Sabal Trust Company

When I retire in about a year, I'm expecting a six-figure distribution from my employer's 401(k) plan. The success of my retirement turns on what I do with this money, and I'm more than a little unsettled by the prospect. What should I do to keep my all my options open?

You might get investment advice from any of the following sources: a financial planner; a financial consultant; a financial advisor; an investment advisor; an investment representative; a stock broker; a wealth manager; an insurance agent; a relative; or a bank trust officer.

As economic uncertainty increases so does the volatility of the financial markets. The storm clouds over Europe during 2011 demonstrated the truth of that observation. Each bit of news over resolving the sovereign debt crisis seemed to inspire a strong market response.

Starting the New Year involves anticipating a new set of investment experiences, which is comparable to cleansing the palate in preparation for the next course of a fine meal. Consequently, investors would gladly cleanse their memories of the volatility that dominated the investment landscape due to the uncertainty of global socio-political and economic events. Unfortunately, 2012 is likely to be an environment filled with many of the risks and pressure points that influenced the markets last year.

Thanks to an inflation adjustment, in 2012 the federal estate and gift tax won't kick in until $5.12 million. That means lifetime gifts must exceed that amount before a gift tax becomes payable. For those who die in 2012, the sum of lifetime taxable gifts and estate assets must exceed that same figure before an estate tax is payable.

I don't have $5 million. I don't need to worry any more about estate taxes, do I?

To make it possible for voluntary retirement savings to keep up with inflation, the various numerical limits embedded within qualified retirement plans are indexed for inflation. In October the IRS announced the numbers that will apply in 2012, as shown in the following table

With the fragile economy, this might seem like an unlikely time to explore the issues that attend "sudden wealth." But even in difficult economic times, people can come into money suddenly. The most routine sources of sudden wealth are inheritances and lump sum distributions from employer retirement plans.

In October, a key IRS interest rate (the Section 7520 rate) fell from 2.0% in September to 1.4%, the lowest rate ever. (The high point for the Section 7520 rate was 11.6% in May 1989.) As recently as last May, the rate was 3.0%. Very low interest rates favor some estate planning techniques, but others lose their allure.

Shaping one's vision of the future involves analyzing the external world as well as turning inward to draw upon past experiences. Recently, heightened uncertainty fueled increased volatility across global markets testing investors' resolve regarding their expectations about the economic environment. The stark reality that it will take longer and be more challenging to repair the damage caused by over-leverage and unchecked private and public spending continues to weigh on the global markets. Against that pessimistic backdrop, a fundamental concept should be embraced: markets, economies, and asset classes cycle, which is a natural process presenting investors with both opportunities and challenges. This time is no different.

ST. PETERSBURG, Fla. (Sept. 28, 2011) - Sabal Trust Company, Florida's largest employee-owned trust company, announced it has launched a redesigned website, reflecting the firm's strong commitment to the growth and preservation of client wealth.

New estimates suggest that 70% of Americans who reach age 65 will, at some point, need extended health care. The U.S. Department of Health and Human Services projects that some 20% of retirees could require five or more years of such care. To pay for this care, many are turning to long-term care insurance (LTCI). However, these policies come with a profusion of confusing choices.

When you hear about the challenges of building a financially secure retirement, or think about your own plans, here are some facts to keep in mind.

Uncertainty and volatility exert their influences in a variety of ways across global economies and financial markets. The removal of all risks associated with investing is impossible and it is imperative that investors embrace the concept of a volatile financial landscape and adhere to proven, risk-dampening portfolio strategies.

IRS issued a report in May on the top 400 taxpayers by adjusted gross income (AGI) each year for the years 1992-2008. This exclusive club has a lot of turnover. The report demonstrates that top incomes are derived from investments, not wages or salaries.

Most of James Mitchell's fortune was held in his revocable living trust. Six days before his death in 2005, he transferred a 5% interest in two real estate properties to an irrevocable trust for his sons. The reason for the transfer was to keep the properties in the family at least until the sons reached age 45.

The first step in estate planning is compiling an inventory of all current assets. Financial records, life insurance policies, real estate interests, bank accounts, brokerage accounts, retirement accounts, collectibles...the list is extensive and can be exhausting. In the digital age, this first step needs to include more than paper.

Word came in April that Superman would renounce his American citizenship in an upcoming issue. Three questions sprang to mind: When did Superman gain American citizenship? How hard is it to renounce one's citizenship? Why would one do that? We are not authorities on comic book trivia, so the first question will remain unanswered. Renouncing citizenship is a straightforward process.

A substantial portion of the trillions of dollars that will be transferred through the estates of baby boomers in the coming decades is expected to be in IRAs, qualified retirement plans and other tax-preferred accounts. IRA rollovers have grown significantly as workers have moved their 401(k) money at retirement in order to extend its tax-deferred status. Planning for the inheritance of this money is assuming greater and greater importance. In particular, can this money be shielded from the claims of beneficiaries' creditors?

Trust-based wealth management plans are growing in popularity. According to one recent survey, more than half of families whose wealth exceeds $5 million already employ a trust for asset management. More than a third of families whose wealth falls into the $1 million to $5 million range have a trust.

The first quarter served as a reminder to all investors of the present risks lurking in the global financial markets in the form of uncertainty and heightened volatility. Investor sentiment shifted by oscillating between states of extreme euphoria and unbridled optimism to that of a tone of caution and risk aversion.

ST. PETERSBURG, Fla. (March 8, 2011) - Sabal Trust Company, the largest employee-owned trust company in Florida, recently announced that Gerry Lachnicht has been hired as a principal and portfolio manager for the firm's office in The Villages.

The IRS is cracking down on people who have undisclosed income from hidden offshore accounts. It's a big job. To get a jump on it, in 2009 the Service offered reduced penalties for anyone who came forward to disclose voluntarily such accounts and bring those assets into the U.S. tax system. About 15,000 taxpayers came forward during the program, and another 3,000 have made voluntary disclosures since the program closed. Perhaps because of this success, a new voluntary disclosure program has been announced for 2011.

According to SEC reports, Monroe L. Beachy began offering investments to Amish families in 1986. His success in making his pitch was tied to the fact that he himself was Amish. Beachy promised higher returns than those available from banks, coupled with the safety of investing in U.S. Treasury bonds. Does that sound familiar? Over the next 25 years, he raised $33 million from some 2,600 investors, most of whom were Amish.

Morrison was concerned that his $300,000 term life insurance policy might not be enough protection for his family. He broached the issue with some golfing buddies who were financial planners. They were able to get him a new $1 million policy with premiums that were not higher than the policy he surrendered.

DEAR TRUST OFFICER: With the new $5 million estate tax exemption ($10 million for married couples), isn't it true that most people don't have to worry about estate planning any more? AFFLUENT, NOT RICH

What duty does an investment advisor or stock broker owe his or her clients? The flip answer might be, to paraphrase Will Rogers: "Only recommend stocks that will go up in value. If they go down, don't recommend them." But that's not the real world of investing. Nearly all investments may go down in value in some circumstances. Currently, there are two legal standards, one for brokers and another for investment advisors. Brokers must take steps to be confident that an investment is suitable for each client.

The tax compromise reached by Congress and the President in December had explicit and implicit effects on planning for your IRA.

DEAR TRUST OFFICER: I understand that the federal estate tax exemption is now $5 million. What about gift taxes? -GENEROUS GRANDPARENT

In news coverage of the debate over estate taxes, you may have heard something along the lines of "In 2009 the federal estate tax exemption was $3.5 million, or $7 million for married couples." Strictly speaking, that was not quite accurate. Yes, with some basic estate planning and given certain assumptions about who owns what and who dies first, married couples could achieve a doubling in the value of the federal estate tax exemption. But without that estate planning, a couple would most likely would lose one of their exemptions.

The New Year offers investors an opportunity to frame the catalysts that could shape and define the markets. Looking ahead allows for the positioning of investments in order to take advantage of the ever-evolving environment.

Officially, the current economic recovery has been under way since June 2009, when the economy as a whole began growing again. Unofficially, many Americans have remained skeptical of such pronouncements, given the persistence of high unemployment. But the skepticism seemed to give way in the 2010 Christmas shopping season, when consumers opened their wallets a bit wider than expected. Early projections tracked a 5.5% increase in retail spending in the 50 days before Christmas, compared to the year earlier.

Investors with a sense of the history of the financial markets have high hopes for 2011. That's because since the 1930s the stock market has generally done best in the third year of a President's term. MarketWatch's Mark Hulbert, looking at the Dow Jones Industrial Average since 1896, has found that the average Dow return in the third year was 15.5%. In contrast, the first year of a President's term averaged 8.8%, the second 0.4% and the fourth 4.1%.

DEAR TRUST OFFICER: I understand that the federal estate tax exemption is now $5 million. That's well above my wealth level. Do I still need a trust in my will? -DODGED THE DEATH TAX

Advent of a kinder, gentler estate tax. The December bipartisan compromise over extending the "Bush tax cuts" included somewhat controversial taxpayer-friendly changes to the federal estate tax. The amount exempt from this levy was set at $5 million. It had been $3.5 million in 2009 and would have gone to just $1 million in 2011, absent the compromise. In addition, the top estate tax rate was set at 35%, down from the 45% rate in 2009 and far less than the scheduled 55%. The 5% surtax on estates over $10 million was not renewed.

Within days after the law reforming the financial industry was signed by the President, the Securities and Exchange Commission asked for public comments about possibly changing the standard of care associated with the delivery of investment advice. The new law requires the SEC to study the matter, and having studied it, the SEC is empowered to change those standards. The goal is to enhance investor protections and investor confidence.

What can be accomplished with this power to delegate the authority to manage property in a trustee? Trusts can be individually tailored to address many different financial goals. As a result, there's no such thing as a "typical trust." However, certain basic trust approaches are widely used. The following fictitious examples may spur your thinking about how trust planning might help you to meet your own financial goals.

DEAR TRUST OFFICER: Has Congress fixed the estate tax mess yet? PROCRASTINATING TESTATOR

Duncan Bannatyne is a British multi-millionaire businessman and author. He established a trust for his daughters, and each receives the equivalent of $545 per month from it. Apparently, Bannatyne is the trustee, and he retains broad discretionary control over it. When he discovered that one daughter had begun smoking, he cut off her trust distributions.

What's up with inflation? I see gas prices are going up, yet there's no increase in Social Security payments? Should I be worried? -LIVING ON A FIXED INCOME. Remember the $4 per gallon gas prices of 2008? Those were factored into the CPI that year, and the 2009 Social Security payments got a boost that, in hindsight, may have been higher than necessary.

In a quest to stimulate the housing market, Congress enacted three different versions of tax credits for homebuyers. Each has its own rules. Whether the tax credit must be repaid depends upon the purchase date of the home, as well as whether the home has since been sold at a profit.

To make it possible for voluntary retirement savings to keep up with inflation, the various numerical limits embedded within qualified retirement plans are indexed for inflation.

Is sooner better than later? Upper-income taxpayers are not permitted to make contributions to Roth IRAs. The boundary in this case for 2010 is $120,000 adjusted gross income for singles, $177,000 AGI for marrieds filing a joint return. If these taxpayers want a Roth IRA, the only route is conversion. For example, a traditional IRA may be converted to a Roth IRA by anyone, regardless of income, beginning this year.

Investor risk appetite continues fluctuating as new economic data and global policy decisions shape market participants’ perceptions and visions of the future. Remaining highly disciplined during volatile and uncertain market periods by avoiding the traps of short-term emotional decision-making and adhering to long-term investment strategies, increases the probability of investment success.

The recession is over. In fact, according to the National Bureau of Economic Research, the economic trough was reached in June 2009, so the recession has been over for 16 months. This was the longest downturn since the Great Depression, lasting 18 months. The previous post-World War II recordholders were in 1973-75 and 1981-82, both lasting 16 months.

Are Treasury bonds my safest choice in today's market? Your question has oversimplified the problem. Bonds are subject to default risk-the possibility that the issuer will fail to meet interest or principal payment obligations. On this measure, yes, Treasury bonds are your safest choice.

One year ago, the conventional wisdom was that Congress wouldn't let the federal estate tax expire for 2010; some sort of temporary patch would be crafted, as is done each year for the Alternative Minimum Tax. The political divide was deeper than the pundits predicted. A stalemate in the Senate led to the previously enacted transition rules for estate and gift taxes going into effect.

As it turned out, one of the best strategies for minimizing the estate tax burden on the family fortune was to die in 2010 - just ask the heirs of billionaires George Steinbrenner and John Kluge. Notwithstanding repeated calls to restore the estate tax retroactively to the first of the year, Congress has taken few concrete steps, and it won't resolve the issue before the election.

As the recession tore through the banking and investment world, one little corner of money management largely escaped the carnage: trust companies.

The price/earnings ratio (P/E ratio, for short) is the comparison of a firm's current stock price to its earnings, either reported earnings or projected earnings. As such, it tells us if investors are willing to pay a high price or a low price for a stock. Careful consideration of the P/E ratio was advocated by value-investing theorists Benjamin Graham and David Dodd in the 1930s.

A charity-sponsored auction can be a great fundraiser; successful auctions have already raised millions of dollars. Donors provide the goods; bidders receive valuable property or services; everyone has a good time; and the charity receives the proceeds. Plus, there are tax breaks all around, right?

The good news for retirees is that life expectancies are growing longer. In 1955 an American aged 50 could expect to live to be 75. By 2005 that figure had jumped to 81. What's more, a 50-year old now has a 24% chance of surviving to age 90 and beyond. (These figures come from WolframAlpha.com.)

James Guyton sold his Florida chicken farm on January 20, 2000, for $190,000. After paying off two mortgages, he placed the net proceeds of $99,735 into a joint checking account with his son Timothy.

Mutual funds have been permitted to charge shareholders 12b-1 fees to cover the costs of marketing and advertising the fund. Such fees, which are distinct from the fees charged for managing fund investments, may be as high as 1.00% of the fund's value.

A period of economic weakness is not generally a good time for a major tax increase. However, increased income taxes have already been legislated for 2011, when tax cuts enacted under President Bush will expire. Some in Congress have argued that these tax cuts should be allowed to expire for upper-income taxpayers, while others believe that these breaks should be extended to everyone.

This year, everyone has the opportunity to convert a traditional IRA to a Roth IRA. The downside is paying the ordinary income tax due on the conversion. Where is that money to come from? Financial planners have generally recommended against invading the Roth IRA for the tax money to avoid compromising this important retirement asset. But not too many taxpayers have tens or hundreds of thousands of dollars lying around in cash, ready to dedicate to this purpose.

This year, the federal gift tax applies at the historically low rate of 35%, when lifetime taxable gifts exceed $1 million. Next year, the rate is scheduled to zoom up to 55%, in tandem with the return of the estate tax.

Trust and confidence, critical building blocks within the foundation of any free-functioning society, are required to attract participants in the global financial system. The erosion of confidence or a lack of faith in these systems and structures could inevitably undermine the functionality of such markets.

Perhaps the most important economic story of 2010's second quarter concerned the Euro and what steps should be taken to restore the standing of Greece in the financial markets. Because other members of the Eurozone are on similarly shaky ground, the ending of this story remains unwritten.

Given the wrenching losses in global equity markets of the last few years, a flight by investors to the lower volatility and higher predictability of bonds is to be expected. Perhaps "stampede" would be a better description than "flight." According to Morningstar Advisor, open-ended bond funds in the U.S. took in $357 billion in 2009, more than all other asset classes combined and more than the previous five years combined.

Always an essential element of portfolio planning, taxes are about to become even more important to those at the upper end of the income spectrum. Temporary tax cuts enacted during the Bush administration expire at the end of this year, and a cloud of political uncertainty hangs over them.

When actor Gary Coleman died in May from a brain hemorrhage at age 42, he had an estate plan in place. In fact, it appears that he had three of them.

St. Petersburg, Fla. - Sabal Trust Company has announced G. Bruce Mullin, CFA, CFP, has been named a principal with the firm. He works as a portfolio manager in the St. Petersburg office.

In an experiment summarized by Gary Belsky and Thomas Gilovich in Why Smart People Make Big Money Mistakes (Simon and Shuster, 1999), shoppers in a grocery store were offered free samples of fancy jellies and a $1.00 coupon good for buying the jar of their choice. During some hours the samplers had six kinds of jelly from which to choose, and at other times they were offered 24 different varieties. The coupons were bar coded to enable tabulation of the buying response of the two groups. The results were somewhat surprising.

Growing old isn't always easy. There’s the financial uncertainty of living on a fixed income; health problems may become more acute; hearing and vision tend to weaken; stamina falls off.

Do I still need a marital deduction trust in my will for my wife? -CONCERNED HUSBAND. Most likely, yes. If your current will includes a trust for a surviving spouse, you will want to keep it.

Mary and Joseph Artalls were family farmers. In 1976 Joseph created a corporation to hold the farm's land. He died in 1998. Two of their children participated in the operation of the farm. In 2001, a limited liability company (LLC) was formed to own the farm assets exclusive of the land, such as livestock, equipment and supplies. The participating children bought out the interest of the nonparticipant, so that they each owned 25% of the LLC and Mary owned 50%.

Parents and grandparents of a child with a lifelong disability, such as autism, have a special estate planning challenge. On the one hand, they want to provide the financial support that the child never may be able to provide for himself or herself. On the other hand, they want to protect the child's eligibility for the full range of government support programs, including health care.

In 1987, Congress directed the Bureau of Labor Statistics to begin calculating a Consumer Price Index for the elderly. Does the CPI accurately reflect the changes in the cost of living experienced by retired Americans, and so have the inflation adjustments to Social Security benefits have been done appropriately? An experimental CPI-E was created for the population aged 62 and older, using 1982 as the base year.

DEAR TRUST OFFICER: How much should I budget for medical expenses in retirement? Won't Medicare cover most of this expense? -LOOKING TOWARD RETIREMENT

We refer in our headline not to the Hollywood deal-maker or the secret employee of a clandestine service, but to the idea of delegating one's responsibilities to an institution staffed with professionals ready to work on behalf of others - an agency relationship.

Due to the market meltdown of one year ago and the subsequent recovery, investors are re-thinking and re-evaluating expectations regarding the economy, core growth, correlations, and the fundamental relationship between risk and return. Against this backdrop, reassessing expectations is also required to ensure that investors' vision of the future more closely aligns with the underlying economic realities.

During a severe economic downturn, one expects companies to cut their dividends to preserve cash. That flexibility is an essential element of corporate fiscal management. Sure enough, during 2009 the companies in the S

To stimulate more private sector job growth, Congress has enacted the Hiring Incentives to Restore Employment Act. The new law offers employers two distinct tax breaks for hiring "qualified" employees in 2010.

As a rule, financial planners favor consolidating IRAs into a single account for ease of management. Having lots of different accounts means lots of different statements and, very often, an incoherent and impulse-driven investment approach. However, there is a circumstance in which having multiple accounts can be advantageous. It has to do with conversions of traditional IRAs to Roth IRAs.

Over the years, employers have taken many steps to improve 401(k) plans, to make them more attractive to participants and to encourage higher participation rates. One of those steps was to increase the number of investment choices available, so that each participant would be more likely to find an investment alternative exactly to his or her taste.

Taxpayers are free to move money from one IRA to another, so long as they complete the transaction within 60 days. If they hold on to the funds for 61 days, they have a taxable distribution on their hands, and possible penalty taxes as well.

A recent IRS private letter ruling provides a timely reminder on the importance of understanding your will.

Remember when "hidden treasure" resided in chests buried by pirates? Today's precious assets may be invisible to the naked eye until retrieved from a hard drive.

Glen W. Bell, Jr., started selling tacos from his hot dog and hamburger stand in 1952. The idea of popularizing Mexican food was a big success. In 1962 Bell opened the first Taco Bell restaurant, and in 1964 he began franchising it around the country. The chain so prospered that Bell was able to sell it to PepsiCo in 1978 for $125 million in stock.

Automatic cost-of-living adjustments (COLAs) were created for Social Security benefits in 1975. For the first time since then, in 2010 there was no COLA. Here are the basic Social Security numbers for your reference.

Understanding the positive and negative factors impacting the markets is a fundamental part of the planning process, especially as investors deal with uncertainty. For investors, the New Year provides an occasion for reflection on the past year's activities as well an opportunity to look ahead and consider the catalysts that will inevitably shape the environment.

Some stocks pay dividends, and some don't. Which ones an investor chooses is, in part, a matter of risk tolerance. In general, larger and, some might say, stodgier firms are more likely to pay a dividend, while younger, smaller, growth-oriented stocks don't. The company that does not pay dividends plows that money instead back into the firm, which, theoretically, is supposed to make the stock price appreciate more quickly. At one time there was a strong tax incentive to take this approach, as dividends were taxed much more severely than long-term capital gains. At the moment this tax disparity is gone, but it is scheduled to return after 2010.

The tax credit for first time home buyers of up to 10% of the purchase price of a home, slated to expire on November 30, was superseded when Congress enacted the Worker, Homeownership and Business Assistance Act of 2009 in November. The new rules apply to all purchases after November 6, 2009. The new deadlines are April 30, 2010, for binding purchase contracts and June 30, 2010, for settling the purchase. The new law contains a number of important wrinkles that home buyers will want to learn.

The 2008 Economic Stabilization Act extended the window for tax-free rollovers from IRAs to charity, but that opportunity evaporates at the end of this year. Until then, owners of traditional IRAs and Roth IRAs who are at least age 70.5 may transfer up to $100,000 from their IRAs without having to report the gift as taxable income and pay tax.

The U.S. Commerce Department reported on October 30 that the U.S. economy contracted at an annualized rate of 0.3% in the third quarter-the largest drop since the end of 2001 - as consumer spending declined at the fastest rate in 28 years. Most observers concede that a recession is under way.

Historically, municipal bonds have been the Mr. Rogers of investment options: a gentle, risk-free, tax-exempt way to protect wealth. Then came the fourth quarter of 2008, with its stock market crash and Round One of federal government bailouts. Distressed institutional investors pulled out of the muni market, making the problem worse.

As another year comes to a close, you will have the chance to make many decisions that affect your financial well-being in the year ahead. In particular, these last months are the last chance that you will have for moves that will alter your 2009 tax obligations. This year's financial market roller coaster may make this unusually complicated for some taxpayers.

Speaking on the anniversary of the collapse of Lehman Brothers, Fed Chairman Ben Bernanke said that from a technical perspective, "The recession is very likely over at this point." He cautioned, however, that the economy may remain weak. In its final meeting of the quarter, the Fed seemed to confirm that view, suggesting that economic activity had "picked up."

The Grantor Retained Annuity Trust (GRAT) has been getting quite a bit of attention from estate planners recently. The reason is that low market interest rates create a window of opportunity for passing assets to heirs without incurring much, if any, estate or gift tax.

In the debate over which is better - the immediate tax deduction for contributing to a traditional IRA or the potential for tax-free income from a Roth IRA - the answer tends to turn on one's assumptions about tax rates. Conventionally, one expects to be in a lower tax bracket during retirement, perhaps dramatically so. That favors the traditional IRA. These days, however, those at higher income levels have been told repeatedly that their tax rates will be going up in the future, perhaps sharply. If so, the advantage shifts to the Roth IRA.

The Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009 was signed by President Obama last May, after passing both Houses of Congress by wide, bipartisan margins.

The federal estate tax needs to be changed, that much everyone agrees upon. Today the federal estate tax exemption is $3.5 million, which means that with some careful planning married couples can shelter $7 million from taxation over two deaths. President Obama has proposed freezing those rules, as it would keep this tax targeted to the most affluent Americans.

In personal bankruptcy proceedings, the general rule is that IRAs and other qualified retirement assets are protected; they not subject to the claims of the individual's creditors. However, a recent Florida court case showed that every rule has its exceptions.

"Probate" is a word with two meanings. Specifically, it means proving to a court that a will is valid. More generally, "probate" refers to the whole process of settling an estate disposed of by will—assembling assets, notifying creditors, paying taxes, distributing bequests and so on.

The standard rule for valuing estate assets is to use the fair market value on the date of death. If the value is high enough, a federal estate tax will be due. A long-standing choice permits an estate's assets to be valued instead at an alternate valuation date, six months after the individual's date of death. It's a decision that an executor makes on the federal estate return, and it can be essential during down markets, such as we have experienced recently. Paying a death tax on evaporated gains on stocks or real estate can be just about impossible, because selling the assets may not yield enough to cover the taxes due.

IRAs have become a mainstay in many retirement portfolios, very often as receptacles for lump sum distributions from employer plans. Here are three private letter rulings that illustrate some of the complexities that may come with these accounts. The names in these otherwise true examples are fictitious.

Since the outset of the year, the investment environment can be characterized as manic depressant with the emotional pendulum swinging wildly between the extremes. As investors, we must intellectually embrace the reality that markets, economies and asset classes cycle, a natural process that brings opportunities and challenges; and the current cycle is no different. The rapid transformation of the economic and financial landscapes and their constant ebb and flow will force investors to adapt and adjust their outlook toward risk and return.

There were some hopeful signs during the second quarter, but the recession remains far from over. On the plus side, major stock indexes were briefly in the black for the year, overcoming the steep first-quarter losses. The economy did not contract quite so quickly in the first quarter as initially thought, as the Commerce Department revised the Gross Domestic Product loss to 5.5% from the earlier 5.7% projection. GDP fell 6.3% during the final quarter of 2008, so that is seen by some as the low point of the recession.

If estates consisted only of cash and marketable securities, determining their values and death taxes due would be simple. But estates often have assets that are very hard to value, and much estate tax litigation with the IRS concerns getting that value right.

With asset values low, some owners of traditional IRAs may be wondering whether this might be a good time to convert their accounts to Roth IRA status. There is a significant tax cost associated with the transaction, because the full amount of the conversion is taxable at ordinary income tax rates. The benefit that makes the price worth paying is the potential for tax-free growth in all the years following the conversion, coupled with freedom from the required minimum distribution rules.

When William joined his employer's saving and investment plan (SIP), he signed a beneficiary designation to identify the person to receive the account balance, if any, at his death. He named his wife, Liv, the approach most people ordinarily would take. William was free to change or revoke the beneficiary designation at any time, and if no one were designated, the funds would pass to his estate.

What would you do if you suddenly came into a lot of money? Such as, for example, winning a $144 million Powerball jackpot? That was the question faced by a long-time Washington, D.C., resident who bought a single $1 lottery ticket with the numbers randomly selected.

Although the stock market has been doing better lately, it is still well off the highs of 2007. Many IRAs have been hard hit by the fall in asset values. However, even bad markets can create tax planning opportunities.

There are new players on the municipal bond stage, Build America Bonds (BABs). The new instruments, introduced by the American Recovery and Reinvestment Act (also known as the "stimulus bill"), are a new type of taxable municipal bond.

When the financial markets are in turmoil, a reshaping of the financial and investment advisory industry isn't far behind. Some banks, brokers or advisory firms may go out of business; bankers, brokers or advisors may decide to change employers; or unhappy clients simply may conclude that it's time for a change. There's no hard data on how much "money is in motion" as a consequence of the current economic downturn, but, speaking anecdotally, it seems significant.

For comedians, and perhaps for life in general, timing is everything. Our tax code includes innumerable examples of that, which is what contributes to its extraordinary complexity. Congress affixes special dates to some tax breaks to lower their "revenue costs." Here are three new examples, taken from the "stimulus bill" enacted in February.

Investors who survived the dot-com bust, the 1987 crash, and the market malaise in the 1970s may have believed they experienced it all, but the turmoil affecting the global economy and its impact on financial markets is uncharted territory for even seasoned professionals.

As bad as the stock market's performance was during President Bush's final quarter in office, it was worse still as President Obama took the reins. The Dow Jones Industrial Average fell to 6,469.95 in March, and the S&P 500-stock index slipped to 666.79, levels last seen in the last century, when Alan Greenspan famously warned of "irrational exuberance." That's a 54% drop from the high set in October 2007; the only worse period for the stock market in modern history was the 89% drop in the Dow from 1929 to 1932.

It's complicated enough for parents of college-age children to find their way through the maze of federal loan applications. Sorting through the list of possibilities for tax relief for tuition expenses, and eligibility for them, only adds to the headaches.

The fraud perpetrated by Bernard Madoff remains in the headlines months after it first came to light. At least some of the recent news gives some hope of relief for as many as 13,000 investors who may have lost as much as $65 billion. The IRS has announced that it will allow investors who fall victim to investment fraud and schemes to claim an income tax deduction under the casualty and theft loss section of the tax code. Details are forthcoming, but claiming the deduction is sure to be a complex and time-consuming process.

Last year was a tumultuous one for municipal bonds. Muni prices tumbled on average 4% in 2008. The Wall Street Journal cited a Morningstar finding that ten muni bond funds fell by at least 15% last year. That's happened only four times in the last 25 years.

The IRS examined only 1.01% of all individual income tax returns in 2008, down slightly from 2007. But the Service audited almost 3% of $200,000 plus returns, up 16% from 2007; 49% from 2006. For those earning $1 million or more, the figure jumped to almost 5.6%

In light of recent economic and market events, many people have rethought and, perhaps, adjusted some financial goals. It's unlikely, however, that they have undertaken a major reassessment of the values and ideals that they live by.

Many investors have long relied upon dividend-paying stocks. Retirees felt secure that they had a dependable source of regular income. Conservative investors found them a safe way, relatively speaking, to generate growth by reinvesting their dividends.

Worrying about economic conditions is not confined to the adult world. Many psychologists believe that children, especially teenagers, are well aware that their parents are concerned and are feeling-if not necessarily expressing-their own anxiety. In an ABC News poll conducted last November, 75% of 12- to 17-year-olds who said that their parents were worried about the economy also said that they were worried themselves.

If you are like some people, you may not want to leave your home, ever. But suppose that after you retire, your plan is to move out of state, or you're healthy and active but just tired of all the work associated with home ownership.

The economic news throughout the final quarter of 2008 was unremittingly bleak. The National Bureau of Economic Research declared in December that not only was a recession under way, it had begun in December 2007, a year earlier.

As we move through the most challenging financial crisis in more than a generation, a common thread of questions have surfaced from conversations with our clients regarding the dramatic market activity.

IRA owners received an early Christmas present at the end of 2008 when Congress suspended the rule that requires mandatory withdrawals starting at age 70 1/2. The suspension, which also applies to other retirement plans such as 401(k)s and IRA beneficiaries who must withdraw funds from inherited IRAs over five years, is in effect for 2009 only.

If you're approaching - or already have crossed - the finish line to retirement, you should focus on meeting two goals. One, providing yourself with an income that will let you live comfortably, and, two, making certain that your retirement resources will last for your lifetime.

Much of the attention surrounding the current financial crisis has focused on the implications for large businesses. Less emphasis has been placed on the impact that the turmoil has been having on family-owned enterprises.

Logic and emotion may suggest that now is not the time to give anything away. Yet, although there hasn't been much to applaud in the financial news recently, an environment of depressed asset values and low interest rates actually may make it a good time, from an estate planning perspective, to consider some of your options.

Every year, certain cost-of-living adjustments (COLAs) are announced that may increase what you can contribute to your retirement plan and IRA. Social Security benefit amounts rise and other figures related to Social Security change as well. (The 5.8% increase in benefits is the largest since 1982.)

The U.S. Commerce Department reported on October 30 that the U.S. economy contracted at an annualized rate of 0.3% in the third quarter - the largest drop since the end of 2001 - as consumer spending declined at the fastest rate in 28 years. Most observers concede that a recession is under way. The report came just when the Federal Reserve lowered the federal funds rate by one-half of a percentage point-down to 1% - in its attempts to boost economic growth and increase the availability of credit. That's the lowest rate since the 12-month period between June 2003 and June 2004. Before that the rate had not been that low in 45 years, back when Dwight Eisenhower was in the White House.

In Part One of this discussion, we took a look at some of the basic income-tax-saving techniques that could help reduce your 2008 tax bill. Here, we examine some of the other steps to consider before the year's end.

The 2008 Economic Stabilization Act that became law in October included extensions of tax breaks that had expired at the end of 2007. One of them, the revival of tax-free rollovers from IRAs to charity, may deserve your immediate attention.

The end of the third quarter leaves investors searching for answers to questions regarding the stock markets, the domestic and global economic environment and the prospects for recovery. Embracing the fact that market and economic cyclicality and its ebb and flow is natural and healthy, it becomes not a question of

In September, Hurricane Ike sped toward an historic rendezvous with the Texas coast. Early estimates put the property damage at $16 billion, dwarfing the state-led insurance pool developed to offer hurricane insurance. More than 3 million homes and businesses in Ike's path lost power.

It might be a dormant bank or investment account, an individual stock, or an insurance check. It could be unused travelers' checks or even a balance on a gift card. Today some states with burgeoning deficits, hunting for sources of easy revenue in hard times, are becoming more aggressive in scooping up certain property when there's been a dearth of activity in connection with it. What is scooped up can turn out to be no small line item in a budget: For example, seized property accounted for the third-largest source of revenue in Delaware in its last fiscal year.

This year your tax planning involves predicting the future. There's a good chance, according to many, that we will see an increase in taxes next year. Depending upon what the changes are, you could find yourself in a higher bracket. If that happens, strategies such as deferring income and accelerating deductions would be just the opposite of what you should be doing - making it all the more important to discuss with your tax advisor any moves that you might be considering.

Retirees seeking a reliable source of income at an acceptable level of risk often will boost the bond portion of their portfolios.

Mortgage fraud schemes have existed for years. But, as the FBI warns in its annual mortgage report issued earlier this year, a depressed housing market provides an ideal climate for mortgage fraud perpetrators to employ a variety of schemes to take advantage of the downward trend. As lending practices tighten in response to the subprime lending crisis, financial institutions are employing higher standards and fewer loans are being originated-forcing scammers to turn to alternative methods.

Jerry Orbach was best known as Detective Lenny Briscoe on TV's Law and Order, a role that he played for 12 years. A multifaceted actor, Orbach's extensive career dated back to 1955 and included several TV series and films. Less familiar to many than his TV and film career, however, was his remarkable -and award-winning-stage career, which included 13 Broadway and off-Broadway shows, many of which featured his talents as a musical comedy performer.

Living trusts are flexible, versatile, asset-management tools that can offer long-range value in a variety of financial and family circumstances. But they aren't for everyone. We would be pleased to answer any questions about what, specifically, a living trust might accomplish for you and your family. For starters, you should find this introduction helpful.

In a desire to be fair to everyone, some parents assume that the solution is an equal division of what they own among their offspring. Too many times chaos ensues. Here are the stories of two families with whom we are familiar. They are based upon real situations, but the names are fictitious and some facts slightly altered.

Will you be rolling over your 401(k) or other retirement money to an IRA? Or transferring your money from one IRA to another? If so, be aware that the IRS has been taking a very hard line on technicalities.

St. Petersburg, FL - Villages Bancorporation, Inc. and Sabal Trust Company have entered into a Preliminary Agreement to merge their jointly owned subsidiary, Citizens First Trust Company, into Sabal Trust Company.

Upon reaching the midpoint of the year, it is an excellent opportunity to reflect upon the external environment, to revisit underlying portfolio strategies and to frame the issues that are likely to impact the markets during the coming months. Even during this period of uncertainty and increased volatility, we believe the stage is set for a more positive market environment going forward. Our optimism is based on the well-documented shift in monetary policy, including the Federal Reserve’s dramatic lowering of interest rates, and the injection of liquidity into the financial system.

Perhaps one of the most common of stereotypes is that women tend to leave family finances to men, while they manage the serious tasks of raising children and keeping the household functioning.

The record price of oil was topic number one through much of the second quarter of the year. Gasoline at $4 per gallon and more hit American automakers hard, as sales of SUVs plummeted. The crucial questions: How long until higher energy prices ripple through the rest of the economy, and how big will the impact be?

Managed effectively, your 401(k) plan account is likely to provide a powerful boost to your retirement savings. But a widely discussed new survey has raised some significant doubts about how well participants are managing their investments and the extent to which they are taking full advantage of their plans.

Consistent with the practice in other states, Kentucky exempts from state income tax the interest earned on bonds issued by Kentucky or its political subdivisions, but it taxes in full the interest income from out-of-state bonds. In April 2003 Mr. and Mrs. Davis challenged the constitutionality of that tax treatment, pointing to the Commerce Clause of the U.S. Constitution and the Equal Protection Clause of the Fourteenth Amendment. They persuaded the highest state court in Kentucky that they were correct.

Many professionals have witnessed unintended results when people remarry without making adjustments to their estate plan.

When you retire or change employers, arranging for a rollover directly from your company retirement plan to an IRA allows you to continue to defer tax on your money until you reach age 70½. Then you'll have to begin making annual taxable withdrawals.

Many investors control their tax exposure by adding tax-exempt municipal bonds to the fixed-income portion of their portfolios-especially investors in the highest tax brackets. Is it an option that you should consider today?

Has recent market volatility got you worried about your current investment strategies? Before changing directions on your own, it's a good time to look at getting professional assistance with your investments. Professionals are experienced in analyzing the significance of economic and market events and their portfolio management implications.

If you own a traditional IRA, it may be one of your more important estate assets. Your IRA will pass to whomever you have named as its beneficiary. When it's a substantial sum, there is the opportunity for continued tax deferral, as well as a source of income for many years and, perhaps, for more than one generation, through a technique known as IRA

We don't know for certain, as of this writing, whether a recession is under way. Certainty comes with hindsight, which is what makes policymaking so difficult. A recession conventionally is defined as two consecutive quarters of negative growth. Although growth has slowed sharply, the U.S. economy hasn't gone negative for even one quarter-the 0.6% growth reported by the Commerce Department for the fourth quarter of 2007, though anemic, was positive. However, there has been enough worrisome economic news-notably in housing and employment statistics-that policymakers already have implemented a range of pro-growth initiatives.

During 2008, 2009 and 2010, there will be an opportunity for certain qualified taxpayers to sell appreciated assets without paying any capital gains tax. This rare zero percent tax bracket for capital gains will last only during the current three-year window of opportunity, and many people have some basic questions about how best to take advantage of this new tax break.

A recent report from the National Coalition on Health Care probably did not come as a surprise to business owners who offer health care benefits to their employees. In 2007 employer health insurance premiums increased by 6.1%, twice the rate of inflation. And since 2000 the increase in the cost of premiums has been explosive-100%, compared to a cumulative inflation of 24%-making health insurance the fastest-growing expense for business owners.

The test of investor resolve continues. Heightened volatility, ever-increasing energy prices, the deflating of a real estate bubble, a credit crisis, and an upcoming Presidential election are fueling market uncertainty. Monetary and fiscal policy stimulus activities are currently working their way through the system in an attempt to stabilize the environment. In the face of the seemingly endless negative news, it is critical that investors step back and thoroughly analyze the situation and place the current market correction into context.

When it comes to taxes, your idea of where your home is may not match the opinion of the taxing authorities. The problem arises usually when you maintain residences in more than one state. Your choice of domicile likely would be the state with the most favorable tax climate.

The recently enacted Economic Stimulus Act of 2008 will put money in the pockets of over 130 million households. The following information should answer some of the questions that you may have about your rebate.

Most people are collectors of some kind. Some own art that has been passed down through generations, and their collections may be worth millions of dollars. Others start collections based upon their special interests-as common as coins and stamps or as unusual as musical wind-up toys and fishing lures.

When an investor purchases stock, he or she stands to gain in two ways. First, the investor may sells the shares after they have appreciated in value. Second, earnings may be distributed to shareowners in the form of dividends.

Incapacity can befall anyone at any time. For the healthy, it may be the result of a sudden illness or injury. For older people, the onset of incapacity may be slower, the progression of an illness such as Alzheimer's disease or just part of the normal aging process. The best way to protect your family and assets in the event that disability strikes is to take the necessary steps when there is no doubt that you are fully capable of acting on your own behalf.

If you are thinking about opening a Roth IRA (or already have one), its not surprising if there are some gaps in your knowledge about them. Roth IRAs come with a host of requirements and limitations. The following are some of the questions that people often ask us, along with our answers:

In 2007, investors witnessed a series of market shaping catalysts materialize in the form of slowing underlying economic growth and headline risks. Terms such as sub-prime bailout and

The third quarter of 2007 was an excellent one for the U.S. economy. The Commerce Department reported gross domestic product (GDP) annualized growth at 4.9%, the best quarter since the sizzling 7.5% in 2003's third quarter. Year-to-year quarterly corporate profits rose a respectable 2.7%, to $1.153 trillion. Unemployment continued at the historically low rate of 4.7% into December. Christmas season sales were up 3.6% according to MasterCard Advisors, with a 22.4% spurt for online spending.

As the generation of baby-boomers nears their golden years, they will need to address a new set of financial issues. Sure to be among them is the question of how to pay for long-term health care costs and whether to purchase a long-term care insurance (LTCI) policy.

A number of cost-of-living adjustments are built into the Tax Code. Other important amounts and thresholds change as a result of schedules introduced in tax legislation. Here is a brief summary of some of the key number changes that may have an impact on your income tax, retirement and estate planning in 2008.

Although a will serves as the foundation of your estate plan, very often a trust arrangement, either established during your lifetime or in your will, serves as a versatile financial management tool to meet a wide variety of your planning objectives.

Even if retirement is still in the distance, you're likely to have some ideas as to how you'll enjoy your leisure years. Some people look forward to spending time with distant family. Others choose to travel to destinations that they have long wished to reach. For others it may be as simple as pursuing a long-put-off hobby or pastime.

In Part One of this discussion, we took a look at some of the basic tax-saving steps to consider prior to the end of the year - chiefly, deferring income and accelerating and "bunching" your itemized deductions. Now let's take a look at some of the other opportunities that may help reduce your 2007 tax bill.

The long-term financial security of your family demands that you establish and maintain a soundly crafted estate plan. An estate plan provides an orderly way to distribute your accumulated wealth to your heirs in the manner and amounts that you wish.

Many of the figures that you need to know for your retirement and Social Security planning rise by schedules that have been introduced in previous years' tax legislation or through provisions for annual cost-of-living adjustments (COLAs).

During the 3rd Quarter, market volatility and subsequent price swings reminded investors of the risks that are inherent throughout the financial markets. Webster's Dictionary defines risk as

The third quarter of 2007 began on an upbeat note, as the Dow Jones Industrial Average and S&P 500-stock index marked new highs in early July. By late July the Commerce Department reported that gross domestic product rose at a buoyant 3.4% annual rate in the April-June quarter. Continued strong employment numbers seemed to be powering an economy-wide surge.

Although your federal income tax return won't come due until April 15, 2008, most of the opportunities for limiting your 2007 taxes vanish at the end of the year. Here's a look at some of the steps to consider taking before December 31 to keep your tax bill as low as possible.

Today's technology has made it easier to make purchases and transact business. But this "blessing" can sometimes turn into a curse - just ask anyone who has been the victim of identity theft or a clever e-mail scam.

What leads investors to act as they do? Although we would like to believe that all of our decisions are based upon sound judgment, it's easy enough to conclude that emotions may play a role in the decision-making process. In fact, an entire academic field, behavioral finance, has emerged in recent years in an attempt to explain how emotions and cognitive errors influence investors and the decisions that they make.

Life insurance provides protection when children are young and major expenses lie ahead. In one's later years, however, the need for life insurance may diminish. For some, continuing to pay regular premiums may seem an unnecessary expense. But one's choices are limited. One can, of course, let the policy lapse or turn it in for a low surrender value.

Retirement planning intersects with other aspects of your financial planning. The most obvious examples are estate planning and planning for incapacity or illness. When taking a more comprehensive approach to your retirement planning, a brief survey of what elder law is all about may be beneficial. (A general understanding of elder law may be helpful, too, for those who now care for a spouse or relative with long-term needs.)

Often, one of the objectives of a trust-based financial plan is to separate the benefits of property ownership into current and future portions. In a marital deduction trust, to take a routine example, a surviving spouse must have the right to all the trust income, paid at least annually, and in the future, after that spouse's death, the remainder beneficiaries (typically, the children or grandchildren) will receive what is left in the trust.

Charitable giving in the United States hit a new record in 2006-an estimated $295.02 billion, according to Giving USA 2007, published by Giving USA Foundation(TM) and researched and written by the Center on Philanthropy at Indiana University.

The fear of outliving ones retirement resources is a reasonable one. After all, advances in medical treatment and healthier lifestyles have resulted in increased life expectancies. For financial security and peace of mind, you will need to know that you will have a steady stream of retirement income to keep you comfortable for 20 or 30 years - perhaps even longer. At the same time, a longer life span suggests that you need to have funds in reserve to meet any extraordinary expenses that may arise during your lifetime.

As investors reach the mid-point of the year, we believe it is important to revisit investment strategies against the backdrop of the economy's key drivers. The fact that the U.S. economy is in transition has been well documented. The strong growth rates over the last several years are moderating to more sustainable levels, which is quite positive in our view. In fact, the moderation of overall growth rates is a natural part of the business cycle. Corporate profitability is stable at high levels, the financial health of corporate America is solid, and consumer spending remains strong. But we believe the environment is changing.

The big question on many investors' minds is whether the Federal Reserve Board has achieved a "soft landing," a slowing of the economy short of a recession that nevertheless lays the foundation for future growth. The evidence is mixed.

The classic situation is that of the lottery winner. Suddenly besieged by an army of new friends, well-wishers and advisors, tempted by a world of seductive possibilities, all too often their stories end unhappily. Although lottery winners are exceedingly rare, the challenge of handling a large influx of money is actually quite common. Whether expected or not, an inheritance, divorce settlement, severance package or pension payout, proceeds from the sale of a business, life insurance, royalties, mineral rights or legal judgments - all can put in one's hands the equivalent of several years of ordinary earnings.

In late May, as part of legislation that increased the minimum wage and provided funding for the Iraq war, came a modification of the "kiddie tax" rules that may have flown under the radar for many people.

For centuries, living trusts have been a popular management tool for the preservation and growth of one's assets. Living trusts offer a remarkable degree of flexibility, helping people achieve their needs for today as well as for tomorrow. And for planning for the future, for coping with the unexpected. For maintaining financial security for loved ones and for organizing one's assets in an efficient manner. Not to mention the peace of mind that comes with having a solid plan in place for the management of one's wealth.

Real property–land and the home or other structures on it - often has special significance to the family that owns it, to the surrounding community or to the ecology of the area. It may: have played a role in a historical event; provide habitat for wildlife; command a magnificent view; or offer access to recreational or educational venues. It is only natural that owners might want to preserve the unique character of their property.

According to the most recent figures available from the U.S. Department of Labor's (DOL) Employee Benefits Security Administration, of the 59 million wage-earning and salaried women working in the U.S., only 47% participate in a company retirement plan.

Higher education costs continue their relentless upward spiral. For the 2006-2007 academic year, the average cost at a four-year private college topped out at over $30,000. Many families are turning to an array of tax-advantaged savings accounts to help them meet the high cost of higher education. Contributions to such plans are not deductible, but taxes on growth and earnings in them are deferred and may be avoided altogether when the funds are used for qualified education expenses.

Five months into the new year, and the issue of federal estate tax repeal/revision still is unresolved. As it stands now, the transfer tax rate (for estate, gift and generation-skipping transfer tax purposes) is 45% for this year and through 2009. The current $2 million tax exemption rises to $3.5 million in 2009. For 2010, the tax is abolished altogether. But things revert back to 2001 levels in 2011-with tax rates jumping to as high as 55% and the exemption falling to $1 million.

Each year the Trustees of the Social Security and Medicare trust funds report on the current and projected financial status of the two programs. The news isn't good.

The 27th of February was a difficult, down day on Wall Street. A record 4.31 billion changed hands on the New York Stock Exchange, and the Nasdaq set a record billion shares. Each component of the Dow Jones Industrial Average (DJIA) was at 3:19 PM the losers outnumbered the gainers by 50 to 1. The 416-point drop seventh worst in history for the DJIA, bringing the index back to 2006 levels. In terms, however, the 3.29% loss can't compare to the historic 22.61% crash of 1987. Still, it was the worst one-day percentage drop since March 24, 2003.

Providing for a surviving spouse, often the single most important objective in a family's estate planning, never has been as simple as creating a will that leaves "all my property to my beloved." Today's complex and changing tax laws only make the job more challenging. The answers to the following questions will shape the strategy for providing for your spouse.

St. Petersburg, FL - Sabal Trust Company is proud to congratulate Susan Mittermayr on her nomination for 2007 Business Woman of the Year sponsored by the St. Petersburg Area Chamber of Commerce. Winners area being announced at the 2007 Women's Symposium held at the Renaissance Vinoy on March 21, 2007.

The first quarter of the year can be described as a tale of two markets. The strong momentum seen during the last half of 2006 continued at the outset of the year as the Dow Jones Industrial average hit new all-time highs. The fact that overall economic growth was slowing did not appear to concern investors. However, mid-way through the first quarter, investors began to re-assess their tolerance and appetite for risk. A sharp pullback in the global and domestic equity markets ensued. We believe the correction that took place was a healthy part of the process that drives the overall markets.

Mention the word "risk" in the context of a discussion about investing and what springs to most people's minds? A huge loss when the stock market takes a dive? Or when the price of bonds tumbles? Most likely. Such possibilities lead some people to cling to the "safety" of cash equivalents that bring no risk to their principal. These investors fail to recognize that risks are inherent in this kind of savings, too.

Art museums rely upon donations from wealthy patrons and art lovers to extend and enhance their collections. Often, donors make their gifts by will. But lifetime gifts are fairly common as well. But, according to some museum administrators and collectors, a new rule included in tax legislation enacted last year, paints a cloudy future for certain lifetime gifts, referred to as gifts of "partial," or "fractional," interests in art.

Most people are aware that the key difference between traditional IRAs and Roth IRAs is the timing of the tax benefit. Traditional IRAs will, for many taxpayers, yield an up-front tax deduction, with distributions taxed as ordinary income. Contributions to a Roth IRA are made with after-tax dollars rather than pre-tax dollars, but retirement distributions that occur five years or more after the account is created are completely tax free.

The transition to new leadership at the Federal Reserve Board, in the person of Fed Chairman Ben Bernanke, appears successful. The Fed extended the pause in its series of interest rate upticks by holding rates steady in December. Although the statement accompanying the decision indicated lingering concern over inflation, the drop in oil and gasoline prices in the autumn helped keep overall price indices in check.

As you plan for your offspring, what is the best approach for protecting the legacies that you will pass on to them? Outright inheritances may be inappropriate for those with poor financial judgment; or who might face a divorce at some time in the future; or who may have a history of addiction or inappropriate behavior. Then, too, professionals such as doctors and attorneys, who face the threat of financially crushing malpractice suits, may be looking for ways to protect themselves.

Making home improvements? Making a major purchase? Facing a big college tuition bill? For homeowners a home equity line of credit may be the most economical and flexible way to borrow money.

Over the last two quarters, we correctly assumed that overall economic growth would slow to a more normalized, sustainable rate. The slowing of economic growth is related to higher energy costs, higher interest rates, and the pressures caused by the slowdown in the housing markets. However, the economic environment does remain healthy. Corporate profits are strong, productivity is holding, unemployment is low, and the consumer remains resilient. Over the coming year, it is inevitable that key variables, both known and unknown, will shape the market environment. Consequently, it is important to establish a framework for the investment environment.

How well are your investments living up to your expectations? Are your expectations reasonable? One of the best ways to answer those questions is to compare the performance of your investments to a benchmark, or index.

The Tax Relief and Health Care Act of 2006, enacted by Congress on December 11, 2006, and signed into law on December 20, ended the year on a positive note for taxpayers. Several taxpayer-friendly provisions of earlier law, scheduled for extinction at the end of tax year 2006 have been extended.

Didn't make a contribution to your IRA or Roth IRA for 2006? It's not too late.

Investing is serious business, requiring time and study, patience and vigilance. That’s why we offer investment management services to our clients. These services are especially valuable for many people, including those who: recently have sold businesses or properties; work in demanding careers and have little time to follow investment markets and trends; have retired or are about to retire; find themselves with large sums to invest from legal settlements, inheritances or insurance payouts.

A number of cost-of-living adjustments are built into the Tax Code. Other important amounts and thresholds change as a result of schedules introduced in tax legislation. Here is a brief summary of some of the key number changes that may have an impact on your income tax, retirement and estate planning in 2007.

The Pension Protection Act, enacted in August, included new rules that could have an impact on your charitable giving. Included among them was a provision permitting tax-free distributions (rollovers) from your IRA to charitable organizations. Because the opportunity has a limited life span, you'll want to start planning immediately. The following Q & A should be helpful.

Suppose that you buy a newly issued, ten-year, 5% bond for $1,000. You know that you will receive a $25 interest payment every six months for nine-and-a-half years and a final payment of $1,025 at the end of ten years when the bond matures. In all, you receive 20 interest payments totaling $500.

In Part One of this discussion, we took a look at some of the basic tax-saving steps to consider prior to the end of the year - chiefly, deferring income and accelerating and "bunching" your itemized deductions. Now let's take a look at some of the other opportunities that may help reduce your 2006 tax bill.

Many of the figures that you need to know for your retirement and Social Security planning rise by schedules that have been introduced in previous years' tax legislation or through annual cost-of-living adjustments.

The underlying dynamics of the positive economic environment give us reason to be optimistic. In January, we suggested that investors would begin to rationalize a series of critical market drivers, including higher energy prices, interest rates, the geopolitical environment, and domestic politics. We estimated that these variables would impact the direction of the overall markets by distracting investors from making measured, longterm investment decisions. The ebb and flow of the market environment suggests that we were correct in our assessment.

Although your federal income tax return won't come due until April 16, 2007 (because April 15 falls on a Sunday), most of the opportunities for limiting your 2006 taxes vanish at the end of the year. Here's a look at some of the steps to consider taking before December 31 to keep your tax bill as low as possible.

The following is a fictitious account, with fictitious names, but one that, nevertheless, could be true. Stephen Smith married three times. He had a daughter, Sara, with his first wife, two sons and a daughter with the second. His third wife wasn't much older than his first child. At his death Stephen's beneficiaries included his surviving spouse, the two ex-wives and the four children.

As you near the end of the final lap of your working years, and begin scanning the retirement horizon, you are likely to be seeking the information that you need to ensure a safe passage. Here, we touch on three of the most important questions that you should be asking yourself as you transition to retirement.

Almost everyone believes that he or she needs life insurance to provide cash for his or her family, business partners and charitable endeavors that he or she values. But what people don't always consider is the utility of life insurance as an investment vehicle during one's lifetime.

When Congress adjourned in early August, little was clear regarding the future of the federal estate tax. Both chambers went into recess until after Labor Day. In recent months the focus had shifted from outright repeal - majority support was lacking - to some form of compromise legislation.

In August Congress passed the most comprehensive pension legislation in more than 30 years (a more than 900-page opus). The provisions in the law are wide-ranging, focusing to a large degree on how companies must handle their pension plans in the future.

Inflation-indexed Treasury securities (commonly referred to as TIPS) first were introduced in 1997. They were created to protect the purchasing power of “savers” and bond investors, while earning a guaranteed rate of return on their principal.

As a corporate fiduciary, we are dedicated to providing our clients with trustworthy asset management. Of course, we also provide traditional trust services, such as administering estates and managing trust funds for young or inexperienced beneficiaries. Our primary function, however, is helping people turn financial success into financial security.

Taxes play an important role in your retirement planning. For instance, if you are a 401(k) or other retirement plan participant and will receive a lump sum distribution, taxes may affect your choice of what to do with the payout.

Investing in stocks can be exciting, with the possibility of big rewards (as well as the accompanying risks). Bonds generally appeal to those who are less adventurous. But, John Finneran, CFA, in a June 20 article (

With the first half of the year behind us, it is a good time to pause and review the investment environment. The U.S. economy remains positive; however, over the last several weeks signs of a moderation of the overall growth rate have surfaced, which resulted in a sharp pullback in market pricing. This correction is a natural part of the investment cycle. Corporate profitability continues to be robust and the financial health of corporate America is solid. Business spending on infrastructure projects continues and the consumer remains an important factor in supporting a lower but more sustainable level of economic growth.

Near-record philanthropy. Giving USA, an annual report on philanthropy, estimates that Americans donated $260.3 billion to charity for 2005, representing an increase of 6.1% over 2004 (2.7% after inflation). Approximately one-half of the $15 billion increase in total giving came in response to three natural disasters: the tsunami that struck the Indian Ocean area, the Gulf Coast hurricanes in the U.S. and the earthquake in Pakistan.

What does early retirement mean to you? A chance to escape the pressure and routine sooner rather than later? To get started on the activities that you've delayed for too long? It even may not truly be retirement in the usual sense, but the chance to start work on your own schedule, one that doesn't make too many demands on your time or energy.

Have you received "spam," or junk e-mail, recommending that you invest in a stock, perhaps even invest in that stock before it is first publicly offered for sale in an Initial Public Offering (IPO)? A recent

In May, after months of negotiation, a new tax bill became law-the Tax Increase Prevention and Reconciliation Act of 2005. A few of its key provisions are worth reporting.

Company retirement plans, charitable organizations and other entities must define clearly, in writing, exactly how the contributions that they make are invested and managed. One of the ways that this goal is accomplished is by drawing up a document, often referred to as an Investment Policy Statement (IPS). For individual investors, too, an IPS can be a useful and valuable document.

Despite the proven risk-reducing benefits of diversification, many portfolios are underdiversified. A concentrated stock position is natural for the founder of a company, or for executives who are expected to own stock to keep their interests aligned with shareholders'. Inheritance and exercise of stock options also can lead to concentration in too few stocks.

The St. Petersburg Area Chamber of Commerce honored several local companies Wednesday night with Outstanding Business of the Year awards in various categories at the downtown St. Petersburg Hilton.

Very often a retiring founder's chief concern is how to orchestrate the conveyance of a successful business while, at the same time, keeping peace in the family. Although each business and family is unique, there are a few typical situations that can affect a smooth transition of family enterprises.

The annual Retirement Confidence Survey, cosponsored by the Employee Benefit Research Institute (EBRI), a private, nonprofit, nonpartisan public policy research organization, and Mathew Greenwald

As we move into the second quarter, the economy remains strong and the recent stream of data indicates sustained growth through the next several quarters. Healthy employment numbers, consumer confidence, the expansion of manufacturing activity and increasing capital expenditures all point to a positive economic backdrop for the market environment. Corporate balance sheets are strong, cash flows are robust, profits remain intact, and infrastructure investment is increasing. We view these developments as positive, which leads us to believe that the Federal Reserve will continue their battle against inflationary pressures.

People who are averse to risk often consider cash investments such as money market funds and CDs to be worry free,

For some months now, Congress has been debating the extension of certain tax breaks, such as the lower long-term capital gains and dividend rates. As of this writing, no resolution has been reached. Alternative minimum tax (AMT) exemptions are part of the extensions package. Inflation adjustments from prior years expired at the end of 2005, meaning that more people are apt to fall within the clutches of the AMT.

Investing and managing your various assets wisely are but means to a very important goal: financial security for yourself and your family.

Sabal Trust Company has been named as a finalist for the 2006 Business of the Year award in the 1 - 25 employees category sponsored by the St. Petersburg Chamber of Commerce. This award recognizes outstanding entrepreneurship in St. Petersburg based on the company's financial information, contribution to community, response to adversity and innovation of services offered.

St. Petersburg - Sabal Trust Company is proud to congratulate Elizabeth Knowles on her nomination for 2006 Business Woman of the Year sponsored by the St. Petersburg Area Chamber of Commerce. Winners were announced at the 2006 Women's Symposium held at the Renaissance Vinoy on March 2nd, 2006.

Many signs point to the underlying strength of the overall economy. The adage of "focusing on long-term" investing can test the patience of any investor, especially during periods of market volatility. The last twelve months proved no different as investors experienced periods of both positive and negative market momentum. Investor optimism appears to have strengthened as energy prices have moderated from historic highs and the broader economy continues to show signs of resiliency. Overall GDP growth remains strong, manufacturing activity is expanding and unemployment is at its lowest level over the last 4.5 years.

Your asset allocation decision establishes the percentages of your portfolio dedicated to various asset classes-stocks, bonds, cash and, perhaps, other less traditional investment vehicles. That decision establishes the risk/reward benchmark for your portfolio.

In a February 10 speech before the Conservative Political Action Conference in Washington, D.C., Senate Majority Leader William H. Frist (R-Tenn.) stated that he plans to bring legislation to the floor in May to repeal the federal estate tax. Last year the House of Representatives passed legislation to repeal the estate tax in full, but the Senate never acted on the bill.

According to Consumers Union, approximately 70% of adult Americans don't have even a simple will. The standard explanation that many people give for not planning is procrastination. It's easy to understand-coming face to face with one's mortality isn't a pleasant subject. Sometimes, too, people feel that a simple will drafted at the outset of their marriage, or when they bought their first home, still serves them in good stead today.

A number of cost-of-living adjustments are built into the Tax Code. Other important amounts and thresholds change as a result of schedules introduced in tax legislation.

St. Petersburg - Sabal Trust Company continues to support local Tampa Bay charities through sponsorships of major fundraising events and donations in lieu of holiday gifts. Over the past several years, Sabal has shown a dedication to helping others in our community including St. Anthony's Hospital Auxillary, CASA, Museum of Fine Arts and American Stage. In 2006, this tradition continues.

Individual securities or mutual funds? This question confronts people from the moment that they become investors. Will a portfolio of stocks and bonds or a few well-chosen mutual funds better serve your purposes, means and temperament? The answer, as so often in life: It depends.

To create an estate plan that serves your unique needs and that will execute your wishes as to the distribution of your assets is an important and, often, a complex task. It's likely that you will need the assistance of skilled advisors from a variety of disciplines. Advisors who can employ the latest and most appropriate strategies and techniques available under current law to fulfill those needs.

A number of cost-of-living adjustments are built into the Tax Code. Other important amounts and thresholds change as a result of schedules introduced in tax legislation.

Over the years our clients have recognized the many advantages of establishing a living trust with us. We would like to share some of the benefits of our living trust services with you and then meet with you to discuss how a living trust can be structured to meet your needs.

Establishing a retirement plan for a child might, initially, sound a bit strange - or at least premature. Truly, it is not. Establishing an IRA for your children or grandchildren can help them achieve financial independence in retirement and, possibly, for the rest of their lives. That claim may raise some questions in your mind.

You wouldn't start a long road trip without a map or consulting a Web site such as mapquest.com. The same holds true as you develop a strategy for managing your investments. This particular map is the strategy that will allow you to reach the financial destinations that you have chosen.

In the global village that today's world has become, uncertainties and concerns extend beyond just the stock market and the economy. The continuing conflict in Iraq, the war on terrorism and many other developments on the international front are likely to have an impact on business and professional people, active and retired, and upon their families. Now more than ever, it's evident that more than money is required to create lasting financial security. Trustworthy asset management is needed as well.

The solid economic expansion that remains in place has faced a number of challenges since its inception. In the face of this adversity, the broader markets have remained resilient. Since the outset of the year, higher commodity prices, energy costs, and a rising interest rate environment established the headwinds currently faced by the markets. Most recently the natural disaster in the Gulf States region from hurricanes Katrina and Rita caused the loss of life, the destruction of homes and businesses, and the disruption of one of the nation's key port infrastructures. The true impact of this disaster remains to be seen. However, the initial data points indicate that broader economic growth will continue, and there are reasons to be optimistic.

In August 2005 the U.S. Treasury Department announced that it is reviving the 30-year Treasury bond. The bond, discontinued in 2001, will be auctioned in the first quarter of 2006 and carry a maturity date of February 15, 2036.

As an investor, you're likely to have learned any number of valuable lessons over the years. Some came from observation, some from experience. Why not share some of your life lessons with your children, helping them become knowledgeable investors at an early age?

The lure of an affordable cost of living and temperate climates is leading a growing number of Americans to retire abroad. Many others are looking at the financial aspects of the idea. In some cases it may be a return to one's native country or that of one's forebears. Perhaps it's to a place where one once worked or studied.

Market observers long have detected that investment decisions have an emotional component. Behavioral finance scholars have produced a series of studies that point out mistakes that investors tend to make in managing their portfolios. Because it is basic human psychology that is behind their actions, even experienced investors are likely to make these mistakes.

Tax considerations are not, and should never be, the be-all and end-all of investment decisions. The choice of assets in which to invest, and the way in which you apportion your portfolio among them, almost certainly will prove to be far more important to your ultimate results than the tax rate that you pay on your portfolio's earnings.

After reaching the midpoint of the year, it is helpful to reflect upon the market and economic environment that has unfolded since the beginning of the year. Creating a reference point for investment decision-making going forward is very important as we deal with the inevitable uncertainty presented by today's stock and bond markets. The broad stock market averages have been under pressure since the first of the year, primarily due to unfavorable commodity prices, high energy costs, and the move by the Federal Reserve to a more "normalized" interest rate environment. With that in mind, it is important to establish a framework from which to develop investment strategies as we move through the balance of the year.

As the debate in Congress over the repeal of the federal estate tax continues, the question is: What should you do about your planning in light of the current uncertainties?

Jones (name fictitious, but the facts are true) had opened a Rollover IRA when he decided to retire in his early 50s, after a long and successful career with his company. He rolled over his lump sum distribution from the company retirement plan into an IRA.

How often have you heard or read that stocks held for "the long-term" are likely to outperform other investments? It's a generality, true, but there are statistics to back up that statement. But those numbers need to be put in perspective. Very few, if any, of today's investors were likely to have bought stocks way back in 1926 and have held them for 80 years. Which leads to the question, then, just how long is "long enough" for an investor who is concerned about risk to feel safe about investing in stocks?

Your will is a thorough, logical way to plan and control how the assets that you own will be managed and distributed at your death. It will permit an orderly transition of your property to whom and in what manner that you choose.

There are enough books and other forms of guidance about retirement that one would expect to find all the advice necessary to secure a comfortable retirement. But not all of the advice and strategies necessarily will meet your needs. What's more, there may be "facts" about retirement and retirement planning that have been conventional wisdom for many years but could be worth challenging. Here are four of them:

Thanks to a new consumer protection law, you are now able to obtain free copies of your credit reports annually.

The tragic situation of Terri Schiavo and her family has brought a heightened sensitivity to the need for all of us to make our wishes concerning health care known in advance of any illness or injury that might make us unable to communicate clearly. We offer this discussion as an aid in understanding some of the medical and financial

As important as a will is to the transfer of your assets, it does not necessarily control how all of your assets will be distributed to your beneficiaries. You are likely to have designated beneficiaries for specific assets during your lifetime. And just as you review your will, review of your beneficiary choices for these assets is extremely important.

The rules regarding the taxation of distributions from your 401(k) plan or IRA are complicated, if not mind numbing. There's much too much even to explain in one sitting, let alone absorb. However, some questions pop up with frequency. Here are three of them and answers that may provide you with some guidance.

Successful investing does not begin with the question: "Where should I invest my money today?" An orderly, almost scientific, approach is necessary for successful management of your investment assets. We approach investing as a multistep process. Here we focus on the first step: assessing your financial needs and goals, tolerance for risk, investment time horizon and other constraints that you may have.

One of your children is starting a new business. Or looking to purchase a first home but coming up short for the down payment. Or needs assistance with a child's college education. In some cases you may be reluctant. But very often your instinct will be to say,

The National Association of Security Dealers (NASD) continues to warn investors and consumers about "phishing," a scam that uses spam e-mail to lure investors into revealing bank or brokerage account information, passwords or PINs, or other types of confidential information.

Whether expected or not, an inheritance, divorce settlement, severance package or pension payout, proceeds from the sale of a business, life insurance, legal judgments, or even lottery winnings-all can put in your hands the equivalent of several years of earnings. Now you're at a crossroads-suddenly called upon to switch from wealth-building mode to wealth management. You will, of course, face circumstances special to your situation. Yet, there are some general guidelines that apply to almost all such transitions.

Whatever your hopes and dreams for retirement, the reality is that the income that replaces your wages will prove to be the key to attaining the quality of life in retirement that you envision. Social Security is a start. A pension from the company retirement plan may augment that income. But managing the income from your investments will require a more active role. Below are three key decisions, among many, that you'll need to make.

Sabal Company would like you to know that we have been selected to open a new investment management and trust services company in The Villages, Florida, in partnership with Villages Bancorporation, Inc.

With the fragile economy, this might seem like an unlikely time to explore the issues that attend "sudden wealth." But even in difficult economic times, people can come into money suddenly. The most routine sources of sudden wealth are inheritances and lump sum distributions from employer retirement plans.

In October, a key IRS interest rate (the Section 7520 rate) fell from 2.0% in September to 1.4%, the lowest rate ever. (The high point for the Section 7520 rate was 11.6% in May 1989.) As recently as last May, the rate was 3.0%. Very low interest rates favor some estate planning techniques, but others lose their allure.