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A non-U.S. company's classification for U.S. tax purposes is important for Foreign Account Tax Compliance Act (FATCA) compliance and U.S. withholding tax reasons. Advisors to families with succession planning structures that include holding, operating, and other companies should determine the U.S. tax classification for each company in the structure and resulting compliance and tax implications.

Through the evolution of the family journey, it’s clear that family structures have become more complex and estate planning needs to shift to a new model that focuses on multiple aspects of wealth.

Even when there is a financial gift to sufficiently endow an art collection today, there is no certainty that the endowment will be able to fund the charity indefinitely into the future. When there is no charity willing to preserve the collection, the artist or collector should consider using a private foundation. Especially now as the future of museums is moving away from the brick-and-mortar and toward a virtual institution.

The economy is still aimlessly lurching from the impacts of the COVID-19 pandemic, and those fits may spill over into tax-filing season. It’s likely that a disproportionate number of filers will have some income and capital gains they weren’t expecting as the result of mutual fund distributions last year. Through an effective tax-managed investment strategy, even a tumultuous year like 2020 can produce benefits. If the investor structures realized losses to manage tax burden, even a difficult year can help you meet your investment goals.

The possibility of dramatic tax changes on lifetime gifts and after an individual’s death has increased with introduction of the For the 99.5 Percent Act and the Sensible Taxation and Equity Promotion Act in the U.S. While it remains early in the legislative process, the chances of significant changes are growing and the window for action is closing. For those individuals and families of wealth who said they would deal with these issues “later,” the time is now to do proactive tax and estate planning.

With the IRS increasing their funding and enforcement, upper income taxpayers should expect the IRS audit coverage to increase dramatically on them. It’s important to prepare for the tax changes that are coming—and coming quickly. Along with having a team of professionals on your side, there are steps you can take to protect yourself. Now is the time to review and perhaps recalibrate your risk tolerance for tax strategies.To learn more about the coming changes, listen to the podcast recording here with Waller’s Leigh Griffith.

Investors occasionally look to their municipal bond portfolio for loss-harvesting opportunities that reduce the impact of capital gains taxes on portfolio returns. Learn how an active tax-loss management strategy ensures year-round performance, maximizes tax alpha, and minimizes costs.

While no tax legislation has been drafted under the Biden administration, one thing we know for sure is that taxes will go up. Being aware of the proposals being discussed can help you prepare for what comes next, including what you should be considering for both income tax and estate tax planning this year.

Over the past decade, Tennessee has significantly elevated its position as a preeminent jurisdiction to situs a trust. With the latest enacted legislation in the state, that situs status is maintained. Some of the more significant enhancements of the legislation include the ability to designate applicable law, registration of a trust, and additional flexibility in decanting.

Too often, taxes are only thought of once or twice a year, but the reality is that an effective tax plan is considered year-round and on a multi-year basis. Tim Steffen, Baird’s Director of Tax Planning, shares his insights on common tax planning misconceptions, when and why to consider tax planning, and how to respond to legislative changes to the tax code.