Masonry Magazine August 1979 Page. 27
The remaining $500,000 would be subject to tax. The IRS, in fact, is only deferring taxation of the first $500,000 until the death of the second spouse.
However, with proper estate planning it is possible to shelter an estate of this size even further. You can divide the transfer of the estate to your spouse in such a way that "wasting" assets will purposely pass directly to the survivor. He or she may spend the property during his or her lifetime so that at the death of the of the second spouse the amount of the estate exposed to taxation has been substantially reduced. You can actually specify which property is taxed under the terms of the will and which is protected under corresponding trust instruments.
Protective Measure Trust
This may be accomplished through the protective measure "A-B" trust. Under the terms of your will and a corresponding trust instrument (actually two trusts), you would purposely designate that an amount of property, say $500.000, is to flow into the "A" trust. This "A" trust will be set up in such a way that the trust property will be includable in the surviving spouse's gross estate that complies with the marital deduction rule.
Any and all property above and beyond the exact amount qualifying for the marital deduction would flow into the "B" trust. The "B" trust also escapes federal estate taxation, and the surviving spouse is still entitled to many of the rights over this property. The trustee may be empowered to pay the surviving spouse all annual income from the trust. The survivor may have the right to the greater of $5,000 of corpus or 5% of the corpus each year. The spouse may also have a "special power of appointment," which means the right to designate which specific class of people would be entitled to enjoy the property, for example, children. Also, the trustee could invade corpus to maintain the surviving spouse's accustomed standard of living.
Poor Basic Planning Can be Disastrous
By reason of existing tax laws, compliance with the concepts of estate planning becomes essential if survivors are to receive estate assets intact. Failure to undertake basic planning can be disastrous. Conversely, basic planning will be quite effective in resolving the problems discussed.
Architect Raymond Whalley, AIA, FCSI, has built and designed literally dozens of brick masonry office buildings throughout California, as well as others in Colorado, Utah, New Mexico, Arizona, Oregon. Washington, Hawaii. Texas and Madrid, Spain for a world-wide electronics firm.
Whalley has developed standard plans and a design for various sized sales office buildings of one and two-story masonry construction. Brick was selected because of its universal usage throughout the United States as well as foreign countries. Ceramic tile, another typical product found everywhere, is used on the exterior as a color accent together with bronze glass and dark bronze anodized aluminum framing. All the latest energy conservation measures such as full insulation on all exterior walls and roof, together with double glazing of windows and the design of envergy-saving mechanical and electrical systems have been developed featuring alternate back-up sources of energy.
Careful detailing of brick patterns have been utilized to enhance the texture and design of masonry elements. A major quantity of brick require mitered or beveled ends. and these are being manufactured in the plant for a project in Colorado, but other projects may elect to saw out the brick at the site. Even a central core within the building has been developed in exposed brick masonry with the walls extending through the roof to form a mechanical penthouse screening.
All mechanical units are supported on a poured concrete beam and slab floor, thereby eliminating all noise and vibration extending into any of the office and customer areas. All toilet rooms for employees and separate facilities for customer use are treated with full tiled walls and floors within this core. Ceramic tile was selected for ease of maintenance and its bright color effects. The main lobby floor and reception counter base are tiled in rich quarry tile colors.
Four projects in various states are in construction or planning stages. Since leaving a partnership of 27 years standing. Whalley decided to retire to a limited practice three years ago in Marina Del Rey, Calif., and has found that he is busier now than before with over 28 million dollars worth of construction either on the boards or in preliminary stages. His change to a retirement phase resulted in the need to obtain a NCARB certificate and licenses in four states. He also has been granted a national Certified Construction Specifier certification by the Construction Specifications Institute.
Architect John C. Absmeier, AIA, immediate past president of the AIA Cabrillo Chapter, has joined the firm as an associate, bringing 20 years of of design experience in institutional, commercial, medical research facilities and geriatrics buildings, which will increase the firm's potential in these specialty areas.
In order to streamline services to the client. Whalley and Absmeier are using a computer memory, high-speed typewriter system for their specifications, camera work reproduction of repetitive drawings and telecopier instruments in their office and in each construction site trailer for quick transmittal of documents and drawings direct to the inspector and contractor.
The firm has just completed alterations and extensive additions to Charles Leroy Lowman School for handicapped children for the Los Angeles Unified School District. Another project of unusual nature involved converting two 80 ft. by 160 ft. tilt-up warehouses with 13 ft. clear ceiling height to minus 10-degree freezer storage use for the City of Los Angeles Harbor Department. The entire roof system was cut loose from the existing walls and raised to the increased height while new columns and woodframed perimeter walls were erected. Then vaporsealing and insulation were added to all walls, roof and floor, and a new floor slab was poured over the insulation. Doors were raised and docks were constructed to the different floor elevation.
Svend Sorensen, Inc. was the structural engineer for these projects, with John Denton & Associates the mechanical engineers.
Whalley was also the architect in charge of design and construction of the new headquarters for the Ceramic Tile Institute. This project presented an unusual challenge. which called for incorporating many different tile designs. textures and patterns for walls, floors and ceilings.