Planning for the Affluent Book

Part 1	General Principles
Chapter 1	Introduction to Wealth Management	1
1.1	Wealth Management Planning Issues	1
1.2	Cutting-Edge Investment Products	5
1.3	Wealth Management Revolution	7
Chapter 2	How to Select and Monitor a Professional Money Manager in the Era of Behavioral Economics	1
2.1	Matching an Investment Goal to an Investment Philosophy	2
2.2	Selecting the Money Manager	12
2.3	Monitoring the Money Manager	24
2.4	The Role of Performance Results	29
Chapter 3	Wealth Preservation: The Roles and Responsibilities of an International Trustee	1
3.1	What Is a Trust?	2
3.2	International Trusts	5
3.3	The Trust Deed	6
3.4	Choosing a Trustee	14
3.5	The Letter of Wishes	17
3.6	Recordkeeping	18
3.7	Managing the Trust's Investments	19
3.8	Breach of Trust	21
3.9	The Role of Protector	22
3.10	Creating an International Company	23
3.11	Due Diligence	25
3.12	The Need for Professional Advice	26
Chapter 4	Going Offshore: Tax and Trust Aspects	1
4.1	Privacy	2
4.2	Estate Planning	2
4.3	Access to Non-U.S. Investment Products	3
4.4	Higher Yields on Bank Deposits	5
4.5	Income Tax Planning	5
4.6	Investment Expertise in Non-U.S. Financial Markets	6
4.7	Political Risks	7
4.8	Foreign Currency Investing and U.S. Bank Difficulties	8
4.9	Asset Protection Trusts	8
4.10	Offshore Life Insurance Products	10
4.11	Entities Available Abroad	12
Part 2	Major Applications
Chapter 5	Creation of a New Insurance Company	1
5.1	Opportunity and Rationale for Forming an Offshore Life Insurance Company	3
5.2	Forming and Funding an Offshore Insurance Company	8
5.3	Sample Strategy Paper	14
5.4	Marketing Plan	20
5.5	Reasons for Going Offshore	23
5.6	Bermuda as the Premier Jurisdiction for Offshore Life Insurance and Annuity Products	29
5.7	How to Form a Bermuda Insurance Company	35
Chapter 6	Home Security and Qualified Personal Residence Trusts	1
6.1	Introduction	1
6.2	Benefits Common to the QPRT and HST	2
6.3	Comparison of Benefits: QPRT vs. Installment Sale to HST	3
6.4	How a QPRT Works	4
6.5	How an HST Works	6
6.6	Comparison of QPRT and HST Strategies	12
Chapter 7	Evaluating and Investing in Hedge Funds	1
7.1	Hedge Fund Managers: Who They Are	3
7.2	Hedge Fund Styles	6
7.3	Commodity Trading Advisers	19
7.4	The Role of CTAs and Hedge Funds in a Diversified Portfolio	20
7.5	Choosing Hedge Fund Managers Oneself	24
7.6	Getting Help in Choosing Hedge Fund Managers	50
7.7	Choosing a Fund of Funds Manager and Product	57
7.8	Funds of Funds to Consider	60
7.9	The Ten Mistakes Most Often Made in Hedge Fund Investing	68
Chapter 8	Enhancing After-Tax Investment Returns Through Swaps--The Paradigm of Investment Tools	1
8.1	Background	2
8.2	The Constructive Ownership Rules	4
8.3	Entering an Investment Tax Efficiently Through a Swap	5
8.4	When Swaps Are Not Respected	14
8.5	Exiting an Investment Tax Efficiently Through a Swap	15
8.6	Swap Spread	16
Chapter 9	Tax-Efficient Single Stock Concentration Risk Management--The State of the Art	1
9.1	Investor Objectives	2
9.2	Short Against the Box Is the Paradigm	3
9.3	Establishing a Short Against the Box Not Subject to the Constructive Sale Rules	4
9.4	Synthetically Replicating the Short Against the Box--Income-Producing Collars	6
9.5	Potential Impact of the Straddle Rules	7
9.6	Analysis for Stock Aquired Before 1984	7
9.7	Analysis for Stock Acquired After 1983	14
9.8	Exchange Funds--An Alternative to a Financial Derivative Solution	20
9.9	Summary	20
Chapter 10	The Family Office	1
10.1	Origins	2
10.2	Wealth Defined	3
10.3	Current Trends	3
10.4	Family Office Benefits	4
10.5	Evolving Needs and Preferences	5
10.6	Family Office Business Models: Surveying the Options	6
10.7	Family Dynamics	10
10.8	Professional Management: Compensation and Other Issues	12
10.9	Technology and the Family Office	14
10.10	Family Office Cost Components	16
10.11	The International Family Office Market	16
10.12	High Net Worth Family Networking Groups and Organizations	18
10.13	The Future	19
Part 3	Special Techniques
Chapter 11	Funding Nonqualified Deferred Compensation, Supplemental Executive Retirement, and 401(K) Mirror Plans	1
11.1	Nonqualified Deferred Compensation Plans	2
11.2	Supplemental Executive Retirement Plans	3
11.3	Factors Affecting the Design of NQDCPs and SERPs	4
11.4	Formal Funding Through a Secular Trust	8
11.5	Informal Funding Strategies	9
Chapter 12	Private Placement Variable Universal Life	1
12.1	Private Placement Variable Universal Life Defined	2
12.2	Investing the Cash Value Account	4
12.3	Protecting the Cash Value Account	6
12.4	Taxes and Other Expenses	8
12.5	Purchasing an Offshore PPVUL Contract	11
12.6	Role of the Law Firm and the Accounting Firm	13
12.7	Potential Buyers of PPVUL	14
12.8	Removing PPVUL from the Estate	16
12.9	Avoiding Force-Out	20
12.10	Investment Grade Publicly Available Variable Universal Life	21
12.11	Private Placement Annuities	22
12.12	The Offshore PPVUL Deferred Private Annuity Structure	22
12.13	Factors Affecting Investment Return in a PPVUL Contract	24
Chapter 13	Section 529 Education Plans	1
13.1	Spiraling Education Costs	2
13.2	Summary of Section 529 Plans	3
13.3	Defining Educational Goals	8
13.4	Reviewing the Present Education Funding Program	9
13.5	Choosing a Section 529 Plan	11
13.6	Reviewing the New Plan	13
Chapter 14	Private Annuities	1
14.1	How Private Annuities Work	2
14.2	Income Tax Consequences of Unsecured Private Annuities	4
14.3	Effectiveness of Private Annuities for Estate Tax Purposes	5
14.4	Private Annuities for Seriously Ill Taxpayers	8
Chapter 15	Long-Term Care	1
15.1	What Long-Term Care Is	2
15.2	Ways to Pay for Long-Term Care	3
15.3	The History of Long-Term Care	3
15.4	The Government's Position on Long-Term Care	4
15.5	The Market for Long-Term Care Insurance	7
15.6	Who Purchases Long-Term Care Insurance?	13
15.7	The Long-Term Care Insurance Policy	13
15.8	Policy Choices	14
15.9	Key Provisions in Long-Term Care Insurance Policies	16
15.10	Care Coordination Services	16
15.11	Methods of Payment	17
15.12	Alternate Plan of Care	17
15.13	Home Health Care	17
15.14	Summary	18
	Index	1