Month: August 2009

Possible Roadblock to Estate-Tax Repeal

According to the Wall Street Journal Online (http://online.wsj.com/article/SB10001424052970203863204574346930384296134.html), the U.S. House of Representatives is likely to block the repeal of the estate tax that is set to take effect January 1, 2010.  The debate continues on what will be done to provide a more permanent solution and additional certainty to estate planning practitioners.  Current thought is that Congress will, at a minimum, hold the Federal estate tax exemption amount at $3.5 million for individuals, rather than let the estate tax lapse in 2010.

Let’s hope they give this some more serious thought, and soon, as virtually everything is taking a back seat to the current health care debate.  If they do not take action, the estate tax will be repealed in 2010 (with changes in basis treatment) and the exemption amount will return to $1 million in 2011.

10 Strangest Will Bequests

Here is a little bit of Friday humor for everyone.  According to this article on Money Central, these are (in their opinion) the 10 strangest will bequests on record:

10. To boldly go..

Gene Roddenberry, creator of the Star Trek television series (motto: To boldly go where no man has gone before), appropriately had his ashes blasted into space on a satellite and distributed as it orbited the earth.

The memorial spaceflight, in 1997, quickly set a trend – especially among fellow Trekkies. James Doohan, who played chief engineer Scottie on the Starship Enterprise was also projected into orbit as did astronaut Gordon Cooper. Bit tough on the families if they want to leave flowers.

9.  Doggone

German Countess Carlotta Liebenstein left a staggering fortune of 139 million German marks (about £43 million) to her beloved pet dog Gunther III when she died in 1991. The hound and his offspring – imaginatively named Gunther IV – were able to live in the lap of luxury in a mansion with a personal maid, chauffeur and customised pool.

This isn’t the only pampered pooch to have benefited from a bequest. New York hotel magnate Leona Helmsley, dubbed the “Queen of Mean” during a 1989 trial for tax evasion, left $12 million (£6 million) of her estimated $8 billion estate for the upkeep of her Maltese terrier Trouble. Two of her four grandchildren meanwhile got nothing.

Unsurprisingly, the request by Helmsley, famous for her quip that “only the little people pay taxes,” sparked nothing but trouble. After the will was contested, the pooch was stripped of $10 million by a Manhattan judge leaving the poor thing with a paltry $2 million. It’s a dog’s life.

8. The Great Stork Derby

Eccentric lawyer Charles Vance Millar was well known in Toronto, Canada, for his love of practical jokes and he saved the best until last.

He bequeathed a large sum from his significant estate to the woman in Toronto who could produce the most children in the ten year period after his death. The resulting contest, after his death in 1926, became known as the Great Stork Derby. The four winning mothers, Annie Katherine Smith, Kathleen Ellen Nagle, Lucy Alice Timleck and Isabel Mary Maclean, each received C$125,000 for their nine children.

The pranks didn’t end there. Millar’s will also left shares in racetracks and breweries to anti-gambling and temperance supporters. Three men who were known to despise each other were granted joint lifetime tenancy in Millar’s Jamaican holiday home.

7. Death wish

Revenge is sweet – even from beyond the grave. American housewife Mary Kuhery is reported to have left her husband $2 as long as he promised to spend at least half of it on a rope with which to hang himself.

In 1960 Samuel Bratt was slightly less vengeful. However, he still grasped the opportunity to get even with his wife who had never allowed him to smoke. He left her £330,000, a huge sum back then, provided that she smoke five cigars a day.

6. No women allowed

When misogynist American lawyer T.M. Zink died in 1930 he left $50,000 in trust for 75 years by which time he hoped that it would have grown to $3 million. He decreed that the fund should then be used to found the Zink Womanless Library. The words “No women admitted” were to mark each entrance and no books, works of art, or decorations by women were to be permitted. His family challenged the will and won.

5. Alas poor Yorick

Juan Potoachi gave 200,000 pesos to the Teatro Dramatico in Buenos Aires in 1955, on condition that his skull be preserved and used as Yorick in Hamlet. William Shakespeare himself was less generous. The bard left most of his estate to his elder daughter Susannah Hall while his wife only received his “second best bed”.

4. Fangs very much

Harold West was so worried that he would become a vampire after his death, in 1972, that he left strict instructions that his doctor “drive a steel stake through my heart to make sure that I am properly dead”. That should do it

3. Live forever

Predeceased by his wife and two daughters, John Bowman, from Vermont, America, was convinced that after his death, in 1891, the family would be reincarnated. In anticipation, he left a trust fund for the maintenance of his 21-room mansion, including a demand that servants prepare dinner nightly in case the Bowmans were hungry when they returned. The money ran out in 1950.

2. Monkey business

An 83- year-old Danish widow left the equivalent of half a million Danish crowns (about £40,000) to six chimpanzees – Jimmy, Trunte, Fifi, Trine, Grinni and Gigi – who lived at the Copenhagen Zoo. Senior Deputy Judge Christian Notlevsen, who read out the testament in front of their cage, said the heirs had behaved better than many people he had seen in court during readings of wills.

1. Poetic licence

The last wish of Donal Russell, from Springfield in the US state of Oregon, was to have his body skinned, his hide tanned like leather and then used to bind books of self-penned poetry. The 62-year old wordsmith stated that his body “be skinned from the head down and tanned for the purpose of face binding volumes of my verse.”

The squeamish funeral directors refused, so his widow asked the courts to help her honour his wishes. The request was turned down because it violated laws about what could be done to human remains. How prosaic.

Great Time to Start a New Business

Have you ever wanted to have your own business?  To be your own boss?  To not have to follow the decisions of “the man?”  Or have you recently been laid off, bought out, downsized, rightsized, or any other creative term used by companies when letting people go?  Have you realized that job “security” means nothing more than someone else having the power to determine your employment situation and your potential for success?  If you have any of these thoughts or have faced any of these circumstances, you need to know that right now is a great time to start a business, to put your idea to work, make your dream a reality, and be as successful as YOU want to be.  Sounds like an infomercial, doesn’t it?  The truth is, it IS a good time to start a business.

Here is just a sampling of the reasons starting a business now is a good idea:

  • Decreased competition – due to the difficult economic conditions over the past 12-18 months many companies have had to close up shop.  Your industry choice may help you take advantage of the precipitous drop in competition.
  • Financing terms – although capital is not as easy to attract as it used to be, the terms can be very favorable.  Recent changes to the SBA government program and historically low interest rates make start-up financing very attractive when available.
  • The economy is expected to improve later this year, according to Federal Reserve Chairman Ben Bernanke – don’t miss out on the opportunity to be on the ground floor of the recovery
  • Government stimulus – many industries stand to benefit financially from the government stimulus money that is beginning to trickle down to the local level.  As we all know, there is a significant amount of money in the government stimulus programs put in place earlier this year.  Word is that the funds are nearing the local level.  If you have considered starting a business in an industry that may benefit, the timeframe for taking advantage of these funds is quickly disappearing.
  • The public’s thirst for money saving ideas – everyone has had to “tighten their belts” during this economic downturn.  More and more people are looking for ways to save money and products that can help them do so.  Do you have an product idea that will help?  Now is the opportune time to launch it.

Don’t get me wrong, it is not easy to start a business.  You must have the ideas, drive, and determination to see it through.  However, realize that over half of the 2009 Fortune 500 companies were started in a market downturn.  Some examples of companies started in a recession are: Hyatt Corp, Burger King Corp., IHOP Corp., FedEx Corp., Microsoft Corp., CNN, Sports Illustrated, General Electric, and Hewlett Packard.**

You may not plan on starting the next GE, Burger King, or Microsoft, however all those companies started like every other company . . . an idea, dedication, and determination to see it through.  If you are ready to take the steps to start your own business or would like to consult about your various options, please feel free to contact me.  I applaud you entrepreneurs – you are the catalyst of economic recovery!

**Source – http://www.kauffman.org/newsroom/the-economic-future-just-happened.aspx

***This article is by no means a guarantee that your business idea will be successful or that you will receive any of the benefits mentioned in the article.  But how will you know if you don’t try?