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Archive for February, 2011

Orange County Business Attorney Says, “Ready…Set…File Your Taxes!”

Monday, February 28th, 2011

By: Darlynn Morgan, Orange County Business Attorney

It’s that time of year again…

Time to get all your ducks in a row to report your income to Uncle Sam…

When you’re trying to take care of a family and run a business, the last thing you want to think about is getting all the paperwork together to deal with the Internal Revenue Service.

But if you get yourself and your paperwork organized early on, it will make tax time a little less frantic.

Here are a few tips to make getting organized a little easier:

1. Keep Up With Your Income AND Your Expenses

When was the last time you balanced your checkbook? Chances are, if you’re banking online, you haven’t done it in a long time. And that makes it much easier to lose track of what’s coming in and going out. Invest in a software package now, like Quicken, that will help you keep an eye on your finances, run reports as you need them so you can see what’s going on with your money, and pull everything together painlessly when you have to turn it over to your accountant for tax time.

2. Organize Your Expenses by Category

Yes, this can be time consuming in the beginning but it will pay huge dividends in the long run. And be specific. If you use your car for business, categorizing gas and maintenance as Vehicle Expenses (including mileage) will be much easier to prove up (with the proper receipts) than just lumping them all together under a Miscellaneous category. If you’re not sure how to categorize all your expenses, talk to a tax professional for guidance. It’s better to start your system the right way.

3. Have a Home Office?

If you’re working from the dining room table and the dining room is not used exclusively for your business, it will be hard to take a portion of your mortgage as a deduction for office space. Set up your home office so that the space you use is used only for your business. Keep track of all purchases made for business, from computers and accessories to office supplies. Again, ask a tax professional how to do this so that you maximize your possible deduction.

And, just in case you didn’t know, any business related phone calls you make from home are deductible. When you get your bill each month, go through it and highlight the business calls. At the end of the year, add up all the calls and there’s your deduction.

4. Pay Your Estimated Taxes On Time

You should be paying your estimated taxes quarterly. If you don’t pay them quarterly, you could be looking at a penalty of 4% of the amount you actually owe. While it may be hard to calculate this amount accurately, an easy way to estimate is to pay 25% of the amount you owed last year. Try to be as accurate as possible to avoid overpayment.

5. Watch Your Profit and Loss

Do you have a profit and loss statement for last year? If so, take a look at it. Did you control expenses? Did you get credit for every possible deduction? Did you go out of your way to keep your paying customers happy? Keeping an eye on where your money is coming from and where it’s going is vital to running a successful business. See where you fell down last year and make sure you don’t repeat the same mistakes this year.

Having this data in hand when you see your accountant to prepare your taxes (and plan for the next year) will make both your lives easier.

If you’ve done these five things, you should be well on your way to a relatively painless tax season.

Still not sure you have everything together for tax time?

Want to make sure you’re maximizing your deductions and doing everything you can to control your expenses?

Talk to us. We can help.

Call us today to schedule your comprehensive LIFT™ (legal, insurance, financial and tax) Foundation Audit to make sure you’re taking advantage of every tax break and staying on top of all legislation that affects your business. Normally, this session is $1250, but if you mention this article and we still have room on our calendar this month, we will waive that fee.

Tags: orange county business attorney, tax planning
Posted in California Business Planning | No Comments »

Let’s Pretend that April 15th Doesn’t Exist!

Thursday, February 24th, 2011

Just as you begin to relax after the hustle and bustle of the holiday season, it hits you. It’s tax time!

For most people tax time brings up images of boxes of random receipts and hours of searching for documents. Trying to get ready to do your tax return or organize for that yearly meeting with your tax preparer is a necessary evil.

What if you could avoid April 15^th?

Imagine this, what if we could use the excuse that we are “too busy” or we were just not organized enough to do taxes? How many of us would actually get around to doing them? Not many, I’m guessing!

I know this is true because I hear it all of the time when people put off doing their estate plan!

But here’s the thing…just as Benjamin Franklin said over 100 years go…

“Nothing is certain but death and taxes.”

The thing is, people do plan for taxes each year. Whether it is because you are expecting to get a tax refund or out of a sense of obligation, you faithfully file your taxes. But what if I told you that those two critical reasons for doing your taxes are the exact same reasons you should do your estate plan? Let’s explore further…

“I’m too busy to do my estate plan. I’ll do it later.” Unlike tax season we do not know the exact date that we will die. But that date will come. It’s no fun to think about this, but there will be a date where we will die. If you pass away without an estate plan you will leave a mess for your family to deal with. Do you really want your loved ones dealing with a financial nightmare or would you prefer to take a deep breath, face your fears, and make things as easy as possible for them?

“I have better ways to spend my money.” Yes, doing your estate plan will cost you money, but here’s the thing. It could cost your family a LOT more in taxes if you choose not to put an estate plan in place. Do you really want the money you’ve worked for all of your life going to Uncle Sam instead of your family? The bottom line is that you can pay a little now or your family will pay a lot later!

Truth is, we don’t know our life’s “deadline.” We don’t have a government body like the IRS looming over us threatening us if we fail to do our estate plan. But, the consequences that your loved ones will face if you fail to take care of this can be just as bad.

So, once you’ve gotten your documents organized for your tax preparation, why not go ahead and schedule an appointment to discuss estate planning for your family? Then you’ll have the peace-of-mind of knowing that your family will be taken care of no matter what.

Tags: april 15th, estate tax planning
Posted in California Estate Tax Lawyer | No Comments »

Are Living Trusts Only For The Rich? California Trust Lawyer Debunks The Myths

Wednesday, February 23rd, 2011

Regardless of your age, it is important to have a complete California estate plan in place, especially if you have children. But if you are a newlywed, the idea of planning out what happens after you die can seem like the least of your worries – after all, you just started your new life together. As in your whole life. You have your whole life to plan this, right? Wrong.

Without trying to take away from the excitement of your recent big day, devastating accidents do happen, and life can be taken in a heartbeat. So while you’ve already got all of the daunting paperwork ahead of you to change your name, social security card and deed for the house, why not add on the undaunting take of planning your California estate?

One of the best elements to a well-planned estate is a living trust. I know what you’re thinking – trusts are only for the ultra-rich, right? Wrong again. You and your new spouse might be sitting on a hand-me-down couch eating spaghetti-O’s by romantic candlelight, but that doesn’t mean that a living trust can’t help even your (self-proclaimed “measly”) assets from being properly distributed after you die.

Living trusts are different than wills in many ways, but they protect the distribution of your assets just as well if not better.

Here are just a few key reasons why a living trust can be so beneficial when planning your estate:

- Living trusts avoid the need for the probate process. If you die leaving just a will behind (or no will at all) there are specific hearings that need to occur in probate court regarding what happens to your assets after you’re gone. These hearings can take months, and can cost money, which deducts from your estate.

- Probate hearings and proceedings are published in the newspaper, and all records of the probate are considered public record. It might not seem important now if you don’t think you have many assets, but assets add up and later on down the road there are bound to be more (you’re not paying on those student loans for nothing, right?) and it should be the business of no one except your family what your wishes are.

- Without a living trust in place, all of your heirs will be notified upon your death during the probate process– even those heirs who are disinherited. It’s hard to imagine the circumstances, but I’m sure you can think of someone in your life who you would not pass on any assets to, for whatever reason. Avoid them getting notification of your wishes by setting up a living trust.

Want more reasons why you should establish a living trust? Stay tuned for my next blog post in this series. Or you can contact our Newport Beach estate planning office at (949) 260-1400 to schedule a free Family Wealth Planning Session (normally $750) where we can discuss your needs in greater detail.

Tags: california trust lawyer, living trusts
Posted in Orange County Wills and Trusts | No Comments »

Estate Planning Attorney in Newport Beach Says Take Inventory of Your Assets to Ensure Accurate Estate Planning

Tuesday, February 22nd, 2011

You’ve heard about the importance of California estate planning from everyone including your mother-in-law, your neighbor, and the Newport Beach estate planning lawyer you see every morning at your favorite coffee shop.

But the idea is still as hard to swallow as the first sips of that overly hot coffee. Where do I begin? Do I really want to think about my death when I’m so young? There are many questions that surround planning your estate, but these tough questions don’t take away from the importance of doing it.

The first and easiest thing to do when starting to plan your estate is to take inventory of all of your assets.

Step back and look at everything that you “own” in your life. I put this in quotation marks because there are a number of assets that people simply forget about when taking inventory of their estate.

When taking inventory, write down what you have and their value. Don’t forget to include:

- House

- Car(s)

- 401k or retirement accounts, including the ones from previous jobs that you have yet to rollover

- Life or other insurance policies

- Real estate

- Objects of value in your possession (family heirlooms, jewelry, etc.)

- Bank accounts

- Trust funds

After you have compiled this list, what do you do with it? The next logical step is to create a Last Will and Testament, which will determine where those assets should go after you die. Not sure how to do this? Contact an experienced Newport Beach estate planning attorney at Morgan Law Group by calling (949) 260-1400 to schedule a free Family Wealth Planning Session (normally $750).

We can help you turn that list into a complete estate plan so that you can protect your assets and ensure that your wishes are properly carried out after you are gone.

Tags: california, newport beach lawyer
Posted in Orange County Estate Planning | No Comments »

Newport Beach Business Attorney Asks, “Are Fees Robbing Your 401(k)?”

Friday, February 18th, 2011

By Darlynn Morgan, Newport Beach Business Attorney

You’re a smart money manager…

You’re planning well for retirement…

You put the most you possibly can in your retirement accounts, including a 401(k)…

Then you get your statement and find that you’re being robbed blind by outrageous fees.

And what’s even worse, you were never given access to information that would tell you what those fees are.

The good news – that’s about to change.

In October 2010, a new rule issued by the Department of Labor will require 401(k) plans to not only disclose their fees up front but also explain them.

The bad news is that this rule is an improvement but it’s not perfect. You’ll be told how much you pay in overall expenses but you may not be told how much of that goes to investment management fees as opposed to administrative costs.

What You Can Expect

Once a year, your 401(k) plan will send you a breakdown of the annual operating expenses for each one of the investment options they offer. The breakdown will show the expenses as a percentage of the assets and a dollar amount per thousand dollars invested. They will also provide sales fees and any other charges associated with each investment option.

You’ll receive a quarterly statement showing your 401(k) plan’s expenses for administrative costs such as accounting and record keeping.

The statement you receive will only show the fees deducted from your account. Some 401(k) plans will take administrative costs directly from your balance while others use a portion of your investment expenses to cover some of the administrative side.

One thing to note – any indirect fees for administrative costs won’t have to be broken out, so chances are they won’t be. For example, if you see a charge of $250 on your account, you won’t know exactly how those fees were spent (i.e., legal fees, accounting costs, etc.)

The Benefit of Disclosure

Knowing what you’re being charged gives you the opportunity to compare funds. Take a look at the fees for each of the investment options your 401(k) plan offers. Balance those fees against their historic returns and see if the higher paying funds are really a better deal for you.

Even though you don’t get a full, line item disclosure of what the administrative costs were for your particular plan, you still have a breakdown of what the investment management fees vs. administrative costs are. This should give you the information you need to pressure your 401(k) plan to keep costs down.

One way to do that is to encourage competition. Compare your plan to other plans and see how your administrative and investment fees stack up. If there’s a better deal out there, make sure your Human Resources department knows it. They can use that information when it comes time to negotiate with your plan provider.

Would you like a second opinion about your 401(k) investments?

Want to make sure you’re making the right investment choices and structuring your retirement to optimize savings?

It’s all part of getting your legal and financial house in order. We can help by making sure you get connected to the right advisory team.

Call us to schedule your Family Wealth Planning Session today. Our Family Wealth Planning Session is normally $750, but this month I’ve made space for the next two people who mention this article to have a complete planning session with me at no charge. Call today and mention this article.

Tags: newport beach business attorney
Posted in California Business Planning | No Comments »

Elder Attorney in Orange County Answers Your Questions About Nursing Home Care

Thursday, February 17th, 2011

By Darlynn Morgan, Elder Attorney

Americans are living longer than ever, and with that increased longevity comes some tough questions.

Making the decision to place a loved one in a nursing home can be one of the hardest decisions you’ll ever make.

The more quickly you have to make that decision, the more room there will be for making a bad decision.

The best thing you can do is plan ahead. Anticipate that, at some point, your loved one will need nursing home care.

To help you make the right decision in choosing a nursing home, here are a few questions to ask yourself ahead of time.

1. What Are The Alternatives To Nursing Home Care?

Let’s face it, no one wants to go into a nursing home. But often, families don’t see any other option. They’re making the decision to opt for nursing home care at the last minute and in crisis mode. That’s why pre-planning is so important. Talk to your doctor, local social workers and other elder care professionals to see if there are assisted living or home health care options available to help your loved one.

2. How Do I Find A Good Nursing Home?

Shop around. Planning ahead gives you the option to go and actually visit nursing homes in your area. Make unannounced visits and see what’s going on when they’re not expecting you. And again, talk to your doctor and other local health and social workers and ask them for recommendations.

3. How Do I Get My Loved One Into A Nursing Home?

The admission process for nursing homes can be daunting. Planning ahead gives you more time to go through the process with less pressure. Talk to the admissions directors of the nursing homes you’re interested in and get information on the admissions process. Talk about your financial situation and be willing and ready to negotiate.

4. Who Pays the Nursing Home?

Talk to a good elder care attorney and see if you’re eligible for assistance. You may qualify for help from Medicare or Medicaid. This is a particularly tricky area of the law and you need an experienced professional to help you through it, especially if your loved one’s spouse will not be going to a nursing home. You need to take steps to protect them. Have your elder care attorney look at all documents before you sign them.

5. How Do I Make Sure My Loved One Will Get Good Care?

Again, planning is crucial. You need to sit down with the nursing home staff and determine what kind of care your loved one will need and what is available. Have a proper care plan in place from the very beginning and make sure that care plan is part of the contract for your loved one’s admission to the nursing home.

6. What Are the Nursing Home’s Duties to My Loved One?

During your investigative process, ask each nursing home for a copy of their duties under the Nursing Home Reform Act. You may be surprised to learn what rights you and your loved one have. And again, talk to an attorney specializing in elder law to make sure you understand what the nursing home is, and is not, obligated to do.

Making the decision to place a loved one in a nursing home requires serious planning and thought to ensure that you are making the right decision and choosing the right nursing home. Don’t go it alone.

Talk to an experienced Orange County elder attorney and find out what your options are with regard to financing, government assistance, your loved one’s rights as a nursing home resident and exactly what the nursing home is obligated to do.

We can help you plan and help you ensure that you’re making the right decisions. Call us to schedule your Family Wealth Planning Session today. Our Family Wealth Planning Session is normally $750, but this month I’ve made space for the next two people who mention this article to have a complete planning session with me at no charge. Call today and mention this article.

Tags: elder attorney in orange county, nursing home care
Posted in Orange County Elder Lawyer | No Comments »

Orange County Wills and Trusts Lawyer on the Importance of Estate Planning for Newlyweds

Wednesday, February 16th, 2011

By Darlynn Morgan, Orange County Wills and Trusts Lawyer

As an Orange County wills and trusts lawyer, I know that after the honeymoon is over, young couples like to focus on relaxing after the grueling months of planning a wedding – NOT planning for what will happen if they are no longer here!

Yet an important part of planning your new life together should include deciding what will happen to your family and your assets after you pass. As an Orange County wills and trusts lawyer, I help newlyweds on a regular basis, and find that many are unaware just how much estate planning is an essential part of getting married.

I hear a number of reasons from young couples for this, including:

“The wedding took up most of our savings, so there would be few assets in the estate”
“Death is the last thing on my mind; we have the rest of our lives to figure out our finances.”
“We don’t have children”
“My spouse already knows my wishes for after I die”
“Estate planning seems complicated and expensive”

While these are all understandable thoughts, they still don’t justify ignoring the need for a will, living will, healthcare power of attorney, and other estate planning essentials.

Not to mention, in the days and weeks following the wedding, names have to be changed on countless documents such as drivers’ licenses and social security cards, etc, and a spouse is often added to the mortgage, deeds, car titles, and bank accounts. When you look at it from this perspective, estate planning is simply another administrative task that can easily be handled during this time.

And contrary to popular belief estate planning is easier than you think, and it doesn’t have to cost a fortune. Taking the time plan out your estate is a small price to pay if it means giving your family peace of mind while they deal with the grieving process after losing you.

Still not sure how to proceed? Contact our Orange Wills and Trusts law firm at 949-260-1400 to schedule a complimentary Family Wealth Planning Session (normally $750) with the mention of this article. We can help you and your spouse plan the rest of your new life together, so you can focus on living it.

Tags: estate planning, orange county wills and trusts lawyer
Posted in Orange County Estate Planning, Orange County Wills and Trusts | No Comments »

Newport Beach Estates Lawyer: Let’s Pretend April 15th Didn’t Exist!

Tuesday, February 15th, 2011

By Darlynn Morgan, Newport Beach Estates Lawyer

Just as you begin to relax after the hustle and bustle of the holiday season, it hits you. It’s tax time!

What if you could avoid April 15^th?

I know this is true because I hear it all of the time when people put off doing their estate plan!

But here’s the thing…just as Benjamin Franklin said over 100 years go…

“Nothing is certain but death and taxes.”

Tags: newport beach estates lawyer
Posted in California Estate Tax Lawyer, Orange County Estate Planning | No Comments »

Newport Beach Elder Lawyer Urges Adults to Have ‘Tough Conversations’ With Mom or Dad for Alzheimer’s and Dementia Awareness Week

Monday, February 14th, 2011

By: Darlynn Morgan, Newport Beach elder lawyer

“Does mom want to live in a nursing home?”

“Does dad consider living with Alzheimer’s or Dementia to be quality of life?”

“Is there legal documentation in place that ensures someone can act financially on mom or dad’s behalf if they are unable to?”

These are just three of many questions that elder care experts such as myself are urging adult children to ask their parents during Alzheimer’s and Dementia Awareness Week (February 14^th- 21^st). Without the answers to such questions, families could be left battling over long-term care, struggling financially and not truly honoring their parent’s wishes should the disease unexpectedly strike.

I know as a Newport Beach elder lawyer, so many families avoid talking about Alzheimer’s or Dementia until it’s too late. Especially from a legal standpoint, if you don’t know your parents’ wishes or the documentation they have in place, you could be left with a huge mess on your hands in the wake of this debilitating disease.

That’s why I always advise adult children to have 5 specific conversations with their parents as soon as the opportunity presents itself. They comprise the following:

Long-term care preferences- Does mom or dad want to live in a nursing home or would they prefer in-home care if the need presented itself? If they prefer a facility, what amenities and activities are important to them at this point in their life? These are questions that if discussed in advance can make the transition into an assisted living facility or a home-health care program much easier on everyone when the time comes.
Current Legal Documentation- It’s imperative that adult children find out what legal documentation their parents have in place before incapacity occurs. This includes making sure their parents have a power of attorney, health care directive and HIPAA forms so someone can easily step in to make financial or medical decisions on their behalf. Otherwise the family will be forced to petition a court for control over their parent’s affairs if they have passed the point of legal capacity.
Medical Preferences and Wishes- Adult children are urged to find out what type and how much medical care their parents want after receiving a diagnosis of Alzheimer’s or dementia. Do they have specific wishes about life support or other end-of life medical treatments? Who do they want to make such decisions on their behalf? The answers to these questions will help your parents to feel secure knowing their wishes will be carried out during an otherwise emotionally-charged time.
Current state of financial affairs- To ensure finances stay properly managed after a diagnosis of Alzheimer’s or Dementia, adult children should use this week to start asking tough questions about their parent’s financial affairs. This includes finding out the location of any safety deposit boxes, bank accounts, investment or brokerage accounts, outstanding debts or other assets unknown to the family. Otherwise, necessary assets needed to cover long-term care or other expenses could be overlooked when memory loss ultimately occurs.
Important contacts and information- While their memory is sharp, adult children should work with aging parents to compile a list of important contacts and information that will be useful to the family if memory loss occurs. This includes documenting key doctors, professional advisors (ie. accountant, attorney, financial advisor) and important passwords for online accounts.

While these conversations are certainly not easy to have, families can make the transition into living with Alzheimer’s or Dementia much easier by simply planning ahead. Not to mention, mom or dad will appreciate your willingness to make sure their wishes are honored if and when incapacity occurs.

Of course after having such ‘tough conversations’ you find out that mom or dad is not truly protected from a legal standpoint if Alzheimer’s or Dementia should occur, please do not hesitate to contact me, your neighborhood Newport Beach elder lawyer for help. You can schedule a complimentary appointment with our office by calling (949) 260-1400.

Tags: alzeihmer's awareness week, dementia awareness week, newport beach elder lawyer
Posted in Orange County Elder Lawyer | No Comments »

Orange County Estate Planning Attorney Urges You to Give the Ultimate Gift of Love this Valentine’s Day

Friday, February 11th, 2011

By: Darlynn Morgan, Orange County estate planning attorney

Valentine’s Day is right around the corner and love is in the air!

If you’re married or in a serious relationship, I can guarantee one of your “to-do’s” this month is to find that perfect gift for your special someone to show just how much you care.

Perhaps that means buying a shiny new piece of jewelry or sending an embarrassing display of roses , but for those of you looking for something a little more, “original”, might I suggest you consider the ultimate gift of love?

This gift is something not found in stores.

It certainly won’t fit in a box.

And while it may cost you a little bit of money, it is truly priceless and will hold deep meaning and value for generations to come.

So what is this ultimate gift of love?

Orange County estate planning!

You see, there is no better way to show your loved one that you care now and forever more than to get your estate planning in order. By doing so you are essentially telling your significant other, “I want to make sure you are taken care of…. physically, financially and emotionally, no matter what life throws our way. I want to make sure the courts, federal government or disgruntled relatives never get in the way of my wishes for you. I want to protect you today, tomorrow and long after I am gone by means of this gift.”

If that doesn’t express true and forever love, I don’t know what else does.

So may I suggest you pass on the diamonds this year and give the gift that really says “forever” better than any piece of metal ever could?

Instead, give your me, your neighborhood Orange County estate planning attorney a call and find out what it will take to make sure your significant other stays protected should something unexpectedly happen to you.

-Darlynn

P.S. Want to really show that special someone how much you care for Valentine’s Day? Then check out our Valentine’s Day special here where you can get a FREE Family Wealth Planning Session (normally $750) and a dinner for two to Maggiano’s on me! This offer is limited so check it out today!

Tags: orange county estate planning, valentine's day
Posted in Orange County Estate Planning | No Comments »

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