EstateSUNDAY, JANUARY 6, 2019 Planning A SPECIAL ADVERTISING SUPPLEMENT TH

2ANNUAL ESTATE PLANNING GUIDE

You and Your Wealth: Recent Tax Laws and other Important Developments

Contents contributed by members of the Palm Beach County Estate Planning Council, Inc. T2 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter

DISCLAIMERS A Message from the President EstateSUNDAY, JANUARY 6, 2019 Planning A SPECIAL ADVERTISING SUPPLEMENT IRS Circular 230 dis- closure: To ensure compli- TH ance with requirements imposed by the IRS, we inform you that any U.S. Take Control Over federal tax advice con- tained in this Supplement in not intended or written 2ANNUAL ESTATE PLANNING GUIDE to be used, and cannot be Your Financial Future used, for the purpose of (i) You and Your Wealth: Recent Tax Laws and other Important Developments avoiding penalties under the Internal Revenue Code ‘The articles contained in this 20th edition of the Estate Planning Contents contributed by members of the Palm Beach County Estate Planning Council, Inc. or (ii) promoting, market- Supplement will help you understand some of the major issues you should The Palm Beach County Estate Planning Council, ing or recommending to consider when thinking about your own personal situation.’ Inc. is the resource for estate planning professionals another party any transac- in Palm Beach County. The two key purposes of the tion or matter that is con- —David Holland tained in this document. Council are to increase the overall knowledge of its The Palm Beach Coun- membership and to enhance the professionalism and ty Estate Planning Coun- An estate plan major issues you interaction of the members for the benefit of their cil, Inc. provides the infor- is a vehicle that should consider clients and the public via academic exploration of mation in this Supplement gives you control. when thinking specific topics of common interest. and on its website as a ser- An estate plan, in about your own Professionals seeking membership information vice to its members and its essential form, personal situation. should contact Administrative Director Wanda H. the public. While the infor- Doumar at (561) 310-5442. mation in this supplement is a structured or- The Palm Beach and on its site deals with ganization of your County Estate legal and tax issues, it does assets and proper- Planning Council Estate Planning A special advertising section produced by the Marketing not constitute legal or tax ty into a plan that is a multi-disci- Department of The Palm Beach Daily News with contents advice. Please consult with carries out your plined organiza- prepared by members of the Palm Beach County Estate your own legal and/or tax Planning Council, Inc. adviser on your specific sit- wishes. A com- tion that supports prehensive estate the team concept uation. The Palm Beach For advertising information, County Estate Planning plan can contin- of estate planning. call The Palm Beach Daily News, (561) 820-3825. Council, Inc. does not war- ue these wishes Among our 175 rant or guarantee the accu- through death or members, you can Supplement Chairman: racy, availability or appli- your incapacity. find well-trained, Connie A. Eckerle, CPA cability of the content in Additionally, it extremely knowl- this Supplement or on its David Holland Supplement Co-chairman: website or on other sites to can accomplish edgeable estate Sasha Klein, J.D., LL.M. which it links. In no event much more. planning profes- will the Palm Beach Coun- A carefully implemented plan can help sionals who provide the tools needed to Supplement Assistant ty Estate Planning Coun- lower taxes, gain access to government implement your plan. With a collabora- Wanda H. Doumar cil, Inc. be held liable to benefits and protect your family from tive effort across disciplines, these profes- any party for any damag- Supplement Committee es arising in any way out of financial harm, whether from themselves sionals can help you preserve your wealth, Collin Albertsson the availability, use, reli- or the less scrupulous in society. and then in a tax efficient manor, assist Jennifer Eaton, Esq. ance on or inability to use In the past 10 years, we have seen nu- you in passing it on to the people and Patti A. Giarratano, CPA, MST Wil Goodison-Orr, CPA the Palm Beach County merous changes in the laws surrounding institutions that matter to you. Suzanne Holmes, CFP®, CAP® Estate Planning Council, these topics. Taxes and regulation have On behalf of the members of the Palm R. Marshall Jones, J.D., CLU®, ChFC®, AEP® Inc. Supplement or website created new planning opportunities but Beach County Estate Planning Council, I Ben Lasater or any information provid- Mark R. Parthemer Esq., AEP® ed by or through the Palm have also made some old opportunities hope you can benefit from the knowledge obsolete. It is important to understand and experience of our council members. David Reynolds, CFP® Beach County Estate Plan- Adam Slavin, CPA ning Council, Inc. Sup- your plan and to make sure it is accom- Please feel free to contact the authors Michael Stafford, Esq. plement or website or for plishing your goals. directly should you have any questions Stephen G. Vogelsang, J.D., LL.M. any claim attributable to Laws are not the only variables that regarding the information provided. This errors, omissions or other change with time; your family’s needs and supplement also contains a membership Palm Beach Daily News, 400 Royal Palm Way, inaccuracies in, or destruc- Suite 100, Palm Beach, Florida 33480 • (561) 820-3800 tive properties of any infor- goals are also constantly changing with directory at the end of the Supplement mation provided by or every life-changing event. with names of professionals ready to help Note: Opinions expressed in this supplement are those of the authors through the Palm Beach The articles contained in this 20th you with your plan. You can find more and do not necessarily reflect the views of the Palm Beach County Estate Planning Council, Inc. or its directors or of the Palm Beach County Estate Planning edition of the Estate Planning Supplement information on our Council and our Daily News. The Council disclaims all liability resulting from Council, Inc. will help you understand some of the members at pbcepc.org. opinions contained in the supplement. You should not act on these opinions without consulting your professional advisors. Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T3

AUTHOR AND ADVERTISER INDEX Palm Beach County Estate Planning Council, Inc.

Move for the Warm Weather, Beautiful Mystery Behind Cost of Insurance Increases Board of Directors Roster Beaches and Booming Economy? Or, Answered ...... 21 Favorable Tax and Asset Protection Laws? Adam D. Sendzischew and Sharon Lindsey, Jones President 3801 PGA Blvd., Suite 604 Decisions, Decisions… ...... 5 Lowry. *See ad, Page 21 DAVID E. HOLLAND, J.D., CFA, Palm Beach Gardens, FL 33410 Suzanne S. Weston, Chilton Trust. *See ad, Page 48 CFP® 561-626-2101 Fundamentals of International Estate Fiduciary Access to Digital Assets ...... 6 Planning ...... 22 Ameriprise Financial, Inc. [email protected] Joseph C. Pauldine, Cypress Trust Company. *See Patricia A Giarratano, Caler, Donten, Levine, Cohen, 11300 US Highway 1, Suite 600 ad, Page 6 Porter & Veil, P.A. *See ad, Page 22 Palm Beach Gardens, FL 33408 Director 561-383-3610 SASHA KLEIN, ESQ., LL.M., AEP® Don’t Fall Off the New York Tax Cliff! ...... 8 Your Life Changes: Is Your Estate Plan [email protected] Proskauer Rose LLP Lisa A. Schneider, Gunster. *See ad, Page 8 Keeping Up With You? ...... 23 2255 Glades Road, Suite 421 Randell C. Doane and Rebecca G. Doane, President-Elect When Family Business Owners Doane & Doane, P.A. *See ad, Page 23 Boca Raton, FL 33431 Get Divorced ...... 9 ANDREW SHAMP, J.D., LL.M. 561-995-4711 Karen Piershalski, Wilmington Trust. *See ad, Page 9 Designing Your Fountain of Youth: U.S. Trust [email protected] The Success Factors to Living Longer 132 Royal Palm Way Examining the enhancements in long-term and Well ...... 24 Palm Beach, FL 33480 Director care options ...... 10 Jennifer M. Eaton, Ballentine Partners. 561-653-5978 CARA LAMBORN, CFP® NSteven Hein, Hein Wealth & Tax Solutions LLC. *See ad, Page 24 *See ad, Page 10 [email protected] Jones Lowry Beware of Filing Requirements for Offshore 470 Columbia Drive, Suite 100-E 2017 Tax Cuts and Jobs Act Highlights for Holdings ...... 25 Vice-President Membership/ West Palm Beach, FL 33409 Business Aviation ...... 11 Nancy Crowder-McCoy and Stephanie Murray, Carr, Sponsorship 561-712-9799 Michael L. Kohner, CPA, CAP® & AEP® Riggs & Ingram LLC. *See ad, Page 25 SYNDIE T. LEVIEN, CFP® [email protected] HBK CPAs and Consultants. *See ad, Page 11 UBS Financial Services, Inc. Life Insurance Premium Funding: What to 3801 PGA Blvd., Suite 1000 Director Estate Planning for Families with Special- Look Out for and How to Implement ...... 26 CHRIS LOSQUADRO, MBA, Needs Children ...... 12 Joseph A. Kawczenski, Financial Architects Palm Beach Gardens, FL 33410 Mitchell I. Kitroser, Kitroser & Associates. Partners. *See ad, Page 26 561-776-2549 CPRES *See ad, Page 12 [email protected] Quantum Realty Advisors, Inc. Man-Made Diamonds Vs. Natural 4440 PGA Blvd., Suite 308 Who’s In and Who’s Out: Collecting Diamonds ...... 27 Vice-President Programming Palm Beach Gardens, FL 33410 Presidential Memorabilia ...... 13 Art Samuels, Estate Buyer *See ad, Page 27 MATTHEW N. THIBAUT, ESQ. 561-624-2680 Collin Sherman Albertsson, Doyle Auctioneer & Haselkorn & Thibaut, P.A. Appraisers. *See ad, Page 13 A Tax Planning Strategy for the Migratory [email protected] Client ...... 28 359 South County Road, Suite 101 Recent Case Law Provides a New Road Map David Reynolds, Spearhead Capital, LLC Palm Beach, FL 33480 Director for Deductibility of Family Office Expenses 14 *See ad, Page 28 561-585-0000 MARK R. PARTHEMER, ESQ., Stephen G. Vogelsang, Pressly, Pressly, Randolph & [email protected] AEP® Pressly. *See ad, Page 14 Does Bitcoin Belong in a Well-Rounded Bessemer Trust Investment Portfolio? ...... 29 Treasurer 222 Royal Palm Way Florida’s Decanting Statute Gets Better Cory F. Lyon, TFG Financial Advisors. *See ad, Page 3 STEPHANIE L. MURRAY, CPA, with Age ...... 15 Palm Beach, FL 33480 Matthew N. Turko, Haile Shaw & Pfaffenberger P.A. Trusts and Pass-Through Businesses Carr, Riggs & Ingram LLC 561-835-8322 *See ad, Page 15 May Qualify for Big Tax Breaks in 2018 ...... 30 33 SW Flagler Ave. [email protected] Adam Slavin, CPA, Berkowitz Pollack Brant’s Tax Stuart, FL 33994 Reduce Your Heirs’ Taxes via Basis Step-up Services. *See ad, Page 30 772-283-2356 Director Planning under the New Tax Act ...... 16 [email protected] MICHAEL P. STAFFORD, ESQ. Leonard J. Adler, Esq. and Mark R. Parthemer, Esq., Communication: The Key to Successful Farrell Fritz, P.C. Bessemer Trust. *See ad, Page 16 Transitions of Family Wealth Secretary and Values ...... 31 622 Third Ave., 37th Floor It Seemed Like a Good Idea Then, Cary Stamp, Cary Stamp Company. *See ad, Page 31 CONNIE A. ECKERLE, CPA New York, NY 10017 But Is it Time to Terminate Your Private Smolin Lupin & Co., LLC 212-687-1230 Foundation? ...... 17 Using a Medicaid Asset Protection 14155 US Highway One, Suite 200 [email protected] Cliff S. Gelber, Gerson Preston Klein Lips Eisenberg Trust® ...... 32 Juno Beach, FL 33408 Gelber. *See ad, Page 17 Darren J Mills, Esq., CPA, ChFC®, CLU®, Mills 561-231-5013 Elder Law LLC. *See ad, Page32 Intergenerational Split-Dollar Arrangements: [email protected] Administrative Director: What’s the “Big Deal”? ...... 18 What Is My Jewelry Worth? ...... 33 Director, Immediate Past Wanda H. Doumar R. Marshall Jones, JD, CLU, ChFC, AEP Hank Siegel, Hamilton Jewelers. *See ad, Page 33 Jones Lowry. *See ad, Page 18 President Phone: (561)310-5442. Fax: (561)575-2015 Charitable Gifting With Donor-Advised ANDREW R. COMITER, J.D., Email: [email protected] Maximizing Trust Planning Advantages Funds ...... 34 LL.M. Website: www.pbcepc.org with Delaware Trusts ...... 19 Ben Lasater, United Capital Financial Advisers. Address: 6671 W. Indiantown Road, Suite Kalimah Z. White and Suzanne Holmes, TD Wealth. Comiter, Singer, Baseman & Braun, *See ad, Page34 50-194, Jupiter, FL 33458 *See ad, Page 19 LLP T4 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter

Palm Beach County Estate Planning Council, Inc. DIAMOND SPONSORS ROUNDTABLE SPONSORS

Wilmington Trust, N.A. EstateBuyers.com Quantum Realty Advisors, Inc., SunTrust Private Wealth Management 2000 PGA Boulevard, Suite 400, 828 W. Indiantown Road, Suite 102, 4440 PGA Blvd., Suite 308, / GenSpring Family Offices North Palm Beach, FL 33408. Jupiter, FL 33458. (305)722-2753 or Palm Beach Gardens, FL 33410. (561) 624- 440 Royal Palm Way, Palm Beach, FL 33480. (561)630-2103 or dmcneal@ [email protected] 2680 or [email protected] (561)805-5765 or [email protected] wilmingtontrust.com PLATINUM SPONSORS

Andersen Tax LLC BDO USA, LLP Berkowitz Pollack Brant Celedinas Insurance Group One North Clematis, Suite 110, 1601 Forum Place, Carr, Riggs & Ingram, Comiter, Singer, Advisors and Accountants, LLP 140 Royal Palm Way, Suite 202, West Palm Beach, FL 33401. (561) 9th Floor, West Palm LLC Baseman & Braun LLP 777 S. Flagler Drive, Suite 225, West Palm Beach, FL 33480. (561) 805-6555 or randy.macpherson@ Beach, FL 33401. 33 SW Flagler Avenue, Stu- 3801 PGA Blvd., Suite 604, (561) 207-2810 or Palm Beach, FL 33401. (561) 361-2014 or art, FL 34994. (772)283-2356 253-9393 or mmontgomery@ andersentax.com [email protected] Palm Beach Gardens, FL [email protected] or [email protected] celedinas.com 33410. (561)626-2101 or [email protected]

HBK CPA’s & Consultants Jones Lowry Jupiter Medical Center Community Foundation for Palm 525 Okeechobee Boulevard, 470 Columbia Drive, Suite 100-E, Foundation Kitroser & Associates Beach & Martin Counties Suite 1140, West Palm Beach, West Palm Beach, FL 33409. (561) 1210 South Dixie Highway, Jupiter, 631 US Highway 1, Suite 406, North 700 South Dixie Highway, Suite 200, West FL 33401. (561) 469-5492 or 712-9799 or [email protected] FL 33458. (561)263-3761 or jennifer. Palm Beach, FL 33408. (561)721-0600 Palm Beach, FL 33401 (561)659-6800 or [email protected] [email protected] or [email protected] [email protected]

Seacoast Bank and Smolin, Lupin Wilmington Trust,N.A. TD Wealth Management Nicklaus Children’s Trust & Co., LLC 2000 PGA Boulevard, Suite 400, MorseLife Foundation 380 South County Road, 2nd Hospital Foundation 3001 PGA Blvd., Palm 14155 U.S. Highway One, North Palm Beach, FL 33408. 4920 Loring Drive, West Palm Floor, Palm Beach, FL 33480. 3100 SW 62 Avenue, Miami, FL Beach Gardens, FL Suite 200, Juno Beach, FL (561)630-2103 or dmcneal@ Beach,FL 33417. (561) 526-5877 (561)570-3528 or suzanne. 33155. (786) 624-2870 or joe. 33410. (561)351-3670 33408. (561)254-3031 or wilmingtontrust.com or [email protected] [email protected] [email protected] or michael.schmidt@ [email protected]. seacoastbank.com GOLD SPONSORS

Daszkal Bolton LLP Gerson, Preston, Klein, Caler, Donten, Levine, 4455 Military Trail, Lips, Eisenberg & Gelber, Burns Nevins Group of J.P. Cohen, Porter & Veil, P.A. Suite 201, Jupiter, FL BCG Valuations P. A American Cancer Morgan Securities 505 S. Flagler Drive, Suite 33458. (561)886-5205 or 65 South Main Street, Suite Society 3801 PGA Boulevard, Suite 900, West Palm Beach, FL 33401. [email protected] 7777 Glades Road, Suite 204, B200, Pennington, NJ 08534. 621 Clearwater Park 800, Palm Beach Gardens, FL (561)832-9292 or crubal@cdlcpa. Boca Raton,FL 33434. (561) 287- 561-261-2328 or tlavergne@ Road, West Palm Beach, 33410. (561)694-5664 or robert. com 4929 or [email protected] FL 33401. (561)650-0127 or bcgvaluations.com [email protected] [email protected]

U.S. Trust Key Private Bank UBS Financial Services, 132 Royal Palm Way, Haile, Shaw & Pfaffenberger Reverse Mortgage 3507 Kyoto Gardens Drive, Inc. Palm Beach, FL 3380. P. A ., Mills Elder Law LLC Funding LLC (561) 653-5978 or andrew. 660 U.S. Highway 1, 3rd Floor, North Suite 100, Palm Beach Gardens, 3801 PGA Boulevard, Suite FL 33410. (561) 775-6528 or an- 4440 PGA Boulevard, Suite 5201 Central Gardens Way, 1000, Palm Beach Gardens, FL [email protected] Palm Beach, FL 33408. (561)627-8100 or 600, Palm Beach Gardens, FL Suite 202, Palm Beach Gardens, [email protected] [email protected] 33410. (561) 776-2549 or syndie. 33410. (561) 472-0820 or djmills@ FL 33418. (561) 351-4461 or [email protected] millselderlaw.com [email protected] Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T5 Move for the Warm Weather, Beautiful Beaches and Booming Economy? Or, Favorable Tax and Asset Protection Laws? Decisions, Decisions…

By Suzanne S. Weston savings. By homesteading your such as mortgages. Your qualified Chilton Trust primary residence, the first $50,000 retirement accounts (IRA’s and of the property value is exempt 401K’s) and profit-sharing plans are When my husband and I moved to from property taxes, and there is a also exempt. Life insurance proceeds Florida from Manhattan, our friends cap on the increase of the proper- may be protected from the insured’s and family were skeptical. To them, ty’s annual assessment which is the creditors. And, medical savings this is the land of the early bird spe- lower of 3% or the change in the plans and 529 plans are exempt. cial and aging baby-boomers who Consumer Price Index. The cap is Florida also recognizes that prop- retired in “heaven’s waiting room”. valuable because it shelters proper- erty can be held jointly by spouses Vacation, yes. Full time, no way … ty taxes from drastically increasing as tenants-by-the-entireties. A Now four years later, we person- Suzanne S. Weston as many Florida home values have creditor of one spouse may not ally know these clichés are passé. significantly increased. attach the tenants-by-the-entire- Floridians is about 41 years (yes, it The secret is out. A great place to Obtaining Florida’s tax bene- ties asset unless both spouses are surprised me, too) per the World vacation, a great place to retire and fits and establishing your Florida indebted to the creditor. Population Review. a great place to work and raise a domicile can be simple by taking In the end, Florida’s tax savings Apart from quality of life (which family need not be mutually ex- a few steps such as filing a “Dec- and creditor protection benefits can continues to surpass our every clusive. Think I’m exaggerating? laration of Domicile”, registering provide your family with additional expectation) and career potential, Check out the facts. to vote, obtaining a Florida driv- resources to enjoy the Sunshine State the financial benefits of tax savings Per a December 2017 US Census er’s license, filing the Homestead and the comfort of knowing that and asset protection provided by Bureau report, Florida was the 2nd Exemption and becoming involved many of your assets are protected for Florida are also pretty motivating. highest state in the country (after in the community. However, it is retirement and your loved ones. Florida is one of the most Texas) for numeric growth from important to speak with your legal Albeit, if you are still missing the tax-friendly states. We have no 2016-2017. Florida is today the and tax advisors to avoid being occasional blizzard, tornado, wild- state income tax or state estate tax. third most populous state, having subject to income tax or estate tax fire or mudslide, then the benefits Wages, Social Security, pension and just passed New York, trailing only in another state. Depending on the of Florida that we cherish may not retirement income are not taxed lo- California and Texas. state, if you spend a certain amount be for you. Did I mention, we have cally. This can be a significant sav- The Florida Chamber Founda- of time or maintain certain connec- three major airports within a quick ings. If you live in a place that has tion recently reported the State’s tions in that state, then you may be drive or train ride away? a state and city income tax, such as economy topped $1 trillion in GDP subject to income tax in that state. New York City, you may pay up to for the first time, making it the Also, if you own real or tangible Suzanne S. Weston is Senior Vice Presi- 13% in state and local taxes. 18th largest economy in the world. personal property in a state that dent and Head of Fiduciary Services. Since Florida does not have a Larger than Saudi Arabia, Argenti- applies an estate tax, such property Ms. Weston received her B.A. from Hol- state estate tax, your loved ones na and Switzerland. may be subject to estate tax by the lins College and her J.D from the Univer- may receive more assets at your sity of South Carolina School of Law. She The Kiplinger Letter said Florida state where the property is located. death. By remaining a resident of is admitted to the South Carolina Bar. is one of the top 10 states with the In addition to the attractive tax a state that imposes an estate tax, fastest projected rates of job growth savings, Florida provides residents an such as New York, Massachusetts Chilton Trust, a private, independent in 2018, beating California and array of ways to protect their assets and Rhode Island, your estate may Trust Company, advises and provides New York. from creditors. The Florida Home- be taxed at a rate up to 16%. wealth management services including fi- Those are pretty attractive statis- stead statute protects your primary duciary services and investment solutions Florida’s Homestead Exemption tics for career seekers, which may residence, no matter the value, from to high net worth individuals, families also provides Floridians with tax explain why the median age of creditors with certain exceptions and foundations. T6 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter Fiduciary Access to Digital Assets

By Joseph C. Pauldine It may not seem like much, but of digital assets to a third person.” Cypress Trust Company think for just a minute about how These online tools are specific to much content each of us might have each custodian or provider. For Digital assets can take many that fall within the definition of dig- example, Facebook (as a custodian) forms in today’s electronic environ- ital assets. Facebook, LinkedIn and offers a “Legacy Contact” feature ment. A short list of examples might Instagram are all fairly common within its user settings. This means include websites/blogs, gaming today. Add to that content stored on a user can appoint a specific individ- characters, email and social media Google Docs, a Gmail account and ual directly within the application accounts, as well as photos/docu- thousands of photos uploaded to to interact with Facebook should the ments stored “in the cloud.” We can iCloud and you have a pretty good user pass away or become inca- expect that as technology continues Joseph C. Pauldine representation of an average indi- pacitated. The appointment of an to evolve, so will the nature of infor- vidual. individual through an online tool mation which falls into the defini- assets can have sentimental as well Now imagine that this individual supersedes any direction by way of a tion of “digital assets.” as possible intrinsic value. The Act has passed away. The custodians of will or a trust agreement. Taking effect in mid-2016, the outlines provisions that “owners” these accounts (for example, Google 2. Will, Trust or Power of At- Florida Fiduciary Access to Digital may consider incorporating into would be considered the custodian torney – Second in priority to an Assets Act addresses how an owner their estate plan to provide fiducia- of a Gmail account) have an obliga- appointment through a specific of digital assets can plan for their ries with the legal authority to ad- tion to protect the privacy of users online tool is the stated direction administration. Much like more minister and dispose of these assets and consequently would be unlikely an individual would incorporate common tangible property – art- as they would with more common to simply turn over the user’s con- into his or her top estate planning work, journals, jewelry – digital property. tent or reset a password to just any- documents. Including language to one. On the other hand, the fiducia- address digital assets in the prepa- ry/personal representative needs to ration or modification of wills and/ be able to thoroughly administer the or trusts is becoming more common decedent’s estate, inclusive of digital for this reason. assets. 3. Terms of Service Agreement The Act is intended to accomplish – Absent the appointment through two things: an online tool or specific direction 1. Give the personal representative within a will/trust/POA, the provid- or fiduciary the legal authority to er’s Terms of Service Agreement will administer digital assets in the same govern the disclosure of the digital manner as more common, tangible assets with that particular provid- property; and er. It is fair to say that only a small 2. Grant authority to the custodi- percentage of users actually take the ans of these assets to interact with time to read these, let alone under- the appointed fiduciary without stand them. As a result, relying on breaching a user’s expectation of these as a fallback plan could be privacy. problematic when administering an There are three ways that the Act estate. handles the disclosure of a user’s So the takeaway from all this is to digital assets. In order of priority, point out that legislation has been these are: adopted to address the disposition 1. Online Tool – An online tool of digital assets. With the priority is defined as “an electronic service ranking established within Florida provided by a custodian which al- statutes, the most effective way to lows the users to provide directions Please see PAULDINE, for disclosure or non-disclosure Page 35 Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T7 T8 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter Don’t Fall Off the New York Tax Cliff!

By Lisa A. Schneider exemption amount to approximately taxes). This effect essentially causes Gunster $5.6 million as of Jan. 1, 2019. wealthier New Yorkers to begin to Although the increase in the fall off the New York estate tax cliff Although the enactment of the New York estate tax exemption was once their taxable assets reach $5.6 Tax Cuts and Jobs Act at the end clearly motivated by the increase million. The wealthier the decedent, of 2017 created additional planning in the federal estate, gift and GST the deeper and more costly the fall. opportunities at the federal level, the exemptions, it has fallen short of So what is a wealthy New Yorker spread between the federal and New convincing New Yorkers to maintain to do? One option is to make gifts York State estate tax exemptions has residency in the Empire State. in order to reduce the New York tax- increased significantly creating an- As if the spread of $5.93 million able estate to $5.6 million. Although other compelling reason for wealthy Lisa A. Schneider (for 2018) between the federal and New York no longer has a gift tax, New Yorkers to migrate south for New York State exemptions is not if the donor dies within three (3) more than just the winter months. ed under federal law. The result was significant enough, the increased years after making a gift, the gift Back in 2014, in order to keep an increase in the New York estate New York State exclusion amount is brought back into the New York up with the then increased federal tax exclusion amount to the 2014 is not available to all New Yorkers. taxable estate. The ability to make estate, gift and generation-skipping federal exemption level of $5.25 Rather, a wealthier New Yorker is federal tax-free gifts is limited by the transfer (“GST”) tax exemptions of million. Without any further action subject to a phase out of the New current federal gift tax exemption of $5 million (indexed for inflation), on the part of the New York State York exclusion if his or her New $11.18 million or $23.36 million for New York increased its estate tax ex- legislature, the New York estate tax York taxable estate (plus certain married couples. It may be difficult clusion amount from $1 million to exclusion was set to increase along taxable gifts made within three (3) to find a wealthy New Yorker willing the exemption amount then provid- with the federal estate, gift and GST years of death) exceeds 100 percent to reduce his or her net worth from of the then-New York exclusion $11.18 million to $5.6 million (or amount. If a decedent’s New York from $22.36 million to $11.2 million taxable estate (plus taxable gifts if married). To make matters worse, made within three (3) years of unlike federal law, New York does death) exceeds 105 percent of the not recognize portability of the New then New York exclusion amount, York exclusion amount. Moreover, the benefit of the New York exclu- the super wealthy New Yorkers with sion amount is completely phased assets exceeding $16.78 million, or out. This means that the entire $33.56 million if married, cannot estate will be subject to New York gift assets to get below the New York State estate tax at a top rate of 16 estate exclusion amount without percent. paying a federal gift tax. As a re- For example, upon the death of sult, an appealing option may be to a New Yorker prior to Jan. 1, 2026 change domicile to a state like Flori- (the date upon which the increased da which does not have a state estate federal estate, gift and GST exemp- tax, and at the same avoid New York tion “sunsets,” reverting the exemp- income taxes altogether (for non- tions to pre-2018 levels (indexed for New York source income). inflation)) with a New York taxable Before making any gifts or com- estate of $11.18 million the dece- mencing a change of domicile to dent’s federal taxable estate would Florida, we recommend contacting be zero, but the decedent’s estate your tax advisor. would pay New York State estate tax on approximately $5.58 million (or Please see SCHNEIDER, $460,000 in New York State estate Page 35 Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T9

When Family Business Owners Get Divorced

By Karen Piershalski in collaboration with Diane Peterson McNeal Wilmington Trust Navigating the emotional and financial challenges of a divorce can be daunting enough. But isn’t a substitute for a plan. when a family business is part of the divorce proceedings, there are additional decisions to be made to Diane Peterson McNeal determine the future of the busi- As a business owner, you have a lot of people relying ness and the equitable distribution How determine the value of a business: on you. Do you have a plan in place for when you’re of its assets. can you the income approach; the mar- ready to transition your business? Is your vision for If only one spouse is involved in ket approach; and an asset-based ensure the the business clear? Will your employees, customers, the business and will continue to approach. They are not mutually people and family be well cared for? Wilmington Trust operate it as such, then an appraisal exclusive and a comprehensive you care has been helping business owners like you build of the business will be needed to analysis should consider each effective transition strategies for more than a determine its value for purposes about will method and detail why it may or century. The earlier you begin planning, the more of buying out the non-operating be taken may not be appropriate given the flexibility you’ll have – and the better protected your spouse. When combined with the care of circumstance. The income method business will be. balance of the marital assets, this requires the estimation of future in- when you For a deeper understanding of business transition valuation will provide the basis for come and conversion to value using move on? planning, contact Diane McNeal at 561-630-2103 or an equitable settlement. a discount or capitalization rate [email protected]. Download However, when both spouses are appropriate given the level of risk our research The Power of Planning at involved in running the business, of achieving expected returns. The wilmingtontrust.com/businessowners. other factors need to be considered. market approach is based on the Can you continue to work together principle of substitution. Compa- for your mutual financial well-be- rable private company sale trans- ing and to preserve the business? If actions or stock prices of publicly not, two choices remain: 1) Sell the traded companies can be used to business and split the proceeds; or capitalize the returns of the com- 2) One spouse buys-out the other. pany being valued. The asset-based WEALTH PLANNING | TRUST AND ESTATE SERVICES INVESTMENT MANAGEMENT | PRIVATE BANKING* A buyout requires a business ap- approach focuses on the balance praisal as well as a strategy to fund sheet and deriving a value through *Private Banking is the marketing name for an offering of M&T Bank deposit and loan products and services. the buyout. If the business has cash the hypothetical sale of the assets. Investments:• Are NOT FDIC-Insured • Have NO Bank Guarantee • May Lose Value flow to support financing, a loan Wilmington Trust is a registered service mark. Wilmington Trust Corporation is a wholly owned subsidiary A business appraiser will also of M&T Bank Corporation. Wilmington Trust Company, operating in Delaware only, Wilmington Trust, N.A., can be sought. Substitution of other take other factors into consider- M&T Bank, and certain other affiliates provide various fiduciary and non-fiduciary services, including marital assets can be an alternative trustee, custodial, agency, investment management, and other services. International corporate ation including employment agree- and institutional services are offered through Wilmington Trust Corporation’s international affiliates. to financing. ments, operating agreements, and Wilmington Trust Investment Advisors, Inc., a subsidiary of M&T Bank, is an SEC-registered investment shareholder agreements. Contracts advisor providing investment management services to Wilmington Trust and M&T affiliates and clients. Determining the value of the Loans, credit cards, retail and business deposits, and other business and personal banking services and Please see PIERSHALSKI, products are offered by M&T Bank, member FDIC. business ©2018 Wilmington Trust Corporation and its affiliates. All rights reserved. There are three approaches to Page 35 WP-0000425413-01 T10 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter Examining the enhancements in long-term care options

By Steven Hein care providers only, limits the op- old female putting $100,000 into a Hein Wealth & Tax Solutions LLC tions for care providers. long-term care annuity can ac- cumulate a pool of over $780,000 The cost of a private nursing Life insurance/long-term care of long-term care by age 85. This home in Florida averaged more Life insurance with a long-term product typically allows owners the than $106,000 in 2017. By 2047, care rider is growing in populari- flexibility to: (a) cash in the prod- that same cost is projected to grow ty because there is no scenario in uct and get their money back or (b) to more than $258,000 a year. A which the insured or beneficiary die and leave the cash invested to few years in a nursing home and will not benefit: People either die their heirs. Some of these poli- the costs of long-term care (LTC) or utilize long-term care. Once a cies are also the indemnity polic- can be quite alarming. With a 72 Steven Hein no-lapse policy is purchased and es described above and have the percent chance of a long-term care the premium is paid, there should flexibility of utilizing the proceeds event, the question is: Why are peo- long-term care sales have plum- be no more future premium in- for many different uses. These ple not purchasing more long-term meted for three reasons: crease. Most of these policies are annuities can either be paid for in care? Some people are under the 1. People think they will be also indemnity policies which a lump sum or be paid for over as misconception that either Medic- lucky enough to not need it; means that once a person qualifies many as 15 years. An advantage of aid, Medicare or health insurance 2. Premium increases of 50 for long-term care , the benefit is paying for the annuity/long-term covers long-term care but each percent on some policies haves left a cash payment which can be paid care over a number of years is that of these options has severe lim- people angry; and to unlicensed caregivers including a portion of the long-term care itations. Despite the tremendous 3. Limitations on submitting family members, utilized for home expenses can be paid from a health need for long-term care, traditional claims for care by licensed health modifications, or utilized for other savings account. A health savings expenses or needs. These polices account enables you to receive a tax provide compelling income-tax- deduction for money contributed free rates of return. They also help and the money grows tax-free to be families by enabling for instance, used later for health care expenses, compensation to a particular family including long-term care premiums member who is providing most of and some annuity/long-term care the care. Further, long-term care premiums. policies can be offered in second With the cost of long-term care to die policies and potentially in continuing to increase, plans irrevocable life insurance trusts. should cover the likely possibility Life insurance long-term care can of a long-term care event. With the also be utilized on the key caregiver life insurance/long-term care and spouse or for spouses in second annuity/long-term care options, marriages. you or your heirs will receive a ben- efit so there is no “use it or lose it” Annuities/long-term care as with traditional long-term care. For people who are less con- The ability to receive cash once you cerned about providing a legacy qualify, that can be used as you see but want to still provide for long- fit, is a major advantage compared term care, annuity long-term care to a traditional reimbursement products are also increasing in model. The reduced likelihood of a popularity. These products usually premium increase for life insurance provide for substantially more in Please see HEIN, long-term care than the cash that Page 35 is put into the policy. A 60-year- Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T11

2017 Tax Cuts and Jobs Act Highlights for Business Aviation

By Michael L. Kohner, must be placed in service for the if business use falls to 50 percent or CPA, CAP® & AEP® first time by the taxpayer between below in any taxable year, then the HBK CPAs and Consultants September 27, 2017 and January 1, aircraft must change to the straight- Principal-In-Charge 2023 (January 1, 2024 for certain line Alternative Depreciation longer production period property System (ADS) during such taxable While the 2017 Tax Cuts and Jobs and certain aircraft). year and all subsequent taxable Act (TCJA) provided significant years, and prior excess depreciation tax benefits to business aviation, Mixed Commercial and Personal must be recaptured. such as 100 percent expensing for Use: The Predominant Use Test both new and used aircraft, oth- To qualify for the accelerated ex- Disallowance of Travel Business er sections of the tax reform law Michael L. Kohner pensing mentioned above using the Entertainment Expenses may have a negative impact on the Modified Accelerated Cost Recov- The TCJA makes far-reaching industry as well. New challenges ness aviation are discussed below. ery System (MACRS), the aircraft changes to the basic deduction are expected as the industry seeks must be used predominantly for disallowance rules for business to fully understand the complex 100 Percent Expensing (Bonus qualified business use in every tax- entertainment, which could affect legislative changes, including the Depreciation) able year that the aircraft remains many businesses operating aircraft. commencement dates of the imple- TCJA now allows 100-percent in service. If more than 50 percent Beginning in 2018, all entertain- mentation of the new rules and the expensing, which may allow tax- of the use of the aircraft during ment related expenditures are dis- phase out dates of numerous other payers to immediately write off the each taxable year constitutes busi- stipulations. Key provisions of the entire cost of an acquired aircraft. ness use, this predominantly busi- Please see KOHNER, new tax law as they relate to busi- Factory-new or pre-owned, it ness use test is satisfied. However, Page 36 T12 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter

Estate Planning for Families with Special-Needs Children

By Mitchell I. Kitroser own lives which covers the remain- provide case management, so the Kitroser & Associates der of their child’s lifetime. The agency can work with the parents planning must be comprehensive and the child in preparation for As parents, we serve our chil- and should include medical, so- providing support once the parents dren as guides, counselors, and cial, residential, financial, and legal can no longer participate or are no piggybank (along with many other aspects. In a perfect world, parents longer alive. roles). We anticipate guiding them might assume their other children from infancy through their teenage would step up to take care of their Financial years and then sending them off sibling with special needs after How will my child afford to live? to college. We hope they will find the parents have died, but reality Families of all different economic a fulfilling career, meet someone Mitchell I. Kitroser is far from perfect. Parents often backgrounds approach this issue special and become independent fail to consider the possibility that with the same initial question; how and productive members of society have a career, may not be able to something may happen to the child much money will my child need? who, one day, will give us grand- manage their own finances nor be who is slated to take over support Of course, the answer depends children to spoil. For parents of able to make complex decisions obligations in the future. The fol- upon the unique needs of each special-needs children, the future is about their healthcare. These par- lowing is a brief summary of some child, but a financial advisor is a very different picture. ents anticipate being a source of of the issues that families should always a good starting point. Advi- Parents of special-needs children support in every way for their child consider: sors take into consideration costs know that their child may never for the remainder of their lives. of living, including housing and be able to live a completely inde- They must also put together a plan Social and Residential medical needs, what support needs pendent life. Their child may never of care that continues beyond their Where will my child live and who to be put into place (i.e. case man- will look after him or her? Many agement) and what, if any, govern- parents of children with special ment programs will be available to needs keep them at home. After all, the individual (ex. Social Security who is better at taking care of their disability, Medicare and Medicaid) child than they are? The challenges versus the anticipated expenses to that come with this decision are support and maintain the child. that the parents will continue to age Attorneys can recommend the use and will eventually be unable able of appropriate trusts to help pro- to care for their child. A 60-year- tect the child’s wealth, so as not to old special-needs child who has jeopardize the child’s government never lived independently will be benefits such as Medicaid and SSI. completely unprepared when mom The challenge for many parents is and dad pass away. This “child” planning how to fund the antici- will have limited socialization pated costs of living for their child experience and virtually no emo- for the remainder of that child’s tional support system in place if lifespan, considering the likelihood there is no advanced planning for of future inflation and the ultimate the transition. In anticipation of aging and increased needs of the this reality, many parents look into child. Some families are fortunate other residential options for their enough to have the resources to special-needs children before the accomplish this task, while others crisis arises. This allows the parent will need to employ a combination to participate in and oversee the Please see KITROSER, residential transition. Families also Page 36 turn to social service agencies that Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T13 Who’s In and Who’s Out: Collecting Presidential Memorabilia

By Collin Sherman Albertsson Florida Regional Director, Doyle Auctioneer & Appraisers

Presidential memorabilia is a bil- lion-dollar industry filled with col- lectors with a multitude of special interests. Some build collections based on a single president while others are fascinated by presiden- tial pastimes. Some collectors seek Collin S. Albertsson autographs from all 45 Presidents and create bound volumes of them. deeply patriotic letters written by A determining factor in the value Washington. The first letter, auc- of presidential signatures can be tioned on behalf of the Estate of whether or not the document was Nelson Doubleday, Jr. is from April signed while the president was in 17, 1776 and Washington is de- office. William Henry Harrison, the manding that the citizens of New ninth president, died of pneumonia York stop supplying provisions to 31 days into his term and items the British ships of war in New related to his short presidency York Harbor. This evocative letter, are extremely rare and therefore, from the crucial period before the valuable. Washington, Lincoln, Declaration of Independence and FDR and Kennedy are currently the Battle of Long Island, sold for the most in-demand with Truman $53,125. The second letter was and Reagan gaining in popularity. written at the end of the war to Although one can find a Clinton his wartime aide James McHenry bumper sticker or a MAGA hat on on Dec. 10, 1783. He declares his the internet for a couple of dollars, intention to resign his commission some presidential memorabilia as Continental Commander and fetches hundreds of thousands of become “translated into a private dollars. There are many factors that Citizen.” This historically important determine an item’s value — his- letter achieved the World Record torical significance, subject matter, for a single-page war-date letter, rarity, condition and provenance. selling for $362,500. Although In today’s auction market some Washington signed hundreds of of the most valuable presidential letters throughout his long career items are those related to George as both general and president, his Washington. Recently Doyle has been fortunate enough to auction Please see ALBERTSSON, two particularly fascinating and Page 37 T14 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter Recent Case Law Provides a New Road Map for Deductibility of Family Office Expenses

By Stephen G. Vogelsang offices occurred in December 2017. penses related to the “production Pressly, Pressly, First, on December 15, 2017 the of income.” Section 212, however, Randolph & Pressly U.S. Tax Court issued its decision was less beneficial than Section 162 in Lender Management v. Commis- because Section 212 deductions “Forbes’ World’s Billionaires” sioner (“Lender”) which held that a were subject to AGI limitations and list debuted 30 years ago with the family office was engaged in a trade created alternative minimum tax names of 140 billionaires. The or business for federal income tax issues. More significantly, the 2017 same list today contains more than purposes allowing the deduction of Act completely disallows Section 2,200 names. This explosion of operating and investment expenses 212 deductions beginning in 2018. private wealth has brought with it an under Section 162 of the Internal The Code does not define “trade increased reliance on single family Stephen G. Vogelsang Revenue Code (the “Code”). Sec- or business.” Generally speaking, offices to manage these growing ond, President Trump signed the expenses incurred by a taxpayer fortunes. Family offices oversee the vide accounting and legal services Tax Cuts and Jobs Act (the “2017 performing investment related financial affairs of a family. A family and provide “concierge services” Act”) on December 22, 2017 creat- activities strictly for his own account office may prepare consolidated such as bill paying, hiring house- ing significant new limitations on are not deductible under Section investment reporting statements or hold staff and arranging family deductions related to investment 162 as expenses incurred in carry- perhaps even direct asset manage- travel plans. Two significant events expenses. ing on a trade or business. The Tax ment, engage professionals to pro- affecting the operation of family Family offices may be structured Court in Lender, however, deter- either as “pass-through” entities mined that the investment manage- such as limited liability companies ment activities of the Lender family or as “C” corporations which are office (“Lender Management”) did subject to federal income tax. “C” rise to the level of a trade or busi- corporations have historically ben- ness based primarily upon the efited from a presumption that they following factors: are engaged in a trade or business ■ Family Office Owners Differ- entitling them to deduct most of ent than Owners of Investment their operating expenses under Entities: Lender Management was Section 162. Many families, how- owned by the Marvin Lender Trust ever, prefer to operate their family and the Keith Lender Trust. Keith office as a pass-through for federal Lender was the grandson of Harry income tax purposes, particularly Lender, the founder of the company where the family office operates at that later became Lender’s Bagels. a profit. Unlike “C” corporations, Lender Management provided pass-through entities don’t enjoy a investment management services presumption that they are operated to three separate family investment as a trade or business, making it far vehicles, each of which was owned more difficult to deduct expenses more than 90% by Lender family under Section 162. In years prior members other than Marvin or to 2018, these family offices would Keith. This significant difference in likely have deducted their operat- ownership allowed Lender Man- ing and investment management expenses under Section 212 which Please see VOGELSANG, allowed for the deduction of ex- Page 37 Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T15 Florida’s Decanting Statute Gets Better with Age

By Matthew N. Turko ubiquitous distribution standard a second trust for the benefit of a Haile Shaw & Pfaffenberger P.A of health, education, maintenance beneficiary is substantially similar and support is an ascertainable to the power under the first trust Trust decanting is a process by standard. This standard precluded to make a distribution directly to which the trustee of a trust distrib- a trustee from decanting a trust in the beneficiary. This adds a level of utes all or part of its trust prop- Florida. Unfortunately, this was flexibility to the statute that did not erty to a trustee of another trust. a commonly encountered barrier previously exist: It allows a trust Decanting essentially allows for a to a trustee exercising decanting decanting as long as the distribu- “do-over” for an irrevocable trust authority. tion standards remain substantially and can be used to cure a myriad The revised Florida decanting similar between the trusts. Also, a of problems and/or issues encoun- Matthew N. Turko statute now allows for decant- second trust may now deviate on tered with an existing irrevocable ing when a trustee does not have issues unrelated to the distribu- trust. Trust Company, 196 So. 299 (Fla. absolute power. Each beneficiary tion standard; for example, trustee Florida first enacted its decanting 1940). Under the old statute and of the first trust must have a sub- appointment provisions. statute in Florida Statute section Phipps, a trustee could only decant stantially similar beneficial interest If the first trust confers a power 736.04117 effective July 1, 2007. to a new trust if the trustee pos- in the second trust. Substantially of appointment on a beneficiary, However, Florida has long recog- sessed an absolute power to invade similar means there is no material the second trust must include the nized the concept of trust decant- trust principal. Absolute power change in a beneficiary’s beneficial same power of appointment in ing at common law going all the is a power to invade principal not interests or in the power to make way back to the Florida Supreme limited to specific or ascertain- distributions. It also means the Please see TURKO, Court case of Phipps v. Palm Beach able standards. For example, the power to make a distribution under Page 38 T16 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter Reduce Your Heirs’ Taxes via Basis Step-up Planning under the New Tax Act

By Leonard J. Adler, Esq. and and leaving them outright to Sally Mark R. Parthemer, Esq. at his death, thus benefitting from a Bessemer Trust full basis adjustment. Harry could solve both problems by leaving his By now you’ve heard it many assets in trust for Sally, with the times – the current federal estate tax remainder passing to his children applies to only about one-tenth of when she dies. There would be no one percent of all Americans. So it’s estate tax, a full basis adjustment at no longer necessary to plan for taxes Harry’s death, and the assets would at death, right? be protected for Harry’s children. Unfortunately, planning has be- Leonard J. Adler Mark R. Parthemer come more necessary and complex, Basis Adjustment at Sally’s Subse- not less. The increased estate tax poses to be adjusted to fair market of assets with a $3-million cost basis. quent Death exemption is temporary and other value at death. But planning is Harry’s first wife and the mother of What if the trust assets appreciate taxes must be considered. Even if necessary to take full advantage of his four children, died years ago. He to $16 million by Sally’s death? A the estate tax doesn’t apply to you, the gift of “free” basis. is now married to Sally. Sally has no basis adjustment at her death could favorable tax law permits the cost Suppose Harry has $10 million of significant assets of her own. Harry save Harry’s children meaningful basis of assets for income taxes pur- estate tax exemption and $8 million wants to take care of Sally financially taxes, but would depend on the type after his death and have the assets of trust that Harry created for her. pass to his children after Sally has Since Harry’s estate value was less died. What is the best plan? than his exemption, he could have created a standard trust for Sally Basis Adjustment at Harry’s Death (i.e., didn’t qualify for the marital Harry discussed this with Sal- deduction). There would have been ly. She promises that if he puts his no estate tax at his death, and the assets into joint name with her, trust assets and all future appre- she will leave the assets to Harry’s ciation would be excluded from children at her death. Ignoring the Sally’s taxable estate. However, there possibility that Sally could spend would be no basis adjustment at all of the money or lose it to cred- Sally’s death, and Harry’s children itors, there are two problems with would receive the assets with $8 mil- that plan. First, as the years pass, lion of embedded capital gain. Sally could change her mind and Alternatively, if Harry had created leave the assets to anyone, such as a trust for Sally that could qualify her children or her next husband. for the marital deduction, it would Second, only one-half the value of create the option to cause the in- jointly owned assets receive a basis clusion of the trust assets in Sally’s adjustment, leaving $2.5 million of estate. That would enable a second gain to be taxed in the future. basis adjustment when Sally dies If Harry is confident Sally will and eliminate all $8 million of the keep her promise, he could solve the second problem, but not the first, by Please see BESSEMER, keeping the assets in his own name Page 38 Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T17 It Seemed Like a Good Idea Then, But Is it Time to Terminate Your Private Foundation?

By Cliff S. Gelber Gerson Preston Klein Lips Eisenberg Gelber

The Private (non-operating) Foundation (“PF”) is a useful tool for individuals or families with a strong philanthropic inclination. Benefits of creating a PF include obtaining immediate tax benefits from contributions, creating target- Cliff S. Gelber ed planned giving through its char- ter and can provide a mechanism ble status, resulting in additional to get family members engaged in administrative costs incurred. charitable giving, to name a few. There are other benefits as well, all After the 2008-09 recession many of which create positive outcomes. private foundations saw a decline To use a PF, you must adhere to in the value of their investments, formalities that may require more and some have been unable to time and effort than you are will- fully recover from the erosion in ing to provide. For example, you asset values. It is estimated that must attend board meetings, must more than 150 private foundations comply with annual tax filings, and had invested assets with Bernard you must document grants that Madoff, and we all now know those support its stated purpose. You are “investments” will never be fully required to distribute as donations recovered. a minimum amount based on the Statistics indicate that more than size of the PF. You must comply 60 percent of private foundations with rules regarding, self-dealing, have assets of fewer than $1 million adequacy of investments and there and almost the same percent make are penalties for under distribution annual grants of $50,000 or less. of grants. All of these rules require All told, that’s a lot of administra- a degree of monitoring and fiducia- tive burden, and fiduciary responsi- ry oversight. In smaller organiza- bility for a relatively small amount tions, typically the Board depends of corpus. on the accountants and attorneys to Once the PF has been established, monitor and advise on corrections Please see GELBER, to avoid censure or loss of charita- Page 39 T18 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter Intergenerational Split-Dollar Arrangements: What’s the “Big Deal”?

By R. Marshall Jones, an overly Trust paid nothing for these trust- percent accuracy-related penalty. JD, CLU, ChFC, AEP aggressive owned life insurance policies. Jones Lowry split-dollar Observations arrange- Why was the $10 million inter- In our opinion, Cahill is a wel- The “Big Deal” is the IRS may ment. est-free? Because Mr. Cahill’s come outcome because abusive have finally closed a huge estate In Estate advisors selected the interest-free “Death Bed” Economic Benefit ar- tax loophole — the use of abusive of Cahill v. Economic Benefit (i.e., term in- rangements are simply wrong. You “Death Bed” split-dollar arrange- Commis- surance cost) option instead of the should expect an audit both with ments to generate discounts of sioner, a Loan (i.e., with interest) option. this type of transaction and with 90 percent or more for wealthy 2018 case, With the Economic Benefit meth- any scheme where the Exit Strategy individuals with reduced life Mr. Cahill R. Marshall Jones od, the IRS says there’s no imputed is to cancel the policies after ob- expectancies. The bigger deal, was 90 years interest charge if you properly taining a valuation discount. often overlooked, is that tradition- old and in account for the Trust’s Economic al split-dollar life insurance plans poor health when he advanced $10 Benefit. Because Mr. Cahill paid Two Safe and effective Split-Dol- are a tremendous planning tool to million in premiums for policies everything, the Trust was deemed lar Arrangements with Grantor fund estate tax-free trusts without on his son and his wife under a to have received an Economic Ben- Trusts paying gift taxes. But first, let’s look split-dollar insurance arrangement efit gift of $7,578 for the year. Mr. The good news is that there are at what most planners consider with his Irrevocable Trust. His Cahill reported that amount on his safe split-dollar plans available to gift tax return. fund irrevocable trusts without paying any gift tax. Safety re- What happened when Mr. Cahill sults by following the 2003 Final died? When he died a year later, Treasury Regulations regarding the estate valued the $10 million split-dollar arrangements. Effec- receivable at only $183,700! How- tiveness results from using high ever, the cash surrender value was quality life insurance contracts $9.6 million at the time. The IRS owned by flexible trusts that will be alleged a $9.6 million estate value treated as grantor trusts for income and sought to impose an additional tax purposes during life and will $2.2 million in penalty taxes. Mr. be estate tax-free when the grantor Cahill’s estate asked the Tax Court dies. Here are two examples: to rule in its favor with a partial ■ Example #1: Guaranteed Level summary judgement. Summary Premium 2nd to Die insurance judgement was denied. Instead, the policies with low or no cash value Tax Court Memorandum provided using the Economic Benefit Re- a detailed analysis of the reasons gime. The grantor advances pre- for valuing the receivable at $9.6 miums interest-free as long as both million and referred the case back insureds are alive. The Trust pays for trial. the low Economic Benefit portion of the premium so that it will not Did the IRS win? Big time. Two have to pay loan interest. This al- months later, rather than go to trial, the estate accepted the IRS value of Please see JONES, $9.6 million and agreed to pay a 20 Page 20 Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T19 Maximizing Trust Planning Advantages with Delaware Trusts

By Kalimah Z. White and Suzanne Holmes TD Wealth

When it comes to estate planning, flexibility, control, and privacy are paramount to most. A significant advantage of using a Delaware trust is that it may provide many protec- tions within one governing instru- ment. To illustrate, a settlor can Kalimah Z. White transfer some of their assets into a self-settled asset protection trust and have them sheltered from most of their future creditors.1 These trusts also permit the settlor to act as the investment advisor/trustee so that they can retain the authority to make investment decisions. 2 This same trust can also exist perpetually because Delaware has abolished the common law rule against perpetu- ities. 3 Delaware law places significant Suzanne Holmes emphasis on privacy. Delaware trusts are not required to file court settlor, especially where there is accountings or register with the concern regarding the maturity and Delaware Court of Chancery, unless responsibility of future generations. required in the governing instru- There are several reasons a client ment or by court order. 4 Further- may need to modify a trust, in- more, Delaware law permits “silent cluding changes in law and family or quiet” trusts: the governing circumstances or a desire to update instrument can restrict a benefi- antiquated trust provisions. Del- ciary’s right to be informed of their aware law provides several tech- niques to modify trusts, including interest in a trust for a period of 7 time.5 Such trusts can appoint a decanting or merging trusts. “designated representative” to re- Under 12 Del. Code Section 3342, ceive trust information on behalf of Delaware law permits modifying a a beneficiary, thereby diminishing trust, even trusts that specifically concern regarding rogue trustees.6 prohibit amendments, to include Silent trusts provide an additional Please see TD WEALTH, layer of privacy and control for the Page 40 T20 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter

JONES IRRs or Lifetime Distributions of From Page 18 Cash Value). Estate planners use split-dollar arrangements to avoid lows up to 99 percent of the Trust’s paying gift taxes and loan interest other assets to be invested for estate when funding trust-owned life tax-free growth. At the first in- insurance. Great policies and great sured’s death, the Trust will repay planning are always a “Big Deal.” the receivable either in cash or with an interest-bearing note. R. Marshall Jones is a Principal of Jones ■ Example #2: Increasing Cash Lowry and a non-practicing member for the Florida Bar, an Accredited Estate Value insurance policies to insure Planner, Chartered Advisor in Philan- family members individually or thropy, Chartered Financial Consultant jointly using the Loan Regime. and Chartered Life Underwriter. He Each grantor loan can lock-in the is also a member of the M Financial long-term AFR (Applicable Feder- Product Development Group. Jones al Rate) for the life of the insured. Lowry is an independent M Financial The loan can be non-recourse and life insurance planning firm specializing interest can accrue income tax free in innovative life insurance solutions for for the life of the grantor. ultra-high net worth families including High-net-worth clients purchase the analysis, design, implementation, permanent life insurance for the funding and administration of life in- surance portfolios. File #1458-2018. values they provide as an invest- ment (i.e., Tax-Free Death Benefit Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T21 Mystery Behind Cost of Insurance Increases Answered

By Adam D. Sendzischew sure. Also, senior leader comments and Sharon Lindsey may provide an alert regarding fu- Jones Lowry ture inforce policy actions; e.g., will they be targeting COIs for increases, Have you or your client ever had etc. If during a review, the projected a life insurance policy that failed? performance is falling short of your Have you ever wondered why? Well clients’ goals, consider doing some you are not alone. Most think that of the following: once they purchase a policy, it is “set ■ Reduce the face amount or it and forget it” as long as they pay increase premiums. their premiums. Sadly, that is often Adam D. Sendzischew Sharon Lindsey ■ Continue paying as planned not true. This article will discuss and pay higher catch up premiums one of the reasons policies fail. values. Lower returns have forced Review! Review! Review! Advi- later on. Over the last 30 years, insurers insurers to reduce inforce crediting sors should request inforces annu- ■ If still favorably insurable, do have mostly left the cost of insur- rates which can cause problems with ally to track the changes that are a Sec. 1035 tax-free transfer of cash ance (COI) element in a life insur- older blocks of business that were occurring in client policies. Look value to a new policy that is eco- ance contract alone; only adjusting sold with higher guaranteed rates; for historical changes in policy nomically better. them periodically in response to 4-5% in the 80s, 3-4% in the 90s, holder treatment. This may provide ■ If uninsurable and increasing economic environment changes for example, compared with 1-3% some guidance as to how they have premiums is not an option, carefully and financial pressures. This has today. With treasuries and corpo- managed non-guaranteed elements Please see SENDZISCHEW, drastically changed since about rate bonds yielding 2-4%, insurers during other times of financial pres- Page 40 2015 when the prolonged impact of are being forced to subsidize the depressed interest rates gave carriers shortfall in older policies as General reasons to increase COI charges on Account returns fall short of mini- inforce blocks of business, mainly mum guarantees. Universal Life (UL) Contracts. Al- A primary assumption in policy though these increases mostly have pricing is the prediction of future been within the contractually guar- interest rates. Most carriers over anteed limits, it has created concern the last decade predicted that rates with clients and advisors. would return to the normative curve of the yield curve. Unfortu- The effects of the prolonged nately, this has not occurred. As a low-interest rate environment result, some carriers have increased Insurers invest in highly-rated COI charges, either openly or not corporate and government bonds so openly, to manage profitabili- to meet their obligations to policy ty. In addition, other factors such holders. Reinvestment risk, or the as higher mortality costs, higher risk that the proceeds from bonds reinsurance rates, lower lapse ratios, that are maturing may have to be and adverse premium payment ex- invested at a lower rate than the perience that historically were offset original investment, has caused a by higher investment returns, have major decline in carrier investment amplified insurer pressure and led to returns. This issue is magnified a greater willingness to increase COI with UL policies since a primary charges that historically have been driver of insurer profitability is the left alone. spread between investment yield and the interest rate credited to cash What can clients and advisors do? T22 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter Fundamentals of International Estate Planning

By Patricia A Giarratano nent residents and non-resident It is very common today for non Caler, Donten, Levine, Cohen, aliens. U.S. persons to purchase real prop- Porter & Veil, P.A. All U.S. citizens and U.S. resi- erty in the U.S. for themselves or dents are subject to U.S. estate tax other family members. If U.S. real The world is getting smaller and on their worldwide assets, with the property is purchased in the name the laws pertaining to those subject first $11.2 million exempted from of the non-resident the property to U.S. gift and estate tax (transfer estate tax (the exemption amount will potentially be subject to both tax) are becoming increasingly is slated to sunset in 2026 and U.S. gift and estate tax, barring a more complex. The U.S. estate tax decrease to the pre-2018 exemp- gift tax treaty with his native coun- applies not only to U.S. citizens, tion amount of $5.4 million). An try. The current gift tax annual and U.S. citizens living abroad Patricia A. Giarratano unlimited amount may also be left exclusion amount is $14,000 and (known as expatriates) but also to a surviving spouse if that spouse therefore if a non-resident purchas- to U.S. permanent residents and nitely. If, however, a person’s intent is a U.S. citizen, but if that spouse es a home for his or her child living non-resident aliens with U.S. situs is to return to his or her native is not a U.S. citizen, the assets must in the U.S., the gift of real property assets. Residency is determined country, that person is considered given to a qualified domestic trust could be subject to gift tax if it ex- by a person’s domicile or presence a non-resident alien (NRA) under (QDOT) for that spouse’s benefit ceeds $14,000. A non U.S. resident with the intent to remain indefi- the U.S. transfer tax law. A short to qualify for the unlimited marital might avoid the imposition of U.S. nitely in the U.S. For transfer tax review of the current U.S. estate tax deduction. In contrast, non-resi- gift and estate tax by establishing a purposes, a noncitizen is a U.S. regime may be helpful to under- dent aliens are subject to U.S. estate trust, in either the U.S. or a foreign resident if he or she lives in the stand the transfer tax consequences tax only on their U.S. “situs” assets, country. Each has its benefits and U.S. and intends to remain indefi- that apply to U.S. citizens, perma- with only the first $60,000 exempt- disadvantages. U.S. law treats a ed from estate tax. Generally, U.S. foreign trust as a nonresident alien situs assets include real estate lo- individual who is not present in the cated in the U.S., tangible personal U.S. The gross income of a for- property located in the U.S., shares eign trust that includes U.S. source of stock in U.S. corporations, and income earned inside the foreign cash held with U.S. brokers. trust is not subject to U.S. tax. A There are two forms of interna- foreign trust may be the preferred tional estate planning: inbound planning vehicle to hold real prop- and outbound. Inbound planning erty or income producing U.S. as- is when a non-U.S. person invests sets when the beneficiaries are not in U.S. assets or contemplates a U.S. citizens or residents. Another move to the U.S. Outbound plan- consideration may be purchasing ning pertains to a U.S. person U.S. real property in the name of that invests abroad. At death, a a corporation if the nonresident non-resident can transfer only does not plan on selling the prop- $60,000 worth of U.S. situs prop- erty, as a sale may impose double erty without paying U.S. estate tax taxation. It is vitally important for and the top U.S. estate tax rate is non U.S. persons to consult their 40 percent. As mentioned earlier, accountants and attorneys prior a non-resident is not entitled to an to relocating to the U.S. to reduce unlimited marital deduction, so overall taxation on their worldwide transfers to a non-resident spouse property. are also subject to the $60,000 lim- Please see GIARRATANO, it, unless the assets are placed in a Page 39 qualified domestic trust (QDOT). Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T23

Your Life Changes: Is Your Estate Plan Keeping Up With You?

By Randell C. Doane dress, such as choice-of-entity for and Rebecca G. Doane the business, the dynamics of busi- Doane & Doane, P.A. ness operation among co-owners, ownership/succession planning and The phrase “estate plan” is meant the best means for accomplishing a to encompass the comprehensive business liquidation. plan that addresses the manner of ■ Significant illnesses or medi- passing on your assets at death. cal issues. While incapacity plan- However, many clients who initially ning is almost always addressed in set up an “estate plan” think of it estate planning, sometimes a per- purely as the set of documents that Randall Doane Rebecca Doane son’s thoughts change as to how the they sign. This is not the correct issue should best be handled once way to think about estate planning. such rights. plan is a must. Lastly, each state a person is dealing with serious We all know that simple things ■ Birth of children. Not only has its own income tax and estate health issues firsthand. Addition- such as dinner plans or vacation are there financial considerations tax regimens, so these multi-state ally, if long-term wealth planning plans are subject to change should (think planning for college or other tax issues need to be addressed as strategies are part of your estate your life circumstances change. wealth transfer events) but there part of your plan. plan, the onset of a significant ill- Something as significant as your are several non-financial consider- ■ Starting or selling a business. ness or medical issue might require estate plan should be viewed in the ations, such as who will be respon- While this might seem to fit under Please see DOANE, same way. Because an estate plan is sible for your children should you the “changes in income” category, Page 41 intended to ultimately go into effect suffer incapacity or death and are there are additional issues to ad- upon your death or incapacity, it unable to care for them yourself. must be kept current. Otherwise, ■ Significant changes in income there is risk of having a plan go into or assets. Things such as signif- effect that was created years ago icant payouts from investment and does not accurately reflect your activities or retirement are the most family and financial situation. common, but also think of things The following are examples of such as receiving an inheritance or some events which should cause earning bonus compensation or an you to revisit and evaluate your equity/incentive reward from your estate plan: place of work. ■ Moving states or acquiring ■ Marriage or divorce. The sta- real estate in another state. Both tus of your property rights change of these events involve several significantly in either of these financial and non-financial issues. events. Spouses are generally enti- Since so much of estate planning tled to economic rights in the other hinges on where you live (called spouse’s property which can severe- your “domicile”), ensuring your ly restrict (and in some instances, plan takes into consideration the completely eliminate) the ability to laws of your new home state is crit- incorporate certain assets into an ical. Similarly, laws regarding own- estate plan, at least not without ob- ership and transfer of real property taining the consent or cooperation are always governed by the state of the other spouse. Conversely, in where the real property is located, the event of a divorce, property is so ensuring these potentially con- generally no longer subject to any flicting laws are addressed in your T24 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter Designing Your Fountain of Youth: The Success Factors to Living Longer and Well By Jennifer M. Eaton Youth. daunting is the task of planning Ballentine Partners Fast forward 35 years and the for later life. But what if we could search for the Fountain of Youth is engage in a deliberate and thought- In elementary school, I played still elusive, although as a society ful process with a singular purpose, Spanish explorer Juan Ponce de we are laser-focused on living lon- to take control and design an ideal Leon for a school play. Imagine ger and well. The United Nations later life? an 8-year-old blonde girl dressed describes longevity as one of the In Aged Healthy, Wealthy & Wise, in tights, a homemade plaid skirt most “significant transformations” my partner, author Coventry Ed- stuffed full with newspaper, and a of the 21st Century. (Barratt, 2017) wards-Pitt, Chief Wealth Advisory white billowy blouse. My mother In fact, the number of older people Officer with Ballentine Partners, even penciled in a mustache and Jennifer M. Eaton – those aged 60 years or over – is interviews vibrant and inspiring beard to perfect my authentic Con- growing faster than any other age elders to uncover the intangible quistador ensemble! I didn’t care gevity and health. I was fascinated group. (United Nations, 2015) With aspects of aging that contribute to that I was dressed as a man. I was by the fabled power of the Fountain advancements in health and med- their inspiring and youthful lives. eager to study Florida’s rich history of Youth and imagined how I could ical technologies, people are living In her work, Covie observed four and learn about Ponce’s journey stay young forever. But alas, Ponce longer and more healthy lives than “success factors” woven throughout to find Bimini and the Fountain de Leon did not land in Bimini — ever before. her discussions. Those factors are of Youth, a supposedly restorative he discovered Florida instead and But longevity is an asset only if Agency, Growth, Engagement, and spring promising to improve lon- he never did find the Fountain of you know how to use it. Drive. By sharing these factors with As a financial advisor working you, I hope to inspire you to incor- with wealthy families, the work I do porate them into your own life. planning for a client’s later life has never been more important. Cli- Agency ents are typically eager to focus on The first success factor, agency, addressing financial concerns like is about taking control of your life “will my assets sufficiently support and making your life your own. me for the remainder of my life?” Agency is the deliberate act of But there are important questions doing something. It is not sitting that go beyond financial consider- idly by and waiting for life to come ations, like how and where will I to you. Covie’s conversations reveal best spend the days I have remain- that the most vibrant and inspired ing, or where will meaning come elders possess a “mental toolkit” from once the children are grown stocked full with perspective, posi- and my career has wound down? I tive attitude, gratitude and humor. find that I am spending more time with my clients working through Growth these questions, allowing my clients The second success factor, to reflect on their goals and plan growth, is about continual learning for how to best use these resources and how to adapt to and man- to ensure that they are aging well. age change. Change at any age is These are not easy conversations. difficult. Change in our later years In reality, contemplating mortal- Please see EATON, ity is a daunting task. Even more Page 41 Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T25 Beware of Filing Requirements for Offshore Holdings

By Nancy Crowder-McCoy and Stephanie Murray ■ Ownership Interests in For- Carr, Riggs & Ingram LLC eign Partnerships - “U.S. persons” who own at least 10 percent interest Understanding required disclo- in a controlled foreign partnership, sures and filings related to offshore contributed property in exchange holdings is imperative in order to for an ownership interest, or ac- remain compliant with the IRS quired, disposed or had a change and to avoid potential significant in an interest that affected the 10 penalties. With the 2010 imple- percent threshold, must file Form mentation of the Foreign Account Nancy Crowder-McCoy Stephanie Murray 8865. Tax Compliance Act (FATCA), ■ Making Payments of U.S. foreign financial institutions are aliens, trusts, estates and domestic $50,000 on the last day of the tax Source Income to Foreign Per- required to report information entities that have an interest in for- year or more than $75,000 at any sons - Generally, these payments on the financial accounts of U.S. eign financial accounts. The filing time during the tax year. require withholding of taxes on the holders. In addition, “U.S. persons” requirement covers many types of ■ Ownership Interests in For- foreign person and payment of the are required to report their foreign foreign accounts, including bank eign Corporations - If you meet withheld taxes to the United States financial accounts and foreign accounts, securities accounts and the ownership or control thresh- Treasury. This applies if you are assets to the IRS depending on certain foreign retirement arrange- olds and are a “U.S. person”, you Please see OFFSHORE, the account value. The purpose of ments. must complete certain schedules Page 41 FATCA is to prevent “U.S. persons” Note: The penalty for willfully and file Form 5471. from using offshore accounts to failing to file the FBAR can be as avoid U.S. taxation. “U.S. persons” high as $100,000 or 50% of the that fail to comply will be subject account balance of each foreign to civil monetary penalties and the account. potential for criminal penalties. ■ Statement of Specified For- FATCA applies to U.S. residents as eign Financial Assets - Form well as U.S. citizens and green card 8938 is required to be filed with holders residing outside of the U.S. the income tax returns of certain “U.S. persons” should be aware of individuals or domestic entities the following reporting obligations: that have an interest in specified ■ Report of Foreign Bank and foreign financial assets and the Financial Accounts (FBAR) - U.S. value of those assets is more than taxpayers must report their foreign the applicable reporting threshold financial accounts to the Finan- which varies depending on filing cial Crimes Enforcement Network status and whether the taxpayer (FinCEN) on Form 114. The FBAR lives abroad. For married individ- is an annual report required to be uals living in the United States and filed by a “U.S. person” that has a filing a joint return, the reporting financial interest in or signature threshold is met if the total value authority over a foreign financial of specified foreign financial assets account if the aggregate value of is more than $100,000 on the last all of the foreign financial accounts day of the tax year or more than exceeds $10,000 at any time during $150,000 at any time during the the calendar year. A “U.S. person” tax year. For a specified domestic includes U.S. citizens, resident entity, the reporting threshold is T26 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter Life Insurance Premium Funding: What to Look Out for and How to Implement

By Joseph A. Kawczenski paid to death benefit when the ben- is pure death benefit. So-called “no Financial Architects Partners efit ultimately pays out. lapse guaranteed policies” have little or no cash value. The death With life insurance policies, Cash Value Focused benefit is fully guaranteed as long policy owners highlight two very Life Insurance as the premium is paid on time significant items – cash surrender Typically, our clients use cash (and the carrier is solvent). The value and death benefit. However, value focused life insurance as a premiums are entirely flexible to without proper and monitored pol- cash alternative to capitalize on the policy owner, as long as the icy funding (premiums), the cash the unique tax advantages of life minimum amount to continue the value and death benefit can become insurance. Assuming a policy is not policy is paid every year. irrelevant (policy lapse). Joseph A. Kawczenski a Modified Endowment Contract In these types of policies, we of- With any financial instrument, (MEC), the policy can be accessed ten see a lifetime or graduated pre- the purpose and reason for allo- icy as “living insurance.” Converse- basis first or “first‐in‐first‐out” mium schedule. This increases the cation is the first question that ly, if the focus is on maximizing (FIFO). This allows the return of IRR on the policy death benefit at should be posed. If you are looking the death benefit for your family, principal without any tax, even if the time it pays out. Policy owners for access to policy cash values paying as little premium as long as there is gain in the policy. Policy are allowed to prefund the guaran- and flexibility over your lifetime, it possible may maximize the internal cash values over and above the tees, but this decreases the IRR at helps to think of an insurance pol- rate of return (IRR) of premiums basis can be accessed through a life expectancy. We often advise our tax‐free policy loan, or used as col- clients to allocate a “one‐time” pre- lateral for a third party loan (cash mium (or their remaining lifetime values can often be credited up to exemption) into an irrevocable life 95% collateral). insurance trust, and have the trust In a cash value focused policy, account invested with a money the best practice is to “solve” for the manager, and a portion of the amount of cash or cash alternatives income used as ongoing premiums. to be allocated into a life insurance This type of insurance program policy over a five‐year period to requires constant oversight and an avoid MEC status. The death bene- insurance adviser that is capable of fit is then calculated to be the low- post-policy service. Look for firms est allowable under the tax code. that have defined roles of a client On a single life policy, withdrawals service adviser or the like. can be taken in the eighth policy year (check with your agent and tax What You Need to Do professional). If it is a survivorship In the case of existing insurance policy, you have to be extremely portfolios, consult your trustee, careful when taking withdrawals to insurance adviser, or other family ensure that the policy is not calcu- resource to inquire about future lated as a MEC retroactively. policy performance. Request mul- tiple illustrations at varying interest Death Benefit Focused rates and payment schedules. For Life Insurance The other end of the spectrum Please see KAWCZENSKI, that our clients use life insurance Page 42 Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T27 Man-Made Diamonds Vs. Natural Diamonds By Art Samuels considered the gem of love, energy, are natural, created completely by passion, and power. Recently at nature, are today commanding as- Should you purchase a man- Sotheby’s a 25 carat natural ruby tronomical prices. Pearls that have made diamond or a natural one sold for 30 million dollars, or over been cultured and grown on pearl mined from the Earth? Are they a million dollars per carat. About farms have seen their prices drop both real diamonds? Are they the same time, a man-made ruby considerably. This is in spite of the identical? Will they both hold their weighing 34 carats sold for less fact that natural pearls are generally value into the future? Which would than 30 dollars, or less than one not as beautiful, and they must be you want to give as a symbol of dollar per carat. They were both sent to a lab to be identified. We see your love? rubies, both had the same chemical many examples of consumers pay- Natural diamonds were created Art Samuels composition, the same hardness, ing huge premiums for the natural billions of years ago, approximately the same beauty and other physi- gem, even though the correspond- 100 miles below the Earth’s sur- also carbon that has crystallized. cal properties. They could only be ing man-made gem has little value. face. There, carbon was subjected Carbon is one of the most common identified as man-made or natural There are stones that look like to extremely high temperature elements known to man, occurring by experts. In spite of the man- diamonds, but are not diamonds, and tremendous pressure, and was in abundance in the Earth’s crust made ruby’s low cost and plentiful that are also being marketed. These transformed into crystallized car- and in gases. The fact that the sup- availability, the price of natural are called diamond simulants. The bon, and a diamond was formed. ply of carbon is endless and cheap, rubies remained unaffected. There most common and recognizable Most of these diamonds could nev- and the fact that the ability to build are similar examples with every simulants are CZs (cubic zirconias) er have reached the Earth’s surface, more diamond producing factories gemstone, including emeralds, sap- Please see SAMUELS, except for very rare cases millions is unlimited, bodes ominous impli- phires and even pearls. Pearls that Page 42 of years ago, when volcanic erup- cations for those purchasing these tions passed through diamond rich diamonds today. ore and carried them up. These Diamonds possess unique char- natural diamonds exemplify the acteristics. They are by far the beauty, rarity and uniqueness of hardest substance known to man. nature at its best. Only a diamond can scratch anoth- Man-made diamonds, often re- er diamond. Also, diamonds are the ferred to as synthetic diamonds, lab best conductors of heat. These two created, or lab grown diamonds, sought after characteristics cause are grown today in massive fac- most factory grown diamonds to be tories in China, India, Russia and used for cutting and drilling equip- other countries. Since almost all di- ment, and for laser and electronics amonds today are manufactured in purposes. It is only during the factories, “factory grown” is a more last decade, when factory grown appropriate term. These diamonds diamonds have become larger are in fact real diamonds, however and cheaper, that they have been to state that they are “identical” marketed for use in the gem and to natural diamonds is not true. jewelry industry. Factory grown diamonds are gen- An interesting and pertinent erally produced within days, and analogy compares natural and their differing characteristics make man-made rubies. Over 100 years them detectable and identifiable by ago, when man started making labs and trade professionals using rubies, natural rubies had been commercially available equipment. prized for centuries by royalty, These factory grown diamonds are and were highly valued. They were T28 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter A Tax Planning Strategy for the Migratory Client

By David Reynolds One consideration high-net- to a broad mix of potential invest- Spearhead Capital, LLC worth clients ($30 million-plus in ments via the contract, including investable assets) may wish to ex- mutual funds, hedge funds, private You wake up Jan. 1. If you have plore is Private Placement Life In- equity, private credit, real estate, been on top of your estate and tax surance (“PPLI”) or Private Place- MLPs, and other real assets (pro- planning this past year, more than ment Variable Annuity (“PPVA”). vided certain Internal Revenue likely your attorney has revised PPLI and PPVA are comprehen- Code rules are met). your estate planning documents in sive wealth management tools of- In the case of a PPLI contract, light of the Tax Cuts and Jobs Act. fered by certain domestic as well as the client must select an insured To the extent you qualify, perhaps offshore insurance companies that (typically some combination of you have likewise shifted addi- David Reynolds allow clients to invest on a tax-ad- the family patriarch, matriarch, or tional assets outside of your estate vantaged basis through variable other immediate family members) with the doubling of the Federal ning is becoming the new estate insurance products. When properly to undergo a standard medical and gift and estate tax exemption. Your tax planning.” Indeed, while high structured, they allow high net financial underwriting. Depending planning appears to be running net worth clients are wise to update worth investors as well as some on the carrier used, medical under- on auto-pilot…or is it? Are there their existing estate plans, many cli- institutional clients to defer and/ writing may need to be completed other planning strategies you might ents and their advisors also would or eliminate taxes on the growth of offshore. consider? be wise to consider tax mitigation/ assets held within the policy. In exchange for one or more pre- In today’s shifting planning deferral strategies, especially as it Of note, clients sometimes utilize mium payments from the client, an landscape, an increasingly common pertains to highly-taxed investment these structures to invest in tax-in- insurance carrier issues a PPLI (life refrain is that “income tax plan- assets. efficient asset classes, thus allowing insurance version) or PPVA (vari- clients to compound their wealth able annuity version) contact. The much more effectively over the premium payment, or cash used long term than otherwise can be to fund the policy by the client, is achieved by investing on a tra- deposited by the carrier into a seg- ditional “taxable” basis. Further, regated investment account linked when structured properly, PPLI to the contract - also known as the also allows individuals to transfer policy’s “cash value” account. In wealth to future generations in a the case of PPLI, the contract also tax-efficient (income tax, estate tax provides a corridor level of death and GST tax-free) and asset pro- benefit in excess of the policy’s cash tected manner. value. Generally, these products carry Further, unlike with tradition- significantly lower overall upfront al life insurance, the cash value and annual cost structures when investment account assets of PPLI compared to traditional insurance and PPVA are considered segre- products. In fact, policy-specif- gated from the general assets and ic terms, death benefit, and fees liabilities of the insurance carrier. (including all compensation paid to Additionally, if structured as a the carrier and insurance agent) are non-MEC (modified endowment typically negotiated and disclosed contract) policy, the client retains to the client upfront. Further, these the ability to access liquidity (via products often do not charge a pen- tax-free loans) from the policy alty for early surrender. Please see REYNOLDS, Unlike most traditional insurance Page 42 products, clients can gain exposure Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T29

Does Bitcoin Belong in a Well-Rounded Investment Portfolio?

By Cory F. Lyon Why are cryptos so volatile? ing what it is or how to obtain it. TFG Financial Advisors Well the simple answer is there is You cannot simply ask a broker to no good metric for its valuation. put it in your investment account. Having a good investment port- People are either buying it in the You need to open an account with a folio is part patience and part com- hope that eventually the valuation crypto-currency trading desk, fund prehension of the current state of of the crypto will be higher than the account, and trade from there. the economy. An important piece what it was purchased for, or they This necessitates more research into of the puzzle is: Where is the mon- are selling it because they do not the different providers to make sure ey and where is it going? The latest believe it will go any higher than they are not fraudulent. All that wave of curiosities comes in digital what it is currently worth (which is being said, even if you have a high form, like crypto-currencies. Think Cory F. Lyon generally what happens with short- tolerance for risk, crypto-currency Bitcoin, but also Ethereum, Ripple term investors when the fascination should not represent a significant and Litecoin! Everyone is asking some coin or fraudulent cryp- with any investment wears off). portion of your investment portfo- if it’s a scam, a risky gamble, or a to-currency to falsely entice you The important question to ask lio. future windfall worth considering into giving them money with no your financial advisor is: Should The point is, everyday new for investments? intention to provide the ledger or crypto-currencies be a part of a technology, investment products, The short answer: All three. The to continue encryption. Scams are well-rounded investment portfolio? and financial opportunities present long is answer is a bit more com- prevalent in any industry, especial- In today’s market, it is still a high- themselves, each ultimately bring- plex. ly in any digital industry, where it risk investment with potential for Please see LYON, Let’s start with what “cryptos” are is easy to remain anonymous and significant loss. Most investors con- Page 42 not. They are not imaginary money. transactions are instantaneous. So tinue to have difficulty understand- Cryptos (the real ones at least), are naturally scam artists and crooks a form of ledger technology that jumped on the crypto boom of the records transactions, whether it’s last few years. Remember, when sales, accounting ledgers, proxy evaluating any investment, it is im- votes for corporations, or classified portant to be cautious and properly information. That information is educated. then protected behind layers of Having been invented in 2009, encryption and is verified on a at this point crypto-currency as peer-to-peer network of computers a concept is not a gamble. It has around the world. It is decentral- proven itself to be of value, being ized, meaning there is no single adopted for use in several banks computer to hack, or computer to and many other businesses for steal to obtain the information. obvious reasons. However, betting Blockchain technology is transpar- on an individual crypto-currency ent and incorruptible. could be seen as risky. Betting on Cryptos have value, which means retail stocks could be seen as risky they can certainly be profitable. For too. Back in 1995 picking Amazon accounting purposes, they are not instead of Sears was a gamble. Re- “currency” but treated as assets. In tail is still with us (and so is Ama- the eyes of the IRS, when you buy zon) but Sears is closing its doors. or sell there is basis, and a loss or It’s the same with crypto-curren- gain. cies: The technology will not go So is it a scam you ask? No, not away, but who knows for sure today really. But there are scam “coins” which “coin” will be victorious and out there, companies that invented become the most valuable? T30 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter Trusts and Pass-Through Businesses May Qualify for Big Tax Breaks in 2018

By Adam Slavin, CPA passes from their businesses or Limitations Based Berkowitz Pollack Brant’s trusts through to their personal on Type of Business Tax Services income tax returns. The QBI deduction is subject to What is QBI? QBI is a new con- further limitations or completely The new tax law that went into cept that refers to the net amount unavailable when taxpayers are effect in 2018 offers owners of of U.S.- source income, gains, considered specified service trades domestic businesses and bene- deductions and losses effectively or businesses (SSTBs) that provide ficiaries of trusts and estates the connected with a taxpayer’s pass- services in any of the following potential for significant tax savings. through businesses, trusts or estate. fields: This is based on a wide variety of QBI includes qualified dividends ■ accounting, factors, including their lines of Adam Slavin taxpayers receive from real estate ■ actuarial science, business, the legal structure of their investment trusts (REITs), qualified ■ athletics, companies and trusts, and their Under the Tax Cuts and Jobs Act, cooperative dividends, qualified in- ■ brokerage services taxable income. Maximizing these pass-through businesses organized come from publicly traded partner- ■ consulting, opportunities, however, will re- as LLCs, partnerships, S corpora- ships (PTP), and income generated ■ financial services, quire the guidance of professional tions, or sole proprietorships can from rental property or from trusts ■ health, accountants who understand the potentially receive a tax deduction and estates with interests in quali- ■ investing and investment law’s complex, convoluted and still as high as 20 percent of the qual- fying entities. QBI does not include management, trading, or dealing in evolving set of rules. ified business income (QBI) that foreign income, investment in- securities, partnership interests or come, interest income, capital gains commodities, and losses, and wages that owners/ ■ law, partners earn as employees of those ■ performing arts, or businesses. ■ any trade or business in which For tax years 2018 through 2025, income is derived directly from the the maximum amount a qualifying taxpayer’s fame or celebrity from. business owner, trust or estate may However, the law does provide deduct is the lesser of: an opportunity for these types of ■ 20 percent of QBI from each of excluded businesses to qualify for the taxpayer’s trades or businesses the QBI deduction when: plus 20 percent of the taxpayer’s ■ Taxable income is less than qualified REIT dividends and qual- 157,500 for individuals or $315,000 ified PTP income; or for married filing jointly the full ■ 20 percent of the portion of 20% deduction is available. The the taxpayer’s taxable income that deduction phases out complete- exceeds the taxpayer’s net capital ly when taxable income exceeds gain. $207,500 for individuals or $415,000 for joint filers. While it may appear that the QBI ■ Annual gross receipts from deduction is a huge win for busi- all operations are less than $25 ness owners and trust beneficiaries, million, and less than 10 percent it is important to note that there are of that amount comes from SSTB several exceptions to the rules. Please see SLAVIN, Page 43 Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T31

Communication: Key to Successful Transitions of Family Wealth and Values

By Cary Stamp be willing to assist in the process by enced facilitator are vital. This can Cary Stamp Company embracing the family values, show- be a highly trained financial advisor One of the great lessons I have ing a willingness to lead and acquir- or a therapist who has the knowl- learned from my experience as a ing the work experience and intel- edge to tackle family business issues. business owner is the critical need lectual capital (education) to carry In many cases both a financial to always have a backup plan. Being the family into the next generation. advisor and therapist serve as team strategic positions us to get in front Communication of family values facilitators. The ideal setting for this of real issues that arise and enact and family history also has the effect meeting is on neutral ground, out- change with clear focus rather than of reducing the feeling of entitle- side of the family home or corporate forcing a reactive approach to unan- ment in the younger generations. offices, with key stakeholders invit- ticipated situations. Cary Stamp Many business owners are the first ed. The facilitator works with the In business, we think about things generation of their family to have family to set the agenda. The first like “what will we do when a key passes, the children are left with financial resources. They were raised meeting normally lasts anywhere employee departs?” and “how will substantial money but few skills to with experiences that were very from five to eight hours and covers we handle succession in the event of manage the financial capital of the different than what their children a broad range of topics including: a pre-mature death?” family. experienced. the succession plans, family philan- Fortunately, many of us have We advise that wealth manage- One of the most effective com- thropic efforts, developing a family addressed these issues as business ment training for family members munication strategies is to hold an mission statement and a discussion owners and some of us have ad- be approached in a manner much annual family meeting. This is not a of the family history. dressed them with our families, re- like how a successful business plans “DIY” undertaking. At most family Please see STAMP, garding how to transition the family and trains its next generation of meetings, the services of an experi- Page 37 wealth. Unfortunately, the planning talent. This model fosters critical we do for our business and the time sharing of knowledge and import- we spend preparing our employees ant values between parents and is usually far more comprehensive their children. It affords children than the effort we make to prepare important insight into the type our families for the eventual tran- of wealth they will be required to sition of our business, wealth and shepherd. This begins with a clar- values. ification of the family’s values and The statistics are staggering on ideally a family mission statement. this subject and they cross gener- In many cases, the first generation ational and cultural boundaries. has skimped and saved to start a For families that acquire significant successful enterprise, but the second wealth, that wealth is almost always generation has rarely felt lacking in dissipated in three generations or any material sense. This often can less! More than 90 percent of the lead to disastrous false impressions time this is true. We often will spend that the resources are unlimited, yet time doing strategic and technical preservation of the family wealth planning to save taxes or optimize — with proper training — can be a the amount that can be passed to simple task realized. beneficiaries, but how much time The academic and anecdotal re- and effort goes into training the search on this subject has found that beneficiaries to be responsible heirs the answer is simple: COMMUNI- and good stewards of the family CATE. Parents need to speak with fortune? Usually, very little is com- their children about their estate and municated and when a generation succession plans. Children need to T32 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter Using a Medicaid Asset Protection Trust®

By Darren J Mills, Esq., CPA, tive, would you invest in something otherwise be insurable, this could ChFC®, CLU® where there was an 80 percent be the only way of being insured as Mills Elder Law LLC probability of losing money? No Medicaid is an insurance program. matter what your financial situa- Since Congress does not want Bill I became an elder law attorney tion, most people are not willing Gates to give away all of his assets by becoming a caretaker for my to lose hundreds of thousands of and get Medicaid tomorrow, Fed- mother who was suffering from dollars even if you can “self-insure.” eral law has a 60-month lookback dementia and Parkinson’s. My par- LTC is big business! It is obvious to penalize anyone who gives away ents were born during the Depres- when you drive around and see the an asset for less than its fair market sion and never thought they would assisted living communities and/or value (i.e., for Medicaid there is no live to be 65, much less into their Darren Mills skilled nursing homes being built. annual exclusion like there is for 80s. Fortunately, my mother had a A viable tool in a practitioner’s gift tax). Florida has adopted the long-term care (“LTC”) insurance trend continuing until 2030, caus- toolbox for asset protection plan- Federal 60-month lookback period. policy (“LTCi”). When it comes to ing a major shift in the demograph- ning for LTC is a Medicaid Asset Ideally, the MAPT is established asset protection, insurance is your ics. People are living longer, and Protection Trust® (“MAPT”). during a period where the proba- first line of defense (e.g., LTCi in longevity planning is critical to Think of a trust as a treasure chest. bility within 60-months of needing our context). The majority of the make sure you don’t have too much With a revocable trust (a/k/a “liv- LTC is low (e.g., a 70-year old vs. population does not have LTCi and life at the end of your money. A ing trust”), an asset can be placed an 85-year old). pay for LTC out of pocket. female turning 65 has upwards of in the treasure chest, and just as In addition to being irrevoca- Ten thousand people a day are an 80 percent probability of need- easily, can be removed from the ble, a MAPT must not allow you turning 65-years young with this ing LTC. From a financial perspec- treasure chest. The main benefit (grantor) to have access to the of a revocable trust is avoidance principal as that would defeat the of probate, which in Florida can purpose of the MAPT, Medicaid be a time-consuming, expensive would correctly assert that the asset process. A revocable trust does in the trust is an available asset for not provide any Medicaid benefits; Medicaid. Ideally, the MAPT also therefore, the first requirement does not allow the grantor access for a MAPT is the trust must be to the income while mandating irrevocable. income distributions to the lifetime With an irrevocable trust, once beneficiaries (typically the chil- an asset goes into the treasure dren). Another requirement is that chest, it can check-out, but it the grantor cannot be the trustee; cannot leave (putting aside pro- therefore, typically one (or more) cesses like “decanting”). Irrevo- child is the trustee and also the cable trusts are used for estate tax beneficiary(ies). The MAPT usu- planning as well as domestic asset ally includes a “spendthrift” clause protection trusts. which offers creditor protection This brings me to my first philos- against claims of the beneficiaries ophy that I share with my clients. while the asset resides in the trust. Bill Gates can theoretically receive The MAPT is typically structured Medicaid, but he would need 61 as a grantor trust for tax purposes months to make that happen (un- (i.e., it doesn’t exist for income tax less you are a California resident). purposes) and included in your The point here is, no matter your Please see MILLS, net worth, obtaining Medicaid is Page 43 possible. For people who may not Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T33 What Is My Jewelry Worth?

By Hank Siegel Certified Gemologist Appraiser estate tax? This requires a different Hamilton Jewelers (CGA), American Gem Society. type of report and valuation. The While GG’s can provide you with IRS has very specific rules for a Sometimes, estate planning can information about your jewelry, “Qualified Appraiser” and for the be daunting and the importance of it is not enough to simply know report itself. An appraisal that is current and accurate appraisals for what you have. To determine the USPAP compliant is a requirement your fine jewelry and timepieces worth of your jewelry you need the for any appraisal where a Federal might be overlooked. Why get up- additional skills of a CGA. Your agency may be a user of the re- dated appraisals in connection with appraiser also needs to be certified port. A qualified appraiser is an estate planning? There are many with the most recent standards of important part of your estate tax good reasons. Hank Siegel the Uniform Standards of Profes- compliance team to assure that the 1. A professional appraisal sional Appraisal Practice (USPAP) tax liability is calculated properly provides you professional support personal assets, and knowing their to ensure they meet the ethical or that distribution to beneficiaries to defend against an IRS audit. value is critical to any financial and performance standards for an is fair. 2. The costs of appraisals are plan. Just like the other profes- appraisal professional in the United Hamilton Jewelers employs deductible expenses on estate tax sionals on your financial planning States. Your appraiser and apprais- professional appraisers that have returns and sometimes in estate team, it’s important to work with al both should be USPAP compli- extensive experience and creden- planning (e.g., family limited part- a qualified and accredited apprais- ant. tials in all matters regarding ap- nerships). er to ensure that this asset class is What if you want to donate jew- propriate appraisal protocol. Our 3. An accredited appraiser can properly managed, and that the elry to charity for a tax deduction Please see HAMILTON, help you determine which pieces proper valuation method is applied. or the items need to be valued for Page 38 in your collection require a full You may spend your life build- report. He or she can also help cat- ing your collection and your heirs alog and identify your collection. often have no indication of what to 4. Often the appraiser can do with them. Should the pieces assist an attorney in structuring an be bequeathed? Should they be estate plan that will maximize the converted to cash? Should they be tax benefits for the client by pro- donated? When should these ac- viding the attorney with a “value” tions occur? Like any other asset, point of view. the proper dialogue with a profes- 5. The appraisal can provide sional is necessary to make sure the a benchmark of value for an asset correct decisions are made. or collection, so that subsequent What should you look for in a appraisals will reassure the growth jewelry appraiser? First, the skills (or decline) in value. of a Graduate Gemologist (GG) A jewelry appraisal can be done are required to accurately identify on any item of jewelry, regardless and grade the components of the of the composition, style, or con- item including stone types, their dition. The purpose of a jewelry weights and grades, metal type and appraisal is to assign a precise val- how the piece was constructed. ue, precious metals and gemstone Once the work of the gemologist is markets fluctuate, so it’s critical to finished, the work of the appraiser update your fine jewelry appraisals can begin. To properly assign a every three years. value to an item requires additional Jewelry and watches may com- training in valuation and report prise a sizable portion of your writing. These are the skills of a T34 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter Charitable Gifting With Donor-Advised Funds

By Ben Lasater are similar. First, the donation is choice with the additional benefit United Capital Financial Advisers made to remove the assets from of allowing the funds to potentially the estate of the grantor. Then, the continue growing. Donating to charity is a great way assets are liquidated to create a to get involved with a cause that is pool of funds that can be invested What You Can Donate to a Donor close to your heart. There are many with the potential to grow tax-free. Advised Fund ways to pursue charitable goals. Finally, the assets are available to ■ Cash: A cash donation can be Donating your time, personal be granted to a charity or multiple invested in a donor advised fund property, investments, and cash are 501(c)(3) charities. with the potential for growth, tax- some of the most popular options free, providing additional funding available. However, many are de- Ben Lasater Benefits of a Donor Advised Fund for your favorite charities. terred from charitable gifts because ■ Support multiple charities, at ■ Stocks and other securities they are either undecided on which powers the philanthropic to take virtually any time, with a single ■ Publicly traded stocks charity they’d like to give to, or un- advantage of the tax deductions of contribution. ■ Mutual fund shares able to make a cash donation. an irrevocable charitable gift while ■ Take an immediate tax de- ■ Bonds Let’s take a deeper look at one maintaining the funds in an ac- duction for your contributions — ■ Privately held business inter- charitable vehicle that allows you count that they can later grant to a separating the timing of your tax ests to gift personal assets today, receive charity or multiple charities of their deduction from your charitable ■ Private company C-corp, and a charitable deduction today, and choice. support. S-corp stock choose a charity whenever you’re The process varies among do- ■ Create the ability to contrib- ■ LLC & Limited Partnership ready. A donor-advised fund em- nor-advised funds but the basics ute stocks, mutual funds, and interests non-publicly traded assets, such as ■ Private equity real estate, which other charities ■ Pre-IPO shares may not be able to accept. ■ Other non-publicly traded ■ Streamline your recordkeeping assets and consolidate tax receipts in one ■ Restricted stock location. ■ Real estate ■ Serve as a valuable estate plan- ■ Bitcoin ning tool to support your legacy ■ Oil and gas royalty interests goals. Talk to a Financial Planner Maximize Your Gifts and Your Part of knowing how to donate Deductions is understanding how much you Consider this example: Without can afford to give, which can be gifting to a donor-advised fund at difficult. Four in 10 donors sur- federal long-term capital gains rate veyed by Fidelity Investments were of 23.8%1 selling securities that are conflicted about whether to hold currently worth $450,000 with an on to money for personal needs or original cost of $300,000 would net donate it to charity. $414,300 cash donation. Converse- However, your financial planner ly, donating the $450,000 in appre- can help you identify and work to- ciated securities to a donor-advised ward your charitable goals, along- fund would net a $450,000 fund side the rest of your financial goals. bucket and deduction. That’s a Please see LASATER, $35,700 increase in the amount Page 43 available to gift to charities of your Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T35

PAULDINE PIERSHALSKI state regarding whether sharehold- releasing a guarantor needs to be From Page 6 From Page 9 er-level discounts are appropriate addressed with the company’s bank in business valuations prepared for before finalizing a divorce agree- ensure proper administration is to between the shareholders often of- divorce. Therefore, the reclassifica- ment. make sure your estate planning doc- fer the best indication of the value tion of shareholder debt as equity These are just a few of the many uments address any digital assets. of the subject interest. But, while can result in discounts and the loss complicated issues your attorney The conclusion is simple because binding parties to the agreement, of marital asset value. and business appraiser will address not every provider offers a specific the court is free to consider other Many questions need to be on your behalf. While the inclusion online tool (and likely, many users factors when determining value in answered when classifying share- of a family business in your divorce are unaware how to access it) and the context of divorce. holder notes as debt or equity. They proceedings can make things a bit relying on terms of service can have include: more complicated, working closely an undesirable outcome. Shareholder loans and personal ■ Has the obligation been formal- with your advisors and business ap- With any estate planning mat- guarantees ized in writing? praiser will help you make the most ters, it is important to be proactive Does your family business have • Is repayment unconditional informed decisions as you embark and consult with your attorney for shareholder loans on the balance with a fixed repayment schedule on this new chapter of your life. guidance. sheet? Shareholder loans are a debt- and reasonable interest rate? like form of financing provided by • Is the loan collateralized and Karen Piershalski provides business Joseph C. Pauldine is a Senior Vice shareholders to the business. They does it include default provisions? valuation of closely held businesses for President of Cypress Trust Company. are considered personal assets • Does the company generate Wilmington Trust’s Business Owner Advisory group, which develops wealth Mr. Pauldine assists individuals and includable in the marital estate, so sufficient cash flow to repay debt their families with custom investment obligations? planning strategies for business own- they will need to be valued along ers. Please contact Diane McNeal, Vice management solutions and trust ad- with the family business. Share- • Are the shareholder loans sub- ministration services. He received his President and Private Banking Regional holder loans are typically not worth ordinated to other sources of debt B.S. in Business Administration from Managing Director, at 561.630.2103, or their face value or unpaid balance. financing? Old Dominion University. [email protected]. They are a contract to repay a debt These factors are not exhaustive, in the future under specified terms. and the absence of one or more This article is not designed or intended Cypress Trust Company is a boutique The amount and timing of the fu- would not necessarily result in a to provide financial, tax, legal, account- corporate fiduciary that focuses on cre- reclassification, but help to deter- ing, or other professional advice since ating customized investment strategies, ture payments as well as the current mine the intent of the party making such advice always requires consider- serving as a corporate trustee, personal interest rate environment, strength the loan. ation of individual circumstances. There representative or agent during estate of the borrower, and underlying Personal guarantees are more is no assurance that any business/estate settlement and as an administrative collateral must all be taken into often than not required to obtain planning or investment strategy is suit- trustee for clients already committed to consideration before determining able for a specific business or investor. bank financing for small and mid- an investment plan. an estimated value. However, what Wilmington Trust is a registered service if the shareholder loans are not sized businesses. In some instances, mark. Wilmington Trust Corporation really loans at all but capital contri- debt is only extended because of is a wholly owned subsidiary of M&T SCHNEIDER butions in disguise? There is con- the personal guarantee or pledge of Bank Corporation. From Page 8 siderable ambiguity from state to personal assets. The possibility of

Lisa A. Schneider is the Co-Chair of the Private Wealth Services Group at caregiver strain and contribute to their financial objectives. He helps HEIN clients fully understand all of their Gunster. She is a Board Certified Trusts From Page 10 both quality of life and peace of and Estates attorney and concentrates mind. options. her practice in estate and trust planning long-term care and the inability to for high net worth individuals. She raise premiums in the long-term Steven Hein C.P.A., J.D., M.B.A, LL.M., Long-term care insurance benefits advises Firm clients on their personal may be subject to limitations, waiting care annuity products are further PFS, CFP® of Hein Wealth & Tax Solu- and business needs, including business tions LLC is an independent financial periods, and other restrictions. Guar- advantages over traditional long- succession planning, charitable planning, planner. He works with individuals, antees and benefits provided by life the management of wealth that passes term care. Long-term care coverage families and business owners to help insurance products are subject to the from one generation to another, and tax in all forms helps with financial them develop a strategic, long-term claims-paying ability of the issuing reduction strategies, among others. costs and additionally helps to ease financial plan that helps them achieve insurance company. T36 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter

KOHNER minates at the executive’s residence. Transportation Excise Tax Does From Page 11 In such cases, the flights should Not Apply to Owner Flights on Limitation of Excess Business be considered business travel. For Managed Aircraft Losses allowed. This includes aviation ex- income tax purposes, the word TCJA amended the tax law to Starting in 2018, an excess busi- penses, regardless of whether they “home” typically refers to the per- provide that owner flights on ness loss is the net business loss are directly related to a business son’s regular or principal place of managed aircrafts are not subject to from all trades or businesses of discussion, unless such benefits are business, not to a person’s primary Federal Transportation Excise Tax the taxpayer that exceed $500,000 treated as taxable compensation to residence. All the facts and circum- (FET). Instead, the flights are sub- (MFJ) or $250,000 (single). Excess an employee (or includible in gross stances of each particular situation ject to the non-commercial fuel tax. business losses of a taxpayer (other income of a recipient who is not an will need to be considered. The added provision aligns with the than a C corporation) will now be employee). long time common understanding deferred and carried forward as a Like-Kind Exchanges of this practice by the business part of the taxpayer’s net operat- Prohibition on Deduction of Em- The TCJA permanently limits aviation industry. Payments made ing loss. Therefore, a significant ployees’ Commuting Expenses like-kind exchanges to real prop- by the aircraft owner (or lessee of taxable loss created by an aviation Distinguishing between busi- erty for transfers after 2017. As a a qualified lease) for aircraft man- activity may be limited by the new ness travels and commuting has result, taxpayers will no longer be agement services related to main- excess rules. now become extremely important. eligible to defer taxable gain on the tenance, support, or flights on the TCJA now prohibits employers sale of aircraft via a like-kind ex- aircraft are not subject to the FET. Michael Kohner has extensive experi- from deducting the cost of provid- change, and any prior depreciation The owner or lessee does not need ence servicing complex high net worth families and their companies in the real ing transportation to employees to taken would be subject to recapture to be on the flight as long as he or estate, technology, entertainment, distri- commute between the employee’s and taxable at ordinary income tax she pays for the aircraft manage- rates. Through MACRS, the accel- ment services. Note that the FET bution, and venture capital industries. residence and place of employment, He consults with his clients with respect erated expensing of new and used exception only applies to flights unless it is provided for the safety to issues such as income tax planning, of the high level executive employ- property helps to compensate for paid for by the owner or lessee. tax provisions, financial analysis, deal ee. Most travel to or from business the repeal of like-kind exchanges Therefore, if an owner leases the structuring, family wealth, and charita- locations, other than an executive’s for tangible personal property. aircraft to a management company ble gift planning. primary place of business, may not However this begins to phase out and an affiliate of this owner pays be considered commuting even in 2023. for the flight, the exception may when such travel originates or ter- not apply.

the parents lose the right to make disqualifying the child from receiv- A 1982 graduate of St. John’s University KITROSER School of Law. Mr. Kitroser is AV rated From Page 12 medical and financial decisions ing those important benefits. for that child. Guardian Advocacy The issues facing families with by Martindale Hubbell, the highest possible rating for an attorney. He is of savings, self-sacrifice and life recognizes that many children with special-needs children are sig- special needs will require someone nificant and complex, requiring a member of the National Association insurance in order to provide suffi- of Elder Law Attorneys, the Academy else to continue to make medical knowledge that covers a variety of cient funding. of Florida Elder Law Attorneys, the and financial decisions for them social, economic and legal disci- Real Property and Trusts Section of the Legal into adulthood. Additionally, law- plines. Families should start plan- Florida Bar, The Elder Law Section of What can a lawyer do to help? yers can create Supplemental Needs ning early to provide their special the Palm Beach County Bar and is an Parents of special-needs children Trusts to shelter assets for persons needs children with the greatest affiliate member of the Florida State in Florida often become “Guard- on SSI and Medicaid, which en- level of support possible. Guardianship Association. In addition ian Advocates” for their children ables a family to place funds into a to being licensed in Florida, he is also through a Court proceeding. Once trust that will be a source of finan- Mr. Kitroser is the founder and manag- admitted to practice law in New York a child reaches adulthood (age 18), cial assets for their child, without ing attorney of Kitroser & Associates. and Colorado. Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T37

ALBERTSSON did not hand sign as many docu- played more than 800 rounds chance to own a small piece of From Page 13 ments as senator, congressman or while in office. Many of his letters history. Whether you’re interested president as one would assume; his include comments on Augusta in rare historic documents or let- popularity remains and his items secretaries signed much of his cor- National Golf Club, including a ters, stamps, coins, flags, campaign are highly sought after. respondence or autopen was used. 1952 letter in which he reports that buttons, clothing or kitsch, there Since Abraham Lincoln’s assas- Quite a few love letters written by he would like “to open a personal is something for everyone and at sination in 1865, his autographs, JFK have turned up in Palm Beach investigation” into recent changes every price point. signed documents and ephemera over the last few years. Most nota- to the 11th hole! Barack Obama are treasured by collectors. Doyle bly Doyle sold two complete letters loved basketball and signed balls Collin Sherman Albertsson is the Flori- auctioned off a feather from Lin- and two partial letters JFK wrote can be acquired on the internet. da Regional Director for Doyle Auction- eers & Appraisers, a full-service auction coln’s pillow, a piece of fabric and a to Karin Adele Gunilla von Post Items related to presidential hob- house headquartered in New York City. portion of crepe that hung on the Miller for $15,000. bies remind us that these were real Collectors are also fascinated by men who needed a break from the She received her B.A. in Art History front door of the house for $8,750! and History from Southern Methodist presidential pastimes and Doyle pressures of the White House. Later presidents were fascinated University and her M.A. in European by Lincoln memorabilia as well. A recently auctioned an inscribed Presidential autographs, docu- Decorative Arts from Parson’s School of copy of the last photograph of Lin- copy of Grover Cleveland’s book A ments and personal effects have Design. Her specialty is antique silver, coln taken during his lifetime, gift- Defense of Fisherman for $1,500 fascinated collectors since the dawn textiles and wallpaper. Ms. Albertsson ed to President Kennedy upon his and a Herbert Hoover archive of our nation. These mementos regularly travels throughout Florida to inauguration by the great Lincoln that included an album recording remind us that the Presidents were provide private collectors, heirs, families collector Frederick Hill Meserve, a Florida fishing trip for $12,500. men with frustrations, successes, and fiduciaries advice on the sale of a was sold by Doyle for $4,000. President Eisenhower was our heartbreaks, hopes and desires. single item, estate or collection. Interestingly, John F. Kennedy nation’s first golfer-in-chief and Collecting these documents is our

VOGELSANG ed transactions on behalf of the attend family business meetings. STAMP From Page 14 family investment entities. Lend- Each investor understood that they From Page 31 er Management employed five could withdraw their investments agement to argue that it was doing employees, most of whom were at any time if they became dissatis- When families implement a few much more than managing invest- non-family members. The family fied with how the investments were simple steps, we witness major ments “for its own account.” office researched and pursued new being managed. breakthroughs that have brought ■ Management Fees: Lender investment opportunities, review- The 2017 Act changes the analysis the parents closer to their children, Management received compensa- ing more than 150 private equity for structuring family offices. Most the children closer to each other tion separate from the amounts that and hedge fund proposals per year. family offices should seek the safe and helped ensure successful tran- it received for its capital interests Lender Management’s activities harbor of operating as “C” corpo- sitions of family wealth and values. in the three Lender investment were more than mere oversight and rations. Those family offices that Cary Stamp is a member of the Palm entities. Lender Management reporting. choose to organize as pass-through ■ Beach County Estate Planning Coun- held a “profits interest” in each of Profit-Based Model: Lender entities will need to follow the Management operated on a prof- Lender blueprint in order to qualify cil. He advises families all over the the investment entities which was country on wealth management and it-based model rather than a cost- their operating expenses for deduc- contingent upon a profit or an transition issues. He is a frequent increase in the value of assets under based office model. tion under Section 162. speaker who focuses on how you can ■ management. The fact that Lender Lender Management Clients make an impact on the lives of your Management received a fee which Did Not Act with a “Single Mind- Stephen G. Vogelsang is a Board Certi- children and grandchildren by careful- fied Tax Lawyer with the Palm Beach was different than a mere return on set”: Although the owners of the ly stewarding the family wealth. He is investment entities were members firm of Pressly, Pressly, Randolph & a CERTIFIED FINANCIAL PLAN- invested capital was a significant Pressly. Mr. Vogelsang practices in the factor in determining active trade of the extended Lender family, they NER®, Accredited Estate Planner and were geographically dispersed, areas of Estate Planning and Adminis- Chartered Advisor in Philanthropy. or business status. tration for high net worth families, Trust many of them did not even know Raised in Iowa and now residing in Ju- ■ Mere Investment Report- Planning and Administration, and Gift each other and they were frequently piter, Florida, he has been a practicing ing: Lender Management made and Estate Tax controversies with the financial advisor since 1990. investment decisions and execut- in such conflict that they did not Internal Revenue Service. T38 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter

TURKO ficiary during the extended term attaining the specified age, the sec- the trust. Furthermore, the trustee From Page 15 or expand a class of permissible ond trust may become an absolute must provide written notification appointees under an existing power discretion trust that allows distri- of the proposed decanting to all favor of such beneficiary. On the of appointment. In other words, butions in the trustee’s sole, abso- the qualified beneficiaries, trustees same note, if the first trust does not there is a lot of freedom in drafting lute and uncontrolled discretion and any person with a power to confer a power of appointment on the provisions of the second trust for the beneficiary’s lifetime. This remove or replace the trustee. This a beneficiary, the second trust can- during the extended term. This gives a trustee maximum flexibili- notice must be given at least 60 not grant a power of appointment can allow a trustee to address many ty in ensuring that trust funds are days before the effective date of the to such beneficiary. common issues. not used to enable the beneficiary’s decanting. The new statute allows for the For instance, many trusts have substance abuse problems since the The new Florida decanting statute second trust to extend beyond the specified age withdrawal rights for trustee can turn distributions off as introduces long-awaited changes term of the first trust. Importantly, a beneficiary at which point the necessary. If the complete distribu- making it more useful for trusts for any period after the first trust trust terminates. If the beneficiary tion happened, the trustee would that contain ascertainable distribu- would have terminated (the “ex- has substance abuse issues this can have no control over the funds and tion standards. Like a fine wine it tended term”), the provisions of be a big problem. The new decant- the distribution would only exac- has gotten better with age! the second trust are permitted to ing statute allows a trustee to de- erbate the beneficiary’s substance include language granting a trust- cant to a new trust that extends the abuse problems. Matthew N. Turko practices in Wills, ee absolute power to invade the term of the trust for the life of the The decanting statute preserves Trusts and Estates at the law firm of Haile Shaw & Pfaffenberger P.A. in principal of the second trust for the beneficiary. During the term until its notice and writing requirement. North Palm Beach. Matt focuses his benefit of the trust beneficiaries. the beneficiary attains the specified The power to decant must be age, the second trust will require a exercised in a written instrument practice on estate planning, federal The second trust can also create a income and transfer tax issues, and substantially similar distribution signed and acknowledged by the power of appointment in a bene- probate and trust administration. standard. Upon the beneficiary trustee and filed with the records of

each for Harry’s children. This is just one of numerous HAMILTON ganizations such as BESSEMER the Jewelers Vigilance From Page 16 Marie, one of Harry’s daugh- scenarios that point to the From Page 33 ters, receives income from her same conclusion - it simply Committee, Council taxable gain. trust during her life, and the is impossible to predict the team includes gemolo- for Responsible Jewelry What about estate tax? If principal grows to $7 million. future financial situation of gists who are Graduates Practices, and Jewelers the trust qualifies for the mari- If Harry’s personal representa- beneficiaries or tax law chang- of the Gemological of America, our asso- tal deduction, Sally will have tive made the appropriate gen- es. The solution is to structure Institute of America ciates are committed to a $16 million taxable estate. eration-skipping transfer tax a plan today that is flexible, (GIA) and members promoting responsible Assuming her exemption election when he died, Marie’s and it begins with a conversa- of the American Gem practices in a clear and is $11 million, there will be trust would be exempt from tion with your tax, financial Society, (AGS), and accountable manner. estate tax to pay on $5 million. generation-skipping transfer and legal advisors. National Association Hamilton Jewelers, since But if Harry’s personal repre- tax and pass to her children of Jewelry Appraisers its founding year of 1912, sentative made the “portabil- estate tax free. Leonard J. Adler, Esq. and Mark (NAJA). Our apprais- However, those assets have R. Parthemer, Esq. are both has always combined the ity” election on his estate tax ers are highly trained distinction of an global fine $3 million of built-in gain. If Managing Directors and Senior specialists in the areas return, his $10 million unused Fiduciary Counsel of Bessemer jeweler with the hospitality exemption will be added to Marie has a small estate of her of antique and estate of a family business. Spe- own, under today’s tax law it Trust, an exclusive wealth man- Sally’s, and the combined ex- agement firm for high net worth jewelry, buying and cializing in fine jewelry of would be better if the assets emptions will more than cover families. They are responsible for evaluations, insurance their own design and man- her taxable estate. were included in her estate – working with clients and their replacements, and cus- ufacture, Hamilton also still no estate tax, but a third advisors to develop practical and tomized appraisal ser- offers the world’s premium There’s More to Consider basis adjustment. If, on the efficient wealth transfer plans and vices. Following a strict brands in jewelry and the After Sally’s death, the $16 other hand, Marie has a large for guiding the firm on fiduciary code of ethics governed best in luxury timepieces, with unrivaled service and million trust is divided into estate, it might be better for issues. by international or- quality. separate trusts of $4 million the trust not to be included. Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T39

GELBER knowledge of the local communi- family. retary of State. From Page 17 ty’s needs. Fiduciary responsibility f) Obtain tax clearance letter shifts from the board of directors of Benefits of a donor-advised fund from state tax authority (if neces- it is not uncommon to realize that the private foundation to the board are: sary). you may wish to find a different of the Community Foundation, ■ Lower costs (usually 1 percent g) Get ready to enjoy life with way to satisfy the objectives out- and all administrative responsi- or less of the fund balance) and less bother from accountants and lined earlier. A PF may terminate bility transfers to the Community lower administrative burden. attorneys. its status under Internal Revenue Foundation’s staff. The family ■ Benefactors have fewer re- Code section 507(b) by distribut- terminating the private foundation sponsibilities, record-keeping is Private foundations still have ing all its net assets to one or more can, if they desire, advise the Com- simplified, and the sponsor their place in the world of chari- organizations holding a Determi- munity Foundation by identifying assumes all back-office duties, such table giving, but there are many in nation Letter as described under areas of interest for grant making, as compliance, state and feder- existence today that have outlived IRC Section 509(a)(1). There is no which could continue the private al filings, verifying grantee’s tax their utility and should be termi- termination tax required for this foundation’s original intent. We exempt status and ensuring grant nated for structures that are less method of termination. are fortunate here in South Florida disbursements in accordance with burdensome, while still accom- The successor public charity to have several Community Foun- IRS guidelines. plishing the original intent of doing must have been in existence for a dations that will accommodate ■ There is no federal excise tax some good in the world. continuous period of more than this such as the Jacobson Jewish on net investment income. 60 months before the transfer. The Community Foundation, the South ■ There is no minimum 5 per- Bibliography: American Endowment private foundation should file its Palm Beach County Foundation cent payout of grants. Foundation, “Terminating a Private Foundation” McAllister, Brian and Notice of Termination and final and the Community Foundation Timothy Yoder, “Closing Up Shop: How Form 990PF with the IRS subse- for Palm Beach and Martin Coun- The steps to terminate the private ties, to name a few. foundation should include: to Successfully Shut Down a Private quent to the terminating distri- Foundation”, Journal of Accountancy, a) The Board adopts a Plan of bution. It is important to file the July 2010. The New York Community Notice after the distribution of as- Donor-advised funds Dissolution. Trust, “Terminating a Private Founda- sets, so the private foundation can Donor-advised funds offer a very b) The state agency with juris- tion”, Professional Notes, Winter 2015. report net assets equal to zero and low-cost mechanism for benefac- diction over charities approves the US Treasury, IRS Publication 4779, limit the termination tax to zero. tors who wish to remain in the Plan “Facts about Terminating or Merging Two examples of public charities philanthropy business, but at a low- (usually the Attorney General’s Your Exempt Organization” 2009. qualified to receive the assets of the er price point. After conversion to Charities Bureau or a local Court). private foundation are Community the donor-advised fund, the bene- c) Transmission of assets to Cliff S. Gelber is a certified public accountant and partner at Gerson Foundations and/or Donor Ad- factors may continue to provide successor entity, e.g. Community Preston Klein Lips Eisenberg Gelber, vised Funds. input about how the funds should Foundation or Donor Advised be disbursed to charities. Fund. which has an office in Miami and Boca Raton. His clients are typically high Although the public charity d) Prepare and file the Notice Community foundations net worth individuals involved in real Community foundations pro- sponsoring the donor-advised fund of Termination and final Form estate, sports and private business or vide a well-established record of has final say over how the funds 990PF with the IRS. are retired. stewardship for philanthropy and a are invested and disbursed, they e) Dissolve the private foun- will usually follow the wishes of the dation’s corporate status with Sec-

marry non U.S. citizens and have may exist to minimize overall taxes West Palm Beach and Stuart. Patricia GIARRATANO concentrates in estate, trust and gift tax From Page 22 children. This adds complexities to for U.S. citizens, U.S. permanent transfer tax planning for the typical residents, and non-residents. planning & compliance, ultra-high net worth individual taxation & planning, As the world gets smaller, it is global family. It is important to un- and partnership taxation & planning. becoming more and more common derstand the laws of the country of Patricia A. Giarratano, CPA, is a Tax for U.S. citizens to own proper- domicile that govern the distribu- Director at Caler, Donten, Levine, Cohen, Porter & Veil, P.A. located in ty outside the U.S., work abroad, tion of wealth, and the treaties that T40 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter

TD WEALTH tax, trading or investment matters. of the issuer’s inability to meet prin- emerging markets. From Page 19 This material contains the cur- cipal and interest payments on the rent opinions of the authors but not obligation and may also be subject 1 12 Del. C. Section 3570 any provision that can be included 2 in a governing instrument on date necessarily those of TD Bank and to price volatility due to factors such 12 Del. C. Section 3570 and 3313 its affiliates and related entities, and as interest rate sensitivity, market 312 Del. C. Section 503. of modification upon the written 4 consent (or no objection) of the such opinions are subject to change perception of the creditworthiness 12 Del. C. Section 3521 without notice. The statements con- of the issuer and general market 512. Del. C. Section 3303 and 3339 settlor and all living fiduciaries and 6 beneficiaries.8 Unlike decanting tained herein are based on material liquidity. High yield, lower-rated 12. Del. C. Section 3339 believed to be reliable, but are not securities are subject to additional 712 Del C. Section 3528 or merger, Section 3342 permits 8 modifying a trust even if the modi- guaranteed. risks such as increased risk of de- 12 Del C. Section 3342 fication violates a material purpose This material is for informational fault and greater volatility because of the trust. purposes only and is not an offer or of the lower credit quality of the Suzanne Holmes is Vice President and Delaware law provides unique solicitation to buy or sell any security issues. Interest on municipal bonds Senior Relationship Manager. Her career opportunities for clients to preserve or other financial product or instru- is generally exempt from federal tax. is devoted to providing financial plan- and protect their assets. Clients ment. TD Bank and its affiliates and However, some bonds may be subject ning to her clients. She graduated from can benefit future generations while related entities are not liable for any to the alternative minimum tax and/ the University of Delaware. Suzanne is simultaneously retaining maximum errors or omissions in the infor- or state or local taxes. a CFP®. She can be reached at 561-570- privacy and control over trust assets mation or for any loss or damage Equities may decline in value due 3528 or [email protected]. in flexible trust vehicles. suffered. Graphs and charts are used to both real and perceived general This material should not be con- for illustrative purposes only and do market, economic industry condi- Kalimah Z. White is Vice President and sidered as investment advice or a not reflect future values or future tions, and individual issuer factors. Senior Trust Advisor, Delaware. She recommendation of any particular performance of any security, strategy, International investing may not utilizes the features of Delaware’s trust security, strategy or investment prod- or investment product. be suitable for every investor and is and tax laws to assess estate planning uct. Particular investment or trad- subject to additional risks, includ- needs. She graduated from Temple Uni- ing strategies should be evaluated Investment Risks ing currency fluctuations, political versity law school and works closely with relative to each individual’s objectives Bonds are affected by a number factors, withholding, lack of liquid- clients and their legal advisors. She can and risk tolerance. Readers are urged of risks, including fluctuations in ity, absence of adequate financial be reached at 302-351-4374 or kalimah. to seek professional advice with re- interest rates, credit risk, prepayment information, and exchange control [email protected] spect to their specific financial, legal, risk, and inflation risk. Corporate restrictions impacting foreign issu- debt securities are subject to the risk ers. These risks may be magnified in

circumstances. Unfortunately, the structured. Ideally, clients should Sharon C. Lindsey is a Director of Jones SENDZISCHEW Lowry and a non-practicing member of From Page 21 vast majority of insurance agents seek insurance advice from an have one of two inherent conflicts of advisor who sits on the same side the Florida and New Jersey Bars, Past weigh the options below: interest. At one end of the spectrum, of the table with them and not the President of the Palm Beach County ■ Do a 1035 exchange to an annu- career agents have contracts that insurer. Hopefully that person will Estate Planning Council and Planned ity. require loyalty to their company and be an independent insurance expert Giving Council of Palm Beach County ■ Surrender the policy for its cash limit access to the products of other with the skill, judgment, expertise and currently serves on the board of the value. carriers. At the other end of the and product solutions to guide East Coast Estate Planning Council. ■ Sell the policy to a life settlement spectrum, brokerage agents affiliate clients successfully throughout their company. with producer groups that focus on lifetime. Jones Lowry is an independent M Finan- sales from a limited group of carri- cial life insurance planning firm special- The importance of advisor inde- ers in order to maximize revenues. Adam D. Sendzischew is a Director izing in innovative life insurance solu- pendence Insurance expertise and objec- at Jones Lowry, a Certified Financial tions for ultra-high net worth families In our opinion, independence is tive advice are needed more than Planner™, a Chartered Life Underwriter, including the analysis, design, implemen- essential to achieve and properly ever in today’s environment. Life a member of the Society of Trust and tation, funding and administration of life safeguard the clients’ needs both at insurance is complex, and clients Estate Practitioners, and a graduate of insurance portfolios. File#1456-2018 time of purchase and when alterna- purchase policies from people they the University of Miami with a B.S. in tives are considered due to changing trust, often not fully understanding Finance & Law, an MBA in Finance and what they are buying or how it was an MBA in Operations Management. Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T41

estate plan is to function appropri- the premier attorney-rating service, and taxation since 1975. He holds a DOANE Martindale Hubbell. She is also a cer- post-doctorate degree in tax law and From Page 23 ately, it must be reviewed periodi- cally, particularly upon the happen- tified public accountant and founder of holds the highest ratings (“AV”) from the Guardianship Education Committee the premier attorney-rating service, those strategies to be significantly ing of any significant life events. of the Palm Beach County Bar Associ- Martindale Hubbell. He is board cer- modified. ation. tified in wills, trusts and estates by the A principal of Doane & Doane, P.A., As the foregoing considerations Florida Bar Board of Legal Specializa- Rebecca G. Doane is Florida Bar board illustrate, an estate plan is not a A principal of Doane & Doane, P.A., tion. certified in wills, trusts and estates. She static collection of documents to be Randell C. Doane has practiced law holds the highest ratings (“AV”) from filed away until your death. If your in the area of estate planning, probate

EATON ers. “Maintaining good connections that they have the ability to con- ern-day Ponce de Leon, armed From Page 24 with family, friends and commu- sciously choose how to spend every with the tools and resources to help nity makes us happier and health- moment of their lives. This can be elder clients embrace each of the is especially hard because we must ier period,” according to Robert an exciting endeavor because most four success factors to design their pivot at every corner responding Waldinger, current Director of the elders choose to spend their time own Fountain of Youth, and live a to ever-changing circumstances Harvard Study of Adult Develop- very differently than before, using vibrant and inspiring later life. and needs. The most fulfilled and ment, the longest study ever con- their old skills for new purposes engaged elders possess a growth ducted on what make us age well. and to pursue new passions. Yet, it Jennifer M. Eaton is a Partner and mindset. Allowing themselves to It is especially important to branch can be hard to pivot and I spend a Senior Client Advisor with Ballentine Partners, an independent, client-centric continue to learn and grow, many out and make connections beyond lot of time with my clients helping investment and wealth management in ways they may have never imag- the family. them to discover ways they can continue to be engaged and pur- firm. In her work with families, Jennifer ined. draws on her extensive legal knowledge Drive poseful at this stage of life. and wealth planning skills to assist Engagement The final success factor, drive, is I now think about these factors families in defining, articulating and The next success factor, engage- about preserving and maintaining regularly, both in my own life and achieving their various planning goals. ment, is about finding energy by a sense of purpose and motivation. with my client work. I wonder cultivating relationships with oth- For the first time, many elders find whether advisors are the mod-

penalties. “U.S. person” to file when there is failure to comply was non-willful. OFFSHORE ■ From Page 25 Direct or Indirect Ownership foreign involvement. Since the IRS may terminate this of Foreign Companies with Pas- procedure at any time, taxpayers a U.S. business and making pay- sive Investments - Form 8621 must What should you do if you are not are encouraged to come forward ments on U.S. source income to a be filed and there are elections in compliance? now. foreign person, a partnership with associated with this form that must While the Offshore Voluntary In all cases, we recommend you income that has a foreign partner, be addressed for the first year the Disclosure Program has ended, the consult a tax advisor that is knowl- an estate or trust with income investment is owned or a nonres- IRS still offers Streamlined Filing edgeable about these matters. passing out to foreign beneficiaries, ident alien becomes a “U.S. person.” Compliance Procedures for indi- or you are buying real estate from ■ Engaging in Transactions viduals who were not aware they Nancy Crowder-McCoy and Stephanie a nonresident alien. In all of these with Foreign Trusts or Receiv- had reporting obligations. This op- Murray are partners with the pro- fessional services firm Carr, Riggs & situations, there are exceptions ing Certain Foreign Gifts - These tion is available for taxpayers who Ingram LLC, providing tax and estate and some treaty provisions that transactions require the filing of voluntarily come forward by dis- Form 3520. closing their offshore income and planning services to high net worth override the general rule. Failure individuals and families. to withhold and file the applicable These are just a few of the myri- assets. The applicant must certify forms can lead to very significant ad of forms that the IRS requires a under penalty of perjury that the T42 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter

Securities offered through Kestra Invest- your individual situation. All guaran- IS), member FINRA/SIPC. Kestra IS is KAWCZENSKI ment Services, LLC (Kestra IS), member tees subject to the claims paying ability not affiliated with Financial Architects From Page 26 FINRA/SIPC. Kestra IS is not affiliated of the issuing insurance company. In- Partners, LLC with Financial Architect Partners, LLC surance Products: 1) are not a deposit new policies and portfolios, look This material was created to provide or other obligation of or guaranteed into the marketplace of carriers, Joseph A. Kawczenski is Managing Di- accurate and reliable information on by, any bank or bank affiliate; 2) are rector of Financial Architects Partners’ products, and funding patterns, the subjects covered but should not be not insured by the FDIC or any other (FAP) Palm Beach office. FAP has six discuss with your advisers before regarded as a complete analysis of these federal government agency, or any bank offices around the country and manages implementing, and know your op- subjects. It is not intended to provide or bank affiliate; and 3) may be subject more than $20 billion in death benefit tions going forward – whether it be specific legal, tax or other professional to investment risk, including possible for more than 425 families. premium or death benefit changes. advice. The services of an appropriate loss of value. Securities offered through professional should be sought regarding Kestra Investment Services, LLC (Kestra

diamonds. have indicated that the prices of SAMUELS Art Samuels is a GIA Graduate Gem- From Page 27 To summarize: natural diamonds, gems made by man or with the help created solely by nature, reign of man can drop like a rock, while ologist. He owns multiple wholesale and retail jewelry businesses and is an and moissanites. A jeweler might supreme. They are rare and get- not hurting the strong prices of avid buyer and seller of fine gems and pay $5000 for a beautifully cut ting rarer. Man-made diamonds, the natural gems. Buying a man- manufactured in huge factories, made diamond at today’s relatively jewelry. Art is also a frequent speaker to one carat natural diamond when a groups of Gemologists, Appraisers, and are still relatively expensive today, trong prices would not be a good similar looking CZ would cost one Scientists. In addition, Art is a retired dollar. The introduction of these di- but they are being produced fast- investment. Generally, if people can US Navy Commander with 24 years amond simulants into the market- er, cheaper, and in ever increasing afford it, they will pay the much active duty. . place has not hurt diamond prices quantities. Historical examples higher price to give a natural dia- nor the high demand for natural we’ve seen with rubies and pearls mond as a symbol of their love.

REYNOLDS their loved ones. However, while or PPVA contract). In doing so, er) income tax environment. From Page 28 representing an effective strategy assets held within the contract from an estate tax planning per- grow tax-deferred. Further, to the David Reynolds is Director of Business during his or her lifetime. spective, these trusts often subject extent that the grantor still lives in Development for Spearhead Capital, LLC. Spearhead is a boutique financial So how does this relate to the the grantor to capital gains and/or one of the above-mentioned high services firm that focuses on building migratory client, you might ask? income taxes generated by invest- income-tax states, but plans to ments held within said trusts. establish tax residency in a lower custom solutions for ultra high net Many clients, while living in high worth individuals, family offices, and One alternative to consider is to tax jurisdiction in the future (hello, income-tax states (here’s looking institutions. The information provided at you, CA, NY, CT, MA, NJ!), have said trust purchase a PPLI Florida!), the client can benefit herein is for informational purposes. establish and fund irrevocable or PPVA contract on the grantor from near-term tax deferral, and Speak with your investment and legal grantor trusts as a long term means (in fact, a wide variety of trusts then reserve the right to access professionals before making an invest- to transfer assets outside of their common to any core estate plan their funds in the future while liv- ment. estate, for the ultimate benefit of could technically purchase a PPLI ing in a much sunnier (i.e. friendli-

LYON chances of reaping profits some- mance is not indicative of future results. holds the Series 65 Investment Advisor where along the line is greater. Investments involve risk and are not Representative license. He also holds the From Page 29 guaranteed. Be sure to first consult 2-15 Life Health & Variable Annuity li- with a qualified financial adviser and/ cense in both Florida and in New York. ing profit or loss. It is our personal TFG Financial Advisors, LLC is a reg- or tax professional before implementing Prior to employment at TFG Financial, responsibility to educate ourselves istered investment advisor. Information presented is for educational purposes any strategy discussed here. Cory was a Financial Advisor at Forti- about these opportunities before only and does not intend to make an tude Investment in Jupiter, Florida. committing to them, and if we are offer or solicitation for the sale or pur- Cory F. Lyon serves as a Financial Ad- educated decision makers, our chase of any securities, and past perfor- visor at TFG Financial Advisors. Cory Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T43

SLAVIN factors, including the amount of fixtures and equipment, that the those tax savings for the majority From Page 30 W-2 employee wages the business business owns and uses to generate of businesses structured as pass- pays and the unadjusted tax ba- qualifying business or trade in- through entities. However, this services, or sis immediately after acquisition come. provision of tax reform provides ■ Annual gross receipts from (UBIA) of qualified property those Under these limitations, pass- individuals with several opportu- all operations are more than $25 businesses own. More specifically, through entities that pay large nities to plan ahead and implement million, and less than 5 percent of when taxable income exceeds the sums of W-2 wages may be able to strategies that could ultimately that amount is derived from the annual threshold, the deduction is take a larger QBI deduction than reduce their tax liabilities. performance SSTB services. limited to: those that pay less in wages or have ■ the lesser of 20 percent of QBI, fewer W-2 employees. The same is Adam Slavin, CPA, is a senior manag- Limitations based on Taxable or true for owners of capital-intensive er with Berkowitz Pollack Brant’s Tax Services practices, where he provides Income for Qualifying Businesses ■ the greater of: businesses, such as real estate, who tax planning and consulting services to Once taxable income (before the ■ 50 percent of the entity’s W-2 may be in a better position to maxi- wages; or mize their QBI deduction. high-net-worth individuals and closely QBI deduction) exceeds $157,500 held business. He can be reached at ■ 25 percent of W-2 wages plus an While many taxpayers will re- for individuals, or $315,000 for the CPA firm’s West Palm Beach, Fla., married couples filing jointly, the additional 2.5 percent of the UBIA ceive big breaks from the new law, office at (561) 361-2000 or via email at deduction is subject to restric- (or the original purchase price) the rules for determining eligibility [email protected]. tions based upon a wide range of of depreciable tangible property, and calculating the new QBI de- including real estate, furniture, duction may diminish or eliminate

MILLS cumstances. you have taken steps to preserve ate an attorney-client relationship. From Page 32 Why consider a MAPT? Use a assets for your heirs. The goal is to MAPT to carve out a portion of shift LTC risk from you to a third Darren is a licensed attorney in FL, NJ taxable estate to take advantage your estate today for your heirs party. The point is, do something, and PA and a CPA in FL and NJ. Mills Elder Law LLC strives to make a differ- of the basis step-up upon death. while maintaining certain income as there is no perfect answer to ence in the lives of others in FL and NJ With a stroke of the key, the MAPT tax benefits as if you owned the each situation. asset directly. For example, fund a DISCLAIMER: This article does when dealing with long-term care and/ could be a non-grantor trust and or special needs. He can be reached at MAPT with the primary residence not constitute tax, accounting, legal excluded from your taxable estate [email protected]. depending on your individual cir- and a life insurance policy so that or financial advice nor does it cre-

the invested balance, applying clients with managed accounts, United LASATER Capital has discretionary authority over 1 This assumes all realized gains are From Page 34 their expertise to help drive higher returns from every donation. After investment decisions. Investing involves subject to the maximum federal long- risk and clients should carefully consid- term capital gains tax rate of 20% and They can also help you identify all, if your Giving Account balance grows, that’s even more money for er their own investment objectives and the Medicare surtax of 3.8%. This does charitable tax-saving strategies you never rely on any single chart, graph or not take into account state or local the charities you support. may not even know about. marketing piece to make decisions. The taxes, if any. A financial planner can help you information contained in this article NOTES: *Some of this material has take full advantage of your donor is intended for information purposes Ben Lasater specializes in the design been resourced from Fidelity Charitable. advised fund. You can give them only, is not a recommendation to buy and implementation of wealth manage- United Capital Financial Advisers, LLC full or partial access to your Giving or sell any securities, and should not be ment strategies for professional athletes, (“United Capital”) provides financial considered investment advice. Please entrepreneurial professionals, and small Account, enabling them to make life management and makes recom- contact your financial adviser with business owners. He can be reached at: donations and recommend grants mendations based on the specific needs questions about your specific needs and 754.900.4913, or, ben.lasater@unitedcp. to charities on your behalf. They and circumstances of each client. For may be able to actively manage circumstances. com. T44 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter

Membership Directory Palm Beach County Estate Planning Council, Inc.

Laurie Albert Christine Bialczak, J.D., LL.M. Jordan Brown Palm Beach Gardens, FL 33410 Rosanne M. Duane Esq., AEP® Divine, Blalock, Martin & Sellari, LLC Alley, Maass, Rogers & Lindsay, P.A. Home Care Assistance of Palm Beach Office: (561) 626-2101 DSM Law 580 Village Blvd., Suite 110 340 Royal Poinciana Way, Suite 321 County [email protected] 250 S. Central Blvd., Suite 202 West Palm Beach, FL 33409 Palm Beach, FL 33480 4218 Northlake Blvd. Jupiter, FL 33458 Office: (561) 686-1110 Office: (561) 659-1770 Palm Beach Gardens, FL 33410 Nancy Crowder-McCoy, CPA Office: (561) 747-1646 [email protected] [email protected] Office: 561-429-8292 Carr, Riggs & Ingram, LLC [email protected] [email protected] 33 SW Flagler Avenue Collin Albertsson Peter F. Bono CLU, ChFC®, CRPC, Stuart, FL 34994 Keith A. Dubauskas, MBA, CMT Doyle Auctioneers & Appraisers RHU®, CFS®, CAP® Robert M. Burns CFP®, ChFC®, Office: (772) 283-2356 One + One Wealth Management of 174 East 87th Street Wealth Planning Solutions, Inc. AEP®, CLU®, CPWA® [email protected] Raymond James New York, NY 10128 324 Royal Palm Way, Suite 203 Burns Nevins Wealth Management 3399 PGA Blvd., Suite 200 Office: (561) 322-6795 Palm Beach, FL 33480 Group of J.P. Morgan Securities Maura S. Curran, Esq. Palm Beach Gardens, FL 33410 [email protected] Office: (561) 802-3770 3801 PGA Blvd., Suite 800 The Curran Law Firm Office: (561) 630-7383 [email protected] Palm Beach Gardens, FL 33410 601 Heritage Drive, Suite 224 [email protected] Jennifer Amarnick Office: (561) 694-5666 Jupiter, FL 33458 Kevin Bourke Jupiter Medical Center Foundation [email protected] Office: (561) 935-9763 Merrill Lynch Tanya C. Durst, J.D., LL.M. 1210 S. Old Dixie Highway [email protected] Comiter, Singer, Baseman & Braun, 222 Lakeview Avenue, Suite 1300 Jupiter, FL 33458 LLP West Palm Beach, FL 33401 Alexis Cronin Butler Office: (561) 263-3761 Bonhams 3801 PGA Blvd., Suite 604 Office: (561) 514-4885 Joseph H. Deary [email protected] 95 Merrick Way, 3rd Floor Nicklaus Children’s Hospital Founda- Palm Beach Gardens, FL 33410 [email protected] Coral Gables, FL 33134 tion Office: (561) 626-2101 Susan P. August Tad Boyes Office: 305-878-5366 1645 Palm Beach Lakes Blvd., Suite [email protected] BNY Mellon Wealth Management Legend Wealth Management [email protected] 380 3300 PGA Blvd., Suite 200 11780 US Highway 1, Suite 203N West Palm Beach, FL 33401 Jennifer M. Eaton Palm Beach Gardens, FL 33410 Palm Beach Gardens, FL 33408 William K. Caler, Jr., CPA Office: (305) 794-7259 Ballentine Partners, LLC Office: (561) 868-7414 Office: 561-425-7353 Caler, Donten, Levine, Cohen, Porter [email protected] 3507 Kyoto Gardens Drive, Suite 320 [email protected] [email protected] & Veil, P.A. Palm Beach Gardens, FL 33410 505 S. Flagler Drive, Suite 900 Marc A. DePaul Office: (561) 508-4512 Jeffrey A. Azis CPA, AEP® William E. Boyes, Esq. West Palm Beach, FL 33401 JJack Family Office [email protected] Jeffrey A. Azis, CPA, PA Boyes, Farina & Matwiczyk, P.A. Office: (561) 832-9292 555 NE 185 Street, Suite 201 631 US Highway One, Suite 308 3300 PGA Blvd., Suite 600 [email protected] Miami, FL 33179 Connie A. Eckerle, CPA North Palm Beach, FL 33408 Palm Beach Gardens, FL 33410 Office: (561) 291-9162 Smolin, Lupin & Co, LLC Office: (561) 842-1973 Office: (561) 694-7979 Heather Carestia, CPA [email protected] 14155 US Highway One, Suite 200 [email protected] [email protected] BDO USA, LLP Juno Beach, FL 33408 1601 Forum Place, 9th Floor Anné Desormier-Cartwright, Esq. Office: (561) 231-5013 Paul A. Baldovin, Jr., Esq. Lawrence C. Boytano West Palm Beach, FL 33401 Elder and Estate Planning Attorneys [email protected] Burns Nevins Wealth Management Hodgson Russ LLP Office: (561) 207-2817 PA Group of J.P. Morgan Securities 440 Royal Palm Way, Suite 202 [email protected] 480 Maplewood Drive, Suite 3 Ellen Emerson, RN, MS 3801 PGA Blvd., Suite 800 Palm Beach, FL 33480 Jupiter, FL 33458 SeniorBridge Palm Beach Gardens, FL 33410 Office: (561) 656-8013 Martin Cass CPA, MBA, CVA Office: (561) 694-7827 1665 Palm Beach Lakes Blvd. Office: (561) 694-5664 [email protected] BDO USA, LLP [email protected] West Palm Beach, FL 33401 [email protected] 1601 Forum Place, 9th Floor Office: (561) 268-6912 Michael G. Becker, CDFA Gregg Brant, CFP® West Palm Beach, FL 33401 Randell C. Doane J.D., L.L.M. [email protected] SunTrust Private Wealth Management Burns Nevins Wealth Management Office: (561) 207-2810 Doane & Doane, P.A. 440 Royal Palm Way, Suite 102 Group of J.P. Morgan Securities [email protected] 2000 PGA Blvd., Suite 4410 Philip Engman, J.D. LL.M. Palm Beach, FL 33480 3801 PGA Blvd., Suite 800 North Palm Beach, FL 33408 The Northern Trust Company Office: (561) 805-5765 Palm Beach Gardens, FL 33410 David F. Click Office: (561) 656-0200 3100 N. Military Trail [email protected] Office: (561) 694-5674 David F. Click, Esq. [email protected] Boca Raton, FL 33431 [email protected] 810 Saturn Street, Suite 15 Office: (561) 912-4037 David R. Bennett, Esq. Jupiter, FL 33477 Rebecca G. Doane J.D., CPA [email protected] Bennett & Associates, P.A. Keith B. Braun Esq. Office: (561) 747-7077 Doane & Doane, P.A. 1800 South Australian Avenue, Suite Comiter, Singer, Baseman & Braun, [email protected] 2000 PGA Blvd., Suite 4410 Dayle Feingold 300 LLP North Palm Beach, FL 33408 Feingold Home Health Services West Palm Beach, FL 33409 3801 PGA Blvd., Suite 604 Andrew R. Comiter J.D., L.L.M. Office: (561) 656-0200 6801 Lake Worth Road Office: 561-653-3903 Palm Beach Gardens, FL 33410 Comiter, Singer, Baseman & Braun, [email protected] Green Acres, FL 33467 [email protected] Office: (561) 626-2101 LLP Office: (561) 210-9096 [email protected] 3801 PGA Blvd., Suite 604 Rachel Doorly [email protected] Arthur L. Bernstein Palm Beach Gardens, FL 33410 Winston Art Group Richard S. Bernstein Insurance Group, Erik Brown, CLU® Office: (561) 626-2101 777 South Flagler Drive, Suite 800 Inc. Erik Brown Insurance [email protected] West Palm Beach, FL 33401 1551 Forum Place, Suite 300A 139 Sunrise Avenue, #108 Office: (561) 952-2527 West Palm Beach, FL 33401 Palm Beach, FL 33480 Richard B. Comiter J.D., L.L.M. [email protected] Office: (561) 689-1000 Office: (617) 510-2644 Comiter, Singer, Baseman & Braun, [email protected] [email protected] LLP 3801 PGA Blvd., Suite 604 Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T45

Membership Directory Palm Beach County Estate Planning Council, Inc.

Carol Fischetti Ellen Gallagher CFP® Jason Haselkorn, Esq. Colin Holloway, ChFC® R. Marshall Jones J.D., CLU®, Reverse Mortgage Funding LLC South Florida Wealth Haselkorn & Thibaut, P.A. Jones Lowry ChFC®, AEP® 5201 Central Gardens Way, Suite 202 Management LLC 359 S. County Road, Suite 101 470 Columbia Drive, Suite 100-E Jones Lowry Palm Beach Gardens, FL 33418 701 US Highway One, Suite 404 Palm Beach, FL 33480 West Palm Beach, FL 33409 470 Columbia Drive, Suite 100-E Office: (561) 351-4461 North Palm Beach, FL 33408 Office: (561) 585-0000 Office: (561) 712-9799 West Palm Beach, FL 33409 [email protected] Office: (561) 840-8440 [email protected] [email protected] Office: (561) 712-9799 [email protected] [email protected] Nathan Flah Dermot T. Healey, CLU, ChFC, Suzanne Holmes, CFP®, CAP® Flah & Company Irv Geffen AEP®, CASL, CAP® TD Wealth Susan Kaplan P.O. Box 31807 MorseLife Foundation 400 Ocean Trail Way, #110 230 Royal Palm Way, Suite 100 Fuoco Group Palm Beach Gardens, FL 33420 4920 Loring Drive Jupiter, FL 33477 Palm Beach, FL 33480 772 U.S. Highway One, Suite 200 Office: (561) 655-7976 West Palm Beach, FL 33417 Office: (207) 415-2269 Office: (561) 570-3528 North Palm Beach, FL 33408 [email protected] Office: (561) 526-5877 [email protected] [email protected] Office: (561) 209-1107 [email protected] [email protected] Richard Flah Steven Hein, Esq., CPA, MBA Marjorie A. Horwin, CPA Flah & Company Clifford S. Gelber, CPA Hein Wealth & Tax Solutions LLC MBAF Emily Karr P.O. Box 31807 Gerson, Preston, Klein, Lips, Eisenberg 4600 Military Trail, Suite 226 225 N.E. Mizner Blvd., Suite 685 American Cancer Society, Inc. Palm Beach Gardens, FL 33420 & Gelber, P.A. Jupiter, FL 33458 Boca Raton, FL 33432 621 Clearwater Park Road Office: (561) 655-7976 1951 NW 19th Street, Suite 200 Office: (561) 249-1787 Office: (561) 909-2100 West Pam Beach, FL 33401 [email protected] Boca Raton, FL 33431 [email protected] [email protected] Office: (561) 650-0127 Office: (561) 287-4929 [email protected] [email protected] Christa W. Herman, Esq. Lisa L. Huertas, MBA Joshua Fleming Walser Law Firm Lisa L. Huertas, MBA, Inc. Joseph Kawczenski U.S. Bank Wealth Management Patricia A. Giarratano, CPA, MST 4800 N. Federal Highway, D108 6392 Fox Run Circle Financial Architects Partners 324 Royal Palm Way, Suite 101 Caler, Donten, Levine, Cohen, Porter & Boca Raton, FL 33431 Jupiter, FL 33458 777 S. Flagler Drive, Suite 800W Palm Beach, FL 33480 Veil, P.A. Office: (561) 750-1040 Office: (561) 254-7684 West Palm Beach, FL 33401 Office: (561) 653-3360 505 South Flagler Drive, Suite 900 [email protected] [email protected] Office: (561) 283-8020 [email protected] West Palm Beach, FL 33401 [email protected] Office: (561) 832-9292 April A. Hicks, CFP® Michael A. Hyett Sandra B. Fleming [email protected] Carr, Riggs & Ingram, LLC Fox Rothschild LLP Mitchell I. Kitroser, Esq. U.S. Bank Wealth Management 33 SW Flagler Avenue 777 S. Flagler Drive, Suite 1700 West Kitroser & Associates 324 Royal Palm Way, Suite 101 Lawrence W. Gonnello Stuart, FL 34994 Tower 631 U.S. Highway 1, Suite 406 Palm Beach, FL 33480 Alex Brown Office: (772) 283-2356 West Palm Beach, FL 33401 North Palm Beach, FL 33408 Office: (561) 653-3341 250 Royal Palm Way, Suite 200 [email protected] Office: (561) 835-9600 Office: (561) 721-0600 [email protected] Palm Beach, FL 33480 [email protected] [email protected] Office: (561) 820-2835 Barbara Higgins William M. B. Fleming, Jr. [email protected] NV Realty Group Cynthia J. Jackson, Esq. Sasha A. Klein, J.D., LL.M., AEP® Palm Beach Atlantic University 11811 US Highway 1, Suite 205 Scott, Harris, Bryan, Barra & Jor- Proskauer 901 S. Flagler Drive Glenn Graves, ChFC® North Palm Beach, FL 33408 gensen, P.A. 2255 Glades Road, Suite 421 West Palm Beach, FL 33401 Northwestern Mutual Office: (561) 596-5516 4400 PGA Blvd., Suite 603 Boca Raton, FL 33431 Office: (561) 803-2004 250 S. Australian Avenue, Suite 1601 [email protected] Palm Beach Gardens, FL 33410 Office: (561) 995-4711 [email protected] West Palm Beach, FL 33401 Office: (561) 624-3900 [email protected] Office: (561) 284-8111 Rick Hoagland, CPA/ABV/CFF, CFE, [email protected] Douglas J. Frevert CFP® [email protected] CVA Stuart B. Klein, J.D., LL.M. Raymond James Financial Services, Caler, Donten, Levine, Cohen, Porter & Ronald Jacobson, CPA Wagner Law Group Inc. Karen Greene Veil, P.A. Carr, Riggs & Ingram, LLC 7108 Fairway Drive, Suite 125 5601 Corporate Way, Suite 106 Hired Hearts 505 S. Flagler Drive, Suite 900 3300 PGA Blvd., Suite 700 Palm Beach Gardens, FL 33418 West Palm Beach, FL 33407 9770 S. Military Trail, B-4 Suite 202 West Palm Beach, FL 33401 Palm Beach Gardens, FL 3310 Office: (561) 478-1588 Office: (561) 327-7900 Boynton Beach, FL 33436 Office: (561) 832-9292 Office: (561) 427-0300 [email protected] [email protected] Office: (561) 432-7800 [email protected] [email protected] [email protected] Michael L. Kohner CPA, CFP®, Amy Friedman, MSW Elliot F. Hochman Esq. W. Scott Johns, V, J.D., LL.M. AEP®, CAP® Senior Helpers of the Palm Beaches Daniel A. Hanley Esq. Brookmyer, Hochman, Probst & Jonas, Doane & Doane, P.A. HBK CPAs & Consultants 631 North U.S. Highway 1, Suite 100 Gunster, Yoakley & Stewart, P. A. P. A . 2000 PGA Blvd., Suite 4410 525 Okeechobee Blvd., Suite 1140 North Palm Beach, FL 33408 777 S. Flagler Drive, Suite 500E 3300 PGA Blvd., Suite 500 North Palm Beach, FL 33408 West Palm Beach, FL 33401 Office: (561) 906-1006 West Palm Beach, FL 33401 Palm Beach Gardens, FL 33410 Office: (561) 656-0200 Office: (561) 469-5492 [email protected] Office: (561) 650-0531 Office: (561) 624-2110 [email protected] [email protected] [email protected] [email protected] Mitch Frownfelter Kyle Michelle Jones, CFP® Edward Jones David M. Harvan, CFP®, AEP® David E. Holland J.D., CFA, CFP® Jones Lowry Loggerhead Plaza Merrill Lynch Ameriprise Financial Services, Inc. 470 Columbia Drive, Suite 100-E 14263 U.S. Highway 1 900 South US Highway 1, Suite 400 11300 U.S. Highway One, Suite 600 West Palm Beach, FL 33409 Juno Beach, FL 33408 Jupiter, FL 33477 Palm Beach Gardens, FL 33408 Phone: (561) 712-9799 Office: (561) 627-7190 Office: (561) 745-1418 Office: (561) 383-3610 [email protected] [email protected] [email protected] [email protected] T46 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter

Membership Directory Palm Beach County Estate Planning Council, Inc.

Andrew Kravit 3507 Kyoto Gardens Drive, Suite 100 Office: (650) 233-4020 Office: (561) 844-3600 Edith M. Pecan Kravit Estate Appraisals Palm Beach Gardens, FL 33410 [email protected] [email protected] MorseLife Health System 2101 NW Corporate Blvd., Suite 300 Office: (561) 775-6528 4847 Fred Gladstone Drive Boca Raton, FL 33431 [email protected] Debra M. McCloskey, VP Stephanie L. Murray, CPA West Palm Beach, FL 33417 Office: (561) 961-0992 Comerica Bank Carr, Riggs & Ingram, LLC Office: (561) 209-6102 [email protected] Cory Lyon 2401 PGA Blvd., Suite 198 33 SW Flagler Avenue [email protected] Fuoco Group Palm Beach Gardens, FL 33410 Stuart, FL 33994 Cara J. Lamborn, CFP® 772 U.S. Highway One, Suite 200 Office: (561) 691-5919 Office: (772) 283-2356 Bridget M. Perers, CDP Jones Lowry North Palm Beach, FL 33408 [email protected] [email protected] Kisco Senior Living/LaPosada 470 Columbia Drive, Suite 100-E Office: (561) 209-1120 3400 Masterpiece Way West Palm Beach, FL 33409 [email protected] Connie McKenzie Marilyn Neckes Palm Beach Gardens, FL 33410 Office: (561) 712-9799 Firstat RN Care Management RBC Wealth Management Office: (321) 423-6949 [email protected] Domenick V. Macri, Sr., MST 5601 Corporate Way, Suite 404 3801 PGA Blvd., Suite 801 [email protected] U.S. Bank Private Wealth Management West Palm Beach, FL 33407 Palm Beach Gardens, FL 33410 Ben Lasater 324 Royal Palm Way, Suite 101 Office: (954) 486-1990 Office: (561) 691-5315 Kim Pickering, CFP®, CTFA United Capital Palm Beach, FL 33480 [email protected] [email protected] Advisors Solutions Group Wilmington 110 SE 6th Street, Suite 2350 Office: (561) 653-3354 Trust, N.A. Fort Lauderdale, FL 33301 [email protected] Gavin McNally Adrienne Nelson, J.D., CFP® 240 Royal Palm Way Office: (754) 900-4913 Primoris Wealth Advisors, LLC SunTrust Private Wealth Management Palm Beach, FL 33480 [email protected] Thomas L. Marcacci, CFP® 9250 Alternate A1A, Suite A 515 East Las Olas Blvd., 4th Floor Office: (561) 515-6971 Sagemark Consulting North Palm Beach, FL 33403 Fort Lauderdale, FL 33301 [email protected] Marti M. LaTour, MBA 601 Heritage Drive, Suite 204 Office: (561) 296-0796 Office: (954) 765-7147 The A.I.D. Group Jupiter, FL 33458 [email protected] [email protected] Kristine C. Polo, CPA 1320 N. Ocean Blvd. Office: (561) 799-1809 MKA, LLC Delray Beach, FL 33483 [email protected] Diane Peterson McNeal Patrick Nickler 631 Highway 1, Suite 405 Office: (561) 596-6824 Wilmington Trust The Nickler Group at Morgan Stanley North Palm Beach, FL 33408 [email protected] Michelle E. Marvel, CBA, CVA 2000 PGA Blvd., Suite 4400 777 S. Flagler Drive, Suite 700 Office: (561) 848-9300 DeLisi, Marvel & Ghee, Inc. North Palm Beach, FL 33408 West Palm Beach, FL 33401 [email protected] Terrel J. Lavergne, CPA/ ABV, CVA 1920 SE Port St. Lucie Blvd. Office: (561) 630-2103 Office: (561) 822-4947 BCG Valuations Port St. Lucie, FL 34952 [email protected] [email protected] Julie Ann Probst 65 South Main Street, Suite B200 Office: (772) 380-9997 Keller Williams Realty Pennington, NJ 08534 [email protected] Darren J. Mills, Esq., CPA Holly M. O’Neill, Esq. 4455 Military Trail Office: (561) 261-2328 Mills Elder Law LLC Nelson Mullins Broad and Cassel Jupiter, FL 33458 [email protected] Rani Newman Mathura, J.D. 4440 PGA Blvd., Suite 600 1 North Clematis Street, Suite 500 Office: (954) 593-8200 Newman Mathura Law PLLC Palm Beach Gardens, FL 33410 West Palm Beach, FL 33401 [email protected] Syndie T. Levien, CFP® 631 US Highway 1. Suite 410 Office: (561) 472-0820 Office: (561) 832-3300 UBS Financial Services Inc. North Palm Beach, FL 33408 [email protected] [email protected] Ceil Schneider Randell, J.D., CFP®, 3801 PGA Blvd., Suite 1000 Office: (561) 899-7002 AEP® Palm Beach Gardens, FL 33410 [email protected] Natalie A. Moldovan-Mosqueda, Steven J. Olsen Ceil Schneider Randell, PA Office: (561)776-2549 Esq. Marsh & McLennan Agency LLC 500 Australian Ave. South, Suite 600 [email protected] April Matteini, G.G. DSM Law 218 S. US Highway One, Suite 300 West Palm Beach, FL 33401 Bonhams Auctioneers 250 S. Central Blvd., Suite 202 Tequesta, FL 33469 Office: (561) 820-4855 Howard S. Levy, CPA, CVA 95 Merrick Way, 3rd Floor Jupiter, FL 33458 Office: (561) 354-9421 [email protected] BDO USA, LLP Coral Gables, FL 33134 Office: (561) 747-1646 [email protected] 1601 Forum Place, 9th Floor Office: (305) 978-2459 [email protected] Ellen L. Regnery West Palm Beach, FL 33401 [email protected] Anthony T. Pace Haile, Shaw & Pfaffenberger, P.A. Office: (561) 207-2818 Mark D. Montgomery Lindberg & Ripple 660 US Highway One, 3rd Floor [email protected] Amy Mauser Celedinas Insurance Group 3801 PGA Blvd., Suite 600 North Palm Beach, FL 33408 Florida International University 140 Royal Palm Way, Suite 202 Palm Beach Gardens, FL 33410 Office: (561) 627-8100 Sharon C. Lindsey, J.D., CAP® 11200 SW 8 Street, MARC 5th Floor Palm Beach, FL 33480 Office: (561) 337-5242 [email protected] Jones Lowry Miami, FL 33199 Office: (561) 253-9393 [email protected] 470 Columbia Drive, Suite 100-E Office: (305) 348-8351 [email protected] David Reynolds, CFP® West Palm Beach, FL 33409 [email protected] Mark R. Parthemer Esq., AEP® Spearhead Capital, LLC Office: (561) 712-9799 Richard Moravek, CLU® Bessemer Trust 12012 South Shore Blvd., Suite 112 [email protected] James McBrayer, CFP® Mass Mutual South Florida 222 Royal Palm Way Wellington, FL 33414 J.P. Morgan Private Bank 1000 Corporate Drive, Suite 700 Palm Beach, FL 33480 Office: (561) 801-7302 Chris Losquadro, MBA, CPRES 205 Royal Palm Way Fort Lauderdale, FL 33334 Office: (561) 835-8322 [email protected] Quantum Realty Advisors, Inc. Palm Beach, FL 33480 Office: (954) 689-9509 [email protected] 4440 PGA Blvd., Suite 308 Office: (561) 838-4686 [email protected] Darline Richter, CPA Palm Beach Gardens, FL 33410 [email protected] Joe Pauldine Travani & Richter, PA Office: (561) 624-2680 Alfred G. Morici, JD, LL.M., AEP® Cypress Trust Company 1935 Commerce Lane, Suite 9 [email protected] Jennifer Jordan McCall Of Counsel Cohen, Norris, Wolmer, Ray, 251 Royal Palm Way, Suite 500 Jupiter, FL 33458 Pillsbury Winthrop Shaw Pittman, LLP Telepman & Cohen Palm Beach, FL 33480 Office: (561) 743-5335 Anthony Lourido, CFA 224 Royal Palm Way, Suite 220 712 US Highway 1, Suite 400 Office: (561) 659-5889 [email protected] Key Private Bank Palm Beach, FL 33480 North Palm Beach, FL 33408 [email protected] Palm Beach Chamber of Commerce Newsletter Sunday, January 6, 2019 T47

Membership Directory Palm Beach County Estate Planning Council, Inc.

Jennifer Lynch Ridgely Irv Seldin, J.D., MA Adam Slavin, CPA Office: (561) 515-6093 Charles T. Weiss, Esq. Daszkal Bolton LLP Visiting Angels of the Palm Beaches Berkowitz Pollack Brant Advisors and [email protected] Charles T. Weiss, P.A. 4455 Military Trail, Suite 201 8645 N. Military Trail, Suite 407 Accountants 712 U.S. Highway One, Suite 301-2 Jupiter, FL 33458 Palm Beach Gardens, FL 33410 777 S. Flagler Drive, Suite 225 Robert Taylor, CFP® North Palm Beach, FL 33408 Office: (561) 886-5205 Office: (561) 328-7611 West Palm Beach, FL 33401 Cary Stamp & Co. Office: (561) 848-9970 [email protected] [email protected] Office: (561) 361-2014 110 Bridge Road [email protected] [email protected] Tequesta, FL 33469 Caroline Rose Brenda M. Seligman, CPA Office: (561) 990-1935 Suzanne S. Weston, J.D. Jewish Federation of Palm Beach 1 Dorchester Circle Edward F. Smith III [email protected] Chilton Trust County Palm Beach Gardens, FL 33418 MBAF 396 Royal Palm Way Matthew N. Thibaut, Esq. 1 Harvard Circle, Suite 100 Office: (561) 632-6066 225 N.E. Mizner Blvd., Suite 685 Palm Beach, FL 33480 Haselkorn & Thibaut, P.A. West Palm Beach, FL 33409 [email protected] Boca Raton, FL 33432 Office: (561) 598-6330 359 S. County Road, Suite 101 Office: (561) 242-6679 Office: (561) 909-2100 [email protected] Palm Beach, FL 33480 [email protected] [email protected] Janet Shamblin, CTFA Office: (561) 585-0000 Key Private Bank [email protected] Stuart Whitehurst Peter A. Sachs, J.D. 3507 Kyoto Gardens Drive, Suite 100 Emily A. Snider, J.D., LL.M. Marvin & Whitehurst Appraisal Group, Jones, Foster, Johnston, Stubbs, P.A. Palm Beach Gardens, FL 33410 Jones, Foster, Johnston & Stubbs, P.A. James E. Tisdale Inc. 505 South Flagler Drive, Suite 1100 Office: (561) 775-6535 505 S. Flagler Drive, Suite 1100 MBAF 100 SW 5th Street West Palm Beach, FL 33401 [email protected] West Palm Beach, FL 33401 225 N.E. Mizner Blvd., Suite 685 Stuart, FL 34996 Office: (561) 650-0476 Office: (561) 650-0445 Boca Raton, FL 33432 Office: (772) 463-4440 [email protected] Andrew Shamp, J.D. LL.M., CAP® [email protected] Office: (561) 909-2100 [email protected] U.S. Trust [email protected] Art Samuels 132 Royal Palm Way Chris Snyder Samantha Whiteman EstateBuyers.com Palm Beach, FL 33480 Community Foundation for Palm Misty Travani, CPA Families First of Palm Beach County 828 W. Indiantown Road, Suite 102 Office: (561) 653-5978 Beach and Martin Counties Travani & Richter, P.A. 3333 Forest Hill Blvd. Jupiter, FL 33458 [email protected] 700 S. Dixie Highway, Suite 200 1935 Commerce Lane, Suite 9 West Palm Beach, FL 33406 Office: (305) 722-2753 West Palm Beach, FL 33401 Jupiter, FL 33458 Office: (561) 714-2115 [email protected] Fredrick Jay Shapiro, CFP® Office: (561) 340-4512 Office: (561) 743-5335 [email protected] Merrill Lynch [email protected] [email protected] Peter Sandquist 249 Royal Palm Way, Suite 200 Stephanie Williams Merrill Lynch Palm Beach, FL 33477 Michael P. Stafford, Esq. Patricia A. Travis Edward Jones First Republic Bank 222 Lakeview Avenue, Suite 1300 Office: (561) 650-7686 Farrell Fritz P.C. 6177 S. Jog Road 300 S. US Highway 1 West Palm Beach, FL 33401 [email protected] 622 Third Avenue, 37th Floor Lake Worth, FL 33467 Jupiter, FL 33477 Office: (561) 514-4806 New York, NY 10017 Office: (561) 434-0389 Office: (561) 803-1029 [email protected] C. Carey Shook CLU, ChFC, AEP Office: (212) 687-1230 stephanie.e.williams@edwardjones. [email protected] Northwestern Mutual Financial [email protected] com Michael E. Schmidt, CFA Network Tricia Trimble Seacoast Bank & Trust 3300 PGA Blvd., Suite 400 Cary Stamp, CFP®, CDFA, AIF®, Morgan Stanley Brian D. Wodar 3001 PGA Blvd. Palm Beach Gardens, FL 33410 CAP®, AEP® 3801 PGA Blvd., Suite 700 Alliance Bernstein Palm Beach Gardens, FL 33410 Office: (561) 284-8065 Cary Stamp & Company Palm Beach Gardens, FL 33410 777 South Flagler Drive, Suite 1601W Office: (561) 351-3670 [email protected] 110 Bridge Road Office: (561) 694-7018 West Palm Beach, FL 33401 [email protected] Tequesta, FL 33469 [email protected] Office: (561) 820-2190 Alison L. Sih-Crawshaw Office: (561) 208-8333 [email protected] Lisa A. Schneider, Esq. Kitroser & Associates [email protected] Stephen G. Vogelsang J.D., L.L.M. Gunster 631 U.S. Highway 1, Suite 406 Pressly, Pressly, Randolph & Pressly Christina Worley, CPA®/PFS, 777 S. Flagler Drive, Suite 500 East North Palm Beach, FL 33408 Kathleen A. Strother, CFP® 251 Royal Palm Way, Suite 300 CFP®, CFA West Palm Beach, FL 33401 Office: (561) 721-0600 PNC Wealth Management Palm Beach, FL 33480 Castle Wealth Management Office: (561) 650-0688 [email protected] 2875 PGA Blvd., Suite 200 Office: (561) 659-4040 1400 Centrepark Blvd., Suite 900 [email protected] Palm Beach Gardens, FL 33410 [email protected] West Palm Beach, FL 33401 Douglas Simon, MD Office: (561) 515-6375 Office: (561) 686-9604 Brian T. Schubot, G.G., C.G., C.G.A., Alex Brown [email protected] Elizabeth C. Wagner [email protected] AGS 250 Royal Palm Way Cypress Trust Company Hamilton Jewelers Palm Beach, FL 33480 Kelly Sturmthal, J.D. 251 Royal Palm Way, Suite 500 Stephen M. Zaloom, J.D., LL.M., 3101 PGA Blvd., #N205 Office: (267) 239-3118 DSM Law Palm Beach, FL 33480 CAP® Palm Beach Gardens, FL 33410 [email protected] 250 S. Central Blvd., Suite 202 Office: (561) 820-2921 Of Counsel Jeck, Harris, Raynor & Office: (561) 775-3600 Jupiter, FL 33458 [email protected] Jones, PA [email protected] Ira Michael Singer, CLU®, ChFC®, Office: (561) 747-1646 790 Juno Ocean Walk, Suite 600 George Walks AEP® [email protected] Juno Beach, FL 33408 Nursing Services of Palm Beach Tina Segal Singer Financial Group Office: (561) 746-1002 6800 Forest Hill Blvd. The Estate Settlers, LLC 137 Via Paradisio Mary Elizabeth Tarter, CPA, MBA [email protected] Greenacres, FL 33413 20423 SR 7, #F6-273 Palm Beach Gardens, FL 33418 Frankel Loughran Starr & Vallone LLP Office: (561) 856-5302 Boca Raton, FL 33498 Office: (201) 739-1950 777 S. Flagler Drive, West Tower, Suite [email protected] Office: (561) 207-7654 [email protected] 800 [email protected] West Palm Beach, FL 33401 T48 Sunday, January 6, 2019 Palm Beach Chamber of Commerce Newsletter