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One of the most common wealth transfer and estate planning techniques is to use an irrevocable life insurance trust (ILIT) to own life insurance policies. This structure enables individuals and families to direct the transfer of assets in a tax-efficient manner from one generation to another for the benefit of the trust’s beneficiaries.As wit...

Trusts have gained enormous popularity over the last 20 years. The top 1 percent of the wealthy have 38 percent of their investment assets in trusts, and the next 4 percent have 43 percent of their investment assets in trusts.1 This powerful trend is largely due to the fact that the modern trust can provide a family not only with powerful tax and a...

Wealth transfer planning is a complex process with an ever-changing set of risks, opportunities, and regulations. Subtle changes to wealth transfer techniques—including applying commonly used risk management and sophisticated planning strategies—can dramatically increase the likelihood of success and enhance financial results.

Estate planning and wealth management involve the founder’s goals, family and assets. Unresolved substance use disorders (SUDs) will undermine the best plans and intent in all three areas. However, trustees and attorneys frequently overlook clients engaging in addictive behavior because they are unaware of the symptoms of the disease, don&rsq...

Families who have created wealth over time through real estate development and ownership have even greater opportunities, but very different challenges, when their focus shifts to preserving that wealth. In many instances, using appropriately trained professionals to guide in the process and electing to create a single family office, or retaining t...

The American Taxpayer Relief Act of 2012 reduced the top marginal estate and gift tax rate to 40 percent. In addition, the Act provides for a $5,000,000 per individual lifetime estate/gift tax exemption, adjusted for inflation, known as the “basic exclusion amount”. The 2015 basic exclusion amount is $5,430,000. This article explains ch...

This case study walks through the estate planning The Blum Firm, P.C. did for a client who sold their billion-dollar company several years ago. The planning occurred in five stages and exemplifies planning which saves taxes, provides asset protection, and structures an inheritance for future generations.

Though the IRS issued the final regulations for section 67 in May 2014 to require the unbundling of a fiduciary's integrated fee, corporate fiduciaries and tax planners continue to struggle with designing and implementing procedures to ensure that the directive is properly accounted for on returns during the upcoming tax filing season.While mos...

Spring and summer are typically filled with celebrations of life’s milestones, graduations, and weddings to name just a few. These and other life events are all occasions when we may wish to bestow meaningful gifts on those we care about. Thoughtful gifting strategies can help families transfer wealth from one generation to another, soft...

The loss of a spouse to either death or divorce is one of the most traumatic experiences anyone can go through. Life will change irrevocably in many ways for the surviving spouse or separated partners. This article reviews often-neglected steps that may lessen the burden and financial issues that you and/or your spouse may face when this painful lo...

Research on income equality and social mobility yields compelling conclusions in support of both sides of the debate. For now, regardless of how the research evolves, it is safe to expect the U.S. will enter an environment of higher personal tax rates with further redistribution in the cards, something investors need to consider when weig...

For families contemplating substantial charitable contributions, private foundations provide a structure to create a legacy of family charitable giving and remain a popular vehicle for charitably inclined families.While a private foundation may appeal to an individual for a variety of reasons; private foundations come with responsibilities. Prior t...

On 18 March, the Russian Ministry of Finance published a draft law on anti-offshore measures (the Draft). This article by Withers LLP provides a thoughtful review of the Draft, which introduces three concepts:Controlled foreign companies rules (CFC)Russian tax residence for foreign companies based on tests of management and controlNew rules on taxa...

The sale of a business can be one of the most significant events for families of wealth. Often, family members have devoted substantial time and resources to building a successful enterprise.While the sale of the business may be viewed as the successful culmination of years of work, it may also cause concern for the owner, who feels there is not en...

As tax rates on the wealthy have begun to go up again, taxpayers have begun to take a second look at the few legitimate tax shelters still available, and this has renewed interest in investing through insurance dedicated funds (IDFs).This paper discusses two types of IDFs, Private Placement Variable Annuities (PPVA) and Private Placement Life Insur...