Once the IDGT has been formed, and the grantor does not have any right or power that will cause the trust property to be includible in the grantor’s gross estate under §2036, §2037 & §2038, the grantor sells the assets the trust in exchange for a promissory note with interest. The assets must be sold to the trust at its fair market value and the minimum interest rate is the applicable federal rate (AFR)(7). The result is that the asset(s) sold to the trust subject to the note and any subsequent appreciation is removed from the grantor’s taxable estate. Any type of property can be sold to an IDGT, but the most beneficial assets to sell to the trust are those that are expected to appreciate in value because the note freezes the value of the asset for estate tax purposes upon transfer and any appreciation remains in the trust and will ultimately pass to the beneficiaries gift and estate tax free. If the Grantor dies during the note term only the value of the note will be included in the grantor’s gross estate.
An additional advantage of an IDGT is the ability for the grantor to subs...
On September 12, 2014, Denise Rockett filed a complaint against Eugene Nigro, Esq. Nigro was reportedly negligent when handling legal matters in her late husband’s estate. Specifically, the complainant alleges that Denise, as Executrix of her late husband’s estate, was intentionally excluded from major decisions, not properly compensated, and deprived of control over their properties. Nigro allegedly breached his fiduciary obligation and violated Mass.R.Prof.C. 1.4(b), 1.7(b), and 8.4(c).
Leadership succession in a merger of equals is an article, which examines the implications of leadership succession in an extreme form of mergers, a merger of equals, can yield important findings to better understand what allows some mergers to succeed while others fail (Cheng, 2012). Mergers and acquisitions are much more common these days and only a few of them end up being successes. Even though mergers and acquisitions do not result in much success rate, many organizations still prefer it because, it is used as a cooperative strategy but nowadays it is used for cooperative development. Cultural differences and merger integration can be considered as an important factor in the failure rate, but this study mainly focused on the choice of leadership succession and merge of equals. Mergers of Equals Mergers of equals is the combination of two organizations of similar size to form a single organization.
Who are the beneficiaries of the trust created by Mr. Dutton? What is each beneficiary’s respective property interest?
On transfer of any advantage of the trust, it is qualified for a 50% discount factor on
It is a concealed arrangement made between a testator and the trustee and is made to come into force after death. A justification for ST is the ‘dehors the will’ theory which means the trusts arise outside of the will - a inter vivos trust. Its purpose is to benefit another individual that hasn’t been written in the formal will. The testator will leave property to the trustee under the will with the understanding that they will hold the property as a gift for which they will then later on be expected to pas...
A Grantor Retained Annuity Trust (GRAT) is an estate planning technique whereby the grantor makes an irrevocable gift of assets to a trust, while retaining a payment stream from the trust in the form of an annuity usually for the life of the grantor, for a specified term of years, or for the shorter (but not longer) of those periods (1). GRATS are sometimes referred to as split-interest trusts because they are comprised of two forms of interest, the retained interest, which the grantor receives as an annuity, and the remainder interest, which passes on to the beneficiary upon termination of the trust. The gift tax on the transfer of the assets into the GRAT is determined when the GRAT is created based on the fair market value of the remainder interest at the time of the gift, which is the fair market value of the property transferred to the trust minus the value of the retained annuity interest. The retained interest is determined through an actuarial calculation that factors the present value of the annuity the grantor receives using the §7520 rate. §7520 provides, in part, that the value of any annuity is to be determined under the tables prescribed by the Secretary and by using an interest rate equal to 120 percent of the Federal midterm rate in effect under §1274(d)(1) for the month in which the valuation date falls (2).
In a firm, management and leadership are important and needed. Leadership and management are similar. Actually, leadership and management are totally different. The leadership would influence the firm. The leader would have difference leadership styles to lead the subordinate.
1. A. Is there a difference between effective leadership and effective management? Yes, I believe that managers are analytical, structured, controlled, deliberate, and orderly. Leaders are experimental, willing to take chances, visionaries, flexible, unfettered, and creative. These are the differences between management and leaders.
The issue of replacement workers is that only the provinces of British Columbia or Quebec prohibit replacement workers during a legal strike, resulting in replacement workers as an effective and legal strategy by the employers to weaken the employees or union (C.M. Mitchell., J.C. Murray, pg. 89). This not only lengthens the term of the strike or lock out but effects the collective bargaining of the union or employees. Replacement workers are defined as “the workers who are hired by employers to fulfill functions of workers who are engaged in a legal strike of lock out” (C.M. Mitchell., J.C. Murray, pg. 89). This makes the employees seem replaceable and aversely limits their collective power and voice to the employer.
The purpose of this trust is to replace lost wealth at death by providing for the surviving spouse. An ILIT is used to prevent the insured party from having incidents of ownership on the life insurance policy covering his own life. In an ILIT the grantor makes a deposit into the trust and receives an annual payment from the trust. Upon the grantors death the surviving spouse will receive the death benefit but it will be included in the grantors gross estate. An important thing to note when looking into ILITs is that they are irrevocable meaning that once you deposit into A ILIT the amount deposited can never been withdrawn. Unless the trust is subject to a Crummy withdrawal right, then the beneficiaries have the right to make withdrawals from the ILIT for a set period of time, usually 30 days. Crummy provisions are very helpful when it comes to irrevocable trusts because its one of the only ways to access the trust funds without
Quality health care is precipitously deteriorating amongst the nation’s health care industry. The health industry trends of high turn over rates amongst staff and important key employees are creating a rift in profit margins, decreasing patient quality care, triggering higher expenses and loss of patients (Hunt, 2009). In the “Best Practices in Health Leadership Talent Management and Succession Planning” case studies, presented by the National Center for
Completely constituted trusts are segmented into executory and executed trusts. Executory trust is when a declaration or instrument requires the successive execution of further instruments while an executed trust is when the settlor has clearly and expressly stated what the interests of the beneficiaries are in the trust instrument. When a trust is not properly constituted, there will be no equitable proprietary interest for the beneficiaries. In such situations, the trust is enforceable under contract otherwise the beneficiaries are regarded as “volunteers”. A volunteer is a beneficiary who does not have valuable consideration for a promise or agreement for property to be transferred to him through trustees. Settlors must do everything within their power as necessary according to the nature of the property so that the settlement would be binding. There are three wa...
John Terrill, an experienced professional with a unique approach to managing, was brought into to DGL International to correct the productivity issues evident in the technical services division. As a leader, his approach would require professionalism, as well as an alternative method of management to restore the lacking work ethic of the engineers. Through investigative research into well-defined leadership styles, behaviours and power types, the following case study questions are discussed below. Using Paul Hershey and Ken Blanchard’s situational leadership theory, I compare the autocratic with the democratic approaches to leadership, as well as discuss the four styles of leading: telling, selling, participative or delegating. I also address the type of power Terrill appears to possess over his followers and compare multiple options. Though Terrill proved to be a successful development to the company’s management team, the repercussions and advantages of alternative approaches are also addressed in conjunction with Robert House’s path-goal theory.
The importance of laws governing inheritance is of considerable interest not only to the public, but also the economists and policymakers. It has been proven by studies both empirical and theoretical that transfer of physical capital from parents to children is a crucial determinant of households’ wealth and earning ability. Studies have also proven that when distribution of inherited wealth is highly unequal, its due impact on general economic inequality in the society is significant.
However you define the activities of management, and whatever the organisational processes are, an essential part of the process of management is that proper attention be given to the Human Resource function. The human element provides a major part in the overall success of the organisation. Therefore there must be an effective human resource function. In the past, most organisations viewed Human Resource Management (HRM) as an element function, that is an activity that is supportive of the task functions and does not normally have any accountability for the performance of a specific end task. Because of the emphasis on analysis and precision there is a tendency for strategists to concentrate on economic data and ignore the way in which human elements and values can influence the implementation of a strategy. 'Economic analysis of strategy fails to recognise the complex role which people play in the evolution of strategy - strategy is also a product of what people want an organisation to do or what they feel the organisation should be like.?(1).