William Penn Life, 1993 (28. évfolyam, 1-11. szám)
1993-10-01 / 10. szám
Page 2, William Penn Life, October 1993 William Penn LIFE Official Publication of the William Penn Association Published Monthly Office of Publication: 709 Brighton Road Pittsburgh, PA 15233 Phone: 412/231-2979 Third Class U.S. Postage Paid Pittsburgh, PA Permit No. 2724 E. E. Vargo Editor-in-chief George S. Charles, Jr. Frances A. Furedy Associate Editors John E. Lovász Managing Editor NATIONAL OFFICERS E. E. Vargo National President George S. Charles, Jr. National V.P./Secretary Frances A. Furedy National V.P./Treasurer Robert A. Kapinus Assistant Treasurer BOARD OF DIRECTORS Joseph P. Arvay Chairman Michael J. Hrabar Vice Chairman Roger G. Nagy Vice Chairman Anthony C. Beke Charles S. Fabian Louis A. Fodor Elmer A. Furedy Barbara A. House Michael R. Kara Michael F. Tomcsak Elmer W. Toth Frank J. Wukovits, Jr. Frank J. Radvany Secretary of the Board AUDITING COMMITTEE Charles J. Furedy Robert A. Ivancso Co-Chairmen Margaret H. Boso Secretary Dennis A. Chobody Joseph Hamari Ernest J. Mozer, Sr. CONSULTANTS Bruce &. Bruce Company Actuary Horovitz, Rudoy &c Roteman C.P.A. Rothman Gordon Foreman & Groudine, P.C. General Counsel Dr. Julius Kesseru Medical Director Unsolicited articles, letters, manuscripts, pictures and other material submitted to the WILLIAM PENN LIFE are forwarded at the owner's risk, and the WILLIAM PENN LIFE expressly denies any responsibility for their safekeeping or return. The WILLIAM PENN LIFE reserves the right to edit, revise or reject any article submitted for publication. Postmaster: If undelivered, please send form 3579 to: William Penn Association 709 Brighton Road Pittsburgh, PA 15233 Members shine at Miss Magyar contest McKEESPORT, PA - Several William Penn members were among the winners of the recently held Miss Magyar of Western Pennsylvania and Hungarian Princess contests. The contests were part of an annual picnic hosted by the William Penn Association Magyar Folk Dancers in McKeesport. Judit Borsay, 7, a member of Branch 296 Springdale, Pa., was crowned the Hungarian Princess. Judit, daughter of the Rev. Daniel and Judit Borsay of McKeesport, received a crown, trophy, banner, medallion and flowers. In the Miss Magyar contest, Kelly Cloherty, a member of Branch 89 Homestead, Pa., was named first runner-up. Kelly, a student at Carnegie Mellon University, is the daughter of Norma J. Cloherty of Munhall, Pa. Julie Ann Nagy, a member of Branch 226 McKeesport, was named second runner-up. Julie is a student at West Virginia University and is the daughter of Jay and Julie Nagy of White Oak, Pa. The title of Miss Magyar went to Sandra Szepesi, daughter of Bob and Joan Szepesi of White Oak. Sandra, a student at Duquesne University in Pittsburgh, received a crown, banner, trophy, medallion, flowers and a $100 bond. The Hungarian Princess’ court includes Judit’s sister, Mimi Borsay, who was named first runnerup, and Tiffany Cibula of Munhall, Pa., daughter of Pam Cibula. Completing Miss Magyar’s court was third runner-up Alexandra Zavalydriga, a student at McKeesport Area High School and daughter of Joseph and Denise Zavalydriga of White Oak. The Association congratulates Judit, Kelly, Julie and all the winners. Letter to the Editor Late director’s family expresses appreciation We send a heartfelt "thank you” to one and all who sent memorial contributions to the William Penn Fraternal Association Scholarship Foundation, Inc., or to the Bayard Street Presbyterian Church in memory of Michael Hegedűs, husband, father and fraternalist. We also thank all those who sent cards and messages of sympathy. Barbara Hegedűs and Family MICHAEL HEGEDŰS 1916-1993 Member Judit Borsay (front, center) was named Hungarian Princess and Sandra Szepesi (back, center) was crowned Miss Magyar of Western Pennsylvania at a recent picnic hosted by the William Penn Association Magyar Folk Dancers. Their courts included (front, from left): Mimi Borsay, first runner-up, and Tiffany Cibula, and (back) Alexendra Zavalydriga, third runner-up, and member Kelly Cloherty, first runner-up. (Photo by Arthur Zielinski, McKeesport (Pa.) Daily News) Articles & photographs for the November issue of the William Penn Life are due in our office by October 22,1993 Irrevocable Life Insurance Trusts By Emil W. Herman, Esq., General Counsel In this, the fourth in our series of articles highlighting the many opportunities for estate and business planning provided by life insurance, we begin our look at the more exotic opportunities which are still available, even after the passage of the Omnibus Revenue Reconciliation Act of 1993. This article considers in more detail the irrevocable life insurance trust. Remember first that the proceeds of insurance on your life will be included in your estate for federal estate tax purposes if: (a) you possessed i any "incidents of ownership” in the policy within the three (3) years immediately preceding your death; or, (b) the policy proceeds were payable to your estate. You can have incidents of ownership even if you do not have outright and complete ownership of the policy. For example, if you have only the power to change the beneficiary or to borrow against the policy or to cancel the policy, you have an incident of ownership. If you have such incidents and wish to rid yourself of them, you cannot simply transfer them to another and avoid the tax result immediately. Rather, under Section 2035 of the Internal Revenue Code, you must also survive that transfer by three years. Who, then, should own the policy? It could be owned by your spouse or your children, the persons whom you intend to benefit from the proceeds. This solution, however, may pose as many problems as it solves. Your child may be a minor and thus an inappropriate choice as owner. Moreoever, the owner, not you, selects the beneficiary of the proceeds and that selection may be inconsistent with your own intentions. Finally, the proceeds, to the extent not consumed in the beneficiary’s lifetime, will be included in the beneficiary’s estate. The irrevocable life insurance trust can avoid these problems. The trustee named by you under the irrevocable life insurance trust agreement becomes the owner and is named as the beneficiary of the insurance proceeds. In the trust agreement (as you do in your will), you tell the trustee how to distribute the insurance proceeds after you have died and the trustee is required to follow your instructions. If you create such a trust, transfer a policy which you own today to it, and survive the transfer by three years, no portion of the proceeds will be included in your estate when you die. In addition, if the trustee applies for new insurance on your life for the trust, no portion of the proceeds will be included in your federal taxable estate even if you die within three years of the date the insurance is purchased. Finally, if under the trust agreement you do not give the beneficiary the unrestricted power to determine to whom the trust property will pass at his or her death, then the life insurance is free of tax even at the beneficiary’s death. Thus, through an irrevocable life insurance trust agreement, the proceeds of insurance on your life can be made available to care for your surviving spouse throughout the spouse’s lifetime and pass to your children free of federal estate tax. There are several technical requirements which this type of trust must satisfy. In our next article, we will examine them in more detail. Emii W. Herman, Esq., is general counsel to William Penn Association and senior member of the Pittsburgh law firm of Rothman Gordon Foreman & Groudine, P.C.
