Articles

The Spirit of Giving – April 2021

One of the greatest achievements in life is the ability to give to others. What makes it even better is when you can receive a tax break by doing so. Distributing one’s wealth in the most tax-advantageous way during life, as well as at one’s death, is a key financial planning consideration. Following is an…

Estate Planning When Times Are Changing – March 2021

It is often said that there are two absolutes in life: death and taxes. Add another absolute to that list…..change. Now that the 2020 presidential election is behind us, many estate and tax law practitioners are anticipating broad tax law changes proposed by President Biden during his campaign. Experts are considering these potential changes to…

Tips for Effective Estate Planning Meetings – February 2021

Tailor Your Meeting — Planning for transfer of wealth, incapacity, and an execution of your estate plan can be a significant challenge. However, you can look to your trusted advisor(s) for guidance when it comes to defining and executing your estate plans for future generations. It is critical that a trustee, or directed fiduciary, understand…

Managing Investments for Trust Accounts – January 2021

Managing investments for trust accounts is not a simple task. Investing trust assets requires the trustee or directed fiduciary advisor to consider and balance several factors in order to carry out the trust’s purpose in the best interests of its beneficiaries. Additionally, there are several accepted principles that affect how the assets are to be…

Discretionary Distributions: A Trustee’s Most Difficult Decision

During the drafting of a trust, a frequently overlooked provision is also perhaps one of the most important ones to consider, discretionary distributions. What is a discretionary distribution? Who makes them and how? Most trusts provide named beneficiaries with net income for their lives or a term of years. They often include a provision…

How To Read a Will or Trust – November 2020

Anyone who has read a will or trust knows they are full of legal jargon that is, at least initially, difficult for most laypeople to grasp. The reality is that they are not that complicated after some time is taken to read them a few times and understand the common terms. What to look for…

Are You Effectively Using the Trust Protector Role? – October 2020

A Trust Protector is an independent person appointed under a trust instrument by the grantor (creator) of a trust with responsibilities and powers regarding very specific aspects of the trust. Although the concept of a Trust Protector (previously referred to as “Trust Advisor”) has been a part of U.S. trust law for many years, it…

Guarding Your Legacy – Asset Protection Strategies – September 2020

Imagine that you have spent a working lifetime accumulating a significant level of assets in order to leave a financial legacy to your loved ones. Perhaps you built a substantial and respected medical practice, a thriving manufacturing business, or a prosperous farming ranching operation Consider also that this legacy could be impaired or lost altogether…

Reasons and Options for Charitable Giving – August 2020

Donating to the causes you care about not only benefits the charities themselves, it can be deeply rewarding for you as well. Millions of people give to charity on a regular basis to support causes they believe in as well as for the positive effect it has on their own lives. There are a number…

2020 Q2 Quarterly Newsletter – The Great Lockdown

After free-falling over 33 percent from its peak, the market has since recovered nearly all these losses thanks to an increase in confidence surrounding the reopening of our economy. Year to date, the S&P 500 is now only down 2 percent, while the technology-heavy NASDAQ is up over 16 percent. This puts the NASDAQ’s advantage…

Aligning Tax-Deferred Retirement Accounts with Estate Planning – June 2020

During the past 30 years, the traditional pension plans that were historically important to the American workforce post-WWII have largely gone away and been replaced by the individual retirement account. Today, a substantial portion of the wealth possessed by Americans consists of tax-deferred retirement accounts such as traditional IRAs, 401(k)s and 403(b)s, profit-sharing plans, stock bonus…

Estate Planning When Estate Tax is not an Issue: Planning for Estates under $10 million – May, 2020

The primary focus of estate planning is often on tax-saving strategies: however, as federal estate tax laws continue to increase federal, estate, gift and generation-skipping transfer tax exemptions year after year, it is important to point out that there are many other valuable reasons why estate planning should be a priority. Below is a summary…

South Dakota vs. Delaware Situs – Which is Better? – April 2020

The topic of South Dakota as a favorable trust situs often leads to a discussion comparing the virtues of South Dakota versus Delaware. Which jurisdiction is better? Why South Dakota? Since abolishing the rule against perpetuities in 1983, South Dakota has worked diligently to become the most trust-friendly situs in the nation. The following table…

Novel Times – April 2020

After making a record high on February 19, 2020, the equity markets have since fallen by as much as 35%. This decline into a bear market has occurred at the fastest pace in history. New records for volatility have been made with the average daily price change of 5.2% during March exceeding the previous record…

Prudent Investor Considerations – February 2020

The year was 1830 and the case was Harvard College v. Amory. In the case, Harvard College alleged that the trustees had willfully made high-risk bets in order to benefit the deceased man’s widow rather than establish a standard source of income. As a response, Judge Samuel Putnam formulated the Prudent Man Rule, the earliest…

To IDGT or not to IDGT – January 2020

Shakespeare gives us all some friendly advice, “Neither a borrower nor a lender be/For loan oft loses both itself and friend” (Hamlet Act 1, Scene 3). Perhaps Shakespeare is giving us all timeless advice, but maybe, if structured properly, lending money could be a good estate planning tool. One way to lend money/stock/real estate to…

2020 Visions – January 2020

As a new year and decade begin, the election in 2020, negative interest rates, aging demographics, and the growth of passive investing will likely have the biggest impacts on the financial markets going forward: The Election For the past 40+ years, we have lived in a world where business has become more global while politics…

Fiduciary Income Tax Basics – January 2020

Income tax plays a critical role in day-to-day investing, yet for many the concepts can get disorganized. What are the key issues that drive fiduciary income taxation, and how can we best tackle the concepts for optimal results? First, we need to start with some basics.

Charitably Inclined: Donor Advised Funds – December 2019

Since 1931, donor-advised fund (DAFs) have been offered by local community foundations and more recently have become available through numerous broker-sponsored charitable gift funds. They are something akin a marriage between a private foundation and a mutual fund. Generally, a DAF is a separately identified fund or account that is maintained and operated by…

How You Can Benefit from Deferred Compensation Plans – November 2019

Why Deferred Compensation Plans? Sheltering your income can prove a beneficial task. Many employers offer creative, cutting-edge benefit programs to attract potential employees. It’s important to know what the different plans are and how a trusted advisor’s guidance can help you determine what works best for your financial situation. While deferred compensation plans…

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