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405-843-6100 | 918-615-2700 | ParmanLaw.com April 2025
Important Updates and Reviewing Your Trust
Clients and Friends,
Corporate Transparency Act Update First, on Feb. 27, 2025, an important update was issued regarding the beneficial ownership information (BOI) reporting obligations under the Corporate Transparency Act (CTA). The Financial Crimes Enforcement Network (FinCEN) announced yet another reprieve, stating that it will not be enforcing these reporting obligations until the forthcoming interim final rule becomes effective. This extension provides our clients and stakeholders with additional time to prepare for compliance with the impending BOI reporting requirements. We understand that navigating these regulations can be complex, even ridiculous. Due to the widespread and overwhelming backlash caused by this new rule, FinCEN and the courts have struggled to agree on a workable plan. My workable plan would be to abolish the act altogether, but that’s not likely to happen. We encourage you to stay informed about the developments related to FinCEN’s final rule. We are here to assist you with any questions or concerns you may have regarding beneficial ownership reporting or related compliance issues. Reviewing Your Trust The next topic is primarily addressed to those of you who have trusts dated prior to 2015. A little history is in order. You may remember when the estate tax exemption was $600,000. Over the years, laws were passed that raised the exemption to the 2025 level of nearly $14 million per person. That means anyone can transfer up to that amount without incurring federal estate tax. Spouses can still transfer an unlimited amount to one another, either during a lifetime or at the time of death. NOTE: That exemption is scheduled to return to approximately $7 million per person unless Congress passes new legislation reinstating the higher exemption. The estate tax exemption is a “use it or lose it” proposition. If it is not claimed at the first death, it is lost. When the exemption was lower, more of you were exposed to a possible estate tax. We addressed that issue and preserved the exemption of the first spouse to die by splitting the estate into two parts. In your document, these two parts are referred to as the Family Trust and the Survivor’s Trust (or perhaps Marital Trust). Transferring a portion of your estate into the Family Trust preserved your exemption and shielded those assets from estate tax. Those provisions required a mandatory split of your assets following the death of the first spouse. As the exemption increased, fewer people were exposed to estate tax and the need for a mandatory split became unnecessary. After
the first death, some families prefer to continue holding all assets in the Survivor’s Trust and not create or fund the Family Trust. If provisions in the trust document require the mandatory split and that step is not taken, the Trustee has potential liability for not complying with the terms of the trust. To address that situation, in many cases, after the death of the first spouse, we have created a workaround through a Family Settlement Agreement. In some instances, this was not as easy as one might expect. To respond to the higher exemption, for the past few years, we have made the creation and funding of a Family Trust optional. In other words, following the death of the first spouse, we review the law and your financial situation and determine possible estate tax exposure and whether the Family Trust is required. If so, the trust provides a mechanism for that to occur. If not, all remaining trust assets continue to be held by the trust and governed by the terms of the Survivor’s Trust. That trust can still be amended (even revoked) during the survivor’s lifetime, essentially giving the surviving spouse complete control over the trust. We recommend that anyone with an older trust come in for a review to determine what provisions are included in their plan and whether restating or amending this important provision of their trust makes sense. Check out the date for our upcoming Client event. You don’t want to miss it. I want to thank those of you who shared your terrific online
reviews. You don’t have to be a new client to share your experience. Call us, and we can show you how to quickly jot a note about your experience at Parman & Easterday. To all, thank you for your continued trust in our firm.
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Making Sense of Powers of Attorney
Everything You Need to Know
Financial POA: A financial POA is a limited power of attorney specifically focused on managing financial matters. It allows your agent to oversee investments, pay bills, and handle banking responsibilities. Medical (Health Care) POA: Another limited type, medical POAs allow your agent to make health care decisions to ensure your preferences for treatment and care are followed if you cannot make decisions on your own. Springing POA: Springing POAs become effective only upon a specified event, typically your incapacitation. Choosing an Agent The agent you choose will have significant control over your affairs, making it vital to select someone trustworthy and competent. In addition to understanding your values, your agent should be financially responsible and available when needed. It’s also wise
A power of attorney (POA) is a crucial component of estate planning that enables you to appoint someone to manage your financial, legal, or medical affairs. Understanding the different types of POAs and their functions is essential to ensure your wishes are honored and your interests are protected. Types of Power of Attorney General POA : A general power of attorney grants your agent broad authority to handle financial and legal matters on your behalf, including managing bank accounts, signing documents, and conducting real estate transactions. Durable POA: A durable power of attorney is similar to a general POA but remains in effect if you become incapacitated. Limited (Special) POA: Limited POAs only apply to specific tasks or transactions, such as selling property or managing medical care.
to appoint a successor agent to serve as a backup if your primary choice is unable or unwilling to serve. Legal Considerations Each state has its own POA requirements, so consult with an estate planning attorney to ensure your document complies with local laws. Regularly reviewing and updating your POA, especially after significant life events, is also essential to ensure it remains aligned with your current intentions. With the right plan in place, you can have peace of mind that a trusted individual will manage your affairs as you’d like if you cannot.
AFTER A LOVED ONE’S PASSING Essential Financial and Estate Tasks
Contact an attorney and executor. In addition to helping gather documents, an estate planning attorney will guide you through probate if needed and ensure legal obligations are filled, debts are settled, and assets are distributed according to the will. The executor will work closely with the estate planning attorney to complete these tasks and fulfill your loved one’s wishes. Notify financial institutions. Quickly contacting banks, credit card companies, and insurance providers to notify them of the passing will freeze accounts and prevent unauthorized transactions. It will also ensure benefits such as life insurance payouts are correctly processed. Additionally, inform the Social Security Administration and pension offices to stop payments and, if applicable, begin survivor benefits. Settle debts and file taxes. Identify any outstanding debts, such as loans, credit card balances, or utility bills, and arrange to pay them from the estate’s funds. You need to file the deceased’s final federal and state income tax return, and estate taxes may apply depending on state law. Consult a tax professional or an estate planning attorney for help if needed to ensure accuracy and peace of mind during this complex process.
Losing a loved one is an emotional experience, but addressing key financial and legal matters to manage their estate effectively is essential. Staying organized and focused during this challenging time will help you handle your loved one’s affairs smoothly and according to their wishes. Secure property and assets. Immediately following your loved one’s death, secure their residence and other property to prevent unauthorized access. If you are concerned about who has keys, such as cleaning companies and home care providers, consider changing the locks. This is also a good time to inventory valuable assets, including jewelry, heirlooms, and important paperwork. Creating an inventory helps identify items before you remove them — and prevents disputes among heirs. Gather financial and legal documents. Ideally, you should know where your loved one’s important documents are, but this isn’t always true. They’ll often be in a home safe, in a bank safe deposit box, or with an attorney. Essential documents to gather include their trust, will, life insurance policies, financial records, and property titles. These are crucial for initiating the probate process, if applicable, and managing the estate.
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MARGIE’S KITCHEN: NEIMAN MARCUS CAKE
by Darlene Parman
This article is dedicated to my mom, Margie Trammell, who shared her love through her Texan, homestyle cookin’. Speaking of Texas, the iconic department store Neiman Marcus started in Dallas. Growing up in Texas, I observed how that store became a cultural symbol for how Texas ladies should dress and cook. You may recall that December 2024’s recipe was for the famous Neiman Marcus Cookies. This month, I’m sharing the Neiman Marcus Cake. I am not certain if it was served in the Neiman’s café, but when you ate this cake, you definitely felt rich! Perhaps that is the source of the name. When we moved to Oklahoma, I noticed they called this recipe Gooey Butter Cake. You could purchase it at the old “Sweet Memories” shop on May Avenue in a round aluminum cake pan. I hope this amazingly yummy cake helps you have a “richer,” more loving relationship with your family and friends!
A Deep Dive Into ‘Old Ironsides’ America’s Invincible Icon
Some American institutions were built to last.
In 1794, a shipbuilder named Joshua Humphreys earned his status as an American hero by designing the first half-dozen warships used by the U.S. Navy. Amazingly, one of these ships, the USS Constitution, remains commissioned to this day after being used in some of our country’s most significant achievements at sea. The USS Constitution was first commissioned circa 1797 during the Quasi-War with France before being shipped off to North Africa during the U.S. conflict with the Barbary Pirates. However, the ship’s greatest fame came during the War of 1812, when it helped secure a victory against the British Navy. Known for its virtually impenetrable construction, the USS Constitution earned the nickname “Old Ironsides” after it was victorious against a British warship known as the HMS Guerriere. When the war-worn Old Ironsides seemed to be nearing the end of its structural life and would need to be decommissioned in 1830, a national campaign to save the ship kept it in service. By 1881, Old Ironsides finally got its well-earned retirement, and the ship was officially decommissioned. Was that the end of this iconic vessel’s storied history? Not by a long shot! In 1931, the Navy returned the ship to a different kind of active duty, where it remains to this day. These days, Old Ironsides is docked in the Charlestown Navy Yard in Boston, Massachusetts — next to a nonprofit museum dedicated to preserving its incomparable impact on American history. The warship and museum attract hundreds of thousands of visitors annually, and official USS Constitution crew members are on hand to deliver presentations on the frigate’s extraordinary past. More than 200 years after it first left Boston Harbor, Old Ironsides continues to stand (or, more accurately, float ) as a symbol of American ingenuity and our nation’s commitment to liberty and freedom for all.
Bottom Layer • 1 box yellow cake mix • 2 eggs, beaten • 1/2 cup butter, melted Ingredients
Top Layer • 8 oz cream cheese • 2 eggs, beaten • 1 tsp vanilla • 1 box of powdered sugar or approximately 3 1/2 cups
Directions 1. Preheat oven to 350 F. Grease and flour a 9x3x3-inch baking pan. 2. Mix ingredients for the bottom layer and press into the prepared baking pan, making a 1/4-inch lip around the edge. 3. Mix ingredients of top layer and pour over the first layer of cake batter. 4. Bake for 40–45 minutes. When done, the top is golden brown, and the edges are darker brown. When in doubt, underbake. Cool completely. Cut into squares. 5. Sprinkle with powdered sugar and enjoy. If you want us to share a recipe in Margie’s Kitchen, please email it to Info@parmanlaw.com. We’ll feature it in our newsletter or on our website!
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INSIDE THIS ISSUE
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Important Updates and Reviewing Your Trust
A Simple Guide to Powers of Attorney
Steps to Handle a Loved One’s Estate
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Neiman Marcus Cake
A Naval Legend Lives On
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When Your Diary Becomes Evidence
Dear Diary, Please Don’t Be Used Against Me in Court
Many of us have fond memories of writing in diaries or journals throughout our youth. We would share our thoughts and feelings in a book we would keep hidden from friends, family members, and others. It was our sanctuary where we could be ourselves without worrying about judgment or embarrassment. You may even remember the feeling of rage or hopelessness when you spotted your brother or sister holding your diary. Thankfully, there usually wasn’t anything too incriminating in our teenage diaries, and some of us have continued the practice well into adulthood. However, a recent news story proves we should be cautious about the information we share in our private journals. Last year, a Minnesota woman was arrested for auto theft. While investigating the incident and looking into Vanessa Guerra, a suspect in the case, a law
enforcement officer allegedly found her diary. He flipped through the pages, looking for any information that would catch his eye, when he stumbled upon an entry from Aug. 12, the same day a 2004 Ford Freestar van was stolen and resold at an auto salvage business. “Totally stole a car today! Something I never thought of doing,” Guerra allegedly wrote in her diary. Guerra was charged with receiving stolen property and theft, although she claims she didn’t know the vehicle was stolen. However, workers at the auto salvage business informed law enforcement they recognized Guerra as the seller of the stolen vehicle. Most people will probably not blab to others about crimes they have committed, especially if they are currently unsolved. This
case reminds us to be just as cautious about what we write in private journals. While your diary may be your safe place to share your innermost thoughts and feelings, your entries could come back to haunt you if you’re involved in a criminal case, especially if you blatantly admit to the crime.
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