Category: Articles

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…

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…

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,…

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…

"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…

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.…

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…