Sheppard, Brett, Stewart, Hersch, Kinsey & Hill - November …

Sheppard, Brett, Stewart, Hersch, Kinsey & Hill - November

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Welcome to the Family Celebrating Connections in the 95-Year History of Our Firm

W hen you look at the history of The Sheppard Law Firm, you can’t help but appreciate the working relationship between partners Craig Hersch and Michael Hill. As Craig likes to say, he’s a big-picture strategist, whereas Mike thrives in engineering solutions to complex problems.“I think of Mike as a little brother,” Craig says.“We compare notes on how to better serve our clients into the 21st century. Our unique abilities work very well together.” In 1992, John Sheppard hiredme away from another firm. At the time, John led his well-respected, 68-year-old family firm. He foundme to pass on the estate planning portion of his practice as he prepared for retirement. He was tomentor me for two years before bowing out. But, as Christmas of my first year approached, he apparently had other ideas. “You’re doing great,”John said.“I’mgoing to leave by Christmas.”Dumbfounded, I realized that meant the success of our firm and our clients would squarely land onmy 28-year-old shoulders in just 10 days. I was a young attorney who would suddenly have to fill the shoes of a wise and experienced veteran who was revered in our community. The Big Picture Strategist—Craig’s Story

Fast forward 10 years from John’s retirement, whenmy practice grew to the point where I neededmore help. Thankfully, I found Mike. He has great legal skills, and his technical skills improving our technology are second to none.

The Process Engineer—Michael’s Story

When I first joined our firm in 2002, I was a recent law school graduate with an undergraduate degree in accounting. I’d never been south of Tampa. While I originally accepted a position with a different law firm, when this opportunity arose, I couldn’t pass it up. Curious to know how I would fit in, I casually asked Craig,“Do you have enough work for me to do?”In response, he sent an avalanche my way. From the time I first sat down at my desk, which at the time was only a folding card table, I was inundated. I learned what made this firm successful. I’ve added to that by introducing systems and technology that better connect us to our clients. Soon we’ll introduce improved websites that contain all the information our clients want. More importantly, our firm remains dedicated to our team’s families as well as those of our clients. We’ve watched each other’s children grow up, supported one another through life cycle events, and together celebrated our greatest achievements. Recently, our family was tested. In September, Craig was suddenly out of the office because of heart surgery. We thrived in the face of adversity, supporting Craig through his recovery. We’re glad to have himback at full speed. Like the big brother he is, Craig mentored me as John Sheppard did him. He even introduced me to his love of triathlons. At our first event together, while swimming a mile in a windy, choppy Tampa Bay, I wondered what exactly he got me into! But, like swimming through turbulent waters, I always know one thing is for certain:

I didn’t sleep for the next three years.

But, John was right. I usedmy tax law training and CPA license to ramp up the level of estate planning services we offered. Our capabilities increased as no client problemwas too difficult to handle. We were also careful tomaintain the family atmosphere our clients enjoyed.

We’ll be there for each other and our clients.

Craig and Mike

1 (239) 265-9779

November 2019

Don’t LetMoney Get in the Way Of Your Grandchild’s Education

College expenses aren’t what they used to be. What used to be affordable to any student with a part-time summer job now can take years to pay off. If your grandkids want to go to college, the cost of education should not be a barrier to their future. Luckily there are ways that you can help ease that financial burden. Invest in a 529 savings plan. There are no limits on age, income, or monetary contributions attached to this college savings account, and contributions are tax-deductible in some states. Just like a Roth IRA, the earnings

grow over time and can be used tax-free for qualifying expenses, like tuition and room and board. There are a few downsides, however. Funds from a grandparent’s 529 savings plan are considered student income and could hurt your student’s eligibility for financial aid. If you choose to fund through a parent’s 529 savings plan, which doesn’t count as student income, you lose control over the funds you contribute. Pay their tuition. Not everybody has $20,000 just lying around, but if you do, using it to pay for your grandchild’s tuition isn’t a bad way to spend it. Normally, annual financial gifts that are exempt from the federal gift tax can’t exceed $15,000, but payments toward someone’s tuition, for any amount, are not taxed. Keep in mind, however, that the money can only go toward tuition, not toward other college expenses like room and board or textbooks. Help them find opportunities to save. Even if you don’t have thousands of dollars to give, you can still help your grandkids look for other opportunities to save. There are thousands of available scholarships, grants, and programs to help students pay for college, and helping them look online and in your community can go a long way. College could be your grandchild’s first stop on the path to achieving their dreams. You can be a part of that journey by making sure money doesn’t get in the way of that. website for specific plans about the donations, and confirm the charity exists through Give.org. Follow the Money Making a monetary donation is one of the easiest ways to help others this holiday season, but, before you put your cash toward a faux cause, consider how you’re asked to pay. The BBB recommends donors avoid transactions that are impossible to trace or get your money back. These include wire transfers, payments to third parties, and prepaid cards. Instead, hand your money directly to an organization via a well-known, secure method. Give Responsibly Don’t give up if you find a sham charity! First, report it to law enforcement. Then, find a verified charity that does the same work as the false organization. The fake puppy rescue that emailed you may not be real, but animal shelters and local rescues are. That organization promising to help children get their next meal may be a sham, but local food shelters, community meals through churches, and school lunch programs do exist. You can always find an alternate —and safer —choice. Do a little digging in your own community and avoid a scam, so your money helps the people you want to help.

Avoid Getting Scammed When You Give Back This Holiday Season

‘Tis the season of giving, and perhaps no one is as excited about the increased spirit of generosity than thieves. As you help others this holiday season, heed these warnings from the Better Business Bureau (BBB) to prevent con artists from scamming you out of your money. Discern Reality vs. Fiction Thieves have no limit on what they’ll do to steal, and setting up fake charities is not beyond their“ethics.” It’s not uncommon for fake charity organizations to

ask for donations from kind- hearted citizens who just want to help. These“groups”will often start online fundraising campaigns and generate shares on social media. Before you are swept up in the emotion of giving, verify that the group is serious. The BBB suggests you review the organization’s

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Helping Your Family Feel Secure Possible Changes to IRA Distribution Law

You may not know that Craig is a prolific writer. He not only writes a weekly column for the Island Sun Sanibel, but he’s also on the editorial advisory board for Trusts & Estates magazine, which is a national trade journal. You can read the columns on our website at SBSHLaw.com. Read on for an overview of a recent column on a new tax law that could affect many families. Congress is set to send a bill that would drastically spike middle-class taxes on IRA accounts to the president’s desk for signing. The Setting Every Community Up for Retirement (SECURE) Act would raise the required age for personal IRA distribution from 70 1/2 to 72, but it’s what the bill takes away that could change your family’s future. In exchange for raising the required withdrawal age to 72 and a few other benefits for employers, the law would require non-spouse beneficiaries of “Inherited IRA accounts” to pull out all the money within 10 years of your passing. Your beneficiaries would pay higher taxes because their withdrawals would be larger.

• A $1 million Inherited IRA would require withdrawals of $100,000 annually, pushing the beneficiary up to a higher tax bracket. If the beneficiary lives in a state with state income tax, more than half of that distribution could be lost to taxes. (Florida does not have a state income tax, but many of our clients’ beneficiaries reside in states that do.) • For beneficiaries with college-age children, financial aid applications may be affected. Because the beneficiaries’ income would increase due to higher distributions, aid formulas would require greater parental contributions toward their children’s education. Similarly, Inherited IRAs left to college students could have the same result. As of this writing, the bill has not yet become law although it is expected to do so. For those clients who are in our Client Care Program, watch for your year-end package where we’ll keep you up to date. For those Client Care Program clients who we’ve helped with Retirement Plan Legacy Trusts, we’ll also prepare educational materials and updates advising you as to possible solutions and alternatives once this new law passes.

To put this in perspective, consider these scenarios.

e n B e a n s W i t h

SUDOKU

Ginger and Garlic

Turkey is, for the most part, a healthy and lean protein. Thanksgiving sides, on the other hand, tend to be a little more indulgent. This year, eschew the classic, creamy green bean casserole in favor of this lighter, healthier, and altogether tastier option.

INGREDIENTS:

2 lbs whole green beans, ends trimmed 6 tbsp extra-virgin olive oil

1/2 tsp ground ginger 1 tsp crushed red pepper Kosher salt, to taste

2 garlic cloves, thinly sliced

1. Bring a large pot of salted water to a boil. To the side of the stove, prepare a large bucket of ice water. 2. Cook beans in boiling water for 4 minutes. Immediately transfer to ice water. Drain and pat dry. 3. In a large skillet, heat oil over medium-high heat. Add garlic and cook until fragrant, 30 seconds. Stir in ground ginger and crushed pepper. Add green beans. 4. Cook together for 2–3 minutes. 5. Transfer to plate and serve.

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INSIDE this issue

Becoming a Family: Our Firm’s Story...............................1

3 Strategies for Helping Grandkids Pay for College.....2

Tips to Avoid Holiday Charity Scams.........................2

Giving You Peace of Mind......3

Green Beans With Ginger and Garlic....................3

Thanksgiving Dishes Your Table Is Missing..............4

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When you think of Thanksgiving food, the first dishes that pop into your mind are probably turkey, mashed potatoes, and green bean casserole. They’re a part of nearly every Thanksgiving meal. And while these delicious foods are something you don’t want to skip, there are dishes your table is sorely missing — dishes that don’t get the respect they truly deserve. This Thanksgiving, why not take a look at a few other options? Soup This is one dish that rarely hits the Thanksgiving table. But try a butternut squash or broccoli cheddar soup and you’ll be surprised just how“at home” it feels among the rest of your spread. It’s perfect to serve ahead of the main course, as the final touches are put on the turkey, or when the green bean casserole needs a few more minutes in the oven. Brussels sprouts These tiny greens often get overlooked during Thanksgiving, but with

the right accompaniment, they can make for an extremely tasty and nutritious dish. For example, try roasting halved Brussels sprouts with dried cranberries and bacon, drizzled with a raspberry balsamic vinaigrette. Sausage Put a creative spin on your traditional Thanksgiving dishes and try using sausage in the stuffing. An Italian sausage, for

instance, adds a kick of flavor to any stuffing, homemade or from the box. You can also experiment with other kinds of sausage to find the flavors that best complement your stuffing. Use a sweet sausage when you need

something to pair with a stuffing that incorporates apples. Cranberry sauce This Thanksgiving staple rarely gets the attention it deserves. While it’s easy to buy a can of cranberry sauce, you do your guests a culinary disservice by going this route. Instead, make your own cranberry sauce. There are many recipes online, and all you need are some fresh or frozen cranberries, orange juice, and sugar to make the best cranberry sauce of your life.

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