Knowing Your Bottom Line in a Negotiation

Event: ProVisors Panel on Negotiation
Venue: Calabasas Country Club
Location: Calabasas, Los Angeles, Ca
Speaker: Attorney Douglas Schreiber of Anker, Hymes & Schreiber, LLP

Transcription:

You need to know your bottom line.  Nowadays everybody has their heads full of all kinds of acronyms, so I am going to throw one out there:

BATNA = Best Alternative To a Negotiated Agreement

To me it is a fancy way of saying “bottom line”. That is really what it is talking about. The concept of the best agreement; what alternatives do I have?  If I am a supplier and negotiating with a distributor, do I have other people in my distribution line? Do I have to take this deal, or do I have other places to go if I don’t take this deal?

In the context of litigation (which I deal a lot with), what are my alternatives? Typically in a lawsuit if I don’t settle, I go to trial. Try to evaluate what are your options in terms of going to trial. What is your likelihood of success?

For more information about our law firm and please contact with our Real Estate Attorney in Los Angeles.

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Art of Negotiation: Starting and Pressure Points

Event: ProVisors Panel on Negotiation
Venue: Calabasas Country Club
Location: Calabasas, Los Angeles, Ca
Speaker: Attorney Douglas Schreiber of Anker, Hymes & Schreiber, LLP

Transcription:

Before you go into a negotiation you need to be prepared:

  1. What are your needs?
  2. What are your wants?
  3. What are the other sides weaknesses or pressure points?

I focus a lot on #3.  Here is a great example: My law firm, Anker, Hymes & Schreiber, LLP did some investigation on a matter that has settled within the last few months. We found out that the company we were suing had a deal that they were going to be selling. A very important deal; a very big deal.  Our claim: a thorn in their side.

But we settled this case for more than our value; more than our bottom line because we knew the pressure point of the opposing side. The pressure point was the company had to get this deal out of the way because we were impediment and they stood to make a lot more money from the sale then dealing with us and paying us a little more money.

So there is a situation where the preparation and investigation beforehand got us some information which gave us the exposure or pressure point on the other side that we were able to apply to our advantage.

For more information about our law firm and please contact with our business attorney in Los Angeles.

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Announcing the Change of Firm Name from Anker Reed HSC to Anker, Hymes & Schreiber, LLP

Anker, Hymes & Schreiber, LLP logoLarry S. Hymes and Douglas K. Schreiber are pleased to announce that Anker Reed HSC has become Anker, Hymes & Schreiber, LLP and will continue the Anker Reed HSC tradition of serving your legal needs in the areas of:

The law firm’s headquarters will remain at its current location:

21333 Oxnard Street, First Floor
Woodland Hills, CA 91367
Phone: (818) 501-5800
Fax: (818) 501-4019

Who Can be Beneficiaries of the Trust? : Understanding Life Insurance Trusts

This is part 3 of the blog series discussing life insurance trusts and estate taxes.

10. Who can be beneficiaries of the trust?

You can name any person or organization you wish. Most people name their spouse, children and/or grandchildren.

11. How does an insurance trust give me control?

With an insurance trust, your trust owns the policy. The trustee you select must follow the instructions you put in your trust. And with your insurance trust as beneficiary of the policies, you will even have more control over the proceeds.

For example, your trust could allow the trustee to use the proceeds to make a loan to or purchase assets from your estate or revocable living trust, providing cash to pay expenses. You could provide your spouse with lifetime income and keep the proceeds out of both of your estates. You could keep the money in the trust for years and have the trustee make distributions as needed to trust beneficiaries, which can include your children and grandchildren. Proceeds that stay in the trust can be protected from courts, creditors (even ex-spouses) and irresponsible spending.

By contrast, if your spouse or children are beneficiaries of the policy, you will have no control over how the money is spent. If your spouse is beneficiary and you die first, all of the proceeds will be in your spouse’s taxable estate; that could create a tax problem. Also, your spouse (not you) will decide who will inherit any remaining money after he or she dies.

12. Are there other benefits to naming the trust as beneficiary of an insurance policy?

Yes. If you name an individual as beneficiary of a policy and that person is incapacitated when you die, the court will probably take control of the money. Most insurance companies will not knowingly pay to an incompetent person, and will usually insist on court supervision. But if your trust is beneficiary of the policy, the trustee can use the proceeds to provide for your loved one without court interference.

13. Where does the trustee get the money to purchase a new insurance policy?

From you, but in a special way. If you transfer money directly to the trustee, there could be a gift tax. But you can make annual tax-free gifts of up to $12,000 ($24,000 if your spouse joins you) to each beneficiary of your trust. (Amounts may increase periodically for inflation.) If you give more than this, the excess is applied to your federal gift/estate tax exemption.

Instead of making a gift directly to a beneficiary, you give it to the trustee. The trustee then notifies each one that a gift has been received on his/her behalf and, unless he/she elects to receive the gift now, the trustee will invest the funds – by paying the premium on the insurance policy. Each beneficiary must understand the consequences of taking the gift now; for example, it may reduce the trustee’s ability to pay premiums.

For additional questions on life insurance trusts and estate taxes, please contact our Trust Lawyer in Los Angeles today.

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