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MARCH 2025
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Did You Hear That? A Reminder to Listen to Others
Did you know that most people only retain a small percentage of what they hear? That means in an average conversation, much of what is said goes in one ear and out the other. March is Listening Awareness Month, a perfect time to reflect on how well we actually listen — not just hear. Listening is not just a passive activity. It’s about understanding the other person and picking up on what they do and don’t say. With how busy we all are these days, we often listen to respond rather than to understand. We’re so eager to get our own point across that we forget to fully absorb what’s being said. But in personal and professional relationships, listening can make all the difference. In estate planning, listening isn’t just a courtesy — it’s an extremely important part of my job. Every client has unique needs, concerns, and family dynamics that must be considered when crafting a plan that works for them. Estate planning isn’t a “one-size-fits-all” process, and if we aren’t fully tuned in, we risk overlooking important details that could lead to family disputes or unintended financial burdens down the road. For example, many clients hesitate to bring up family conflicts. They may not openly state that their children don’t get
along, but with careful listening, we can pick up on subtle clues — hesitations, pauses, or shifts in tone — that indicate underlying tensions. By reading between the lines, we can proactively create plans that prevent disputes and ensure the client’s wishes are carried out smoothly. Listening also helps build trust. When a client shares their concerns, and we remember and bring them up in later conversations, it shows that we’re paying attention and care. It turns a transactional meeting into a relationship, and that’s what estate planning is all about — helping families navigate important decisions with confidence and security.
Listening also extends beyond words. People communicate just as much, if not more, through silence, body language, and tone. Sometimes, what isn’t said is just as important as what is. A pause before answering, a sudden shift in expression, or even an avoided topic can all indicate larger emotions or concerns. Listening may seem like a small skill, but it has a huge impact. Whether we’re helping clients navigate their estate plans or simply having a conversation with a loved one, being fully present and engaged makes all the difference. So, this month, let’s all challenge ourselves to listen just
“We’re so eager to get our own point across that we forget to fully absorb what’s being said.”
a little bit better — you never know what you may learn about others!
Of course, listening isn’t just important in business. It plays a huge role in our personal lives as well. Whether it’s in friendships, marriages, or parent-child relationships, listening can strengthen bonds and prevent misunderstandings from ever happening.
–Elliott Harry
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You’ve worked hard to build a legacy that spans multiple generations. But what your loved ones inherit may be subject to taxes — or worse, divorce or lawsuit — that would otherwise take away from what you’ve built. Consider a situation where you live in California, where there is no estate tax, but your children are living in New York, which does have an estate tax. Passing assets to them outright that will be passed down to your grandchildren later would incur that tax, potentially even twice. That’s where a Generational Wealth Protection Trust comes in as part of your overall Asset Protection Plan. WHAT IS A GENERATIONAL WEALTH PROTECTION TRUST? The Generational Wealth Protection Trust is a trust we’ve helped clients structure to protect their assets. The trust shields the inheritance you’ve set aside for future generations from the uncertainties in life and allows you to avoid out-of- state estate taxes that would otherwise lessen the inheritance. LIMITED POWER OF APPOINTMENT The Generational Wealth Protection Trust can be set up with a limited power of appointment at death. This allows you to account for generations beyond just your children by limiting who can receive your children’s inheritance to a class of individuals (such as your grandchildren) or specific people. Furthermore, if your children live in New York or another state with an estate tax, you can provide them with limited power of appointment under the trust, meaning they can choose only one person to receive their inheritance through your Trust. Because of this limit, the assets are not subject to the estate taxes of the person (i.e., your children) designated as the power holder within the trust. So, rather than having them hold general powers in the trust and exposing the assets to their applicable estate taxes in New York, you can bypass those taxes if done right. Your children can even exercise their limited power of appointment and direct the inheritance in your Trust to the child’s own Revocable Living Trust. Their Trust would have Generational Wealth Trust provisions, thereby protecting your inheritances into perpetuity if future generations do the same — hence where the name comes from. PROTECT YOUR LEGACY WITH DAHL LAW GROUP The Generational Wealth Protection Trust was created by the experienced team at Dahl Law Group. When you’re ready to protect your legacy for generations, contact Dahl Law Group at our offices in Sacramento and San Diego. Generational Wealth Protection Trusts Essential Insurance Coverages for California Real Estate
Did You Know? Owls have asymmetrical ears , which help them pinpoint sounds from different elevations. It’s true! Humans aren’t the only ones who really rely on listening! Check out these interesting facts about animals and their listening abilities. Elephants can hear low-frequency sounds and communicate over long distances using infrasound, which humans can’t hear. Bats use echolocation , creating high-pitched sounds they use to navigate and locate their prey in the dark.
Goldfish do not have outer ears but can still detect sound through vibrations in the water.
Do you have a friend who needs our help? When you’re done reading, give them this newsletter and recommend they scan our QR code. We can help them solve their tax, business, or estate planning problems before things get worse.
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New Ruling Could Increase Estate Tax Liabilities Is Your Business at Risk?
The U.S. Supreme Court recently handed down a decision that will significantly impact buy-sell agreements and estate valuations. Connelly v. United States is the Court’s latest in its string of major decisions in 2024 impacting California businesses. It will fundamentally alter how life insurance proceeds are treated in stock redemption agreements for estate tax purposes. CONNELLY V. UNITED STATES The case involves two brothers, Michael and Thomas Connelly, co-owners of Crown C. Supply in Missouri. They had a stock purchase agreement ensuring the company stayed in the family after one’s passing. If the surviving brother declined to buy the shares, the company would use the deceased’s life insurance proceeds for redemption. When Michael died in 2013, Crown C. Supply used $3 million in life insurance proceeds to redeem his shares, making Thomas the sole owner. Michael’s estate
excluded the proceeds from its federal estate tax valuation, citing past case law, but the IRS disagreed, arguing they should be included. The Supreme Court ruled in favor of the IRS, deciding that life insurance proceeds used for share redemption must be part of the estate’s valuation. The ruling overturned precedent by requiring shares to be valued before redemption, treating the proceeds as non-operating assets. WHAT THIS MEANS FOR CALIFORNIA BUSINESS OWNERS California business owners who use life insurance-funded buy-sell agreements to plan for ownership transitions need to reconsider their structure after this decision. This ruling increases estate tax liabilities when using this structure, reducing the remaining estate to be passed on to heirs. This is a particular issue for closely held businesses where liquidity is an issue.
Business owners affected by this ruling should consult a California business attorney to review their buy-sell agreements, especially those using life insurance for stock redemptions. Alternatives like cross-purchase agreements or different funding methods can help minimize the impact. The surest way to ensure your business isn’t negatively impacted by the Connelly decision is to work with an attorney who understands contracts, business law, estate planning, and tax strategy. At Dahl Law Group, our knowledgeable team has experience in all relevant areas of the law to help your business handle the changes brought on by this Supreme Court decision. Contact our team at our offices in Sacramento or San Diego to ensure your business isn’t facing unnecessary tax liabilities due to the structure of business agreements.
Creamy Tortellini Vegetable Soup
SUDOKU
Inspired by EatingWell.com
Ingredients • 2 tbsp extra virgin olive oil • 1 cup peeled and chopped carrots • 1 cup chopped yellow onion • 1 tbsp finely chopped garlic • 3 cups reduced-sodium vegetable broth • 1 (15-oz) can (no salt added) diced tomatoes with basil, garlic, and oregano
• 2 tbsp fresh basil, chopped • 1/2 tsp ground pepper • 1/4 tsp plus 1/8 tsp salt • 1 (9-oz) package refrigerated cheese tortellini • 1 (5-oz) package baby spinach • 1 cup heavy cream
Directions 1. In a large Dutch oven, heat olive oil over medium-high heat. Add carrots and onions and cook for about 5 minutes or until onions are softened. Add garlic and cook for 1 minute or until fragrant. 2. Add broth, tomatoes, fresh basil, pepper, and salt. Bring to a boil, stirring occasionally. Reduce heat to medium, cover, and let simmer for about 5 minutes or until carrots are slightly tender. 3. Stir in tortellini. Cook until pasta is tender. Reduce heat to medium-low. 4. Add baby spinach and cream. Cook until spinach is wilted. Serve and garnish with additional basil if desired.
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INSIDE What’s
2. 1. Are You Really Listening?
Animals Listen in Ways We Can’t
Necessary Insurance Policies to Protect Your California Properties New Ruling Creates Shift for Buy-Sell Agreement Structures
3.
Creamy Tortellini Vegetable Soup
4.
The History of College Basketball’s Rise to Riches
Start Your Brackets! It’s March Madness How the NCAA Evolved Into a Basketball Powerhouse
THE FIRST MARCH MADNESS CHAMPIONS Before UConn, Kansas, Baylor, and Virginia became NCAA men’s basketball champions, the University of Oregon paved the way. On March 27, 1939, the University of Oregon defeated Ohio State University, 46–33. Ohio State’s star forward, Jimmy Hull, was named the tournament’s Most Outstanding Player — not bad for a 2007 Ohio Basketball Hall of Famer. EVOLUTION OF TOURNAMENT EXPANSIONS Only eight teams played in the 1939 tournament; by 1951, the number of teams doubled to 16. It wasn’t until 1985 that the 64-team tournament emerged. Further tournament expansion concluded in 2011, with 68 teams participating in college basketball’s big dance. MARCH MADNESS TODAY March Madness isn’t exactly what it used to be 40 years ago, from the hoopla and controversy of Selection Sunday (March 16 this year) to the chaos and parity caused by NIL (athletes’ pay for “name, image, and likeness”). Nonetheless, the tournament’s foundational values of camaraderie mixed with a bit of friendly competition and, of course, the love of watching basketball remain as prominent as ever.
Many say Christmas is the most wonderful time of year. However, if you’re a college basketball fan, it’s safe to say that March Madness is your favorite season! Millions of fans come out to support their favorite teams and fill out brackets to guess the national champion. But the history of college basketball’s biggest tournament might surprise you. HUMBLE BEGINNINGS March Madness originated in Illinois as an annual high school tournament sponsored by the Illinois High School Association. It went from a small invitational in 1908 to over 900 schools participating by the late 1930s. It wasn’t until 1939 that high school official Henry V. Porter called the tournament “March Madness.” THE EMERGENCE OF MARCH MADNESS FOR COLLEGES March Madness wasn’t nationally known or associated with the NCAA until CBS broadcaster Brent Musburger used the term while covering the 1982 spring tournament. Since then, the term has been synonymous with the event, and college basketball has never been the same.
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