Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Monday, June 11, 2018

A Tax World Turned Upside Down For the Rich

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It has become common knowledge that the enacted Tax Cuts and Jobs Act doubled the federal exemption for the gift and estate taxes. What has not been overly publicized, however, is the manner in which the incredibly rich were affected by the new law. Withersworldwide professionals held a tax reform briefing in Manhattan on this past Thursday to broach questions by high net-worth clients that are actually seeing an increase in their taxes due to the reform.

Hedge funding is one platform of investing that has definitely seen a difference. The management fee taken by the company is now no longer deductible. So after carrying charges, the investor will actually be paying taxes on a higher percent of the hedge funds gain than they are receiving.

"The landscape for trusts and other investment vehicles has also dramatically changed under the Trump administration’s tax reform. The law wiped out many tax exemptions and other tax reduction strategies for family offices, according to Withersworldwide professionals."

See Gregory Bresiger, A Tax World Turned Upside Down For the Rich, Financial Advisor, June 8, 2018.

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.

http://lawprofessors.typepad.com/trusts_estates_prof/2018/06/a-tax-world-turned-upside-down-for-the-rich.html

Estate Planning - Generally, Estate Tax, Gift Tax, Income Tax, New Legislation, Trusts | Permalink

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