Wealthspire - Financial Dictionary

What Are Tariffs?

The Wealthspire Team — Fri, 21 Nov 2025 05:00:00 GMT

Understanding tariffs is essential for anyone following the global economy or anyone who manages an investment portfolio that could be influenced by trade policy. Here we’ll answer some of the most common questions about tariffs, how they work, and why they matter to investors.

What Is the Debt Ceiling?

The Wealthspire Team — Fri, 21 Nov 2025 05:00:00 GMT

The term debt ceiling often makes headlines, especially when Congress debates whether or not to raise it. But what does it mean exactly, and why does it matter to investors and households?

What Is a Directed Trust?

The Wealthspire Team — Wed, 29 Oct 2025 04:00:00 GMT

A directed trust is a type of trust where certain investment, business, and distribution powers are bifurcated from the administrative trustee powers and assigned to Direction Advisors who hold the power and responsibility to carry out those functions. Unlike a traditional delegated trust relationship, where a single trustee manages all administrative, investment, business and distribution roles, a directed trust allows a settlor (trust creator) to separate responsibilities among multiple fiduciaries. Read more about what to consider when creating a trust.

What Is an ESPP (Employee Stock Purchase Plan)?

The Wealthspire Team — Wed, 29 Oct 2025 04:00:00 GMT

An Employee Stock Purchase Plan (ESPP) is a benefit offered by many public companies that allows employees to purchase company stock at a discounted price, often through automatic payroll deductions. ESPPs can be a powerful tool to build wealth over time when used strategically, especially for employees aiming to invest in their company while optimizing tax benefits.

What Is an Asset Protection Trust?

The Wealthspire Team — Wed, 29 Oct 2025 04:00:00 GMT

An asset protection trust (APT) is a lawful estate planning vehicle designed to shield assets from unknown future creditor claims, lawsuits, or judgments by placing those assets in a trust governed by enforceable spendthrift protections. Depending on the structure, an APT can let the settlor benefit from trust assets while reducing the risk that creditors can reach them. APTs range from offshore structures to Domestic Asset Protection Trusts (DAPTs) which are legal in certain states.

What Is an ESOP (Employee Stock Ownership Plan)?

The Wealthspire Team — Wed, 29 Oct 2025 04:00:00 GMT

An Employee Stock Ownership Plan (ESOP) is more than just a retirement benefit. ESOPs are a key part of powerful business and succession planning strategy. Unlike an ESPP, which involves buying stock, an ESOP is primarily funded by the company, either through contributions of stock, or cash to buy stock.

What Is a Golden Parachute?

The Wealthspire Team — Tue, 28 Oct 2025 04:00:00 GMT

Golden parachutes are often in the headlines when high level executives exit a company, especially during mergers and acquisitions. A golden parachute is a contractual agreement that provides a significant financial benefit to top executives if they are terminated following a merger, acquisition, or other change in corporate control. These agreements often include a lump sum cash payout, usually 1-3x the executive’s base salary and bonus, along with accelerated vesting of stock options, and continued healthcare or other perks. A golden parachute can also include pension enhancements or deferred compensation.

What Is a K-1? A Law Firm Partner’s Guide to Understanding Your Taxes

The Wealthspire Team — Wed, 20 Aug 2025 04:00:00 GMT

If you’ve recently become a law firm partner, you may have received a Schedule K-1 and wondered, “what is this document and how does it affect my taxes?” Many new partners are surprised by how different their tax experience becomes.

What Are Capital Contributions - A Guide for New Law Firm Partners

The Wealthspire Team — Thu, 10 Jul 2025 04:15:00 GMT

Capital contributions, or buy-ins, are the funds or assets that a business owner or partner invests into a business. For new law firm partners, understanding capital contributions is essential, not just for partnership buy-in, but for long-term financial planning, tax efficiency, and wealth building.

Alternative Minimum Tax (AMT)

The Wealthspire Team — Fri, 21 Mar 2025 04:00:00 GMT

What Is Alternative Minimum Tax?

Alternative Minimum Tax (AMT) is a tax system designed to ensure high-income individuals, corporations, trusts, and estates pay a minimum amount of tax. AMT limits certain deductions and credits that would otherwise reduce tax liability under the regular tax system.