Latest news with #trusts
Bloomberg
5 days ago
- Business
- Bloomberg
Preliminary UK Tax Data Eases Worries of Non-Dom Exodus, FT Says
The number of wealthy individuals leaving the UK in response to recent tax changes is so far in line with official predictions, the Financial Times said, citing people briefed on the findings of a HMRC analysis. Monthly payroll data reviewed by HMRC suggest that the number of non-dom departures broadly conforms with projections from the Office for Budget Responsibility that one in four with trusts would leave, the FT reported.
The Independent
11-08-2025
- Health
- The Independent
NHS to open up thousands of roles for new graduates
The government has announced a "graduate guarantee" for newly qualified NHS nurses and midwives, enabling trusts to hire based on projected need rather than waiting for existing vacancies. This strategic shift aims to ensure every new nurse and midwife in England can secure a position, addressing the current imbalance where some areas have up to three times more graduates than available roles. The Department of Health and Social Care confirmed the change will allow proactive recruitment, opening up thousands of roles and ensuring the health service has adequate staffing levels for optimal patient care. Additional measures include a dedicated online hub offering guidance for student applications and an £8 million allocation to temporarily convert vacant maternity support worker posts into Band 5 midwifery positions. The initiative follows discussions with the Royal College of Midwives and the Royal College of Nursing, both of whom welcomed the move to provide certainty for graduates and fill vacant posts.
Forbes
07-08-2025
- Business
- Forbes
Choosing The Right Trustee And Why It Matters
Royce Ramey, CFA, is co-CEO of Versant Capital Management, a multifamily office in Dallas and Phoenix serving ultra-high-net-worth families. Trusts are a powerful tool for families to transfer their wealth and help achieve other financial goals, such as asset protection and privacy. But one of the most important, and often overlooked, decisions when creating a trust is choosing the right trustee. Each trust needs a trustee to make the decisions governed by the trust document. Serving as a trustee is a significant responsibility that requires time, specific skills, knowledge and dedication. Selecting a trustee well-equipped to handle these duties is one of the most important decisions the person setting up the trust—aka the grantor—can make. A trustee's responsibilities are multifaceted. As fiduciaries, trustees are charged with managing trust assets, making distributions according to the trust's terms and adhering strictly to the grantor's intent and the language in the trust agreement. Trustees must have expertise in investing, tax planning and tax return preparation, as well as the ability to understand legal documents. To the extent a trustee does not have this expertise, they can hire professionals to assist them. Throughout my career advising multigenerational families, I've seen firsthand how the selection of a trustee can either preserve or erode a family's legacy. At Versant Capital Management, I help families navigate complex estate planning decisions as part of our comprehensive family office services. Yet, too often, choosing the right trustee is an afterthought, when in reality it can profoundly shape the outcomes and dynamics of a trust for years to come. Distribution Decisions An important role of the trustee is making distribution decisions. A trustee is holding assets for the beneficiary's benefit, and he or she must distribute those assets as the trust document lays out. The trustee must interpret the trust document's provisions carefully so that distributions align with the grantor's intentions. This decision-making process can require balancing the needs of current beneficiaries with those of future generations, a task that demands fairness and foresight. Grantor's Intent The trustee's understanding of and commitment to the grantor's intent are equally important and at the heart of what it means to be a trustee. A trustee should demonstrate a deep familiarity with the grantor's values and priorities so that their decisions reflect the spirit of the trust's mission. Exercising sound discretion while remaining faithful to the grantor's wishes is a delicate balancing act that requires insight and judgment. For example, consider a situation where a trust names two beneficiaries with very different financial circumstances. A thoughtful trustee would need to understand the grantor's intent. Did they want distributions to be equal regardless of each beneficiary's needs, or did they want the trustee to consider each individual's financial situation when making distribution decisions? Interpreting and honoring that intent is a core part of the trustee's role. Relationship With Beneficiaries The relationship between the trustee and the beneficiaries is another important factor to consider. Trustees must approach this relationship with sensitivity and impartiality, building trust and addressing any conflicts that may arise. An effective trustee is skilled in conflict resolution and adept at maintaining open communication while prioritizing the trust's objectives. Balancing empathy with objectivity is key to ensuring that all beneficiaries feel their needs are considered fairly. Capacity And Responsiveness Capacity and responsiveness are additional considerations when selecting a trustee. A trustee must have the time and resources necessary to manage the trust effectively. This level of commitment includes being available to provide individualized attention to the trust's specific requirements and responding promptly to beneficiary requests, which could include emergencies or unforeseen circumstances. Trustee Options Grantors can choose from a few different types of trustees, each with distinct advantages and challenges. Individual trustees are often family members or trusted friends who bring personal knowledge of the family's dynamics and a strong alignment with the grantor's values. However, they may face challenges such as conflicts of interest, a lack of expertise in complex financial or legal matters and limited availability. Additionally, the finite lifespan of an individual trustee necessitates careful succession planning to maintain continuity. Corporate trustees, on the other hand, are professional institutions specializing in trust management. They offer a high level of objectivity, efficiency and expertise, with teams of specialists in the legal, tax and investment fields. Their unlimited lifespan eliminates concerns about succession, providing long-term stability for the trust. However, corporate trustees may lack the personal connection to family dynamics that an individual trustee might provide. Co-trustees can combine the strengths of individual and corporate trustees. By pairing an individual trustee's family insights with a corporate trustee's professional expertise, co-trustee arrangements balance understanding family relationships with ensuring effective administration. While this approach offers significant benefits, it also requires careful coordination and communication to avoid conflicts or inefficiencies between co-trustees. Questions To Ask When evaluating potential trustees, grantors should consider several key questions: • Does the trustee have experience managing trusts of similar size and complexity? • How will they handle conflicts among beneficiaries? • What steps will they take to maintain compliance with the trust's terms and the grantor's intent? • How will they manage investments and distribution decisions? • Can they dedicate sufficient time and attention to the trust's needs? • What fees will the trustee charge? Asking these questions can help you determine whether a potential trustee possesses the necessary expertise, judgment and capacity to fulfill their fiduciary responsibilities effectively. Whether appointing an individual, a corporate institution or both, grantors should weigh their options carefully. By making a thoughtful and informed choice, grantors can safeguard the trust's purpose and promote harmony among beneficiaries. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
Yahoo
07-07-2025
- Business
- Yahoo
‘She's in a shaky marriage that could soon end': Will my daughter's husband get my IRA when I die?
I'm 84 and widowed. My daughter is the beneficiary of my IRA and the successor trustee for my revocable living trust. She's in a shaky marriage that could soon end in divorce. How can I prevent her soon-to-be ex-husband from claiming part of her inherited IRA and assets in the trust? Aging Father 'We are blessed': My husband is inheriting a $1 million home. Should he put it in my name too? 17 bargain dividend stocks that are primed for growth — consider this before you buy 'Today is my 61st birthday': I have my ex-spouse's Social Security benefits. Should I retire at 65 and travel? 'I'm single': At 70, I have $500,000 in stocks and $220,000 in savings. How do I invest my $130,000 windfall? Stay buckled up — the market ride is going to get wilder still, says this strategist Related: 'I'm afraid to ask her': My stepmother won't show me my father's will. What now? Expect the best. They may stay together and live happily ever after. But prepare for the worst. If their marriage is on shaky ground, chances are they're headed for divorce court. Unfortunately, as much as we would all like to maintain peace and harmony in our lives, splitting assets is never easy and can lead to a lot of painful negotiation. For that reason, you are smart to think ahead. You've worked hard for your retirement savings and other assets, and I can understand that you would not like them to be divided 50/50 between your daughter and her husband (should they split). Inheritance, as regular readers of this column will know, is generally considered separate (not marital) property. Unless your daughter decided to commingle inherited funds in a joint account with her husband, they would remain separate in the event they divorced. Those tax implications will vary, all depending on the type of account she inherits. 'The IRA balance must be emptied within 10 years; this distribution period begins the year after the original account owner's death,' U.S. Bank USB says. If you were already taking RMDs, your daughter must also take a minimum distribution each year, beginning the year after your death, it adds, but RMDs are not required annually if you were not subject to distributions before your passing away. There are exceptions to the 10-year rule for non-spouse beneficiaries, it adds. They include minor children of the original account holder, a chronically ill or disabled beneficiary, or a beneficiary who is no more than 10 years younger than the original account owner. 'Non-spouse beneficiaries can open and transfer funds into an inherited IRA, take a lump-sum withdrawal or turn down the inheritance,' the bank adds. 'Spouse beneficiaries can roll the funds into an existing IRA account or open a new account.' A revocable trust that becomes irrevocable upon your death would ensure that your funds were only accessed by the beneficiary — your daughter in this case (and not her husband). It would also protect those assets from creditors. 'To maximize protection, the trust can be structured as a discretionary trust, where the trustee has complete discretion over distributions,' according to Selzer Gurvitch, a law firm based in Bethesda, Md. 'This type of trust can ensure that assets are not considered marital property in the event of a divorce,' it says. 'Another option is a spendthrift trust, which prevents creditors, including a divorcing spouse, from accessing the trust assets.' 'Protecting your children's inheritance from the potential complications of divorce is an important aspect of estate planning,' it adds. 'Trusts, prenuptial agreements, careful asset titling, and gifting strategies all play a role in ensuring that your hard-earned wealth remains in the family.' I hope your daughter lives happily ever after, no matter what she chooses. Related: My father died, leaving everything to my 90-year-old stepmother. Do I have a right to ask her if I'm in her will? I'm the executor of my mother's will. She left $160,000 in a secret savings account. Should I tell my siblings? 'She has been telling him lies': My sister convinced my father to sign everything over to her. What can I do? My father died, leaving everything to my 90-year-old stepmother. Do I have a right to ask her if I'm in her will? Don't miss: 'I don't want to end up with stalkers': Should I tell my heirs that I'm writing a will and how much they can expect to inherit? My wife and I are in our late 60s. Do I sell stocks to pay our $30,000 credit-card debt — or do it gradually over 3 years? I put my $500K inheritance into a joint account with my husband. Can I leave half of it to my son from a previous marriage? 'I do all the yard work, cooking and cleaning': I live with my daughter and her lazy boyfriend. She wants me to buy her house. Do I say yes? 'Finance makes me break out in hives': I inherited $240K from my parents. Do I pay off my $258K mortgage and give up my job? My job is offering me a payout. Should I take a $61,000 lump sum — or $355 a month for life? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
07-07-2025
- Business
- Forbes
10 Reasons To Reevaluate Your Estate Plan Following The 2025 Tax Law
File Stack and Magnifying Glass The "One Big Beautiful Bill Act" (OBBBA) of 2025 introduces significant changes to estate and tax planning. While discussions often focus on high-net-worth families, these changes affect everyone, from young professionals to retirees. Since the law is so wide ranging, it can disrupt even the most well-prepared plans. 1. Elevated Estate and Gift Tax Exemptions The federal estate, gift, and generation-skipping transfer (GST) tax exemption is now $15 million per person ($30 million for married couples). This higher threshold is beneficial, but political dynamics could alter it again. Review your estate plan to adapt to both current rules and future uncertainties. 2. Political Risks Despite the End of the 'Sunset' Deadline The removal of the 2025 'sunset' clause for exemptions doesn't eliminate the risk of future reductions by Congress, especially if the Democrats retake the House and the Senate with a mandate to repeal the tax bill and enact the tax changes Elizabeth Warren and Bernie Sanders are advocating. Proactive planning provides the flexibility needed if rules shift again. 3. Changes in Trust Income Taxation Trusts are essential in many estate plans. The 2025 law permanently modifies trust income tax brackets and rules. Evaluating your trust structures can help minimize taxes and maximize benefits for heirs. 4. State-Level Estate and Inheritance Taxes In Massachusetts and other states with estate taxes, significant taxes may still apply despite federal thresholds. Address both federal and state tax exposures in your plan to avoid surprises. 5. Increasing Long-Term Care Costs and Medicaid Adjustments With cuts to Medicaid and other safety-net programs, relying on public benefits for long-term care is riskier. Private long-term care insurance and Medicaid planning have become increasingly crucial for middle-class families. 6. Tax-Deductibility of Long-Term Care Insurance The 2025 law maintains or increases tax-deductible limits for qualified long-term care insurance premiums. Ensure your policies qualify to maximize tax benefits. 7. Retirement Account and Income Tax Strategy Permanent changes to individual income tax provisions affect IRAs, Roth conversions, and income-shifting strategies. Aligning retirement and estate plans is essential to minimize taxes and enhance your legacy. 8. Business Succession and Asset Management With changes to valuation rules and succession planning, it's vital to review buy-sell agreements, liquidity planning, and leadership transition strategies to safeguard your business and family. 9. Management of Digital Assets and Cryptocurrency Digital assets, including cryptocurrency and online accounts, are now common in estates. Updated powers of attorney, wills, and trusts are necessary to manage and transfer these assets effectively. 10. Addressing Family, Legacy, and Non-Tax Objectives Estate planning encompasses more than just taxes. The new law may impact your ability to support family members with special needs, make charitable contributions, or protect unique assets. Regular reviews ensure your documents align with current wishes and family circumstances. Conclusion The 2025 tax law necessitates a thorough review of estate plans for everyone, regardless of wealth. From taxes and trusts to long-term care and digital assets, consulting an experienced estate planning attorney will ensure your plan is current, compliant, and aligned with your personal and financial goals.
