What to expect from this blog

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Salim A. Nathani

I have committed to write a post each month and set my calendar to do so. I might just surprise myself and write more. Time will tell. These posts will generally fall under one of the following categories:

  • State of global and US economy

  • Identifying the long term trends in financial markets

  • Issues pertaining to personal finance specifically in estate, tax and investments

  • Managing investment risk

  • Info and updates on Benzer Capital, our team, my life and work

Some may find the topics exciting and others not so much. I will attempt to make it a fun read with pictures, stories, videos and podcasts. Perhaps a sprinkle of the famous Mr. Nathani Quotes or humor of the day.

If you are wondering who I am or want to learn more about my work, you can check out this link and learn more. You can also read my story and what motivated me to get started on the path to generational planning.

Until next time.

Salim A. Nathani

Tax Planning 2018

Are there any opportunities for executives with large amounts of corporate stock in the 2018 tax law changes?

 

With the new tax law changes, there will be many executive who may be moving to a lower tax bracket. Such executives may want to take advantage of several opportunities before the law sunsets on Jan. 1, 2026. First consideration can be to exercise option on nonqualified stock options [NQOs] at the lower tax rate. Second, consider exercising incentive stock options [ISOs] because they may no longer be subject to the Alternative Minimum Tax [AMT]. For more significant tax savings an Executive can consider electing Section 83(b) with respect to any future grants, whereby allowing more of the appreciation in the shares to be taxed at capital gains rates rather than as ordinary income.

 

If these considerations apply to you and you have further questions we can answer and provide further guidance, reach us at info@benzercapital.com | www.benzercapital.com | [713.979.2300].

Overcome Bad Trust Advice

With tax law changes many trust and trust advice may be outdated and overly simplistic. To address this issue consider the following ideas:

- The current estate, gift and GST tax exemption is a whopping $11.8 million, but that amount will be halved in 2026, so you and your family should try to mitigate before such change. Using the exemption requires that the person makes a gift that removes funds from their estate.
- Do you need access to assets that you gave away? Consider strategies to create adequate access.
- Determine if you can benefit from a traditional grantor trust (grantor sets up the trust and pays the income tax) or a non-grantor trust (the trust, not the grantor, pays income tax on trust income).

Consult your estate planner or reach out to us at
www.benzercapital.com [713.979.2300] for further guidance.