Month: February 2025

BOI/CTA UPDATE: Reporting Requirements Reinstated…For Now

Post author By Sara Thomas
Post date February 21, 2025
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UPDATE: On February 17, 2025, the U.S. District Court for the Eastern District of Texas, in the case Smith vs. Dept. of the Treasury, issued a ruling reinstating the reporting requirements for the Corporate Transparency Act (“CTA”). For most companies, beneficial ownership information (“BOI”) must now be reported to the U.S. Treasury’s Financial Crimes and Enforcement Network (“FinCEN”) by March 21, 2025.

But wait. There’s more. This may not be the final word. Several other BOI/CTA cases are currently being appealed in various jurisdictions. In addition, on January 15, 2025, the Repealing Big Brother Overreach Act was reintroduced in the US Senate and House of Representatives. If enacted, the bill would repeal the CTA. Check back here for updates.

What this means for you: To learn more about the BOI/CTA, including how it affects you and your business – now and in the future – book a 15-minute call with me to hear what I recommend for your filing and to discuss how I can support you and your business on an ongoing basis.

This article is a service of August Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning™ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Tags BOI/CTA Requirements, BOI/CTA Update, Business Owner, FinCEN

Estate Planning

Missing Assets: Why Estate Planning is More Than Just Documents

Post author By Sara Thomas
Post date February 19, 2025
No Comments on Missing Assets: Why Estate Planning is More Than Just Documents

Did you know your assets could become “unclaimed property” and be turned over to the government? It happens more than you think! State governments across America currently hold a staggering $60 billion in forgotten and abandoned assets. And this isn’t just spare change we’re talking about. These are life insurance policies, forgotten bank accounts, uncashed checks, retirement funds, and other valuable assets that have lost their connection to their rightful owners.

I regularly see the consequences of overlooked assets and inadequate estate planning. Let’s explore how assets are lost and become “unclaimed,” how to prevent your assets from ending up in this $60 billion pool, and, most importantly, how to ensure your hard-earned assets reach your loved ones the way you want.

How Assets Become “Lost”

You might wonder how billions of dollars in assets could go missing. The truth is, it happens more easily than you’d think. Think about this: you become incapacitated or die, and someone in your family (either someone you named legally or someone chosen by a judge) has the job of finding all of your assets. Would they be able to find everything? How easy would it be for you to find everything, and you know what you earned, the accounts you set up, when you worked for that one company that set up a retirement account for you, got that insurance policy, etc.

What we see commonly when someone passes away without an updated estate plan (including a comprehensive asset inventory), is that their loved ones often have no idea what assets exist or where to find them. Those assets could eventually end up in state custody instead of going to the people you love. That money could be used to fund your children’s education, an investment in a loved one’s business, or to enhance the lives of the people you love most.

“Traditional” or “old school” estate planning often contributes to the problem. With an estate plan drafted by a financial advisor or lawyer who sells a will or trust rather than a comprehensive plan (or from a DIY tool like cheap legal or AI), you typically receive a set of documents to review and sign. You might take these documents home, put them on a shelf or in a drawer, and never look at them again. There’s usually no inventory of your assets, which means that some of your assets could be lost or overlooked and end up part of that $60 billion in unclaimed property.

Why an Asset Inventory and Regular Review is Crucial

I know that effective estate planning isn’t a one-time event – it’s a lifelong process that includes an inventory of what you have, regular updates to your inventory, and the legal documents that go along with it. My process begins with a Life & Legacy Planning® Session, where you’ll create an inventory of your assets, ensuring nothing gets overlooked or forgotten. This inventory includes not just the obvious assets like your home and bank accounts but also:

Life insurance policies
Retirement accounts from all previous employers
Investment accounts
Business interests
Valuable personal property
Intellectual property rights
Digital assets and cryptocurrency

Digital assets present a particular challenge in today’s world. Cryptocurrency, online banking accounts, social media profiles, and digital business assets can be especially difficult for loved ones to track down and access without proper planning. Many people don’t realize that without proper documentation and access instructions, their digital assets could become effectively lost forever, even if their family and friends know they exist.

I’ll also help you keep your inventory updated when you work with me. I regularly review your Life & Legacy Plan to ensure your asset inventory stays current and properly aligns with your goals, wishes, and values. This comprehensive approach helps prevent your assets from becoming lost so they can go to the people you want in the way you want.

Beyond the Financial Impact

While creating an asset inventory is crucial, my Life & Legacy Planning process goes several steps further. It’s not enough to simply list what you own – you need to ensure these assets are properly titled, beneficiary designations are up to date, and your loved ones know how to access everything when the time comes. I support you with it all. I will also be there for your loved ones when you no longer can.

In addition, there’s another crucial part of planning that’s often omitted from traditional or DIY planning. It’s the realization that the value of many assets isn’t financial. Family photographs stored in the cloud, emails containing important family history, and digital collections of music or art can have tremendous sentimental value. Yet without proper planning, these too can become effectively “unclaimed property” – inaccessible to the very people meant to inherit them. When these invaluable family legacies are lost, they become another kind of unclaimed property, though their value can’t be measured in dollars.

Remember, proper estate planning isn’t just about having the correct documents – it’s about taking all the steps needed to make things as easy as possible for your loved ones. It’s the greatest act of love you can give to the people you cherish most.

Your Next Step

I can help you create a comprehensive Life & Legacy Plan that includes a complete asset inventory, regular reviews, and updates to ensure nothing gets lost or forgotten. I’ll also help you create a Life & Legacy Interview so your most valuable assets – your values, traditions, and love – get passed on to the people you love most. Let’s work together to protect your legacy.

Schedule a complimentary 15-minute consultation and learn more about how I can help.

Tags Asset Inventory, Estate Plan, Lost Assets, Personal Family Lawyer, Trust Funding, Unclaimed Property

Estate Planning

4 Estate Planning Myths That Put Your Loved Ones at Risk

Post author By Sara Thomas
Post date February 12, 2025
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Surveys conducted in 2024 by Caring.com and Ameriprise Financial revealed a troubling trend: Americans are falling behind on estate planning. The Caring.com survey revealed that only 32% of Americans have a will – a 6% decline from 2023. The Ameriprise survey found that 52% of couples lack estate plans. These statistics highlight a dangerous disconnect between understanding the importance of estate planning and taking action. Let’s examine these misconceptions and their potentially devastating consequences.

Myth 1: “I don’t have enough assets to need an estate plan.”

This dangerously narrow thinking ignores that estate planning isn’t just about financial wealth. It’s about doing the right thing for the people you love so you don’t leave a mess and ensuring your wishes for your care are considered if you cannot decide for yourself due to an accident or illness.

If you haven’t created a Life & Legacy plan (the type of comprehensive planning I offer), your loved ones could face lengthy court proceedings, unnecessary taxes, and difficulty accessing financial accounts, which could have devastating consequences if bills need to be paid.

It’s also about:

Ensuring what you DO have goes to the people you want in the way you wish to (and stays out of the court process);
Your children being raised by people you choose;
Your wishes for your medical care are honored if you become incapacitated or if your mind deteriorates;
Only people you trust can manage your finances if you can’t manage your finances yourself and
Leaving your loved ones with your most valuable assets – your values, insights, stories, experiences, and love.

Moreover, a Life & Legacy plan can minimize conflict among your loved ones. By clearly outlining your intentions and ideally getting my support to share them with them, you significantly reduce the chances of misunderstandings or disputes and increase the chances that your resources will be used to create a better future for the people you love.

Finally, a well-designed estate plan will save your loved ones time and money by ensuring the people who matter know what you have, where it is, how to find it, and what to do with it when they do find it. It will keep them out of court and conflict.

In short, an estate plan is not a luxury reserved for the wealthy; it’s necessary for anyone who has things that matter and people who matter. If that’s you, and you don’t have an estate plan (or your plan could be outdated), let’s talk soon.

Myth 2: “My spouse and I trust each other completely.”

Ameriprise’s survey reveals that 95% of couples trust each other with finances, and 91% share financial values. When couples don’t plan because they trust each other to fulfill their wishes, they overlook several essential matters.

For instance, trust between spouses doesn’t prevent legal complications or avoid court. Without a Life & Legacy plan, a surviving spouse may face lengthy probate proceedings, increased tax burdens, and difficulty accessing accounts. This strain can damage relationships and deplete assets meant for heirs. Even worse, if both spouses die simultaneously, the complications can be significant, especially if the spouses have children from prior marriages or minor children.

Another potential issue arises if the surviving spouse remarries. Without an estate plan, assets could unintentionally be passed to the new spouse instead of the people the deceased spouse loved. In some cases, children may even be accidentally disinherited, leaving them without the financial support their parents had planned to provide.

Myth 3: “Estate planning is too expensive.”

Another common misconception is that estate planning is a luxury reserved for the wealthy because of its perceived high cost. The reality? Avoiding estate planning due to cost concerns can lead to far more significant time and money costs for the people you love down the road. Without a plan, your loved ones may face costly probate proceedings, unnecessary taxes, and legal disputes that can drain your estate and create additional stress for your loved ones during an already difficult time. These costs often far exceed the upfront investment of creating an estate plan.

Beyond the financial aspect, the peace of mind that comes with knowing your loved ones are protected is invaluable. A Life & Legacy plan ensures that your wishes are carried out, your loved ones are cared for, and potential conflicts are minimized. By addressing these matters proactively, you save the people you love from emotional and financial burdens, making Life & Legacy planning one of the wisest and most compassionate investments and the best gifts you can give those you love.

Myth 4: “I don’t need to worry about who would raise my kids.”

Many parents of minor children assume that in the event of their death, loved ones will naturally step forward to care for their children. Unfortunately, these assumptions are often misplaced. Without a Kids Protection Plan^Ⓡ, which I support you to create, the decision about who raises your children will be left to a judge – a complete stranger to you and your children. And when a stranger decides who will raise your kids, it might not be the person you would have wanted. In some cases, the individual granted guardianship could have values, parenting styles, or circumstances entirely incompatible with how you envisioned raising your children. Even if you have named legal guardians for your children in a prior created will, it’s likely not taken into consideration the six common mistakes I see consistently when people (and even their well-meaning lawyers) name legal guardians without the training around planning for the needs of families with minor kids at home. Call my office if you have a minor child and have named legal guardians but want me to review your plan to see if you’ve made any of the six common mistakes.

Another important consideration is the financial burden on your children’s chosen guardian. If you haven’t created a Life & Legacy plan and allocated sufficient funds for your children’s care, even willing loved ones might decline guardianship, leaving the court to make an even more challenging choice.

A Life & Legacy plan alleviates the potential financial burden on your chosen guardians. It ensures your children receive the care and stability they need during an emotionally challenging time.

Take Action Now to Protect the People You Love

I’ve seen too many people suffer negative, yet unnecessary, consequences after a loved one dies. And if you haven’t experienced it yourself, you probably will. But with the proper education, beginning with correcting these dangerous myths about estate planning, I believe we can break the cycle of strife.

I start with education so you are clear on what would happen to your loved ones and your assets if you become incapacitated and when you die. Then, we will work together to create a plan that aligns with your values, goals, loved ones, and most importantly, that works when you need it to.

We call it the Life & Legacy Planning® process. Once you’ve created your Life & Legacy plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your property protected.

Tags Estate Plan, Estate Planning, Estate Planning Attorney, Estate Planning Myths

Estate Planning

Five Essential Steps to Protect Your Loved Ones

Post author By Sara Thomas
Post date February 6, 2025
No Comments on Five Essential Steps to Protect Your Loved Ones

Do you know that uneasy feeling when you think about what everyone you love would do if (and when) something happens to you? That nagging voice reminding you that you still haven’t created a will or trust or updated the estate plan you do have?

As we enter 2025, it’s time to stop pushing those thoughts aside and take action to protect the people you love most. Many people avoid estate planning because they think it will be complicated, expensive, too time-consuming, or emotionally challenging. But the truth is, not having a plan, or having an out-of-date plan, is far more costly – financially, emotionally, and time-wise – for the people you love.

Let’s take a look at five things you can do right now to create lasting peace of mind.

Step 1: Get Financially Organized

One of the biggest challenges people face after losing a loved one is trying to piece together their financial life. Where are all the accounts? What insurance policies exist? What bills need to be paid? Without proper organization, your family could spend months or even years trying to track everything down. Worse yet, anything they don’t find will be turned over to the State Department of Unclaimed Property, where there are approximately $60 billion in lost assets nationwide.

As important as it is, financial organization isn’t just about making lists – it’s about creating a clear roadmap for the people who will handle your affairs when you cannot. This includes documenting all your accounts, insurance policies, important passwords, and key contacts. When your loved ones need access to this information, it should be readily available, updated, and easy to handle. This is why our Life & Legacy Planning process begins with a financial organization, and then our ongoing Life & Legacy Planning service supports you to maintain your financial organization throughout your life, so it’s handled with as much ease as possible for the people you love when something happens to you.

Step 2: Create a Lasting Message for Your Loved Ones

When someone dies, their loved ones often wish they had one more conversation, one more chance to hear their loved one’s voice or read their words. That’s why recording a Life & Legacy Interview is part of our planning process. It’s truly one of the most meaningful gifts you can give the people you love, and who love you.

This message isn’t just about saying goodbye—it’s about sharing your values, hopes, and life lessons. Consider what you want future generations to know about your life journey.

What wisdom do you want to pass down?

What family stories, or even recipes, should be preserved?

While you may think “generational wealth” is just about money, the truth is that people who can learn from the recorded history of past generations have true generational wealth that’s far more irreplaceable than any dollar ever could be.

Your words will become a treasured part of that legacy, offering comfort and guidance long after you’re gone.

Step 3: Learn About Tax Planning

Many people don’t realize that proper estate planning can help minimize or eliminate taxes their loved ones might otherwise have to pay. Without planning, they could lose a significant portion of their inheritance to estate taxes, income taxes, or capital gains taxes.

Strategic tax planning isn’t about avoiding your obligations – it’s about ensuring more of your hard-earned assets go to the people you love rather than the government. Working with a trusted advisor who understands both estate and tax law can help you identify opportunities to protect your loved ones’ financial future.

Step 4: Plan Your Final Farewell (and Your Last Days)

While it might feel uncomfortable to think about your funeral, planning and paying for it in advance is one of the most loving things you can do for the people you love. When you’re gone, they will be grieving. The last thing they need is to make difficult decisions about your funeral while trying to guess what you would have wanted.

By planning ahead, you ensure your wishes are honored and protect the people you love from emotional overspending during a vulnerable time. You can choose and pay for exactly what you want, locking in today’s prices and relieving your loved ones of this financial burden.

Even more importantly, consider how you want to spend your last years, months, or even days and discuss that with the people who will be responsible for your care now. This could be a conversation we can help facilitate if bringing it up or even thinking about it alone feels too challenging or if you keep putting it off. This courageous conversation is one of the best gifts you can give to the people you love.

Step 5: Create a Comprehensive Life & Legacy Plan

All these elements come together in our comprehensive Life & Legacy Planning® process, which guides you to understand the law and how it will apply to your unique situation, considering your family dynamics and assets, so you can make educated and informed choices to ensure your loved ones stay out of court and out of conflict when something happens to you. This isn’t just about creating legal documents – it’s about creating a plan, maintaining it, and ensuring your loved ones know who to turn to when something happens to you.

Creating a Life & Legacy Plan with me includes clear instructions about who gets what, who’s in charge of what, and most importantly, how to find and access everything when needed. It also includes specific directives about what happens if you become incapacitated. In addition, you’ll have the opportunity to outline your memorial service, and we’ll support you to record a Life & Legacy Interview that your loved ones will cherish for the rest of their lives.

The start of a new year is the perfect time to take these essential steps to protect the people you love. Don’t wait until it’s too late – the greatest gift you can give your loved ones is the gift of preparation and peace of mind.

How We Help You Get Started

We help you put these essential protections in place. Through our Life & Legacy Planning® process, we’ll guide you in creating a lasting message for your loved ones, implementing smart tax strategies, planning your final arrangements, getting your finances organized, and creating a comprehensive plan that ensures the people you love stay out of court and conflict. Most importantly, we’ll help you make informed decisions that align with your values and wishes. So don’t delay! Let us help you do the right thing for your loved ones.

Tags Estate Plan, Estate Planning, Financial Planning, Legacy, Tax Planning

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