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Regulatory & Tax

Increasing Global Regs Mean Higher Compliance Costs for Family Offices

An increasing global regulatory burden is leading to higher compliance costs for some family offices. The cost of wealth management has been steadily rising over the past few years, as governments demand more transparency and tighter controls on the financial services industry. The wealth management industry faces a cost of £4.5 billion ($5.9 billion) in the U.K. alone, much of which can be attributed to complying with added regulations, according to the Wealth of Opportunities report published by the British Bankers’ Association and the Wealth Management Association. Research fr...

Asia’s Wealthy Families Keep Wealth Close to Home

Asia’s wealthiest families seem to be keeping their wealth closer to home. As capital becomes more mobile and Asia’s wealth expands to historic levels, offshore jurisdictions in the region have cornered the market for wealth management, efficient taxation and global access. Here’s a closer look at Asia’s preferred offshore jurisdictions among the wealthy in India and China. Half of India’s offshore wealth is in Asia. While the political discourse in India is still heavily focused on claiming taxes lost to Swiss bank accounts, the Bank of International Settlements (BIS) main...

How Family Offices Can Navigate Lender Case Tax Ruling

A key ruling from the U.S. Tax Court presents a new challenge for family offices. In last year’s Lender Management v. Commissioner, TC Memo 2017-246 “Lender” case, the court ruled in favor of reclassifying investment expenses. Investors and investment companies may no longer claim their investment expenses as tax deductions. However, legitimate family offices can restructure these as management expenses to gain business expense treatment. Lender Management LLC is a family office that manages the wealth, inherited from the founder of Lender’s Bagels Harry Lender, of three families. ...

The Biggest Risk to Your Estate Plan

Much of the estate planning process addresses essential questions about taxation, trust structure, management of assets and expected returns. But a recent survey conducted by TD Wealth finds that the biggest issue in estate planning is often the least talked about - family disputes. Forty-four percent of attorneys, trust officers and accountants who responded to the survey said conflicts and misunderstandings between family members is the biggest risk to an individual's inheritance. "Minimizing the estate taxes is the easy part, but the hard part is the family dynamics,” Ray Radigan, hea...

Indian Investment Landscape

Indian Investment Landscape

MarketCurrents welcomed Bharat Bhise of Bravia Capital in New York as well as Nitai Utkarsh of HeroMoto Corp’s family office based out of Delhi. Sumehr Sondhi moderated this panel on The Indian Investment Landscape.

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A Look at Family Offices in LatAm: Q&A With Martin Litwak

Jul 23 – 27. 2018
The number of Latin American family offices has grown in recent years. Martin Litwak, CEO of boutique law firm Litwak & Partners, has experienced this growth first hand. In 2017, he created Latin America’s first multi-family office that focuses exclusively on legal, trust and tax matters. In the following Q&A he explains the trends impacting family offices in the region and the unique challenges they face.

Indian Angel Investors Get Tax Relief

India’s Income Tax Department has abolished the so-called “angel tax” for investors in startups who meet certain conditions. The tax has been hotly debated by startups since it impeded getting much needed capital at the seed stage. As per a notification issued on May 24, Indian angel investors are now exempt from tax on investments in startups where the face value does not exceed Rs10 crore (approximately US$1.5 million) inclusive of paid-up capital and share premiums. To be exempt, angel investors also need to have a minimum net worth of Rs2 crore (approximately US$300,000) or ...

Investing Through Borders

April 23 - 27. 2018
Last week, business circles in Mumbai were abuzz with the news that the real estate billionaire Surendra Hiranandani had obtained a Cyprus citizenship and relinquished his Indian one. Before anyone could say ‘live tax-free’ he was quick to clarify that the reason he was leaving the shores was the ease of travel a European passport afforded, providing quick entry to most countries in the world.