The low interest rate environment, depressed asset values and current transfer tax rules seem to offer superior wealth transfer planning opportunities. However, time may be of the essence as the window of opportunity created by these three conditions may be short-lived.
This organizer, developed by a FOX Thought Leaders Council™ member, assists individuals in the collection and organization of personal and financial information essential to the estate planning process.
For many entrepreneurs, the experience of selling their business may involve a loss of identity and purpose, despite the financial security that usually accompanies the sale. This paper addresses the personal challenges entrepreneurs face during the transition as well as issues created by a significant change in the nature of their wealth, from illiquid and concentrated to liquid and multi-faceted.
Learning early on how to assist family members to understand the conceptual and practical aspects of their social connections is a central concern of the family. Using a confidentiality/non-disclosure agreement provides a structure and begins a process that sets the framework for this work.
A search for identity and independence in a personal journey separate from the family, a challenging of assumptions, a wrestling with questions. These are the 20-something years – critical, testing and thrilling, for both young adults and their parents.
Just as every business needs a succession plan if it is to survive the death or incapacity of its founder, every family should plan for the successor management of the family's finances. Failure to attend to this issue can lead to serious consequences for the surviving spouse and other family members.
Many wealthy individuals are being told to prepare for more income tax audits by the Internal Revenue Service. Recent statistics seem to support that view. The IRS recently released its annual Data Book, which summarizes audit and collection activities for fiscal year 2010. Not surprisingly, the IRS is focusing its audits on returns that will likely produce the most revenue for the U.S. Treasury.
Given the evolution and complexity of the insurance industry, due diligence on carriers, products and advisors is more important than ever, especially for families of significant wealth. Examination of carriers must go beyond rating services; analysis of products must go beyond illustrations, and selection of an advisor must go beyond initial numbers, friendship or branding.
While the tax advantages of life insurance are important, pricing is also critical. Access to policies priced specifically for ultra-wealthy individuals can enhance planning effectiveness and deliver significant value over time.
Researchers tested the effectiveness of life insurance's investment characteristics in three estate scenarios under a Monte Carlo analysis involving three different investment portfolios. Their results show life insurance creates more wealth regardless of when death occurs for even the most liquid, well planned estate.