Articles From Lumsden McCormick

Incentive trusts are estate planning tools that distribute wealth based on beneficiaries meeting specific conditions, such as pursuing education, maintaining employment, or avoiding harmful behaviors. While they can encourage positive actions, it's important to set realistic guidelines and communicate clearly with trustees to avoid potential conflicts or unintended consequences.

The strategies for transferring business ownership include family transfers, trusts, employee buyouts, ESOPs, and sales to outside buyers. Each option is analyzed for its tax consequences, such as gift tax, estate tax, capital gains tax, and corporate deductions, providing a comprehensive guide to succession planning.

When inheriting a family home, siblings may face challenges due to differing financial needs and opinions on what to do with the property. Options include sharing the home, renting it out, selling it, or arranging a buyout, each with its own considerations and potential tax implications. Open communication and professional advice are crucial to navigate the emotional and legal complexities involved.

Effective grant management is critical for organizations to ensure compliance, financial integrity, and operational efficiency.

Nonprofit board members must closely monitor their organization's financial health, especially during times of economic uncertainty. Key warning signs include unexplained financial variances, unusual spending patterns, and inconsistent financial statements. Identifying and addressing these issues is crucial to maintaining the nonprofit's ability to fund essential programs and continue operating.

The Trump administration's policies could significantly impact U.S. manufacturers, particularly in the areas of tariffs and trade policies, the Tax Cuts and Jobs Act (TCJA), and clean energy tax incentives. Manufacturers need to stay informed about these rapidly changing policies to navigate their impact on business.

The evaluation of an S Corporation for a new business venture highlights several advantages. Shareholders benefit from limited liability for corporate debts, and early losses can be deducted on personal tax returns. Additionally, the Qualified Business Income deduction offers potential tax benefits.

Recent developments from the U.S. Supreme Court have significant implications for nonprofit organizations that rely on federal funding.

Filing a gift tax return, even when no tax is due, can be beneficial as it starts the clock on the statute of limitations, limiting the IRS to three years to challenge the gift's valuation. Adequate disclosure in the return can prevent future disputes and provide peace of mind.

Nonprofit organizations can reduce expenses without cutting staff by investing in technology, leveraging partnerships and shared services, and optimizing business operations and vendor contracts. Additionally, focusing on employee development, utilizing volunteers, and implementing eco-friendly practices can lead to significant cost savings while maintaining the organization's mission and morale.