This week I am attending the LDS Philanthropies National Planned Giving Council's annual seminar. We have heard quite a bit about value based planning and unintended consequences. The idea, as I understand it anyway, is to plan our estates in ways that incorporate our true values into the plan and the unintended consequences if we do not. If we believe in the importance of self reliance, why would we want to have an estate plan that creates a disincentive for our heirs to work? If we believe in helping the poor and the needy, does our plan reflect this value?

One of the challenges each of us must overcome in estate planning or business succession planning is the problem of time. The problem with time is there is only so much of it. There is inevitability with time that cannot be escaped. Life will end. Our time leading a business will conclude. Yet, in our daily walk it can feel as if that day will definitely not be today or even tomorrow. Therefore, we put off to another day planning for that inevitability; betting that we will have more time.

In planning for the sale of your business, there are generally several options that exist for a business owner: a family member, a key employee, another owner, a third-party, or liquidation of assets. Each of these potential buyers comes with its own set of issues. In negotiating the sale to a third party, the business owner needs to be aware of these common deal killers that can ruin a potential sale.

“Good habits formed at youth make all the difference. “ - AristotleHave you seen the United States Golf Association’s recent advertising campaign to speed up play? The ads depict various famous golfers including Arnold Palmer and Tiger Woods in situations where slow play is being admonished by someone exclaiming: “While we’re young!”

Often there is confusion as to just what a Will or a Living Trust does. In today’s post I thought it would be helpful to review briefly the differences between these two planning documents.

In transferring the family business to the next generation there is no substitute for good communication. The lack of communication will derail even the best plans.

I will preface this post with the admission that I have never seen an episode of The Sopranos. Mr. Gandolfini may have been a great actor, but I was generally unaware. What I have seen is a tidal wave of articles since his death dissecting his estate planning and the alleged “mistakes” that were made. I had determined not to join the chorus as many of the alleged “mistakes” are based on presumptions which may or may not be accurate. I also thought; how many people reading this blog are likely to have estates purported to be worth nearly $100 million or anywhere near that amount. Do most of us really benefit from knowing about these alleged “mistakes.” But as I read another article recently it occurred to me there is actually something we can all learn from this untimely death and the sea of publicity surrounding his plan – the benefit of keeping things private.

Last year in this Blog I wrote about the efforts of Sen. Max Baucus (D-Mont.) to limit the ability of non-spouse beneficiaries of IRAs to stretch out withdrawals over their lifetime. Presently a non-spouse beneficiary can enjoy years, if not decades, of tax deferred or tax free growth on inherited IRAs (traditional or Roth). Last week, the Senate took up this cause again in relation to its efforts to fund the extension of low interest rates on student loans.

Earlier this week I was listening to a story on Utah Public Radio about the bipartisan Death Tax Repeal Act of 2013 that was introduced into both the House and Senate in June to repeal the federal estate tax, which is sometimes referred to as the death tax. This legislation comes in follow-up to the American Taxpayer Relief Act of 2012 that made permanent the individual estate tax exemption at $5 million (indexed for inflation, it is currently $5.25M per person). At the same time, President Obama’s 2014 Budget proposes reducing the individual exemption to $3.5 million.

I recently started reading again one of my favorite books, Zen and the Art of Motorcycle Maintenance: An Inquiry Into Values by Robert M. Pirsig. One of my favorite lines in the book is found near the beginning: “We want to make good time, but for us now this is measured with the emphasis on ‘good’ rather than ‘time’ and when you make that shift in emphasis the whole approach changes.”

The recent Idaho Supreme Court case of Garrett v. Garrett has provided a reminder of the limitations of planning for the post-death transfer of real property using deeds.

As I am writing this post, the Heat and the Spurs have just finished their hard fought seven game battle in the 2013 NBA Finals. It appeared in game six that it was the Spurs championship for the taking, but in the end they just didn't have enough to hold off the amazingly talented Heat. While I must confess that I am not a big fan of the Heat, there is no doubt they have been able to assemble a great team.

It is U.S. Open week. The U.S. Open is probably my favorite tournament in golf; with the possible exception of my hometown Phoenix Open. As I was watching the tournament yesterday I was reminded of one of the most fundamental rules of golf – Rule 13. Rule 13-1 says: “The ball must be played as it lies, except as otherwise provided in the Rules.” With few exceptions, as a golfer you must play your ball as it lies. You generally can’t move your ball to a better location or take a mulligan (a do-over).

Earlier this week the United States Supreme Court issued its opinion in the case of Hillman v. Maretta. The Hillman case involved the resolution of an apparent conflict between a Federal law and a Virginia law. While the legal question was one of federal pre-emption the result is instructive of the importance of regularly reviewing and updating beneficiary designations.

I was reading an article in the New York Times the other day about Roman Blum who died last year in New York at the age of 97. Mr. Blum, a Holocaust survivor who became a very successful businessman, had an estate valued at approximately $40 million. So far, after a year of investigation the state has been unable to locate either a will or any living relatives. On an estate of that size, federal estate taxes would likely be in the neighborhood of $12 million. There are certainly other significant expenses that are occurring as New York administers his estate. According to New York law, if after three years no Will or living family is located, whatever remains of Mr. Blum’s estate will ultimately pass to the State of New York. New York has received $12 billion in unclaimed assets from other estates since 1943.