Learn the latest on private banking and investing, tax strategies, estate planning, family offices, philanthropy, and special services to stay ahead of the curve.

Frequently Asked Questions
  • Do beneficiaries of a trust pay taxes?

    Trust beneficiaries typically do pay taxes on distributions from a trust’s income, but they are not subject to taxes on returned principal from the trust’s assets. When money is distributed from a trust, the trust issues a K-1 form, which breaks down the distribution, or how much of the distributed money came from principal versus interest. The K-1 is the form that lets the beneficiary know the tax liability from the trust's distributions. At the same time, the trust issues Form 141, in which the trust deducts from its own taxable income any interest it distributes to beneficiaries.

  • What’s the difference between a revocable trust and an irrevocable trust?

    A trust is a separate legal entity a person sets up to manage their assets. Trusts are set up during a person's lifetime to assure that assets are used in a way that the person setting up the trust deems appropriate. The two basic types of trusts are a revocable trust and an irrevocable trust. The owner of a revocable trust may change its terms at any time. They can remove beneficiaries, designate new ones, and modify stipulations on how assets within the trust are managed. The terms of an irrevocable trust, in contrast, are set in stone the minute the agreement is signed.

  • How do I know if I need a power of attorney (POA)?

    POAs are most commonly established when someone is elderly or if they face a serious, more long-term health crisis. However, this isn’t the only time a POA is established. They might also be created when a military family member is deploying overseas so that another person can act on their behalf should they become incapacitated. Alternatively, expatriate workers and families need to set a POA for their affairs in America while doing their work overseas. Younger people who travel a great deal might set up a POA so that someone can handle their affairs in their absence, especially if they have no spouse to do so.

  • What’s the difference between a will and a trust?

    Trusts and wills are both designed to transfers an estate to an heir or heirs, but the way they function is different. A will is a legal document that spells out how you want your affairs handled and assets distributed after you die. A trust is a fiduciary arrangement whereby a grantor (also called a trustor) gives a trustee the right to hold and manage assets for the benefit of a specific purpose or person. Trusts can have a limited term, the duration of the grantor’s or another person’s lifetime, and can hold assets and distribute them after the grantor’s or other person’s death.

  • What assets increase my net worth?

    Your net worth is calculated by totaling up your assets and subtracting any liabilities (debt). To increase your net worth, you can either increase your assets, or reduce your liabilities. To increase your assets, you can own a home or increase the equity in your home, owning another piece of real estate to use as rental property for extra income, increasing your investments, and even owning art or collectible items.

Key Terms
Can I Afford a Super Yacht?
A low angle view of a fast yacht cruising.
Leasing a Yacht: A Step-by-Step Guide
Ultra-High-Net-Worth Individual (UHNWI): Definition and Criteria
Elegant woman looking out of a car window
High-Net-Worth Individual (HNWI): Criteria and Example
Piles of bundled $100 bills
Trillionaire Definition: How Much Money Is That and Who Will Be First?
Multi-generational family at lunch on patio
Generational Wealth Definition
A young businessman enjoying life in the city of Bangkok Thailand.
Problems Ultra-High-Net-Worth Individuals Face
Catching dollar bills with a net.
Why The First $1 Million Is the Hardest
How Serial Entrepreneurs Are Reshaping Wealth Creation
Happy family saving money in a piggybank
Best Custodial Accounts
Young man sitting on the floor in the living room using laptop and headphones
Best Personal Finance Courses
Asset Protection for High Net Worth Individuals
Young woman sits on steps outdoors, working on a laptop
Women and the Great Wealth Transfer
A private jet on a runway.
How Much Is a Private Jet?
Antique and Collector's Flea Market
How to Get the Most Money for Your Fur Coat
Vacation Home or Income-Producing Investment?
Wealth Management
Wealth Management: What It Is and What Wealth Managers Charge
10 Tips for Achieving Financial Security
What’s the Value of a Blue Lobster?
Who Is the Richest Person Ever?
Investment Adviser vs. Broker: What's the Difference?
A blindfolded man in a suit
Defining a Blind Trust
Aliko Dangote
Who Is Aliko Dangote?
The Lottery: Is It Ever Worth Playing?
6 Signs That You've Made It to the Middle Class
Man Admiring Himself in a Mirror in a Menswear Shop
Conspicuous Consumption: Definition and Examples
Ben Franklin on Cash
Should You Save Your Money or Invest It?
Paper Currencies
What Is a Luxury Item (aka Luxury Good)? Definition and Examples
Working-class political protest in the northern suburb of Halandri in Athens, Greece
Working Class Explained: Definition, Compensation, Job Examples
A Vintage Ferrari dashboard viewed through window.
Status Symbol
Lifestyle Inflation
Found Money
Puerto Vallarta, Mexico
Best Countries for Retirement Abroad
The $200 Million House: What It Really Costs
Man enjoying sunny ocean view from luxury balcony.
Economics of Buying a Beach House: Read Before You Buy
The 10 Most Expensive ZIP Codes in New York State
What Size Yacht Can You Afford?
Businessmen examining dress shoes in menswear shop
The Psychology Behind Why People Buy Luxury Goods
A Qatar Airways jet against a blue sky. The fuselage is grey and white with purple lettering.
Five of the Most Luxurious Commercial Airlines
Private Jet Charter vs. First-Class: What's the Difference?
Sudden Wealth
Sudden Wealth Syndrome (SWS)
Power of Attorney
Power of Attorney (POA): Meaning, Types, and How and Why to Set One Up
Writing with a pen with euros and a calculator nearby.
Estate Taxes: Who Pays? And How Much?
How to Set Up a Trust Fund
Happy young family sitting on a couch looking at a laptop
What (and Who) Is Next of Kin, and Why Does It Matter?
Estate Law, Last Will and Testament in a Court
Probate: What It Is and How It Works With and Without a Will
Estate Planning
What Happens to Your Bank Account After Death?
Online Will Makers
Best Online Will Makers
Irrevocable Trusts Explained: How They Work, Types, and Uses
trust fund
What Is a Trust Fund and How Does It Work?
Couple talking with a financial advisor about funding their living trust.
Will vs. Trust: What’s the Difference?
Middle-aged man reclining on a white couch holding a tablet. His wife squatting behind the couch is looking over his shoulder at the tablet.
Revocable Trust vs. Irrevocable Trust: What's the Difference?
Understanding Endowments: Types and Policies That Govern Them
Grantor Trust Rules: What They Are and How They Work
Grantor Retained Annuity Trust (GRAT): Definition and Example
What Is an Inter-Vivos Trust? Definition, How It Works, and Benefits
What Is Pari-Passu?
Beautiful luxury home exterior at twilight
Step-Up in Basis: Definition, How It Works for Inherited Property