Make sure you are comfortable with your attorney and that they can explain the legal lingo to you if you do not understand it. Any attorney who cannot or will not take the time to answer your questions clearly and accurately is not to be trusted.
Tag Archives: Legal advice
Estate Planning
Estate planning is for everyone. While most people do not like to think about death, it is a reality and typically unplanned. It is a lot easier on everyone, especially if you have a spouse, children and/or any relatives, if you draw up your own will and testament. I have been posted lots of information on estate planning, they should answer most of your questions. When you are ready to plan your estate give me a call and we will get started.
Remember, Honest is the best Policy
Remember, honest is the best policy and your counsel can only prepare for any circumstance if she knows all of the facts. Normally, surprises are going to harm your case not help it. Your attorney is there to assist you, so divulge all information pertaining to the situation. Your attorney may ask you questions that you do not think are relevant or that you might think are personal, but remember, they are there to ensure that you have the best outcome.
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In The News
Basics of a 1031
I have been working on 1031 exchanges for many years. Here are the basics of a 1031-
The key advantage of a Section 1031 exchange is the ability to sell a property without paying any capital gain tax, or depreciation recapture at closing, which allows the earning power of the deferred taxes to work for the benefit of the investor.
Although Section 1031 refers to “an exchange of property”, it does not require a simultaneous “swap” of properties. A Qualified Intermediary “QI” is an entity who enters into a written agreement with the taxpayer (“exchanger”) to acquire the exchanger’s rights and/or ownership interest in the property the exchanger is selling (“relinquished property”), and transfer such ownership interest into one or more properties of “like-kind” that the exchanger chooses to buy (“replacement property”). A QI is required by tax law and provides a safe harbor for the taxpayer (exchanger). I use Custom 1031 in Spokane as the QI for almost all 1031 exchanges that go through my office.
In other words, the intermediary is “assigned in” as the seller of the property during the closing process. It is the assignment that allows the seller to become an exchanger and, essentially convert an otherwise taxable sale and subsequent purchase of investment real estate into a tax-deferred exchange.
Because the intermediary is technically the seller who receives the sale proceeds, it prevents the exchanger from being in “actual or constructive receipt” of the proceeds; thus, there is nothing to tax.
This Post will be Continued tomorrow.
Ongoing Issue
President of Advising Generations
I had the opportunity to meet with Dave Spetch, who is an advisor for generation based family businesses and President of Advising Generations, LLC. Dave has moved to the Columbia Basin and is a great asset for those family based businesses that need extra help in planning beyond the attorney and CPA. Dave has been published in Successful Farming magazine and has spoken at the NCBA meeting. For more on Dave go to davespecht.com
2012 census
Most people know that the 2012 census is out, here are some of the fun facts according to the Washington State Dairy Federation: 2012 Census of Agriculture
The below is a first glance analysis of some of the key data points for Washington state. In WA, land in farms declined by 224,000 acres to 14,748,120 acres, a decline of 1.5% from 2007. … The average WA farm size grew by 15 acres to 396 acres. WA farm numbers show a 5% decline since 2007, down 2,035 to 37,249 in 2012. The number of 1-9 acre WA farms increased 14% to 10,559 and now makes up nearly 30% of all farms.
Farms 10 to over 1000 acres all saw declines. WA farms in the 500-999 acre category saw the biggest decline (down almost 13%) to 1,508 farms. The market value of WA agricultural products sold grew by nearly 35% to over $9 billion.
WA farms in the economic class of $1,000,000 or more grew by 344 farms, the only increase in economic class numbers. WA farming as a primary occupation declined by 2%
WA farmers under 25 grew by nearly 25% to 181. This age category makes up half a percent of all farmers in WA. WA farmers 25-64 all saw declines, while farmers 65 and older grew.
WA Latino origin famers saw an increase of 14% to 1,874 farmers. This demographic now represents 5% of all farmers, up from 4% in 2007.
The average age of WA farmers increased from 57 in 2007 to 58.8 in 2012.
The below is a first glance analysis of some of the key data points for Washington state. In WA, land in farms declined by 224,000 acres to 14,748,120 acres, a decline of 1.5% from 2007. … The average WA farm size grew by 15 acres to 396 acres. WA farm numbers show a 5% decline since 2007, down 2,035 to 37,249 in 2012. The number of 1-9 acre WA farms increased 14% to 10,559 and now makes up nearly 30% of all farms.
Farms 10 to over 1000 acres all saw declines. WA farms in the 500-999 acre category saw the biggest decline (down almost 13%) to 1,508 farms. The market value of WA agricultural products sold grew by nearly 35% to over $9 billion.
WA farms in the economic class of $1,000,000 or more grew by 344 farms, the only increase in economic class numbers. WA farming as a primary occupation declined by 2%
WA farmers under 25 grew by nearly 25% to 181. This age category makes up half a percent of all farmers in WA. WA farmers 25-64 all saw declines, while farmers 65 and older grew.
WA Latino origin famers saw an increase of 14% to 1,874 farmers. This demographic now represents 5% of all farmers, up from 4% in 2007.
The average age of WA farmers increased from 57 in 2007 to 58.8 in 2012.
Wills and Estate Planning
Estate planning is for everyone. While most people do not like to think about death, it is a reality and typically unplanned. It is a lot easier on everyone, especially if you have a spouse, children and/or any relatives, if you draw up your own will and testament. I have been posted lots of information on estate planning, they should answer most of your questions. When you are ready to plan your estate give me a call and we will get started.
Toni Meacham Attorney At Law 