The 2010 Tax Relief Act effectively postponed the major makeover of the U.S. tax code that many were bracing for as 2010 drew to a close. This reprieve, however, ended after 2012 with the American Taxpayer Relief Act of 2012. That means investors—who have not seen a major tax increase in nearly two decades—need to start thinking about taxes in a whole new way.
Whether part of a pre-IPO company, building on an established career, or nearing retirement, corporate executives have very specific and exacting wealth management needs.
High-income taxpayers are now paying more into Medicare as a result of The Patient Protection and Affordable Care Act and the companion Health Care and Education Affordability Reconciliation Act of 2010 (together, the health care reform legislation). This article summarizes these changes, which apply to wages received in taxable years starting after December 31, 2012.
Today's economic challenges understably have many investors are confused and anxious. For private investors, the challenges are even more complex. They must make critical investment and planning decisions within a regulatory and tax environment that continues to change. The question is, “Can investors move forward in the midst of all this volatility and uncertainty?” The answer is yes.
The success of a closely-held business often can be measured by the extent to which an exit strategy is effectively planned and executed. Whether the business owner sells, closes, or transfers the business to family, the termination of this relationship is one that must be carefully considered well in advance of the event.
Individual Retirement Accounts (IRAs), pension plans and other forms of retirement accounts increasingly comprise a major part of a married couple's net worth. During a divorce, they may also provide an attractive source for funding a spouse's share of proceeds in cases where the rest of the marital estate is largely illiquid.
Should investors pursue protection from market volatility or embrace the opportunity to capitalize on market weakness? Jeff Mortimer examines how to approach market turbulence in his March Investment Update.
With the fiscal cliff behind us, it is now time to embrace and understand the American Taxpayer Relief Act (ATRA). While the provisions of this act have been clearly established, people may not have fully realized the impact it could or will have on individual or family wealth. Wealth strategist Joan Crain outlines the key factors to consider now that ATRA has been defined, as well as the impact these factors may have and suggestions on applying them while continuing to manage wealth successfully.
Is housing the new economic MVP? This month's Investment Update takes an in depth look at housing, real estate, and how they function as both economic indicators and influencers.
Life insurance is frequently used as a tool for estate planning, and proceeds often are used to provide liquidity to pay estate taxes, settle debts, fund gifts to charity and transfer wealth to heirs. The funds may be included in the insured’s taxable estate if the insured or his or her spouse is the owner of the insurance policy. This can lead to a substantial increase in the size of the insured’s estate and tax burden. An Irrevocable Life Insurance Trust (ILIT) provides a technique for removing life insurance proceeds from one’s taxable estate while also arranging for the distribution of the proceeds.
In the current low interest rate environment, wealthy families may consider intrafamily loans as an effective wealth transfer technique. Although under-utilized in recent years, intrafamily loans can offer a way to transfer money to the next generation.
The current low interest rate environment affords a number of effective techniques for transferring significant wealth to the next generation with minimal gift consequences.
John Flahive provides his thoughts on what contributed to the bond market’s performance and what is in store for 2013. Looking ahead, John expects a similar economic backdrop of slow growth, muted inflationary pressures and a modest increase in interest rates.
The American Taxpayer Relief Act of 2012 provides two ways for taxpayers to take advantage of the extension of the $100,000 IRA charitable rollover for 2012, despite the fact that the law was enacted in 2013.
Forget Ozzie and Harriet. The typical American family is not very typical anymore. These days the definition of family has expanded to accommodate the circumstances of divorce, remarriage, multiple sets of children, adoption, surrogate mothers, non-U.S. citizen spouses and same-sex relationships. The most recent U.S. census showed that married couples make up only 53% of all U.S. households, down from 71% in 1970, while some 33% of American children are now being raised outside the traditional two-parent family.
Many of the laws governing estate planning, however, have been slow to adapt to these societal changes. As a result, people developing their estate plans need to pay close attention to how or if the existing rules fit their particular family situation.
Since January 1, 2010 high income earners have been able to participate for the first time in the tax-free asset growth of a Roth IRA by converting from a traditional IRA. A Roth conversion may provide significant tax savings for the right individual under the right circumstance.
This paper is intended to provide an overview of the opportunities and challenges of gift and estate tax planning for multinational families from a U.S. perspective.
Sam Valtenbergs, senior quantitative research/analyst at Mellon Capital, offers his thoughts on the looming adjustments to U.S. fiscal policy, noting that the risk associated with the fiscal cliff is not outsized compared to an unexpectedly hard landing in China or increased troubles in the Euro area.
This material has been authored by an affiliate of BNY Mellon Wealth Management. The views expressed by an affiliate may be different from the views of BNY Mellon Wealth Management.
How frequently do municipal bonds default? Why does bankruptcy occur? How do issuers view the pros and cons of filing? The issues surrounding municipal defaults and bankruptcies are subject to change, particularly as their frequency increases, so it’s useful to review some of the statistics.
Equity markets rose during the third quarter, despite continuing concerns about the U.S. economy, the fiscal cliff, debt problems in Europe and a slowdown in China.
With the presidential election nearly upon us, many pundits are trying to predict the outcome. As wealth managers, our job is different: to provide sound advice. Read our latest Investment Update.
Global equity markets contracted in the second quarter amid concerns over the European debt crisis and indications of an economic slowdown in the U.S. Fixed income markets benefitted from investors’ flock to safety and the yield on U.S. Treasuries hit a new record low.
The combination of the lingering European debt crisis, a slowdown in China and fiscal policy uncertainty in the U.S. has created a cloud of uncertainty for investors as we head into summer.
News reports continue to highlight extreme cases of financial hardship for cities, towns and states across the country. However, upon a broader and more reflective examination, the majority of municipalities appear to be weathering current economic conditions. We continue to believe that the municipal bond market holds opportunities for investors.
Historically, parents addressed their fear of “affluenza” either through constructing very restrictive trust provisions or by giving much of their wealth to charity. However, there is an alternative—a flexible family trust—designed to provide protections and create opportunities for future generations without supporting an unearned lifestyle.
In family governance, communication, family values and philanthropy should be continuously linked to a family's wealth planning. This process can help to foster family continuity, harmony and increased multigenerational wealth.
BNY Mellon's fiduciary officer, Susan Hartley, provides her perspective on the advantages and disadvantages of a family office becoming a private trust company for Trusts & Estates magazine online.
Whether a third-generation business or a start-up, it is never too soon to prepare for an ownership change. Thinking ahead means coming out ahead in the long run. There are several practical steps a business owner can take throughout an enterprise's lifecycle to ensure success when a transfer finally occurs.
The general creditworthiness of the state of California is an ongoing concern for its investors. This summary provides some insights for those of our clients with investment interests in California.
It is not unusual for a corporate executive to grow his or her wealth, yet lack an overall wealth management plan. However, it is more important than ever to have a plan and keep planning through every stage of one's career.
In trust planning, one of the most important decisions to be made is the appointment of a dependable trustee. Many people consider a trusted family member or a close friend for the role. Family members and friends, however, rarely have a full understanding of the issues and responsibilities involved in the process. In many cases a corporate trustee adds a depth of resources and objectivity that an individual could not provide.
In discussing his February 2012 Economic Update, Dick Hoey points to three key themes and three worries he has as the global economy moves into the new year.
A Revocable Living Trust provides an effective way to manage one's assets during life and transfer those assets at death. Assets held in a revocable trust are considered part of the donor's estate for estate tax purposes, but are not included in the donor's probate estate.
For individuals willing to assume additional risk in their fixed income investments, the BNY Mellon Municipal Opportunities Strategy may be an attractive solution that has the potential to provide enhanced tax-sensitive total returns.
Last year was another incredible year for the fixed income markets, where all major dollar-denominated fixed income sectors produced positive total returns.
Faced with a rapidly changing planning landscape, practitioners and clients need to think about estate planning as a continuing process in which planning vehicles are designed to accommodate entrances and exits and allow for mid-course corrections.
Jack Malvey, CFA, chief global market strategist for BNY Mellon Asset Management, discusses the 're-sculpting' of the global financial system.
This material has been authored by an affiliate of BNY Mellon Wealth Management. The views expressed by an affiliate may be different from the views of BNY Mellon Wealth Management.
BNY Mellon's Chief Economist Richard Hoey considers the prospects for the global economy in 2012. He believes global monetary easing that is occurring around the world will likely drive a global growth recession, instead of a full-scale recession in the coming year.
James Harries, head of Global Equity Income Strategy for Newton Investment Management Limited, writes about investor sentiment in response to policymakers' accomodative policies.
This material has been authored by an affiliate of BNY Mellon Wealth Management. The views expressed by an affiliate may be different from the views of BNY Mellon Wealth Management.
Raj Shant, investment leader European Equities at Newton Investment Management, LLC discusses the changes afoot in Europe and the attractive buying opportunities being created.
This material has been authored by an affiliate of BNY Mellon Wealth Management. The views expressed by an affiliate may be different from the views of BNY Mellon Wealth Management.
Alexander Kozhemiakin, head of emerging markets strategy and senior portfolio manager at Standish offers several reasons in support of a favorable outlook on emerging markets and emerging markets debt in 2012.
This material has been authored by an affiliate of BNY Mellon Wealth Management. The views expressed by an affiliate may be different from the views of BNY Mellon Wealth Management.
Jason Pidcock, investment leader at Newton Investment Management Limited, discusses the Chinese economic slowdown and 2012 outlook for the Asia Pacific ex Japan region.
This material has been authored by an affiliate of BNY Mellon Wealth Management. The views expressed by an affiliate may be different from the views of BNY Mellon Wealth Management.
Kirk Henry, senior managing director and senior portfolio manager at The Boston Company Asset Management, LLC provides outlook over next 12 months for emerging market equities.
This material has been authored by an affiliate of BNY Mellon Wealth Management. The views expressed by an affiliate may be different from the views of BNY Mellon Wealth Management.
Francis Sempill, investment manager at Walter Scott, discusses why companies with financial strength and strategic advantages may be how investors can create wealth over the long term in up and down markets.
This material has been authored by an affiliate of BNY Mellon Wealth Management. The views expressed by an affiliate may be different from the views of BNY Mellon Wealth Management.
Senior Research Analyst Andrea M. Clark, CFA, revisits her July 2011 White Paper titled, 'The European Debt Crisis: Newly Dangerous, but Ultimately Not Crushing,' and proposes solutions to provide the troubled region with short-term cover while laying the groundwork for long-term economic reform and growth.
This material has been authored by an affiliate of BNY Mellon Wealth Management. The views expressed by an affiliate may be different from the views of BNY Mellon Wealth Management.
Ongoing market volatility and uncertainty over U.S. tax policy have many investors stalled in their wealth transfer planning. This presentation offers insights to help clients move beyond anxiety and confusion and be able to take advantageous steps—even in the current environment.
Partnering with our clients' advisors helps to ensure our clients receive the most effective and complete wealth management services. In support of this partnership, we frequently share our considerable research and expertise with our clients' advisors. Justin delivered this presentation at the 46th Annual Heckerling Institute of Estate Planning on January 11, 2012 and the topic has been presented numerous times to members of the advisor community. This presentation is not intended to constitute legal, tax, investment or financial advice. The information discussed herein may not be applicable to or appropriate for every investor and should be used only after consultation with professionals who have reviewed your specific situation.
As market and geopolitical events, global fiscal pressures and ongoing uncertainties continue to threaten the pace of economic recovery, it is clear that this decade is one of the most critical ever for investors. Investors need to navigate dramatically altered terrain while simultaneously searching for opportunities or potential pitfalls.
Many portfolios are simply not built to withstand the forces that are shaping today's economic and market environments, from geopolitical events to extreme volatility. The fact is that circumstances have changed dramatically, but most portfolios have not. What's more, these daunting economic and market conditions are likely here to stay for the foreseeable future.
Large estates generally may be subject to estate and inheritance taxes following the death of the owner. For many wealthy individuals, life insurance offers a way to cover tax liabilities when used as part of a comprehensive estate planning strategy.
Investors today are cautious and doubtful, questioning not only the individuals who advise them but also the financial system as a whole. Yet the challenges of the market environment and the crosscurrents ahead make the right help—including sound ideas, dynamic strategies and effective plan implementation—more important than ever.
Investors today are cautious and doubtful, questioning not only the individuals who advise them but also the financial system as a whole. Yet the challenges of the market environment and the crosscurrents ahead make the right help—including sound ideas, dynamic strategies and effective plan implementation—more important than ever.
Paul Hatfield, chief investment officer and Simon Perry, managing director at Alcentra, make the case for investing in secured bank loans, arguing that the highest new issue credit spreads and strongest deal structures in over a decade offer historic opportunities to seek absolute returns in high single digits.
This material has been authored by an affiliate of BNY Mellon Wealth Management. The views expressed by an affiliate may be different from the views of BNY Mellon Wealth Management.
Senior Research Analyst Andrea M. Clark, CFA, analyzes Europe's sovereign debt crisis, outlines possible solutions, makes conclusions about the future of a troubled single currency, and discusses the resulting investment implications.
This material has been authored by an affiliate of BNY Mellon Wealth Management. The views expressed by an affiliate may be different from the views of BNY Mellon Wealth Management.
Almost everybody enjoys a good comeback. In sports, it is always exciting to watch an athlete or team whose popularity has faded return to glory. In many ways, the bond market's performance in the first half of 2011 can be viewed as an impressive comeback.
Navigating new worlds with old maps doesn't work. Yet that's what many investors today are doing. Their investment plans fail to recognize that the financial world has fundamentally changed, resulting in a new set of realities that will endure for many years to come.
As recent market events continue to demonstrate, the investment world has fundamentally changed. In this new era, high net worth investors have many questions and concerns about how to best preserve and grow their portfolios, yet may feel less confident and more skeptical than ever about taking any action.
Many people view their pets as near and dear enough to be considered family members. Understandably, some pet owners may want to ensure their pets are cared for in the event the owners become incapacitated or the pets outlive them. As a result, some pet owners include animals in their estate plans.
Members of The Boston Company's U.S. Large Cap Value Team, Brian C. Ferguson, John C. Bailer and S. Joel Mittelman discuss the mounting evidence supporting a resurgence in the asset class.
This material has been authored by an affiliate of BNY Mellon Wealth Management. The views expressed by an affiliate may be different from the views of BNY Mellon Wealth Management.
Chief Investment Officer Leo Grohowski provides his insights on many of the risks in today's market, as well as strategies we are implementing to ensure that client portfolios are well positioned for this environment.
A Qualified Personal Residence Trust (QPRT) provides a way to transfer a personal residence on a discounted basis, without the payment of a full transfer tax.
The inclusion of spendthrift provisions in trusts may prevent creditors from attaching the beneficiary's interest in the trust and/or limit a beneficiary's ability to transfer or pledge the assets in the trust.
A thorough review of all estate and retirement planning documents often reveals critical issues that merit attention during or soon after divorce proceedings.
A Charitable Lead Trust allows the donor to transfer assets to future generations at discounted transfer tax values while generating income for the donor's choice of charity.
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