How to resolve AdBlock issue? 
News
Diversification allows income streams to be created – by selling assets and investing the proceeds for income – in a tax-efficient manner. What remains (at least 10 percent of what was contributed) at the end goes to the charity of choice. Let us examine how this works.
You begin by selecting the type of CRT that works best for you, based on the type of asset you will contribute and your future income needs.
Broadly speaking, there are two types: the annuity trust (CRAT) or the uni-trust (CRUT). They differ in their payout schemes.
The CRAT pays the same amount each year based on a percentage of the CRAT’s “initial value.” CRATs guarantee you the same amount each year. The annuity percentage varies between 5 percent and 50 percent, depending on the CRAT’s term.
A CRUT, however, pays a percentage of the annually “recomputed value” (i.e., the uni-trust percentage times uni-trust new value).
The payout varies each year based on the investment performance of the trust and the cumulative effect of prior years’ withdrawals. The CRUT has two main variations that allow for non-income or low income producing assets to be held without requiring distributions until such year as income is generated.
The CRT is irrevocable – it cannot be amended or revoked (except sometimes under limited circumstances). The CRT document determines (amongst other things) who is the noncharitable beneficiary (usually yourself and your spouse), how long the trust will last (i.e., your lifetimes or for a fixed term up to 20 years), who is trustee (usually yourself) and the charitable remainder beneficiary.
At termination, the charity must receive at least 10 percent of the initial value. A taxpayer identification number is obtained and assets transferred to the trustee. A qualified appraisal may be needed to determine an asset’s value.
In the first year you enjoy an immediate income tax charitable deduction. The amount is the so-called present value of the “remainder interest” left to charity.
For example, if you contribute $500,000 in assets into a CRT that donates 20 percent to charity at the end of a 10-year term then the remainder is the present value today of $100,000 to be received in 10 years time discounted using the applicable federal interest rate. The tax savings today can be used to fund other present investments, including annuities and life insurance.
If you contribute appreciated assets and the CRT sells them then – because the CRT is a tax-exempt charitable trust – the CRT itself is not subject to capital gains taxes. Likewise, if you contribute retirement funds the CRT does not pay ordinary income taxes and can reinvest these funds. Instead, these taxes are postponed over the CRT’s term. That is, as distributions are made to the noncharitable beneficiary (e.g., you) the previously unrecognized income is included in earnings.
The advantages to the taxpayer here are that, first, the CRT gets to reinvest money that otherwise would have been paid out in taxes upon the sale of appreciated assets or the receipt of retirement plan funds; second, the taxpayer gets to include smaller additions to your annual income instead of a big addition that might push you into a higher tax bracket; and, third, some of the income to be included in later years may be offset by other tax losses or taxed in years with less income (e.g., retirement years).
Lastly, CRTs may either be established by you during your life or by your will to take effect after you die for the benefit of your loved ones (e.g., your children).
Editor’s Note: Dennis A. Fordham is an attorney licensed to practice law in California and New York. He earned his BA at Columbia University, his JD at the State University of New York at Buffalo, and his LLM in Taxation at New York University. Dennis concentrates his practice in the areas of estate planning and aspects of elder law. His office is at 55 1st St., Lakeport. He can be reached by e-mail at
Lake County Sheriff's Office volunteers provide the Vacation Check Program.
Subject to accessibility, residents in unincorporated Lake County may request regular checks of their homes for defined and reasonable periods of time while they are away, according to Capt. James Bauman.
While checks may be performed by deputy sheriffs, they are typically conducted by trained sheriff’s volunteers, he said.
Bauman said vacation checks entail a visual check of structures and property, ensuring that vehicles, gates, lighting and the general security of the home is intact and in accordance with the request.
Whenever a vacation check reveals something suspicious or otherwise out of place, volunteers are trained to back out of the immediate area and request a patrol deputy be dispatched to investigate further, according to Bauman.
Bauman said there is no cost associated with requesting a vacation check and the requester need only complete a basic form describing the duration of the checks, description and access to the property, vehicles, alarms, pets, and anyone authorized to be on the property or acting as agent for the owner.
Anyone interested in requesting a vacation check for their home may contact the South County Substation at 707-994-6433, Monday through Friday, from 8 a.m. to noon, or the sheriff’s main office in Lakeport, 707-262-4200, Monday through Friday, 8 a.m. to 5 p.m.
LAKE COUNTY – What's the value of local state parks to the county's economy? Based on a recently released study, the answer is millions of dollars.
As state officials consider a proposal by Gov. Arnold Schwarzenegger to close 220 of the state's 279 state parks – including Lake County's Anderson Marsh – a newly released study gives a look at just how important parks are to the state and local communities.
The California Parks and Recreation Department commissioned the study, which was conducted by California State University, Sacramento's Department of Recreation, Parks and Tourism Administration.
Schwarzenegger is suggesting the park closures – along with thousands of park employee layoffs – in an effort to save an estimated $143 million in state general fund monies.
But the losses incurred by the parks could be much greater than the money the governor is proposing to save.
The study found that 74.9 million people visit California state parks annually, spending an average of $4.32 billion per year in park-related expenditures.
It also reported that park visitors spend an average of $57.63 per person per visit, including $24.63 inside state parks and nearby communities, and $33 in communities more than 25 miles from the park being visited.
Recreation, Parks and Tourism Administration faculty and students surveyed 9,700 visitors at 27 state parks representing the diversity of the parks system’s 279 parks. The survey was taken from fall 2007 to February 2009, according to the report.
Professor David Rolloff of Sacramento State's Recreation, Parks and Tourism Administration told Lake County News that the closest parks to Lake that were in the sample were MacKerricher State Park in Fort Bragg and Mt. Tamalpais near San Francisco.
Of the visitors surveyed, 11.95 percent were non-residents of California, and their average spending per person was $184.91.
Based on the calculated $4.32 billion in park-related visitor expenditures per year, $1.66 billion is generated by non-residents of California, the survey found.
Rolloff said the study as been in the works for a number of years, with data collection beginning in 2007. It's part of a much larger study by the State Parks Department to look at visitors and park usage.
“One of the reasons why we decided to come forth with the data was that it's very relevant right now,” Rolloff said, referring to the proposal to close the parks.
A full report is due out later this summer, said Rolloff.
Rolloff called the spending figure of $57.63 per person per visit “pretty impressive,” especially in light of the tough economy in the last few years.
But that economic downturn has had another effect. “A lot of people are actually staying more local,” and choosing to enjoy nature at nearby state parks, he said. “It seems to be a pattern we're seeing.”
Debra Sommerfield, deputy county administrative officer for Economic Development, said the numbers the study suggests look right, and that she wouldn't be surprised that the numbers are accurate based on her study of tourism trends.
A report issued last year by the California State Parks Foundation found that Anderson Marsh is visited by 43,499 people each year, generating $2,060 in revenue, while Clear Lake State Park has 100,166 visitors annually, with revenue of $332,782.
If the Sacramento State study is accurate, that means that Anderson Marsh and Clear Lake State Park offer $2.5 million and $5.7 million, respectively, in benefit to the local economy.
Anderson Marsh was placed on the closure list this year, which has prompted local officials to write the state to seek alternatives. Last year Anderson Marsh and Clear Lake State Park were both included on a list of 48 state parks that Schwarzenegger had suggested to close to deal with the state budget crisis.
Clear Lake State Park was spared this year, because boating and gas tax revenue – not state general tax revenue – are primary funding sources. County officials have emphasized that keeping Clear Lake State Park open is a priority.
Sandra West, co-owner of Edgewater Resort in Kelseyville, said having Clear Lake State Park close by has benefited her business.
That park, she said, is full every summer with people who enjoy the lake, and it brings a lot of money into the county. West said she's also enjoyed a great relationship with the park and its staff.
She said the fiscal impact of the parks on the state and their surrounding communities is “huge.”
West said she knows that the state is having huge problems, but she would hate to see either of the parks close because of their value to the community.
The California State Parks Foundation is organizing a “Save Our State Parks Weekend” later this month.
They're encouraging people to visit their state parks and show support by wearing green or a green on the weekend of June 20, during which time they also can celebrate the Summer Solstice and Fathers Day. More information on the effort is available at www.calparks.org .
The Rainbow Bridge Festival is set for June 26, 27 and 28 at 10568 Bachelor Valley Road, Upper Lake.
The organizers say the festival is intended to bring people together through a common experience, involving a connection with nature and valuable interaction with community expressed through music, yoga and healthy lifestyle exploration.
There will be workshops and demonstrations on green building, gardening, alternative energy and yoga, with drumming circles and activities for children.
A main component of the festival will be performances by world-class performers, including Pato Banton, the Annie Sampson Band, Elijah Emanuel, Mitchell Holman, Karma, Levi Huffman, Rootstock and Side of Blues.
Speakers will include Jeane Manning, author of several books including “The Coming Energy Revolution” and “Breakthrough Power.” Manning will share information and compelling stories about brave inventors and breakthrough technologies from around the world that are green and sustainable. She makes the case for open sourcing, clean energy inventions such as magnetic motors, zero point energy, water-as-fuel and other new paradigm advances.
Harvey Wasserman, author of “Solartopia, Our Green Powered Earth,” will share his wisdom and vision of making the bridge to a solarized world. Wasserman's widespread appearances throughout the major media and at campuses and citizens gatherings since the 1960s have focused on energy, the environment, the truth about nuclear power, United States history and election protection.
Another speaker will be Anodea Judith, whose books include “Wheels of Life” and “Waking the Global Heart.” Judith holds a doctorate in health and human services, with a specialty in mind-body healing, and a master’s in clinical psychology. Her best-selling books on the chakra system, marrying Eastern and Western disciplines have been considered groundbreaking in the field of transpersonal psychology and used as definitive texts in the U.S. and abroad.
The festival also will pay tribute to the late Marla Ruzicka, a Lake County native and human rights activist who died in Iraq in April of 2005.
Kevin Danaher of Global Exchange, who knew and worked with Ruzicka, will speak about her, and also will present ideas from his book “Building the Green Economy, Success Stories from the Grass Roots.”
For tickets and more information, visit the festival Web site, www.rainbowbridgefest.com .
I love getting wine release invitations. It’s the closest thing a foodie freak like me gets to a red carpet movie premier.
Wine release parties are held in a variety of venues, whether it is a tasting room, vineyard, or sometimes even in the winemakers’ actual home. Six Sigma Winery held their spring release party last Saturday on their ranch just outside their cave. Instead of being a long red carpet you get to travel a long dirt road, which is much more fitting for the event.
The Six Sigma ranch can be a little bit intimidating upon entering since just after the “welcome” barrel is a sign saying that you only have two more miles to go. You will drive slowly down the one lane road looking at the vineyards, then the vineyards turn to cattle ranch, and just before you hit vineyard again you see the cave. To a guy who has never owned a plot of land that I couldn’t throw a rock across, it’s quite an impressive place.
Kaj Ahlmann, the owner of the Six Sigma ranch, was there talking to everyone as we tasted his wines accompanied with many different cheeses and crackers.
Christian Ahlmann surprises me every time I see him. Every time we meet, Christian remembers my name and where he saw me last, even if it’s been years. If my wife goes on a trip and comes back a week later I have a problem recognizing her so he’s definitely got an ability that I lack.
The first wine I tasted was the 2007 Sauvignon Blanc from the Rooster Vineyard, which is aged in stainless steel vats. This is a very subtle wine that has a very light color and fruity flavor with what I thought was just a hint of lemon. If someone had never tasted wine before in their life this would be the perfect wine to get their proverbial toes wet with. I would want to pair this wine up with a halibut steak poached in a court bouillon.
The 2006 Tempranillo, arguably the most popular Spanish wine grape in Spain and gaining popularity everywhere, is aged in oak. I noticed a slight peppery start with black cherries and cinnamon. Being a tannic red wine it would pair well with meats but it is a little lighter than say a Cabernet Sauvignon or a Zinfandel, so I feel it would be a good pairing with barbecued pork.
The 2008 Tempranillo was being tasted right out of the barrel using a wine thief (a special siphon used to sample the wine from the barrel, which I can only not too eloquently describe as a glass turkey baster minus the bulb.) This was a very young tasting wine that I know is going to age into something great.
If you ever get a chance to taste a finished wine right next to a young wine still in the barrel, jump at the chance. It is quite an educational experience. I’d compare it to looking at professional photographs of a 25 year old supermodel right next to her high school class picture.
On the whole winemakers are very generous people and I have personally experienced that generosity on many occasions. For instance, Six Sigma is one of the wineries that donated to the inaugural Catfish Cook-off. At this release party I was again the beneficiary of this generosity as Michael Ahlmann was kind enough to let me sample a couple of wines that weren’t widely available.
The 2007 Sauvignon Blanc from the Michael vineyard isn’t ready to be released but is oak aged. It is now my favorite wine with its peach nose (fancy wine guy speak for smell) and rich color without having an overbearing oakiness to it. This is a wine that I thought should be brought to a potluck dinner (I attend them frequently) because this wine would go well with all of the dishes that you associate with potlucks: ambrosia, asparagus in cream sauce, fruit salads, ham, cold cuts, even sweet potatoes with those little marshmallows. I hope the Ahlmanns take that comment as the compliment I intend it to be.
The 2006 Rose is a Cabernet Sauvignon/Sauvignon Blanc mix that is the perfect wine to encourage a white wine drinker to start dabbling into reds. It’s far from the cloy Rose that you can get at the kwik-e-mart in a jug. This is a wine that as I sipped I thought would be the perfect wine to sit on the porch and drink after a day of gardening, because it’s so refreshing and drinkable.
These are just the wines that are being released now. If you’d like to learn more about the wide variety of their entire line, take a look at their very informative Web site, www.sixsigmaranch.com .
Visit Six Sigma Ranch and Vineyards at 13372 Spruce Grove Road, Lower Lake, telephone 707-994-2086 or toll-free, 888-571-1721.
Ross A. Christensen is an award-winning gardener and gourmet cook. He is the author of "Sushi A to Z, The Ultimate Guide" and is currently working on a new book. He has been a public speaker for many years and enjoys being involved in the community.
I lay awake nights and ponder world troubles
And my answer is always the same
That unless men put an end to this damnable sin
Hate will put the world in a flame, what a shame…
Poet Laureate of the Blues, Percy Mayfield from his song “Please Send Me Someone To Love,” Circa 1950
In about 1979, I had backslid into the town of Hayward from where I’d graduated high school some 11 years prior to that. Wandering aimlessly downtown one day, I noticed that the marquee on the Brickhouse nightspot proclaimed, “Percy Mayfield, One Night Only.”
At the time my Blues well didn’t run very deep, but I did know that Percy Mayfield had written a couple of poignant tunes that I was familiar with, one of which was “Hit The Road Jack,” one of many large hits for Papa Ray Charles.
I didn’t even know what Percy looked like. One thing is for sure. My nose was wide open for this man of the Blues. Unbeknownst to me at the time, my life path had already taken a serious detour into Blues territory and this excursion to the Brickhouse was to be one of many.
That evening when I entered the club, the house band was already rockin’. (For the faint of heart and parents of minor children, please be advised that it gets a little kinky, probably in the next paragraph. You have been forewarned and disclaimed!)
Furthermore, CyberSoulChildren, this account is not meant to slander or besmirch the genius of Percy Mayfield. I was there and this is how it went down.
When Percy Mayfield was let out of the crooked booking agents white Cadillac in front of the club, he was very drunk. He also thought he was in Oakland, which, mind you, happens to entertainers who do a lot of one nighters, all the time.
Trouper that he was, Mr. Mayfield sauntered up to the stage, took the microphone and cued the band into a slow Blues. He then sang the following:
“You know I cried last night baby
and I cried the night befo’.
‘said I cried last night baby
and I cried the night befo …
Then to most folk’s astonishment, Percy Mayfield sat down not to far from me. He was done. The band played on and I struck up a conversation with him. Strangely enough, I don’t recall even addressing his abrupt performance. Neither he nor I, or for that matter even the club’s management said anything about it.
At some point a cocaine-addled person of the Brickhouse citizenry offered Percy a toot or three. To my surprise he accepted the offer. I followed them into the bathroom. To my further surprise, I took a couple of snorts myself. (Mind you, I’ve been clean 10 years. If I wasn’t would I be so blatant?)
When the little toot session was over, I noticed Percy about to go back into the club with a dirty nose.
“Percy, you can’t go out there like that,” I said. “Man you are a legend. Clean yourself up for your public.”
“You right, little brother,” he said. “You right.”
In that moment I became his guide for the evening.
We hung together until the club closed at 2 a.m. Blues legend or not, they bum rushed Percy Mayfield and I out of the club before the clock stuck 2:01 a.m.
I thought my guide shift was over. As I bade Mr. Mayfield farewell, he appealed to me solemnly, “Don’t leave me, little brother.”
“You right, man,” I said. “You’re a legend. I can’t leave you.”
I don’t remember much conversation in the two and a half hours I stood in the doorway of the Brickhouse with Percy Mayfield. I remember it getting pretty cold though.
Finally, after 5 a.m., the crooked booking agent in the white Cadillac pulled up and scooped up the Poet Laureate of the Blues, taking him, I imagine to the fify-leven hundred thousandth motel of his career. Percy thanked me as I shook his hand.
I watched the Cadillac carefully navigate down Mission Boulevard. I turned up B Street and headed home in the pre-dawn chill. A pickup truck cruised by at some point. The occupants slowed down to nonchalantly spew the N-word in my direction. The sting of it was deflected by my Karmic Muse.
About a year or so later, I read what was titled “The Last Percy Mayfield Interview” in the Pink Section of the Chronicle. It might’ve been written by Joel Selvin. I do remember that Percy Mayfield was terminally ill during the interview and it was published posthumously. To this day I feel righteously honored and blessed to have been in his presence that night.
One of the most detailed biographies on Percy Mayfield that I found on the web is at the following location: http://home.earthlink.net/~v1tiger/percy.html .
Keep prayin’, keep thinkin’ those kind thoughts.
*****
Upcoming cool local events:
Blues Farm with Dave Broida, Blues Monday, 6:30 p.m. to 9 p.m. June 15, Blue Wing Saloon & Café, 9520 Main St., Upper Lake. Telephone, 707-275-2233, or online, www.bluewingsaloon.com .
Open mike night, 6 p.m. to 8:30 p.m. Thursday, June 18. Blue Wing Saloon & Café, 9520 Main St., Upper Lake. Telephone, 707-275-2233, or online, www.bluewingsaloon.com .
Chicken & The Defenders play the Lakeport Summer Concerts at Library Park on Friday, June 19. Library Park, 200 Park St., Lakeport.
Pablo Cruise Friday, June 19. The Charlie Daniels Band Saturday, June 26. Cache Creek Casino Resort, 14455 Highway 16, Brooks. Telephone, 888-77-CACHE, or online, www.cachecreek.com .
Chris Botti in concert, 8:15 p.m. Saturday, June 20. Konocti Harbor Resort & Spa, 8727 Soda Bay Road, Kelseyville. Telephone, 800-660-LAKE, or online at www.konoctiharbor.com .
Smokey Robinson in concert, 7:15 p.m. Saturday, July 31. Konocti Harbor Resort & Spa, 8727 Soda Bay Road, Kelseyville. Telephone, 800-660-LAKE, or online at www.konoctiharbor.com .
The Four Tops in Concert, 9 p.m. Saturday, July 31. Cache Creek Casino Resort, 14455 Highway 16, Brooks. Telephone, 888-77-CACHE, or online at www.cachecreek.com .
T. Watts is a writer, radio host and music critic. Visit his Web site at www.teewatts.biz .