The current interest rate environment has created an unusual opportunity to maximize life insurance cash values. Determining the value of this option requires evaluating two current life insurance illustrations of the same policy. The ability to access cash surrender value through a non-taxable policy loan is a valuable feature of li...
The framework uses multiple dimensions of risk and return trade-offs to consider when building portfolios and evaluates the consequences of risk allocation decisions during normal and stressed markets. The authors explain this process goes further than traditional role-in-portfolio exposure techniques by considering not on...
If the big picture includes ensuring a retirement income stream and passing assets to loved ones, it’s crucial to understand the effects of income and estate tax laws. Integrated, long-term planning is important and should be done well in advance.
Though the IRS issued the final regulations for section 67 in May 2014 to require the unbundling of a fiduciary's integrated fee, corporate fiduciaries and tax planners continue to struggle with designing and implementing procedures to ensure that the directive is properly accounted for on returns during the upcoming tax filing season.While mos...
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 res...
This case study walks through the estate planning The Blum Firm, P.C. did for a client who sold their billion-dollar company several years ago. The planning occurred in five stages and exemplifies planning which saves taxes, provides asset protection, and structures an inheritance for future generations.
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...
Families who have created wealth over time through real estate development and ownership have even greater opportunities, but very different challenges, when their focus shifts to preserving that wealth. In many instances, using appropriately trained professionals to guide in the process and electing to create a single family office, or retaining t...
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...
Estate planning and wealth management involve the founder’s goals, family and assets. Unresolved substance use disorders (SUDs) will undermine the best plans and intent in all three areas. However, trustees and attorneys frequently overlook clients engaging in addictive behavior because they are unaware of the symptoms of the disease, don&rsq...
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...