Category Archives: Advice and Tips

Finseca (AALU) – 🔴 BREAKING: Tax Increase Details

September 13, 2021— Yesterday, Finseca got hold of a list of tax increases planned to pay for the $3.5 trillion dollar ‘soft’ infrastructure package. This is an early document, and we expect changes before the bill reaches President Biden’s desk – candidly, it could change as soon as tomorrow.

To see the current details, click here.

View Post

Finseca (AALU): “An Honest Look at Saving Taxes by Relocating from California or New York”

Finseca_logo

 

 

“Individuals and businesses in high tax jurisdictions have been expressing unprecedented interest in relocating to states with more manageable tax regimes. This is especially the case with business owners looking to sell their businesses. But whether this trend rises to the level of an “exodus”—as many characterize it—is up for debate. The impetus for moving typically runs deeper than just taxes, though taxes often are the proverbial final straw. This article analyzes tax issues individuals and businesses should consider when evaluating whether to relocate from California or New York.”

To read the full article, click here.

View Post

“Do You Really Need to Fly?”

NYTimes

 

All of us are use to face-to-face meetings.  We have always believed that they are essential.  Now, a year into the pandemic, I wonder what we think now?  An interesting Op-Ed in today’s NY Times.

“How many of those trips would have been unnecessary if I’d only Zoomed?  My estimate runs somewhere between most and all. Aviation is a modern miracle; it is also expensive, annoying and environmentally costly. Now that videoconferencing has been shown to be an acceptable way to get work done, there’s no reason to quit it when the virus is gone.  For years, it has been a truism that face-to-face meetings are far better than videoconferencing, for obvious reasons. They foster deeper relationships and perhaps better group decision-making.  “I grew up in a sales culture that said, ‘You want to close a deal, you go get in front of the client,’” said Darren Marble, an entrepreneur based in Los Angeles who used to travel to New York every other week. When the pandemic hit, he didn’t know how he’d do business. “Working at home was antagonistic to everything I’d learned over my career,” he said.  But in the Zoom era, everything worked out. In fact, Marble told me, 2020 was a “breakout year”; his firm, Crush Capital, recently raised more than $3 million from over 30 investors, all through Zoom. “Rapport is overrated,” Marble said.”

To read the full article, click here.

View Post

NY Times: “Tales from two sons whose fathers died without a succession plan”

Tales from two sons whose fathers died without a succession plan.

“Financial advisors worth their fees will always discuss the need for succession plans with clients who own businesses.  But that doesn’t mean business owners will listen….People just don’t want to do it.”

To read the full article, click here.

View Post

Zooming Into a New Age of Trust Situs

“The novel coronavirus has led many people – trustees, trust beneficiaries and advisors alike – to relocate their primary workplace or residency for the time being, sometimes across state lines.  An irrevocable trust’s situs, or place of administration, may be impacted as this migration continues through the pandemic and likely into the future.  The results may be intentional or inadvertent, with each having its own benefits and risks that should be evaluated both opportunistically and out of an abundance of caution.”

To read the full report, click here.

View Post

AALU: Post-Mortem Liquidity Planning: A Fiduciary’s (Limited) Toolbox

“In the absence of life insurance, options for fiduciaries to generate needed liquidity for estate taxes and expenses may be limited, creating additional hurdles for estate administration and post-mortem planning.” 

To read the full report, click here.

View Post

The §6166 Estate Tax Deferral for Closely Held Business: Q&A’s

“In business succession planning, a §6166 deferral election may provide a powerful post-mortem planning tool to help minimize the initial strain on the estate and prevent a forced sale of the estate’s business interest. However, the election’s complex administrative and compliance requirements and the potential for payment acceleration make it an insufficient substitute for lifetime succession planning.”

To read the full report, click here. 

View Post

Watch Your Step – Fiduciary Pitfalls for Trustees of Irrevocable Life Insurance Trusts


“Sample cases targeting trustees vividly illustrate unique fiduciary challenges in terms of trust administration and asset management, including for irrevocable life insurance trusts (“ILITs”).  The growing complexity of life insurance products and the potential for increased gifts in the next several years can make ILIT administration far more complicated than anticipated, particularly for non-professional trustees.”

To read the full report, click here.

View Post

Buy-Sell Basics – A Brief Introduction

“Buy-sell arrangements (“BSAs”) address how the business or other business owners can “buy-out” an owner’s interests after a specified triggering event, such as death.  To be effective, the terms and structure of a BSA must be tailored to the unique needs of each business and business owner; there is no “one size fits all” form.  BSAs also should take a comprehensive approach to buy-outs, addressing not just an owner’s death, but also disability, divorce, and bankruptcy, among other events.  Business valuation and buy-out funding are also critical to a BSA’s success.”

To read the full report, click here.

 

View Post

Flipping the Script: Nongrantor Trusts with Grantor Trust Benefits – Can It Be Done?

“With careful planning, donors of nongrantor trusts can achieve benefits similar to those provided by typical grantor trust provisions without triggering grantor trust status.”

To read the full report, click here.

View Post