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When real estate property values, such as housing, are increasing at such a rapid rate that price levels become unsustainable (typically as a function of replacement value, affordability, rental equivalency rates, etc.), a real estate bubble occurs. The consequences of a real estate bubble consist of an inevitable plummet in values and general economic decline. The financial crisis that started in 2007 was caused by the global bursting of real estate bubbles, particularly in residential real estate, and predominantly in the U.S. and Europe.

This paper provides an analysis of the new 3.8% Medicare surtax set to take effect in 2013 and recommends planning strategies to reduce its impact. Atlantic Trust suggests several vehicles to mitigate the effect of this tax, including tax-exempt bonds, rental real estate, S-Corporations, Roth IRA conversions, charitable remainder trusts and installment sales.

Putting together an “operating” succession plan is just one step in the business succession process. The rubber really meets the road in its execution and when the operating leadership is successfully transitioned. In a perfect world the management transition is planned and occurs over time. However, when the CEO or businesses owner unexpectedly dies or faces a terminal illness, succession is far more likely to fail. This increased likelihood of failure is often directly the result of the almost impossible position the successor CEO is put into.

Once a “fad” for tweens, teenagers and young adults, social media has morphed into a long list of websites and other applications that are frequented and used by people of all ages. Used correctly, social media can reap many benefits for families of wealth and their businesses. However, inappropriate use can wreak havoc on families' reputations and can result in other costly damages. This paper outlines the most popular types of social media as well as its good, bad and downright ugly aspects.

It has been more than three years since the enactment of Sec. 877A, which introduced a mark-to-market tax on U.S. persons expatriating on or after June 16, 2008. Its introduction has impacted the decisions of many to attain a green card or citizenship. It can be costly for wealthy individuals to become a covered expatriate (as described below) and, consequently, taking steps to avoid becoming a covered expatriate has become a fundamental part of pre-immigration planning.

Time is of the essence. Significant wealth planning opportunities are set to expire at the end of 2012. It is critical for wealthy families that have taken a wait and see approach to the future of gift and estate taxes to formulate a plan now. Developing and implementing well thought out and properly structured wealth planning strategies takes months, not weeks.

In the past year, the IRS sharply increased the number of returns it audited, particularly those of high-income earners. According to a government official, this is an effort “to build public confidence in the tax system, encouraging voluntary compliance” and to make sure that both the low end and high end of the income scale are subject to the same rules. This paper reviews recent trends on how the IRS selects individuals for audits and how to be prepared for one.

Why are some families able to pass the legacy of philanthropy from generation to generation while others are not? This white paper by Claudia B. Sangster, director of Philanthropy Services with Harris myCFO, LLC, looks at how to encourage the next generation of givers.

The decision of whether to treat someone working for you as an employee or an independent contractor is not always crystal clear. With increasing frequency, IRS is assessing tax, interest and penalties in situations where they believe workers have been incorrectly treated as independent contractors. This white paper examines the legal and tax considerations of treating a worker as an independent contractor and how to rectify past errors of categorization.

In this installment of a seven-part series on goals-based investing, Eton Advisors examines the behavioral foundations of the goals-based framework. Utilizing the “hierarchy of needs” approach first proposed by psychologist Abraham Maslow, the goals-based process begins with defining, quantifying, and prioritizing financial goals across multiple family generations.