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Oct
Around the Web: How Miles & Points Can Help You Be With Loved Ones During Emergencies
Ashley Drummond 0 comments Blog
When you’re grieving the unexpected loss of a loved one, expensive last-minute airfare costs
should be the last thing on your mind. But for many, this can mean having to decide between
financial strain and being near loved ones during a difficult time.
Million Mile Secrets has put together some useful tips and guidelines so you can be better
prepared should a difficult situation arise. These tips, such as taking advantage of bereavement
fares from certain airlines, accruing miles and points with credit cards, and booking last-minute
deals, can save you time and money during a difficult time.
Unfortunately, most major airlines no longer offer bereavement fares. Delta and Alaska Airlines
are the only two airlines that offer discounted ticket prices – usually around 10% – for those
who are traveling due to the loss of an immediate family member. To get this rate, you must
call the airline to book your flight. Each airline has its own limitations as to who is considered an
immediate family member, so make sure to check their website for a list before you reserve
your trip.
Another great way to save yourself money and unnecessary stress is by taking advantage of
your credit card travel rewards. These are points or miles that can accrue each time you use
your credit card, which you can cash in for plane tickets, rental cars, hotel stays, and more.
Having some rewards saved up can help get you on a flight without you having to dip into your
hard-earned savings. There are a lot of credit cards and reward options out there, so it’s best to
do some research to decide which one best suites your needs.
Read the full travel guide here.
Sep
So, you’ve established an estate plan. You may think you’re all set – that you have everything settled and prepared and you don’t have to worry about it anymore – but you would be wrong. According to this article by Forbes, a recent study shows that traditional estate planning will result in a 70% chance that your wealth will be lost by the second generation. If this reality concerns you, you should consider turning your estate plan into a legacy plan.
Legacy planning involves working with a team of advisors who will help propel you towards your goal of leaving a legacy behind for multiple generations. Unlike estate plans, legacy planning is more of a proactive process. While having a traditional estate plan is a good start, it should merely be used as the framework through which your legacy can evolve. Your legacy plan should be one that grows and progresses in sync with your life. Read more about the benefits of creating a legacy plan here.
Contact Rhodes Law Firm today to discuss your planning options.
Sep
Ask yourself this question: “How much is enough?”
You take care of your family, build a home, somehow amass a small (or large) stack of assets. What do you do with them when you die?
For many families, sharing their time, talents and resources with others is a way of life. If your children are adults and successful on their own, do you plan to provide adequate support for your children and continue giving to your causes?
An emotional connection to a charity that has touched your life in a meaningful way, loyalty to a school that guided on the path to success, or simply a worthy organization are all excellent reasons to give.
Passing on your assets after death requires some advance planning. You don’t need to be a multimillionaire to make an impact. You have many choices to give within your estate plan. Some options for charitable giving have favorable tax advantages now and in the future.
Read on to learn more.
Make the Most of Your Legacy
Although death is something no one wants to think about, failure to put your estate in order can cause unnecessary costs. Preserve the maximum value of your estate by making a charitable gift at death through a will or trust.
This reduces the amount of the taxable estate, and thus any estate taxes that your children need to worry about.
Preplanning also reduces unnecessary drama and squabbles, the expenses of probate and uncertainty. If you own a business, estate planning affects not just your family, but the families of all of your employees and customers.
Use Life Insurance or a Charitable Gift Annuity
Integrated into your estate plan, a structured life insurance policy can equalize benefits to your heirs, pay for funeral or other expenses so that your estate assets pass as you see fit, or offer tax benefits in the present.
A Charitable Gift Annuity is a lump sum gift to a charity, with the gift being used to purchase an annuity. The annuity pays the donor a percentage of the gift during the donor’s lifetime and the charity gets the remainder after the donor’s death.
This way the donor has an income stream while living and a charitable gift is made after death.
An experienced estate planner can guide you on the proper way to designate insurance beneficiaries or structure an annuity to meet your needs.
Designate an Outright Gift
You can make charities your heirs. You can bequest a certain amount, designate a percentage of your estate or name a contingent beneficiary. You can update your will throughout your life whenever your family needs, priorities, and wishes change.
If you have no will to specify your instructions, state laws dictate where your property passes. In most cases, this would be first to a surviving spouse, then to your children, and then any other family in accordance with state law.
If you don’t leave a will and don’t have any living relatives, your estate could belong to the state.
Create a Charitable Remainder Trust
A charitable remainder trust allows you to give to the trust and get a partial tax deduction. You or someone you name have an income stream for up to 20 years or for the life of one or more non-charitable beneficiaries. At the close of the trust, one or more of your named charities receive the remainder of the donated assets.
A charitable remainder trust is an irrevocable transfer of cash or property. It is required to distribute a portion of income or principal. At the end of the specified lifetime, the remaining assets must be distributed to the designated beneficiaries.
Use a Community Foundation for Your Charitable Giving
A community foundation allows you to set up your own charitable fund, giving any amount you want, to almost anyone you want, for whatever time period you want. Community foundations are usually geographically bound and allow big and small donors to structure their gifts for maximum impact and tax benefits.
A gift to a community foundation fulfills certain tax objectives. You get a charitable income tax deduction in the year you make the gift AND your gross estate is reduced for estate planning purposes. In addition, you can eliminate capital gains taxes when you give appreciated property.
Create Your Own Family Foundation
Form your own foundation to support a charitable mission during life or at death. For certain families or purposes, a community foundation can be too confining. A private family foundation is a vehicle for assets while you are living and endures as long as your family needs it to.
Family members can participate in charitable grantmaking and governance. There are no specific legal requirements for private family foundations. A family foundation is simply a type of private foundation governed by IRS guidelines.
The IRS estimates that 50% of private foundations are family foundations.
Family foundation assets are public and the setup and maintenance can be complex. However, for high net worth individuals, the benefits may be worth the trouble.
How Do You Want to Be Remembered?
Taking care of your family is the usual first priority for estate planning. After that, people want to think about the things that are important in their lives. Dedicating a portion of your remaining wealth to charitable giving is one of the ways to continue what is important to you, even after death.
Whether dedicated to researching a medical cure for a rare disease or to helping the homeless or your local teachers, you can leave a legacy of generosity. You can make a bequest, designate a beneficiary or enter into more complex plans.
An attorney and qualified estate planner can ensure that your intentions are satisfied. Contact us today to make an appointment.
Aug
Around the Web: Aretha Franklin had no will or trust at the time of her death, report says
m3admin 0 comments Blog
Losing a loved one is always painful, but it’s something for which we all must prepare. One thing everyone could do to make their own passing a little less difficult on their family is to have a properly planned estate.
When the beloved Queen of Soul Aretha Franklin passed away last week, she did not have a last will or a trust set up to assist her loved ones. Now, her finances and assets will become public in Oakland County Probate Court, according to this article by CNN.
Her attorney Don Wilson says he was after her for a number of years to do a trust but she never got around to it, leaving her family to pick up the pieces.
“It would have expedited things and kept them out of probate and kept things private,” he told CNN.
Wilson’s biggest concern is that things will become heated within the family, as this typically becomes the case when there is no estate plan.
“I just hope (Franklin’s estate) doesn’t end up getting so hotly contested,” Wilson said. “Any time they don’t leave a trust or a will, there always ends up being a fight.”
By creating an estate plan, you can help shield your family from unnecessary difficulties during an already difficult time. If you’re ready to make a plan for your estate, give us a call today. We can guide you through the entire process and give you and your family peace of mind.
Aug
Charitable giving amounted to $410.02 billion in 2017 and has steadily increased over the last 40 years. A 2018 study showed charitable giving increased by 4.1% in 2017.
More people are looking for ways to donate, and are seeing great benefits when they do.
Charitable planning is a way to support charities and non-profits that are near and dear to you while receiving tax. You can contribute annually, or periodically over a lifetime.
Take a few minutes to learn how to develop your charitable planning strategies.
Choose a charity
You may donate to a public charity–501c (3)–or a private foundation. If you have an organization in mind already, you should find out about its tax-exempt status.
If it’s a non-profit organization, it will likely be tax-exempt. If it’s a private foundation it might be subject to charitable trust taxation.
There are a few charity types you can donate to and your deductions may differ by the type of organization. Human rights, animals, education, and the environment are just a few types of charities out there.
If you’re unsure of what charity you’d like to give to, there are a few websites available to help you find and research a reputable and deserving organization.
What You Can Donate
You can donate time and things you don’t use anymore.
You might want to consider charitable planning within your estate planning. What items that are usually subject to estate tax could receive further deductions.
Stocks
When you donate appreciated stock, receive a tax incentive and avoid capital gains tax. You’d pay capital gains tax on the stock if you sold it and donated the proceeds.
You can donate shares or the entire stock holding.
Mutual fund shares
If you’ve held the mutual fund for less than a year, you would be able to deduct your original investment amount. Any appreciated value can’t be deducted.
For mutual funds held for longer than a year, you might be able to deduct the full market value from your income taxes.
Short-term mutual finds have a cap of 50% deduction on your adjusted gross income, while long-term mutual funds have a cap of 30%.
However, you can carry any amount that you couldn’t for the current year to the next year for up to five years.
Life Insurance
If you’d like to donate your life insurance to charity, you do it in one of two ways. You can make the receiving organization the beneficiary. It will receive the insurance payout after your death.
You wouldn’t receive a tax deduction for the donation, however, since the contribution wouldn’t happen until after you die.
The second way to donate is to make the charity the policyholder when you’re alive. You could receive up to 50% of your adjusted gross income on the value of your donation and any cash donations to give the charity can be deducted to pay the policy premiums.
Making the charity the policyholder is irrevocable, so you should be sure you won’t want to change your mind later.
Real Estate
Donating real estate can lend benefits to all parties involved. A needy family might get a home or the charity might get a new location. You can donate land (developed and undeveloped) and structures.
When you gift real estate, you avoid capital gains tax and receive immediate tax incentives up to 50% of your adjusted gross income. You can also carry any remaining deductions for five years.
Artwork
When donating artwork, there are a few things to consider.
You should consider the type of organization, the type of property the artwork is (capital gain property or ordinary income property), will the artwork be used in the manner in which it’s gifted, and has it been properly appraised.
Types
Donor-advised funds allow you to donate to a public charity and get an immediate tax deduction. These types of funds can be used like a charitable savings account, where you open a donor-advised fund account and deposit money then recommend grants to charities.
Highly appreciated stocks, bonds, and mutual funds. The full market value of the appreciated stock or mutual fund shares is deducted but you avoid tax on the appreciated gain.
Tax-free from your IRA. When you donate to a non-profit from your IRA, the donation is untaxed.
You can establish a public charitable trust to donate. Charitable trust tax deductions may be spread over five years. The initial donation amount can’t be deducted dollar for dollar.
Benefits
The federal government offers tax incentives to encourage giving to charity. Not only does it benefit the charitable organizations but it benefits the donors as well.
Income Tax
Make the most of your taxable income with charitable planning. You may designate an allotted amount of your taxable income to go to the charity or foundation of your choice.
This can reduce the amount of income tax you will pay during tax season.
Estate Tax
Items you donate to non-profit organizations aren’t considered taxable and are excluded from estate tax.
You can donate as much or a little as you want to charity, so if you wanted to donate your entire estate, you’d pay no estate tax.
Passive Income
Through a charitable remainder trust or a charitable remainder unitrust, you can earn a residual income via charitable planning.
With charitable remainder annuity trusts, you’d receive a fixed annuity amount every year. You can’t make additional contributions to these types of trusts.
Charitable remainder unitrusts pay the donor a fixed percentage based on the balance of the trust assets which are revalued every year. You can make additional contributions to this type of trust.
At the end of the designated lifetime or term, any trust assets that are left go to a charitable remainder beneficiary.
It Feels Good to Give
Studies show that people who are generous are happier and live longer. Not to mention the satisfaction of knowing you’re doing good for someone or something else.
The studies also show that it doesn’t matter the amount you’ve given, the intention and the act produce the same result.
Get Help With Charitable Planning
Planning future donations can be tricky, especially when you’re new to charitable giving.
Visit our blog to learn more about estate planning and charitable planning.
Jul
Our very own attorney, Daniel Rhodes, made a special guest appearance on the program LawCall recently to help answer questions about protecting your assets, trusts, and more. If you didn’t get a chance to tune in to this episode, you can see some clips of the episode here.
LawCall is a weekly program that features local attorneys offering advice and answering questions from callers. The show airs live every Sunday night at 11:30.
May
Around the Web: That fortune will be lost if you don’t add cryptocurrency assets to estate plan
m3admin 0 comments Blog
Cryptocurrency values are rising and so is the wealth of its investors. Adding cryptocurrencies to an estate plan is important to keeping a fortune in order, especially in the event of an unexpected death. However, accessing a deceased relative’s cryptocurrency is a daunting task and is not as simple as gaining access to your relative’s safety deposit box filled with their financial information. Keeping family in the loop of your assets and an updated list of all account information, is essential in protecting assets during an unexpected emergency.
With the popularity of cryptocurrency, safer ways to back up and secure financial assets should be available soon. In the meantime, make sure you are taking proper steps to protect your financial investments, and to ensure your heirs are left with the wealth you have created.
Read the full article here or contact us today to learn how to help add your cryptocurrencies to an estate plan.
May
3 Ways to Protect Your Business Assets
Mass Media 0 comments Blog
If you own a business, you’re probably very concerned about protecting your assets. Most businesses fail in the first five years. Asset protection is key to ensure that your company lives on for future generations.
To keep your business assets and the business itself intact, you have to do three key things.
1. Recognize the Dangers
“Asset protection” is pretty vague, so let’s get more concrete. When you think about your business, think about the ways in which your assets are vulnerable.
For example, if you own a physical storefront, you’ll need to protect it from burglars and vandals. If you’ve invented an innovative product, you may risk losing the rights to it from copycats and patent trolls. You can also have employee disputes, familial ownership disputes, and a host of other things that can damage or leach away the value of your business assets.
Once you’ve identified all the risks to your assets, you can move forward.
2. Get Insured
For any business, no matter what line of work you’re in, business insurance is a must. Business insurance will cover your losses that result from a wide variety of things, such as property damage, legal liability, theft, and employee-related dangers.
In many places, having liability insurance, at the bare minimum, is a requirement for business owners. Check your local laws to ensure compliance.
Signing up for worker’s compensation insurance would also be a sound decision. The last thing you want is to have all your profits and assets taken from you because you’re wrapped up in an arduous and expensive legal battle.
3. Hire a Lawyer To Protect Your Business Assets
Like insurance, a good lawyer can guard you against a lot of different hazards. A lawyer can represent you in legal disputes with customers or employees. He or she can also oversee the trademarking and patenting of various aspects of your operations.
When you wish to pass on your business assets to members of your family or someone else, a lawyer can ensure your assets transfer successfully through estate planning.
A good estate planner can draw up an iron-clad will so that your assets go to the people you want them to go to once you die. There won’t have to be any legal quibbling between your trustees or heirs
A lawyer may seem like a costly expense, but in the long run, having a lawyer will save you a lot of time and money.
Need a Lawyer?
Hopefully, this article has given you a few ideas on how to protect your business assets. If you haven’t yet begun to think about the ways that your assets might be vulnerable, don’t worry. You’ve got time.
However, if you’re someone looking to protect their assets once they’ve passed, contact us to oversee your estate planning. We have the expertise to make sure your assets fall into the right hands.
May
Keeping your finances in order is essential to managing your possessions in the event of an unplanned emergency. Make sure you protect your assets and your family during a time of crisis with a properly executed estate plan. Here are a few common ways to avoid an estate planning disaster.
1. Plan Ahead for Disability or Incapacitation. Appointing a person to manage health care and business affairs during a temporary or permanent situation is essential. Without proper documentation, state and local laws will make important decisions for you.
2. Get a Professional to Write Important Documents. Writing your estate planning on your own can often lead to an invalid will. Leave this important step to a professional attorney.
3. Re-examine Your Estate Plan. Changes in laws and family structure can invalidate prior planning. Review your estate plan after a major life event or every five to seven years to avoid an outdated will.
4. Be Honest with Your Estate Planner. A professional estate planner is able to make suggestions to minimize taxes, increase the value of your estate, and to avoid family conflict. These propositions are not possible without disclosing complete information.
For more ways to avoid an estate planning disaster read the full article or contact us today!
Apr
Around The Web: Thinking the unthinkable: Businesses require estate planning
m3admin 0 comments Blog
Estate planning is not just for older people or people who have already retired. Once someone owns a business, it is crucial to start creating an estate plan. The reason for this is to make sure that in the event of incapacity or death, your loved ones and your business are safe and secure.
As soon as you have something to give away, it’s time to do an estate plan. You could be twenty, thirty or forty years old. The estate plan will map what the business owner wants to happen with the business and all assets when he or she dies.
Before scheduling an estate plan meeting, there are a few important things to ask yourself according to this article. Who do you want to handle the business affairs? Who will take over the business? Will it be your family? Your children? A key employee? You may also choose to leave the business to one child and leave other assets to your other children. Having an idea about who you want to leave things to and what those things may be will help make the estate planning process simpler.
The business could easily be put into jeopardy if a business owner does not have estate documents in place. Some businesses do not survive to the next generation because of a lack of planning. It is very important for business owners, no matter how old, to have estate plans in place. Estate planning helps a business survive.
To learn more about estate planning, contact us today!