Skylar Dubrow Offers Practical Tips For Your Estate Plan
June 8, 2015
Skylar Dubrow, CPA
Blog
June 8, 2015Skylar Dubrow, CPABlog
First off (and this doesn’t necessarily affect all of our clients), just a quick reminder thatthe second quarter estimated taxes are due on June 15th. This is the quarter that always sneaks up on everyone, as it’s only two months after April 15th — so don’t get behind!
Secondly, the summer is a perfect time to assess your financial picture from a holistic perspective. And by that, I mean: let’s look at your big-picture goals and your strategies, and create a workable plan, shall we?
In subsequent weeks, I’ll give you some “back of the napkin” strategies for a tax planning strategy, but I want to remind you of another component to a well-established financial plan today — one that doesn’t usually get handled well (as you will see).
Because the numbers haven’t changed much since last I saw them:
Over 50% of adults do NOT have a will or other estate planning instruments in place to protect themselves and their family. And, perhaps even worse, over 69% of parents have not yet named legal guardians who can raise their children if something happens to them. (And by “in place”, I mean something that would be legally recognized — not an “idea” that hasn’t been properly notated).
Those are scary numbers. Estate plans obviously provide great peace-of-mind for a family … and, of course, they can create a bunch of headaches if not handled correctly.
Believe me, I’ve seen a few doozies in my day.
Which is why it always helps to have someone in your corner. Whether or not we speak into your situation directly, we can also bring in specialized counsel. We aim to be your family’s advisors in all things financial, whether we have “skin in the game”(i.e. we get paid for it) or not. Our clients are our family, and we want to see you treated well by those who serve you.
So … all that said, consider this:
Skylar Dubrow Offers Practical Tips For Your Estate Plan
“The noblest search is the search for excellence.” – Lyndon Johnson
You may have established an estate plan in the past, or you may not have gotten around to it, but it is critical that you ALWAYS have an up-to-date plan.
Most people are smart enough to keep their cars in good working order–it requires tune-ups, an annual physical check-up, etc. But I’m always surprised by the common misconception about how often they should have their estate plan reviewed.
You see, most people see estate planning as something you “do once” and never have to think about again. That’s just flat incorrect.
Just like your health can take a dramatic turn (for the better or worse) in a year, your estate planning decisions can change dramatically in a short period. Sometimes, something as simple happens as the people you’ve identified to serve as the guardians for your minor children moving out of state. That’s just one of many good reasons to revisit your estate planning decisions.
Plus, though there’s been a lot of talk in recent years about the higher estate tax threshold, there are many ways in which out-of-date plans can be “burned”, by not complying with new laws.
Your estate plan is a “living and breathing” plan (at least when done right) and therefore has to be maintained to reflect your life as it is today.
Second, PLEASE ensure you have chosen the proper executor.
Whether you’re dealing with significant sums, or with a more modest estate, choosing the person to handle these transaction is a critical decision for EVERY family.
It’s always a great idea to get professional advice in making these selections. But, if you choose to “go it alone” for some reason, here’s what you need to keep in mind as you consider who will be your executor:
An executor must:
* Obtain certified copies of your death certificate
* Locate Will beneficiaries
* Examine and inventory your safe deposit boxes
* Collect your mail
* Cancel credit cards and subscriptions
* Notify the SSA and other benefit plan administrators of your death
* Learn about your property, which may involve examining bank statements, deeds, insurance policies, tax returns and other records
* Get bank accounts covered by the Will released
* Place notices in newspapers so creditors can make claims
* Hire a probate attorney
Either the executor or the probate attorney must:
* File court papers to start the probate process and obtain legal authority to act as your executor
* Manage your assets during the probate process, which usually takes six months to a year
* Handle court-supervised probate matters, including transfer of property to your beneficiaries and making sure your final debts and taxes are paid
* Have final income tax forms prepared, and, if necessary, have estate tax returns for your estate prepared and filed
Of course, the open probate process is something you will absolutely want to minimize and even avoid. A sound plan does this.
But this right here (the choice of executor), is where it starts. In the future, I’ll have more to say on the subject of an executor and why that choice is so important.
I am, warmly, yours,
Skylar Dubrow CPA
(818) 889-7285
The Dubrow Group, CPA’s
Preparing a correct and accurate tax return is our priority. We proudly stand behind our work and if a mistake does happen that is our fault, we will immediate correct the mistake and gladly refund your money if requested.
If any penalties or interest are incurred due to our mistake, we will do everything we can to fix the problem and cover any penalties should they arise.
We feel so confident in our processes to account for all deductions and uncover hidden deductions that we guarantee that you will pay the lowest amount of taxes legally possible. We spend a good amount of time correcting and fixing other so called tax pros mistakes and oversights.
We are so committed to giving out clients the best service. We do this by taking thte time to understand our clients situation and asking the right questions to make sure every deduction is accounted for. And remember we work for you, NOT the IRS.
Not only do we prepare an accurate tax return, we will inform you of tax saving strategies and best record keeping practices should we see fit.
Starting January 1, 2017, all our returns come with our “Silver” Stress Free Audit Insurance, FREE with paid tax preparation. Our Silver package includes our full support when handling IRS and State Notices for the 2016 tax year. If you receive a notice, send it to us and we will work with you to organize the required documentation and we will respond to the IRS on your behalf.
“Many tax experts are predicting an increase in IRS audits (because of the system automation), as well as an increase in audits by the state”
Our Gold Package adds our representation for an actual IRS audit for the current year. Whether it be an “audit by mail”, or an actual audit at one of the IRS locations, we will work with you to compile all the necessary documentation and represent you in front of the IRS for no additional charge. Our fees to represent our clients in an audit scenario can range from $1000- $2500 & up depending on time and complexities.
Our Gold option is an optional add on service & not included with regular tax preparation. Gold protection covers the current tax year only regardless of when you get audited.
The IRS and state authorities are behind in auditing tax returns and matching reporting documents to tax returns.They are currently working on 2012 & 2013 years.
Our Platinum level package covers you for a period of 7 years. It Is just like our Gold package, but it includes the currtent year and 6 prior years. We will provide audit coverage for prior years tax returns, even if we did not prepare them.
How is that for taking care of our clients! Once the Platinum level package is purchased, only the gold level will be required in future years as the previous years have been protected by the one time Platinum purchase.
