31 January

Sticky

Your Estate Plan Could Help Grow – or Ruin – Your Family Fortune

Most Americans have heard the names “Rockefeller” and “Vanderbilt.” The two families are firmly embedded in American culture through academia (e.g., Vanderbilt University), real estate (e.g., Rockefeller Plaza), charitable organizations, politics, etc. The progenitors of these now-iconic names were John D. Rockefeller and Cornelius Vanderbilt. Both men enjoyed incredible success in different areas of the business world which resulted in substantial fortunes. Both men left vast sums of money to their loved ones. However, the ways in which their fortunes were distributed between descendants varied greatly, which led to two completely different outcomes that highlight just how important proper estate planning can be to maintain your hard-earned fortune. Titans of Industry Cornelius Vanderbilt enjoyed success in the transportation industry, which included owning the New York Central Railroad system. John D. Rockefeller, on the other hand, enjoyed incredible success working in the oil and gas industry, which included founding and growing the...

28 January

0 Comments

Sticky

Personal Pain Fuels Desire to Protect Your Family Through Effective Estate Planning

Posted by Bobby Feisee

in Bobby's Blog

This month marks the 10th anniversary of my father’s death. He lived with dementia for seven years caused by a form of Parkinson’s called Lewy Body Disease. My father’s illness was one of the main reasons I decided to re-focus my legal career and specialize in estate planning. Another attorney helped draft my father’s estate plan. The attorney took the traditional approach of getting legal documents executed, but with very little counseling or follow-up. The result? A family left in the dark. We did not know my father’s wishes or preferences regarding his health care or what should be done if he became unable to care for himself. Unfortunately, many people mistakenly believe they checked the “disability planning” box because they executed an advance medical directive (AMD). For context, an AMD is a legal document designating an agent to make health care decisions on your behalf if you are unable to...

11 November

0 Comments

Sticky

Must-Know Info on How Charitable Deductions Work

Posted by Bobby Feisee

in Bobby's Blog

You need to itemize in order to claim your charitable deduction The latest tax act raised the standard deduction single filers to $12,200 and joint filers to $24,400. It appears the big increase in standard deduction has had a negative impact on the percentage of taxpayers who make charitable contributions because you are unable to deduct the contributions if you decide to go with the standard deduction rather than opting for itemization. Determining whether to itemize or not depends on your specific situation so you will need to consult an experienced and knowledgeable tax advisor. As a general rule, the interest on your mortgage is a factor in determining whether you should itemize as this is a write-off that you can take advantage of only if you itemize. The new tax law also limited the interest deduction to loans up to $750,000 for homes purchased after December 15, 2017. If you...

12 October

0 Comments

Sticky

Income Tax-Free States May Be Worth Considering for Residency in Retirement

Posted by Bobby Feisee

in Bobby's Blog, News

There are a number of states – such as Florida, Nevada and Texas - that do not tax income that have received an increasing amount of interest after the new federal tax law passed in 2018 capped state and local tax (SALT) deductions at $10,000. There are currently nine states that do not tax the income of residents. States with No Income Tax Below is an overview of the states with no income tax, according to Fox Business. Alaska In addition to not having an income tax, Alaska has no sales and use tax, generally. Though, local jurisdictions have the right to levy sales and use taxes. According to a study by WalletHub, Alaska has the lowest tax burden of any of the 50 states – at a cumulative 5.1 percent. The average property tax burden is 3.66 percent Florida In addition to no income tax, the effective real estate property tax rate in Florida is 0.98 percent,...

15 June

0 Comments

Sticky

Death and Credit – Important Info You Need to Know

Posted by Bobby Feisee

in Bobby's Blog

When a family member passes away, there are certain steps that should be taken to alert the passing to the major credit reporting agencies and to assess whether a freeze, or lifting a freeze, on their credit is needed. Swift action is important when it comes to a decedent’s credit. Why? Because if the major credit reporting agencies, along with the financial institutions where your deceased family member had open checking accounts, saving accounts, retirement accounts, etc. are not timely notified, your loved one’s accounts would remain open and could heighten the risk of identity theft and other issues. Suffice it to say, when someone passes on, their credit reports aren’t closed automatically. There needs to be action taken by a personal representative to ensure the accounts are closed properly. What Happens When Credit Reporting Agencies are Notified of a Death Credit reporting agencies are notified when someone passes on in one of...

17 May

0 Comments

Sticky

Time to Re-Brand “Do Not Resuscitate”

Posted by Bobby Feisee

in Bobby's Blog, News

Stories of hospitals being subjected to civil litigation for failing to intervene or, alternately, for wrongfully intervening to resuscitate a patient using advanced life support are quite common. These unfortunate incidents typically have at their core three central figures: A dying patient; The dying patient’s family; and A healthcare professional who misunderstands the meaning of the term: “do not resuscitate.” What Does “Do Not Resuscitate” Actually Mean? The term “Do Not Resuscitate” (also referred to by its acronym DNR) means that a patient should not receive cardiopulmonary resuscitation (CPR) in the event of cardiopulmonary arrest. This is a situation where the patient is unresponsive, has no pulse and is not breathing (i.e. they have died). Vague Terms Creates Confusion Unfortunately, a wide array of healthcare providers and patients misinterpret a DNR order to mean that no life support should be given when there is evidence of clinical deterioration. Basically, this is a fancy medical...

12 April

0 Comments

Sticky

Pros and Cons of a Revocable Transfer on Death Deed for California Residents

Posted by Bobby Feisee

in Bobby's Blog

The California legislature enacted a law in 2016 that offered residents an alternative to keep their homes out of the costly and inefficient probate process. This alternative is known as a “revocable transfer on death deed.” This type of deed is sometimes referred to as the “poor man’s trust.” Why? Because it is a less costly way to transfer real property to a named beneficiary without having to create a full-fledged trust. Limitations to a Revocable Transfer on Death Deed There are some limitations associated with transferring real property through this type of deed. For example, the only forms of real property that qualify for a transfer through this deed are (i) a single-family home or condo unit, (ii) a single-family residence that sits on agricultural property of 40 acres or less, or (iii) the residence has no more than four residential dwelling units. Advantages of a Transfer on Death Deed There are many advantages associated...

11 April

0 Comments

Sticky

Dying with Debt – Who Is on the Hook to Pay It Back?

Posted by Bobby Feisee

in Bobby's Blog

Debt is something many American grapple with. In fact, the average U.S. household with credit card debt carries close to $7,000 in revolving balances, or balances carried from one month to the next, according to NerdWallet. Given the prevalence of debt in our society, an important question needs to be answered: "If you die with an outstanding debt (whether it be a credit card, personal loan, student loan, mortgage, etc.) who or what will be responsible for paying it back?” The laws pertaining to debt after death vary by state so there isn't a single answer to this question. Nevertheless, in general, people do not inherit a loved one’s debt. For example, a son or daughter would not be responsible for the debt of a parent, unless they cosigned a loan. An exception to this general principle is in states that have “filial responsibility” laws related to children of aging seniors. Can I Just...

11 January

0 Comments

Sticky

Natural Burial – Is it Right for You?

Posted by Bobby Feisee

in Bobby's Blog

As we learn more about the environmental impact of metal caskets and traditional forms of burial, many people are opting for “green” or “natural” burials. These are burials where no chemicals are used at any stage of the burial. This means no embalming fluid is placed in your body, no vault, and no metal casket. Some natural burial services place a body into the ground wrapped in a shroud or placed inside a non-treated and biodegradable coffin. Are Traditional Burials Harming the Environment? The growing popularity of natural burials has been associated with the growing body of evidence highlighting the potential environmental impact associated with a traditional burial where a body is embalmed and placed into a metal casket. Embalming involves filling a body with formaldehyde, phenol, methanol, and glycerin. Formaldehyde is a potential human carcinogen, and can be lethal if a person is exposed to high concentrations, according to Business Insider. In...

22 October

0 Comments

Sticky

Profits Interest – Info You Need to Know

Posted by Bobby Feisee

in Bobby's Blog

You’ve probably heard of “stock options” that enable an individual to buy into a company at a future time. However, if you work for a limited liability company (LLC), you also have the option of utilizing a unique form of equity compensation known as “profits interest” which represents an actual current ownership interest in the LLC. Tax Free Equity Compensation A profits interest, when structured to be in compliance with relevant IRS “safe harbors,” is effectively tax free for the recipient, according to a great article published by Hutchison PLLC. This is because a profits interest basically represents an ownership interest in the future growth of the company but not an interest in the current value of the company. Example of How a Profits Interest Works Let’s say an LLC has three owners. Each owns one third of the company. Then, the company grants a 10 percent profits interest to an employee at a time...