Help Clients Manage Complexity

Entering the market isn’t an all-or-nothing proposition. Wary investors may find it more palatable to slowly dip their toes in the water using dollar-cost averaging, particularly during volatile or declining markets. In this white paper, our research examines the benefits and potential costs of a staged market entry.

READ MORE

Many investors turn to passive ETFs or mutual funds for consistent delivery of low-cost, market-like returns. In addition, these strategies tend to be tax efficient, deferring the realization of most (or all) capital gains until an investor sells. Yet taxable investors who go this route end up leaving after-tax returns on the table.

READ MORE

How do the rule changes for required minimum distributions impact your client’s estate plan? In this white paper, we detail the implications of the 10-year distribution rule of the SECURE Act legislation on estates, focusing on the tax implications for retirement accounts and Roth IRA conversions.

READ MORE

The rare convergence of lower income this year, negative returns in many sectors, and charitable-giving tax breaks creates an opportunity to grow future wealth for your clients. In this white paper, we quantify the benefits of converting a traditional retirement account to a Roth under various tax situations. Does your client expect to be in a lower tax bracket than usual this year or will they be subject to higher tax rates in the future? If so, a window of opportunity is open.​

READ MORE

The current market has brought both historically low interest rates and higher stock volatility. For fiduciaries, this environment presents several challenges: how do you invest assets to generate the income that current beneficiaries need and ensure that trust assets will last for the beneficiary’s lifetime? What are some tax management strategies to increase the impact of the trust? This research illustrates various ways fiduciaries can fulfill their fiduciary duties and better meet beneficiary needs in today’s environment.

READ MORE

Building a strong culture begins with knowing your values—because one thing we’ve learned is that successful families weave their values into their daily lives. Values subtly influence our decisions and guide our actions. But most of us haven’t actively articulated our ideals since it can be difficult to express something that’s such an integral part of ourselves.

READ MORE

In a series of research papers that Bernstein has co-authored together with the Lifespan Research Foundation, we have published the following:​

• Wealthy, Healthy and Wise: What an 80-Year Study Tells Us About Finding Meaning in Success​
• When All Things Aren’t Equal: How to Divide Assets Without Dividing Your Family​
• Connecting Through Crisis: Drawing Families Together in Times of Loss

The pandemic has spurred many family offices to revisit their philanthropic strategies. In this research article published in Trusts & Estates magazine, our research team reveals the five key themes that have emerged from recent discussions with large family foundations and family offices with long-standing charitable track records. The article explores families’ top concerns, multigenerational dynamics, and the creative strategies being employed during this time of upheaval.​

READ MORE

Business owners who want to make long-term philanthropic contributions have a number of options. Their philanthropic goals and the assets they want to give are two key factors to consider. In a recent Trusts & Estates article, we compare the federal tax benefits of gifting shares of closely held companies to the business owner’s private foundation (PF) or to public charities through supporting organizations (SO), in accordance with the Bipartisan Budget Act of 2018.

READ MORE

The $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act recognized the vital role nonprofits play. To ensure they can continue to provide critical assistance to their communities, the bill relaxed some of the limitations on charitable income tax deductions for individuals and corporations—a welcome relief for organizations starved for funds.

READ MORE

We challenge the reflexive decision to avoid a FNGT when US beneficiaries are involved. In certain cases, creating a FNGT for a US beneficiary or keeping a FNGT offshore and deliberately accumulating its income—even if all beneficiaries are US taxpayers—may prove advantageous. But under what circumstances? Time horizon proves to be the key determinant of whether the approach pays off.

READ MORE

From Bernstein’s Global Families Institute, who STEP named Financial Advisor Team of the Year, comes research suggesting tax-efficient ways to tap offshore wealth. Ultimately, they conclude that compounded tax savings combined with active gain harvesting can overcome key hurdles.

READ MORE