Here are two very nice overviews that are very timely for the estate planning world:
First, tax time is a great time to think about your estate plan. With the federal estate tax credit going all the way up to $5.42 million per person this year and income taxes on the rise, estate planning is not just about limiting estate taxes. Oregon is unique in that the state still has an estate tax with only a $1 million per person credit, so estate tax planning for state purposes is still important. But after combining your state income tax rate with your federal income tax rate, you may be better served to focus on the income tax side.
Check out this great overview from Jones & Roth, which includes a bit about income tax planning in estate planning.
Second, in my practice, I'm also dealing more and more with planning for estates that are heavy in IRA assets...and I've seen a couple estate situations gone bad with poor IRA beneficiary planning. A properly done IRA beneficiary can be a powerful tool to allowing your heirs to stretch out the IRA over their lifetime. Poor planning (or no planning) can mean a forced liquidation of the IRA over a much shorter timeline (generally 5 years).
Here is a nice overview from Forbes with some great points for you to discuss with your estate planning attorney.
It's never too late to get your estate plan together and if you haven't reviewed your plan with your estate planning attorney since January 1, 2013, now is an important time to take another look.
Friday, February 6, 2015
Tuesday, March 12, 2013
Estate Planning Procrastination
This morning I heard the following story on NPR:
"From Grief Comes A Mission To Make Estate Planning Less Daunting"
It is a heart-wrenching story of sudden loss...but not an unfamiliar story. Just recently I know of two awful stories of sudden loss of a loved one and tragic severe injury suffered while traveling. These are the type of accidents that we can never truly prepare ourselves for.
However, from a legal perspective, there are a few simple steps we can take to drastically reduce the heavy burden that could befall our loved ones. That is, if we don't procrastinate.
The NPR story touches on a many important items, but the basic estate plan should include:
1. A Will of Living Trust: Wills do not have to be overly complicated, but can provide crucial instructions. A competent estate planning attorney can help you understand if you need a simple will or something more...or no will at all.
2. A Power of Attorney: A Power of Attorney is a critical document for protecting your assets during your lifetime. The Power of Attorney provides for someone to manage your assets if you are unable to do so. But note, a Power of Attorney is a very "powerful" document and so I recommend that you consult with an attorney prior to signing one.
3. Advance Directive: In Oregon, the state has created the Advance Directive form as a type of living will so that your family and your doctor know your health care wishes even if you are unable to express them. This is a state form, easy to find, and should be a part of any basic estate plan.
Finally, BE ORGANIZED. When I meet with clients to prepare their estate plans, half of the battle is just getting organized: locating account numbers, checking beneficiaries on life insurance and IRAs, and identifying debts. Having an ongoing inventory of your assets and liabilities can make all the difference in saving your loved ones from complicated headaches and court costs that will far exceed some basic planning now.
Talking about death does not have to be scary or daunting. We should be talking about our own wishes and making our aging parents talk about their plans and wishes. By putting these issues into the open, we can make a plan to remove the burden that otherwise just hangs over us - a truly unnecessary burden.
Find an estate planning attorney and get information. Determine if cheaper self-help options are for you or if you need professional assistance. And if you call me and mention this blog post, I'll give you a free estate planning consultation. Just don't procrastinate any longer!
Kirk
"From Grief Comes A Mission To Make Estate Planning Less Daunting"
It is a heart-wrenching story of sudden loss...but not an unfamiliar story. Just recently I know of two awful stories of sudden loss of a loved one and tragic severe injury suffered while traveling. These are the type of accidents that we can never truly prepare ourselves for.
However, from a legal perspective, there are a few simple steps we can take to drastically reduce the heavy burden that could befall our loved ones. That is, if we don't procrastinate.
The NPR story touches on a many important items, but the basic estate plan should include:
1. A Will of Living Trust: Wills do not have to be overly complicated, but can provide crucial instructions. A competent estate planning attorney can help you understand if you need a simple will or something more...or no will at all.
2. A Power of Attorney: A Power of Attorney is a critical document for protecting your assets during your lifetime. The Power of Attorney provides for someone to manage your assets if you are unable to do so. But note, a Power of Attorney is a very "powerful" document and so I recommend that you consult with an attorney prior to signing one.
3. Advance Directive: In Oregon, the state has created the Advance Directive form as a type of living will so that your family and your doctor know your health care wishes even if you are unable to express them. This is a state form, easy to find, and should be a part of any basic estate plan.
Finally, BE ORGANIZED. When I meet with clients to prepare their estate plans, half of the battle is just getting organized: locating account numbers, checking beneficiaries on life insurance and IRAs, and identifying debts. Having an ongoing inventory of your assets and liabilities can make all the difference in saving your loved ones from complicated headaches and court costs that will far exceed some basic planning now.
Talking about death does not have to be scary or daunting. We should be talking about our own wishes and making our aging parents talk about their plans and wishes. By putting these issues into the open, we can make a plan to remove the burden that otherwise just hangs over us - a truly unnecessary burden.
Find an estate planning attorney and get information. Determine if cheaper self-help options are for you or if you need professional assistance. And if you call me and mention this blog post, I'll give you a free estate planning consultation. Just don't procrastinate any longer!
Kirk
Wednesday, May 16, 2012
Paying for Long-Term Care
As Americans, especially the Baby Boomer generation, live longer lives there is an increased concern that eventually many of those individuals will require some type of special care or long-term care. Living in a full care facility can cost upwards of $7,000 per month.
This discussion from the Wall Street Journal gives two sides to the argument of whether or not to purchase long-term care insurance. While I don't agree with every point made, I think the article helps to provide some helpful food for thought.
Whether you have long-term care insurance or not, planning for your future is critical and can help to remove the incredible stress placed upon family members when an aging family member requires care -- especially when that family member lacks capacity to participate in their own care decisions. Careful planning with an estate planning attorney and financial adviser can ensure that there is a plan in place to guide long-term care decisions and provide adequate financial resources to execute the plan with minimal additional stress on all parties involved.
Do you have a plan for your future?
This discussion from the Wall Street Journal gives two sides to the argument of whether or not to purchase long-term care insurance. While I don't agree with every point made, I think the article helps to provide some helpful food for thought.
Whether you have long-term care insurance or not, planning for your future is critical and can help to remove the incredible stress placed upon family members when an aging family member requires care -- especially when that family member lacks capacity to participate in their own care decisions. Careful planning with an estate planning attorney and financial adviser can ensure that there is a plan in place to guide long-term care decisions and provide adequate financial resources to execute the plan with minimal additional stress on all parties involved.
Do you have a plan for your future?
Tuesday, June 14, 2011
Beware of Groupon
Groupon and Living Social (and others) have become all the rage. And not just for consumers, but for businesses looking for quick cash and exposure. I think these coupon sites offer an interesting marketing approach, but small businesses should beware.
First, check into the payment structure. My understanding is that usually the coupon site will require that you offer at least a 50% discount on a product or service and then take half of the proceeds from all coupons sold. And the pay out to your business may be spread out over time.
I have also heard from a few local businesses that the coupon site people can get a little pushy and insist on changing the deal to be offered last minute, sometimes insisting on changes that may require more for less from the business. This type of advertising is really a "loss leader" in that a business understands it is likely to lose simply on the coupon, but hopes to win with a consumer using the coupon and making additional purchases. However, if the deal is for one-time product or service it may severely limit a small business's cash flow to be giving away hundreds (or thousands) or a product or service for what really is 25% of the normal price.
Below is a link to a series of blog posts that explore this online coupon phenomenon is much more detail. They touch on my points above and give some food for thought about whether the online coupon industry itself is really sustainable.
http://techcrunch.comjavascript:void(0)/2011/06/13/why-groupon-is-poised-for-collapse/
Also, please offer up any local marketing tips you are willing to share in the comments below.
-Kirk
First, check into the payment structure. My understanding is that usually the coupon site will require that you offer at least a 50% discount on a product or service and then take half of the proceeds from all coupons sold. And the pay out to your business may be spread out over time.
I have also heard from a few local businesses that the coupon site people can get a little pushy and insist on changing the deal to be offered last minute, sometimes insisting on changes that may require more for less from the business. This type of advertising is really a "loss leader" in that a business understands it is likely to lose simply on the coupon, but hopes to win with a consumer using the coupon and making additional purchases. However, if the deal is for one-time product or service it may severely limit a small business's cash flow to be giving away hundreds (or thousands) or a product or service for what really is 25% of the normal price.
Below is a link to a series of blog posts that explore this online coupon phenomenon is much more detail. They touch on my points above and give some food for thought about whether the online coupon industry itself is really sustainable.
http://techcrunch.comjavascript:void(0)/2011/06/13/why-groupon-is-poised-for-collapse/
Also, please offer up any local marketing tips you are willing to share in the comments below.
-Kirk
Friday, April 22, 2011
Business Start Up and Planning Course
Check out the link below for a great opportunity for local businesses to get some high quality advice. A four hour business seminar for $50!
Ultimately, a strong and growing business will need the right team of professionals to allow a business owner to focus on business and let the accountant worry about taxes or the attorney to worry about potential liability. As a young business, it is easy to be overwhelmed by the potential expense of these services and to cut costs by avoiding professional advice. The irony is that more often than not these professionals can help you save money in the long run. And the right professional will tell you whether or not you need their services or at least make it clear what you risk without professional guidance.
Events like the one below are a great way to understand what these professionals can do to be value added for your business.
http://www.lanesbdc.com/home/lbd/smartlist_42/business_start_up_and_planning.html
Ultimately, a strong and growing business will need the right team of professionals to allow a business owner to focus on business and let the accountant worry about taxes or the attorney to worry about potential liability. As a young business, it is easy to be overwhelmed by the potential expense of these services and to cut costs by avoiding professional advice. The irony is that more often than not these professionals can help you save money in the long run. And the right professional will tell you whether or not you need their services or at least make it clear what you risk without professional guidance.
Events like the one below are a great way to understand what these professionals can do to be value added for your business.
http://www.lanesbdc.com/home/lbd/smartlist_42/business_start_up_and_planning.html
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