In Measuring Trustee Breach of Fiduciary Duty Damages (Part I of II) The prudent investment of trust assets can minimize the potential for trustee fiduciary litigation risk, in addition to maximizing the trust beneficiaries’ economic interest in the trust. However, trust beneficiaries may initiate a breach of fiduciary duty tort claim when they feel that the trustee has breached any investment management fi ...

Perform a File Autopsy! We live and die in/by our engagements. Bet you never thought of it that way. But really, tell me life isn’t just peachy when you’re working on a fun/interesting/profitable case. And that life doesn’t just suck when you’re not. Wouldn’t it be nice to have more peaches? In this article, Rod Burkert shares his After Action Review process that enables practitioners to (re)focus on cases ...

Saying yes is killing your productivity.  Chances are, you’ve agreed to take on a request from a colleague or client only to soon regret it because: you’re already on the edge in terms of capacity or stress; you have no time to recharge; it has a domino effect, making you late for remaining appointments and depleting your energy in the process.  Sound familiar?  If so, you need to say no more often. To read ...

Amazon is finally revealing its designs to enter the financial industry.  Should advisors worry?  There’s no immediate threat.  But there is one detail that advisors should pick up on. To read the full article in FinancialPlanning, click: What Amazon’s Flirtation with Checking Means for Wealth Management. ...

If your firm is considering making any changes to your existing partner compensation plan, from a minor tweak to a major overhaul, there are some basic concepts that you should keep in mind. To read the full article in FinancialPlanning, click: How to Compensate Partners to Keep Your Firm on Track. ...

Accepting and Rejecting Data from Public Company Data Valuation analysts who, for whatever reason, eschew the publicly traded guideline company method but who would like to use option models for various aspects of the valuation assignment, face a conundrum. All option models require, as an input, a volatility factor in percentage format. Since the only place to derive such a volatility factor (usually defin ...

Fair Value Not Based on the Merger Price (Part II of II) This is the second of a two-part article (read part one here) that focuses on the SWS Group, Inc. case and the interplay between merger price and fair value. In earlier cases, the Delaware Court of Chancery rejected a merger price indication in favor of its own discounted cash flow analysis. Yet, in the SWS Group, Inc. appraisal decision, instead of a ...

Three in five affluent Americans (63%) said they are very or somewhat likely to change their personal financial plans based on the new federal tax law, according to a poll conducted on behalf of the AICPA. To read the full article in the Journal of Accountancy, click: How the New Tax Law Will Change Wealthy Americans’ Financial Plans. ...

No financial technology innovation has saved advisors more time than when custodians began transmitting data files to firms.  Prior to this change, client data was updated by taking statements and keying them into the portfolio accounting system.  At the end of each quarter, statements were stacked thick and the data entry sprint began so that client reporting and billing could be completed. To read the ful ...

The key to implementing this suggested strategy is establishing auto-IRA plans to workers who lack a 401(k) option with a preset percentage of wages to be contributed to the plan.  This would create a retirement nest egg that would not be linked to any one employer, but rather would stay with the worker throughout a career. To read the full article in FinancialPlanning, click: Could this Simple Social Secur ...

Fair Value Not Based on the Merger Price, Part I of II This is a two-part article that focuses on the SWS Group Inc. case and the interplay between merger price and fair value. In earlier cases the Delaware Court of Chancery rejected a merger price indication in favor of its own discounted cash flow analysis. Yet, in the SWS Group, Inc., appraisal decision, instead of a decision supporting a higher fair val ...

For Accounting and Financial Services Firms In this article, Hinge presents its newest study of how professional services firms go to market—and for accounting and financial services firms, there is good news…and some not-so-good news. ...

Taxpayers with income that flows to or from a country that has a tax treaty with the United States should understand how that treaty's provisions can affect their U.S. taxes. To read the full article in The Tax Adviser, click: Tax Treaty Benefits for U.S. Citizens and Residents. ...

Offering constructive criticism is an essential part of being a manager.  Thoughtful feedback improves communication with staff members while encouraging them to grow.  Show how small changes can be part of the big picture. To read the full article in the Journal of Accountancy, click: How to Give Constructive Criticism That Gets Results. ...

In a tighter labor market for advisors, compensation is rising, as are firms’ efforts to make work more enjoyable. To read the full article in FinancialPlanning, click: Pay Day—Breakdown of Financial Advisor Salaries and Perks. ...

A Discount for Controlling Interests This article examines studies and judicial decisions addressing the use of DLOMs where there are controlling, 100% ownership interests, followed by review of a recent client assignment that illustrates the importance of being well versed with the valuation theory in this area. ...

Revenge Porn, Ugg, VirnetX, and Apple This case law highlights a number of patent, copyright, and business valuation cases litigated in the first quarter of 2018. The revenge porn case highlights a distressing but potential opportunity for litigation support professionals. The VirnetX v. Apple and Deckers Outdoor Corporation v. Romeo & Juliette, Inc. cases highlight the perils of patent litigation and f ...

As a risk management professional at CNA, professional liability insurance carrier for nearly 25,000 CPA firms, I am often asked if engagement letters are worth all the effort.  The answer, based on my personal and CNA’s claim experience, is a resounding YES!  I’ve experienced firsthand the value these letters bring to the table. To read the full article in AICPA, click: Engagement Letter Stories—When They ...

Soon after President Trump signed the bill, some wealthy clients who owned businesses needed to know if they could save on taxes by buying manufacturing equipment in 2017.  Others needed advice on whether to pay state income tax by Dec. 31 if they were not subject to the alternative minimum tax. To read the full article in FinancialPlanning, click: New Tax Law, More Business for Financial Advisors. ...

Under the new FASB rules, financial statement preparers are provided an option to reclassify stranded tax effects within accumulated other comprehensive income in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. To read the full article in the Journal of Accountancy, click: FASB Addresses Stranded Incom ...