Professional Services

A little planning can save thousands of dollars!

If you are like most people, you don't like to think about death, much less plan for it. And since there is no legal requirement to do estate planning, many of us put it off. Yet the truth is that investing a little time in estate and/or probate planning can pay off in lower taxes and administrative costs, increased financial security for your loved ones, and best of all, your own peace of mind.

Estate planning is not just a task for the wealthy, especially these days. Tax, financial and/or legal implications kick in based upon the federal, state and local laws in effect at the time of your death, which will impact how the value of your estate assets are determined and the distribution of your net estate to your heirs.

The value of your home, your personal property, your business interests, your collectibles, your investments, including your retirement accounts, and possibly your life insurance can all enter into the estate review and planning equation.

Use the estate planning calculator to help you determine what your estate is worth.

Basic estate planning documents allow you to control the fundamental financial and personal decisions of your life and death. Here's a list of the essential documents that even the simplest estate plan should include.

Essential documents

• The will. Where there's a will, there's a way — a way to honor your wishes. How, when, and to whom will your property go? Who will be the guardians of your minor children? Without a will, these decisions will be made by strangers in a court system using rules that could be contrary to your intentions. Keep in mind that a will controls only the distribution of your probate estate. It does not control assets held in trust, certain joint assets, retirement accounts, or life insurance policies on which you name beneficiaries.
• Information memo. Keep a list of your insurance policies, bank accounts, investment and retirement accounts, businesses you own, outstanding debt, credit cards, tax-related documents, income sources, and other financial information. In addition, include the names and phone numbers of your accountant, lawyer, doctor, and insurance agent.
• Durable power of attorney. This critical document enables someone you choose to conduct your financial affairs if you become incapacitated.
• Advance Medical Care Directives to physicians and others. A directive (which may be called a living will, health care directive, or some similar name) documents the medical treatment you wish to receive if you become incapacitated. It lets you name the individual(s) you wish to make your medical care decisions if circumstances keep you from making them yourself.
• Funeral instructions. Include your burial wishes and a list of relatives, friends, and business associates to be notified upon your death.

Keep your original documents in a fireproof safe or with a trusted advisor or friend. Put your list of documents and the copies in a binder at home, and tell your personal representative (executor) where the binder is located.

Keep your plan current

Estate planning is an ongoing project. Review your plan and documents on a regular basis to ensure that they are up to date and adjusted as needed due to changes to applicable laws and your personal situation.

Some gift tax planning possibilities:

• Annual gifts
  Current tax law allows you to give away a certain amount each year to as many recipients as you choose with no gift tax consequences. Your spouse may join in this annual gifting even if he or she is not an owner in the transferred asset. This means that you could transfer double the exempt amount each year to each of your heirs. To double the annual exclusion yet again, you may want to include spouses of your children. The person receiving the gift does not need to be related to you. These annual gifts do not reduce your estate tax exclusion.
• Unlimited gifts
  You can make unlimited gifts to pay for another individual's medical expenses or school tuition as long as your payments are made directly to the institution.
• Property transfer
  If you have property which is not needed for your retirement, maybe it is a candidate for transferring during your lifetime. If it is a large income-producer, the future income will be taxed to the new owner and not to you, plus the property will be out of your estate.
• Spousal transfer
  You can make unlimited transfers to your spouse either during your lifetime or through your estate. There are no taxes on spousal transfers, regardless of size.
• Life insurance proceeds
  With proper planning, certain life insurance proceeds can be kept out of your estate.

For assistance with your estate planning, please do not hesitate to contact us with your questions and/or concerns.

Our job to see that you pay no more tax than the law requires.

We monitor changes in the tax law that could affect you and recommend tax saving strategies. Additionally, our firm provides enhanced value with the ability to file all your tax returns and serve as your advocate in all tax matters, e.g., tax audits, issued tax notices, etc.

If any government agency contacts you concerning your tax matters, call us and we will handle the matter so that you can get on with your business and personal life.

A certain mystique has grown around tax planning and tax-cutting techniques. We will translate tax planning into plain English.

There are actually several tax-cutting strategies, and most plans involve one or a combination of them. In a nutshell, the strategies are:

• Splitting income among several family members or legal entities in order to get more of the income taxed in lower brackets.
• Shifting income from one year to another in order to have it fall where it will be taxed at the lower rate.
• Bunching deductions in a particular year may generate a greater tax benefit under current federal or state tax laws.
• Deferring tax liability through certain investment choices and through pension plan contributions.
• Structuring your affairs to obtain a tax deduction for some expenses paid for things you enjoy — a vacation home, for example.
• Investing your money to produce income that is exempt from either federal or state income tax, or both.

Call us to discuss your business, financial and tax questions or concerns.

Today's tax laws are so complicated and becoming even more complicated every year. Thus, chances are you will benefit from a tax professional assistance at some point in your tax compliance endeavors. It is easy to overlook deductions and credits to which you are entitled if you prepare only one return a year. There is no substitute for the assistance of a seasoned tax professional.

We prepare a variety of individual and business tax returns every year. We apply and explain appropriate tax-cutting deductions when your return is prepared. More importantly, we will answer your questions during the rest of the year. Call us to discuss timely tax, business, and financial advice.

Whether you’re a wage earner, an investor, a business owner, or all three, you should take advantage of the available tax-cutting benefits. There is little to be gained by paying more tax than the law demands.

Identify the tax-savers for which you qualify. Below is a tax-cutting checklist to get you started. Check to see if there are tax breaks you are overlooking.

For Individuals:

    Roth IRA
    Roth 401(k) if employer's plan permits
    Rollover to Roth IRA
    Tax-deductible IRA
    Child tax credit
    Child care credit
    Earned income credit
    Annual gifts to reduce estate
    Education savings accounts
    Education expenses and applicable educational credits to consider
    Bunching deductions
    Flexible spending accounts
    Health savings account
    Donating appreciated assets instead of cash
    Qualifying property for personal residence gain exclusion
    Filing status considerations
    Shifting income from year to year
    Adoption expense credit

For Investors:

    Tax-free municipal bonds
    Long-term capital gains analysis
    Rental property
    Tax-free exchange
    Low-income housing credit
    Small business stock rollover

For Businesses:

    Home office deduction
    Keogh plan
    SIMPLE plan
    SEP
    401(k) plan
    First year expensing of business equipment
    Year-end bonuses
    Bad debt write-off
    Disabled access credit
    Health care tax credit
    Other business tax credits
    Tax-free exchange

For your convenience, we can provide an individual or business tax organizer for you to bring to us at tax time with the supporting documents to ensure a more complete way to finalize your annual tax filings.

Contact our office with your questions, or if you want more information on these and other strategies that could reduce your taxes.

And finally, review our Newletters as often as you would like for more information.