Articles From Lumsden McCormick

Family business owners benefit from having both an estate plan and a succession plan to ensure a smooth transition of assets and leadership. These strategies help preserve wealth, minimize taxes, and reduce potential conflicts among heirs, while supporting the financial needs of both generations.

Clear, consistent communication about financial realities helps nonprofit leaders maintain staff trust and morale during uncertain times. By proactively addressing concerns, especially around layoffs, and fostering a culture of transparency, executive directors can prevent damaging rumors and keep their teams focused on the mission.

This presentation by Lumsden McCormick, One Big, Beautiful Bill Webinar, covered key tax changes for businesses, individuals, and international taxpayers under the OBBB. 

Ransomware attacks pose a significant threat to manufacturers, disrupting operations and jeopardizing supply chains. Implementing proactive measures such as robust backups, network segmentation, employee training, and incident response planning can dramatically reduce risk. Strengthening cybersecurity across IT and OT environments helps safeguard business continuity and protect critical assets.

Being named an executor of an estate is a significant honor, but it comes with complex legal and financial responsibilities. From securing death certificates and managing probate to settling debts, filing taxes, and distributing assets, the role demands careful organization and clear communication with beneficiaries. Executors must act as fiduciaries, often over the course of a year or more, ensuring every step is handled prudently and transparently.

Converting your unincorporated small business to an S corporation can significantly reduce your self-employment tax liability by allowing you to take part of your income as distributions rather than salary. While this strategy offers tax advantages, it also comes with administrative requirements and considerations around reasonable compensation and retirement contributions.

The OBBB outlines key tax changes for businesses, including enhanced deductions and reporting thresholds starting in 2025. Highlights include 100% bonus depreciation, full expensing of domestic R&E, and increased 1099 thresholds, with some provisions expiring at year-end and others continuing into 2026 and beyond. Additional updates affect small business R&E elections, ERC claims, and the Qualified Opportunity Zone program.

POD and TOD accounts offer a fast and simple way to transfer assets directly to beneficiaries, bypassing probate. However, they can unintentionally override your will, create unequal distributions, and lack flexibility for more complex estate planning needs.

The OBBB introduces various extensions and amendments to the Tax Cuts and Jobs Act (TCJA). Key provisions covering tax rates, expanded deductions and changes to credits will begin rolling out in 2025.

In an increasingly competitive funding landscape, nonprofits are turning to AI tools to help craft grant proposals, but success still hinges on understanding the fundamentals of proposal writing. While AI can streamline the process, funders value authenticity, customization, and adherence to guidelines, making human oversight and strategic storytelling essential.