A Dynasty Trust is often referred to as a family bank since it serves as a primary resource for the funding of the needs of a family's beneficiaries in successive generations. Given the unsteady economic times and tax uncertainty, there is no better time than now for wealthy families to establish a Dynasty Trust to achieve optimum results, including tax advantages, flexibility, and control.
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What is a family office? This question is a difficult one to answer given the vast differences that exist from one family office to the next. The most generalized definition is that a family office assumes the day-to-day administration and management of a family’s financial affairs. Today, there are an estimated 3,500 family offices in the U.S. managing more than one trillion dollars in assets. While every family is unique, there are common situations that might call for a family to consider the advantages of establishing a family office.
Business impersonation scams are a large and growing risk for high-net-worth individuals, closely held business owners, and institutions. Scams have claimed victims in all 50 states and more than 100 countries and there is every reason to believe the threat is growing. Learn seven steps that can help you protect yourself and your business from impersonation and other types of fraud.
Ransomware has become one of the top threats to data stored on company networks and personal computers and will continue to be a top security concern in the coming years. For those unfamiliar with ransomware, it’s a type of malicious software (also known as malware) that, when downloaded to a computer, encrypts files so they can no longer be accessed. Cybercriminals will hold the user’s files hostage until the owner pays a ransom.
Asset ownership, insurance, irrevocable trust, limited liability entities, and asset protection trusts are key vehicles when it comes to protecting your assets. Having an overview of what is protected under these vehicles—including the costs, administrative considerations, income tax treatment, and the estate and gift treatment—provides an easy, at-a-glance understanding of the options available in preserving family wealth.
Strategic philanthropy is similar to intentional asset allocation in that it requires as much of the giver’s intellect as it does the bank account. A careful and disciplined approach to philanthropic giving combines purpose, practicality, and passion. In planning for charitable giving, families can review their choices with a planning matrix that outlines the types of gifts and their basic features, control features, term, administrative considerations, income tax benefits, deduction limits, estate and gift tax benefits, costs, and other benefits and considerations.
On November 8, 2016, millions of Americans will cast their votes for the next U.S. President. In considering how the new political environment in 2017 will impact the investment landscape, it’s important to keep in mind the words of legendary investor Benjamin Graham: “In the short run the market is a voting machine, but in the long run it is a weighing machine.” Graham was warning investors to avoid focusing on a single-event outcome to the exclusion of other factors.
Chief Investment Officer David Donabedian recaps the first half of 2016 and provides an outlook for economic activity and financial markets in the third quarter of the year. The issues that will have the most impact on the financial markets over the next 12 months are:
The Foreign Account Tax Compliance Act (FATCA) is in full swing. Non-US financial institutions have completed reporting of US account holders for tax year 2014 and will soon begin compiling for their 2015 FATCA reports. Just as international families and their advisers are getting used to myriad requests for FATCA Form W-8 certification forms, more than 90 other countries have indicated that they wish to address tax evasion through a global exchange of financial information by implementing the Common Reporting (CRS) which, like FATCA, will affect non-US trusts and their trustees.
The holidays are approaching and to make it a more relaxed and enjoyable season, it helps to plan in advance and know the best practices for holiday planning, entertaining, gift giving, entertaining, and decorating.