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New Illinois Directed Trusts Statute

Typically, a Trustee is an individual or entity who is responsible for all of the duties necessary to administer a trust, but, in this new statute, the Illinois legislature has created new roles to assist the Trustee in the performance of his or its duties.

On May 16, a bill entitled “Directed Trusts” passed both houses of the Illinois legislature. According to the synopsis of the bill, the amendment to the Illinois Trusts and Trustees Act “adds provisions establishing a directed trust as a type of trust and establishes responsibilities among” different directing parties.  The bill was sent to the governor for signature on June 14.  If the governor does not veto the bill, or sign it before then, the bill will become law on August 13.

The bill creates three types of directing parties: (1) an investment trust advisor, (2) a distribution trust advisor, and (3) a trust protector.

Transfer Planning with Interests in Private Equity and Hedge Funds

Transfer Planning with Interests in Private Equity and Hedge Funds

July 16, 2012

Authored by: Stacie J. Rottenstreich and Karin Barkhorn

Much has been written about the potentially unique opportunities available to people to make gifts before year-end (for example, see our prior posts here and here). If Congress does not act, the increased $5,120,000 gift tax exemption will decrease dramatically. However, if you are the owner of an interest in a private equity or hedge fund, planning to gift part or all your interest in such fund requires particular care and attention.

Private equity funds are usually created as limited partnerships with two classes of owners. The limited partners are the investors in the fund, while the general partner is typically a business entity created as a limited liability company (“LLC”). A carried interest is normally held in and allocated to the LLC/general partner. A carried interest is the right to receive some of the profits of the fund. The initial value of a carried interest is

New Article Published by Our Lawyers

Two of our Atlanta attorneys, partner Kim Civins and associate Tiffany McKenzie, recently published an article in the Summer 2012 issue of Insights Magazine entitled “Estate Planning With Conservation Easements”.  Check it out here!

Mission: Possible — Saving Estate Taxes on Life Insurance

Since Tom is back in the news this week, and because I finally watched Ghost Protocol this weekend, I thought I’d re-post this November 2011 blog on Tom Cruise’s possible use of life insurance in his estate planning.  Keep in mind, based on any divorce settlement agreement he reaches with Katie Holmes, Tom’s need to maintain life insurance may change.

When I first saw this video of Tom Cruise performing his own stunts on the outside the Burj Khalifa in Dubai (the tallest building in the world), a mile and a half above the earth, for the movie Mission: Impossible — Ghost Protocol (aka Mission: Impossible IV),  my first thought was, “Wow, how much life insurance do you think he has?”  My next thought was “Think of the estate taxes his estate will have to pay on those life insurance proceeds if the life insurance isn’t held in a proper

Highest Court in the State of Maryland Recognizes Valid Out-Of-State Marriages

In a recent decision, Port v. Cowan, 2012 Md. Lexis 283 (May 18, 2012), the Maryland Court of Appeals held that Maryland courts will recognize a valid same-sex marriage entered into in another state for purposes of granting a divorce to such same-sex spouses who otherwise meet the criteria for divorce under the laws of Maryland. In support of its unanimous decision, the court cited the the general rule that Maryland courts will honor marriages entered into in another state, as long as the marriage was valid in the state where it was performed. Further, that court determined that recognition of a validly-performed out-of-state same-sex marriage is not repugnant to, but is actually consistent with Maryland public policy, in light of several currently enacted Maryland laws that protect and support same-sex couples.

As discussed in a recent article on, Port v. Cowan highlights the challenge faced by

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