Rebecca W. Geyer & Associates P.C.FindLaw IM Template2024-03-13T11:00:46Zhttps://www.rgeyerlaw.com/feed/atom/WordPress/wp-content/uploads/sites/1100815/2019/03/OG-75x75.jpgby Rebecca Geyerhttps://www.rgeyerlaw.com/?p=552762024-03-06T20:01:04Z2024-03-13T11:00:46ZIn addition to our estate planning and elder law services, at Rebecca W. Geyer & Associates, we assist with business planning and formation...There's news, and, if you're in business, you need to know about the new reporting requirements of the Corporate Transparency Act in order to avoid facing stiff government penalties.Background
The CTA, or Corporate Transparency Act, is hardly brand-new. First proposed back in 2012, there were attempts to put the law into force in 2015 and again in.2019. In December 2020, the CTA became law as part of the National Defense Authorization Act for fiscal year 2021. From that point, after a public commentary period, the final rule was released November 20, 2023, putting CTA into effect on January 1st, 2024.Purpose:
The underlying concept of the law is the prevention of:
terrorist financing of U.S. businesses
money-laundering
Illegal business activities
Deadlines for submission of Beneficial Owner Information Reports (BOIRs):
Companies registered before the effective date have until Jan. 1, 2025 to submit a BOIR.
Companies established in 2024 will have up to 90 days to file a BOIR.
Companies formed after January 1, 2025 will have 30 days to file an initial BOIR.
Entities generally exempt from filing:
Large Operating Companies with more than 20 full-time employees and who filed a Federal income tax return for more than $5,000,000 in the U.S. for the previous year.
Pooled investment vehicles (operated by banks, credit unions, and investment advisors.
Keep checking: Even if you fall under the exemptions, It's important to monitor for changes.Failing to submit the information or for submitting false information will result in very onerous financial penalties and violators might even face imprisonment.The need for such regulation may be a sad commentary on the state of our world (an observation expressed by several of our Geyer Law business clients), but in order to protect legitimate business owners against terrorist and criminal acts, it's important that we verify who owns and controls United States business entities.- by Rebecca W. Geyer]]>by Cara Chittendenhttps://www.rgeyerlaw.com/?p=552702024-03-06T19:47:33Z2024-03-06T19:46:35Z
"When you name a charity as a beneficiary to receive your IRA or other retirement assets upon your death, rather than donating retirement assets during your lifetime, the benefits multiply: Neither you,your heirs or your estate will pay income taxes on the distribution of the assets," Fidelity explains..
In a recent article in Forbes, "Old Roth, New Tricks", William Baldwin carries that thought one step further. In discussing Roth conversions, the author suggests: "Leave some money in your IRA without converting it to a Roth. That will be devoted to covering nursing care or other medical care. The ultimate beneficiary can be a charity, so it doesn't generate taxes after death. But, if you need it for medical expenses, medical deductions will offset at least some of the tax."
As estate planning attorneys, here at Geyer Law, we've always stressed the importance of carefully naming beneficiaries on IRA accounts. Not only does an IRA beneficiary designation form actually override the directives in a will, the tax laws surrounding inherited IRAs are complex, not to mention subject to periodic changes.
"For seniors with significant healthcare expenses, this can offer tax savings. You are allowed to deduct any medical expenses that exceed 7.5% of your adjusted gross income," Paying for Senior Care explains.
Do you have a big wad in a pretax IRA? Baldwin asks. "Sit down with your accountant,"' he advises. Although our estate planning attorneys at Geyer Law do not offer tax advice, instead working in concert with our clients’ tax professionals, reviewing your IRA beneficiary designations and charitable planning are essential parts of every estate planning discussion. - by Cara Chittenden of Rebecca W. Geyer & Associates]]>On Behalf of Rebecca W. Geyer & Associates P.C.https://www.rgeyerlaw.com/?p=552672024-02-29T22:22:52Z2024-02-29T22:22:52ZThere are many Indiana residents who are hesitant when it comes to discussing mortality. Some are afraid to die. Others would rather not think about the inevitability of death. However, neither fear nor avoidance can keep death at bay; it is a certainty in life. For this reason, it’s always best to make sure your affairs include making things easier for your loved ones when the time comes. The estate planning process can help.There are many advantages to estate planning, including the fact that it’s a customizable and (in many cases) changeable action. You may incorporate or omit whichever legal documents you like and may change and update your plan as needed, except for certain documents that are permanent, such as an irrevocable trust. If you’re ready to learn more and start planning your estate, there are several tasks that should be at the top of your list of priorities.
Which estate planning documents do you need?
The documents you include in your estate plan might be different from another person’s plan. For instance, if you own a business, you might wish to incorporate a business succession plan as part of your estate. It’s helpful to review the basics, such as a last will and testament, revocable and irrevocable trusts, special needs trust, powers of attorney, advance directive, guardianship and more. Determine what you want to include in your initial estate plan. You can always remove or add a document in the future. Once you have a good idea of which documents you need, you can move on to asset inventory.
Take an inventory of everything you own
This can be a lengthy process, especially if you own a lot of things. It’s easiest to list the largest (or most valuable) assets first, such as your home, vehicles, vacation property, artwork, etc. Next, move on to other smaller items, such as work tools, furniture, jewelry, a book collection and more. If you wish to leave a specific item to a particular person, make note of it on your list.
Don’t forget to list non-physical assets and debts
You might have non-physical assets to include in your estate plan. Such assets might be stocks and bonds, IRAs or a retirement plan. In addition to assets, your estate planning process will be more thorough if you also create a list of your liabilities. Granted, you might resolve some of them before you die, in which case, you can simply amend your list. However, it will be helpful to your family if you create a document that includes all debts, such as car loans, home mortgage or home equity lines of credit, as well as unpaid credit card balances and other types of debt. Next to each debt, write necessary information, such as account numbers or notes regarding where to find copies of loan agreements.
Choose beneficiaries, guardians, executors, etc.
When you draft a last will and testament, you’ll no doubt want to designate certain duties to specific people. Think ahead to choose beneficiaries, guardians, executors and more. Someone experienced in estate planning can review your needs and goals and recommend which documents will help you create a solid estate plan.]]>by Rebecca W. Geyer & Associates P.C.https://www.rgeyerlaw.com/?p=552302024-02-20T17:30:27Z2024-02-28T12:00:13ZOur work at Geyer Law, as we guide Indiana families through the estate planning process, is always "two-faced", constantly considering both the "now" and the "later" aspects of each part of a family's plan.
One valuable, 3-stage tool clients can use to address both present and future needs is the Charitable Remainder Unitrust
In Stage One, a donor transfers property or cash into an irrevocable trust.
In Stage Two, the trust pays income to one or more beneficiaries (either for a specific term or for the life of those beneficiaries).
At the end of that payment stage, in Stage Three, the remainder of the assets in the trust are given to one or more charitable organizations.
How does a Charitable Remainder Unitrust help with the "now"? There are several benefits:
When you transfer an appreciated asset to the trust, you can qualify for an immediate charitable income tax deduction.
When the property is sold inside the trust - to convert it to an income-producing asset - you pay no capital gains tax.
It now becomes possible to generate current income (to yourself or to beneficiaries).
With the assets held in an irrevocable trust, they are protected from the beneficiaries' creditors in certain circumstances.
The assets held in the trust grow tax-free.
How does a Charitable Remainder Unitrust help with the "later" in your estate plan? At the end of your life you will have the satisfaction of knowing that:
…after your death, there will be no estate tax on the assets in the trust, no court decision, no "settling" or debate needed - the trust assets have been assigned to precisely where you chose for them to be.
…the assets you assigned to the CRUT are benefiting precisely the charitable organizations whom you chose to help.
…the "remainder" of the capital in the trust will be helping to support organizations you have trusted and causes in which you have believed.
In estate planning, we like to remind our Geyer Law clients, before they begin to choose recipients of assets they’ve been fortunate enough – and smart enough – to accumulate, it makes sense to put themselves first, considering their own needs for the rest of their lives. "Only then," we caution, "will it be time to consider a wealth transfer plan to incorporate philanthropic causes that have been important to them and their loved ones."
For many, Charitable Remainder Unitrusts are one way of dealing with both the now and the later on.
- by Rebecca W. Geyer
]]>by risraelovhttps://www.rgeyerlaw.com/?p=552262024-02-20T17:18:54Z2024-02-21T12:00:15Z"When my dad died, he left a college fund for the grandkids," Jay Gendron recalls. "But one thing wasn't in his estate: "I didn't have my father's story - in his own words - to cherish as my inheritance…"
At Geyer Law, we see life as a journey that starts and ends with family. Although some estate plans can be simple, family relationships are complex and emotionally laden. Financially, the documents we help create may direct how clients' assets will be preserved, managed, and distributed after death. From a medical perspective, advance directives set forth instructions about their health care wishes if they become incapable of deciding, or even describing, how they wish their bodies to be cared for during illness and after they have died.
But there's a third element to every legacy as important as those arrangements for dispensing monetary assets and outlining funeral arrangements. That often forgotten element, Gendron reminds us, is your "story.” What do you know? What lessons have you culled from your own unique struggles and triumphs? Your memoir is a "slice" of your life based on your unique experiences, not a lengthy autobiography. That "slice" is a precious gift you can offer those who live on as an enduring message after your departure.
As is true of all aspects of estate planning, it's important not to put off creating that memoir. In every life, there may come a time when a disabling injury or illness takes away the ability to manage assets or make medical choices. There may also come a time when we are no longer of the "sound mind" needed to tell our very special "story."
As part of estate planning, consider offering your heirs the precious and enduring legacy of a "slice of your life."Jay Gendron is the CEO and Founder of SpeakStory Memoirs (jay@speakstorymemoirs.com). A ghostwriter specializing in the captivating art of memoir, Gendron makes his home in Gulfport, Florida.
- by Ronnie of the Rebecca W. Geyer & Associates blog team
]]>by risraelovhttps://www.rgeyerlaw.com/?p=552232024-02-06T14:58:47Z2024-02-14T12:00:10Z"Healthcare costs in the United States can be exorbitant," Freedom Path Financial wryly notes.It takes only one serious illness or medical emergency to significantly impact not only your own financial security, but ultimately your ability to pass on any kind of financial legacy to loved ones. As noted in an earlier Geyer Law blog post, "Even those with health insurance and those with higher incomes are not immune to the high costs of medical care."
At Geyer Law, where we stress the importance of not only making your healthcare wishes known through an Advance Directive for Healthcare Decisions document, but also of coordinating any plans to leave assets to heirs with contingency funding for your own present and future healthcare needs.
One planning tool highlighted in a recent issue of the Indianapolis Business Journalis the Health Savings Account. While HSAs are funded via payroll deductions (sometimes with matching contributions from the employer) during your working years, funds not withdrawn may be used to pay health expenses after retirement. The main advantage HSAs have as a mode of planning for healthcare needs in retirement is that they are "triple tax-advantaged". Whereas funds withdrawn from both IRA and 40lk accounts post-retirement are subject to taxation, there is no income tax on withdrawals from Health Savings Accounts when used to pay qualified expenses, which include, not only hospital fees, but physical therapy, and even dental and eye care costs.
Medical bills can be expensive, and some conditions require ongoing care, and, at Geyer Law, we help clients who may be unable to afford their medical bills without assistance secure Medicaid benefits. But for those who have assets to protect and who wish to leave wealth to the next generation, one not-to-be overlooked aspect of planning is the Health Savings Plan.
- by Ronnie of the Rebecca W. Geyer & Associates blog team
]]>by rebeccageyerhttps://www.rgeyerlaw.com/?p=552192024-02-06T14:26:30Z2024-02-07T12:00:26ZPutting an adult child's name on the deed to your home may seem like a good idea. You’re a widower, you have only one heir, and your home represents your one most valuable asset. If the delays and costs of probate can be avoided, that will make settling your modest estate an easy process, you reason, making changing the deed is a good idea…..
Speaking of reasoning, there are a number of reasons transferring ownership of a home to an adult child (or even adding that child's name to the deed of your home) may not be such a savvy estate planning move:
Any gift that exceeds a certain value ($18,000 per recipient in 2024) must be reported to the IRS on a gift tax return.
If your child were to face financial challenges in the future, his/her creditors could lay claim to your property.
Any future decision you might want to make concerning the home, including selling it, would no longer be yours to make.
If you need Medicaid coverage to pay for long-term care costs and you transferred your home in the five years prior to applying for Medicaid, you may not be eligible for benefits because you added your child to the deed.
If your child has college-age children, their eligibility for financial aid could be affected by the increase in their parent's net worth represented by their ownership of your home.
Difficult to imagine? It happens - adult children who've been given control decide to sell the home and pocket the proceeds, forcing their parents to move.
Significantly, your child could be exposed to a large capital gains tax bill when, at some point after your death, he decides to sell the home. Here's why:
When your child's name is put on the deed to your home while you are still alive, the child inherits your original cost basis. If the child later sells the property, capital gains tax would be due on the difference between that cost basis and the sale proceeds. In contrast, if your child inherits your property upon your passing, according to current law, the cost basis is "stepped up" to the property's value as of your date of death.
While avoiding probate (the court process of settling an estate) can be worthwhile in terms of saving time, money, and delay, you do not need to transfer ownership now. As an Indiana resident, you can create a trust or even use a transfer-on-death deed to transfer ownership of assets to your son after your death.
Transferring ownership of your home to an adult child while you are still alive is very much a not-now estate planning move.
- by Kristina Shover, Associate Attorney at Rebecca W. Geyer & Associates]]>by Rebecca W. Geyer & Associates P.C.https://www.rgeyerlaw.com/?p=551322024-01-22T19:38:06Z2024-01-31T12:00:07Z
"With interest rates rising on credit card interest and mortgage rates, more people are borrowing from their parents or grandparents, Kelly Phillips observes in the December '23 special issue issue of Forbes.
Older relatives can use their annual gift tax exclusion ($18,000 per recipient in 2024, $36,000 if a couple makes a split gift) to offer outright help to younger family members, the author notes.. Beyond that, family loans can be made, so long as the loans are documented with signed promissory notes and so long as interest is charged on the loan at the current AFR (applicable federal rate).
At Geyer Law, while our attorneys discuss intra-family lending as an important estate planning option, particularly for high net worth clients, we are quick to point out that there are important questions and "loose ends" that clients must consider as part of the planning.
If a loan remains outstanding at the time the lender dies, it will be considered an asset, adding to the value of the taxable estate.
If your intention is to forgive the loan upon death, do you want to make bequests to other children to equalize the inheritances?
Advanced planning techniques, include placing assets in IDGTs (intentionally defective grantor trusts) can be considered.
When business owners decide to gift shares of their company to children or grandchildren, they may be envisioning having those beneficiaries actually come into the company to help run it. Sometimes, though, the motivation for making gifts may have less to do with “succession planning” so much as a way to help with an adult child or grandchild’s current financial needs by shifting dividend income to them (plus a share of the proceeds in any future sale of the business), while taking advantage of tax savings for the business owner.
"Like many other parents, my wife and I have helped our children financially. But, if we give serious amounts of money to the children, why not the grandchildren? If the Bank of Mum and Dad, why not the Bank of Grandma and Grandad?", Brit Stefan Wagstyl confided in s 2021 Financial Times article.
As our attorneys at Geyer Law work with clients’ tax advisors, realtors, and financial planners to help Grandma and Grandpa accomplish their "bank founding" goals, there is one piece of advice mentioned in Financial Times with which we heartily agree: Grandparents wanting to help their grandkids should discuss those plans with the children to avoid the risk of disputes.
- by Rebecca W. Geyer]]>by risraelovhttps://www.rgeyerlaw.com/?p=551272024-01-17T22:44:43Z2024-01-24T12:00:36Z
At Geyer Law, we know – healthcare is, and will continue to be a crucial topic in any estate planning discussion. As part of the process, we help our clients complete their Advance Directive for Health Care Decisions documents, in which they:
appoint a health care representative
state their wishes concerning end-of-life treatment
state their wishes for post death handling of their remains
Because healthcare planning is about so much more than formalizing these healthcare choices, at our estate planning law firm we also talk about the realities and opportunities for retirement living through all stages of the aging process. Even the most careful choice of representatives or of facilities does not solve the problem of escalating health care costs, and, in many instances we offer guidance in helping a loved one qualify for Medicaid benefits.
When it comes to health insurance during retirement, each calendar year, there is a Medicare Annual Enrollment period from October 15-December 15, during which anyone who has Medicare can make changes for the upcoming year. This year, though, a new Medicare Advantage Open Enrollment period (MA-OEP) is open from January 1 through March 31, 2024 for individuals on Medicare Advantage Plans only, not to individuals who are on traditional Medicare supplements and a stand-alone Medicare Part D plan.
Interviewed by our blog team, Jay Cox, Certified Retirement Financial Advisor* broke down the options available between January 1 and March 31 of 2024 (again, these apply only if you're already in a Medicare Advantage Plan):
switch to another Medicare Advantage Plan with better coverage
drop your Medicare Advantage Plan and go back to original Medicare and add a supplement, if desired
switch from one Medicare drug plan to another
While more than half the nation's seniors continue to be insured through Medicare Advantage, Cox points out, the new Open Enrollment Period is being offered to help those who signed up in the fall of 2023 but, who are just now receiving their plan documents, feel the coverage is different from what they had understood.
At Geyer Law, we want to make sure our clients and blog readers are aware of the opportunity to make important health coverage decisions.
* Independent agent Jay Cox may be reached at https://personal benefitsservice.com or (317) 559-2140.
- by Ronnie of the Rebecca W. Geyer & Associates blog team]]>by risraelovhttps://www.rgeyerlaw.com/?p=551122024-01-08T19:27:15Z2024-01-17T12:00:48Z"I am passionate about caring for individuals and their families, helping them protect the assets they've worked hard to earn and helping them pass on a legacy they are proud of,"Kristina Shover explains. As important, she adds, is helping clients protect their assets while they are still living, guiding them in selecting individuals to assist them with financial and healthcare decisions during life.
As a graduate student in law school, Shover worked as legal assistant at several prominent law firms. While continuing to work full time by day, she pursued her law degree through night courses at the Indiana University Robert H. McKinney School of Law. Her work at litigation-focused law firms serving corporate clients had her originally contemplating a career in civil litigation and potentially criminal law. Ultimately, Kristina found, there would be greater satisfaction in serving individuals and families through estate planning and administration and elder law.
Often, Shover finds, when new clients come in seeking advice, "what they think they need turns out to be a bit different from the recommendation we may offer once their situation and types of assets they own are clarified." With some of the financial protections offered during the pandemic now going away, planning becomes even more important.
Kristina's husband, Cory Shover, meanwhile is a manager of an Alter Domus financial reconciliation team. Together, they have their hands full with highly precocious, 21-month-old twin sons.
.
As she launches her career helping families through estate planning and elder law, Rebecca W. Geyer & Associates is certainly proud to welcome its newest associate, Kristina Shover.
- by Ronnie of the Rebecca W. Geyer blog team]]>