Publications
Year-End Tax Planning Considerations for Families with Property Interests in the US
The end of the year presents a strategic opportunity for family enterprise advisors to guide their clients in reviewing their wealth and estate planning strategies.
This is the perfect time for clients to reflect on their financial objectives and align them with their current and future financial commitments. Whether their interests lie in philanthropy, planning for generational business transitions, or navigating surplus wealth goals, effective year-end planning can help optimize their financial outlook.
Yvon Chouinard And The Patagonia Purpose Trust— What Is It And Will It Work?
The Patagonia Perpetual Trust and the non-profit Holdfast Collective is, in my opinion, and elegant strategy to achieve Yvon Chouinard’s, and his family’s, objectives. Though the Purpose trust they will be able to ensure the succession of the management of the company and, hopefully, its profitable existence for decades to come as well as a high level of satisfaction for all of the stakeholders in the company. Through the Collective, those public policy and charitable purposes of Chouinard will benefit from the profits of the company. The only one who loses will be the government, since if the entire $3 billion value of the company was taxable Chouinard’s estate would owe $1.6 billion, or more if after 2025, in federal estate taxes.
The Coming Storm
Yesterday, May 20, 2021, Senator Bernie Sanders (I-VT) introduced S. 994, the "For the 99.5 Percent Act," to "reinstate estate and generation-skipping taxes, and for other purposes.". This Act amends the Internal Revenue Code by increasing the gift and estate tax rates from 40% to a high of 65% and decreasing over the basic exclusion amount from $10 million, adjusted for inflation to now over $11.7 million, to $3.5 million with no adjustment for inflation .
Tactics To Reduce Your Capital Gains Tax And Your Estate Tax
To those who have highly appreciated assets and expect their estates to exceed $3.5 million, is to be better educated about these tactics and their advantages and disadvantages especially with the turbulent environment for tax laws in the coming years.