This paper will examine ways to lessen six of the greatest risks to preserving and enjoying multigenerational wealth. These six risks are: concentrating your assets, overspending, overusing leverage, poor tax planning, not attending to liabilities, ignoring family governance
This article addresses the complex U.S. tax rules governing cross-border grant-making by private foundations.
In today's world, domestic asset protection trusts can be a useful planning tool. However, under certain circumstances can be subject to intense scrutiny. Holland+Knight defines and outlines the case for domestic asset protection trusts.
This article highlights the fact that most wealthy U.S. families customarily choose individuals rather than trust companies to serve as trustee, even for complex trusts holding very substantial assets and even though a family who can afford it now has the option of creating its own trust. The article also argues that reliance on individual trustees carries the risk that it depends on an unbroken line of succession from one 'wise' (competent, diligent) trustee to the next, with little or no transition time or cushion to adjust for unexpected events.
A discussion of pre-nuptial, post-nuptial or cohabitation agreements.
Many families of wealth struggle with a fundamental question: Can our wealth be sustained across generations and have a positive impact on those who use it? Through experience and research, a series of best practices for the successful transfer of multi-generational wealth has been identified to help reduce the likelihood of families succumbing to the paradigm of “shirtsleeves-to-shirtsleeves in three generations.” Families who devote time and effort to adopt the best practices will be better able to increase the 1 in 3 chance of maintaining wealth through multiple
With the recent changes in the transfer tax laws, it is possible to transfer greater wealth and reduce income taxes through POAST. This innovative approach and integrated trust technique allow a wealthy individual (the donor) to provide benefits to both parents and descendants. A properly structured POAST can accomplish multiple objectives, including support for less wealthy family members, income tax mitigation, and enhanced dynastic wealth transfer.
With the ever-evolving nature of international tax, the non-U.S. resident or non-U.S. citizen with activities in the United States (referred to as “inbound” activities) and their U.S. advisors should become aware of fundamental, international tax principles to avoid the unintended application of U.S. tax. This guide serves as a resource to help navigate the dynamic tax landscape.
1031 Exchange, commonly known as like-kind exchange, can be a smart tax strategy for business owners who also own or invest in real estate.
Changes in the federal tax laws have provided a renewed focus on state income taxes and strategies available to minimize these taxes. While personal trusts have been used most commonly as estate and gift tax planning tools, they now have increased importance as vehicles for minimizing a family’s federal and state income tax liability. If you live in a high-tax state there may be opportunities to reduce or eliminate state taxes on some of your income by establishing a new trust in Delaware or moving an existing trust to the First State.