This white paper from Atlantic Trust reviews the history of the Economic Growth and Tax Reconciliation Act of 2001, offers a look at recently proposed tax reform bills, and urges families to continue with careful estate planning, asset protection planning, business succession plans and charitable plans.
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In response to representations made since the Pre-Budget Report, HMRC announced that the draft legislation released in December and, in particular, the definition of a "bank" did not actually reflect their intentions and that the legislation will be substantially amended in this regard. Withers Worldwide provides a summary of the amendments and their future implications.
Gifting may be the place to start in planning a long-term estate planning strategy, according to this paper from Wells Fargo. While gifting can be useful in transferring tax savings, it also can provide a real-time snapshot of the estate plan by allowing the giver to see how beneficiaries accept and respond to the gifts and then to change the estate plan in response.
Although estate tax laws may be uncertain, now is the time to review estate planning documents. This report from Schiff Hardin suggests tax-reduction strategies; defines required minimum distributions from retirement accounts; details developments in tax-related state law in California, Florida, Illinois and New York; and provides information on making tax-free gifts to children and grandchildren.
Recent cases of misappropriation of client funds, breaches of fiduciary duty, theft and bankruptcy filings underscore the importance of qualifying one's 1031 qualified intermediary. This article from Strategic Exchange Advisors includes information of interest to any investor with real estate holdings in the United States.
How do you know you are selecting the trustee that is best for your individual needs? What responsibilities does the beneficiary have? This 2009 FOX Fall Forum presentation outlines what it means to be an effective trustee and beneficiary, decision criteria for trustee selection, and the process and framework trustees and beneficiaries can employ to manage trust and fiduciary decisions at both the macro and micro level.
The answer to whether to establish a Roth account or to roll over a traditional retirement account to a Roth is not always obvious because of the upfront tax cost associated with the Roth. Whether an individual reaps an offsetting benefit will depend on how long money remains in the account, the tax rates in effect when it is withdrawn and how the investments perform.
Meeting significant charitable goals efficiently creates a disproportionate need for the characteristics inherent in liquid, public securities. Increasing the allocation to liquid asset classes from 29% to 75% on a tax-managed basis can generate comparable returns to the endowment model after taxes while maintaining the flexibility needed to handle cash flow interruptions and changes in markets, tax regimens and personal goals.
Many private enterprises are just beginning to understand the changes necessitated by these rules and their implications. This is important, as preparation of annual financial statements that are subject to the rules involves a review and analysis of accumulated tax positions. Private enterprises can benefit from the accumulated experience of public companies as they prepare for the issuance of these statements.
Research demonstrates that even large pools of recognized losses may be depleted in a rather short period of time if the investor loses focus on tax management. The longer the investor can expand this window of time by continuing to actively manage their tax situation, the greater the potential opportunity for total wealth creation in the long term.