Joanne Seminara, partner of Grimaldi & Yeung LLP appearing on PIX11 News Close-up with Marvin Scott on Sunday, June 16, 2019 - speaking on the topic of 5@55: The 5 Essential Legal Documents You Need by Age 55.
Americans are a generous people, and 2018 showed clear proof of this. Distributions from IRAs increased, and using the Qualified Charitable Distribution (QCD) was at the heart of much of the giving.
Giving from an IRA, also known as an IRA charitable rollover gift or QCD, took a leap of 73.8% from 2017 to 2018, according to survey results from FreeWill, a fundraising company. Of the nonprofit organizations surveyed, 92% reported increases in QCD giving
FreeWill noted that QCDs are open to anyone 70½ and older with a traditional IRA. However, 401(k)s aren’t eligible for QCDs. Distributions from IRAs can satisfy the IRS’s minimum distribution requirement (RMD). These gifts can be made annually, up to a maximum of $100,000 per year. There is also no minimum.
FreeWill’s research looked at about 120 nonprofits with total revenue ranging from $1 million to $1 billion. The research showed that QCD gifts are getting larger: 52% of charities that responded said the average gift had increased since 2017. Only 12% said the average had decreased, and 30% reported no change.
About 50% of respondents said demographics were responsible for the sharp growth in giving via QCDs, while 27% said it was changes in the tax law. The tax law changes mean that for many donors older than 70, QCDs may be their only way to get a meaningful tax benefit from charitable contributions, since they can no longer itemize deductions and don’t have the charitable deduction.
In addition to the tax incentives, demographic shifts are dramatically altering charitable giving in our country. Americans between 70 and 80 are the fastest growing age bracket. Their numbers will continue to grow over the next 10 years.
The nonprofits in the study said there were several obstacles that keep donors from making QCD contributions. About 80% of respondents said their biggest challenge when processing these gifts, was a lack of information shared by IRA custodians.
The second reported challenge to the use of QCDs is that many donors are simply not aware that the QCD is an option, and are confused about the process of making contributions.
There also seems to be some question with who in the nonprofit is responsible for the QCD donations. Planned giving officers said that questions about QCDs made up two-thirds of their questions from donors. Adding to the problem: confusion about which area of a nonprofit’s development office is handing QCDs.
Pauline Yeung-Ha, partner of Grimaldi & Yeung LLP, was once again inducted as Trustee on the Board of Directors of the Brooklyn Bar Association on June 12, 2019 for another 4 years. Pauline has been invited to serve as Trustee of the Brooklyn Bar Association since 2015. Here are some photos from the evening:
Grimaldi & Yeung LLP is proud to announce that our partner, Joanne Seminara, will be featured on Pix 11 News Close-Up with Marvin Scott, which will air this Sunday, June 16th at 6:00m and starting at 11:00am, will be streamed online here.
Ms. Seminara will be speaking on the topic of “5@55: The 5 Essential Legal Documents You Need by Age 55” – which is also a book she co-authored as part of a public education campaign that describes the critical importance of having 5 legal documents in place by mid-life.
As an alum and dedicated supporter of Fontbonne Hall Academy in Bay Ridge, Brooklyn, Judith D. Grimaldi is proud to announce their first annual Inaugural Principal's dinner on Wednesday, June 12th 2019 at The beautiful Water Club in New York! If you are interested in attending or supporting this event, kindly click on the link below for more details. We appreciate your support.
Judith D. Grimaldi presented in the most recent of our monthly legal education series which was entitled, "Should You Transfer Your House (and other assets) To Protect Them?" on Thursday, May 30th. The event was very well attended and the attendees benefited greatly from all of the information they received. We also held a Kindle Fire raffle at the event, in honor of Older Americans month! Kindly join us in our next and final presentation of the series entitled: "How Can I Best Protect My Assets from Nursing Home & Home Care Spending? Medicare vs. Medicaid" to be held on Thursday, June 27th at 7:00 PM at Il Centro, 8711 18th Avenue, Brooklyn, NY. Kindly RSVP to: Margaret Coppola: (718) 238-6960 or firstname.lastname@example.org.
Whether your prize assets are dairy cows, acres of cropland or manufacturing, a business succession plan takes a lot of time to map out. Business plans are often by-products of good succession plans.
Planning to hand over a business takes more than one meeting with one professional. It can take months, involve a number of professionals and require family meetings as well. The article from Dairy Herd, “Estate Planning Is A Process, Not An Event, ” explains that if you know someone who is working on their succession plan, expect them to be having more than a few meetings.
In fact, succession planning is a process. Ten years of time can fly by very quickly, so the earlier you can start having these conversations with your attorney, the better.
The amount of time needed to draft a solid succession plan is different for every family. If things are fairly straightforward, it may take only six to nine months. However, it’s not uncommon for this process to take a year or more.
That’s especially true in the ag sector, because once the good weather arrives, this process slows down to a halt—good weather means that everyone is focused on crop production.
There’s no magic age to start the process, but again, sooner is better.
You can spend your entire career building your business. However, very few people have really spent much time thinking about how they will effectively exit from it.
You may not be thinking of retiring or transitioning the farm operation for 15 or 20 years but having an idea of where you're trying to get, gives you a better track on which to run.
Succession planning should happen well before retirement, so that’s why the best plans are flexible and adaptable.
Every plan is unique to each family's particular farm operation and circumstances.
Even a simple operation will need the help of an estate planning attorney, a financial advisor, an insurance agent and a CPA. All of these professionals understand the pressures and expenses of the business and their knowledge can be used to create a plan that will work over the course of many years.
Things may change from the time you start working on a succession plan, to when it is finally completed. That doesn’t mean anything was done wrong—usually it means just the opposite.
An estate plan is the perfect solution to making sure that your assets are passed on to your children from a prior marriage—if you make sure that is addressed in your estate plan.
Here are some interesting statistics: the rate of remarriage has decreased over time for all age groups, except those who are 55 and older. In 1960, only 42% of those 55 and older remarried, and in 2013, that number jumped to 57%. About 17% of people who divorce, eventually remarry. If you are among those who take that leap of faith and marry for a second (or third) time, you’ll want to be sure to have an estate plan that protects your children from prior marriages, says CNBC in a recent article, “Remarried after having kids? Here are tips to avoid accidentally disinheriting them.”
Many people don’t have even a basic will. The risk can be higher, if you have no estate planning when you remarry—your children could unintentionally be disinherited.
The older you are when you remarry, the more apt you are to be bringing assets into the marriage, such as retirement savings, life insurance, brokerage accounts, real property and family heirlooms. Estate planning helps to avoid family conflict.
If you die without a will (intestate), the state law often enforced by a surrogate court judge will decide who receives a share of your estate. Of course, everyone’s situation is different, and some can be more complex than others. However, here are some keys to consider, when thinking about how to make sure your heirs end up with the assets you want them to have.
Account beneficiaries. It’s easy to miss this when you remarry. Update the beneficiary designations on retirement accounts, life insurance policies and other accounts. This designation supersedes any intention stated in your will.
Your home. Remarriage frequently involves a jointly-owned home. Depending on state law and how the property is titled, your intention for your children to inherit your share of it could be thwarted. If the house is deeded as "joint tenancy with right of survivorship" or "tenancy by the entirety," the property typically automatically belongs to the surviving spouse, regardless of what your will says. If you own the house in "tenancy in common," you can leave your share to a person other than your spouse, if you want.
Your personal property. If you want your children to get some particular items when you pass away, be as detailed as possible in your will or in a tangible trust, so there is no room for confusion.
Power of Attorney. Select someone to handle your finances, if you reach a stage where you can’t. A durable power of attorney for your finances allows that person to be in charge of paying bills and filing tax returns. A health care proxy permits the named person important health-care decisions, if you are unable.
Living Will. This states your wishes if you’re placed on life support or suffer from a terminal condition. It helps guide your proxy's decision-making, and if you have no one named, your doctors must follow your wishes in that document.
This starts with a conversation with your spouse, your children and your estate planning attorney. Make sure that your will reflects your wishes. Don’t leave it to chance, or hope that your kids will somehow work it out with your spouse or their stepsiblings. Put it in writing, and make it legally enforceable with an estate planning attorney. Our firm would welcome an opportunity to meet with you and your family.
Whitney Hosten, Associate Attorney of Grimaldi & Yeung LLP, presented to the members of AARP during their monthly May meeting. Whitney presented on the topic of 5@55: The 5 Essential Legal Documents You Need by Age 55. The meeting was very well attended and the members benefited greatly from all of the information they received.
May is Older Americans Month! In honor of this special occasion, Grimaldi & Yeung LLP will be holding a special raffle at our May 30th workshop at Il Centro – where you will have a chance to win an Amazon Kindle Fire!
Federation of Italian-American Organizations of Brooklyn, Ltd. and Grimaldi & Yeung LLP
announce a complimentary monthly legal education series focusing on
“Getting your Legal House in Order as You Plan Your Retirement”
Presented by: Judith D. Grimaldi, Esq. and Joanne Seminara, Esq.
Where: Il Centro, 8711 18th Avenue, Brooklyn, NY 11214
When: May 30, 2019 - 7:00 PM to 8:30 PM
Topic: Should You Give Your House (and other Assets) to Your Kids?
Please join us at this workshop to learn how to best protect your assets in your later years and a chance to win an Amazon Kindle Fire!