We offer comprehensive business, estate, and tax planning strategies for entrepreneurs and investors looking to protect their assets, lower risks, and mitigate taxes across multiple fronts.
10,000+
We have helped over ten thousand families protect & preserve their assets.
1,000,000+
Our mission is to empower 1 million families with robust estate & tax strategies.
1,000,000,000+
We have lowered over 1 billion dollars worth of taxes and high-interest debt for our clients.
Family offices traditionally offer comprehensive legal, tax, and financial management for ultra-wealthy families, applying business-like strategies to personal wealth. However, with entry points often starting at $30+ million in net worth, most families miss out on this integrated support.
Our "mini family office™" brings this holistic approach to a broader audience. We align your legal, tax, and financial strategies under one roof, creating a centralized wealth roadmap™ tailored to your needs. This unified approach is more efficient and cost-effective, ensuring that all your advisors work together to strengthen, not counteract, each other’s efforts.
Backed by cases & codes
Every strategy that we recommend or incorporate is backed by court cases, IRS codes, and official publications and reports.
Peace of mind approach
We offer clients strategies that are extremely creative and innovative, but are 100% in compliance with the law and offer peace of mind.
What we offer
Using the "mini family office" approach, we help our client evaluate and implement decisions taking into account the "law, tax, and financial" perspectives. Here are the estate planning entities that we offer:
Incorporations and LLCs
Partnerships and FLPs
Revocable trusts and wills
Irrevocable and complex trusts
Private foundations
An evaluation of legal, tax, and financial
Taxes impact every single dollar that we earn, control, and pass-on to the next generation in several different ways. We refer to this as the Tax Iceberg™, where every decision is evaluated from several tax perspectives. We evaluate, calculate, and create a game-plan to mitigate these layers of taxes:
State and Federal Income tax
Federal Capital gains tax
Federal estate and gift tax
State estate and inheritance tax
State probate and legal costs
Step-up basis rules for estates and trusts
Evaluation of alternative tax structures: Excise taxes
We offer a comprehensive set of private foundation strategies that are designed to help entrepreneurs and investors transform into purpose-driven impact investors by integrating a private foundation. We offer the following services for private foundations:
Creation, registration, and formulation of your private foundation
Alignment of private foundation with wills, trusts, and corporations
Annual tax reduction (AGI) by leveraging foundations strategically
Donate assets and cash to remove assets from your estate
Asset liquidation and business exits with the integration of a foundation
Foundation consulting to help your family navigate the investment fund
Help with operations, technology, grants, and donation to charities
We have created and represented thousands of nonprofit organizations across the United States and Canada in a variety of roles and functions. Here are a few of the services we offer to nonprofits:
Creation of state incorporation documents
Approval by the IRS as a tax-exempt organization
Bylaws, operating agreements, and contracts
Grant program evaluations and applications
Technology and operations systems
Strategic philanthropy: Profit + Purpose™
Branded estate and tax services customized to your current offers
Stand out from competitors in your marketplace by connecting the dots
Unlock hidden revenue streams right at your fingertips (existing clients)
Increase the LTV of your clients by offering important and essential services
Boost profits and revenue by monetizing existing relationships and the trust you've built
Tap into the Great Wealth Transfer Movement that will last for 25-30 years
Includes the technology, tools, training, templates, and team to support this joint venture
A Word From Our Clients
Here are what a few of our current clients had to say...
I've gained more clarity on how the law works in the past year working with Law & Tax than I've gained in 25 years of working with other law and CPA firms.
Matthew
It's been hard to replace the level of subject matter expertise that Sid and his team offer around these legal topics. They are true masters!
Adriana
Law and Tax has helped me avoid lawsuits, audits, and mistakes that could have destroyed everything I've built in the past 40 years! They are God sent!
Justin
Two Real-Life Estate & Tax Cases We Are Working On
Here's a "behind-the-scenes" look at some of the strategies that we are in the midst of formulating and implementing for our clients...
Profile: Business Owners And Investors
We are collaborating with the owners of a consulting firm who plan to exit their business within the next two years and reinvest their profits across various asset categories. They prefer to avoid a 1031 exchange in order to diversify their portfolio.
Our focus is on aligning their corporations, wills, revocable trusts, irrevocable trusts, and foundations from a legal standpoint, while also coordinating various tax strategies to address both current and future tax obligations.
Here are a list of tax strategies that we look at:
- Reducing income taxes on the high AGI that they currently face
- Reducing or avoiding capital gains taxes on the business sale
- Avoiding or lowering federal trust and estate taxation
- Avoiding or lowering capital gains on other asset liquidations
- Avoiding or lowering Probate and legal costs
- Avoiding or lowering state inheritance and estate taxes
- Navigating the old vs new step-up basis rules and changes
We are helping them embrace a Mini Family Office™ approach, where their business advisory, tax, and finance teams are aligned and operating from the same playbook.
One of their main goals in life is to create a legacy that's deeply rooted in social and humanitarian contribution - their vision is to incorporate the philosophy encouraged by the tax code: Do Well By Doing Good In The World!
Profile: High-W2 Wage Earners And Investors
We are working with a power couple in their 40s, a lawyer and an engineer, with high AGI, paying six-figures in income taxes annually. They have two children, ages 10 and 14, and several categories of assets and investments.
Their goals include:
- Reducing their annual tax burden
- Increasing their charitable contributions
- Enhancing their insurance coverage
- Creating trust funds for their children
- Diversifying their investment portfolio
They were referred to us by a joint venture partner, a seasoned Financial and Insurance Advisor at a large investment firm who has been working with the couple for a few years.
We are helping them establish a combination of entities, including a limited liability company (LLC), a revocable trust, a pour-over will, an irrevocable life insurance trust (ILIT), an irrevocable trust, and a private foundation.
Each entity serves a distinct purpose, but together they create a cohesive strategy. By restructuring their existing assets (stocks, funds, crypto, and real estate) into LLCs, trusts, and foundations, we aim to reduce their current tax burden by 30% annually, while formulating alternative methods to lower "future taxes and costs" as well.
This approach also provides greater control over their investments, minimizes personal risk, and allows them to utilize gifting laws to establish robust insurance policies for their children.
Upcoming Events
Our affiliate courses are designed by experts who have years of experience and proven results in the affiliate marketing industry.
The Tax Code Loves Philanthropists
Why Private Foundations Are So Popular Among The Ultra Wealthy And Why Every Entrepreneur, Investor, and High-Income Earner Should Consider Starting One.
Building a Legacy: Why Entrepreneurs and Investors Should Consider Starting a Family Foundation
Having worked with high-income-earners, high-net-worth individuals, entrepreneurs, and successful investors, for the past two decades in various legal and consulting roles, one thing is crystal clear - the pursuit of a lasting legacy often extends far beyond personal wealth accumulation.
It often involves building and creating a family legacy that involves managing an extensive portfolio of assets, in addition to social, humanitarian, and charitable contributions. A family foundation is a powerful vehicle that was enacted into the law to facilitate those goals and dreams and encourages people to view success in terms of financial success, and humanitarian impact - they two go hand-in-hand.
Charitable acts can be viewed as a one-time donation, where as philanthropy is a more formal and structured method to contribution. The private foundation (sometimes called family foundation) is the legal vehicle that provides the structure to transform your legacy into one that extends beyond mere financial success.
This article explores why starting a family foundation is a strategic move for wealth preservation, tax efficiency, and fostering a culture of philanthropy and investment acumen within the family.
1. The Vision: A Multi-Generational Impact Investment Fund™
Think of the private foundation as a multi-generational impact investment fund™ that allows families to donate pre-taxed income, appreciated or income-producing assets, or even proceeds from a profitable sale, while enjoying tax benefits, and control over a tax-free investment fund that is managed by family members and empowers charitable causes.
In short: A family foundation serves as an enduring institution that transcends generations, functioning as an impact investment fund that benefits both the family and society.
By establishing a family foundation, entrepreneurs and investors can strategically allocate their wealth to charitable causes while teaching their children the principles of investing, entrepreneurship, and giving back to the community. It serves as a place of employment for future generations, allowing you to pass on your knowledge on entrepreneurship and investing, while jointly engaging in charitable work at the same time - it's a great way to "lead by example".
2. Maximizing Tax Benefits and Wealth Preservation
Pre-Taxed Income Donations: Donating a portion of Adjusted Gross Income (AGI) or "taxable income" to a family foundation allows for significant tax deductions, reducing taxable income (up to 30% for individuals).
Asset Donations: Transferring assets such as stocks, real estate, or proceeds from a business sale to the foundation removes these assets from the donor's estate, circumventing gift and estate taxes and potentially reducing capital gains taxes.
Estate Tax Avoidance: By removing assets from their estate, donors can significantly reduce estate taxes, ensuring more wealth is preserved for future generations and charitable endeavors.
3. Teaching the Next Generation: Investing, Entrepreneurship, and Philanthropy
A family foundation provides a unique platform for teaching the next generation about financial management, entrepreneurship, and the importance of giving back. This hands-on experience equips the next generations with the skills and values necessary to continue the family's legacy of wealth creation and philanthropy.
Investment Training: Through the foundation, family members can learn about investment strategies, portfolio management, and financial decision-making, gaining practical experience in growing and managing wealth.
Entrepreneurship Skills: Involving children in the foundation's operations teaches them the fundamentals of running an organization, fostering entrepreneurial thinking and leadership skills.
Philanthropic Values: Engaging in charitable activities through the foundation instills a sense of social responsibility, encouraging family members to contribute positively to society and find purpose in their work.
4. The Strategic Benefits: Tax Breaks and Financial Growth
Tax-Free Investment Growth: The foundation can invest its assets without incurring capital gains taxes, allowing the fund to grow more efficiently and provide greater resources for charitable activities.
Compensation For Work Performed: Family members can receive reasonable compensation for their work in the foundation, providing financial support while contributing to its mission.
Asset Preservation: Establishing a foundation helps protect valuable assets from being spent or misused by heirs, ensuring that wealth is preserved and used for meaningful purposes.
5. Creating a Structured Approach to Charitable Giving
A family foundation offers a more structured and consistent approach to philanthropy compared to ad-hoc donations. This structure enhances the impact of charitable donations and ensures that the family’s philanthropic goals are met.
Consistent Donations: By setting up a foundation, the family commits to regular, sustained charitable contributions, amplifying their impact over time.
Alternative To Traditional Investing: The foundation's investment fund or assets do not incur income tax (around 20-30%) or capital gains tax (20%), nor are they subject to gift or estate taxes (18-40%), and are not included in the donor's estate and not subject to probate. Think of it this way: In exchange, you are committing to "powering and funding" social and charitable causes by providing grants and donations that equal at least 5% of the fund's value.
Strategic Grant-making: The foundation can develop a strategic grant-making plan, identifying and supporting high-impact projects and organizations that align with the family’s values and mission.
Long-Term Vision: A family foundation allows for long-term planning and vision, ensuring that charitable efforts are not only impactful today but also sustainable in the future.
6. Steps to Establishing a Family Foundation
Define the Mission and Vision: Clearly articulate the foundation’s mission, focusing on areas of impact that resonate with the family’s values and goals.
Legal Structure and Compliance: There are multiple steps involved in creating and filing your private foundation, including state level filings, and IRS (federal) approval of your entity. It could take several months to get all the approvals so it's important to work on these strategies early in the year to ensure you can take the deduction.
Initial Funding and Investment Strategy: Determine the initial funding for the foundation and develop an investment strategy that aligns with its mission and goals. Again- timing is everything, the donation MUST be made by the December 31 of the year you are trying to claim the deduction.
Governance and Management: Establish a governance structure, including a board of directors or trustees, to oversee the foundation’s activities and ensure alignment with its mission.
Grantmaking and Program Development: Develop a grantmaking strategy, identify potential partners and projects, and create programs that align with the foundation’s mission.
7. Case Study: A Legacy of Impact
Consider the example of a tech entrepreneur who established a family foundation to support education and environmental conservation.
By transferring a portion of his company’s stock to the foundation before an exit, he was able to leverage the high gift tax exemption limits, significantly reducing his taxable estate.
The foundation’s investments in renewable energy projects generated substantial returns, funding scholarships and conservation efforts while teaching his children the importance of sustainable investing and philanthropy.
The foundation not only preserved the family’s wealth but also created a lasting legacy of impact.
Conclusion: A Strategic Move for Family and Society
Starting a family foundation is a strategic move for successful entrepreneurs and investors, offering a powerful way to preserve wealth, achieve tax efficiency, and create a lasting impact.
By thinking of the foundation as a multi-generational impact investment fund, families can ensure that their wealth benefits both their heirs and society. This approach provides a structured, sustainable way to support charitable causes, teach the next generation about financial management and philanthropy, and enjoy significant tax benefits.
"We see our philanthropic work as an opportunity to learn and grow," Zuckerberg stated in a public letter. "It's a chance to understand the world better and to improve how we approach giving over time."
Next Steps
Schedule a consultation or attend a free workshop (details below).
Develop a Strategic Plan: Outline your foundation’s mission, vision, and strategic goals, ensuring alignment with your family’s values and objectives.
Launch and Scale: Begin with an initial funding round and gradually scale your foundation’s activities, leveraging investments to grow your impact over time.
The integration and alignment of your foundation could take several years, especially if you want to leverage the deductions limits more closely, which allow a 30% AGI reduction for cash and 20% AGI for assets.
By starting a family foundation, entrepreneurs and investors can create a lasting legacy that transcends generations, fostering a culture of giving, investing, and entrepreneurial spirit within their families while making a meaningful contribution to society.
This structured approach not only maximizes tax benefits and preserves wealth but also ensures that charitable efforts are impactful and sustainable. For those committed to leaving a legacy of both financial success and social good, a family foundation offers the perfect vehicle to achieve these goals.
We invite you to attend a free workshop where we discuss the above strategies in more depth and provide you with an opportunity to speak with our attorneys and tax professionals who operate in the world of foundations, day-in and day-out.
ATTEND A FREE WORKSHOP:
We invite you to attend a free workshop where we discuss the above strategies in more depth and provide you with an opportunity to speak with our attorneys and tax professionals who operate in the world of foundations, day-in and day-out.
Enhance your estate & tax planning knowledge
Get familiar with estate and tax planning concepts, you are going to use in for the rest of your life, and it also impacts your wealth after your death!
The Tax Code Loves Philanthropists
Why Private Foundations Are So Popular Among The Ultra Wealthy And Why Every Entrepreneur, Investor, and High-Income Earner Should Consider Starting One.
Building a Legacy: Why Entrepreneurs and Investors Should Consider Starting a Family Foundation
Having worked with high-income-earners, high-net-worth individuals, entrepreneurs, and successful investors, for the past two decades in various legal and consulting roles, one thing is crystal clear - the pursuit of a lasting legacy often extends far beyond personal wealth accumulation.
It often involves building and creating a family legacy that involves managing an extensive portfolio of assets, in addition to social, humanitarian, and charitable contributions. A family foundation is a powerful vehicle that was enacted into the law to facilitate those goals and dreams and encourages people to view success in terms of financial success, and humanitarian impact - they two go hand-in-hand.
Charitable acts can be viewed as a one-time donation, where as philanthropy is a more formal and structured method to contribution. The private foundation (sometimes called family foundation) is the legal vehicle that provides the structure to transform your legacy into one that extends beyond mere financial success.
This article explores why starting a family foundation is a strategic move for wealth preservation, tax efficiency, and fostering a culture of philanthropy and investment acumen within the family.
1. The Vision: A Multi-Generational Impact Investment Fund™
Think of the private foundation as a multi-generational impact investment fund™ that allows families to donate pre-taxed income, appreciated or income-producing assets, or even proceeds from a profitable sale, while enjoying tax benefits, and control over a tax-free investment fund that is managed by family members and empowers charitable causes.
In short: A family foundation serves as an enduring institution that transcends generations, functioning as an impact investment fund that benefits both the family and society.
By establishing a family foundation, entrepreneurs and investors can strategically allocate their wealth to charitable causes while teaching their children the principles of investing, entrepreneurship, and giving back to the community. It serves as a place of employment for future generations, allowing you to pass on your knowledge on entrepreneurship and investing, while jointly engaging in charitable work at the same time - it's a great way to "lead by example".
2. Maximizing Tax Benefits and Wealth Preservation
Pre-Taxed Income Donations: Donating a portion of Adjusted Gross Income (AGI) or "taxable income" to a family foundation allows for significant tax deductions, reducing taxable income (up to 30% for individuals).
Asset Donations: Transferring assets such as stocks, real estate, or proceeds from a business sale to the foundation removes these assets from the donor's estate, circumventing gift and estate taxes and potentially reducing capital gains taxes.
Estate Tax Avoidance: By removing assets from their estate, donors can significantly reduce estate taxes, ensuring more wealth is preserved for future generations and charitable endeavors.
3. Teaching the Next Generation: Investing, Entrepreneurship, and Philanthropy
A family foundation provides a unique platform for teaching the next generation about financial management, entrepreneurship, and the importance of giving back. This hands-on experience equips the next generations with the skills and values necessary to continue the family's legacy of wealth creation and philanthropy.
Investment Training: Through the foundation, family members can learn about investment strategies, portfolio management, and financial decision-making, gaining practical experience in growing and managing wealth.
Entrepreneurship Skills: Involving children in the foundation's operations teaches them the fundamentals of running an organization, fostering entrepreneurial thinking and leadership skills.
Philanthropic Values: Engaging in charitable activities through the foundation instills a sense of social responsibility, encouraging family members to contribute positively to society and find purpose in their work.
4. The Strategic Benefits: Tax Breaks and Financial Growth
Tax-Free Investment Growth: The foundation can invest its assets without incurring capital gains taxes, allowing the fund to grow more efficiently and provide greater resources for charitable activities.
Compensation For Work Performed: Family members can receive reasonable compensation for their work in the foundation, providing financial support while contributing to its mission.
Asset Preservation: Establishing a foundation helps protect valuable assets from being spent or misused by heirs, ensuring that wealth is preserved and used for meaningful purposes.
5. Creating a Structured Approach to Charitable Giving
A family foundation offers a more structured and consistent approach to philanthropy compared to ad-hoc donations. This structure enhances the impact of charitable donations and ensures that the family’s philanthropic goals are met.
Consistent Donations: By setting up a foundation, the family commits to regular, sustained charitable contributions, amplifying their impact over time.
Alternative To Traditional Investing: The foundation's investment fund or assets do not incur income tax (around 20-30%) or capital gains tax (20%), nor are they subject to gift or estate taxes (18-40%), and are not included in the donor's estate and not subject to probate. Think of it this way: In exchange, you are committing to "powering and funding" social and charitable causes by providing grants and donations that equal at least 5% of the fund's value.
Strategic Grant-making: The foundation can develop a strategic grant-making plan, identifying and supporting high-impact projects and organizations that align with the family’s values and mission.
Long-Term Vision: A family foundation allows for long-term planning and vision, ensuring that charitable efforts are not only impactful today but also sustainable in the future.
6. Steps to Establishing a Family Foundation
Define the Mission and Vision: Clearly articulate the foundation’s mission, focusing on areas of impact that resonate with the family’s values and goals.
Legal Structure and Compliance: There are multiple steps involved in creating and filing your private foundation, including state level filings, and IRS (federal) approval of your entity. It could take several months to get all the approvals so it's important to work on these strategies early in the year to ensure you can take the deduction.
Initial Funding and Investment Strategy: Determine the initial funding for the foundation and develop an investment strategy that aligns with its mission and goals. Again- timing is everything, the donation MUST be made by the December 31 of the year you are trying to claim the deduction.
Governance and Management: Establish a governance structure, including a board of directors or trustees, to oversee the foundation’s activities and ensure alignment with its mission.
Grantmaking and Program Development: Develop a grantmaking strategy, identify potential partners and projects, and create programs that align with the foundation’s mission.
7. Case Study: A Legacy of Impact
Consider the example of a tech entrepreneur who established a family foundation to support education and environmental conservation.
By transferring a portion of his company’s stock to the foundation before an exit, he was able to leverage the high gift tax exemption limits, significantly reducing his taxable estate.
The foundation’s investments in renewable energy projects generated substantial returns, funding scholarships and conservation efforts while teaching his children the importance of sustainable investing and philanthropy.
The foundation not only preserved the family’s wealth but also created a lasting legacy of impact.
Conclusion: A Strategic Move for Family and Society
Starting a family foundation is a strategic move for successful entrepreneurs and investors, offering a powerful way to preserve wealth, achieve tax efficiency, and create a lasting impact.
By thinking of the foundation as a multi-generational impact investment fund, families can ensure that their wealth benefits both their heirs and society. This approach provides a structured, sustainable way to support charitable causes, teach the next generation about financial management and philanthropy, and enjoy significant tax benefits.
"We see our philanthropic work as an opportunity to learn and grow," Zuckerberg stated in a public letter. "It's a chance to understand the world better and to improve how we approach giving over time."
Next Steps
Schedule a consultation or attend a free workshop (details below).
Develop a Strategic Plan: Outline your foundation’s mission, vision, and strategic goals, ensuring alignment with your family’s values and objectives.
Launch and Scale: Begin with an initial funding round and gradually scale your foundation’s activities, leveraging investments to grow your impact over time.
The integration and alignment of your foundation could take several years, especially if you want to leverage the deductions limits more closely, which allow a 30% AGI reduction for cash and 20% AGI for assets.
By starting a family foundation, entrepreneurs and investors can create a lasting legacy that transcends generations, fostering a culture of giving, investing, and entrepreneurial spirit within their families while making a meaningful contribution to society.
This structured approach not only maximizes tax benefits and preserves wealth but also ensures that charitable efforts are impactful and sustainable. For those committed to leaving a legacy of both financial success and social good, a family foundation offers the perfect vehicle to achieve these goals.
We invite you to attend a free workshop where we discuss the above strategies in more depth and provide you with an opportunity to speak with our attorneys and tax professionals who operate in the world of foundations, day-in and day-out.
ATTEND A FREE WORKSHOP:
We invite you to attend a free workshop where we discuss the above strategies in more depth and provide you with an opportunity to speak with our attorneys and tax professionals who operate in the world of foundations, day-in and day-out.
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IMPORTANT: LEGAL DISCLAIMER
The information contained on this page does not constitute legal, tax, of financial advice and is strictly for educational and entertainment purposes only. Please consult an attorney or advisor in your area to get a second opinion on legal matters. We are a consulting firm that houses attorneys, accountants, and other licensed professionals who who execute strategies for our clients. No attorney-client relationship is formed by scheduling a call, filling out forms, attending workshops, participating in the Hotline, or by sending us an email.