FROM THE ATTORNEY'S PEN
by Michelle H. Tucker
HAPPY NEW YEAR!
The New Year ahead promises to be a great one. Everything
is “up.” Prices, that is. Especially the
price of a home. Anyone who owns a home in Hawaii feels
richer by $200,000 at least, just as the result of the
last few years. People who never thought they would
have an estate tax problem, suddenly have one. Not too
many years ago, the estate tax exemption amount increased
from $600,000 to $1,000,000, and most people decided
they would never have to worry about estate taxes. If
you are hoping to live at least another 5 years, your
exemption amount will be limited to $1,000,000 when
you die. That is not very much. Senor Citizens who have
“just” an old house suddenly have an estate
tax concern if they don’t want the children to
have to sell the house to pay taxes. Married couples
may now have to use the “Family” trust on
the first death to house half of the residence, just
to make sure the survivor’s estate stays below
$1,000,000. If you have a trust from Sterling &
Tucker, that Family trust feature is probably drafted
in, but don’t forget to come see us if there is
a dramatic change in your circumstances, if a family
member may need long term care, or if there is a death
in the family. Even the best laid plan leaves work to
be done when a crisis occurs.
By and large, people are feeling pretty good about
how much they have prospered. Everybody, that is, except
those we care for and love very much—the youth,
our children. How is anybody going to be able to afford
a house if they don’t already have one? Take heart,
most people felt the same challenge when they bought
their first home. Things will work out. Step one—save,
save, save. And while you are saving, invest the savings
wisely. Otherwise, your savings can’t keep pace
with the housing price increases. Get professional help.
If you think you don’t need investment advice,
think again. Ask yourself, do you know so much that
you would offer to manage your neighbor’s money?
If the answer is “no,” why are you managing
your own?
Perhaps you just have not realized that financial
planning has become a “profession.” Really!
True, a financial planner professional is a new professional
credential compared to doctors, lawyers, certified public
accountants, architects, and engineers. And not so long
ago, the only financial advice available came from stock
brokers. Things have changed. Investing is not about
speculating anymore. It’s an everyday thing, everybody
has to find a way to do it, and in fact the way company
pension plans are going, personal financial planning
is the only way anyone is going to have a retirement
nest egg…other than what you may get from social
security, which will certainly not be enough to live
on.
We are here to help you with all your financial and
estate planning needs, to give you the best chance of
achieving the future you want.
Aloha.
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