Blog
Feb
You work hard; in fact, without your long hours, weekends poring over figures, and unwavering commitment to supporting yourself and your loved ones, the small business you’ve built and established wouldn’t exist.
You won’t take unnecessary risks to put that work in jeopardy, either – instead, risks are calculated before deciding if expansion, carrying a new product, or opening a new location is the best option moving forward.
One unnecessary risk many small business owners haven’t thought of: A lack of an estate plan that covers your business.
Per this Entrepreneur article:
As a business owner, it’s quite likely that a significant portion of your wealth–and your family’s source of income after your death–is tied up in the family business. The success of your estate plan is dependent upon the business being transitioned to the next generation or sold to someone outside the family for a fair price. Either result takes years of planning and preparation, sometimes as much as 10 years.
Even if the business will end when you are unable to run it anymore (known as an “owner-dependent” business, implying the business runs as long as the owner is working at the business), there are still probate and tax issues worth thinking through with a qualified estate planning attorney.
Many businesses, however, are intended to be passed on – whether to another owner or a family member. This business interests require a different planning approach to facilitate a smooth transition of the business ownership. In addition, estate taxes levied on the business’ value can be costly – another reason a strong estate plan is necessary to comb through your assets, debts, etc. and create a plan that keeps the most money within the family.
No matter what the situation is with your small business, we can help you plan accordingly to make the best future possible – for employees, family members, and the business itself.
Feb
With anything relating to your family’s long-term security, there is no “set it and forget it” method that guarantees everything will be optimal. Your estate plan, much like many other aspects of your life planning, need a checkup every few years.
We typically recommend our clients come in every three years for a thorough look-through of their estate plan. There are two strong reasons why:
Laws change. Every year, state and federal laws receive updates, so it’s good to be sure everything you’ve set out takes full advantage of opportunities to avoid unnecessary taxes on your belongings.
People change. Whether it’s relationships, health, financial situation, or something else, your family won’t be the same in three years as it is now. Perhaps a different person would make most sense as a potential executor of your estate now than three years ago. Or, maybe you welcomed a new grandchild into the world and want to set aside something to help with future expenses (like college). Now’s the chance to do that!
For your estate plan checkup, there are a few areas we focus on. Your existing documents, such as wills, power of attorney, and trusts, all need to be examined to ensure the right people are given the right authority. It allows you to make updated decisions based on any changes in your family or medical history.
Next, we’ll review your assets – from personal possessions to real estate, vehicles, and more. This ensures everything is thought of, and anything new (like a condo on the beach or trust fund you’ve started) is thought for.
We also take a look at policies like life insurance and double-check your fiduciaries on each.
If it’s time for you to review your estate plan, then contact us today – we’ll be happy to help!
Jan
Congratulations! You’re expecting a new addition to your family, and it’s bringing a lot of change in many facets of your life.
As estate planning lawyers, we’re prone to think long-term about big life events such as the birth of a child.
And the answer to the question “How do I plan well?” is easy: Go through your estate plan and ensure your child is provided for, no matter what happens in the coming years.
You can designate funds to be placed in a few different types of trusts such as a 529 plan, to reduce any potential tax burden on what they receive. Appointing a guardian, thinking about life insurance to cover the financial needs they would have received, and establishing a plan for your retirement benefits are just some of the items you’ll want to consider writing into your will. These details can be adjusted as the child grows older, and we do typically recommend a review every three years to keep all of the small details in order for your small blessing!
For adult children, decisions typically revolve around how much you want to leave for each child. This can be done in installments, as a lump sum, through a trust, or other various measures.
We understand there’s a lot of change going on – and that’s why we’re here to make the future easily navigable, allowing you to focus your attention on making the most of the present. If you have any questions, feel free to send us an email, call us, stop by, or plan to attend one of our free monthly workshops. We’ll be more than happy to assist in any way that we can in ensuring your child’s future!
Jan
What happens to your Facebook account if you pass away? Or those photos you uploaded years ago? Do you write a blog that brings in a measure of advertising revenue?
An estate plan can plan for those – and many more – contingencies.
Wells Fargo recently wrote an excellent article entitled “Do you have a digital estate plan for your online assets?” One quote stands out as showing the need for you to plan well:
“Only 10 U.S. states [Connecticut, Delaware, Idaho, Indiana, Maine, Nevada, New Jersey, North Carolina, Oklahoma, and Rhode Island] have passed any digital estates laws,” says Evan Carroll, co-author of Your Digital Afterlife.
While some online sites have rules in place – Facebook is one, with an option to designate who can access your account upon your death – but many have nothing at all. Whether it’s simply a photo or former blog post, or thousands of frequent-flyer miles accrued and never used, a digital estate plan can ease the burden of navigating the complex and rather untested world of who-owns-what online.
There’s enough burden to handle upon the passing of a loved one. That’s why considering every possible angle on your estate plan is important, to ensure everything – including your online presence – is accounted for and thought through.
If you have any questions, don’t hesitate to contact us and ask!
Dec
According to Charity Navigator, 12% of all giving to charities is done on the last three days of the year. That’s a lot of last-minute charitable giving to have a tax write-off in a few months.
For an estate plan, however, it requires much more foresight. Charitable giving involves some estate planning techniques to maximize your donation. For instance, we could setup a Charitable Remainder Trust, which may help lower estate taxes and also help your preferred charity of choice.
We understand now is a time of cheer and celebration. We can’t wait to enjoy spending time with our own families and friends, as well!
We also recognize the loved ones you’re celebrating with this holiday season are those you want the best for – and that’s why we’re here, to help you ensure the best for them down the line. It’s worth noting the estate tax credit for an individual is $5.43 million, and it’s double for a married couple. Thus, many charitable giving trust options may not be necessary for you.
But when you get a moment, send us a note and we’ll be happy to talk through charitable giving with you at your convenience. Until then, have a wonderful holiday!
Dec
Each year, rules change – and the same it true for tax laws governed by the IRS. Adjustments are made every year, and those can have dramatic impact on your estate plan.
For instance, the IRS has made it easier in recent years to designate one trust fund for all surviving heirs in particular situations. USA Today ran a September 2015 article on the subject, but just because a new option is available doesn’t mean it’s the best option for YOU.
In addition, the IRS itself has yearly updates, such as these, that are posted near the end of the year. They impact the next year’s tax filing, but can impact your estate plans if you haven’t met with an estate planning lawyer to ensure your plans are up to date.
That’s why we strongly recommend those with already-existing estate plans to review them with us. We typically recommend our clients to come in once every three years so everything is kept up to date.
If it’s time for you, then have a read through the article links above, then contact us to schedule your review.
Nov
Heads up: The White House recently signed into law a provision ending the popular “file and suspend” method of filing for Social Security.
According to CNBC:
“Under the current rules, once you reach your full retirement age, you are able to file for your Social Security benefits, but request that such benefit not actually be paid,” said Jeffrey Levine, a certified public accountant and IRA technical consultant at Ed Slott & Company.
“By doing so, you can receive what are known as delayed credits, which increase your own Social Security benefit by 8 percent per year, not counting any cost-of-living adjustments that may also be added.”
For those who are already at retirement age, we here at Rhodes Law Firm can help you take advantage of the six-month window still left to work through this ideal. But starting May 1, family members won’t be able to be the beneficiaries of particular strategies aimed at maximizing Social Security returns.
If you have any questions, contact us immediately – we can help talk you through best strategies and practices to ensure you and your loved ones are protected.
Nov
Many people simply don’t have an estate plan – in fact, a large majority of Americans don’t.
Whether it’s online assets, your house, or the few things that you call your own, they need a plan to dictate what happens to them.
For example, thinking through power of attorney issues is critical to preventing unnecessary burden if something catastrophic happens to a loved one – and they become unable to make their own decisions. Legally, having someone designated to be the decision-making in the interim is a must!
In addition, beneficiaries for financial accounts, insurance policies, and other matters can be streamlined and made much easier on everyone by you – as long as you think it through in advance, and make sure everything is legally viable with lawyers like ourselves.
DailyWorth.com has an excellent article on the subject, and recommend taking a read through those six tips to being thinking well for your items.
Then, contact us to get started with getting all of the details in order.
Oct
What about art?
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The New York Times recently published an article entitled, “Estate Planning can get tricky when art is concerned.” The focus is for international art investors, but there are some key takeaways worth noting:
- Art’s value factors in – and having it appraised as low as possible can help with a tax bill.
- Think about who in your family would best appreciate the art! You don’t want your favorite pieces going to somebody who may put them in a box and leave them in the attic. Have conversations with family and friends to determine people’s art tastes.
- Estate planning advisers like us can help think through all of the laws related to a transfer of ownership.
For any art-related questions with your will, contact us and we’ll be happy to help!
Oct
Debt and what happens next
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Nearly 80 percent of Americans carry some form of debt. It’s common: Student loans, credit cards, auto loans, medical expenses, and mortgages. Chances are, you have at least one of those five types. Some of them are expected and budgeted for, while others are not and can put a major strain on family finances.
What happens to your debt if you pass away? The short answer: It depends.
If your total debts add up to be less than the value of your estate, then your estate pays off your remaining debt – and whatever remains goes to those listed in your estate plan.
For those with more debt than their estate’s value, federal and state laws become factors. They determine who gets paid in full, who gets paid a partial amount, and who has to write off the bad debt. The appointed estate representative takes care of ensuring those payments are made.
There are federal laws in place that give you rights if debt collectors come calling regarding a recently-deceased’s remaining balances. Information can be found at http://www.consumer.ftc.gov/articles/0081-debts-and-deceased-relatives.
For more information, contact us with your questions, or sign up for one of our workshops today.