Family offices and private clients (“Clients”) have complicated investment and estate planning structures that require professionals to understand how to handle the needs from legal, accounting, and tax reporting. One of the planning tools frequently implemented for these Clients is a charitable remainder unitrust (“CRUT”). The CRUT allows for the tax-free liquidation of a highly appreciated asset, the tax-free growth of the assets inside the CRUT, with the income building inside the CRUT only being taxed to the extent of distributions to the lifetime beneficiary. This is a powerful tool if the tax reporting occurs correctly. We have noticed a gap between the estate planning and the tax reporting often resulting in phantom income being taxed to the detriment of the beneficiaries.

In the acquisition of a business, it is important the buyer has a clear understanding of the target’s financial, commercial, operational, technical, human capital, and tax condition. Too often, certain parts of the due diligence do not receive the attention required, either because the firm performing the due diligence does not have the necessary background, or there is a lack of coordination among professionals in different fields of expertise. This is a critical opportunity for the buyer to learn of issues with the target as the nonidentification of key issues will have a financial impact down the road for the buyer.

U.S. tax reporting for U.S. persons with businesses or assets outside the U.S. is complex, legal intensive, and there are many traps for the unwary that can carry serious penalties. The tax preparer must understand the forms to prepare, understand the rules as the tax preparation software has not caught up to the complexity of the reporting, and be prepared to take legal positions to obtain the best result for the client. Too often, tax preparers do not have the necessary background to handle the tax reporting for international clients.

We routinely see mistakes in the reporting on tax returns provided by the previous tax preparer and the tax planning strategy provided in a legal memorandum, thus missing the tax savings desired. This can result for many reasons such as the client did not provide the memorandum to the tax preparer, the tax preparer did not understand how to report the tax strategy, practically the tax strategy did not work, or that the tax preparer and attorney advisor did not work together collaboratively. Our approach is to not make it the responsibility of the client to ensure the tax strategy is carried out, but to have advisors with legal backgrounds at the table with the tax preparer collaborating together to ensure the desired result is carried out.

Fund managers frequently experience a lack of coordination between their legal, accounting, and fund administration services.  Often fund managers receive a preset of services that are not customized to their fund, are faced with minimum service prices, and experience long response times from each set of professionals.  We provide cohesive services amongst professionals customized to the needs of our clients.  This provides our clients with the best services that are tailored to our clients' needs.