A new paper from Withers examines a privy council decision upholding, in large part, a post-nuptial agreement made by a wealthy couple. Given the landmark decision in MacLeod v MacLeod, the authors say, some couples may want to clarify the financial arrangements between them by entering into a post-nuptial agreement.
There are significant changes in the taxation of non-UK domiciled individuals. This question-and-answer document from KPMG LLP provides a quick overview of these changes as well as the impact on those affected.
Recent tax court cases have shown the ongoing administration of family limited partnerships is as important as making sure the transaction was properly structured at the outset. Withers Bergman says the family office is a natural fit for ensuring such administration because of its day-to-day involvement with family members and their holdings.
Savvy investors have always known that an economic downturn presents opportunities for anyone willing to bet on a recovery. Similarly with estate planning, there are distinct advantages in taking action while market values and interest rates are low. By transferring property now, individuals can reduce the size of their taxable estates while giving beneficiaries substantial upside potential.
Taxes may always be with us, but not necessarily in the same way depending on where we live. Deutsche Bank takes a global look at income tax, comparing tax scales, types of deductions and tax systems from one country to another.
A limited liability company may seem like the best way to structure private aircraft ownership, organizing finances while shielding other assets from liability, but think again, says Gary Horowitz of Wiley Rein. Using an LLC can lead to a huge tax liability, potential fines by the Federal Aviation Administration and increased personal liability. The author offers alternative structuring that can be less costly and provide better liability coverage.
Two notices from Withers Worldwide discuss changes to U.S. tax rules in the deferred remuneration area that take effect on 1 January 2009. These rules (found in Sections 409A and 457A of the U.S. tax code) target deferred payments that do not satisfy complex technical requirements, imposing a compliance burden on non-U.S. as well as U.S. employers. (Section 409A)
Pre-nuptial agreements and marriage agreements are not binding under English law, leaving the details of divorce settlements largely in the hands of judges. But decisions rendered in the past five years show that judges are now taking pre-nups more seriously. This article from Withers shows how an appeals court has interpreted the importance of a pre-nup in a particular case.
By thinking ahead and paying a long-term capital gain today, an investor can derive a net tax benefit in future years. This research brief from Parametric Portfolio Associates explores the tax-management strategy of realizing such gains in a portfolio of equities and quantifies how much this can add to after-tax performance. The authors evaluate the costs and benefits and consider the impact of fluctuating markets on this strategy.
Investors are well advised to take into account the interest rate environment when considering wealth transfer options. Interest rates are important when establishing trusts, reviewing existing estate plans, and lending money to family members. With interest rates declining, the current rates used to value wealth transfers are now near historic lows.