Gordon & Alvestad, PLLCGordon & Alvestad, PLLC2024-03-04T19:01:29Zhttps://www.alvestadlaw.com/feed/atom/WordPress/wp-content/uploads/sites/1300427/2020/04/cropped-site-icon-32x32.jpgOn Behalf of Gordon & Alvestad, PLLChttps://www.alvestadlaw.com/?p=475462024-02-27T19:03:31Z2024-03-04T19:01:29Z1. Choose the right agent
Your agent should possess sound judgment, integrity and a thorough understanding of the business operations. Common options include business partners or colleagues such as your second-in-command. Other options include professional advisors, family members and corporate officers. Always make sure your agent is aware of their role and willing to do it.
2. Protect assets and operations
By designating a trusted agent through a power of attorney, business owners can safeguard their assets. The agent can handle financial transactions, sign contracts and make necessary business decisions.
3. Establish clear guidelines
To facilitate smooth transitions and avoid misunderstandings, establish clear guidelines. Include specific instructions regarding the scope of authority, limitations and responsibilities of the agent.
4. Review and update regularly
Review and, if necessary, update the power of attorney periodically. Changes in business structure, key personnel or legal regulations may mean the document needs changes to stay relevant and effective.
5. Communicate with stakeholders
Inform key stakeholders, such as employees, clients and suppliers, about the power of attorney. Explain who the agent is. This transparency can help maintain trust and ensure a smooth transition in case the need arises.
By delegating authority to a trusted agent, entrepreneurs build the resilience of their business and offer various people peace of mind.]]>On Behalf of Gordon & Alvestad, PLLChttps://www.alvestadlaw.com/?p=475452024-01-29T21:24:12Z2024-02-05T21:24:04ZProviding financial peace of mind
One of the advantages of incorporating funeral plans into your will is the financial peace it provides to your family. Funerals are often expensive, and the burden of managing these costs can be overwhelming for grieving relatives. By putting aside funds for your funeral expenses in your will, you ensure that your family is not left grappling with financial stress during an already difficult time.
Personalizing your farewell
Beyond the financial aspect, including funeral plans in your will allows you to personalize your farewell. You can pick the type of service or burial you want.
This includes any specific religious ceremonies you wish to be part of your memorial. This thoughtful planning ensures that your loved ones can honor your memory in a way that resonates with your values and beliefs.
Avoiding family fights
Clear communication of your funeral wishes in your will can help prevent potential family disputes. The grieving process is challenging enough without the added stress of disagreements among family members about how to proceed with the funeral arrangements. By outlining your preferences, you reduce the likelihood of conflicts among your loved ones during a tough time.
Streamlining the process
Including funeral plans in your will also streamline the administrative process for your family. It provides a roadmap for them to follow, guiding them through decisions. This foresight allows your family to focus on supporting each other emotionally rather than grappling with uncertainty and logistical challenges.
Incorporating funeral plans into your will is a considerate step towards helping your loved ones after your death. While it may be a sobering topic, addressing it in your will offers both emotional and practical benefits during a challenging time.]]>On Behalf of Gordon & Alvestad, PLLChttps://www.alvestadlaw.com/?p=475432024-01-09T19:30:17Z2024-01-09T19:30:17ZWho needs to report
The CTA applies to all corporations, limited liability companies and similar entities created or registered in the United States. The only exceptions are a few types of already regulated entities, such as banks.
All covered companies should report their beneficial owners to the Financial Crimes Enforcement Network, including pre-existing organizations as well as newly registered entities.
Required information
Companies will need to provide identifying information on each beneficial owner, including their full legal name, birthdate, current residential or business address and a unique identifying number from an acceptable identification document such as a driver’s license.
Companies must also provide FinCEN with information on the reporting entity itself, including the state or Tribal jurisdiction of the registration, as well as its IRS taxpayer number.
Consequences for non-compliance
There are civil and criminal penalties for willful failure to comply with the CTA’s reporting requirements. Civil penalties can be up to $500 per day. Criminal penalties include fines of up to $10,000 and imprisonment of up to 2 years.
The U.S. Census Bureau received nearly 5.4 million business applications for new entities in 2021. Business owners, both new and existing, should understand the Corporate Transparency Act and its requirements.]]>On Behalf of Gordon & Alvestad, PLLChttps://www.alvestadlaw.com/?p=475422023-12-06T01:30:52Z2023-12-06T01:30:52ZShared responsibilities lead to shared success
When multiple family members join forces to manage an inherited rental property, the workload becomes more manageable. Each individual can contribute their skills and time, distributing responsibilities evenly. From property maintenance to financial management, a family partnership allows for a division of labor that leverages the strengths of each member.
Reduced financial burden
Owning and maintaining a rental property can bring about significant costs. From property taxes to repairs and renovations, the financial responsibilities can be overwhelming for a single individual. By forming a family partnership, these financial burdens spread evenly among family members.
Preserving family unity
In the often complex world of property management, conflicts can arise. However, in a family partnership, the bond of blood ties can serve as a strong foundation for resolving disputes. The shared goal of maintaining and profiting from the inherited property encourages open communication and compromise. This unity can be a powerful force in navigating challenges and ensuring the property's success for generations to come.
Inherent tax benefits
Family partnerships can offer tax advantages that individuals may not enjoy. By distributing the income among family members, the overall tax liability may lessen. Additionally, certain expenses related to the property may be deductible, providing an extra layer of financial relief.
Statistics show that there are approximately 20.5 million "mom-and-pop" rental units in the United States. Most of these will pass on to surviving family members when the owners pass, so it is important to know how your family will handle the property upon inheriting it.]]>On Behalf of Gordon & Alvestad, PLLChttps://www.alvestadlaw.com/?p=475352023-11-07T16:05:32Z2023-11-07T16:05:32ZUse beneficiary designations
Some assets, such as life insurance policies, retirement accounts and bank accounts, allow you to designate beneficiaries. Upon your death, these assets will pass directly to the named beneficiaries.
Establish a living trust
Did you know that only less than half (46%) of Americans have drafted a will, much less a solid estate plan with a living trust? A trust allows you to transfer your assets into a trust during your lifetime and appoint a successor trustee to manage the assets after your death. Assets held in a living trust provide a more efficient and private way to transfer property to your heirs.
Joint ownership
Holding property in joint tenancy with rights of survivorship can help your loved ones avoid probate. When one owner passes away, the property automatically passes to the surviving owner.
Make annual gifts
Consider making annual gifts to your loved ones within the gift tax limits to reduce the overall value of your estate. Learn about current gift tax laws to avoid any tax implications.
Keep your documents updated
Births, deaths, marriages, divorces and significant financial changes should prompt a review of your estate plan to ensure it accurately reflects your wishes.
Minimize your debts
Reducing your debts and ensuring that your estate has sufficient assets to cover any outstanding obligations can help streamline the probate process.
Avoiding probate in your estate planning can save your loved ones time and money. Proper estate planning is a responsible and considerate way to provide for your loved ones in the future.]]>On Behalf of Gordon & Alvestad, PLLChttps://www.alvestadlaw.com/?p=475332023-09-28T22:53:34Z2023-09-28T22:53:34ZLeverage the annual gift exclusion
The annual gift exclusion gives you a way to diminish your estate tax liability. In Washington, you can give a specific amount each year to your heirs or beneficiaries without incurring gift taxes. By making annual gifts, you can reduce the size of your taxable estate over time. Be mindful of the annual gift tax exclusion limit, though, as exceeding it may result in gift tax consequences.
Harness the spousal exemption
Married couples in Washington can take advantage of the spousal exemption, which allows for unlimited transfers of assets between spouses, both during their lifetimes and at death, without incurring estate taxes. By structuring your estate plan to optimize this exemption, you can protect your wealth for your surviving spouse and potentially reduce estate taxes.
Explore family limited partnerships
Family Limited Partnerships are a valuable tool for estate tax reduction. By transferring assets like real estate or investments into an FLP while maintaining control as the general partner, you can lower the taxable value of those assets. You may then gift the limited partnership interests to family members, further decreasing your taxable estate.
According to SmartAsset, estate tax rates in Washington vary but typically fall somewhere between about 10% and 20%. Taking proactive steps to reduce your estate taxes helps ensure that as much of your legacy as possible ends up in the hands of the people you care about.]]>On Behalf of Gordon & Alvestad, PLLChttps://www.alvestadlaw.com/?p=475312023-09-07T01:12:40Z2023-09-07T01:12:40ZGet started early
Procrastination is a common pitfall when it comes to estate planning. Many people assume they have plenty of time, but the truth is, life is unpredictable. Starting early allows you to create a comprehensive plan that reflects your current situation and desires.
Create a will
Creating a will is a fundamental step in developing an estate plan. It allows you to specify who will inherit your property, money and personal belongings. Without a will, state laws will dictate how to divide your estate, which may not align with your wishes.
Select an executor
Selecting a responsible and trustworthy executor is another important step. This person will be responsible for managing your estate, paying debts and distributing assets according to your will. Because so much is at stake, your executor must exhibit responsibility and be fully willing to take on the role.
Consider beneficiary designations
Certain assets, such as life insurance policies and retirement accounts, have beneficiary designations. These designations dictate how much of each asset goes to your heirs. They also override your will, so you must review and update them regularly. Failing to do so can lead to unintended consequences.
Make a plan for incapacity
Estate planning also allows you to plan for potential incapacity. Documents like a durable power of attorney and a healthcare proxy designate someone to make financial and medical decisions on your behalf. As a result, they offer immense peace of mind that you will receive the proper medical care when faced with a life-threatening medical issue.
Keep your plan updated
Life is constantly changing. Marriage, divorce, births, deaths and changes in financial circumstances can all impact your estate plan. Regularly review and update your plan to ensure it remains relevant and effective.
Keep in mind that 67% of Americans lack a comprehensive estate plan, according to CNBC. The families of these individuals could face significant challenges in the event of their loved one's passing, which highlights why all people should have an accurate and reliable plan in place.]]>On Behalf of Gordon & Alvestad, PLLChttps://www.alvestadlaw.com/?p=475302023-07-26T22:33:48Z2023-07-27T22:33:33Zshort-term rental.
Set clear ground rules for your renters
Success always begins with a solid plan. Therefore, you should create a set of ground rules for your guests. Set quiet hours and outline your local noise ordinances. Determine how many people you allow in your home. Discuss trash management, including where the trash and recycling bins are located and what you expect from your guests. Finally, work out a parking plan so your guests do not impede on your neighbors’ parking rights and needs. Always discuss the violation consequences and monitoring systems.
Speak with your neighbors
Before you book your first guest, talk with your neighbors. Let them know your plan, when you expect guests to arrive and what they can do if they see violations or feel disrespected. Keep communication open.
Create win-win situations. For example, offer weekly lawn care or monthly house cleaning from your service provider.
Invest in guest screening
Screen your guests. Find out if they have previous complaints from other property owners. You can use an app and external software screening. Also, market to your optimal guests rather than anyone willing to pay for a few days in your home.
These are just a few strategies you can follow to make your short-term rental as hassle-free and profitable as possible.]]>On Behalf of Gordon & Alvestad, PLLChttps://www.alvestadlaw.com/?p=474642023-06-29T19:51:34Z2023-06-29T19:51:34ZOpen a dialogue with your neighbor
The first step to resolving a boundary dispute is to have an open, respectful conversation with your neighbor. Explaining your concerns calmly might clear any misunderstanding that led to the dispute in the first place. Keep the conversation non-confrontational, as hostility can often escalate the problem rather than resolve it.
Consult your property deed and land survey
If talking it out does not resolve the dispute, consult your property deed and land survey, which are usually part of the paperwork you received when you purchased your property. The deed will often include a legal description of the property, while the land survey provides a detailed map of the property boundaries. These documents can help you verify the exact location of your property lines and could help in resolving the dispute.
Engage a professional surveyor
If the dispute persists despite consulting your property documents, hiring a professional surveyor could be a good next step. A surveyor can conduct an updated, thorough survey of your property, providing an unbiased perspective on where the boundary lines lie. While this may come at a cost, it might be worth the investment to resolve a boundary dispute.
Consider mediation or arbitration
If all else fails, you can do mediation or arbitration. In mediation, a neutral third party assists you and your neighbor in reaching a mutually agreed resolution. In arbitration, the arbitrator listens to both sides and makes a decision that you and your neighbor agree to abide by.
Maintaining a peaceful relationship with your neighbor is important. Understanding how to handle boundary disputes with grace and patience can go a long way in ensuring a harmonious neighborhood.]]>On Behalf of Gordon & Alvestad, PLLChttps://www.alvestadlaw.com/?p=473672023-05-27T15:25:34Z2023-05-27T15:25:34ZSupplement Security Income have strict income and resource eligibility requirements, and a beneficiary who receives additional funding or resources could face changes in their benefit eligibility. An SNT provides the opportunity to maximize benefits while still utilizing or gaining additional assets to provide for a better quality of life.
First-party special needs trusts
A first-party SNT receives funds from assets received by a special needs beneficiary. Often these funds come through an unexpected inheritance or through a settlement payment. These trusts have Medicaid payback provisions. For funds remaining in the trust following the death of the beneficiary, Medicaid can lay a claim against the estate for reimbursement for assistance paid on behalf of the beneficiary.
Third-party special needs trusts
With a third-party SNT, a third party creates the trust rather than the beneficiary. Typically, the use is for a third-party donor’s assets to supplement the government benefits received by the beneficiary. Since the estate plan for the third party provides the assets, the beneficiary has no prior ownership concerning the funding. This distinction prevents a Medicaid payback provision. Any remaining assets left after the beneficiary’s death can pass to another individual.
Planning the financial future of a special needs child is important. The differences in these trusts can guide you in protecting their financial and legal interests.]]>