Navigating Self-Dealing Pitfalls in Private Foundations and Family Offices

Private Wealth Services attorneys David Thal, Cara Howe Santoro and Naeseong Park co-authored an article on WealthManagement.com about maintaining tax-exempt status and avoiding penalties when private foundations (PFs) and family offices intersect. They analyze several rules laid out in the Internal Revenue Code and Tax Reform Act of 1969 that try to ensure PFs aren't exploited for personal benefit and maintain a charitable purpose. The group discusses what may constitute a self-dealing transaction, the associated penalties for different parties and governance strategies to avoid tax complications.

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