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Here are some initial basic steps to take when a loved one passes. Always obtain competent legal help from a trusted estate lawyer. There is a great deal of sadness when we lose a loved one. I’ve experienced this in my family and it takes time to gain your bearings. Eventually, you’ll need to address the issues surrounding the administration of the family’s trust. Here is a brief list of items that will help you or the Successor Trustee navigate the administration of a trust. Of course there is no way a thorough explanation can be provided for trust administration. It is simply a starting point. I would highly recommend obtaining an attorney who focuses on trust and estates to help guide you. Locate the Trust, Will, Real Estate Papers,…

Start Planning Now to Keep your Family Home in the Family with these Straightforward Strategies. People tend to light up when they talk of their vacation homes because of all the great memories. It’s often the case with a childhood home that has been kept in the family. The question is how do you keep the childhood home or vacation home in the family? Well there are several ways to consider: Outright Sale to Family Members Perhaps the simplest way to transfer a cherished home is an outright sale. However, if the home has been in the family for some time and it has appreciated there may be a capital gains tax, especially if it’s not the primary residence where a capital gain exclusion may apply. Currently the capital gains…

Vacation Homes Offer Tax-Free Income and a Business Deduction. Did you know the Internal Revenue Code allows for you to earn tax-free rental income on your vacation home? The general rule is that if you rent your property for 14 days or less per calendar year, then the expenses that are not otherwise deductible are considered personal non-deductible expenses. So you can’t take a deduction for utilities, insurance, or maintenance. What is great about the general rule is that the rental income earned for the 14 days or less is Tax-Free!! So the requirement is that you not rent out your vacation home for more than 14 days in a calendar year. As long as you follow this rule, the IRS doesn’t even want to know about it!! A couple of other…

Your College Aged Children Needs a Power of Attorney. What if your child needs help, but can't make important decisions for themselves because of some medical condition? Want to make medical decisions for them when they're not able to? Or see their grades, handle financial affairs if they're in a coma? Then you need to make sure they have three very important documents to allow you to help or someone else to help in time of need. The documents needed are actually the most overlooked estate planning documents for the majority of estate plans, but particularly so when it's your College Aged Child. Those documents are the Medical Power of Attorney or Advanced Health Care Directive, Durable Power of Attorney and HIPAA. Because of state privacy laws, college privacy policies…

Is an LLC Right of You? So you've decided to start a business and you've heard you need to choose a business structure. You've also heard a lot about LLC's being relatively easy to establish and maintain with advantages over a sole proprietorship, partnership, or corporation. A Limited Liability Company or "LLC" is a business structure permitted under state law. A major advantage of an LLC is evidenced by it's name: Limited Liability, which limits your personal liability for the activities and debts of the LLC. An LLC is fairly easy to set-up. For most states you file Articles of Organization with the Secretary of State. It also a very good idea to draft an Operating Agreement which simply establishes a framework for how the LLC will be run, authority of…

Begin Now to Plan for Business Year-End Tax Strategies. The end of the year may seem like a lifetime away... And working on your taxes an eternity. But this is your wake-up call...it's already September. Now is the time to take stock of what you've done this year to make sure that your small business takes advantage of every possible tax break available. Here are just a few ideas to think about that could have a big payoff to help you minimize your tax liability this year: 1. Take a look at your accounting. Part of your year-end tax strategy this year, and every year, should be to take a good long look at your accounting. Get a firm grasp on the financial well-being of your business. Ensure that your books…

How to set-up a trust. Trusts can be set-up for a number of reasons and in a variety of ways. A few of the most common reasons for establishing a trust are to avoid estate taxes or the probate court process and protect your assets. There are many different circumstances and personal situations that make tailoring a trust to your specific needs and desires a necessity. Any offer of a trust that doesn't also include getting to know your personal circumstances is probably not worth the paper it's typed on. A trust needs to be tailored to address your specific goals and needs. This article has been prepared to give you the basics of the different types of trusts. After reviewing this article, you may need to review your existing…

Understanding Estate Planning Estate Planning is significantly more than planning just for death. Because the likelihood of disability occurring in your lifetime is three times greater than premature death, even for younger people, your estate plan must include provisions for an unexpected accident that causes injury or any physical or mental disability. Of course, at a minimum your estate plan should include a Last Will and Testament. Beyond these basics of estate planning, you should really take the time to evaluate what you want for you and your loved ones, today, not at some date in the distant future. Additionally, estate planning is critically important if you have own land, a family farm or ranch or a family business. These assets represent the wealth you desire to pass on to…

Failing to Fund Your Trust & Own Assets The Right Way. Here's a little-known secret - even if you have a trust - If the title of your assets are not transferred into the name of the trust, your trust is not funded!! And guess what? If your trust is not funded it won't work when your loved ones need it to the most. You will have effectively thrown your time and money away! Now, most lawyers will make sure your real estate title is held in the name of your newly created trust, but what about the rest of your assets? Since most of us are not planning on dying anytime soon we fool ourselves that there is no sense of urgency to make sure our trust is funded! Further, if…

The Three Evils of Probate. No one likes to think about dying, let alone talk about it or plan for it. But as Benjamin Franklin said, "In this world nothing is said to be certain except death and taxes." Added to that "certainty" is the simple fact that without proper planning there are three evils that will attend a persons passing: Time, Expense and Lost Privacy 1)   Time - Unfortunately, it could take a minimum of 12 months to get through probate court. Or take as long as 18 months, if not longer. What this means is that no one will have access to your assets until the judge settles the estate through probate court. At a minimum the first four months are dedicated solely to informing your creditors that a probate…