Click here to view a PDF version of this as it appeared in the Legal Intelligencer. 

Four and a half years ago, in the middle of 2014, and two years into our venture, in another article in the Legal, we shared our thoughts on launching and establishing a law firm after nearly 30 years of collective experience as lawyers.

​We thought it would be worthwhile, at this juncture, to try to identify some of the factors that we believe have kept us in business as we approach our seven- year mark in May of this year. Here they are, in no particular order:

Communication. We learned the importance of quality communication from our colleagues at our prior law firms. We take care to communicate in a clear and prompt (not just timely) manner with each other, as law partners, and with our clients and other parties involved in our client matters—whether opposing parties or collaborating professionals. We do our best to avoid any miscommunication or misunderstanding.

Respect. We respect all parties with whom we interact in our work, including our mail deliverers and cleaning staff. In turn, we nearly always receive their support and respect, which helps us accomplish our goals. It also helps us all enjoy our working relationships together.

Triage. We are always juggling a lot of matters—whether specific client matters or law firm administration matters. We spend a lot of time making sure we attend to matters in the right order, so we don't miss any important deadlines, and so that we can accomplish our clients’ objectives. If something must be deferred, it is usually a billing cycle.

Click here to view a PDF version of this as it appeared in the Legal Intelligencer. 

​It’s that time of the year again—time to begin considering year-end tax planning issues. Rather than wait until the end of December, getting a head start on planning can improve your chances of concluding matters by Dec. 31. Here are some options that we suggest you consider before the end of 2018 to enable you to start 2019 in the best wealth planning shape possible:

Annual Exclusion Gifts. Each individual can make a cumulative annual gift tax exclusion gift of $15,000 per donee during 2018 (or $30,000 for a married couple electing to split gifts), without using any portion of his or her federal estate and gift tax exemption. The federal estate and gift tax exemption is also set to increase from $11.18 million per individual this year, to a projected $11.4 million in 2019 (allowing a married couple to shield up to $22.8 million from federal estate and gift taxes). Annual exclusion gifts can be made outright, through 529 Plan benefits (education savings accounts), or in special qualifying trust structures. For those still considering such gifts, it may be worthwhile to plan for 2018 and 2019 at the same time, keeping in mind that gifts for 2019 can be made effective as of Jan. 1.

Accelerate deductions. Prepay deductible expenses due in January (including state and local income tax estimated payments that may not be due until January).

Click here to view a PDF version of this as it appeared in the Legal Intelligencer. 

As estate planners, we often come across questions about the tax consequences of making lifetime gifts. This article is intended to shed some light on how gifting fits into the overall tax system and to clear up common misconceptions about the tax implications of gifting.

Although often misunderstood, it is important to understand that when a person makes a gift (other than a charitable gift), it does not affect the federal income tax of the donor or the donee of the gift. That means that the donor making the gift cannot deduct the value of the gift (other than charitable contributions) on his federal income tax return, and, likewise, the donee receiving the gift is not subject to federal income tax on the funds received. The federal gift tax regime, not the federal income tax regime, is what’s at play.

When making a gift, it is generally the giver or donor of the gift who would be subject to the federal gift tax and not the receiver or donee of the gift. The federal gift tax is imposed at the rate of 40 percent, however, gifts are only taxed to the extent that their value (on a cumulative basis for each taxpayer/donor) exceeds the donor’s lifetime exemption amount (which is currently $11.18 million per individual in 2018 or twice that amount for a married couple, indexed for inflation for future years) and to the extent that the gift does not fall within certain exclusions from the gift tax, as more particularly discussed below.