Publications
The Corporate Transparency Act Part Two: The impact on family firms doing business in the US
The CTA requires existing and future companies, either formed or registered to do business in the US, to electronically file a report with the Financial Crimes Enforcement Network (FinCEN) of the US Treasury Department. These reports will file into an as-yet-nonexistent database of individuals who are direct or indirect beneficial owners of the reporting company, as well as individuals reporting the information for the reporting company. Companies must provide beneficial ownership information.
The Corporate Transparency Act: Changing the Way Families Doing Business in the United States Think About Confidentiality and Data
On January 1, 2024 – and family businesses that are either US entities or are registered to do business in the US need to make preparations for reporting under the Corporate Transparency Act or face fines and even potential jail time. For many, this act has flown under the radar, and family enterprise advisors should begin helping their clients understand the implications now
Avoiding (or at Least Deferring) Taxes on the Sale or Gifting of Art
If your client is an artist, collector, or inheritor of art, when it comes time to plan to sell or gift the art, sale at auction could result in half of the hammer price going to taxes and fees. Consider using the charitable status of organizations like the Center for Art Law or Charitable Trusts to help defer or avoid the tax.
Highlights Of the Art Market in 2022
Artprice.com has released its report, “The Art Market in 2022”. At 72 pages, it is a comprehensive look at the global art market, which is especially interesting to professional advisors to collectors of Art. International fine art auction turnover rose slightly in 2022, more than one million artworks appeared at auctions in 2022, of which almost two-thirds (65%) found buyers.
What Are the Duties of A Trustee?
Trust Agreement is the written document directing the management of the property, the payments of income and principal, and the scope and duration of the Trust. What are the Duties of the Trustee? The duties of the Trustee arise from the Trustee’s obligation to carry out the Grantor's intentions in creating and funding the Trust. There are five general duties of the Trustee – to be prudent, to carry out the terms of the Trust, to be loyal to the Trust, to give the Trust their personal attention, and to account to the beneficiaries of the Trust.
Don’t Blame Venture Capitalists For SVB's Collapse
Better decision-making processes, not railing against venture capitalists, are some of the lessons that should come out of the Silicon Valley Bank's collapse. From an estate planning perspective, the issue is not so much what the venture capitalists did, as much as how they came to the decision they did to advise their portfolio companies to withdraw funds from the bank. This is most likely because most venture capitalists who are controlling the funds are, at their core, entrepreneurs and use an action-based decision-making process.
The Biggest Issue You Have Never Heard of - Complying with the Corporate Transparency Act
Are you an owner of a business, of real estate, or of other property organized as a corporation, limited liability company, limited partnership or other entity created by filing with a Secretary of State office? If yes, then you and your company will need to file information with the Treasury Department on yourself, your company, and every beneficial owner of an interest in your company starting January 1, 2024. If you do not, you face a fine up to $10,000, up to 2 years in jail, or both for each failure to report. Get started now. how to comply with the strict requirements of the new Corporate Transparency Act. (CTA). Determine whether the CTA applies to you and your company and if so, what you will need to report
What Are Durable Powers of Attorney, Living Wills, Health Care Proxies, Declarations of Homesteads and Beneficiary Designation Forms?
Documents used in estate planning are Durable Powers of Attorney, Healthcare Proxies, Declarations of Homestead and Beneficiary Designation Forms, are in many ways ancillary to the Will and the Trust. It is important to have all of these documents up to date and properly coordinated with your estate plan.
Strategic Estate Planning for UHNW Individuals
The economic, environmental, social, and political situations are and will remain, uncertain. The federal estate tax reverts back to $5 million after 2025. States and the federal government are increasing income tax rates, and inflation erodes accumulated wealth. If you are an advisor to UHNW individuals, you should ask, will their estate plans work in the face of these uncertainties?
Art and Art Funds as Alternative Investments
Tax Planning for Stock Options
Stock options, that is the contractual right to buy the stock of an employer by an employee at a discount price, remains a popular way for companies to compensate employees without incurring an immediate financial cost, and for employees to receive some participation in the equity of the company without incurring immediate income taxes. If you have stock options, whether Qualified or Non-Quantified, is important to consider not only when you might exercise the options during your lifetime, but also how you might hold the options after your death.
Advising Investors And Collectors Of Gold
Investing in gold: Investors buy gold as a hedge against the rise of inflation, the fall of the stock market, or the change in the strength of the dollar. The two common ways of investing in gold is to hold gold indirectly, either through a fund that holds gold directly, for example, the Gold ETF (ticker symbol GLD); or hold stock in companies that mine and refine gold, such as Barrick Gold (ticker symbol ABX), or directly by buying bullion, either in the form of coins or bars
Why Having A Chief Of Staff For A Family Business Helps Avoid Disasters
The whole blame nor the whole praise for the failure or success of family businesses lies with the leadership or the collective family business organization. Leadership must understand that there are flaws within the family business organization; and, a leader is willing to undertake the institutional risks to fix those flaws.
Many times it requires more than just an Alpha leader but also a Beta leader, or a chief of staff from outside the organization, such as lawyer , accountant or other professional who is able to execute on the changes as they are needed
Yvon Chouinard And The Patagonia Purpose Trust— What Is It And Will It Work?
The Patagonia Perpetual Trust and the non-profit Holdfast Collective is, in my opinion, and elegant strategy to achieve Yvon Chouinard’s, and his family’s, objectives. Though the Purpose trust they will be able to ensure the succession of the management of the company and, hopefully, its profitable existence for decades to come as well as a high level of satisfaction for all of the stakeholders in the company. Through the Collective, those public policy and charitable purposes of Chouinard will benefit from the profits of the company. The only one who loses will be the government, since if the entire $3 billion value of the company was taxable Chouinard’s estate would owe $1.6 billion, or more if after 2025, in federal estate taxes.
Exiting The US: Procedure And Taxes
A number of US citizens talk of leaving the country, few understand how complicated and lengthy the process can be. Covered expatriates
The law covers people who leave and are either: 1) US citizens or, 2) long-term permanent residents who have held green cards for eight of the last fifteen years who give up their green card. Both are subject to an immediate "Exit Tax" on unrealized gains on their assets, both in the US and worldwide, including grantor trusts and future gifts to US citizens and residents.
Forbes Summer 2022 Article Summary
A summary of topics discussed in Forbes over the summer of 2022. Topics include; Cryptocurrency Taxation Changes, Expatriation, Mental Health in Estate Planning, and Trusts in the age of the Inflation Reduction Act.
What Is A Trust?
What is a Trust? A Trust is created when you transfer the financial benefit of property to a third party while keeping the legal ownership and control by appointing themselves, a financial institution or another individual as the Trustee. In short, a Trust is set up by a Grantor, managed by a Trustee, and benefits the beneficiaries. Separate people can hold each of these roles, or the same person can hold all three.
What Is A Will?
Why should you have a Will?
A Will makes the transfer of your personal and real property according to your wishes into an orderly and seamless process at your death. The Will can be as simple or as complex as your desires require; but in all cases, it should clearly define what your assets are, to whom you wish those assets to go and who you nominate to administer your estate. This is the short answer to the question as to what a Will is. If you have other specific questions, you should consult your estate planning professional.
Why Its Important To Write A Good Thank You Letter
What we were all told as children—it is important write a prompt thank you letter for any gifts received, even that eye-searing sweater you hide in the closet. This goes doubly so for charities who receive a donation. Donors should check whether the documents from the charity acknowledging their donation includes the amount of cash donated, a description of non-cash donations, whether there are any goods and services provided in return for the donation and what the estimated value of those goods and services might be.
Estate Planning During A Bear Market
In April of 2022, the stock market officially entered Bear Market territory. Bear Markets occur when the market declines more than 20% below a recent market high, in this case the 52-week market high. Why the market has declined has been attributed to many different factors, such as inflation, the energy shortages, the War in Ukraine, and so on – each contributing to investor’s fears and a desire by investors to cut their losses. In the short term, the volatility of the markets will remain. Estate planning is a long-term strategy, so what about the long term?