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July 2025
650-463-1550 | www.FalkBarrot.com
A Timely Reminder for Seniors to Stay Scam-Smart Hello, Summer!
Please remember: • The IRS does not accept payment via gift cards or prepaid debit cards. • The IRS cannot revoke someone’s citizenship. • The IRS will not contact you via text, email, or voicemail without prior consent. If you receive a threatening message claiming to be from the IRS, contact the agency directly at (800) 829-1040 or TTY/TDD (800) 829-4059 to verify its authenticity. Another heartbreaking trend is the “grandparent scam.” In these cases, a caller pretends to be a police officer, doctor, or lawyer, claiming that a grandchild is in serious trouble — unless the grandparent sends money immediately. These criminals count on panic overriding judgment. If you or a loved one receives such a call, ask for a call-back number and verify the story with another family member before taking action. Scammers often pressure victims to act immediately, which is a major red flag. Finally, beware of “too good to be true” scenarios, such as receiving a call that you’ve won a sweepstakes or prize. Scammers will often ask for personal financial information to “process” your winnings. Legitimate prize organizations do not require upfront fees or tax payments to claim a prize. To help protect our community, we are planning to host a free seminar this fall focused on scam awareness and prevention. Stay tuned for full event details.
Recently, our office has received multiple calls from clients whose elderly relatives have been targeted — and, in some cases, defrauded — by online or phone scammers. We’re all too familiar with these tactics, as even our staff receives similar calls and messages on a near-daily basis. These scams are growing more sophisticated and frequent, so we’ve dedicated this issue’s cover article to identifying common schemes and how to protect yourself and your loved ones. According to the National Council on Aging, more than 100,000 Americans over age 60 lost a staggering $3.4 billion to scams in 2023 alone. Criminals are constantly evolving their techniques to exploit trust, fear, and love, particularly among seniors. One of the most common scams involves fraudsters impersonating IRS agents. Using spoofed caller IDs, they’ll demand immediate payment for alleged tax debts, often under threat of arrest or deportation. They may also reach out via text or email. We’re grateful to everyone who attended this year’s Annual Client Appreciation and Shredding Event. We deeply appreciate the kind words and positive feedback many of you shared — it means so much to us. We were delighted to host this year’s event at a new — and hopefully future — location, Auto Vino in San Carlos. A special thank you also goes to Kimberly’s mother, Penny, for generously baking all the delicious homemade breads. They were a big hit, with many guests sharing “yummy” reviews and asking for recipes!
As always, we’re here to support you — not just in your estate planning, but in safeguarding your future.
—The Team at Falk, Barrot & Associates, LLP
Warmly,
www.FalkBarrot.com
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Moves Beyond Today’s Money SECURE STEPS TO A SAFE RETIREMENT
There’s often more to retirement planning than meets the eye, especially regarding taxes.
to provide to your heirs. However, prepare for the likelihood that putting too much money into a Roth conversion may lead you toward a higher tax bracket once retirement comes, so careful planning with professional assistance is advised. With taxes expected to rise in 2026 and beyond, it’s also prudent to work with a financial planner to implement strategies to reduce your financial obligations in retirement, including the amount taxed on your Social Security benefits. A Plan for Health Care Hurdles Unfortunately, reaching retirement age often means experiencing new health issues that could substantially impact your income. It is critical to consider how any changes to your retirement income may affect Medicare premiums or increase the chance of incurring penalties. Charting a financially secure future takes skill, focus, and tremendous care. What may work for someone else financially may not be the best solution for you. Consult a financial professional before implementing any plan that could drastically alter your comfort and security.
Although many people believe saving money for their golden years is the primary path to a secure retirement, tax planning and health care considerations play significant roles in the strength of one’s later years and subsequent legacy. Here are two essential aspects of proper retirement and estate planning that many often overlook. The Right Financial Tune-Up Time Frame The most significant risk to successful estate and retirement planning is not starting the process early enough. To ensure the smoothest transition possible, experts recommend engaging in tax planning no later than five years before you intend to retire. Getting a lengthy headstart will enable you to determine ways to make pretax funds work for you in tax-advantaged accounts. If you anticipate reaching a higher tax bracket in retirement, converting to a Roth IRA — in which you can grow post-tax funds toward your retirement and withdraw them tax-free after you reach 59.5 years old and have had the account for five years — may be a viable option to protect yourself and what you intend
MAXIMIZED MARITAL MAGIC The Art of Unlimited Deductions
Devising the best estate plan to provide for those dearest to you can be emotionally and logistically challenging, even under the clearest circumstances. However, this process can be even more difficult due to the critical terms, conditions, and laws that could determine the strength or weakness of how your wishes are carried out upon your passing. To make things a little easier, here are the basics about the “unlimited marital deduction” and how it influences what one spouse receives from another. Tax-Free Transfers The unlimited marital deduction enables a spouse to transfer unlimited assets to another tax-free. You derive this deduction by subtracting the total amount of assets from the gross estate, which must be distributed according to a will. Estate taxes on transferred assets are delayed until the recipient spouse’s death. The spouses must be legally married U.S. citizens to qualify for this deduction. Safeguarding a Sustained Legacy If an individual wishes to have a say in what happens to their assets after their surviving spouse passes, they can set up an irrevocable Qualified Terminable Interest Property (QTIP) Trust that will still provide for the surviving spouse but outline beneficiaries
upon their death. Because this trust is irrevocable, it can’t be altered by anyone, including the surviving spouse.
Citizenship Exceptions Although establishing the unlimited marital deduction is straightforward for
American citizens, pursuing similar options for non-citizen spouses is more complex but not impossible. First, a U.S. citizen can gift money to their non-U.S. citizen spouse. In 2024, the maximum amount not subject to gift taxes was $185,000. Another option would be to establish a Qualified Domestic Trust (QDOT), which allows the non-citizen spouse to take advantage of the unlimited marital deduction so long as they are the sole beneficiary and at least one trustee is a U.S. citizen or an American corporation. Naturally, the conditions outlined in this brief overview are subject to a host of what-ifs that may affect the specific outcome of your situation. Working with skilled financial planners familiar with these nuances is essential to secure your spouse’s well-being and satisfy tax obligations when the time comes to implement your estate plan.
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We believe everyone needs an Estate Plan. Estate planning can feel overwhelming—but it doesn’t have to be. Many people put off executing a plan because of the emotional weight or complexity of the process. Without a plan in place, the State of California may step in, leading to delays, added expenses, and outcomes that may not reflect your wishes. Our streamlined process makes planning simple and stress-free. Encourage your loved ones to attend our free Living Trust & Estate Planning webinar to learn how we help you protect your family and assets with clarity and ease.
Budget Brilliance From a Bygone Era
In a world where you can have anything delivered in a day, it’s easy to forget that less can be more. But our grandparents and great-grandparents knew the art of stretching a dollar. These timeless frugal habits aren’t just budget-friendly; they’re resourceful and surprisingly satisfying. Ready to channel your inner penny-pincher? Let’s bring these throwback habits back to life. Mend it, don’t end it. Once upon a time, people didn’t just toss a sock with a hole. Instead, you sewed it right back up! No need to rush to the store — just a few basic mending skills can save you from countless unnecessary purchases. It’s also more empowering to fix something with your own hands than tossing it — not to mention much more eco-friendly. Master the magic of homemade meals. Fast food might be convenient, but cooking from scratch is where the real savings (and flavor) happen. Think soups from veggie scraps and hearty meals made from simple pantry staples. Not only does it cut costs, but it puts you in control of your ingredients and nutrition — a win-win. Reinvent your leftovers. Gone are the days of letting food wilt in the fridge. Old-school frugal folks gave every last bite a second act. Roast chicken becomes broth. Rice gets turned into stir-fry. Stale bread transforms into French toast or bread pudding. Get creative! You’ll waste less and eat better. Choose cash over card. There’s something about handing over $20 cash that makes you think twice before spending it. Cash budgeting may feel outdated, but it’s one of the simplest ways to curb impulse buys. Envelopes marked for groceries, gas, or coffee dates give you a clear snapshot of your spending — and what’s left. No more senseless swiping! Save with secondhand savvy. Hand-me-downs were once a household norm! Today, thrift stores and vintage finds are trending again, and for good reason. Whether it’s clothing, furniture, or kitchenware, buying secondhand is kinder to your wallet and the planet. RETRO HABITS MAKE MODERN LIFE (AND PRICES) EASIER
Webinars will be presented via Zoom. Registration is required: scan the QR code or call Heather at 650-463-1550. Thursday, July 31, 2025 12:00–1:15 p.m. Wednesday, Aug. 20, 2025 6:30–7:45 p.m. Tuesday, Sept. 2, 2025 12:00–1:00 p.m.
Cheesy Tomato-Basil Stuffed Chicken Inspired by HalfBakedHarvest.com
Ingredients
Directions 1. Preheat oven to 425 F. 2. Slice chicken down the middle horizontally (not cutting all the way through). 3. Spread pesto inside filleted chicken, then stuff with cheese and tomatoes before closing chicken, covering filling. 4. Place chicken in a large oven-safe skillet. Drizzle with oil. 5. Set the skillet over medium heat; cook 5 minutes. 6. Add 1 1/2 cups tomatoes, garlic, balsamic vinegar, and season with chili flakes. Cook 2–3 minutes, then remove from heat. 7. Bake in oven for 7–10 minutes until chicken is cooked through and tomatoes burst. 8. Toss remaining 1/2 cup tomatoes with basil, thyme, salt, and pepper. 9. Serve the chicken topped with fresh tomatoes.
• 4–6 boneless,
skinless chicken breasts • 1/2 cup basil pesto • 1 cup shredded mozzarella cheese • 1/3 cup oil-packed
sun-dried tomatoes, drained, oil reserved
• 2 cups cherry
tomatoes, divided
• 2 cloves garlic, smashed • 2 tbsp balsamic vinegar • Chili flakes, to taste • 1/4 cup fresh basil, chopped • 1 tbsp fresh thyme leaves • Salt and pepper, to taste
So, channel some old-school genius and start living a frugal, intentional lifestyle!
www.FalkBarrot.com
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650-463-1550 www.FalkBarrot.com
865 Laurel Street, Ste. 4 San Carlos, CA 94070 INSIDE THIS ISSUE
1
3 Common Scams to Watch Out For
2
Ways to Win the Retirement Race
Secrets to Spousal Stability
3
Cheesy Tomato-Basil Stuffed Chicken
Old-School Habits That Will Save Your Wallet
4
The Future of UK Forestry
20 MILLION TREES TRANSFORM TOMORROW The Path to a Better Planet
The seeds for the future of our environment have been planted in the United Kingdom.
century. Perhaps most significantly, nearly 75% of the planned Western Forest will consist of farmland, introducing a strong probability of significant economic benefits for the area’s agricultural industry. Shaping a Sustainable Future The Forest of Avon, a UK-based charitable organization devoted to expanding and sustaining trees and woodlands, will oversee the project’s implementation. “[T]he Western Forest will enhance, connect, and improve our urban and rural landscapes, support investment into the region, create jobs and skills opportunities, and bring the endless benefits we get back from planting and caring for our trees,” noted Forest of Avon Chief Executive Alex Stone. “It is a
very exciting time for this region, and we look forward to helping shape what the Western Forest will become.” Positivity Across the Pond In addition to its clear environmental benefits, forestry plays a signature role in the American economy. According to the U.S. Department of Agriculture, forestry activities generate more than $13 billion annually. Additionally, research suggests that strolling through the trees or engaging in other natural settings improves people’s focus and lowers their stress levels. Whether here or abroad, your body and spirit would do well to get out in nature and visit a forest now and then — and by 2050, you’ll have 20 million more reasons to do so.
Earlier this year, the UK government announced the creation of the Western Forest, an initiative to plant 20 million trees over 600 acres by 2050. Spanning Gloucestershire, Wiltshire, and the West England countryside and bolstered by nearly $10 million in government funding, the project aims to reduce greenhouse gas emissions, strengthen biodiversity, help prevent the decline of rare species, prevent flooding, and bring millions of residents closer to nature. In addition to being the first new forest of its kind in the UK in 30 years, the Western Forest project is an ambitious step forward in the government’s goal of increasing tree and woodland cover by more than 15% within the next quarter-
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