When planning your estate, you can carefully craft your power of attorney documents to suit your own needs. However, there’s always the potential your chosen agent will misuse the powers granted to them. Even if you trust that person implicitly, building some safeguards into your power of attorney document can be quite helpful and give… Continue Reading
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Revocable vs. Irrevocable Trusts: A Comparative Analysis
Posted in Tax & Estate PlanningAs you go through your estate planning process, it’s important you fully understand the options and tools available for you to accomplish your goals. For example, knowing the difference between revocable and irrevocable trusts is crucial to your estate planning success. Here is a brief analysis of each type of trust and how they differ… Continue Reading
The Impact of Federal Tax Cuts on the US Virgin Islands
Posted in Tax & Estate PlanningIn December, both houses of Congress passed and President Trump signed into law the “Tax Cuts and Jobs Act”, commonly known as the “tax reform bill.” The $1.5 trillion tax package reduced individual tax rates for the next eight years while cutting the top corporate tax rate to 21 percent indefinitely. The tax bill will… Continue Reading
4 Valid Reasons Why You May Choose to Challenge a Will
Posted in Tax & Estate PlanningWhile the clear majority of wills pass through the probate process without much problem, there are some circumstances in which a person (usually an unhappy beneficiary) decides to challenge a will’s validity. There are many reasons why people may decide to challenge a will—and not just because they are bitter about not inheriting what they… Continue Reading
Checklist for Your Estate Plan after a Major Life Event
Posted in Tax & Estate PlanningAnytime you go through a major life event or milestone, it is important you review your estate plan to ensure it is up to date and properly reflects your current life circumstances and goals. Whether it’s a marriage, a divorce, the birth of a new child, a new job or a big move, anything that… Continue Reading
Checklist for Starting a New Business in the US Virgin Islands
Posted in Tax & Estate PlanningOwning your own business can be extremely rewarding, but getting it started is often a daunting prospect. Our team of experienced business attorneys has assembled a simple checklist of the steps you need to take to get your new company up and running. Below are the key steps to start your new business in the… Continue Reading
How Does Durable Power of Attorney Work?
Posted in Tax & Estate PlanningA durable power of attorney is one of the simplest and most reliable ways to allow someone else to manage your finances if you are incapacitated and unable to act on your own accord. If you do not arrange for durable power of attorney, it’s likely your family will have to go to court to… Continue Reading
Federal Lawmakers Look to Repeal Estate Tax
Posted in Tax & Estate PlanningThroughout the 2016 campaign, then-candidate Donald Trump repeatedly voiced his distaste for the estate tax, which he and the others who oppose it have taken to calling the “death tax.” Although no legislation to repeal the tax has been proposed in Congress over the past few months, it certainly seems likely that lawmakers will try… Continue Reading
Checklist for Covering Your Legal Obligations After the Death of a Family Member
Posted in Tax & Estate PlanningThe time immediately following the death of a loved one can be incredibly stressful and hectic. If you have been appointed to the role of estate administrator, you will have a lot of work to do in the near future. Here is a checklist of some of the most important responsibilities you must take care… Continue Reading
Determining Eligibility for EDC Tax Incentives in the US Virgin Islands
Posted in Government Relations, Tax & Estate PlanningAre you wondering whether you qualify to receive benefits from the Economic Development Commission in the U.S. Virgin Islands? To be considered eligible for benefits, applicants must meet the following requirements: Invest a minimum of $100,000 outside of their inventory in a business or industry that is determined to advance the best interest of the… Continue Reading
IRS Makes Changes, Clarifications to Estate Tax Lien Discharge Process
Posted in Tax & Estate PlanningOver the past several months, the U.S. Internal Revenue Service has made some changes to the releasing of liens related to the estates of deceased individuals. This started last summer, when the agency began funneling the processing of Form 4422 to its Estate Tax Lein Group. Form 4422 becomes necessary when an estate needs to… Continue Reading
Tips for Negotiating a Contract that Meets Your Needs
Posted in Tax & Estate PlanningBefore you finalize any business contract, you will likely go through a period of negotiations to figure out all the details of the agreement in question. If you are new to the process of contract negotiation, it’s important to understand how you can advocate for your best interest without asking for too much and derailing… Continue Reading
The Economic Impact of President Trump’s Proposed Tax Plan on the US Virgin Islands
Posted in Government Relations, Tax & Estate PlanningDuring his campaign, President Donald Trump put forth a tax plan that would cap itemized deductions, barring single people from deducting more than $100,000 and preventing couples from deducting more than $200,000. This proposal would help raise more than $1 trillion over the course of a decade. However, according to the Tax Policy Center, the… Continue Reading
How Sound Estate Planning Benefits Your Business
Posted in Tax & Estate PlanningIf you own a business or have an ownership stake in a corporation, you will need to account for these activities in your estate planning. You have likely spent years building up your business, so the last thing you want is for the estate tax or other issues to significantly reduce its value upon your… Continue Reading
Virgin Islands Gross Receipts Tax Amnesty in Effect
Posted in Tax & Estate PlanningVirgin Islands Bureau of Internal Revenue Director Marvin Pickering has announced that businesses that are delinquent in paying their Virgin Islands Gross Receipts Tax can avoid penalties and interest if they pay by January 3, 2017. The amnesty was included as Section 6 of Act No. 7930 (Bill No. 31-0448) approved by the 31st Legislature… Continue Reading
The Benefits of Being a U.S. Virgin Islands Tax Exempt Company
Posted in Tax & Estate PlanningFor the most part, even though the U.S. Virgin Islands is not a state, most U.S. federal laws apply in the Territory. This includes federal tax law. However, that law is not governed by the Internal Revenue Service. Instead, a separate local tax code called the “mirror system” exists, and it is administered instead by… Continue Reading
The Tax Benefits of Giving to a Charitable Remainder Trust
Posted in Tax & Estate PlanningCharitable trusts allow you to leave behind a significant portion of your property and assets to charity. It also has the added benefit of providing you with some outstanding tax benefits. The most common form of charitable trust is known as a charitable remainder trust. Such a trust is simple to set up. You transfer… Continue Reading
Are HOA’s Required to File Tax Returns?
Posted in Real Estate, Tax & Estate PlanningHomeowners, condominium and timeshare associations (“Associations”) often make the mistake of not filing tax returns based on the belief that they are exempt from having to do so. However, Associations are required to file tax returns like any other corporation, even if they’re not-for-profit. Fortunately, most Associations don’t have much, if any, tax liability. This… Continue Reading
Several Factors May Result in a Challenge to a Will
Posted in Tax & Estate PlanningChallenging a will is often a very difficult process. An overwhelming majority of wills go through the probate process without much problem, which means their validity is verified. Unless there are unusual circumstances, court officials aim to have wills go through just as the testator intended. There are some circumstances, however, in which an individual… Continue Reading
Protecting Your Intellectual Property Through Estate Planning
Posted in Real Estate, Tax & Estate PlanningIf you are a business owner or simply own valuable intellectual property, you can pass these assets down to your chosen heir(s) through smart estate planning, just as you would with any other property. Intellectual property rights do not end with the death of the creator—they are allowed to be passed on through a number… Continue Reading
What You Should Know if You Owe Money to the VI Bureau of Internal Revenue
Posted in Tax & Estate PlanningWhenever you or your business owes money to the Virgin Islands Bureau of Internal Revenue (BIR), it is important to ensure you comply with all federal and territorial laws to avoid significant legal complications. Remember, there’s no chance that you will be able to outrun the BIR, so it is not worth trying. The following… Continue Reading
The Requirements for Recording a Deed Executed in a Foreign Country
Posted in Real Estate, Tax & Estate PlanningGrantors of U.S. Virgin Islands real property executing a deed in a foreign country may face additional legal hurdles in conveying property. Although the basic steps remain the same as for a deed executed within the Territory, there are important differences that should be noted. These include: (i) the formalities that must be present during… Continue Reading
AB Trusts Can Significantly Reduce Your Tax Burden
Posted in Tax & Estate PlanningIf you’re married and would like to get the most out of your joint federal estate tax exemptions, one effective option is an AB trust. There is a common misconception that these types of trusts only benefit people who have large, valuable estates, but in actuality anyone who could owe estate tax may benefit from… Continue Reading
Knowing the Best Methods for Passing on a Business to Your Heirs
Posted in Corporate & Financial Services, Tax & Estate PlanningAfter you’ve worked so hard to build and grow your business, it’s important to know how to pass it on to your beneficiaries. To do this, you need a sound succession plan in place that will guide the future of your business if you decide you no longer want to run it—or in the event… Continue Reading