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Articles Tagged with Kentucky

By Nathan Vinson, Attorney
English, Lucas, Priest and Owsley, LLP

will

Prince performing in concert in Louisville, Kentucky. Photo by Bob Young.

It’s been more than a year since music legend Prince died unexpectedly at his home in Minnesota. He was actively touring and working at the time of his death on April 21, 2016, at the young age of 57.

You’re forgiven if you assumed his estate was long settled, since he died more than a year ago. But it’s not done yet – and may not be for quite a while – due to the fact that he died without a will.

It’s astounding to think that someone who is as famous, prosperous and with as many assets as Prince would die without this basic legal document. But as it turns out, he’s no different than anyone else – he probably didn’t want to think about death.

Whether you die a famous millionaire or with few assets, if you don’t have a Will you can leave a large mess. Heirs you would have never wanted to have your property could get it. Your estate will spend more probating your assets as well, and those who you wished to receive items from your estate may never see them.

Prince was a very charitable man, yet none of his millions he had nor future royalties will benefit those he likely would have preferred to benefit. Plus, the estate will shell out much more than anyone would want to pay in estate taxes.

Your children and family will be far happier if you take care of this before you die – and there’s no doubt it will bring you piece of mind, too.

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By Nathan Vinson, attorney
English, Lucas, Priest and Owsley, LLP

estate debtWhen a spouse, parent or child passes away, it’s incredibly difficult to handle. Beyond your own grief, planning the funeral and handling a thousand different tasks, you may receive calls or letters from creditors who try to convince you that you should pay the debt of the person who died.

In one recent case, a widow received a collection letter from an agency that specializes in collecting debt for creditors of deceased people. The estate had been closed for about a year. She didn’t owe that debt, but the collection agency tried to convince her that she did.

Collecting decedent debts

By law, you don’t owe a debt for someone who died (unless, of course, you owed the debt jointly with the decedent or as a guarantor). Once the person passes away and the proper steps have been taken to handle the probate estate, the opportunity for a creditor to collect unsecured debt is gone.

Credit agencies, especially the less reputable ones, may use all manner of intimidation and even threats to get people to pay debts. These calls can be troubling and confusing for people, especially those who are older or who don’t know the law. It’s important to understand how debt is collected to protect yourself and the people you love.

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By Nathan Vinson, Attorney
English, Lucas, Priest and Owsley, LLP

You’d think giving money away would be easy, wouldn’t you? And for the most part, it is. But it’s important to pay attention to some of the details so you don’t end up getting socked with a tax bill or missing out on a tax deduction in return for your generosity.

In our last post, we discussed how to give money to your children, grandchildren or anyone else you’d like without much complication (such as having to file a gift tax return).  Now, let’s turn to gifting that can net you a tax deduction on your income tax return (in addition to just making you feel good).

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By Nathan Vinson, Attorney
English, Lucas, Priest and Owsley, LLP

giftsIt’s a generous time of year.

There are donations making their way to non-profits, and checks being written in lieu of gifts to family members. If you prefer to give money rather than gifts to children, grandchildren or others on your list, there are a few things you need to know before you write that check.

We’ll address just giving to your children in this blog post; we’ll address giving to charities in part two later this month.

The main point: your gift can trigger your obligation to file a gift tax return if you aren’t careful. We’ll walk you through who you can give to, how you can give and how much you can give. Here’s the official information from the IRS.

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By Nathan Vinson, Attorney
English, Lucas, Priest and Owsley, LLP

will

Prince performing in concert in Louisville, Kentucky. Photo by Bob Young.

News reports since Prince’s death have indicated he died intestate – which means without a will. It’s hard to imagine someone who had complex dealings with the music world and a sizable fortune not having this very basic legal document.

You’re talking about a guy who changed his name to an unpronounceable symbol in a contract dispute with Warner Brothers (finally settled in 2014) and put out albums under the symbol name – and never seemed to lose credibility or popularity because of it. His cool factor really has nothing to do with legal issues. As a fellow musician, I just stand in awe of anyone who has such a long, productive career and had such a strong fan base that lasted decades.

Think of the legality of changing your name to a symbol and continuing to produce records. It probably gave his business and legal advisors some heartburn. Lawyers were likely involved in many aspects of his musical career, determining usage rights, negotiating record deals, negotiating with booking agents for venues and many, many other things. He had employees certainly and probably more than one business entity. It was a complex life.

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TAX DAY IS APRIL 18 ELPO

By Nathan Vinson, Attorney

English, Lucas, Priest and Owsley, LLP

Tax Day is a day that we know you celebrate with great abandon. Right?

If you do in fact go all out for Tax Day, this year, you’ll need to move your Tax Day celebrations to April 18. Traditionally, Tax Day is April 15. In some circumstances, it is moved back a few days to accommodate a holiday. This year, Tax Day is April 18 because of Emancipation Day, which is a holiday in Washington, D.C. that marks the anniversary of the abolition of slavery in the nation’s capital.  It is celebrated annually on April 16.  Because that date falls on a Saturday, Emancipation Day will be officially celebrated on April 15 this year, shutting down city offices.

Tax Day is also moved when April 15 falls on a Saturday or Sunday. It is then moved to the following Monday.

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By Elizabeth J. McKinney, Attorney
English, Lucas, Priest and Owsley, LLP

woman-hand-smartphone-desk-pexelsWhen someone dies, there’s lots to do. It’s not quite as hurried as most think it is, but usually, within a week of the funeral, the heirs are starting the process of handling all of the paperwork that needs to be handled.

You can make this all much easier by getting together a packet of information for the executor of your estate and the attorney and professional advisor who has worked with you in making your estate plans. It’s best to start this process long before you think you need to do so, and to let your friends and family know where the documents are.

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By Nathan Vinson, Attorney
English, Lucas, Priest and Owsley, LLP

Goodwill receiptAlmost everyone makes charitable donations of some kind, and many of us expect to deduct the value of those donations from our income when our taxes are being prepared. While it’s not a primary motivator for most who give to charity, it certainly helps spur some giving and motivates some to meet charitable obligations prior to the end of the calendar year.

Here are a few tax rules to keep in mind when making charitable donations of property (i.e. noncash donations), as federal tax law and regulations require certain documentation of gifts depending on the value of the gifts.  In tax parlance, these rules are called “substantiation” requirements.

For gifts under $250, minimal documentation is required to claim a tax deduction. While it is generally required that the taxpayer obtain a receipt from the charitable organization, the taxpayer is excused from doing so if getting a receipt is “impractical.”

An example that the tax regulations use is dropping off property (i.e. clothing) at a charity’s unattended drop site (i.e. a Goodwill drop box after store hours).  In that instance, taxpayers are required to retain in their own records (but not submit to the IRS) documentation containing:

  • the name and address of the charity;
  • the date and location of the donation;
  • a description of the property, including its value;
  • the fair market value of the property contributed and the method used to determine the fair market value; and
  • possibly other documentation.

As you can see, it may just be simpler to get the receipt!

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By Elizabeth McKinney, Attorney
English, Lucas, Priest and Owsley, LLP

wills and trustsMany people believe that if you have a will, that document controls who receives every asset you own. But that’s not necessarily true. A will or other similar documents, such a trust, can dictate who gets most assets, but beneficiary designations for certain assets, such as 401(k)s and life insurance, as well as transfer on death or payable on death designations on bank or brokerage accounts, supersede that. Those accounts should be reviewed periodically, but particularly after a major life change such as a death or a divorce.

For example, if you change your will to indicate your new spouse should receive your assets after your death, as you probably should, but you didn’t change the beneficiary for your Individual Retirement Account (IRA), your ex could end up with the proceeds of that account, much to the surprise of your new spouse.  Most people set up those accounts and never revisit the information attached to it, which is where problems come in.

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By Elizabeth McKinney, Attorney and Partner
English, Lucas, Priest & Owsley, LLP

Estate planning often involves thinking about things you’d rather not, and perhaps the most unpleasant of tasks is to consider who you’d appoint as guardians for your minor or special needs children in the event of your death.

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