It’s celebration time! Homrich Berg is turning 35 today! Since 1989, Andy Berg and the HB team have stayed true to their core values-putting clients first and delivering top-notch wealth management services. We’re excited to continue this journey and provide exceptional service for the next 35 years and beyond! Cheers to the future!
Take a look at our video: https://youtu.be/bXnyaroLpoA
Facing financial adjustments is a challenging aspect of transitioning to a single life after a divorce or the loss of a spouse. One of the most difficult decisions can involve making changes to your children’s educational and extracurricular activities, such as private school and travel sports, which you may no longer be able to afford. This situation requires careful consideration, open communication, and strategic planning to ensure your children’s well-being while maintaining financial stability.
Emotional Considerations
1. Communicating with Your Children:
Explaining financial changes to your children can be difficult but is essential. Approach the conversation with honesty and empathy. Explain the reasons for the changes and reassure them that their education and happiness are your top priorities. Involving them in the decision-making process can help them feel valued and understood.
2. Managing Possible Guilt and Emotional Stress:
As a parent, it’s natural to feel guilty about making financial cuts that affect your children’s activities. Remember that these decisions are made out of necessity, not lack of love or commitment. Focus on the long-term benefits of financial stability and the ability to provide for essential needs.
Practical Considerations
1. Exploring Alternative Education Options:
If private school tuition is no longer feasible, research public school options in your area. Many public schools offer excellent educational programs, extracurricular activities, and support services. Consider charter schools, magnet programs, or potentially even certain online schooling alternatives that can provide quality education at a lower cost.
2. Adjusting Extracurricular Activities:
Evaluate the costs associated with your children’s travel sports. These can include registration fees, equipment, travel expenses, and more. Consider transitioning to local sports leagues or community programs that offer similar benefits at a reduced cost. Encourage your children to try new activities that are less expensive but equally enriching.
3. Financial Aid and Scholarships:
Look into financial aid options available for both private schooling and sports programs. Many private schools offer scholarships or sliding-scale tuition based on financial need. Similarly, some sports organizations provide scholarships or grants to help cover participation costs. Don’t hesitate to reach out to school administrators or sports coaches to discuss your situation and explore available resources.
4. Budgeting and Financial Planning:
Create a detailed budget that outlines your income and expenses, prioritizing essential costs such as housing, food, and healthcare. Allocate funds for education and activities within your financial means. Consult with a financial advisor to help you develop a sustainable financial plan that accommodates your new circumstances.
Steps to Make an Informed Decision
1. Assess Your Financial Situation:
At HB, we can help you thoroughly assess your current financial status. Listing all sources of income and categorizing your expenses is a good starting point. This will make it easier to determine how much you can realistically allocate toward education and extracurricular activities without compromising essential needs.
2. Research and Compare Options:
Take the time to research various educational and extracurricular options. Visit potential schools, speak with administrators, and attend open houses or school events. Compare costs, programs, and the overall environment to ensure you make an informed decision.
3. Seek Community Resources:
Utilize community resources and networks. Many communities offer support groups for single parents, which can provide valuable advice and emotional support.
4. Engage in Open Conversations:
Have open and honest conversations with your children about the changes and the reasons behind them. Encourage them to express their feelings and concerns. Listen actively and provide reassurance, emphasizing that these decisions are made in their best interest.
Conclusion
Adjusting to new financial realities and making changes to your children’s private school and travel sports can be daunting. By carefully evaluating your options, seeking financial aid, and communicating openly with your children, you can navigate these changes effectively. Prioritizing financial stability and emotional well-being will ultimately benefit your entire family, allowing you to build a secure and fulfilling future. Embrace this new chapter with confidence, knowing that your thoughtful decisions are paving the way for a balanced and prosperous life.
If you are a suddenly single woman and would like to discuss your finances, and life goals, or if you need assistance starting these conversations, visit homrichberg.com, email us at info@homrichberg.com, or call 404.264.1400.
Important Disclosures
This article may not be copied, reproduced, or distributed without Homrich Berg’s prior written consent.
All information is as of the date above unless otherwise disclosed. The information is provided for informational purposes only and should not be considered a recommendation to purchase or sell any financial instrument, product, or service sponsored by Homrich Berg or its affiliates or agents. The information does not represent legal, tax, accounting, or investment advice; recipients should consult their respective advisors regarding such matters. This material may not be suitable for all investors. Neither Homrich Berg nor any affiliates make any representation or warranty as to the accuracy or merit of this analysis for individual use. Information contained herein has been obtained from sources believed to be reliable but are not guaranteed. Investors are advised to consult with their investment professional about their specific financial needs and goals before making any investment decision.
©2024 Homrich Berg.
In the next video of this series, Tana Gildea breaks down if you must pay income tax if you sell your house.
Watch here: https://youtu.be/qjF36x8zTW4
President Lyndon B. Johnson (“LBJ”) was said to have left his home to his wife, “Lady Bird” Johnson, using a deed that granted the property to her immediately upon his death. LBJ likely understood that probate – the legal process of validating a will, appointing an executor, and distributing one’s estate – may sometimes be cumbersome, and he wanted to do his best to avoid the court process and streamline the transition of his home to his wife following his death. As of July 1, Georgia’s new law permitting this type of real estate transfer via “Lady Bird Deed,” took effect[1].
A Lady Bird Deed (also known as a transfer-on-death or enhanced life estate deed) seeks to transfer ownership of the real property to the individual(s) designated by the owner (the “remainder beneficiaries”) upon the owner’s death. As long as the owner is alive, he or she retains total control over the property and may sell it, mortgage the property, or even revise the deed to change or eliminate the remainder beneficiaries. Once the owner dies, the property may pass outside of probate, directly to the remainder beneficiaries named on the deed.
To create a transfer-on-death-deed, the owner(s) must sign a deed designating remainder beneficiaries to receive the property upon the owner’s death[2]. This deed must be recorded with the Superior Court in the county where the property is located. The remainder beneficiaries do not need to sign anything, as their interest in the property will not actually exist until after the property owner’s death.
To revoke a transfer-on-death deed, no notification of the remainder beneficiaries is required. An owner may simply sign a new deed revoking the initial beneficiary designation and designating different remainder beneficiaries or may sign and record an instrument with the Superior Court of the county where the property is located revoking the beneficiary designation[3].
Just as a provision in your last will and testament will not revoke a transfer-on-death designation on an account, it will not supersede the beneficiary designation on a Lady Bird deed; the terms of the deed shall control who should receive the property upon the owner’s death. There are, however, specific actions that must be taken by the remainder beneficiaries upon a property owner’s death to claim rightful title to the property:
(1) sign an affidavit affirming the death of the property owner, including a legal description of the property, and describing whether the beneficiary was the spouse of said property owner; and
(2) file the affidavit and a death certificate with the Superior court of the county where the property is located within nine months of the owner’s death.
Failing to follow this protocol within the specific period means that the property will revert to the deceased property owner’s estate[4].
As with most legal processes, the use of a Lady Bird deed is much more involved than this article addresses. While there may be a time and place for the use of a Lady Bird deed, a more carefully constructed estate plan may employ a revocable trust to convey real property following the owner’s death. Like the Lady Bird deed, the use of a revocable trust may allow for the avoidance of probate; however, certain advantages afforded by a revocable trust over a Lady Bird deed include: maintenance of the property owner’s transition wishes off of the public record, elimination of a specified timeline for a beneficiary to claim the property, elimination of the confusion that may arise for the property owner and family in the event a will and deed conflict, and the ability to specify alternate beneficiaries to receive the property in the event the primary remainder beneficiary dies prior to the property owner’s death.
Examining the titling of and beneficiary designations associated with your assets should be a regular part of your financial review, and now may be the time to discuss with your financial team whether your estate plan might benefit from this new form of deed, or if, for your family, this Lady Bird is for the birds.
If you have any questions or would like to discuss this further, please reach out to your client service team, call us at 404.264.1400, or visit us on the web at HomrichBerg.com.
Important Disclosures
This article may not be copied, reproduced, or distributed without Homrich Berg’s prior written consent.
All information is as of the date above unless otherwise disclosed. The information is provided for informational purposes only and should not be considered a recommendation to purchase or sell any financial instrument, product, or service sponsored by Homrich Berg or its affiliates or agents. The information does not represent legal, tax, accounting, or investment advice; recipients should consult their respective advisors regarding such matters. This material may not be suitable for all investors. Neither Homrich Berg, nor any affiliates, make any representation or warranty as to the accuracy or merit of this analysis for individual use. Information contained herein has been obtained from sources believed to be reliable but are not guaranteed. Investors are advised to consult with their investment professional about their specific financial needs and goals before making any investment decision.
©2024 Homrich Berg.
[1] O.C.G.A.§§44-17-1 through 44-17-7
[2] Deed requirements may be found at O.C.G.A.§ 44-17-3.
[3] See O.C.G.A. §44-17-4.
[4] See O.C.G.A. §44-17-2.
As we approach the scheduled sunset of certain tax laws on December 31, 2025, estate planning attorneys are devoting countless hours to discussing estate and gift tax laws with their clients. However, another, often-addressed but less-often-discussed tax, the Generation-Skipping Transfer Tax (“GST Tax”), is also due for a change. This tax is complicated, even for some estate attorneys, but it is important to understand the basics.
John D. Rockefeller is the name often associated with the GST Tax. The business magnate and his family were known for using sophisticated estate planning techniques, including the establishment of “dynastic trusts” designed to pass wealth to multiple generations without incurring estate taxes, thereby allowing numerous generations to avoid substantial estate tax liabilities. The federal GST Tax structure, as it exists today, was adopted in 1986, and was created to prevent families from bypassing estate taxes by “skipping” a generation of tax by transferring wealth directly to younger heirs.
The forty percent (40%) GST Tax is assessed on gifts or inheritances transferred to someone at least 37.5 years younger than the gift giver (the “Donor”), usually the Donor’s grandchildren, great-grandchildren, or trusts for their benefit.
Here are the three primary situations in which the tax applies:
Much like the estate and gift exemption for bequests and lifetime gifts, there is an exemption that allows Donors to give a certain amount of assets without incurring the GST Tax. In 2024, the estate, gift, and GST Tax exemptions are all the same: $13.61 million. Also like the gift tax, certain gifts are excluded from the GST Tax, including medical expenses paid directly to a grandchild’s medical provider, educational expenses paid directly to a grandchild’s school, and gifts given directly to a grandchild or to certain eligible trusts for grandchildren that are under the “annual exclusion” amount (currently $18,000 per donor, per recipient, per year). Ultimately, while this tax will only apply to the wealthiest of Americans, you do not have to be a Rockefeller for the tax to apply.
Here is a very simple example of how this works1:
The $13.61 million exemption is scheduled for an inflationary increase in 2025, and then, under the 2017 tax act commonly referred to as “The Tax Cuts and Jobs Act,” the exemption will essentially be halved on December 31, 2025, to an estimated $7 to $7.5 million per Donor. As a result, estate planners are busy assisting clients with planning to use exemptions before this 2025 deadline, as the IRS issued regulations confirming that individuals who use their exemptions before the sunset will not be adversely impacted in 2026 when the estate, gift, and GST Tax exemptions decrease. In other words, you can give away $13.61 million today, and when the exemption drops, the IRS will not seek any additional tax from you as a result of the change in the laws.
| 1To provide the simplest calculations possible, these examples address only the gift and GST Tax rates applied to the underlined amounts, without considering annual exclusions, additional gift tax due, etc. |
If you are like the overwhelming majority of Americans, reading these “basics” will make your head spin…so what do you really need to know? Whether or not the GST Tax will impact you depends on the size of your estate and your estate planning goals. If you are planning to leave a significant amount to your grandchildren or other younger beneficiaries, it is important to work with your financial advisor, CPA, and estate planning attorney to develop a strategy that minimizes taxes and maximizes the inheritance for your loved ones.
If you have any questions or would like to discuss this further, please reach out to your client service team, call us at 404.264.1400, or visit us on the web at HomrichBerg.com.
Important Disclosures
This article may not be copied, reproduced, or distributed without Homrich Berg’s prior written consent.
All information is as of the date above unless otherwise disclosed. The information is provided for informational purposes only and should not be considered a recommendation to purchase or sell any financial instrument, product, or service sponsored by Homrich Berg or its affiliates or agents. The information does not represent legal, tax, accounting, or investment advice; recipients should consult their respective advisors regarding such matters. This material may not be suitable for all investors. Neither Homrich Berg, nor any affiliates, make any representation or warranty as to the accuracy or merit of this analysis for individual use. Information contained herein has been obtained from sources believed to be reliable but are not guaranteed. Investors are advised to consult with their investment professional about their specific financial needs and goals before making any investment decision.
©2024 Homrich Berg.
Our continued commitment to growth has earned us #27 on Barron’s Advisor 2024 Top 100 RIA Firms, moving up from #35 on the list last year.
No compensation was provided to be included in this list. This list was announced on September 13, 2024. Please click here for more information on Barron’s methodology: https://www.barrons.com/advisor/articles/barrons-methodology-for-ranking-financial-advisors-c4831b04
The estate tax has existed since 1916, though its rules have changed over the years. The most recent update occurred in 2017 with the Tax Cuts and Jobs Act (“TCJA”). One key rule remains unchanged: U.S. spouses can transfer assets to each other without incurring gift or estate tax. However, there is a limit on how much an individual can give to non-spouse beneficiaries (an individual’s “exemption”) in excess of the annual exclusion (described below). This exemption currently stands at $13.61 million (per donor; not per recipient) and applies to both lifetime gifts and transfers made at death. For example, if you give $3.61 million to a trust for your son in 2024, your remaining exemption will be $10 million for future gifts or bequests.
Will You Be Affected?
You might think estate taxes won’t apply to you but remember: your “estate” includes everything you own—your home, investments, retirement accounts, and even life insurance. If you have, for example, a $1 million home, $3 million in investments, $1.5 million in retirement funds, and a $2.5 million life insurance policy, you could have a taxable estate by 2026.
Common Questions About Estate Tax Changes
I begin almost every gifting discussion with clients with a similar explanation of the estate and gift tax laws. These days, the questions I immediately receive are, “Do you think the exemption will actually decrease?” and “How do you think the election will affect these laws?”
Where We Were; Initial Standpoints On The TCJA
When the TCJA was passed, about half of estate experts proclaimed that there was no way the exemptions would ever sunset rationalizing that because the estate exemption had never in the 100-year history of the estate tax decreased, there is no possible way it would now. The other half of estate experts (including this author) thought a decrease would occur for a myriad of reasons; understanding that if the decrease does indeed occur, there’s nothing to preclude a subsequent increase.
Where We Are; How Politics Factor In
First, remember that the President of the United States is powerless to pass legislation alone, so we aren’t just waiting to see who the new President will be, but also the composition of the House and the Senate. The President’s signature, however, is the signature that signs a bill into law, and here is what we currently know about the two leading candidates’ positions:
Considerations For Planning
While we could weigh the significance of each apparent political position and its meaning, this exercise does not help you plan. The important question is: what action should you take now if your estate is sizable?
Annual Exclusion Gifts: In 2024, you can give up to $18,000 per person (or certain types of trusts) without using any of your exemption.
Medical and Educational Gifts: Payments made directly to healthcare providers or educational institutions on behalf of someone else do not count against your gift exemption.
Use Your Exemption Now: If you’re concerned about the exemption decrease, you might consider making large gifts now. The IRS has confirmed that no additional tax will be due on gifts made under current law, even if the exemption drops later.
Lastly, there’s charity. It doesn’t matter if your name is Trump, Harris, Swift, or Kelce, seemingly no one wants to harm charity, and it is difficult to imagine that any politician would change the laws in a way that inflicts gift or estate tax on charitable gifts. Unlimited amounts may be given to charity without any gift or estate tax. There are, however, better and worse ways to structure charitable gifts, so careful planning is key.
If there is even the slightest possibility that the estate and gift laws may affect you or your family, then now is the time to speak with your wealth advisor who may run relevant projections and work with you, your attorney, and your CPA to construct a giving plan that works to meet your tax goals and feels right for you and your family.
If you have any questions or would like to discuss this further, please reach out to your client service team, call us at 404.264.1400, or visit us on the web at HomrichBerg.com.
Important Disclosures
This article may not be copied, reproduced, or distributed without Homrich Berg’s prior written consent.
All information is as of the date above unless otherwise disclosed. The information is provided for informational purposes only and should not be considered a recommendation to purchase or sell any financial instrument, product, or service sponsored by Homrich Berg or its affiliates or agents. The information does not represent legal, tax, accounting, or investment advice; recipients should consult their respective advisors regarding such matters. This material may not be suitable for all investors. Neither Homrich Berg, nor any affiliates, make any representation or warranty as to the accuracy or merit of this analysis for individual use. Information contained herein has been obtained from sources believed to be reliable but are not guaranteed. Investors are advised to consult with their investment professional about their specific financial needs and goals before making any investment decision.
©2024 Homrich Berg.
With the Federal Reserve set to cut rates this month, the only question appears to be whether there will be a quarter or a half of one percent rate cut. As the markets are pricing in up to four or five cuts by January, an additional quarter of one percent this month may not make a big difference for the economy right now. However, investors may perceive a larger cut as a signal that the Fed believes the economy is slowing faster than projected and that it may need to move quicker in future rate cuts. In this short video, Ross Bramwell will discuss how market leadership has shifted since July due to interest rate expectations and what that could mean for the markets going forward.
Watch here: https://youtu.be/NBN3XLp7bhs
Starting your own business as a newly single woman can be both empowering and challenging. It represents a fresh start and an opportunity to shape your professional journey on your terms. Here are key considerations and steps to guide you through this exciting venture.
Assess Your Skills and Interests
Begin by evaluating your current skills and interests. Reflect on what you enjoy doing and where your strengths lie. This self-assessment will help you identify potential business ideas that align with your passions and expertise. Resources like LinkedIn Learning and Coursera offer courses to help you enhance your skills or learn new ones relevant to your business goals.
Develop a Solid Business Plan
A well-thought-out business plan is essential for any startup. It should outline your business idea, target market, competitive analysis, marketing strategies, and financial projections. Consider using the SMART criteria (Specific, Measurable, Achievable, Relevant, Time-bound) to set your business objectives. This plan will not only guide your business development but also attract potential investors or secure loans.
Legal and Financial Setup
Establishing a legal structure for your business is crucial. Decide whether to register as a sole proprietorship, partnership, LLC, or corporation. Each structure has different legal and tax implications, so it’s wise to consult with a legal advisor or CPA to make the best choice for your situation.
Secure Funding
Determine how much capital you need to start and sustain your business until it becomes profitable. Explore various funding options such as personal savings, loans, grants, or investors. The Small Business Administration (SBA) provides resources and support for new entrepreneurs, including information on loans and grants.
Build Your Support Team
Surround yourself with a team of advisors who can provide guidance and support. This might include a business mentor, financial advisor, attorney, and accountant. These professionals can help you navigate legal requirements, manage finances, and make informed decisions. HB maintains relationships with a broad range of outside advisors, and we can help you identify the ones that are a good fit for your business.
Develop Your Brand and Marketing Strategy
Creating a strong brand identity and marketing strategy is essential for attracting customers. Your brand should reflect your business values and connect with your target audience. Utilize social media, a professional website, and other marketing tools to promote your business. Engaging content, consistent branding, and effective communication will help establish your presence in the market.
Network and Build Relationships
Networking is vital for business growth. Attend industry events, join professional groups on LinkedIn, and engage with forums related to your field. Building a strong professional network can open doors to new opportunities, partnerships, and customers. Don’t hesitate to seek mentorship from experienced entrepreneurs who can offer valuable insights and advice.
Manage Your Finances Weekly
Effective financial management is crucial for the success of your business. Develop a budget, monitor cash flow, and keep accurate financial records. Understanding your financial position will help you make informed decisions and ensure the sustainability of your business. Consider using financial management tools and software to simplify these tasks.
Believe in Yourself
Finally, believe in your ability to succeed. Embrace this new chapter with confidence and determination. Remember that setbacks are part of the journey, and each challenge presents an opportunity to learn and grow. Surround yourself with positive influences and stay focused on your goals.
Conclusion
Starting your own business as a newly single woman is a courageous step toward financial independence and personal fulfillment. With careful planning, support, and perseverance, you can build a successful business and create a bright future for yourself.
If you are a suddenly single woman and would like to discuss your finances, and life goals, or if you need assistance starting these conversations, visit homrichberg.com, email us at info@homrichberg.com, or call 404.264.1400.
Important Disclosures
This article may not be copied, reproduced, or distributed without Homrich Berg’s prior written consent.
All information is as of the date above unless otherwise disclosed. The information is provided for informational purposes only and should not be considered a recommendation to purchase or sell any financial instrument, product, or service sponsored by Homrich Berg or its affiliates or agents. The information does not represent legal, tax, accounting, or investment advice; recipients should consult their respective advisors regarding such matters. This material may not be suitable for all investors. Neither Homrich Berg nor any affiliates make any representation or warranty as to the accuracy or merit of this analysis for individual use. Information contained herein has been obtained from sources believed to be reliable but are not guaranteed. Investors are advised to consult with their investment professional about their specific financial needs and goals before making any investment decision.
©2024 Homrich Berg.
Did you watch the Olympics? Sadly, I did not see nearly as much as I would have liked, but I popped in here and there. The level of discipline, dedication, single-mindedness, and commitment these athletes have is so incredible! Think of the sprinters who train and train for years and get under a minute or two to perform. Years of commitment and sacrifice for two minutes on the track. A split-second might mean a medal or an “also-ran.”
That is a crazy level of dedication for a brief shining moment. I know there are other events during the year, but the input seems much greater than the results on the other side. Yet they do it. Hundreds of athletes, thousands really when you consider all of those who came up a bit short in their quests to make Olympic teams around the world, give their all, pour everything they have into one single goal.
What if we could do just a hundredth of what they do? What if we could sacrifice just a bit more for the goals that are important to us? What if we could stay focused on one important financial goal and not allow ourselves to be distracted by lots of other competing goals? We might just be financial champions in our own little game of life.
I’ve seen athletes talking about making comebacks from injury or setbacks – “it’s all I think about” is generally the comment. What if paying off that nagging debt was “all we thought about.” It’s not quite as fun as imagining ourselves on the podium getting a gold medal, but it will give the same sense of accomplishment! Sadly, there are no cheering fans, no endorsements or interviews for us non-athletes who are striving for our personal goals, but that doesn’t make them any less important.
So, let’s use that Olympic spirit to create and focus on our own financial goals. Let’s apply that Olympic discipline, perseverance, and single-minded stubbornness to defeating debt or going after that promotion, building that 401k balance, or starting that business. It’s never fun in the trenches, not for athletes during the workouts and drills, and not for us making sacrifices and saying no to things we’d like to do, but the pay-off can bring gold to both.
Here is to your financial success!
To learn more or get help planning your financial goals, please email me at gildea@homrichberg.com.
Homrich Berg is proud to be named #6 of Atlanta’s 25 Largest Money Managers by the Atlanta Business Chronicle! To learn more and read about the methodology, click here: https://www.bizjournals.com/atlanta/subscriber-only/2024/08/16/atlantas-25-largest-money-managers.html
No compensation was provided to be included in this list.
Homrich Berg is proud to be named #5 of Atlanta’s 20 Largest Financial Planning and Advisory Firms by the Atlanta Business Chronicle! To learn more and read about the methodology, click here: https://www.bizjournals.com/atlanta/subscriber-only/2024/08/16/atlantas-25-largest-financial-planning-and-advisory-firms.html
No compensation was provided to be included in this list.