Paradigm Shift

Special points of interest:

Paradigm Shift

NYS Filing

Requirements

Recent Updates

TEdec Support/

Customer Care

TEdec

Systems, Inc.

TEdec Times

Inside this issue:

Practice Management 1

New Releases 1

From the Desk of the

President

2

Cases and Rulings of

Current Interest

3

Common Questions 4

SUMMER 2011 VOLUME XI, ISSUE 2

We’re on the web

www.tedec.com

Route to: 1) _______ 2) _______ 3) _______ 4) _______

PRACTICE MANAGEMENT

William D. Henderson and Rachel M. Zahorsky, in an article in the ABA

Journal July 2011 edition entitled “Paradigm Shift” summarized a major

change in the legal landscape. A few of their comments, are as follows:

“The golden era is gone, but this is not because the law itself is becoming less relative. Rather, the sea change reflects an urgent need for better and cheaper legal services that can keep pace with the demands of a rapidly globalizing world.” “Whether big law lawyers, boutique specialists or solo practitioners, US lawyers can expect slower rates of market growth that will only intensify competitive pressures and produce a shakeout of weaker competitors and slimmer profit industry wide.” “And those who wish to rise above the disruption will have to deal with technology that swallows billable work, a world market that takes the competition international, and a more sophisticated corporate client with vast knowledge available at the click of a mouse.” The entire article is worth a serious read — it portends a change in the

way legal services are delivered.

Filing Requirements New York State &

Generation Skipping Transfer Taxes

New York State Department of Taxation and Finance has issued

technical memorandum TSB-M-11(1)M dated February 3, 2011.

This notice contains due dates for a number of tax returns (including ET

-706 and ET-500 and highlights due dates for:

Federal Estate Tax

Federal Generation Skipping Tax

New York State Estate Tax

Estimates to file New York Estate Tax Return

New York Generation Skipping Transfer Tax

A complete copy of Technical Memorandum TSB-M-11(1)(M) is

available on the TEdec web page at www.tedec.com under Free

Resources.

Page 2

From the Desk of the President Our objective is to provide you with the best fiduciary accounting and administration software for your trusts and estates practice, and to provide the best support in the industry. From the accolades we have received this last year from our user base, we are succeeding! Our goal is to enhance your trust and estates practice and to make you more productive and effective; and, we continue to work on additional enhancements, which we believe will further improve your productivity. As always, if there is anything we can do to improve TEdec, please let us know. We appreciate and look forward to your comments and suggestions.

Teddar S. Brooks President/CEO

TEdec v. 6.3.9.p.6—To Be Released 7/31/2011

The following are some of the enhancements to be included in the 6.3.9.p.6 system:

California Reports for estates, guardianships and trusts.

Summary of beneficiaries is now contained in the Masterfile. Go to Masterfile (MF) Õ Beneficiary Folder, where you will find a sum-

mary of the beneficiaries by name, address, social security number, date of birth and comment as contained in the Beneficiary

Completrac.

EPF Program—we have modified the EPF Program to permit users to name the entity and duplicate the entity to a new number. In

both cases an e-mail will automatically be sent to TEdec to update your history , and if you are adding an entity through the copy

system, the user will be billed the usual $65/entity.

I wanted to let you know how much I appreciate you and your staff and the TEdec program. I have been using the program for over a year now and have been elated with it. If I’m unsure, I can go to TEdec University or email or call for help and I always get a timely response. I sent my first account-ing to the NYS Attorney General using TEdec and had an approval within the week, it normally takes 4 to 6 weeks so they obviously like the formatting and ease of reading. I wanted to take the time to let you know how much I appreciate TEdec. Terri Hogue, Law Office of Patrick J. Roth, Esq., CPA, Corning, NY

ONLINE RESOURCES TO IDENTIFY MISSING HEIRS

For your convenience a summary of the websites is attached to this issue of the TEdec

Times, and included in the TEdec Website at

www.tedec.com under Free Resources.

SCPA Section 1310 Affidavit. Assets

passing pursuant to SCPA 1310 are

not part of the estate as defined in §

369 of the New York Social Services

Law and therefore are not subject to

recoupment by Medicaid. In the

Matter of the Estate of Pauline Gaiter

No. 2010-1533(N.Y. Monroe County

Surr. Ct. Dec. 28, 2010) held that

assets collected pursuant to SCPA

1310 are not estate assets for

purposes of Medicaid recovery under

Social Services Law § 369. Therefore,

SCPA 1310 is another tool for

practitioners to protect assets. Under

the provisions of SCPA 1310 the

children of a deceased may collect up

to $15,000 in the name of the

decedent without administration

SCPA 1310 (3)(b) which affidavit

would be submitted no less than 30

days after the decedent’s date of

death. After six months, the

Department of Social Services may

collect up to $5,000 of the decedent’s

asset using this affidavit.

P-TIN Required. New regulations

now require (beginning Jan. 1, 2011)

all paid tax return preparers

(including attorneys, CPA’s and

enrolled agents) have to apply for a

Preparer Tax Identification Number

(P-TIN), which must be included on

the tax return. A summary of the P-

TIN Requirements are attached to

this copy of the TEdec Times and can

be found on the TEdec website at

www.tedec.com Õ Free Resources.

IRS Forms—706 & 8939. The IRS

has published on its website a draft

estate tax return for decedents who

die in 2010 with a July 2010 release

date. See http://irs.gov/app/picklist/

list/draftTaxForms.html

Form 8939 may not be out before the

September 19, 2011 date for filing the

IRS Form 706 for decedents who die

in 2010.

Extension of Time to File Tax Returns

(Form 1041). The IRS has issued

final regulations (26 CFR Parts 1 and

54 [TD 9531]). Regulations § 1.6081-6

Automatic Extension of Time to File

Estate or Trust Income Tax

Return—provides in essence an

automatic five month extension of

time to file a return after the date

specified for filing the return if the

estate or trust files an application

under this section. No additional

extension will be allowed pursuant to

Reg. § 1.6081-1(b) beyond the

automatic five month extension

provided in this section. These

regulations have an effective date of

June 24, 2011.

Fees to Guardians Under SCPA Article

17A. The 3d Department in a recent

case, in the matter of the

Guardianship of Jonathan EE, a

developmentally disabled person

2011 NY Slip Op 5844; 2011 N.Y.

App. Div. LEXIT 5687 held that

there is no statutory authority for the

payment of guardianship fees under

SCPA Art. 17A. A copy of this case

can be found on the TEdec website

at www.tedec.com Õ Free Resources.

Ademption: Dissolution of corporation

and reorganization as partnership did

not adeem specific bequest of

corporate stock. The North Carolina

intermediate appellate court affirmed

summary judgment holding that the

bequest did not adeem because, at

the testator’s death, his probate

estate included the same proportional

interest in the same asset received

from his father (which he had

bequested to his sisters, who were the

successful litigants). Stanford v.

Paris, 703 S.E.2d 488 (N.C. Ct. App.

2011).

Page 3 VOLUME XI, ISSUE 2

CASES AND RULINGS OF CURRENT INTEREST

Don’t get bogged down

with historical reconstruction, TEdec

can help meet your time deadlines.

TEdec Service Bureau

TEdec Systems, Inc. through its service bureau,

can assist you with the following:

Upload Data into TEdec; Prepare Reports: Court Inventories Court Accountings, and Management Reports; Prepare Estate Tax

Returns; Prepare Fiduciary

Income Tax Returns.

Give AMBER a call at TEdec Support (716-938-9137)

and she can give you a quote on any of these items.

QUESTION

What is the size and font that TEdec uses to print reports?

ANSWER

The size and font of the TEdec report is Arial, size 10, regular type. If you wish to augment an accounting with additional exhibits, we recommend that you use this font and size.

QUESTION

How do I handle the sale of a cooperative apartment?

ANSWER

Cooperative apartment ownership is represented by shares in the cooperative. Setting up and selling the shares of the cooperative apartment will depend upon how you want this to appear on your accounting. If you want the inventory of the co-op shares to appear under the schedule of Principal Received, then inventory the co-op shares as stock. If you want the share of the co-op to appear in the section of Real Property on the Principal Received, then inventory the co-op shares as stock and then on the journal record change the sub-code for Principal Received from Stocks to Real Property. Regarding the sale of the co-op shares: 1. Go to Completrac Maintenance, select the

cooperative shares completrac and change the classification from stocks to real property.

2. Record the sale of the co-op shares—you will receive the windows for adjustments and credits and sale of real property.

3. The sale of the cooperative shares will appear on Schedule A1 (Realized Increases) or Schedule B (Realized Decreases) under the section of Real Property. If you want to

this appear under the section of Stocks, to the journal record and change the fiduciary sub-code from Real Property to Stocks and Mutual Funds.

COMMENT: Whether you want the cooperative shares to be real property or securities, as a suggestion, the better presentation of the data would be to have the sub-sections consistent between Schedule of Principal Received and the Schedule of Realized Increases/Decreases.

Page 4

Common Questions

at TEdec Support/Customer Care

TEdec Systems, Inc.

207 Court Street, Little Valley, New York 14755

Tel: 716-938-9137 Fax: 716-938-6155

www.tedec.com

Amber [TEdec Service Team]: I am writing to

thank you for the wonderful experience we have

had with you recently. Anne Ruffer and I had an

opportunity to review the Account this morning and

it is perfect. Your turnaround time was extremely

prompt and you were always very helpful, courteous

and patient with me. We are very impressed by

your professionalism and we are looking forward to

working with you again in the future.

Thanks again, Kate

Kate Welch, Mackenzie Hughes, LLP, Syracuse, NY

As always, should you have any questions concerning the TEdec Program, please do not hesitate to call

TEdec Support/Customer Care.