Confessions of a mortgage broker

A must read! Chronicles the career of a conflicted mortgage broker.  This comical and tragic account explains the whole amazing subprime catastrophe through the story of one man.  Mortgage brokers dominated the lending industry for 25 years before succumbing to the lure of ever riskier products… Continue reading “Confessions of a mortgage broker”

Robert Ingram |Owner

Robert M. Ingram is the Owner and Founder of TRI Financial Group. With nearly 15 years of experience in Advanced Markets and Business Consulting.

Robert M. Ingram IMO, FMO, MGA, GA

Owner of TRI Financial Group

Robert M. Ingram is the Owner and Founder of TRI Financial Group. With nearly 15 years of experience in Advanced Markets and Business Consulting.  He founded TRI Financial Group in 1998 on the pretense of providing for our clients the best of the best when it comes to our clients Financial Plans.  He is responsible for overseeing all Agency functions while coordinating our firm’s relationships with regional and national liaisons.  He has created and implemented our training curricula in his role as General Agent.  He is also a cancer survivor and understands the need for planning.  He is actively involved with helping not only our Agents but our Customers as well.  He and his wife Janeen live in Antelope, CA. which is east of Sacramento.  Where they are involved with the community and reside with their Jack Russell dog, soon they are going to add a new family member a Rhodesian Ridgeback.

The moment of truth: our national budget

Slightly less than one-fifth of the federal budget is dedicated to other mandatory programs. These include civilian and military retirement, income support programs, veterans’ benefits, agricultural subsidies, student loans, and other

Here’s a startling summary of our national budget, deficit and expenditures from The National Commission on Fiscal Responsibility and Reform. See attached PDF [download id=”17″]. Download for your reading.

Do you have a tax summary?

Do you know what the new tax rates are for 2011 or how they effect you?

One of the valued services we provide at TRI Financial group for our clients is a tax summary. It gives you a snapshot of your current income, tax bracket, deductions and more. To see an example click this [download id=”16″]. To receive your free tax summary contact us for a free consultation.

*The tax summary is for informational purposes only and does not constitute tax advice. Please seek the advice of a tax professional.

Reducing taxes through discounting

Reducing Transfer Taxes Through Discounting

The preceding summary is intended to be a general discussion of the topic presented, and is based on our current understanding of applicable tax laws, regulations and rulings. In actual practice, the transaction discussed may be more complex and will require the attention and expertise of professional advisors. In no way should this summary be construed to constitute tax or legal advice.

Do you have clients with substantial wealth who could benefit by transferring assets at a fraction of their fair market value?

Minority interests in certain types of entities (i.e. Family Limited Partnerships, Family Limited Liability Companies, etc.) can be transferred for less than the value of the assets owned by the entity. This is because the ownership of a minority (i.e. noncontrolling) interest in a family business does not: (1) provide the ability to control the entity or its underlying assets; or (2) provide a market where the ownership interest can be freely transferred to non-family members. This lack of control and lack of marketability reduce the value of the business interest and therefore allows a reduction in transfer (gift and/or estate) taxes.

Lack of Control Discount

This discount is often applied to transfers during life or at death and reflects the inability of the minority owner to control the entity and the assets owned by the entity. Minority owners cannot dictate management decisions regarding the entity’s direction; cannot dictate investment decisions regarding the entity’s assets; and are at the mercy of those who “control” the entity. Lack of control discounts are applicable not only to “minority interests” (less than 51% ownership) but can be applied to “non-voting” and “limited” interests in the entity. Typical discounts for lack of control generally range between 20 percent and 30 percent.

Lack of Marketability Discount

This discount is often applied to transfers of minority interests because of the inability to negotiate the sale of the interest in a readily available market. Most family-owned businesses contain specific provisions ensuring that ownership of the interests will remain within the family group. Each of these provisions, by design, reduces the owner’s ability to sell his/her interest and thereby reduces its value. Several factors can influence the level of discount for lack of marketability. These factors include, but are not limited to, the entity’s asset mix (i.e. marketable securities, real property, etc.) and transfer restrictions contained in the entity’s legal documents. Typical discounts for lack of marketability also range up to 30 percent.

Bottom Line

Valuable assets such as a successful family business, real estate, etc., can be transferred to the next generation in a very tax-efficient manner. Parents can gradually give away business units which represent the bulk of the economic ownership of the entity while maintaining control of the business. Discounting for transfers of minority interests, limited interests and/or nonvoting interests can be an effective way to transfer significant amounts for a fraction of the overall value. These discounts must be determined by a qualified appraiser in conjunction with an experienced estate planning attorney.