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The coronavirus pandemic has upended markets, the economy, and people’s livelihoods. Few things feel like they’re under your control. When it comes to investing, what should investors and their advisors do? While it may be strange to contemplate why the pandemic could also reshape taxes, the choices you make around investment taxes could have significant implications for years to come.

Financial planning is a long-term process, so it’s important to begin by building a strong foundation upon which the rest of your plan can grow. The foundation of your plan is designed to provide financial stability and protection. With these features in place, now may be an excellent time to examine opportunities to grow your assets and ultimately optimize your plan based on changes in today’s economic environment.

Every year, life insurance carriers capture approximately $25 billion of economic value from policy owners and trust beneficiaries when the policies of older insureds are surrendered or allowed to lapse. Of that amount, high-net-worth families forfeit around $10 billion because they weren’t aware of how they could recapture the value of those policies through a transaction called a life settlement, which is the sale of a life insurance policy from the original owner to a third party.

The passage of the Coronavirus Aid, Relief, Economic, and Security (CARES) Act brings much needed tax relief to individuals, families, and businesses. While the CARES Act provides many potential sources of relief, the focus here is on the key personal and business tax provisions in the Act, and how such measures can provide support in the short term, as well as further down the road.

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.

When considering where to establish a Private Family Trust Company (PFTC), South Dakota is continually chosen as the top regulated PFTC jurisdiction in the United States. The low PFTC capital requirements and maintenance costs make the set-up an easier process.

Through thoughtful planning, there are ways to anticipate many possible issues—including the unanticipated—when doing your long-term and perpetual intergenerational trust planning. Consequently, detailed and flexible trust drafting is generally very helpful.

The question of how to structure a trust is of increasing importance, particularly in light of recent trends, including the expected ruling in North Carolina Dept. of Revenue v. The Kimberley Rice Kaestner 1992 Family Trust. One key decision that families and their advisors have regarding long-term trusts is whether to establish a single pot trust for the entire family of a trust with separate shares for each family line. And, while Kaestner is centered on the state taxation of trusts, key considerations on how to structure a trust go well beyond taxes.

Estate planners and advisors will need to contemplate the political climate in an election year, particularly given certain political opposition to the extensive changes made by the Tax Cuts and Jobs Act of 2017.

The COVID-19 pandemic has caused significant burdens for employers and employees alike. While some businesses struggle to survive, others are fortunate enough to be in a position to help employees as they face hardships created by the crisis. Many employers in the latter category are looking for ways to best help employees who are facing financial difficulties as a result of the pandemic. One possible approach for these employers is a disaster relief fund under Section 139 of the Internal Revenue Code.