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Dec 1, 2010 12:00 PM
Securities Laws and Estate Planning: Where Do the Roads Cross?
You don't have to be an expert in stocks and bonds — but you do have to know the nuts and bolts to avoid the pitfalls of making mistakes
If you're an estate planner, you're probably not an expert in securities laws. But you may have clients who are “insiders” of publicly held companies or who own restricted securities — and these clients may be subject to federal securities laws and have certain reporting obligations or disclosure requirements that could impact how you structure their estate-planning transactions. Before you develop gifting, sales or transfer strategies for such clients, avoid the unintended consequences of making a mistake by knowing the basics of potentially applicable federal securities laws and how they operate.
Rule 144 of the Securities Act of 1933 (1933 Act) governs the sale or transfer of restricted securities and provides a safe harbor from the statute's registration requirements if certain conditions are met. Securities may be restricted for many reasons, but investors most often receive restricted securities through a merger or acquisition, employee benefit plan or in a private placement in exchange for providing start-up capital or services to a company. In the context of estate planning, it's important that gifts, sales and transfers of restricted securities comply with Rule 144.
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| Estate Tax | Donor Advised Funds |
| GSTs | Family Offices |
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Topics of Interest
| Estate Tax | Donor Advised Funds |
| GSTs | Family Offices |
| Private Foundations | Life Insurance |
| 2010 Tax Act News | Industry Trends Surveys |
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