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Monthly Archives

September 2013

Estimate Costs of Health Plans for Florida

By Health, Medicaid Planning, Medicare

The Tampa Bay Times has published an article on September 25, 2013 providing a preview to the rates expected to be published on October 1, 2013 for health insurance under the affordable care act.

A single 27 year old earning $25,000.00 per year can buy a bronze poilicy (the least expensive) for $167.00 per month.  He/she will receive a tax credit due to their low income of $54.00 per month reducing their premium to $113.00 per month.  This tax credit will be paid directly to the insurance provider.

A family of 4 living in Tampa Bay earning $50,000.00 per year can get a silver policy (the second lowest cost plan) for $282.00 per month, after receiving the tax credit.

Coverage offered by these plans are expected to include preventative care and maternity care.

Everyone will be able to research plans in their communities beginning October 1, 2013 at www.healthcare.gov.

For more information on estate planning, Medicaid planning or tax planning, please contact our office at (941) 906-1231 for an initial consultation.

September 30, 2013
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Liens Against Trust Beneficiaries for Child Support

By Elder Law, Estate Planning

Question:     My ex-spouse is a trust fund beneficiary, but has not paid me court-ordered child support in over 2 years.  Can I attach a lien on my ex’s trust income?

Answer:    Florida law allows a trust beneficiary’s child, spouse, or former spouse with a court judgment for support or maintenance to reach the beneficiary’s interest by “attaching” a claim for the present or future trust distributions in some cases.  However, there are instances where you would not be able to reach the trust income.  For example, if the distributions to your ex-spouse are not required but are simply within the discretion of the trustee, then you may not be able to attach your claim for child support to the ex-spouse’ s trust income.  If you need legal advice regarding claims against a trust or a trust beneficiary’s income, contact Bach & Jacobs for assistance.

September 26, 2013
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Retirement Provisions in the American Taxpayer Relief Act of 2012

By Asset Protection Planning, Estate Planning, Tax Law

 The American Taxpayer Relief Act of 2012 (ATRA), passed to avoid the fiscal cliff, includes two provisions that are important to many IRA owners and retirement plan participants. The first extends tax-free charitable contributions from IRAs through 2013, and the second eases the rules for 401(k), 403(b), and 457(b) in-plan Roth conversions.

 The Pension Protection Act of 2006 first allowed taxpayers over the age of age 70½ to exclude from gross income otherwise taxable distributions from their IRA (“qualified charitable distributions,” or QCDs), up to $100,000, that were paid directly to a qualified charity. The law was originally scheduled to conclude in 2007, but was extended through 2011. The law has just been extended yet again through 2013 by ATRA.

 If you need legal advice for estate planning, Asset Protection Planning, or Medicaid planning, please contact our office at (941) 906-1231 for an initial consultation.

September 23, 2013
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When an Out-of-State Resident Dies Owning Florida Real Estate

By Elder Law, Estate Planning, Probate, Real Estate

Question:     What happens when someone dies owning real estate or other assets in Florida, but is a resident of another state?

Answer:    If a deceased person was a resident of a state other than Florida, the estate will be administered in the county and state of residence.  However, even if the decedent’s estate is administered by the probate court of the state of residency, assets located in Florida, especially real estate, may have to be administered by Florida’s probate courts.  This is called “ancillary administration” and requires that the Florida court issue letters of administration to a personal representative qualified to act under Florida law.  If you are the personal representative for a non-Florida resident and need assistance with opening an ancillary administration in Florida for the estate, call Bach & Jacobs to speak to an attorney.

September 19, 2013
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Top IRS Triggers for Small Businesses

By Tax Law

An IRS audit: few things strike as much terror in the hearts of small business owners than this simple phrase. You try to do your taxes accurately and on time, or maybe you have an accountant to prepare your taxes on your behalf. Though mistakes can happen, there are a few areas that are the more likely than others to trigger a visit from the IRS auditing staff. Below are five such triggers you’ll want to avoid if at all possible when preparing your taxes.

1. Simple errors. Simple errors, like writing your Social Security number on your return incorrectly can bring your return to the attention of the IRS auditors. Likewise, mathematical errors on your return, especially in totaling your income, can bring on an audit.

2. High income. Do you report more than $1 million in earnings? Prepare for an audit. According to the IRS, an average of 8.5 percent of the people in this income bracket will be audited.

3. Home office deduction. If you truly use your home office exclusively for business be prepared to prove it. This often-misused deduction can also trigger an IRS audit. So, if your office is also your guest bedroom, maybe you want to rethink taking this deduction.

4. Reporting incorrect income. Did you remember to report all of your income? The IRS gets a copy of all W-2 and 1099 forms. The IRS compares these documents on a random basis to income reported on tax returns. If there’s a discrepancy, expect an audit. Because of this, if you receive an inaccurate tax document, be sure to get it corrected before you file your taxes.

5. Certain industries. Those who work in some industries, primarily those that deal in cash, like beauty salons, home contracting and restaurants, are more likely to be audited than those who work in other types of jobs.

Taxes are a fact of life. Knowing which areas of your return are likely to draw the attention of the IRS can help you prepare for next year.

 

For more information on your tax return and charitable donations, visit www.irs.gov. Please contact our office at (941) 906-1231 for an initial consultation if you need legal advice.

September 16, 2013
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Attorney Sean M. Byrne to Speak About Trail Easements at National Conference

By Firm News, Land Conservation Easements

Attorney Sean M. Byrne will present a seminar at the annual national conference of the Land Trust Alliance (LTA) about the use of public trail easements to encourage support for land conservation.   The LTA conference will be held in New Orleans next week from Sept 17-19.  Byrne will showcase Sarasota County’s ‘river to river trail’—an interconnected network of outdoor recreational trailways stretching from the Peace River to the Myakka River that Sarasota County will be developing.  Byrne represented Sarasota County in the acquisition of portions of the trail network, some of which are easements across privately owned working ranches.   The seminar will give recommendations to real estate lawyers and land conservationists on how to incorporate trail easements in conservation easement transaction, particularly when public funds are used to acquire the conservation easements.

September 9, 2013
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Supreme Court DOMA Decision Affects Estate Planning for Same Sex Spouses

By Elder Law, Estate Planning, Tax Law

The Supreme Court of the United States’ ruling that a portion of the Defense of Marriage Act (“DOMA”) is unconstitutional may allow same sex spouses who were legally married under state law at the time they filed individual Federal income tax returns to amend past tax returns and receive a refund.  The DOMA ruling’s implications will also affect the gift and estate tax marital deduction, portability of a spouse’s estate and gift tax credit, retirement benefits, and the future tax filing status for same sex spouses.  Many tax experts believe that the Court’s ruling has retroactive effects.  This means that same sex spouses may be able to amend previous tax returns to claim refunds for prior tax years if the taxpayers can show that they would have paid less if the marriage had been recognized by the IRS.  Same sex couples can contact tax expert Fred Jacobs at Bach & Jacobs to review the effect that the Supreme Court’s decision may have on their federal taxes.

September 5, 2013
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