How you can help hedge fund managers transfer and protect their wealth. [ more... ]

How to use valuation clauses when transferring hard-to-value assets. [ more... ]

Exploring the ongoing turf battle between taxpayers and the IRS over FLPs. [ more... ]

Tax-efficient techniques help the wealthy transfer their homes to the next generation. [ more... ]

As the federal estate tax exemption climbs and as the 2010 repeal approaches, many families and their advisors are relieved that $2 million to $7 million of assets can be inherited free of federal estate taxes. However, residents of most states must still plan for looming and often substantial, state death taxes. [ more... ]

Will passing on your wealth be a blessing or a curse to your family? Watching the antics of spoiled rich kids is daily entertainment for much of America’s television audience, and most of us are so far removed from their world, we have little empathy for their problems. But imagine dealing with a self-image as reflected by the paparazzi and living under the microscope of a press corps eager to broadcast your every misstep. Unless you keep a low profile, you risk becoming the family laughing stock. [ more... ]

A home in the south of France, a seaside condo in Cabo San Lucas, or a ranch in Argentina—this is typical fare for the wealthy client, and it adds complexity to tax, estate, protection and cash management planning. As an advisor, it’s hard enough to keep up with U.S. tax and legal developments, without adding international issues to the mix. But your client will need experts on both sides of the border who are willing to communicate and coordinate with each other.
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Nine new millionaires are minted every minute in the United States, according to figures from the Federal Reserve. There are now nine million households with a net worth of $1 million or more, including many households with $5 million to $25 million.

Many of these new millionaires are baby boomers. Like the Depression-era generation, many of today’s affluent boomers are thinking about how they can use their wealth to leave a financial legacy for their families. They are gravitating to dynasty trusts to accomplish what are often multiple-generation wealth transfer goals. [ more... ]

This is a story about two paintings and the Internal Revenue Code (the “Code”). The paintings were done by the same artist, painted during the same period, and are of comparable value. The owner of the first painting was able to fully deduct the costs of upkeep, climate control, security and insurance on his painting, as well as travel and other expenses pertinent to acquiring the painting on his federal income tax return, while the other owner incurred the same costs but received none of the same tax benefits. What is more, if the first painting were sold at a loss, its owner could deduct the loss for tax purposes, while the owner of the second painting would receive no benefit from the loss. The reason for such disparate treatment under the Code? The first owner was an Investor while the second owner was a Collector.
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The red-hot art market has been the subject of newspaper headlines all over the world. Fueled by a growing worldwide demand and, in relative terms, fixed supply, prices continue to soar at record pace. Even yet-to-become-famous contemporary artists are selling their work at never-before seen prices. Sotheby's and Christie's have estimated February 2007 profits of approximately $400 million. Art collecting has reached fever pitch and wealthy estates have become increasingly concentrated in artwork. [ more... ]