Latest news with #wealthManagement
Daily Mail
10 hours ago
- Business
- Daily Mail
Now Rachel Reeves is coming for your PENSION: the Chancellor wants to get her hands on up to 87% of your life savings with a vicious new tax raid - here's how to stop her: ELIZABETH ANDERSON
Have you saved wisely, invested well and built up a healthy pension to enjoy in retirement and pass down to your loved ones? Then beware. Up to 87 per cent of it could be swallowed up in tax when you die once new inheritance tax rules are introduced in 2027, Wealth & Personal Finance can reveal in our new calculations.
Forbes
13 hours ago
- Business
- Forbes
U.S. Estate Tax Follows Expatriates Under Section 2801
T Tina Turner (Photo by Blick/RDB/ullstein bild via Getty Images) ina Turner's death in May 2023 sparked an interesting consideration for the estates of expatriates. She relinquished her citizenship in late 2013, approximately ten years before her death and resided in Switzerland at her death. Despite being a noncitizen of the U.S. at her death, Turner may have been subject to U.S. income and estate taxes depending upon whether she was considered a covered expatriate and whether she had assets that would be considered U.S. assets taxable in her estate. The impact of the estate tax could deplete 40% of the assets subject to tax at her death. Given her substantial wealth, it is likely that she engaged in significant planning that minimized or eliminated any tax exposure regardless. However, if she had made transfers either during her lifetime or at death to any U.S. beneficiaries, significant tax compliance and payment obligations could have resulted for both the beneficiaries and her estate. The following is a brief overview and some of the common considerations for expatriates in similar situations where they may not consider having the U.S. tax system apply even where they have no direct investments in the U.S. IRC Section 2801 imposes a tax on U.S. citizens or residents on the receipt of "covered gifts" or "covered bequests" from individuals who fall within the definition of a covered expatriates. The tax is imposed on all transfers, whether during the expatriate's lifetime or at death, as an estate tax. The law provides that the individual would be a covered expatriate if any of the following apply: (1) Had an average annual net income tax liability exceeding a specified threshold aligned with an inflation adjusted amount for five years preceding the date of expatriation, (2) Had a combined net worth of $2 million or more on all assets globally on the date of expatriation, or (3) Was noncompliant with U.S. tax obligations for five years preceding expatriation. Tax obligations extend beyond income tax to certain excise taxes as well that may be considered with personal income tax obligations. Section 2801 imposes the highest estate tax rate in effect at the time of the gift or bequest. This rate is currently 40%. In January 2025, the U.S. Congress issued final regulations on the taxation of gifts and bequests from covered expatriates. These regulations introduced the filing of a new Form 708 to report these transfers. Form 708 must be filed by U.S. recipients of covered gifts or bequests by the 15th day of the 18th month following the end of the year in which they received the covered gifts or bequests. Noncompliance subjects the recipients to significant penalties. The trust classification controls whether transfers made to trusts by covered expatriates fall within the purview of the reporting requirements and tax: In addition to other factors, compliance and tax exposure for transfers from covered expatriates should be considered in structuring trusts and making elections. Regulations under Section 2801 were passed nearly seventeen years after the statute and the scope of some provisions, especially their retroactive applicability remains uncertain. To prevent cumbersome audit issues and potential noncompliance complications, it is prudent to consider: Continued increase in expatriation makes consideration of the broader tax implications and application of covered expatriate rules significant. Celebrities and public figures face additional challenges in terms of asset location and valuation because of rights of publicity (name, likeness, and image rights) which may be deemed to be located in the U.S. even though all their assets are abroad. These issues also arise with other intangibles such as cryptocurrency, artificial intelligence, and technology. Careful asset protection and planning well before any expatriation can be critical to avoid unexpected surprises.
Entrepreneur
2 days ago
- Business
- Entrepreneur
JPMorgan Releases Summer Book List for Wealthy People
JPMorgan released its annual summer reading list, geared to high-net-worth people who are curious about technology, art, and finding true happiness. For the past 26 years, JPMorgan has released a summer book list that caters to the interests of its high-wealth clientele. This year, a special committee looked at more than 1,000 reading suggestions from JPMorgan's client advisors and came up with their 16-book list. Darin Oduyoye, chief communications officer for JPMorgan Asset and Wealth Management, who also oversees the list, told CNBC that this year's selections were focused "around the power of curiosity." "You can think of it from a reflection standpoint or transformation standpoint," Oduyoye said. Related: 5 Books Every Small Business Owner Should Read Oduyoye said that they took input from family offices and looked at titles that aimed to prepare the next generation of leaders. Family office respondents were concerned with finding a balance between growing wealth and doing things that positively impact communities. The list includes Shigehiro Oishi's "Life in Three Dimensions: How Curiosity, Exploration, and Experience Make a Fuller, Better Life," which explores happiness and finding meaning in life (the Wall Street Journal called the author's enthusiasm "infectious"), and Suzy Welch's "Becoming You: The Proven Method for Crafting Your Authentic Life and Career" and its related 13-step plan. The list also includes "Raising AI: An Essential Guide to Parenting Our Future" by De Kai, which explores AI's impact on how we live now (and will live in the future). Here are seven more titles from the list. For the complete summer syllabus, click here. Reset: How to Change What's Not Working by Dan Heath Iron Hope: Lessons Learned from Conquering the Impossible by James Lawrence The Tell: A Memoir by Amy Griffin Coming of Age: How Technology and Entrepreneurship are Changing the Face of MENA by Noor Sweid The Technological Republic: Hard Power, Soft Belief, and the Future of the West by Alexander C. Karp and Nicholas W. Zamiska Inevitable: Inside the Messy, Unstoppable Transition to Electric Vehicles by Mike Colias MirrorMirror: The Reflective Surface in Contemporary Art by Michael Petry Related: Four Books Recommended For Current and Aspiring Entrepreneurs
CTV News
4 days ago
- Business
- CTV News
Bank of Montreal quarterly profit rises on wealth management strength
People make their way past the Bank of Montreal building in the Financial District of Toronto, Monday, Aug. 14, 2023. THE CANADIAN PRESS/Spencer Colby Lender Bank of Montreal reported a rise in second-quarter profit on Wednesday, helped by strength in its wealth management business. The bank's adjusted net income rose to $2.05 billion, or $2.62 per share, in the three months ended April 30, compared with $2.03 billion, or $2.59 per share, a year earlier. Reporting by Ateev Bhandari in Bengaluru; Editing by Devika Syamnath, Reuters
Bloomberg
5 days ago
- Business
- Bloomberg
UBS's Khan Sees Rich Customer Demand for Alternative Assets
Wealthy customers of UBS Group AG are looking to buy more alternative assets as they seek to diversify investments during a volatile period for markets and global trade, according to the firm's Asia Pacific chief. 'We see continued demand' for alternatives, Iqbal Khan, the bank's regional president, said in an interview with Bloomberg TV in Hong Kong at the UBS Asian Investment Conference on Wednesday.
