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The New Tax Law and Your Estate Planning

Posted: February 19th, 2018

By: Martin Glass, Esq. email

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Have you heard? There has been a major change in the Federal Tax Code as of January 1, 2018.  But what does it mean as far as estate planning goes?

The only real change in this regard was that the exemption for the Federal Uniform Gift and Estate Tax approximately doubled from $5,490,000 to $11,180,000 per person.  With the use of portability, married couples can now pass up to $22,360,000 estate tax-free during their lives or at death.  But beware, this is only temporary.  It drops back down to the prior level (indexed for inflation) in 2025.  Believe it or not, that’s less than eight years away.

So, if you want, you can now gift an additional $11,180,000 during your lifetime (or the next eight years, whichever comes first).  New York does not have any gift tax, but you do need to stay alive for the next three years after the gift; otherwise it is brought back into your estate for New York estate tax purposes.

For those who do not want to gift and give away their assets while they’re alive (or those who do not have that kind of wealth), there’s really very little that’s changed.  That’s because New York is not following the federal doubling of the exemption.  Currently the New York exemption is $5,250,000 and is not due to increase until 2019 to approximately $5,600,000.  That’s because it’s based on $5,000,000 in 2014 indexed for inflation.  Also keep in mind that there is no portability in New York.  This means that it takes planning to make sure that both spouses’ exemptions are used.

So, is it better now?  Of course.  If you have an estate between the $5,250,000 and the $11,180,000, you now only have to worry about New York estate tax and not Federal estate tax.  But the New York estate tax rate is still 18%.  And if you’re more than 105% over the exemption, you lose the entire exemption and have to pay the 18% on all of your estate.

The only other change for estate tax purposes is that the annual exclusion went from $14,000 to $15,000 per person per year.  That means that you do not have to tell the IRS about any gift you give that’s not over $15,000.  Anything over, you have to fill out a gift tax form so they can keep tabs on it and take it off of your lifetime exemption.  There’s no actual tax unless you surpass the lifetime exemption of $11,180,000.  As a side note, this has nothing to do with long-term care planning.  That $15,000 gift would still be considered an uncompensated transfer and subject to a penalty period in terms of Medicaid eligibility.

The takeaway? Estate planning requires just that: planning, with the help of a qualified professional. Please reach out to us to review your particular situation.

The information contained in this article is provided for informational purposes only and is not and should not be construed as legal advice on any subject matter. The firm provides legal advice and other services only to persons or entities with which it has established an attorney-client relationship.

Eisenbud Elected At-Large Member of NYSBA Environmental Section Executive Committee

Posted: February 19th, 2018

Frederick Eisenbud, Esq., chair of the Environmental and Land Use practice group at Campolo, Middleton & McCormick, LLP, a premier law firm with offices in Ronkonkoma and Bridgehampton, has been elected to a three-year term as an At-Large Member of the Executive Committee of the New York State Bar Association’s Environmental Section.

The Environmental Section brings together NYSBA members interested in environmental law for furtherance of the public interest in an effective and fair legal framework for protection of the human and natural environment. For over 135 years, NYSBA – the largest voluntary state bar organization in the nation – has shaped the development of the law, educated and informed the profession and the public, and responded to the demands of a changing society.

Eisenbud has a depth of experience that provides him with a comprehensive understanding of environmental law.  For over four decades, he has focused on providing responsive, smart and cost-effective solutions for the environmental law and litigation concerns of individuals, companies, municipalities, and community groups. Learn more about his career highlights, including serving in the Peace Corps in Liberia, starting the Suffolk County Environmental Crime Unit, and obtaining the first two jail sentences arising out of environmental crimes in New York State history here.

A Word of Caution with Use of Olympic Marks

Posted: July 25th, 2024

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With the upcoming arrival of the 2024 Summer Olympics Games, a friendly reminder to all Olympic enthusiasts that any unauthorized commercial use of the Olympic trademarks, logos, images, or symbols is prohibited. Because the United States Olympic & Paralympic Committee (“USOPC”) does not receive government funding to support its athletes, the USOPC has broad discretion to vigorously enforce its intellectual property.

Federal law gives the USOC exclusive rights to the symbol of the five interlocking rings, the Olympic flame and torch, and to the words, inter alia, “Olympic,” “Olympiad,” “Team USA,” “Paris 2024,” “Los Angeles 2028.” The statute is further extended to prohibit any advertising that tends to suggest a connection with the Olympics or the USOPC. The USOPC’s rights, however, are limited to situations where these words or symbols are used (1) to offer goods or services for sale; or (2) to promote a theatrical exhibition, athletic performance, or competition. In addition, it does not include trademarks or logos owned by the National Governing Body for specific sports.

Moreover, the USOPC holds trademark rights to Olympic-related words, images, and symbols. Section 43(a) of the Lanham Act prohibits the use of trademarks when they (1) are likely to deceive or create a false impression of affiliation or endorsement; or (2) misrepresent in advertising certain aspects of the product.1 Unauthorized use of the trademarks could subject a user to possible claims of false endorsement or affiliation, which operate separately from USOPC’s exclusive statutory rights. Although there are certain exceptions to infringement based on fair use, news reporting, news commentary, or any noncommercial use, the USOPC is not afraid to object to the use of its trademarks by a non-licensed party.

Creative marketers have attempted by “ambush marketing” to find a route around USOPC’s rights by creating advertising materials with some Olympic flavors without using the protected marks. For example, by taking photographs of national flags or competing athletes; by advertising near event locations; adopting themes and color palettes similar to the event; and real-time social media marketing. Such imagery could be eye-catching to consumers; however it is only acceptable if the attempts are not in violation of any anti-ambush marketing laws.

One instance of piggybacking off Olympic sponsors was when Michael Phelps, the face of the Olympics, began appearing in Subway commercials. Subway, not an Olympic sponsor, ran a commercial featuring Michael Phelps swimming to “where action is this winter.” The USOPC characterized the ad as “ambush marketing” and an attempt to falsely associate Subway with the Olympics as a sponsor. Another famous example of capitalizing on real-time events with media marketing arose during the 2013 Super Bowl, when after a power outage at the Superdome, OREO cookies seized the opportunity by tweeting the message “Power Out? No problem” which was accompanied by an ad showing a single, starkly lit OREO cookie beside the caption, “You can still dunk in the dark”. The tweet quickly went viral allowing OREO to capitalize on the event without being an official sponsor.

In short, the USOPC has a reputation for aggressively policing their exclusive rights to certain words, phrases and symbols, and they have a special federal law to back them up. Be cautious of the use of Olympic trademarks by knowing and understanding where the boundaries are. If you’re thinking of advertising your business with an Olympic-themed promotion, you might want to find another Gold Medal-winning strategy.

Click here for additional information on the USOPC’s logos.

1.15 U.S.C.S. § 1125

The information contained in this article is provided for informational purposes only and is not and should not be construed as legal advice on any subject matter. The firm provides legal advice and other services only to persons or entities with which it has established an attorney-client relationship.

March 15 – Cocktails, Conversation & Contracts: Understanding Risks In Construction Contracts

Posted: February 3rd, 2018

Event Date: March 15th, 2018

What are the key provisions to look out for in any construction contract? Please join us on Thursday, March 15 to hear insights from a corporate attorney with decades of experience in the construction industry and insurance executives with a focus on construction clients.

This talk will walk you through agreements with contractors, subcontractors, vendors, and other parties to provide guidance on what significant provisions should look like including indemnification and mitigation of risk, how to analyze your insurance obligations, what to look for when procuring insurance, and understanding the impact of riders and endorsements.

Gain valuable tools and knowledge to prepare you for your next contract negotiation.

 

Panelists:
Donald J. Rassiger, Chair of Construction Practice and Managing Attorney of Corporate Department, Campolo, Middleton & McCormick, LLP
– Thomas Gilmore, Risk Management Consultant, Industrial Coverage
– Rick Caputo, Risk Management Consultant, Industrial Coverage

Agenda:
6-7 PM: Networking, cocktails and appetizers
7-8 PM: Program and Q&A

Location: Cosentino
35 Engel Street, #102
Hicksville, NY 11801

Register here.

Sponsored by:

Campolo’s presentation style highlighted in “Everything Is a Negotiation!”

Posted: February 2nd, 2018

By Arthur Sanders

Whether you’re negotiating the release of hostages or negotiating with your toddler to try a new food, the
common thread is that all negotiations are based on human interaction. To succeed in any negotiation, you
must understand not only the basic building blocks that all negotiators need, but also the psychological and
emotional principles at play and how to use them to your advantage.

On January 9, 2018, we were treated to a dynamic presentation by Joe Campolo, Esq., Managing Partner of
Campolo, Middleton & McCormick, a premier law firm with offices in Ronkonkoma and Bridgehampton.
From serving in the United States Marine Corps, to representing clients in the courtroom and boardroom, to
advocating for Long Island through his community involvement, Joe has a wealth of experience in negotiation
strategy that he eagerly shared with the crowd.

Joe’s presentation focused on negotiation as an exercise in managing risk and tension. He walked us through
typical thoughts while listening at the negotiation table (ranging from the defensive to the argumentative) and
how we can “listen better” by acknowledging our adversary’s spoken and unspoken point of view.
The conversation then shifted to the emotional side of negotiation, as Joe shared tips for negotiating to win.
Strategies in his toolbox include building rapport with your adversary and challenging the negative emotions
that are bound to come up during a protracted negotiation. He also shared how to avoid being manipulated
and how to identify more win-win possibilities (as opposed to win-not lose possibilities).

Joe’s unique presentation style was well received and was a great way for our chapter to kick off 2018.

March 29 – CMM Sponsors Girl Scouts of Suffolk County Panel on Building Women Leaders

Posted: January 31st, 2018

Event Date: March 29th, 2018

 

 

 

 

 

Join us in celebrating the 50th anniversary of Girl Scouts of Suffolk County at its first annual Making An Impact panel on March 29. CMM Partner Christine Malafi serves on the GSSC Board of Directors and has helped put together a panel of dynamic female business leaders who will share their personal experiences and insights about their rise to the top.

Panelists include:
– Terri Alessi-Miceli, President, HIA-LI
– Teresa Ferraro, President, East/West Industries
– Davina P. Durgana, PhD, International Human Rights Statistician, Human Trafficking Prevalence Professor
– Dr. Aurelia L. Henriquez, Superintendent, Riverhead School District
– Dawn A. Lott, Esq, Executive Director, Suffolk Human Rights Commission

Moderated by:
– Yvonne Grant, President & CEO, Girl Scouts of Suffolk County
– Donna Smeland, Chair of the Board, Girl Scouts of Suffolk County

You’ll also meet some extraordinary girls and young women who have made the Girl Scout mission their own by doing some amazing things.

Join us on Thursday, March 29 at the Radisson Hotel Hauppauge-Long Island from 8-10:30 a.m. 

Register here.

The Engineering and Defense Industries on Long Island featuring Teresa Ferraro of East/West Industries and Rich Humann of H2M Architects + Engineers

Posted: January 30th, 2018

In this episode, Joe Campolo spoke with two successful Long Island business leaders. Joe chatted with Teresa Ferraro, President, East/West Industries, Inc., about her unique leadership path, the exponential growth of this family-owned business through the decades, and innovative projects and new technology in the defense/aerospace industry. Joe also caught up with Rich Humann, President and CEO, H2M Architects + Engineers, about his rise through the ranks from intern to President/CEO, recruitment and professional development strategies, and challenges of growing and expanding a business on Long Island.

Times of Smithtown: Campolo featured in “Hauppauge Industrial Park Considers Housing, Recreation”

Posted: January 25th, 2018

By Sara-Megan Walsh

SARA@TBRNEWSMEDIA.COM

The Hauppauge Industrial Park’s future may include new apartments and recreational spaces as it looks to move into the 21st century.

The Hauppauge Industrial Association of Long Island announced Jan. 19 at its annual conference that it is launching an opportunity analysis study that will attempt to identify ways the park can maximize its growth and competitiveness — with a focus on keeping millennials on Long Island.

“We have the ability to really keep these kids on Long Island,” said Terri Alessi-Miceli, president and CEO of HIA-LI. “We see the Hauppauge Industrial Park as an opportunity to do that. We are looking to make better connections to how they get jobs, where they get jobs and where they live.”

The year-long study will be led by the Regional Plan Association, a nonprofit research, planning and advocacy firm dedicated to the tristate area’s business growth and sustainability, which will work with Stony Brook University and the Suffolk County Industrial Development Agency. It aims to build off the results of an economic impact study of the park completed last year by SBU.

“The Hauppauge Industrial Park is the second largest industrial park in the country, second to only Silicon Valley,” said Joe Campolo, board chairman of HIA-LI. “That’s an amazing statistic if you think of how much notoriety Silicon Valley gets and how little notoriety Hauppauge Industrial Park gets.” Campolo said the two-year economic impact study, included research performed by three SBU graduate students, concluded that Hauppauge’s business economy lagged behind due to Silicon Valley’s partnership with Stanford University. “A light bulb went off after that phase of the study to say, ‘How do we now collaborate with Stony Brook University directly?’” he said. “Because from a business owner’s perspective the No. 1 challenge is getting and keeping good talent here on Long Island, and the No. 1 challenge Stony Brook has is making sure their graduates have good, solid jobs.”

The opportunity analysis will consist of surveying and gathering input from current Stony Brook students of what changes they would like to see made to the park to make it more attractive to live and work here, according to Campolo, citing successful revitalization of Patchogue and Port Jefferson. In addition, there will be a series of meetings with current Hauppauge businesses to discuss what they need to grow.

“There’s no reason the HIA and the Hauppauge Industrial Park cannot also be a tremendous success in integrating where people work and where people live and where people recreate,” said Mitchell Pally, CEO of the Long Island Builders Institute. One major factor the study will look at is the creation of multistory apartments in the industrial park in mixed-use buildings or along neighboring Motor Parkway.

Alessi- Miceli said this is a new possibility since the Town of Smithtown created a zoning overlay district in 2015 that allows buildings along Motor Parkway up to 62 feet in height and along Northern State Parkway up to 50 feet. Smithtown Supervisor Ed Wehrheim (R) said the overlay zoning is a “vital component to the success of the park” as the area saw a 2015 development spike after the zoning change, largely in recreational businesses and programs moving into the area. If this new study confirms more zoning changes are needed for the park’s future growth, Wehrheim said he would welcome the HIA-LI to discuss it with the town.