Monthly Tips
July 2024
TIP 1 July Fourth Celebration
July 4th is quickly approaching, and the barbeques and patriotic paraphernalia may be seen throughout American, and even in other countries. Here’s some trivia to share – there have been 27 different official versions of the U.S. flag from 1777 to 1960, and according to the National Retail Federation an estimated 31% of Americans plan to purchase additional patriotic items as they celebrate this year. They also let us know that 87% of people plan to celebrate, with an estimated food spend of $90.42 per person.
Whether it observing fireworks, or quietly reflecting on all the people who protected and continue to protect the freedoms, we hope you have a wonderful day with your families and friends.
https://gstrustco.com/trusts-estates/charitable-trusts/
TIP 2 IRS Communication Troubles
For those that need to contact the IRS to resolve tax issues, there may not be a quick and easy answer. One may have thought that it would get much easier to contact the IRS because of the additional budget they were allotted from the Inflation Reduction Act, but that funding did not change the underlying problems and dynamics. According to a recent WSJ article, the IRS hired an additional 7,000 customer service representatives, yet of the 2.1 million people that called the collections phone line only 1/5 got through to a representative.
Did you know that even after you die, a final income tax will need to be filed and taxes paid by your executor? One more reason to consider a corporate executor, so your family members can be left time to grieve instead of dealing with the financial side of settling the estate. If you’d like more information, let us know.
https://gstrustco.com/wp-content/uploads/2024/02/Garden-State-Taxes-2024E.pdf
TIP 3 The Need For a Will
Society is structured in a way where most things happen the way you expect and want them too, but most is not all for all people. When it comes to estate settlement, the law of intestate succession works well for some people. The assets go through administration and end up in the hands of those that the deceased would have intended them to go to, even without a will.
However, more and more families don’t fit the default dynamic. Blended families, families with children with special needs, families with children with unequal participation in a business, families with philanthropic goals, and many others really need a Will. They shouldn’t wait. Even if the intestacy laws do seem to direct the assets to the right beneficiary, a Will can make the transfer and evaluation of assets easier.
In more complex cases, or when there is a desire to turn a large inheritance into a lasting legacy, the consideration of a trust may be worthwhile. That’s where Garden State Trust Company comes into play, and we’d be pleased to share additional information.
https://gstrustco.com/trusts-estates/executor-services/
TIP 4 Bobby Bonilla Day
July was somewhat of a special month to those that believe in deferred gratification because it starts out with Bobby Bonilla Day. Bobby Bonilla was a famous baseball player for the NY Mets, and though he is retired now, he is still receiving almost $1.2 million dollars every year through 2035 from his former employer. This may seem like a generous retirement package, but in fact it is a deferred compensation package dating back to the year 2000, when he negotiated to turn his $5.9 million contract into future payments.
Read more on Bobby and how an ordinary investor can also use compounding gains to increase what they have to spend when they retire in our latest blog: Gratification – Deferred All the Way Into Retirement
https://gstrustco.com/investments/managing-preserving-wealth/