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Trust Matters SEPTEMBER 2024
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RETIREMENT FINANCES WHY THERE’S NOTHING TO FEAR
This year may be the first time our family does not go trick-or- treating. My youngest is 13, and unless he decides he doesn’t want to miss out on his last chance for free candy — which I did when I was his age — we’ll be spending Halloween at home. Regardless, we won’t be wearing any elaborate costumes this year, which marks the end of an era for our family. I am sure many of you can relate to this change from trick-or-treating as a family to skipping it entirely. Apart from a practical prank, you should be wary of a few things on Halloween. Halloween has become a playful, silly holiday, best known as a day when your kids put on costumes and enjoy an overabundance of candy, but that wasn’t always the case. When the holiday was first brought to the Americas, people used to “celebrate” it much differently. In the early 20th century, youths used the holiday as an excuse to commit destructive and criminal pranks. These included tipping over outhouses, stacking beer kegs on people’s lawns, popping car tires, and egging houses, a tradition that persists today. Over time and through great effort, the holiday morphed into our mostly benign version today. Halloween is a perfect holiday to remind us that while we can all enjoy a perfectly good scare, we cannot let fear make our decisions for us. Your retirement finances, like Halloween, can be transformed from a source of fear to a source of comfort and security. Conquering Your Financial Fears One of the scariest scenarios we can deal with is inheriting a difficult financial situation. I had a client who came to me, literally trembling with fear, after her husband passed away, and she was left to handle the finances. It was the equivalent of hundreds of blank puzzle pieces, none of which seemed to fit together. There were different investments with different companies, money spread between different accounts, and no idea of how to begin accounting for it all in a cohesive manner. Fortunately, we could support her during this difficult time and provide effective counsel and advice that allowed her to face her fears head-on. With the necessary knowledge and confidence to grasp her situation, she made decisions to regain complete control over her finances. She is no longer afraid to discuss numbers,
accounts, and investments. Seeing a confident client confronting a scary situation is always inspiring. I encourage everyone who feels frightened about their finances going into, or during, retirement to allow us to tackle those fears with you. One way of alleviating those worries is by obtaining the knowledge necessary to understand your options and the choices you need to secure your finances. Spreading Knowledge We recently hosted our largest-ever Intentional Living Summit, which provided valuable knowledge to retirees looking to take
control of their finances so they can enjoy a secure, comfortable retirement. If you are interested in learning more, we are hosting another summit in January. Call our office at (480) 418-8448 to learn more!
-Francisco Sirvent
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NEW YEAR, NEW EXEMPTION
Why 2024 Is the Year to Update Your Estate Plan
While keeping up to date with your estate planning should always be a priority, 2024 is the ideal year to review and make changes to your estate plan. This is because the federal estate, gift, and generation-skipping transfer, or GST, tax exemptions have seen a marked increase this year. In 2023, the GST was $12.92 million per individual, but it has increased by $690,000 to $13.61 million per individual in 2024. This means you can transfer property with a value up to the exemption amount, either at death or throughout your lifetime, without paying a transfer tax. If you are in a position to do so, consider taking full advantage of this estate planning environment. Estate, Gift, and GST Taxes Every year, the IRS allows individuals to gift up to $18,000 to individuals without incurring federal gift or estate taxes. If you are married, your spouse may also gift up to the same amount, effectively increasing the amount to $36,000 per year, tax-free. Some gifts do not count toward the exemption — meaning these are not taxed — such as payments made directly to medical providers or between spouses. According to the American Bar Association, the GST tax is imposed on transfers to “remote descendants,” including grandchildren, known as “skip” persons, that exceed the exemption limits.
“You need to create your estate plan this year ; the current federal estate, gift, and GST tax exemption rate is temporary and set to decrease soon.”
The GST tax is applied to direct transfers to any skip person, either during someone’s lifetime or at the time of death. However, transfers made to trusts can use the GST exemption — making the trust partially or wholly exempt from the tax. As of 2024, the federal gift, estate, and GST tax rate is a flat 40% — representing a significant expense. That is why the gift, estate, and GST tax exemptions are so important; they allow you to circumvent this tax rate in your estate plan. The GST Tax Exemption While the federal estate, gift, and GST tax exemptions were just $5 million in 2011, they have increased by over 170%. Before 2012, inflation was not considered when determining the exemption. This increase should not come as a surprise to anyone. After all, inflation has significantly strained the economy in recent years. If you wish to take advantage of the GST tax exemption through the use of a trust, you need to consider a few factors. Any non-exempt trust will still be taxed at a 40% rate. For a trust to be GST tax-exempt, it must either be a Gallo trust, meaning it is for the benefit of a single grandchild or skip person, be a grandfathered trust, or qualify for the GST tax annual exclusion. Otherwise, if you want to cement your legacy and do what is best for your family at the time of death, you need to act quickly while this exemption still applies. You need to create your estate plan this year ; the current federal estate, gift, and GST tax exemption rate is temporary and set to decrease soon.
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Nature’s Playground Awaits!
TAKE A BREAK
These National Parks Are Accessible to All
ABUNDANT APPLES
For decades, the 400-plus national parks encompassing over 84 million acres were unreachable for millions of Americans with mobility issues. Thankfully, recent advances at many national parks have made nature available for everyone. Let’s look at five accessible options for your next adventure. Great Sand Dunes Great Sand Dunes National Park has 5 billion cubic meters of sand and stretches 30 miles. The winds blow these sands into massive dunes with peaks reaching 13,000 feet in elevation. Now, with sand-friendly wheelchairs available for rent, utilizing inflatable wheels for accessibility, everyone can explore these natural wonders. Grand Canyon A scenic drive accessibility permit allows visitors to access roads that are closed to regular traffic, providing incredible views of the Grand Canyon without needing to get out of the car. However, for a closer peek, you can find wheelchair- friendly overlook platforms and a free shuttle to transport visitors around the park. Carlsbad Caverns Think again if you thought cave exploration was off the table for folks with trouble getting around. Carlsbad Caverns features an elevator that takes visitors 750 feet underground into a giant cave chamber, home to over a mile of paved trails through beautiful rock formations that took millions of years to form. Grand Teton Feel like going for a swim? Grand Teton National Park wanted everyone to feel welcome to cool off in the 1,200-acre Jenny
COOKOUT CRUNCHY FALL GOLDEN GRANDPARENTS HARVEST
LABOR MAPLE SPORTS WINDY
TASTY TURKEY MEATLOAF
This turkey meatloaf is packed with flavor and protein, perfect for a family dinner or meal prep!
Lake, so they built a path that allows wheelchair users to roll into the water.
Nearby, Teton Adaptive Sports hosts climbing trips, so nobody has to abandon their dreams of conquering the cliffs. Yellowstone
Ingredients
• 1 lb ground turkey • 1 onion, diced • 2 cloves garlic, minced • 1/2 cup bread crumbs • 1/2 cup grated Parmesan cheese
• 2 tbsp ketchup • 2 tbsp Worcestershire sauce • 2 eggs • 2 tbsp chopped fresh parsley • Salt and pepper, to taste
This national park is one of the country’s best, with over 90% of visitors reporting never needing to leave their car. For adventurers with injuries, age-related mobility issues, or other disabilities who want a closer look, most of the thermal features Yellowstone is famous for are easily accessible due to its excellent boardwalk system. The accessibility changes made by these parks are a significant step toward ensuring our national treasures are inclusive for all who wish to experience nature’s wonders. Through innovative solutions like sand-friendly wheelchairs, cave elevators, and special driving permits, these parks give outdoor access to even more people.
Directions 1. Preheat oven to 375 F and line a baking dish with parchment paper. 2. In a large bowl, combine turkey, onion, garlic, bread crumbs, Parmesan cheese, ketchup, Worcestershire sauce, eggs, parsley, salt, and pepper. 3. Form the mixture into a loaf shape and place it in the baking dish. 4. Bake for 45 minutes or until the internal temperature reaches 165 F. 5. Let the meatloaf rest for 10 minutes before slicing.
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INSIDE THIS ISSUE
1
Retire With Financial Confidence
2
2024 Sees Rise in Transfer Tax Exemptions
3
Tasty Turkey Meatloaf
Parks Pave the Way for Accessibility
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Eminem’s Family Feud
Slim Shady’s Mom Sued Him for Millions
Eminem has famously feuded with Machine Gun Kelly, Mariah Carey, and many other musicians and celebrities. In many cases, his rivals become the subject of his rap lyrics.
He has even written entire songs as parts of long-standing rap battles and disputes, some of which become massive hits. In 2018, Eminem released a music video for his single, “Killshot,” a song targeting rapper Machine Gun Kelly. Despite the video being nothing but a still image — a drawing of Machine Gun Kelly seen through a gun’s scope and crosshairs — it has amassed nearly half a billion views on YouTube. But one of his earliest, and perhaps most hurtful battles, hit close to home. Eminem, whose real name is Marshall Mathers, was sued for defamation by his mother, Debbie Mathers-Briggs, in 1999. She sought $10 million in damages, claiming that the then-26-year-old rapper had slandered her in songs and interviews. Background of the Beef Eminem first mentioned Mathers-Briggs in his 1999 single, “My Name Is.” The song
won the artist a Grammy for Best Rap Solo Performance in 2000. The lyrics include explicit references to his mother in the lines, “I just found out my mom does more dope than I do,” and “I told her I’d grow up to be a famous rapper. Make a record about doin’ drugs and name it after her.” Mathers-Briggs claimed that she did not use illegal drugs and that the rapper’s lyrics were untrue and amounted to slander. Eminem’s attorney refuted this claim, arguing that everything the rapper sung about her was verifiably true. Rapper’s Result The court awarded Mathers-Briggs a settlement in this case, but it was far from the $10 million she originally sought. She initially won around $25,000, which was reduced to just $1,600 by a Macomb County judge, who awarded the majority of the settlement, some $23,354, to her attorney to cover legal fees.
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