Guide to Estate, Tax, and Financial Planning with Stock Options (2006) - Softcover

Carol Cantrell

Softcover

ISBN 10: 0808089439 ISBN 13: 9780808089438

Publisher: CCH, 2005

Synopsis

The unique features of stock options have spawned numerous questions over how and when they are taxed, valued, and recorded for financial statement purposes. Disputes also arise over what government entity has jurisdiction to tax them, who has a legitimate claim to them in death, divorce, and bankruptcy, and whether they can be transferred at all. Until now and the publication of "Guide to Estate, Tax and Financial Planning with Stock Options," the market has not had such comprehensive cradle-to-grave coverage of the tax, estate, and financial issues that can confront a person with stock options. The author was inspired to write the book after her client for whom she had just prepared a 20-year cash flow projection, died suddenly of cancer at the age of 57. He left behind his wife who was a schoolteacher, his two college-bound children -- and four million dollars of unexercised stock options. None of his advisors knew what to do. This able group included his money manager, his lawyer, trust officer, and the human resources administrator at his job. Instead, they all looked to the author, his CPA. There were so many questions and so few answers. Guide to Estate, Tax and Financial Planning with Stock Options provides the answers. In addition, it raises many more questions for which there are no clear answers. It is a comprehensive guide for estate, tax, and financial planners who advise clients about employee stock options, human resources personnel are who presumed to know all about these important benefits, and for insiders who must know these things. Finally, it is also for the inquisitive-minded individual who wants to maximize the value of his or her stock options in a number of different life circumstances. This book offers a comprehensive source of up-to-date information about the major tax and financial areas affecting stock options. It gives practical advice for dealing with options through its many examples, planning notes, and forms designed for a quick understanding and easy application of the principles. The subject areas span many professional disciplines. Therefore, most practitioners will be familiar with some, but certainly not all of the areas. Nonetheless, clients with stock options will surely encounter the majority of these issues at some time during their life. For many of these clients, stock options are their largest and most important asset. Thus, the Guide fills the educational gaps for the practitioner and his or her client where answers are to be had. And where questions remain unresolved, it offers a useful starting point in research. · Coverage of the new lattice valuation models for stock options, a sample valuation and a comparison to Black-Scholes · Explanation of how the IRS might apply the new IRC Section 409A deferred compensation rules to non "plain vanilla" stock options · Discussion of new opportunities to convert stock option gains to a deferred compensation plan under IRC Section 409A · Analysis of the impact of FAS 123(R)’s option expensing requirement on an employer’s decision to modify existing stock options or adopt new plans · Coverage of new opportunities for issuing options on partnership entities under IRS proposed regulations on partnership interests granted for services · Inclusion of updated examples of regular and AMT planning opportunities and pit falls with 2005 tax rates and exemptions

About this title

About the Author

Carol Cantrell graduated cum laude from the University of Texas in Austin with a Bachelor of Arts in mathematics. She began her career in public accounting in 1974 with Ernst & Young (formerly Arthur Young & Co.), and left there after becoming a CPA to form her own accounting firm in 1976. She has been self-employed since that time with her husband as her partner. Carol and her husband merged their practice with Briggs & Veselka Co. in 2000 to become the eleventh largest CPA firm in the Houston area. At the firm, Carol concentrates on financial planning for corporate executives, families, retirees, and the elder population. She specializes in stock options, trusts, partnerships, and estate taxes. She is also a frequent speaker for Texas bar organizations, CPA societies, and financial planning groups. She has published numerous articles ncluding "Compensation, Distributions, Withdrawals, and Other Income Tax Problems of the Mature FLP," 2003 State Bar of Texas Advanced Estate Planning & Probate Course; "Income Taxation of Estates & Trusts Including the Impact of the New Texas Uniform Principal and Income Act," 2002 Houston Bar Probate, Trusts & Wills Section; "Stock Options--Planning in a New Tax & Economic Climate," 2001 FPA Annual Financial Planning Symposium; "Stock Options--A New Challenge for Estate Planners," 2000 State Bar of Texas Advanced Estate Planning & Probate Course and 1999 National Association of Stock Plan Professionals Annual Conference; "Practical Income Tax Guidance On Forming, Operating, and Liquidating Your Family Limited Partnership," 1998 State Bar of Texas Advanced Estate Planning & Probate Course; "Income Tax Considerations in Administering Estates & Trusts," 1998 University of Texas 46th Annual Taxation Conference; "Financial Planning, The Industry, The Process, and a Special Focus on Retirement Planning," 1995 Disability and Elder Law Attorney's Association; "Living and Dying with the Complex Rules of Incentive Stock Options," Journal of Taxation, August 1997. At the age of 48, Carol fulfilled a life long goal and began law school at the University of Houston Law Center. It was during her years in law school that she wrote this book. She graduated cum laude 2003, passed the Texas bar in 2004 and is admitted to practice law in Texas, the United States Tax Court, and the United States Court of Appeals for the Fifth Circuit. She looks forward to the next phase of her career as she applies her legal skills to enhance her financial planning practice at Briggs & Veselka Co.

Edition details

• Publisher: CCH
• Publication date: 2005
• Language: English
• ISBN 10: 0808089439
• ISBN 13: 9780808089438
• Binding: Paperback
• Number of pages: 824