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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 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.

Through the evolution of the family journey, it’s clear that family structures have become more complex and estate planning needs to shift to a new model that focuses on multiple aspects of wealth.

Over the years, many families and their advisers have come to find that the State of Delaware is a trust-friendly jurisdiction that promotes modern laws and attractive income tax advantages. This paper highlights the most significant legal and tax benefits for nonresidents, and their professional advisers, who may be considering whether to establish a trust in Delaware.

Every state has its own set of rules for assessing income tax against a trust. In some situations, a trust might be required to file tax returns in three or more separate states. Recently, the U.S. Supreme Court decided a case that addresses how a state may tax a particular trust. We take a closer look at that decision and how it impacts state taxation of trusts—and possibly you. With careful thought, and the assistance of counsel, there are opportunities and tools available to draft trusts that can minimize, if not eliminate, state trust taxation.

As negotiations continue, the latest text of the proposed reconciliation bill, titled Build Back Better Act, is void of many of the prior proposed tax changes that would have upended estate planning.

The Biden administration’s American Families and other tax proposals may complicate the tax landscape for high-income owners. Given the real possibility of targeted tax increases on the wealthy and President Biden earmarking $80 million for IRS audit efforts, business owners and family offices should review their current situations to identify opportunities in which their overall federal and state tax liabilities could be minimized.

While the gift and estate tax exemption is scheduled to drop to approximately one-half the current amount of $11.7 million on January 1, 2026, there are tax proposals in play that could change the estate and gift tax laws much sooner. Uncertainty abounds, but planning options still exist through various trust instruments, including gifting to the next generation in trust and implementation of a SLAT—spousal lifetime access trust.

The proposed Build Back America Act, a $1.85 trillion social-policy and climate framework, is working its way through Congress. While the notable prior proposals were absent, the current legislation proposes a new income tax surcharge that will be added on top of the ordinary and capital gains tax rates. The surcharge—which can bring the total surtax to 8% for certain groups—will also apply to trusts and estates and will impact high-earning individuals. Unless otherwise provided, all proposals are effective January 1, 2022.

Family offices anticipating a variety of tax law changes now have more details to consider. How would the tax law changes proposed by the House Ways & Means Committee affect family offices and wealthy families? Tax specialists examine the considerations, including the surcharge on high-income individuals, estates, and trusts that would be effective for years beginning after December 31, 2021.