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the SKS Parents’ Association was formed so that a strong partner-
ship can exist between the School and parents with one goal: to
work for the good of our students.
On Sunday, January 15
th
, Parents’ Association President Paula Ohl
and her husband Brian hosted a brunch at their home for a group
of ten local parents. Head of School Steevie Chinitz, Admissions’
Director David Flynn, Chief Financial Officer Ray Hecht, Director of
Advancement Irene Seguin, and Development Associate Michelle
Martinetti, listened to comments and answered questions
presented by the group.
In February, the PA and Steevie Chinitz hosted the second
annual Ladies Valentine’s Day luncheon at Spy Rock House. though
a contagious stomach virus and the threat of snow deterred some,
the ladies who lunched (including one grandmother) had a
delightful time sharing stories about their SKS students.
these gatherings are a wonderful opportunity to meet fellow
parents and to ask questions of SKS staff. PA members have also
volunteered at various events including our recent Alumni
Basketball Weekend (see photo below).
PA meetings are held regularly and next school year will be held
monthly. By choosing the Storm King School, you have made a
special investment in your child’s future. As a Storm King parent,
you can be involved in our community.
For more information or to volunteer for the Parents’ Association,
please contact Michelle Martinetti at 845-534-7892 x222 or
MMartinetti@sks.org.
Parents’
Association
Kenneth R. Stuart ’65, MBA, CFP, worked for 34 years at Manufacturers
Hanover trust Co., Chemical Bank, Chase Manhattan Bank and JP Morgan
Chase (through mergers). He is currently in private practice specializing in
post mortem estate planning and income taxes. He has written articles for
professional magazines and has lectured at numerous organizations. Ken
is a past president of the Estate Planning Council of Westchester, Ny.
Consider SKS in your estate planning
by calling Ken at 914 949 5907 or
by email at kenscfp@aol.com
Net income
In a net income unitrust, the payment is the lesser
of the unitrust amount (i.e. five percent or whatever is
selected) or actual income. Actual income is defined as account-
ing income per local law. It often includes a makeup provision in
case the income is lower than the percentage in the trust. In the
following years, if the income is greater than the payout percent-
age, then this shortfall may be made up. For example, in year
one the trust’s fair market value (FMV) is valued at $1 million
and if the payout is five percent, then the beneficiary is entitled
to $50,000. If the accounting income is $40,000, the beneficiary
would receive $40,000. Year two, the FMV is the same but the
income increases to $60,000. The beneficiary would receive
$60,000 (the lower of the two is $50,000 plus a shortfall from
year one of $10,000).
This “makeup” can be useful for various reasons. First, the
individual may have an asset such as real estate that does not
produce income. The beneficiary does not need the income at
present so they leave it as is until there is a need (i.e. retirement).
At that time, the trustee sells the property and puts the proceeds
into assets that have a high yield.
Flip Trust
A flip trust commences with a makeup of income
and then turns to a fixed amount. This is permit-
ted under Treasury Reg. Sect. 1.664-3(a)(1)(i)(c) as long as the
change is executed on a specific date or in a single event. This
cannot be discretionary or within the control of the trustees
or anyone else. An example may be marriage. Letter Ruling
200031034 discusses this with a marital trust pouring over to a
unitrust for a niece.
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