Jonathan L. Grob

McGrath North is sponsoring and conducting our 14th Annual Seminar for Accounting Professionals in Omaha, Nebraska.  

After a matriarch and/or patriarch of a family (often referred to as the first generation or “G1”) accumulates wealth, whether through closely held business arrangements or other investments, the G1 generation begins to consider how and in what form the next generations (children being “G2”, grandchildren being “G3”, and so on) should become involved. Once the G1 generation has made the decision to include subsequent generations in either wealth management or business operations, that G1 generation has inevitably created some form of a “family office,” whether intentionally or unintentionally. The manner in which a family office can be structured varies greatly, but the common theme is that it is a way of putting certain formalities around the manner in which a family manages wealth and perpetuates the family’s shared purpose and values.  

Estate and gift tax planning frequently involves the use of irrevocable trusts that are established during life. Moreover, establishing an irrevocable trust at death is a very common estate planning tool to assist in the protection of wealth for the benefit of family and other beneficiaries. Some trusts are designed to hold assets perpetually into the future. Since Nebraska allows trusts to last “forever” due to the abolition of the so-called rule against perpetuities, it is important for trusts to include provisions that address changes in circumstances. One way to allow a Trustee or other named “fiduciary” to make changes to a trust is by including a so-called “decanting” provision.