Category Archives: Trusts

Accounting, Business Articles, Law, Tax, Trusts

Missouri Residents Deduct 100% of Capital Gains on Taxable State Income

Jefferson City Missouri, July 2025 Governor Mike Kehoe signs Bill to allow individuals to deduct One Hundred Percent of their capital gains from state income tax portion of their personal income. The Bill takes effect on August 28th, 2025. Just facts derived from Missouri Legislation. Im a Kansas City boy, so when I saw this legislation begin to take shape and be signed in the Missouri Governors Office, I had to dive in to the details happening back home. Let’s dive in.

I am a Kansas City boy so when something big happens in Kansas City, Missouri related to Investments for Tax and Law I have to write about it. I know what your thinking? What does this legislation have to do with me? Well if your in Kansas City or a Missouri Resident? You should be one hundred percent stay up to date with the things happening in the area.

The question is this? Do I have to wealthy to be included to benfit from this Tax Legislation? NO. Not at all. However if you are a wealthy and a affluential Business Owner or a local Investor. Just like our long time Kansas City Missouri Friend who is a Restauranteur and local Investor Michael Garrozzo’s. Their must be key points we can dive into that make this legislation make since for the community? Good Question: Here is what you should know Missouri Residents.

By the way if your in Kansas City, Missouri Please Visit Mr. Garozzo’s fantastic up scale basement Italian Restaurant. It’s a personal favorite of mine as a Kansas City Boy who grew up around these guys. You will love it.

Key points of this Missouri Legislation:

Individual tax exemption: Missouri residents will no longer pay state income tax on profits from the sale of assets such as stocks, bonds, real estate, and cryptocurrency.

Corporate tax trigger: The law contains a provision to extend a similar capital gains deduction to corporations once Missouri’s top individual income tax rate drops to 4.5% or lower.

Broader tax package: The capital gains cut is part of a larger tax reform bill that also includes other measures, such as sales tax exemptions for diapers and feminine hygiene products, and expanded property tax credits for seniors and individuals with disabilities.

Economic impact: The change is expected to result in a significant decrease in state revenue, with initial estimates suggesting a potential annual loss of over $100 million. This has led to debate over the bill’s potential impact on the state budget versus its ability to encourage investment and attract high-net-worth individuals.

Federal taxes still apply: The state-level exemption does not affect federal capital gains taxes, which taxpayers must still pay. 

This Missouri’s legislation makes it the first U.S. state with an individual income tax to completely repeal its state-level capital gains tax.

Does this Legislation affect Individuals Offshore Asset Protection LLC’s and Trust’s?

Looking at the Facts in the Legislation? At this time no. However if you know your legalese on Offshore Asset Protection, you will know that if you use your own name in Offshore LLC or Trust Accounts a US Judge can order you to return the funds to US Soil. So this is why you must work with a small team of Attorneys, and Investment Adviser’s to use offshore Trust’s and LLC’s strategically. So if a US judge does try to order you to return the funds or assets to US Soil it will go no further than a Court Order being ignored by Belize, or the Cook Islands. Work with your Investment Adviser Professionals and Tax Attorneys for further information on this fascinating topic.

Questions and Facts:

How this affects Professionals? It does not. Only affects personal Missourians Tax Obligations at this time.

Please talk with your professional Accountant, Tax Attorney, or Professional Investment Adviser if you feel your Tax liabilities from Investments or Living or Irrevocable Trusts may need attention from this Missouri Legislation.

I am on the hunt for a local Tax Attorney and local Kansas City Missouri Accountant to give me a small thought piece about their experience using this new Legislation in thier Legal and Tax or Investment Practices. And how is this legislation affecting local Missourians. Full Published Article Scheduled for Tuesday.

JS

Standard
Asset Management, Business Articles, Endowments, FUNDS, Trusts

Endowment Fund Basics

A Endowment is a Legal Trust Structure for the purpose of creating a FUND that raises donations for continuing the mission and operations of Non-Profit Organizations such as Hospitals, University’s, Museums.

What are the Three Types of Endowments

When your Non-Profit organization is considering using the Endowment structure? It’s appropriate to have your team of Investment Advisers, Accountants, and Attorneys work together to discuss the type of structure or type of Endowment Structure is appropriate for your Organizations needs. Here are the three types of Endowment Structures and how they are used. According to the Financial Accounting Standards Board (FASB) these are the details of the three types of Endowments.

Term Endowments

    A Term Endowment is not perpetual, it is organized and funded for a specific time period. This can be years or until a specific end date that is specified on the Endowments Documents. Term Endowments can begin often when a Death of a Donor takes place or when a Document states. After period of time or expiration the total amount can be used to begin funding Operations.

    True Endownments

    A True Endowment begins by the Donor providing FUNDS to the Endowment and specifying the Funds are to be kept in perpetuity. A written agreement is used to facilitate the Funding and future use of Income of True Endowments.

    Quasi-Endowments

    The Board of Directors of Endowment Funds vote on the best use and deployment of funds with their Advisers. This includes electing to use Reserve Funds, making unrestricted Gifts to other Organizations, and deploying new funds from a unforseen donation. Inclusion is at the Discretion of the Board of Directors of a Endowment. This means the Board can elect if the new funds can be placed into a new fund or included into a outside Quasi Endownment Fund.

    Endowment Management

    Fund Managers of Endowment Funds and Non-Profit Boards of Directors work very closely with each-other to ensure the Endowments Investment Objectives are being met and kept. The Endowment Fund manger is professionally duty bound and a Fiduciary. The deployment of Funds by Investment management will work to allocate into appropriate Investment Assets. Keeping to the Endowments Investment Objectives and Policies.

    Endowment Funding

    Endowments are funded mainly by relying on public donations. A “PRINCIPAL” amount Donated is invested into Income producing Assets which may include Bonds, Equity Stocks, and other Appreciating Assets. And later the income from these assets are used for Operations and other uses as stipulated by the Trust Documents and at the Discretion of the Board of Directors.

    Some Disadvantages of using the Endowment include: Some donations can only be used for limited purposes. There also maybe some limitations or restrictions in the Endowment Trust Docs that prevent funds from being withdrawn or used for operations. That depends on the Fund Covenants.

    Advantages of using Endowment Funds? Funding a Endowment Trust can lead to Non-Profits being able to fund a mission and it’s operations. Not to mention being able to invest donations for the purpose of funding programs that help and improve communities or causes.

    Did you catch my Article on “The Ultimate Guide To Trusts”click here.

    Largest Non Profit Endowments from the year 2021

    The National Center For Education Statistics lists the largest Endowment Trust Funds below, and HERE.

    In Conclusion I hope you learned some basics about Why and How Non-Profit Organizations use Endowments for their Organizations needs. This post is meant to communicate the uses, and what are Endowments for public educational purposes only. Thank you for reading.

    JS

    Standard