Winn Beaudry & Winn
Newsletter from Winn, Beaudry & Winn, Attorneys at Law
Issue 10
August, 2014  
Ward Beaudry
G. Ward Beaudry 
CONGRATULATIONS TO ALL HIGH SCHOOL GRADUATES!
Now You Need Some Legal Protection
 
Surrounding the mixture of excitement and chaos that comes with a child turning 18, estate planning often is not on the to-do list.  Things like shopping for dorm supplies or getting them moved into a first apartment take priority.

Since many 18-year-olds don't own substantial property, they and their parents don't consider estate planning critical. However, Winn, Beaudry & Winn considers two documents as critical for the newly legal adult: a Medical Power of Attorney and a General Durable Power of Attorney.

These documents will give parents access to critical information, including grades, and allow parents to provide assistance in case of emergencies.

And on the subject of children, please review the two articles below on gifting wisely and trust vehicles that can help shape how the assets you give away are used.

Please contact me if you have any questions or concerns. I am always happy to take your call. (Note: If you don't know what these documents are, or do not have them in place, you should probably call me anyway.)

 (888) 330-1467 or (214) 969-0001
or email at gwb@winnbeaudrylaw.com

Five Ways To Give Wisely

Giving is a rewarding and popular activity. The trick is to avoid consequences that you didn't see coming, namely a surprisingly large tax bill for either the giver or the recipient. Here are five ways to transfer wealth that, if done properly, can reduce or avoid taxes:
 
1.    Annual Gift Exclusions -
In any calendar year, $14,000 can be gifted to any individual without filing a tax return. If you are married, your spouse can join in and the gift allowance doubles to $28,000. IRS regulations allowing gifting more than this to one person, but it will trigger a Gift Tax Return. Amounts given greater than $14,000 begin to reduce the amount you can leave tax-free at death.
2.    Create a Roth IRA -
A Roth IRA allows a limited tax reduction on a specific a
mount of savings for retirement. With this vehicle, the tax break is granted on the money withdrawn from the plan during retirement.
3.    Directly Pay College Tuition or Medical Bills -
This option is an exception to the annual gifting limit mentioned in Item 1 above. If you pay medical expenses or college tuition directly to the provid
er for the benefit of your beneficiary, the $14,000 limit does not apply.
4.    Gift Appreciated Assets to Lower Tax Brackets -
This can  be effective, but  beware of the "kiddie tax," which imposes tax rates at the parents' level for unearned income going to children under 19, or dependent college students under 24.
5.    529 Education Savings Plan -
Earnings on these investments are tax-free as long as the fund is used for education or related expenses at the college level. Further, the funds are exempt from the financial aid formulas used for grant and scholarship opportunities and are protected from creditors. Custodial Accounts are another option for college savings, but they have the disadvantage of being counted in the financial aid formulas, thereby reducing potential need-based grants or scholarships.

If gifting is in your plans, arm yourself with the experience and knowledge of Winn, Beaudry & Winn. Please phone or email to discuss your personal situation.

Giving To Help Shape Behavior Gold Star

 

Many parents worry about how their children will use their assets after they are gone. If concerns exist as to whether children will make wise decisions in the future, we will often suggest creating an incentive trust. The idea is to encourage or reward specific behaviors and activities, and to discourage or even punish "bad" behaviors and tendencies.

 

   While it is possible to put incentives in a will rather than in a trust, a will goes through probate and your wishes become public record. A trust is private, between you, your attorney, the trustee and the trust beneficiaries.

 

   A typical  trust covers health, education, maintenance and support. The incentive trust adds conditions. For example, you could specify that a recipient will receive $1,000 per month provided he or she graduates from college.

 

   We have found that the most effective trusts address as many "what ifs" as possible. These trusts prove especially productive for beneficiaries with problems, with one major caution. We strongly recommend that in taking steps to encourage one beneficiary, you should avoid punishing the "good kid." For example, if funds are provided for a child who repeatedly needs some sort of rehab, then other children also should receive benefits.

 

  For more information about how such a trust might work, please contact Mr. Beaudry at 214-969-0001 or by email at gwb@winnbeaudrylaw.com.

 

G. Ward Beaudry, Esq.   
gwb@winnbeaudrylaw.com       
      View my profile on LinkedIn                                                

 


4200 Thanksgiving Tower
1601 Elm Street
Dallas, Texas 75201-7203

Telephone: 214-969-0001
www.winnbeaudrylaw.com

This E-letter is intended to stimulate thought and discussion, and to provide you with some useful ideas and guidance in the areas of estate planning and business law. The materials and comments made herein do not constitute and should not be treated as legal advice regarding the use of any particular estate or business planning or other technique, device or suggestion or any of the tax or other consequences associated with them. Although we have made every effort to ensure the accurancy of this information, Winn, Beaudry & Winn does not assume any responsibility for any individual's reliance on the information presented in this document. Each reader should verify independently all statements made in this E-letter before applying them to a particular situation and should determine independently the tax and other consequences of using any particular device, technique or suggestion before recommending it to others. 

 

The information contained in this electronic message is legally privileged and confidential under applicable law and the information may be protected from disclosure under the Attorney-Client Privilege and/or the Attorney Work Product Privilege. This electronic message is intended only for the use of the individual(s) or entity named above. If the recipient of this message is not the above-named intended recipient, you are hereby notified that any dissemination, copy or disclosure of this communication is strictly prohibited and may carry criminal and/or civil penalties and civil liabilities for unauthorized disclosure, dissemination or copying. If you have received this communication in error, please notify Winn, Beaudry & Winn at (214) 969-0001 and purge the communication immediately from your computer system without making any copy or distribution.

Treasury Circular 230 Required Statements:

 

Tax practitioners authorized to practice before the Internal Revenue Service are subject to the requirements of "Circular 230" (31 CFR part 10), as published by the Treasury Department.  The Treasury Department has made significant changes to Circular 230, effective June 20, 2005, that affect the form and content of tax advice that we provide. In order to comply with these new changes, while minimizing the cost to our clients, we are including the following statements in all of our e-mail communications.  If you have any question about the statements, please do not hesitate to contact the sender.

1. Any tax advice contained in this e-mail (including any attachments) was not intended or written by the sender of this e-mail to be used, and cannot be used by the recipient or any other person, for the purpose of avoiding any Internal Revenue Code penalties that may be imposed on such person. 

2. Any tax advice contained in this e-mail (including any attachments) was not intended or written by the sender of this e-mail to be used or referred to, and cannot be used or referred to, in promoting, marketing, or recommending the transaction(s) or matter(s) addressed herein.

In This Issue
Congratulations High School Grads
Five Ways To Give Wisely
Adding Incentives to your Trust
Quick Links

News!

 

   

Ward Honored (Again) as a Top-Rated Trust & Estates Lawyer
Top Lawyer 2013

  ALM Legal

Intelligence has named Ward Beaudry a Top Rated Lawyer in Trusts and Estates. ALM offers detailed business information and competitive intelligence about the legal industry and publishes the magazines Corporate Counsel and The American Lawyer.  

 

   ALM recognized  Ward because of his coveted AV

Preeminent ranking given by the Martindale-Hubbell peer review. AV Preeminent is the highest rating  available  

and
reflects a combination of achieving a Very High General Ethical Standards rating and a Legal Ability rating of at least 4.5 out of 5. The rating denotes adherence to professional standards of conduct and ethics, reliability, diligence and other criteria relevant to the discharge of professional responsibilities.

  For the third consecutive year, Ward was honored as a Super Lawyer. Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high-degree of peer recognition and professional achievement. The selection process includes independent research, peer nominations and peer evaluations.

In The Community 

Ward recently participated in a full-day strategic planning effort for Family Compass, an agency that works to prevent child abuse and neglect in Dallas. He has been on the board of directors since its founding in 1992. Winn, Beaudry & Winn serves as general counsel for Family Compass and Ward is the current secretary of the organization.
  You can learn more about Family Compass here. 
 

 

 

 

 
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