...SUCCESSION PLANNING The Entrepreneurs Personal Financial Plan W hen entrepreneurs consider their personal finances, it is critical they understand that the greatest intergenerational transfer of wealth in history will occur in the United States over the next decade. An estimated $10 trillion is expected to change hands, much of this resting in the hands of the nation's entrepreneurs, who must decide the fate of their companies when they are ready for transition. Many entrepreneurs who have family-owned or closely held businesses say their most difficult challenges are deciding who will succeed the current generation and how to preserve and build the company's value by providing for a smooth transition of ownership and management to the next generation. It is an understatement to say that estate and succession planning decisions involve complex questions of law, tax, and business planning. Such planning involves decisions about the types of property to own, the form of ownership and, for small business owners, the organization and operation of the business as well as the steps for passing that business on to the next generation. For the entrepreneurs, the only way to find the best plan is to work closely with the lawyer and other specialisb such as tax accountants, appraisJuly 2005 CPA W e a l t h P r o v i d e r ' 23 SUCCESSION PLANNING ers, life insuratice agents, bank trust officers, and financial planners, all of whom can provide other important sources of information...
Words: 1476 - Pages: 6
...Room Learning Center > Article Library > Flexible Irrevocable Trust Add Flexibility to Irrevocable Life Insurance Trusts By Elizabeth B. Taylor, Director - Estate Market and Barbara A. Bombaci, Director - Advanced Planning Given the present uncertainty about future transfer tax rules, an estate plan should be drafted to provide as much flexibility as possible so it can adapt to changes. To a great degree, estate planning is the art of dealing with uncertainty. When will someone die? What will his or her estate be worth at that time? What will happen in the meantime? How will beneficiaries turn out? Furthermore, the current state of transfer tax legislation adds one more aspect of uncertainty: What will the tax laws be in the future? For most clients, what happens to our transfer tax rules this year or next year is not particularly relevant. Most clients considering their estate plan now are going to live for decades into the future. The transfer tax rules are likely to change multiple times before their estate plan (at least the “at death” portion) is implemented. One response in the face of so much uncertainty is to do nothing – freeze up. Another, better response is to plan, but with as much flexibility as possible in order for an estate plan to adapt to changes in the future. But with planning that is irrevocable – irrevocable life insurance trusts (ILITs) in particular – flexibility seems impossible. Yet this is not so. With a little creativity, much flexibility...
Words: 3099 - Pages: 13
...Estate Planning for Same Sex Couples I. Introduction The benefits of marriage are unavailable to same-sex couples. Moreover, outdated intestacy statutes fail to recognize the close family bond between same-sex partners. Moreover, most intestacy laws discriminate against same-sex couples in that gay or lesbian relationships are generally considered invalid for the purposes of distributing the estate of a deceased partner who dies without a will. Accordingly, in order to reap inheritance and tax benefits that are automatically afforded to traditional married couples, these same-sex couples must rely on extensive and creative legal planning. There are several tools that provide solutions to this issue. Contract based estate planning techniques are the most commonly used tools for distributing a decedent’s property at death. Though the following planning mechanisms provide certain advantages, they are also accompanied by various disadvantages. II. Wills A will is an instrument by which a person directs dispositions of property to take effect upon death. It is the only document that allows a decedent’s probate assets to pass testate to persons of his or her choosing as opposed to passing via the strict laws of intestacy, under which the surviving partner would receive nothing. Even in the presence of strategies used to avoid probate such as intervivos trusts, wills are an essential precautionary measure to demonstrate the intent to pass property outside of probate, to...
Words: 2337 - Pages: 10
...Australia Pty Limited trading as LexisNexis: Ancillary for Financial Planning in Australia, 3rd ed., by Taylor, Juchau, Houterman Financial Planning in Australia CHAPTER 18 — ESTATE PLANNING — CORE PRINCIPLES AND PRACTICE Solutions to Questions Question 1 The seven steps in the estate planning process are: 1 2 3 4 5 6 7 Identify and prioritise the client’s objectives. Assess the current and likely future circumstances. Ascertain adequacy of short- and long-term funding. Assess and identify problems. Formulate the strategy. Implement the plan. Ongoing review. Question 2 Individuals control their wealth either directly through their direct, personal ownership or through intermediate structures or arrangements such as companies, trusts, partnerships, joint ventures or other comparable enterprises. Estate Asset Testamentary Asset, eg solely owned asset Non Testamentary Asset Jointly owned asset Life, ‘TPD’, Trauma or other Insurance Likely Decision-maker Willmaker Likely Governing Document Will Legal owner of property, eg Governing document of company or trustee estate structure Surviving joint owner Policy owner or nominated beneficiary Surviving joint owner’s Will Insurance Policy Nomination Superannuation/Allocated Pension/ Fund member Self-managed Superannuation Fund (binding nomination) Superannuation/Allocated Pension (no binding nomination) Self-managed Superannuation Fund (no binding nomination) Family Trust Fund trustee Surviving member(s), in conjunction with Executor...
Words: 6963 - Pages: 28
...September 21, 2012. You may drop off your application at the Lear Center in 21 Eppley or email as an attachment to Megan Bossory at msuprojectgreen@gmail.com. |Please answer the questions below referring to the position for which you are applying. | |1. Why are you interested in becoming a team member lead of the Project Green & White Action Team? | | |I am always interested in taking up volunteering activities, since this is an opportunity to give back to the society for the | | |opportunities that it has provided me with. Also, I would like to leverage my excellent even planning skills by being the lead of | | |the Event Planning Team. | | | | |2. What leadership experiences have you had? What skills have you developed through these experiences? | | | |1) Founder of Zonengage – Led a team of 8 to create a social networking site that connects people with the same hobbies...
Words: 393 - Pages: 2
...in multiple jurisdictions. * The first line of defense, which is limited, includes statutory protection and insurance. * The second line of defense is owning separate assets through multiple entities, including trusts, corporations, partnerships, limited liability corporations and partnerships, foreign grantor trusts, and domestic asset protection trusts. * The third line of defense is locating those entities in multiple jurisdictions. * A hypothetical client situation is used to illustrate specific methods of applying this knowledge. * In the future, informed planners will be those who understand their professional responsibility to help clients protect their assets.Richard Kahler, CFP®, CCIM, offers integrated financial planning through Kahler Financial Group in Rapid City, South Dakota. He is a nationally known speaker, educator, and co-author of two books, Conscious Finance and The Financial Wisdom of Ebenezer Scrooge.Richard K. Colman, J.D., is a registered financial advisor and noted public speaker and tax expert who...
Words: 5352 - Pages: 22
...tolerance. Some of the major factors contributing to any individual’s investments strategies are age, total value of savings and other assets, income, family and health. After a thorough discussion and getting some answers to a series of questions, your tolerance for risk can be assessed. This data helps us formulate investment policy that best fits your needs and objectives. Market timing, security selection and asset allocation are the three tools that are used to help reach your financial goals. ANALYSIS James and Lucy Anderson have an average/moderate tolerance for risk based on the risk tolerance quiz they completed. We have completed a review of the Anderson’s current holdings and assigned them into asset class. Some stocks will be sold and other will be held. Within any given asset class, a benchmark of expected performance has been performed. If the current stocks held in that class are underperforming the class in general, they should be sold and replaced with positions that better represents the asset class. Then purchasing patterns will be changed to add asset in the other classes that are currently not represented in your portfolio. The net result will be a well balance asset allocation that is representative of moderate risk tolerance. James and Lucy currently hold over one million dollars in real estate and have a relatively small equities portfolio. The Anderson’s IRAs and non-retirement assets are concentrated in small and mid cap growth and cash...
Words: 4889 - Pages: 20
...I. Introduction A. Real Estate Industry (World & Philippine) Real estate refers to land, as well as any physical property or improvements affixed to the land, including houses, buildings, landscaping, fencing, wells, etc. Vacant land and residential lots, plus the houses, outbuildings, decks, trees sewers and fixtures within the boundaries of the property are examples of real estate. There are a variety of ways to invest in real estate, ranging from real estate investment trusts (REITs) to buying rental property or multi-family housing. For investors turned off by the idea of fixing plumbing and dealing with tenants, REITs offer the opportunity to participate directly in the ownership or financing of real estate projects. REITs are tradable interest (much like a share of stock) in a pool of real estate-related assets. REITs own, and often operate, income-producing real estate such as office buildings, apartments, shopping centers, warehouses and hotels. Many REITs specialize in one property type, such as offices, apartments or regional shopping malls. Most investors buy REITs for their rich dividends, although those dividends are usually fully taxable. Keep in mind, though, that each real estate sector is affected by different economic cycles. Larger, diversified, or geographically dispersed REITs are less exposed to regional weakness and major economic cycles. On the other hand, smaller, more specialized REITs often provide the greatest growth potential. In addition...
Words: 1888 - Pages: 8
... the evolution of financial intelligence Charting troubled Waters The Blue Issue worth.com volume 21 | edition 02 Boston, MA Leading Advisor Fidelity CharitableSM Ryan Boland, Director, Complex Asset Group “ ” When does it make sense to donate real estate to charity? By Ryan Boland While the donation of appreciated securities—stocks, bonds and mutual funds—is common, relatively few individuals donate real estate to charity. Under specific circumstances, however, such a donation can be mutually advantageous to both the giver (the owner of the real estate) and the recipient (the charitable organization). At a most basic level, those circumstances are: (1) when the property in question has significant long-term appreciation, such that the owner would incur a sizable capital gains tax upon selling it, and (2) when the property is relatively easy for the charitable organization to liquidate, with minimal chance for incurring liability or major carrying costs prior to the sale. These conditions are most frequently met by individuals seeking to donate a long-held primary or secondary home. The donation of commercial or industrial real estate is also possible, but brings many other potential concerns, including possible tenant or lease issues and other legal complications. The ideal scenario might look something like this: A couple who bought their house 25 years ago for $250,000 has seen it appreciate to a current valuation...
Words: 1159 - Pages: 5
...in stocks, bonds and other securities. * By purchasing mutual funds, small investors can easily diversify their investments and enjoy the benefits of professional management. * Investors own units or shares in the fund and benefit proportionately from any increase in value and/or income earned by the investments owned by the fund. The Reasons Investors Choose Mutual Funds | Mutual funds have grown in importance in Canada over the last twenty-five years. As of February 2008, there were 2,038 mutual funds with a total worth of nearly $679 billion – up from only $3.5 billion in 1981.The two major reasons investors choose mutual funds are: 1. Professional management - although there is no guarantee that the fund will outperform the market. 2. Diversification - by asset class (i.e. by holding a mix of stocks, bonds and money market investments) or within each asset class (i.e. by holding a variety of securities within each class). The risk of mutual funds arises from the risks associated with the investments they hold. * For example, a bond fund will be subject to interest rate risk – as interest rates rise, the value of the bonds owned by the fund will decline. | Mutual Funds With and Without Loads A load is a sales commission. In a load fund, the investor pays a commission every time he or she buys units (front-end load) or sells units (back-end load or contingent deferred sales charge). FRONT-END LOAD | * Typically between 3% and 5%, but declines...
Words: 9302 - Pages: 38
...Causes for French Revolution France was the most powerful and influential European country in the 17th and 18th century. However,the outbreak of French Revolution in 1789 shattered the long existing absolute monarchy, destroyed the classic Old Regime and put an end to the age of aristocratic privilege owned solely by the royal family and the nobility. Europe’s longest ruling monarchy was not dethroned overnight, but many different factors from multiple sources, piled-up grievances and contradictions that were long precipitated, contributed to the finality of a traditional system and led to the establish of a modern constitutional government, together with democracy and nationalism. Under the reign of Louis XIV and XV, France had been put under an enormous financial and economic burden by 18th century. Louis XIV’s aggressive international policies had led to lasting and destructive Seven Years War outside the European lands and French government had experienced some period that the spending greatly exceeded the revenue income,especially with expensive military expenditures . And to make it worse, the outcome of these long drawn-out battles against the Great Britain oversea on the North America territory only threw French into bigger financial crisis. Normally the exceeding funds were borrowed, but by the time Louis XV passed away, funding sources may have been cut off and France was left in mounting debts. France had been seeking ways to repay its debts and interest, and to continue...
Words: 1379 - Pages: 6
...Table of contents 1. Executive Summary .................................................................................................. 3 2. Service Policy and Disclaimers ................................................................................ 4 3. Family Profile ................................................................................................................. 6 4. Goals and Objectives .................................................................................................... 8 4.1. Short-‐term Goals ................................................................................................................ 9 4.2. Mid-‐term Goals .................................................................................................................... 9 4.3. Long-‐term Goals .................................................................................................................. 9 5. Risk Profile ................................................................................................................... 10 5.1. Risk Profile Conclusion .................................................................................................. 12 5.2. Risk Recommendation ......................................................
Words: 16427 - Pages: 66
...at http://calypso.active.com. Happy travels! Your Calypso Support Team Calypso Vacation Club Relax with Us! Calypso Vacation Club Relax with Us! Welcome to the Club! This new owner guide is designed with you in mind. The Calypso Vacation Club is your destination for family fun, exciting travel, and rewarding stays around the world. We are certainly glad you are have chosen to spend your valuable vacation time with us by purchasing {number o«Points_Purchased»f points} points in the vacation club. Your purchase means you will be able to choose from over 120 resorts worldwide, all owned and operated by Calypso. You can be assured of excellent and reliable service as we strive to make your vacation dreams come true. This Quick Start Guide explains the details of your club ownership, including an overview of the points system, pricing, options, and special offers. So dive right in! We look forward to welcoming you at a Calypso resort in the near future! Explore the World with the Leader in Vacation Club Ownership For more than 20 years, Calypso Vacation Club has occupied the top spot in the vacation ownership industry, delivering the best in vacation experiences to more than 300,000 owner families worldwide....
Words: 1346 - Pages: 6
...TRAINING REPORT ON “Growth of Real Estate Sector with in 5years” A case of Corporate Real Estate Solutions Submitted to MAHARSHI DAYANAD UNIVERSITY, ROHTAK In partial fulfillment of the requirements For the award of the degree of MASTER OF BUSINESS ADMINISTRATION (INDUSTRY INTEGRATED) (II SEMESTER) Submitted by: Name: Alok Kumar Upadhayay Regn. No. Roll.No. DAV INSTITUTE OF MANAGEMENT (ELC CODE: 080923013) NH-3, NIT, FARIDABAD. JULY 2011 DECLARATION I hereby declare that the Training Report conducted at Corporate Real Estate Solutions,Delhi. Under the guidance of (Ms. Aakrity) Submitted in Partial fulfillment of the requirements for the Degree of MASTER OF BUSINESS ADMINISTRATION (Industry Integrated) TO MAHARSHI DAYANAND UNIVERSITY, ROHTAK is my original work and the same has not been submitted for the award of any other Degree /diploma /fellowship or other similar titles or prizes. Place: Date: Alok Kumar Upadhayay Regn.No: Roll No. 2 ACKNOWLEDGEMENT First and foremost, I extend my deepest thanks to my mentor and guide Mr. Vishal Srivastava, Director – Corporate Real Estate Solutions, for giving me this opportunity to work in such a prestigious organization as well as for giving me a wonderful thesis. Without his constant guidance and feedback, I would have never been able to complete the training, I did. I am thankful to Ms. Aakrity, whose consistent support and cooperation showed the way towards the successful completion of the thesis...
Words: 15995 - Pages: 64
...life and financial goals. This proposal will address the action plans from several key and fundamental financial aspects, namely, insurance and risk management, savings and investments, education planning, retirement and estate planning and also, tax planning. The action plans and recommendations shall act as a guide in assisting Mr. Tom Ho to achieve sufficient financial protection, lower tax burdens, increased investment (passive) income, good retirement planning and also proper estate planning. The financial plan outlines all the financial planning and strategies that are designed and developed to: • Help to set aside an emergency fund preparing the client for unfortunate events and mishaps. • Provide client with budgeting plan and cash flows planning to support client and family's current lifestyle. • Help client in accumulating sufficient retirement funds to support him and his spouse's retirement lifestyle and needs. • Establish a profitable investment portfolio with balanced assets allocation according to client's risk profile and prospect analysis report. • Assist client in reducing client's tax burden by utilizing tax reliefs and other tax savings methods and strategies. • Distribute client's wealth by using appropriate estate planning tools and strategies when client departs. • Reduce and settle out housing loans, car loans and credit card loans. • Assist client in accumulating sufficient funds to support children's tertiary...
Words: 5931 - Pages: 24
