Common
Trust Funds
7/31/00
It is a fact of life that banks are
increasingly converting their common trust funds (CTFs) and even individual
securities held within a trust portfolio into proprietary mutual funds. Unfortunately, conversion does not generally serve the best interests of
beneficiaries. In fact, Dean Miller at the Office of the Comptroller of the
Currency (OCC) suggests conversion will increasingly be litigated in the
courts as is happening currently via class actions against the First Chicago
and First Union banks. Experience suggests nevertheless that a
beneficiaries’ vigorous protest may convince the bank not to convert or at
least reconvert same into an individual portfolio.
Case
Study
7/12/00
Juan and Maria Hernandez, ages 65 and 60
respectively, are successful produce farmers and own 200 acres of prime land
on the outskirts of their local community. The land is currently being
farmed and produces primarily a variety of fruits and vegetables. Because of
the prime location of the land, Juan and Maria have made the decision to
sell 20 acres of the land in one acre parcels to local developers. Their
desire is to pass on the remaining 180 acres to their two children who are
now running the farming enterprise. Because they inherited the land from
their parents over 30 years ago, their basis in the total 200 acres is only
$20,000. In the current market, however, the land will sell for $50,000 per
acre.
Trusts
and Estates
7/10/00
Welcome to TRUSTS & ESTATES ONLINE,
providing technical information about estate planning, trust fund
administration and investing assets for financial planning and building
wealth.
TRUSTS & ESTATES is the industry's leading source for financial
advisors, trust administrators, wealthy individuals and banks.
Will
Corporate America Abandon Religious Liberty?
6/6/00
An unlikely company may be set up for a
historical battle for the protection of religious liberty. Viacom, (symbol
VIA on the NYSE) the home of soft pornography and MTV, also owns the sole
company (Paramount TV) that is standing up for the right of Dr. Laura
Schlessinger to speak her beliefs about homosexuality.
Tax-Free
Sales of C Corporations
6/1/00
Thousands of small and medium-sized
businesses are operated as "C" Corporations. The "C"
Corporation files IRS Form 1120 and pays tax at a corporate level. If a
"C" Corporation is liquidated, it is possible to pay tax at both
the corporate level and the shareholder level. This cumulative tax can equal
as much as 50% to 60% of the entire value of the business.
Investment
Stewardship
5/31/00
Traditional values and traditional families
are being bombarded with cultural pollution. Investment Stewardship is
designed to keep your investment portfolio from unknowingly capitalizing
today’s cultural deficit. By actively keeping your money out of the hands
of those who profit at the expense of our society, you increase their cost
of capital, and give them a taste of cultural and moral accountability.
Investment Stewardship is designed to address these crucial issues and offer
the investor an opportunity to protect their money from endorsing and
capitalizing the very cultural problems they are fighting against.
Today a new vision is needed to keep the money of principled investors out
of the hands of what can be termed “cultural polluters.” Many agree that
the greatest threat our country faces is the deterioration of our culture.
What we see today is a culture of broken families where children cry
themselves to sleep; a culture without respect for human life; an arena
lacking civil discourse; and a culture focusing on many of our past ills
while alienating our children from traditional history and values.
Investment Stewardship screens over 7,600 mutual fund portfolios. Using a
traffic light with red, yellow and green-light ratings, it identifies which
funds invest their shareholders money in companies promoting or profiting
form 1) Pornography, 2) Abortion, 3) Anti-family Entertainment, and 4)
Companies that actively promote Non-Marriage Lifestyles. You can vote your
conscience with your dollars.
You do not have to compromise your investment performance potential,
however, by choosing not to compromise your values. While many of
America’s most popular funds do not meet our screening criteria, or are
classified as “Red-light “ funds, there are many alternative funds in
equivalent asset classes that have comparable or superior historical rates
of return. This still leaves an investor free to choose among the best
mutual fund managers while having the peace of mind knowing their
investments carry cultural accountability.
