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Death And Taxes – Two Certainties Of Life

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Death And Taxes – Two Certainties Of Life

There are no estate taxes or succession duties in Canada. However, taxes upon death have not disappeared. When a person dies, there is a ‘deemed disposition’ of all capital property. What does that mean? It means that the government treats all your property (unless jointly held) such stocks, bonds, RRSPs, real estate, etc as sold at fair market value on the day of your death. Your estate will be required to pay capital gains tax on that property. This applies to your RRSP if you do not have a spouse to whom you can transfer it. Careful planning can reduce or defer the taxes owing. Without an estate plan, you could lose nearly half of the value of your gains to taxes. While your Executor may claim full personal exemptions on your final income tax return, your estate may end up paying taxes at the highest tax rate (over 50%). If you do not have a Will, or if your Will has not been updated recently, it may be a good time to get the job done to avoid tax complications. What is Probate? “Probate” is the recognition by the provincial court of the validity of your Will and the appointment of the person named as your Executor. Granting of the “letters probate” is notice to the public that your Will complies with the basic formal requirements and that the Will was not being challenged at the time of application. Reducing Probate Fees In some provinces, the Executor must apply to the court for “letters probate” in order to begin administering an estate. These fees are payable to the provincial government based on the value of certain assets in your estate. There have been increases over the years in provincial probate fees. There are ways to arrange your affairs to reduce these probate fees. Again, estate planning helps identify these issues and reduce any negative impact on your estate. It sounds complicated! Estate planning need not be complicated or expensive. First, who knows better than you what you want done with the things that you’ve worked all your life to build. Second, seek the professional advice of an expert to guide you on the financial and legal implications to ensure that you get the most favourable tax treatment possible. If you do not have a Will, or if your Will has not been updated recently, perhaps it is time to meet with a lawyer and get the job done. G Brent Powers Law Office 3715 Beck Rd D-401 St Joseph, MO 64506 Medicaid Asset Protection Planning in St. Joseph Mo

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7 Common Mistakes of Estate Planning

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7 Common Mistakes of Estate Planning

Even though planning your estate isn’t an enjoyable job it’s necessary so that you can efficiently and successfully transfer all of your assets to those you leave behind.  With a bit of careful planning, your heirs can avoid having to pay estate taxes and federal taxes on your assets. As well, a well planned estate avoids confusion for your loved ones.   Still, with all the advantages of estate planning, many people make a great many mistakes in the process.  The most common mistake when it comes to estate planning is not getting around to doing it at all. Make sure that you take the time to plan at least the financial portion of your estate so that you leave your loved ones behind with some amount of security. The following seven mistakes often put families into great difficulty after a loved one’s passing.   Don’t fall into the trap of thinking that estate planning is just for the rich.  This is completely false as planning your estate is essential for anyone who has any amount of assets to leave behind.  Many people don’t realize that their estate is as large as it really is, especially when they fail to take into account the assets from their home.   Remember to update your will and to review it at least once every two years.  Factors that can change information about your beneficiaries include deaths, divorce, birth, and adoption.  As your family structure changes so does the change in your assets and who you want to leave them to.   Don’t assume that taxes paid on your assets are set in stone.  Talk to your financial planner about ways that your beneficiaries can avoid paying taxes on your assets.  There are several strategies for tax planning so that you can minimize taxes or avoid them altogether.   All of your financial papers should be in order so that it’s easy for someone to find them.  Make sure that one of your loved ones has information on where to find the papers necessary for planning after your death.   Don’t leave everything to your partner.  When you leave all of your assets to your spouse you are in reality sacrificing their portion of the benefit.  You’ll get an estate tax credit but will forfeit part of this if your spouse is your only beneficiary.   Ensure that your children are well planned for.  Many people take a lot of time deciding what to do with their assets and forget that they need to appoint guardianship for their children.  There are many details to take into consideration when it comes to guardianship.  If you don’t have a financial advisor, get one. Financial Planners and Advisors are trained intimately in these matters and can provide asset protection well above whatever fees they may charge. If you need help selecting the right financial advisor, get the Financial Advisor Report. The above mistakes are common when people are planning their estate.  Take the time to plan…

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Estate Planning For Your Elderly Parents

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Estate Planning For Your Elderly Parents

Many people will go out of their way to avoid talking about illness, death, and money where their aging parents are concerned. The reality is we all get older and eventually need help from others. The more prepared you are today, the easier it will be for everyone down the road. If you haven’t had these discussions with your parents it may be time to start laying the groundwork. What Important Estate Planning Documents Are Needed? A Will – Decisions regarding your assets, how your estate will be managed, custody and care of minor children are some of the terms that need to be mapped out. Do-it-yourself kits are available, but if trusts, complex estates, or large amounts of money are involved, use a lawyer to draw up the Will. Medical Care Documents – You need to appoint someone who you want to make decisions if your unable to do so. Similarly a Living Will tells doctors your wishes regarding which medical or life support procedures, you do or don’t want. How Do I Start This Estate Planning? It’s a good idea to know where your parents keep important documents. You will need to know locations for financial information, medical and life insurance policies, contact information for doctors, lawyers, and financial advisors, funeral and burial plans, real estate estate deeds, birth certificates, marriage licenses, and social security or social insurance cards. Help The Estate Planning Along Your goal should be helping your parents as much as they need and want to be helped. It can get very tricky if you overstep the boundaries – you don’t want to take away their sense of independence and hurt their dignity. As always, you’ll want to approach them with respect. And, be sensitive to their concerns and try to put yourself in their shoes – after all, you will be there someday. Checking Your Own Estate Planning Equally important as having these conversations with your parents, is doing your own estate planning and documenting your own financial and medical care preferences. Make sure that when the time comes that you are prepared for a smooth transition of your legacy, which you have prepared through your estate planning . G Brent Powers Law Office 3715 Beck Rd D-401 St Joseph, MO 64506 Medicaid Asset Protection Planning in St. Joseph Mo  

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Personal Financial Planning

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Personal Financial Planning

Five must-ask questions (NC)-Beware of estate planners charging little or nothing to draft your estate plan. They are likely earning a commission on the investment products they recommend – which could compromise the objectivity of their advice. And note that competent estate planners should offer a holistic approach to estate planning. That is, an objective and skillful adviser provides more than investment strategies or financial planning advice. When looking for the right estate planning adviser, consider these key questions: What is your previous estate planning experience and have you worked with clients like me? Do you have in-depth knowledge of relevant legislation such as income tax law, provincial family law and probate acts? How do you set your fees? Do you sell life insurance, mutual funds or other investment products? I would like to set time lines and how can you help me meet those deadlines? Can you refer me to other professionals, as needed, such as a lawyer or an accountant? For more information, visit www.GrantThornton.ca. Grant Thornton LLP is a leading Canadian firm of chartered accountants and management consultants.   G Brent Powers Law Office 3715 Beck Rd D-401 St Joseph, MO 64506 Medicaid Asset Protection Planning in St. Joseph Mo  

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The Basics Of Estate Planning

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The Basics Of Estate Planning

  Estate Planning may be a word that is encountered by many citizens especially the elderly. What is Estate Planning? What benefits does it provide to people?   Estate Planning is a method of arranging and considering alternatives that will satisfy specific wishes and goals to prepare for things that may happen to a person and the people he finds special to him. Estate Planning includes organizing properties and not just putting them in a simple Will. It also lessens the taxes and fees that may possibly be charged to these properties. Estate Planning also includes contingency preparation to ensure that ones wishes regarding health care and medications will be followed.   An estate plan may be described as good if it financially coordinates with the future of the home, business, investments, insurance and other benefits if ever the person becomes sick or will pass away. A good estate plan also sets directions to bring about personal wishes regarding health care in preparation for the when the person becomes disabled.   It is very important to identify the real definition of the term “estate” before someone can really perform estate planning. Estate means all the properties a person owns or has control of. This is regardless whether if the property is solely named after him or is in managed in a partnership. This may include real properties, accounts, bonds and stocks, cash, buildings and establishments, jewelry, collections, all types of businesses and even retirement benefits.   Typically, those who really need to have an estate plan are parents who have minor children, people who have valuable properties and have sentimental values for them, and also people who are concerned about their medications and health care. However, people can still acquire an estate plan whether they have these categories or not. As long as they have all the things that are covered by an estate plan, then they can avail of it. While a person is alive, it is important to prepare an estate plan and at the same time implement it. This is the perfect time for a person to perform and have legal capacity to come up with a contract. There may be challenges that could occur if an estate plan is implemented when a person is already disabled. Others may judge the lack of capacity and the person may be prone to fraud, abuse and coercion. Estate Plans may include wills, power of attorney for health care, living wills, living trusts and limited partnerships. When entering into a contract, it is very important to make use of the services of a lawyer. Lawyers are the only certified people who practice these fields. They are also the only ones who can supply a person with all the legal requirements and advice needed in the estate plan. An attorney will be able to answer legal questions regarding the estate and they will also be able prepare the person on the cost of the estate plan and other finances the come…

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Nodaway Valley Bank’s Look at the Last 150 Years

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Nodaway Valley Bank’s Look at the Last 150 Years

Nodaway Valley Bank’s Look at the Last 150 Years Although the actual date is not until December, Nodaway Valley Bank will be celebrating the 150th anniversary throughout 2018.   On December 4, 1868, Maryville’s first bank, known as the George S. Baker & Co., Bankers, opened its doors for business on the site of the present bank on the southwest corner of Maryville’s town square at 3rd & Main Streets.   In 1873, James B. Prather, J. C. Waterman and Theodore L. Robinson acquired controlling interest in the bank and changed the name to Nodaway Valley Bank.  Mr. Robinson was placed in charge of day to day operations, and a member of Robinson family has been at the helm since then, with Chairman of the Board James G. Robinson representing the fifth generation. Theodore L. Robinson was an 11 year old orphan living with his grandparents when they moved to Buchanan County in 1844.  Because his grandfather was unable to work their farm, young Robinson went to work at the Mansion House in St. Joseph where his industriousness caught the attention of one of the borders, pioneer merchant John Curd, who offered young Robinson a job in his dry goods store and the opportunity to attend school.   After his plans to cash in on the Gold Rush failed, Robinson reentered employment with Curd who sent him to Maryville in 1857 to set up and manage a general store.  Robinson eventually bought the store and opened a lumber yard. He sold both business in order to buy an interest in the bank. During the for the first 26 years of its existence, Nodaway Valley Bank operated as a private bank until applying for a state banking charter in 1894, now the fifth oldest bank charter in the State of Missouri.  The bank joined the newly formed Federal Deposit Insurance Corporation in 1934. Although it was a relatively small bank for many years, Nodaway Valley Bank was progressively managed, being one of the first bank in the area to employ an agricultural advisor.  The bank is one of the largest agricultural lenders in the region with eight experienced agricultural lenders, several of whom farm as well. Nodaway Valley Bank has weathered several economic downturns over the course of 150 years.  According to Chairman Emeritus Theodore G. Robinson, the bank experienced growth during more recent agricultural downturns.  Instead of acquiring troubled competing banks, Nodaway Valley Bank picked up dislocated customers from those banks which were unable to continue lending.   “Nodaway Valley Bank has always focused on customer relationships,” Robinson said, “and in some cases, we would have never otherwise had the opportunity to acquire that business.  It has allowed us to grow with our customers.” As a unit bank, state banking regulations prohibited Nodaway Valley Bank from expanding beyond Nodaway County until 1990, when the bank opened a branch in Savannah, followed expansion into the St. Joseph market in 1995, when the bank built a new 9,300 square foot building at the…

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Nodaway Valley Bank | Celebrating 150 Years

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Nodaway Valley Bank | Celebrating 150 Years

Nodaway Valley Bank | Celebrating 150 Years After a century and a half, Nodaway Valley Bank has become a household name in Northwest Missouri. Known by customers for mutual respect, fairness, and exemplary customer service, NVB has withstood the test of time by living up to  the founder’s motto of “Safety & Dependability.” Before the Wright brothers first flight, the first man on the moon, and the first pair of blue jeans, the bank was established as George S. Baker and Company. The original location opened its doors at the current Maryville location in 1868. The bank would soon become known as Nodaway Valley Bank, when bought by James B. Prather and Theodore L. Robison in 1873. To this day, the Robison family continues to lead this progressive financial institution. Nodaway Valley Bank—the original hometown bank—has survived many ups and downs. Through the Great Depression, two World Wars, floods and droughts, believing that what is good for their customer and what is good for the bank is one in the same. As we celebrate this milestone, we look to the future with hope and confidence. A bank with family values! We have been locally owned and managed since 1868. NVB has been serving the needs of Northwest Missouri’s citizens for a century and a half. Click Here for Place to Find Home Loans in Saint Joseph MO

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Nodaway Valley Bank Observes 150th Anniversary in 2018

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Nodaway Valley Bank Observes 150th Anniversary in 2018

Nodaway Valley Bank Observes 150th Anniversary in 2018 Although the actual date is not until December, Nodaway Valley Bank will be celebrating the 150th anniversary throughout 2018.  On December 4, 1868, Maryville’s first bank, known as the George S. Baker & Co., Bankers, opened its doors for business on the site of the present bank on the southwest corner of Maryville’s town square at 3rd & Main Streets.   In 1873, James B. Prather, J. C. Waterman and Theodore L. Robinson acquired controlling interest in the bank and changed the name to Nodaway Valley Bank.  Mr. Robinson was placed in charge of day to day operations, and a member of Robinson family has been at the helm since, with Chairman of the Board James G. Robinson representing the fifth generation. During the first 26 years of its existence Nodaway Valley Bank operated as a private bank until applying for a state banking charter in 1894, now the fifth oldest bank charter in the State of Missouri.  The bank joined the newly formed Federal Deposit Insurance Corporation in 1934. Highly restrictive banking regulations and competing interests in the tightly built business district around the Maryville town square prohibited expansion beyond the second building on the site, erected in 1890.  As drive-up banking became more popular, regulations were relaxed allowing Nodaway Valley Bank to construct the first stand-alone motor bank at 2nd and Buchanan Streets in 1965.   The second banking house on the original site was replaced by a larger, modern building in 1966.  That structure was totally renovated and expanded again in 2000 as the present banking house. By 1971, the bank’s resources topped $15 million.  State banking laws were further relaxed that year, allowing construction of branch facilities within 2.25 miles of the main banking house.  Nodaway Valley opened a second facility at 1303 S. Main in 1973, which underwent a total makeover last year. Nodaway Valley Bank was also the first bank in Nodaway County to offer ATM service.             Although banking regulations prohibited the bank from expanding beyond Nodaway County, Nodaway Valley Bank’s resources topped $166 million by 1990.  Nodaway Valley Bank took advantage of new rules allowing additional facilities in contiguous counties by opening a facility in Savannah, followed by expansion into the St. Joseph market in 1995. During the next five years, the bank’s resources increased to $350 million.   In response to customers having to take more financial responsibility for their retirement, Nodaway Valley Investment Services was formed in 2002 to provide comprehensive financial planning and brokerage services.  In 2003, the bank opened a new facility at Riverside Road and Mitchell Avenue in St. Joseph and acquired Heritage Bank, creating the largest privately owned and managed bank in northwest Missouri with assets in excess of $541 million.   In 2006, the bank completed construction of two new facilities in Savannah and Belt & Faraon in  St. Joseph. In 2007, the Exchange Bank of Mound City was acquired, providing nine full service locations in four…

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Credit Management

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Credit Management

Credit Management Get Your Free Credit Report The Fair Credit Reporting Act guarantees you FREE access to your credit report once every 12 months from each of the three nationwide credit reporting companies – Experian, Equifax, and TransUnion. Although there are many TV ads, email offers, and online search results that may tout “free” credit reports, there is only one authorized source for a truly free credit report. (Source: United States Federal Trade Commission, ftc.gov) AnnualCreditReport.com is the ONLY authorized source for the free annual credit report that is yours by law It provides access to all the information in your credit file It also maintains a record of everyone who has checked your credit report (lenders, insurance providers, etc.) It’s a great way to identify areas of improvement, discover errors, and detect fraud This report does not include your credit score For more information or to request your free report, visit AnnualCreditReport.com Why does credit matter? There are a variety of reasons your credit history may be checked – applying for a loan, opening an account with your electric company, renting an apartment, applying for a job, and more! The purpose of checking your credit history is to gain an understanding of your behavior, including your financial behavior. You can learn more about credit by visiting Experian.com. A few things you’ll learn on this website are: The four elements of a credit report: identification, account history, public records (bankruptcy filings, court records of tax liens) and inquiries Find out what to do if you have not established a credit history Have a cosigner or authorized user added to the account Apply for a secured credit card, which requires users to put up cash as collateral How various life events impact your credit Marriage or Divorce Renting or Leasing Making a Large Purchase Financing a New Business How to prevent fraud and identity theft Improve your credit! No matter what your credit score currently is, there is always room for improvement. Although the necessary steps for improving your credit are easy, it does take time. So the sooner you start, the better off you will be! For more information visit smartcreditmatters.com, a website created by our NVB credit card provider. A few things you will learn on this site are: How credit scores are calculated Why non-credit companies look at your score How to improve your credit score Show creditors you are responsible by paying your bills on time, every time Building credit happens by using credit (wisely) Never max out your cards Pay more than just the minimum due on your card Wait to apply for additional cards if you’ve recently opened one Errors & fraud happen – catch it early by monitoring your credit report What to do if your identity (personal information) is stolen A bank with family values! We have been locally owned and managed since 1868. NVB has been serving the needs of northwest Missouri’s citizens for a century and a half. Click Here for…

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Protect Against Scams

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Protect Against Scams

Protect Against Scams Text Scams Watch for text messages that appear to be from a bank or other financial institution. You do not have to be a customer for the scam to work. The text will ask you to verify your account by either following a link or calling a phone number. The intent is for you to provide some type of personal information that can be stolen, such as a debit/ATM card PIN. For more information, visit the Better Business Bureau’s Scam Stopper website bbb.org, where you will learn things like: Ignore instructions to text “STOP” or “NO” which confirms that your number is valid and active Forward the text to your cell phone carrier to block future texts from that number Call the bank or financial institution to verify the text is real Wire Scams Wire scams can include a variety of ploys to entice you to send money through a wire (this is the same as sending actual cash to a person). Wiring money is like giving cash, once it’s sent you cannot get it back. To protect yourself from falling prey to a wire scam, NEVER wire money to someone you don’t know, even if they claim the money is for a friend or relative that you do know. Learn more from the Federal Trade Commission by visiting consumer.gov. Scams may lead you to believe a variety of stories: You won the lottery but have to pay taxes first You inherited money but have to pay fees to receive the money A family member who is in trouble and needs you to send money You receive a check from the wrong amount and need to send the extra funds back If you believe you have fallen prey to a wire scam Call the Federal Trade Commission (FTC) Notify the FTC online at ftccomplaintassistant.gov A bank with family values! We have been locally owned and managed since 1868. NVB has been serving the needs of northwest Missouri’s citizens for a century and a half. Click Here to inquire about a Free Checking Account in St. Joseph MO

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