Quote for the Day

April 12, 2016 by Leave a Comment

One of 12 reasons Edwin P. Morrow III, J.D., LL.M. gives for keeping assets in a trust rather than distributing them outright to beneficiaries at death, from his outline, The Optimal Basis Increase and Income Tax Efficiency Trust:

A trust allows the grantor to make certain that the assets are managed and distributed according to his/her wishes, keeping funds “in the family bloodline”. Sure, spouses can agree not to disinherit the first decedent’s family, but it happens all the time – people move away, get sick and get remarried – the more time passes, the more the likelihood of a surviving spouse remarrying or changing his or her testamentary disposition.

Filed Under: Asset Protection, Estate Planning, Quote for the Day, Stepfamilies, Trusts

Concealed Carry in Utah and Wyoming

April 11, 2016 by Leave a Comment

So I have a friend who lives in Utah and wants a concealed carry permit. Unfortunately, he still drives on a Wyoming drivers license and doesn’t want to give it up. And because of this, he thought he couldn’t get a concealed carry permit, which is a reasonable assumption if you look at the FAQs on Utah’s Department of Public Safety website, which details what documents must accompany an application for a concealed carry permit:

Utah_DL_2016-04-11_0955

 

Given this state of affairs, my friend decided to try to get a permit in Wyoming, but there he ran into the residency requirement. Thus, unless he surrendered his Wyoming driver’ license or until he moved back to Wyoming, he couldn’t have a concealed carry permit. Or so he thought.

I was explaining this conundrum to my gun-wise son the other day, and he replied, “people from out of state get Utah permits all the time. It’s one of the most reciprocated CCPs in the country.”

At the time, I had only read Wyoming’s law, and I thought it was pretty clear that you needed to be a resident to get a permit there, and I assumed it was the same in Utah, but I decided to check the law in both states to see if I had missed something. Turns out I had.

Wyoming’s concealed carry law does require applicants to be a resident, but the law is not so clear as I had thought. It says, in the relevant part, that “The attorney general through the division shall issue a permit to any person who [among other things]:

Is a resident of the United States and has been a resident of Wyoming for not less than six (6) months prior to filing the application. The Wyoming residency requirements of this paragraph do not apply to any person who holds a valid permit authorizing him to carry a concealed firearm authorized and issued by a governmental agency or entity in another state that recognizes Wyoming permits and is a valid statewide permit; (WS §6-8-104 (b)(i)) (emphasis added)

To me, the bolded part appears to say that a non-resident with a valid permit issued in another state can apply for a Wyoming permit. Apparently, I’m wrong, at least according to the people at the Wyoming Division of Criminal Investigation. According to them, the bolded part means that if someone moves to Wyoming to become a resident and already has a valid permit from their former state, they don’t have to wait six months to apply for a Wyoming permit. Bottom line: you need to be a resident of Wyoming to get a Wyoming permit. My friend was out of luck.

But Utah proved to be a surprise. Though the Department of Public Safety’s website does in fact say applicants need to provide a photocopy of their driver’s license, that is incorrect. In fact, if you click the “download application” link at the bottom of the FAQ, you’ll discover that the actual application says you can provide either a copy of your driver’s license OR a copy of your state-issued ID with your application for a concealed carry permit:

Utah_CCA_2016-04-11_1025

For what it’s worth, I confirmed what I’ve written above with the relevant agencies in both Wyoming and Utah.

My friend was happy to hear the news.

Oh, and in case you’re wondering, my son was correct. Utah will issue permits to out-of-state persons for an additional fee.

 

 

Filed Under: 2nd Amendment, Bill of Rights, Concealed Carry, Firearms, Utah, Wyoming

Concealed Carry Reciprocity

April 10, 2016 by Leave a Comment

In case you’re not familiar with it, the NRA’s website contains a treasure trove of information on concealed carry and reciprocity among states. Here’s what the reciprocity map looks like for those holding Wyoming permits:

Wyo_Reciprocity_2016-04-10_2309

 

Here’s the same map for Utah:

Utah_Reciprocity_2016-04-10_2312

 

Filed Under: 2nd Amendment, Bill of Rights, Concealed Carry, Firearms, Utah, Wyoming Tagged With:

Estate Administration in 25 Essential But Not Always Easy Steps

April 9, 2016 by Leave a Comment

For your reading pleasure, an excellent but brief article titled, “Estate Planning and Administration – Be Prepared for the Year That Follows the Death of a Loved One.” Worthy of a read if only to put you on notice that there’s a lot to do following the death of a loved one.

Here’s the middle paragraph:

Estate Administration is a Process. The estate administration process generally takes one to three years to complete and is supervised by attorneys. There are numerous steps in the estate administration process, including the following: (1) get the executor appointed by the Surrogate’s Court, (2) open an estate checking account, (3) gather assets, consolidate and retitle them in the name of the estate, (4) address claims and expenses, (5) obtain date of death values for all assets, including appraisals for hard to value assets, (6) prepare estate tax returns (federal and state), (7) prepare income tax returns (including decedent’s final life income tax return and the estate’s income tax return, (8) obtain a closing letter and appropriate tax waivers from the IRS and state tax authorities, (9) distribution of the estate and funding of trusts, including allocation of assets among various beneficiaries, and (10) prepare accounting (formal or informal) and obtain receipt and releases from the estate beneficiaries.

Some of these steps may not come into play depending on the size of the deceased’s estate and how it’s set up. Nevertheless, lots to do.

Filed Under: Administration, Attorneys, Estate Planning, Estate Tax, Wealth Transfer

Quote for the Day

April 8, 2016 by Leave a Comment

From the article “Communicating an Estate Plan to Heirs,” posted at Successful Farming at Agriculture.com:

“For some children, money equals love. Therefore, if they receive fewer dollars, they assume they are loved less. With farm distribution, there are times when the farming heir appears to get a financial advantage on paper. Sometimes this may be very legitimate if the farming heir has worked hard and helped to grow the farm. Other times, the truth is that person has just hung around waiting for the farm to fall into his or her lap. Know the difference and be honest with that in your planning, and it will be much easier to explain to all.”

Filed Under: Business Planning, Estate Planning, Family Business, Farms and Ranches, Quote for the Day, Trusts, Wealth Transfer, Wills

April 15 is Fast Approaching. Mistakes to Avoid in the Rush.

April 8, 2016 by Leave a Comment

Six mistakes, actually. This mistake resonated with me because, well, I’ve made it:

Mistake 6: Not Realizing That Stock Can Be Donated Directly to Charity

Cutting a check or hauling your old clothes to Goodwill isn’t the only last-minute way to make tax-deductible charitable contributions. According to Crystal Faulkner, a partner with MCM CPAs and Advisors in Cincinnati, donating stock that you’ve held for more than a year directly to an organization allows you to take a deduction for its full fair market value.

Let’s say, for example, that you wanted to make a pledge of $5,000 to your child’s school. If you sold $5,000 worth of stock in order to make the contribution, you’d have to pay taxes on any gains you realized, then contribute the after-tax proceeds. “But if you instead contribute the security directly to the charity, you are able to deduct the fair market value on the date of the gift as an itemized deduction—and you forever avoid paying tax on the gain,” Faulkner says. “The charity gets more money, and you avoid tax.”

Filed Under: Family Business, Taxes

Divorced? Going through a Divorce? Be Afraid. Be Very Afraid. And Change Your Beneficiary Designations

April 7, 2016 by Leave a Comment

At least that’s the moral of this story. Actually, here’s the moral as stated at the end of that story:

“The moral of the story for practitioners is clear.  Whenever you have a client that is either going through a divorce or is already divorced, do everything you can to get the client to change both his/her beneficiary designations and his/her will as soon as possible.  The results in Smoot and Egelhoff could easily have been avoided with proper planning.”

Read the story and then follow the writer’s advice. Got it?

Filed Under: Divorce, Estate Planning, Life Insurance, Taxes

Quote for the Day

April 7, 2016 by Leave a Comment

Shot:

“For clients who are planning to stay in their homes, a reverse mortgage can be a good source of needed cash flow. This allows them to tap their home equity and supplement their retirement income.

“Additionally, most reverse mortgages are Home Equity Conversion Mortgages (HECM), which are non-recourse loans insured by the FHA. If the balance outstanding exceeds the value of the property, the government covers the difference and the homeowner will not be evicted from his or her home.”

Chaser:

“Fees and costs associated with many reverse mortgages are common and in some cases can be pretty steep. There can also be servicing fees during the life of the loan. They will be included in the amount owed when the mortgage comes due.

“Many reverse mortgages have variable interest rates. The amount you owe could increase significantly if inflation returns and interest rates rise drastically from current low levels. Note that an adjustable rate can work in the borrower’s favor as well in terms of allowing them to borrow funds both at closing and at a later date in some cases.

“The interest on a reverse mortgage is deductible, but only to the extent that it is actually paid. Most reverse mortgages are never repaid, so there is no interest deduction unless the borrower actually writes a check for payment, of which some will be interest and principle. The limit to which an interest deduction can be taken is up to the repayment of $100,000 in principle. If the loan is paid off after the death of the borrower, than whoever pays off the loan—generally either the heirs or the estate—can deduct actual interest paid.

Both quotes are from Reverse Mortgages: When They Make Sense, by Roger Wohlner

Filed Under: Estate Planning, Financial Advisors, Quote for the Day, Reverse Mortgage, Wealth Transfer

Water, Water, Clean Water Act, Everywhere

April 6, 2016 by Leave a Comment

The key paragraph from an article discussing recent oral arguments at the Supreme Court on the Clean Water Act, a case called U.S. Army Corps of Eng’rs v. Hawkes Co., Inc:

“The oral argument focused on whether the Corps jurisdictional determination meets the second condition of the Supreme Court’s test for identifying final agency action in Bennett v. Spear, 520 U.S. 154 (1997) – namely, whether the agency action determines rights or obligations or gives rise to legal consequences. Malcolm Stewart of the Department of Justice argued that the Corp’s opinion regarding whether certain land contains jurisdictional waters does not constitute final agency action because “it does not order any person to do or refrain from doing anything and does not alter anyone’s legal rights and obligations.” Several members of the Court appeared unconvinced, questioning whether the Corps treats the jurisdictional determination as binding. Mr. Stewart argued the determination is not binding on the landowner, who is free to disregard the Corps’ view and conduct the dredging activities. Chief Justice Roberts noted such course of action would be “a great practical risk.” Mr. Stewart responded that the other alternative is for the landowner to seek a permit. Justice Ginsburg replied that the permit process is “very arduous and very expensive.” Justice Breyer later summed up the alternatives:

One, spend $150,000 to try to get an exception and fail, or two, do nothing, violate it, and possibly go to prison. Those sound like important legal consequences that flow from an order that, in respect to the Agency, is final, for it has nothing left to do about that interpretation. And [] is perfectly suited for review in the courts.”

This case bears watching, given its implications for any and every farm and ranch with a puddle within its fences.

By the way, if you’re interested in listening to the oral argument in this case, go to Oyez.org, the place for watching, er, listening to the Supreme Court in action. I count it as one of life’s little pleasures.

Filed Under: Constitution, Farms and Ranches, Water and Water Rights Tagged With:

Quote for the Day

April 6, 2016 by Leave a Comment

“Even though you’ve paid taxes that help fund Medicaid for all your working years, you shouldn’t aspire to get a return on that “investment.” Medicaid is a program for people with minimal income and assets; if you have to use it, you’re in bad shape. Eligibility guidelines vary by state because Medicaid is a joint federal-state program. But to give you an idea, getting Medicaid through ACCESS Florida as an individual who is 65 or older and needs long-term care requires that your monthly income be no higher than $2,199 and your assets be no more than $2,000 ($5,000 in some cases).”

Any Fontinelle, Investopedia

Filed Under: Estate Planning, Insurance, Long-term Care, Quote for the Day
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