Posts Tagged ‘Inheritance’

Last Minute Tax Tips, Financial Stress and Cybercriminals …

Monday, May 2nd, 2016

April’s Top Posts Had Readers On Edge

So our month was pretty intense … how was yours? The good news is that we made it through another tax season, the bad news is that business owners are clearly still on high alert due to continuous influx of hacker activity. Take a look at our top five blog posts in April for some useful tips and insight you can use all year long.

Top 5 Blog Posts For Business Owners In April

  1. Can A Cybercriminal Crack Your Company’s Network? Small and midsize businesses are not immune to becoming the target of a crippling cyberattack and without the proper procedures in place business owners risk the very real threat of a large-scale assault on their company’s data. Would you be able to recover if your organization was attacked?
  2. How Flexible Is Your Company’s Management Style? Never before has the American business owner had to manage a workforce consisting of employees whose ages span five generations. And because each generation is unique, your company’s leadership team is left with the impossible task of adopting a management style to accommodate an incredibly diverse workforce. Keeping reading to learn more.
  3. What Tax Liabilities Accompany Inherited Real Estate? So you just inherited some real estate. You’re probably now wondering – is this a blessing or a curse? From the tax perspective, of course. And that’s a good question to ask. Just because you inherit something doesn’t mean that you’re free and clear of any potential tax liabilities. Depending on how you use the property and if you sell it will determine if you have a taxable situation. So here’s what you should know about taxes and inherited real estate. Read on to learn more.
  4. Increased Financial Stress Hurts Your Company’s Bottom Line Earlier this month, in a proclamation that reiterated the importance of equipping everybody with the “knowledge and protections necessary to secure a stable financial future for themselves and their families,” President Obama declared April to be National Financial Capability Month. While the timing of the proclamation makes this a great time to raise general awareness about the importance of financial fitness, businesses have a great opportunity to educate their employees about the importance of financial wellness all year long.
  5. How Can You Track Use Tax in QuickBooks? Now that you have filed for use tax amnesty and are all set up with an account, how are you going to track it daily going forward? If you use QuickBooks, the answer is as simple as 1-2-3.

April was great, but we are excited to see what May brings. More tips for business success? More financial news and updates? Personal finance advice? Of course! Stay tuned.

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Did Prince Forfeit Control Over His Multimillion Dollar Estate?

Wednesday, April 27th, 2016

Learn How A Will Protects Your Fortune After Death

Did Prince Have A Will | Why A Will Matters | Ohio CPA Firm

PHOTO CREDIT: www.Billboard.com
According to Prince’s sister, Tyka Nelson, the music legend neglected to draw up a will before he died. Regardless of how large (or how small) your fortune is, estate planning is essential and drawing up a will is a critical component of the plan – one you literally can’t afford to ignore. Keep reading to find out why a will is one of the most important documents you will ever have drawn up.

While driving my sons to school this morning, we heard on the radio that, according to his sister, Tyka Nelson, music legend Prince died without having a will in place. This means, if the reports are true, Prince’s estate will be managed by a Minnesota probate court and will likely come with a large tax bill.

Naturally, this story has already generated national attention concerning the future of Prince’s multimillion dollar estate. What is certain, however, is that if Prince did die without having a will, his sister and five other half-siblings would stand to acquire a significant inheritance – after taxes, of course.

Read Also: You Can Still Have The Final Say After Death

Who Will Inherit Your Fortune?

I know that my sons truly love each other but, like most siblings, they fight like cats and dogs. So I decided to use the drive to school as a teachable moment.

Because both of my sons dream of becoming professional sports stars (let them dream), I advised them to heed the warning tucked within the morning’s news report. If you don’t want your brother to inherit your fortune when you pass away, you need to have a will in place that will determine where your millions go. Otherwise, the state will give everything to your next of kin.

Still Not Sure If A Will Is Necessary?

Regardless of how large (or how small) your fortune is, estate planning is essential and drawing up a will is a critical component of the plan – one you literally can’t afford to ignore. Among the many benefits of establishing a will, this document will:

  • Give you the final say over how your finances will be distributed.
  • Establish who will be legally responsible for caring for your minor children.
  • Help you avoid a drawn-out probate process.
  • Provide you with an opportunity to minimize your tax burden.
  • Let you determine who will be responsible for managing the affairs of your estate.

Lesson Learned?

You don’t have to be a teacher to pass along a few solid words of wisdom to your children. You just need seize teachable moments when they present themselves – even if all you can do is begin laying the groundwork for an even bigger lesson. Here’s what we accomplished on this morning’s drive:

  • I’m certain my boys now agree on one thing – that when they become professional sports stars (or whatever profession they choose), a will is a must have.
  • They now know who Prince is and that he acquired a lot of money over the course of his career.
  • Hopefully, they now have a basic understanding of the importance of a will. (I’m probably going to have to have a follow-up conversation about this one.)

Eh, I tried.

Would you like to learn more about estate planning and how to ensure your assets are distributed in accordance with your wishes after you die? Listen to episode 6 of unsuitable on Rea Radio with Dave McCarthy – The Grim Reaper Is Coming And He Wants Your Money. You can also email Rea & Associates to learn more.

By Inez Bowie, CPA, CSEP (Marietta office)

The following articles offer some more great advice about the importance of drawing up a will.

How Do You Value Property For An Estate In Ohio?

Why Should Your Digital Assets Be Part Of Your Estate Plan?

What Tax Liabilities Accompany Inherited Real Estate?

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