Preface to the 1999 Edition
(101 Years serving the Trust Community)
New features and enhancements. The 1999 Edition contains 300 pages of additional text. The following new sections have been added: §126.96.36.199 The Power to submit a Dispute to Arbitration, §188.8.131.52 When Death of a Trustee Who Possesses No Beneficial Interest in the Trust Will Subject the Trust Property to Federal Estate Tax Liability, §8.15.15 The Ascertainable Standard, §8.15.16 Incidents of Ownership, §8.22 Has the Limited Liability Company (LLC) Rendered the Trust Obsolete as an Estate Planning Tool? §8.23 How a Trust Can Facilitate Gifts to Minors, §8.24 Who Has the Burden Of Proof in an Action for Breach of Trust Brought by the Beneficiary Against the Trustee?, §9.17 I.R.C. Section 2503(c) Trusts for Minors, and §9.18 The Crummey Trust.
The "Year 2000 Millennium Bug" (Y2K) and the Trustee's Duty to Protect the Trust Property and Conversion of Common Trust Funds into Mutual Funds are two new topics that have been worked into preexisting sections. 18 Questions and Answers relating to the reach and content of Revised Regulation 9, all supplied by the Office of the Comptroller of the currency, have been inserted at the end of §8.18. Section 9.9 has been expanded to include a discussion of how variable life or annuity products differ from pure insurance products. Selected federal estate tax internal revenue code sections, the federal estate tax rate schedule, and the Form 706 are now in the back of the handbook (see Appendix IV). Also added, as Appendix V, is the Uniform Trust Act (September 18, 1998 draft) which contains within it a full transcription of both the Uniform Prudent Investor Act (Article 9) and the 1997 Revised Uniform Principal and Income Act (Article 10).
The 1999 Edition revisits and expands upon the following: insuring against a trustee's personal liability, domestic asset protection havens (Alaska and Delaware), trusteed employee benefit plans and IRAs, Medicaid eligibility and recoupment, soft dollar practices of broker dealers, S.E.C. Rule 10b-5, the 1997 Uniform Principal and Income Act, Blue Sky Laws, the Loring Exemption, the nominee trust (including issues of limited liability), the social security "trust" fund, bank regulatory filings, offshore asset protection trusts, and revocation of trusts by agents of settlors. The region-by-region mathematical analysis of standard charge schedules of corporate trustees has been updated to November 1998. The federal income tax rates for trusts, reproduced in Chapter 10, now has 1999 numbers. Finally, materials relating to the unified credit have been revised to accommodate annual incremental increases in the credit equivalent/applicable exclusion amount, a process that begun in 1998 and concludes in the year 2006.
Statistics The enhanced text is tight, sparse, and efficient in the Loring tradition. At the same time it is rich in new and useful information. as mentioned, there are more than 300 pages of new text. The Handbook contains 9 new sections, 215 new footnotes, and 7 new website references. The Table of Cases contains 88 new entries, and 233 items have been added to the already extensive index, which is perhaps the Handbook's most valuable feature. The number of scholarly articles cited in the text and footnotes has been increased by 53, and 215 footnotes have been revised to a greater or lesser degree, many to effect cross referencing into the new material. And, of course, myriad dated references have been made current.
Charles E. Rounds, Jr.
December 22, 1998