Blog
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?
m3admin 0 comments Blog
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
m3admin 0 comments Blog
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.
Sep
We often think of sibling rivalries as something that happens when our kids are growing up. They battle trying to be first to the finish line, get the top grades in school, etc.
But many times, arguments over who should get what item from a deceased family member can escalate and turn ugly.
Consider an article from The Wall Street Journal. Entitled “Sibling Rivalry Complicates Estate Planning,” the author goes on to detail how family’s differing views on sentimental items can cause rifts. For example: A $15 pocketwatch. Two sisters couldn’t agree on who should get it, and the will only stated “the daughters should decide.” This forced the executor to have the sisters bid on the watch – against each other!
Some careful thinking could help alleviate this problem. When undergoing estate planning – from will planning to charitable giving – think of your fondest memories. Make sure to reflect on what stories your loved ones often bring up. Is there a particular item attached to that memory that would be most appreciated by a particular person?
We understand the process isn’t easy. But that’s why we’re here: To help with the right questions so you don’t forget anything.
Sep
In the News: Don’t wait
m3admin 0 comments Blog
If you’ve looked around our site, you know we urge all people at any stage in life to figure out a full estate plan. No one can predict death, but everyone can be prepared and make sure their loved ones or preferred charities receive what you want them to.
The Huntsville Item recently ran an article urging readers to avoid the worst possible scenario. One paragraph:
“Many of you may have planned to get your affairs in order, but just have never gotten around to it. If an emergency occurred, would you be prepared? If you were to die, would your property pass as you want? Do your loved ones know whom to contact? Do they know where your bank accounts are? Do they know where your insurance policies are? Do they know all your assets?”
Questions that everyone should carefully consider – and we can help if you contact us.
Aug
Welcome Back Michelle!
m3admin 0 comments Blog
A client favorite, Michelle Burdeshaw, has worked for Rhodes Law Firm since April of 1991. While she took a brief hiatus to pursue a personal business venture in November of 2014, she made her return to the firm the following January to continue what she does best alongside her Rhodes Law Firm family. In her return, she set off to begin re-building the corporate practice of Rhodes Law Firm as the Office Manager and Senior Paralegal, and continues to solidify the relationships with clients–both corporate and estate planning.
Welcome Back Michelle!
Jul
Ransom is malicious and displays the worst aspects of cyber thieving. Unfortunately, with the vast amounts of information we send and receive each day, we’re all at risk. If the worst ever happens to you and your computer suddenly won’t respond when you need it, then we recommend this Business Insider article:
“Ransomware is evolving and that’s bad news for just about everybody except cyber thieves. Ransomware, which is a form of malware, works by either holding your entire computer hostage or by blocking access to all of your files by encrypting them. A person infected with ransomware is typically ordered (via a pop-up window) to pay anything from a few hundred to a few thousand dollars in order to get the key to unlock their encrypted data.
Of course, there’s no guarantee that even if a victim pays the demanded amount they will actually get access to their files again, which makes dealing with ransomware somewhat of a tricky issue. And with new, sophisticated strands of ransomware on the rise, it’s likely that more people will become infected and have to deal with the headache that comes along with it, security experts tell Business Insider.
Cyber criminals are now using the most modern cryptography to encrypt stolen files and are getting really good at making their dangerous links and downloads seem perfectly benign. One new strand of ransomware that falls into this category is called CDT-Locker and is often times very hard to detect. CDT-Locker can be hidden in files in such a way that even security software can’t tell it’s there. To make matters worse, hackers are getting people to willingly download these dangerous files by using sneaky tricks to make them appear legitimate.
For example, a hacker might pose as your utility company in an email stating that they need you to fill out an attached form or else your power will be cut off. Or a hacker might even use social engineering to pose as someone in your contact list to get you to click on a link in an email.”
Read more on Business Insider‘s site.