• Trump Accounts are a new tax-advantaged savings option for eligible children and may complement, rather than replace, existing planning strategies.
• Families and business owners should understand contribution limits, eligibility rules, and future regulations before making contributions.
• Employers may have opportunities to use Trump Accounts as part of employee benefit planning, subject to applicable requirements.

The Working Families Tax Cuts legislation introduced Trump Accounts as a new long-term savings vehicle designed to help eligible children begin investing early in life. The accounts became available beginning July 4, 2026, creating a new savings option for eligible families. As with any new tax-advantaged account, families should understand how the accounts fit into their overall financial plan before deciding whether to contribute.

Business owners should also be aware of potential employer contribution opportunities and the planning considerations that may arise as additional Treasury regulations are released.

What is a Trump Account?

A Trump Account is a tax advantaged investment account established for eligible children under rules created by the Working Families Tax Cuts legislation. The Treasury Department and IRS have begun issuing guidance to help families, employers, and financial institutions understand how the accounts will operate while additional regulations are being developed.

Like many new tax provisions, the rules will continue to evolve. Families should expect further guidance as Treasury finalizes regulations addressing administration and compliance.

How do Trump Accounts work?

Trump Accounts are intended to encourage long-term investing from an early age. While the overall concept is straightforward, families should understand several important rules before opening or funding an account.

The assets in a Trump Account are generally invested in low-cost mutual funds or exchange-traded funds that track a qualified U.S. equity index, rather than allowing account holders to select individual stocks or a wide range of investments. This standardized approach is intended to provide broad market exposure while keeping investment costs relatively low.

It’s important to note that the account belongs to the child. A parent or legal guardian serves as the custodian and manages the account until the child turns 18. Other key considerations include:

• Eligibility requirements for the child.
• Annual contribution limits established by law.
• Investment and account administration rules.
• Future withdrawal provisions and tax treatment.
• Additional guidance that may be issued through Treasury regulations.

The annual contribution limit is also scheduled to be adjusted periodically for inflation beginning after 2027, which means allowable contributions may increase over time.

Reviewing these rules in advance can help families determine whether the account aligns with their broader financial goals.

Planning Considerations

Trump Accounts may become one component of a family’s overall financial plan, but they should not automatically replace existing savings strategies.

Families may wish to evaluate:

• Whether the account complements existing education or investment savings plans.
• How contributions fit within annual gifting objectives.
• Long-term investment goals for children or grandchildren.
• Whether other savings vehicles continue to provide advantages based on the family’s specific circumstances.

Because every family’s financial picture is different, the best strategy often involves comparing multiple options rather than relying on a single account type.

Who can contribute?

In addition to parents, family members and friends may contribute to a child’s Trump Account, subject to the annual contribution limits. Certain employer contributions and qualified contributions from eligible organizations may also be permitted under the law.

Specific requirements continue to be clarified through IRS guidance. For business owners, this creates several planning questions, including:

• Whether employer contributions fit within the company’s employee benefit strategy.
• How contributions should be administered and documented.
• Potential tax reporting and compliance obligations.
• Whether offering this benefit supports employee recruitment and retention.

Business owners considering employer contributions should monitor future Treasury guidance to understand administrative requirements and determine whether offering this benefit aligns with their overall compensation strategy.

Why should families wait for additional guidance?

Additional guidance is important because Treasury has announced that more comprehensive regulations are forthcoming. The IRS has also issued transitional guidance, including safe harbor rules for certain contributions, to help taxpayers comply while the regulatory framework is finalized.

While families do not necessarily need to postpone contributing, they should recognize that additional administrative and compliance guidance is still expected.

Working With Your Advisor

Because Trump Accounts represent a new planning opportunity, families should evaluate them as part of a broader financial and tax strategy rather than in isolation.

A thoughtful review can help answer questions such as:

• Does this account complement existing savings plans?
• Who should contribute and how much?
• Are employer contributions appropriate?
• How will future regulatory guidance affect planning decisions?

Reviewing these questions with qualified tax and financial advisors can help ensure that contributions support long-term family objectives while remaining consistent with evolving IRS guidance. For business owners, Trump Accounts may also create opportunities to incorporate family and employee planning into a broader long-term tax and wealth strategy.

Frequently Asked Questions

What is the purpose of a Trump Account?
Trump Accounts are designed to encourage long-term savings and investing for eligible children through a tax-advantaged account established under federal law.

Can grandparents or other family members contribute?
Contribution rules are established by statute and IRS guidance. Families should review applicable limits and eligibility requirements before making contributions.

Should a Trump Account replace a 529 plan or other savings account?
Not necessarily. Many families may find that Trump Accounts work alongside existing planning strategies rather than replacing them.

Will additional rules be released?
Yes. Treasury has announced that additional regulations will be issued, so families should stay informed as implementation continues.

The post Trump Accounts: What Families Should Know Before Contributing appeared first on Walter Shuffain.

This article focuses on midsized, privately held family offices that primarily serve lifestyle management and wealth preservation functions for one or a few generations. These family offices typically manage private capital across a mix of assets—often including real estate, operating businesses, and market investments—but are not yet operating at the scale or complexity of institutional-grade offices. While they may not have formalized governance structures or deeply specialized internal teams, they are actively growing in capability and ambition. The focus is on those family offices that are early to mid-stage on the “maturity curve”—with the interest, and the capacity, to professionalize and scale further.

1. Governance by Gut 

In the family office context, governance refers to a framework for family direction and decision-making based on a shared mission and goals. Too often, the purpose of a family office, the services it has been tasked to provide, the goals it aims to achieve are vague. Additionally, the decision-making framework within the family office can be authoritarian or opaque. This model may work when the family office services a single generation, but challenges arise as the number of family members, family units, and generations supported by the office grows. Someone needs to be empowered (or hired) to spearhead conversations about establishing well-defined governance frameworks and communication channels. While often difficult and time-consuming, this enables all stakeholders to be included, informed, and engaged in the family office’s long-term success.

2. Siloed and Stalled

Most family offices operate using a distributed service model, meaning some functions are managed internally while others are outsourced to third-party providers, including investment advisors, bankers, attorneys, accountants, insurance brokers, and others. Coordinating such a diverse set of stakeholders can be difficult and time-consuming, yet collaboration is the cornerstone of a successful family office. When advisors operate in silos, the lack of collaboration can lead to unintended consequences and missed opportunities. Investing time and resources in the cross-pollination of ideas is likely to pay dividends in the long run.

3. Succession Stumbles

Like operating businesses, family offices benefit from robust succession planning to safeguard continuity. It protects the long-term viability of the family office entity and minimizes potential conflicts or oversights down the road. Unfortunately, succession planning takes significant time and effort and requires accepting that the key individuals who may have faithfully served the family in the past will not be the same ones to serve future generations. In addition to identifying who will be the future family office leaders, a succession plan should include a clear process for transferring the historical knowledge that has been accumulated over the years – not just the what (assets the family owns) and where (documents are stored), but the why (certain decisions were made and/or advisors were appointed). Capturing decades of insights and information, storing that information so that it can be easily accessed, and creating a systematic approach for continuing to build on this foundation takes forethought and effort by those at the helm. Unfortunately, this work falls into the “important, but not urgent” category, and day-to-day responsibilities and requests often get in the way of making progress, catching many family offices off guard with a retirement announcement, illness, or death.

4. When the Glue is Gone

Many family offices rely on a few key people that seem to know everything about day-to-day operations, along with key nuances for successfully serving the family. They seem to always know who to call, where every document is saved, and how to address even the most esoteric needs. Documenting responsibilities and cross-training functional roles is difficult in a small family office, but it’s important to help mitigate the risks associated with key person dependency. These risks not only entail the disruption caused by an unexpected leave of absence or resignation, but the fraud risk inherent in such a role. Periodic internal control assessments, automated transaction testing, and dual approval of expenditures over a certain threshold are examples of techniques that can be applied to mitigate some of these risks.

5. Silence Isn’t a Strategy

Avoiding conflict for the sake of family harmony can lead to breakdowns in communication and put significant stress on family office employees. Ignoring difficult conversations about inheritances, unhealthy spending habits, poor investment decisions, drug and alcohol dependence, competing priorities, and lack of financial independence may put family office employees in a bind when these issues conflict with the goals and objectives they are trying to achieve for the family at large. Encouraging a professional approach to communicating concerns and providing the family with professional resources to address these issues will enable a cohesive working environment for the family office and strengthen relationships with family members.

6. Next-Gen Neglect

Engaging the next generation is essential for preserving the family’s legacy and ensuring continuity. Failing to involve younger family members in decision-making processes can result in disconnection and a sense of loss of purpose. By fostering relationships and providing opportunities for involvement, family offices can empower the next generation to take an active role in serving and supporting the family wealth enterprise. This engagement not only strengthens family bonds but also prepares future leaders to carry the family’s legacy forward. In addition, rising leaders often want to choose their own advisors (such as attorneys and tax accountants) and increasingly want more direct access to information such as their personal balance sheet, cash flow reporting, and investment performance reporting.

7. Only Counting What’s in the Bank

Human capital is a valuable asset for any family office, regardless of the number of employees. Neglecting employee policies and professional development can lead to dissatisfaction, turnover, and inefficiency. Implementing comprehensive human resources practices, including employee handbooks, annual performance reviews, compensation adjustments, and career development plans is not only an essential risk management technique but also enhances employee satisfaction and strengthens the family office’s overall capabilities.

8. Tech Without Traction  

In today’s rapidly evolving technology landscape, family offices are presented with a growing array of software programs geared to serving the ultra-high net worth space. While some eagerly embrace sophisticated new tools, others struggle to move away from the familiar basics of QuickBooks and Excel. There are increasing demands for real-time liquidity and balance sheet reporting, yet it is easy to underestimate the accounting and investment reporting expertise required to produce accurate statements, let alone the complexities involved in compiling the data that underpins these reports. When implementing new technologies, it is easy to misjudge the level of expertise needed to administer more sophisticated systems, leading to frustration when the promised efficiencies and enhanced reporting fall short of expectations. Family offices are more successful when they take a balanced approach to evaluating and implementing new technologies, one that encourages investment in new solutions while also providing a roadmap for optimized adoption and use.

9. When Simple Gets Complicated

Many family offices seek tax-efficient solutions for growing and passing down wealth, employing tools such as family limited partnerships, complex trust structures, and for-profit business models with the use of carried interest. Often, however, family office employees are not up to speed on the intended purpose and technical aspects of these structures, nor do they have the right technology and resources to support efficient and accurate administration. Collecting and storing important documents, building and maintaining trust summaries and entity organizational charts, producing consolidated income statements and balance sheets, anticipating liquidity shortfalls, and projecting cash flow needs become increasingly challenging as the complexity of asset portfolios grows. Providing time, training, support, and tools to help manage turmoil is important for optimal outcomes.

10. The Hidden Cracks

In many family offices, failing to address and mitigate risks  can lead to substantial threats, particularly in areas such as cybersecurity, fraud, and privacy breaches. Family members may be allowed to use free email accounts to communicate with the family office and outside advisors. Multi-factor authentication is viewed as an unnecessary annoyance. In family offices with only a few employees, implementing segregation of duties  to prevent or detect fraud becomes a formidable challenge due to limited personnel available to divide responsibilities effectively. Although many family offices perceive themselves as small and straightforward, the reality is that they often face significant  risks in today’s complex environment. Family offices of all sizes should prioritize the implementation of comprehensive risk management strategies to protect their assets and ensure privacy.

The post 10 Hidden Challenges of Running a Family Office appeared first on Walter Shuffain.

In 2021, the Department of Labor (DOL) issued sub-regulatory guidance related to lost and missing participants in defined contribution retirement plans. Although that guidance is not law, the DOL expects plans to follow it and includes questions about it in most enforcement actions. For more background and best practices, see our Alert: “Missing Participants: What Plan Sponsors Need to Know About the DOL’s Latest Guidance.”

This article pinpoints M&A-specific considerations and offers practical guidance to help defined contribution plan sponsors avoid common pitfalls.

How do Plan Sponsors Generally Identify and Address Lost or Missing Participants?

Before considering specific implications, it is important to understand how defined contribution plan participants become lost or missing. Communication between plan sponsors and participants can break down, often in the following common ways:

• Statements, checks, and notices sent to the participant are returned as undeliverable.
• Participants fail to respond to emails, voicemails, and other types of messages.
• Contact information has not been maintained and is no longer valid.
• The participant’s account has fallen inactive for an extended period of time.
• Benefit checks have not been cashed.

When it becomes clear that the participant is unresponsive and potentially not receiving benefits, defined contribution plan sponsors — often working with third-party administrators and recordkeepers — typically begin a structured search process. Reviewing all returned mail and uncashed checks is a starting point, but a plan sponsor’s data maintenance, regular reviews, and periodic outreach are also key to locating participants and reducing fiduciary exposure, compliance risk, and finance and accounting pitfalls. Plans should keep records of their efforts to locate missing participants, including how often the search was undertaken, what was done, and how long the search continued. The DOL guidance notes that more significant efforts should be made for higher account balances (taking a cost-benefit approach).

How can Missing Participants Affect Due Diligence During an M&A?

The buyer typically conducts due diligence to determine key factors, including the seller’s overall financial condition, regulatory compliance, liabilities, and employee benefit plans. Finding lost or missing plan participants during due diligence introduces additional concerns to be addressed, including those listed below.

• Fiduciary risk: Plan sponsors must take good faith steps to locate missing participants. When due diligence reveals a large number of missing participants, buyers might suspect there are other problems, such as weak controls, poor administration, and hidden liabilities.
• Regulatory compliance: Defined contribution retirement plans must comply with laws such as ERISA and the IRC, as well as IRS and DOL regulations. Noncompliance can result in fines, penalties, and plan disqualification.
• Plan disposition: Decisions about whether to merge, terminate, or otherwise transition a tax-qualified defined contribution retirement plan are typically part of deal negotiations. Missing participants can complicate rollover and distribution processing and could result in unexpected liabilities and costs.
• Uncashed checks and held balances: The handling of uncashed checks, forfeitures, and other participant balances can raise questions about overall plan administration.
• Deal consequences: The risks associated with lost and missing plan participants can have a significant impact on negotiations, resulting in additional costs and further due diligence activity.

Missing participant issues can emerge during the early stages of a business transaction but they do not end once the deal is done.

What Happens with Missing Participants Post-transaction?

The strategy chosen for the retirement plan will determine the next steps for all participants, including those who are lost or missing. For example, any of the outcomes below is possible.

• Continuation: The seller’s plan remains in place for an agreed period of time to provide continuity of coverage. This might be a short-term solution put in place until the buyer provides a more permanent solution.
• Consolidation: The buyer merges the seller’s plan into its own, paying close attention to eligibility rules, participant notices, and participant vesting.
• Termination: The seller terminates its plan pre-close (typically contingent on and effective immediately before the formal deal closing date). Participants receive distributions or rollovers and then typically transition to the buyer’s plan.
• Spin-off or carve-out plan: Some portion of the seller’s plan, as well as its assets and liabilities, spins off to support a related organization. This practice might be chosen in, for example, partial acquisitions, newly formed entities, and corporate divestitures.

In each scenario, plan sponsors must continue to comply with applicable laws and satisfy their fiduciary obligations to participants.

How can plan sponsors mitigate lost and missing participant risk?

Perhaps the best answer to this question is that plan sponsors should always be prepared for the heightened scrutiny they will experience during due diligence. The following practical steps can help:

• Maintain accurate records: Records will be scrutinized during due diligence, audits, and regulatory investigations. Keep plan records — including participant contact information — complete, organized, and ready for review.
• Leverage recordkeepers and third-party providers: Coordinate with all service providers to confirm the use of every available tool to locate lost and missing participants.
• Address uncashed checks promptly: Uncashed checks could reflect delivery issues, participant confusion, outdated contact information, or the participant’s death or incapacity. Establish consistent follow-up processes, make reasonable attempts to reach out to participants, and document all actions taken.

The post How Lost and Missing Defined Contribution Plan Participants Affect Mergers and Acquisitions appeared first on Walter Shuffain.

• Recent tax law changes have created new planning opportunities for high-income business owners.
• Pass-through entity elections and QSBS planning may provide significant tax savings when evaluated early.
• Proactive, year-round planning can help business owners retain more earnings and support long-term growth.

For high-income business owners, profitability is not just about increasing revenue. It’s also about preserving more of the business’s earnings. As tax laws evolve, owners have an opportunity to revisit their planning strategies and determine whether they are positioned to take advantage of available benefits.

The most successful business owners don’t treat taxes as a year-end exercise. Instead, they view tax planning as an ongoing part of managing cash flow, building wealth, and supporting future growth. Here are five tax planning opportunities worth evaluating.

• Evaluate the SALT Cap Workaround

Recent legislation permanently extended the state and local tax deduction limitation while temporarily increasing the cap through 2029. However, income-based phaseouts mean many high-income taxpayers may still see limited benefit from the higher cap.

Owners of pass-through entities, such as partnerships, S corporations, and certain LLCs, may be able to reduce the impact of these limitations through entity-level tax elections.

Potential advantages include:

• Reducing the pass-through income reported by owners
• Creating deduction opportunities beyond the individual SALT limitation
• Taking advantage of state-specific entity-level tax provisions

Because rules vary significantly by state, business owners should review eligibility requirements and consider how the election may affect all owners before moving forward.

• Review QSBS Eligibility Before a Future Exit

Qualified Small Business Stock, or QSBS, remains one of the most valuable tax benefits available to eligible business owners. Recent legislative changes increased the potential exclusion to $15 million or 10 times the cost basis for qualifying shares acquired after July 4, 2025. New holding period rules may also allow partial exclusions after three or four years of ownership.

Business owners considering a future sale should evaluate whether their company and ownership structure meet the requirements for QSBS treatment. Waiting until a transaction is imminent may limit available planning opportunities. Additional strategies such as trust stacking and Section 1045 rollovers may further enhance QSBS benefits for qualifying owners, making early planning particularly important.

• Explore Available Tax Credits and Deductions

Many business owners overlook incentives that could reduce their overall tax burden. Depending on the nature of the business and its activities, opportunities may include:

• Research and development tax credits
• Qualified Business Income deductions
• Section 179 expensing
• Bonus depreciation strategies

While not every incentive applies to every business, these provisions can create meaningful tax savings when incorporated into a broader planning strategy. Regular discussions with your advisory team can help ensure valuable opportunities are not overlooked.

• Evaluate Real Estate and Investment Related Strategies

Business owners who own investment or commercial real estate may have additional planning opportunities available. Strategies such as cost segregation studies can accelerate depreciation deductions, while Opportunity Zone investments and qualifying like-kind exchanges may provide tax-deferral benefits.

The value of these strategies often depends on timing, investment objectives, and long-term financial goals. For owners with substantial real estate holdings or investment activity, reviewing these opportunities with advisors may uncover ways to improve tax efficiency while supporting broader wealth-building objectives.

• Make Tax Planning a Year-Round Process

Many business owners focus on taxes only when returns are due. Unfortunately, that approach can result in missed opportunities. Effective tax planning occurs throughout the year and should be integrated into broader business decision-making. Entity structure changes, compensation decisions, major purchases, and succession planning can all have meaningful tax implications.

The most successful business owners view tax planning as an ongoing process rather than an annual event. By evaluating opportunities throughout the year and coordinating with advisors before major decisions are made, owners are often better positioned to preserve cash flow, improve profitability, and support long-term wealth building.

Building a Tax Strategy That Supports Long-Term Growth

Now is the time to evaluate whether existing tax strategies remain aligned with current laws and long-term objectives. Opportunities such as SALT cap workarounds, QSBS planning, and available tax incentives may yield meaningful savings, but many require careful planning and execution.

The most effective tax plans are proactive, coordinated, and aligned with broader business goals. Rather than treating taxes as a year-end obligation, successful owners view tax planning as an ongoing strategy that supports profitability, cash flow, and wealth accumulation.

Consult with your CPA to determine which opportunities may apply to your situation and how they can support your broader business and financial goals.

The post 5 Tax Planning Opportunities High-Income Business Owners Should Evaluate in 2026 appeared first on Walter Shuffain.

• Massachusetts is creating an additional elective pass-through entity tax for tax years beginning in 2026 that may preserve a federal deduction for state and local taxes above the SALT cap.
• Taxpayers with major 2026 transactions or significant Massachusetts pass-through income should review how these changes may affect both current filings and forward-looking planning.

For clients with major 2026 transactions or substantial Massachusetts income earned through a pass-through entity, this is an important update.

Massachusetts recently enacted legislation that enhances the elective pass-through entity tax to allow for the 4% surtax on high-income earners.

Effective for tax years beginning on or after January 1, 2026, eligible pass-through entities may annually elect to pay an excise tax at a 9% rate on qualified taxable income. Qualified members of an electing entity are allowed a refundable credit, limited to 90% of the tax paid. The election is irrevocable for the year made, applies to all members of the entity, and does not apply for any tax year in which the federal SALT limitation has expired or is otherwise no longer in effect.

This change may be especially meaningful for owners of S corporations, partnerships, and limited liability companies taxed as pass-through entities who expect high levels of Massachusetts income in 2026. Where beneficial, the election may improve the overall federal tax result by shifting certain state tax payments to the entity level.

What practical steps should affected taxpayers take now?

• Identify affected entities and owners, especially where significant 2026 income or major transactions are expected.
• Evaluate the potential benefit based on entity income, owner tax profile, and whether the federal SALT limitation remains in effect.
• Consider the election as part of 2026 transaction planning, including sales, liquidity events, or large distributions.
• Coordinate at the entity level, since the election is annual, applies to all members, and cannot be reversed for the year.

FAQs

1. When does the new Massachusetts PTE election take effect? The elective pass-through entity tax applies to tax years beginning on or after January 1, 2026.
2. Who is eligible to make the election? Eligible pass-through entities generally include partnerships, S corporations, and certain trusts. In practice, this can also include LLCs that are treated as partnerships or S corporations for tax purposes. Whether the election makes sense will depend on the entity’s structure, its Massachusetts-source income, and the tax profile of its owners.
3. Does the new PTE election apply if the federal SALT limitation expires?
   The election does not apply for any tax year in which the federal SALT limitation has expired or is otherwise no longer in effect.
4. Is the election automatic, and can it be changed later? Eligible pass-through entities must make the election annually. The election is irrevocable for the year in which it is made and applies to all members of the electing entity.
5. Will every pass-through entity benefit from making the election? Not necessarily. The benefit will depend on the entity’s income, the owners’ overall tax situation, and whether the federal SALT limitation remains in effect.

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