Articles From Lumsden McCormick

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.

Hiring your child for your small business during the summer can offer significant tax benefits. You can transfer business earnings to your child to save on income taxes, reduce Social Security tax if your business isn't incorporated, and provide retirement savings options for your child. Additionally, this opportunity helps your child understand your business, earn extra money, and learn responsibility.

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.