NEWS a life well planned is a life well lived
The Captain’s Log Winter 2019
Economic Naughty & Nice List The roughly 30 days between Thanksgiving and Christmas provide stock market participants a seasonally unique opportunity to reflectively evaluate their previous year’s successes and failures and to proactively prepare for the coming year’s challenges and opportunities. In the investment management business, the seasoned veterans have learned to take this annual opportunity to cautiously lean back while optimistically looking forward into the coming year. We have learned to leverage the previous year’s experiences to help us remain both convicted and humble about our past successes. By reviewing the previous year’s top news stories and market making activity we now move more knowledgeably into 2020, and to keep it seasonal I would like to critique 2019’s big market moving stories using Santa’s timeless grading scale - Naughty or Nice.
Total U.S. Employment: At the very top of the 2019 storyline sits our domestic employment market resting comfortably on Santa’s Nice list. Our overall employment condition continues to radiate economically like the North Star on Christmas Eve, and we today continue to benefit economically by enjoying the trickle-down benefits of the highest total employment figure ever and the lowest total unemployment rate since World War II. Not even Mr. Potter could find fault in these numbers and 2019 proved to be a fantastic time to be gainfully employed in the U.S, leading us convincingly optimistic into 2020. The Federal Reserve: Like building a snowman in July, I need to place the Federal Reserve and their corresponding federal funds policy on the Naughty list. In retrospect, (continued on page 3)
JAMESTOWNE INVESTMENTS NEWS What’s Inside: What You Should Do With Your Tax Refund Annual Contribution Limits Changing Pearl's Pet Tips Saving For Soaring College Costs Creating A Retirement Strategy Revocable Living Trusts Recipe Corner A Soldier's Hand
Newsletter Disclosures Securities and advisory services offered through Prospera Financial Services, Inc. Member FINRA, SIPC. 5429 LBJ Freeway, Suite 400 Dallas, TX 75240 This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. Our firm does not provide legal or tax advice. You should consult with legal and tax advisors before making any investment decisions that would have legal/tax consequences. Investments in securities and insurance products are: NOT FDIC-INSURED/NOT BANK-GUARANTEED/ MAY LOSE VALUE
A MESSAGE FROM CLAYTON Your Trusted Advisor I believe the Federal Reserve did a remarkable job using their available tools to pull the U.S. out of the horrific avalanche of the liquidity crisis and consequential housing market collapse. Just like Rudolph’s blinking nose, I believe short-term rates have been too low for too long and this policy has artificially inflated the U.S. economy and significantly penalized retirees and savers by forcing unnatural amounts of money into risky assets. In some conservative academic circles, it is prudent to practice a more scrooge-like strategy. I suppose, from a monetary policy standpoint, I tend to align more philosophically with the tight-fisted Ebenezer, and I am concerned the over-extended easy money policy and over-inflated economy will in the long-term leave us all feeling a little desperate like Tiny Tim, “God Bless Us, Everyone.” Tariffs and The Trade War: 2019’s year-long trade war banter caused as much market heartburn as an outdated fruitcake, and unfortunately it looks as though the back and forth squabbling will continue well into 2020. Although CLAYTON JAMES the short-term volatility is both alarming and discouraging, the FINANCIAL ADVISOR positive long-term benefits are undeniable; consequently, the global trade war is placed on the Nice List. China and other foreign trading partners have been acting like the Grinch living atop Mt. Crumpit waiting for just the right opportunity to sneak into town and steal our intellectual property and raid the cupboards of the U.S. consumer. Our threatened trade war & hard push back against these longstanding practices should bring relief to our outof-balanced trade deficits and give our Elves a greater opportunity to participate in their personal growing economic successes. Length of Current Economic Expansion: As we now enter the 125th month of our present economic expansion, the concern continues to build and the questions continue to be asked, “how long can it last?” The average economic expansion during modern U.S. history is 48 months; we are now greater than 2.5 times that length putting this expansion cycle solidly and surprisingly on the Naughty List. The generous banker George Bailey would warn against such a long unchecked economic expansion and in today’s world George would passionately preach against the continued use of excessive debt and leverage to continue pushing this expansion forward. We have only limited data suggesting the present expansion has become long in the tooth, but eventually all good things come to an end and yes, Ralphy, you will shoot yourself in the eye. “Remember George, no man is a failure who has friends.” Ginger and I are eternally thankful and grateful to have the opportunity to work with you and your family in the extremely important capacity of managing your investment assets. We are grateful for every day and for every opportunity to provide you with great service, clear communication, and excellent investment experiences. We hope you and your family have a wonderful Holiday Season and regardless of what the 2020 media noise and market turbulence conditions bring we will be here to walk beside you in this great journey of our lives. Happy Holidays to All… Clayton W. James, CFM, AAMS Managing Director
What Should You Do With Your Tax Refund? A few possiblities to consider.
Will you be receiving a tax refund this year? If so, you might want to think about the destiny of that money. Here are a few options to consider: •
Start (or add to) an emergency fund. Do you have a dedicated rainy day fund? Consider setting this money aside for a tight spot you may find yourself in at another time.
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Invest in yourself. You could put the money toward education, career training, or personal improvement.
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Use it for a down payment on a vehicle or real property. Real property may represent a better financial choice, but updating your vehicle may have merit - cars do wear out.
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Put it into a retirement account. If you haven’t maximized your contributions this year or have a chance to get an employer match, it may be worth considering.
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Pay down debt. Almost always a wise move.
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Get your home ready for the market. Spruce up the yard, exterior, or interior of your residence, or hire professional who can assist you with staging it.
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Improve your home with energy-saving appliances. Or windows, or weather-stripping, or solar panels – just to name a few options.
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Create your own food bank. What if a hurricane or an earthquake hits? Where would your food and water come from? Emergency food stores are worth considering.
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See a doctor, optometrist, dentist or physical therapist. If you have not been able to see these professionals due to your insurance situation or your personal cash flow, why not do it now?
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Pay for a getaway you have been dreaming about. If you are debt-free and feel financially confident, perhaps you should consider rewarding yourself with travel?
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Pay it forward. Your refund could turn into a charitable contribution (deductible on next year’s federal tax return, if you itemize deductions.)
By carefully considering how to use your refund in advance, you may be able to avoid asking yourself, later, that age-old question … “Where did it all go?”
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Retirement Plan Annual Contributions Limits Changing
The I.R.S. just increased the annual contribution limits on IRAs, 401(k)s, and other widely used retirement plan accounts for 2020. Here’s a quick look at the changes. *Next year, you can put up to $6,000 in any type of IRA. The limit is $7,000 if you will be 50 or older at any time in 2020.1,2 *Annual contribution limits for 401(k)s, 403(b)s, the federal Thrift Savings Plan, and most 457 plans also get a $500 boost for 2020. The new annual limit on contributions is $19,500. If you are 50 or older at any time in 2020, your yearly contribution limit for one of these accounts is $26,000.1,2 *Are you self-employed, or do you own a small business? You may have a solo 401(k) or a SEP IRA, which allows you to make both an employer and employee contribution. The ceiling on total solo 401(k) and SEP IRA contributions rises $1,000 in 2020, reaching $57,000.3 *If you have a SIMPLE retirement account, next year’s contribution limit is $13,500, up $500 from the 2019 level. If you are 50 or older in 2020, your annual SIMPLE plan contribution cap is $16,500.3 *Yearly contribution limits have also been set a bit higher for Health Savings Accounts (which may be used to save for retirement medical expenses). The 2020 limits: $3,550 for individuals with single medical coverage and $7,100 for those covered under qualifying family plans. If you are 55 or older next year, those respective limits are $1,000 higher.4 Do you want to direct more into your retirement account next year? Would you like to review your progress toward your retirement savings goals or simply determine how much you may need to save for the future? Please call or email the office. I am happy to provide insight.
1 - irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits [11/8/19] 2 - irs.gov/newsroom/401k-contribution-limit-increases-to-19500-for-2020-catch-up-limit-rises-to-6500 [11/6/19] 3 - forbes.com/sites/ashleaebeling/2019/11/06/irs-announces-higher-2020-retirement-plan-contribution-limits-for-401ks-and-more/ [11/6/19] 4 - cnbc.com/2019/06/03/these-are-the-new-hsa-limits-for-2020.html [6/4/19]
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Remember these tips to keep your pets safe this winter:
Pearl's Pet Tips
When the weather outside is frightful, your pets could be at risk.
1. Know your dog’s limits. Some dogs are more susceptible to the cold than others. Short-coated, thin, elderly, or very young dogs get cold more quickly – so adjust the amount of time they stay outside! If your dog enjoys being outdoors and you will be outside longer than a few minutes, consider outfitting it with a sweater or coat to keep it warm. Hypothermia and frostbite pose major risks to dogs in winter, so remember, if it is too cold for you, it is probably too cold for your dog.
2. Check the hood. Cats often sleep in the wheel wells of cars during the winter months to keep warm. If you start your car and a cat is sleeping on your tire, it can be severely hurt or even killed by moving engine parts. Prevent injuries by banging loudly on your hood or honking the horn before starting your car. This will wake up the cat and give it a chance to escape before starting the car. 3. Wipe their paws. During winter walks, your dog’s paws can pick up all kinds of toxic chemicals – salt, antifreeze, or deicers. Be sure to wipe off your dog’s paws when you return from walks to prevent him from licking it off and becoming sick. Purchase pet-safe deicers for your home for an extra level of safety. And when wiping off your dog’s paws, remember to check for signs of injury, such as cracked or bleeding paws. 4. Keep them leashed. More pets become lost in the winter than any other season because snowfall can disguise recognizable scents that would normally help them find their way home. Prevent your pets from becoming lost by keeping dogs leashed on walks and, just in case you are separated from your pets, make sure their collars have up-to-date contact information and they are microchipped. 5. Avoid the ice. When walking your dog, be sure to avoid frozen lakes and ponds. Your dog could be seriously hurt or even killed if the ice breaks. 6. Leave them home. Just as hot cars are dangerous for pets in the summer, cold cars pose a threat as well. Only take your pets in the car if it is necessary, and never leave them unattended. 7. Be seen. Due to Daylight Savings, many of us are relegated to walking our dogs in the dark. Keep yourself and your dog are safe by wearing reflective gear (clothing, leash, collar, etc.) and keeping your dog close when walking on the street. 8. Give them shelter. Ideally, all pets should live inside. If your pets live outdoors primarily, bring them indoors during sub-zero temperatures. For the rest of the winter, provide them with a dry, draft-free shelter that is large enough to allow them to sit and lay down comfortably, but small enough to conserve body heat. The floor should be raised a few inches off the ground and covered with cedar shavings or straw. Turn the shelter so it faces away from the wind and cover the doorway with waterproof burlap or heavy plastic. Also, pets who spend a lot of time outside need more food to replace energy lost from trying to stay warm. Use plastic food and water dishes instead of metal – when the temperature is low enough, your pets’ tongue can become stuck to metal. 9. Avoid spills. Antifreeze attracts cats and dogs because it is very sweet to taste, but it is extremely poisonous and can cause serious illness or death when ingested. Be sure to clean up any antifreeze that spills in your garage and keep the bottle somewhere your pets cannot access. 10. Be prepared. Winter brings extreme weather that can cause power outages. Have an emergency plan and make sure they include your pets! Have an emergency kit with enough food, water, and medication to last your pets at least five days. Most likely you will never need it, but if you do, you will be thankful you planned ahead! Bairey Merz agreed, adding that more research is needed to determine if the gender differences in age at diagnosis are "real" and whether they are linked to gender bias, actual biological sex differences or random error associations. 6 /
Saving for Soaring College Costs Make Educated Decisions
Giving Children and Grandchildren the Opportunity of a Lifetime Whether your children or grandchildren are toddlers or teenagers, it’s only a matter of a time before they leave the family home, probably as they head off to college. The cost of sending just one child to college for four years can be staggering, and tuition and fee hikes regularly outpace inflation. Rather than sending your children or grandchildren into the world with the burden of student-loan debt, you can save to help cover at least a portion, if not all, of their higher-education expenses. It’s common to assume that saving will be easier in the future when you’re earning more, but as your family and income grow, so do your expenses associated with your standard of living. If you wait until your kids or grandkids are closer to college age, you may find you’ve waited too long and might face the prospect of scaling back the family’s finances in other ways to save for hefty tuitions, fees, and living expenses. Also, when you start early, college savings can earn substantially more over time through the power of compounded growth. For example, suppose you start putting aside $100 every month for an 8-year-old child. Assuming a 5% annual growth rate, you’ll save $15,592 by the time your child is ready for college but will have invested only $12,000 out-of-pocket. If you wait until your child is 15 to start saving, you’ll have to put more money aside each month to save the same amount, and your out-of-pocket investment will be much greater. For example, at the same 5% annual growth rate, it would take $400 per month to save $15,566 in time for college, and you’d have invested $14,400 out-of-pocket. This information is hypothetical and is provided for informational purposes only. It is not intended to represent any specific return, yield, or investment, nor is it indicative of future results. How do you plan to meet the ever-rising costs of college? Contact Clayton today to discuss your education funding options.
529 Savings Plans
ESA
UGMA/UTMA
Savings Bonds
How much can you invest?
Perhaps as little as $10 a month or as much as vendor allows; varies by state. (Donor subject to annual gift tax exclusion of $14,000 or five-year accelerated gift.)
$2,000 maximum annual contribution per child up to age 18 (over 18 if beneficiary has special needs).
Unlimited contributions, but donor should consider the $14,000 annual gifttax exclusion.
Up to $10,000 per year of Series EE and I bonds electronically and an additional $5,000 in paper Series I bonds bought with IRS tax refund (per Social Security number).
Who controls the account?
Account owner (not beneficiary).
Parent or other “responsible individual.”
The custodian until the minor reaches the age the custodianship terminates (varies by state).
Bond owner
Tax treatment
Tax-deferred growth. Qualified withdrawals may be federal-tax-free. Earnings portion of distributions may be taxable in years the American Opportunity Credit or Lifetime Learning Credit is used if same expenses used to qualify for credit. Contributions may qualify for a Wstate-income-tax deduction.
Tax-deferred growth. Qualified withdrawals may be federal-tax-free. Earnings portion of distributions may be taxable in years the American Opportunity Credit or Lifetime Learning Credit is used if same expenses used to qualify for credit.
While the child student is under age 24 and a dependent, subject to “kiddie tax” rules.
Interest is taxable unless higher-education exclusion applies. See IRS Form 8815 for details. Interest income might not be tax-free in a year when American Opportunity Credit or Lifetime Learning Credit is used if same expenses used to qualify for credit.
Withdrawals must be used for qualified higher education expenses.
Withdrawals must be used for qualified elementary or secondary expenses or qualified higher-education expenses.
Should be used for the child’s benefit.
No restrictions. However, to qualify for interest exclusion, withdrawals must be used for qualified higher-education expenses.
Financial aid Considered account owner’s considerations assets, with the exception of student- or custodian-owned account. Accounts owned by the dependent student or a custodian for the student (Custodial 529) are considered the parents’ assets. Penalty-free withdrawals if student receives tax-free scholarship. Restrictions apply.
Considered account owner’s assets, with the exception of student- or custodian-owned ESA. Accounts owned by a dependent student or a custodian for the student are considered the parents’ assets. Penalty-free withdrawals if student receives tax-free scholarship. Restrictions apply.
Considered child’s assets.
Considered bond owner’s assets.
Advantages
Anyone can make contributions. Account owner retains control. No family income restrictions. Plans can be transferred to another eligible family member without penalty or to another qualified tuition program once every 12 months.
Can transfer account to eligible family member. Anyone who is under the MAGI limits can make contributions. Withdrawals can also be used for qualified K-12 expenses. Self-directed investment choices.
Anyone can make contributions. Withdrawals not restricted to qualified educational expenses. Possibly lower taxation on investment income than if held in parent’s name. No family income restrictions.
Guaranteed minimum return. Tax on interest income can be deferred until the earlier of redemption or maturity. It may be tax free if you qualify for the education exclusion
Disadvantages
Tax and 10% penalty on earnings for nonqualified withdrawals. Investment options are limited to those offered by a particular plan. May only change investment options twice per calendar year or when changing beneficiary.
Tax and 10% penalty on earnings for nonqualified withdrawals. Not available to taxpayers with MAGIs over $220,000 (joint) or $110,000 (single). Low contribution limit.
No tax deferral. Child gains complete control at age when custodianship ends (varies by state).
Low rate of return. Eligibility for interest exclusion begins phase-out for MAGIs above $117,250 (joint) or $78,150 (single) for 2017. Benefit of interest exclusion is limited to person(s) taking a dependency exemption for the student on form 1040
Restrictions on use of money
Eligible institutions include post-secondary institutions (both nationwide and qualifying overseas institutions).
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Once child is over age 18 and has earned income greater than half his/her support, “kiddie tax” no longer applies.
Jamestowne Investments Operates as the Managing Broker for all Riverside Health System's 529 Accounts Riverside Health System’s College America 529 Plan In October, we had the opportunity to visit with all of the Riverside Health System’s employees during their “Wellness Fair”. Financial wellness is as important to the hospital’s 10,000 employees as is their health. Many employees realized it was not too late to start saving for higher educational or trade school expenses. Pictured here are Riverside Walter Reed employees, Missy Conklin, RN, BSN and Alexa Taylor, Operating Room Surgical Team as they learn about the opportunity to participate in the American Funds CollegeAmerica 529 plan sponsored by the Riverside Health System.
Creating a Retirement Strategy
Most people just invest for the future. You have a chance to do more. Across the country, people are saving for that “someday” called retirement. Someday, their careers will end. Someday, they may live off their savings or investments, plus Social Security. They know this, but many of them do not know when, or how, it will happen. What is missing is a strategy – and a good strategy might make a great difference. A retirement strategy directly addresses the “when, why, and how” of retiring. It can even address the “where.” It breaks the whole process of getting ready for retirement into actionable steps. This is so important. Too many people retire with doubts, unsure if they have enough retirement money and uncertain of what their tomorrows will look like. Year after year, many workers also retire earlier than they had planned, and according to a 2019 study by the Employee Benefit Research Institute, about 43% do. In contrast, you can save, invest, and act on your vision of retirement now to chart a path toward your goals and the future you want to create for yourself.1 Some people dismiss having a long-range retirement strategy, since no one can predict the future. Indeed, there are things about the future you cannot control: how the stock market will perform, how the economy might do. That said, you have partial or full control over other things: the way you save and invest, your spending and your borrowing, the length and arc of your career, and your health. You also have the chance to be proactive and to prepare for the future. A good retirement strategy has many elements. It sets financial objectives. It addresses your retirement income: how much you may need, the sequence of account withdrawals, and the age at which you claim Social Security. It establishes (or refines) an investment approach. It examines tax implications and potential tax advantages. It takes possible health care costs into consideration and even the transfer of assets to heirs. A prudent retirement strategy also entertains different consequences. Financial advisors often use multiple-probability simulations to try and assess the degree of financial risk to a retirement strategy, in case of an unexpected outcome. These simulations can help to inform the advisor and the retiree or preretiree about the “what ifs” that may affect a strategy. They also consider sequence of returns risk, which refers to the uncertainty of the order of returns an investor may receive over an extended period of time.2 Let a retirement strategy guide you. Ask a financial professional to collaborate with you to create one, personalized for your goals and dreams. When you have such a strategy, you know what steps to take in pursuit of the future you want. Citations. 1 - ebri.org/docs/default-source/rcs/2019-rcs/rcs_19-fs-2_expect.pdf?sfvrsn=2a553f2f_4 [2019] 2 - investopedia.com/terms/m/montecarlosimulation.asp [6/10/19]
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Revocable Living Trusts A Flexible and Practical Estate Planning Tool
During your lifetime, a revocable living trust can be very helpful for someone who: • Becomes disabled • Needs help in managing all the details of his or her financial affairs • Simply wants to delegate those tasks to someone else as a matter of convenience And in many states, revocable living trusts are used as an alternative to the probate process in order to streamline the process of settling a deceased individual’s financial affairs. Basic trust terms: A grantor or settlor is the person who creates a trust. The trustee is the person in charge of managing and distributing trust assets in accordance with the trust document. A beneficiary is an individual entitled to benefit from the trust assets.s up, you buy and hang on; if the direction is down, you can short the position (or wait it out).1 How Does a Typical Revocable Trust Work? Your attorney prepares your revocable living trust. You re-title assets so that they are owned in your trust’s name. •
If you are married, you may have a separate trust for each spouse. In some states (particularly in “community property” states), both spouses may hold property in a single trust. An attorney in your state can help you determine the most appropriate arrangement for your particular situation.
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During your lifetime, you continue to manage all trust assets because you are simultaneously your trust’s grantor, trustee, and beneficiary.
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You are entitled to all trust income, and you can withdraw principal any time you like. You can use trust property as you see fit.
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As long as you serve as your trust’s trustee or co-trustee, the trust uses your Social Security number, and all trust income is reported on your personal income tax return.
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You can amend or revoke your trust at any time.
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In the trust document, you name a successor trustee. This could be a spouse, a trusted family member or a professional (corporate) trustee. / 11
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If you wish, you can designate co-trustees who will act together.
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If you are unable to manage your own financial affairs during your lifetime, the successor trustee(s) will step into your shoes to manage your assets and provide for your needs. This helps avoid the need for a court-supervised guardianship or conservatorship.
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Upon your death, the successor trustee(s) will distribute trust assets or continue to manage them, according to your directions. You can provide for outright distributions or create additional trusts as you see fit.
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If you expect to be subject to federal estate taxes, your attorney can include estate-tax planning provisions in your revocable trust. For example, it is common for married individuals to have provisions that allow for the potential funding of a “credit shelter trust” included in their revocable trust.
A revocable living trust is usually designed to work in coordination with other estate planning documents, which frequently include a “pour over” will, a durable power of attorney, and a health care power of attorney or living will. It’s important to talk with an attorney in your state to determine whether a revocable living trust is appropriate for your situation. What Is Probate, and Why Do People Want to Avoid It? Probate laws regulate the management, use, and distribution of property for persons who cannot act for themselves. When an individual can no longer manage his or her own property as a result of incapacity or death, assets held in that individual’s own name become subject to probate. •
During a person’s life, probate courts supervise guardianship or conservatorship estates for individuals who are legally incapacitated.
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The court may appoint a guardian who has responsibility for physical care of the incapacitated person and/or a conservator who is responsible for managing assets for the incapacitated person’s benefit. (Different states use different terminology.)
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Probate courts have jurisdiction over deceased individuals’ estates and regulate the process of managing and distributing a deceased person’s assets.
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In some states, probate is relatively easy and inexpensive. In others, probate involves legal and administrative costs, procedural delays, and the possibility of public disclosures that many individuals would prefer to avoid.
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Probate court files are public records and generally available to anyone. (Just think about the last time you heard about the detailed terms of a celebrity’s will. The press was able to obtain the will because it was like any other public document.)
When Is This Strategy a Potential Fit? A revocable trust can provide a backup plan for managing assets in the event of temporary or longterm incapacity. •
You don’t have to be disabled to benefit from a living trust. For example, older individuals, people who are uncomfortable handling financial matters, or individuals who are simply too busy with other activities, (continued on next page)
may want to appoint a co-trustee to help them pay bills and manage investments. •
Revocable trusts are often used in states where the probate process is viewed as unduly burdensome or bureaucratic.
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If you own real estate in more than one state, titling out-of-state property in a revocable trust may avoid the need for ancillary probate proceedings in states where you are not a resident.
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If privacy is a concern, a revocable trust may be preferable to a will since probate court records are typically open to the public.
What are Some Indications that this Strategy May Not Fit? • For small estates, a trust may not be cost-effective. • If you live in a state where the probate process is viewed as quick andinexpensive, revocable living trusts may not provide a speed or cost advantage. • Although this is not typical, there are situations in which your attorney mayadvise that it is preferable to remain in the court-supervised, highly regulatedprobate process. How Is It Implemented? After your attorney prepares and you sign your revocable living trust, it’s important to understand that there is additional work to be done. To realize the benefit of a revocable living trust, you must transfer assets into your trust’s name. For bank and brokerage accounts, this is a relatively easy process. You are simply giving your financial institution directions to move assets from an individual account to a new trust account. Usually, the financial institution will ask you to fill out a “trustee certification” form along with other account documents. A trustee certification lets you provide information about the trust and the powers of the trustee without having to provide a copy of the trust itself. For real estate, you should ask your attorney to prepare and record a deed transferring the title into your trust’s name. If you own an interest in a closely held business, limited liability company, or partnership, be sure to talk to your attorney about whether or not these assets should be re-titled in your trust’s name. If re-titling is advisable, your attorney will also assist you in making the necessary transfer of title. It may not be necessary (or even possible) to re-title some assets, such as qualified retirement plans, IRAs, deferred annuities, and life insurance. This step may be unnecessary because they ordinarily pass to your named beneficiary(ies) outside of the probate process. (You can name a living trust as beneficiary of these types of assets. See the “Frequently Asked Questions” section below for more information.) It’s important to work with your attorney and tax advisor to determine the best way to handle particular assets in your specific situation. You Can Count On Us We are prepared to work with you and your attorney to develop and implement your estate plan, which may include a revocable living trust.
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Recipe Corner: Contemporary Cassoulet Shared By Margaret McVey Singleton Ingredients • • • • • • • • • • • • • • • • • •
4 bacon slices, coarsely chopped 3 pounds fully cooked smoked sausages (such as kielbasa), cut crosswise into 3/4-inch-thick rounds 2 medium onions, chopped 6 garlic cloves, chopped 1 tablespoon chopped fresh rosemary 1 tablespoon chopped fresh thyme 1/2 teaspoon dried crushed red pepper 1/2 cup brandy 3 15-ounce cans Great Northern beans, drained 2 14 1/2-ounce cans diced tomatoes in juice 1 10-ounce package frozen baby lima beans, thawed 1 cup (or more) canned low-salt chicken broth 3 tablespoons tomato paste 1/2 teaspoon ground allspice 1/4 cup olive oil 4 cups coarse fresh breadcrumbs made from crustless French bread 1/2 cup freshly grated Parmesan cheese 1/4 cup chopped fresh parsley
Preparation 1. Preheat oven to 350°F. 2. Cook bacon in heavy large ovenproof pot over medium-high heat until brown and crisp, about 4 minutes. Using slotted spoon, transfer bacon to bowl. Add sausages to drippings in pot; sauté until brown, about 15 minutes. 3. Transfer to bowl with bacon. Pour off all but 1/4 cup drippings from pot. Add onions and garlic to pot and sauté until beginning to soften, about 10 minutes. Stir in rosemary, thyme, and crushed red pepper. Add brandy and simmer until almost evaporated, about 3 minutes. Stir in canned beans, tomatoes with juices, lima beans, 1 cup broth, tomato paste, and allspice. Return sausages and bacon to pot. Season cassoulet with salt and pepper. Bring to boil. 4. Cover pot and transfer to preheated oven; bake 30 minutes. (Can be made up to 2 days ahead. Uncover; cool 1 hour. Refrigerate uncovered until cold; cover and keep refrigerated. Before continuing, cover and rewarm in 350°F oven 40 minutes, adding more broth if dry.) 5. Increase oven temperature to 400°F. Heat oil in large nonstick skillet over medium heat. 6. Add breadcrumbs and sauté until light golden, about 4 minutes. Transfer to small bowl. Mix in Parmesan cheese; season with salt and pepper. Sprinkle over warm cassoulet. Bake until breadcrumb topping is deep golden, about 20 minutes. Sprinkle cassoulet with parsley and serve.
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A SOLDIER'S HANDS What would you do if a soldier sitting next to you on a plane said "Thank you for the hand cream. Dry hands are harder to handle than my fear. Thanks for the offer to send some more over to me where I'm deployed, but truthfully, unless the whole unit gets some, it's not fair." Well - one woman did have this conversation with a service member and decided to respond in 2007. Since then, A Soldier's Hands has distributed over 6,400 individual care packages, unit by unit, with no soldier or sailor in the unit going unacknowledged. Our mission is to send hand care products inside a care package to every single service man and woman who is deployed defending our freedom. We achieve this one unit at a time, with personalized thank you notes in each care package, along with sunscreen, hand cream, lip balm and other surprises. Prospera Financial, LLC and Jamestowne Investments, LLC support this mission. A Soldier's Hands 2277 Oak Leaf Drive, State College, PA 16803 In October, during this year’s annual Prospera Financial Advisors Conference, we were greeted by the most wonderful woman wheeling a load of hygiene products into our hotel conference room. She had the most contagious smile on her face and Ginger asked if she needed help. She proclaimed that Prospera and its Advisors had already helped so much but that she was there for our team of Prospera employees and Advisors to help assemble gift bags to be sent to the troops overseas. In a about 20 minutes we put together enough care packages for 300 folks overseas and had raised over $7,000 towards more care packages in the future! The old adage of many hands makes light work really came to fruition on this day in Dallas.
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Clayton, David Stringer- President of Prospera Financial Services, and other Prospera advisors helping put together packages for A Soldier's Hand.
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Ensure your financial plan addresses all of your life’s events. A life well planned is a life well lived. Securities and advisory services offered through Prospera Financial Services, Inc. Member FINRA, SIPC. 5429 LBJ Freeway, Suite 400 - Dallas, TX 75240