Category: Uncategorized

IRS Changes in Tax Return Due Dates-Effective 2017

Clients and Friends:

Re: IRS changes in tax return filing due dates-To be effective in 2017

Effective for returns for tax years beginning after December 31, 2015, the due date of partnership tax returns is changed to March 15th for calendar-year partnerships and to the fifteenth day of the third month after the end of the tax year for partnerships with a fiscal tax year.

To avoid bunching the workload for filing and processing tax returns, the due date for C corporation tax returns is moved to April 15th for calendar-year C corporations and to the fifteenth day of the fourth month for fiscal-year C corporations.

Because tax returns for tax years beginning after December 31, 2015, will be filed in 2017 and thereafter, the new due dates will affect returns filed beginning in 2017.

The Due dates are not changed for tax returns for tax years ending 12/31/15 to be filed in 2016.

—————————————-12/31/2015
—————————————-Due Date
Trust/Estates—Form1041——4/15/2016
C Corporations—Form 1120—3/15/2016
S Corporations—Form 1120S-3/15/2016
Partnerships—Form 1065——4/15/2016

Top 3-Estate Planning Docs. Can Devastate-Pt. 3

The Top 3 Reasons How Online Estate Planning Documents Can Devastate Your Family and Leave Them In Financial Ruin – Money Can Be A Curse!!

Reason 1: The Pitfalls of Not Getting Legal Advice from an Attorney Can Cause Your Estate Plan to be Defective Because of Wrong Heirs, Wasteful Spending, and Worthless Investments

Arguably one of the biggest reasons why online estate planning documents can devastate your family’s estate plan and leave them in financial ruin is because you don’t get legal advice with do-it-yourself documents.  What most people don’t realize is that the value of an estate plan isn’t just in the documents – it’s in the advice and counsel you get from your estate planning lawyer.  An estate planning lawyer can identify issues that are unique to your financial and personal life that will affect your estate plan.  Some of those issues might include: blended families, predeceased beneficiaries, family drug/alcohol problems, problems with the in-laws, careless spending, worthless investments, and Medicaid planning opportunities. Part I and Part II of this series addressed the concerns you might have if the wrong heirs inherited your estate, as well as with concerns you might have with wasteful spending and worthless investments.  This blog addresses how online documents miss planning opportunities for unforeseen circumstances in your life, such as nursing home care.

Part III.  Does your Estate Plan Address Unforeseen Circumstances? Don’t outlive your money!

If you’re a baby boomer, Social Security suggests that you will likely live between ages 83 and 90.  If you do live that long, you should be concerned that you might outlive your money.  The number one fear of baby boomers is outliving their money during retirement due to unforeseen circumstances.  Such unforeseen circumstances include rising medical costs and the costs of long-term care.  If you ultimately need nursing home care, be prepared to deplete your hard-earned assets before Medicaid will help pay for your care. If you are married and you need to enter the nursing home, the most you and your spouse can keep is between approximately $23,000 and $120,000 (excluding your home) depending on the size of your estate before you will qualify for Medicaid.  That figure drops to $1,500 if you’re single.  Medicaid also only lets you keep $50/month from your monthly income.  Do you think you can live comfortably off of $50 a month?

Unfortunately there is no crystal ball to predict if you or your spouse will need nursing home care.  All you can do is plan for the worst and expect the best.  Depending on your age, health, and wealth, it might be appropriate to consider advanced planning for Medicaid.  A good estate planning attorney can assess your situation and determine if Medicaid planning is appropriate for you.  Most people incorrectly assume that their assets are protected from Medicaid and the nursing home when their assets are placed in a simple revocable trust.  Such revocable trusts are typically the ones that online document providers provide.  Although these types of trusts may be sufficient for some estate plans, it may not work for yours.  Online estate planning documents cannot provide you with a customized plan that will properly carry out your wishes as well as safeguard your assets from rising nursing home costs.

In estate planning, one size does not fit all. Over the years, I have found that no two families are alike.  Each family has unique issues and online documents typically cannot address those issues.  If your issues are overlooked or ignored, your estate plan will probably not work the way you intended.  If you have concerns about outliving your money and unforeseen circumstances, an estate planning attorney can help you budget your retirement and mold your estate plan to fit your specific needs.

 

Bill Hesch is an attorney, CPA, and PFS (Personal Financial Specialist) who is licensed in Ohio and Kentucky and helps clients get peace of mind with their tax, financial, and estate planning.  He focuses his practice in the areas of elder law, corporate law, Medicaid planning, tax law, estate planning, and probate in the Greater Cincinnati and Northern Kentucky areas.  His practice area includes Hamilton County, Butler County, Warren County, and Clermont County in Ohio, and Campbell County, Kenton County, and Boone County in Kentucky.

(Legal Disclaimer:  Bill Hesch submits this blog to provide general information about the firm and its services.  Information in this blog is not intended as legal advice, and any person receiving information on this page should not act on it without consulting professional legal counsel.  While at times Bill Hesch may render an opinion, Bill Hesch does not offer legal advice through this blog.  Bill Hesch does not enter into an attorney-client relationship with any online reader via online contact.)

Top 3-Estate Planning Docs. Can Devastate-Pt. 2

The Top 3 Reasons How Online Estate Planning Documents Can Devastate Your Family and Leave Them In Financial Ruin – Money Can Be A Curse!!

 

Reason 1: The Pitfalls of Not Getting Legal Advice from an Attorney Can Cause Your Estate Plan to be Defective Because of Wrong Heirs, Wasteful Spending, and Worthless Investments

 

Arguably one of the biggest reasons why online estate planning documents can devastate your family’s estate plan and leave them in financial ruin is because you don’t get legal advice with do-it-yourself documents.  What most people don’t realize is that the value of an estate plan isn’t just in the documents – it’s in the advice and counsel you get from your estate planning lawyer.  An estate planning lawyer can identify issues that are unique to your financial and personal life that will affect your estate plan.  Some of those issues might include: blended families, predeceased beneficiaries, family drug/alcohol problems, problems with the in-laws, careless spending, worthless investments, and Medicaid planning opportunities.  My last blog, Part I of Reason 1, addressed the concerns you might have if the wrong heirs inherited your estate.  This blog will address how your beneficiaries’ wasteful spending and worthless investments can ruin your family.

 

Part II.  Wasteful Spending and Worthless Investments Can Ruin Your Family – Money Can be a Curse!!!

 

Are you worried about your family’s long-term financial well-being after you die?  Are you worried that your spouse and/or children are not fiscally responsible enough to manage a large sum of money when you die?  If not, you should be.  According to USA Today, about 70% of all lottery winners go broke, many within a few months of winning.  Much like lottery winners, heirs who receive an inheritance outright, big or small, are at risk of quickly going broke, mostly because of reckless spending and worthless investments.  Without a lawyer’s guidance, you might not be aware of the risks involved with leaving assets and money outright to your spouse and/or children.  Such risks can include: your spouse being preyed upon in his/her twilight years; a child or grandchild using their inheritance to feed a drug addiction; your child dropping out of college to travel the world; or your fiscally irresponsible spouse or child mismanaging their investments.

 

To prevent your loved ones from recklessly spending their inheritance and investing in worthless investments, estate planning lawyers typically suggest that you utilize a simple revocable trust in your estate plan.  A revocable trust provides a lot of flexibility that provides liberally for you and your spouse while you are living.  It can also control what distributions are made after your death, who those distributions are made to, and when those distributions can be made.  If your trust is set up properly with a responsible trustee and successor trustees, you can also control who makes investment decisions for the trust assets.

 

Online document providers provide very basic trusts for their customers.  However, online trusts typically do not include specific provisions that address your family’s unique situation.  Something that may seem like boilerplate to you in your online trust agreement might actually be an important provision that operates contrary to how you want your entire estate plan to work.  An estate planning attorney, on the other hand, is able to assess your family’s situation and suggest a strategy that will give you peace of mind.

 

In estate planning, one size does not fit all. Over the years, I have found that no two families are alike.  Each family has unique issues and online documents typically cannot address those issues.  If your issues are overlooked or ignored, your estate plan will probably not work the way you intended.  If you have concerns about your family’s well-being after you become disabled or die, an estate planning attorney can help you identify your family’s relevant issues and mold your estate plan to fit your specific needs.

 

Bill Hesch is an attorney, CPA, and PFS (Personal Financial Specialist) who is licensed in Ohio and Kentucky and helps clients get peace of mind with their tax, financial, and estate planning.  He focuses his practice in the areas of elder law, corporate law, Medicaid planning, tax law, estate planning, and probate in the Greater Cincinnati and Northern Kentucky areas.  His practice area includes Hamilton County, Butler County, Warren County, and Clermont County in Ohio, and Campbell County, Kenton County, and Boone County in Kentucky.

 

(Legal Disclaimer:  Bill Hesch submits this blog to provide general information about the firm and its services.  Information in this blog is not intended as legal advice, and any person receiving information on this page should not act on it without consulting professional legal counsel.  While at times Bill Hesch may render an opinion, Bill Hesch does not offer legal advice through this blog.  Bill Hesch does not enter into an attorney-client relationship with any online reader via online contact.)