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How to Keep Money in Your Family – Estate Planning

You’ve invested your life into caring for your family’s wellbeing. You cherish them and want them to mature into smart, healthy, successful adults. Naturally, as they become adults and grow older, your authority over them recedes. They make their own decisions, and you just hope it’s for the best.

Your feelings don’t change. They are your children. And they’ll always be your children. The same goes for your closest, most intimate friends. You want their futures to be safe and secure; you want them to prosper in life. And what better way to show your devotion and appreciation than by ensuring your hard-earned money and investments go to them—after your passing?

In other words, how do you keep your money in your family or within your circle of closest friends?

Estate planning is the key. Why is planning your estate so important?[i]

  • You avoid probate court. In many states, probate fees can reach 5% of the value of the estate. For an estate valued at $400,000, legal fees may reach $20,000.[ii]
  • Planning your estate will lessen the tax burden on your heirs. If you die without a will, the laws of your state, not you, govern how your estate is distributed. However, inheritance laws generally favor spouses, domestic partners, and blood relatives. But why leave it to the legal system to decide?[iii]
  • Many people who are beginning to plan their estates seek professional financial advice following the loss of a loved one or a close friend. While wise, the timing may be off. The best time to start estate planning is immediately—to avoid potential worst-case scenarios, such as mental decline or sudden death of a spouse or loved one.
  • Comprehensive estate planning, ironically, helps protect beneficiaries, both adult and children. With adults, a plan helps guard against bad financial decisions later or potential credit problems. With children, it designates guardians or conservators to protect minors’ financial interests.[iv]
  • A solid estate plan with asset protection provisions may help shield your assets from potential creditors.[v]

You’re planning to enjoy many more years with your family and friends. What can you do now to ensure your money goes to loved ones—as opposed to Uncle Sam?

Here are 5 ways to maximize your family money in the here and now:[vi]

  1. You can spend your money and your assets, which will ultimately reduce your tax burden and benefit your family. Obviously, your first priority is to your loved ones, not to bolstering government coffers. The problem, however, is that you may live a good, long life, and your goal is to ensure you don’t outlive your wealth. This option is worthwhile if you have plenty of cash reserves and a robust estate.
  2. Gifts pose the same challenge if your estate and your assets have the potential for a long-shelf life. While giving to family and friends is noble, the IRS establishes restrictions on giving levels. You may give up to $15,000 each to individuals or charities before having to file gift tax returns. The maximum lifetime gift tax exemption is $11.18 million.[vii]
  3. You may lend to family members and friends. However, to stay IRS compliant, you should draft a loan note that includes the loan amount, payback date, interest rate, and any collateral or security. This enables you to avoid the IRS’s gift classification.[viii]
  4. You may pay wages to your family; 4 in 5 older Americans suffer from at least 1 chronic disease and may need care.[ix] By 2030, more than 1 in 5 Americans will be over the age of 65.[x] The IRS allows for the paying of wages to family members, which helps build their Social Security earnings record.[xi] Services may include providing home health care or performing other household or small business-related work.
  5. You can create a life estate deed, which transfers the family’s house to a child while the parents retain the right to live in the house. Following the death of the parents, children don’t have to go through lengthy probate proceedings. The home transfers to children—beneficiaries or remaindermen—as a gift.[xii] A life estate deed may also remove the home from consideration as a personal asset when applying for Medicaid assistance for long-term care needs.[xiii]

Seek guidance from a financial professional to learn more about your rights and opportunities to provide for your family—even in future generations.

Contact CapSouth at 800.929.1001 or visit our website at www.capsouthwm.com to learn more about CapSouth or to speak with an advisor about estate planning.

Investment advisory services are offered through CapSouth Partners, Inc., dba CapSouth Wealth Management, an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable.  CapSouth does not guarantee the accuracy or completeness of the information.  This material has been prepared for planning purposes only and is not intended as specific tax or legal advice.  Tax and legal laws are often complex and frequently change.  Please consult your tax or legal advisor to discuss your specific situation before making any decisions that may have tax or legal consequences.

This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth Partners). The policies and procedures governing these third-party sites may differ from those effective on the CapSouth company website, as outlined in these Disclaimers. As such, CapSouth makes no representations whatsoever regarding any third-party content/sites that may be accessible directly or indirectly from the CapSouth website. Linking to these third-party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.

CapSouth Partners, Inc., dba CapSouth Wealth Management, is an independent Registered Investment Advisory firm. CapSouth does not offer tax, accounting or legal advice. Consult your tax or legal advisors for all issues that may have tax or legal consequences.

[1] https://www.investopedia.com/articles/wealth-management/122915/4-reasons-estate-planning-so-important.asp

[1] https://www.nolo.com/legal-encyclopedia/why-avoid-probate-29861.html

[1] https://estate.findlaw.com/wills/what-happens-if-i-die-without-a-will-.html http://money.cnn.com/2016/04/28/pf/dying-without-a-will-prince/index.html

[1] https://www.thebalance.com/what-does-a-guardian-or-conservator-of-a-minor-do-3505167

[1] https://www.thebalance.com/what-is-asset-protection-3505066

[1] https://www.thebalance.com/how-to-minimize-death-taxes-3505688

[1] https://www.irs.gov/businesses/small-businesses-self-employed/whats-new-estate-and-gift-tax

http://www.pgdc.com/g/boston-foundation/news/2018-estate-gift-and-gst-tax-lifetime-exclusion-11180000-taxpayer

[i] https://www.investopedia.com/articles/wealth-management/122915/4-reasons-estate-planning-so-important.asp

[ii] https://www.nolo.com/legal-encyclopedia/why-avoid-probate-29861.html

[iii] https://estate.findlaw.com/wills/what-happens-if-i-die-without-a-will-.html http://money.cnn.com/2016/04/28/pf/dying-without-a-will-prince/index.html

[iv] https://www.thebalance.com/what-does-a-guardian-or-conservator-of-a-minor-do-3505167

[v] https://www.thebalance.com/what-is-asset-protection-3505066

[vi] https://www.thebalance.com/how-to-minimize-death-taxes-3505688

[vii] https://www.irs.gov/businesses/small-businesses-self-employed/whats-new-estate-and-gift-tax

http://www.pgdc.com/g/boston-foundation/news/2018-estate-gift-and-gst-tax-lifetime-exclusion-11180000-taxpayer
http://web20.nixonpeabody.com/trusts/Lists/Posts/Post.aspx?ID=276

[viii] https://blog.taxact.com/family-loans-lend-my-kids-money/

[ix] https://www.ncoa.org/news/resources-for-reporters/get-the-facts/healthy-aging-facts/

[x] https://www.ncbi.nlm.nih.gov/books/NBK396397/

[xi] https://www.irs.gov/businesses/small-businesses-self-employed/family-help

[xii] https://www.thebalance.com/enhanced-life-estate-deed-3505518

[xiii] https://www.agingcare.com/articles/protecting-parents-home-from-medicaid-183157.htm

We’re Hiring! Administrative Assistant Opening in Dothan, AL

The following position description contains representative examples of work that will be performed in positions allocated to this classification. It is not required that any position perform all the duties listed, so long as primary responsibilities are consistent with the work as described. Roles and responsibilities can often be expanded to accommodate changing business conditions and goals, as well as to tap into the skills and talents of the individuals in the company. Accordingly, associates may be asked to perform duties that are outside the specific functions that are listed.

Please include a cover letter stating why you would be a good fit for this position and for CapSouth Wealth Management. Also, please describe your three most defining characteristics or attributes.

CapSouth Wealth Management is a growing Wealth Management company in Dothan, Alabama, with offices in 2 other states, and actively looking to expand.  We are currently looking for an individual who gets excited about taking on challenges and can multitask in a high-demand and fast-paced environment.  The right individual will embody our core values.  They will have extremely high integrity, accountability, and respect for others.  They will be driven to continuously improve.  They will also pursue balance in their life while seeking to find joy and add joy to the lives of those they serve.  We offer competitive pay, great benefits, and potential for growth.  

I. MISSION

The Administrative Assistant will be responsible for various administrative functions within the Central Services division of CapSouth Wealth Management.  This position requires high detail-oriented and organizational skills.  The duties will vary widely from bookkeeping, to account opening and maintenance, to pulling data for reports.  This position is not end-client facing but will require good relationship skills internally with other team members, as well as the ability to provide customer support to each local advisory office. 

II. ESSENTIAL RESPONSIBILITIES

  • Bookkeeping assistance through scanning and entering bills, recording receipts, and depositing funds
  • Operational support through the creation of paperwork and processing with minimal errors
  • Establish and maintain positive relationships with team members to ensure client satisfaction
  • Constantly seek for ways to improve operations
  • Support firm-level strategic initiatives
  • Other operational support as required by the Chief Operating Officer

III. POSITION SPECIFICATIONS

Experience and Education:

  • 3-5 years working in administrative functions
  • Bookkeeping experience preferred, especially QuickBooks experience
  • No degree required, though a bachelor’s degree is a plus
  • Ideally have completed some coursework in accounting and/or bookkeeping

Skills and Knowledge:

  • Demonstrates analytical ability, good judgment, problem solving, responsibility, personal integrity, and able to maintain confidential information daily
  • Computer literate and proficient in Microsoft Office (Word, PowerPoint, Excel, Outlook)
  • The ability to export reports and format within Excel, including basic excel functions
  • Ability to work efficiently, effectively, and independently to see projects through to conclusion
  • Excellent time management, organizational skills, and ability to prioritize multiple tasks and anticipate potential problems
  • Ability to comprehend a chart of accounts and basic debit and credit transactions

Benefits include:

  • Off every Friday at 1 pm
  • 401k plan with match, non-elective contribution, and potential for profit-sharing contributions
  • 10.5 annual holidays
  • Paid time off starting at 8 days the first year, increasing to 13 days in year two
  • Great medical benefits (partially subsidized by the company), along with the option to add a supplemental medical coverage, dental, vision, long-term disability, life, and voluntary life

To apply: Email resume to karmstrong@capsouthpartners.com

Investment advisory services offered through CapSouth Partners, Inc., an independent Registered Investment Advisor, dba CapSouth Wealth Management. www.capsouthwm.com

How Women Can Prepare for Retirement

When our parents retired, living to 75 amounted to a nice long life, and Social Security was often supplemented by a pension. The Social Security Administration estimates that today’s average 65-year-old woman will live to age 86½. Given these projections, it appears that a retirement of 20 years or longer might be in your future.[i],[ii]  

Are you prepared for a 20-year retirement? How about a 30-year or even 40-year retirement? Don’t laugh; it could happen. The SSA projects that about 33% of today’s 65-year-olds will live past 90, with approximately 14% living to be older than 95.2

Start with good questions. How can you draw retirement income from what you’ve saved? How might you create other income streams to complement Social Security? And what are some ways you can protect your retirement savings and other financial assets?

Enlist a financial professional. The right person, one who understands the challenges women face in saving for retirement, can give you some good ideas. These may how include income inequality or time out of the workforce due to childcare or eldercare affect you. It could also mean helping you maintain financial equilibrium in the wake of divorce or death of a spouse.

Invest strategically. If you are in your fifties, you have less time to make back any big investment losses than you once did. So, protecting what you have may be a priority. At the same time, the possibility of a retirement lasting up to 30 or 40 years will likely require a growing retirement fund.

Consider extended care coverage. Women have longer average life expectancies than men and can require significant periods of eldercare. Medicare is no substitute for extended care insurance; it only covers a few weeks of nursing home care, and that may only apply under special circumstances. Extended care coverage can provide a huge financial relief if the need arises.1,[iii]

Claim Social Security benefits carefully. If your career and health permit, delaying Social Security can be a wise move. If you wait until full retirement age to claim your benefits, you could receive larger Social Security payments as a result. For every year you wait to claim Social Security, your monthly payments get about 8% larger.[iv]


Retire with a strategy. As you face retirement, a financial professional who understands your unique goals can help you design a wealth management approach that might serve you well for years to come.

To learn more about CapSouth Wealth Management and our retirement planning services, call 800.929.1001 or visit our website at www.capsouthwm.com

Investment advisory services are offered through CapSouth Partners, Inc., dba CapSouth Wealth Management, an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable.  CapSouth does not guarantee the accuracy or completeness of the information.  This material has been prepared for planning purposes only and is not intended as specific tax or legal advice.  Tax and legal laws are often complex and frequently change.  Please consult your tax or legal advisor to discuss your specific situation before making any decisions that may have tax or legal consequences.

This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth Partners). The policies and procedures governing these third-party sites may differ from those effective on the CapSouth company website, as outlined in these Disclaimers. As such, CapSouth makes no representations whatsoever regarding any third-party content/sites that may be accessible directly or indirectly from the CapSouth website. Linking to these third-party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.

CapSouth Partners, Inc., dba CapSouth Wealth Management, is an independent Registered Investment Advisory firm. CapSouth does not offer tax, accounting or legal advice. Consult your tax or legal advisors for all issues that may have tax or legal consequences.

[i] CDC.gov, January 2020

[ii] SSA.gov, February 25, 2020

[iii] Medicare.gov, February 25, 2020

[iv] Investopedia, November 24, 2019

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