Death & Taxes - The Value of Professional Services

Allow me to take the stage and give you a scenario...

Richard hated paying professional services such as CPAs, Attorneys, and especially Realtors. He thought he could read a book or pamphlet on anything to become an expert. Over the years he accumulated property and procreated with his two wives. Richard loved his kids but let's face it, Richard was busy growing his dynasty and missed a lot!

Richard was a man that thought he could escape paying Uncle Sam, as well as professionals. So Richard thought it wise to set up an offshore account so he could bypass taxes. Over the years he sent money overseas. He thought he could open accounts in various aliases. Over the years tax codes changed. Richard was not paying attention.

30 years later Richard found himself infirmed. His children, all of which tolerated each other during the holidays to keep dear old dad happy, had their own lives going on at this time. They tried their best to attend dad but never really connected or communicated leaving a lot of room for interpretations of intentions. Richard eventually died. He left no will, no sorted estate of any kind, and no one entrusted to manage his wealth he accumulated over the years. Things were a bit of a mess, a lot of fighting over money, and a group of attorneys feeding off the frenzy instead of being welcomed to what could have been a solution - establishing a will.

The result was a divorce of siblings and a disaster of management which left his business in a lurch.

DON'T BE A RICHARD! Manage your estate so your family can enjoy the value of your years of work and have a nice memorial.

Talk to a CPA

Hire someone to assist you with your taxes to benefit in your right offs. Also, if you have real estate, it is important to understand the vehicles which can assist you in savings of Capital Gains in the long run on investments such as a 1031 Exchange. You also need to understand you exemptions.

Qualified Attorney

Hire a Licensed Attorney in your state to write your will. Sometimes the simplest solution is right in front of you. Use your Bank for advise. Ask them to set your accounts up so you are probate ready. In some cases with PODs cash can transfer straight onto your designated persons. Look into these requirements.

Use a Realtor

Finally, please hire a Realtor to sell your property! Did you know that statistics say that FSBOs yield a much lower sales price (almost 5%-25%) than using a Realtor? That is a lot of money to leave on the table!

50% of FSBOs are sold to a person the owner already knows. With that comes emotion. When you use a Realtor, you take the burden of emotion out of your hands and place it in the hands of an agent. Realtors are professionals that understand the market with invaluable information at our fingertips, competency of laws, and a generous amount of resources to get the jobs done.

Plan for your Family

So again... don't be a Richard and manage your estate so your family can celebrate you in the after life and continue to pay the taxes and not attorneys. Make sure you have a plan in place. Because after all, life is short" You only live once, but if you do it right, once is enough." Mae West.

CAT