Estate Tax Relief, For Now

Submitted by Karen McSherry of The Law Office of Karen A. McSherry  

  2010 was the year without a federal estate tax; a real boon to the fabulously wealthy, but not really a concern for the rest of us. However, the reversion to the $1 million exemption, scheduled to go into effect on 1/1/11, would affect many more people. Couple that with the Massachusetts estate tax on estates in excess of one million dollars, and you could be looking at taxes taking a large bite out of your estate.

    
    Have no fear; the government is here- once again adding anything but stability and consistency to the tax code. For two years only, the federal estate tax will only affect estates over $5 million dollars. Curiously, the exemption is indexed for inflation beginning in 2012, the year before the provision is set to expire.

      The estate and gift tax exemptions are once again unified, meaning that regardless of whether you give away $5 million while living, or die with it, your tax would be the same. Last year, you could only give away $1 million dollars without incurring a transfer tax, despite the fact that there was no estate tax.

     Confused? Let’s say you had a $3.5 million estate and gave away $1.5 million in 2010 and then died later that year with $2 million dollars. You would pay no estate tax on the $2 million, but would have paid tax on the $500,000 (above the million) transferred during life. Had you died with the entire $3.5 million estate, there would also be no estate tax. Obviously, the person who chose not to gift made out better.

      Basis is Back- Last year, in a trade off to having no estate tax; the “step-up” in basis for inherited property had been eliminated. Now, once again, people receiving property from a decedent will take the date of death value as their tax cost. But, wait, there’s more. The 2010 rule of no step-up in basis was changed retroactively. Now, only for decedents dying in 2010, executors can choose to pay estate tax at the 2011 level (35% on estates over $5 million) in exchange for a step up in basis for all assets. Estates under $5 million will automatically receive step up treatment. Executors will really have to run the numbers for estates over $5 million with low basis assets to see which calculation yields the best result.

     Portability of Estate Tax Exemption - For the first time since the enactment of the estate tax, an exemption amount not used in the estate of the first spouse can be used in the estate of the second spouse. The thought of “wasting” one’s credit has led to the sophisticated trust planning that many people have. For the next two years, a married couple can transfer $10 million dollars tax free to their kids, regardless of who holds title to the property. However, in order to take advantage of this provision, both spouses must die in the next two years, and the exemptions cannot be stacked. In other words, if you were to be widowed twice in the next two years and then die, your executor can only use the exemption of your last spouse. The government wanted to be sure that the wealthy were not killing off spouses in order to receive multiple tax exemptions. You are perhaps thinking that the chances of someone going through two spouses in two years and dying themselves would be slim, but who are we to second guess the government?

   
All of the scrambling to stop the so-called “Bush Era” tax cuts from expiring on 1/1/11 has led to a reprieve of two years only. Chances are, as December 2012 approaches, we will again have to deal with the uncertainly of whether the current changes will be extended, or will the estate tax exemption revert to one million dollars.

Given the government’s track record, 2012 will be another interesting year. Stay tuned.

Karen McSherry 

The Law Office of Karen A. McSherry 

What the average week of a small business owner is like

Submission by Robin Clapp - Web Design by Robin   

     Before I go right into my story I want to stop here and say that my blog title is only truthful if I am your average small business owner because this story is about me.  As you are reading however think about how your week usually plays out.  Am I far off?  I'd like to hear about your story so please comment at the end.
       Monday morning I started off the week with 13 jobs on my breakfast plate.  Before the week was done the job list grew by 5, shrunk by 5 and a half dozen were moved along.  Just the fact that I have the knowledge to state these statistics is, by my standards, wildly impressive.  I am a small business owner fighting the good fight!
      What is the good fight you may ask?  Simply put its gaining new business, maintaining old business, reporting on business, and last but not least doing business.  My business is designing websites.
This week to help gain and maintain business I left the comfort of my home office to present at my BNI networking meeting, lead a chamber of commerce ambassador meeting, sat on the chamber of commerce board of directors and attended a book signing/presentation on blogging (hence my inspiration).
         I believe thus far I have covered the what and how, so now lets talk about the why.  Why do I juggle on average 18 website design jobs and 4 meetings to network and build my business on any given week?  Of everything I do for my business the designing of websites is what I am most passionate about and which comes easy to me!  Lets be honest if I didn't love designing websites why would I do all the gaining, maintaining and reporting!
          Is that it?  I love designing websites so I started Web Design by Robin and here I am a small business owner.  If it were that simple why didn't I just get a job working for someone else?  OK, now we are on to something.
        It's a choice.  We all have choices and this one was mine.  I chose this road, the one where I knew there was a good chance I might make less money and have to fight hard for my next assignment.  Why did I choose to be a small business owner?  Here is this week's reason.
        My son Trevor came home from school yesterday and told me he had a new assignment where he had to pick two people to compare and write about it.  I was almost brought to tears when he said he had chosen Harry Potter and Bilbo Baggins.  Please don't laugh, let me explain.  OK, maybe you can laugh just a little bit.
        My boys and I just finished reading out loud all 7 of the Harry Potter books this past December which took over a year and a half.  In fact deep down I think they are privately hoping to get an owl on their 11th birthday inviting them to attend the Hogwarts school of Witchcraft and Wizardry.  As you can probably guess we have moved on to the Hobbit.  Did you know - Harry has an invisibility cloak and Bilbo has an invisibility ring?  I can’t wait to read Trevor’s essay.   Reading as a family is one of our obsessions.   I don't know how else to describe it, we are obsessed!
       I don't commute 2 hours a day.  I don't pay for after school care.  I don't eat out at fast food restaurants.  I simply raise my kids and run my business the best way I know how!

Robin Clapp 
Web Design by Robin

Writer’s Block Unblocked

Submitted by   Fran Fahey  of Fran’s Fine Editing

      

    Ever have to write something, and find yourself putting it off, until it’s too late to do it at all? Ever get the sweats looking at a blank screen, then say to yourself, “Hmmm, where’s that sewing project I’ve been meaning to do for the last six months, I need to get it done NOW”? Don’t worry, you are not alone. Every author, no matter how experienced, faces writer’s block from time to time.

                  The more you write, the easier it gets, like any other practical skill. I am going to assume that you are starting with a topic you know you have to write about, like a letter to someone or a blog article. The trick I follow when I’m challenged by a topic is to just sit down at my computer and start writing what I know about the topic, even if it sounds weird. It physically and mentally loosens me up, like a warm-up exercise. I also find that it captures what I really feel about the topic, and it helps me get excited about it.

                   Then I research online what don’t know about the topic and add to the piece. Before I know it, I have several pages filled with stuff, which I then edit down to a reasonable amount of stuff (and then let my wife Jean edit the stuff into much Finer-sounding stuff, which she likes to do for fun sometimes). It may be a little backward, but it works for me.

                   Another technique I follow is to break the writing task into small pieces, just doing a little at a time. Then, I take my dog Riley out for a walk to clear my brain in between those small pieces. Amazing what I think of when I return from the exercise of letting Riley drag me around the block with him.

                    Don’t try to proofread what you are writing as you type, or it will interrupt your flow. Edit at the end of your task instead, when you can take a step back and look at the whole piece. I find if I am writing a letter of complaint to someone, the distance lets me come back to it and edit out the nasty tone—this way, the person might actually respond to my request for help, instead of filing me in the “oval” file. If you need some proofreading tips, see my post on “Proofreading: Feel the Pain.”

Good luck, and I look forward to reading some of your own ideas for unblocking writer’s block.

Fran Fahey

Fran’s Fine Editing

Where Should I Start?

Post by Jen Vondenbrink of Life Simplified

Last month I talked about Dipping Your Toe into Social Media.  I recommended not diving in, but instead to start small.  Still I get questions on where exactly to start.  Here are some ideas.

 For most of us Twitter is a bit foreign, so for this conversation, we’ll skip it.  Don’t get me wrong, there are terrific business applications for Twitter.  We’ll cover those in a later post.

 LinkedIn and Facebook

If you’re business works with other businesses or you are in a job search, LinkedIn is where you’ll want to start.  Instead of having drawers of outdated business cards, you can use LinkedIn to keep your database updated.  It’s also a great company and job search research tool.  You can get statistics on companies and job postings. 

If you’re selling directly to the consumer, Facebook is where you may want to start.  Facebook isn’t just for kids anymore.  Viable businesses are out there connecting with their customers on a regular basis and building relationships before the sale.  With the ability to share videos, articles, and photos, it’s a great place to share your consumer driven products and services. 

If being on a social network isn’t your thing, not to worry.  Blogging is a viable way to build your business.  Today you can start a written blog, video blog or even an audio blog.  A blog can attract new customers and consumers and show your expertise.  Written blogs don’t have to be 30 page papers either.  Most readers like short and sweet.  By building a library of content, you provide your customers a place to find out the latest information about your business and industry. 

But I’m not perfect!

No one is.  The key is to decide which platform compliments what you are already doing.  Then experiment.  You can’t mess things up.  People are very concerned about looking bad out there.  Mistakes show you are human.  Also even though Facebook has 600 million users, they all aren’t looking at you so relax and give it a try. 

I have several beginner workshops.  Some are free.  Some are hands on.  If you want some guidance, check out what’s coming up.  Specifically on March 4th, I have a workshop where you can build profiles and business pages in LinkedIn and Facebook on your own laptops.   

Jen

http://www.yourlifesimplified.com/

Life Enrichment and Leadership Training

781-864-1782

Mediation for Elders

This post contributed by Sara-Lynn Reynolds of Home Instead Senior Care

They are disputes that start quietly but brew into volcanic pressure and believe it or not they can split families apart.

Mom’s left a pot boiling on the stove again, so her daughters want her to give up her house.

An elderly father is getting forgetful and isn’t paying his monthly bills. His children who live far away find out that dad’s heat and electricity were turned off. One son wants to get his father declared mentally incompetent, so the family can take control of his finances. Dad gets angry when the kids try to help. He doesn’t want his kids to know how much money he has and how his finances are organized.

Dad’s got more scrapes on his car than the grandkids do on their knees so let’s take his car keys. The kids warn their father that they are going to take away his car keys. He threatens to write them out of his will. The father knows he isn’t driving well anymore but he just doesn’t want to give the keys up, especially to his children.

Might be time to call in a family mediator.

Mediators come in as a neutral third-party to help families negotiate difficult situations and choices. With mediation, the family members, along with the parent, can usually come up with a unified solution.

Trickiest of all are the family dynamics. Unfortunately it is fairly common to hear one sibling reacting bitterly towards another. Long-established family roles can play out the minute siblings walk into mediation.

Good mediators make sure that the parents’ voice is heard… even if that person has Alzheimer’s or dementia and might have trouble following the conversation. Even with limitations on their capacity, people still have the ability to say whom and what family member they are most comfortable with…whom they respect, and trust, and where they like to live. They may not have the capability to make substantial legal or financial decisions, but they certainly have the ability to express opinions, wishes and desires.

The field of elder mediation is growing and has benefits over taking family disputes to court. Mediation provides an opportunity to come together, make decisions that tend to work as opposed to litigation that can be more expensive and more contentious. Mediation allows the ‘family’ to remain connected and feeling good about the consensus they have reached.

Although the field of ‘elder mediation’ is new and so far has little regulation, there are avenues to research:

State and Community Mediation Centers to Massachusetts Council on Family Mediation... website:  http://www.mcfm.org/
 

Ask your local Council on Aging or Home Care Service for assistance in locating someone that has experience in this field.

And always feel free to contact us at Home Instead Senior Care….

Sara-Lynn Reynolds

Community Liaison for Home Instead Senior Care

Why I am a member of the local Chamber of Commerce

Food - plain and simple.  When an ambassador meeting involves Asian food from Bobby's Asian Grill & Sushi why wouldn't I join?  Now you must be thinking, are you kidding me - FOOD?

OK, so maybe it isn't just the food, but food is definitely part of it.  Let me go back to the beginning.

Long before I went into business for myself as a web designer I was a child in a family of six, a friend in the neighborhood, a classmate at school, and before long an engineer at a big company.  What do these all have in common?  Each stage in my life was surrounded by the support of others whom in the end became as dear to me as my family.

Four years ago I took a leap of faith and left my engineering job behind me.  I actually sat down and spoke with my paster about it.    Bernie said all I needed was faith that God would provide.  Here I was thinking how would my family survive without that big paycheck…  In the end my stubborn faith pushed me to shut the door and pray another one would open.

So I set out on my own, became my own boss and started designing websites.  This is GREAT, I'm home for the kids and I'm designing.  What more could I need?  It took me a year to realize what was missing!  Money for sure - but I'm not one to ogle over dollar signs.  I missed my colleagues and friends and lets face it people in general.

So on a Tuesday morning I had a tea and muffin with Kara at the Tri-Town Chamber of Commerce and later the same day I enjoyed lunch at the Hockomock BNI chapter.      So yes I joined for food, food with others whom like me needed help being successful in business.   In addition to being a faithful person I also believe I am honest.  This is not a lie - I have never attended an event where there wasn't food.

So is food really the secret?  Three years later I'm happy to have my friends in business and my home-based business and without much worry money to show for my efforts.  Three years of meeting at least twice a week with friends over food to discuss how I can help their business and they can help mine - yes the most challenging of tasks are always understood more easily over the breaking of bread or egg roll in the case of Bobby's delicious food.

Yesterday I attended a luncheon once again, this time to recognize and applaud my fellow business friends at the Tri-Town Chamber of Commerce's annual Success & Service Awards.   To my great surprise I was the proud winner of the president's award.  On my plaque read "Commitment, Contribution and Community Service".   As I stood up to receive the award I thought to myself  -  did I do all those things?   Then it came to me - yes - while I sat among my friends enjoying food and drink we did work hard - didn't we. 

Cheers and God Bless,
Robin Clapp

Robin Clapp is the owner of Web Design by Robin.  She currently serves on the board of the Women's Business Network of Southeastern MA as the Leading Lady Webmaster.

Consignment Shopping - post by Dotty Wyman Designs

Have you ever considered shopping at a consignments shop for interior design items for your home? 

     

Recently, I went into the Canton consignment shop "Go Simple" and was pleasantly surprised with the selection they had to offer. 
       The owner, Janet Conroy, had many decorative items, as well as, serving pieces for your kitchen or dining room.  You do have to hunt for the right pieces, but the rewards are big and the price tag is small. 
        This is a place where it is easy to take a risk, since items are usually sold at a fraction of their original cost.  She has lamps, clocks, glassware, prints and furniture pieces.  I liked this shop, because it wasn't all furniture or large items.  I was able to purchase a working marble lamp base for $20 that just needed a little cleaning up and a shade.  I think the lamp will work well with the new lamps my client has purchased over the past several months. 
       Another item I saw was a grandmother clock.  This is a beautiful decorative piece that will add tremendous interest to a room.  This is something no one else will have and looks like an heirloom that has been passed down. 

         Consignment shopping can be a great way to find unique items that add character and age to any newly decorated space.

I plan to go to some other consignment shops in Needham and Hanover.  These shops focus more on furniture.  I will let you know if there are any interesting decorative pieces to be found

 Dotty
Dotty Wyman Designs
508.219.4739

http://www.dottywymandesigns.com/
http://dottywymandesigns.blogspot.com/