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1 College of William & Mary Law School William & Mary Law School Scholarship Repository William & Mary Annual Tax Conference Conferences Events and Lectures Schedule Repository Citation "1962 Schedule" (1962) William & Mary Annual Tax Conference Paper Copyright c 1962 by the authors This article is brought to you by the William & Mary Law School Scholarship Repository

2 ESTATE PLANNING A4 CASE STUD Y PANEL DISCUSSION BY: H BRICE GRAVES Hunton Williams Gay Richmond Virginia Powell and Gibson W GIBSON HARRIS Battle Neal Harris Minor and Williams Richmond Virginia TOY D SAVAGE JR Willcox Cooke Savage and Lawrence Norfolk Virginia MODERATOR: Joseph Curtis Acting Dean MarshallWythe College of William and Mary School of Law COLLEGE OF WILLIAM AND MARY IN VIRGINIA

3 EIGHTH ANNUAL TIDEWATER TAX CONFERENCE ESTATE PLANNING SESSION

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5 Foreword The Eighth Annual Tidewater Tax Conference was held at the College of William and Mary on December The following program was presented: TAX LEGISLATION ANALYSIS OF PRINCIPAL CHANGES Samuel R McClurd Director Legislation and Regulations Division Office of the Chief Counsel for the Internal Revenue Service DECISIONS AND RULINGS 1962 SIGNIFICANT FEATURES Thomas J Middleton Jr Bauknight Prichard McCandlish and Williams Fairfax Virginia AUDIT NEWS NEW DIRECTIONS Dean J Barron Regional Commissioner of Internal Revenue Philadelphia Region VIRGINIA'S CURRENT PAYMENT SYSTEM EXPLANATION AND DISCUSSION C H Morrissett State Tax Commissioner ESTATE PLANNING PANEL Joseph Curtis Acting Dean MarshallWythe School of Law H Brice Graves Hunton Williams Gay Powell and Gibson Richmond Va W Gibson Harris Battle Neal Harris Minor and Williams Richmond Va Toy D Savage Jr Wilcox Cooke Savage and Lawrence Norfolk Va DEPRECIATION REFORM HOW IT IS TO BE APPLIED Stanley J Grande Audit Division National Office Internal Revenue Service As a matter of special interest as reference material to attorneys a record was made of the ESTATE PLANNING PANEL DISCUS SION This record is reproduced in the following pages Also included is an HISTORICAL NOTE describing the development of the Tax Conference at the College of William and Mary with a listing of all who have kindly contributed to its programs and the subject of their discussions This begins on page 31 The panel considers and discusses some of the factors which should be taken into account particularly the tax aspects in the drafting of a plan for testamentary disposition of the properties of a husband and wife whose assets and circumstances may be as indicated on the following page

6 FACTS Husband H in mid 6os; Wife W in late 5os; both in average good health Son S age 32 married to SW having 2 children ages 4 and i S is an architect owning modest home subject to mortgage annual income about $8ooo and with excellent increased earning potential Daughter D age 28 married to DH a doctor with good earning prospects having one child age 3 H's assets owned solely or jointly with W comprise: BUSINESS INTERESTS #x a small but highly successful sole proprietorship manufacturing plant having realty worth $5oooo operating assets worth $75ooo and netting about $25ooo annually H's personal services while important to the business are not essential to its continued success Value inclusive of g o o d w ill $ $ #2 an onehalf partnership interest in a retail merchandising business in which H's role is that of an inactive investor H's present capital account is $30000 Profits average $8ooo annually after deducting $5oo salary for H's active partner Value of H's interest including good w ill 50 o o0o OTHER PROPERTIES #3 residence owned jointly with W with right of survivorship worth $6oooo subject to mortgage with balance outstanding of $isooo amortizable at $2500 per year 4% interest rate has induced H not to accelerate discharge Both H and W are principals on the mortgage note but H has made all payments Value of equity #4 furnishings auto boat other tangible personalty value Ioooo #5 checking bank account jointly with W average balance 2000 #6 savings bank account jointly with W accumulated mostly from their dividends and interest; occasional withdrawals are made for various p u rp o ses P resen t b a la n ce 8ooo #7 investment stocks and securities owned solely by H isooo #8 stocks and securities owned jointly with W with right of survivorship; about $20000 worth is attributable to stock dividends Total v a lu e 8 o o oo #9 unproductive investment realty owned jointly with W with right of survivorship acquired originally with H's funds value 20ooo INSURANCE AND OTHER INTERESTS #1o 3 policies of life insurance; one for $5ooo payable to S; one for $5ooo payable to D; and one for $25000 payable to W in installments for her life with guaranteed installments payable to S and D in event of W's death prior to recovery of face amount #ii H has a life interest and general power of appointment over property in trust established by his father In default of appointment by H the trust corpus is to pass free of trust at his death to his issue V alue of trust corpus ioo ooo Total of above $ W has no substantial property of her own H's present will bequeaths the bulk of his property to W and equally to S and D in the event of her predeceasing him