 |
 |
|
BUSINESS BASICS CHANNELS 
|
A
Few Things to Think In my last article, I brought up the old cliché that nothing is certain except death and taxes. I then proceeded to talk about taxes. Imagine that: A CPA who talks about taxes! But today, I want to talk about the other certainly in life, and that is death. Okay, big downer. Some of you have already scrolled past this and won't get the benefit of what I have to say. But for the rest of you, I hope you find this helpful. Now, given the assumption that all of us will die eventually, it is prudent to plan ahead for these things. The first item on the list of necessaries is a Will. This document, properly prepared, allows you to dictate to whom you want your assets to go after your demise. If your estate is large or complex, you might need to set up some trusts and shift assets around a bit. If you have kids, a Will is especially important for it is this document that will help settle who gets to raise your children and put them through college. (Unless you outlast them and make them take care of YOU in your waning years.) There is an old saying that if you train up a child when he is young; when he is old he will be able to take care of you. Now, you won't want to address each of every item, trinket, memento, etc. in your house or that you want your nephew Charlie to get your lawn mower. All your money would go the lawyer for drawing up this terribly long list. And while I am all in favor of paying CPA's everything you can, it is good to limit what you pay your lawyer (grin!). So take a few sheets of paper and make a list of the things you hold dear and who you want to get them after you pass on. Just make sure that someone knows where to find the list when it becomes too late to ask you where it is. The same goes for your Will of course, but as long as money is involved, trust me, the family will find your Will. It is also recommended to write a letter to your spouse or kids once a year telling them about all the bank accounts, insurance policies, rental properties, investments and other assets you own. Also list all your debts, credit cards, etc. This is especially important when you have assets and your spouse doesn't know you have them, or isn't strong enough in this area to remember the details. In this letter, it is also good to list the names of your CPA, attorney, banker, stockbroker, etc. and how to get in touch with them. Update this whenever you have a major change but once a year is a recommended minimum. Taking care of your burial needs before you need them is also a good idea. Visit a funeral consultant to help you buy the last piece of real estate you'll ever need or make other appropriate arrangements. Knowing that these things are handled in advance should give you some peace of mind. It will also make it easier for your family to settle details when the time comes. If you feel you have a very valuable estate consider leaving some assets to your favorite charity or to your favorite family members. Or consider this possibly irrational concept: Give it away NOW while you can watch the people you give it to have fun using the money. I know several parents who gave their kids money to buy a house while they were around to enjoy the event instead of waiting until the parent died and the kids inherited the money anyway. If you have a family owned business, put together a plan to help run the business after you are gone. It is better that YOU pick the person you want to run your business rather than having all the heirs fighting over it. The last and best advice I can give you is to not wait until your deathbed to show and tell your loved ones how much you really do love them. Do it now while you can. There is an old saying that no one on their deathbed ever lamented that they didn't work hard enough or make enough money, but plenty lamented they didn't love their family enough. So do yourself a favor, go hug your spouse and kids and parents, and yes, even your CPA. We need love too. |
|