DEAR TRUST OFFICER: What is this “impact” investing I’ve been hearing about? Can trust assets be invested for social impact? — SEEKING SOCIAL JUSTICE DEAR SEEKING SOCIAL JUSTICE: There is no simple definition of “impact” investing. One writer called it “a movement that aims to force social change by minimizing or eliminating investors’ exposure to […]
Read MoreCategory: Thursday Thoughts
Taxes and Living Trusts
Dear Trust Officer: How much can I save on my income taxes if I put my investments into a living trust? — Looking for Loopholes Dear Looking for Loopholes: Nothing. A revocable living trust that a grantor sets up to manage his or her wealth provides no income tax advantages. The trust’s income and capital […]
Read MoreEstate Plan Essentials
A surprising number of people have not yet attended to their estate planning. Perhaps this is because estate planning has become so much more complicated in recent years, even though the burden of taxes at death has been in decline. Estate planning now usually covers medical and financial decisions before the end of life, as […]
Read MoreMarket Volatility Makes a Comeback
For investors, 2017 was an unusually calm year. The S&P 500 stock index never changed by 2% in a single day, either up or down. There were only eight 1% days all year. 2018 is shaping up to be a very different story. CNNMoneyInvest reports that, in the first quarter, we’ve already had six 2% […]
Read MoreMany Hats in Trust Administration
Historically, the traditional trust had a trustee and beneficiaries. The modern trust may have a four, five, or more fiduciary and non-fiduciary positions that might include: administrative trustee, distributions trustee, trust protector, investment advisor, loan director, charitable designator, person holding a power to add beneficiaries, persons holding powers of appointment, person holding the power to […]
Read MorePerils of Deferring Estate Taxes
When a decedent’s estate includes interests in a closely held business, and it is large enough to incur federal estate taxes, the executor has the option of deferring the tax and paying it off in installments. In theory, this avoids having to sell the business to pay the tax. Selling a closely held business for […]
Read MoreGood News on Dividends
There has been quite a bit of publicity about companies sharing with workers the benefits of the corporate tax cut enacted last December, in the form of bonuses and additional retirement plan contributions. As it turns out, many are sharing the newfound wealth with shareholders also. More than a fifth of the companies in the […]
Read MorePaycheck Checkup
In January the Internal Revenue Service (IRS) released new withholding tables, based upon the changes for 2018 from the Tax Cuts and Jobs Act (TCJA). On February 28th the IRS released an online tool for calculating proper withholding after TCJA. The tool may be found at https://www.irs.gov/individuals/irs-withholding-calculator. The IRS called using this tool a “paycheck […]
Read MoreStock market volatility
Dear Trust Officer: What’s up with the stock market? Market indices went into correction territory in February, but have since recovered somewhat. Are we out of the woods now? —Nervous investor Dear Nervous Investor: The February stock price volatility was fed in part by a record level of margin debt. Some investors borrow against the […]
Read MoreRoth Conversions
Dear Trust Officer: Last year I converted my traditional IRA to a Roth IRA. However, now that I see the income tax that will be due, I’m not so sure it was a great idea. Can I change my mind? —Second Thoughts Dear Second Thoughts: You have until October 15, 2018, to re-characterize your 2017 […]
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