Lesson Learned? Or Not?

You probably read recently that Len Goodman, the long-time judge on “Dancing With the Stars,” died. Len was a sage in the world of dance and was known for his wry and witty humor. It’s too early to tell if he left his loved ones holding the bag or if he had his affairs in order. It never ceases to amaze me the number of people with the time and resources to plan well for the eventuality of their death and fail to have a plan in place.

We all know that we are definitely going to leave this world. We all know that having a plan in place is essential. It’s perplexing that so many people fail to have an estate plan in place or whose plan is outdated and won’t work for their family now.

Earlier this year, Stephen Laurel Boss, also known as “tWitch,” died. TWitch wasn’t familiar to me, but he was to millions of others who knew him as an American DJ, hip-hop dancer, choreographer, television producer, and actor whose personality lit up the stage on So You Think You Can Dance. He was also a producer and frequent guest host on The Ellen Degeneres Show and co-hosted the TV show Disney’s Fairy Tale Weddings alongside his wife and fellow dancer, Allison Holkers.

tWitch and Allison shared a seemingly happy life together in Los Angeles, California, where they were raising their three children, ages 3, 7, and 14. Sadly, on December 13, 2022, tWitch died by suicide at the age of 40. His death came as a complete shock to loved ones who reported the star seemed happy in the weeks leading up to his death.

Boss died without a Will or Trust in place, meaning his wife, Allison Holker, has the task of petitioning the California court system to release Boss’ share of their assets to her. Allison, his widow, will need to wait months before she can formally take possession of the property her husband owned with her, as well as property held in his name alone, including his share of his production company, royalties, and his personal investment account.

Do you know how many people have plenty of notice of their death and fail to protect their families? Celebs and regular people like you and I just fail to do what it takes and leave their loved ones to handle details that they are ill-equipped to handle.

Unnecessary Court Involvement in a Time of Grief

Now, mind you, this happened in California. However, the process that one has to go through in most states is strikingly similar. In order to have access to her late husband’s assets, Allison, his widow, will have to make a public filing in the Probate Court by filing a petition, which asks the court to transfer ownership of a deceased spouse’s property to her as the surviving spouse. Hopefully, there will not be any difficulty in proving that they were legally married at the time of his death.

While the probate court has become more efficient in recent years, the court’s involvement nonetheless delays a spouse’s ability to access the assets of a loved one that has passed – a hurdle no one wants to deal with in the wake of a devastating loss. In addition, the court probate process is entirely public, meaning that the specific assets that loved ones are trying to access are made part of the public record. When your financial affairs become part of the public record, they become available for anyone to discover.

This isn’t just a problem for the wealthy. Even if you own a modest estate at your death, your family will need to go through the probate court process to transfer ownership of your assets if you don’t have an estate plan in place.

How to Prevent This From Happening to Your Loved Ones

When someone dies without an estate plan in place, the probate court’s involvement can be a lengthy and public affair. At a minimum, in Colorado, you can expect the probate process to last at least six months and oftentimes as long as eighteen months or more. How long it will take depends on many variables that we cannot necessarily predict before death. The sad part is that court involvement can be completely avoided IF the couple had created a revocable living trust to hold their family’s assets. If they had, the widow would have had immediate access to all of the couple’s assets upon death, eliminating the need to petition a court or wait for its approval before accessing the funds that rightly belong to her.

A Trust would have also kept the family’s finances private. With a Trust, only the person in charge of managing the Trust assets (the Trustee) and the Trust’s direct beneficiaries need to know how the assets in a Trust are used. There is also no court-imposed timeline on the Trustee for taking care of your final matters (with the exception of some tax elections), so your family can move at the pace that’s right for them when the time comes to put your final affairs in order.

The privacy that a trust provides also helps to eliminate potential family conflict because only the parties directly involved in the Trust will know what the Trust says. If issues between family members arise over the contents of the Trust, the Trust will lay out all of your wishes in detail so that all family members are on the same page and understand your wishes for the ones you’ve left behind.

Guidance for You and the Ones You Love

When you create a revocable living Trust at our firm, we ensure your loved ones have someone to turn to for guidance and support during times of uncertainty. No one expects the sudden loss of a loved one, but when it happens, your world is shaken. Even the simplest tasks can feel overwhelming, let alone the work involved in wrapping up a loved one’s affairs.

That’s why we welcome you to meet with us to discuss your wishes for when you die or if you become incapacitated. If you’re ready to start the estate planning process, contact us today for a complimentary 15-minute discovery call.

Estate Planning Before You Travel: Why It’s Critically Important

Vacations can be the perfect opportunity to relax, disconnect from work and responsibilities, and enjoy your spouse, partner, kids, or friend’s company. But before you head off on your next getaway, there’s something else you should consider doing that might not sound quite as fun—creating an estate plan. While it may not sound like the most exciting way to spend a day, here are some reasons why you need to think about your estate plans before you travel.

  • An estate plan ensures that your minor children will be placed with the person you choose in the event that you and your spouse have a medical emergency while on vacation. Do not risk your children being placed in the foster care system based on the laws of the state in which you are traveling.
  • An estate plan ensures any medical decisions needed while away from home will be handled according to your wishes and with as much ease as possible, no matter where in the world you are when something happens. If you fall ill or become injured and can’t make medical decisions for yourself, your estate plan will ensure that decisions will be made by the person you choose and with your indicated desires for your care at the forefront.
  • Without an estate plan in place, your family or friends could have a heavy lift to get you back home, locate your assets, keep your bills paid, and even ensure your children get taken care of by the right people in the right way.
  • Lastly, an estate plan ensures that any debts or liabilities are taken care of properly in case something happens while on vacation. This can help prevent creditors from trying to collect from surviving family members after the fact — something no one wants to deal with during such a difficult time.

Yes, Even Married Couples Need an Estate Plan

You might think that because you are married, you don’t need an estate plan. Or you might even think your Will is enough and would just handle everything. But that’s generally not the case.

Even if you are married, you still need medical powers of attorney, making it clear that you want your spouse making medical decisions for you and  adding in additional decision-makers. You still want a Living Will to give clarity on how you want medical decisions made for you.

Finally, if you have dependent children, you want to ensure you’ve made it as easy as possible for their care to be continued by the people you want, in the way you want. Without a plan in place, decisions around their care could be tied up for months, including access to the financial assets their caregivers would need to ensure they have what they need along the way.

The Benefits of Working With an Attorney

While you can create an estate plan without legal assistance, there are serious risks to the people you love if your plan is not completed, not updated after it’s been done once, or not completed properly. The only real guarantee for the people you love to have as much ease as possible is if you work with an experienced attorney specializing in estate planning, particularly Life & Legacy Planning. As an Estate Planning Law Firm, we understand what needs to go into a thorough and complete estate plan — as well as the potential pitfalls or issues that could arise due to your unique personal and family dynamics — so you can rest assured knowing everything is being taken care of properly before you embark on your trip.

At Cris Carter Law, LLC, we can advise you on other important documents such as Wills, Trusts, powers of attorney (POA), health care directives (HCD), and guardianship paperwork (for minor children) so you can make informed decisions based on what you want to have happen if you become incapacitated or die. All these items should be considered when creating an effective estate plan — especially when one or both parties will be traveling outside their home country at any point.

Don’t Let a Lack of Planning Dampen Your Vacation Spirits!

Taking a few simple yet critically important steps now can save you and your family considerable headaches down the road if anything were ever to happen while on the road—not only do we want you to enjoy each moment spent together, but we want peace of mind knowing that whatever comes your way is handled according to your wishes!

We can help put a plan together now so that you don’t forget about this important task before packing up for your next adventure. Making sure all your affairs are in order will ensure nothing stands in the way between you and enjoying time together! Contact us today to get started.

Better Together!

Today is a huge happy Tuesday for me, and I am beyond excited to share my joy. But first, for those who don’t know my story, let me share some bits and pieces with you.

I was raised in Florida, was educated in Florida, raised my family in Florida, and practiced law in Florida. Fifty years of life in Florida, and I never thought I would ever leave Florida.

As we know, life changes, and at the prospect of my grandchildren being born and raised in Colorado, Florida lost its hold on me. I happily moved to Colorado to assume my grandmotherly role and become CoCo (my grandmother name). What could be more perfect than a part-time position on Tuesdays and Thursdays where love, relationships, connection, stretching, and learning with the grandchildren was the reality? My life was beyond wonderful.

But, as we all know, sometimes life changes, and the unexpected happens. When my husband died, I hurt. Frankly, I had never experienced such a tremendous loss, and I didn’t think I could go on. However, there were others that were not willing to let me give up. With the love and support of my children, grandchildren, and many close friends in Colorado and Florida, life changed. It looked different, but it did go on. I developed a new rhythm because I had to. And two short years later (time pretty much stands still as you grieve the loss of someone you dreamed of living out your life with), my daughter and her family announced that they were moving to Dallas, Texas.

They were kind and invited me to move with them to Dallas. However, it just didn’t seem like I should tag along. So, I stayed put. And again, I grieved a loss. I hurt, and I was alone. I spent a lot of time in Dallas. I would go to Dallas for holidays, special occasions, and grandchildren’s events. A new rhythm developed. Not ideal, but the best I could make of it.

And it bears repeating that we all know that sometimes life changes and the unexpected happens. And so it does. I have been walking on cloud nine as my daughter and family announced at the end of last year that they were coming home to Fort Collins. And today is THE day that they arrive!!!!

This (grand)mother’s HEART is so full. Not much more to say than that. So let me leave you with words from Jack Johnson’s song, “Better Together:”

“Love is the answer, at least for most of the questions in my heart.

Like why are we here? And where do we go? And how come it’s so hard?

It’s not always easy, and sometimes life can be deceiving.

—- Well, it’s always better when we’re together.

Yeah, it’s always better when we’re together!”

Listen to the full song here.

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.

Now is the Time to Act

Tax-Saving Strategies For 2022

Although the end of the year can be hectic, it’s also the deadline for you and your family to implement several key tax-savings strategies. By taking action now, you may be able to reduce your tax bill due in April significantly. But you must do this before the end of the year, so act fast.

While there are dozens of potential tax breaks you may qualify for, here are 4 of the leading moves you can make to save big on your 2022 tax return.

1. Maximize retirement account contributions

By maximizing your contributions to tax-deferred retirement accounts, such as IRAs and 401(k)s, you can save for retirement and reduce your taxable income for 2022.

In 2022, you can contribute up to $6,000 to an IRA, up to $20,500 to a 401(k) if you’re under 50, and up to $7,000 to an IRA and $27,000 to a 401(k) for those 50 and older. If you don’t have the cash available to fund the maximum amount, contribute at least any amount that your employer will match since that’s basically free money, and you lose it if you don’t use it.

That said, the ability to deduct your traditional IRA contributions from your taxes comes with certain limitations. These limitations are based on factors such as whether or not you or your spouse are covered by a retirement plan at work and your adjusted gross income (AGI), so make sure you know how your family is affected by these limits when taking deductions. On the other hand, Roth IRA contributions are not tax-deductible since they are made after taxes are taken out, but withdrawals from a Roth in retirement are tax-free.

Additionally, consider maxing out your Health Savings Account (HSA) contributions. Contributions to HSAs for 2022 are capped at $3,650 for individuals and $7,300 for families, with an additional catch-up contribution of $1,000 allowed for those aged 55 and older.

You have until December 31st, 2022, to contribute to a 401(k) plan and until April 18th, 2023, to contribute to an IRA or HSA for the 2022 tax year.

2. Defer income if you’ll make less next year

If you’re expecting to make significantly more income this year than in 2023, try to defer as much income into next year as possible. However, this strategy only makes sense if you’ll be in the same or a lower tax bracket next year.

On the other hand, if you think you’ll be in a higher tax bracket in 2023, you may want to do the opposite and accelerate income into 2022 to take advantage of a lower tax bracket.

3. Use “loss harvesting” to offset capital gains

With the stock and crypto markets down this year, it can be the ideal time to use a strategy called “loss harvesting.” This means selling taxable investment assets (such as stocks, mutual funds, and bonds) at a loss to offset any capital gains you may have realized earlier in the year. Capital losses offset capital gains dollar for dollar.

If your losses exceed your gains, you can write off up to $3,000 of collective losses against other income. Any losses in excess of $3,000 can be carried over into the following year. In fact, you can carry over such losses year after year over your lifetime.

Note that the loss harvesting strategy does not apply to tax-advantaged accounts, such as 401(k)s, IRAs, and 529 plans. Additionally, the IRS “wash-sale” rule prohibits using this tax write-off for buying a “substantially identical” asset within a 30-day window before or after the sale that generated the loss.

Always consult your CPA or financial advisor before employing loss harvesting to ensure it doesn’t backfire on you.

4. Watch your required minimum distributions (RMDs)—or ensure your parents are watching theirs—if you or they are over age 72

If you have an employer-sponsored retirement plan, including a 401(k), 403(b), traditional IRA, SEP IRA, or SIMPLE IRA, you must start taking required minimum distributions (RMDs) by April 1st of the year that follows

the year you turn 72. After that, annual withdrawals must be made by December 31st each year to avoid a severe penalty.

If you fail to take the proper RMD, you may face a 50% excise tax on the amount you should have withdrawn based on your age, life expectancy, and account balance at the beginning of the year. That said, if you do make a mistake, you may be able to avoid the penalty by requesting a waiver from the IRS. You can request a waiver if your failure to take the RMD is due to a reasonable error and you take steps to make the required distribution. To request a waiver, submit Form 5329 to the IRS with a statement explaining the error and the steps you are taking to correct it.

Note that in 2022 the IRS updated its uniform lifetime table to calculate RMDs to account for longer life expectancies. As a result, your RMDs for this year may be slightly lower compared to previous years. To determine your RMD, refer to the IRS RMD worksheet or use an RMD calculator.

Maximize Your 2022 Tax Saving

There you have just four year-end tax-saving strategies that could save your family thousands of dollars on your 2022 tax bill. But DO IT NOW, as the end of the year will be here before you know it.