As of last month, the small army of lawyers, accountants, consultants and other professionals assisting in the wind-down of the investment bank had earned more than .2 billion since Lehman filed for bankruptcy in September 2008.
Fees from the 2001 bankruptcy of infamous energy trading firm Enron look paltry by comparison, at 3 million.
A fairness opinion does not attest to the anticipated income tax consequences of the transaction, nor does it address the relative merits of the transaction.
The beneficiary, and not the trust or decedent's estate, pays income tax on his or her distributive share of income.
Schedule K-1 (Form 1041) is used to notify the beneficiaries of the amounts to be included on their income tax returns.
The opinion speaks only to fairness from a financial point of view.
“The limiting phrase ‘fair, from a financial point of view’ serves to indicate the scope of the experience and professional qualifications of the investment bank or valuation firm providing the opinion.
In this context, “Fairness” parallels the notions of unbiased, impartial, and just.
As denoted by the colloquial term “fair play” or the business phrase “an arm’s length transaction,” a fairness opinion represents whether a deal is fair to shareholders, particularly a company’s minority shareholders, all material matters and circumstances considered.
Most deductions and credits allowed to individuals are also allowed to estates and trusts. A trust or decedent's estate is allowed an income distribution deduction for distributions to beneficiaries.
To figure this deduction, the fiduciary must complete Schedule B.
The society also provides an opportunity to buy the wonderfully made Society Annual Figurine.