Compound growth over time—uneroded by taxes—is key to amassing substantial wealth, and that’s where dynasty trusts come in. It’s designed to minimize taxes over multiple generations. When done correctly, dynasty trusts can leave an enduring and significant financial legacy for generations to come.
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 ...
A Charitable Lead Annuity Trust (CLAT) is an effective means to reduce current income taxes, transfer wealth to a family free of gift and estate tax, and benefit charity. Here is an illustration of a specific tax planning technique that might be valuable.
Under Section 663(b) of the Internal Revenue Code, any distribution by an estate or trust within the first 65 days of the tax year can be treated as having been made on the last day of the preceding tax year. Using this rule to treat any distribution by an estate or trust can provide a possible opportunity for tax savings.
Also known as a family trust company, a private trust company (PTC) is an entity that allows families to unbundle fiduciary services in furtherance of family and financial goals. In this overview and primer, learn more about the elements of the PTC structure, board roles and responsibilities, and when it makes sense to form a PTC.
Many young adults are looking to increase their knowledge when it comes to managing their inherited wealth. After all, wealth can be a complicated topic—and figuring out what to do with it can be an overwhelming experience. With that in mind, this guide is designed to answer their questions and concerns on the issues related to money, includin...
Sometimes, portfolios are so focused on returns that tax efficiency gets pushed to the back burner. But proposed changes to tax law under the Biden administration—and the related debates—have brought renewed focus to the tax impact of portfolio decisions. That makes now a good time to review some of key techniques to help manage your investment tax...
Flexible trust planning has never been more important as a result of current and future health, political, economic, and tax uncertainty. Modern directed trusts are one of the best vehicles to provide wealth preservation along with flexibility intergenerationally. Whether the federal estate, gift and GST Tax exemptions are high, low or repealed alt...
If you own a closely held business, choosing how and when to exit your business is a critical part of the planning. If one of your goals involves benefiting charity, you might consider the use of a charitable remainder trust (CRT). It’s also an option that can help achieve other business exit goals and reduce your overall tax payment.
In this outlook of forward-looking perspectives, experts provide specific, timely advice on how to articulate your unique vision for your wealth across key societal and financial themes for 2022 and beyond.
For married couples looking to use their lifetime gift exemptions and protect their assets, spousal lifetime access trusts (SLATs) are an attractive option. Planning to use the increased exemption now instead of waiting until it expires in 2025 and reverts to the 2011 level of $5 million will also allow for more thoughtful preparation, and a proper...
The U.S. House of Representative passed the Build Back Better Act, the second component of the White House’s ambitious spending plan, on November 19, 2021. Among the most significant provisions in the Act is a new broad-based surcharge of up to 8% on high-income individuals, trusts, and estates. An analysis on the surcharge impact and other k...
With possible tax law changes on the horizon, it can feel daunting to make any moves before knowing the outcome. But year-end is still a good time to get your financial house in order and fine-tune your long-term strategy to take advantage of tax savings opportunities.
The House Budget Committee released a third version of H.R. 5376 (the Build Back Better Act) on November 3, 2021. This draft increases the state and local tax deduction, brings back many of the retirement proposals from the original September 13 draft of the Bild Back Better Act, and retains the surcharge on high-income individuals, estates, a...
The House Budget Committee released a version of H.R. 5376 (the Build Back Better Act), which eliminated many of the previously proposed tax increases that would have impacted individuals. However, the rewrite of the Build Back Better Act includes a tax surcharge on high-income individuals, estates, and trusts that would be imposed and be...