If you’re ahead of the curve or right on time, you should be wrapping up your income tax preparation for the year. Being knowledgeable about where you or your business succeeded in the past year can be a wakeup call about revising your estate plan. Over the course of one year, a lot of things can change in a person’s life or a business. This might call for some changes in your asset protection planning or estate planning as well.
This can be a very valuable exercise especially if you claimed new deductions from this past year- did you buy a house? Have a child? It might be time to reconsider your approach towards planning or to at minimum update your estate planning documents to reflect new beneficiaries.
Since you’re already in the mindset of thinking about how things have changed over the past year, it’s wise to get ahead of the planning curve and reach out for an estate planning review now. You might be surprised and a new strategy that could help you accomplish your goals more effectively. Contact us at info@lawesq.net.
One of the cornerstones of elder law planning involves a durable power of attorney that helps you safeguard against a possible inability to manage your own affairs. Many people are familiar with the benefits of having a will to allow smooth distribution of assets upon death. Others, however, skip out on planning for a possible disability that could render them unable to manage their personal, financial, and business affairs. While you’re aware of the benefits and are of sound mind, it’s a good idea to establish a durable power of attorney so that your interests are protected.
A durable power of attorney allows you to name the person who will manage your affairs in the event of a disability. This eliminates the necessity of otherwise having a guardian appointed to help you, which requires a court procedure. Since disability can happen as a result of numerous causes, like old age, an accident, illness, or an injury, it’s simply prudent to think about who can help you manage your affairs. While disability is something that no one wants to consider, it’s a possibility that should be safeguarded against. Even if you’re approaching old age in relatively good health, you should contact an elder law professional to set up your durable power of attorney sooner rather than later.
Our offices can help you today-send us a message at info@lawesq.net.
Hear Neel Shah, Managing Attorney of the Law Firm of Shah & Associates, P.C. describe the highlights of this weekly Blog Posts. For the full post, visit: https://lawesq.net/blog/
Gift Tax Returns and Penalties for Not Filing
A fair amount of taxpayers are familiar with at least the basics behind gifts and taxes, but it’s important to understand your obligations when making taxable gifts to others to ensure your compliance with the Internal Revenue Code. Click here for more, https://lawesq.net/blog/2015/03/gift-tax-returns-and-penalties-for-not-filing/
Asset Protection Trusts: Guidelines for Efficient Integration
One of the most popular approaches to estate planning has to do with safeguarding assets against possible losses. Asset protection trusts are one common way to protect property for you and your beneficiaries.Asset protection trusts refer to irrevocable trust structures in which a trustee holds property and distributes it out under his or her discretion. Click here for more, https://lawesq.net/blog/2015/03/asset-protection-trusts-guidelines-for-efficient-integration/
Self-Settled Asset Protection Trusts: A Growing Estate Planning Trend?
Self-settled asset protection trusts get more buzz these days, but they weren’t even recognized in the United States until the latter part of the 1990s. Before this time, putting together a self-settled trust required establishment outside U.S. borders. In 1997, though, Alaska recognized self-settled trusts and Delaware followed. Click here for more, https://lawesq.net/blog/2015/03/self-settled-asset-protection-trusts-a-growing-estate-planning-trend/
The Four Ways to Pay For Long Term Care
With increasing longevity and awareness surrounding elder care issues, more people are seeking out options to plan for long-term care. In the event that you or a loved one needs long term care assistance, there are four primary ways for which that case can be paid for. Click here for more, https://lawesq.net/blog/2015/03/the-four-ways-to-pay-for-long-term-care/
Should I Convert My S Corporation to an LLC?
It’s very popular for business owners to operate under the structure of an S corporation. This allows business owners to generally avoid “double taxation” that could impact owners of C corporations. Operating as an S corp may help a business owner avoid self-employment taxes typically affecting LLCs that choose to be taxed as partnerships. Click here for more, https://lawesq.net/blog/2015/03/should-i-conve…tion-to-an-llc/
Visit us at www.LawEsq.net
Call us to request a copy of the Newsletter: 732-521-9455
Like us on Facebook Page: https://www.facebook.com/TrustsEstatesBusinessLaw
Anytime you hit the Internet to do some kind of research, you’re likely involved in thinking about the situation at hand, how a product or service will fit into your own life, and any unintended consequences that might pop up during the way. Just as choosing a new car or new home involves the careful weighing of options for your unique needs, estate planning involves the selection of tools that are most appropriate for you and your situation.
Each person’s estate planning goals are different, meaning that these goals need separate documents and strategies. Even if the overarching goal is the same- like helping family members to avoid the probate process, life experiences and long term goals will help point you in the right direction regarding the actual tools to use. One of the most common questions that a person new to estate planning has regards whether to use a will or a living trust. In this two-part post, we’ll look at what differentiates these documents from one another to help you identify whether one is a better fit for you than another.
A will accomplishes three primary goals: determining how and to what people your assets are distributed once you pass away, it can allow you to name a guardian for a minor child or disabled adult, and it establishes a personal representative for your affairs.
A living trust also accomplishes three goals: it establishes how your disability is determined and who will handle your affairs in the event you are disabled, it determines how and to what people your assets are distributed after your death, and it names a success trustee to handle your affairs after you pass away.
Tune in to tomorrow’s post to learn more about wills versus living trusts. As always, we’re here to answer questions and walk you through it: info@lawesq.net
It’s very popular for business owners to operate under the structure of an S corporation. This allows business owners to generally avoid “double taxation” that could impact owners of C corporations. Operating as an S corp may help a business owner avoid self-employment taxes typically affecting LLCs that choose to be taxed as partnerships.
Even though dividends from S corps are not calculated in terms of self-employment taxes and provide more income tax benefits for this reason, they don’t provide the kind of asset protection that a business owner might prefer.
Stock linked to C corps and S corps can be exposed to risk in the form of judgment creditors. If there are major assets inside your S corp, there may be benefits to converting to an LLC to protect them. Whereas an S corp has stockholders, an LLC is limited to members. So long as the LLC documents are drafted in the right way and you have more than one member, a judgment creditor should not be able to access assets inside the company.
If you own an S corporation and are weighing the benefits of converting, communicate with an business protection planning specialist to determine how your state laws view this. In many cases, statutes will allow for this conversion for long that the ownership of the LLC is identical to the previous structure.
Contact our office to learn more about to advantages associated with converting your business type- you can schedule an appointment by emailing info@lawesq.net.
Hear Neel Shah, Managing Attorney of the Law Firm of Shah & Associates, P.C. describe the highlights of this weekly Blog Posts. For the full post, visit: https://lawesq.net/blog/
Structuring Your Business Succession Plan With Taxes In Mind
If you feel overwhelmed or confused by the process of business succession planning, you’re not alone. In fact, this is a common challenge facing many of America’s business owners. To further complicate matters, many business owners are not informed about the possible tax implications of a succession plan they choose..For More Details https://lawesq.net/blog/2015/03/structuring-your-business-succession-plan-with-taxes-in-mind/
Revocable Living Trusts – What You Must Know
Before determining that a revocable living trust is the right fit for you, you should evaluate several factors. The term “living trust” may be exchanged with “revocable trust”. This means that you create it during your lifetime and that you can change it during your lifetime as well. The living trust, when used properly, can help you manage assets or protect you in the event that you become ill or disabled. For more details https://lawesq.net/blog/2015/03/revocable-living-trusts-what-you-must-know/
What Happens if I Die Without a Will?
If you die without a will, the laws of the state in which you lived will determine what happens to the assets inside your estate. Typically, the distribution will be passed along to your spouse and any children, although this can vary based on your location. One of the downsides of not having a will is that you give up control over what can happen to your estate assets. For More Details https://lawesq.net/blog/2015/03/what-happens-if-i-die-without-a-will-2/
Why Would I Need an Elder Law Attorney?
Elder law refers to a practice that is devoted to the needs of older clients. Elder law attorneys have specialized knowledge about long-term care planning, advance health care directives, powers of attorney, probate and trusts, guardianships, and asset protection. While many elder law clients turn to an attorney in the midst of an elder care planning crisis, you might also reach out to an attorney with experience in this field so that you can plan ahead. For More Details https://lawesq.net/blog/2015/03/why-would-i-need-an-elder-law-attorney/
Power of Attorney Planning – Get the Fast Facts
One of the most important parts of your lifetime estate planning has to do with a power of attorney. This document gives one or more individuals the authority to act on your behalf as your official “agent”. You can give this individual narrow power or you can give them broad discretion over acting in your capacity. For More Details https://lawesq.net/blog/2015/03/power-of-attorney-planning-get-the-fast-facts/
Visit us at www.LawEsq.net
Call us to request a copy of the Newsletter: 732-521-9455
Like us on Facebook Page: https://www.facebook.com/TrustsEstatesBusinessLaw
With increasing longevity and awareness surrounding elder care issues, more people are seeking out options to plan for long-term care. In the event that you or a loved one needs long term care assistance, there are four primary ways for which that case can be paid for:
Self-pay. This involves the spending of personal assets to cover rehabilitation, nursing home, or at-home care. In many places, the annual cost of care is exorbitant, forcing an individual to spend through his or her assets in a few months to a year.
Medicare. There are a lot of misconceptions about what Medicare will and won’t cover, but you should know that Medicare only provides for short-term rehab and not long-term care or custodial care.
Long-term care insurance. This kind of protection cannot be purchased after you or a loved one has developed a need for care. In order for the purchase to be affordable and for the policy to be approved, you’ll need to purchase it when you’re healthy and in advance of any long-term care events.
Medicaid. This is the only government program that covers long-term care, but you must need rigid income and asset guidelines in order to receive benefits. An elder law attorney can help you understand what you need to know in order to qualify for Medicaid.
To learn more, contact us at info@lawesq.net today.
If you die without a will, the laws of the state in which you lived will determine what happens to the assets inside your estate. Typically, the distribution will be passed along to your spouse and any children, although this can vary based on your location. One of the downsides of not having a will is that you give up control over what can happen to your estate assets.
The state’s plan for the management of your estate is simply their best guess about what most people would elect to do with their estates. There are some built-in protections for special beneficiaries, like children. Unfortunately, there is no guarantee that what they choose to do will actually reflect your wishes. Outside of a family setting where everyone is in agreement, this kind of planning done by the court can be frustrating and confusing for heirs.
Putting a will in place is one of the most basic aspects of estate planning and gives you the opportunity to “override” your state’s default management plan for your estate. You can have control over more decisions and provisions that will impact the future for your heirs. To learn more about wills and other strategies in estate planning, contact us at info@lawesq.net
Before determining that a revocable living trust is the right fit for you, you should evaluate several factors. The term “living trust” may be exchanged with “revocable trust”. This means that you create it during your lifetime and that you can change it during your lifetime as well. The living trust, when used properly, can help you manage assets or protect you in the event that you become ill or disabled. Since you have the power to revoke or change them, you should be aware that the tax advantages available with irrevocable living trusts are not the same in this scenario. These trusts, however, can help you avoid probate.
The use of irrevocable living trusts, however, does allow asset protection and other tax advantages because you do not have the power to revoke or change the trust.
More than likely, you’ll be the trustee of the revocable trust while you are still alive, and those powers will transfer to another trustee in the event of your death. This second trustee might either distribute the property or continue managing the property for the beneficiaries. A living trust can allow for distribution of your property at death, and serves as a will substitute. However, unlike a will, a living trust gives you the power to manage property while you are still alive and gives a trustee power to manage it in the event you become incapacitated. To learn more about the different types of trusts, please contact us at info@lawesq.net.
Hear Neel Shah, Managing Attorney of the Law Firm of Shah & Associates, P.C. describe the highlights of this weekly Blog Posts. For the full post, visit: https://lawesq.net/blog/
Should Divorce Planning Be Included in Trusts?
Trust planning can be complex, which is why it should always be handled by an experienced estate lawyer. Depending on the type of trust you choose, there are many benefits you can reap from choosing this kind of tool. More and more, however, individuals are considering putting verbiage inside their trusts to have a spouse removed in the event of a divorce..For More Detailshttps://lawesq.net/blog/2015/03/should……uded-in-trusts/
Insulating Your Assets Against Lawsuits: Getting Started
Lance Armstrong has done it- insulated his assets from being totally exposed to creditors. But there are reasons that other people outside of public figures should considering doing the same. While it’s very difficult to imagine all of your money being entirely protected from creditors, there are steps you can take to protect yourself with business planning and estate planning. For more detailshttps://lawesq.net/blog/2015/03/insula……etting-started/
Five Key Steps For Physicians to Reduce Estate Taxes and Protect Heirs
These days, physicians have a lot to worry about as they grow their assets. Many, after years of residency, are plunged into a higher income bracket, but this can come with risks. Litigation, for example, can expose all those new assets of a physician to serious risk. That’s why it’s so important to take steps early to protect your assets and engage in regular review as your wealth grows. For More Detailshttps://lawesq.net/blog/2015/03/five-k……-protect-heirs/
What Are the Steps Involved in Administering an Estate?
It’s important to recognize that after a loved one passes away, no more estate planning can be done, even if you believe that the current plan is flawed. If you’re a party to administering the estate, you have to get to work pretty quickly to accomplish the tasks likely in front of you. For More Detailshttps://lawesq.net/blog/2015/03/why-pe……state-planning/
Often Forgotten: Tangible Personal Property in Estate Planning
Most people would consider these items, also referenced as “belongings” to be important or of sentimental value, but they often get overlooked in the estate planning process. These items can be furniture, clothing, jewelry, silverware, cars, boats, pieces of art, or household furnishings. Even those these items tend to be left out of estate planning, it’s also quite common for heirs to fight over them.https://lawesq.net/blog/2015/03/often-……state-planning/
Visit us at www.LawEsq.net
Call us to request a copy of the Newsletter: 732-521-9455
Most people would consider these items, also referenced as “belongings” to be important or of sentimental value, but they often get overlooked in the estate planning process. These items can be furniture, clothing, jewelry, silverware, cars, boats, pieces of art, or household furnishings. Even those these items tend to be left out of estate planning, it’s also quite common for heirs to fight over them.
The cost of these items in comparison with the legal costs to fight over them is often not equal, meaning that heirs might be filling to fight for it but at great expense. Each family member might have a different perception on what is “fair” regarding the distribution of this property, so it pays to plan in advance and limit fighting between loved ones.
One common approach if you don’t want to list everything in detail is to put a standard provision inside that you leave everything to your spouse. If your spouse does not survive you, you can outline that your children receive it and that if your children do not agree, a personal representative can help distribute the property. Most people assume that their children will actually not argue over these items, but legal disputes related to these belongings are more common than you think.
In order to limit the possibility for such arguments, consider the following checklist:
Consider who should be included in the process
Detail the process of selection
Think about how gifts should be treated
Evaluate how separate appraisals of the same item should be treated
Determine how items with only sentimental value will be classified
Set up systems to allow for the home to be vacated as quickly as possible
To learn more about the importance of planning ahead for personal property, contact us today at info@lawesq.net.
It’s important to recognize that after a loved one passes away, no more estate planning can be done, even if you believe that the current plan is flawed. If you’re a party to administering the estate, you have to get to work pretty quickly to accomplish the tasks likely in front of you. Depending on your location, you may need to follow a series of steps to actually administer the estate:
Filing the appropriate paperwork regarding probate
Initiate the probate process, which is ruled by state laws and court supervision
Get approval for estate expenses, if necessary
Publish a death or custodianship notice in the newspaper
Inventory the assets inside the estate, including their value
Notify any businesses or creditors
Collect any accounts receivable related to business agreements or personal loans
Claim proceeds for life insurance or annuities that were not payable by contract to specified beneficiaries
Putting together, paying, and representing the estate in front of tax authorities
Transfer property to the distributors
As you can see, there are many different tasks that might be required in estate administration, which is why more and more people are using trusts and other non-probate tools to plan for the future without making heirs worry about the process of probate. To get help putting your estate in order, contact us today at info@lawesq.net.
These days, physicians have a lot to worry about as they grow their assets. Many, after years of residency, are plunged into a higher income bracket, but this can come with risks. Litigation, for example, can expose all those new assets of a physician to serious risk. That’s why it’s so important to take steps early to protect your assets and engage in regular review as your wealth grows.
There are a few basic steps you can take to safeguard yourself, but there are many options when it comes to asset protection planning as well as your estate. As your situation changes, of course, it’s important to reconsider what you
Step 1: Update Your Will
Step 2: Avoid Probate With Trusts and Other Tools
Step 3: Consider Tax Reduction Strategies like gifting or an ILIT
Step 4: Review Beneficiaries
Step 5: Update Regularly
The first three steps are something you can visit while meeting with an estate planning attorney. The last two highlight the importance of an annual review to ensure that your documents are still in line with your wishes. Following these five steps can be really important to protect the new wealth you are growing into. Don’t let your hard-earned assets be exposed to major risks- investigate what you can do to protect it today. Email us at info@lawesq.net.
Hear Neel Shah, Managing Attorney of the Law Firm of Shah & Associates, P.C. describe the highlights of this weekly Blog Posts. For the full post, visit: https://lawesq.net/blog/
1.What’s the Difference Between Elder Law and Estate Planning?
2.IRS Activates New Regulations for Tangible Property
3.Planning to Pass the Business to the Next Generation? You Need Succession Planning
4.Why People Often Avoid Estate Planning
5.How to Choose an Estate Planning Attorney Who is Right For You
Visit us at www.LawEsq.net
Call us to request a copy of the Newsletter: 732-521-9455
Like us on Facebook Page: https://www.facebook.com/TrustsEstatesBusinessLaw
Putting your estate plan together and getting important questions answered is not something that should be underestimated. Selecting the professional that is right for your needs is important because you’re likely to form a long-term relationship with such an individual.
Whether it’s simply good planning sense or the rash of celebrity estate planning faux pas stories in the news, more people are thinking about their estates. Planning ahead goes far beyond putting together a will for most because it involves strategies designed to maximize the value of assets while minimizing the impact of taxes.
You should have a level of comfort with your estate planning professional but also ease in communication. This individual should be able to help answer your questions but also conduct a review of your needs and suggest tactics and strategies specifically aligned with you. Even though estate planning is known for being complex, it can be very helpful to work with somebody who is committed to providing you with an understanding of value for each type of estate planning tool put to work for you.
Finally, an estate planning relationship should not be a one-time conversation. It should involve annual reviews, a team that provides you with the most relevant news information related to your planning, and a team that is there to answer questions for you in the long run. When hiring an estate planning attorney, look for somebody you can trust that is interested in building this long-term relationship with you. Let us help you- contact us at info@lawesq.net.
Most people recognize the value of doing it, but it’s either so difficult to work into their frame of mind or it’s something that seems so far off that estate planning tends to get skipped over.
As a bottom line, most people don’t want to think about dying. It’s a sobering topic, and it’s also one that generates a lot of questions you may not be sure you know how to answer. There are four primary reasons that people avoid estate planning:
They don’t want to think about death. Although most people want to avoid the topic of death, wouldn’t you rather address it while you’re healthy and competent? It’s much easier to plan ahead this way.
They don’t have time. Many estate planning mistakes or confusing court cases could have been avoided with planning ahead. Most people are busy, but you’d be surprised at how little time you actually need to invest in order to develop an estate plan.
Some assume they don’t have an estate worth worrying about. You can have an “estate” if you own just about anything, and not putting this on paper can make it difficult for your loved ones to figure out your intentions after you pass away.
Some people don’t understand it. They may assume that estate planning is all about using complex tools like trusts, but estate planning is designed to meet you where you are at, not make things more difficult than they need to be. Regardless of your needs, it’s an important process.
Skip the excuses and set up a meeting today to settle your estate planning concerns while you are already thinking about. We can help you- request your meeting today at info@lawesq.net.
There’s no doubt that it can be a real challenge for business owners to talk about succession planning. For some, it’s because their drive and entrepreneurial vision contributed so much to the success of the enterprise. For others, it’s because they can’t imagine taking a step back from the business. And for others, it has to do with not being sure what the future holds in terms of the business. All of these are understandable reasons for putting off the succession planning conversation, but they don’t diminish the true value of thinking ahead.
Succession planning is not just answering the “who” question- it’s about answering the “how”, too. There are several different tools that can be used to help with the process of succession planning, such as a buy-sell agreement and life insurance. If you aim to be passing on the business to another generation, you need to have a conversation with your business succession planning professional to talk about the most effective way to do this. Keeping stakeholders involved and informed can be crucial for success.
If you think that the business is going to end with you, or that you might want to sell it, these are equally important concerns that may lead you into a series of estate planning questions specifically for you. The reality is that even if you’re not sure of the direction you’re going to go, setting up a meeting can help you work through these difficult issues and determine an effective route for moving forward. Send us a message to set up your meeting today at info@lawesq.net.
It’s tax time again, and trustees and executors involved in portfolios with real estate as well as businesses holding property should be aware of the new regulations linked to tangible property. Although these new regulations are complicated, they can be an important tool for reducing 2014 tax liability with the right planning.
These tangible property regulations, frequently referred to as “repair” regulations, were finalized in September 2013 and were made active for all tax years after January 1, 2014. One of the reasons for the revised regulations is that in the past, taxpayers had to content with IRS codes and Tax Court decisions that often seemed opposed to one another. The new guidelines aim to line up the IRS guidelines with recent decisions from the courtroom to provide clarity for taxpayers.
The basics of the changes have to do with when real estate owners or businesses spending money to improve, repair, or acquire tangible property. These expenses can be deducted as ordinary and necessary or capitalized and depreciated over time. Especially when it comes to rental real estate, the decision made on how to deduct the expense can have important implications. The most important change in the new regulations has to do with the fact that tangible property regulations require taxpayers to apply them as if they had been in effect from inception, requiring review of general ledgers and depreciation schedules. After analysis, this means either a one-time reduction of taxable income for 2014 or a taxable income increase spread out over four years.
To learn more about the specifics of planning for your taxes this year and beyond, contact our offices for a consultation or a review. Send us a message at info@lawesq.net if you have questions.
Even though there are often situations where these two practices blend into one another, talking about estate planning and elder law does not always mean exactly the same thing. One key way to look at what makes these two kinds of practice unique is to consider the critical questions that each aims to answer:
What happens if I die?
What happens if I live?
Invariably, both elder law and estate planning in some ways address both life and death. Increasingly, estate planning tools help individuals capitalize on plans while they are still alive. Estate planning, however, has a much sharper focus on what happens when you die, especially when it comes to the transfer of your assets. A lot of the questions addressed in elder law, however, have to do with helping people plan for the future within their own life. As longevity is a major concern for today’s elderly, planning in advance for aging and long-term care are just as important as factoring in estate planning.
Estate planning and elder law work together. Imagine it this way: what benefit is putting so much effort into planning for the transfer of your assets on death when you pass away if all of those assets are put in jeopardy by one major health event? Elder law works to protect those assets and get you thinking about these concerns early on so that you can meet your estate planning goals. Send us an email today at info@lawesq.net to learn more.
This is an issue that many of our clients express during their first meetings with us. Parents with wealth are concerned about leaving just enough to their children to allow the children to succeed without leaving too much so that the heirs would become “spoiled”.
When it comes to setting children up for success without making them too spoiled, parents can do a lot to install traits and virtues that promote behavior the opposite of spoiled. These virtues include generosity, thriftiness, patience, curiosity, perspective, and perseverance. How can parents promote this from birth? According to financial columnist Ron Lieber, who developed this list, parents can select balanced vacation options, reduce materialism on a daily basis, provide allowances that are not based on chores, and have clear conversations about money with children from an early age.
It’s not just about selecting the right estate planning tools, but determining what tools will work in combination with the example set forth for children. The first stage of doing this involves putting in the time and the effort to think about this fear of having spoiled children and what can be done to avoid it. The second stage is in developing clear statements about goals and values for the children. Once you have accomplished this, it’s time to put together an action plan that lays out how these goals can be achieved.
Working together with establishing goals and confronting fears, estate planning can be an empowering process that puts parents in the right perspective to think about their legacy.
Contact us today to learn how we can help you info@lawesq.net.
