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Patrick R. McCabe

Partner
San Francisco, (415) 268-6926
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Patrick McCabe represents individual clients in the areas of estate and gift taxation, estate planning, estate administration, charitable gift planning, probate, trust, and community property law.  He has expertise in planning for closely held business owners, and he has experience in court proceedings dealing with the division, administration, modification, and termination of trusts, and with the administration of estates. 

Mr. McCabe advises non-profit and charitable clients in all aspects related to their tax-exempt status and corporate governance matters under state law.  Mr. McCabe is actively involved in tax advising and other matters for the Marin Community Foundation (the third largest community foundation in the country with assets of approximately $800 million), and the Orange County Community Foundation.  He also assists many non-profit organizations with incorporating and obtaining federal and California exemptions from taxation.  Mr. McCabe also has experience in proceedings involving charitable trusts before courts and the California Attorney General.  He also advises board members regarding their fiduciary duties with respect to the charitable funds entrusted to their care.

Mr. McCabe also advises institutional and corporate clients in matters involving stock option plans, employee benefits, non-qualified retirement plans, split-dollar life insurance, and planning for executive compensation. 

Mr. McCabe is admitted to practice in the State of California, and is a member of the sections on taxation, estate planning, probate, and trust law of the American, California, and San Francisco bar associations.

Mr. McCabe received his law degree, magna cum laude, from Cornell University in 1992, and his B.A., cum laude, in economics from the University of Utah in 1989.  He served as an editor of the Cornell Law Review and was selected as a member of the Order of the Coif, the national law school honor society.  Mr. McCabe associated with the firm in 1992, and has been a partner of the firm since 2000.

Family Investment Companies.
Currently advising clients with substantial assets in forming family investment companies and providing ongoing assistance with the administration of those entities, including counseling them on how to maximize the transfer tax benefits that such entities can provide. In one case, the clients established a family investment company, which has a current fair market value of approximately $40 million. Previously structured transfers of interests in the investment company to remove approximately 30%, or $12 million, from the clients\' estates, with no gift tax liability. (ongoing 2009)
Estate freeze.
Represent family which owns stock in closely-held company, and which has long history of estate-planning designed to pass stock to younger generations. Recently sold patriarch's remaining stock to trusts established for each grandchild, in exchange for notes. Trusts are grantor trusts, taxed as owned by the grandfather, so transaction should not result in income tax. This is a classic but completely in the details estate freeze, leaving the discounted notes in the grandfather's taxable estate with values substantially lower than that of the transferred stock.
Community Foundations.
We represent one of the nation's largest community foundations, on an ongoing basis with its general corporate, real estate and charitable planning matters. We create and obtain tax exemption for supporting organizations for the foundation. We also regularly advise the foundation on its donor-advised funds and supporting organizations under H.R. 4, the Pension Protection Act of 2006 and other charitable organization regulations. We also provide advice relating to the foundations's retirement and health and welfare benefit plans regularly. (2009)
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