Miles Padgett, Partner – Kozusko Harris Vetter Wareh Duncan LLP;Matt Tobin, COO, Legal Counsel, and President of SDTC Services LLC – South Dakota Trust Company LLC
Wednesday, November 7, 2018
The Private Trust Company (PTC) structure offers the promise and potential to manage and organize increasing complexity within the family enterprise.
With the passage of the Tax Cuts and Jobs Act at the end of 2017, more family businesses are examining their corporate structure and considering the tax implications.
Following recent amendments to the tax code, both the applicable estate and gift tax exemption and the GST exemption were increased to $11,180,000. This nearly doubled the exemptions available in 2017.
The Tax Cuts and Jobs Act of 2017 (the “Act”) brought extensive changes and a need to contemplate the doubling of the federal exemption from $5.6 million to $11.2 million for the estate, gift and GST taxes, along with planning for the sunset of the increased exemption amounts on December 31, 2025
Incentive trusts are typically defined as trusts with provisions to encourage or discourage certain types of behavior and promote family values. Despite their appeal, they remain underutilized.
Three converging trends—including a shift from negative to positive screening—are making it easier for investors to implement impact investment programs that deliver competitive returns.
Although it is flattering to be asked to be a trustee, you should give careful consideration about serving in this important role, as performing the responsibilities of a fiduciary can expose you to great personal liability, especially if you lack training.
Whether it be a family member, trusted friend, or professional advisor, whom you pick as a trustee matters. An ideal trustee will follow through on the objectives outlined during your lifetime, your spouse’s lifetime, and through the trust’s ultimate disposition.
Despite the easing of estate taxes on many taxpayers, many family-held businesses continue to be burdened with large potential transfer taxes. Using a real-life story of one family business, we show how the family successfully addressed this problem.
