Newsletter Title
t Don’t Wait to Update Your Estate Plan
It Should Change With Laws and Life Too
However, this isn’t a valuable lesson you should remember only when tax law changes occur. The concept of updating your estate plan should also apply as your life changes in the many different ways that it can. While chatting with an attorney friend recently, we talked about this very idea. He was under the impression that his clients’ lives don’t change as much as we think they do. Many people have consistent jobs, are in good health, stay in one location for long periods of time and most of them aren’t having any more kids. I challenged his idea, though. While many people have consistencies, they also have new grandchildren, find new opportunities for investment, and change their retirement plans. Plus the rules in this area of the law are constantly moving, just like we are seeing today. Life is fluid and you adapt rapidly. Very likely, your life five years ago is very different from the life you have now — and five years isn’t that long ago. Your estate plan should change as your life and tax laws change. And the sooner we can do this, the better. Unfortunately, we see a number of clients who call us in late December, panicking about what will happen the next year and inquiring about how we can reconfigure their estate plan for what they need. We are always happy to help in these scenarios, but this timeline can make completing these requests very, very difficult. It’s unlikely that we will be able to complete your requests in time for the new year because there isn’t enough time to ensure that it’ll be done properly. So, don’t wait. Consider this your call to action: If you are concerned about how the Biden administration’s current estate tax plans could impact your estate plan, or if you’ve experienced life changes this year, call us today. Let’s start the conversation and create a plan you’re comfortable with.
As we prepare for Halloween, this concept of fear and what’s “scary” both become part of our daily lives. Of course, this season is all about the fictional ghosts that spook us, but it can also be a great season to examine the many fears people tend to have when it comes to the future. Far too often, people forget that proper planning can dispel many of those fears. (Ironically, this fits right in line with October being designated as National Financial Planning Month.) Let’s take the proposed tax law changes as an example. The Biden administration is proposing estate tax law changes that would lower the threshold of non-taxable income of estate gifts from around $12 million for single people — about double for married couples — to about $6 million for single adults. (Again, double that for married people.) That means many people or couples could see a greatly increased estate tax bill for their children and other loved ones. That’s a significant change, and with that change comes a lot of fear. But you can’t let the fear that it could happen prevent you from taking the necessary steps you need to prevent potential greater losses of estate plan gifts or changes to your legacy. As we reach the end of the year, it’s imperative that you contact our team as soon as possible, so we can help you re-examine and consider changes to your estate plan. We may reallocate some of your plans, create a new trust or a revocable living trust, or consider ways we could gift some of your assets today while the $11.7 million threshold is still in place. If you start planning now — and don’t wait until the end of December — then come 2022, you can rest assured that your legacy still fits the future you have planned for yourself and your family. And, if the proposed tax law changes don’t go into effect, you’re not worse off than you were before. Your estate plan will still fit your needs.
1 (239) 265-9779 –Mike Hill
OCTOBER 2021
You Can Use WHAT to Tidy Up?! 4 Deep-Cleaning Hacks to Prep for the Holidays
panel and slide your hand along the length of it, you will gather tons of nasty dirt and dust onto the sock. Cleaning Balls Utilizing tennis balls for your house chores may sound strange. However, when drying a bulky bed comforter in your dryer, adding a few tennis balls will ensure the stuffing does not gather all to one side. The balls help keep everything nice and even. Pillowcases and Fans Your ceiling fans collect all of the nasties — dirt, dust, bugs, and allergens. For an easy way to clean them without spreading all the grime around your home, turn to old pillowcases! Simply slip the
Prepping for the holidays is exciting and fun, but it requires tons of planning, cooking, decorating, and cleaning. To avoid getting bogged down while preparing for cheerful celebrations with friends and family, try these easy ways to get your house sparkling clean and ready to host. Roll the Ceilings When it comes to ceilings, especially if they are textured, thoroughly cleaning off dust, dander, and cobwebs can be challenging. When you use a broom, chunks typically go flying around and make a larger mess. However, if you whip out a painting roller, dampen it, and roll your ceilings just like you are painting, you are sure to get the job done! Socks on Your Hands Have you ever run a finger along a panel of your blinds and it comes up black? Blinds tend to be huge dust collectors. By throwing some socks on your hands, you can get back to clean blinds. All you have to do is find a pair of old socks, “glove up,” and dampen them. From there, if you grip each individual blind
pillowcase over each individual fan blade and then wipe. All of the debris will end up in the pillowcase itself. A clean home is the key to happy living and is paramount for hosting over the holidays. With these tricks up your sleeve, you are now a cleaning expert!
t o H a v e Y o u !
Open Your Florida Home Effortlessly With These 3 Tips
Welcome back! While we know many of our friends from the north will filter into Florida later this fall, a few of our early arrivals have landed in the Sunshine State once again, and we are so happy to have you back in the area. As you get settled into your Floridian routine, don’t forget these essentials for “re-opening” your home.
can still find unwanted surprises when you open your Florida home. Check the exterior and interior of your home before you begin to unpack to take note of any damages. This could include water damage, mold growth, or signs of an infestation. If anything looks suspicious, call an expert for help and guidance! It’s better to take care of these problems now before you fully unpack. Re-Organize When you split your time between two homes, you have a unique opportunity to create two spaces that fit your personality. But this can also mean you have twice the stuff to contend with! If the garage shelves are constantly giving you grief, or you can’t seem to find what you need in the kitchen, use this migration as an opportunity to re-organize your home! You may find a few items to donate or clean out, and your stay will be more peaceful. If this year’s pilgrimage back to Florida has you reconsidering factors in your estate plan — or if you experienced changes this summer — please contact our team at Sheppard Law Firm. We’re happy to have you back!
Connect Your Amenities When you left for the summer, you may have paused your cable, phone, and internet service; mail subscriptions; and other monthly services you pay for. Before you travel down to Florida, create a list of services you have to “re-up” to make your winters more enjoyable and less stressful. Once you have your list set, begin checking items off by calling these companies or inquiring about re-starting your service online. Inspect It While you probably took care to ensure pests and other mildew didn’t camp out in your home during the hot Florida summer, you 2 floridaestateplanning.com
‘Providing aMonthly Stipend’ Attorney Craig Hersch on the Many Variables Factored Into Your Plan
morbidity table to determine the amount to carve out from which to pay the monthly payments. You can see that there are a number of variables involved. Another option I drafted into the document let the trustee purchase a commercial annuity rather than to make the calculation. Because the husband wanted whatever was left at the end of his wife’s life to be distributed to his children, the annuity would have to include a remainder provision. Another factor is how the monthly amounts were to be satisfied. Since income trapped in an irrevocable trust is taxed at a higher federal tax rate, the ordinary income would be first distributed to the wife, then capital gains, and then the principal. Rather than promise a monthly amount, spouses in this situation could always agree to set aside a specific dollar amount to satisfy the obligation. In doing so, the trustee would be absolved from making the inquiries necessary to calculate the carve-out. Sometimes what seems like a simple direction can be anything but. That’s why it’s so important to seek competent, experienced legal advice.
There are many factors at play in your estate plan. In his 2021 Sanibel Island Sun newspaper article, “Providing a Monthly Stipend,” Attorney Craig Hersch outlines the many situations at play with monthly stipends. You can read the full version of Craig’s column at FloridaEstatePlanning.com. I have seen several will and trust documents that don’t make sense because they call for distributions over an unknown time period. Unless we know exactly how long someone will live, we have to estimate how much to hold aside for care. I tackled it in one case by creating a formula at the time of the husband’s death. The first step directed the trustee to use the Social Security Administration’s Actuarial Life Table to estimate the wife’s life expectancy at the time of her husband’s death. Then, we calculated a conservative internal rate of return on the investments over the period and added a CPI estimate to determine the amount that would be carved out to make the distributions. In case the wife had a condition that would affect her life expectancy, the trust required her to be medically examined after the husband’s death and to share that report with the trustee. If that exam indicated an issue that would adversely affect her life expectancy, then the trustee was directed to use a life insurance
One-Pan Veggies and Chicken
Inspired by Tasty.co
Take a Break
What’s better than a healthy, seasonal dinner? How about one that requires minimal effort too?
INGREDIENTS
• • • • •
4 tbsp olive oil
Salt and pepper, to taste 3 cloves garlic, minced
• • • •
1 sweet potato, cubed
1 lb Brussels sprouts, halved
1 tbsp rosemary
2 apples, sliced 4 chicken thighs
2 tbsp thyme
DIRECTIONS 1. Preheat oven to 400 F. 2. On a baking sheet, add potatoes, Brussels sprouts, and apples. Layer chicken thighs on top. 3. Drizzle with olive oil. Then season with salt, pepper, garlic, rosemary, and thyme.
4. Turn chicken over and add seasoning to the back side. Return skin-side up before baking. 5. Bake for 30 minutes, and broil for 5–10 minutes afterward.
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INSIDE this issue
Is It Time To Update Your Estate Plan? . .....1
Deep-Cleaning Hacks for the Holidays. ......2
3 Tips for Opening Your Florida Home........2
What Factors Into Your Plans? ...................3
One-Pan Veggies and Chicken. ..................3
Is Your Bathroom Ready for the Holidays?.............................................4
The best compliments we receive are your referrals. When you refer us to your loved ones, we do all we can to exceed expectations.
H o l
B r i n g
Believe it or not, the holidays are right around the corner! That means company — which means a lot of people will be using your bathroom. Here are some low-budget ideas to freshen it up after a year of lockdown.
Be Bold Everyone loves a clean white bathroom, but don’t be afraid to liven things up with a splash of color. An accent wall or a handful of vibrant accessories will make your bathroom stand out. Brighten Up Statement lighting is in. To wow your whole family, select a chandelier that will stand out and draw eyes upward. This is one small change that will see big returns. Go Wild Bring life to your bathroom — literally! — with a bit of vegetation. Select plants that both fit your space and bring playfulness and dimension. If you don’t have a green thumb, then try picking colorful, low-maintenance succulents.
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