(A longer version of this article originally appeared in the June issue of Trusts & Estates magazine. As a Wealth Management Letter reader, you can subscribe to Trusts & Estates for just $99. That’s a savings of 64% off the regular Trusts & Estates rate of $275. To take advantage of this special introductory offer, email harvey.swaine@penton.com.)

Recent changes in the law have enhanced conservation easements’ effectiveness in estate planning. But increased scrutiny by the Internal Revenue Service heightens the need for careful documentation of agreements and for thoughtful valuations of donated land.

Still, now may be a good time to consider this option, especially for clients who need tax relief, want to continue using the property even if it’s shared in part or completely with the public, and believe in preserving natural environments. These days, banks and other landholders are finding that conservation groups are eager buyers for select parcels. Despite the recent financial meltdown, conservancy groups and land trusts have strong balance sheets and ready cash. So, they’ve been purchasing and placing easements on significant parcels of real estate. The Tejon Ranch in Los Angeles and Plum Creek Timber property in Montana are just two striking examples.

For clients and their advisors, using conservation easements in estate and generational transfers is complex. So, let’s look at some of the issues involved to ensure the process is clear, timely and meets the needs of all parties involved.

Full Story >

The anticipated sale of the ING broker/dealer network was made official early this morning as the struggling Dutch parent company shed the three independent firms to a private equity firm for an undisclosed amount.

Financial Network Investment Corporation, in El Segundo, Calif., Multi-Financial Securities Corporation, in Denver, and PrimeVest Financial Services, of St. Cloud, Minn., were sold to New York-based private equity firm, Lightyear Capital. “Everyone’s known a deal was going to happen here, and have just been waiting for the other shoe to drop. It will be interesting to see if the new parent company will honor the legacy of the b/ds or start over,” says Philip Palaveev, president of Fusion Financial Network, an Elmsford, N.Y.-based network of advisors.

Lightyear was founded by former Paine Webber CEO Donald Marron.

Full Story >

Raymond James is raising minimums for new RIAs who want to custody assets on its RJFS-IAD platform from $30 million to $50 million. The firm said the move will both help it cut the cost of serving RIAs and also act as a draw for bigger RIAs, who tend to want to work with other RIAs of similar size. Advisors who do not meet the new asset minimums will be referred to existing Raymond James RIAs and encouraged to partner with them.

“Every RIA that we talk to, every prospective advisor considering the RIA platform, wants to know what the average size advisor is and where would they fit with existing advisors, would they be with their peers or not,” said Mike Di Girolamo, senior vice president and managing director responsible for the division. And the smaller RIAs “don’t provide enough revenue to justify the resources we provide,” he said.

Full Story >

The National Association of Independent Broker/Dealers (NAIBD) is working to prevent proposed legislation in Congress from increasing the auditing costs of small independent broker/dealers. These could rise to $100,000, the group says, and might even drive many of these firms out of business.

Since the introduction of H.R. 1212, an amendment to the Sarbanes-Oxley Act of 2002 proposed by Rep. Paul E. Kanjorski (D-PA) earlier this year, NAIBD board members have met with various members of Congress to get another amendment passed that would spare smaller firms from the increased auditing requirements.

Full Story >