InterDigital Inc (IDCC)

[Gamco]

loophole73 - Gben1938 - wireless_wazoo – snowydread - Learning2vest –

Loop, your comment caught the attention of several. You stated, "I am still shocked over these sales with the information being provided to the street and the shareholders at that time. The sales fall short of the reasonable man theory regardless of the spin one wishes to place upon them. If you throw all matters aside, "why" is still present regarding the sales."

I have been a bank Trust Officer for over 29 years. Several years ago (on Raging Bull) I posted about Estate Planning techniques that do result in the sales of investments to implement the plan. To maximize the potential effectiveness of these Estate Planning techniques, they must be put in place before any significant price appreciation occurs.

Don’t just consider the company officer that has sold. Take into consideration all of the selling corporate officer’s family members or a selected class of beneficiaries that are intended to reap the benefits of the Estate or Gift Plan at the expense of the Taxing Authorities. This IDCC forum is not the best place to discuss the benefits of a “Family Limited Partnership” (as just one example) with the gifting of partnership units to these beneficiaries. The “after tax” effect of this kind of wise financial planning easily surpasses the “reasonable man theory”. Is this why these sales took place? Well, I do not have the slightest idea, but I do know that now would be the time to execute these types of strategies rather that after the share price of IDCC is in triple digits.

Timing is everything. This applies to when to do your financial planning just as much as deciding when to buy or sell. The benefits of minimizing the tax considerations (Capital Gains Tax, Estate Tax, Gift Tax) simply by creating additional taxpayers (Trusts) and spreading the tax burden to others (children, grandchildren, etc,) are too substantial to ignore. The end results justify the sales of the investments involved.

There is a wealth of information on the internet regarding related subject matters. Some members may wish to follow up by doing research concerning the following:
Family Limited Partnerships, Life Insurance Trusts, Charitable Remainder Trusts, Charitable Lead Trusts (to name some of the more common methods).