PLEASE DON'T BE FOOLED

Recently I have had at least 3 clients call me with questions about a document they received in the mail or email. They LOOK official, they look and sound like you had better do something about this NOW, or else! PLEASE DO NOT BE FOOLED. Here are some that I have seen or clients have told me about recently:

CORPORATE (MINUTES) REMINDER. This phony mailing is designed to look like an official document from the CA Secretary of State, however it is a TRICK! If you actually read it, the document admits that it is a solicitation and not an official document. The sender is counting on you NOT to actually read it, but just sen them a check. REMEMBER if you have a corporation you DO have to do minutes and file certain forms each year, BUT don't be fooled by these trick mailings. Call your attorney - Get it done right!

AUTOMOBILE WARRANTY - I have gotten these in the mail and have been BOMBARDED by telephone solicitations. The official looking document or so-called courtesy phone call claims, "Your automobile warranty is about to expire, take action now or loose your coverage." Again, don't be fooled. I have NO warranty left on my cars and still get these fakes calling me. Call your dealer or bank if you want to know the status of your warranty and if renewal is available, but be smart, don't over pay.

EMAIL SCAMS - I am sure everyone has received an email from someone claiming to have the right to millions of dollars that they will be happy to share with you, if you will just help them to get the money from some government or bank or insurance company. The end result is always the same... they get your bank information and then you find out that your bank account has been stripped clean. Don't be fooled, almost all of these guys are sending emails from little internet cafe's in Nigeria by unemployed men. The FBI has a special website to explain more about this scam.

Trust Administration Help

I have just developed a NEW Trust Administration Notebook for surviving trustees and successor trustees when one or both trustees have passed away or have become unable to handle their own finances. This resource manual has specific information about the trust you are administering, checklists, investment guidelines, duty chart, "how to" guide for accountings, samples, forms, etc. IF you are administering a trust that has become irrevocable, this guide will be of great value to you to help keep you out of "trouble" by giving you the specific information and assistance you need to administer your trust successfully. Call me at 760-930-9668 for more information.

IRAs - Who should be the Beneficiary?

IRA Beneficiaries: The IRS is at it again making things difficult for people who want to name their trust as a beneficiary. Although it is ALLOWED to name a trust as a beneficiary, using the language that I have supplied to you in the past, the IRS seems to be taking the position in recent letter rulings, that if you do, the Minimum Required Distributions will be based upon the age of the OLDEST beneficiary. If you have a large sum in IRAs, you should review this with your tax adviser before naming or keeping the Trust as the beneficiary.

Property Transfer at Death

PROP 13: Upon death of the last Grantor to die, if real property will be transferred to a child or grandchild, it is necessary to file for a property tax re-assessment exclusion. Failure to do so could result in a substantial increase in property taxes. Ask your attorney for more information or contact the county tax assessor for forms and information.

CA Property Transfers to Grandchildren

Propositions 58 & 1931. These constitutional initiatives provide property tax relief for real property transfers between parents and children and from grandparents to grandchildren. In general, Proposition 58 states that real property transfers, from parent to child or child to parent, may be excluded from reassessment. Proposition 193 expands this tax relief to include transfers from grandparent(s) to grandchild(ren). In both cases, a claim must be filed within three years of the date of transfer to receive the full benefit of the exclusion. To take advantage of this you MUST file a “Claim for Reassessment Exclusion” available from the County Tax Assessor.