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As the compensation landscape for Big Law associates continues to evolve, new financial implications also arise, making it more important than ever to focus on practical planning strategies for associates at different career stages. With salaries and bonuses soaring to new heights, it’s crucial for young lawyers to make wise financial decisions. The Current Compensation Landscape Recently, Big Law firms have significantly increased compensation for associates. This trend began with Milbank and

There is a changing reality for many parents – advanced planning and a long-term strategy for financing a child’s education are becoming more of a necessity than a luxury, even for families of significant means. Education funding is one of the largest expenditures most American families will undertake, and costs continue to grow. Funding four years of college, or potentially more, requires forethought, and savvy families need to consider how they will pay for post-secondary education, potentia

As financial advisors, our purpose is to increase the financial well-being of our clients. And, although I believe we add a great deal of value for our clients in helping set and implement long-term financial goals, reviewing insurances and risk management strategies, being tax-efficient in all aspects of investing and estate/gift transfer issues, helping with education funding strategies, attempting to constantly reduce portfolio expenses, helping to prepare for market volatility etc., I think

This post will help you consider estate planning strategies in light of the current federal estate, gift and generation skipping transfer tax exemption, which in 2018 increased to $11.18M and has been indexed for inflation each year since then. However, the exemption amounts are scheduled to revert back to the pre-2018 exemptions (indexed for inflation) when the clock strikes midnight on January 1, 2026. Remind me what the numbers are. Below is a basic chart outlining the numbers (per person) i

Intentionally Defective Grantor Trusts (“IDGTs”) are a commonly used estate planning vehicle to transfer wealth to family members during the life of the grantor. In this whitepaper we will explore the four tax types relevant to IDGTs, and the mechanics of how IDGTs work. The use of the phrase “intentionally defective” is confusing, but it simply refers to an irrevocable trust where the grantor pays the trust’s income tax bill during his or her life. What taxes relate to an IDGT? There are four

The bad news is that there is a federal transfer tax on assets that you give away during life, at death, and to individuals two or more generations below you. The good news is that this transfer tax will only apply to the wealthiest Americans and, even so, there are strategies you can use to minimize or avoid its application. The federal estate, gift and GST tax only kicks in above a certain dollar threshold. Furthermore, there are additional wealth transfer strategies that do not trigger any t

While the large increase in the federal estate tax exemption has provided many with federal estate tax relief, New Yorkers must continue to plan for New York estate tax. For a quick review of the New York Estate Tax “Cliff” basics, see the “Understanding New York’s Estate Tax “Cliff” blog post. What is the current exemption from New York estate tax again? The current New York estate tax exemption amount is $6,940,000 in 2024 (up from $6,580,000 in 2023). Under current law, this number will rema

In 2014, dramatic changes were made to New York’s gift and estate tax law. For many clients, the subject of the New York estate tax “cliff” continues to remain a source of confusion. This is for good reason. The New York estate tax cliff is not easy to understand, nor is it easy to know how it may impact your particular situation. The answers below are intended to guide those who remain baffled by the New York estate tax cliff. Learn more about mitigating the New York estate tax cliff here. Doe

What is a Spousal Lifetime Access Trust (SLAT)? It is a trust that you (the grantor) set up for the benefit of your spouse and your descendants. You would make a gift to the SLAT, using some of your federal lifetime gift exemption (currently $13.61M in 2024) to shield that gift from gift tax. While you give up all your rights and control over the gifted assets, your spouse will have access to the gifted assets as beneficiary of the SLAT. When does it make sense to have a SLAT? You should consid

Section 1202 provides an exclusion from taxation to a qualified investor of up to $10 million of capital gain or 10 times the stockholder’s adjusted cost basis, whichever is greater, upon the sale of Qualified Small Business Stock (QSBS).

Section 1202 – An Overview Previously, we've discussed the historical context, shareholder/corporate qualification requirements, and common shareholder issues faced by holders of Section 1202 stock, more popularly referred to as Qualified Small Business Stock (QSBS). IRC Section 1202 allows qualified shareholders to exclude from federal income tax the greater of: $10 million of realized capital gain, or 10 times the stockholder’s adjusted cost basis, upon the sale of QSBS in a calendar year. Th

The Tax Cuts and Jobs Act of 2017 introduced a 20% tax deduction focused on pass-through businesses. While the deduction has been around for a few years now, many business owners are still wondering whether they will qualify and how to optimize the deduction. While everyone’s circumstances are different, and we encourage consultation with a tax advisor, the Act created an opening for several planning opportunities to potentially reduce tax bills for owners of such businesses. First, a little ba