Winn Beaudry & Winn
Newsletter from Winn, Beaudry & Winn, Attorneys at Law
Issue 14
July, 2015   
Ward Beaudry
G. Ward Beaudry
Three Documents Every 18-year-old Needs - and One More to Seriously Consider

   With all the excitement of back-to-school and that first semester of college, the legal needs of an 18-year-old might tumble down the list of things to do this summer. There is a tendency to think of these documents only in reference to older folks, but their power to protect you and your newly-minted adult child is just as strong.

   We recommend at a minimum that you have your child sign a HIPPA Authorization, Medical Power of Attorney and Durable Power of Attorney. A fourth document we recommend is a Will, but the first three we consider essential.
    While colleges work hard to promote safety in and around their campuses, accidents are a fact of life for young people. A quarter-million Americans between 18 and 25 are hospitalized with nonlethal injuries each year. Add to that the likelihood of trips during break periods, both school-supported and freelance, and the possibility of study abroad, and it is clear that parents should have the legal authority to speak to the medical needs of their child in the event the child is unable to do so.
   As to the Durable Power of Attorney, it gives a parent the right to enter into, negotiate and amend contracts on behalf of the child. One advantage, should the parent choose, is the right to access the student's grades. Many colleges will not disclose grades without a student's permission and the power of attorney can be used to overcome this obstacle.
   A Will is often ignored because many 18-year-olds have not acquired much property. Still, life is unpredictable and your child might come into property sooner rather than later. Also, by having one in place early, the child is familiar and comfortable with the concept. In the future as needs change, he or she will face a revision of the Will rather than starting from scratch.

Please contact me if you have any questions or concerns. I am always happy to take your call.
 (888) 330-1467 or (214) 969-0001


Tips to Save on College Costs  
   College costs have been climbing steeply for years now and the prospect of paying for one or multiple children to achieve degrees is daunting. We recently came across these tips to save for college:
  1. START NOW: If you stop reading now, at least heed this critical advice. It is a simple matter of the "law of compounding." Get those dollars working for you sooner rather than later.
  2. CAREFULLY CHOOSE YOUR SAVINGS VEHICLE: Financial Aid formulas favor money held in a parent's name over funds in a child's name. There are many options available.
  3. DON'T OVERLOOK MERIT-BASED AID: Many families skip the Free Application for Federal Student Aid (FAFSA) because they believe they make too much money. There is merit-based aid out there, regardless of financial need, but to qualify you must complete the FAFSA.
  4. TAKE ADVANTAGE OF REWARD PROGRAMS: There are an increasing number of these credit card programs out there that allow you to build tuition credits and other rewards, some of which can even be transferred directly into a 529 College Savings Plan. 
  5. ENLIST FAMILY AND FRIENDS: If there are people that want to gift your child, suggest contributions to the college savings plan or 529 Plan you have established.

These tips are courtesy of Northwestern Mutual and can be accessed in more detail here. 

.
    Competent advice is just a phone call away. 
       - Ward  
Beware of Problems in Passing on the IRA Portion of Your Estate
 
   At the end of 2014, about two-thirds of U.S. households held an IRA or other tax-deferred retirement plan and there was more than $7.3 trillion in assets in those plans.
   They have been a wonderful way to save for retirement with tax advantages for the saver. Unexpected tax consequences can occur, however, when they are passed on as part of an estate. Some planning in advance can help.
   Beneficiaries are easily named in the documents establishing the IRA and are easily changed as times and circumstances change. 
   The problem is that there are strict schedules for mandatory distributions that apply to the original holder. At the point they are passed on as part of an estate, new mandatory distribution schedules take over based on the circumstances of the beneficiary. The beneficiaries have little flexibility in the distributions and it could result in a large tax bill.
   Some planning in advance could rearrange assets to take advantage of charitable planning strategies. For more on this topic, read the complete discussion here from our friends at Crescendo.
   
     
  
For assistance with any estate issues, please contact Mr. Beaudry at 214-969-0001 or by email at gwb@winnbeaudrylaw.com .

 

IRS Says "Bye-Bye" to
Estate Planning Tactic

Act Now to Take Advantage Before Expected Fall Action 

 

   Setting up a family partnership or Limited Liability Corporation (LLC) and transferring inheritable assets is a popular estate planning tactic. The tool could disappear in some situations with new IRS regulations expected in September.
   The concept was created to allow the transfer of assets considered illiquid so that they would receive a discount on the value of the asset for tax purposes for the heir. An example would be minority shares in a family corporation, which could have less value than shares sold on the open market because they could only be transferred to a family member. The tactic was created to protect the family of a minority shareholder from having to sell for a bad deal in order to pay an inflated tax bill.
   Estate planners have expanded the tactic into other areas besides the transfer of family held shares and in most cases the transfers have held up in court.
   According to sources quoted by Robert Milburn in Barron's, the changes could be announced in September. While the changes might not be issued in their final form at that time, the window to set up such entities could close on the date of issue.
   If you own substantial assets that would be taxed at the 40 percent estate tax rate at death, you should have your planner consider this option now to lock in the discount.
   For the complete Barron's article, go here.
   
 
Mr. Beaudry is happy to assist with any estate issues. Phone him a 214-969-0001 or 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

News!

 

Ward's Last MS150 Fundraising Effort

 

As chronicled in our previous newsletter, Ward committed to raising funds and participating in one last fundraising effort last spring for the MS150, which raises funds to fight multiple sclerosis. A training crash and subsequent surgery kept Ward off his bike for the event, but he still finished 47th in the fundraising effort. Thanks to all those who contributed financially, and for the moral support! Ward is training again now and preparing to ride for health and fun in the Autumn in Bonham 62.5-mile ride in September.

  

 

In the Community
 
Ward has assumed extra duties as corporate secretary of Family Compass in Dallas, a charity devoted to preventing child abuse and neglect. Ward has long been the general counsel for Family Compass. The organization is thrilled to be named one of the beneficiaries of the Crystal Charity Ball, which raises funds for nonprofit organizations that serve children in Dallas County.
For more information on the great work by Family Compass, click here. 
 
 
 
Ward honored again for 2015 as a Top Rated Lawyer and a Top Attorney in Texas 


Top Lawyer 2013
 
 

Among G. Ward Beaudry's qualifications

- Accredited by the U.S. Department of Veterans Affairs 
 - Member, National Academy of Elder Law Attorneys
 - Member, College of the State Bar of Texas 
 

 

 

 

 
Thanksgiving Tower 
4200
Thanksgiving Tower