Rosenbauer Law Office - Fall 2020

Rosenbauer Law Office - Fall 2020

FALL 2020

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Seeing the Positives This Year Giving My Very Best to the People Around Me

As 2020 comes to a close and we have a chance to look back over the year, we know one thing is for certain: The world has changed. Although some may look at this change negatively, I’ve tried to see the good that has come from it, both professionally and personally. This year, my team and I had to make sure that the show would go on, so to speak. Over these past several uncertain months, we’ve had a huge spike in people who’ve needed our help, and we made sure to be there for them. Our team worked both at home and in the office as needed and made sure to make online scheduling and virtual meetings as easy and convenient as possible for our clients. This was a great change for us because we now have more ways to connect with people. Once things start to be safe again, we’ll keep a number of the options available for people to use. Back in the summer, we also did a little bit of remodeling in the office to make things more organized. That’s allowed us to run smoother, which has been especially helpful as we’ve adapted to the world’s circumstances. Additionally, we’ve had a couple law student interns in the office. These individuals are still on their journey to become attorneys and professionals, and we’ve been glad to have them. They’ve done some great work, and I know that this experience will help them prepare for their futures and shape their careers.

and our son, Adam, had to stay home, my wife had to figure out how to both work and take care of him at the same time. It was pretty hectic for a while, and I honestly don’t know how she did it. She’d work before he woke up and again while he was eating lunch and taking his afternoon nap. Many times, when I got home from work, she would have to finish up what she wasn’t able to do while our son was awake. She’s an absolute saint. While the two of us have kept busy working and taking care of him, Adam is growing like a weed. Over these past few months, he went from just saying “mama” and “dada” to jabbering away. Recently, he entered what we call “Parrot Mode.” Adam will repeat anything you say and do everything you do. It’s strange to be suddenly forced to be a role model for this little boy because he’s so determined to do everything Daddy does. At times, he’s an animal, but it’s really quite adorable. That’s something that I’ve been really thankful for this year. As Rosenbauer Law has spent more time working from home

and limited the number of meetings in a day, I’ve had more time to spend with my family. With nothing to do on the weekends, it’s a great opportunity to unplug from the world and just be together, which I think is wonderful. The three of us have spent more time in the backyard, going on walks, and hiking than we did last year. The nights and weekends I’ve spent being in the moment, looking at what’s in front of me, have been truly remarkable. Taking these moments to recharge brings out the best version of me that the people around me need. I want to give my family the best version of Nick the Husband and Nick the Dad, just as I try to give my clients the best of Nick the Attorney and Nick the Advisor and my staff the best of Nick the Supervisor and Nick the Leader. By cutting out the noise around me and focusing on the good in my life, I can focus on the present and eliminate extra stress. That way, I can give everyone the best of me.

Personally, there’s been quite a lot going on. My wife was hit particularly hard after the pandemic struck and was abruptly forced to work from home. When our day care shut down

-Nick Ro senbauer

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ICE, ICE, LAWSUIT Woman Sues Starbucks Over ‘Too Much Ice’

Sometimes, there is such a thing as “too much ice.” You’re sipping your cold beverage when suddenly, it’s gone far quicker than you expected. All you’re left with is a cup full of ice. It’s disappointing, for sure, but is it so disappointing that you would want to file a lawsuit against the company that supplied the beverage? That’s exactly what Stacy Pincus did in 2016. She ordered an iced coffee from Starbucks, only to find “too much ice” in her drink. The lawsuit, filed in Chicago, alleged that the drink was advertised as a 24-ounce beverage, but once the ice was factored in, Pincus and her lawyers claimed the drink was really only “14 fluid ounces.”

“Starbucks’ advertising practices are clearly meant to mislead consumers when combined with the standard practice of filling a cold drink cup with far less liquid than the cup can hold,” the suit claimed. NBC News reported that Pincus sought damages to the tune of $5 million against the coffee chain. “The plaintiff would not have paid as much,” her lawyers stated in a court document, “if anything, for the cold drinks had she known that they contained less, and in many cases, nearly half as many, fluid ounces than claimed by Starbucks. As a result, the plaintiff suffered injury in fact and lost money or property.” Starbucks’ response: “Our customers understand and expect that ice is an essential component of any ‘iced’ beverage. If a customer is not satisfied with their beverage preparation, we will gladly remake it.” The company also reaffirmed that you can order any iced beverage with “light ice” and receive half the ice normally included. Interestingly, a second lawsuit against Starbucks popped up in Los Angeles a few months later, but both cases were thrown out. Pincus never saw a cent of that $5 million, nor did she recoup her attorneys’ fees. The case went on to be called “one of the most frivolous lawsuits of 2016.”

Election! The Presidential Election of 1828 Turned Politics Personal

It’s election season! But don’t worry, we’re not here to talk about this election season, a season full of emotion, strong feelings, and plenty of mudslinging. Rather, this is a look back at one presidential election that upset an entire country — an election that makes 2020 look tame!

always been polarizing, but in 1828, things really heated up.

Jackson had already lost to Adams in 1824. That election ended with no candidate winning the majority of the electoral vote. As a result, Speaker of the House Henry Clay had to cast a tie-breaking vote. (Clay had also been a candidate for president in the 1824 election.) Clay sided with Adams. And then Adams appointed Clay his secretary of state. Naturally, Jackson was not happy and accused the two of corrupt bargaining. Even Thomas Jefferson remarked on the events of 1824, writing that he was disappointed in the results. (He had supported William H. Crawford.) Even though Jefferson died in 1826, the Jackson and Adams campaigns used Jefferson’s words both to attack one other and praise themselves in the 1828 election.

it personal. They started going after one another’s wives and families, which the newspapers at the time loved. The Cincinnati Gazette called Jackson’s wife, Rachel, a “convicted adulteress.” She was in the process of getting a divorce when she married Jackson; however, the divorce had not been finalized when the marriage took place in 1794. This became a talking point for the opposition. It got to the point where Jackson gave up on talking about the issues and moved personal attacks to center stage. Adams tried to stick to the issues, more or less. However, the public sided with Jackson and Adams lost. But the drama didn’t end there. Days after the election, Rachel Jackson died. President-elect Jackson blamed her death on the mudslingers, saying, “May God Almighty forgive her murderers as I know she forgave them. I never can.”

1828: Andrew Jackson vs. John Quincy Adams (Incumbent)

Two new political parties entered the scene: the Democratic Party and the National Republican Party. These parties were established following the dissolution of the Federalist Party and the Democratic- Republican Party just a few years prior. Both Andrew Jackson and John Quincy Adams were formerly of the Democratic- Republican Party. However, Jackson joined the new Democratic Party, while Adams Joined the National Republicans. After the split, historians note a newfound level of polarization in national politics. Politics had

Mudslinging defined the 1828 election with both Jackson and Adams making

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The Estate Of The Union

As of the day I write this (in October), we are getting closer and closer to the upcoming election. I will not address the politics, hysteria, and the all-out slugfest that we have come to associate with election years (mainly because I do not have a glass of bourbon that I can easily reach). However, there are a number of concerns that we are keeping an eye on. The “left” and the “right” have very different platforms and thoughts on the world of estate planning. Without getting into all of the technicalities, the main difference is each political party’s philosophies on how assets should (or should not) be taxed at the death of the owner. NOTE: THE ROSENBAUER LAW OFFICE IS NOT TAKING SIDES OR ENDORSING ANY POLITICAL PARTY OR CANDIDATE WITH THIS ARTICLE! That only happens if you bring me a bottle of Knob Creek 12 Year and 2 glasses. Even then, I might not take sides. 1. Estate Tax/Lifetime Gift Exemption Amount After the 2017 Tax Cuts & Jobs Act was passed, the federal estate tax exemption (which is how much an individual can pass to his/her heirs between lifetime gifts and inheritance after death) was increased to over $11.5 million per person. For a married couple, this allowed them to pass over $23 million combined. This means that any individual could pass $11.5 million to his/her heirs through a combination of lifetime gifts and whatever was left in his estate after he passed away without paying any estate tax. The estate tax would only be applied on anything over $11.5 million.

As of right now, republicans generally want to keep this amount the same or do away with the estate tax altogether. A republican win will most likely extend this exemption or even do away with the federal estate tax once and for all. The democrats generally want to lower the amount of the exemption (which is the amount you can pass on without paying any tax). Depending on who you talk to, the general consensus is that the democrats would prefer to tax anyone who passes more than $3 million–$5 million per person (double for a married couple) to their heirs. 2. Estate Tax Rate As of today, any assets that are subject to estate tax at someone’s death (exceeding the $11.5 million per person) are taxed at the federal level at 40%. Therefore, if someone passed away and had $1 million that was above the exemption amount (and was therefore subject to estate tax), the estate would have to pay the federal government 40% of that excess amount (total of $400,000), before the remaining amount was passed on to the heirs. Republicans seem to be content with the 40% estate tax rate as it stands today. There has not been any real movement by this side of the aisle to make any significant changes to the tax rate in a number of years. On the other side of the aisle, democrats support raising the tax rate. Although there has been limited specifics, the general consensus is that the democratic party favors a tax rate that is closer to “historical norms.” In years

past, the estate tax rate has been much higher than it is today (along with the amount that families can pass on tax-free being much lower in years past than in 2020). Experts predict that an estate tax rate in the neighborhood of 60% would be the most likely “landing spot” if the democratic party is able to pass legislation to make the changes. 3. Step-Up Basis The “Basis” or “Cost Basis” of an asset relates to how much an individual paid for an asset when he or she bought it versus how much it appreciated (or grew in value). Normally, if you purchase $100 worth of stock, and then sell it for $2,100, you have a gain in value of $2,000. That $2,000 gain will be subject to capital gains taxes. However, under current law, when someone passes away, the people who inherit the assets (stock, house, etc.) receive what is known as a step-up in cost basis, which goes to the value of the asset on the day the person passed away. The advantage is that any gains/appreciation in value during the original owner’s lifetime are not subject to any sort of capital gains tax if they are passed through an inheritance. In the example above, even though the stock was purchased for $100, when the children inherit the stock (which is now worth $2,100), they will receive a step-up in cost basis to $2,100. If they were to sell the stock right now, there would be no capital gains tax applied to that sale.

Right now, the republicans have no plans to change this tax benefit for those who receive an inheritance at death. They want to keep the current laws in place that free the family members who receive the assets from having to pay taxes on the appreciation of the asset while the original owner was still alive. On the other side of the aisle, the democrats are in favor of repealing the step-up in basis. Using the example above, when the original stock-owner passed away, the heirs would be subject to the same capital gains tax on the $2,000 that the stock appreciated in value when they sell (just as if the original owner sold the stock himself or herself). Overall, these are two very different philosophies. Historically, there has never been a period where families could pass so much wealth to their heirs with such a low tax burden. It is very “cheap” to leave an inheritance, because of the large amount that can be passed on tax-free, the (relatively) low estate tax rate, and the step-up in basis that eliminates capital gains tax on inherited assets. Certainly, arguments can be made both ways. The republicans generally want to lower (or eliminate) instances where an estate is taxed at death. The democrats are seeking to return the tax rates to more traditional and historical levels. Who knows, by the time you read this article, we may already know what the future holds.

Christmas Holiday Office Hours:

Since this will be our last newsletter of 2020, I would like to wish each and every family that we have worked with a Merry Christmas and a blessed holiday season. 2020 has been quite a crazy year. However, we have been lucky to have the opportunity to serve our clients and their families. Please remember the true meaning of this holiday season and spend it with the ones you love (as safely as possible).

As a reminder, our office will be closed from Christmas Eve (Thursday, December 24th) through New Year’s Day (Friday, January 1st). During our holiday break, phone and email messages will be monitored for emergencies. We will re-open during normal business hours on Monday, January 4th. Merry Christmas and Happy Holidays!

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TAKE A BREAK

MEDITATION ALTERNATIVES For People Who Don’t Like to Meditate

Meditation is lauded for its health benefits and is often suggested as an effective way to clear the mind, organize thoughts, and reduce stress. Realistically, however, it’s not for everyone. In fact, some people don’t experience any benefits at all from meditating. In a recent study published in New Scientist about the effectiveness of meditation, researchers confirmed that some people do not benefit from meditation and that about 8% of people who try meditation experience an “unwanted effect,” such as an increase in anxiety. If you’re not interested in meditation, or it just doesn’t work for you, here are some alternative ways to clear your mind and reduce stress. Get serious about physical activity. Aerobic exercises — like walking, jogging, running, cycling, and swimming — are great for clearing your mind and getting your body moving. Really, any exercise that gets the heart pumping and increases your respiratory rate will do. Research supports that aerobic exercise is a great alternative to meditation that yields many of the same benefits. Exercising outdoors or in nature — especially in new places — enhances these benefits. Because your surroundings are going to be unfamiliar, your mind is more focused, which can help if you’re searching for clarity. Stay mentally engaged. Many people achieve clarity, focus, and stress reduction through simple but engaging tasks, such as immersing themselves in an adult coloring book, doing brain teasers, or assembling LEGO sets, which proves they can be effective therapeutic tools or alternatives to meditation. The LEGO Company has actually been developing more products for adults with this sort of research in mind. But why LEGO products specifically? In addition to being objects you touch and push together, LEGO products come with clear, step-by-step instructions, which make them easy to put together and allow you to focus more on the task at hand. Even if you don’t complete the piece in one sitting, working on a project a few minutes a day can be a beneficial way to find a little clarity.

CINNAMON-SPICED CANDIED SWEET POTATOES

Inspired by FoodAndWine.com

These candied sweet potatoes will make your family beg for more!

Ingredients

• 4 lbs orange-fleshed sweet potatoes, peeled and cut crosswise into 2-inch pieces, then cut lengthwise into 1-inch wedges • 1 cup light brown sugar, packed

• 1 tbsp kosher salt • 1/4 tsp ground cloves • 1/4 cup unsalted butter, cubed • 4 (2-inch) cinnamon sticks

Directions

1. Preheat oven to 350 F. 2. Place sweet potato wedges in a 4-quart baking dish. 3. Sprinkle sugar, salt, and cloves over sweet potatoes.

4. Dot with butter and place cinnamon sticks around sweet potatoes. 5. Bake, turning every 15 minutes, until sweet potatoes are tender and the liquid is syrupy, about 1 hour and 15 minutes. 6. Remove from the oven and let stand for 10 minutes. 7. Discard cinnamon sticks and serve.

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INSIDE THIS ISSUE

1

The Positives of 2020

Woman Sues Starbucks Over ‘Too Much Ice’ A Presidential Election That Turned Up the Heat

2

Cinnamon-Spiced Candied Sweet Potatoes Clear Your Mind in a Different Way

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4

A Number of Importance

THE 11TH HOUR OF THE 11TH DAY OF THE 11TH MONTH Why Veterans Day and the Number 11 Go Hand in Hand

Veterans Day comes every Nov. 11. It’s a national holiday that recognizes veterans who served in the United States Armed Forces and honors those both living and deceased. Historically, the day marks Armistice Day and the end of the Great War: World War I. But what is the significance of the number 11? The armistice was signed at 5:45 a.m. in France, but it took effect at 11 a.m. that same morning — which happened to be Nov. 11, 1918. The armistice originally lasted 36 days but was extended month after month. This led to the signing of the Treaty of Versailles on June 28, 1919, when peace was officially declared. Later that year, President Woodrow Wilson proclaimed that Nov. 11 would be known as Armistice Day to honor those who fought in the Great War. This lasted until 1954, when President Dwight Eisenhower

signed a proclamation turning Armistice Day into Veterans Day.

The change was made in order to recognize all veterans who had honorably served their country. By 1954, the U.S. had fought in more wars — specifically World War II and the Korean War — and hundreds of thousands more Americans had served. Unsurprisingly, there was some political drama surrounding the day. In 1968, Congress made Veterans Day a federal holiday under the Uniform Holiday Bill. The idea was to increase the number of three-day weekends in the year. Veterans Day became a holiday that would fall on the fourth Monday of October, a far cry from Nov. 11. However, in 1978, Veterans Day was restored to its original Nov. 11 date. But why?

The answer is simple. It’s a number that sticks with you. When the clock strikes 11:11, you always take notice. By that same notion, we all remember the 11th hour of the 11th day of the 11th month. Because of this, we’ll never forget the end of the Great War, nor will we forget those who served.

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