January 2018 Roundup for Professional Advisors

Professional Advisor Roundup San Diego
In our roundup for professional advisors, we explore spendthrift trusts, scams affecting tax professionals and charitable components to business exit plans.

In our roundup for professional advisors, we explore spendthrift trusts, scams affecting tax professionals, charitable components to business exit plans and more. Read below to stay in-the-know on industry news.

Roundup for Advisors

Personal Planner: Trusts for Creative Spenders
Trusts can be quite useful for protecting children. However, for some children, the trust serves an additional function: It protects the principal from being rapidly spent by a child. These trusts have a specific name—they are called “spendthrift” trusts. They allow parents to protect a certain amount of principal, benefitting the “creative spender” children long-term.

Washington News: IRS Warns of Scam Targeting Tax Professionals
On January 9, the IRS released a warning to tax professionals in IR-2018-2 after receiving numerous reports of heightened fraud activity. The reports reveal that cybercriminals are sending emails posing as potential clients or the IRS in an effort to lure sensitive client data from tax practitioners. Learn how to better spot suspicious emails and what to do if you receive one.

Case of the Week: Barbara Banker’s LoBank Letter of Agreement
Barbara worked hard to build a respectable business empire and now owns a drugstore, apartments and a bank named LoBank. She owns a large block of stock in LoBank and would like to gift a portion to a new youth center. LoBank recently signed a letter of agreement for sale of all LoBank stock to MegaBank. What are Barbara’s options for gifting LoBank stock? Can she still make the gift to the new youth center?

Article of the Month: Tax Cuts and Jobs Act
The Tax Cuts and Jobs Act (TCJA) was enacted on December 22, 2017 with three main goals; To simplify the code by doubling the standard deduction, increase employment by reducing the number of corporate deductions and lowering the corporate tax rate, and to lower individual rates by repealing most of the itemized deductions.

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