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The “Tax Relief, Unemployment Insurance & Job Creation Act of 2010” (TRA 2010) reunified the gift and estate tax systems and increased the amount a person can transfer to children and future generations during lifetime or at death to $5,000,000. As of the beginning of 2012, indexing puts that number at $5,120,000. The window on this opportunity to fully fund a generational legacy of over $10 million per couple will close on December 31, 2012. Beginning January 1, 2013, the amount passing free of gift and estate tax is back to an indexed $1,000,000.

Modifications, reformations and decanting of a trust have all gained in popularity as a result of modernized trust laws, changes in family circumstances and/or a desire to change trust administration. This paper looks at some of the benefits of South Dakota's decanting, modification and reformation statutes.

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Act) reinstated the gift, estate and generation-skipping transfer (GST) taxes that were repealed earlier in 2010. The reinstatement comes with increased transfer tax exemptions and favorable rates for 2012. Get a closer look at the details in this white paper.

The term “family bank” grew from the idea that a Dynasty Trust can act much like a traditional bank by providing resources to fund particular needs of beneficiaries in successive generations, for instance, purchasing real estate and other large assets, funding business endeavors, providing family distributions to fund “health, education, maintenance and support” (HEMS) expenditures and so on.

Personal liability for family members serving individually as a trustee can result from improper asset allocation, lack of diversification, unacceptable due diligence and monitoring, environmental issues with real estate, and other distribution and/or investment issues. The directed trust and private family trust company (PFTC) are two great options to combat these potential liability issues without inhibiting a family’s flexibility and control.

Current law provides that on January 1, 2013, income tax rules revert to significantly higher pre-2001 levels. In addition, it appears that the new Medicare Hospital Insurance taxes for high-income individuals will go into effect in 2013 following the Supreme Court’s decision to uphold the majority of the Obama health care law. Congress is unlikely to agree on significant tax law changes prior to November as we await the outcome of elections, the results of which could impact future tax legislation. This white paper looks at what you need to know to make informed decisions.

Over the past several months, private investors and their advisors have been pondering the wisdom of accelerating long-term capital gains in the 2012 tax year. This paper looks at why.

With only a few months to go until the end of the year, those who have not fully used their available lifetime gift, estate and generation skipping transfer exemptions may be running out of time. This paper outlines some ideas for making relatively simple and quick use of the opportunity, so that it does not go to waste.

The windfall of inherited wealth often comes with feelings of guilt and elation, isolation and confusion. No wonder; when the financial gain is due to the loss of a loved one’s life, it feels crass to be excited about the opportunities an inheritance affords. Learning to be comfortable with inherited wealth is a process, a process of moving through emotional stages that can be aligned with the emotional stages of grief.

This white paper reviews how investors can take advantage of the current gift tax exemption without hurting their liquidity.