What would this financial roadmap include?

First, contact information. Make a list of names, addresses and phone numbers of family members, closest friends, doctors, and any professional advisers that you use (CPA, lawyer, banker, investment adviser, and insurance agent). You may also want to list the name of the person who handles your employee benefits at work.

Next, financial accounts. Where are your bank accounts? Where are your investments? Who would I contact regarding these accounts?

Next, the location of important documents. Where can I find your bank account, mutual fund or brokerage account statements?  Where are your life insurance policies, employee benefit information, birth and marriage certificates, passports, original copy of your will, trust agreements, powers of attorney, retirement plans and beneficiary information and so forth?

The basic idea is that if you were not able to tell me in person about your financial information how would I find out about locating this data?  

You should make copies of this financial roadmap. Keep one. Give one to a trusted family member, or adult child, or trusted financial adviser. Maybe you give another copy to someone in another location. Perhaps you might keep a copy at a secure location on the internet.

I know some advisers have suggested scanning important documents and keeping copies at secured locations on the internet. When people had to leave their homes they were often not able to take important papers with them. When it came time to enrolling their children for school they did not have copies of birth certificates, immunization records, etc.

These are just some thoughts.  You will improve upon the ideas as you put together your financial roadmap. There may be other items you want to include and describe in more detail. Remember to keep the lists and copies updated as your financial information changes.

Protecting Your “Virtual” Estate

What happens to the e-mail and digital information of a decedent?

One of the difficulties of settling an estate is finding out all that the decedent owns. I have recommended creating a financial roadmap to help survivors and executors locate assets and records of the estate. As more and more people conduct financial matters online, a roadmap of some type will be increasingly important.

Since more and more of our financial matters are online, we need to consider how to not only secure this information, but how to transfer this “virtual” estate to beneficiaries and executors. Millions of people store some financial records online and these are often locked behind user names and passwords. These digital assets can range from things with financial value (such as online bank and brokerage accounts) to other valuable properties like domain names, blogs, Twitter accounts and even social media pages (and so many people store family pictures online).

Simple tasks may be more difficult without the proper log-in information. For example, it may be difficult to cancel the cable service or stop automated bill payments. Some professionals have referred to this as a “headache on top of a heartache.”

Where do you begin? For starters, you may want to take inventory of all your digital accounts and store an upload list of passwords on a flash drive, locked in a safe. You may want to consider some websites which enable users to release account information to designated beneficiaries after their death. Taking even a few steps now can keep your assets from getting lost in the cemetery of cyberspace.

Legacy Planning

Have you thought about leaving your values AND your valuables to your children and beneficiaries?  One planner wisely commented that we receive and pass on two kinds of inheritances, not one. The first is the financial inheritance. This is sometimes referred to as estate planning and perhaps you have this aspect of your financial health in good shape. You have met with an estate attorney to review your plans, create documents, etc. This process involves leaving valuables to your beneficiaries.

The second type of inheritance is legacy planning – no, not fame, but the values, traditions, and lessons that are most important to you. This is what you really want your children and beneficiaries to inherit.  This is what will help them for years to come.

Why are so many inheritances squandered or lost within a relatively short time?  Usually it is not because there has been poor estate planning – although this is important and will lead to a great loss of funds if done improperly. Loss of inheritances result from the failure to pass along values and insights and an education on the proper handling of money.

I recommend you consider a “legacy roadmap.” This begins with a letter you write outlining the principles and values you want to leave behind.  But it does not stop there. Once the letter is written there is action to take. Ask yourself how I can better prepare my children and beneficiaries for their financial future?   From basic issues like the proper use of credit (and credit cards), to how to invest for the long term, to how do I budget my money – these are tools that can be learned today.  Gloria Steinem said “rich people plan for four generations, while poor people plan for Saturday night.”

May I help? Perhaps included in this year’s holiday gift, next year’s birthday present, a wedding or graduation present will be a one hour meeting with a financial adviser like me. Sound boring? Perhaps, but this bill for one hour might be the best gift they will receive for stronger financial health. We have no products to sell. This is just time to discuss important financial matters and future plans and goals. Feel free to contact me – by phone or in person, I will be glad to help.

What taxpayers should do if they get a letter or notice from the IRS

Every year the IRS mails letters or notices to taxpayers for many different reasons.

Here are some do’s and don’ts from the IRS for taxpayers who receive one:

• Don’t ignore it. Most IRS letters and notices are about federal tax returns or tax accounts. Each notice deals with a specific issue and includes specific instructions on what to do.

• Don’t panic. The IRS and its authorized private collection agencies do send letters by mail. Most of the time, all the taxpayer needs to do is read the letter carefully and take the appropriate action.

• Don’t reply unless instructed to do so. There is usually no need for a taxpayer to reply to a notice unless specifically instructed to do so. On the other hand, taxpayers who owe should reply with a payment. IRS.gov has information about payment options.

• Do take timely action. A notice may reference changes to a taxpayer’s account, taxes owed, a payment request or a specific issue on a tax return. Acting timely could minimize additional interest and penalty charges.

• Do review the information. If a letter is about a changed or corrected tax return, the taxpayer should review the information and compare it with the original return. If the taxpayer agrees, they should make notes about the corrections on their personal copy of the tax return and keep it for their records.

• Do respond to a disputed notice. If a taxpayer doesn’t agree with the IRS, they should mail a letter explaining why they dispute the notice. They should mail it to the address on the contact stub included with the notice. The taxpayer should include information and documents for the IRS to review when considering the dispute. People should allow at least 30 days for the IRS to respond.

• Do remember there is usually no need to call the IRS. If a taxpayer must contact the IRS by phone, they should use the number in the upper right-hand corner of the notice. The taxpayer should have a copy of their tax return and letter when calling the agency.

• Do avoid scams. The IRS will never contact a taxpayer using social media or text message. The first contact from the IRS usually comes in the mail.

Connect with Keith Hiatt by calling 336-292-6872

Email: [email protected]

Breslow Starling Certified Public Accountants in Greensboro
3825 W. Market Street, Suite 200, Greensboro, NC 27407

Helpful Links: https://breslowstarling.com/helpful-links/