Law Offices of Givner & Kaye Newsletter | September Issue 


          September means that year-end income tax planning is upon us.  Now is the time to take steps that will make a difference in the entity ("S" corporation, LLC and partnership) returns due on March 15, 2015, and in your personal return due April 15, 2014. 


          For those of you with closely held businesses, boring is still good: a properly structured defined benefit pension plan is the best and safest way to create deductions that favor the shareholder-employee.  If your defined benefit pension plan is not all that you think it should be, have us review it for you; too many people leave it up to only an actuary or pension consultant. 


          For those of you without closely held businesses, recognize that taxes are an enforced extraction to support programs with which you might not agree.  Would it make you happier if you suffered the same extraction but the funds went to programs with which you agree?  If so, there are a variety of charitable vehicles which may not make you economically better off, but which will make you emotionally more satisfied, including charitable lead annuity trusts (in combination with your own private foundation) and charitable LLCs.


          For those of you in the process of selling appreciated property, the sooner we talk before the transaction, the more (and more attractive) alternatives we have to discuss as to the tax results.


          Best regards,


                    Bruce Givner

                    Owen Kaye

                    Kathleen Givner

                    Neda Barkhordar

Featured Article: The Twilight Zone - The Law Doesn't Work For Questionably Competent Parents

This is the typical fact situation: Dad is an 87 year old widower.  He has had the same stock broker for 35 years.  Son and Daughter notice that Broker is "churning" Dad's accounts, meaning Broker is creating a lot of purchases and sales just to create commissions.  Son and Daughter tell father "Dad, Broker is ripping you off.  You need to switch to another firm."  Dad responds "You are wrong.  I absolutely trust him."


Son and Daughter could go to court and have Dad removed as trustee of his own trust.  They would win the battle because Dad is no longer able to manage his own affairs.  However, they would lose the war.  Why?  Even though Dad is not competent to run his own affairs, he still has enough competence to change his estate plan.  So Dad can change his trust to leave all of his assets to Broker.


Unfortunately, the law does not have a "fix" for that problem.  Sometimes, when it gets to that point in time, we can meet with Dad and convince him to voluntarily resign.  Often times there is nothing to do but watch Dad waste assets.  Other times we try to get non-beneficiaries to talk Dad into stopping his bad activities or into resigning.  In some situations there is no alternative to a Conservatorship. 


If you face these situations, contact us.  We know the rules and other caring professionals who can help.

YouTube Videos
 "Dad's no longer competent. Can we get him removed as trustee of the family trust?"
We post new videos on YouTube each week filled with advice and tips. For more, click here.
Attorney Spotlight: Upcoming Engagements

Bruce will be speaking on October 1 in Newport Beach at the America's Top Planner 2014 Live Finale from 2:30 to 3:30 on a panel with Tim Voorhees, Carl Waldman and Joe Strazzeri. Register here


Bruce will be speaking on October 2 to the Beverly Hills Bar Association Business Law Section on "Drugs, Sex and Entity Formation: Which Has The Most Alternatives?" with Robin Mashal. Register here


Bruce will be speaking to Dr. Richard Lau's Cal State University Los Angeles Accounting and Tax Seminar on October 18th on "Income and Capital Gains Tax Planning". More info


On November 6 Owen will be presenting the Thursday Insights Series Seminar on "Conservatorships and Elder Abuse" in our office. Sign up here

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Tax Tip of the Month

In designing the defined benefit pension plan of your closely held business, you do not have to cover more than 40% of the employees.  You only have to cover a non-discriminatory classification of the employees.  So if your plan covers all full-time employees, you may be needlessly spending money you need not spend. 

In the Media

Last month, Bruce was quoted in an article discussing Robin Williams's potential probate issues following his death.

Bruce Givner & Owen Kaye
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Bruce - Updated
Upcoming Thursday Insights Series Seminar:  
Year-End Income Tax Planning Strategies - It's Not Too Late with Bruce Givner 
October 2

As the year's end approaches, what can you do to reduce the tax due on the return you will file for your entity due March 15, 2014, and for your personal return due April 15, 2014?  For those with a closely held business, we will talk about how to improve a variety of business-related structures if you have them, and how to adopt them if you do not, along with the pitfalls.  If you do not have a closely held business there are a variety of structures, that should prove interesting. There are also tax favored investments worth considering. 

Join us in the office or online via webinar, where you can watch the folks in the room listen to and question Bruce.  
Tax Law Comics: 
The Adventures of Reese & Ira Sponsible
For almost four decades, our experienced Los Angeles estate planning, asset protection and expert tax attorneys have met each client's unique planning needs by collaborating with our longtime partners - attorneys, accountants, business managers, financial planners, stockbrokers and insurance professionals. Contact Givner & Kaye today!

Givner & Kaye, A Professional Corporation |
12100 Wilshire Blvd.
Suite 445
Los Angeles, CA 90025

September, 2014

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