Last Minute Tax Tips

Re-print from Farmers Insurance

Tips to save April 17th is approaching

This year April 15th is on Sunday so the Internal Revenue Service extended the 2011 tax filing deadline to April 17th.1 That’s two extra days but many of us are still not prepared or even preparing. Don’t panic; there’s still last-minute strategies that may help to positively impact your 2011 tax return. Here are some tips you may wish to consider: 

• Contribute to a traditional IRA — If you are eligible to make tax-deductible IRA contributions — eligibility depends on your income and whether or not you participate in a pension, 401(k) or similar qualified plan — it’s not too late to make your 2011 contribution. Just contribute before April 17th and specify that you are making a 2011 contribution. Consider making a contribution even if it’s not tax-deductible.
  

Life Insurance: Making Sure It Helps, and Doesn't Hurt, Your Estate Tax Liability

The blog below is meant for real Farmers, but the advice is still good for everyone, including our Farmers Insurance clients.

If you're worth more than a one million dollars in assets, it's time to talk to a lawyer to set up a trust that will own your insurance to avoid paying too much in estate (death) taxes.

I'm of course not giving specific legal or tax advice, you need to consult in person about specifics.  I'm just pointing out a potential need many think they don't need to address.  The tax laws will change again in 2013.

The trust would of course require the services of a good attorney.

When you read the article, replace "farm" with the name of your business, and "farmer" with "business owner".


Read below:



Top Estate Planning Mistakes Farmers Make - Part 2

(www.AgWeb.com) - Mar 09, 2012

Continuing our post from yesterday:

• "I am worth less than $5 million, so who cares?" Well, for one thing, your spouse might care. We have a new estate planning opportunity called portability which allows the unused estate exemption to be transferred to the surviving spouse. Let's assume you passed away in 2011 worth $3 million. If you did not file a return, the extra $2 million is permanently lost. So if your spouse dies in 2012 suddenly worth $7 million (especially if you left her everything in a "I love you" will), she would owe $700,000 of estate tax that she did not need to pay. Many farmers forget to include life insurance that they own in their calculations. They might have an estate of $4 million, but $2 million of life insurance. They think they are worth only $4 million, when they are really worth $6 million.
  
• Lack of Liquidity -- Farmers are great at creating nonliquid net worth (farmland, equipment, etc.), but not as good at creating liquid assets to pay estate taxes. Do you know how much your estate is going to cost your heirs and where the money is coming from? Will it negatively impact the farm operation?
  
• Proper Ownership of Life Insurance -- If you own or control the insurance, it is included in your estate. Have you considered setting up an irrevocable trust to own the insurance? This gets the proceeds out of your estate and provides liquidity for the estate or income to your spouse for his or her lifetime. 

end of blog


Click here to read original blog.


Consult with a Farmers Insurance agent such as myself to make sure your life insurance and income protection needs are met, and that you minimize taxes at the same time.



Other life Insurance themed blogs:
Charitable Giving with Life Insurance.
Life Insurance is Income Protection.
Remembering your Church with Estate Planning.
The greatest need: Single Parents.
Families with Special Needs Children.
British Royal Marine spends a message with his life insurance.
Advanced LUTCF Training for Platinum Elite Team Members.
Life Insurance Awareness Month & Lamar Odom.
The Romance-O-Meter: Insure Your Love.
Taking care of your children...and furry dependents.


* The content of this blog is for informative purposes only. It does not reflect official standing of any agent, agency, or company mentioned on the blog. Nor is this blog necessarilly an endorsement. Please consult with your insurance, tax, or legal specialist before making any decisions. This blog is purely meant to spark the thought process.

From the Horse's Mouth: Protecting Your (Furry) Dependents

"What will happen to us when you're gone?"

The following conversation could happen between you and your children, or other dependents, and even with your pets...if they could talk.  

For now, we'll have to let Mr. Ed speak for them all.

Talk with a legal adviser to set up the proper trust document, that way when your life insurance pays out, the money is legally spent to protect and provide for your children, spouse, parents, grandchildren, and yes, pets, as you see fit.  Otherwise, they spend it as they wish.

A will doesn't quite to it right.

Then talk with a Farmers Insurance Professional like myself to set up the life insurance funding (with the right beneficiaries) for those trust agreements.

Kevin Tuckey

3675 Ruffin Rd.

Ste 220

San Diego, Ca  92123

(858) 751-1357

California License #: 0B72553

Some of our other pet related blogs:
Home Safety: Make Your Yard a "No-Bite" Zone This Summer.
Make Pet Micro-chipping a Part of Disaster Preparedness.

Benefits for those who take in Rescue Dogs.  Includes info on "pet trusts".

Other life Insurance themed blogs:
Charitable Giving with Life Insurance.
Life Insurance is Income Protection.
Remembering your Church with Estate Planning.
The greatest need: Single Parents.
Families with Special Needs Children.
British Royal Marine spends a message with his life insurance.
Advanced LUTCF Training for Platinum Elite Team Members.
Life Insurance Awareness Month & Lamar Odom.
The Romance-O-Meter: Insure Your Love.


* The content of this blog is for informative purposes only. It does not reflect official standing of any agent, agency, or companies mentioned on the blog. Nor is this blog necessarily an endorsement. Please consult with your insurance, tax, or legal specialist before making any decisions. This blog is purely meant to spark the thought process.

Charitable Estate Planning Seminar Open to the Community

Addendum (2/27/12):  Here are a few bits of info, or ideas, I picked up at the Estate Planning Seminar from below.

1.  Have you remembered to include your favorite school, church, or charity as an additional beneficiary on your life insurance?  You can leave them a set amount, or a percentage.  Like your family, you can still support them after your passing.

2.  Did you know you can add a "preamble" to the beginning of your will to be read to those who attend the reading?  It's a way to make a final state of love to your family, an expression of your faith, or give final instructions.

3.  Five documents you should complete before you become sick or disabled, or pass away.

     a.  Your Will

     b.  A Will with a Revocable Living Trust  -  helps avoid probate and the trust allows you to leave instructions on how to support your family, school, or church.

     c.  Durable Power of Attorney for Financial Matters

     d.  Power of Attorney for Health Care / Advanced Directive

     e.  HIPAA Release  -  Designates someone to control your medical info & records if you cannot.  Dr's and hospitals are more and more hesitant to give out medical info in fear of violating HIPAA guidelines.

As always, consult with a legal professional on how to complete these steps if interested.  This article is in no ways is a complete guide on all the consideration you need to take in matters of estate planning.

Originally Published 2/24/12

Ever wanted to support your favorite church or charity to a greater extent than you already are?

Do you want your good works to live beyond your years?

How about tax benefits for doing the right thing?

Want advice so you do it right?

My church is holding a free Estate Planning Seminar open to the community.  While it uses Christian based teachings as it's foundation, the tax and financial based rules apply to any family or charitable situation, just a different beneficiary.


What:   Christian Estate Planning Seminar

When:   Sunday, February 26, 2012, 9:15am - 10:15am

Who:     Rev. Rich Kogler, WELS Ministry of Planned Giving Counselor, will be leading this Christian estate planning seminar in between our usual services.  

Why:  If you always wondered about such things, and would like to be more informed, attend and get some questions answered.  Everyone's welcome.  All ages would benefit from this seminar. 

Where:   Risen Savior Lutheran Church, 625 Otay Lakes Rd., Chula Vista,  Ca  91913
(click HERE for facebook page)

Life Insurance Is Income Protection

Life insurance can help fill the gap
Reprint from Farmers Insurance

Did you ever think that life insurance could be a valuable tool during your working years as well as after? Interestingly, life insurance can be a useful tool for many individuals and families who are approaching retirement as well as for those who are already retired.

Most of us buy life insurance to replace the loss of income that would occur should we die or to create an estate for our loved ones (click here see accompanying Did You Know article), but there are many other reasons:

  

• You have an aging parent or disabled relative who depends on you for support 
• You have a large estate and expect to owe estate taxes 
• You own a business and have a partner 
• You have a substantial joint financial obligation, such as a personal loan for which another person would be legally responsible after your death 

Life Insurance and Retirement
Many retired couples depend on Social Security and pension income to survive. When one spouse dies, those payments may be reduced — survivor benefits are often much lower than retiree benefits — while many of the ongoing expenses remain for the survivor. You can help protect your surviving spouse from this reduction in income with life insurance. The death benefit can replace your missing income so a personal loss does not become a financial one as well.

Call us — I can help you analyze your individual situation so you can determine your life insurance requirements and decide whether your coverage is appropriate for your needs and your family. 

Life insurance issued by Farmers New World Life Insurance Company,

Mercer Island, WA 98040.
Products and features may not be available in all states and may vary by state.

From Etta James to Michael Crichton to Brittney Spears to Stieg Larsson, Celebrities Remind Us of the Need for Financial, Estate, & Legal Planning

This article recently appeared in Forbes on 1/24/12.  Even though you may not have the money of a celebrity, you might still have the same financial concerns and vulnerabilities.

Stieg Larsson, the author of Girl with the Dragon Tattoo, found most of his fame and fortune after his death.  This has lead to a prolonged legal fight he never foresaw, but could still have prepared for regardless of his asset level.

Please take a few minutes to read this article.

Etta James, Others Remind of Need for Estate Planning in 2012

A few weeks into the new year, how many of your New Year’s resolutions have already fallen by the wayside?  Exercise more. Eat less.  Spend more quality time with family.

Well it’s not too late to tackle a very important resolution that up to two-thirds of adults in our country ignore — estate planning. That’s right, it’s the topic no one likes to think about, but everyone knows they should take care of … wills, trusts, powers of attorney, and more.

It doesn’t have to be intimidating! In fact, celebrity stories are a great way to break the ice to remind everyone of what they need to do.

So, with the help of some recent stories in the news, here are Trial & Heirs: New Years Estate Planning Resolutions for 2012.  (We just gave an interview discussing some of these stories, which you can watch here).

1.  Plan Now and Don’t Procrastinate.

R&B legend Etta James was 72 when she passed away last week, after suffering from leukemia, dementia and other problems.  Canadian Olympic skier Sarah Burke was only 29 when she died recently from injuries in a freak skiing accident, despite being one of the top athletes in the world.  It’s a sad reality that accidents and serious medical conditions can affect any of us, at any time.  We all need to be prepared.

While it’s easy to procrastinate doing a will, trust or other legal document, the consequences can be devastating.  Take author Stieg Larsson, whose Girl With The Dragon Tattoo book and sequels achieved global success.  The recent Hollywood movie adaptation has grossed over $140 million worldwide since it was released a month ago.

Larsson died without even a will.  This sparked a huge lawsuit between his live-in girlfriend of 32 years and his brother and father, whom the girlfriend claims were not close with Larsson.  The family members inherited his now-vast estate (conservatively estimated at $40 million) and sued because the girlfriend has possession of a laptop with an unpublished fourth manuscript. You can read about the Larsson Estate lawsuit here, which remains unresolved.

Larsson died unexpectedly at the age of 50 from a heart attack.  His procrastination with his estate planning means he did not get to decide whether his girlfriend or his family members inherited his estate.

To read the rest of the article, click HERE.

Consult with the appropriate Financial, Insurance, and Legal Professionals to start the planning process.  Be sure to keep your loved ones involved so you don't have to worry later.

Many of those stuck on the sinking cruise ship off Italy were calling family not just to say they loved them, but to tell them where the wills and insurance policies were hidden.  Tell them before its a concern.


* The content of this blog is for informative purposes only. It does not reflect official standing of any agent, agency, or company mentioned on the blog. Nor is this blog necessarilly an endorsement. Please consult with your insurance, tax, or legal specialist before making any decisions. This blog is purely meant to spark the thought process.

Planning When You Have Special Needs Children

Originally published on Why Platinum?

Financial preparation is important for any family with children.  When one of the children is special needs, the needs is amplified.

What if the parent(s) or guardian are killed or incapacitated?

Will the new guardian be able to financially, emotionally, and legally be able to take care of the disabled child the same way their mother and / or father can?

Always a tough situation, there are steps that should be taken to minimize the devastation that will occur for the special needs child when their parent or guardian is gone.  The following information is by no means a complete description of what needs to be done for every family since needs and situations differ, but it can be a good guide on where to start and what to consider.

Please consult with legal council or insurance / financial professional where necessary.

Life Insurance: Buying life insurance is a great way to leave an income source to a dependent who needs support until they can support themselves.  With a child with special needs the inability to support themselves could stretch well into adulthood or even their lifetime.  

Realistically, how many years of income will be needed, and how much per year?  18 or 21 may not be the goal in this case.

Will Government support be enough?

Can the guardian you've chosen to help your child financial afford to take on that responsibility?  They might want to, but can they?

Life Insurance on the lives of the parents or guardians is a key step to take.

Other steps to consider:

• Create a last Will and Testament:  A will should outlines how you want your assets (estate) distributed. Have a lawyer guide you through the process. This is not the time to Do-It-Yourself. Leaving assets to a special needs child directly may jeopardize any government aid they receive such as Social Security, MediCare, or Medicaid / MediCal.  So make sure your attorney helps you figure out if you should designate someone to take care of the estate.  In these cases a Will is not enough.  See Trusts below.
  
  
  Don't NOT buy insurance out of the fear of losing government support.  Do it the right way instead.  Government support with current government budgetary problems could make future support unreliable.
  
  
• Decide on the right Guardian(s): Appoint a trusted and responsible adult to make financial & medical decisions for the special needs child.  You might need to choose a short term and a long term guardian.  Example: the grandparents might be the best choice, but for how long?
  

Charitable Giving with Life Insurance

Americans are generous people and many regularly contribute to charities and non-profit organizations. People choose to give to charities for many reasons, most of them personal. Often, however, charitable giving provides help to those less fortunate than ourselves. Life insurance can be a particularly versatile and valuable asset to help you give to your favorite charity because it may help you make a more substantial contribution than might otherwise be able to afford. 

There are several methods for including life insurance in a charitable gift plan, some more complicated than others and each with its own potential advantages, disadvantages and tax implications. Keep in mind: The gifting technique appropriate for you depends on the size of your estate, the make-up of your assets, your current estate plan and a number of other factors. Consult your tax advisor before proceeding. 

Here are two of the more popular life insurance gifting techniques: 

1.  Gifting or donating a policy — Many people find that their life insurance needs decrease over time. If you have more life insurance than you expect to need, you may want to consider donating a policy to a charity. Gifting or donating a life insurance policy can greatly reduce the donor's taxable estate which can save thousands of dollars in estate taxes for upper-income taxpayers. 

In order to realize the full benefit of this gift, you must make sure that you retain no "incidents of ownership." For example, you must actually deliver the policy into the possession of the charity, and you must assign all rights in the policy to the charity, making it the owner of the policy as well as its beneficiary and giving it sole control over the policy's cash value. Discuss this gifting technique with your tax advisor so you can decide if this approach is appropriate for you. 

2.  Naming a charity as beneficiary — Naming the charity of your choice as the beneficiary of your life insurance policy may be the simplest way to provide the charity with the death proceeds of a life policy. You simply pay your monthly premiums and, upon your death, the full face value of your policy is contributed to that organization as a charitable gift. Again, consult with your tax advisor before proceeding to be sure you understand this approach to gifting. 

A lasting legacy 

When you gift a policy outright or name a charity as beneficiary, you can provide the charity of your choice with a large sum of money that can help to provide a lasting legacy for a cause that you believe in. 

For more information on the use of life insurance as a gifting tool speak with your tax or legal advisor. If you decide to purchase a life insurance policy please call me — I can work with you so you are sure that you have the coverage you want. 

This material is for general informational purposes only and is not legal or tax advice. The material may not reflect your particular circumstances. Please consult your tax or legal advisors for advice specific to your situation. 

Life insurance issued by Farmers New World Life Insurance Company, Mercer Island, WA 98040.

end of article

source: Farmers Insurance

Other life Insurance themed blogs:

The greatest need: Single Parents

Families with Special Needs Children

British Royal Marine spends a message with his life insurance

Advanced LUTCF Training for Platinum Elite Team Members

Life Insurance Awareness Month

The Romance-O-Meter: Insure Your Love

"We Are Farmers!"

Always make sure your auto, fire (home, condo, & renters), earthquake, flood, umbrella, and life insurances all properly work together to protect your home, your business, your family, your future.

Members of the Platinum Elite Team:

Susanne Romo

Chula Vista & Kearny Mesa

License #: 0720743

(858) 751-0956

Araceli De La Torre

Kearny Mesa 

License #: 0G17321

(858) 751-0956

Kevin Tuckey

Mission Valley

License #: 0B72553

(858) 751-1357

Tony Gutierrez

La Jolla 

License #: 0A87116

(858) 751-0956

We use an investigative and educational process to ascertain your current risk exposure and deliver to you through our 'Value Insurance Proposal' (VIP) the correct levels of coverage at the right price without compromising vital coverages. You need to protect your family and the assets you have spent a lifetime acquiring.

With the Platinum Elite, there is a difference.  Discover:

Why Platinum!

* The content of this blog is for informative purposes only. It does not reflect official standing of any agent, agency, or company mentioned on the blog. Nor is this blog necessarily an endorsement. Please consult with your insurance, tax, or legal specialist before making any decisions. This blog is purely meant to spark the thought process.