Estate Planning

Gregory J. Cook, EA, CPA+
Accredited Tax Advisor
Past President Alabama Society of Enrolled Agents
Past President Alabama Association of Accountants

Estate Planning is the process of arranging a person’s property so it can be transferred during life, at death, and after death in a manner that best carries out a person’s desires while minimizing taxes and the costs of administration. There are hundreds of estate planning methods, which are used to carry out specific goals. The choice of estate plan depends on an individual’s family circumstances, the size of the estate, and the individual’s priorities.

Many estate-planning methods may achieve one goal at the cost of another or cause unanticipated tax or legal consequences. For most people, professional help with estate planning is important. Contact your Cook & Co. Advisor today, to schedule a review of your current situation in light of recent tax law changes.

Basic Steps In Estate Planning

group looking at laptop screen

Make a complete and accurate inventory of all assets and their value. We call this "Marshalling the Assets".

Determine the form of ownership of each asset and understand its effect on transfer of property at death.

Verify beneficiary designations on life insurance and retirement assets.

Estimate the size of the estate to determine whether estate tax planning is needed.

Decide whether certain family members or assets need special protection (minor children, adults with special needs, family business).

Select beneficiaries and determine what provisions should be made for each.

Determine how financial and health care decisions will be made in the case of illness or disability.

Determine how health care will be funded.

Estimate the cost of alternative estate planning methods that will meet the goals.

Select and implement the estate plan.

Laws and family circumstances change. Review the plan regularly.

News and Articles from Bara Business Center

Greg Cook

Greg Cook on the Recovery Act ...

The Recovery Act was passed by Congress and signed into law by President Obama on February 17, 2009. The purpose of the $787 billion Recovery package is to jump-start the economy to create and save jobs. The Act specifies appropriations for a wide range of federal programs, and increases or extends certain benefits under Medicaid, unemployment compensation, and nutrition assistance programs. The legislation also reduces individual and corporate income tax collections (to an extent), and makes a variety of other changes to tax laws.

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This Act will have far reaching consequences and we will be dealing with it for years to come (at least until 2018). Twenty-eight different agencies – such as the Departments of Education; Health and Human Services; and Energy – have been allocated a portion of the $787 billion in Recovery funds. Each agency develops specific plans for how it will spend its Recovery Act funds. The agencies then award grants and contracts to state governments or, in some cases, directly to schools, hospitals, contractors, or other organizations. The agencies are required to file weekly financial reports on how they are spending the money and their specific activities related to Recovery funds.

Read more about The Recovery Act

While Our Government Rolls the Dice with Deficit Spending ...

We endeavor to bring information to you that will help you keep taxes and your personal finances in check.

Quicken Articles

Have You Refinanced Your Home?
If you are one of thousands who locked into a lower home mortgage interest rate, then you've hit the savings jackpot! Besides getting one of the lowest rates in decades, you may be able to deduct some of the refinancing costs when you file your tax return. The “points” paid to get a home mortgage may be deductible as mortgage interest when you itemize on Form 1040's Schedule A. Points paid to get an original home mortgage may be fully deductible in the year paid. However, points paid solely to refinance a home mortgage usually must be deducted over the life of the loan.

For a refinanced mortgage, you figure the interest deduction by dividing the points paid by the number of payments you will make over the life of the loan. You may deduct points only for those payments made in the tax year. Say you paid $2,000 in points and you will make 360 payments on a 30-year mortgage. You could deduct $5.56 per monthly payment, or a total of $66.72 if you made 12 payments in one year. If you used part of the refinanced mortgage money to finance improvements to your home and if you meet certain other requirements, the points associated with the home improvements may be fully deductible in the year the points were paid.

Also, if you are refinancing a mortgage for a second time, the balance of points paid for the first refinanced mortgage may be fully deductible at pay off. Other closing costs – such as appraisal fees and other non-interest fees – generally are not deductible. And the amount of your adjusted gross income could affect the amount of deductions you can take. Any way you look at it, between the lower interest rates and the tax savings, that's money you can take to the bank. For more information on deductions related to refinancing, contact your Cook and Co. Advisor.