Attorney Dori J. Wiggen has been appointed Vice Chair of the North Carolina Bar Association’s Elder & Special Needs Law Section for 2014-2015. In addition, Ms. Wiggen is scheduled to serve as Elder and Special Needs Law Section Chair in 2015-16. She served as the Section’s CLE Chair for 2013-14.
The Elder & Special Needs Law Section focuses on issues related to the elderly population of North Carolina i.e., Medicare and Medicaid. The section, currently with 550 members, sponsors CLE programs and services; provides members with a substantive newsletter, Gray Matters; and helps mold the association's legislative agenda for presentation to the N.C. General Assembly. Ms. Wiggen’s practice concentrates on elder law, special needs, and trusts and estates. She counsels clients on issues including special needs planning, guardianships, Medicaid, veterans benefits, wills, trusts, estate administration, probate, powers of attorney, healthcare powers of attorney, and living wills.
Amy H. Kincaid, a member of the Schell Bray Trusts and Estates Practice Group, was a panelist at the NC Bar Association’s 35th Annual Estate Planning & Fiduciary Law Program in Kiawah Island, SC on July 19, 2014. Ms. Kincaid’s topic was “Practical Portability Panel – Ins and Outs and Advising When a Client Dies”.
Amy Kincaid regularly counsels clients on a wide variety of estate planning and tax issues. Ms. Kincaid is a Board Certified Specialist in Estate Planning and Probate Law by the North Carolina State Bar Board of Legal Specialization. She received her J.D. degree with high honors and Order of the Coif from the University of North Carolina at Chapel Hill School of Law in 1998.
By Amy Kincaid
What is the estate and gift tax exemption?
The estate tax is a tax on the transfer of your property at death. The gift tax is a tax on the transfer of property during your lifetime. The estate and gift tax exemption is the amount you can transfer to individuals other than your spouse free of estate and gift taxes during your lifetime or at your death (Generally speaking, you can transfer as much as you want to your spouse without incurring estate and gift taxes). The estate and gift tax exemption was $1 million in 2002-2003, $1.5 million in 2004-2005, $2 million in 2006-2008, $3.5 million in 2009,$5 million or more in 2010 and 2011 (note: there were special rules for decedents dying in 2010); $5.12 million in 2012, $5.25 million in 2013 and $5.34 million in 2014.
What is portability?
Portability is the name for a concept that allows the surviving spouse of a decedent to inherit his or her estate and gift tax exemption. It means that a couple can pass, in 2014, up to $10.68 million in assets to their intended beneficiaries without having to set up a trust.
Is there a cost to elect portability?
Yes. A Federal estate tax return (Form 706) must be filed at the death of the first spouse to die, and the IRS has the ability to review that return until the inherited estate and gift tax exemption is used by the surviving spouse. It can be costly and time consuming to file Form 706.
The new NC LLC Act, Chapter 57D of the North Carolina General Statutes (the “New Act”), went into effect on January 1, 2014 and replaces Chapter 57C of the North Carolina General Statutes (the “Old Act”). The New Act draws largely from the premise that the agreement among the owners of a limited liability company (an “LLC”) should be paramount in governing their relationship. It is, therefore, now more important than ever that an LLC have an operating agreement. Except for certain limited provisions listed in Section 57D-2-30 of the New Act (many of which deal with administrative matters within the purview of the Secretary of State), the owners of an LLC are free to override the default provisions of the Act and dictate the terms of their business relationship through their operating agreement. Considering this expanded flexibility and the revised default provisions of the New Act, below are eight reasons why owners of an LLC should consider adopting a written operating agreement (if they don’t already have one) or reviewing and updating their existing operating agreement. This list is by no means an exhaustive list of the changes in the New LLC Act, but merely highlights some considerations for members of an LLC that is formed under North Carolina law. The following bulleted items are discussed in more detail in the sections below:
· Possible problems under the New Act with oral or implied agreements among members.
· Definitional changes in the New Act that may impact existing operating agreements.
· Inconsistencies between an LLC’s Articles of Organization and its operating agreement.
· Changes in the New Act affecting professional LLCs and L3Cs.
· Provisions in the New Act that permit the direct issuance of economic interests (interests with less than full membership rights) and that address valuation of non-cash capital contributions.
· Expanded flexibility under the New Act for structuring management rights and delegating management authority.
· Changes in the New Act that may affect fiduciary duties, indemnification, and exculpation of managers.
· Revised provisions in the New Act addressing a member’s right to information.
Amy H. Kincaid, a member of the Schell Bray Trusts and Estates Practice Group, and a partner in the firm, spoke on May 9, 2014 at the NC Bar Association’s 2014 Advanced Estate Planning Survey Course, which was presented live and via webcast. Ms. Kincaid’s topic was “Portability: Simplification or Complication”.
Amy Kincaid regularly counsels clients on a wide variety of estate planning, estate administration, and charitable giving issues. Ms. Kincaid is a Board Certified Specialist in Estate Planning and Probate Law by the North Carolina State Bar Board of Legal Specialization. She is President of the Greensboro Estate Planning Council, Treasurer of the Estate Planning and Fiduciary Law Section of the North Carolina Bar Association and a member of the North Carolina Association of Certified Public Accountants. She received her B.S. degree from Clemson University and her J.D. degree, with high honors, from the University of North Carolina School of Law.
The North Carolina Bar Association will recognize Garland G. Graham, a partner with Schell Bray, as a recipient of the 2014 Citizen Lawyer Award. The award presentation will take place at the NCBA’s annual meeting, scheduled for June in Wilmington.
The NCBA established the Citizen Lawyer Award in 2007 to recognize attorneys who provide outstanding public service for their communities. As a recipient, Graham joins a select group of distinguished leaders in the North Carolina legal community. Recipients have included elected and appointed government officials, coaches, mentors, and voluntary leaders of non-profit, civic and community organizations.
Ms. Graham’s community activities include her founding in 2006 of the Red Dog Farm Animal Rescue Network, a North Carolina nonprofit rescue network that is dedicated to the rehabilitation, fostering and adoption of abused and neglected animals of all sizes, including farm animals. The organization is a 501(c)(3) public charity and has taken in over 1,700 animals to date.
Schell Bray is pleased to announce the addition of William B. Aycock II as an associate in the firm’s Chapel Hill office. He will concentrate his practice in the area of commercial real estate.
Mr. Aycock received a B.A. degree from the University of North Carolina at Chapel Hill and his J.D. degree from the Elon University School of Law, where he served as Editor in Chief of the Elon Law Review.
We are proud to announce that eight of our members were recently selected for inclusion in North Carolina Super Lawyers 2014. Attorneys receiving this noteworthy distinction are:
Michael R. Abel– Business/Corporate Law
Holly H. Alderman– Real Estate Law
Doris R. Bray– Business/Corporate Law
Barbara R. Christy– Real Estate Law
Michael H. Godwin– Estate Planning and Probate
Jennifer L.J. Koenig– Estate Planning and Probate
Paul H. Livingston, Jr.– Estate Planning and Probate Law
Thomas C. Watkins– Business/Corporate Law
Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high-degree of peer recognition and professional achievement. The selection process is multi-phased and includes independent research, peer nominations and peer evaluations.
We are proud to announce that Dori J. Wiggen was recently selected as a Rising Star in North Carolina Super Lawyers 2014.
While up to five percent of the lawyers in a state are named to Super Lawyers, no more than 2.5 percent are named to Rising Stars. Recognition as a Rising Star is open to candidates 40 years old or younger or who have been practicing for ten years or less.
We are pleased to announce that Edward T. Chaney has joined Schell Bray and will concentrate his practice in the area of tax-exempt organizations. Mr. Chaney, who previously counseled tax-exempt organizations from the Washington, D.C. office of one of the largest law firms in the United States, will be resident in Schell Bray's Chapel Hill office. He will focus on advising tax-exempt organizations on a broad range of tax and corporate matters, including organization formation, structure and governance, exemption applications, ongoing tax and regulatory compliance, unrelated business income taxation, charitable giving, investment management of charitable assets (including endowment funds and program-related investments), and private foundation and public charity grant making.
- Jonathan L. Jenkins Named North Carolina Super Lawyers Rising Star
- Schell Bray Attorneys Recognized by North Carolina Super Lawyers 2015
- Edward T. Chaney speaks at 32nd Annual Nonprofit Organizations Institute
- Jonathan L. Jenkins speaks at GTCC 2015 Small Business Summit
- Garland G. Graham working with Elon University School of Law students
- Holly Alderman named to Business North Carolina’s Legal Elite Hall of Fame
- Eight Schell Bray Attorneys Recognized as Members of North Carolina’s “Legal Elite”
- Stacey A. Brady speaks on New Limited Liability Company Act at NC Bar Association Program
- Schell Bray Attorney Ed Chaney interviewed on WCOM 103.5 FM’s Focus on Business
- Dori J. Wiggen speaks at UNC Chapel Hill School of Nursing