Don’t Let Your Living Trust Go Stale
If you have already set up your living trust – congratulations! Having a living trust can save your loved ones from having to go through a long, costly and public probate and/or conservatorship court proceeding. A living trust and other essential estate planning documents also make your wishes clear, minimizing the potential for hard feelings between family members. These reasons along with others clearly outline the benefit of having a living trust, but don’t let your living trust go stale!
Is your trust funded?
A trust avoids probate, but an empty trust does not. What do I mean by that? You have probably heard me say that a trust is like a bucket and you need to fill it with your assets for it to avoid probate. Retitling your assets to your trust is referred to as “funding” your trust. In this newsletter, I’ll explain more about the funding process as well as which assets to retitle into the trust.
Is your child turning 18 this year?
Here’s an issue many families overlook when children leave for college: That child, in the eyes of the law, is now an adult—and needs some all-important documents.
Very important information for small business owners
Congress passed a paycheck protection program for small businesses. The Paycheck Protection Program sets aside $350 billion in 100% federally-backed loans for small businesses that may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.
We’re here for you during this difficult time
Due to the Governor’s order, I am now only meeting with clients via video or phone conference. As some of you may know, I have met with clients virtually before, so systems are already in place for that.
Don’t forget to check your beneficiary designations every year
Do you remember filling out the beneficiary designation form for your retirement account or life insurance?
If you are like most people, you probably don’t remember filling out this important form. You may already know that life insurance and retirement accounts are not controlled by your will or living trust, but by the beneficiary designation form that the life insurance company or retirement account custodian have on file. Common mistakes that I see with these assets are that people have no beneficiaries listed or out of date beneficiary designations. For example, if you recently married, you may still have your parents, siblings or other family members listed as the beneficiary. On the flip side, if you recently divorced, you may still have your ex-spouse listed as the beneficiary. Don’t let this happen to you! Make sure to verify your beneficiary designations at least every year. Most of the time, they can be checked online with the life insurance company or retirement account custodian.
How the SECURE Act Will Affect You and the Beneficiaries of Your Retirement Accounts
On December 20, 2019, President Trump signed the Setting Every Community Up for Retirement Enhancement Act (SECURE Act). The SECURE Act, which is effective January 1, 2020. The Act is the most impactful legislation affecting retirement accounts in decades. The SECURE Act has several positive changes: It increases the required beginning date (RBD) for required minimum distributions (RMDs) from your individual retirement accounts from 70 ½ to 72 years of age, and it eliminates the age restriction for contributions to qualified retirement accounts. However, perhaps the most significant change will affect the beneficiaries of your retirement accounts: The SECURE Act requires most designated beneficiaries to withdraw the entire balance of an inherited retirement account within ten years of the account owner’s death.
Paul Newman Giving Some Great Tax Advice
If you gift appreciated stock directly to charity, you can claim the full fair market value of your stock as a charitable deduction. If the stock is liquidated prior to gifting to charity, you will have to pay capital gains tax on the liquidation of the stock.
A Primer on Proposition 13
A ballot measure is coming to the November 2020 ballot to change Prop 13, which change would create what is called a “split roll”. The “split roll” would increase property taxes for commercial and industrial properties, except those zoned as commercial agriculture or that are owned by small businesses (fewer than 50 employees). So, if you are a homeowner, you can rest at ease… for now. Some opponents on the measure argue that this change to Prop 13 will only bring on more change in the future. You may be wondering what exactly is Prop 13?
Have minor children? We’re helping families name Guardians for their kids at no cost!
When my wife and I did our estate plan, the hardest choice we had to make was who would take care of our kids if something happened to us. To help in the decision making process, here is a handy guide any parent can use when deciding who should be the Guardian for their kids.