Offshore banking is a popular choice for individuals who are accumulated significant assets. Keeping these funds in countries such as the Cayman Islands, Switzerland, or the British Virgin Islands can provide more protection than the U.S. domestic banking system. This is due to the more favorable tax laws in these jurisdictions. There are additional reasons for offshore banking in specific countries as they often offer better business environments, beneficial legal […]
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As a high net worth individual, creating an estate plan is a complex and individualized process that takes both financial and personal goals into consideration. In addition to naming beneficiaries and putting protections in place to reduce estate taxes, your estate plan is also an opportunity to build a more personal legacy for your children and grandchildren. A thoughtfully curated estate plan can transfer more than inherited wealth to future […]
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People often make the mistake of thinking they do not need an estate plan until they have reached a certain age or have a certain amount of money in the bank. This simply is not the case as there are documents which you are well-advised to have in place as early as when you gain independence from your parents in your 20s. The complexity of estate planning varies by age […]
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The substantial majority of millionaires have earned their money through entrepreneurial pursuits rather than through inheritances and protecting their money for the present and building a legacy for future generations. Some have a misconception that the ultra-rich do nothing but spend money. In reality, many are frugal, choosing instead to place their funds in investments that will continue to grow. Common investment strategies favored by millionaires and billionaires include putting […]
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Have you heard the stats regarding passing down wealth? The data is actually quite concerning, particularly for affluent investors. By most accounts, wealth barely lasts for up to 3 generations for most HNWI. The latest research indicates that in too many instances 70% of wealth is lost when it’s transferred from the wealth-generating generation to the next. From there, an estimated 90% is lost after that. Why does this happen? […]
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President Biden’s budget proposal includes a number of provisions that would enact campaign promises. If passed, it will result in key 2022 tax changes of interest to those holding significant wealth. Specifically, the proposal aims to end some of the exemptions and deferrals instituted in the Tax Cuts and Jobs Act, many of which applied to higher net worth individuals. One potential law, Build Back Better, is off the table […]
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In May of 2021, the U.S. Treasury released, “General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals.” Also known as the “Green Book,” this document provides a detailed account of the Biden Administration’s proposed tax changes beginning in 2022. With regard to tax planning for HNWI (High Net Worth Individuals), the proposal includes plans to tax the wealthy at higher rates beginning either January 2022 or possibly retroactively to […]
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Setting up an offshore account is one way to protect your assets from creditors and frivolous lawsuits. Establishing an offshore bank account in certain countries, such as Switzerland and the Cayman Islands, is also one of the tax strategies utilized by wealthy folks looking to avoid the heavy taxation system in the U.S. Account holders are required to obey U.S. tax laws by reporting information about the account and declaring […]
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When a high net worth individual (HNWI) becomes involved in charitable giving their goals are not limited to chalking up a gift tax deduction or preserving their legacy. One of the most compelling reasons why HNWI donate money is to make a difference in the world. They specifically seek out causes where the money they give will transform into actions that can be seen and felt. In order to qualify, […]
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One of life’s greatest pleasures for a grandparent is having the means to provide a nice inheritance for the next generation and beyond. Passing wealth to grandchildren, while gratifying, must be carefully planned to avoid the beneficiaries losing a large percentage of the gift to estate taxes. For example, if you choose to leave your entire estate to your children, with the expectation that your grandchildren will eventually benefit, before […]
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