Families who successfully navigate the complexity of wealth through multiple generations tend to do things differently. They recognize the need to establish a framework for decision-making that includes creating foundational documents—also viewed as the “Cornerstone Statement”—that feature their values, vision, and mission for the wealth over many generations. With focused planning and respectful collaboration, you can learn how to create these foundational documents to help your family and future generations achieve a long-lasting and thriving legacy.
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The latest escalation in tensions between the U.S. and Iran, caused by an alleged Iranian attack on an oil tanker in the volatile Strait of Hormuz, adds to a growing list of geopolitical hotspots around the world. With an unpredictable U.S. president that hasn’t confronted a direct military threat and one might conclude it has the makings of a risky period ahead for financial markets. What does history reveal about the impact of geopolitical stress on economic growth and financial market performance?
In order to simplify the wealth structure and investment vehicle, many high-net-worth families collectively pool the assets of individual family members to form a legal partnership entity. The resulting economies of scale can lead to significant fee savings, as well as open the door to a larger universe of investment choices for smaller accounts. When deciding the type of partnership structure to form—a limited partnership or a limited liability corporation—there are some best practices and investment options to consider in the process.
In Part 1, we explored the potential tax pitfalls of the Tax Cuts and Jobs Act of 2017. In Part 2, we looked at new income tax planning opportunities.
Recent scholarly research has validated concerns about the comprehensive absorption of costs associated with the number of trade spats in which the United States is now engaged. That research implies that American firms and households are paying $3 billion-per-month increase in costs caused by trade policy. In this publication of The Real Economy, a closer exploration of key issues include the impact of trade policy, agriculture sector risks, agritech’s benefits, and how health care systems are using education acquisitions to offset labor shortages.
There has been much discussion regarding the Qualified Opportunity Zone program established via the Tax Cuts and Jobs Act in 2017 because of potential tax advantages. This program aims to incent long-term private sector investment in low-income communities nationwide while allowing investors to potentially defer and partially reduce capital gains tax by investing capital gain amounts (or a portion) in Qualified Opportunity Zone (“QOZ”) through a Qualified Opportunity Zone Fund.
Philanthropy is changing and evolving more quickly than ever, with new societal challenges, new players, and new strategies. In this time of change, questions of how family foundations can optimize their effectiveness are increasingly urgent. This paper by Rockefeller Philanthropy Advisors provides an overview of the Theory of the Foundation, some of its benefits, and a roadmap that enables foundations to address urgent questions, explore fundamental beliefs or implicit assumptions about their work, public benefit, and action.
As healthcare acuity continues to rise among assisted living and independent living residents, savvy providers are finding ways to expand their reach across the care continuum. While this often means branching out into services such as in-home care and insurance products, increasingly providers are opting to stick to the business of service-enhanced real estate. The difference is a new focus on enticing the younger segment of older adults—with an active adult strategy.
The IRS released its second set of proposed regulations under Internal Revenue Code, Section 1400Z-2, Special rules for capital gains invested in opportunity zones. While some questions remain unanswered, it provided much needed guidance for investors, fund managers, developers, and sponsors pertaining to qualified opportunity zone business property, the treatment of tangible leased property, Section 1231 gain, the 90-percent asset test, and more. The guidance is generally taxpayer-friendly and provides the flexibility that businesses and investors were seeking.
Contrary to the benefit that investors have historically achieved with corporate private equity investments, private real estate funds have generally not succeeded in delivering a return premium. Yet there remains significant momentum in institutional capital targeting private equity real estate, especially value-add and opportunistic strategies. History shows that REITs have been an attractive way to make an allocation to real estate, with relatively lower-risk business models that have produced superior returns to the average private fund over full market cycles.