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High Net Worth Family Tax Report, Vol. 15, Issue 1

Welcome to Loeb & Loeb’s High Net Worth Family Tax Report. We hope you like our new look and new layout, designed to make it easier to find the articles you’re looking for. 

As we have for more than 15 years, in each issue we bring you in-depth articles highlighting important topics and providing practical insights for high net worth individuals, with a focus on trusts and estates, tax, family offices, and tax-exempt organizations. 

In this issue, senior counsel Christina Hammervold details the beneficial ownership information that many U.S. privately held corporations, limited liability companies and other entities will soon be required to report to the U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN) under proposed regulations. 

In our article on charitable and marital deduction planning for bequests of fractional property interests, we explore a recent tax case that highlights potential pitfalls in this complex area. And in “Dividing a Family Foundation: A Potential Solution for Boards Facing Intra-Family Conflict,” associate Brittney Butts discusses the options for family foundations when the collaborative pursuit of philanthropic goals is challenged by divorce and other family conflicts. 

As the 2022 elections get underway, associate Nick Warshaw has prepared a guide to help readers navigate the donation limits and reporting requirements of the different and sometimes overlapping federal, state and local campaign finance laws. Partner Ryan Austin explains the significant changes to California property tax law affecting transfers of residences and other property from parents to children after the passage of Prop. 19. And finally, senior counsel Jennifer Smith has some important reminders about the 2022 adjustments in transfer tax exemptions and interest rates. 

In this issue 

New Beneficial Ownership Reporting Requirements for Privately Held LLCs and Other Entities

Many privately held limited liability companies (LLCs), corporations and other entities formed or registered to do business within the U.S. will soon be required by federal regulations to file reports to disclose their beneficial ownership and to update those reports to reflect changes to their beneficial ownership on an ongoing basis. Read more here

Pitfalls in Charitable and Marital Deduction Planning for Bequests of Fractional Property Interests

Planning in the context of the estate tax charitable or marital deduction is a complex area, particularly when making bequests of fractional interests in a single asset intended to qualify for one of these deductions. A recent case in this area highlights potential pitfalls that can result in the reduction of these estate tax deductions and consequently in unforeseen estate taxes. Read more here

Dividing A Family Foundation – A Potential Solution for Boards Facing Intra-Family Conflict

Private foundations can be excellent philanthropic vehicles for spouses and family members to collectively pursue their charitable objectives. However, when spouses split or other family conflicts arise, the collaborative pursuit of charitable objectives may no longer be desired or feasible.  

2022 Political Contributions - Highlights of Important Limits and Campaign Finance Rules

With the 2022 elections underway, we wanted to highlight some important campaign finance rules. If you plan to contribute to candidates, ballot measure committees, political parties or political committees (PACs) this election cycle, you must comply with campaign finance laws. Read more here

Changes in California Property Tax Law - Planning Opportunities with Principal Residences

The passage of Proposition 19 by California voters in November 2020 made significant changes to the exemption from property tax reassessment for transfers between parents and children. Acquiring a residence through an LLC can preserve the exemption. Read more here

Reminders - 2022 Adjustments in Transfer Tax Exemptions and Interest Rates

As we approach mid-year, here is 2022 federal tax information that may be helpful as you consider your estate planning options for the rest of the year. Read more here. 

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