Private Client Services

Elinor Ramey, partner and Chair of Lowenstein’s Exempt Organizations practice, is a contributor to a report by The Generosity Commission entitled “Everyday Actions, Extraordinary Potential: The Power Of Giving And Volunteering: Research and recommendations for the future of generosity.” The Generosity Commission was officially launched in 2021 in response to one of the most significant trends reshaping civil society in the United States over the last several decades: the decline in the proportion of Americans who give to and volunteer with nonprofit organizations. Ramey says: “I am excited about the Generosity Commission’s work and recommendations and honored to have had a small part in helping develop proposals for policy changes. The nonprofit sector is an incredibly important part of our society and policies that encourage and incentivize charitable contributions and strengthen trust in the sector are vital to its ongoing success.”

Jeffrey J. Wild, partner in the firm’s Business Litigation, Trusts & Estates, and Private Client Services practices and a trustee of the New Jersey Coalition to End Homelessness, is interviewed on FOX 5 TV NY and NJ.com about a park in Newark that has been fenced in to prevent the public, including unhoused people, from using it. Wild says, "It is unconstitutional to remove people from public land if they have no other option;” adding: “It is not criminal to survive. It is not criminal to sleep at night.”

On NJ.com, Wild states: “Peter Francisco Park is owned by the City of Newark and thus is public property. It exists to be used freely by anyone in New Jersey, not to be locked up.”

Melissa L. Wiley speaks with Bloomberg Tax about the letter recently sent by the IRS to taxpayers whose data was stolen by an IRS contractor and subsequently leaked to the media. “The problem for taxpayers who are receiving this is that the details to help them understand the potential effects to them individually are just not there in the letter,” she says.

Melissa L. Wiley talks to Bloomberg Tax about the IRS’ recent crackdown on inflated valuations of fine art, noting that “tax avoidance involving exaggerated valuations have long been on the IRS’s radar, but the emphasis on these improper art deductions is possible in part because of the tax-and-climate law funds.” The agency did not always have expertise to audit high-net-worth individuals, but now “the IRS is heavily recruiting people from the private sector…. they’re asking people what’s going on out there,” says Wiley.

Wiley adds that taxpayers should be careful from whom they receive their advice on deductions. “If somebody else tries to tell you what to do and it just seems too easy, or too good to be true, don’t do it.”

Law360 highlights the work of Megan E. Wernke and Molefi McIntosh who are working to address systemic wealth gap issues through estate planning and clearing title to real estate owned by large groups of family members, colloquially known as “heirs’ property.” These issues disproportionately impact the Black community and other BIPOC communities. Wernke and McIntosh lead the estate planning and heirs' property clinic at Howard University School of Law. This clinic provides free legal representation to D.C.-area residents and trains the next generation of lawyers on how to draft wills and powers of attorney, as well as clearing title on heirs’ property. It represents low-income clients and clients from BIPOC communities with low rates of estate planning engagement. McIntosh stresses the importance of raising awareness of the issue, noting that “[estate planning is] not something that people are thinking about, with all that we have to think about every day.”  Both attorneys were recently honored by the Lowenstein Center for the Public Interest with Pro Bono Awards for their work with Howard’s clinic.

Beth Shapiro Kaufman, partner and National Chair of Lowenstein’s Private Client Services group, details in The Wall Street Journal how to lend a child or loved one the funds necessary to purchase a house, and then forgive the principal over time using the annual gift tax exemption. She advises both sides of the transaction have their own lawyers to draft the necessary documents, noting that “In general, it’s important to show that the intrafamily loan, whether for a down payment or a mortgage, is an official, arm’s-length transaction and not a disguised gift."

If lenders choose to forgive the principal, they must write the borrower a letter specifying the dollar amount of forgiveness. Kaufman tells lenders to vary the amount of forgiveness from year to year. “Don’t have a plan in place to forgive a certain amount each year. The forgiveness should arise from a spontaneous burst of generosity,” she says.  

Beth Shapiro Kaufman, partner and National Chair of Lowenstein’s Private Client Services practice, is quoted in Bloomberg Law on the uncommon occurrence of tax avoidance schemes in the context of charitable remainder annuity trusts (CRATs), despite the recently proposed regulations from the IRS that question their legitimacy. “The transaction described in the proposed regulation is a unique and unusual combination of a CRAT with a commercial annuity that tries to skirt the tier rules that apply to CRATs,” she says.

In Bloomberg Tax, Beth Shapiro Kaufman, partner and National Chair of Lowenstein’s Private Client Services practice, and Meghan M. Federman caution wealthy individuals about rushing to utilize the increased estate tax exemption before its potential expiration in 2025, emphasizing careful consideration over hasty gifting.

Kaufman highlights the potential pitfalls of utilizing the exemption without thorough planning and stresses the importance of not hastily transferring significant assets like a primary residence. Federman reflects on past regrets from a similar situation in 2012, where individuals utilized an elevated exemption that ultimately did not decrease, leading to donor's remorse. She advises, "When you’re planning this, you have to be willing to part with the money you’re giving away for real," stressing the importance of deliberate and informed decision-making in estate planning to avoid unnecessary losses or regrets.

Beth Shapiro Kaufman, partner and National Chair of the firm’s Private Client Services group, tells Tax Notes that she does not expect any big surprises in the year ahead in the area of estate planning. Noting that the current IRS and Treasury priority guidance plan contains “fairly mundane” estate and gift tax items, Kaufman thinks it is “unlikely there’s a sleeper project in the works that hasn’t been telegraphed. The government typically doesn’t devote much time to projects that aren’t on the guidance plan unless there’s newly enacted legislation that takes priority.”

Kaufman also expects that the U.S. Supreme Court will take a narrow approach in upcoming cases that could impact the tax code in 2024. (subscription required to access article)

Beth Shapiro Kaufman, partner and National Chair of Lowenstein’s Private Client Services Group, appears on the ACTEC Trust and Estate Talk podcast to explain Private Letter Rulings (PLR), Technical Advice Memorandum (TAM), and Chief Counsel Advice (CCAs) from the IRS: what such rulings do and do not cover, and the process for requesting them. Kaufman calls a PLR “a great opportunity to get the IRS’s view in advance on the tax consequences of a planned action or transaction.”

Warren K. Racusin, partner and chair of Lowenstein Sandler’s Trusts & Estates practice, is interviewed on CNBC on how lottery winners can avoid the potential pitfalls that come with sudden wealth. “This is something that can be a blessing or a curse,” Racusin says. “If you handle it right, it can be a blessing,” he adds, noting that estate planning techniques such as trusts can help minimize the tax bill and build a legacy.  

Racusin also spoke to The US Sun on the subject, advising winners: “Don’t take it all in a lump sum.” He continues: “Taking it over a stream of payments over a number of years, makes it a little easier to get used to handling these kinds of sums of money and makes it harder to…spend it all in one place. This is enormously life-changing money, and you have to get used to it. Get your mind around it before you make enormous decisions.” 

Melissa L. Wiley comments in Bloomberg Tax on the Sixth Circuit case Jarrett v. United States, in which the IRS ended a lawsuit over the treatment of income from cryptocurrency staking by sending the taxpayers a refund check. Wiley compares Jarrett to the 2021 U.S. Tax Court ruling in Puglisi v. Commissioner, which denied a taxpayer’s demand for a ruling to “give clear guidance” in an undeveloped area of the law even though the IRS dropped the case. She said that the Jarrett case appeared to continue the government’s “strategy of bringing cases with [what they think are] bad actors to the court first, in the hope of favorable rulings that pressure other taxpayers to settle,” then dropping cases mid-stream when the government realizes the taxpayers might actually win.

Law360 reports that partners Beth Shapiro Kaufman and Megan E. Wernke, and associates Meghan M. Federman and Molefi McIntosh, have joined Lowenstein Sandler’s newly expanded Private Client Services group, with Kaufman serving as National Chair.  Kaufman says: "As leader of Lowenstein's private client services group, I look forward to collaborating with the firm's lawyers across numerous transactional practices to enhance the many ways that our team supports families, family offices, private foundations, and family-owned businesses while continuing the thoughtful, one-on-one approach our clients have come to expect.” Wernke adds: “The combined brain trust of Lowenstein's attorneys across numerous transactional practices will create a 'one-stop shopping 'approach for our high-net-worth clients planning for the future of their businesses, families, and causes." Bloomberg Law, citybiz, and Thomson Reuters Westlaw also covered the news.

Warren K. Racusin, Chair of the firm’s Trusts & Estates practice, is quoted in Bloomberg Wealth on the proposed billionaire’s tax, which focuses on those with assets totaling over $1 billion or incomes of $100 million for three consecutive years. Racusin says that, because billionaires can afford the most sophisticated tax advice, “[t]he lawyers and accountants are going to be winners in this.” He also warns that Congress could expand the tax to include a larger portion of the wealthy population: “It’s easy to cross out $1 billion and enter $250 million.” However, “another big winner in this is going to be charity,” he says, because the proposed legislation still allows generous gifts to nonprofits and charitable foundations. Racusin’s comments are also featured on ForexTraders.com.

Warren K. Racusin, Chair of the firm’s Trusts & Estates practice, speaks with Private Wealth (a Financial Advisor publication) and Financial Planning about the potential impact of the proposed Build Back Better Act on a variety of estate planning vehicles, such as grantor trusts and irrevocable life insurance trusts.

In Private Wealth, Racusin explains that, in some instances, the proposed changes may result in higher costs to owners or heirs of a trust, thereby eliminating the core reason for creating the trust. Because the proposed changes cut in half the per-spouse gift and estate tax exemptions, Racusin says, “[I]nvestors need to be thinking about their options now.” He advises, “There will be no one-size-fits-all solution to the tax options once the bill is enacted, but individuals and their advisors need to be doing a risk-benefit analysis now.”

In Financial Planning, Racusin also addresses the challenges of wealth planning while the final details of the proposed law remain undetermined: “It’s kind of like an architect telling a builder, ‘hey, I need you to build this house right now, I don’t have the plan, but you need to start building it right away.’”

The arrival to Lowenstein of partners Edmund S. Cohen and Rachel Ingwer and counsel Scott Malone to the firm's Tax practice is noted in CPA Practice Advisor, General Counsel News, The Daily Docket, Law Fuel, Bloomberg Law, The American Lawyer, and the New York Law Journal. The lawyers will work closely with the firm’s Investment Management, Family Office, Private Equity, and Mergers & Acquisitions teams on sophisticated transactions and disputes. View Lowenstein's news announcement about these lawyers' arrival to the firm.

Michael P. Vito's return to Lowenstein as a partner in the Trusts & Estates group is noted in The Daily Docket, Bloomberg Law, General Counsel News, The Washington Post, and ICLG. View Lowenstein's news announcement about Vito's return to the firm.

Doreen M. Edelman, Chair of the firm’s Global Trade & National Security group, discusses in Law360 anticipated trade issues for the incoming administration, such as the digital service tax programs increasingly imposed in Europe that are stirring controversy among Silicon Valley companies. "Digital taxes will also be discussed [with the EU], and the Biden administration will want to be part of a multilateral deal," Edelman predicts. "Biden likes to make all sides appreciate the deal, which may be difficult."

Laura Fraedrich's arrival to Lowenstein Sandler's Washington, D.C., office as senior counsel in the firm's Global Trade & Policy practice is noted in Bloomberg Law, General Counsel News, The American Lawyer, and The Washington Post. View Lowenstein's news announcement about Fraedrich's arrival to the firm.

Michael N. Gooen, Co-chair of the Family Office Practice, was involved in the research phase of a study by the Jewish Communal Fund (JWF) on multigenerational, ultra-high net worth families who face challenges passing down their wealth to the next generation. JWF surveyed financial advisors, attorneys, and service providers on proven strategies for bridging generational divides and creating sustainability in the client-advisor relationship. Gooen advises families to “[l]ook for areas of agreement and synergies to focus on and try to spark interest rather than dictating.”

Doreen M. Edelman discusses the increase in CFIUS filing requirements and regulatory scrutiny that private equity firms face for deals involving foreign capital in Fundfire. She notes the reputational impact for companies in addition to the risk of civil and criminal penalties. Edelman says, “[If] you cannot find a way to mitigate with the U.S. government and unwind your deal to a certain extent to reduce the national security issue, you can have to divest, or the foreign party could have to divest from the U.S. business. … It’s just time, money, and embarrassment." (subscription required to access article)

Doreen M. Edelman is quoted in The Wall Street Journal’s article on calls to delay or roll back tariffs during the COVID-19 pandemic, which are currently being determined on a case-by-case basis. She notes: “Having a tariff that is intended to punish China, but is being paid for by middle-America consumers who may currently be out of work, seems unfair at best and counterproductive.” (subscription required to access article)

The arrival of former U.S. Treasury national security lawyer Christian C. Contardo to Lowenstein’s Global Trade & Policy practice in the firm’s Washington, D.C., office is noted in Bloomberg Law, Washington Business Journal, General Counsel News, The Washington Post, Reuters, and The Deal. Contardo has over a decade of experience in federal agencies such the Department of Homeland Security, Immigration and Customs Enforcement, and Treasury, including with the Office of Foreign Assets Control (OFAC) and the Committee on Foreign Investment in the United States (CFIUS). 

In Tax Notes, Doreen M. Edelman comments on requests made by U.S. trade groups asking the Trump administration to remove section 301 tariffs in light of the financial uncertainty surrounding the coronavirus pandemic; she notes that exclusions alone may not be sufficient to help U.S. businesses. “These tariffs were intended to hurt China, but trade policy experts knew when the announcement was made that the administration was mixing apples and oranges," she says. "The companies were to 'take one for the team' and take the long view that the policy to alienate China was a good policy. The effect of the virus on retail companies will put the icing on the cake for retail companies.”

Doreen M. Edelman contributes her 2020 predictions on potential legal issues in international trade in Law360. She notes that the Commerce Department has still not developed guidance on a rule, announced in 2018, on which “emerging and foundational technologies” are subject to export controls. She warns that, to date, many owners and developers of, and investors, in technology such as artificial intelligence, 3-D printing, quantum computing, and robotics “have not focused on export control requirements for these technologies. … Thus, these companies must quickly learn when export controls apply” to them to ensure compliance. (subscription required to access article)

Max Karpel's arrival at Lowenstein as a partner in the Investment Management group is noted in Bloomberg Law – Big Law Business, General Counsel News, NJBIZ, Reuters, and The Deal. (subscription required to access certain content) View Lowenstein’s news announcement about Karpel joining the firm.

Lowenstein’s 2019 promotion of seven lawyers to partner and six to counsel (including three women in each category) is noted in Bloomberg Law – Big Law Business. These promotions are also highlighted in LawFuel, The Deal, and the Commerce and Industry Association of New Jersey’s (CIANJ) Business Beat newsletter, with Lesley P. Adamo, Dmitry Andreev, Marc S. Kurzweil, James B. O’Grady, Eileen Overbaugh, Peter Slocum, and Julie Levinson Werner highlighted as newly elected partners and Brandon Fierro, Joseph G. Jones, Robert Lynn, Brianne Perlman, Nedda N. Salehi, and Leah Satlin listed as promoted to counsel. Gary M. Wingens is quoted regarding the critical role these lawyers will play in the firm’s continued success. Law360 notes our partner elevations in an article highlighting firms' Q1 promotions. (subscription required to access certain content) View Lowenstein’s news announcement about these promotions.

David M. Wissert and Amy Komoroski Wiwi‘s recent article in The Financial Manager, highlighting the steps employers can take to both prevent and address sexual harassment in the workplace as a result of the #MeToo Movement, was featured in TVNewsCheck. These steps include: examining the company culture, ensuring company policies are strong and widely communicated to all employees, providing training, conducting investigations when necessary, acting and communicating quickly, and considering an investment in employment practices liability (EPL) insurance policies to mitigate risk.

Christopher Porrino discusses the recent audit of the New Jersey Economic Development Authority (EDA) and advises companies that received EDA grant incentives to ensure that they have complied with all requirements to prevent clawback claims. In an interview with ROI-NJ, Porrino provides insight into his time working closely with the EDA while New Jersey Attorney General, sharing his understanding of the EDA’s procedure and missteps that can happen along the way. He emphasizes that it is important to have someone who understands state government, the interplay between the AG’s office and the EDA, and the compliance requirements of grants, noting Paul B. Matey’s work with the Governor’s office. Porrino notes the priority of this audit for the EDA and the AG’s office, and stresses that companies should ensure that required thresholds are met and adjustments for disclosure are made prior to a visit from the AG’s office.

Patently-O notes Kevin O. Grange, Benjamin A. Kimes, Cicero H. Brabham Jr., Joseph G. Jones, Sam Noel, Steven K. Tam, and Jonathan Wolfsberger as recipients of USPTO 2017 Patent Pro Bono Achievement Certificates in recognition of extensive pro bono patent services provided to inventors and others with limited resources.

Law.com quotes R. Scott Thompson, lawyer for Sally DeLorean and the estate of her late husband, auto executive John DeLorean, regarding their litigation against the DeLorean Motor Co. for royalties improperly collected from Universal Pictures. (subscription required to access article)

Scott B. McBride comments in the Report on Medicare Compliance on evidence of kickback arrangements in recent health care fraud cases.

In the New Jersey Law Journal, Scott McBride discusses the qualifications of an ideal candidate to be selected as U.S. attorney.

NJ Spotlight profiles Jeff Wild and his advocacy for the homeless through his representation of the residents of a Lakewood, New Jersey, tent city and the NJ Coalition to End Homelessness, a nonprofit organization Jeff founded to combat homelessness throughout the state.