Our Blog

Performance Anxiety? A Look at Recent §162(m) Tax Reform.

Posted on April 25th

Effective January 1, 2018, the Tax Act amended the deduction limitations under Internal Revenue Code §162(m) for executive compensation. The specific changes include: (1) elimination of the “qualified performance-based” pay exception to the $1 million deduction limitation on compensation for “covered employees” and (2) expansion of the scope of §162(m) so that more companies and individuals are now subject to the limitation. These changes present several technical and/or practical challenges for companies subject to §162(m) as they await further IRS guidance on these issues.

Read More

Term and Permanent Life Insurance

Posted on March 11th

The permanent versus term life insurance debate has gone on for years, as if it were possible to say that one type of coverage is better than the other. But when it comes to insurance, one size doesn’t fit all.

Read More

What Happened to Tax Relief? Some States Look to Offset Limited SALT Deduction.

Posted on February 24th

To limit the appeal of an out-of-state move, states with higher income, sales, and/or property taxes are exploring ways to reduce the impact of the new limit on the federal income tax deduction for state and local taxes (“SALT”) on their individual residents.

Read More

Moving On: Changing State Tax Residency – Easier Said than Done?

Posted on February 16th

Each state has its own rules for establishing or terminating income tax residency; some use an objective test that counts days spent in the state, while others apply a subjective test that looks at the individual’s overall state connections. The issue becomes more complicated if a family retains ties with the old state, such as splitting residency between spouses or maintaining a child in a school...

Read More

Decoding Tax Reform:
Pass-Through Entities Part 1

Posted on February 2nd

The new tax reform legislation enacts a 20% income tax deduction based on the “qualified business income” of an owner of a business structured as a sole proprietorship or pass-through entity. If the deduction can be fully utilized, it will result in a marginal rate on qualified business income of 28% for a typical taxpayer and 29.6% for those in the top tax bracket. Yet, the deduction is subject to numerous requirements...

Read More

Alternatives to Cash on the Balance Sheet

Posted on January 10th

The need for cash in any successful business has always been strong. Cash may not be readily available today for financing sales or operational lines of credit. A lack of cash can add risk to your business because you can become more dependent on others.

Read More

Reciprocal Trusts – A Refresher

Posted on December 22nd

Irrevocable trusts are core legacy planning tools that serve a multitude of planning purposes, such as providing liquidity for estate expenses and financial security for the grantor’s family, including the lifetime support of a spouse (with indirect support of the grantor through spousal distributions). When spouses or other related parties create trusts for the benefit of each other, however, they must proceed cautiously to avoid violation of the so-called “reciprocal trust doctrine,” which can defeat the legacy planning benefits of the irrevocable trusts by “unwinding” the trusts and causing inclusion of the trust assets in the donor’s estate or attributing gifts made by others to the grantor.

Read More

Irrevocable Life Insurance Trusts & the Generation-Skipping Transfer Tax – 4 Things to Know.

Posted on November 20th

Impending tax reform and questions regarding the future of the estate and GST tax create substantial incentives for acquiring life insurance as a means of creating certainty and stability for a long-term trust plan. While tax law changes may come and go, the family legacy remains protected. Ensuring proper treatment of the trust for generation skipping transfer (“GST”) tax purposes, however, is critical to fulfilling these long-term legacy planning objectives.

Read More

Basic Estate Planning

Posted on November 8th

Regardless of your level of wealth, the failure to establish an estate plan can be detrimental to your family. A properly structured estate plan helps ensure that your family and financial goals are addressed during your life, if incapacitated, and after your death. The following provides an introductory discussion regarding essential planning individuals should consider, as well as an overview of lifetime gifting strategies and longterm trust planning.

Read More

Supplemental Life Insurance for Retirement Planning (SLIRP)

Posted on October 23rd

Supplemental life insurance for retirement planning (“SLIRP”) uses a life insurance policy structured to generate a tax-deferred cash flow during retirement. This technique may be extremely useful for those wishing to explore additional options to supplement traditional retirement income sources. Note, however, that all life insurance decisions should be made with a view toward death benefit protection needs.1

Read More

Powers of Attorney

Posted on September 17th

A power of attorney is a document that allows a person (known as the "Principal") to appoint another person or organization to handle his or her affairs while he or she is unavailable or unable to do so. The person or organization the individual appoints is referred to as an "Attorney-in-Fact" or "Agent."

Read More