Bill Snyder: Legacy of Innovation
On January 12, 2012 our Philanthropic Services Manager, Heide Gibson, had the pleasure of interviewing Mr. Bill Snyder for the spring 2012 issue of Advisor Matters.
William A. Snyder has been a practicing attorney in Davie, Florida, since 1971. Founder of the law firm of Snyder & Snyder, P.A., he is board certified by The Florida Bar in Wills, Trusts and Estates, and is an adjunct professor of law at the University of Miami Law School Graduate Program in Estate Planning. He has been recognized by Martindale-Hubbell with their highest rating for attorneys, and is past Chairman of the Board Certification Committee of The Florida Bar for Wills, Trusts and Estates. For three consecutive years, he was recognized by Worth Magazine as one of the “Top 100 Attorneys” in the United States. In addition, Mr. Snyder has been listed for the past five years in Florida SuperLawyers® magazine, and was chosen by his peers to be included in the past five editions of The Best Lawyers in America® in the specialties of Trusts and Estates. In November 2009, Mr. Snyder was awarded the Key Partners Award in Trusts and Estates by the South Florida Business Journal. Mr. Snyder is a Fellow in the American College of Trust and Estate Counsel (ACTEC).
Mr. Snyder co-authored a book entitled “Preserving the Legacy of a Family Owned Business - A Psychology of Business Succession and Estate Planning”, and lectures frequently on estate planning issues. Mr. Snyder currently serves on the Planned Giving Committees of Hospice Care of Southeast Florida and Joe DiMaggio's Children's Hospital, is president of the Planned Giving Council for Nova Southeastern University, and previously served as president of the Broward County Planned Giving Council and the West Broward Estate Planning Council.
Mr. Snyder is a graduate of Culver Military Academy, Hobart and William Smith College (B.A.), the University of Florida Law School (J.D.), and the University of Miami Law School (LL.M.)
What new developments are you seeing in Estate Planning?
This year is a golden opportunity to transfer wealth to the next generation using the $5 million per person gift exemption.
There is great emphasis right now among affluent families to transfer wealth to the next generation as there is no tax on gifts up to $5 million per person / $10 million husband/wife.
Can you expand a bit on the $5M gift exemption, how does it influence your clients and your strategy?
Some of our clients see the $5 million gift exemption as a window of opportunity to be able to transfer wealth to their descendents without incurring any current gift taxes. Many of our clients are concerned that the $5 million gift exemption will not continue past 2012 and therefore they are utilizing this opportunity this year while it is still in effect. There is always the chance that Congress will leave the $5 million gift exemption in effect for future years but for many of our clients they see this as an opportunity to gift to their descendents with no payment of current gift tax.
We have developed strategies so that gifts can be made to children and grandchildren through trusts which will provide tremendous flexibility to the beneficiaries in terms of receiving distributions while at the same time minimizing taxes and providing asset protection for them as well.
Do you have other insights to share on this?
It should be pointed out that currently the estate tax exemption is $5 million, the gift exemption is $5 million, and the generation-skipping tax exemption is also $5 million. If a client utilizes all or a portion of the $5 million gift exemption the estate tax exemption at death will be reduced by the amount of gift exemption utilized during the lifetime. In effect, descendents will have the use of the money gifted to them during the lifetime of their parents and any appreciation in the assets gifted to them will escape estate taxation in their parent’s estates.
What aspect of Estate Planning do you find challenging?
- Helping my clients determine how much is enough to give their children. …finding the balance between gifting to families and charities
- A challenge in estate planning is to help families transfer wealth to the next generation in such a fashion that it promotes and encourages productivity for the heirs. Donors do not want to put their children on easy street.
What strategies do you apply to achieve this?
Many affluent parents are very concerned that their children and grandchildren become productive members of society and they feel that giving them too much too early in life may discourage their children and grandchildren from leading productive lives. These affluent parents will leave gifts in trust for their children and grandchildren which will provide a safety net for their beneficiaries so that if the beneficiaries ever need distributions for basic needs money will be available to them. The trusts will also provide a means of giving distributions for purposes of starting businesses provided business plans are provided, making loans to the beneficiaries for purposes of purchasing homes, and distributions for certain special events such as weddings. Often, trustees are encouraged to work with beneficiaries to make sure that they are leading productive lives and distributions to them are conditioned upon this fact. Often, affluent parents will place a certain amount in trust for their children and grandchildren and anything over and above what is placed in these trusts is gifted to charity either during their lifetime or upon the death of the second spouse. The basic concern for these parents is that leaving them too much in the long run is not good for them.
Is this concept transferrable across most levels of wealth?
These strategies are typically utilized for the very affluent families and you do not see this utilized for families of more modest wealth. In our office we are seeing families more and more establishing trusts which will protect wealth from creditors, reduce estate taxes, and provide flexible distribution provisions so that beneficiaries are able to benefit from the wealth which their parents and grandparents amassed.
What do you see on the horizon?
Unless Congress acts, the $5 million per person gift exemption will reduce to $1 million in 2013.
How does your involvement with Community Foundation of Broward enhance your practice?
Community Foundation of Broward provides a wonderful mechanism for my clients to make charitable gifts, allowing them to establish Donor Advised Funds which provide an alternative to private foundations and the administrative red tape of private foundations. Because CFB is a 501 c3 organization, clients receive the maximum tax advantages.
What advice would you give other professionals who are looking to include/expand philanthropic conversations in their practice?
It is very simple. I would encourage every professional to ask in every client interview: ‘Would you like to make a charitable gift?’ A great many will say yes, but if you don’t ask they won’t think of it.
*Bill Snyder is a member of the Board of Directors and the Professional Advisors Council of the Foundation.