International “Boutique Firm of the Year” Finalist and “Advisor You Need To Know”

July 24, 2013 - Press Releases

McManus & Associates Honored as “Boutique Firm of the Year” Finalist for STEP Private Client Awards

John O. McManus also named “Advisor You Need To Know” in The New York Enterprise Report (NYER) Accountant & Attorney Awards

NEW YORK, NY – July 24, 2013 – McManus & Associates is the only American law firm that has been named a finalist for the Society of Trust and Estate Practitioners (STEP) Private Client Awards 2013/2014 in the “Boutique Firm of the Year” category, the firm announced today. STEP is an invitation-only professional association for worldwide leading practitioners dealing with family inheritance and succession planning. It has 18,500 members across 80 jurisdictions from a broad range of professional backgrounds.

The STEP Private Client Awards “highlight excellence among private client solicitors/attorneys, accountants, barristers, bankers, trust managers and financial advisors.” The successful criteria for finalists includes:

  • Demonstrate excellence over the past year, taking into account significant obstacles that have been overcome.
  • Demonstrate consistent quality of work over the past year.
  • Demonstrate excellent client service building on-going relationships aligned with the interests of clients in a transparent and cost effective manner, and where appropriate, bespoke.
  • Demonstrate excellence in leadership, including a clear vision for the future.
  • Demonstrate excellence in technical skills and a qualified team with support for on-going continual professional development and education.
  • Where applicable, demonstrate innovation and involvement in interesting, challenging or new areas of practice.
  • Demonstrate conflict management by differentiating itself from its competitors and exploiting opportunities.
  • Demonstrate a broader contribution to the profession – contribution to wider social responsibility, including support for good causes and maintaining high standards of staff treatment.
  • Demonstrate staff retention and explanation for its achievement and maintenance.

The Awards judges have assessed entries and shortlisted up to five finalists worldwide. The Awards ceremony will take place on September 18, 2013 in London.

John O. McManus, founding principal of McManus & Associates, was also recently chosen for The New York Enterprise Report’s (NYER) “Accountant & Attorney Awards: The Advisors You Need To Know,” presented by Citibank. This is the fourth year that the newly revamped program has recognized top business advisors in the New York Tri-State Area. According to the NYER, “accountants and attorneys are consistently considered among the most impactful advisors for business owners. This program celebrates the accountants and attorneys who have made an outstanding impact in helping their clients succeed.”

The advisors are highlighted in a special editorial section within the July/August 2013 issue of The New York Enterprise Report magazine, as well as on nyreport.com. The top accountants and attorneys were announced at a networking reception on June 19, 2013 at the Citi Executive Conference Center.

To see additional awards that McManus & Associates has been grateful to receive, visit the firm’s Honors & Recognitions page: https://mcmanuslegal.com/about-us/honors-and-recognitions/.

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About McManus & Associates

McManus & Associates, a trusts and estates law firm, was formed in 1991 by John O. McManus to provide the highest quality experience of the largest firms coupled with the intimacy and efficiency of a specialized boutique firm. Over 20 years later, McManus & Associates continues to earn its reputation for integrity, intellectual ability, efficiency, and enduring relationships through its signature 10-Step Wealth and Family Values Protection Process™.

For more information contact:

Lauren DuBois

(917) 573-2485

communications@mcmanuslegal.com

McManus & Associates Named Finalist for STEP Private Client Awards

July 3, 2013 - Firm News

Boutique Firm of the Year

We’re excited to share that McManus & Associates has been named a finalist in the category “Boutique Firm of the Year” (sponsored by Citibank N.A.) for the STEP Private Client Awards 2013/2014. STEP, the Society of Trust and Estate Practitioners, is the leading worldwide professional association for practitioners dealing with family inheritance and succession planning.

The STEP Private Client Awards highlight excellence among private client solicitors/attorneys, accountants, barristers, bankers, trust managers and financial advisors. So far, the Awards judges have assessed entries and shortlisted up to five nominees per category. To see the full list of categories and finalists, click here.

The Awards ceremony will take place on September, 18 2013 in London. Wish us luck!

Conference Call: Top 10 Challenges to Estate Plans

June 28, 2013 - Conference Call

McManus & Associates today hosted the June installment of its Educational Focus Series. Over the course of the firm’s 25 years in the field of Estate Planning, we’ve seen all manner of challenges to estate plans. From will contests to litigation, we are always aware of areas where even the slightest degree of risk might reside. Constantly working to protect against this, we are in a perpetual state of research and development to create the most comprehensive, state of the art plans that protect against even the most remote possible risks.

During this 30 minute recording, McManus & Associates Founding Principal John O. McManus reviews some of the areas of potential risk, discussing what we can learn from them. He also highlights effective strategies that the firm has created and employed to minimize risk and fortify your clients’ plans.

LISTEN HERE: “Top 10 Challenges to Estate Plans”

Top 10 Challenges to Estate Plans
  1. Will manipulated by third party and abuse of durable power of attorney. Undue influence by family members resulting in last minute changes to a will.
  2. Marshaling and valuing for tax purposes, international assets.
  3. Where has Generation Skipping Tax Exemption been utilized? You may be unaware of the significance of automatic allocation rates.
  4. Distributions to charities and notifying the attorney general/government agencies.
  5. Fiduciary’s responsibility to preserve and maintain the estate. (Stock fall in value, sale of home, house broken into, and unclaimed property.
  6. Significant gifts made during life that affect intended outcome of the estate plan.
  7. Failure to use a firm familiar with the sophistication of the planning documents to administer the estate. Failure to correctly interpret the documents.
  8. Personal property disputes after death of a loved one. Fighting in families over whether to sell or keep items to memorialize loved ones. Beneficiaries challenge distributions to surviving spouse from trust.
  9. Failure to title assets correctly. Joint accounts versus convenience accounts. Revocable Living Trusts not properly funded result in probate issues.
  10. Are there sufficient liquid assets available to continue to operate family business, preserve the family retreat and pay estate taxes?

We would be happy to answer your questions. Give us a call at 908.898.0100.

Fox Business: McManus shares advice on how to ensure a trust meets personal, financial needs

June 17, 2013 - Media Clips

Fox Business logo

 

Top-rated Attorney John O. McManus recently spoke with Bankrate Reporter Judy Martel about how to ensure a trust is set up to meet your personal and financial needs. Published today and syndicated by Fox Business, Martel’s piece, “An Irrevocable Trust That Evolves with You,” covers the keys to choosing a trust that “meets your specific needs while building in the maximum amount of flexibility allowed so that, as your needs change and evolve, you retain some power over the trust.”

In the article, Martel shares counsel from McManus:

One of the first important considerations when setting up a trust is its location, says John McManus, founder of McManus & Associates in New Providence, N.J. Some states offer better creditor protection, allow for a trust to exist for a longer period of years before becoming taxable or do not impose state income tax on trust assets. A few states, he says — notably Alaska, Delaware, South Dakota and Nevada — provide additional power to the trust creator while still protecting assets from creditors and maintaining the trust’s tax-beneficial status. Although trusts can be set up in those states regardless of where you live, it is typically more expensive.

She also draws on knowledge shared by McManus, the founding principal of McManus & Associates, to help readers understand the structure of a trust:

At the top of the triangle is the trustee, the person who has legal title to the assets in the trust and the one responsible for managing the trust, making discretionary decisions and carrying out the terms of the trust agreement. The creator can be the trustee, but generally that’s not a good idea in most states because, depending on how the trust is written, the state laws and how much discretionary power the creator has, the trust can lose its tax-beneficial status or be subject to creditors, McManus says.

Beneficiaries, the second point of the triangle, are those who will receive the beneficial interest in the trust. They can be amended, added or dropped if the creator of the trust retains the right of appointment, McManus says. “Let’s say I have two layers of beneficiaries in my trust — first to my wife and sister and then to my children and my sister’s children,” McManus says. “After I create the trust, I want to cut out one of the beneficiaries, or one of them needs more money. I have the right to choose who will receive money and how much,” he says. Even better, he adds, “I don’t have to decide that right away. That allows people to put a lot of assets in that trust when they otherwise might not because who knows how my sister’s children will turn out or how my children will turn out?”

What standards help ensure that the beneficiary’s needs are met within reason and as defined by the trust agreement?

The amount of distribution is also up to the creator of the trust. It can be controlled by the use of ascertainable standards, which restrict the trustee to distributions for the benefit of health, education, maintenance and support, says McManus…They also protect the trust from being taxed if a child beneficiary is also named as trustee, McManus says.

To learn more about how to draft an irrevocable trust properly to save in estate taxes and give you “the comfort of knowing you’ve ensured a financial future for your beneficiaries,” read the whole story here.

Flickr/aresauburn™

Flickr/aresauburn™

McManus & Associates’ Advice on Irrevocable Trusts Featured by The Trust Advisor

June 7, 2013 - Media Clips

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The Trust Advisor, dubbed as “America’s Leading Wealth Management e-Newsletter,” today published an article based on McManus & Associates’ latest client conference call in our educational series. The piece, titled “The Trusts Are Signed, Now It’s Time To Keep Them Running,” opens by pointing out that the fiscal cliff pushed billions of dollars into irrevocable trusts.

Author of the story Scott Martin observes that “most of the assets have already flown, leaving many advisors who rode the trust wave to ask what’s next.” Martin goes on to cite advice from top-AV rated Attorney and Founding Principal of McManus & Associates John O. McManus:

This is actually a big opportunity for those who can switch gears from helping people create trusts to the heavy lifting of keeping those vehicles properly, says top attorney John O. McManus.

He still preaches the importance of those families who have not yet transferred their estates into an irrevocable trust – as he notes, the assets should continue to appreciate – but those who already have are often at a loss.

“I always explain to my clients that the creation of a trust shouldn’t be viewed as a box to check,” he says. “Rather than setting up the trust and moving on, new planning ideas can be continually implemented that utilize the trust as a leading instrument to accomplish one’s financial mission.”

Check out the full write-up to see McManus’ checklist for managing an existing irrevocable trust.

Conference Call: Maintaining and Operating Irrevocable Trusts

May 29, 2013 - Conference Call

With the flurry of trusts created over the past two years that peaked as we approached the “fiscal cliff,” guidance on how to properly maintain and operate these wealth transfer vehicles is useful. Now that they are in motion, who is at the helm?

During this 30-minute call, McManus & Associates reviews strategies to ensure that your trust operates properly as it advances your estate planning and wealth transfer goals. John O. McManus also discusses the special provisions for life insurance trusts, payment of taxes on income earned by trust assets and the new planning ideas utilizing the trust as a leading instrument to accomplish the mission.

LISTEN HERE: “Conference Call – Maintaining and Operating Irrevocable Trusts”.

  1. Are all trust accounts, real property owned by trust and life insurance policies held in trust correctly titled?
  2. How does the tax basis of an asset and its projected future growth affect future planning? What future swaps of assets might you consider?
  3. How do we avoid common filing and reporting errors, especially payment of income taxes? If it’s a grantor trust, do we file an income tax return?
  4. Now that the trust is funded what post-funding strategies can be employed to impact the trust to better meet your goals?
  5. If you have not used the full exemption amount, ($5.25MM), should you consider making additional gifts now to further “freeze” the estate.
  6.  If your life insurance has been transferred to trust, are you properly maintaining the trust to address annual payments?
  7. When and why should you transfer a trust to an asset-protected state? Are there any actions pending against an individual who is a beneficiary of the trust or you, the grantor? What states are most favorable?
  8. When should you consider an institutional trustee? What are the pros and cons? When an individual is named as trustee, does he know his responsibilities?
  9. When your trust owns your primary residence, how should you cover expenses, insurance and titling? If you are the occupying tenant, have we formalized a lease agreement?
  10. How should you make distributions when the family business or other corporate entity (LLC, partnership, etc) is owned by a trust? Are two transactions necessary?

Wall Street Journal Cites Tips on Family Meetings from John McManus

May 16, 2013 - Media Clips

On May 11th, an article by Kelly Greene titled “When It’s Time to Huddle” appeared on page B8 in The Wall Street Journal. Greene’s story discusses an important issue that families across America are facing every day: complicated financial and legal planning for elderly relatives. In the piece, Greene relays key tips for tackling this challenge:

• Be inclusive.

• Don’t delay.

• Hire a professional referee.

• Set an agenda in advance.

• Tap long-distance relatives.

Under “Don’t delay,” Greene captures advice from McManus & Associates Founding Principal John O. McManus that “families should hold meetings before any serious health problems develop.” From the article:

John McManus, an estate-planning lawyer in New Providence, N.J., says there is a “gaping hole” in family planning around preparing for parents’ aging. He considers instituting family meetings among his clients’ families, and in his own, one of his top professional and personal priorities, he says.

“Meetings are critical for getting ideas out on the table,” Mr. McManus says. “There is no one correct answer on how to deal with Mom or Dad’s health issue,” so it’s helpful to have time to think through the choices as a family.

For more tips, check out the full story. And for guidance on how to handle family meetings addressing the health of older loved ones, give McManus & Associates a call at (908) 898-0100.

“Top 10 Lessons I Learned from Mom” – McManus guest article for Fox News

May 13, 2013 - Media Clips

 

In celebration of Mother’s Day, Fox News published an op-ed written by McManus & Associates Founding Principal John O. McManus. The piece, “A compass for the road of life: Top 10 lessons I learned from Mom,” shares reminiscences and lessons he learned from his mother. Give it a read below:

A compass for the road of life: Top 10 lessons I learned from Mom

By John O. McManus

Published May 10, 2013 | FoxNews.com

Mom. Just saying the word conjures a kaleidoscope of feelings, thoughts and memories. This woman did far more than change your diapers – she put years of time and effort to prepare you for a life marked by happiness, success and, when necessary, consolation. These ladies are weaving the fabric of society, and on May 12th, our nation comes together to celebrate the most important job that exists — being a mother.

My mother taught me more life lessons than I can count — and sometimes even put into words. But there are a core set of invaluable takeaways as her child that I strive to pass along to my own children and the hundreds of households I’ve worked with over the past two decades as an estate planning lawyer and family wealth counselor. Here are “The Top 10 Things I’ve Learned from Mom”:

1.      You only have one chance to make a good first impression – be friendly and dress up. Mom was Miss NYC in her youth, and also a performer, particularly a professional singer.  Mom taught us that everyday was a new audition, every relationship an uninitiated audience ready to be entertained.

2.      Compliment people all the time – it makes them feel good and you, too. When we were kids, and even today, Mom always makes a point to compliment others. Whether the waiter at dinner, our teacher, or the person at the front desk of the hotel, they always smiled, but I know that Mom’s joy grew in greater proportion to the compliment given.

3.      As a parent, focus on each child – in the end, you are only as happy as your least happy child. We all needed Mom more than our other siblings at various points in our lives. Until we all were happy mom was not happy, which meant more food for the hungriest, more care for the most ill.

4.      Live a life forging ahead. “There will be time for rest later” Mom would say as we drove from school to basketball then to church. Mom taught us to push through fatigue — in the end endurance is the key to success.

5.      Talk about your family history – a lot. Don’t be afraid to tell the same story twice. No one else is writing books about your family’s tales and triumphs. Mom strove to leave an indelible impression on her children. She showed us why our roots are unique and gave us pride in our family name. Today Mom brags to her grandchildren how great their parents are. In this way, Mom reinforces reasons to admire Mom and Dad, strengthening respect for the family legacy.

6.      Family starts with taking care of each other. My dad is so appreciative of my Mom’s support, care and encouragement that enabled him to have a fulfilling career with the same company for 60 years. My Mom also looked after her mother until she was 95 — whenever we moved, Nana moved too…we were never more than five minutes away. My grandmother was lucky to have my mother and vice-versa; they were best friends.

7.      Regret often stems from failing to take a risk. Pursue your passions, step outside of your comfort zone — many of your limits are self-imposed, and you can transcend them to reach your goals. Mom would say, “If you take a risk and win, it was worthwhile. If you take a risk and lose, you’ve learned a lesson.” The only true failure comes from lack of trying.

8.      Work hard, very hard – but not too hard. Mom grew up with her father’s assiduous work ethic; he built a national business from a single truck. Mom taught us that diligent work was essential, but never before family. While she never begrudged my dad for working late or missing dinner during the week, Mom held weekends, family vacation and children’s special events as absolute necessities.

9.      Sing out loud! Mom had a singing career through her 20s. Whether in the car, or at church singing always brings her much happiness. Mom would say, when it comes to doing what gives you joy, don’t hum…sing out loud! Don’t just sing alone, but among others. Let them see your passion, but also recognize the unique passions of others singing their own song.

10.  Keep the faith. My mother has been a churchgoer her whole life. Whenever the struggles hit, Mom always counted on her faith and the power of prayer. Going to church on Sundays gives her the greatest joy. Speaking with the churchgoers afterwards is equally rich to Mom. Refer back to your belief basics and think positively to create the life that you want.

Moms across the map have lovingly devoted themselves to imparting lessons that provide a compass on the road of life. The legacy of family values you hold close today started generations ago. On Sunday, as you take the time to stop and say thanks to the woman you call “Mom,” recognize not only what she’s taught you, but also that she’s prepared you to add to the legacy.

John O. McManus is a top AV-rated trust and estate planning attorney and founding principal of Tri-State Area-based McManus & Associates.

McManus Interview Inspires New Jersey Newsroom Column: “Who Inherits Dad’s Subscription to Giants’ Football Games?”

May 9, 2013 - Media Clips

New Jersey Newsroom Columnist Warren Boroson (“Boroson on Money”) has a new, interesting piece on how to avoid fighting over family heirlooms and personal property after the death of a loved one. The column hinges on McManus & Associates’ recent conference call on the topic, which you can listen to here. Following the call, Boroson spoke with the firm’s Founding Principal and top AV-rated Attorney John O. McManus to gather more details. The result, “Who Inherits Dad’s Subscription to Giants’ Football Games?” is worth checking out.

Here’s a peek:

Who gets dad’s subscription to New York Giants football games – worth a ton of money? Who gets the little silhouettes someone made of all the family members? Who gets grandma’s expensive jewelry? Who gets Fido and the Chairman Meow and other family pets? What about liquor collections, gun collections, rare books, and other “non-titled property”?

A will may not specify who gets such property, with the result that the heirs may wind up fighting over trivial stuff – and expensive stuff. And the resentment may last the rest of their lives. A little planning, says lawyer John O. McManus of McManus & Associates in New Providence, can prevent a lot of hard feelings and family feuds. “Things, personal effects, closely-held assets and land can cause significant fighting among loved ones and oftentimes attorneys give hardly any attention to such items in the creation of legal documents,” McManus warns.

To read the whole thing, head over to New Jersey Newsroom: http://www.newjerseynewsroom.com/economy/who-inherits-dads-subscription-to-giants-football-games