Articles Archives | Inlet Private Wealth

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…

Powers of Attorney – October 2019

A power of attorney is an incredibly powerful instrument that all people, regardless of wealth or status, need to consider. Powers of attorney generally fall into two types: healthcare and financial. A power of attorney for healthcare, also called a living will in some instances, directs what medical treatment and life-sustaining measures are to be…..

Do You Still Need An Irrevocable Life Insurance Trust? – September, 2019

You may have established an irrevocable life insurance trust (ILIT) as an integral part of your estate plan. An ILIT is a trust that is constructed to primarily hold a life insurance policy (or policies) on the grantor during the grantor’s lifetime. As the name indicates, an ILIT generally cannot be revoked, amended or modified…

The Importance of Post-Mortem Planning – August 2019

Post-mortem planning is a concept derived from the inability of estate planners to predict the future. Given how quickly tax laws and circumstances can change, it is unlikely that a planner will be able to anticipate every variable that an executor or trustee will face after your death.

Installment Sales to Intentionally Defective Grantor Trusts – July 2019

Estate planning with intentionally defective grantor trusts (IDGTs) is a well-established “asset freeze” technique that has numerous advantages, as described below. In this article, we will discuss the features of this technique and how it can be used for your benefit.

LIBOR Pains – July 2019

The London Inter-Bank Offer Rate (LIBOR) currently underpins approximately $400 trillion of mortgages, bonds, corporate loans and derivatives globally. To help put this number in perspective, the World Bank estimates the annual value of global economic activity, or GDP, at $80 trillion which is “only” one-fifth of this amount. LIBOR is set by a group…

Read More about LIBOR Pains – July 2019

A Guide to Institutional Trust and Custody Services – June 2019

A Guide to Institutional Trust and Custody Services. In contrast to a personal trust, where the grantor or creator of the trust is an individual or perhaps a family unit, an instituional trust is established by a corporation, partnership or other.

The Charitable Remainder Trust: A Versatile Tool for the Tax-Savvy Philanthropist – May 2019

The charitable remainder trust, or CRT, is the last bastion of a bygone era of charitable tax incentives. Some might say the CRT is the final, true charitable tax incentive available to those with the means to utilize it. The CRT remains one of the most effective ways for a philanthropic-minded grantor to provide an…

Trumped

2018 was a great year for the U.S. economy as unemployment fell to a 50 year low of 3.7%, gross domestic product grew more than 3% and with an assist from a reduction in the tax rate, corporate earnings grew about 22%.

South Dakota vs. Delaware Situs – Which is Better? – April 2019

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?

(R)aging Bull

The first three months for Inlet Private Wealth are now in the books and what a quarter it has been! We are incredibly grateful to our clients and the professional community for their support which has contributed to our assets under management growing to nearly a quarter of a billion dollars and a robust pipeline…