Resource Search

As the clock winds down on the U.S. election, many investors are interested in how a Biden administration would impact their taxes—particularly whether it’s more beneficial to realize gains today (pay now) or continue to defer gains into the future (pay later). It’s a big tax management decision for investors and advisors. We take a look at the implications of each choice.

Nearing the end of the year is an important time to consider any tax planning opportunities that may be available to you before ringing in the new year.

As family offices evaluate their assets during the economic downturn, examining deductions and estate and trust planning can help form better strategies and objectives. In this Q&A discussion, learn how the valuation of distressed assets and investments can maximize your tax deductions through these challenging times.

It’s time to consider year-end planning for a year that has been an unusual one, with taxpayers experiencing losses due to the economic downturn and the possibility of higher income tax rates next year. Consequently, it’s time to rethink the traditional year-end advice of deferring income and accelerating deductions to minimize one’s total tax liability over the years.

For high-net-worth individuals, establishing an incomplete non-grantor (ING) trust is a useful planning tool that provides income tax benefits to grantors residing in states with high state income tax rates or states that do not recognize the federal grantor trust rules. There are several steps to properly structure an ING trust, and it begins with the state selection.

New tax legislation is most likely to happen if next year the Democratic Party controls the Senate, the House of Representatives, and the White House. Now is the time to develop a contingency plan that can be implemented depending on the outcome of the U.S. election. Planning strategies that can be customized to the needs of each family are available, including taxable gifts, pre-fund life insurance trusts, spousal access trusts, intra-family loan, dynasty trusts, and GRAT planning.

Planning for future generations is the greatest gift family businesses can give, particularly during times of uncertainty. Transferring assets while they have a low value is a technique that is used to lock-in or freeze those low values in anticipation the asset will one day significantly increase in value. There are estate tax planning techniques that can be implemented which transfer the greatest amount of value from an estate while using the least amount of exemption.

Domicile determines a taxpayer’s home state for income tax purposes. While proof of residency can be as simple as getting a driver’s license from the new state, proof of domicile can be much more complex. Each state has their own requirements when determining a taxpayer’s domicile. The process can be challenging and tricky, but there are several ways for taxpayers to cut ties with their previous state of domicile.

Despite the popularity of exchange-traded funds (ETFs), there are structural issues that make them less than ideal for many high-net-worth investors. A tax-managed separately managed account (SMA) may deliver the same diversified, index-like exposure while offering increased after-tax returns for these investors. The benefits can be substantial.

As a clearer picture of each U.S. presidential candidate’s platforms emerges, many have yet to consider how a potential change in leadership may impact their current estate tax and income tax. This guides provides a thorough outline and comparison of both Biden’s and Trump’s tax platforms and includes possible impacts to high-income earners, high net worth individuals, and families. To help mitigate the tax impacts, several key strategies are brought into focus.