1. finance
2. personal finance
3. financial planning
4. estate planning

WWW.HITAXINSTITUTE.ORG
WELCOME
Practitioners interested in keeping abreast of the latest developments in tax and wealth
transfer matters are certain to welcome the opportunity to participate in the
51st Anniversary Hawaii Tax Institute sponsored by the Hawaii Tax Institute Foundation
and Chaminade University of Honolulu. This year’s program will combine the far-reaching
experience of its distinguished panel of recognized tax and wealth transfer authorities
with a positive approach to current and practical subjects.
While the Institute is designed primarily to serve as a forum where tax and wealth transfer
oriented people may freely exchange ideas on practical problems, professional status is
not a prerequisite for registration. This program is designed for attorneys, accountants,
financial planners, bank and trust administrators, insurance agents,
non-profit administrators and others who would benefit from high quality continuing
education. A high level of learning has been the hallmark of prior Institutes and we shall
endeavor to again maintain this standard.
The Hawaii Tax Institute Foundation and Chaminade University of Honolulu do NOT
discriminate against any person on the basis of race, color, sex, sexual orientation,
religion, age, national or ethnic origin, political beliefs, veteran status, or physical disability
in admission to, access to, or employment in its programs and activities.
For additional information, please contact the Hawaii Tax Institute Foundation at
(808)-540-3931.
Hawaii Tax Institute Foundation • P.O. Box 1381 • Honolulu, Hawaii 96807 • (808) 540-3931
www.hitaxinstitute.org
PAGE 1
H AWAII TAX INSTITUTE COMMITTEE AND MEMBERS
IN S T IT U T E A DV IS O RY C O MMI TTE E
James W.Y. Wong
Rosemarie S.J. Sam
Organization Director Emeritus
Certified Public Accountant
Attorney
Goodsill Anderson Quinn & Stiefel
Charles K.H. Au
Scott J.N. Schroeder, Ph.D.
Certified Public Accountant
Erwin Cabrinha & Au, LLP
Chaminade University of Honolulu
Thomas G. Cabrinha
Certified Public Accountant
Shea & Company, CPA’s, Inc.
Certified Public Accountant
Erwin Cabrinha & Au, LLP
Rachel Hanlon
Senior Vice President
Wealth Management Office Manager
Bank of the West
Kurt K. Kawafuchi
Attorney
Hochman Salkin Rettig Toscher
& Perez, P.C.
Melanie King
Certified Public Accountant
Russell Morgan
Phyllis N.T. Shea
Douglas D. Wilson
Principal
Trustee Consulting, Inc.
Vera Wright
Tax Manager
Bank of Hawaii
Alan M.L. Yee
Certified Public Accountant
KMH, LLP
Alan T. Yoshitake
Attorney
Seyfarth Shaw LLP
Vice President
First Hawaiian Bank
(Dick) Isoo Oshima
Certified Public Accountant
Oshima Company CPA LLC
H O N O R A RY M E M B E R S
Roy M. Adams
Gordon D. Henderson
Attorney
New York, NY
Attorney
Weil, Gotshal & Manges LLP
New York, NY
N. Jerold Cohen
Attorney
Sutherland Asbill & Brennan LLP
Atlanta, Georgia
George Freitas (Deceased)
Retired Director
Department of Taxation
State of Hawaii
Jack S. Levin
Attorney, CPA
Kirkland & Ellis LLP
Chicago, Illinois
Martin D. Ginsburg (Deceased)
Professional/Attorney
Georgetown University Law Center
Counsel to Fried, Frank, Harris,
Shriver & Jacobson, LLP
Washington, DC
PAGE 2
HAWAII TAX INSTITUTE SPONSORS
Hawaii Tax Institute Foundation and Chaminade University of Honolulu gratefully acknowledge
the generous contributions of the following sponsors:
Bank of Hawaii
Bank of Hawaii has the largest and most experienced trust department in the
State of Hawaii and offers fiduciary and family services, including banking,
investments, tax, financial planning, real estate, charitable foundations and
retirement planning.
Bank of the West
Bank of the West Wealth Management Group provides financial products
and services through Bank of the West and its various affiliates and
subsidiaries. The group is part of BNP Paribas’ global wealth management
business of more than 6,000 professionals in 30 countries.
Bernstein Global Wealth Management
Research is the basis of our ability to prudently manage the assets under our
care; it is also the foundation of the full array of investment products, both
global and local, that Bernstein offers.
Bessemer Trust
Founded in 1907, Bessemer Trust is a privately owned wealth and investment
management firm that focuses exclusively on ultra-high-net-worth families
and their foundations and endowments. Bessemer oversees $97.5 billion
for approximately 2,200 clients and provides an integrated approach to the
investment, trust, estate, tax, and philanthropic needs of our clients.
Bonhams
The Bonhams Group is a growing international auction house, offering more
sales than any other firm in the industry, hosting over 700 auctions per year
in every conceivable collecting category.
ECA LLP
A Certified Public Accounting Firm committed to working with their clients
to find practical business solutions to financial and related business
challenges.
Fiduciary Trust International
Since 1931, Fiduciary Trust Company International has provided integrated
wealth management to individuals, families, foundations and endowments
around the world.
First Foundation
First Foundation, a financial institution since 1990, provides integrated
investment management, wealth planning, consulting, trust, banking and
insurance services. The company is headquartered in Irvine with offices
in Irvine, Newport Beach, Pasadena, West Los Angeles, San Diego, Palm
Desert, Imperial Valley in California, and Las Vegas, Nevada.
First Hawaiian Bank
With over 150 years of experience, First Hawaiian’s Wealth Management
Group serves as a trusted advisor, helping clients grow, preserve, and
transfer their assets to future generations.
KMH LLP
KMH LLP, is dedicated to providing high quality professional service and
guidance for all accounting and business consulting needs.
Merrill Lynch
One of the world’s leading wealth management, capital markets and advisory
companies, with offices in 40 countries and territories and total client assets
of approximately $1.6 trillion.
Morgan Stanley
Morgan Stanley is dedicated to serving investors worldwide. We offer
tailored solutions designed to help you manage your long-term wealth as
well as customized investment solutions and services for individuals of
substantial means, families and foundations. Whatever your needs, we are
here to help you to succeed.
Schiff Hardin LLP
From its very inception, Schiff Hardin’s focus has been on counseling and
growing with business and corporate clients. Schiff Hardin began counseling many of its current banking and industrial clients in the 1870s and 1880s.
Seyfarth Shaw LLP
A full-service law firm serving clients throughout the globe. The Firm’s
growth is the result of a deliberate strategy to meet the clients’ need for
coordinated, high-quality legal representation in a global economy.
South Dakota Trust Company LLC
South Dakota Trust Company LLC, with more than $9.5 billion in assets under
administration, works with clients globally providing cost-effective, serviceoriented trust administration utilizing South Dakota law.
Strategic Valuation Group, LLC
SVG is a full service valuation firm, which provides valuation opinions for
businesses, real estate, and intangible assets. Our professionals have
significant experience in performing appraisals for estate and gift tax
matters, litigation support, mergers and acquisitions, financial reporting,
ESOPs, and other matters.
The Strauss Law Firm
The Strauss Law Firm is devoted to helping our clients protect and provide
for their loved ones. We believe in cultivating long-term relationships built on
trust and professionalism, and in offering our clients cutting-edge solutions
in captive insurance, asset protection planning, estate and tax planning, and
corporate and securities law.
Zions Bank
Zions Bank organized in 1873, provides Ownership Recordkeeping services
that help manage the ownership and shareholder records of companies. Our
affordable solution provides management and shareholders access at their
convenience. We act as an independent agent through our trust department.
HAWAII TAX INSTITUTE FACULTY
STEPHEN R. AKERS, Attorney
KURT K. KAWAFUCHI, Attorney
CHARLES “CLARY” A. REDD,
Bessemer Trust
Dallas, Texas
Hochman, Salkin, Rettig,
Toscher & Perez, P.C.
Beverly Hills, California
Attorney
Stinson Leonard Street LLP
St. Louis, Missouri
WILLIAM H. ATHA, II
Family Wealth Director
Morgan Stanley
Honolulu, Hawaii
AL W. KING, III, Attorney
South Dakota Trust Company
Sioux Falls, South Dakota
JOHN F. BERGNER, Attorney
STEPHAN KING, CPA
Winstead PC
Dallas, Texas
Stephan King PC
Scottsdale, Arizona
ANDREW D. COPANS, Attorney
McDermott Will & Emery
Los Angeles, California
ROBERT K. KIRKLAND, Attorney
ROBERT N. DURAN, Attorney
Semper Law Group, PC
Los Angeles, California
JUDY Y. LEE, Attorney
STACY S. EASTLAND, Attorney
Goldman Sachs
Houston, Texas
PAM ELLING, CPA
Moss Adams LLP
Eugene, Oregon
EILEEN GALLO, Ph.D
Gallo Consulting
Los Angeles, California
JOLINE GODFREY, President
Independent Means Inc.
Santa Barbara, California
ARNOLD H. GOLD, Judge
Alternative Resolution
Centers, LLC
Los Angeles, California
DAVID GUSTAFSON, Judge
United States Tax Court
Washington, D.C.
Kirkland Woods & Martinsen PC
Liberty, Missouri
Goodsill Anderson Quinn &
Stifel LLP
Honolulu, Hawaii
PAUL LEE, Attorney
Bernstein Global Wealth
Management
New York, New York
CONSTANCE LIU, Attorney
Schiff Hardin LLP
San Francisco, California
STEPHANIE LOOMIS-PRICE,
Attorney
Winstead PC
Houston, Texas
JONATHAN LURIE, Attorney
McDermott Will & Emery
Los Angeles, California
THERESA M.H. MARX, Attorney
Schiff Hardin LLP
Chicago, Illinois
EDWARD J. McCAFFERY,
LEE HAUSNER, Ph.D
First Foundation Advisors
Los Angeles, California
Professor
USC School of Law
California Institute of
Technology
Los Angeles, California
MICHAEL J. JONES, CPA
FLORENCE NAKAKUNI,
Thompson Jones LLP
Monterey, California
JOHN T. ROGERS, JR.,
Attorney
Seyfarth Shaw LLP
Los Angeles, California
BRUCE S. ROSS, Attorney
Holland & Knight
Los Angeles, California
VICTOR SONG,
Former Chief of IRS
Criminal Tax Division
Washington, DC
PETER J. STRAUSS, Attorney
The Strauss Law Firm, LLC
Hilton Head Island, South
Carolina
DAVID W. TRADER, M.D.
Southern California Psychiatric
Group
Los Angeles, California
STEVEN E. TRYTTEN, Attorney
AFRCT, LLP
Pasadena, California
SUSAN von HERRMANN,
Attorney
Schiff Hardin LLP
San Francisco, California
MARK VORSATZ, Attorney
WTAS LLC
San Francisco, California
LESLIE WRIGHT, Vice President
Bonhams
Los Angeles, California
DAVID R. YORK, Attorney
York Howell
Salt Lake City, Utah
ALAN T. YOSHITAKE,
U.S. Attorney
United States Dept. of Justice
Honolulu, Hawaii
Attorney
Seyfarth Shaw LLP
Los Angeles, California
JEFFREY N. PENNELL, Professor
RANDY L. ZIPSE, Attorney
ANDREW M. KATZENSTEIN,
Attorney
Proskauer Rose LLP
Los Angeles, California
PAGE 5
Emory University School of Law
Atlanta, Georgia
Prudential
Newark, New Jersey
HAWAII TA X INSTITUTE PROGRAM
sunday, November 2New Pre-Conference Workshops
12:00 pm – 1:00 pmEarly Registration
1:00 pm – 4:30 pm
Pre-Conference Great Families Program
This innovative and comprehensive five-stage program is designed to teach
families and Wealth Transfer Advisors the financial and human capital education
process. The program will identify what families and Wealth Transfer Advisors
throughout the country are doing to teach and transition wealth across
generations and through each stage of life. Participate in an introduction to
effective financial and beneficiary education strategies for young children
(ages 5-12), tweens/teenagers (ages 13-18), college students and young adults
(ages 19-35). The program includes over 30 customizable, experimental modules
appropriate to each stage of the life cycle.
Joline Godfrey, President
1:00 pm – 4:30 pm
Pre-Conference Fiduciary Taxation Program
A comprehensive and interactive presentation on the generation skipping transfer
tax (identification of issues, contributions, taxable termination and distributions,
partially taxed GST Trusts), estate tax (portability, filing issues, relief provisions,
state estate tax issues), accounting income (simple/complex trust issues, net
investment income tax, capital gain distributions), QSST/ESBT and 754 elections
(election and changes), state filing requirements (residency issues, property tax,
transfers). This session will feature hands-on training with forms.
Pam Elling, CPA
Stephan King, CPA
4:30 pm – 5:00 pm
Questions and Answers
MONday, November 3
6:30 am – 8:00 amRegistration and Continental Breakfast
8:00 amOfficial Welcome
8:00 am – 9:30 amRecent Developments and Current Trends Facing Wealth Transfer Advisors
An overview of significant changes in wealth transfer taxes that have occurred in
the past few years and a look at pending legislation. Keep on top of current trends
and developments that will affect all Wealth Transfer Advisors and their clients.
Jeffrey N. Pennell, Professor
(Presented Remotely)
9:30 am – 9:45 amBreak
9:45 am – 10:45 amStay Linked with Your Clients by Helping Them Forever Friend Their
Digital Property
Learn how issues surrounding “digital property” are coming at all Wealth Transfer
Advisors and their clients like a runaway train. Analyze how the Uniform Law
Commission and State Agencies are addressing these issues. Better understand
what is digital property, what planning strategies work and don’t work and what
steps fiduciaries and all Wealth Transfer Advisors must take to protect it.
Robert K. Kirkland, Attorney
John T. Rogers, Jr., Attorney
10:45 am – 11:00 am
Questions and Answers
PAGE 6
HAWAII TA X INSTITUTE PROGRAM
11:00 am – 11:45 amOh What a Relief it Is: Curing Estate Plans that No Longer Make Sense in Light
of the American Taxpayer Relief Act of 2013
As a result of ATRA, the federal wealth transfer tax system is no longer relevant
to most taxpayers and less relevant to the rest. For most taxpayers it will be more
important to plan for reducing income taxation than for reducing transfer taxation.
Typical estate planning transactions that may have once been appropriate for
a client may be less so in the post-ATRA world. This presentation explores how
clients can escape from the no-longer-useful (or perhaps harmful) estate planning
transaction or more efficiently administer those from which they cannot escape.
John F. Bergner, Attorney
11:45 am – 12:00 pm
Questions and Answers
12:00 pm – 1:30 pmLuncheon: Tax Court Policies, Programs and Recent Developments
The Honorable David Gustafson
Tax Court Judge
1:30 pm – 2:45 pm
Putting It All Together – The Best Planning Strategies in the New Frontier that
Reduce Both Income Taxes and Transfer Taxes
A fascinating discussion about planning strategies that lower your clients’ potential transfer taxes and reduce the net tax effect a sale of any assets subject to estate planning may have, including: various borrowing, location, disregarded entity,
grantor trust, QSST, mixing bowl and charitable planning strategies. This session
will also explore various strategies that reduce a complex trust’s income taxes,
indirectly benefit grantor GST trusts with a Roth IRA conversion, and enhance the
basis of a surviving spouse’s assets.
Stacy S. Eastland, Attorney
2:45 pm – 3:00 pm
Questions and Answers
3:00 pm – 3:30 pmBreak: Aloha Ice Cream Social
3:30 pm – 4:30 pm
Figuring Out the Lifetime Puzzle of Qualified Plans, Traditional IRAs and
ROTH IRAs
A comprehensive analysis of how qualified plans are structured, how they
operate, requirements during life, minimum distribution rules for owners,
beneficiaries and trusts, special planning for ROTH IRAs, how to complete a
beneficiary designation, creditor protection considerations, special rights, special
planning for blended families and much more.
Steven E. Trytten, Attorney
4:30 pm – 4:45 pm
Questions and Answers
4:45 pm – 6:15 pm
The Sale of the Los Angeles Clippers; A Sterling Dilemma of Competency,
Trust Powers and Contract Rights with the NBA
Ever think the sale of a National Basketball Association franchise – The Los
Angeles Clippers – would ever involve the everyday principles that Wealth
Transfer Advisors encounter? Learn about how ordinary trust provisions are
examined and implemented in the midst of a dispute about competency, contract
rights and the sale of a Two Billion Dollar asset.
Arnold H. Gold, Judge
Edward J. McCaffery, Professor
David W. Trader, M.D.
Alan T. Yoshitake, Attorney
6:15 pm – 6:30 pm
Questions and Answers
PAGE 7
Tuesday, November 4
7:00 am – 8:00 am
Continental Breakfast
8:00 amSpecial Presentation: Tribute to the late Jon Gallo (1942 - 2014)
8:00 am – 9:15 am
Venn Diagrams: The Intersection of Estate and Income Taxation
Post-ATRA planning will increasingly focus on income tax planning, the
management of tax basis, and maximizing the “step-up” in basis at death.
This presentation will discuss: measuring the transfer tax costs (including
state estate and inheritance taxes) against the income tax savings from the
“step-up” on different types of assets; recapturing assets that have already
been transferred; multiplying the applicable exclusion amount; using trust and
partnership elections, distributions, and reorganizations to maximize the “stepup” and “split” income across taxpayers; and using debt to reduce estate tax
exposure but maximize the “step-up.”
Paul Lee, Attorney
9:15 am – 9:30 am
Questions and Answers
9:30 am – 10:30 am
Dealing with the “Family” in Setting Up and Maintaining a Family Limited
Partnership or Family Limited Liability Company
Explore the fundamental issues in setting up and operating a family limited
partnership or family limited liability company. Better understand that once
these planning vehicles are set up and operating, the family members need
to deal with each other and the day to day issues of operation, disclosure,
reporting and maintenance.
Lee Hausner, Ph.D
Jonathan Lurie, Attorney
10:30 am – 10:45 am
Questions and Answers
10:45 am – 11:00 amBreak
11:00 am – 11:45 am
Valuation Summit: The IRS, Valuation Issues, Penalties and Celebrity Estates
Explore the dynamics of valuations, discounts and using liability offsets
which are at the epicenter of certain celebrity estates. This fascinating
panel presentation will analyze the fluidity of valuation, reporting and dispute
resolution from vastly different perspectives.
The Honorable David Gustafson, Tax Court Judge
Kurt K. Kawafuchi, Attorney
Stephanie Loomis-Price, Attorney
Leslie Wright, Vice President
11:45 am – 12:00 pm
Questions and Answers
12:00 pm – 1:30 pmLuncheon: Obama Tax Policy, Legacy and Its Effects
Edward J. McCaffery, Professor
PAGE 8
HAWAII TA X INSTITUTE PROGRAM
TRACKS: Fiduciary, Financial or Tax
1:30 pm – 2:20 pm
Fiduciary Track IRS Audit Alert: Dancing with the Taxman and Defending Transfer Tax Returns
with Closely Held Interests
With federal budget deficits and funding restrictions comes targeted scrutiny by
the IRS of transfers of a Closely Held Interest. This session will identify the issues
that are being audited, documentation generally requested, how to respond to the
IRS and how to move the IRS off the hot button issues.
Stephanie Loomis-Price, Attorney
Financial TrackAll You Wanted To Know about Administering Grantor Retained Annuity Trusts
(GRATs) but Were Afraid To Ask
Administration of a GRAT after its creation will determine whether you optimize its
performance and actually achieve your client’s objectives. This session will discuss
practical issues that arise once the GRAT is funded, including gift and GST tax
reporting and elections, substitutions of trust assets, best options to satisfy annuity
payments, the effect of the 105-day grace period, related valuation questions
and relevant securities law requirements. Learn about recent IRS audit activity
examining GRATs and “exit” strategies when the GRAT is underperforming/or
overperforming, or to address the grantor’s mortality.
William H. Atha, II, Family Wealth Director
John F. Bergner, Attorney
Tax Track
The Nuts and Bolts of IRC Section 1031 Like-Kind Exchanges
Understanding the opportunities of a simultaneous and deferred like-kind exchange
is becoming more essential in today’s wealth transmission process. Explore what
properties qualify for this tax benefit, how to structure, qualify and document the
transaction, what are the pitfalls, and how to use the deferral of income taxation in
an overall strategy of transferring your client’s wealth.
Robert N. Duran, Attorney
2:20 pm – 2:30 pm
Questions and Answers
2:30 pm – 3:20 pm
TRACKS: Fiduciary, Financial or Tax
Fiduciary TrackRespect Your Elders; Ethical Considerations, Representing Clients with
Diminishing Capacity, What To Do and How To Do It
With an aging baby boomer population and client base comes a likelihood of
diminishing capacity and greater susceptibility to undue influence. This session
will discuss how to recognize a client whose capacity is diminishing, where are the
lines in the sand and what a wealth transfer advisor is to do in between the lines.
CPE/Legal Ethics Credit available. Arnold H. Gold, Judge
John T. Rogers, Jr. , Attorney
David W. Trader, M.D.
Financial Track
Post Death Administration of Qualified Plans, Traditional IRAs and Roth IRAs
The presentation will focus on what needs to be done with Qualified Plans, IRAs
and Roth IRAs after the participant dies. Explore what type of accounts result from
a death, what are the rules applicable to spouses and non-spouses with respect
to minimum distributions, how to administer a trust designated as a beneficiary
and coordinating tax apportionment. This session will have forms and a complete
checklist of what to do.
Steven E. Trytten, Attorney
PAGE 9
Tax TrackU.S. Estate and Gift Tax Planning for the Foreign Investor
This presentation will review the U.S. estate and gift tax rules that apply to
nonresident noncitizens (NRNCs), with a particular focus on those individuals who
have, or plan to have, investments in U.S. real estate and U.S. businesses. We will
explore the various alternatives for NRNCs to hold their U.S. investments and the
gift, estate and income tax rules associated with those alternatives upon a sale or
transfer of the U.S. investments during life or at death.
Constance Liu, Attorney
Theresa Marx, Attorney
3:20 pm – 3:30 pm Questions and Answers
3:30 pm – 4:00 pmBreak: Ohana Tea and Cookies
TRACKS: Fiduciary, Financial or Tax
4:00 pm – 4:50 pm
Fiduciary TrackEstate Planning for Clients $10 Million and under Estates
Estate planning for clients who may not be subject to transfer tax appears simple,
but it’s not. Default reliance on bypass/QTIP planning will no longer suffice.
Wealth Transfer Advisors will need to balance a client’s competing objectives of
control for the surviving spouse, asset protection, minimizing state estate tax and
using portability elections.
Stephen R. Akers, Attorney
Financial TrackUsing a Captive Insurance Company as a Wealth Transfer Strategy
With 60+ years of history, its own Internal Revenue Code Section, and over 65
Domestic and International Domiciles to choose from for licensure, this $200
Billion a Year industry only continues to grow in popularity and gain recognition
as a wealth transfer tool. This session provides an overview of captive insurance
companies, the establishment process and critical components, and focuses on
how your clients can realize the maximum insurance, asset protection, tax and
estate planning benefits this vehicle can offer.
Peter J. Strauss, Attorney
Tax Track
Practical Aspects of Portability in Planning and Administration
Because the estate tax applicable exclusion amount is now portable between
spouses, portability must now be given thoughtful regard in structuring estate
planning documents. After death, choices about portability must be made in estate
and trust administration about
whether and to what extent
portability should be elected.
Those choices mean evaluating
present estate tax and future
income tax characteristics of
each unique situation. Sample
election forms and
attachments will be analyzed.
Michael J. Jones, CPA
4:50 pm – 5:00 pm Questions and Answers
Sheraton Waikiki Helu
moa Playground
PAGE 10
HAWAII TA X INSTITUTE PROGRAM
Wednesday, November 5
7:00 am – 8:00 am
Continental Breakfast
8:00 am – 9:00 am
20 Things You Need To Know about Selecting a Trustee and
Selecting Trustee Powers
The presentation addresses non-tax factors in the selection of a trustee, and
addresses in detail gift, estate and income tax issues that arise with either the
settlor of a trust or a trust beneficiary serving as the trustee. The discussion
addresses both dispositive powers as well as administrative powers that may be
held by a settlor or beneficiary as trustee without causing a tax disaster. “Savings
clauses” may be helpful to avoid tax calamities by automatically limiting the
powers of trustees to avoid tax-sensitive powers.
Stephen R. Akers, Attorney
9:00 am – 9:15 am
Questions and Answers
9:15 am – 10:15 amBusiness Succession Planning for the Baby Boomer Generation – New Tools,
Opportunities and Issues
This session will focus on the changing views and attitudes between the Baby
Boomer Generation and prior generations when it comes to estate planning and
generational wealth transfer, especially as it relates to closely held business
interests. The session will review the changes that have occurred and why prior
motivators for estate planning, such as maximizing wealth transfer and minimizing
taxes, may not be as important as they have been in the past. The session will then
look at alternatives to the traditional estate planning model in light of these shifting
values and will also review new tools and techniques that are now available to
Baby Boomers with closely held business interests.
Eileen Gallo, Ph.D
Michael J. Jones, CPA
David R. York, Attorney
10:15 am – 10:30 amBreak
10:30 am – 11:45 am Practical Wealth Transfer Planning through Income Tax Glasses – What Should
You Be Doing Today!
Due to the drop in estate tax rates to 40% and the increase in capital gains tax
rates which, when taking into account federal, state and Obamacare’s 3.8%
tax, can be as high as 38%, traditional estate planning techniques to transfer
appreciation in assets may not accomplish any significant tax savings when the
loss of basis step-up is factored into the equation. This presentation will identify
situations where the loss of the basis step-up is irrelevant (so that traditional
estate planning techniques make sense), where the loss of the basis step-up
matters, how to recapture the potential lost basis step-up in the context of estate
plans already in place, and creative estate planning ideas that preserve the basis
step-up while still allowing appreciation to be transferred out of the estate to
avoid estate tax.
Andrew M. Katzenstein, Attorney
11:45 am – 12:00 pm Questions and Answers
12:00 pm – 1:30 pmLuncheon: U.S. Department of Justice Policies, Programs and Developments
Florence Nakakuni, U.S. Attorney
US Department of Justice
PAGE 11
1:30 pm – 2:20 pm
TRACKS: Fiduciary, Financial or Tax
Planning from the Grave – Wealth Transfer Strategies in the After Life
Fiduciary Track
Just because your client dies does not mean wealth transfer planning ends. Learn
about what planning techniques can be implemented when a client is on their
death bed and what can be done to minimize taxes and maximize benefits after a
client dies.
Andrew D. Copans, Attorney
Jonathan Lurie, Attorney
Financial Track
Key Considerations in How To and How not To Structure Domestic Asset
Protection Trusts (DAPTs) for Maximum Effectiveness
This session will discuss the critical building blocks and the best ways to structure
DAPTs for maximum protection based upon previous cases and existing statutes.
The Huber case will provide a case study of how not to do DAPT planning. Situs,
jurisdiction, public policy, alter ego, constitutional issues, fraudulent conveyances
and exception creditors will all be discussed as potential challenges to DAPTs. If
properly established and maintained, the glass is half full!
Al W. King, III, Attorney
Tax TrackAnnual Exclusion Gifting Strategies and Traps
Learn about the power of making annual exclusion gifts, how to design a strategic
lifetime plan and how to use annual exclusion gifts to incentivize good beneficiary
behavior. This session will also focus on the many traps for the unwary and how to
avoid them.
Charles “Clary” Redd, Attorney
2:20 pm – 2:30 pm Questions and Answers
TRACKS: Fiduciary, Financial or Tax
2:30 pm – 3:20 pm
Fiduciary Track
Doing the Right Thing: Everyday Ethical Considerations Facing All Wealth
Transfer Advisors and What To Do about Them
There are a wide variety of everyday ethical considerations facing Wealth
Transfer Advisors. Learn how to identify the ethical issues when they arise, what
standards apply, the different choices in dealing with them and the potential
exposure to liability for any Wealth Transfer Advisor.
CPE/Legal Ethics Credit available.
Bruce S. Ross, Attorney
Financial Track
Planning for the Modern Family – The Many Uses of Life Insurance in Your
Clients’ Wealth Transfer Strategy
As society evolves; families are living in different parts of the United States,
second marriages and blended families are on the rise, baby boomers are living
longer and families are accumulating more wealth than ever. Learn how to use life
insurance and related products to enhance your clients’ overall wealth transfer
strategies.
Insurance Credit available for CA and HI only.
Randy L. Zipse, Attorney
PAGE 12
HAWAII TA X INSTITUTE PROGRAM
Tax TrackUS Income Taxation of Nonresident Individuals and Foreign Corporations:
A View from the Forms File
The United States taxes nonresident individuals and foreign corporations on
US source investment and business income under highly technical rules and
regulations. This course brings the complex rules to ground through a review of
the IRS forms that taxpayers and withholding agents must use to report income
and information.
Robert N. Duran, Attorney
Kurt K. Kawafuchi, Attorney
Victor Song, Former Chief of IRS Criminal Tax Division
3:20 pm – 3:30 pm Questions and Answers
3:30 pm – 4:00 pmBreak: A Gathering – Wine and Cheese Sampling
TRACKS: Fiduciary, Financial or Tax
4:00 pm – 4:50 pm
Fiduciary TrackEstate, Tax and Financial Planning for Same-Sex Couples
after Windsor
It’s been more than a year since the United States Supreme Court held that samesex married couples have all of the rights and responsibilities of marriage under
federal law. Many states, including Hawaii, now allow same-sex couples to marry,
but many others do not. Even where marriage is available, not all couples are
choosing to take that step. This session will address various planning issues that
same-sex couples should consider during this turbulent time, and will include a
discussion of best practices in estate planning and the importance of premarital
agreements.
Susan von Herrmann, Attorney
Financial Track
Private Family Trust Companies – A New Tool of Governance and Control
This session will explore the reasons for, and use of, Private Family Trust
Companies for governance of family assets and resources. The session will
review the history of Private Trust Companies, similarities and differences
between Private Trust Companies and other more traditional governance models,
and the IRS’ position with respect to both regulated and unregulated Private Trust
Companies. The session will also review the various jurisdictions where Private
Trust Companies could be organized and operated.
David R. York, Attorney
Tax Track
2014 Hawaii Trusts and Estates Legislative Update
An overview of the legislation that passed this session as it relates to trusts,
estates and taxes. Learn about new legislation on (1) Uniform Power of Attorneys;
(2) Directed Trusts (3); Trustee Compensation; and (4) Estate and Generation
Skipping Tax and much more.
Judy Y. Lee, Attorney
4:50 pm –5:00 pm Questions and Answers
PAGE 13
Thursday, November 6
7:00 am – 8:00 am
Continental Breakfast
8:00 am – 9:00 amRecent Developments in Income Tax Planning – Things that All Wealth Transfer
Advisors Will Need To Know
An overview of the recently enacted and proposed legislation in income taxation
applicable to all Wealth Transfer Advisors including the 3.8% health care surtax
as it applies to individuals, and trusts and estates. As a result of the American
Taxpayer Relief Act of 2013, income tax planning is more important than ever. Keep
abreast of the changes and recent developments that will affect your practice.
Mark Vorsatz, Attorney
9:00 am – 9:15 am
Questions and Answers
9:15 am – 10:30 amA Fresh Look at Fiduciary Litigation
An overview of significant fiduciary duty principles that are constantly litigated.
Become better aware of the developments in the law of testamentary capacity
and undue influence; related remedies; intentional interference with expectancy;
financial elder abuse; aiding and abetting. Keep on top of the general trends and
the most recent developments that are occurring in litigation against fiduciaries
and Wealth Transfer Advisors.
Bruce S. Ross, Attorney
10:30 am – 10:45 amBreak
10:45 am – 11:45 am
The Future of Estate Planning, Fiduciary Services and Wealth Transfer Advisors
The world has changed for estate planners and fiduciaries in ways that recently
would have seemed unlikely, if not unfathomable, to most of us. New definitions of
“marriage” and “family,” historically high estate and gift tax exemptions, portability, enhanced beneficiary rights (and willingness to assert them), information
availability on demand, expansion of artificial intelligence uses . . . the list could go
on and on. This session will explore such questions as: How have estate planning
practices and the providing of fiduciary services evolved? Have the fundamental
purposes of estate planning and trust administration changed? Is the demand for
our services growing or shrinking? How will we adapt and, hopefully, thrive as we
go deeper into the new millennium?
Andrew M. Katzenstein, Attorney
Judy Y. Lee, Attorney
Charles “Clary” A. Redd, Attorney
11:45 am – 12:00 pm
Questions and Answers
12:00 pm – 1:30 pmLuncheon: IRS Criminal Tax Division Policies, Process and Insights
Victor Song, Former Chief of IRS Criminal Tax Division
PAGE 14
IMPORTANT INFORMATION
REGISTRATION: Register online or by mail.
Web site: www.hitaxinstitute.org
Mail: Hawaii Tax Institute, P.O. Box 1381, Honolulu, Hawaii 96807
CONTACT INFORMATION:
Phone: (808) 540-3931
Web site: www.hitaxinstitute.org
LOCATION: Sheraton Waikiki Resort will be the headquarters for the 51st Annual Hawaii Tax Institute.
HOTEL INFORMATION: Sheraton Waikiki Resort, while available until 5:00 p.m. local time on October 13,
2014, is offering a special run of the house room rate of $275 which includes City View, Mountain View,
Partial Ocean View and Ocean Front rooms, for all Hawaii Tax Institute participants. (866) 716-8109 or
www.sheratonwaikiki.com. Category assignment will not be known until the day of arrival and will be
dependent on the availability in each category on arrival day.
TRAVEL ACCOMMODATIONS: Carefree Tour and Travel is the official travel agency for the Hawaii
Tax Institute and is offering discounted airfare and car rental for all Hawaii Tax Institute participants.
Contact person is Gerri Yoshida at [email protected]; (808) 526-2222 (Ext. 107) – Telephone; and
(808) 523-2034 – Facsimile.
ity pool
Sheraton Waikiki infin
Sheraton Waikiki
HOTEL INFORMATION
Sleek and comfortable, the modern rooms of Sheraton Waikiki create a beautiful home where
tourists and business travelers can feel welcome throughout their trip. A number of dining options
allow guests and locals to enjoy great food choices or simply hangout, with Rum Fire among the
top options. Sophisticated accommodations feature plump furnishings and private balconies open
to stunning beach and mountain views.
• Popular hangouts in the hotel including Yoshiya, Edge of Waikiki, Ingredients, Kai Market
and Rum Fire
• 1.6 miles from University of Hawaii at Manoa
• 1 mile from Waikiki Aquarium
• Unique “super pool” plus adults-only infinity pool with plenty of chaise lounges and 2 spa tubs
• Sheraton Fitness Center by Core
• Limo or Town Car service available
• Valet parking
• High-speed internet access
PAGE 15
CONTIN U ING EDUCATION
CONTINUING EDUCATION CREDITS: Up to 40 hours (including the pre-conference session) of
continuing education Group-Live credits are available to attendees of the conference. Program Level:
Overview – Prerequisites: Generally familiar with estate planning principles – Advanced Preparation:
None – Recommended Field of Study: Taxes except for two workshops which are Behavioral Ethics.
This conference meets the educational requirements of many national/state organizations and
agencies with mandatory CLE/CPE requirements. Learning Objectives: Upon completion of the program,
participants will be able to identify, analyze and resolve practical estate planning, administration and
tax reporting issues.
ACCOUNTANTS/CPAs (CPE): This program meets the guidelines for Continuing Professional Education
set by the Hawaii State Board of Accountancy, State of Hawaii Insurance Division, and the National
Association of State Boards of Accountancy (NASBA). This program offers CPE ethics credits.
indicates CPE/Legal Ethics Credit available.
The Hawaii Tax Institute Foundation is registered with the National Association of State Boards of
Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry
of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual
courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National
Registry of CPE Sponsors through its website: www.learningmarket.org.
CERTIFIED FINANCIAL AND TRUST ADVISORS (CTFA): We have applied for credit with the Institute of
Certified Bankers – ICB qualified credits and approval are pending.
INSURANCE AGENTS: This program meets the guidelines for continuing education set by the State
of Hawaii, Dept. of Consumer Affairs – Insurance Division, and the California Dept. of Insurance. The
courses have been submitted and are pending approval, for Hawaii and California only.
indicates Insurance Credit available for HI and CA only.
FINANCIAL PLANNERS (CFP): The program meets the guidelines for CFP credits and the Hawaii Tax
Institute Foundation and Chaminade University are registered CFP Board CE Sponsors.
Note: This program does not offer CFP ethics credits.
LAWYERS (MCLE, VCLE, MCPE): The Hawaii Tax Institute Foundation and Chaminade University of
Honolulu are State of Hawaii and State of California approved MCLE providers, and certify that this
activity qualifies for MCLE credit. Continuing legal education credit has been applied for in every state
that has mandatory continuing legal education requirements and has been routinely granted for past
institutes, including Hawaii’s new VCLE and MCPE requirements.
indicates CPE/Legal Ethics Credit available.
LEGAL SPECIALIZATION (CALIFORNIA ONLY): The Hawaii Tax Institute Foundation and Chaminade
University of Honolulu, a State Bar of California approved Legal Specialization provider, certify that
this activity has been approved for Legal Specialization credit in Taxation law, and Legal Specialization
credit in Estate Planning, Trust and Probate law, and Legal Specialization of Current Developments.
Continuing legal education credit has been applied for in every state that has mandatory continuing
legal education requirements and has been routinely granted for past Institutes. In the past,
continuing education credit has also been available for other estate planning professionals, including
accountants, financial planners, banking and insurance professionals. We urge you to contact our
office in advance with questions regarding the availability of credit for a specific jurisdiction or
profession, as we cannot guarantee that credit will be available in all cases.
PAGE 16
REGISTR ATION INFORMATION
Qualification for Admission
The Institute serves as a forum for members of all professions dealing with tax, fiduciary, insurance,
non-profit and financial related issues. The program is designed for attorneys, accountants, bank and
trust administrators, financial planners, non-profit administrators and insurance agents. Anyone who
feels that the Institute will be of benefit is invited to register.
Location
Sheraton Waikiki Resort, Honolulu, will be the headquarters for the 51st Anniversary Hawaii Tax
Institute.
Registration
Registration fees for the 2014 Hawaii Tax Institute are noted in this program. Early registration or
indication of intent to register is encouraged. We offer government and student discounts. Mail-in
registration should be addressed to P. O. Box 1381, Honolulu, Hawaii 96807. On-line registration can be
completed at www.hitaxinstitute.org.
Hotel Information
Sheraton Waikiki Resort, Honolulu, while available, is offering a special run of the house room rate
of $275 which includes City View, Mountain View, Partial Ocean View and Ocean Front rooms, for all
Hawaii Tax Institute participants. (866) 716-8109 or www.sheratonwaikiki.com. Category assignment
will not be known until the day of arrival and will be dependent on the availability in each category on
arrival day.
Parking
All day self-parking will cost $8.00 per day with validation. All day valet parking will cost $13.00 per day
with validation. Validation may be obtained in the registration area of the conference.
Overnight self-parking: $27.00, overnight valet parking: $33.00. No validation for overnight parking.
Outlines
Outlines detailing the text of each speaker’s plenary presentation will be distributed to all applicable
registrants prior to the opening session Monday. Outlines for each track session will be distributed to
registrants on the applicable day. If there is a surplus, outlines may be purchased after the Institute.
Tickets Transferable
Admission cards will be transferable, thus permitting various members of one firm to be in attendance
for discussion of topics relating to their individual interests. Only one person per ticket may be in attendance at a given time.
Tickets and Materials
All tickets and materials will be located at the Registration Desk.
Cancellations/Refunds/Complaints
Refunds will be made, provided written requests are post-marked by October 10, 2014, less a
$125 administrative fee. All refunds will be processed following the Institute. For more information
regarding administration policies such as refunds, cancellations and complaints, please contact the
Hawaii Tax Institute Foundation at (808) 540-3931.
NO REQUESTS FOR REFUNDS WILL BE ACCEPTED AFTER OCTOBER 10, 2014.
Tax Deductions
All expenses (including registration fees, travel and lodging, except meals) incurred to maintain and
improve professional skills are tax deductible. (Cost of meals may not be fully deductible under the
provision of the 1986 Tax Reform Act) (Treas. Reg. 1-163.5; Coughlin vs. Commissioner, 203 F.2d 307).
PAGE 17
REGISTRATION FORM
51 st ANN UAL HAWAII TAX INSTITUTE
NOVEMBER 3-6, 2014
Sheraton Waikiki Resort
HONOLULU, HAWAII
REGISTER ONLINE OR BY MAIL:
Web site: www.hitaxinstitute.org
Mail:
Hawaii Tax Institute Foundation
P.O. Box 1381
Honolulu, Hawaii 96807
Name (Mr./Ms.):
Photocopy form for additional registrants
Firm/Company :
E-mail:
Telephone:
Firm/Company Address:
City:
State:
REGISTER ONLINE: www.hitaxinstitute.org
Zip:
By 10/10/14After 10/10/14
4-Day Pass
$850.00
$975.00
Single Day Pass
$295.00 $425.00
Monday
Tuesday
Wednesday
Thursday
Registration fees include one set of materials, daily lunches, ice cream social (Monday), tea and cookies
(Tuesday), wine and cheese (Wednesday) and daily continental breakfasts.
CANCELLATION FEE: $125. NO REFUNDS after October 10, 2014.
MATERIALS: Advanced materials selection is required, onsite availability may be limited.
Print Materials
CD-ROM
USB Flash Drive
Enclosed is a check payable to: “Hawaii Tax Institute Foundation”.
CONTINUING EDUCATION CREDIT:
Seeking Continuing Education?
Yes
No
PRIMARY PROFESSION (please choose at least one):
Attorney
State(s) _____, _____
CPA
State(s) _____, _____
Insurance
State(s) _____, _____
CFP
Trust Officer
Investment Advisor
Enrolled Agent
Government
Paralegal
Other
Accountant
CTFA
The Hawaii Tax Institute is going green. Please send an email to [email protected] to receive
announcements and future brochures by email.
The Hawaii Tax Institute Foundation and Chaminade University of Honolulu do NOT discriminate against any
person on the basis of race, color, sex, sexual orientation, religion, age, national or ethnic origin, political beliefs,
veteran status, or physical disability in admission to, access to, or employment in its programs and activities.
WIN A FREE REGISTRATION!
(First time registrants only)
visit WWW.HITAXINSTITUTE.ORG for details
Florence Nakakuni , U.S. Attorney
US Department of Justice
Honolulu, Hawaii
Jeffrey N. Pennell, Professor
Emory University School of Law
Atlanta, Georgia
Charles A. Redd, Attorney
Stinson Leonard Street LLP
St. Louis, Missouri
Bruce S. Ross, Attorney
Holland & Knight
Los Angeles, California
Stacy S. Eastland, Attorney
Goldman Sachs
Houston, Texas
The Honorable David Gustafson, Judge
United States Tax Court
Washington, DC
Robert K. Kirkland, Attorney
Kirkland Woods & Martinsen PC
Liberty, Missouri
Paul Lee, Attorney
Bernstein Global Wealth Management
New York, New York
Take advantage of the early Registration fees.
Register bY October 10, 2014, and SAVE!
Visit our Web site: www.hitaxinstitute.org
Edward J. McCaffery, Professor
University of Southern California
Los Angeles, California
Stephen R. Akers, Attorney
Bessemer Trust
Dallas, Texas
SPEAKE RS FROM AC ROSS T HE C O U N TRY
A Special Invitation To:
(First time registrants only)
visit WWW.HITAXINSTITUTE.ORG for details
WIN A FREE REGISTRATION!
HAWAII TAX INSTITUTE FOUNDATION
P.O. Box 1381
Honolulu, Hawaii 96807
NONPROFIT ORG.
U.S. POSTAGE PAID
honolulu, hawaii
PERMIT NO. 1690