under the new changes, there could be significant estate tax penalties if donors make fractional gifts and then die while the work is still in their possession. Mr. Kawashima commented that as a result, some lawyers are now advising clients to stop giving fractional donations. "You can't predict when you'll die or how much the painting will appreciate, so my advice would be, don't do it," said Mr. Kawashima.
Neil T. Kawashima, Private Client
Carol Harrington was quoted in the September 4 issue of Fortune magazine about the U.S. Patent and Trademark Office granting patents to people who claim to have invented novel ways of avoiding taxes. "If you can patent an interpretation of the tax law, why not patent anyone's legal advice?" Ms. Harrington said.
Carol A. Harrington, Private Client, Tax
Carol Harrington was quoted in an August 30 article in Fortune Magazine in an article that explored the recent trend of patenting tax shelters and loopholes. "If you can patent an interpretation of the tax law, why not patent anyone's legal advise?" Ms. Harrington said. "Then you could say people being prosecuted for murder can't use a certain defense without paying a licensing fee. Something is seriously wrong with that in my view," she added.
Carol A. Harrington, Intellectual Property, Private Client
Domingo Such was quoted in the July 20 issue of The Wall Street Journal about the tax implications for money sent overseas. "There should be no U.S. gift or income tax consequences if money is sent directly from a foreign person to a U.S. bank account," said Mr. Such.
Domingo P. Such III, Private Client, Tax
Frank Nitikman was featured as the "Planner of the Month" in the July 10 issue of Life Insurance Law Newsletter.
Carol Harrington was mentioned in the April 9 edition of the Chicago Tribune regarding being named chair of McDermott's Private Client Department.
Carol A. Harrington, Private Client
Q. George Heisler and Carol Harrington were mentioned in the March 20 issue of the Chicago Daily Law Bulletin and the March 29 issue of the Daily Deal about being named partner-in-charge of McDermott's Chicago office and being named chair of the Firm's private client department, respectively.
Carol A. Harrington, Quentin G. Heisler Jr., Private Client
Lazar Raynal was listed as the lawyer representing Liesel Pritker in the $900 million settlement of Pritzker v. Pritzker, the largest settlement in Crain's Chicago Business’s list of Illinois’s largest verdicts and settlements of 2005 published on February 20.
Lazar P. Raynal, Private Client, Trial, Trust & Estate Controversy
2005
Richard Dees was recognized in the December 2005 issue of Robb Robert Worth magazine as one of the top 100 estate planning attorneys in the United States. The attorneys were identified through a nomination process in which the publication reached out to financial advisors, family office executives, accountants, consultants, academics and others who work regularly with estate planning attorneys.
Richard L. Dees, Private Client
Richard Dees was quoted in the November 2005 issue of Wealth Manager magazine in an article about how estate taxes can present difficulties for family-business owners so lawyers are encouraging clients to plan ahead. "Taxes can be the most important [issue] after making sure there's a team in place that can continue the operations of the business if something happens to the owner," Mr. Dees said.
Richard L. Dees, Private Client
McDermott was recommended in Der Syndikus - Jahrbuch 2005 - for their tax practice: "Under direction of Ralf Eckert the tax practice of McDermott Will & Emery Rechtsanwälte Steuerberater LLP advanced very well. With the lateral hire of Arndt Raupach and three colleagues of Raupach & Wollert-Elmendorff Rechtsanwaltsgesellschaft mbH in the summer of 2004 the team got extra know-how. McDermott advises very well-known companies as well as important private clients."
Arndt Raupach, Germany, Private Client, Tax, Tax - Germany
Domingo Such was quoted in the Spring 2005 edition of Stages, in an article about how the current sunset provisions in tax laws may affect your financial plans and suggestions on how to be prepared. One suggestion is to be realistic about federal estate-tax changes. "In 2011, the applicable exclusion amount will go back down to $1 million and the top tax rate will rise to 55%," noted Mr. Such. He and other experts expect these rules to change again, although there are no guarantees.
Domingo P. Such III, Private Client, Tax
McDermott Will & Emery's Tax Practice was ranked fifth out of 100 in terms of size with our tax lawyers representing 19% of the total number of lawyers in the firm. Published by Tax Business in its January/February 2005 issue, the survey also ranks our tax practice among the top five in firms who are "putting tax first," and in the top 10 as "expertise in tax."
Employee Benefits, International, Private Client, Tax
Domingo Such was quoted in the January 2005 issue of Worth magazine in regard to incentive trusts. Mr. Such commented that a way to add flexibility to an incentive trust, or any trust designed to benefit multiple generations, is to include a limited power of appointment that gives each generation some ability to amend the trust. This tactic gives beneficiaries the ability to adjust, for their own heirs, any of the original grantor's instructions, that may become outdated.
Domingo P. Such III, Private Client
2004
David Herpe was quoted in the March 15 issue of Forbes regarding recently implemented estate tax rules under the 2001 federal tax legislation, and recent state legislative changes, which can cost individuals millions in estate taxes depending on the state in which they reside at death. The article mentions that Mr. Herpe advised a client that if he died in 2004 his $50 million estate could owe $7.5 million in tax to Illinois, on top of the $21 million it would have to fork over to the feds. But if he changed his legal residency to Florida, where he owned a condominium, his heirs would pay only federal tax.
David A. Herpe, Private Client, Tax
David Fuller was quoted on the front page of The Washington Post business section on January 20 in an article reporting on tax breaks for company aircraft. Mentioning MWE's recent seminar on owning and operating private aircraft for business owners, Mr. Fuller stated that considerable tax advantages are available for such aircraft. Although noting limitations exist, David explained that an S corporation shareholder who uses a plane for travel that produced $5,000 in personal taxable income might receive $100,000 in deductions as his or her share of the plane's cost, for a net deduction of $95,000. "It's a great benefit," commented Mr. Fuller
, Aircraft Acquisition and Operation, Executive Compensation, Private Client, Tax
2003
On December 12, Carol Harrington was quoted in Business Week regarding changes in estate taxes that are taking place in a number of states. Illinois is following the federal exclusion for estate taxes, unlike some other states, but it will freeze its exclusion at $2 million starting in 2009, commented Ms. Harrington.
Carol A. Harrington, Private Client
James Cundiff was quoted in the Chicago Tribune on December 7 regarding recent regulation changes in the death tax. The Illinois death tax, signed into law in June, is applicable to taxable estates that exceed $1.5 million in 2004. “For example, if a widow dies in Illinois in a house worth $900,000 and other assets worth $2 million, her estate would pay $129,900 more to the State of Illinois than it would have if the state had not passed this new death tax legislation,” commented Mr. Cundiff.
James H. Cundiff, Private Client
James Cundiff and Domingo Such were quoted in the November 5 issue of The Wall Street Journal regarding the effect of the Economic Growth & Tax Relief Reconciliation Act of 2001 which eased federal taxes on estates but also had the effect of reducing tax revenue to states. When state rules were more unified, moving to another state held "no estate tax advantage," Mr. Cundiff commented. Messrs. Cundiff and Such outlined the differences between states with the example that if you are living in Illinois with a $25 million estate, your heirs will likely pay $1.73 million more if you die in Illinois than if you moved to Florida in 2003; and the difference rises to a high of $2.6 million in 2004.
James H. Cundiff, Domingo P. Such III, Private Client
Judith McCue was quoted in the December 2002/January 2003 issue of Bloomberg Wealth Manager in an article addressing the transition of business responsibilities and assets when a business leader has a fading mental capacity. Ms. McCue, an estate planning attorney, commented that the "goal is to have a seamless transition of power when clients become incapacitated."
Judith W. McCue, Private Client
2002
Judith McCue was quoted in the November 2002 Bloomberg Wealth Manager in an article addressing the terms of an aging income trust and the needs of its beneficiaries. Ms. McCue commented that the hourly fees for attorneys, accountants and financial advisors do add up so it is "wise for beneficiaries to have ramifications of such a conversion reviewed by independent counsel."
Judith W. McCue, Private Client
Judith McCue was mentioned in the October 21 issue of The Chicago Daily Law Bulletin in regard to receiving the Austin Fleming Distinguished Service Award from the Chicago Estate Planning Council.
Judith W. McCue, Private Client
James Trapp was quoted in the September issue of Practical Accountant in regard to the fluctuation of profitability for family businesses.
James M. Trapp PC, Family Business Consulting Services, Private Client
Carol Harrington was quoted in the July 11 issue of The Wall Street Journal regarding the disposal of remains, in light of the disagreement between Ted Williams' next of kin. The article addresses various state laws in regard to the written wishes of the deceased. Ms. Harrington commented that including your request in your will is not the best option in many cases.
Carol A. Harrington, Private Client
David Baker was mentioned in the May issue of Chicago Lawyer in regard to his successful planning and editing of Illinois Estate, Trust and Guardianship Litigation.
David A. Baker, Private Client, Trust & Estate Controversy
Judith McCue was mentioned as the recipient of the Austin Fleming Distinguished Service Award in the December 2002 issue of the Chicago Lawyer.
Judith W. McCue, Private Client
2001
Carol Harrington was quoted in the December 20 issue of Financial Times in regard to changes in the gift and estate tax and generation-skipping transfer tax as of January 1. Ms. Harrington commented on the provision included in the new tax bill that permits taxpayers to gain permission from the IRS to allocate the GST exemption retroactively. She said the provision is good for those who originally failed to allocate to their gift.
Carol A. Harrington, Private Client
Judith McCue, noted as a member of McDermott Will & Emery and an officer of the American College of Trust and Estate Counsel, was quoted in the November 25 issue of the Chicago Tribune in regard to philanthropically minded individuals wishing to benefit charities in the wake of September 11 and recent stock market downturns. Ms. McCue commented that recent changes in the rules governing minimum distributions from individual retirement accounts and IRAs make it easier to name charities as beneficiaries of such accounts and plans.
Judith W. McCue, Private Client
Carol Harrington was quoted in the November 6 issue of the Chicago Tribune. The personal finance column addressed Americans' increased need to make certain their family is taken care of long-term. Ms. Harrington commented on the difficulties of realizing the need for a will and outlines some of the will and tax considerations that should not be overlooked.
