The Hedge Fund Law Report

The definitive source of actionable intelligence on hedge fund law and regulation

Articles By Topic

By Topic: Estate Planning

  • From Vol. 9 No.8 (Feb. 25, 2016)

    Insurance Products Provide Tax-Efficient Means for Investors to Access Hedge Funds

    Certain life insurance products permit policyholders to invest the cash values of their policies in various investment products, including hedge funds. A key benefit of those policies is that such investments can grow on an income tax-deferred or tax-free basis. Katten Muchin Rosenman recently hosted a panel discussion on the use of private placement life insurance (PPLI) and private placement variable annuities (PPVA) as tax-efficient investment vehicles for high net worth individuals. The program, entitled “Tax-Efficient New Products for Sophisticated Investors, Family Offices and Alternative Asset Managers,” featured Katten partners as well as representatives from insurance brokers, investment firms and a Big Four accounting firm. This article examines the key takeaways from the discussion. For more on PPLI and PPVA, see “Insurance Dedicated Funds Offer Hedge Fund Exposure Plus Tax, Underwriting and Asset Protection Advantages for Investors” (Jul. 18, 2013).

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  • From Vol. 7 No.37 (Oct. 2, 2014)

    Sidley Partners Discuss Trends in Hedge Fund Seed Deals, Governance, Succession, Estate Planning and Tax Structuring (Part Two of Two)

    This is the second article in a two-part series examining the more notable takeaways from the 2014 edition of Sidley Austin’s annual private funds event in New York City.  This article focuses on the discussion during a panel entitled, “Operating a Fund Manager: Opportunities and Pitfalls,” featuring Sidley partners Christian Brause, David R. Sawyier, Kathleen O’Hagan Scallan, Michael J. Schmidtberger and Daniel F. Spies.  The partners discussed capital markets as a source of liquidity for fund managers, evolving trends in seed deals, succession considerations, the challenges of business and personal divorces as they relate to structuring and succession, trust and estate considerations and fund- and management company-level tax developments.  The first article covered evolving fee structures, seed deal terms, single investor hedge funds, risk aggregators, expense allocations and co-investments, among other issues.

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  • From Vol. 7 No.21 (Jun. 2, 2014)

    Estate Planning Tips for Hedge Fund Managers

    In 2013, Congress made permanent a generous estate and gift tax regime, which permits an individual to transfer more than $5.3 million to children and other beneficiaries free of estate and gift taxes.  Even so, the interests of hedge fund principals in their fund businesses routinely exceed that exemption amount.  A recent program presented by Ropes & Gray LLP outlined the current estate and gift tax regime and explored ways in which hedge fund principals may make lifetime gifts that maximize the value of their gifts while minimizing the estate and gift tax consequences.  For more on estate planning with hedge fund interests, see “Simple Goals in a Complex World: Estate Planning for Hedge Fund Interests,” The Hedge Fund Law Report, Vol. 3, No. 11 (Mar. 18, 2010).

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  • From Vol. 6 No.31 (Aug. 7, 2013)

    Sullivan & Cromwell Expands International Private Client Practice to Its London Office

    As of August 19, 2013, Sullivan & Cromwell LLP partner Basil Zirinis will move to the firm’s London office.  In addition to international estate and trust planning, family business governance and transition, and trust and estate litigation, Zirinis frequently advises principals of international hedge and private equity funds on sophisticated estate and succession planning strategies.

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  • From Vol. 3 No.11 (Mar. 18, 2010)

    Simple Goals in a Complex World: Estate Planning for Hedge Fund Interests

    In a guest article, Steven D. Leipzig and Lori I. Wolf, both Members of law firm Cole, Schotz, Meisel, Forman & Leonard, P.A., and Steven M. Saraisky, an Associate at Cole Schotz, provide an introduction to estate planning considerations for hedge fund managers and hedge fund interests.  The authors first describe some fundamental concepts of sophisticated estate planning, and the typical structure of a hedge fund investment.  They then discuss certain approaches to estate planning with both a new hedge fund investment and an existing hedge fund investment.  The authors’ goal is to provide subscribers to The Hedge Fund Law Report with an understanding of the family planning and tax savings results that can be achieved with this kind of estate planning.

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