Los Angeles Family Law Child Custody Support Divorce Probate Estate Planning Lawyers

Can the 2012 Jordanian Peace Talks Succeed Where Others Have Failed?

2012-01-11T09:23:00.000-08:00

This article by David Makovsky director of the Project on the Middle East Peace Process at The Washington Institute finally gave clarity to the reasoning and positions behind the current negotiations occuring between political attaches of the Israeli government and Palestinian factions.

After 16 months of no negotiations, Israeli and Palestinian officials met in Amman last week and again this week. Yet, the question remains whether these talks represent a new opening or if they are merely a tactical instrument for each side to perpetuate recriminations?

If it is only about tactics, these talks will enable the Palestinians to rebut the Israeli claim regarding the Quartet's 90-day clock for both sides to present a map on borders and security because there are no direct meetings between Israel and the Palestinians. On the other hand, should the Palestinians walk away from the table, this will enable the Israelis to repeat what they have always said, namely that the Palestinians' refusal to stay at the negotiating table is the source of the impasse.

The idea of talks having only tactical value or something more meaningful depends on a deeper question. At the core, there are internal policy debates within both Israeli and Palestinian policy circles on the value of making any concessions to each other when each side is absolutely certain that no territorial breakthrough will occur during 2012. These quiet domestic debates occur within Palestinian and Israeli policy circles, and not just between them.

Whatever their differences, all sides have agreed upon two points: there will be no territorial breakthrough during an American election year, and the debates are for policymakers since the publics remain skeptical of the other side's sincerity for peace.

The debates have therefore shifted toward discussing measures that can be taken in the absence of a territorial breakthrough. On the Palestinian side, Prime Minister Salam Fayyad has publicly championed the idea that the best means of building a Palestinian state is to continue institution-building efforts on the ground in the West Bank that show steady progress towards this goal. Such measures range from increased Palestinian economic access in the West Bank, increasing Palestinian police stations outside of Palestinian urban areas to eliminating IDF incursions in Area A, which Hamas has continuously cited as proof the occupation continues despite Palestinian security cooperation with Israel.

The other side of the Palestinian policy debate, associated with Abbas's foreign policy negotiating team, argues the best way to insulate the Palestinian Authority from the wrath of the Arab Awakening is through continued defiance of Israel. The school of thought believes it may be able to persuade PA President Mahmoud Abbas that his domestic popularity reached an all-time high following his bid for UN statehood in September, and this path of resistance will help to obscure his close association with the unpopular Hosni Mubarak. Moreover, this school will probably seek to persuade Abbas that diplomatic defiance of Israel will also help Fatah to compete with Hamas after it becomes clear that Fatah lacks a strong candidate for the May elections, especially given the political boost that Hamas may get from the current Islamist electoral wave in the Arab world.

Furthermore, this school is seen as viewing Palestinian defiance as virtually cost-free internationally. The popular unaccommodating image of Prime Minister Binyamin Netanyahu makes him an easy target, and both the Europeans and Arabs often assume that he is therefore the cause of any impasse.

On the Israeli side, the policy debate in 2012 will center on whether there is any value in yielding to Palestinian demands on non-territorial issues if a full peace deal is out of reach. Foreign Minister Avigdor Lieberman identifies strongly with this view.

A contrasting view comes from key parts of the Israeli defense establishment, which views the threat of a nuclear Iran as strong motivation for credible progress between Israel and the Palestinians. Three points make up this line of reasoning: first, that progress between Israel and the Palestinians could eventually lead to negotiations that would help to insulate the PA against any Arab Awakening revolts. Second, progress on the peace process front could allow Israel to focus more of its policymaking efforts on combating the Iran nuclear threat. Third, progress with the Palestinians could only benefit Israel as it seeks to reach out to various regional Arabs on the Iranian issue, and as it seeks to salvage its relationship with the Egyptian military -- seen by Israel as key to preserving the bilateral peace treaty.

One might add a fourth reason as well. Any progress by Netanyahu in 2012 would serve to counter the prevalent notion that only US pressure can spur Israeli steps towards peace. Paralysis in 2012 would only strengthen this argument, which is certainly not in Netanyahu's interest.

Some ministers and officials close to Netanyahu suggest Israel could accept progress on the ground if the Palestinians provide a quid pro quo. In other words, only if the Palestinians suspend their diplomatic efforts at the UN and other international agencies will they win any reciprocal Israeli action. It is this tradeoff that could pit the different sides of the Palestinian debate: those favoring progress on the ground versus those who want to wage a diplomatic defiant approach against Israel at the UN and elsewhere.

The current concern for the peace process is not what will or will not happen this week in Amman, but rather how policy debates in Jerusalem and Ramallah will shape a year of zero expectations. On the more optimistic note, when there are no expectations, they can be easily exceeded. On the less hopeful note, zero expectations, however, does not mean zero consequences. Given the current turmoil in the region, 2012 could be a very consequential year.

******************************

David Makovsky is the Ziegler distinguished fellow and director of the Project on the Middle East Peace Process at The Washington Institute.

******************************

The Washington Institute for Near East Policy

1828 L Street NW, Suite 1050

Washington, DC 20036

PHONE 202-452-0650

FAX 202-223-5364

www.washingtoninstitute.org

Copyright 2012. All rights reserved.

Ethical Eggs, Dairy and Meat

2011-11-29T10:03:00.000-08:00

Ethical Eggs, Dairy and Meat

How Would Huguette Clark's Probate Play Out in a California Court? The details of how Huguette's billions were spent by her and for her make for the most astonishing story.

2011-11-21T11:43:00.000-08:00

The 1 percent of the 1 percent: How Huguette Clark's millions were spent By Bill Dedman
Investigative Reporter, msnbc.com

Associated Press

This is the last known photo of Huguette Clark, taken 80 years ago. She hid away in a New York hospital room for at least the past 22 years, until her death in May. This photo was made on Aug. 11, 1930, the day of her divorce, in Reno, Nev. Her marriage lasted two years. She had no children.

NEW YORK — More than $3 million dollars on dolls. Nearly $2 million to her attorney's favorite charity. Another $380,000 in checks written to the staff on a single day, just as the press started to ask questions. And a magic bottomless checking account with $43 million to spend.
These details emerge from court documents filed in the early stages of a legal battle over the $400 million copper-mining fortune of the late reclusive heiress Huguette Clark. The documents give us new glimpses into the life of one of America's richest families. And they raise new questions about the actions of her attorney and accountant, who remain under criminal investigation even after her death in May at 104.
Attorneys are readying for a massive battle in the probate court known as Surrogate's Court in Manhattan. The building is less than a mile from Exchange Place near Wall Street, where Clark's father, former U.S. Sen. William Andrews Clark, managed the fortune he made from the mines of Montana and Arizona, and from banks, railroads and other ventures. Clark's relatives, kin from her father's first marriage, are expected in coming weeks to challenge her last will and testament, which cut out her family entirely, leaving about $34 million to her nurse and more than $17 million to her attorney and accountant through fees and direct bequests.

In this early phase of the massive estate case, her attorney and accountant have had to account to the court for all financial transactions they made using her legal power of attorney. They held that power, in various forms, for the last 15 years of her life, beginning in July 1996 when she was 90 years old.
The attorney and accountant are also being investigated by the Manhattan district attorney after questions were raised in a series of articles on msnbc.com about the sale of various properties owned by Clark, and about how the attorney and accountant ended up owning one of the homes of another elderly client. The pair asked the court to keep their financial accounting secret, arguing that they wanted to protect Clark's privacy. But the court rejected their request, making the following details available for anyone to read at the Surrogate's Clerks office.

In all, the records show $126.3 million in spending by her attorney and accountant from her accounts during those 15 years, and another $43.3 million that was transferred into her personal account, apparently to cover her own spending. The total of $170 million works out to $1 million per month for a woman who never left her hospital room during that time. Among the highlights of the financial disclosure, drawn from the hundreds of pages of court records:

While her attorney and accountant were writing the checks for all the expenses for her three empty mansions, for her health care, for her staff, her legal expenses and all the rest, Huguette Clark had her own personal checkbook. We don't yet have the details of the checks that she wrote, but the accounting does show how much was transferred into her checking account, in lumps of $50,000, $200,000, even $5 million at a time. Between January 1997 and February 2009, a period of 12 years when she was between 90 and 102 years old, her magic checkbook was refilled in the amount of $43,325,000. Au Nain Bleu, a renowned doll and toy shop in Paris, was paid $2.5 million in 110 separate payments from 1997 to 2006. One of Clark's friends has said that her dolls were "her closest companions." The largest payment was for $82,513 in February 2004.Theriault's doll auctions received $729,000 in 21 payments from 1997 to 2009. The largest was $232,680 in July 2007.

Christopher Sadowski

Attorney Wallace "Wally" Bock says he has always done exactly what his client, heiress Huguette Clark, has asked. He acknowledged soliciting from her a gift of $1.5 million for the community where his daughter and grandchildren live. Court records show the amount to be $1.85 million. Clark, who was raised a Roman Catholic, made several large contributions to Jewish settlements on the West Bank, where her attorney's daughter lives. Msnbc.com disclosed in 2010 that the attorney, Wallace "Wally" Bock, 79, asked Clark to contribute $1.5 million to a security system for his daughter's settlement. Bock acknowledged that payment in a legal filing last year. The new accounting shows that the total was actually $1.85 million. Bock or Clark's accountant, convicted felon and registered sex offender Irving Kamsler, 64, wrote four checks on her account totaling $1.65 million from 2000 through 2002 to the Central Fund of Israel. Then in September 2003, Bock wrote a check on her account for $200,000 to American Friends of New Communities in Israel.

The accounting shows that Kamsler received a stipend for his accounting services, peaking at $7,500 a month, or a rate of $90,000 per year. Bock's law firm was paid $18,000 to $25,000 per month, or about $250,000 per year. If the will is upheld, they stand to gain much more. Bock and Kamsler would receive $500,000 each as beneficiaries, and about $8 million each if the court allows them to serve as executors of her estate, with additional fees or salary as directors of a charitable foundation to be established to show her art in her California mansion. Both men have declined to comment on their actions, but their spokesmen have said the men both acted honorably in carrying out Clark's wishes. The most remarkable day covered by the financial disclosure may have been Nov. 16, 2009. This was one month after this reporter met with Bock at his office and made clear that msnbc.com was going to publish a story raising questions about Clark's whereabouts and financial affairs. On that Monday in November, Bock or Kamsler wrote $380,000 in checks on Clark's personal account, which apparently hadn't been used in nine months. Checks went to Dr. Henry Singman, her internist, for $50,000; nurse Hadassah Peri for $60,000; her husband Daniel Peri for $60,000; accountant Kamsler for $60,000; personal assistant Christopher Sattler for $60,000; nurse Geraldine Coffey for $30,000; goddaughter Wanda Styka for $50,000, and nurse Erlinda Ysit for $10,000. That was followed three weeks later by a check to attorney Bock for $60,000. In all, $440,000.

Claudio Papapietro

Irving Kamsler, Huguette Clark's longtime accountant, pleaded guilty in October 2008 to attempting to disseminate indecent material to minors on AOL. The court sentenced him to five years of probation, but he was allowed to keep his license as a certified public accountant. In a letter he told his client only the barest details of the case. Through the years her main private nurse, Hadassah Peri, received $2,520 a week, or $131,040 a year. She also was paid a lump sum of $5 million in 2009. As previously reported, Clark gave Peri the money to buy four homes for herself and her children. If the will is upheld, Peri would receive about $34 million, in addition to Clark's doll collection, value unknown. Beth Israel Medical Center, the New York hospital where she lived for years, received $4.9 million from December 1997 through February 2011, not counting payments to various doctors and departments. That works out to about $1,000 per day. The hospital has declined to explain why it allowed Clark, who was said to be quite healthy, to live in hospital rooms for the last 22 years of her life.

Her primary physician, internist Dr. Henry S. Singman, received regular monthly payments peaking at $5,000 a month, or $521,000 during this period. He is named in her will for another $100,000.
Her closest friend, Suzanne Pierre, received regular payments of $50,000 for service as a social secretary, totaling $1.7 million. Pierre also received a $10 million gift back in 2000. Pierre, who was the widow of Clark's physician, died just weeks before Clark.

Only a few public charities appear in the accounting. The largest is $810,000 to the Corcoran Gallery of Art in Washington, D.C., where the bulk of her father's art collection resides. In the will, the Corcoran stands to receive one of Monet's Water Lilies series, a small canvas valued at roughly $25 million. The painting has not been seen publicly since 1925.

Bock or Kamsler wrote checks for other small charitable gifts: $1,000 to the Music Academy of the West, $100 to the New Canaan Firefighters Benevolent Fund, $25,000 to the Santa Barbara Community Arts Music Association. Two gifts were made in the spring of 2010, just after her case came to light: $10,000 to the Paul Clark Home founded by her father in Butte, Mont., and $1,000 to the Spence School, her alma mater in Manhattan. Other charitable gifts may have been made from her personal checkbook.
Clark, who had no children of her own, apparently paid tuition and fees for several students. Bock or Kamsler wrote checks to Boston College ($53,000), Boston University ($20,000), New York City College of Technology ($6,600), and four Catholic Schools: Long Beach Catholic School ($25,000), Sacred Heart Academy ($47,700), St. Bernard's School ($15,000), and Saint Ignatius Loyola School ($500).
She made payments to the IRS for $45 million, and New York state income tax of $15 million. And state gift tax payments of $975,000.

Her unoccupied 5th Avenue apartments, said to be the largest property under a single ownership anywhere on the prestigious avenue, cost $3.75 million during these 15 years just for the taxes and co-op fees, peaking at $28,844 per month. She has 15,0000 square feet on two floors of 907 Fifth Ave. at 71st Street. Another $900,000 went to Anton Sattler Management Co., which handled affairs at her apartment. And $1.5 million was paid through the years to Christopher Sattler, who worked as a personal assistant and property manager. He also would receive $500,000 if the will is upheld.

Her vacant country home in New Canaan, Conn., on the market for several years at $24 million, cost over $100,000 a year just to pay the property taxes. Her unoccupied Santa Barbara oceanfront estate, with an estimated value of $100 million, cost her $8.8 million in various operating costs from 1997 to 2011.
All of Clark's properties are locked down now, protected by the court until the case is resolved.
The expenditures will be investigated by attorneys for the New York County Public Administrator, whose office was appointed by the Surrogate's Court to serve as a third temporary executor, along with Bock and Kamsler. One of the roles of the Public Administrator in this case is to make sure the estate was protected, both before and after Clark's death.

To keep up with the spending, her attorney and accountant were raising money during this period as well: $87 million transferred in from a custody account at J.P. Morgan, $15 million from a Bank of America account, a $5 million loan from J.P. Morgan in 2009, the $6 million sale of one of her Stradivarius violins, and $52 million in sales at Sotheby's. (Her last major purchase at Sotheby's was in 2000 for $124,000.)
Huguette Clark did save considerable money through the years in one respect: electricity. As she lived in a hospital room on the Lower East Side, the Con Edison bill at her 15,000-square-foot apartments on Fifth Avenue rarely rose above $100 a month.

If the McCourt's Can Settle Their Divorce Issues, So Can You!

2011-10-17T13:27:00.000-07:00

The McCourt's have reached a divorce settlement that gives him control of the Los Angeles Dodgers and her about $130 million, making it one of California's costliest divorces, according to a report published Monday, Oct. 17, 2011. The McCourt's have plenty of money to spend fignting about money. Most people do not. We are very conscious of the price clients pay, both economically as well as emotionally when they believe they need to prove they are right or ensure that justice is done. Unfortunately, it is often not until the dust settles that they come to realize that being able to forgive is essential to moving on and, until that time, the bills and the headaches will keep piling on.

relaxing After a Hard Day

2011-09-21T19:47:00.001-07:00

Times are tough for many people. So many peple without assets still.fighting over things that next year they will laugh over. Real problems such as elder abuse very scary. More people need to come forward to deal with this peevasive issue.

Published with Blogger-droid v1.7.2

Managing Money Post-Separation: An Analysis of Marriage of Margulis

2011-09-19T14:26:00.000-07:00

Oftentimes, the decision to get a divorce is a slow and painful process for couples. Even more arduous and painstaking is the procedure of separating once-intertwined lives. This process involves time-consuming but necessary tasks such as getting separate bank accounts, separate credit cards, moving into separate homes, etc. While these chores may seem inane and pointless at a very emotionally difficult time, taking care of them expeditiously can save time, money, and emotional headaches for divorcing couples. Failing to heed this warning will result in a financial catastrophe similar to that found in the recent case, Marriage of Margulis (August 11, 2011) which can be found by clicking the link: http://www.courtinfo.ca.gov/opinions/documents/G041948.PDF

In Margulis, the Parties failed to properly separate and account for their finances after their separation, which turned out to be a big mistake. Leading up to and during trial, the two disagreed over the extent of their shared community assets. Although the Court of Appeal ultimately ruled in favor of the wife, both Parties had to pay for this mistake by needlessly spending time and amassing extensive attorney’s fees arguing over the issue.
Elaine and Alan Margulis separated in 1996 after a marriage of over thirty-three years. Following their separation, Alan moved out of the family residence. However, Alan continued to manage the family's money in the same manner that he did during the Parties' marriage. He continued to pay all of the Parties' bills, receive bank statements and managed the Parties' stock investments among other things. In 2002, six years after the Parties separated, Elaine filed for divorce. After another five years, Alan filed his response. Despite separating twelve years before, Alan continued during this entire period to manage the Parties' assets in the same manner he always had.

When it came time for the Parties to try their case, it became apparent that they had very different understandings of the extent of the community assets. Elaine valued assets higher than Alan did and included certain investment accounts which Alan never mentioned. Alan said that the depletion of some of the assets were due to the fact that he had to pay all the community expenses, as well as pay Elaines expenses. Also, there were losses in the stock market which negatively affected their assets.

Alan produced no documentation regarding the investment accounts. Nor did he provide an accounting of how the community funds were spent. Furthermore, he made no attempt to trace the community's income and expenses. He simply claimed that the losses were due to the downturn in the stock market and his payment of community expenses. He also denied having access to the investment account statements, once he moved out of the family residence. Elaine alleged otherwise: that Alan had complete control of the investment accounts as well as all of the family assets and that he ignored all requests to provide a record of the accounting history.

At trial, Elaine introduced a financial statement of the Parties' assets prepared by Alan in 1999. Elaine requested that Alan be charged with the depletion of the assets since that date unless Alan could prove that he did not misappropriate the money. Although the Judge admitted the 1999 financial statement into evidence, the judge said that it was not enough to prove that the accounts listed on the financial statement actually existed or that the values on the list were accurate.

Ultimately, among other decisions made by the judge (which are neither discussed herein, nor relevant to the topic of this article), Alan was not charged with the missing funds. Instead, the judge ordered Elaine to reimburse Alan for paying her separate property expenses following the date of separation. The judge found that, although the financial statement was insufficient to substantiate the Parties' assets and Elaine's claims regarding what happened to them, Alan had breached his fiduciary duty to maintain records for the community assets he controlled and ordered him to pay $20,000 in sanctions and a portion of Elaine's attorney fees. Both arties appealed these orders.

The Court of Appeal ruled in Elaine's favor, stating that, once a nonmanaging spouse makes a prima facie showing concerning the existence and value of community assets in the control of the other spouse post separation, the burden of proof shifts to the managing spouse to rebut the showing or prove the proper disposition or lesser value of these assets. If the managing spouse fails to meet this burden, the court should charge the managing spouse with the assets according to the prima facie showing.

The Appellate Court explained that Athe rationale for shifting the evidentiary burden concerning missing assets to the managing spouse arises from the simple fact that an accounting of all community property is required so the Court may divide it equally. Alan argued that the burden-shifting approach improperly presumed the managing spouse breached a fiduciary duty. He claimed that a managing spouse should not be charged with missing assets unless there is evidence of mismanagement or misappropriation. The Appellate Court disagreed. It found that Alan's approach increases the risk of an unfair property division because a nonmanaging spouse who lacks personal knowledge and records of the disposition of missing community assets would find it extremely difficult to make the initial showing of mismanagement or fraud to shift the burden of proof. No sound policy reason supports the adoption of Alan's proposed rule; indeed, the rule would contradict a managing spouse's obligation to provide the full disclosure and accounting owed to a managing spouse. The Court thus ordered a retrial regarding the community property issues.

This case is a strong reminder that the best practice regarding finances for separating couples is to separate finances as soon as possible following separation. Doing so will save time and money once the parties are ready to divide their assets (and debts). At the very least, following separation, the managing spouse should maintain records of the Parties' accounts and provide the nonmanaging spouse regular accountings. The managing spouse has a fiduciary duty to account for the management of community assets under his or her control. A managing spouse can be charged with the misappropriation or mismanagement of community assets and can be liable for attorney's fees if they neither separate assets between the spouses nor account for the comingling and dissipation of same. Conversely, without taking responsibility for separating certain assets and liabilities at the beginning of the divorce process, the non-managing spouse will spend large amounts of time and money to determine and prove the existence and value of the assets at the time of separation in order to shift the burden to the managing spouse.

Making the decision to separate or divorce is a difficult one, as is navigating the entire process. Failure to understand the nature and extent of one=s assets and liabilities can have significant financial and emotional consequences. Upon consideration of a divorce or separation, consulting an experienced family law attorney right away is essential to protect a party's rights (and peace of mind) during the course of separation or divorce.

summer Book List

2011-08-05T08:13:00.001-07:00

I am Just in the middle of the Rembrandt Affair by Daniel Silva. Another great story/mystory about the in defatigable Israeli spy Gabriel Allon this time avenging those victims of the Nazis who stole their art collections.

Published with Blogger-droid v1.7.2

Point well taken. Can I improve the silence?

2011-06-25T09:59:00.001-07:00

--
shared via Twidroyd http://twidroyd.com'>Shared message via Twidroyd

Published with Blogger-droid v1.7.2

Women's right to sue as a class limited. Is that the good news or the bad?

2011-06-21T14:07:00.000-07:00

The U.S. Supreme Court ruled yesterday that a super-large group of women attempting to sue Wal-Mart failed to establish a commonality of purpose in the filing of a class action lawsuit. The decision was split numerous ways. Justice Scalia delivered the opinion of the Court. Chief Justice Roberts and Justices Kennedy and Alito joined in the opinion. Justices Ginsburg, Breyer, Sotomayor and Kagan joined as to Parts I and III and Justice Ginsburg filed an opinion which concurred in part and dissented in part as to Part II, in which Breyer, Sotomayor and Kagan joined. While the "majority" obviously leaned way towards the conservative side of the Court, the issues of gender discrimination and the right to sue as a group got mixed up with the issue of what constitutes a group for purposes of certification as a class. Many view this decision as a "win" for "big business" and a loss for the "liberals." However, if you look beneath the surface of the actual holding, the suit remains viable as to 3 of the 7 named plaintiffs and across the country other potential plaintiffs are coming forward and corporate policies will be scrutinized on a more localized level. That is not all bad, although the loss for certain of the plaintiffs seems unreasonably unfair, considering the technical nature of the decision. Anything that clarifies the certification process such that more victories for the discriminated upon may be forthcoming in the long run cannot be all bad.

Exciting Changes Happening With Association of Certified Family Law Specialists

2011-06-18T14:12:00.000-07:00

At the latest board meeting of ACFLS, we learned that as of August 18, 2011 our brand new website will go live. This website will allow Facebook-like control over comments, blogs, forums, messaging, profiles, calendaring and the like. As I was involved from the very beginning in designing and creating content for the ACFLS website, I feel particularly proud as to how far we have come in this techno-savvy world. Generally, lawyers are so busy, it has proven difficult to move the more seasoned lawyers into the virtual world. Clearly, that world has now met our world and it is an amazing one that I cannot believe we ever lived without!

Also, our Newsletter has received a major facelift in terms of name and presentation and we are inaugurating a monthly news blast to go out to all of our members starting this July!

Flurry of Estate Planning Activity

2011-06-04T17:39:00.000-07:00

Seems like everyone has stopped to think about the realities of life (and death) and planning for the expected and unexpected future. I am encouraged that more and more frequently, my friends, relatives and clients are calling me about updating their estate plan or developing one for the very first time. And calls come in every day about creating or amending a trust. Not only that, it is that time of year for inquiries about a prenuptial agreement. Often, the couple has not provided themselves with enough time to prepare, review and sign a prenup at least 7 days before the wedding. More often than not, they are left with the only option of drafting a community property (post-nuptial) agreement which sometimes they never get around to doing after the wedding. But at least they are learning of the necessity and objective good practice of putting down in writing how they want to handle their financial lives in the present - and in the future.

Much Going On For Family Law Specialists

2011-04-15T10:20:00.000-07:00

This weekend, commencing Friday April 17, 2011, family law specialists from up and down the State of California have descended upon Indian Wells, CA at the Hyatt Grand Champions Hotel to hear from some of the finest minds in the field, including a number of judges, on topics of great interest to us as well as the family law litigant. It is always to refreshing and inspiring to hear from other practitioners as to how their business is doing in these difficult times and how they spend their insufficient leisure time to destress and renew their interest in the specialty. I may have been tired, stress and enormously distracted by other familial obligations, but as soon as I connected with my good friends and colleagues, I became tremendously rejuvenated. Looking forward to my own presentation going well and concluding, so I can relax and enjoy the balance of the program and the lovely weather here in the desert.

Getting in Shape for Work

2011-03-27T21:50:00.000-07:00

The practice of law gets harder and harder and I have to think it is not just because I have been doing it for nearly 30 years, but rather because life in general is more complicated. With every technological advance comes benefits but also additional stress, expense and other difficulties. All the blessings bestowed on us can also drag us down. My clients live more insecurely now than in the past. This makes my job harder and makes it less gratifying because there are fewer opportunities to actually make a difference. I blame this phenomenon in large part on the multi-levels of communication that implode in our brains and leave imprints like permanent black markers on our souls. Getting the job done, whether as a family law attorney, probate attorney or estate planning attorney, takes longer and costs more than just a few years ago. This makes my clients unhappy and, in turn, makes me unhappy when they either cannot or will not pay their bill.

To counteract this anxiety-ridden profession, I try to take care of myself. I do not always succeed, because I spend way too many hours responding to emails and working on managing my law firm, in addition to taking care of my clients. But every once in awhile I find - and take - the opportunity to take care of myself. This was one of those weekends. Exercise, yoga, relaxing with friends, playing with my new puppy, reading a good book, thinking about what is important to me, repairing relationships and facing up to my frailties all packed into a weekend over far too soon. I am stronger now, heading into a new work week and hope I remember to take time to do it all again soon.

Happy and Healthy New Year

2011-01-05T17:17:00.000-08:00

Having refreshed myself over the holidays, I am looking forward to a good year surrounded by good people and looking forward to helping those that choose that choose to hire our firm. The new laws, both state and federal, should also help everyone rise up from the dolldrums of the recession and find a comfort level not felt in quite some time. Look for a review of the important laws affecting family law estates on our website as well as a new article on Special Needs Trusts. To all our good wishes for a peaceful and joyous new year.

Valuable Estate Planning and Tax Tips from our Friends at the Jewish Community Foundation

2010-11-08T17:32:00.000-08:00

10 Important Planning Thoughts for Year-End 2010

The following "10 Important Planning Thoughts for Year-End 2010" are not intended as specific tax advice but rather as a reminder of some of the issues you may want to raise with professional advisors before 12/31/10.

(1) There is no substitute for good professional advice.

Individuals are well-advised to consult with tax and financial planning professionals between now and year-end. Conversations with your estate planning attorneys and/or CPAs are essential. And the discussion should also include your financial planner or broker as well as a philanthropic advisor such as a Jewish Community Foundation planned giving professional. Decisions can be made now and implemented when most beneficial (after Congress acts or fails to act and before year-end).

(2) Run and re-run the numbers under different scenarios.

Tax projections are probably the most common year-end tool used by tax and financial planners estimating taxable income and potential savings using historical data, projected income and expenses and deductions, such as charitable contributions. The wild card this year is determining what the income (and estate and gift) tax rates will be for 2010 and 2011. Alternative scenarios will be necessary and adjustments in both projections and resultant planning strategies should be discussed early to allow for time for change where necessary.

(3) Traditional tax planning is probably not the only answer.

Most years, the mantra from most tax and financial planners is to "defer income to next year and accelerate deductions into this year." This may not be the best approach this year-end, especially if individual tax rates rise in 2011 and future years. The Obama Administration and many congressional Democrats favor letting the 2011 income tax rates rise from 35 percent to 39.6 percent for those making over $250,000 (married) and $200,000 (single). (Note that if Congress fails to act by year-end, income tax rates for all taxpayers would increase.) In addition, there are over 50 other individual income tax provisions in the tax code that could be impacted by tax rate legislation, some of which would have the effect of increasing individual taxes for many. For example, if the "phase-out" to itemized deductions, including the charitable contribution deduction, is reinstated in 2011, this might encourage some donors to accelerate some charitable gifts before year-end 2010. On the other hand, if an individual's tax rate will be substantially higher in 2011, it may be preferable to defer a charitable gift until January.

(4) Accelerate income to 2010.

If tax and financial planners conclude that the best strategy is to accelerate income into 2010 based on specific facts and circumstances, they may suggest certain "one-time-only" strategies such as accelerating receipt of bonus payments traditionally paid in January, generating dividend income or in some cases recognizing gains from certain capital gain assets such as from the sale of stocks and securities.

(5) Those with primarily portfolio income really need to pay attention.

Families with income generated primarily from dividends, capital gains, and other investment income should pay close attention to the year-end tax debate. The effective tax rate on significant dividend and capital gain income could more than double from 2010 to 2011 under some scenarios and as such, income acceleration techniques to maximize potential savings this year-end may be most appropriate. Some thoughts to consider: the after-tax cost to net $1.00 from long-term capital gain increases from $1.18 in 2010 to $1.25 in 2011 and $1.31 in 2013 and later years. The after-tax cost for $1.00 of dividend income could increase to $1.77 in 2013 under current tax rate proposals.

(6) Take advantage of stock market gains, if there are any.

If you have a donor advised fund or family support organization, a great way to add funds to it is through appreciated stock. With the tax rate on capital gains almost certainly set to increase as of January 1, 2011, tax and financial planners may recommend selling stocks and bonds that have appreciated in value. (Remember: for stocks with gains, there is no rule prohibiting investors from buying back the same asset shortly after the sale without adverse tax consequences for those who think there is a potential for future growth.) At least two other points to consider: (a) it is often more advantageous to gift appreciated assets to charity rather than selling the asset; and (b) capital loss carryovers will be more valuable when tax rates are higher (2011 and later years). Bottom line: review your entire portfolio when considering capital asset planning.

(7) This could be the year for a Roth IRA conversion.

There has been much written about converting traditional IRAs to Roth IRAs in 2010 as there is no income limit this year on who can qualify for this transaction. As with other income and estate tax planning, it is essential to run the numbers to see if this strategy makes sense. A further point to consider is that charitable giving can offset some of the additional taxes that will be generated by the Roth IRA conversion. Making significant charitable contributions before the end of 2010 may be a tax-efficient strategy, especially for those who have sufficient assets to pay the Roth IRA conversion and who will consider making what could be a larger than normal charitable donation this year.

(8) Don't forget basic estate planning, even in times of uncertainty.

Continued congressional deadlock over the estate and gift tax makes most crystal ball prognostication over the final outcome cloudy at best. But don't forget the basics such as taking advantage of the annual gift tax exclusion amount of $13,000 per donee ($26,000 where a spouse joins the gift). In addition, a variety of other estate planning techniques remain very attractive in the current low-interest rate environment including charitable lead annuity trusts.

(9) Don't forget about the alternative minimum tax.

For many middle and high-income taxpayers, the alternative minimum tax is an additional factor in tax planning scenarios, often requiring strategies that differ from those for the regular income tax. All things being equal, the AMT may be less of a factor in 2011 and future years if individual income tax rates increase. Again, it is essential to sit down and run the numbers to determine which planning strategies are most appropriate.

(10) Start the conversation with advisors as soon as possible.

Use the remaining weeks before year-end as a time to sit down with trusted advisors to review both short- and long-term charitable giving strategies and objectives. From a tax perspective, 2010 may represent the best time in almost a quarter-century for individuals to address their overall tax, estate, and philanthropic portfolio.

Who Has Standing to File a Petition for Nullity of Marriage?

2010-08-18T12:41:00.000-07:00

This year our firm has been working on a nullity proceeding which has raised interesting questions of law with regard to third parties who have standing to file the Petition on behalf of a spouse. Our client filed a Petition for nullity on behalf of his grandmother, based upon the fact that at the time of the purported “marriage” to the 27 year old purported husband, his 80 year old grandmother was of “unsound mind,” and lacked mental capacity to enter into a marriage contract. A deposition of the Reverend who officiated the marriage revealed that upon request by the “husband,” he had issued a “confidential marriage license” to the couple. Several months after filing the Petition, our client’s grandmother passed away.

When we appeared in Court on this matter, the Court, on its own motion, posed the following question: Whether, during the pendency of a nullity proceeding and before entry of Judgment, upon the death of a Party, does the Family Law Court lose Jurisdiction to enter a Judgment of Nullity of Marriage. At that hearing, the Court asked the Parties to brief the issue and pay particular attention to the recent case of Pryor v. Pryor (2009) 177 Cal.App.4th 1448, which involved the well known actor/comedian Richard Pryor.

In the Pryor case, Richard Pryor had married Jennifer Lee Pryor in 1981 but then divorced her in 1982, without having any children with her. Twenty years later, on June 8, 2001, Richard and Jennifer remarried pursuant to a confidential marriage license. On December 10, 2005, Richard passed away, leaving behind six children. At some point after his death, one of his children, Elizabeth, discovered her father's 2001 remarriage to Jennifer and on July 17, 2007, a year and a half after his death, she petitioned to annul the marriage on the grounds of fraud.

As we successfully argued in our brief, the pertinent statutes, Family Code § 2210 and Family Code § 2211 reflect that our client clearly has standing because, as differentiated from the facts in the Pryor case, in our case (1) the Petition for nullity was filed several months before his grandmother’s death and (2) the nullity action was based on “unsound mind” and not on “fraud.”

Family Code § 2210 reads in pertinent part, as follows:

“A marriage is voidable and may be adjudged a nullity if any of the following conditions existed at the time of the marriage:...(c) Either

party was of unsound mind, unless the party of unsound mind, after coming to reason, freely cohabited with the other as husband and wife.

(d) The consent of either party was obtained by fraud, unless the party whose consent was obtained by fraud afterwards, with full

knowledge of the facts constituting the fraud, freely cohabited with

the other as husband or wife....” [Emphasis added].

Furthermore, under Family Code § 2211, the legislature has clearly delineated provisions for who has standing to file a nullity petition, and has provided different limitations periods, depending on the ground for annulment. These distinctions are expressly stated in Family Code § 2211, which reads in pertinent part, as follows:

“A proceeding to obtain a judgment of nullity of marriage, for

causes set forth in Section 2210, must be commenced within the

periods and by the parties, as follows:....(c) For causes mentioned

in subdivision (c) of Section 2210, by the party injured, or by a

relative or conservator of the party of unsound mind, at any time

before the death of either party. (d) For causes mentioned in

subdivision (d) of Section 2210, by the party whose consent was

obtained by fraud, within four years after the discovery of the facts constituting the fraud....” [Emphasis added].

In our brief to the Court, we argued that Family Code § 2211 reflects the legislature’s

intention that standing for nullity actions based on “fraud” [Family Code § 2210(d)] be limited to “the party whose consent was obtained by fraud.” By contrast, standing for nullity actions based on “unsound mind” [Family Code § 2210(c)], is extended to include relatives.

Additionally, the period in which to commence the action is limited differently for each cause upon which the nullity may be based. Specifically, a nullity action based on fraud is delimited by the period “within four years after the discovery of the facts constituting the fraud...." By contrast, a Nullity action based on “unsound mind” can be brought, “at any time before the death of either party.”

In our case, because our client was a relative and had filed the Petition within his grandmother’s lifetime and the nullity action was based on “unsound mind,” the trial court ultimately found that our client had standing to file the Petition for Nullity.
However, the trial court also ruled that although his grandmother was personally served with a copy of the Petition prior to her death, our client should have joined his grandmother (or her conservator) as a Party and had failed to do so. Accordingly, the Court ordered the case stayed until we joined the grandmother’s (as of yet, unappointed) personal representative. Appointing a personal representative for a person now-deceased is unusual, and, as explained below, in our case, this task fell to the Probate Court to accomplish.

In addition to the family law matter, our client is also in the midst of several probate cases concerning his grandmother’s $8 million estate. In the probate matters the salient issue is whether his grandmother had mental capacity to execute certain amendments made to her trust several years before her death. We have recently learned that our client’s probate attorney has successfully petitioned the Court to appoint a personal representative, and the Court has appointed a neutral party to so act. We are grateful that the issue of third-party standing is now behind us and we look forward to taking this complex and interesting case to Trial.

Not So Happy Wanderer

2010-08-17T10:15:00.000-07:00

Traveling to a new venue to argue against a motion in civil court. Has been 20 years since my law & motion days. I hope for a smart judge who has read my opposition and wish the best for my well-deserving clients. This case arose from a probate case in an attempt to get a creditor's claim for funeral expenses paid. The costs of litigation will soon be more that the amount of the claim, which is why, I guess, the defendant simply refuses to pay the bill.

Saddened by Mindless Killings of Medical Teamin Afghanistan

2010-08-09T12:18:00.000-07:00

I read that members of a medical team gunned down in Afghanistan brought some of the first toothbrushes and eyeglasses villagers had ever seen and spent no time talking about religion as they provided medical care. What has happened to people to be so callous about life? And, on the other hand, what possesses other people to put the needs of others less fortunate in front of their own safety? Plus ca change, plus ne change pas.

Great Week for Acknowledging Freedom We Take For Granted

2010-08-06T10:09:00.000-07:00

This week, Elena Kagan was confirmed as a centrist U.S. Supreme Court Justice without mention of her gender or religious preference in the midst of one of the most contentious partisan lack of sensibility in modern times. Also, this week a Republican conservative federal judge upheld the concept of freedom as set forth in our federal constitution and included gays and lesbians as a suspect class subject to the protections of the 14th Amendment. We also remember the 65th anniversary of the bombing of Hiroshima, a dark day for humanity, but a bright light for the future of democracy. Take a moment to contemplate the true meaning for each of us on the passage of these events.

Wiping Hard Drives Clean

2010-07-30T09:56:00.000-07:00

Almost all copiers and fax machines manufactured after 2002 have a hard drive that stores all images processed through the machine. Once you no longer own or lease your machine, the next user can view all of the images on the hard drive. Most trade-ins end up in foreign countries where they are recylced for re-use. Free software is currently available to the new users on the internet which provides them access to the hard drive. Although security and encryption software is available to the seller,it is rarely purchased. Thus we should never dispose of a copy/fax machine without absolute assurance that the hard drive has been DESTROYED or WIPED CLEAN.

A Strange Time for Life and Death

2010-07-28T17:31:00.000-07:00

Life can be cruel and harsh. Some lives cut short before their time. Others linger on and on with ugly and debilitating illnesses and conditions. Families suffer so much during those times. We can all help comfort those in need and think about how to help others in meaningful ways much more than we do. I will try harder to do so.

Why Every Adult Needs a Complete Estate Plan

2010-06-23T14:56:00.000-07:00

Nearly eighty percent of Americans own a home and over fifty-five percent of American citizens have minor children living at home; yet less than half of the population of the United States has ever executed a will, much less the other necessary documents making up a complete estate plan. Some of us may need long-term health care now or in the future, but clearly, since both death and taxes are certainties for all of us, finding ways to limit the amount of taxes your heirs or beneficiaries will have to pay after you are gone should be a priority, whether married or not, a parent or not, wealthy or not. The estate tax threshold may be as low as $1 million in 2011 and the estate tax could be as high as 55%. $1 million may seem like a lot of money but bear in mind that the amount of life insurance you have is added to your estate immediately upon death, so that $1million can quickly sneak up on you. Also, it is not the net value of your assets that apply to the threshhold, but the gross, so if you have a mortgage worth even as much as your house, your estate will still include the fair market value of the property.

The government taxes wages each year at somewhere between 20 and 35 percent. After your death, the government will tax an additional 45 to 55 percent of what you managed to preserve in your estate. Almost 80 percent of what you earn in your lifetime will go directly to pay your taxes unless you take the time and spend the money to work with an attorney and draft your estate plan.

There are five components to a basic estate plan. A Will is a legal declaration by which a person names one or more other persons to execute or perform the duties required of him or her pursuant to the terms of the Will. It provides for the transfer of his or her property at death as well as instructions for appointment of a guardian of children and even of pets. An Advance Health Care Directive, sometimes known as a "Living Will," is a written document that states a person's wishes regarding healthcare decisions for you when you become unable to make them for yourself, as well as life-support or other medical treatment in certain circumstances, usually when death is imminent. It also allows a person to direct his or her agent as to burial wishes, autopsies, and anatomical gifts. Finally, it should include your HIPAA designation, which allows certain designated individuals to have access to your medical records. A General or Special Durable or Limited Power of Attorney is a written authorization to an agent to perform specified acts on behalf of his/her principal. This estate planning tool makes it easier in transition to have a close friend or relative handle financial affairs without having to obtain a court order first in the form of a conservatorship. Another time I will discuss ways in which a trust, of which there are many types, may help control your estate beyond your death as well as limit your tax exposure. If you have a spouse, a child, particular charities that you support, own a home, or want to leave behind a legacy of any kind, you need to talk to an attorney about getting your will and other estate planning documents in order. If you have one, but it is older than five years, you should wait no longer to have it reviewed. It is so important that this task is not put off any longer. None of us can control how much time we have left but we can control how our loved ones are left behind.

Wit and Wisdom from a Wise Financial Planner

2010-06-17T15:28:00.000-07:00

Aspirations Realized By Colin S. Mackenzie, CFP ®

There are moments that stick with you for a lifetime. I’d like to share one such moment among many that I have been blessed with over the years. During the years I spent working in the Home Office of Financial Network, there were a wide variety of assignments that caused me to call offices around the country to research various issues. One of these projects put me in touch with several very good people who support advisors.

One lady, Sandy had been selected because she runs interference for one of the most successful financial advisors in the country. During our conversation she revealed that this advisor is a very smart man and rewards productive people who help him leverage his time. What really got me though was Sandy saying that by saving her bonuses it allowed her “to buy much more of a Harley than I ever thought I would be able to buy!”.

Good for You!

Though I was a little surprised, it was the deep sense of satisfaction that she could realize her dream…..and it was within her means….. that impressed me most. Her “Dream/Big Purchases Bucket” had been filled high enough that these funds could be poured out to acquire something that brings her the joy of the open road, something very meaningful to her.

Ever notice that the things that seem to provide the deepest and greatest satisfaction are things that require focus, determination, patience, sacrifice and follow through? Only the things that stir people deeply can inspire that type of prolonged effort. Each reader has done this to one extent or another for something important to them. As friends from New Zealand or Australia might say: “Good on ya mate!”

Honesty

In client meetings I will often see where conversation and thought takes us. In one meeting with a very dear client I was led to ask the question: “What is all the money for?”. After lightly complaining that I ask very difficult questions, she said that the money was there to share experiences with people she loves. It was an interesting moment of clarity for her and also of honesty with what is most important to her.

Once you have that jewel of what is most important (or what couple of things are most important), then you can proceed to develop specific dreams to honor what is important to you. Specific dreams are things of beauty and are most compelling when you visualize them coming true as vividly as possible.

While we are on honesty and dreams at the same time, we need to keep balance in mind too. At some dollar figure a specific dream may not be wise. The wisdom comes in when creativity takes over and modifies the specific so that it is attainable. If owning a Lear Jet was a dream, then perhaps renting one on occasion might be a way to satisfy the dream, in a way that is more attainable.

Get Inspired

Some of the most inspirational dreams I hear from people have very little to do with travel or possessions, rather they can involve making the world a better place and caring for others. A client of mine will become a grandmother this year and her current number one dream is a college education for her grandchildren.

At church, my wife and I heard an interesting story from Rick Warren the minister at Saddleback Church and the author of “The Purpose Drive Life”. Rick’s dream years ago was to lead off the capital campaign to build their Lake Forest campus with a quarter of a million dollar donation of his own. Only one problem, his salary wouldn’t come close and he hadn’t written the book yet. Interestingly enough, the book was finished just before the campaign began and the initial payments he received allowed him to realize the dream of that contribution. Faith can truly be a powerful thing.

It Doesn’t Take a Windfall

Most of us (even those who write newsletters) may not receive windfalls that allow us to realize our dreams quickly. The time frame is less important than identifying what your dream is and beginning a systematic way to save and invest for it. For instance, one of my dreams is to provide a good amount of funds for my daughter (age 28) to get married, if she meets the right man one day. The equivalent of the cost for about 2 guests is being invested in her name each month for the next 4 years to help realize that dream.

What specific dreams do you have? How much will need to go into your “Dream/Big Purchases Bucket” to have enough to realize that dream when the time comes? How much needs to be set aside each month for that dream to come true.

Bottom Line - In this and the two previous issues we covered three of “The Four Buckets”. (If you would like me to send you those issues again just let me know.) Where the other two dealt with life’s every day and emergency costs, this issue goes well beyond those mundane requirements to “pay the bills”. This “Bucket” truly is ours to use to express what we love and want most. To get the most from your “Dream/Large Purchase Bucket” you will want to:

• Be clear about what is most important to you

• Use that clarity to develop a mental picture of a specific dream you would like to realize

• Identify what resources are necessary to realize the dream

• Begin a systematic way to develop the necessary resources

Life doesn’t always allow us to realize all of our dreams, still your life will be a little more full as you aspire to the fulfillment of certain dreams.

Your Feedback

I would love feedback on this newsletter. Future issues may include a host of good ideas, insights, specific steps to take financially, life insights and of course "Wit and Wisdom". Most importantly, I’d like it to be of value to you and to encourage an exchange of great ideas and insights. Please send your feedback to:

Colin S. Mackenzie, CFP ®
Financial Network
301 E. Colorado Blvd, #400
Pasadena, CA 91101
mackenziec@financialnetwork.com
(626) 795-8896

Finding Time for Life and Sharing Life with a Companion Animal

2010-05-11T18:19:00.000-07:00

Every day so many problems come across my desk to solve. Yet I cannot solve the problem of time passing by at an ever-increasing rate of speed. I have been looking for dogs to share my life with and allow me a more appropriate balance between my work life and my personal life. Not any easy task when I am so busy and so rarely at home; and I have plenty to take care of between my work, my home and my family. Nevertheless, sometimes I feel that I am on call all the time thinking about how to solve other people's problems and am not devoting enough time to doing what I need to do to fulfill my asperations. Just being me and caring for a companion animal who doesn't judge me and loves me unconditionally is very important to me. Anyone reading this who loves animals will understand. If you have animals, please don't forget to include them in your estate plans, now that pet trusts are legal.

Spring 2010 Newsletter Hot Off the Press

2010-04-28T11:42:00.000-07:00

Cooper-Gordon LLP nvites you to read the most recent newsletter written by Frieda Gordon and Avery Cooper which can be found at their website http://www.cooper-gordon.com/. Photos have also been included in the newsletter.

AVERY COOPER A HUGE SUCCESS IN INDIAN WELLS SEMINAR

2010-03-31T11:23:00.000-07:00

Avery Cooper presented a program on Crossover Issues Between Probate and Family Law related to Transmutations along with another distinguished family law specialist from San Francisco and Judge Mitchell Beckloff, sitting as Supervising Judge of Probate Court in Los Angeles. This was part of a larger 3-Day Seminar brought every Spring for 20 years by the Association of Certified Family Law Specialists, composed of members throughout the State of California. It was held in Indian Wells, California at the luxurious Hyatt Grand Champions Hotel and Spa. Avery has proven himself to be one of the leading specialists not only in family law, but in probate and estate planning as well. He brought up many important issues for family law attorneys to be aware as they prepare prenuptial agreements and review various issues with new clients. The laws regarding community property differ depending on whether the parties are getting a divorce or one of them dies. Rather than have to pay for two and sometimes three or four attorneys to handle the various specialities overlapping family law, such as probate, estate planning, real estate and tax matters, Avery Cooper as well as his partner Frieda Gordon are very experienced in all of those matters and will be knowledgeable enough to ask the right questions so that the client will be completely protected and informed.

Congratulations to Avery for a job extremely well done!

Web Traffic for Cooper-Gordon Firm Doing Well

2010-01-20T15:44:00.000-08:00

After a lovely meeting with our FindLaw marketer, Dyonne Wollin, I was happy to learn that we have a very high number of hits to our web site, of which I am very proud. I would love to hear from anyone visiting our web site, and this blog, whether they like the web pages and whether some changes might improve the site and/or my blog. We are grateful for your responses, both positive and constructively critical.

Happy New Year from all of us at Cooper-Gordon LLP.

Where Oh Where Has the Estate Tax Gone?

2010-01-14T11:51:00.001-08:00

A virtual Black Hole was created for all of us who have, or intend to create an estate plan this year. As of January 1, 2010 our federal estate tax laws were repealed. However, only persons dying on and after January 1, 2010 but no later than December 31, 2010 will be affected. It may be comforting to note that Senate Finance Committee Chairman Max Baucus has pledged that the Senate will pass a bill reinstating the tax, which has passed through the House of Representatives in legislation previously passed on December 3, 2009, but this fact still leaves us with the question of whether a retroactive reinstatement of the federal estate tax will survive constitutional scrutiny for persons dying on or after January 1, 2010, but before the date of the bill’s passage and signing by the President. Best solution is to see your estates and trusts professionals and do whatever it takes to shelter your assets from estate taxes now, rather than later.

Time to Review and Fund the Assets in Your Estate

2010-01-05T12:28:00.000-08:00

Every five to seven years it is wise to review your estate plan, and if there has been any life-changing events, or large purchases, divestments or inheritances, or if you no longer speak to the person(s) you listed as next in line to make the most important decisions of your life for you when you are no longer capable of doing so yourself, it is time to contact your estates attorney and get your estate plan modified. Should you be among the majority who have put off that very important task too long, let this be a reminder that it is NEVER too soon to take care of those near and dear to you.

I was saddened recently to learn that a client of mine passed away, having done all he could to preserve his estate and provide for his intended beneficiaries. Unfortunately, the person he chose as Trustee did not change title to the liquid assets in the estate, thus negating one of the best the reasons for the Trust in the first place. At some cost, I am in the process of rectifying that situation. Please do not be one of those who forgets that every asset that should be in the trust must affirmatively be transferred to the trustee of that trust. It does not happen automatically!

Getting Along During the Holidays

2009-11-11T16:16:00.000-08:00

The holidays can be a difficult time reminding you of better years when the family was still together. It is sometimes helpful to take a vacation during the holidays to get away from painful triggers and escape the stress of cooking and cleaning, questions from well-meaning relatives and friends, decorating, going to parties alone, etc. Your children should be told that the holidays will be a happy time and you will make new memories. For examples of how to create new family traditions, check out a book by Jann Blackstone-Ford and Sharyl Jupe called Ex-Etiquette for Holidays and Other Family Celebrations . The authors' book on how to handle the holidays is practical and thorough. Make sure that you think about your child's best interests in making your plans. Be respectful of your ex's rituals and traditions and try not to speak ill of your ex-spouse or his family, or or anyone else for that matter.
Emphasize for the children that they will be celebrating with both parents and that the important thing is being together, not necessarily on a certain day. Just be sure to avoid giving your younger child the power to make the decision as to with which parent she or he will be during certain celebrations. That could make him or her feel guilty.

Noteworthy Changes in our tax laws for 2009

2009-11-10T18:00:00.000-08:00

There are many tax incentives set to expire. As a result, accelerating qualifying expenses into 2009 to take advantage of these incentives, rather than incurring them early in 2010, may make a significant difference in your overall tax bill. Some noteworthy changes in 2009 include the following:
• New vehicle deduction - The new economic stimulus law includes a special tax provision
designed to generate sales of motor vehicles. It applies to qualified vehicles purchased after
February 16, 2009.
• Residential Energy Credits - Take advantage of the energy tax credit for installations in
your home. The new economic stimulus law enhanced the residential energy credit for
installations in 2009.
• For businesses, bonus depreciation and enhanced "section 179 expensing," both designed
to temporarily encourage business to make capital investments, likely will be headed for
extinction at the end of 2009.
• Education Tax Credits - Qualifying taxpayers can now deduct 100% of the first $2,000
of tuition and related expenses and 25% of the next $2,000 of expenses for the first four
years of postsecondary education.
• Unemployment compensation - First $2,400 excluded from federal taxation in 2009.
• Cash for Clunkers - Excludable for federal tax purposes but potentially taxable in
California.

Too many changes!

2009-10-27T14:55:00.000-07:00

Along with my two associates, Drorit Bick Raiter and Katherine Su, I went to the San Fernando Valley Bar Association Family Law Section dinner meeting last night and heard Supervising Judge Marjorie Steinberg give us more bad news about all the family law judges who have barely learned how to handle their assignments being transferred out of family law and new judges with absolutely no experience in family law, or some with a bit, taking their place. Starting next week! Clients need to know that the whole system is so precarious right now that it is imperative to try to take the issues out of the courtroom and work in one of the alternative dispute resolution forums available, such as mediation or collaborative law to maintain at least a modicum of control over their own lives. The budget for family law court has been slashed by $90 million. If an employee leaves, there will be no replacement. There already is furlough day once a month on Wednesdays. Litigants will likely have to travel farther to a consolidated courthouse to have their matter heard because resources are being cut so much at individual branch courts, only a few will be hearing family law matters in the future. The legislature and our governor needs to know THIS IS NOT ACCEPTABLE. Please contact your local representatives and tell them to introduce and/or sign legislation directing more of the State's budget to the Family Law Courts where people's lives - children's lives - are at stake.

Congratulations to Avery Cooper and Frieda Gordon

2009-10-09T12:57:00.000-07:00

Avery Cooper and Frieda Gordon were named among the Super Lawyers for 2009. Visit www.superlawyers.com in the near future in order to see the online tribute to the General Partners of Cooper-Gordon LLP.

October is Adopt a Pet Month!

2009-10-01T18:20:00.000-07:00

Please take a few minutes to look at this website http://www.adoptapet.com/ and maybe even look at Jeff Howard's blog at http://blog.adoptapet.com . There are so many animals out there looking for love and a warm place to sleep and these same would-be companions will give back to you far more than you will ever give to them. The world and your life will be all the better for your efforts. I look forward to finding the right dogs for our family; and, in case you know of a yellow or white lab mix and/or an Australian shepard type black and white mix female between 1 and 3 years old, please let me know.

Plea by Wayne Pacelle, President & CEO of HSUS

2009-09-24T16:01:00.000-07:00

I tried this and it is so cute and easy to find just the right match, I hope you all use it.
Do you ever wonder what happens to a cat whose owners go through a nasty breakup over an affair? Or a dog whose cowardly owner leaves him on the side of the road? It's a sad fact, but these pets end up at animal shelters through no fault of their own.
We can feel sad for the dogs, cats, rabbits, birds, and even guinea pigs in shelters, or we can take action and spread the word that shelter animals make great pets. Today we're proud to announce the launch of an unprecedented advertising campaign aimed at doing just that:
The Shelter Pet Project.
Beginning today, several humorous, meaningful Public Service Announcements will be hitting the airwaves across the country. Why wait? You can watch the commercials now and even find a shelter pet of your own at The Shelter Pet Project's website.
The Shelter Pet Project, a collaborative effort by The Humane Society of the United States, Maddie's Fund, and the Ad Council, in partnership with the entire animal welfare community, is designed to encourage pet lovers to make shelters their first choice when they decide they want to add another pet to their family.
I encourage you to watch these humorous commercials at the Shelter Pet Project website, then search for adoptable pets near you. Test out the Adopt-A-Gram, an interactive e-card that you can send to friends and family to encourage them to adopt a pet, too!
Thank you for all you do for animals.
Sincerely,Wayne PacellePresident & CEO The Humane Society of the United States
P.S. When you're ready to add a new companion to your life, will you adopt a homeless pet?

2009-09-22T12:39:00.000-07:00

This is a wonderful newsletter sent to me by a great Financial Planner, whom I highly recommend to everyone trying to find a way to apportion income and savings more efficiently over the long term and keep more than we spend these days.

Income or Net Worth
By Colin S. Mackenzie, CFP ®
One of the truly interesting aspects of being a financial planner is watching people develop in their understanding of and sometimes their maturity around money. Each of us grew up watching our parents and other adults dealing with money issues in different ways. We also grew up hearing that dreaded word from time to time…...NO! It usually came up when we asked for something our parents felt we did not need or the family could not afford. It was our first encounter with a life long balance between our wants and the money available to satisfy these wishes.

So, we went to school, pursued our talents and interests and set off into the work force to begin to earn a living. It is a time in people’s lives when they have the fewest possessions and the most needs. To make matters worse for many people, it is when they also take on the burden of starting a family. So what are young people to do to make ends meet and prepare for the future?Is More Income The Answer?The first answer to this is income, to earn as large a paycheck as possible. The challenge is that most entry positions pay accordingly and starting a business with no bank roll is perilous at best. Somehow though we manage to get our feet under us and begin a life long journey of balancing what we would really like to spend money on, what we should spend money on and saving.

Face it, Friday night out is a lot more fun than saving for a 1st home purchase. So where does the answer lie? Our first thought is, if I could earn more money then there would be enough to support my lifestyle and save too. A funny thing happens though, we figure out how to earn more money and still it doesn’t quite seem to be enough.
Several very smart and successful couples have come to me in the past year with combined incomes over $200,000, which still wasn’t enough to permit them to get ahead. Why? Well the reasons are many, however their situations provide many insights that are worth consideration.A Different Yard StickThese couples were all normal parents, who all by the way were under the financial burden of providing for a private education for their children….and on the verge of years of college costs. All had settled into their careers and so the raises they were likely to see in their incomes were very modest. So how could we make this work? After all, isn’t that the job of the financial planner, to help people make their finances work?

Besides carefully helping each couple consider budget options, we spent a good deal of time discussing the idea of “Net Worth”. We begin our adult life in pursuit of bigger incomes not always realizing that the more important measure leading up to financial independence, retirement if you will, is actually net worth. However when you ask people to give you an idea of their net worth, most people are at a loss to provide even an estimate of that net worth.Different Horses In the RaceWhile everyone seems to know what their paycheck sends to their checking account twice a month, they are not sure where they stand when it comes to their assets minus their liabilities. Though you can’t spend net worth, there are many ways for net worth to generate income and reduce certain costs. In my opinion, the more profound measure of someone’s financial health can be found in their net worth, much more so than in their income.Finish Line Recently ING, the company that owns Financial Network Investment Corporation, has had an advertising campaign that you may have seen. In it they ask: “What’s your number?!” The concept is, what number you will need to be financially independent…..when earning a paycheck becomes an optional activity. As you probably already know, that number is the amount of net worth someone would need to be able to retire.Often there are different “finish lines” along the way in life. Having enough to:

buy the first car
buy the first home
pay for college for the children
take the well earned 25th anniversary second honeymoon
buy the retirement home or dream remodel
pay off the mortgage, if that is a goal
retire with a feeling of security

Each of these finish lines is reached with a careful eye towards building your assets and reducing your liabilities and debts. So this being said dear reader, What is your number? And how are you doing this quarter in tracking towards that number?? Bottom Line Simple things are often very hard or they are hard to find time to do. The bottom line here is to measure your net worth at the end of each quarter to see how you are doing. It is your best measure of financial health. If you would like to get some help in getting started on this exercise, let me know. I would enjoy helping you understand the value of this exercise and would enjoy helping you establish this quarterly habit.Of the two measures, income and net worth, net worth and the direction of your net worth is the more important measure. For excellent insights on this principal, pick up a copy of Dr. Thomas Stanley’s book, The Millionaire Next Door. It offers some great perspectives on this idea.

I would love feedback on this newsletter. Future issues may include a host of good ideas, insights, specific steps to take financially, life insights and of course “Wit and Wisdom”. Most importantly, I’d like it to be of value to you and to encourage an exchange of great ideas and insights. Please send your feedback to:
Colin S. Mackenzie, CFP ®Financial Network301 E. Colorado Blvd, #400Pasadena, CA 91101mackenziec@financialnetwork.com(626) 795-8896

2009-09-19T18:52:00.000-07:00

I loved spending this Rosh Hashana with my wonderful husband Avery and my mother Zelda and the dear people of our Santa Monica Synagogue. Each year it seems more and more meaningful to me as I recite the prayers, sing the familiar songs and wish my loved ones and friends a sweet New Year. I only regret that my daughters treat this day the same as any other. Each to his own, of course, but I would love to share the warmth and good feelings with my children, and of this I am deprived. Anyway, the best of everything the fresh New Year has to offer to believers and non-believers alike. L'Shana Tova.

Weekend in San Diego

2009-09-14T08:52:00.001-07:00

Had such an amazing time in San Diego during the State Bar Conference. Our Association of Certified Family Law Specialists Cocktail Party Saturday night was not only successful, but alot of fun. The view from the 21st floor of the Marriott didn't hurt, either. Our board meeting was amazing. Avery and I managed to have time to relax and have fun on our own, despite my still broken and painful foot. Always hard to face Monday's inevitable stressors at the office.

Labor Day

2009-09-07T10:39:00.000-07:00

I want to thank our wonderful staff and firm members for working so hard all year long, sometimes late into the evening and even on weekends, to give our clients the best possible service, quality legal representation and emotional support that could be expected. Have a great day off!

Chinese Proverb

2009-08-31T14:17:00.000-07:00

"Fu bu guo san dai" - wealth does not make it past three generations. Does anyone else feel that the current generation (our collective children) is squandering what our parents fought so hard for us to have? With many exceptions, of course, investing in hard work does not seem to be a priority for the under-forty set.

Securing Legal Fees

2009-08-24T14:36:00.000-07:00

There is a way, when, as now the real estate market seems to be on the rise, that clients can secure their lawyers' legal fees for services rendered in family law matters (including divorce, custody, visitation, support, enforcement, collaborative law and mediation). It is called "Family Law Attorney Real Property Liens" ("FLARPLs"), which provide an alternative means for payment of fees and costs in ". . . a proceeding for dissolution of marriage, for nullity of marriage, or for legal separation of the parties." (Fam. Code §2033.) These liens originated under common law, but are now codified in Family Code sections 2033 & 2034, where the modern guidelines are set forth. These FLARPLs prevent the use of a bankruptcy petition to discharge the attorney's claim for fees and costs. Section 522 of the Bankruptcy Code permits the debtor to avoid certain liens on exempt property, such as the former marital residence. The reason for the statute is to protect the debtor’s exemptions in order to facilitate his "fresh start." Although this is indeed important, this concept only applies to "judicial liens." It is unclear whether a FLARPL is a statutory lien or a judicial lien. However, the statutory text of the Family Code and cases which are similar suggest that a FLARPL is a statutory lien that cannot be avoided, if properly perfected.

Court Closures

2009-08-20T17:30:00.000-07:00

Every third Wednesday of the month, the courts in southern California are, for the most part closed now, indefinitely. While this is an inconvenience and loss of income for many, many people, I believe the worst victims of this budget fiasco are the family law litigants and the probate litigants, whose lives all hang in balance and in limbo for months and years as it is, and now the delays are anticipated to be months and years longer. With those delays are the huge, sometimes unsurmountable costs of legal fees, unnecessary support payments, decrease in values of property, inability to purchase property or obtain further education or pursue careers, and much, much more. I often decry where the priorities are for my fellow Californians. My usual cause celebre is the lack of priority of education expenses. I now add the burden of the court systems. Will we all have to take to private judging to effectuate our clients' needs?

Life Insurance Plans

2009-08-17T13:43:00.000-07:00

Even though divorce takes such a significant financial and emotional toll on the parties, their children and other family members and friends, it is often necessary for the parties to look beyond their immediate legal and financial needs in order to recognize the future needs of one or both parties, as well as any children of the marriage, in the event of an untimely death of one of the parents. In fact, even in a non-marital relationship, factors to consider relative to the future financial security of the children of such a union are just as important.
One solution for securing financial stability in the future is through life insurance. Life insurance is one way to secure payment of spousal support beyond the life of the supporting spouse. Such a policy can be owned and paid for by the supporting spouse or the supported spouse, or a combination of both. It can be court-ordered, or voluntary.

With regard to child support, a custodial parent may get an order from the court that the supporting spouse maintain a life insurance policy covering at least the amount remaining to be paid in child support up to the time that child reaches the age of majority (which in California is 18). If such a policy is not in force at the time of death of the party ordered to pay the premiums, then the intended beneficiary will have a claim against the estate.

If no such order can be had, the custodial parent or even the non-custodial parent might wish to pay for and own such a policy to cover the circumstance where the other parent dies prematurely and either the custodial parent has no ability to maintain the marital lifestyle or the non-custodial parent is suddenly unable to pay for the additional child care costs.
Transferring ownership and/or beneficiaries on an existing policy is an option if purchasing a new policy is financially out of the question. Sometimes payment of life insurance premiums are added as additional child or spousal support which gives a tax break to certain payors. It is important to include provisions in the judgment that the payee spouse receive ongoing proof of payment of the premiums and named beneficiaries.

Some pitfalls of obtaining life insurance include naming minors as beneficiaries (creating the need for the court to establish a guardianship) and/or naming a trust as beneficiary, in which case the insurance proceeds are generally withheld until the conclusion of the probate process (sometimes more than a year or two).

529 Plans

2009-08-17T11:54:00.000-07:00

In the next few days, I will be writing little blogs about various ideas to do with college savings plans. Today, I want to discuss expanding the list of potential beneficiaries. Did you know that, due to recent tax reforms, the pool from which you can choose beneficiaries now includes cousins? That means that if you are a grandparent with multiple grandchildren, you can set up a 529 plan for your first grandchild and if that grandchild chooses to delay higher education, you can transfer the plan to another grandchild.

Back to the Future

2009-08-16T09:57:00.000-07:00

I had a fantastic time last night visiting with some old friends from high school and some friends I have known since fourth grade. Although we had a 40th year reunion two years ago, we all got together again at the home of a classmate's parents in Beverly Hills to renew old bonds and talk about the present and the future and learn more in depth what has kept our collective hearts beating these past 40+ years. Deaths, births, grandchildren, jobs won and lost, heartaches, happiness, sharing of favorite memories, sharing of great wine and great ideas. Introducing spouses brave enough to attend their spouse's reunion. Spouses forming reunions of their own and finding people they knew in their pre-marriage lives. No one caring what anyone is wearing, whether a few more pounds and a few less hairs adorn our souls, people who never would have a conversation with you willingly in high school genuinely interested in what you are doing, how you are feeling and eager to share the most intimate details of their lives with you. I hope sincerely that, although the group was much smaller than our 40th, we keep getting together to reenforce what is really important in life and make us smile and enjoy the present for the blessings that we all have received.

Spousal support may not be reduced just because the supported spouse starts to receive retirement benefits.

2009-08-11T15:17:00.000-07:00

In the recent case of In re Marriage of Dietz, 2009 Cal. App. LEXIS 1282, the court of appeal held that that the distribution to wife of her share of husband’s retirement plans and her eligibility to begin drawing from them does not constitute a change of circumstances for support modification purposes. Please be aware of this when you consider options for settlement of spousal support during your divorce.

As Courts Close, More than Ever, it is Necessary to Find Alternative Methods of Case Resolution

2009-08-04T10:01:00.000-07:00

2009-08-03T15:43:00.000-07:00

Well, after many phone calls, and calling in favors from friends in high places, we finally got someone from Animal Control to come by to see what to do about the doe that had been living in our backyard for the past 7 days and she was great. She helped Avery cut our chain link fence so she could pass through and threw grass all over the area so she would be interested in moving out of our yard. All day long on Saturday, she just stared at us from a corner. Finally, some time during the night she went on to find her family. Meanwhile, all my beautiful flowers have been eaten and the trees and grass on the hillside have been nicely trimmed. She was about 6 months old!

Oh Deer!

2009-08-01T15:39:00.000-07:00

We have been entertaining a doe in our back yard the past week. Animal control has tried & failed to get it to leave us. All my beautiful plants have been eaten and she is enjoying our pool more than we are. Poor thing is so scared!

Welcome to Cooper-Gordon LLP Blog

2009-07-30T20:33:00.000-07:00

Welcome to the First Posting of the CG LLP Blog. If you have any questions related to our practice of Family Law, Probate and/or Trusts and Estates creation, administration and litigation, please type your message in the comment box.

Los Angeles Family Law Child Custody Support Divorce Probate Estate Planning Lawyers

Can the 2012 Jordanian Peace Talks Succeed Where Others Have Failed?

Ethical Eggs, Dairy and Meat

How Would Huguette Clark's Probate Play Out in a California Court? The details of how Huguette's billions were spent by her and for her make for the most astonishing story.

The 1 percent of the 1 percent: How Huguette Clark's millions were spent By Bill DedmanInvestigative Reporter, msnbc.com

If the McCourt's Can Settle Their Divorce Issues, So Can You!

relaxing After a Hard Day

Managing Money Post-Separation: An Analysis of Marriage of Margulis

summer Book List

Point well taken. Can I improve the silence?

Women's right to sue as a class limited. Is that the good news or the bad?

Exciting Changes Happening With Association of Certified Family Law Specialists

Flurry of Estate Planning Activity

Much Going On For Family Law Specialists

Getting in Shape for Work

Happy and Healthy New Year

Valuable Estate Planning and Tax Tips from our Friends at the Jewish Community Foundation

Who Has Standing to File a Petition for Nullity of Marriage?

Not So Happy Wanderer

Saddened by Mindless Killings of Medical Teamin Afghanistan

Great Week for Acknowledging Freedom We Take For Granted

Wiping Hard Drives Clean

A Strange Time for Life and Death

Why Every Adult Needs a Complete Estate Plan

Wit and Wisdom from a Wise Financial Planner

Finding Time for Life and Sharing Life with a Companion Animal

Spring 2010 Newsletter Hot Off the Press

AVERY COOPER A HUGE SUCCESS IN INDIAN WELLS SEMINAR

Web Traffic for Cooper-Gordon Firm Doing Well

Where Oh Where Has the Estate Tax Gone?

Time to Review and Fund the Assets in Your Estate

Getting Along During the Holidays

Noteworthy Changes in our tax laws for 2009

Too many changes!

Congratulations to Avery Cooper and Frieda Gordon

October is Adopt a Pet Month!

Plea by Wayne Pacelle, President & CEO of HSUS

Weekend in San Diego

Labor Day

Chinese Proverb

Securing Legal Fees

Court Closures

Life Insurance Plans

529 Plans

Back to the Future

Spousal support may not be reduced just because the supported spouse starts to receive retirement benefits.

As Courts Close, More than Ever, it is Necessary to Find Alternative Methods of Case Resolution

Oh Deer!

Welcome to Cooper-Gordon LLP Blog

The 1 percent of the 1 percent: How Huguette Clark's millions were spent By Bill Dedman
Investigative Reporter, msnbc.com