Selecting one’s home state as the situs may be a convenient or easy answer. However, the ability to implement a trust that may last forever, eliminate additional transfer taxes after funding and avoid state income taxes may provide the financial incentive to stray from home, or at least to consider it.
The allocation of receipts and disbursements between principal and interest are critical to the proper design and administration of trusts. Individuals creating trusts should have an appreciation and basic understanding of these concepts so the trusts will operate consistent with the settlors’ intentions and provide the intended benefits.
The American Taxpayer Relief Act of 2012 maintained the gift, estate and generation-skipping transfer taxes that were scheduled to sunset prior to 2013 and increased the exemptions for all three taxes to $5.25 million, making new or additional gifts to trusts a more attractive option in estate planning.
New Hampshire has a robust set of modern trust laws, which afford settlors broad flexibility and creativity in designing trusts well suited to their specific needs and wishes. Those laws facilitate the more efficient administration of trusts and, importantly, provide a high level of certainty concerning the rights, duties and powers of settlors, be...
For foreign entrepreneurs seeking to bring their businesses to the United States, the EB-5 Immigrant Investor Visa may seem like the perfect fit. Looks, however, can be deceiving. Green card holders are subject immediately to U.S. federal income tax on their worldwide income and informational reporting requirements for their foreign interests.
Without a full understanding of U.S. federal gift tax and income tax issues associated with a gift of money to a U.S. child, it is easy for a nonresident alien to convert what would have been a tax-free gift to taxable income. This guide outlines the most common gift-giving mistakes and how to avoid them.
Portability may have been viewed initially as the simple solution in situations in which there was the potential for loss of the applicable credit amount of the first spouse to die. While this is a valuable benefit, the impact and potential planning opportunities for portability go beyond this important but somewhat limited scope.
When carried interest is transferred early in a fund’s life, it can have a very low value relative to its potential value at payout. It’s this payout potential that makes it an ideal asset to be used in estate tax-reduction planning, especially when used in combination with a grantor trust allowing for that appreciation to compound on a...
New Hampshire’s directed trust statutes provide families with maximum flexibility and control in the creation and ongoing administration of trusts. This paper explores the benefits of directed trusts and illustrated a typical NH directed trust structure.
Since 2006, New Hampshire has permitted the formation of family trust companies. This paper summarizes the advantages of creating family trust companies in a favorable site such as New Hampshire.
Delaware has long been a jurisdiction of choice for grantors of trusts—for generations, the state has built a trust-friendly body of legislation and has supported its laws with a knowledgeable and effective court system. In this package of white papers, our wealth strategies experts explain the benefits and considerations of Delaware tru...
The historic June 2013 Windsor decision clarified the financial and legal status of some legally married same-sex couples, while leaving others in an ambiguous status—legally married for purposes of federal law, but still considered single in many states. For those in a same-sex relationship or for families with children or grandchildren in a same-...
It is not uncommon for wealth transfer planning to focus solely on the amount of money to be transferred and potential strategies for minimizing taxes. However, one of the most lasting gifts that a grantor can provide family members is an understanding of their long-term goals for the family and how this is shaped by shared history and values.This ...
The process of developing long-term strategies to manage family wealth requires careful thought and well-coordinated tactics focused on achieving far-reaching wealth planning objectives.All too often, plans are established that are focused primarily on minimizing the tax burden. Individuals and families need to be careful that the tax “tail&r...
The US Supreme Court, in a unanimous opinion issued June 19, 2014, implemented a new standard for courts to employ in determining if a taxpayer may challenge whether the Internal Revenue Service has issued a summons in good faith. In light of the Service’s new procedures for administering Information Document Requests, including the potential...