April 18, 2023: Nothing Is Certain Except Death and Taxes

April 18, 2023: Nothing Is Certain Except Death and Taxes

By Melinda Gustafson Gervasi

April 14, 2023 

This year "tax day" , the deadline by which individuals must file their federal income taxes for 2022, falls on Tuesday, April 18th.  If that strikes you as "off", you would be correct.  Normally this day falls on April 15th, but in 2023 the 15th is a Saturday.  One might expect for the deadline to be the next business day, assuming it is Monday, April 17th.  However, April 17th is a holiday in Washington, D.C. (Emancipation Day). Leaving us with a federal income tax filing deadline of Tuesday, April 18th.  Phew, this got complicated quickly and it's just the calendar, not the tax code itself.

When updating or creating an estate plan, many Americans focus their efforts on minimizing gift or estate taxes.  Many never think about the income tax; they'll be dead, how could the income tax be an issue they may wonder.  If you own traditional retirement accounts that are then inherited at your death, the person inheriting them will likely have to pay income taxes on the distributions.  There are exceptions, and complicated ones because this is the federal tax code.   If you want to minimize the potential tax burden on your loved ones, schedule an appointment with your CPA to learn about what retirement accounts of your may trigger an income tax and what that impact might be.  

...in this world, nothing is certain except death and taxes. - Benjamin Franklin

 Thank you for reading, and remember that a blog is intended to spark thought and refelction.  It is not legal advice or a subsitute for a CPA.  Please consult a licensed professional in your home state to get advice specific to your situation. 

 

4 Things To Consider When Nominating a Guardian of Minor Children

4 Things To Consider When Nominating a Guardian of Minor Children

By Melinda Gustafson Gervasi

April 10, 2023

Easter -- it's the season of hope, new life, and flourishment.  Here in Madison, Wisconsin the snow has melted away, daffodils push up from the soil, and my backyard is filled with the songs of birds.  Nesting -- the act of preparing for the young is feverishly underway in Wisconsin.  And quite possibly in your home as you prepare to welcome a tiny little human into your life.

Along with the baby showers, crib assembly, and name selection comes a less than loved task -- thinking of who to name as a guardian for your child if the unthinkable were to happen.  As a parent I know this task is dreaded.  As a lawyer I know this decision is critically important.  You, and only you, are best suited to determine who should step into your shoes if your child were left without parents.  The following are 4 things to consider when selecting a guardian for your child:

1. Religion -- who shares your beliefs, customs and practices related to religion, spirituality, or agnostic beliefs; 
2. Education -- who views the role of education in a child's life most closely to yours (private vs. public school; homeschooling; music education; etc);
3. Finances -- who manages their household finances in a similar fashion to yours (debt free living; allowances for chores; amount spent on holidays and birthdays); and
4. Daily life -- who has a similar rhythm to their daily life (are you an every Saturday at the Farmer's Market person or one who never misses a home football game, etc.).

Dreaded tasks remain dreaded until they are completed.  Consider the four factors above, make a decision, and then make it legal by creating a will.  Be done with it, put it in the past, and move on to more joyful experiences, like coloring Easter Eggs with your tiny little humans. Prepare your nest, and then enjoy the adventure. 

Black-billed Magpie, Custer State Park, South Dakota.  Image by M. Gustafson Gervasi March 2023