Articles From Lumsden McCormick

Selecting the right trustee is crucial in estate planning, as they manage trusts and ensure assets are handled according to the trust's terms and in the best interests of the beneficiaries. Trustees must possess qualities such as knowledge of tax and trust law, investment management experience, bookkeeping skills, integrity, and objectivity to effectively fulfill their responsibilities.

Nonprofits can significantly improve their operations by leveraging AI and automation. These technologies help reduce human errors, free up time for mission-oriented work, and streamline essential tasks like fundraising, marketing, and reporting.

Section 127 educational assistance plans allow businesses to provide up to $5,250 annually in tax-free educational benefits to employees. These plans cover a wide range of educational expenses, including graduate coursework, and can help attract and retain talented employees.

This presentation by Lumsden McCormick, Boosting Cash Flow: Maximizing Federal R&D Tax Credits for Manufacturers, covered key benefits of a federal R&D tax credit, the qualified activities and expenses for federal R&D tax credits, and much more.

Members of the sandwich generation, who care for aging parents while supporting their own children, face unique financial and emotional pressures. Estate planning is a critical yet often overlooked task that can help manage these challenges effectively.

Group captive insurance is a strategic alternative to traditional insurance models, allowing manufacturing companies to pool their risks and stabilize costs. It offers significant benefits such as cost savings, customization, control over claims, and tax advantages, making it an attractive option for companies with strong risk management practices.

SEP and SIMPLE plans are retirement options designed for small businesses to simplify administration and reduce financial burdens. SEP plans allow employers to make discretionary contributions to employees' SEP-IRAs, while SIMPLE plans involve employer matching contributions based on employee salary reductions. Both plans offer unique advantages, including tax benefits and minimal IRS filing requirements.

The GST tax is a federal tax that applies to transfers of assets to grandchildren or other skip persons, ensuring that large estates cannot bypass a round of taxation. Careful estate planning, including the use of trusts, is essential to allocate the GST tax exemption effectively and ensure tax-efficient transfers to younger generations.

A nonprofit board governance policy provides a framework for decision-making that aligns with the organization's mission. It outlines directors' fiduciary responsibilities, including the duty of care and loyalty, and emphasizes the importance of professional support and compliance with governing documents.

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.