In this episode of Tax Boss, we discuss gift tax and how to help your clients make friends by giving their wealth away.

Resources

Marilyn Monroe estate plan

IRS Gift Tax FAQs

Timestamps

1:17 Gift reporting and gift tax rules; when drafting a will to leave everything to one person with instructions to divide it further

2:30 The burden of gift reporting requirements

3:10 Gifts in excess of $15,000 in any calendar year need to reported to the IRS (married couples may gift up to $30,000 in a calendar year between the two of them)

3:30 Exceptions

4:20 Gifts and lifetime exclusion

4:39 Back to burdening one individual with reporting, and why her ‘actual’ gift would be less than what counts toward her lifetime exemption amount

6:10 Explaining why a Personal Representative solution is much better

6:42 What if your friend doesn’t gift out your estate the way you plan? What if she is in the middle of a divorce? Or is being sued?

7:17 Marilyn Monroe’s estate planning fail – why a woman she never met inherited everything

8:17 Leaving assets to one person in the hope they’ll gift to another person is a very, very bad idea

 

 

 

In this episode of Tax Boss, we discuss solvency certificates and why attorneys request them.

Resources

Solvency explained

Timestamps

1:17 What is a Solvency Certificate? Why is a solvency certificate used?

3:04 Evidence of use of asset protection structures as estate planning measures and not measures against avoiding creditors

3:40 Risks of co-signing on student loans

 

In this episode of Tax Boss, we discuss titling and homestead, tenancy in common, and how state law can change the outcome of your estate plan if you’re not paying attention!

Resources

Florida Statute 732.7025 to waive spousal homestead rights

Timestamps

1:17 What happens when you have jointly owned property, and you don’t want the co-owner to inherit it? Florida’s homestead laws

2:36 Colorado homestead laws and value of total estate (Family Allowance and Exempt Property Allowance)

4:00 Options in handling a jointly held homestead

6:30 Differences between tenancy in common, tenancy by the entirety (TBE), and joint tenancy with rights of survivorship (JTROS)

9:15 In JROTS properties, either party can sever the JROTS and bring it to Tenants in Common; both members in Tenants by the Entirety would have to agree

10:30 Approaching personal estate planning assets in four quadrants: 1. Joint tenancy by entirety or rights of survivorship; 2. Anything that has a beneficiary designation form; 3. Anything owned by them individually that would be a probate asset; and 4. Trust asset (if they have a trust.)

13:15 Does your attorney understand Florida Statute 732.7025 or will they create an invalid deed?

In this episode of Tax Boss we discuss portability and estate planning, transfer taxes between married couples, prenups and generation-skipping transfer tax.

Resources

IRS form 706 (Revised November 2018)

Timestamps

1:43 Portability and transfer taxes between married couples (11.2 million dollars exemption currently, 22.4 together)

2:43 “I love you” Wills

3:50 how portability works and filing an estate tax return form 706

5:12 capturing the portable amount before Congress changes their mind

6:20 what about getting re-married? How would the IRS handle the prenup?

8:07 the generation skipping transfer tax is not portable

 

 

 

If you feel a little overwhelmed by the number of advance directives to consider and how they’re similar and dissimilar, this episode of Tax Boss will help! We discuss DNR orders, physicians orders for life-saving treatment, healthcare surrogates, living wills, and the difference between all of them. We also discuss why you may want to consider naming different people in each case.

Resources

Advance Care Directives

Timestamps

1:48 DNR – what it is and what it isn’t

4:36 What is included in a Healthcare Surrogate document?

7:09 Having conversations with the people you’ve named – what you’d like them to know that they may not know

8:00 The Living Will document and choosing who you’d want to have your back

10:30 The Terry Schiavo case and definition of artificial life support

12:14 Three different paths of the Living Will in Florida

12:53 The P.O.L.S.T or Physicians Orders for Life Sustaining Treatment

18:25 Medicare and skilled nursing facilities

19:40 Dealing with statements like, “You must not love your father if you won’t let me treat him.”

 

Weddings and funerals are two of the most stressful occasions we may encounter and they both require that you throw a party, too. Krystal and Merrell discuss information necessary to complete funeral home paperwork and why decisions made ahead of time really pay off, in many ways.

Resources

Estate Planning and Funeral Arrangement Resources from Your Caring Law Firm

Timestamps

2:10 Three questions asked by a mortuary for a death certificate

3:10 Naming an independent fiduciary to handle the passing of a loved one

5:30 Disposition of Human Remains document

8:00 Consider pre-paying if you think there will be a disagreement

9:45 Pre-planning pays off in a time of shock and sorry

 

In this episode of Tax Boss, we discuss the age-old question, “Who Is My Client,” and when a bunch of people show up, how do you know who to throw out of the room?

Merrell and Krystal discuss different ethical standards between attorneys and CPAS, red flags, and why family members – and even financial advisors and CPAs – are asked to leave the room during estate planning with clients. You’ll also find tips for attorneys and advisors dealing with well-meaning but difficult family members.

Resources

Why am I left in the waiting room?

Lawyers and CPAs: How the Landscape is Changing

Timestamps

1:30 When a non-client makes the appointment

2:54 Asking “Who is my Client” when kids think they all are the client

10:16 Death and a little bit of money can bring out the worst in people

11:09 Ethics, why we can’t reach out to your clients, and different ethical standards between CPAs and attorneys

12:33 When your client wants certain family members included…their decision or undue influence?

15:51 Why we request that the advisor leave the room, or how to give yours a heads up