I hope that this message finds you and yours safe and well.
Thank you for your membership in the NCBA’s Corporate Counsel Section—and also for the opportunity to serve as your Section Chair for the 2020-21 bar year.
While COVID-19 will no doubt present several challenges for our Section this year, I am honored to work alongside an exceptional team of council and committee chairs and members. Together with the NCBA’s dedicated staff, we pledge to continue providing first-rate programs and resources that will be valuable to you and your organizations.
https://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.png00CorporateCounselhttps://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.pngCorporateCounsel2020-08-17 15:58:452020-08-17 15:59:10Greetings and Welcome to the 2020-21 Bar Year
Whole life insurance, when distinguished from term life insurance, has several qualities that may create surprising tax results. One of these potential pitfalls can arise when taxpayers take out policy loans on their whole life policies. These loans, when received by the taxpayer, are not taxable income so long as they do not exceed the amount paid in premiums and a termination event does not occur. Prepaying such a loan is usually not mandatory, as any debt outstanding upon the insured’s death will be deducted from the policy payout to beneficiaries.
While these are helpful benefits, they can be double-edged if the taxpayer is forced to surrender the policy or if it lapses. In either of these cases, the loan (plus accrued interest) is taxable, and a Form 1099-R will be issued. This income is cancellation of indebtedness income consistent with Tufts and its progeny, as explained by the Tax Court in Mallory v. Commissioner, T.C. Memo 2016-110.
https://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.png00TAXhttps://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.pngTAX2020-08-14 15:28:382020-08-14 16:06:07Tax Consequences of Terminating Whole Life Insurance with Existing Policy Loans
Under the leadership of the 2019-2020 North Carolina Bar Association’s Paralegal Division (NCBA PD) and former Chair, Leslie Pegram, the 2019 Survey Committee was formed. The 2019 Survey Committee was composed of NCBA PD Council Members Mollie Schwam and Jennifer Smith-Sutphin, Co-chairs, and Tina Thacker. The goal of the survey was to build upon the results of the previous survey (the last survey was completed in 2010) and to share the general composition of the NCBA paralegal community. The survey covers credentials, practice areas, and other information, which may be of interest to the paralegal community. While the original survey included questions regarding compensation and benefits, those results have been omitted from final publication at the request of the NCBA; otherwise, survey results are presented here in the original form.
Looking for another way to market your elder law and estate planning practice? Divorce attorneys can be a great referral source of potential clients who find themselves in need of updating their estate plans. One method of encouraging divorce attorneys to refer your firm to their clients is to give them something of value that they can provide to their clients.
I prepared a summary, which I include below, that describes how marriage, divorce and death can affect a spouse’s Social Security benefits. My aspiration would be to provide this summary (including my name and contact information) to nearby divorce attorneys and let the divorce attorneys hand my summary out to their clients.
While there are plenty of topics that elder law attorneys could cover to assist a person going through a divorce, I realize that the time and research necessary to devote to creating the summary is usually the biggest impediment. If you wish to start with a summary of Social Security benefits, please feel free to cut and paste and utilize any part of my summary that you feel would be useful in creating your own document. Good luck, and let me know how this works for you.
https://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.png00ElderLawhttps://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.pngElderLaw2020-08-14 12:36:412020-08-14 12:36:40A Marketing Idea for Elder Law Attorneys
National and international manufacturing companies continue to open new manufacturing facilities and expand their existing facilities in North Carolina and South Carolina. This raises the issue of whether the manufacturing equipment used in such facilities must be installed by a licensed contractor under a building permit. It is not uncommon that such equipment is manufactured oversees and for the foreign vendors to fly their employees into the United States to install the equipment. In a recent article, I discuss the contractor licensure requirements and/or exemptions in North and South Carolina for industrial equipment installation. Click here to read the article.
https://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.png00Constructionhttps://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.pngConstruction2020-08-12 12:14:522020-08-12 12:37:38Is a Contractor’s License and Building Permit Required to Install Industrial Manufacturing Equipment in North and South Carolina?
This article was originally published on the UNC School of Government blog On the Civil Side and has been republished with permission.
No More Minors in Jails
Many people assumed that the implementation of raise the age on December 1, 2019 meant the end of confinement of anyone under 18 in a jail. That was not the case. Even under our new legal framework for juvenile jurisdiction, some youth under 18 still have cases that are handled in criminal court from the very beginning. There is currently no legal mechanism to house these youth in a juvenile detention facility instead of a jail. This changes on August 1, 2020, when Part II of Session law 2020-83 takes effect.
https://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.png00JuvenileJusticehttps://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.pngJuvenileJustice2020-08-05 10:38:322020-08-05 10:55:14No More Minors in Jails
Members of the Sports & Entertainment Law (“SEL”) Section found the following recent third-party articles to be of potential interest to the Section. Feel free to reach out to the SEL Section communications chair, Kelly Ryan, if you would like to submit either personally written pieces or other third-party articles that would be of interest to SEL Section members.
This blog post summarizes some of the recent activities of the newly formed North Carolina Task Force for Racial Equity in Criminal Justice (“TREC”) chaired by N.C. Supreme Court Justice Anita Earls and N.C. Attorney General Josh Stein. The TREC consists of 24 individuals representing policy makers, civil rights advocates, judges, defense attorneys, prosecutors and law enforcement officers. The full membership can be found at the TREC’s website at www.ncdoj.gov/TREC.
The TREC has had two meetings and one public comment session. The first meeting on July 10, 2020, included an introduction by Gov. Roy Cooper. Justice Earls and Attorney General Stein explained how the TREC would accomplish its work. The members then each shared what they hoped they could contribute to the TREC and what perspective they hoped they could gain from the TREC to share with their organizations and to encourage and enact further meaningful change to the criminal justice system.
https://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.png00CriminalJusticehttps://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.pngCriminalJustice2020-07-31 12:27:122020-07-31 12:28:34The N.C. Task Force for Racial Equity in Criminal Justice
This article has been republished with permission from Waldrep LLP.
It is July of 2020, and domestic and international news cycles are full of stories of global pandemic, record unemployment, and an uncertain path towards international economic recovery. In light of the extraordinary circumstances being reported, it is important to remember that, in more mundane (or even strong) economic conditions, businesses and individuals have always found it necessary to avail themselves of bankruptcy protections.
Externalities, such as poor market conditions and pandemics, often serve to exacerbate existing financial issues. In fact, this May, clothing retailers J.Crew, Neiman Marcus, and J.C. Penney all filed petitions for Chapter 11 Reorganization, after years of struggling sales coupled with recent store closures, the result of the COVID-19 pandemic. Several other notable retailers have followed suit. However, internal issues, absent such externalities, are typically the primary drivers of business bankruptcies. A business may suffer from inflexible management or adhere to strategies that prove unsuccessful—the familiar names of department stores and other brick-and-mortar retail giants have graced the news with bankruptcies throughout the past decade. A business may struggle with cash flow, have its access to financing cut off, or may be overburdened with uneconomical contracts. Assets that could be liquidated to increase cash flow may be encumbered by liens, making those assets unattractive to buyers.
https://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.png00Bankruptcyhttps://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.pngBankruptcy2020-07-31 11:10:032020-08-12 17:36:00Help! Should My Business File for Bankruptcy Protection?
As most of you are painfully aware, it doesn’t appear that the coronavirus or the statewide coronavirus restrictions we have been living with since March are going away anytime soon.
Just this week, Gov. Cooper announced a new Executive Order to limit alcohol sales at restaurants after 11 p.m. Although it received much less media attention, this week also included a new Order from Chief JusticeBeasley extending Emergency Directives 2-8 until August 28.
The new order simply extends current restrictions, but as a refresher, practitioners may expect the following modifications to court operations:
Greetings and Welcome to the 2020-21 Bar Year
Corporate CounselDear Colleagues:
I hope that this message finds you and yours safe and well.
Thank you for your membership in the NCBA’s Corporate Counsel Section—and also for the opportunity to serve as your Section Chair for the 2020-21 bar year.
While COVID-19 will no doubt present several challenges for our Section this year, I am honored to work alongside an exceptional team of council and committee chairs and members. Together with the NCBA’s dedicated staff, we pledge to continue providing first-rate programs and resources that will be valuable to you and your organizations.
Read more
Tax Consequences of Terminating Whole Life Insurance with Existing Policy Loans
Tax SectionWhole life insurance, when distinguished from term life insurance, has several qualities that may create surprising tax results. One of these potential pitfalls can arise when taxpayers take out policy loans on their whole life policies. These loans, when received by the taxpayer, are not taxable income so long as they do not exceed the amount paid in premiums and a termination event does not occur. Prepaying such a loan is usually not mandatory, as any debt outstanding upon the insured’s death will be deducted from the policy payout to beneficiaries.
While these are helpful benefits, they can be double-edged if the taxpayer is forced to surrender the policy or if it lapses. In either of these cases, the loan (plus accrued interest) is taxable, and a Form 1099-R will be issued. This income is cancellation of indebtedness income consistent with Tufts and its progeny, as explained by the Tax Court in Mallory v. Commissioner, T.C. Memo 2016-110.
Read more
2019-2020 NCBA Paralegal Division Survey Results
Paralegal DivisionBy Mollie Schwam, Jennifer Smith-Sutphin, and Tina Thacker
Under the leadership of the 2019-2020 North Carolina Bar Association’s Paralegal Division (NCBA PD) and former Chair, Leslie Pegram, the 2019 Survey Committee was formed. The 2019 Survey Committee was composed of NCBA PD Council Members Mollie Schwam and Jennifer Smith-Sutphin, Co-chairs, and Tina Thacker. The goal of the survey was to build upon the results of the previous survey (the last survey was completed in 2010) and to share the general composition of the NCBA paralegal community. The survey covers credentials, practice areas, and other information, which may be of interest to the paralegal community. While the original survey included questions regarding compensation and benefits, those results have been omitted from final publication at the request of the NCBA; otherwise, survey results are presented here in the original form.
Go to the Survey Results.
A Marketing Idea for Elder Law Attorneys
Elder & Special Needs LawBy David W. Silver
Looking for another way to market your elder law and estate planning practice? Divorce attorneys can be a great referral source of potential clients who find themselves in need of updating their estate plans. One method of encouraging divorce attorneys to refer your firm to their clients is to give them something of value that they can provide to their clients.
I prepared a summary, which I include below, that describes how marriage, divorce and death can affect a spouse’s Social Security benefits. My aspiration would be to provide this summary (including my name and contact information) to nearby divorce attorneys and let the divorce attorneys hand my summary out to their clients.
While there are plenty of topics that elder law attorneys could cover to assist a person going through a divorce, I realize that the time and research necessary to devote to creating the summary is usually the biggest impediment. If you wish to start with a summary of Social Security benefits, please feel free to cut and paste and utilize any part of my summary that you feel would be useful in creating your own document. Good luck, and let me know how this works for you.
Read more
Is a Contractor’s License and Building Permit Required to Install Industrial Manufacturing Equipment in North and South Carolina?
Construction Law SectionBy David J. Parrish
National and international manufacturing companies continue to open new manufacturing facilities and expand their existing facilities in North Carolina and South Carolina. This raises the issue of whether the manufacturing equipment used in such facilities must be installed by a licensed contractor under a building permit. It is not uncommon that such equipment is manufactured oversees and for the foreign vendors to fly their employees into the United States to install the equipment. In a recent article, I discuss the contractor licensure requirements and/or exemptions in North and South Carolina for industrial equipment installation. Click here to read the article.
No More Minors in Jails
Juvenile Justice & Children's RightsThis article was originally published on the UNC School of Government blog On the Civil Side and has been republished with permission.
Many people assumed that the implementation of raise the age on December 1, 2019 meant the end of confinement of anyone under 18 in a jail. That was not the case. Even under our new legal framework for juvenile jurisdiction, some youth under 18 still have cases that are handled in criminal court from the very beginning. There is currently no legal mechanism to house these youth in a juvenile detention facility instead of a jail. This changes on August 1, 2020, when Part II of Session law 2020-83 takes effect.
Read more
SEL Section – Articles of Interest (July 2020)
Sports & Entertainment Law SectionMembers of the Sports & Entertainment Law (“SEL”) Section found the following recent third-party articles to be of potential interest to the Section. Feel free to reach out to the SEL Section communications chair, Kelly Ryan, if you would like to submit either personally written pieces or other third-party articles that would be of interest to SEL Section members.
Virtual Events Raise Real World Legal Issues
Senators Plan to Introduce Federal Legislation to Eliminate Use of COVID-19 Student-Athlete Liability Waivers
Ivy League Reinforces Its Commitment to Student-Athlete Safety With Cancellation of Fall Sports Amid COVID-19 Spikes
Read more
The N.C. Task Force for Racial Equity in Criminal Justice
Criminal JusticeThis blog post summarizes some of the recent activities of the newly formed North Carolina Task Force for Racial Equity in Criminal Justice (“TREC”) chaired by N.C. Supreme Court Justice Anita Earls and N.C. Attorney General Josh Stein. The TREC consists of 24 individuals representing policy makers, civil rights advocates, judges, defense attorneys, prosecutors and law enforcement officers. The full membership can be found at the TREC’s website at www.ncdoj.gov/TREC.
The TREC has had two meetings and one public comment session. The first meeting on July 10, 2020, included an introduction by Gov. Roy Cooper. Justice Earls and Attorney General Stein explained how the TREC would accomplish its work. The members then each shared what they hoped they could contribute to the TREC and what perspective they hoped they could gain from the TREC to share with their organizations and to encourage and enact further meaningful change to the criminal justice system.
Read more
Help! Should My Business File for Bankruptcy Protection?
BankruptcyEvan Lee
John Van Swearingen
By Evan Lee and John Van Swearingen
This article has been republished with permission from Waldrep LLP.
It is July of 2020, and domestic and international news cycles are full of stories of global pandemic, record unemployment, and an uncertain path towards international economic recovery. In light of the extraordinary circumstances being reported, it is important to remember that, in more mundane (or even strong) economic conditions, businesses and individuals have always found it necessary to avail themselves of bankruptcy protections.
Externalities, such as poor market conditions and pandemics, often serve to exacerbate existing financial issues. In fact, this May, clothing retailers J.Crew, Neiman Marcus, and J.C. Penney all filed petitions for Chapter 11 Reorganization, after years of struggling sales coupled with recent store closures, the result of the COVID-19 pandemic. Several other notable retailers have followed suit. However, internal issues, absent such externalities, are typically the primary drivers of business bankruptcies. A business may suffer from inflexible management or adhere to strategies that prove unsuccessful—the familiar names of department stores and other brick-and-mortar retail giants have graced the news with bankruptcies throughout the past decade. A business may struggle with cash flow, have its access to financing cut off, or may be overburdened with uneconomical contracts. Assets that could be liquidated to increase cash flow may be encumbered by liens, making those assets unattractive to buyers.
Read more
Chief Justice Cheri Beasley Extends COVID-19 Modifications to Court Operations
Litigation SectionBy Adam Banks
As most of you are painfully aware, it doesn’t appear that the coronavirus or the statewide coronavirus restrictions we have been living with since March are going away anytime soon.
Just this week, Gov. Cooper announced a new Executive Order to limit alcohol sales at restaurants after 11 p.m. Although it received much less media attention, this week also included a new Order from Chief Justice Beasley extending Emergency Directives 2-8 until August 28.
The new order simply extends current restrictions, but as a refresher, practitioners may expect the following modifications to court operations:
Read more