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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. Planners should also factor in the Federal Reserve trend to raise interest rates and how international families continue to establish trusts in the United States at a record pace. These trends provide advisors and planners powerful opportunities in 2018 and beyond.

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. When choosing the right trustee, it is important to explore the key criteria to help make this difficult but important decision.

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. Learn from the common mistakes made by family members serving as trustees and the ways for a trustee to protect against the liability that is inherent when serving in a fiduciary role.

The Tax Cuts and Jobs Act went into effect on January 1, 2018, and some experts suggest there could be a significant impact on charitable giving. Kim Laughton, President of Schwab Charitable, sat down with Hayden Adams, CPA, Director of Tax and Financial Planning at the Schwab Center for Financial Research (and former IRS agent) to discuss the new tax law and implications for charitable giving. Hear their thoughts on the matter, including strategies to help donors give more efficiently in the new tax environment.

By temporarily increasing the federal exemption from $5.5 million to $11.18 million for the gift, estate and generation-skipping taxes, the Tax Cuts and Jobs Act of 2017 (the “Act”) has created estate tax and income tax planning opportunities as well as traps for the unwary. In this multipart series, we explore all of these in depth. First we will look at potential pitfalls, including the risks that the Act could thwart a goal to make your spouse the first priority under your estate plan.

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. While the names have been changed, and the figures and structure have been simplified, the example reflects the real-life facts and steps that the patriarch took to shift the ownership and wealth in a tax efficient manner.

One of the most significant hurdles in structuring a suitable debt workout or restructuring arrangement between a lender and a borrower involves the negative impact of U.S. income taxes on the borrower, particularly if the partners have conflicting objectives in terms of their tax position. Various options are available to partners when making elections to recognize COI income immediately or to defer it. When general partners consider the potential impact of these elections on their partners’ financial situation, perils can be avoided.

Becoming a great beneficiary starts with having a great trustee. If a trustee devotes the majority of his or her time to administrative matters and managing investments, the wealth distribution process often gets the least attention when it ideally deserves the most. To some trustees, the distribution process may simply seem like a meeting with a beneficiary’s banker. By building a robust distribution process, however, a beneficiary can become better equipped and empowered to live well with wealth.

For private wealth clients, the consideration of tax liabilities adds another wrinkle to already complex investment decisions. It is vital for high-net-worth individuals and families to weigh the tax implications of any changes to their portfolio as taxes can erode gains, hindering their investments’ ability to meet their financial objectives. Although the burden of taxes creates a higher hurdle for private clients than most institutional investors, it is not insurmountable.