Archive for August, 2009
8/28/09 QUOTE – “Courage is very important. Like a muscle, it is strengthened by use.” – Ruth Gordon
by P. Lewis Robinson
8/26/09 QUOTE – “Memories make us who we are. Dreams make us who we will become.”
by P. Lewis Robinson8/24/09 – Monthly Payment Plan With the IRS
by P. Lewis RobinsonGuaranteed Installment Agreements
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Balance Due = $10,000 or less
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You haven’t filed late or paid late in the past 5 years
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All tax returns have been filed
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Repayment period is less than 36 months
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You’ve had no other installment agreement in the past 5 years
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You agree to file on time and pay on time in the future
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Balance Due = $25,000 or less
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Repayment period is less than 60 months
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Payments are based on what you can afford after considering essential living expenses
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May cover a longer repayment period
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Additional paperwork is required
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Balance Due = $25,000 or more
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You need longer than 5 years to pay the balance
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You do not meet the requirements for the Streamlined or Guaranteed payment plans
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Additional paperwork is required
8/24/09 QUOTE – “Just remember…people are like sticks of dynamite; the power’s on the inside, but nothing happens until the fuse gets lit.” -Mac Anderson
by P. Lewis Robinson8/21/09 QUOTE – “To change one’s life: Start immediately. Do it flamboyantly. No exceptions.” – William James
by P. Lewis Robinson8/17/09 -Reviewing Your Will
by P. Lewis RobinsonIf you are married and the combined value of you and your spouses’ estate is LESS than $4,000,000.00, I recommend you review your will. You should determine how your assets will be distributed at the death of the first spouse. With all of the constant changes in tax laws, you may even need to review your estate plans on a yearly basis (to find out if you need to review this year, please contact us).
Most of the wills prepared in the last several years for our clients were structured using a Credit Shelter Trust. You may not realize that your will was prepared with this trust so it is important to check your will. With the current Federal Estate Tax Exemption of $3,500,000.00 for each taxpayer, the surviving spouse may not like the results of their current wills.
Some disadvantages to Credit Shelter Trusts are as follows:
1. Surviving spouse’s access to the Credit Shelter Trust Assets must be restricted.2. The deceased spouse can give the surviving spouse access to all, a portion, or none of the income from the Credit Shelter Trust.
3. If access to principal is allowed, it must be limited to health, education, maintenance, or support only. Health, education, maintenance, and support, or “HEMS”, are four magic words used by the IRS, and there’s some guidance about what they mean, but the surviving spouse will have to be careful when withdrawing principal to make sure the money’s use will fall within these parameters.
4. It adds complexity to the surviving spouse’s life. If the surviving spouse is trustee, he or she will have to maintain separate records for the trust, and ensure that he or she does not overstep the trustee’s powers.
5. If a neutral trustee is used, the surviving spouse will have to cooperate with the trustee. Further, a neutral trustte will likely charge a commission.6. A tax return will have to be filed.
Your CPA can help you review how your assets will be distributed at the death of the first spouse. Call for an appointment to have your will reviewed or with any questions about how to determine the value of your estate.
8/17/09 QUOTE – “Optimism is the faith that leads to achievement. Nothing can be done without hope.” -Helen Keller
by P. Lewis Robinson8/12/09 QUOTE – “Be certain your feet are planted in the right place before you decide to stand firm.” -Mildred Keating
by P. Lewis Robinson8/10/09 – QUOTE
by P. Lewis RobinsonSomeone once asked Norman Vincent Peale, "Don't you think life would be better if we had fewer problems?" Peale said, "I'll be happy to take you to Woodlawn Cemetery, because the only people I know who don't have any problems are dead." The point is we can't avoid problems, so we might as well expect them and embrace them as opportunities to learn and grow.
8/10/09 – Usernames and Passwords: Potential Problems?
by P. Lewis RobinsonWhile it is smart to keep this information secure, it can be very frustrating for your family when you pass away. Therefore, it is important to record all of this information and store it in a safe place. You may want to give it to a trusted friend, relative or lawyer. Keep in mind the authority that you are giving them – you must be able to count on them to keep the information secure. Other options include storing the information in a fireproof personal safe, safety deposit box, or an online database such as Legacy Locker. Regardless of where you choose to store this information, it is important to leave specific instructions in your will. Taking the time to do this will save your heirs from this potential nightmare during a time of grief.
