From above of briefcase for documents with papers placed on wooden table in daytime

How To Get The Most Out Of Tax Season

It’s a new year, which means you’re probably starting to get a lot of documentation in the mail that you’ll need when preparing your tax returns. Whether you do this on your own or hire a professional, the process can be daunting just because of the sheer amount of paperwork involved.

 

But as long as you’re sorting through papers, you might as well take this opportunity to get more bang for your buck.

 

Most people don’t even consider one of the biggest jobs of estate planning – designating and organizing beneficiaries on all their accounts.

 

You may know that a Last Will and Testament is an important estate planning tool, but did you know that a Will does not avoid probate? A Will is actually better defined as a set of instructions for the probate court to follow. On the other hand, a true estate plan attempts to avoid the probate court process altogether by taking a very strategic approach to your assets, how they’re titled, and what happens to them at death.

 

What’s this have to do with tax season? Well, the most tedious part of completing an estate plan is gathering documentation from all your financial accounts. Important information we track down and organize includes the name of financial institutions, account numbers, specific ownership information (whether it’s owned jointly, individually, etc.), and who is named as beneficiaries and in what order and percentage.

 

Doing this as you prepare your tax forms kills two birds with one stone. If you already have an estate plan in place, you just need to make sure everything is updated as you’re looking through your accounts. If you don’t have a plan yet, take this opportunity to make sure everything is collected in one spot so you’ll be able to strategize once you start your planning.

 

When I do an estate planning workshop, I walk through an asset inventory with the participants and discuss how each type of asset can be titled and transferred in Ohio. Interested in attending one? I’ll be doing a webinar on February 25 where I’ll explain some basics of estate planning and help people get that first step done. Sign up here!

Thanksgiving Dinner Topics That Make You Sound Smart!

Want to impress your family members with a money-saving tip they might not know about this Thanksgiving?

 

While I don’t personally recommend talking about End Of Life Scenarios around the extended-family-dinner-table, I think my favorite estate planning document is a safe topic.

 

In Ohio we have something really cool called a Transfer on Death Designation Affidavit. While the name is long and confusing, the actual document is incredibly simple. This is a way our State has allowed us to name beneficiaries on real estate.

 

On your bank account (hopefully) you’ve named a Transfer on Death beneficiary who gets your money after you pass away. This keeps it out of probate court and saves loads of time and money.

 

 Likewise, you can name a beneficiary on your home. It must be filed with the Recorder’s Office just like your Deed was, and it has to be executed correctly and contain the correct language, BUT once it’s signed, notarized, and filed, as long as you own the house you have a beneficiary on it.

 

Own your house jointly with right of survivorship? The Transfer on Death designation doesn’t kick in until the second of you passes away. Your heirs still get the step-up basis for tax purposes, but none of the hassle of court involvement.

 

What does this document cost, that saves thousands of dollars and months of time? Only about $200, all fees included.

 

 

Know anyone who might be interested in learning more? Send them my way: http://www.calendly.com/galleslawfirm/peaceofmind

Swimsuits and communication, as your kids age – a cautionary tale

Two young girls enjoying a playful day in a bright blue swimming pool with colorful float rings.

This summer I made the most rookie parenting mistake I’ve made in a long time. It was 10 a.m. and I was thinking through our day, and realized I had time to take everyone to the pool when it opened at noon. This wasn’t my mistake – everyone loves the pool, it’s exercise, my house stays clean-ish (not being here helps with that), and the kids all come back exhausted.


The mistake was this — I went ahead and got my swimsuit on a whole hour early, because it was convenient (and I was obviously out of my mind.) I may as well have screamed “let’s goooooo!” while running through the house. The two-year old spotted me and went absolutely nuts. He was so excited! He has no concept of time and He. Wanted. To. Leave. Immediately. I should definitely have known better, as I am 16 years in parenting young children now. Which is to say I’ve learned to walk the fine line between fun anticipation of upcoming events and hedging their disappointment when things take a turn (see also: the million disappointments of covid).


Of course as the kids get older, they get to be let in on the fun things ahead of time, and even like helping to prepare and plan for trips or outings or celebrations. It’s fun when they get to help prep Easter baskets or Christmas stockings because it doesn’t have to be a big secret anymore, and they really like being part of the planning! BUT we have to balance that, still, with not sharing ALL the information (how much vacations and gifts and celebrations cost) or what some of our worries are (will people get sick, etc.)


I know from talking to parents of all ages (with kids of all ages) that this hesitation to share ALL the information never completely goes away. But what’s healthy, and what ends up causing more anxiety?


When it comes to planning for end of life and inheritances, more communication is better with your adult children. With my still-small children, they just need to know “we have a plan and you don’t have to worry about being taken care of.” But as they get older, and become adults? They need to know more, and not knowing causes anxiety of its own. Time and again when meeting with clients I use the phrase “clarity is a gift.” While these conversations can be awkward or difficult, you don’t want to leave people wondering what you would have wanted.


The best way to start the conversation might be “I love you and want to make sure our family is taken care of even after I’m gone, so I started the process of estate planning.” They might want more details, or might just want to know where you put the documents. (You would be amazed how often searching for the documents is an issue.)


If you’re the adult kid in this situation, it may be left up to you to bring it up. If so, make sure you choose a time that is not otherwise stressful, and begin in the same way – I love you and want to make sure our family is taken care of. Estate planning includes end of life care too, so this is a way you can care for your parents, not just yourself.


At the end of the day, it’s about caring for each other. Parents are so good at protecting our kids – from disappointment, from hard conversations, from stress and worry. Knowing when to include kids in the conversation and decision making, and the clarity that comes with that, is also a way to care for each other. This is why I call my initial consultation with clients a peace of mind planning session. If you know someone who might benefit from a conversation, they can schedule here! http://www.calendly.com/galleslawfirm/peaceofmind

We need to talk about your flair (or: DIY Wills)

During college I briefly worked at TGI Friday’s, so the scene in Office Space when Jennifer Aniston’s character is lectured about only having the minimum amount of “flair” on her work uniform was especially amusing to me. (Fun fact: on my first day of work at that restaurant my manager actually threw a to-go container of salad *at me* during a stressful customer interaction, which, I gotta be honest, I do not think the manager of Chotchskie’s would’ve done.)


Anyway do you remember the scene? The manager asks her if she wants to be the kind of person to do the bare minimum. (She does, as it turns out.)


The manager here is not the good guy, I get that, but he does have a point. When it comes to Wills, there are a million ads about easy, fast, cheap options. Fill in your info, badabing badaboom. Very…minimal.


This…might work 🙂 It’s most likely better than nothing, but let’s be honest it’s the minimum. So if you already have a Will from an online company you might consider adding some flair by:


  1. Confirming that you’ve printed it out and signed it in front of two uninterested witnesses (this means they have nothing to gain from what’s written) who also witness each other’s signature. They must be 18 years old.

  2. Making sure you’ve waived the bond requirement for your Executor, otherwise you’re setting them up for extra headaches. Think about naming a backup, while you’re at it.

  3. Storing it in a safe place (fireproof safe) and making sure your Executor knows where it is. A safety deposit box is not a good idea.

An even better idea? Talk to a lawyer who knows the laws in your state and can walk you through how to make your Will work as part of a complete estate plan. What’s that mean? I’ll be walking through typical estate planning documents over the coming weeks here.


Want someone to look at your specific situation and tell you exactly what to do? I can do that too. Just schedule a consultation at http://www.calendly.com/galleslawfirm/peaceofmind.


 That would be greaaaaaat.

tacos, mexico, food, tortilla, vegetables, tacos, tacos, tacos, tacos, tortilla, tortilla, tortilla, tortilla, tortilla

Taco Oatmeal and the difference between legal documents and legal counsel

 

A few months ago it was my turn to bring breakfast for our women’s prayer group. I decided on a baked oatmeal with craisins and pecans, which was the perfect mixture of sweet, healthy, portable, and (I thought) easy. I worked on the various steps as we went through our normal hectic morning routine of getting kids ready for school and out the door, and eventually, as the oatmeal baked in the oven, I began to smell the sweet aroma of…tacos.

 

Can you guess where this is going? At our house we have mostly your run-of-the-mill normal sized spices. But two we use quite a bit of – cinnamon and…cumin. We buy them at Costco and they live in their own separate drawer, right beside each other. Instead of cinnamon I had grabbed the cumin, unintentionally creating taco-flavored oatmeal. And not in the cool “happy accidents I’ve invented something amazing” way. It was horrible and I had to start over. It was…a little funny at the time.

 

Now steps 1-3 of the recipe are “Get cinnamon. Check to make sure it’s not cumin. Check one more time just in case.” The new recipe is based on what I now know is a preventable but very possible mistake. Do I blame this on the spice container designers and namers? Of course I do! But at the end of the day it’s me who’s eating taco oatmeal, not them.

 

I remembered the cinnamon-cumin situation recently (now a funny story in our family) when I read a question on facebook about having a “Will or Living Will” created. The writer of the post was confused about which document was which, and (understandably) mixed up Living Wills and Living Trusts.

 

For some unknown reason, the namers of legal documents chose very similar words for…basically everything. And do we blame them for the confusion? Of course we do! But at the end of the day we’re the ones who either have an estate plan we understand, or don’t.

 

So here is a quick rundown:

    1. A Last Will and Testament – everyone needs one of these! A document for a judge to read about what you want to happen to your assets after you die, who you want to be in charge of executing your wishes (your executor) and, if you have children under 18, who you’d want to be their guardians.
    2. A Living Will – this is the healthcare document you’re asked about when you check in at a hospital. It’s short and has questions about when you’d want life-sustaining care to happen, or not. (Fun fact, a healthcare power of attorney works with this and points to a person to help make those decisions).
    3. A Living Trust – this one is more complicated. It’s a contract between yourself and yourself (nope, that’s not a typo) that spells out exactly what you want done with any assets owned by the Trust, both during your life and after you die. Not everyone needs one of these (I can tell you if you do!) It does not replace a Will, but it makes the Will a lot simpler.

Hopefully that helps clear things up a little. My aunt recently asked me how I felt about online legal documents, and my honest answer is that they CAN work, but they don’t come with any legal advice. (As in: sure, you have acquired cumin, but do you know how to keep from putting it in oatmeal?).

 

Another favorite part of my counselor at law role is that I get to educate people on what these documents are and how they can work. I will be starting to do some presentations this Fall for groups who want to learn more about estate planning basics. If you know a group who might benefit from that, let me know! And if you prefer a one-on-one session, you can schedule that here: http://www.calendly.com/galleslawfirm/peaceofmind.

Travel Consent For Minors (free download!)

Hey, this one is for the parents of school-age kids. It’s that time of year again – field trip permission slips, summer camp forms, updating sports physicals, and the list goes on. Sometimes I wonder if it would just be easier to keep my kids WITH me 24/7, to avoid filling out all these forms. Well, would it? (The answer is NO, of course not! Kids need fun experiences and I need them to not be bored for three months out of the year).


Most of the time, we are sent permission slips for activities, right? By this point I *almost* have my kids’ pediatrician’s street address memorized. And maybe I’ll remember our health insurance group number by the time our youngest graduates high school. These forms are a necessary part of transferring authority and help in case of emergency even if they’re a pain to fill out.


Well, what if your kiddo is spending a week with the grandparents, or traveling with an aunt or uncle or family friend? You can and should send them with a consent form giving the responsible adult the authority to get them medical care, just in case. There’s no need to get into the what-if scenarios here (because parents are pretty good at that on our own am I right?) The point is, we can’t predict every part of the  future but we can plan for it. To me this is the essence of peace of mind planning.


If you’d like to keep a Travel Consent Form on hand, check out my Resources page to download it. I’ll be adding more digital files like this in the future, as well.

Happy Graduation! An Introduction to Adulthood

Wow, that school year really flew by! Welcome to “Maycember” (thank you, Holderness family!).

With three birthdays, celebrating Confirmation for our daughter, and a school play in April, our family has gotten a head start on the most busy time of the year.

And don’t worry, I do realize that Maycember is not the most popular time to be adding to anyone’s busy schedule (and I should know, because I’m currently putting the finishing touches on a seminar called “Estate Planning for Busy Families”).

But I do want to share an idea for those of you who know someone who is graduating high school (or college!) This could be a gift idea or even just something to make conversation with a new adult in your life other than “so what’s your major?” and “any job leads?”

Once someone turns 18, they are magically (okay legally) an adult! Someone expected to be able to enter into contracts, take responsibility, and handle their own legal decisions. (Hopefully with the help of older adults in their lives.) As newly minted adults they should have a few legal documents to make things easier in case of emergency.

  1. A Financial Power of Attorney: If they have bank accounts, Venmo, etc., or need help managing finances or taxes from afar, a financial power of attorney with a parent as an agent can make things go a lot more smoothly. FUN FACT digital assets are now included in most of these documents!
  2. A Healthcare Power of Attorney: Once you hit age 18, HIPAA rules apply and any unexpected hospitalizations require authorization to share information with family members. With a healthcare power of attorney (and HIPAA release) their agent (presumably a parent) will have an easier time accessing information and helping with decision-making.
  3. A Last Will and Testament: Anyone who owns any property should have a Will AND have a conversation about how to manage beneficiaries on financial accounts. An 18-year old might not have a lot right now, but this conversation lays the groundwork for the future.

Know anyone who could benefit from an Introduction to Adulthood meeting? I can help them get these documents in order, set them up with a folder to start them off on the right foot with organizing their important documents, and talk through any questions they might have about their newly acquired rights and responsibilities. As a bonus, it’s great practice talking to a professional and learning to advocate for themselves as adults.

To learn more, send me a message at lindsey@galleslawfirm.com or sign up for a quick phone call at http://www.calendly.com/galleslawfirm/adulting.

With your head and your heart, or why writing a will is the most thoughtful and loving thing you can do for your loved ones

Professor Tex Dutile was my Criminal Law professor my first semester at Notre Dame. Every Friday morning before a football weekend he would ask us, show of hands, who we thought would win. “With your head, not your heart!” he’d add, with his Boston accent. (I’ve tried for years to perfect the “hahhhrt” part of this, without success.) Every week, 100% of us raised our hands for Notre Dame to win. This was 2006 which, unlike the following two years, allowed  us to vote with both our heads and our hearts.


What does this have to do with me and my boutique law practice? Well, because estate planning is one of those areas of law that combines HEAD and HEART decisions. Allow me to explain:


The first step is your HEAD: nobody wants to think about dying, or leaving your loved ones behind (especially young  loved ones). It’s a rational decision, though, to work through the what-ifs and come up with a plan that will bring you peace. I’ve spent a bit of time thinking about why fewer than half of adult Americans have a Will, and I think our busy calendars are a major reason. I get that.


Next up is your HEART–another reason we avoid getting our affairs in order? We don’t want to work through the hard conversations of who might step in and take care of our kids, or us as we age. The good news is that talking through hard conversations with our loved ones only brings us closer together and brings peace. We can’t control every aspect of the future but we can make our wishes known and make sure our family is set up to be taken care of. And as Dr. John Deloney puts it, since 100% of us will die we absolutely just have to get this done. He even goes a step further and points out that we all actually crave these deep conversations.


Finally, back to the HEAD–the long, wordy legal documents that make sure your heartfelt wishes actually get put down on paper. This is my favorite part! I love being able to take on this task for people and help busy families cross this one big thing off their to-do list.


Life is full of decisions that combine your HEAD and your HEART: whether to move away to go to your top choice for school, add another baby to the family, buy your dream home…sometimes it feels like our heads and hearts are at odds with each other. Luckily for us, when it comes to getting our affairs in order they both get a chance to chime in.


Ready for step one? I’d love to walk through this with you! Get started by scheduling a consultation.


PS: Notre Dame finished with 10 wins and 3 losses in 2006 and went to the Sugar Bowl.