This document will provide a comprehensive overview of your assets, liabilities, accounts, legal documents and insurance policies to name a few.
Victoria DaltonIgnorance is bliss. When we are unaware of certain information, we can be lulled into a false sense of security-until something bad happens. A great example is the true story of the fishing boat Andrea Gail depicted in the movie The Perfect Storm. Far out into sea, the boat loses communication and travels into three raging weather fronts that unexpectedly collide to produce the greatest, fiercest storm in modern history.
When we are young and single, life is an adventure where we are willing to take chances. However, when we get married and start a family, we must think of our loved ones and plan accordingly. Organizing our finances and getting help can limit our exposure to life's unexpected storms.
Taking Inventory
Families come in all shapes and sizes. The same is true in how each family handles their finances. In our hectic lives, we sometimes lose track of where we are financially. Many times, there is one spouse who is responsible for the finances including paying all the bills. Further, with the advent of online banking and bill paying, our financial information can be sprinkled in many different locations.
In order to ensure your family has a strong financial foundation, it is imperative that a financial inventory packet is completed. This document will provide a comprehensive overview of all of your assets, liabilities, accounts, legal documents, and insurance policies including account numbers, addresses and passwords.
While filling out the inventory packet can be time consuming, it is well worth it, as it will provide peace of mind for both you and your family. Regardless of whether you utilize the services of an accountant or not, please make sure your spouse knows the location of your inventory packet.
Weather the Storm
The only constant in life is change. Many times you need help weathering the storm. Sometimes change will be gradual and other times it can happen in a blink of an eye. Death, divorce, new job, buying property, a new baby, starting or ending a business all involves tax implications. An accountant can help prepare you for changes you foresee as well as protect you from those unexpected changes.
Factors to Consider
There are many different reasons why you may want to hire an accountant. The more money you make, the greater likelihood of being audited by the IRS. If you own a business, are self-employed or have rental properties, an accountant can assist in finding ways to limit your tax exposure by depreciating business or real estate taxes.
Further, if you are considering selling real estate, an accountant can help you use a like-kind exchange to minimize your taxes on the gain of property that you are selling. Are you planning on putting money aside for your children's education? An accountant can help you decide your options for tax deferred or tax free savings.
Lastly, if you plan on making a large gift, an accountant can advise you of the tax advantages of using your retirement plan as a source of funds.
Till next time, God bless and keep smiling, where Your Legal Corner will discuss "Completing the Inventory Packet."
To receive your complimentary inventory packet this New Year, simply make your request by email.
Victoria M. Dalton is an attorney with the law offices of Hoffman DiMuzio. Send requests, questions, or comments to Victoria at vdalton@hoffmandimuzio.com. Or call 856-845-8243. Please note that Your Legal Corner was created to provide educational articles about the law and is not legal advice.
