#25 Ever Finance #25

  Using Zero-Coupon Bonds in Estate Freeze Strategies Estate planning for high-net-worth individuals often involves sophisticated tools to limit estate tax exposure while passing wealth to future generations. One such strategy is the use of zero-coupon bonds in an estate freeze — a method that locks in current asset values, transferring appreciation outside the taxable estate. This guide explores how zero-coupon bonds work, their role in freeze techniques like GRATs and IDGTs, and how they can help freeze wealth for tax efficiency. 📌 Table of Contents What Is an Estate Freeze? What Are Zero-Coupon Bonds? How Zero-Coupon Bonds Work in Estate Freezes Structuring with GRATs, IDGTs, and FLPs Benefits and Risks to Consider Further Resources ❄️ What Is an Estate Freeze? An estate freeze locks in the value of an individual's current estate, allowing future appreciation to be transferred to heirs with minimal or no estate tax. This is done by con...

  Prepaid Variable Forward Contracts for Executives with Restricted Stock 📌 Table of Contents What Are Prepaid Variable Forward Contracts? Why Executives Use PVFCs for Restricted Stock How a PVFC Works Step-by-Step Key Benefits of a PVFC Strategy Risks and IRS Considerations Conclusion What Are Prepaid Variable Forward Contracts? A Prepaid Variable Forward Contract (PVFC) is a sophisticated financial tool that allows an executive to get upfront cash in exchange for agreeing to deliver shares in the future—based on the stock’s market value at that time. Unlike a straight stock sale, it defers capital gains tax and keeps the executive economically invested in the underlying shares. It’s often used by C-suite leaders with large positions in their employer’s stock who want liquidity without triggering SEC reporting or tax consequences immediately. Why Executives Use PVFCs for Restricted Stock Many executives receive significant portions of compens...

  Investing in Affordable Housing Tax Credits (LIHTC) Affordable housing is not just a social necessity—it’s also a powerful investment opportunity. The Low-Income Housing Tax Credit (LIHTC) program offers investors a way to reduce federal tax liability while funding critically needed housing projects for underserved populations. In this article, we’ll break down how LIHTC works, its financial benefits, and how both institutional and individual investors can participate. Table of Contents What Is the LIHTC Program? How LIHTC Investments Work Benefits for Investors Risks and Challenges How to Start Investing Conclusion What Is the LIHTC Program? The Low-Income Housing Tax Credit (LIHTC) is a federal program created in 1986 to incentivize private investment in affordable housing. Through LIHTC, developers of eligible low-income housing projects receive tax credits, which they sell to investors in exchange for equity financing. This reduces the developer’s de...

  The Benefits of Investing in Catastrophe Bonds (Cat Bonds) In a world of unpredictable weather patterns and natural disasters, catastrophe bonds—known as cat bonds—have emerged as a unique financial instrument that allows investors to bet on risk while earning attractive yields. Cat bonds provide capital to insurance companies to cover large-scale disasters such as hurricanes, earthquakes, or wildfires, and in return, investors receive periodic coupon payments—unless the catastrophe triggers the bond, in which case some or all of the principal is used to cover insured losses. This article explains what cat bonds are, how they work, their benefits, risks, and how they can enhance portfolio diversification. Table of Contents What Are Catastrophe Bonds? How Do Cat Bonds Work? Benefits of Investing in Cat Bonds Risks and Considerations How to Invest in Cat Bonds What Are Catastrophe Bonds? Catastrophe bonds are a type of insurance-linked security (ILS) issue...