When it comes to effectively transferring assets, the Grantor Retained Annuity Trusts (GRAT) is a popular estate planning strategy that can reduce the tax liability. In this interview, three attorneys discuss the benefits of GRAT and the securities law case, Donoghue v. Smith, involving that strategy.
Trusts are valuable tools frequently used to transfer wealth within families, preserve and protect wealth, and reduce taxes. Understanding trusts and the role of the trustee is important for the people establishing trusts and the beneficiaries of those trusts. Building on this foundation, answers are provided to some questions about trusts and trus...
In times of significant change, it is easy to become paralyzed by uncertainty and indecision. However, such changes are inevitably accompanied by new opportunities. In this Wealth Planning Outlook, insights—and action items—are provided on the most vital planning issues amid epochal technological innovation in artificial intelligence (AI); an uncer...
Effective tax and wealth planning can be a challenge, especially when there is a possible recession, elevated inflation, rising interest rates, and geopolitical strife. With this guide, you have the planning information and resources to help you make the right moves to plan for your family’s future and manage your wealth. In addition to insights on...
Generally, parents lose access to their child’s health and financial information once the child becomes a legal adult at the age of 18 unless certain steps are taken. To this end, here is a list of seven essential legal documents for parents to complete when their children turn 18 and before they go to college or leave home for ...
Following the enactment of the Corporate Transparency Act (CTA), the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) explained that the CTA and FinCEN regulations "would help protect the U.S. financial system from illicit use by making it more difficult for bad actors to conceal their financial activities through ent...
As families and their advisers begin to prepare for U.S. entities in their succession planning structures to comply with the Corporate Transparency Act (CTA), consideration should be given to U.S. holding companies and the requirement to report a business street address. This "Supplementary Information" section of the final regulations issued by th...
When the Tax Cuts and Jobs Act (TCJA) was passed in late 2017, the “sunsetting” of many of the provisions in 2026 seemed far away. Among those of benefit to high-net-worth individuals was the increasing of the gift, estate and generation-skipping transfer tax exemptions to $11.18 million per person ($22.36 million for married couples) for 2018. The...
Being asked to oversee a family trust is a big deal. It’s a huge responsibility, and one you may not feel prepared to accept. Even if you’ve participated in or been exposed to the world of trusts, you may not have the knowledge or skills to be an effective trustee right now. The first step in deciding whether to accept this role is to learn more ab...
While it might seem like a great position to hold a concentrated position in a low-basis stock that has appreciated over time, it poses several challenges related to investment risk and taxes. Here are some charitable options for lowering your risk while doing the most good with your gains, whether that means giving to a worthy cause, gifting to a ...
When families gather at their cottages or vacation properties, the senior generation might think how nice it would be for these multi-generational gatherings to continue after they pass. But before designing an estate plan to address the future generations’ continued use and enjoyment of this property, there are two important questio...
Once a family has made a decision to pass the ownership of family cottage or vacation property to the next generation, you will need to give thought to how that ownership will be held. There are basically three options for the form of ownership and use of a cottage by multiple households of a family: co-tenancy, a trust, or a limited liability comp...
Once you have decided to pass the family vacation property to the next generation, and you have chosen the ownership form you want to use, the last step in preparing for the transfer is to create an agreement that spells out the use and maintenance of the property and governs a family member’s exit from ownership (if that becomes necessary). Learn ...
There are few matters of wealth management more fraught with tension than estate planning. Preparing to transfer wealth and assets to your heirs can involve emotions, family dynamics, legal structures, and a host of major and complex tax implications. The challenges around succession planning are also exacerbated because of the so-called Great Weal...
In collaboration with a consortium of interested parties, including Holland & Knight attorneys, the Tennessee legislature has made significant strides toward securing and maintaining the state’s status as one of the leading jurisdictions for trust administration. These efforts have resulted in more consequential improvements to the Tennessee’s ...