Archive for Cool Stuff
Sending The Kids Off To College
Posted by: | CommentsHave you started thinking about the cost of a college education? Any good financial and estate plan should include provisions for financing the cost of education for your children. There are many options available to help you save for college, including college 529 savings plans, pre-paid tuition plans, and plans that allow you to lock in ever-escalating tuition rates.
Regardless of how you choose to save, when it comes time to send your kids to college, you’re going to have to complete the Free Application for Federal Student Aid, affectionately known as FAFSA by students everywhere. In order for your kids to qualify for any form of financial aid—loans, grants, or school scholarships—you’ll be required to complete the FAFSA.
FAFSA is the first step in applying for financial aid, and it’s the cornerstone of any and all awards of financial assistance.
Fast FAFSA Tips – File Early
A lot of financial aid money is allocated on a first-come, first-served basis. In other words, you need to have a sense of urgency, and the entire process begins with filing your FAFSA. While the federal deadline for completing the FAFSA is June 30th, the FAFSA can be filed any time after January 1st. Many states have deadlines that are much earlier than June 30th, and it’s a well-known fact that in some situations, students who file early get more generous awards.
One common objection to filing the FAFSA early is that detailed tax information isn’t available in January. That’s easily overcome. The answer is that you should gather financial information and make informed, educated guesses on the FAFSA. You’ll have an opportunity to update the FAFSA later, after you’ve actually filed your tax returns. Just remember to check the “will file” box on the FAFSA, and the Department of Education will send you an email reminder to update the form in April.
Be Thorough
Schools typically audit about 30% of FAFSA applications. If your application is audited and it contains mistakes, you’ll waste valuable time. The moral is that you need to be thorough and accurate when completing the FAFSA. Gather all the information you’ll need and take the time to really focus while completing this document. Take note that you’ll need more than just your adjusted gross income (“AGI”). You’ll have to add any contributions to pre-tax retirement plans like 401(k) or IRA accounts.
Other Odds and Ends
If you’re divorced, then the FAFSA is filled out for the household (parent and step-parent, if applicable) in which your student spends most of his or her time. The other parent must also complete a supplemental form to the FAFSA.
The FAFSA can be completed online, and it can be re-filed each year (as is required) online too. This method is preferable, since you’ll be given a PIN for access to revise and update your application at any time. Filing online will also help you reduce mistakes, since the online application has a guidance screen that will answer questions that typically arise while completing the form.
You don’t have to fill out a FAFSA for each school that you’re applying to. Rather, you can indicate the schools where you’re applying on the FAFSA, and your information will be transmitted to each of those colleges. If you filed online, you can update your list of schools at any time.
Part of Parenting
Helping your kids figure out how to pay for college is part of parenting. So is making sure that you have an adequate estate plan in place. This primer on the FAFSA is a service that we’re providing, because we want to help you take care of the details. If you’re interested to learn how we can help you form an estate plan, contact our offices and ask to schedule a Family Wealth Planning Session™.
What Happens In Vegas….
Posted by: | CommentsIn the last couple of weeks, Karen and I had to travel to Las Vegas for a wedding. You may remember this is where Karen lived when we met. So, it wasn’t a quickie, drive thru chapel type wedding. It was a real bash! Karen was a bridesmaid for the first time in the U.S. so it was fun for her for several reasons.
The weekend away was also a nice way for us to have time away for a couple of days, as well.
Karen’s heart goes out to those animals not easily adoptable for whatever reason. She’s such a softie and would take them all if she could! So, now, we have two new additions to the family. Two solid black cats (can you believe that superstition makes these beautiful animals hard to new homes?). Their names are Marble and Puma ,and we love them already. We are holding our breath to see how well they are finally received by our other cats, Romeo and Harley.
On this note, if you have ever thought of having a Trust for your family pet, call us. California law allows you to leave a Trust to ensure money is available to provide care for your pet after your gone. It’s actually good planning if you love your pet like a member of the family!
Speaking of members of our household (smile), I want to remind you about our Client Care Membership program where we keep your documents and assets up to date so that your plan will work when it needs to with unlimited amendments. In addition, there are many bonuses we’ve recently added. For example, we have a new one called ClientDocX that allows you to store all of our estate planning documents on a secure server, and you can selectively give access to certain individuals (i.e., your agents, financial planner and CPA).
It can also maintain all of your financial documents and, if you choose, you can store all your passwords. We highly recommend this feature because, if a loved one becomes incapacitated, it makes it much easier to handle business. If you’d like to find out more about Client Care, call our office at 818.905.6088 or visit the Client Care section at www.estplan.com.
Until next time,
Gerry
What happens if I die without a will?
Posted by: | CommentsThis is the answer to that question on the State of California’s website:
If you are not married or in a registered domestic partnership, your assets will be distributed to your children or grandchildren, if you have any—or to your parents, sisters, brothers, nieces, nephews or other relatives. If your spouse or domestic partner dies before you, his or her relatives may also be entitled to some or all of your estate. Friends, a non-registered domestic partner or your favorite charities will receive nothing if you die without a will. The State of California is the beneficiary of your estate if you die intestate and you (and your deceased spouse or domestic partner) have no living relatives.
As there are so many variables associated with not having a will that means, for example, your spouse may only get 1/3 of your estate OR they may get all of it.
See me to get the full details for having your plans properly executed when your family needs them to work. Call me at 818.905.6088 or click here to book your own appointment.
Check to see if you qualify for one of the free appointments for planning that we reserve each month for new clients.
