Adulting 101: Your Living Will

You may have heard people speak of a “living will” and wondered what they are talking about. A living will is also called an advance health care directive. But, no matter what you call it, every adult needs a legal document that tells your loved ones and doctors the medical care you want if you cannot make those decisions yourself.

Your living will outlines the procedures, medications, and treatments you want or do not want to prolong your life when you cannot make those decisions for yourself. Additionally, it can address if and when you want life support removed and whether you want hydration and nutrition supplied if that is the only thing keeping you alive. If these decisions need to be made and you haven’t provided specific instructions, decisions will be made, and they may not be the decisions that you would have chosen.

Don’t confuse a “living will” with a “last will.” A “last will” sets forth what happens to your property and wealth after you die. A living will sets forth what medical treatment you want while alive.

A healthcare or medical power of attorney is another part of advanced healthcare directives. The healthcare power of attorney is the legal document that names who will make the healthcare decisions for you. Simply put, a medical power of attorney names those who can make medical decisions in the event of your incapacity, while a living will explains what medical care you want.

A living will is a vital part of every adult’s estate plan, as it can ensure your medical treatment is handled exactly the way you want if you cannot communicate. Without a living will, your loved ones are left to make difficult decisions which can result in conflict, stress, and guilt.

We all know that unforeseen illness or injury could strike at any time. Don’t wait to plan. We can assist you to ensure your medical treatment and end-of-life care is tailored to suit your unique needs and wishes and provide counseling and guidance in decision-making.

5 Loving Things To Do For The Ones You Love

5 Loving Things To Do For The Ones You Love

It’s a new year, which means a new chance to do what you’ve been putting off until the time is right. That time is now. Here are 5 of the most loving things you can do for the people you love in the New Year because, at some point, you will become sick or die. And while we don’t like to think about it, the best way not to need to think about it is to plan well.  Then, you can put it out of your mind and live your life as if every day is your last.

The Five Most Loving Things You Can Do For The People You Love In The New Year:

1. Make a Plan. Having a will, a trust, a power of attorney, a health care directive, and, if you have kids, a Children’s Protection Plan is vitally important so you don’t leave your family in a mess and having to deal with an expensive court process overseen by a judge who doesn’t know (or really care) about you or your family. Without a plan in place, you are planning to fail! Don’t do that to your loved ones.

2. Write a letter or record a CD. Pass on what really matters to your family — your values, insights, stories, and experience — in written or recorded form so they can return to you long after you are gone. There are many ways you can save special memories for those you will leave behind one day.

3. Pay for and plan your funeral. Cremated or buried? Ashes or body where? Yes or no to a viewing? Make these decisions now and let your loved ones know, in writing, so they don’t have to worry and wonder. And have the payment arrangements for your funeral expenses handled so they don’t have to scramble and pay for the arrangements at a time when they are overwhelmed with grief.

4. Plan to pay no taxes. Will there be taxes on your estate, and if so, how will your heirs pay them? Meet with your personal and trusted attorney to be sure there are no surprises with estate taxes or other costs, especially if there’s insurance involved. You don’t have to be rich to think about this.

5. Get organized. Let loved ones know where they can find your legal documents, other important paperwork, and the key to your safe deposit box. Be sure to include all of your password information to access online accounts, including email, Facebook, and other regularly accessed computer programs.

How To Save Big Money On Your 2022 Taxes

When you first realize that your most significant personal and business expense—bar none—is taxes, it can come as quite a shock. Seeing so much of your hard-earned money wind up in the government’s hands can feel like a shakedown. That said, spending a relatively small amount of time and effort strategically reducing your taxes can pay major dividends.

Some people resist implementing creative tax strategies because they’re worried it will get them in trouble with the IRS. However, as long as you do things correctly, there’s absolutely nothing illegal or risky about strategizing to pay the least amount of taxes possible.

On the other hand, it is illegal to evade taxes. As the late Martin Ginsburg, Georgetown Law professor and husband of the recently deceased Supreme Court Justice Ruth Bader Ginsburg, said, “Pigs get fat; hogs get slaughtered.” In other words, you want to be smart when it comes to saving on your taxes but not greedy.

As the end of 2022 approaches, we’re entering the most critical time of the year for tax strategy, and this two-part series outlines how you can get fat without getting slaughtered.

PREPARE YOUR FOUNDATION

To save big on your 2022 taxes, your first step should be either building or rekindling your relationship with your team of financial professionals. These individuals will support you in establishing the foundation for developing and implementing your tax-saving strategies. At the very least, this team should include your Business lawyer, your bookkeeper/financial manager, and your tax advisor. They each have an essential role in your success.

If your bookkeeper’s job is more about data entry than financial management, you should look for someone new—or quickly get your current staff trained and up to speed. An effective bookkeeper will manage your books on a week-to-week basis (if not daily, depending on your business). Note I said “week-to-week,” not just month-to-month or quarter-to-quarter.

Your bookkeeper’s primary responsibilities should include daily/weekly cash-flow management, monthly review of reports and categorization of expenses, and quarterly updates of your forecast and projections. Again, if your bookkeeper isn’t providing these types of services for you, your business is missing an essential part of its financial foundation. 

Outside of your bookkeeper, your tax advisor is the person who files your taxes. Ideally, you should meet with your tax advisor AT LEAST twice a year. We encourage you to meet once in May/June (after tax season) and once when approaching the year’s end in October/November. If you haven’t done that, DO IT NOW!

The purpose of the May/June meeting is a general catch-up and mid-year review that lets your tax advisor know what you’re financially on track to do for the year. Then, your advisor can consider the most effective tax strategies based on that information.

When you meet again (NOW) in October/November, that is when you’ll really get down to business. This meeting is when you’ll project cash flow through the end of the year and get a tax estimate using different assumptions, both with and without tax-saving strategies.

If your tax advisor cannot provide this level of service and is merely a tax filer, it’s time to get a new advisor. Your tax advisor should communicate with your business attorney to ensure that your financial strategies are supported with the legal tools and systems necessary to tie it all together and ensure it works properly.

PUTTING YOUR STRATEGIES INTO PLAY

Next week, we’ll discuss how to develop and implement creative tax strategies that will enable you to keep more of your money in your hands rather than the government’s.