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Trust Fund Taxes ANYONE WHO HAS ever worked as an employee knows that taxes are withheld (i.e., deducted) from his/her salary. The most common withholdings are for Federal and State income and Social Security taxes. These amounts are withheld from a person's pay, held by the employer, and later paid by the employer to the government. In the majority of cases, this is a smooth, problem-free process. However, on occasion an employer will not pay over these funds and difficulties will arise. This article will address some of the potential pitfalls that can arise when Federal taxes are not paid and what to do to minimize the negative effects. Holding Monies in Trust The Administration of an Estate AN EXECUTOR of an estate is charged with the daunting task of administering that estate. Depending upon the complexity of the property, how it is owned, the provisions of the decedent's will, and the applicable law, the executor has before him various complicated responsibilities that are often best carried out with the guidance and assistance of a knowledgeable adviser. This article outlines some of the basics of effective estate
administration. The tasks described below have been divided into subtasks
that are prioritized and organized by deadlines.
<b>An Introduction to Overseas Asset Protection Trusts</b> By Gary S. Burroughs, Richard S. LeVine and J. Ben Vernazza Let us first dispel some notions as to whether you or a client should be a candidate for this planning strategy. How much net worth should one have to embrace asset protection planning? We will approach our response from the view of how much of your hard-earned assets are you willing to give up to a future creditor or frivolous lawsuit? The answer is not in a quantifiable dollar amount, but in terms of a percentage of assets that have been accumulated. For some may want to protect 100% of their asset base, but for others in might be less, or none at all. So an absolute dollar amount would not be the defining ;.”Cable. The cost to establish and maintain this type of protective structure then becomes the issue. There are some international banks and attorneys that charge setup costs of $20,000 or more, while alternative providers will do the job for less than $7,000. Annual maintenance fees can range from $2,500 per year to upwards of 1½% of assets in trust per year. Now let us get back to who are candidates for asset protection planning. There are two broad categories of prospects for asset protection planning. The first group are professionals: architects, attorneys, dentists, doctors, and of course CPAs. The second group includes everyone else. As CPAs serving many clients during
your career, you have a high risk of being sued for malpractice or of being
a partner in a firm that is sued. The traditional professions (accounting, law,
and medicine) face increasing exposure to plaintiffs' suits in tort. The crisis
in accounting is perhaps the most recent. As Lee Burton described in the Wall
Street Journal in 1995, legal liabilities associated with audit work have become
truly staggering during the 1990's, at some firms consuming about 12 percent
of total revenues, even after insurance reimbursement. In response to opportunistic
lawsuits in the U.S., as well as more aggressive enforcement actions by bank,
insurance and securities regulators against professional advisers, international
lawyers have developed the use of tax neutral overseastrusts (an "overseas trust")
to protect the assets of their U.S. clients. This article will describe how
an overseas trust works and how it may benefit you or your clients.
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