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Show H Financial Markets B10 B Business B12 Tuesday, June 13, 1995 The Daily Herald DILBERT 15 THIS THE HELLO, IS IT ttOUU-TAI- N RE. SORT COHERE OUR EXECUTIVES Avoid being ravaged by estate tax By Scott Adams ALL z TRUE THAT LOUD By CHRISTOPHER SCHARMAN The Daily Herald NOISES CAN CAUSE ARE AVALANCHES? HAVING A RETREAT? IF VOU SEE AY BOSS, TELL KDA I SAID... Land values in Utah County are rising at an unprecedented pace. So is the temptation to sell the family farm. But those so tempted quickly discover the unyielding demands of tax law. Enter Dan Roberts. For 1 years, Roberts, financial consultant and owner of The Financial Resource Group in Provo, has reveled in protecting people's estates and assests from being ravaged by taxes. And with more people taking advantage of the rising land prices, his business has become more relevant than ever. When someone sells a parcel of land, or any assest, capital gains taxes must be paid on the profit gained. The tax on this gain is 35 28 percent federal and 7 percent state. percent Another problem is the estate tax. Estates valued at more than $600,000 are taxed at 37 to 55 percent according to the estate's size. All too often, Roberts says, family farms are not passed on to the children at the death of the 1 Looking through the eyes of Xers In his recent "State of Windows '95" address, Bill Gates was asked: "If you were graduating from college right now, would you go to work for Microsoft or start your own company? ' ' His answer, which brought down the house, was: "Well, I wouldn't know. I never graduated from college." The most famous Harvard dropout in history went on to emphasize how "incredibly important it is for a company to make it as fun and interesting" for new employees as possible. Given all the academic, productivity-oriented prognostications I've heard lately, it was surprising to hear someone highlighting "fun and interesting" as a managerial objective. I can count on one finger the times I've strolled through our envelope plant to assess whether people are having fun. But it raises an interesting issue about the changing nature of today's workforce. An executive friend recently laid it on the line for his employees in the formal, rosewood-line- d con- ference room of his venerable West Coast consulting firm. If of- fice profitability didn't improve drastically, individual bonuses and shareholder value in the employee-owne- d firm would be severely affected. Worse, their office would lose face within the company. In response, the old guard dutifully put their shoulders to the wheel and gave a renewed heave. However, the younger set appeared nonplussed, demonstrating a distinct lack of shame for their failure to bear the corporate banner with the expected degree of pride. In truth, they seemed resentful. And their complaints were drifting, well, actually slamming, their way into the executive offices. Complaints about loss of free time, being watched by "big brother," working in a depressing place. Far from being moved by his proclamations on loyalty and duty, the I Xtftf Jf Harvey Mackay Positive Struggles talented had labeled him a drag. At a loss, he called a meeting. What he heard was the beginning of a revolution. "You keep talking about bonuses," they told him. "But if it's no fun to work here, the bonus doesn't mean much to us. " "Another thing. You always talk about loyalty, but you're never around. We want a manager we can connect with." My friend had just been served a summons. And if he doesn't respond, he's going to be tried and convicted before he even knows what happened. Not convicted by a jury of peers who speak his language and play by his rules. This jury is younger, more mobile, more disenfranchised, more vocal and much, much less impressed by my friend's values and accomplishments than any previous generation. Marketers have a name for them, of course. They're Generaface-to-fa- tion Xers. The boomlet of kids produced by the much larger population of the baby boom. We didn't hear a lot from them while they were in grade school, but they're 45 million strong now and old enough to make a considerable noise. The marketers have heard it loud and clear. But managers have been slow to figure out their empl- changing. Those of us who were relieved to see our is oyee-base Generation X children leave home are shocked to find them sitting across the desk from us. And everything we didn't learn about managing them before is back to haunt us now. What do we need to know about them? When asked in a recent survey to rank the 10 most significant attributes they looked for in a job, compensation ranked seventh out of 10! More significant were recognition and praise, opportunities to learn, time spent with managers, developing marketable skills and fun at work. What turns them off? Seems they don't like hearing about the past, especially ours. They resent inflexibility about time, workahol-ism- , being watched and scrutinized, feeling pressured to conform and being called lazy or unambitious. In other words, a lot k of the standard apto management that proaches worked for the baby boomers are a bust with this crowd. What can we do about it? Question the way we manage and reward people. Listen. And rethink motivation. Big time. Because not everyone in the workplace is motivated by the same things anymore. We have to be willing to change, to add another rung on the "executive flexibility" ladder. But you know what? When we learn to do it, it will be incredibly rewarding. And maybe even, Heaven forbid, fun! carrot-and-stic- Moral: If you're Mackay's looking across the desk and seeing your own image, you might just be hallucinating. Harvey Mackay is the chairman and CEO of Mackay Envelope Corporation. He is internally in demand as a public speaker and was named one of the top five speakers in the world by Toast-masters International. Address questions and answers in care of The Daily Herald. Novell providing remote access solutions To help network managers meet the growing demands of their remote users, Novell Inc. today announced NetWare Connect 2, a re- access mote for platform enterprise connectivity. NetWare Connect 2 is a NetWare Loadable Module (NLM) that provides a comprehensive suite of remote access solutions on a single integrated platform. It provides a central point of access, enabling communications equipment to be shared by local and remote users in a dynamic, manner. Up to 128 local and re- mote PC and Apple Macintosh users can dial in and out, to access e network resources and services. h According to a 1994 study, NetWare Connect represents approximately 30 percent of the remote access ports on-lin- market-researc- shipped. It is one of the leading remote access platforms on the market today. Analysts expect the market to grow rapidly over the rest of the decade as work is increasingly done outside of the traditional office. For example, the number of workers telecommuting regularly in the United States will rise from 3 million in 1993 to 10 million in 1996, according to the Yankee market reGroup, a Boston-base- d search firm. To help meet this growing demand for remote access, NetWare Cbnnect 2 includes several new features that improve security, simplify management and enhance flexibility: Integration with NetWare 4.1 and NetWare Directory Services. Enterprise Management: An expanded remote access audit system gives network administrators a global view of communications resources and activities. Multi-LevSecurity: To help network managers protect sensitive information, NetWare Connect 2 has added several global and service-specifi- version. Expanded Inbound and Outbound Access: NetWare Connect 2 simplifies both dial-i- n and dial-oremote LAN access. ut New utilities allow Windows and Apple Macintosh users to dial out through NetWare Connect, These farms may have been in the family for three or four generations. But the growth in the farm's value may outpace the family's income, making it impossible to pay the estate taxes without selling the land. The family loses the farm and the money that went to pay the taxes. "The great loss is what the mou-ne- y could have earned, not the taxes paid," Roberts says. This can be avoided, he says, if - The SALT LAKE CITY anhas Institute Brown Wayne nounced that companies wishing to participate in the 1 1th Annual Utah Venture Capital Conference should submit a business summary to the institute by Sept. 18. The conferences gives promising companies a chance to present their business opportunity to local and national investors. To date, institute conferences have helped over 30 young businesses raise over $40 million. Submission criteria and assistance is available by contacting the 1 or fax institute at (801) 595-114- tax-fre- d, practices in (financial) planning." Dan Roberts financial consultant He decided that he could do the same thing for just about anyone. And that is exactly what he has been doing ever since. Roberts establishes for his clients a Wealth Accumulation Trust. This trust, developed by Congress and redefined in 1969, is created with the proceeds from selling the farm or any other assest. The Wealth Accumulation Trust eliminates capital gains tax, bypasses estate tax and also provides a lifetime income to the trust's owner. Assests in the trust can also go to the donor's favorite charity, and e a inheritance can be left to the donor's heirs. The trust works like this. The donor transfers a highly appreciated assest such as a farm into the trust. This transfer creates an immediate tax deduction. The as tax-fre- tax-fre- are well-define- 377-870- ,11,11 inn iim main aw n imvr' 0. tors from around the United States. Those companies selected by the panel will be coached by teams of experts in marketing, finance, le investor interest. ' and incubators have their roots conference helps companies prepare business plans and develop presentations focused on attracting with Dr. Brown. The institute's purpose is to accelerate economic growth by as- -' sisting entrepreneurs in developing their ideas into viable companies capable of attracting funding and management. The Wayne Brown Institute is a nonprofit 50 1 C-3 edr ucational organization. Many viable and funding sources, both will be represented at the conference," said Bradley B. Bertoch, president of the Wayne Brown Institute. te -- ' ; fying management and reducing costs. Simplified Configuration: Several automated processes simplify installation and configuration. The new product builds on other popular features of the first version, which have made it the most flexible and manageable product in its class. The business of Novell Inc. is connecting people with other people and the information they need, enabling them to act on it anytime, any place. Novell is the world's leading network software provi- der. The company's products provide the distributed infrastructure, network services, advanced net- work access and network applications required to make networked information and pervasive computing an integral part of everyone's daily life. first when it decides where to buy? A recently completed survey covering 60 business categories and asked of 1,000 Utah County adults is now available to any Utah County business. The material is g and free, and you're invited to see the results. Join us. Advance reservations required. Who does Utah County think of thought-provokin- i . . i V J I Engine repair? ...engine repair... J TOli flOf35,000t0 Multiline Fitf"! LJLJ! 40T0()0ltl: optical chaiacter reader F.! Ivv J. TOP OF MIND AWARENESS presentation for Utah County business 8:00 am-8:3- Tuesday, June 20, 1995 am Continental Breakfast 0 am Seminar 0 8:30-10:3- CALL 373-548- 9 344-294- 5 efjc Daity Some: United Slates Postal Service . ' p. Brought to you by . '. The institute is named in memory of its founder, Wayne S. Brown. Dr. Brown was a leading authority on technical entrepre-neurshiMany of the world's parks, innovation centers tion (UITA) and MountainWest Venture Group members. "The training process for the 6r call cEpiEJ '. The conference is presented in association with First Security U S Bank of Utah, West Communications, First In terstate Bank of Utah, Utah De-- !' partment of Commerce-Securitie- s Division as well as several othef prominent Utah companies. Provo Park Hotel -. prac- For more information. The Fi- nancial Resource Group is at 3355 N. University Ave., Suite 250,' Provo. Or call FOR FAXED RESgRVATON V- accepted d, . e. tices in (financial) planning." gal, management and other skills and will make a presentation at the Feb. 8, 1996 conference. Companies not selected to participate will receive critique sheets from the panelists and are encouraged to attend the conference. The application fee is $75. If accepted for presentation, an additional $200 will be due. Special conference fees are available to Utah Information Technologies Associa- A Benjamin I Franklin I as- e because they sests grow are part of the trust. An annual income comes out of the trust and goes to the trust's donor. This income is taxed at a blended rate, between income and capital gains taxes. But it is lower than if it were taxed solely at either one of the rates. The annual income continues for the life of the donor and his or her spouse. At their deaths, the remaining prinicpal is transfered to a charity of the donor's choice or to a private foundation in the name of the donor. The trust also benefits the donor's heirs. A Wealth Replacement Trust is created buy purchas- ing a life insurance policy on the. donor based on the value of the original trust. The policy's prem- -' iums are paid with the tax savings and cash flow generated by the trust. This allows the value of the trust to be passed on to the donor's heirs, bypassing estate taxes. Besides these benefits, the value of the Wealth Accumulation Trust and the Wealth Replacement Trust continually grows Whenever Roberts gives presentations on this type of trust, the most common question he's asked is if it is legal. "It's not a grey area of tax law," Roberts says. "These accepted U Pieces of mail per minute flO do- equipment and phone lines, simpli- The first official Postmaster General, Benjamin Franklin, H i .i sonea jiu pieces or man a minuiw. Tlusjay auiumaieu to minute. sorts r 40,000 per 35,000 equipment j 1. The summaries will be reviewed by a panel of distinguished inves- Sorting Mail: : well-define- reinvested according to the nor's needs and wants. These announces Utah Venture Capital Conference WBI (801)595-118- "These are sests in the trust can then be sold without paying capital gains taxes. The proceeds from the sale are, using common communications equipment (such as a pool of modems). This resource sharing allows for more efficient use of el c security options, allowing network managers to choose the appropriate level of security to meet their needs. Scalable Architecture: To help protect their communication investment, network managers can scale the number of ports on a server from two to as many as 128, twice the number as the previous owner but are sold because the family can't pay the taxes. you have the right tools. Early in his career, he consumed himself with understanding financial planthese issues in particular. ning He studied reports of how some of the wealthiest families in the United States passed their estates on for generations without being decimated by taxes. One report was even titled, "The Voluntary Estate Tax." Graphic by James Havens Ikvalh |