as the guest speakers for the 220th meeting of the Karl Hess Club, to convene
on December 17, 2012.
Frank Ozak and Gwenn Wycoff on "Survival Through Family Unity."
Impending changes in the Estate Tax (aka the "Death Tax") illustrate the value of preserving property for posterity through the use of trusts and similar vehicles. Frank offers the following article, which speaks to this point:
Fascist Tyranny: They're Going To Make It Nearly Impossible to Pass on a Farm or a Business to Your Children
If you have a farm or a small business, would you like to pass it on to your children when you die? Well, unless Congress does something, it is going to become much, much harder to do that starting next year.
Right now, there is a five million-dollar estate tax exemption, and anything above that is taxed at 35%. But on January 1, 2013, the exemption will go down to 1 million dollars and the tax rate will go up to 55%.
A lot of liberals are very excited about this, because they believe that the government will be soaking wealthy people like Warren Buffett and Bill Gates. But the truth is that a lot of farms, ranches and small businesses will be absolutely devastated by this change in the tax law.
There are many farmers and ranchers out there today that do not make much money but are sitting on tracts of land that are worth millions of dollars. According to the American Farm Bureau, approximately 97% of all farms and ranches in the United States would be subject to the estate tax if the exemption was reduced to just a million dollars.
That means that the children of these farmers and ranchers would be faced with a very cruel choice when it is time to inherit these farms and ranches. Either they come up with enough money to pay the government about half of what the farm or ranch is worth, or they sell the farm or ranch that may have been in their family for generations.
Needless to say, most farm and ranch families do not have that kind of cash lying around. Most of them are just barely making it from year to year. So this change in the tax law is going to greatly accelerate the death of the family farm in America. This is also going to devastate many family-owned small businesses.
At their KHC discussion, Ozak and Wycoff will cover: Definitions of legal and trust terms; t rust operation; trustee responsibility; legal references and court cases; trust structuring; private or sovereign person and trust relationships; If we had to do it all over again?; and establishing a business with a trust.
The Trustees of Charles Arthur Enterprises want to make clear, the information given in this lecture, or any other lecture is NOT complete. Because to venture forth in the common law trust realm requires mentoring, there are specific details and protocols not given in either The Art of Passing the Buck Volume I or Volume II, we strongly suggest a consultation before activating a common law trust.
About Frank Ozak and Gwenn Wycoff
To contact Ozak or Wycoff at the Charles Arthur Enterprises, ph: 818-574-6122 or Skype: fcoz2003