It is not uncommon for wealth transfer planning to focus solely on the amount of money to be transferred and potential strategies for minimizing taxes. However, one of the most lasting gifts that a grantor can provide family members is an understanding of their long-term goals for the family and how this is shaped by shared history and values.This article prepares families for a probing audit of their family dynamics.
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Family business owners begin their adventures balancing two priorities: keeping the business as an integral part of an ever-expanding family and creating a profitable, sustainable organization. In the end, family is the guiding force behind the company’s success; maximizing value for the next generation is sometimes more important than maximizing economic value in the present. Creating the right legal foundation will allow owners to put family first when it matters most.
The Worldwide Family Business Tax Guide brings together detailed information on family businesses from 41 countries worldwide. The Guide is a detailed source of information for practitioners, family business owners, tax advisors, tax legislators and tax academics. In trying to distil leading practices and help promote sound tax policy for family businesses, the author has focused on income, corporate income tax, capital gains tax, wealth transfer tax and more.
The US Supreme Court, in a unanimous opinion issued June 19, 2014, implemented a new standard for courts to employ in determining if a taxpayer may challenge whether the Internal Revenue Service has issued a summons in good faith. In light of the Service’s new procedures for administering Information Document Requests, including the potential for summons enforcement, this opinion provides important guidance to taxpayers who may find themselves in the midst of a summons enforcement action.
Despite extraordinary measures by global central banks to re-inflate economies, inflation has remained tame. The reasons for subdued inflation have been deleveraging, excess capacity and high unemployment levels.The author believes that:These factors are unlikely to provide the same anti-inflationary pressures going forward and the Federal Reserve will continue to normalize monetary policy as an offset.Investors should be on inflation watch, scrutinizing investment portfolios and reducing exposure to poorly compensated risks.
The process of developing long-term strategies to manage family wealth requires careful thought and well-coordinated tactics focused on achieving far-reaching wealth planning objectives.All too often, plans are established that are focused primarily on minimizing the tax burden. Individuals and families need to be careful that the tax “tail” isn’t wagging the wealth planning “dog.” Decisions that appear to generate favorable results from a tax perspective may not always be aligned with your broader legacy goals.
The July, 2014 Global Economic Update from Asset Consulting Group includes the following:Year-to-date asset class returns for global equities, global fixed income and global real assetsA US and non-US economic overview and forecastReview of current issues and questions that clients are askingReview of current investment opportunities and investment themes
Significant noise has surrounded the dissolution of California Redevelopment Agencies for the past three years. Numerous headlines trumpeted debt service disruptions, lawsuits, cleanup legislation and potential hiccups related to the flow of funds for California Redevelopment debt.Over time, it has become clearer that the potential for credit improvement has trumped the short-term risks of implementing the legislation. Thus far, it would appear that bond holders have benefitted. The local governments have not fared as well.
The confluence of favorable market dynamics, including high corporate cash balances, low interest rates and cooperative capital markets, has created an environment in which corporate management teams and boards of directors can take action to increase value for equity owners.Engagement by shareholders, both private and public, is on the rise and has been met with increasing receptivity. In several recent situations, companies that have engaged in shareholder-recommended activities have been rewarded by markets through higher stock prices.
When approaching estate planning and, more specifically, setting up a long-term, irrevocable trust, many high net worth families both think and act locally. They provide -- often with minimal analysis or advice – for a trust that is governed by the laws of their home state and subject to taxation there, without considering alternatives that may be far more attractive.