Sacramento developer Kolokotronis files for bankruptcy
Sacramento real estate developer Sotiris K. Kolokotronis filed for personal bankruptcy Friday, listing debts of more than $130 million and assets of $3.2 million. Concurrent with the filing, his bankruptcy attorney Walter Dahl issued a news release that said Kolokotronis? continuing dispute with an investment firm triggered the filing. That firm, an entity of Ayres Advisors of San Diego, has been pursuing a $16.5 million judgment against Kolokotronis for several years. The Chapter 7 liquidation case could resolve that judgment and protect some of Kolokotronis? personal assets...<div class="feedflare"> <a href="http://feeds.bizjournals.com/~ff/bizj_sacramento?a=qT4GJRoxjmE:NCm5RrlEw-A:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/bizj_sacramento?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_sacramento?a=qT4GJRoxjmE:NCm5RrlEw-A:V_sGLiPBpWU"><img src="http://feeds.feedburner.com/~ff/bizj_sacramento?i=qT4GJRoxjmE:NCm5RrlEw-A:V_sGLiPBpWU" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_sacramento?a=qT4GJRoxjmE:NCm5RrlEw-A:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/bizj_sacramento?i=qT4GJRoxjmE:NCm5RrlEw-A:F7zBnMyn0Lo" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_sacramento?a=qT4GJRoxjmE:NCm5RrlEw-A:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/bizj_sacramento?d=qj6IDK7rITs" border="0"></img></a> </div>
Feats of Clay competition canceled
Feats of Clay will not make it to its 25th year. Feats of Clay XXV had been scheduled this year for April 28 through May 27. But it appears the show will not go on. The national ceramic arts and sculpture competition was a regional draw, as the art was displayed inside the massive honeycomb kilns at the Gladding McBean terra-cotta factory in Lincoln. Lincoln Arts, the nonprofit that puts on the competition, said the event has been retired.<div class="feedflare"> <a href="http://feeds.bizjournals.com/~ff/bizj_sacramento?a=WJxzoc6p2zI:trU8ZVe3jXU:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/bizj_sacramento?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_sacramento?a=WJxzoc6p2zI:trU8ZVe3jXU:V_sGLiPBpWU"><img src="http://feeds.feedburner.com/~ff/bizj_sacramento?i=WJxzoc6p2zI:trU8ZVe3jXU:V_sGLiPBpWU" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_sacramento?a=WJxzoc6p2zI:trU8ZVe3jXU:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/bizj_sacramento?i=WJxzoc6p2zI:trU8ZVe3jXU:F7zBnMyn0Lo" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_sacramento?a=WJxzoc6p2zI:trU8ZVe3jXU:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/bizj_sacramento?d=qj6IDK7rITs" border="0"></img></a> </div>
CEO Meg Whitman got $16.5M HP pay package
Despite being one of the Silicon Valley tech chief executive officers getting $1 a year in salary, Meg Whitman got stock options when she took over at Hewlett-Packard Co. last year that brought her total compensation to an estimated $16.5 million. The Palo Alto computer and services giant (NYSE: HPQ) reported the pay package in a proxy filing with the Securities and Exchange Commission on Friday. Whitman's option awards are valued at $16.1 million and she was also given $372,598 in other compensation...<div class="feedflare"> <a href="http://feeds.bizjournals.com/~ff/bizj_sacramento?a=UDYXIim70U0:K8HAHNsmjL4:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/bizj_sacramento?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_sacramento?a=UDYXIim70U0:K8HAHNsmjL4:V_sGLiPBpWU"><img src="http://feeds.feedburner.com/~ff/bizj_sacramento?i=UDYXIim70U0:K8HAHNsmjL4:V_sGLiPBpWU" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_sacramento?a=UDYXIim70U0:K8HAHNsmjL4:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/bizj_sacramento?i=UDYXIim70U0:K8HAHNsmjL4:F7zBnMyn0Lo" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_sacramento?a=UDYXIim70U0:K8HAHNsmjL4:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/bizj_sacramento?d=qj6IDK7rITs" border="0"></img></a> </div>
Micron Technology CEO dies in plane crash
Steve Appleton, the chairman and chief executive of Micron Technology Inc., died in a small plane accident in Boise, Idaho, Friday morning. He was 51. Micron (NASDAQ: MU) is based in Boise. It is a worldwide provider of advanced semiconductors for many industries. Micron makes DRAM, NAND and NOR flash memory chips that power everything from wireless electronics, automotive computers, radio frequency chips and communications and storage technology. Appleton was an avid pilot. He was the lone person in the experimental fixed-wing plane when it crashed at the Boise airport, according to a release from the company...<div class="feedflare"> <a href="http://feeds.bizjournals.com/~ff/bizj_sacramento?a=rYO7b9SDH0s:jmzlZHT-Isc:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/bizj_sacramento?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_sacramento?a=rYO7b9SDH0s:jmzlZHT-Isc:V_sGLiPBpWU"><img src="http://feeds.feedburner.com/~ff/bizj_sacramento?i=rYO7b9SDH0s:jmzlZHT-Isc:V_sGLiPBpWU" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_sacramento?a=rYO7b9SDH0s:jmzlZHT-Isc:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/bizj_sacramento?i=rYO7b9SDH0s:jmzlZHT-Isc:F7zBnMyn0Lo" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_sacramento?a=rYO7b9SDH0s:jmzlZHT-Isc:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/bizj_sacramento?d=qj6IDK7rITs" border="0"></img></a> </div>


of the spouse. It also allows further “stretching” of the IRA as the spouse can spread the RMDs over their lifetime plus the lifetime of a beneficiary.

If the spouse is more than 10 years younger than a non-Roth IRA owner, their life expectancy can be used. Beneficiaries other than the spouse, who are more than ten years younger than the IRA owner, are treated as being no more than ten years younger for RMD purposes. This is another “stretching” advantage for naming the spouse as beneficiary.

Children

If children are beneficiaries, they can take the RMDs over their life expectancy. Since the RMDs are very low at the younger ages, the account can grow substantially over the years. For example, a $100,000 IRA could distribute literally millions of dollars over the lifetime of a young beneficiary.

If there is more than one child named, the youngest age is used for RMD purposes. However, if the children are beneficiaries of a trust, the oldest age is used.

Grandchildren

Because grandchildren are even younger than children are, the lifetime income potential from RMDs would floor you. I can show you an example of the same $100,000 IRA used above as an example that would pay out 20 million dollars to a grandchild over their lifetime under the right circumstances.

Naming a grandchild gets into the generation skipping transfer tax area. But each person has a lifetime generation-skipping transfer tax lifetime exemption of $2,000,000 (in 2006). In any case, I would consult a tax attorney to make sure this beneficiary election coordinates with the balance of your estate plan.

A Trust

There may be some good reasons to name a trust as the beneficiary of your IRA. Your estate could be large enough so that you do not want your IRA to be subject to taxation twice. You may want to take advantage of the marital deduction, control where the balance of your IRA goes after the death of your spouse or have a spouse that is not a U.S. citizen.

These objectives need to weighed against the ability of your spouse to treat your IRA as their own with the attendant advantages. If a trust is the beneficiary, the spouse cannot make this election, even if they are the only beneficiary of the trust.

There are other beneficiary options beyond the scope of this article. I hope it is clear that there is no rubber stamp best beneficiary election. Prior to making a beneficiary choice, thought needs to be given to your estate, your family's circumstances, the rules and your wishes.

In many cases, you should consult a tax attorney. The examples I have used here are my understanding of the rules and cannot be relied upon as tax advice.

Robert D. Cavanaugh, CLU is a 36 year financial and veteran and author of the free newsletter, “The Estate Preservation Advisor”. To subscribe and get the free video, “How to Sell Your Life Insurance Policy for More Than the Cash Value”, go to theestatepreservationadvisor.com/freevideo.htm

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