Get your business in order

[Johnny Tyndall]

Gift tax on anything over 18k a year to each individual.

$13 million lifetime exclusion from that. Just have to do a little more paperwork.

 

[Tmac]

I think the ability to include this (an in terrorem clause) varies by state, and it may have less impact on a surviving spouse.

In our case, first marriage and no step issues. Dad went first, this clause was inserted when it was just Mom. Worked wonderfully to keep the peace when we lost her.

If there is a step parent, it's a whole different can of worms and it’s really really really important for both to have dialed in their planning if they want their wishes to hold sway. I’ve watched a step mom 100% exclude the husbands kids from everything, including pictures as a child, then make sure they were still cut off at her death. Sad deal. Money does funny things to people.

 

[KenLee]

I learned a long time ago that more paperwork means more prying eyes.
ATF and IRS are prime examples.

 

[clarkbnd]

Sorry to hear your family's loss. You never know what tomorrow will bring

 

[fwafwow]

I learned a long time ago that more paperwork means more prying eyes.
ATF and IRS are prime examples.

I think the paperwork he’s referencing is that if you give more than $18k to any individual )other than your spouse) in a year, you file a gift tax return to disclose it. So the IRS will see it, but it’s not a big deal.

 

[KenLee]

I think the paperwork he’s referencing is that if you give more than $18k to any individual )other than your spouse) in a year, you file a gift tax return to disclose it. So the IRS will see it, but it’s not a big deal.

I figure if Granny is giving away multiple $500k gifts in a year, IRS is cranking up the microscope.
It only takes 5 or so two at a time pistol purchases for the ATF to check you out.

 

[fwafwow]

I figure if Granny is giving away multiple $500k gifts in a year, IRS is cranking up the microscope.
It only takes 5 or so two at a time pistol purchases for the ATF to check you out.

I get the concern, especially with the ATF. But as for the IRS, there are many people who file gift tax returns every year, disclosing way more than $500k - sometimes even paying gift taxes - and few are audited, unless they take an aggressive position or valuation approach.

 

[gbflyer]

Dealt with this in March of this year. Very stressful.

 

[Customweld]

I appreciate the kind words from everyone. Indeed, we don't get much notice of when we are going to check out. I'm really surprised that my FIL didn't have something put together. He was meticulous with everything he did. I had many talks with him and mortality wasn't a taboo subject with him.

 

[HuntHarder]

I figure if Granny is giving away multiple $500k gifts in a year, IRS is cranking up the microscope.
It only takes 5 or so two at a time pistol purchases for the ATF to check you out.

Don't derail this thread, just say " Sorry I gave incorrect information, Thank you for correcting my mistake."

 

[ramsdude47]

I keep thinking I’m way behind the curve not having my will setup yet at 35, not surprised at all to hear there’s tons of older folks that haven’t done it.

Another thing people need to get in order is there advanced directives in terms of medical care. I can’t tell you how many situations I have seen that get really ugly (neuro trauma bedside RN). People’s wishes are either far too vague or simply non existent other than “a conversation from years ago”.

I couldn’t more highly recommend reading this book and really thinking about this stuff: https://www.amazon.com/Being-Mortal-Illness-Medicine-Matters/dp/1250081246

 

[Lee_R]

Google "financial love letter equitable". It'll take you to a pdf that you can fill out with most everything a family needs to consolidate most things financial. It's not a will or a trust, but rather a comprehensive document to share with others that lists where everything of financial importance is.

 

[Fatcamp]

Make sure all titles use "or" instead of "and."

Such as, Greatest husband or Greatest wife. If in one name or "and" it is a nightmare

 

[tony]

I didn't read all three pages. My aunt lived in S. Carolina and passed away last November. she had a will and all the proper planning. I guess even with a will and beneficiaries, SC law says the dead still have to go through probate.

So check your state laws and plan according to your state law.

 

[ODB]

Sorry to hear about that - condolences to you and the family.

And it's good advice. I asked about wills/trusts earlier this year and we got ours done in April with all the trimmings. Only having one kid makes it all the more important.

 

[fwafwow]

I didn't read all three pages. My aunt lived in S. Carolina and passed away last November. she had a will and all the proper planning. I guess even with a will and beneficiaries, SC law says the dead still have to go through probate.

So check your state laws and plan according to your state law.

I’m sorry about your aunt. A will, if needed to effect the plan, always goes through probate.

 

[SloppyJ]

Speaking of the "churn and burn" financial advisors, I assume?

Not really. My grandparents had multiple accounts through one advisor. At some point he must have done well for them because my grandpa seemed to like him before he passed. However, I found that the advisor didn't setup the beneficiaries as my grandmother wished and at that point it was too late. He was very manipulative and tried the "if you were my son..." deal on me multiple times.

Luckily I did nothing but a ton of research and met with multiple advisors to see where I felt the most comfortable. The original advisor was extremely manipulative and he kept acting like he was trying to take care of me more so than my aunts and cousins because my grandma always talked about me and I was the favorite. That's no secret.

He offered nothing but managed funds and still wanted to charge close to 2%. He stated that he doesn't take on new customers and tries to keep it to around 100 total but he would keep me on. He tried to work things in my favor in an effort to keep me as a customer against the rest of my family. When it came to distributing funds he tried some blatantly illegal things with my cousins until a lawyer was involved.

All in all, it wasn't anywhere near respectable and not what anyone would want to have to navigate after the loss of a loved one. He's basically in a retirement community scalping 2% off of people's money and sitting in his chair all day and offering no services. It's repulsive to say the least and I did document things and file a formal complaint.

 

[tony]

I’m sorry about your aunt. A will, if needed to effect the plan, always goes through probate.

Is that for every state? I'm 55 and need to start getting things together.
I thought a will was law as far as how you wanted things done when you pass.

 

[Q child]

Good advice. Sorry for your loss.

 

[Laelkhunter]

Not sure if it has been mentioned, but a Will. You don't want the state to determine who is going to get your property, money, etc (like it can in Louisiana). If the bank finds out someone has passed away, they freeze their accounts (except joint accounts) and won't let anyone take any money out until there is a succession. Get a will !! That way there are no questions by surviving Family members, "Dad (Mom), wanted me to have that !! Well if it's in the will, that person will get it.