Changes in tax laws have made the long-term, or dynasty, trust a particularly attractive means to transfer wealth to multiple generations free of estate taxes. However, the expiration of certain exemptions in 2013 means individuals need to act soon to realize the maximum benefit of these trusts.
Because of the uncertainty as to what the new congressional bipartisan joint committee will do, it is important that individuals who want to take advantage of existing estate planning techniques talk with their advisors now to find out whether such planning is appropriate based on their circumstances.
This paper provides answers to such questions as what is an intentionally defective irrevocable trust; what is meant by defective; when is this type of trust appropriate; how does an installment sale to an intentionally defective irrevocable trust work, and what are the tax considerations?
Modern dynasty trust laws, such as those in South Dakota, provide the settlor with the flexibility to deal with uncertainty while maintaining the benefits of intergenerational planning. Directed trusts, trust protectors, special purpose entities and other state statutory trust provisions provide the flexibility that has made the modern dynasty trus...
This organizer, developed by a FOX Thought Leaders Council™ member, assists individuals in the collection and organization of personal and financial information essential to the estate planning process.
True wealth transfer focuses on the synergies of various forms of family capital. The authors support shifting the definition of "success" from the singular transfer of financial wealth to helping the family develop a plan that considers the family's human capital and its relationship to the sustainability of the family's financial capital.
The low interest rate environment, depressed asset values and current transfer tax rules seem to offer superior wealth transfer planning opportunities. However, time may be of the essence as the window of opportunity created by these three conditions may be short-lived.
As the financial world grows increasingly integrated and jurisdictions share ever more information, taxpayers who continue to hold undeclared taxable accounts are at much greater risk of being discovered. The new voluntary disclosure program may represent the best chance to come clean with the IRS.
Research shows investment managers are far too willing to incur a large negative tax alpha for taxable clients while pursuing a pretax alpha. The result is that most investment management products offer a combined alpha that is negative: pretax alpha, whether good or bad, less a relentlessly negative tax alpha.
Canada provides a safe and tax-efficient alternative for wealthy families seeking a residency strategy to protect their wealth and a place to set up a family office. The country has neither gift nor estate taxes and offers tax-reduction structures for wealth immigrating families.
Despite the uncertainty regarding estate taxes, wealth owners still can take steps to ensure their estates are in the best possible position no matter what laws are passed.
Be sure that your heirs have the information they need to access your online accounts.
It is increasingly common for estate planning attorneys to reduce estate taxes on tangible property by transferring ownership of that property from an individual to a trustee of a trust. However, this strategy can expose an entire estate to some serious potential uninsured claims.
Given the uncertainty around income and estate taxes, planning with a financial advisor is essential. While Congress may not act on taxes until late in the year, individuals will be best positioned to implement a plan if they spend the intervening weeks laying the necessary groundwork.
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 ma...