COCOON USE SPREADS IN ASEAN REGION

The use of Cocoons are spreading throughout Indonesia, the Philippines, and the rest of the ASEAN region. Check out these pictures from Alnor Limbo, GP Customer Support Engineer, which shows installations of Cocoons in the region.

According to Limbo, "Cocoons are non-chemical storage solutions that are designed to effectively control insect infestation on dry agricultural commodities." With the reliance of most food producers in chemical fumigants, Cocoons offer a more sustainable and cleaner solution to storing a wide range of grains and seeds.

The GrainPro Cocoon employs the principles of Ultra Hermetic storage, modified atmospheres and organic pest control. The combination is a gas- and watertight container that prevents the exchange of air and moisture. This results in the complete elimination of insects (in all life stages) embedded with the stored crops, the inhibition of aflatoxin-producing moulds, and the preservation of the crops for longer than its regular shelf life without any chemical residues.

Hermetic storage solutions, such as the Cocoon, is leading a global revolution in how food is preserved. Tighter international laws and trade agreements are calling for the reduction and complete ban of several chemical fumigants and pest-control systems. This makes the use of organic storage and pest-control systems very appealing for food producers and traders.

Project Origin: A VIDEO Recap of the “Best Of” Awards and Auctions

The Project Origin - Best of El Salvador pilot was held last May 2 to 8, 2016. It was a huge success that resulted in increased profits – up to 480% for some farmers – and creation of stronger relationships between local producers and roasters around the world. To preserve the quality of auctioned off varieties, GrainPro® SuperGrainbags® were used (see video).

Project Origin travels to coffee producing countries where they meet local with producers to find the best coffees, which they enter into competitions and auctions. The program, still in its early stages, is already help coffee farmers increase their incomes.

For example, Ever Leonel Díaz Pérez, the 2016 El Salvador Washed Champion. Pérez produces only 6 to 15 bags a year, which prevented him from entering cupping competitions. He would sell his coffee for around $2 a pound to other producers. This year, it was a different story. He came up with the best coffee, which he sold for $9.60 a pound.

Better storage means better coffee

Ever wonder why gourmet and specialty coffee shops serve the best and, not to mention, the most expensive cups of coffee?

It’s a known fact that coffee is best served when it’s at its freshest. Freshness is a big deal especially in the coffee business. The quicker you can pack and serve that freshness, the more the competitive edge your product has in the market.  The aroma, texture and flavour are simply better – but it also comes at a price that is more expensive, usually.

According to experts, ground coffee starts to go stale less than a minute after grinding. Coffee beans begin to lose their freshness about half an hour after the bag is opened. Finally, even if the bag is sealed, coffee turns bad in a month. They recommend consuming coffee as quickly as possible, especially in tropical countries like ours. This is why coffee is packaged to retain freshness for as long as possible.

To store coffee, an airtight container is highly recommended as it seals in the freshness. Moisture and oxidation should also be prevented. Storing dried coffee beans in regular jute bags or sacks and keeping them in a refrigerated environment isn’t enough. Using porous, natural-fibre bags to package coffee beans can negatively affect its character and quality.

The misconception that coffee has to breathe or respire is not accurate. Laboratory tests by the Agricultural Research Organization in Israel proves that coffee beans in gas tight, or hermetic, jars show no gas build up during storage even if the MC is above the Equilibrium Relative Humidity or ERH, the state where humidity, both inside and outside the bag, are balanced, thus, no exchanges in humidity, moisture and gases can occur.

Holding properly dried coffee under hermetic conditions prevents moisture ingress that could lead to loss of beans’ taste and aroma, color and density, mold infection and contamination.

With the amount of emphasis on freshness for this kind of commodity, it is necessary for it to be stored in a specialized bag that will ensure its long-term freshness. Independent studies in Costa Rica revealed that coffee stored in gas tight conditions are better because it preserves the desirable moisture content or MC.

Plastic has increasingly become a popular solution for packaging and storing beans from the point of origin.  Its use is on the rise, thanks to importers who push growers to seal coffee in airtight sacks for shipping. Such solution is actually being produced here in the Philippines.

Since it opened its manufacturing and sales headquarter in Subic Bay, GrainPro, Inc. has been producing innovative ultra hermetic solutions for various food crops here and throughout the world. One such innovation is their miracle bag called the SuperGrainbag™ or SGB which is guaranteed to lock and store the freshness of a wide range of agricultural commodities, including rice and coffee.

Made from polyethylene with five co-extruder layers, the SGB is sturdy, strong and prevents oxygen from penetrating the bag. It is free from any harmful chemicals and other toxic components.In fact, an independent laboratory in China, LabThink, concludes that SuperGrainbags are 500 times more airtight than regular bags and bags from imitators.

Finally, it is very cost-effective because the bags are made from inexpensive materials. Thus, each one is sold without hurting the bottom line too hard and provides that much needed extra to safeguard the freshness of commodities.

Coffee is a huge global industry. Experts regard coffee as the most traded food commodity in the world. Here in the Philippines, the local coffee sector’s estimated worth is around P40 billion. The industry employs about 70,000 farmers in 22 provinces and yields about 25,000 metric tons annually. Despite this, local production can’t fill the 100,000 metric tonne demand. This pushes traders to import the rest.

Connoisseurs and enthusiasts involved in the coffee business who tried SuperGrainbags attest to its usefulness especially against the varying humidity and moisture involved in the shipping of exported varieties. To them, the SGB is a safe, efficient and inexpensive solution which guarantees their product’s utmost quality.

Mr. Lorenzo Reyes, Co-founder and Roaster of Roasters Juan’s in Manila was initially sceptical. “Storing my green coffee in jute sacks could be a huge recipe for disaster. I learned this the hard way a few years back. I used to store my treasured inventory of green beans in pretty, photogenic jutes because I thought GrainPro bags were too expensive. Little did I know, pests can easily cause problems to my stocks. And when the rains came, humidity levels reached 100%. Big problem!” he told us.

Now, he only has nice things to say about the GrainPro SuperGrainbags:

“I have been and remain a convert to hermetic storage, and I don’t hesitate to share this experience with friends and colleagues in my industry. Without a doubt, using SuperGrainbags will help ensure that your green bean inventory retains its quality levels. What’s your alternative? Think about it.”

With a wide range of solutions for all types of agricultural products, GrainPro has built a reputation as the experts in ultra hermetic™ technology. Coffee isn’t the only commodity that can benefit from GrainPro’s innovations in drying and storage. Over two decades of experience and knowledge has allowed them to come up with products that guarantee to store dried food crops for prolonged period sans the need for chemicals or refrigeration. It is proven to retain the freshness and overall quality of any dried food crop including rice, corn or wheat. 

More Reforms For Worker Safety

A safer workplace makes for happier and more productive employees. With so many on-the-job injuries occurring on a daily basis, workplace safety remains a key concern in the country’s labor industry.

A recent report released by the National Council for Occupational Safety and Health or National COSH pair personal stories to government data. The report highlights the need for more reforms on worker health and safety.

Released just days before the Workers’ Memorial Day weekend, the report reflects on recent accidents from 2011 and reminds employers to follow proven safety practices and complying with standards imposed by OSHA. Unfortunately, many companies complain about these regulations, choosing profits before employee safety.

The report also pushes for reforms designed to better protect temps, immigrants and energy-sector workers who work in hazardous workplaces. It emphasizes the need for adequate training and better safety protocols. It also puts emphasis on workplace violence, inadequate fines for violations, and whistle blower protection.

The numbers are baffling. According to supporting figures, nearly 13 workers are killed on the job every day. This is a clear warning sign to legislators to come up with tougher laws that would encourage employers to take workers’ safety more seriously and allow workers to make it home safely after their shift.

As many of these accidents are preventable, it is hoped that the eye-opening report makes an impact among federal and state lawmakers in the hopes of exposing any shortcomings in the system.

While lawmakers put more time in debate and less in actually legislating reforms that support worker safety, victims are often encouraged to speak to an Occupational Safety and Health Administration official for assistance.

About The Author

Victor Dela Casa is a Filipino-Canadian who spent over a decade working as a business professional in Canada. Worked in IT, finance, marketing, international trade, public service, project management and the maritime industry. Earned degree in Economics from the University of the Philippines and Business Administration Honours from Eastern College. Currently based in the Philippines and working as a professional writer for a multi-national business processes firm.

Funding Your Living Trusts

Living trusts allow a family to customize their estate planning based on the individual needs of each family member. It is also effective in avoiding taxes as well as the probate process which we all know can be very expensive.

The death of a loved one can start off a complex legal and business process. Often, it falls to relatives to deal with the affairs of the departed’s estate. It is important that living trusts and wills are carried out and followed through to avoid issues that hurt beneficiaries after the departure of their relative.

Typically, it is important to start funding a living trust while the person is still around to do so. The effectiveness of a living trust is dependent on this. It means that trusts needs to have assets re-titled to it in order to reflect the ownership of the trust. Bank accounts, investments, stocks, bonds and assets all have to be re-titled accordingly.

Bank accounts can be easily transferred and bank managers can assist in the process. Investment accounts require that a new account be established first before transferring existing accounts. Stocks are a bit more complicated as it will require a stock power which must include a Medallion guarantee stamp. Savings bonds require that government forms be filled out and stamped with the same Medallion stamp.

Real estate is transferred into a trust through a new deed prepared by an attorney. Personal property can be willed into a trust or transferred using an Assignment of Personal Property. Approval of other partners is required before interests in private stocks can be transferred. This may require a lawyers help. Life insurance can be easily designated to the trust which will act as the beneficiary of the policy.

Finally, like most states, retirement accounts like IRAs may require the help of an expert. Often IRAs are not taxed while it is locked. A transfer of these accounts may have serious tax ramifications.

This is why the help of a knowledgeable legal professional may prove invaluable in estate planning because they have the knowledge and experience to properly manage and execute any estate plans. Legal professionals are able to sit down, discuss available strategies and even do the necessary legwork. They can also be relied on to carry out the estate’s will and trust.

About The Author

Victor Dela Casa is a Filipino-Canadian who spent over a decade working as a business professional in Canada. Worked in IT, finance, marketing, international trade, public service, project management and the maritime industry. Earned degree in Economics from the University of the Philippines and Business Administration Honours from Eastern College. Currently based in the Philippines and working as a professional writer for a multi-national business processes firm.

Rich Thinks Highly of Prenups

Hollywood helped make prenups quite popular in recent years. Despite its new found popularity, bringing up the subject of prenuptial agreements can still open up a can of worms causing partners to question trust and honesty concerns.

According to a 2012 American Institute of CPAs survey, money is a big source of problem between couples. It is among the biggest reason for many bouts between couples which eventually leads to a divorce. Many wealthy investors however see advantages in prenups seeing them as a tool that can easily sort out disputes. 

Wealthy folks, those with at least $5 million in net assets, were recently surveyed by an investment site about prenups which found that almost all of them were in favor of having such legal documents before saying “I do.” In fact, over two-thirds of this exclusive group recommends preparing and signing prenuptial agreements to anyone looking to marry.

The survey also asked what advantages a prenuptial agreement presents. The respondents pointed out four major benefits namely asset protection, opens up discussions, protection for heirs and inheritors, and property division.

Of course, a prenup is designed to protect one’s assets and separates any liabilities acquired prior to marriage. On this end, it can do wonders especially in a property dispute ensuring a smoother sailing divorce. It also prevents spouses from acquiring these pre-marital assets should children be named as benefactors.

The survey also found that respondents believe discussions about prenups, as difficult as it may be, can get couples accustomed to talking about their finances. It allows for a frank and open discussion of money concerns, not just of assets but of all liabilities as well.

Prenuptial agreements are a thorny subject that many find intimidating to talk about. But if we consider the opinions of the wealthy and powerful, we will find that there are benefits to opening up discussions on the matter.

About The Author

Victor Dela Casa is a Filipino-Canadian who spent over a decade working as a business professional in Canada. Worked in IT, finance, marketing, international trade, public service, project management and the maritime industry. Earned degree in Economics from the University of the Philippines and Business Administration Honours from Eastern College. Currently based in the Philippines and working as a professional writer for a multi-national business processes firm.

Forgiven Debts Are Also Taxed

Those who struggle to pay their debts have several options available to them. Speaking to a bankruptcy and debt solution professional is one. Others can opt to settle debts on their own.

If a debtor opts to do the latter, they may find that it can get complicated especially for those lacking the negotiation skills needed for such tasks. For those who can, however, talking to creditors to settle or lower credit card debts can be a rewarding experience.

Many creditors are willing to negotiate to settle debts if they know that the customer will not be able to pay in full. With the economic crisis as it is, many took advantage of debt forgiveness opportunities last year. What many doesn’t know is that settling debts and any debts forgiven are considered by the Internal Revenue Service as taxable income and will be taxed come tax season.

The cutoff amount is set at $600. This means that creditors that agreed to reduce the outstanding debt by an amount lower than the cutoff is not obligated to pay any taxes while a higher amount than the cutoff is taxed automatically. Failure to recognize this and not declaring it can put someone at risk of being audited or hit with penalties and interests.

Debtors assume that pardoned debts are not considered as income since no actual money changed hands during the settlement. Many creditors and debt settlement companies too are guilty of not disclosing this information after the debt has been settled.

No laws are in place that obligates creditors to provide the information. Debtors just find out about it once the 1099-C from arrive in the mail or if the IRS calls them for not paying taxes on the tax liability reported by the creditor.

A 1099-C form is a complicated debt forgiveness form that requires all information is correct and accurate. Those intrepid enough to file their own will find that filing it and paying the taxes is better than having to endure thousands of dollars of interest accruing debts. 

Keywords: pardoned debts, forgiven debts, bankruptcy and debt solution, debt forgiveness

About The Author

Victor Dela Casa is a Filipino-Canadian who spent over a decade working as a business professional in Canada. Worked in IT, finance, marketing, international trade, public service, project management and the maritime industry. Earned degree in Economics from the University of the Philippines and Business Administration Honours from Eastern College. Currently based in the Philippines and working as a professional writer for a multi-national business processes firm.

Oops! That Prenup May Be Invalid

One powerful tool for divorcing couples actually comes before marriage. While it may be difficult to discuss prenuptial agreements, this legal document actually has many functions that establish certain agreements between the marrying parties.

Often used by many couples to specify assets belonging to each prior to marriage, it can also serve in determining child custody and support, and alimony. For older couples, it can also be an estate planning tool with more gray couples divorcing in recent years.

One thing we learned recently, however, is that the court can invalidate a prenuptial agreement if it found substantial proof of coercion and fraudulent intent during its preparation and signing that could cause hardship to a former spouse. A recent New York story posted here can be used as an example where the judge threw out a prenup because it blatantly intended to set the spouse up to destitution.

 

To be valid, parties to a prenup must have legal representation to review and witness the signing. It should be written in a readable format, is conscionable and signed without coercion. It is executable only upon full disclosure of assets and liabilities. Failure to abide by these simple protocols may lead to invalidity.

There are still other reasons why the court may throw out a prenuptial agreement. Some are simple mistakes. According to a recent article, careless mistakes such as the paperwork not properly filed or were signed without proper legal representation may cause the court to deem the agreement invalid.

But there are also cases wherein the prenuptial agreement contains certain ridiculous and lopsided provisions that may require the court to disregard it. Such agreements include a no child support clause or provisions that discriminate and exclude a partner. These prenups will surely be thrown out during a divorce proceeding.

To be valid, parties to a prenup must have legal representation to review and witness the signing. It should be written in a readable format, is conscionable and signed without coercion. It is executable only upon full disclosure of assets and liabilities. Failure to abide by these simple protocols may lead to invalidity.

For more on prenuptial agreements, parties to a marriage may talk to a legal professional specializing in family laws. Prenuptial agreements are often complex documents that require the legal knowledge of experts who can discern through the convoluted provisions of these documents to ensure fairness and transparency.

Keywords:  child custody and support, full disclosure of assets and liabilities, legal professional, prenuptial agreements

About The Author

Victor Dela Casa is a Filipino-Canadian who spent over a decade working as a business professional in Canada. Worked in IT, finance, marketing, international trade, public service, project management and the maritime industry. Earned degree in Economics from the University of the Philippines and Business Administration Honours from Eastern College. Currently based in the Philippines and working as a professional writer for a multi-national business processes firm.

Celebs' Legal Hurdles During Adoption

The United States is a country that adopts more children than anywhere. There is this lingering gap in opinion when it comes to who is adopting.

In a recent article, the National Council for Adoption noticed the different responses of American households when it comes to celebrity adoption. They responded that celebrity adoptions are such a big deal whereas regular folks don’t make the news. For them, this is a reflection of our society.

As legal professionals sort through the complicated laws involved in domestic and international adoption, celebrities are mostly kept mum about this excruciatingly long endeavor that doesn’t guarantee any success certainties. Perhaps this is why celebrity adoptions are desperately kept hushed until they are later spotted with their new child.

The hope for many celebrity parents, like most parents, is that the right baby would find them. As long as parents remain patient during the waiting game portion of the process, and if they can give what the law believes to be the best interest of the child, things will all work out. 

The fact is that a wannabe celebrity mom goes through the same trials and legal hoops as regular folks. For all their popularity, the same rules and adoption issues still apply with only one exception – money. Having deeper pockets, and maybe the connections, allow celebrities to pay for the adoption right away and kick start the legalities involved in such an undertaking.

Unfortunately, there is this pertinent public opinion that celebrities get an edge because they are able to bend certain rules. Experts believe this to be unfounded. The myth was born out of our own desire to succeed, albeit inconspicuously, through celebrities who epitomize the meaning of the “great American experience.”

Many celebrities argue that they didn’t bypass any roadblocks that lengthen the adoption process. In fact, the government is more suspicious of them with issues of privacy always a top concern. Their inability to attend required seminars and training is often scrutinized as well. In that light, regular folks might have the slight advantage.

The hope for many celebrity parents, like most parents, is that the right baby would find them. As long as parents remain patient during the waiting game portion of the process, and if they can give what the law believes to be the best interest of the child, things will all work out.

Through proper legal channels and efforts of a trustworthy legal professional, it will eventually. Most celebrity adoptions are anonymous affairs where the role of legal professionals is of such great importance in the success of the adoption. 

Keywords: celebrity adoption, legal professional,  domestic and international adoption

About The Author

Victor Dela Casa is a Filipino-Canadian who spent over a decade working as a business professional in Canada. Worked in IT, finance, marketing, international trade, public service, project management and the maritime industry. Earned degree in Economics from the University of the Philippines and Business Administration Honours from Eastern College. Currently based in the Philippines and working as a professional writer for a multi-national business processes firm.

 

Tax Season Is Identity Theft Season

Each year, around April, Americans are engaged in the annual tax rage. With tax season in its final month, Americans are hurrying to prepare their 1040 tax returns.

At the same time, several media outlets, including the government, are warning filers of identity thieves and scam artists on the prowl for their next victims. These individuals could face federal theft charges and serious penalties if proven and convicted of such crimes.

As theft activity rises, the Internal Revenue Service or IRS released their annual top 12 or “dirty dozen” list of tax-time frauds and scams for 2013. In it, identity theft and refund fraud once again led all other 11 listed crimes remaining as the most prevalent and common form of criminal activity this time of the year in the last few years.

There is big money involved and desperate criminals are known to dip their hands into that cookie jar risking getting caught. With the emergence of new technology, criminal minds have taken their business into cyberspace as well. They’ve invaded social media and cellular technology making it a global operation.

The list also includes other top criminal activities such as phishing, return preparer fraud, income hiding, false reporting, and social security scams just to name a few.

Identity theft, of course, remains to be a major problem. The IRS reportedly investigated more than 1,460 cases since October 2011. Last year alone, 12.6 million Americans were hit by identity fraudsters and over $21 billion were stolen including tax refund monies.

There is big money involved and desperate criminals are known to dip their hands into that cookie jar risking getting caught. With the emergence of new technology, criminal minds have taken their business into cyberspace as well. They’ve invaded social media and cellular technology making it a global operation.

Because of this, the IRS warns tax-filers to be cautious and careful of their identities this time of the year. Their website offers tools and other tips that might help individuals from falling prey to scam artists.

Keywords: tax season, identity thieves, federal theft charges

About The Author

Victor Dela Casa is a Filipino-Canadian who spent over a decade working as a business professional in Canada. Worked in IT, finance, marketing, international trade, public service, project management and the maritime industry. Earned degree in Economics from the University of the Philippines and Business Administration Honours from Eastern College. Currently based in the Philippines and working as a professional writer for a multi-national business processes firm.

 

Gray Divorce On The Rise

The once unthinkable is real. There is a trend growing in the country wherein older couples, those that have at least 25 years together, are filing for divorce with many cases coming in from cosmopolitan cities like Los Angeles, New York and Dallas including several well-known public figures in the country.

According to sources, this rise in gray divorce statistics is attributed to the dramatic changes in how Americans view marriage in the last 50 or so years. With the rise of quality of life factors, those who marry nowadays have such high expectations for marital success. 

Aside from potential financial impacts, consequences of gray divorces are generally unknown. But as cases grow more and more, many older people will be suffering financial losses that are harder to recover back as they age. 

Many expect marriage to provide them not just stability and security but also self-fulfillment and personal satisfaction. This concept of individualized marriages allows roles between husband and wife to be more flexible and no longer tied to traditional status quos.

As families juggle between work and home, finding time to engage in open communication and strengthening the bonds of the relationship is becoming a huge challenge for spouses especially for those who have been together for a lengthy amount of time. Divorce becomes a solution for couples that couldn’t achieve these modern-day expectations.

Baby-boomers are in familiar territory when it comes to divorce because chances are they’ve experienced it before and eventually moved on from it. Unfortunately, remarrying poses a greater risk of ending up in divorce again with issues associated with forming a step-family. Add to that the fact that remarried individuals are often not afraid of divorces in many cases.

Aside from potential financial impacts, consequences of gray divorces are generally unknown. But as cases grow more and more, many older people will be suffering financial losses that are harder to recover back as they age.

Keywords: gray divorces, individualized marriages, financial impacts

About The Author

Victor Dela Casa is a Filipino-Canadian who spent over a decade working as a business professional in Canada. Worked in IT, finance, marketing, international trade, public service, project management and the maritime industry. Earned degree in Economics from the University of the Philippines and Business Administration Honours from Eastern College. Currently based in the Philippines and working as a professional writer for a multi-national business processes firm.

 

Dead-beat Wins Powerball Jackpot

Parents understand that it is expensive to provide for the needs of a child. There are thousands upon thousands of single parents struggling to provide the financial cost of living needs of their children relying heavily on government support through taxpayers when the other parent is not fulfilling their child support obligations. This is a very common problem and new remedies are being imposed to address the issue.

One such remedy is the garnishing of winnings in Casinos which is being run in many states in the country. Lottery winnings are also being held by the courts until child support payments owed are satisfied. Many states implement a lottery intercept program designed to get back child support owed when deadbeat parents win major prizes such as a recent jackpot winner in another state.

The winner of the recent Powerball jackpot was found to owe $29,000 in child support payments going back to 2009. The 44-year-old New Jersey father of five won the recent $338 million jackpot. He is claiming the lump-sum total of $152 million after taxes.

According to the local sheriff’s office, a warrant squad had been sent out to find the winner in hopes of resolving the matter. The state Lottery Division in that state generally satisfies child support judgments before cash winnings are issued out and that the winner is still subject to arrest until the warrant is satisfied. The dead-beat dad couldn’t be reached and his deli is now officially closed with a for sale sign.

Winning the lottery is a good life-changing event. With many buying tickets in the hopes of winning, it is quite an accomplishment to be one of the millions of people vying for perhaps one of the biggest jackpots in history. Unfortunately, not paying support obligations is more important and he might run the risk of not getting his winnings or possibly even seeing jail time.

We can not tolerate dead-beat parents. Lottery regulations are in place to ensure that payments in arrears can be claimed by the government. Those that struggle to pay and receive child support could find help from a legal professional who are knowledgeable in modifying child support rulings to make it fair for both parties.

Keywords: dead-beat parents, powerball jackpot, lottery intercept program

About The Author

Victor Dela Casa is a Filipino-Canadian who spent over a decade working as a business professional in Canada. Worked in IT, finance, marketing, international trade, public service, project management and the maritime industry. Earned degree in Economics from the University of the Philippines and Business Administration Honours from Eastern College. Currently based in the Philippines and working as a professional writer for a multi-national business processes firm.

 

Estate Planning Strategies At Risk

When the American Taxpayer Relief Act of 2012 or ATRA was passed, the nation’s legislative bodies made certain remarks that implied that the rules made permanent by the act may only be temporary. 

Add to that the fact that the 2013 proposed federal budgets could restrict established power estate planning strategies in use by many in order to end so-called tax loopholes.

The new proposed budget are considering changes that will more than likely affect Grantor Retained Annuity Trusts and, partly, Dynasty Trusts thus making both strategies potentially less appealing.

Basically, any assets in the estate will be valued consistently for income tax purposes. This means that any appreciation in the value of the assets and gifts will be reported and taxed as required. The benefits of any up-front income taxes paid will be eliminated as well.

According to sources, the government is looking to impose severe restrictions that could endanger GRAT which became popular since ATRA was allowed to impose certain leniency on estate taxes. This strategy allows for the transfer of wealth while minimizing the gift taxes on the transfers.

The system is simple enough. The grantor or testator funds an irrevocable trust with appreciating assets and retains the interest annuities for a few years. This will allow a living grantor to transfer the assets left in the trust to their beneficiaries while gaining more transfer tax benefits for the estate as the assets held by the trust appreciates.

It is looking to require estates utilizing the GRAT to have a minimum term of 10 years and another 10 years for the maximum term to mature. As a result, there is a much higher chance that the grantor could die before the maturity and will not get to see the estate and gift tax benefits.

Basically, any assets in the estate will be valued consistently for income tax purposes. This means that any appreciation in the value of the assets and gifts will be reported and taxed as required. The benefits of any up-front income taxes paid will be eliminated as well.

The new budget is also looking at the possibility of generation-skipping transfer tax exemption to terminate after 90 years for Dynasty trusts which allows generational beneficiaries long after the death of the grantor. These trusts are relatively new in the state and its rise was triggered when perpetuity rules were repealed in New Jersey.

There are other strategies available that are not impacted by the new budget. A knowledgeable legal professional could provide more information on these effective options as well as how the new budget may affect current estate planning tools and strategies.

Keywords: dynasty trusts,  tax loopholes, grantor retained annuity trusts, american taxpayer relief act

About The Author

Victor Dela Casa is a Filipino-Canadian who spent over a decade working as a business professional in Canada. Worked in IT, finance, marketing, international trade, public service, project management and the maritime industry. Earned degree in Economics from the University of the Philippines and Business Administration Honours from Eastern College. Currently based in the Philippines and working as a professional writer for a multi-national business processes firm.

Grammy Winner Files For Ch. 7

Popular celebrities are not immune to financial troubles and difficulties. Even a Grammy-winning singer from one of the country’s greatest musical families can suffer the blows of bad money decisions made on their own or by financial advisers hired to manage wealth and royalties.

Fortunately, there are bankruptcy laws that protect people with financial challenges allowing for a fresh start.

Such is the case of Ms. Dionne Warwick whose hits like the 80’s ballad “That’s What Friends Are For,” is well known and loved throughout the country. Despite having one of the most soulful voices during her heyday that earned her millions of dollars, the embattled singer filed for Chapter 7 bankruptcy protection in the state of New Jersey recently.

Ms. Warwick listed total assets of $25,500 and total liabilities of more than $10.7 million with nearly all being tax claims from California. Her monthly expenses exceed her total income. This is all attributed to financial mismanagement.

Representatives for Ms. Warwick told sources that the debts are attributed to a bad business manager who was fired years ago. They also told reporters that the singer already paid more than the principal debt and most of the amounts owed to taxes were interests that piled up when the singer were proposing a repayment plan but was rejected.

For more than 50 years, the five-time Grammy winner has topped music charts in the 1980s and 1990s building a highly successful career. Her recent stint in television hasn’t gone well and may have caused damage to her legacy. Representatives believe that she is still an in-demand artist who will be able to easily bounce back.

Bankruptcy is an effective tool that helps people going through the stress of a difficult financial situation find their footing again and attempt a brand new start with their finances. Those who are going through the same is encouraged to speak to a legal professional who could provide accurate information and sound advice on bankruptcy matters and debt solutions.

Keywords: Dionne Warwick, chapter 7 bankruptcy, difficult financial situation

About The Author

Victor Dela Casa is a Filipino-Canadian who spent over a decade working as a business professional in Canada. Worked in IT, finance, marketing, international trade, public service, project management and the maritime industry. Earned degree in Economics from the University of the Philippines and Business Administration Honours from Eastern College. Currently based in the Philippines and working as a professional writer for a multi-national business processes firm.

Bayer Settles with Contraceptive Users

The oral contraceptive market is a multi-billion dollar industry that always finds innovative ways to develop drugs that are designed to control unwanted pregnancies. Often, women who pursue an active sexual life without the fear of having children prematurely are its main demographics. Unfortunately, some products may yield unwanted results.

A defective product, especially those used for medical purposes can have a significant, often adverse, impact to the well-being of those who used it. Often, this results in a products liability lawsuit that could be costly for the medical products manufacturer such as this recent story.

One of the world’s biggest drug manufacturers agreed to settle medical products liability lawsuits filed by more than 10,000 women since 2009 over its line of oral contraceptives. 

According to the lawsuits, women suffered from excruciatingly painful gallbladder injuries from using the birth control pills. The contraceptive line is linked to serious and life-threatening injuries which include stroke and heart attack that could lead to death.

The complaints contested that the international drug manufacturer should have known about the risks and effects of its oral contraceptive pills.

The settlement agrees to pay a total of $24 million to claimants alleging gallbladder injuries. The deal was consolidated in the U.S. District Court for the Southern District of Illinois and also in other state courts that had complainants.

The company has agreed to pay each customer $2,000 with gallbladder injuries and $3,000 for those that had theirs removed. The amount could be reduced depending on the number of claims and may also be nullified if less than 90 percent of plaintiffs agreed to take part. The company claims that their product does not enhance gallbladder injuries unlike others in the market.

Keywords: gallbladder injuries, oral contraceptives, unwanted pregnancies, products liability lawsuit

About The Author

Victor Dela Casa is a Filipino-Canadian who spent over a decade working as a business professional in Canada. Worked in IT, finance, marketing, international trade, public service, project management and the maritime industry. Earned degree in Economics from the University of the Philippines and Business Administration Honours from Eastern College. Currently based in the Philippines and working as a professional writer for a multi-national business processes firm.