Articles From Lumsden McCormick

Decanting an irrevocable trust explains the concept of decanting, which involves transferring assets from one trust to another with different terms. This process allows trustees to update or adjust the terms of an irrevocable trust under certain conditions, making it a strategic way to modernize an inflexible trust and better serve long-term goals and beneficiaries.

There is a critical need for nonprofits to safeguard the privacy of donors, staff, clients, and volunteers to avoid legal and reputational risks. This article highlights that implementing strict data protection policies can foster trust among stakeholders, prevent operational disruptions, and maintain the integrity of the organization's mission.

Reshoring involves bringing manufacturing operations back to the United States from abroad, driven by factors such as President Trump's tariff plans, federal and state tax incentives, and the need for supply chain stability. Manufacturers must carefully assess location selection, skilled labor availability, and equipment decisions to ensure the success of reshoring efforts.

Failing to comply with employment tax obligations can lead to severe consequences, including the Trust Fund Recovery Penalty (TFRP). This penalty imposes personal liability and financial hardship on business owners and responsible parties who willfully fail to collect, account for, and pay over employment taxes.

This article discusses the dilemma of whether to disclose estate planning details to family members, highlighting that the best approach depends on individual goals and family dynamics. It outlines the advantages, such as explaining wishes and streamlining estate administration, as well as the disadvantages, including strained relationships and encouragement of irresponsible behavior. 

Understanding whether you qualify as a tax-favored real estate professional can significantly impact your ability to deduct rental losses. Here we explain the general rules, exceptions, and criteria that define this status, including the eligibility criteria and material participation tests. We also highlight other exceptions for non-professionals and emphasizes the importance of utilizing available tax breaks to maximize deductions and minimize tax liability.

Facing budget cuts? Learn practical, cost-saving strategies to help government agencies maintain essential services and maximize efficiency amid federal funding uncertainties.

Stepped-up basis rules can significantly reduce capital gains tax for heirs by adjusting the tax basis of inherited assets to their fair market value at the time of the original owner's death. This means that only the appreciation in value since the date of death is subject to tax, rather than the entire gain from when the asset was originally acquired.

Vendor fraud poses a significant risk to manufacturing companies, impacting their profitability and product quality. Recognizing the warning signs and implementing strict controls can help companies protect themselves from deceptive practices and maintain the integrity of their operations.

Small businesses can ensure payroll tax compliance by staying updated with regulatory changes, understanding federal withholding, adhering to filing and deposit deadlines, maintaining organized records, and seeking professional advice. These practices help avoid fines, maintain good employee relationships, and stay legally compliant.