Vice President Ray Davis opened the meeting with the Pledge of Allegiance. Harry Hitch read the minutes and introduced new Assistant Secretary, Dick Rose. Jerry Transue introduced four new members, Kevin Faugh, Gene O'Callahan, Bruce McLanahan, and Charles McRedmond. Guests Bill Wheeler and Vince Panzano were also introduced. 154 members were in attendance.
ANNOUNCEMENTS: George Perkins reported the 4/28 2:00PM service for Cliff Parris at the Congregational Church.. Frank Bondor is recovering from a broken hip at Norwalk Hospital. Rad Stone reminded members of the annual meeting at Country Club of New Canaan at Noon on 5/11 ($45/pp) and noted Paul Strassmann's 4/13 SMC talk on the cyber warfare era is on Channel 79 (see nctv79.org for current broadcast schedule).
COUTH: 5/1 trip to New York's Metropolitan Museum of Art ($30/pp for bus trip only). 5/29 full day visit to New York Botannical Gardens ($70/pp with lunch).
ACTIVITIES: Bridge and Paddle (10-7-8) as usual (Paddle Party 5/21). 4/25 Mystery Books discussing Donna Leon's Comissario Brunetti of the Venetian Police, meeting at Noon at Vicolo Trattoria. Golf 5/7 at Sterling Farms, 6/4 at Whitney Farms, and a 6/20 special event at Silvermine (NCSMC foursome vs.Darien SMC, $42/pp). 4/25 Cycling group on Cloisters/Battery Park circuit, meet at 8:00AM at Lapham. 4/27 4F's lunch at Tuscan Restaurant (New Canaan). 5/14 Investments Group 10:30AM at Lapham, program TBA. Photo/Computer TBA. Amateur Chefs May menu TBA.
MEMBERS' COMMENTS: Tom Ferguson gave a brief update on Staying Put, now serving 239 households and 305 individuals . Over 2000 service counts in 2012, expected to reach around 3000 in 2012. Volunteers coordinated by Jane Nyce, Director and Donna Simone, Assistant Director. Funding from memberships ($375/single and $500/couple) and community support. Wide range of volunteer activities, mainly drivers.
HUMORIST; George Brakeley told two "shaggy dog" stories about Joe Torre's early fear as a catcher on defense and a Boston visitor's language problem requesting Scrod.
SPEAKER: Vice President Nick Yanicelli introduced Alan Donaldson, a graduate of the Law School at Northwestern University with a Master of Laws in Taxation from New York University in 1980, who has served clients in this area in private and firm practice (Davidson, Dawson, & Clark LLP). He opened his talk on trusts and estates noting that the Federal regulations now run some 73,000 pages and are effectively in disarray. He outlined specifics for 2012 on exemptions (increased to $5,120,000), tax rate on estates and gifts (35%, an historic low), portability of exemptions (carry forward of any unused amounts), annual gift tax exclusion (the familiar $13,000), and reinstatement of unlimited "step up" (shields capital gains from income taxes on gains that were accrued but not realized at death). These benefits expire for 2013 and Congressional action is uncertain given current election year issues. On Connecticut, Alan noted the $2,000,000 exemption is scheduled to stay in place indefinitely, but the tax rates are roughly 25% lower than in most other states, and the infamous "cliff" is gone. The major planning challenges include the trust gap issue (State vs. Federal) and avoiding probate (given the reduction in State courts). Ways for gifting include trusts, grants, and residences. His handout, CONNECTICUT ESTATE PLANNING IN 2012, provides many more details on this complicated subject. A wide range Q/A followed (see back of this page for summary).
Don Hudson, Assistant Secretary
April 20, 2012 SMC Meeting - Summary of TOPICS Raised in Trust and Estates Q/A
. "Step Up" basis for covering assets.
. Tax advantages on gifts.
. Tax advantages on rent payments to children.
. Incorporation of insurance in trusts.
. Tax liability on IRA tansfers to a trust.
. 529 Plan arrangements and applications.
. Qualified Personal Residence Trusts (QPRT's) and second homes.
. Filing exemption vs. amount of a gift.
. Shifting a LLC (Limited Liability Company) second home to a QPRT.
. Two options for a QPRT.
. Provisions on gifts vs.estates in other states.
. Considerations in handling high value assets.