A properly structured, funded, and invested dynasty trust can be a powerful tool in achieving significant tax savings on the transfer of wealth across generations. This paper discusses the tax benefits of dynasty trusts under Delaware law as well as funding and investment management strategies to consider.
The IRS has begun checking real estate transfer records in at least 15 states. So far, the new initiative has netted more than 500 cases for audit, and there will likely be many more depending on the results of the taxes collected from this initial effort. Similar initiatives are likely, as the IRS is budgeted to receive additional funds to seek ou...
New cost basis reporting rules for securities sales allow the IRS to better track an investor’s capital gains and, as a result, help the agency collect all the money it can. For investors, getting the correct cost basis recorded now is important because it will set the bar for how much they pay on future gains.
Reporting requirements for capital asset sales have changed, and the IRS is now in a better position to verify and track your activity. This article explains the IRS’ equation: verify + track + match data + audit = increased tax collection.
Join this engaging session on a variety of topics related to the human capital of a family office. The first half will cover trends in the workforce and labor market, from the challenges of a multi-generational team to compensation and family office career paths. Our second half will be dedicated to fielding audience questions so come prepared to s...
As families and family offices grow and become more complex, attracting the right talent to deliver and manage services requires compensation plans that are competitive and keep pace with an evolving workforce. This session will offer fresh perspectives, based on our 2024 Compensation and Benefits Study, to help family offices creat...
A solid governance structure is critical to any private trust company’s long-term success. Through a thoughtful review that includes useful diagrams and outlines, learn the common elements of the PTC structure; the Board role and responsibilities; the Board attributes, composition, selection process, and succession planning; and addi...
The creation of a charitable remainder trust can provide you with a lifetime income stream while helping fulfill legacy goals of supporting charitable organizations that are important to you. There are two kinds, which are minor variations of each other: the Charitable Remainder Annuity (CRAT) and the Charitable Remainder Unitrust (CRUT).
Irrevocable trusts have been part of estate planning for years. They have been used for a variety of purposes, such as to remove assets from a person’s estate in order to reduce taxes, to protect assets from creditors, and to provide management of assets for beneficiaries. However, many do not like the idea that the trust is irrevo...
The U.S. Supreme Court will revisit state tax nexus for the second year in a row after granting North Carolina’s petition for certiorari in North Carolina Department of Revenue v. The Kimberley Rice Kaestner 1992 Family Trust (Docket No. 18-457). Kaestner and Fielding could have significant implications on the state taxation of trusts. All multista...
Families with complex assets, such as family businesses, as well as those who have portfolios managed by multiple advisors, may find trustees reluctant to administer their trusts. This is because, in many states, the trustees remain liable for the actions of delegated third-parties or even named advisors. Delaware directed trusts can alleviate this...
Over the past decade, matriarchs and patriarchs of successful families have been shifting their focus from their children to a broader group of individuals, such as grandchildren, siblings, and nieces. Often, they choose to create family banks, which are typically trusts that are funded to help individuals pursue entrepreneurial opportunities, vent...
Trusts classified as foreign for U.S. tax purposes, whether established under the law of a U.S. state or of an offshore jurisdiction, must review whether they have any U.S. tax or information reporting filings to make in 2019 with regard to income earned and distributions made in 2018. This article provides trust officers and family advisers with a...
As more and more investors look to implement impact investment strategies, interesting questions are being raised in the context of impact investing by fiduciaries appointed to administer a trust for beneficiaries. Suppose the beneficiary of a multi-generational, non-charitable trust is interested in integrating her values in a trust established fo...
This 2009 Financial Executives Forum presentation will focus on the latest developments in the tax law, including legislative proposals in Congress, and the implications for families of wealth and the single-family and multifamily offices that serve them. The session will also discuss a number of tax planning strategies that may be useful in the cu...