PFAC NEWS - Professional Fiduciary Association of California

PFAC NEWS
a f f i l i a t e
o f
t h e
n a t i o n a l
g u a r d i a n s h i p
a s s o c i a t i o n
professional fiduciary association of california Volume iii, issue i — winter 2012
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Table of Contents
PFAC Board of Directors 2011-2012
President
Norine Boehmer, NCG,
CLPF
(310) 246-9055
norineb@pacbell.net
Vice President/
President Elect
Scott S.H. Phipps, NCG,
CLPF
(510)508-9588
phisco2@yahoo.com
Secretary
Linda Banta, NCG,
CLPF
(510) 526-6465
lindambanta@comcast.net
Treasurer
Gary Loebner, CLPF
(650) 961-3368
SVFiduciary@sbcglobal.net
Past President
Stella Shvil, NCG, CLPF
(858) 794-0394
stella@shvilfiduciary.com
Executive Director’s Report . . . . . . . . . . . . . . 3
Southern Region President
Linda L. Cotterman, NCG
CLPF
(310) 927-3553
lindacotterman@gmail.com
President’s Report. . . . . . . . . . . . . . . . . . . . . . 4
Northern Region Update. . . . . . . . . . . . . . . . 5
Southern Region Update . . . . . . . . . . . . . . . . 7
New Members. . . . . . . . . . . . . . . . . . . . . . . . 9
A New Year in Politics. . . . . . . . . . . . . . . . . 10
Quick Facts from PFAC. . . . . . . . . . . . . . . . 13
Save the Date. . . . . . . . . . . . . . . . . . . . . . . . 14
Region Chapter Contacts. . . . . . . . . . . . . . . 17
Dodge a Real Estate Tax Trap . . . . . . . . . . . 18
Health Care Law Provisions. . . . . . . . . . . . . 20
Calendar of Events. . . . . . . . . . . . . . . . . . . . 22
Southern Region Director
Julia Nelson, NCG, CLPF
(818) 957-4729
julia.nelson@yahoo.com
Northern Region President
Marilyn S. Bessey, NCG,
CLPF
(916) 930-9900
marilyn.bessey@efmt.com
Northern Region Director
Joyce Anthony, NCG, CLPF
(650) 383-5313
joyce@primefiduciary.com
Executive Director’s Report
San Diego Region President
Beverly Brito, NCG, CLPF
(760) 505-5699
boognbr@cox.net
Congratulations
are
in
order! PFAC has topped 500
members! Our growth is a
direct result of the licensing
requirement
(SB
1550
of 2006), which required
licensure by the State of
California beginning in July
2008. This has increased
our professional stature and
provided an avenue for those
seeking a professional calling. That said – it is critical
that our newer members
be mentored or provided
counseling as they encounter
the more difficult aspects of
the professional fiduciary’s
practice. There are always
growing pains and challenges,
but the Association is up to
that challenge.
San Diego Region Director
Monika Pelletier, NCG, CLPF
(858) 335-4920
pacificfidgroup@yahoo.com
PFAC Staff
One Capitol Mall Suite 320
Sacramento, CA 95814
Phone: 916.669.5330
Toll-Free: 866.886.7322
Fax: 916.444.7462
Web: pfac-pro.org
Email: pfac@amgroup.us
Communications Director
Cindi Alvidrez
calvidrez@amgroup.us
Membership Coordinator
Ellyse Dill
edill@amgroup.us
Executive Director
Jackie Miller jmiller@amgroup.us
Jackie Miller,
Executive Director
the EA exemption, PFAC is
sponsoring legislation that
will tighten the Professional
Fiduciaries Act. The bill is
in spot form right now and
is authored by Senator Ted
Gaines.
Our Educational Conference
And speaking of growth, continues to grow, both in size
our stature in the Legislature and quality. The Conference
continues to be enhanced, Committee and Education
thanks to the efforts of our Committee reviewed over
Legislative
Committee, 130 proposed presentations
chaired by Past President Stella in order to select the program
Shvil, and Jerry Desmond, content for 2012. In addition
Jr., of the Desmond & to general sessions and
Desmond lobbying firm. breakouts, there will be three
In addition to beating back
Continued on page 13....
Accounting Services
Connie Payne cpayne@amgroup.us
professional fiduciary association of california • one capitol mall, suite 320 • sacramento, ca 95814
916-669-5330 • toll-free 866-886-7322 • fax (916) 444-7462 • www.pfac-pro.org • email pfac@amgroup.us
3
President’s Message
By Norine Boehmer, PFAC President
P
FAC has had a busy quarter with does it say about us that we are meetall of our regional and chapter ing by Disneyland! I know some of
meetings. us frequently feel we have our own
Disneyland dealing with some of our
We are moving forward in the legis- cases.
lative area as well as working toward
one of our most successful confer- I also want to thank Marilyn Bessey
ences ever.
and the Education Committee for
the great work they have done in
Our new legislative advocate, Jerry tightening up our CEU requireDesmond, Jr., has found an author in ments. As in all of our endeavors, we
the Legislature to help us with chang- must keep our ethics in mind when
es to the licensing requirements in the we take credit for our CEU’s. This, as
Professional Fiduciaries Act. We are everything else in this business, must
sponsoring a bill to change some of be above reproach and looked at as if
the language in the area of “durable it is as important as keeping our clipower of attorney”. ents’ well-being uppermost.
The conference is moving forward
under the direction of Marguerite
Lorenz and Julia Nelson. It will take
place April 25-28 in Anaheim – close
to Mickey’s house. Hmmm – what
a member. I also spoke about it in
my last message. That said, I want
to reiterate that we are not the ethics
police but here to help any member
who is being brought to our attention
by a complaint.
Thanks very much to all of the members I have spoken with since becoming President. It is an honor and a
pleasure to be of service to this organization.
Finally, I hope all of you are not
tired of me talking about Ethics, as it
seems to be popping up everywhere I
look. By now you have received the
email blast regarding the removal of
PFAC Mission Statement
The members of the Professional Fiduciary Association of
California (PFAC) are dedicated to serving and protecting
the best interests of those who have placed their trust in
them by:
•
•
•
•
•
Ensuring the highest standards of ethics and practice
Establishing comprehensive statewide certification
Maintaining high qualifications for membership
Requiring the continuing education of members
Promoting communications among members to
share resources
• Mentoring of new members by already established
members
• Contributing to the development of effective regulation and legislation
• Enhancing awareness of and respect for the Professional Fiduciary Association of California
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professional fiduciary association of california • one capitol mall, suite 320 • sacramento, ca 95814
916-669-5330 • toll-free 866-886-7322 • fax (916) 444-7462 • www.pfac-pro.org • email pfac@amgroup.us
4
PFAC Region Update
Northern California Update
Our Northern California PFAC Region has had a
busy two months:
D
ecember 2nd, PFAC NorCal held their annual
Education Day at the South San Francisco Convention Center. Two of the popular topics covered
were “What is our Obligation for Marshaling Online
Assets? What are Online Assets?” and “Succession
Planning…How to plan for the future”. The Education Day was great with a large attendance and financially very successful! Our Hats go Out to Joyce
Anthony and her committee, particularly Cecilia Mason who implemented our new regional credit card
payment program. Thank you .
Joyce Anthony did a repeat performance January 19th
by planning the Northern Regional Dinner Meeting
which was held in the Silicon Valley at Michael’s Restaurant Shoreline in Mountain View. Again a great
turnout and terrific program “When and Under What
Circumstances Should a Professional Fiduciary Agree
to Mediation, Trial by a Private Judge or Both?” Speakers, the Honorable Catherine A. Gallagher (Ret.) and
Attorney Michael Desmarais, provided good information about the value of the JAMs program available to
fiduciaries, and when and how it should be used in potentially litigious situations. Plus, the banter between
the Judge and Mr. Desmarais
was highly entertaining. Again,
Joyce, thank you, now relax and
enjoy.
Marilyn Bessey
I am planning the next Regional Dinner in the Davis/
Sacramento area March 22nd. The bar has been set
pretty high by Ms. Anthony, I’d better get busy!
Watch for further information regarding PFAC’s proposed Mentoring Policy. Pat McVey-Ritsick and Rosalie Rowsey are busy heading up a task force to develop
a sound PFAC Mentoring Policy. These are two very
hardworking, dedicated PFAC members.
A house-keeping note: the new Santa Rosa Chapter
Representative is William Zuur, wzuurconsulting@
sonic.net and Susie Below, susiebelow@gmail.com is
the new Chapter Representative for the Feather River
Chapter. Welcome to you both and our thanks to
retiring “reps”Jan Logan and Ronda Brunson! g
Marilyn Bessey
Northern Regional President
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professional fiduciary association of california • one capitol mall, suite 320 • sacramento, ca 95814
916-669-5330 • toll-free 866-886-7322 • fax (916) 444-7462 • www.pfac-pro.org • email pfac@amgroup.us
5
PFAC Region Update
Southern California
Greetings from Southern Region,
O
ur January meeting at the Sportsmans Lodge in
Studio city was well attended by 65+ members
and affiliates. Susan Bernatz, PhD., a forensic neuropsychologist, enlightened us all regarding evaluations
to determine “undue influence” and steps to take to
protect seniors. Her expertise, experience, and humor
took a serious topic and presented it in a way that was
informative, lighthearted, and solicited questions from
PFAC members. Remember, the Southern Region
PFAC booth (picture in last newsletter) is available for use. Let me
know if there is an event, conference, etc. in which PFAC can spread
the good news about the services we
offer. Linda Cotterman
Our Southern Region will be hosting a one-day Educational Day in August or September. The format and
Our next meeting will be March 29th 11:30-1:30pm presenters will be much the same as the Northern Reat Alhambra Court, in Alhambra with Judge Aviva Bob gion’s Educational Day last fall. Details will be forthwho will speak on mediation. Please save the date, you coming.
will not want to miss this one! Thanks to Ellie Page for Lastly, we are in the process of nominating and electing
bringing Judge Bob to PFAC.
the Southern Region Board for 2012-2013. Richard
Norene is handling nominations and elections. Our Attorney Appreciation Dinner in 2012 will be in
September/October. Our attorneys are our “profes- The Santa Barbara/Tri-Cities Chapter has kindly asked
sional bookends.” They are the ones who make our me to their March 12th chapter meeting in Santa Barjobs successful and are THE VITAL part of our team. bara, so I’ll see you PFAC “coastals” then!
Without them we could not exist, so let’s honor and
thank them royally. Please contact Julia Nelson or my- It has truly been my pleasure to serve as your President
self if you can help. this past year. I’ve learned so much from all of you. We continue to encourage all informal ‘Brown Bag Thank you so much. Lunches’ in your area. Rita Michael is continuing as
hostess for the informal get-togethers in her Manhat- Linda Cotterman
tan Beach office. Let’s get some brown-baggers in San Southern Regional President
Fernando Valley? Ventura? Beverly Hills? You name
it. Just find two or more other fiduciaries in your area,
get them off the phone and out-for-lunch! We all get
busy, I realize. However, one hour sharing with another fiduciary will ultimately save you not only time,
The National Guardianship Association
but will save you headaches, stress, and lots of anxiety. In cooperation with the New Mexico Guardianship Association
A problem solved is worth millions. Plus, you may
make a new fiduciary friend who may be a source OF
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tain to
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THIS D
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May 18
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For the
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The View from the Summit:
Guardianship in the Next Decade and Beyond
Find Us At:
Professional Fiduciary
Association of California
at the Hotel Albuquerque at Old Town
in Albuquerque, New Mexico
Additional Information Available at www.guardianship.org
professional fiduciary association of california • one capitol mall, suite 320 • sacramento, ca 95814
916-669-5330 • toll-free 866-886-7322 • fax (916) 444-7462 • www.pfac-pro.org • email pfac@amgroup.us
7
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New Members
Affiliate Individual
Member
PatrickBrennan
San Diego, CA92122
(858) 552-6960
Christina Files
El Dorado Hills, CA 95762
(415) 279-1647
Holly Galbrecht
San Francisco, CA 94115
(415) 409-1335
Ron Greenwald
San Diego, CA 92131
(858) 776-5863
Martin Harris
San Francisco, CA 94110
(415) 595-6797
Justin Peek
Carlsbad, CA 92009
(760) 635-1097
Associate Member
Chandra Brown
Oakland, CA 94604
(510) 502-5816
Dave Buehler
Lincoln, CA 95648
(916) 434-1022
Linda Callaway
Claremont, CA 91711
(909) 482-1203
David Carlson
Redlands, CA 92373
(949) 542-6497
Dara Fiss
Northridge, CA 91328
(818) 438-6886
Patricia Gerke
Carlsbad, CA 92009
(760) 525-7269
Beth Haley
Chico, CA 95926
(530) 343-6254
Molly (Mary) Hill-Melero
Orinda, CA 94563
(510) 786-8559
Bennett Hong
San Francisco, CA 94131
(415) 760-1666
Nancy Howland
Cost Mesa, CA 92627
(714) 206-1115
Theodore Jennings
Redondo Beach, CA 90277
(310) 793-7793
H.F. Rick Leas
Clovis, CA 93611
Michael Patten
Oakland, CA 94618
(510) 407-1450
Michael Prilutsky
San Ramon,CA 94583
(925) 355-1746
General Member
Stephen Cohen
San Diego, CA 92121-1733
(858)750-4200
Karen Field
Fair Oaks, CA 95628
(916) 853-1618
Thomas Jacobsen
Corte Madera, CA 94925
(415) 924-5246
Robert Kain
Pacheco, CA 94553
(925) 825-8873
Janice Kittredge
Walnut Creek, CA 94598
(925) 465-5500
Connie Kruse
Albany, CA 94706
(510)410-0547
Associate to General
Member
John Balquist
Oakland, CA 94602
(510) 684-5810
Kenneth McKean
Piedmont, CA 94611
(510) 601-6588
Shoushan Movsesian
Glendale, CA 91203-2020
(818) 543-1150
Michael Seibert
Los Angeles, CA 90049
(310) 920-1922
Michelle Winchester
Piedmont, CA 94611
(510) 507-2988
professional fiduciary association of california • one capitol mall, suite 320 • sacramento, ca 95814
916-669-5330 • toll-free 866-886-7322 • fax (916) 444-7462 • www.pfac-pro.org • email pfac@amgroup.us
9
2012- A New Year in Politics
By Jerry Desmond, PFAC Legislative Advocate,
Desmond & Desmond
S
everal key events and developments are making 2012 a most unique
year and are also influencing the political environment in which legislative and regulatory proposals with a potential to impact PFAC members
are being addressed. These include:
The November 6 election - of either incumbent Democrat Barack
Obama or a still-to-be-determined Republican challenger as the President of our country.
The summer statewide primaries - which will be conducted with:
•
Voter-established “open primary” rules where the two top vote-getters proceed to November regardless of their party, so that two candidates from the same party could be in a run-off.
•
Newly-configured Senate and Assembly legislative districts, with an unprecedented number of incumbents facing challenges and numerous legislators seeking new offices.
The challenging state economy
Which has decreased the income tax revenues that support the state budget. Two new characteristics of the
budget process have been approved by voters and had a strong influence on last year’s budget. They are expected to play a significant role again this year:
•
The ability of the budget to be approved by a majority vote in the Legislature. After months of
Governor-led negotiations aimed at developing a bipartisan budget, the final budget was approved by the
Democrats. •
The requirement that legislators pass a balanced and on-time budget or have their pay withheld. The
Controller enforced this requirement and determined that an initial proposal was not balanced. A lawusuit
is challenging the Controller’s authority.
Possible Initiatives on the November Ballot
That could number in the dozens and include three separate proposals to increase taxes, a proposal to make
the legislature part-time, and a proposal to place new requirements on union use of member dues for political purposes.
Within this context, close to 2,000 new bills have been introduced in this second year of the 2011-2012
legislative session. Based on our ongoing review of these measures, we’ve identified several new proposals
that will be considered in the upcoming months, including:
Continued on page 11....
professional fiduciary association of california • one capitol mall, suite 320 • sacramento, ca 95814
916-669-5330 • toll-free 866-886-7322 • fax (916) 444-7462 • www.pfac-pro.org • email pfac@amgroup.us
10
Legislative Upddate Continued...
SB 1226 [Gaines] Professional fiduciaries.
This PFAC-sponsored bill is intended to remove the “durable” before “power of attorney” in subdivision
(f ) (2) of Business and Professions Code Section 6501, to ensure that licensure as a professional fiduciary is
required for other types of powers of attorney for health care or finances, including special or specific powers
of attorney.
In its current form as introduced on February 23, SB 1226 is a “spot bill” into which the substantive provisions will be inserted.
AB 2013 [Buchanan] Professional fiduciaries.
Assembly Member Buchanan is pursuing this bill in an effort to help address situations where fiduciaries
identify situations where professional fiduciaries become aware of undue influence, to see if there are mechanisms that can encourage and / or facilitate actions to protect the vulnerable. In its current form, the bill is
also a “spot bill” into which the substantive provisions will be inserted.
State License Accommodations for Military
Several bills have been introduced to provide some form of assistance for the military and veterans returning
from combat, including:
AB 1588 Atkins
That would require licensing agencies to waive the license renewal fees and continuing education requirements, for individuals who are reservists called to active duty as a member of the United States Military
Reserve or the California National Guard .
AB 1931 [Cook]
That would declare the intent of the Legislature to enact legislation that would require the Department of
Veterans Affairs to work with the military in order to distribute information to veterans returning from deployment regarding professional licensing opportunities available to those with military training, and regarding how to obtain a business license to start and operate a small business.
AB 2598 [Fuentes]
That would state the intent of the Legislature to enact legislation that would establish and administer a demonstration program that identifies, develops, and supports methods that maximize academic credit awarded
by institutions of higher education to veterans and members of the military for military experience, education, and training obtained during military service in order to expedite the entry of veterans and members
of the military into the workforce. A comprehensive report is being provided to the legislative committee on these bills and numerous others as the
association moves forward with appropriate positions and lobbying strategies will be successful for the members.
professional fiduciary association of california • one capitol mall, suite 320 • sacramento, ca 95814
916-669-5330 • toll-free 866-886-7322 • fax (916) 444-7462 • www.pfac-pro.org • email pfac@amgroup.us
11
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916-669-5330 • toll-free 866-886-7322 • fax (916) 444-7462 • www.pfac-pro.org • email pfac@amgroup.us
12
PFAC Quick Facts
4 PFAC currently has nearly 500 members.
4 In 2011, PFAC members managed nearly $6 billion in cash and assets as trustees, conservators and
personal representatives of estates.
4 Important shifts in aged distribution of the California population are forecast over the next
50 years, as mortality rates decline and life expectancy increases. Currently, life expectancy in
California is 78.8. By 2050, we estimate a 50% probability that life expectancy in California will
reach 84.2. As a result of this as well as other factors, the state’s population age 65 or older is
expected to double in 25 years (over 7 million) and triple in 50 years.*
4 By 2050, the median forecast shows nearly 11 million seniors – the size of the current
population under 20. Currently, there are approximately three times as many youths as seniors;
by 2050, roughly equal numbers are projected.*
4 While the total population (California) will approximately double in size between 1990 and
2040, the oldest old (age 85 and older) will experience nearly a six-fold increase from just under
300,000 to over 1.7 million (California Dept. of Aging, Statistics and Demographics).
4 The prevalence of Alzheimer’s disease doubles every five years beyond the age of 65 (National
Institute of Aging, 1997).
4 Alzheimer’s disease (the most common form of dementia) is the eighth leading cause of death
in California – 99.1% were among people aged 65 and older. (State of California, Dept. of Health
Services, Death Records, 1999 and 2000).
4 The three largest states in the country (Texas, Florida and California) will continue to have the
greatest total number of Alzheimer’s disease cases and experience significant growth rates –
California – 50% increase (Alzheimer’s Association study, “State-Specific Projections Through
2025 of Alzheimer’s Disease Prevalence, 2004).
4 Over 225,000 cases of elder and dependent adult abuse are handled by protective service
agencies each year in California. Unfortunately, more than two-thirds of abusers are family
members. Currently, it is estimated that only one in five cases is reported within our state (State
of California, Office of the Attorney General Crime and Violence Prevention Center, 2005).
*Center for Economics and Demography of Aging, UC Berkeley. CEDA Papers Special Report: The Growth and
Aging of California’s Population: Demographic and Fiscal Projections, Characteristics and Service Needs, 2030.
Ronald Lee, Timothy Miller, Ryan Edwards.
Executive Director’s Message Con’t...
pre-intensive sessions from which to choose. Registrations are pouring in, and we anticipate another increase in
attendance.
The Education Committee, chaired by Marilyn Bessey, has overhauled the Continuing Education requirements,
necessitated by both the audit process of the Professional Fiduciaries Bureau, as well as PFAC’s approval as an MCLE
provider. These changes will require greater paperwork and administrative efforts by chapters, regions and the
Association, but should result in higher-quality educational programs.
All in all – 2012 looks to be a banner year, thanks to all of our members!
professional fiduciary association of california • one capitol mall, suite 320 • sacramento, ca 95814
916-669-5330 • toll-free 866-886-7322 • fax (916) 444-7462 • www.pfac-pro.org • email pfac@amgroup.us
13
Online Registration Now Open!
Register by March 28, 2012 and SAVE
part·ner·ship (n) [ paartn r shìp ] -- relationship between partners: the relationship between two or more people or
organizations that are involved in the same activity; cooperation: cooperation between people or groups working together;
group of people working together: an organization formed by two or more people or groups who work together for some
purpose.
syn·er·gy (n) [ sínn rjee ] -- combined effort being greater than parts: the working together of two or more people,
organizations, or things, especially when the result is greater than the sum of their individual effects or capabilities.
suc·cess (n) [ s k séss ] -- achievement of intention: the achievement of something planned or attempted; something that
turns out well: something that turns out as planned or intended.
Program: PFAC now offers just one conference per year at which you are able to earn up to 16 credit hours if
you desire to accumulate them all in one place. The conference will start on Wednesday afternoon and end on
Saturday early afternoon. MCLE credit will be offered for many of the classes. A complete At-A-Glance agenda is
posted on the website. There will be five general sessions.
Ten Things a Professional Fiduciary Needs to Know About the Attorney-Client Relationship presented by
Cynthia V. Roehl and John R.Deily, Deily Law Firm (90 minute session; 1.5 CE & MCLE hours)
Financial Crimes – Streamlining the Process presented by Gina Satriano, Deputy District Attorney, Los Angeles
County District Attorney’s Office, Elder Abuse Section (90 minute session; 1.5 PFAC CE & MCLE hours)
How Doctors Die: It’s Not Like the Rest of Us, But It Should Be presented by Kenneth Murray, M.D. (75 minute
session; 1.25 credit hours; ETHICS)
Where Does Healthy Aging End and Dementia Begin? presented by Cordula Dick-Muehlke, Ph.D., University of
California, Irvine Institute for Memory Impairments and Neurological Disorders (UCI MIND) (90 minute session; 1.5
PFAC CE & MCLE hours)
What Would You Do?” An Ethics Panel Discussion with Very Experienced Professional Fiduciaries presented
by PFAC members Jane B. Lorenz, CPA, CLPF, Lorenz Fiduciary Services, Inc.; Norine Boehmer, NCG, CLPF, Boehmer
& Mills Fiduciary Services; Debra J. Dolch, CLPF, CCF, NCG, Fiduciary Services; Lee Ann Hitchman, MBA, CLPF, NCG,
Hitchman Fiduciaries . Panel will be moderated by Roberta J. Robinson, Attorney - Certified Specialist Probate,
Estate Planning and Trust Law, Roberta J. Robinson, A Law Corporation (90 minutes; 1.5 PFAC CE & MCLE hours;
ETHICS)
professional fiduciary association of california • one capitol mall, suite 320 • sacramento, ca 95814
916-669-5330 • toll-free 866-886-7322 • fax (916) 444-7462 • www.pfac-pro.org • email pfac@amgroup.us
14
The pre-conference intensives will run from 9:00 a.m. to 1:00 p.m. on Wednesday, April 25th and will be offered
in addition to the conference at a separate fee of $160 each and at which you may earn 3.5 credit hours. You will
be able to take your pick from:
•
•
•
Real Estate Management Fundamentals for the Fiduciary presented by PFAC members William O. Gamble III,
CLPF, William O. Gamble III Fiduciary Services and Russ Marshall, NMG, CLPF, Marshall Fiduciary Services (3.5 hours
PFAC CE credit)
The Wide-Wide World of Trusts: Revocable and Irrevocable Trusts presented by Frank R. Acu–a, Attorney at Law;
State Bar of California Certified Specialist in Estate Planning, Probate & Trust Administration, Acuña, Regli & Klein, LLP
(3.5 hours PFAC CE & MCLE credit)
Your Client’s Healthcare – Advocating for the Best Care! presented by Pat McVey-Ritsick, CLPF, NCG, PMR
Fiduciary Services; Joseph A. Ritsick, M.D.; Sylvia Gandolfo, Eldercare Services (3.5 hours PFAC CE & MCLE credit)
A GREAT Opportunity to Support & Partner with PFAC
Raffle & Auction Donations:
We encourage you to consider making a raffle or auction donation and to pass this opportunity on to others (especially your
vendors and other professionals you do business with). These activities can raise up to $15,000 or more to support
PFAC programs and member benefits. We’re looking for gift cards, products and service and cash donations (for purchases).
The auction flyer/form may be downloaded on the PFAC website. Forms must be completed and returned by April 18th. For
more information on making donations, please contact MeetingWise at (310) 937-9473 or admin@meetingwise.net.
Proceeds from these activities will aid in our effort to provide greater and better service to our members and those
entrusted to the care of our members!
Thank You to Our Sponsors/Exhibitors
We thank our sponsors & exhibitors to date (as of 2/17/12) for their participation. Their participation allows you
exposure to vital services, helps keep conference costs down and provides PFAC with funds for important
services to members. Encourage YOUR vendors to add their names to the list. Sponsor/exhibitor information is
available at www.pfac-pro.org.
Sponsors
SILVER LEVEL -- Merrill Lynch Fiduciary & Special Needs Group
BRONZE LEVEL -- Bond Services of CA, LLC, Community Bank, MetLife, Inc., Phillips Bonding &
Insurance Agency, Inc.
GENERAL-LEVEL I -- Art Lehman, Village Associates Real Estate
GENERAL-LEVEL III -- Alcaine Group of Robert W. Baird & Co., Harvey & Parmelee, LLP
FRIEND OF PFAC -- Clars Auction Gallery, Green Zahn & Associates, IMT Associates, Intero Real Estate, Jackson & Efting
Exhibitors
Abell Auction Co.
Absolute Health Care
Alain Pinel Realtors Saratoga
Angels Watch Home Care, Inc.
Beach Equities
Boker & Jaye Yaruss
Care Indeed
Commercial Surety Bond Agency
Comprehensive Mobile Dental Care
Continuity Care Home Nurses
First Equitable Financial
Flans & Weiner, Inc.
Gamburd, Inc.
Harris Fiduciary Services
Home Care Assistance
J&J Inventory Services
Morgan Stanley-Clarke Group
Myers Urbatsch, P.C.
Prudent Investors Network
Raya’s Paradise, Inc.
Re/Max Santa Clara Valley
Rehabilitation Care Coordination
SEM Applications, Inc.
Silverado Senior Living, At Home and Hospice
Sorenson Insurance Services
Stonecrest Managers
Thomson Reuters ONESOURCE Trust & Estate
Administration
UC Riverside Extension
Look for additional planning details on the PFAC website (www.pfac-pro.org).
professional fiduciary association of california • one capitol mall, suite 320 • sacramento, ca 95814
916-669-5330 • toll-free 866-886-7322 • fax (916) 444-7462 • www.pfac-pro.org • email pfac@amgroup.us
15
DIRECT PRIVATE MONEY LENDER
LOAN SOLUTIONS
AS UNIQUE AS YOU ARE...
Every situation is unique. That doesn’t mean you shouldn’t get the exact loan you need.
As a direct private equity finance company for over 15 years, we have partnered with:
 Trustees & Professional Fiduciaries
 Executors & Administrators
 Conservators & Guardians
 Serving Attorneys
 Probate and Trust Clients
 Members of professional community
If your situation is rare and your opportunity is right
done, your job is easy... sit back and capitalize.
C ontact to Discuss Your Loan Scenario
800-363-1456
- we should talk. When our job is
James Perry E xt. 224
JPerry@AlliancePortfolio.com
Alliance Portfolio • 120 Vantis Suite 515, Aliso Viejo, CA • 949.349.1322 • Fax 949.349.1330
Real Estate Broker California Department of Real Estate 01868859 Broker Licensed
S u b m it yo ur lo a n s c e na rio a t www. a llia nc e p o rtfo lio . c o m
Region & Chapter Contacts
Northern Region President
SAN FRANCISCO CHAPTER
Southern Region President
Marilyn S. Bessey, NCG, CLPF
(916) 930-9900
marilyn.bessey@efmt.com
Susan Ford
(415) 674-8973
susan.ford103@gmail.com
Linda L. Cotterman, NCG CLPF
(310) 927-3553
lindacotterman@gmail.com
SACRAMENTO CHAPTER
Andrea Leung
(415) 752-7168
aleung@andrealeung.com
ORANGE COUNTY CHAPTER
Dawn Akel
(916) 686-7804
akelppf@gmail.com
SAN JOAQUIN CHAPTER
FEATHER RIVER CHAPTER
Susie Below (530) 532-1757 belowfiduciaryservices@hotmail.com
CENTRAL SAN JOAQUIN CHAPTER
Ronald Dicken (559) 732-0759
rondicken01@comcast.net
SAN MATEO CHAPTER
Debra Dolch
(415) 543-2121
debrajdolch@fiduciaryservices.net
Anne Smith
(415) 299-0198
anne@annefsmith.org
Lee Ann Hitchman
(714) 276-2112
leeann@hitchmanfiduciaries.com
Mary Gallagher
(209) 524.9333
mfgallagher@me.com
INLAND EMPIRE CHAPTER
EAST BAY CHAPTER
DESERT CHAPTER
Kellie Hayes
(925) 548-0205
kah1216@yahoo.com
SANTA ROSA CHAPTER
William Zuur
(707) 539-2216
wzuurconsulting@sonic.net
SILICON VALLEY CHAPTER
Dusty L. White
(408) 248-629
dustywhite@mac.com
SAN DIEGO REGION PRESIDENT
Bev Brito, NCG, CLPF
(760) 505-5699
boognbr@cox.net
Sam Hlavaty
(760) 244-6592
SlednShoe@verison.net
Ronald Olund
(760) 323-8857
olundhooker@aol.com
CENTRAL COASTAL CHAPTER
Jacquelyn Quinn
(805) 966-3312
jquinn@seniorplanningservices.com
Debra Trout
(805) 547-1288
dtrout1998@aol.com
SAN GABRIEL CHAPTER
Annabelle Wilson
(626) 792-1664
mail@arwilson.net
HARRIS  FIDUCIARY  SERVICES
Transforming Fiduciaries’ Lives. Nationwide.


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Fiduciary accountings for court and non-court needs – expert & fast!
 Trusts, Estates, Conservatorships and Guardianships
All counties; 15+ years experience; San Francisco Court-recommended preparer
Long-time PFAC supporter and conference presenter
Full bookkeeping services (Quicken/QuickBooks expert); systems set-up/support
2169 Folsom Street, Suite M101, San Francisco, CA 94110 (415) 595-6797 martin@harris-sf.com
professional fiduciary association of california • one capitol mall, suite 320 • sacramento, ca 95814
916-669-5330 • toll-free 866-886-7322 • fax (916) 444-7462 • www.pfac-pro.org • email pfac@amgroup.us
17
Dodge a Real Estate Tax Trap
with a Like-Kind Exchange
Courtesy of Haley & Company, LLP, Certified Public Accountants
T
he real estate slump of recent years has reduced the value of many investment properties. Therefore, you
may expect to owe little or no tax on a sale. You may, however, have to pay a surprising amount to the IRS
because of a “recapture” provision in the tax code.
Repaying Prior Deductions
Owners of investment property generally reduce their taxes each year with depreciation deductions. Those
deductions, however, also reduce your basis in the property and thus, result in increased tax on a future sale.
Example: Paul Matthews bought a small apartment building many years ago for $500,000, of which $50,000
was allocated to non-depreciable land. The remaining $450,000 of the purchase price has been fully depreciated over the years.
Paul has seen the building’s value rise to $800,000 and then fall back towards $500,000 in recent years. He
wishes to relinquish property management responsibilities and relocate to a distant state in retirement. HE
assumes that a sale that nets him $500,000 would result in no tax: paid $500,000, received $500,000.
However, Paul has taken $450,000 worth of depreciation deductions, as noted. Consequently, his basis in this
property is only $50,000, not $500,000. If Paul sells the property for $500,000, his $450,000 of depreciation
deductions would be recaptured at 25%, and he would owe the IRS $112,500.
Deferred Like-Kind Details
•
In a deferred like-kind exchange, you must identify potential replacement properties, in writing, within 45 days of the date that you sell your original property. This notification can go to the accommodator.
•
You can name up to three potential replacement properties of any value.
•
Alternatively, you can name more than three properties. If you name more than three, their total value
can be no more than 200% of the value of the property that you relinquished.
•
You must receive the replacement property within 180 days after the sale of your original property or
the due date (with extensions) of the relevant tax return to your property sale, whichever is earlier.
Tax Tidbits
l
Federal Estate Tax Exclusion – The federal estate tax exclusion will rise to $5.12 million in 2012
up from $5 million in 2011. However, the annual gift tax exclusion will remain at $13,000.
l
EITC – The maximum earned income tax credit (EITC) will increase to $5,891, up from $5,751
in 2011. The earned income tax credit is a refundable federal income tax credit for low-tomoderate-income working individuals and families. The allowable credit varies by family size
and other factors.
professional fiduciary association of california • one capitol mall, suite 320 • sacramento, ca 95814
916-669-5330 • toll-free 866-886-7322 • fax (916) 444-7462 • www.pfac-pro.org • email pfac@amgroup.us
18
Health Care Law Provisions and Benefits
Now Available
Expanded coverage for preventative care and screenings
People who have Medicare Part B as well as those covered by many individual and employer-sponsored health
plans are eligible for free (i.e. no deductible or copayments – preventative and wellness benefits, such as annual
health exams, immunizations, mammograms and other screenings for diseases including diabetes and certain
cancers. For instance, Medicare Part B enrollees can have a free wellness visit with their doctor every year. People with other types of insurance can ask their insurance company or physician about the free preventive
services now available to them.
New Options for People with Pre-Existing Conditions
Adults whom private insurers consider to be “high-risk” due to prior or current health problem, and who have
been uninsured for at least six months, are eligible to buy insurance through the Federal Pre-Existing Condition Insurance Plan (PCIP) in their state.
Lowered Costs for People in the Medicare Part D “Doughnut Hole”
People with Medicare Part D who fall into the prescription drug coverage gap will automatically receive a 50
percent discount on most brand name prescriptions and biologic drugs, as well as a discount on generic drugs. For 2012, the generic drug discount is 14 percent. Greater Consumer Protections Against Insurance Cancellations
A common practice among insurers seeking to deny payments for costly medical care has been to re-examine
customers’ initial applications and cancel or “rescind” policies. Now, due to the health care law, as long as you
pay your premiums, your health insurance is guaranteed. The health care law prohibits insurers from rescinding coverage because of unintentional mistakes or minor omissions on an application.
An End to Lifetime Limits on Health Insurance Coverage
Insurers can no longer limit how much they will pay out in essential medical services over a person’s lifetime. This benefit is now automatically in effect on all insurance policies.
Higher Annual Limits on Health Insurance Coverage
Most insurance plans must now cover medical expenses up to at least $1.25 million per year.
Expanded Coverage for Adult Children Up to Age 26
Young adults who don’t have access to an employer health plan can now stay on a parent’s health insurance
policy until they turn 26, even if they are married or don’t live at home. Previously, most insurance plans
kicked young adults off family policies when they turned 18, or if the young adult was in college, soon after
graduation.
Insurance Supports for Early Retirees
If you retiree health coverage through your work and are between 55 and 64, funding from the new Early
Retirees Reinsurance Program can help your former employer maintain your health benefit until you reach
Medicare age.
professional fiduciary association of california • one capitol mall, suite 320 • sacramento, ca 95814
916-669-5330 • toll-free 866-886-7322 • fax (916) 444-7462 • www.pfac-pro.org • email pfac@amgroup.us
20
Health Care Law Provisions Continued...
Greater Protections for Children with Pre-Existing Conditions
Under most individual and group insurance plans, children up to age 19 with prior or current health problems
can no longer be denied coverage.
Free Wellness Care for Babies and Children
Children are eligible for free annual wellness exams and immunizations from birth to age 21.
Easy-to-Use Resources for Finding Affordable Insurance
Consumers seeking to research private and public health insurance plans, obtain rate information, and better understand their insurance options can now visit a one-stop shopping website established by the federal
government.
Easier Access to Specialty Care
Among the “Patient Bill of Rights” provisions in effect now are rules that prevent insurance companies from
requiring primary care physician referrals for ob/gyn visits out of network emergency care.
Expanded Rights of Appeal
If an insurer rejects a claim or cancels coverage, customers of most plans now have the right to appeal the decision to an outside review panel. Unlike in the past, insurers will have to abide by that group’s findings.
Greater Protections for Nursing Home Residents
The new health care law provides expanded resources, such as access to quality ratings and complaint reports,
for families seeking nursing home care and greater protections for nursing home residents.
Insurance Supports for Small-Business Employers
Business tax credits have been established for small business owners who want to provide health insurance to
their workers.
Roth IRAs 2012 Tidbits
l
ROTH IRAs – The amount you can put into a Roth IRA as a regular contribution is reduced or
eliminated if your income goes above certain levels. In an October 20 announcement on pension
plan limitations for 2012, the IRS sad that the income phase-out for married couples filing jointly
will rise to the range of $173,000 to $183,000, up from $169,000 to $179,000 in 2011.
According to the nonprofit Employee Benefit Research Institute, only 33 percent of workers
ages 21 to 64 took advantage of 401(k) plans in 2009, the most recent year for which figures are
available.
And, according to the institute, only 9 percent of people who do have a 401(k) contributed
the maximum dollar amount to their plans in 2005, the most recent year for which that data is
available.
professional fiduciary association of california • one capitol mall, suite 320 • sacramento, ca 95814
916-669-5330 • toll-free 866-886-7322 • fax (916) 444-7462 • www.pfac-pro.org • email pfac@amgroup.us
21
Calendar of Events
Subject to change. Call local contact to confirm
schedule, location and topics.
March 2012
29 PFAC Southern California Regional
16 San Joaquin Valley Chapter Educational
Luncheon
Meeting
Time: 12:00 PM - 1:30 PM
Time: 12:00 AM Speaker: Russ Marshall, Licensed Professional Fiduciary, former Public Guardian and
former PFAC President. Topic: Mediating a Probate Case
Speaker: Aviva K. Bobb, Judge of the Superior Court, Retired
Topic: How I Changed My Business Practices to Avoid Controversy.
Cost: $35 per person in advance; $45 per
person at the door; all guests $45.
Please RSVP by March 9th, contact Mark
Olson, Chapter Treasurer (209) 768-7044 or
olsonfiduciary@gmail.com. Contact Ellie Page at ellie@pagefiduciary.
com or (818) 623-0099
Location: Alhambra, CA- Almansor Court
Cost: $20 members, $25 non-members. Attendees receive 1 CEU
Location: Fuzio Universal Bistro,
Firecracker Room
21 San Diego Region Meeting
April 2012
18
Time: 7:30 AM - 9:00 PM
Time: 11:00 AM - 1:00 PM
Topic: Probate Update with Judge Kelety
RSVP Mandatory by April 16
Topic: VA & Social Security Panel
Discussion RSVP Mandatory by March 19,
2012
ABSOLUTELY NO
WALK-INS Call (619) 685-7423.
ABSOLUTELY NO WALK-INS
Call (619) 685-7423.
Location: Elijah’s
San Diego Region Meeting
Location: Bar Association- Broderick Room
25-28 17th Annual Educational Conference
Growing Professional Partnerships: Creating
Synergy and Success
Location: Hyatt Regency Orange County
professional fiduciary association of california • one capitol mall, suite 320 • sacramento, ca 95814
916-669-5330 • toll-free 866-886-7322 • fax (916) 444-7462 • www.pfac-pro.org • email pfac@amgroup.us
22
professional fiduciary association of california • one capitol mall, suite 320 • sacramento, ca 95814
916-669-5330 • toll-free 866-886-7322 • fax (916) 444-7462 • www.pfac-pro.org • email pfac@amgroup.us
23
Professional Fiduciary Association of California
One Capitol Mall, Suite 320
Sacramento, CA 95814
FIRST CLASS
US POSTAGE
PAID
Sacramento, CA
Permit No. 949
ORDER FORM
“Answer your Questions About
Fiduciaries” Pamphlet
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Phone:
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(2 sided)
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Per Pin (1)
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Questions? Call 866-886-7322