July, 2011 | The Beliveau Law Group - Attorneys at Law

Massachusetts Secretary of State Wants More Regulation of Power of Attorneys

Massachusetts doesn’t regulate powers of attorney — a signed, notarized letter of appointment is the only requirement — and advocates for the elderly say the absence of oversight makes it too easy for an unscrupulous person to exploit the position for personal gain. Secretary of State William Galvin aims to remedy the problem with a proposal he submitted to the Massachusetts legislature earlier this year that would bar people with power of attorney from enriching themselves

IRS releases draft version of Form 8938 for foreign financial asset holders

IRS is seeking comments on new draft Form 8938, “Statement of Specified Foreign Financial Assets,” which is available on IRS’s website. Form 8938 will be used by individuals to report an interest in one or more specified foreign financial assets under Code Sec. 6038D.

A critical business question: Should you incorporate or not?

One of the first decisions you face as a new business owner is whether or not to incorporate the business. The biggest advantage of incorporating is limitation of your liability. Your responsibility for debts and other liabilities incurred by a corporation is generally limited to the assets of the business. Your personal assets are not usually at risk, although there can be exceptions to this general rule. The trade-off is that there is a cost to

Summertime tax tips

Summertime fun can be made even more enjoyable by adding tax savings. Here are some tax-saving ideas to consider. • If you have summer travel plans and the primary purpose of your trip is business, you can deduct all the travel costs to and from your business destination and all other business-related costs even if you add on a few extra days for pleasure. You can’t deduct costs related to the pleasure portion. Including a spouse

Look into the benefits of a solo 401(k)

Have you heard about solo 401(k) plans? The traditional type of 401(k) retirement plan is now available for self-employed individuals. And it lets you save more than other types of plans. In the past, 401(k) plans were typically offered by larger corporations. Employees could make pre-tax contributions by payroll deduction. The company would then usually match a percentage of those contributions. Investments grew tax-free until withdrawn at retirement. One advantage of a 401(k) plan is the

Do surviving spouses have a right to a 401(k) or an IRA?

When choosing a beneficiary for a retirement plan, it’s important to understand how your spouse will be treated under the plan. The rules are different for 401(k)s and IRAs. With a 401(k) plan, a surviving spouse is the automatic beneficiary of the plan. If you want to name someone other than your spouse as a beneficiary, your spouse must agree to this in writing. There are some exceptions; for example, the rule might not apply if

Here’s yet another example of why trusts in a will are a good idea

In a recent case, a Texas man inherited $400,000 in cash from his aunt. The man’s ex-wife went to court and claimed that as a result, his child support payments should be increased. The Texas Court of Appeals agreed with the ex-wife. It said that even though the $400,000 wasn’t wages or earnings, it was still a “resource” that had to be considered in determining how much the father had to pay for his two children.

…More implications of the new tax law from Congress

The new tax law, which temporarily raises the estate and gift tax exemptions to $5 million, has many important implications. Almost everyone should have their estate plan reviewed in light of this significant change. Here are just a few of the other important consequences: Many wills that were drafted years ago need to be revised right away. Frequently, these wills were set up to avoid taxes by giving children an amount of property equal to the

Congress creates ‘window’ in 2011 and 2012 for big tax savings

Congress has created a temporary “window” – between now and the end of 2012 – in which many people can save a lot of money in estate and gift taxes. You might be able to take advantage of this opportunity by transferring significant assets to a trust. But as they say on TV, hurry – this is a limited-time offer from the federal government. During 2011 and 2012, the federal estate tax exemption will be $5

In Comm. v. Simmons, Court approves charitable deduction for donation of conservation easements on building facades

In Comm. v. Simmons, (CA DC 6/21/2011) 107 AFTR 2d ¶ 2011-966, the Court of Appeals for the District of Columbia Circuit, affirming the Tax Court, has held that a taxpayer was entitled to charitable contribution deductions for her donation of conservation easements on the facades of two buildings located in a historic district. The Court rejected IRS’s contention that her contribution wasn’t exclusively for conservation purposes, as required by Code Sec. 170(h)(1)(C), and that she

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Beliveau Law Group

July 2011