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The American Taxpayer Relief Act of 2012 reduced the top marginal estate and gift tax rate to 40 percent. In addition, the Act provides for a $5,000,000 per individual lifetime estate/gift tax exemption, adjusted for inflation, known as the “basic exclusion amount”. The 2015 basic exclusion amount is $5,430,000. This article explains ch...

In his seminal guide to combat strategy, “The Art of War,” Chinese military general Sun Tzu wrote, “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” Great advice, except many companies tend to confuse tactics with strategy. They know strategy is important, but th...

With great wealth, comes great responsibility, and given the complexity of risks faced by the high net worth individual, even greater due diligence is required to protect against financial loss and emotional distress.While many high net worth individuals assess and protect physical assets, often they overlook protecting against loss from liability ...

The Internet has brought incomprehensible changes to our world over the last 20 years. Technology is so prevalent in our society that whether or not you personally shop online, use apps, or conduct web-based banking, you could find yourself a victim of a cyberattack. This issue of Abbot Downing Perspectives “Cyber (In)Security” addresse...

Perhaps related to unsettled politics and radical groups in various countries, Kidnappings of foreign nationals worldwide have increased by more than 60% in the past five years.The risk of a kidnap and ransom (K&R) situation is a very real risk for some families, particularly those with high public visibility, who hold a position of power, or w...

Some data security disasters make news because they involve household names -- Target Stores, Sony Online Entertainment and Home Depot, among others. While other data breaches make headlines because they reveal embarrassing information -- e.g., Ashley Madison. But that does not mean that family run offices, which may be less well-k...

The volume of information in businesses is doubling every two years, creating significant challenges for businesses of all types and sizes, including family offices. Besides the cost of storage, the information in records and data can pose risks that may surface in audits and litigation. One way to successfully tame the rising tide, is to implement...

Sidney Reso, president of Exxon Company International, was kidnapped from the driveway of his home and ultimately murdered in 1992. Edward Lampert, one of the nation’s wealthiest investors, was kidnapped in the parking garage of his offices in 2003 and was released after promising $5 million to his kidnappers. These are only a few examp...

Cloud computing continues to transform the way businesses work. But not all clouds are equal. We’ve collected the key features of cloud computing for family offices into a straightforward checklist and added explanations of what they are and how they matter to family offices. We’ve also highlighted what to look out for when ...

The protracted wrangling over deficit reduction and tax codes in Washington in recent years has raised concerns about the negative impact on charitable giving. Would the elimination of tax deductions act as a disincentive for the wealthy to give, possibly crippling the nonprofit sector?Such fears appear unfounded, according to recent research from ...

In the wealth management world, basis points mean everything. Hedge funds may charge 100 to 200 basis points plus a performance fee. Fund of funds typically charge 50 to 100 basis points plus a performance fee. The model for wealth management firms could be 50 basis points for managing a $10 million portfolio.Based on our observations, we know weal...

We face tremendous challenges today. The forces of globalization and modern consumerism are straining our planet’s resources. As production efficiencies increase through technology and human experience, prices decline thus enabling consumption of more goods by more people worldwide. In developing countries, as people migrate from farms to cit...

Impact investing has taken many forms over the years. In its earliest form, religious pension plans used negative screening to avoid sin stocks. Later, environmental and political activists would use shareholder proposals to demand that companies reduce pollution or otherwise improve their operations. Today, Wall Street and investors of all types a...

An approach to investing called RSI—“responsible, sustainable and impact investing”—seeks to create both financial return as well as positive social or environmental impacts that are actively measured. This white paper explains how families can connect philanthropic vision with investing strategy through RSI.

Clients often hire domestic staff for help managing a large family and household. But for the affluent homeowner, there are significant risks associated with retaining employees such as babysitters, elder-caregivers, and housekeepers, to name just a few. When hiring domestic workers, it’s important to consider and address the risks involved, ...