When Is the Best Time to Establish a Simple Will or Trust?

Planning ahead through establishing simple wills and trusts is a great way to set your mind at ease. Life it to short and you never know what lies ahead.

Typically, the last thing people want to think about is establishing a simple will or trust. Parents with young children are often busy and avoid making an estate plan a top priority. The years can quickly pass by, leaving families with nothing in writing identifying how they would like their estate handled, their property distributed and even who they would like named guardian of their children based on an unexpected circumstance.

Understandably, clients often wonder when is the best time to begin planning for the future. As a rule of thumb, I recommend for parents to consider establishing a simple will or trust the first time they plan time away without their children. This is an ideal opportunity for parents to list in writing a guardian for their children, if anything were to happen to them.

Establishing a will or trust early on can provide families with the peace of mind knowing that important details are covered. Ultimately, a simple estate plan can help families avoid potential disputes with a clear understanding of how the transfer of property and other important details of an estate plan should be handled.

The only time that you can prepare and implement an estate plan is while you are alive and have legal capacity to enter into a contract. If you are unable to manage your own affairs or suffer from some other disability that affects your legal capacity, your estate plan may be effectively challenged. Others may assert that you lacked capacity at the time you created the plan, or that you were subjected to fraud, coercion, or undue influence during the creation and implementation of your plan.

To prevent these kinds of challenges, the best time to start an estate plan is now, while you have the capacity to do so.

Do I need a trust if I’m young and healthy?

YES!!!. At this stage in your life, your main estate planning goals are probably making sure that in the unlikely event of your early death, your property is distributed how you want it to be and, if you have young children, that they are cared for. You don’t need a trust to accomplish those ends; writing a will, and perhaps buying some life insurance, would be simpler.

You should have an estate plan if:

• You are the parent of minor children
• You have property that you care about
• You care about your health care treatment.

If you do not have minor children, do not care about your property, and have no concerns about your health care treatment, then you do not need an estate plan. But if you meet any of these categories above, you should have an estate plan.

Contact for Assistances

If you need help preparing and organizing affairs, or have questions please seek a trusted professional.  Feel free to visit us as well.

Melissa M. Van, EA at info@aabsinc.com or visit www.aabsinc.com

FOOTNOTE: Excerpts  re posted from the www.aabsinc.com website written by CPA site solutions.

Feb Newsletter

 
Feburary Tax News letter BY AABS

Automated Accounting & Bookkeeping Services Inc Read Our Newsletter Financial Calculators Tax Center

News From AABS By now you should be getting all your tax papers in the mail or on line, remember there is  $25.00 off if you turn in your paper work by 2/15/11. And If you plan on preparing yourself please take advantage of our new interactive website, full of resources, financial calculators and FQA’s. There is even live chat and video conferencing availbale to you. Please come visit us on Facebook and twitter for uptodate tax inforation and special web discounts. Now enjoy your first AABS Newsletter with information to help make this season less stressful. If you have any suggestions on what you want to see in upcoming newsletters, please let us know. We want to be your source for all your financial needs. Featured Article For February, 2011 How to Avoid Identity Theft During Tax Season Unfortunately, tax season is prime time for scams. From phony Web sites to fake IRS e-mail and the threat of computer viruses, this is a good time to be extra careful online. This article covers the various tactics used by today’s scammers – and how you can protect yourself. Tax Tips Tax Deadline – April 18, 2011 7 Tips for Preparing Your Taxes Without the Stress Missing Your Form W-2?   Financial Planning Tips Review Your Savings Plan Review Your Retirement Plan Review January’s Budget vs. Actuals Collect Your Tax Information Tax Due Dates February 10 Employers – Federal unemployment tax. File Form 940 for 2010. This due date applies only if you deposited the tax for the year in full and on time. Employers – Social Security, Medicare, and withheld income tax. File Form 941 for the fourth quarter of 2010. This due date applies only if you deposited the tax for the quarter in full and on time. Small Employers – File Form 944 to report Social Security and Medicare taxes and withheld income tax for 2010. This due date applies only if you deposited the tax for the year in full and on time. Farm Employers – File Form 943 to report Social Security and Medicare taxes and withheld income tax for 2010. This due date applies only if you deposited the tax for the year in full and on time. Certain Small Employers – File Form 944 to report Social Security and Medicare taxes and withheld income tax for 2010. This tax due date applies only if you deposited the tax for the year in full and on time. Employers – Nonpayroll taxes. File Form 945 to report income tax withheld for 2010 on all nonpayroll items. This due date applies only if you deposited the tax for the year in full and on time. Employees – who work for tips. If you received $20 or more in tips during January, report them to your employer. You can use Form 4070. February 15 Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in January. Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in January. Individuals – If you claimed exemption from income tax withholding last year on the Form W-4 you gave your employer, you must file a new Form W-4 by this date to continue your exemption for another year. Employers – Begin withholding income tax from the pay of any employee who claimed exemption from withholding in 2010, but did not give you a new Form W-4 to continue the exemption this year. February 28 Businesses – File information returns (Form 1099) for certain payments you made during 2010. There are different forms for different types of payments. Use a separate Form 1096 to summarize and transmit the forms for each type of payment. See the 2010 Instructions for Forms 1099, 1098, 5498, and W-2G for information on what payments are covered, how much the payment must be before a return is required, what form to use, and extensions of time to file. If you file Forms 1098, 1099, or W-2G electronically (not by magnetic media), your due date for filing them with the IRS will be extended to March 31. The due date for giving the recipient these forms is still January 31. Payers of Gambling Winnings – File Form 1096, Annual Summary and transmittal of U.S. Information Returns, along with Copy A of all the Forms W-2G you issued for 2010. If you file Forms W-2G electronically (not by magnetic tape), your due date for filing them with the IRS will be extended to March 31. The due date for giving the recipient these forms remains January 31. Employers – File Form W-3, Transmittal of Wage and Tax Statements, along with Copy A of all the Forms W-2 you issued for 2010. If you file Forms W-2 electronically (not by magnetic media), your due date for filing them with the SSA will be extended to March 31. The due date for giving the recipient these forms is still January 31. Employers – with employees who work for tips. File Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips. Use Form 8027-T, Transmittal of Employer’s Annual Information Return of Tip Income and Allocated Tips, to summarize and transmit Forms 8027 if you have more than one establishment. If you file Forms 8027 electronically (not by magnetic tape), your due date for filing them with the IRS will be extended to March 31. Farmers and Fishermen - File your 2010 income tax return (Form 1040) and pay any tax due. However, you have until April 18 to file if you paid your 2010 estimated tax by January 17, 2011.   FacebookTwitterLinkedin Video Chat   Text Chat     Email Updates     RSS Feed Print This Page Contact Us AABS/Owav PO BOX 1677 Apex, North Carolina 27502 Add us to your address book

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Savings Challenge- Homework answers

As I am on my journey to save money both personally and professionally i have answered the questions from yesterday.

Where Do I want to be 1, 5 and 10 years from Now?

1 year from now I would like to have 5 new monthly clients (thus spending will be an issue for advertising)

5 years from now I would like to be debt free and 10 monthly clients

10 years from now I would like to have money in a reserve savings account.

In my current situation where am I over spending?

With out looking at your books your intuition tells you where you are at. Mine are the following:

• I am $10 to death with subscriptions
• Bank Fees
• Advertising avenues to many
• Eating out with clients and entertaining

What simple things can I start on Monday?

• cancel all unnecessary subscriptions
• make a plan to not eat out with every invitation. A coffee meeting will be just as good.
• and Finally actually look at my books. I bet I can find other simple stuff.

Print your answers and post them. Look at them daily. Start simply. Together we can achieve. I am looking forward to seeing some of your answers.

Savings homework

In an effort to assist small business succeeding in this tough economy, I am going it give you some home work to think about this weekend.

Being a small business myself and having been hit with the bad economy and loss of clients, I have had to re evaluate my business and business future. As with my indivudual finances I am going to have to buckle down on the business

No writing I just want you to go outside sit in your favorite spot and THINK. Only Think.

Where Do you want your business to be in 1 5 and 1o year?

In my current situation where am I over spending?

Answer this from the Heart You KNOW where you have spent and where you can save.

What simple things can I start on Monday?

This is it for this weekend.

Saving is not just for the personal Budget

In today’s economy everyone is pinching the pennies. This should go for the small businesses as well.

Many businesses free spend depending thinking

• That big account will come in.

• If I build It,  it will come (yes from Field of Dreams)

• You have to spend money to make money.

These cliques’ have some validity, but be a smart business owner and do it moderation. When businesses subscribe to this line of thinking 100%, they are headed for failure not Success.

Why don’t businesses use the same tack as individuals do?

• Money IN money OUT.

• Plan , plan plan

• Always put some money aside

The First step in good money management is Plan for the future. This means if you know you have to buy a big capital expenditure like computers, buildings, equipment or inventory, Plan For it. Always put some away in a separate interest bearing account. Pay for most of it with cash.  I personally subscribe to Dave Ramsey’s idea “CASH IS KING”.

Yes I know many businesses buy on credit and or lease and that is not ALL bad but do it in moderation.  You never know when you will lose that big client. (Don’t’ put all your eggs in one basket). The roll of thumb is Don’t Finance anything over 25% of the total cost.

I will be doing a series on budgeting and Savings for the Small business Person. Please watch for more. Ideas and follow my website for great financial tips and calculators to help with your savings goals.