BKBH offers a free one-hour consultation to tax preparers, at which time we provide an individualized recommendation and fee quote.

You are in position to help families save a great deal of money by encouraging them to plan ahead.

[ ] Significant medical deductions. A person with medical issues is more likely to immediately need both Health Care and Financial Powers of Attorney. Without these, the family will face expensive and time-consuming guardianship court proceedings in order to manage things for their loved one. This can all be avoided with standard powers of attorney, which keep matters private. A taxpayer with medical issues may also have a “window of opportunity” where they feel well enough to makes plans and sign a Will.

[ ] A child or loved one helping with taxes and finances. This should alert the tax-preparer that a Revocable Trust might be of value. At a minimum, the “helper” needs to have a valid, current Financial Power of Attorney in case the taxpayer’s health declines and cannot sign documents.

[ ] Married couple with over $1 million. Beginning January 1, 2011, any amounts over $1 million will be subject to estate tax if the law does not change. Married couples need proper estate tax saving provisions in their Wills or Trusts in order to pass $2 million free of estate tax.

[ ] Young couple with small children. Even for a young couple without many assets, it is important to have a Will to choose who would be the guardian of small children if both parents died unexpectedly.

[ ] Business Owners. Business owners need to have a “succession plan” in place to assure the continuation or sale of the business if they should die or become disabled unexpectedly. The Will should be coordinated with the business documents (such as the corporate, Limited Liability Company or partnership agreements). This planning is especially important where one child is involved in a family business and other children are not.

[ ] Loans or gifts within families. Many parents will financially assist one child who needs help. Often, that child is not able to pay them back. It should be clarified if the help given is a gift, a loan or an advance of that child’s inheritance. With proper planning, a parent can choose to “even things up” at death. This treats the other children fairly but does not require the child who needs help to pay anything back.

[ ] Out of State Real Estate. Where someone owns property in more than one state, each state will require a probate court proceeding at death. Setting up a revocable trust could avoid this result.



[ ] Strained Family Relationship. Where strained relationships exist in a family, proper estate planning can avoid litigation, save legal fees and prevent family disputes from worsening.



[ ] Second marriage. Estate planning is essential in second marriages to be certain that the couple’s wishes are followed. Without planning, all assets can pass to the children of the surviving spouse and the children of the first-to-die spouse might receive nothing.

Provided courtesy of:

Browning, Kaleczyc, Berry & Hoven, P.C.
www.bkbh.com

Helena Office                          Missoula Office
Brand G. Boyar                     Joanne M. McCormack
(406) 443-6820                     (406) 728-1694