Articles – Field Law

Oct312024 by Field LawNo Comments

Show Me the Money: Why Financial Literacy is an Estate Planning Issue

Clear communication around money is one of the biggest challenges couples face when they get married. Whether it is dealing with differences in spending priorities, budgeting practices, or relationship to money, it can be difficult getting on (and staying on) the same page. Money is one of the leading causes of divorce in America, with financial problems contributing to somewhere between 20% and 40% of all divorces. When it comes to estate planning, having open conversations and addressing concerns around your finances is critical to making sure your plan works how and when you need it to. The immediate issue for finances and estate planning is funding your trust. You must make sure all your assets are titled appropriately to ensure that your trust has authority over your estate. It…

Aug12023 by pfernandNo Comments

I’ve become a trustee of family member’s trust, now what?

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The job of being a trustee of a trust can be daunting and leave you feeling afraid of the dark, even if you never were before. There are several things you should do that will help you feel more in control. Get a Copy of the Trust and Read It. One of the first things to do is obtain a copy of the trust, if you haven't already, and read it. Even if you don't understand it in its entirety become familiar with the contents, the specific gifts, provisions, powers, and other terms. Make a list of people named in the trust and any assets listed, normally assets are listed on a schedule attached to the end of the trust. Your familiarity with the trust will help you speak with…

Aug12023 by pfernandNo Comments

Vacation Homes Offer Tax-Free Income and a Business Deduction

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https://youtu.be/L39ce8y30B4 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 guidelines: use a reasonable daily rental rate which should…

Aug12023 by pfernandNo Comments

Basic Steps To Take When A Loved One Passes

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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,…

Jul12023 by pfernandNo Comments

Is an LLC Right of You?

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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 the members, requirements of members, how…

May192023 by pfernandNo Comments

Tax Planning for my Business

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"There is nothing wrong with a strategy to avoid the payment of taxes. The Internal Revenue Code doesn't prevent that." The late Chief Justice William H. Rehnquist. Most business owners don't have a strategy or a plan for savings taxes. They think they do or actually they think their tax preparer does and that their tax preparer is implementing that "plan." But the reality is the tax preparer is just making sure you're in compliance and compliance is simply putting numbers in the right boxes on the right form and sending it to the IRS at the right time. Some plan!! Are you satisfied with the amount of taxes you pay? Are you absolutely confident that you're taking advantage of every legally available tax break? Is your tax advisor giving…

May172023 by pfernandNo Comments

Becoming a Trustee

Articles

I’ve become a trustee of family member’s trust, now what? The job of being a trustee of a trust can be daunting and leave you feeling afraid of the dark, even if you never were before. There are several things you should do that will help you feel more in control. Get a Copy of the Trust and Read It. One of the first things to do is obtain a copy of the trust, if you haven't already, and read it. Even if you don't understand it in its entirety become familiar with the contents, the specific gifts, provisions, powers, and other terms. Make a list of people named in the trust and any assets listed, normally assets are listed on a schedule attached to the end of the trust.…

May152023 by pfernandNo Comments

When Loved One Passes

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May152023 by pfernandNo Comments

Start Planning Now

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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…

May152023 by pfernandNo Comments

Tax-Free Income

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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…