As tax season unfolds, Microsoft Threat Intelligence sheds light on the latest targets and innovative tactics employed by cyber adversaries. With tax-related scams on the rise, understanding these emerging threats is crucial for organizations and individuals alike to fortify their defenses and protect sensitive financial information.
The report highlights the heightened activity of threat actors targeting tax professionals, businesses, and individual taxpayers through various malicious techniques, including phishing emails, ransomware attacks, and identity theft schemes. By leveraging sophisticated social engineering tactics and exploiting vulnerabilities in tax software and systems, cybercriminals aim to capitalize on the frenzy of tax filings to maximize their illicit gains.
In response to these evolving threats, Microsoft emphasizes the importance of adopting proactive security measures, such as multi-factor authentication, email filtering, and employee training, to mitigate the risk of falling victim to tax-related cybercrime. By staying vigilant and staying informed about the latest threat landscape, organizations and individuals can safeguard their financial assets and personal data during tax season and beyond.
Read the original article here.
The Section 27k Student Loan Repayment Program strives to increase the retention of teachers, including those in critical shortage areas, aligning with goal 7 of Michigan’s Top 10 Strategic Education Plan. A district or intermediate district that applies for funding under this section must use the funding to implement a student loan repayment program for its employees.
Learn more about the grant program in the Michigan Department of Education’s Student Loan Repayment Program web page and Frequently Asked Questions.
Applications opened February 29, 2024, and are due April 11, 2024.
Accounting issues
Is the grant taxable income to the employee?
The payment is provided as a “reimbursement.” Therefore, it would not be taxable and should not be included in box 1 of the employee’s W-2.
For educational reimbursements, amounts up to $5,250 are nontaxable. (Note: Must be under an Educational Assistance Program [EAP] – see below.) Any amounts that exceed $5,250 could be taxable unless other exemptions are met.
Education reimbursements fall into two sections of the Internal Revenue Code. The first, and the section we recommend using, is Section 127. Following is a summary of the requirements for the reimbursements to be nontaxable.
Under Section 127, the employer must pay such reimbursements under an Educational Assistance Program (EAP). EAPs may range in formality and length; however, specific criteria must be included in each EAP. The EAP must:
- Be a written document.
- Not provide eligible employees with a choice between educational assistance benefits and any other taxable compensation (whether cash or noncash)
- Provide eligible employees with reasonable notification of the availability of the terms of the program.
- Benefit employees in an employer-designated classification that does not discriminate in favor of highly compensated employees. Highly compensated employees, for purposes of this section, would include either of the following:
- Owned at least 5% of the employer’s stock in the preceding or current calendar year (would not apply to schools)
- Received compensation from the employer in the preceding year in excess of a specified amount denoted annually by the IRS.
The other section that relates to educational reimbursements is Section 132. Under Section 132, education reimbursements can exceed $5,250. Such reimbursements would be tuition payments under the fringe benefit program, which must qualify as a working condition benefit. However, unlike having an EAP under Section 127, a course-by-course analysis must apply to nontaxability under Section 132.
A working condition benefit under Section 132 is an employer-provided benefit that an employee could deduct on their tax return if they had paid the amount themselves. Educational expenses are deductible for an employee if they are directly related to the employee’s current job responsibilities. To be directly related, the expense must meet both of the following requirements:
- Maintains or improves skills required by the employer, including refresher courses and courses dealing with current developments in the employee’s profession.
- Meets the requirements of any applicable law or regulation or any expressed requirements imposed by the employer for bona fide business reasons as a condition to the employee’s continued employment, status or rate of compensation.
Courses that enable an employee to meet the minimum educational requirements for qualification in either the employee’s current field or a new field are not directly related to the employee’s current job responsibilities; therefore, payment or reimbursement for such courses is not nontaxable under Section 132.
How should the district issue the check?
How payments are issued is up to the district, but we recommend using the same method you would use for employee reimbursement. Typically, this would be through payroll. However, we realize situations may arise where accounts payable/vendor checks may be more efficient, such as when an employee has left the district before payment.
How should the payment be recorded?
The MDE’s 1022 Committee will issue guidance for recording Sec. 27k payments. Currently, we recommend the following:
Grant code: | 273 | (Section 27k) |
Expenditure object code: | 2390 | (Employee Benefits – Other Special Allowances) |
Revenue function code: | 312 | (Restricted – State Revenues) |
This is a restricted grant; therefore, expenditures should match the revenues recorded. Revenue information from the State will be released in July and August. We recommend accruing amounts anticipated in July and August at year-end (June 30). Reminder: Include the anticipated amount in year-end budget amendments for both revenue and expenditures.
New information will come out on this topic. Yeo & Yeo will provide an update as additional significant information becomes available from MDE.
Contact your Yeo & Yeo auditor or the Education Services Group with questions. We recommend that you contact legal counsel for additional advice.
When it comes to business structure, manufacturing company owners have a few choices. Among them are an S corporation and a limited liability company (LLC). They’re popular with manufacturers because of their combination of liability protection and tax benefits. Both forms have pros and cons, as well as some variations in tax consequences. Here’s an overview of these two business structures.
S corporation
Unlike in a C corporation, items of income and expenses are passed through to S corporation owners and reported on their individual income tax returns, similar to partners in a partnership. To qualify for S corporation status, the corporation must:
- Be a U.S. corporation,
- Have only eligible shareholders (including individuals and certain trusts and estates),
- Have no more than 100 shareholders, and
- Have only one class of stock.
An existing manufacturing company can switch to S corporation status by making an election by the 15th day of the third month of the tax year.
On the plus side, an S corporation:
Limits owners’ liability. Generally, S corporation shareholders can’t be held personally liable for debts of the company. Thus, creditors can’t come after their personal assets (except in limited instances).
Avoids double taxation (generally). A C corporation is subject to tax twice — once on income at the corporate level and again at the individual level when shareholders receive dividends. With an S corporation, income is generally taxable only at the individual level. In fact, an S corporation itself is exempt from federal income tax, though state tax treatment varies.
Provides tax-saving opportunities for owner-employees. An S corporation owner-employee can choose how much to receive as salary vs. income distributions from the corporation. Finding the right mix can save tax overall. Unlike salary, income distributions aren’t subject to payroll taxes. But the owner-employee must be paid a reasonable salary for services rendered. Otherwise, the IRS could reclassify distributions as salary, subject to payroll taxes, and also assess interest and penalties.
Eases ownership transfer. It’s generally easier to transfer S corporation shares than ownership in other business entities. It’s possible to do so without dire tax consequences even if the business is terminated. An S corporation also can survive the departure of its sole owner.
On the minus side, an S corporation:
Restricts ownership options. As outlined in the list above, the requirements under federal law are rigid. For example, depending on the situation, the limit on the number of shareholders or restriction to one class of stock may hamper operations. However, certain family members can be counted as a single shareholder.
Limits profit and loss allocations. An S corporation is required to allocate profits and losses among the owners based on the percentage of ownership or number of shares owned.
Is bound by state-based corporate formalities. S corporations are bound by the strict laws affecting corporations, imposed by the state. This means they must meet certain registration and regulatory obligations. Be aware that an S corporation must register to do business in other states outside of its home jurisdiction.
LLC
An LLC combines the liability protection of C corporations with the tax benefits of partnerships, but without some of the restrictions of S corporations. LLCs are authorized under state laws that vary around the country. (In fact, many states don’t restrict ownership.) LLC owners generally are referred to as “members.”
On the plus side, an LLC:
Reduces owners’ liability. As the name implies, the limited liability protection afforded to LLCs is a significant appeal to LLC members. Creditors generally can’t touch their personal assets. This benefit can’t be overemphasized. In fact, liability protection may be even greater for LLCs than S corporations under prevailing state laws.
Is taxed as a partnership. Unless an LLC elects otherwise, it’s typically taxed as a partnership. As a result, it avoids double taxation. An LLC owner may not even have to file a tax return for the LLC. However, a return is required if the LLC has more than one member.
Provides for profit and loss allocation. An LLC member may be entitled to receive a disproportionate share of income and expenses. Unlike an S corporation, the allocation doesn’t have to be based strictly on ownership percentages.
Offers ownership flexibility. There’s no limit on the number of members. Also, ownership is available to corporate and foreign entities.
On the minus side, an LLC:
May put owner-employees at a tax disadvantage. Generally, all business income that flows through to LLC owner-employees is subject to self-employment tax — even if it isn’t distributed to the owner-employee.
Can cause ownership transfer problems. It’s often more difficult to transfer ownership of an LLC than it is to transfer S corporation ownership. Unlike corporations, there are no shares of stock. Typically, all members must approve new members or changes in the ownership percentages of existing members. Also, a single-member LLC will automatically be terminated if the member exits the organization.
Weighing the pros and cons
Determining which form of ownership is right for your manufacturing company isn’t easy. There are many pros and cons to weigh before coming to a decision. We can provide the tax advice you need to help you make the right choice.
© 2024
Your business should generally maximize current year depreciation write-offs for newly acquired assets. Two federal tax breaks can be a big help in achieving this goal: first-year Section 179 depreciation deductions and first-year bonus depreciation deductions. These two deductions can potentially allow businesses to write off some or all of their qualifying asset expenses in Year 1. However, they’re moving targets due to annual inflation adjustments and tax law changes that phase out bonus depreciation. With that in mind, here’s how to coordinate these write-offs for optimal tax-saving results.
Sec. 179 deduction basics
Most tangible depreciable business assets — including equipment, computer hardware, vehicles (subject to limits), furniture, most software and fixtures — qualify for the first-year Sec. 179 deduction.
Depreciable real property generally doesn’t qualify unless it’s qualified improvement property (QIP). QIP means any improvement to an interior portion of a nonresidential building that’s placed in service after the date the building is placed in service — except for any expenditures attributable to the enlargement of the building, any elevator or escalator, or the internal structural framework. Sec. 179 deductions are also allowed for nonresidential building roofs, HVAC equipment, fire protection systems and security systems.
The inflation-adjusted maximum Sec. 179 deduction for tax years beginning in 2024 is $1.22 million. It begins to be phased out if 2024 qualified asset additions exceed $3.05 million. (These are up from $1.16 million and $2.89 million, respectively, in 2023.)
Bonus depreciation basics
Most tangible depreciable business assets also qualify for first-year bonus depreciation. In addition, software and QIP generally qualify. To be eligible, a used asset must be new to the taxpayer.
For qualifying assets placed in service in 2024, the first-year bonus depreciation percentage is 60%. This is down from 80% in 2023.
Sec. 179 vs. bonus depreciation
The current Sec. 179 deduction rules are generous, but there are several limitations:
- The phase-out rule mentioned above,
- A business taxable income limitation that disallows deductions that would result in an overall business taxable loss,
- A limited deduction for SUVs with a gross vehicle weight rating of more than 6,000 pounds, and
- Tricky limitation rules when assets are owned by pass-through entities such as LLCs, partnerships, and S corporations.
First-year bonus depreciation deductions aren’t subject to any complicated limitations. But, as mentioned earlier, the bonus depreciation percentages for 2024 and 2023 are only 60% and 80%, respectively.
So, the current tax-saving strategy is to write off as much of the cost of qualifying asset additions as you can with Sec. 179 deductions. Then claim as much first-year bonus depreciation as you can.
Example: In 2024, your calendar-tax-year C corporation places in service $500,000 of assets that qualify for both a Sec. 179 deduction and first-year bonus depreciation. However, due to the taxable income limitation, the company’s Sec. 179 deduction is limited to only $300,000. You can deduct the $300,000 on your corporation’s 2024 federal income tax return. You can then deduct 60% of the remaining $200,000 ($500,000 − $300,000), thanks to first-year bonus depreciation. So, your corporation can write off $420,000 in 2024 [$300,000 + (60% x $200,000) = $420,000]. That’s 84% of the cost! Note that the $200,000 bonus depreciation deduction will contribute to a corporate net operating loss that’s carried forward to your 2025 tax year.
Manage tax breaks
As you can see, coordinating Sec. 179 deductions with bonus depreciation deductions is a tax-wise idea. We can provide details on how the rules work or answer any questions you have.
© 2024
Many businesses support their communities by donating to local charities. Although there are plenty of nonprofits that deserve your support, some exist solely to facilitate fraud. How can you avoid the latter? Familiarize yourself with the deceptive tactics scammers use and carefully screen charities for legitimacy — before you write a check.
Branding tricks
Fraud perpetrators employ many tried-and-tested approaches to trick businesses into donating to fake charities. One of the most effective ways that they secure donations is by creating entities that resemble established nonprofits. They use familiar-sounding names and familiar-looking logos. They also make their websites and marketing materials appear like those of the charities they’re impersonating.
These scammers often use their fake branding in emails and on social media platforms. Not only do they hope you’ll donate money, but many also try to lure potential victims into clicking on links that download malware. The fraudsters might use the malware to hack networks, steal data and commit identity theft.
Tried-and-tested cons
Some other common methods used by con artists include:
Telemarketing scams. Using readily available technology, scammers can disguise their phone numbers to make it look like they’re calling from legitimate charities. During calls, they use high-pressure tactics that leave little time for would-be supporters to vet their organizations. This approach can be especially effective when a natural disaster occurs and potential donors understand the need to take quick action.
Fake endorsements. Some perpetrators use “endorsements” from celebrities, prominent companies and community leaders to lend fake charities an air of legitimacy and encourage you to donate. In most instances, the quoted individuals didn’t actually provide endorsements — or they might have been conned into lending their support. Artificial intelligence increasingly is being used by bad actors to impersonate the voices and appearances of well-known individuals.
False invoices. Most businesses receive a lot of invoices, and it may be easy to overlook an invoice for a charitable pledge you never made. To encourage prompt payment, an invoice from a fake charity might include a note referencing a previous conversation in which you or another person in your company approved the donation.
The real deal
There are a few simple steps you can take to help ensure your business’s charitable contributions go to real nonprofits. Most states require legitimate charities to register, and your state should have a website that will confirm whether a charity has filed and is in good standing. You can also enter a charity’s tax ID number on the IRS’s website to learn whether the organization is tax-exempt and if donations to it are eligible for deductions.
Keep in mind that a fake charity could potentially provide you with the tax ID number of a real charity. If you’re suspicious, further investigate the claims of the person soliciting donations. The websites of Charity Navigator, GuideStar and BBB Wise Giving Alliance can provide addresses, phone numbers, key performance metrics, tax and compliance information, and ratings relative to other nonprofits.
To help ensure you’re using best practices to avoid fraud, write and circulate a charitable donation policy. Your policy should describe processes to verify a nonprofit’s legitimacy and authorize donations in your company’s name. And it should specify approved payment methods and include instructions on tracking and reporting all charitable contributions. Also, make sure you educate employees about charitable scams and how to respond to unsolicited calls, texts and emails. If they’re in doubt, employees should feel empowered to ignore and delete messages.
Importance of philanthropy
Many businesses donate to charities in their communities to demonstrate their commitment to helping others. While there’s no shortage of worthy charities with important missions, scammers often take advantage of philanthropic businesses. Putting in place a donation policy, vetting charities and ensuring employees know how to handle unsolicited requests can go a long way to ensuring your giving ends up in deserving hands.
© 2024
Open enrollment for most health care plans is many months away. That makes now a good time for businesses to consider changing their employer-sponsored coverage for next year, or perhaps to think about launching a plan for the very first time.
If you’re going to do either, you’ll have many details to sort through. To simplify matters a bit, let’s look at a few “big picture” factors that can serve as good starting points for contemplating the size and shape of your plan.
Funding approach
As you’re likely aware, there are two broad types of employer-sponsored health insurance plans: fully insured and self-funded (also known as self-insured). A fully insured plan is simply one you buy from an insurer. This is the most common approach for small to midsize businesses because it limits financial risk while offering the most predictable costs.
Under a self-funded plan, your company funds and administers the insurance, usually with the help of a third-party administrator. This approach may save money if your business can design its own plan and manage the claims process. However, you assume financial risk for the plan — costs can be unpredictable and potentially catastrophic.
Size of network
The size of a plan’s network determines how many options employees have when picking providers and how much they’ll pay out of pocket. A smaller network of preferred providers often grants the most coverage with lower out-of-pocket costs for employees when they visit those providers. Participants can typically still pick out-of-network services, but they’ll usually pay more out of pocket. Rightsizing your network is critical to participant satisfaction.
Tax-advantaged accounts
Although technically not insurance, widely used tax-advantaged accounts can be strong additions to a benefits package. These include Health Savings Accounts (HSAs), which must be offered in conjunction with high-deductible health plans, and Flexible Spending Accounts (FSAs).
HSAs and FSAs let employees set aside pretax dollars from their paychecks to use for eligible medical expenses. HSA funds remain in participants’ accounts until used, while FSA dollars typically must be spent within the year or lost (though a plan can provide for a grace period of up to 2½ months after the end of the plan year). A third option is a Health Reimbursement Arrangement (HRA). This is an employer-funded plan under which participants submit out-of-pocket medical expenses, such as deductibles and copays, for tax-free reimbursement.
Availability of government assistance
If your business happens to be considered a small business for health insurance purposes, you may want to check out the Small Business Health Options Program (SHOP). This federal marketplace is designed for small-business owners looking for health care plans. To qualify, a company typically must:
- Have one to 50 employees,
- Provide health benefits to all staffers working 30 or more hours per week,
- Reach plan enrollment of at least 70% of employees,
- Maintain an office or have an employee in the state of the SHOP used.
Every state runs its own SHOP marketplace, but they’re similar. Your state’s SHOP may be a good place to start if you’re ready to sponsor a plan but aren’t sure where to begin.
A major decision
Making changes to an existing health care plan or launching a new one is a major business decision, so be sure to go about it carefully. Hold honest discussions with your leadership team. Perhaps survey your employees to get a better idea of what plan features they value and whether there are any you should add. Consider engaging an insurance broker for assistance. For help identifying the costs and tax impact of health insurance, or any employer-sponsored benefit, contact us.
© 2024
President Biden has released his proposed budget for the 2025 fiscal year, including numerous tax provisions affecting both businesses and individual taxpayers. While most of these provisions have little chance of coming to fruition while the U.S. House of Representatives remains controlled by the Republican Party, they might gain new life depending on the outcome of the November elections. Here’s an overview of the major tax proposals included in the budget.
Business tax provisions
The budget proposal includes many changes that could affect businesses’ tax outlook, several of which Biden has previously endorsed. Among the most notable:
Corporate tax rates. Under this proposal, the tax rate for C corporations would increase from 21% to 28% — still below the 35% rate that was in effect before the Tax Cuts and Jobs Act (TCJA). The effective global intangible low-taxed income (GILTI) rate would increase to 14%, and additional proposed changes would further increase the effective GILTI rate to 21%. The corporate alternative minimum tax rate would go up to 21%, from 15%.
Executive compensation. Biden proposes extending the current limitation on the deductibility of compensation in excess of $1 million for certain executives in publicly owned C corporations to privately held C corporations. A new aggregation rule would treat all members of a controlled group as a single employer for purposes of determining covered executives.
Excess business loss (EBL) limitation. Under the TCJA, noncorporate taxpayers can apply their business losses to offset only business-related income or gain, plus there’s an inflation-adjusted threshold (for 2024, $305,000 or $610,000 if filing jointly). The proposal would make this limitation permanent and treat EBLs carried forward from the prior year as current-year business losses rather than as net operating loss deductions.
Stock buyback excise tax. The Inflation Reduction Act (IRA) created a 1% excise tax on the fair market value when corporations repurchase their stock to reduce the difference in the tax treatment of buybacks and dividends. The proposal would quadruple the tax to 4%. It also would extend the tax to the acquisition of an applicable foreign corporation by certain affiliates of the corporation.
Like-kind exchanges. Owners of certain real property can defer the taxable gain on the exchange of the property for real property of a “like-kind.” The proposal would allow the deferral of gain up to an aggregate amount of $500,000 for each taxpayer ($1 million for joint filers) each year for real property like-kind exchanges. (Other types of assets wouldn’t be eligible.) Excess like-kind gains would be recognized in the year the taxpayer transfers the real property.
Individual tax provisions
Biden continues to promise that he won’t raise taxes on filers earning less than $400,000 annually but opposes extending tax cuts for those making more than that amount. Among other things, his budget proposal would affect:
Tax rates. The proposal would return the top individual marginal income tax rate for single filers earning more than $400,000 ($450,000 for joint filers) to the pre-TCJA rate of 39.6%.
Net investment income tax (NIIT). The NIIT on income over $400,000 would include all pass-through business income not otherwise covered by the NIIT or self-employment tax. The budget also would increase both the additional Medicare tax rate (on earnings above $400,000) and the NIIT rate (on investment income above $400,000) to 5%.
Capital gains taxes. Individuals with taxable income exceeding $1 million would see capital gains taxed at ordinary income rates, up from the current highest capital gains rate of 20%. Also, unrealized gains at death would be taxed, subject to a $5 million exemption ($10 million for married couples).
Child Tax Credit (CTC). The proposal would boost the maximum per-child credit — to $3,600 for qualifying children under age six and $3,000 for all other qualifying children — and increase the maximum age to 17, through 2025. It also would implement an advance monthly payment program, establish a “presumptive eligibility” concept and permanently make the CTC fully refundable.
Premium tax credits (PTCs). Biden would make permanent the IRA’s expansion of health insurance subsidies to taxpayers with household income above 400% of the federal poverty line, as well as the reduction in the amount of household income that must be contributed to qualify for PTCs.
Gift and estate taxes. The proposal would close several gift and estate tax loopholes that help the wealthy reduce their taxes. For example, certain transfers would be subject to a new annual gift tax exclusion, whereby a donor’s transfers that exceed a total of $50,000 in a year would be taxable regardless of whether the total gifts to each individual recipient didn’t exceed the annual gift exclusion amount ($18,000 per recipient in 2024).
Tax changes are coming one way or another
Even if none of these provisions are enacted as proposed, new legislation addressing taxes is likely in the next year or two. Indeed, absent congressional action, many significant TCJA provisions are scheduled to expire after 2025. Extensive tax debates and negotiations will likely soon take center stage. Turn to us for the latest developments.
© 2024
Managing accounts receivable can be challenging, especially in an uncertain economy. To keep your company financially fit, it’s a good idea to occasionally revisit your billing and collections processes to ensure they’re as efficient and effective as possible. Consider these helpful tips.
Resolve billing issues quickly
The quality of your products or services, and the efficiency of order fulfillment and distribution processes, can significantly impact collections. When an order arrives damaged, late or not at all, the customer has an excuse to question or not pay your invoice. Other mistakes include incorrectly billing a customer or failing to deliver on promised discounts or special offers.
Make sure you resolve billing mistakes quickly and ask customers to pay any portion of the bill they’re not disputing. Once the matter has been resolved and the product or service has been delivered, ask the customer to pay the remainder of the bill. Depending on the circumstances, you also may consider asking the customer to sign off on the matter by making a note on the final invoice. Doing so will help protect you from potential future claims.
A lengthy cycle time for resolving billing disputes can have ripple effects on finance and accounting processes, such as reporting and forecasting. For instance, if you prepare your first quarter financial statements with numerous outstanding adjustments, management won’t be able to evaluate first quarter results until the adjustments are made. Delays in financial reporting can lead to missed business opportunities and postpone detection of impending financial problems.
Send timely invoices
If you haven’t already done so, implement an automated collection system that generates invoices when work is complete, flags problem accounts and produces useful financial reports. Consider sending invoices electronically and enabling customers to pay online. You can still send statements out monthly as a routine reminder of outstanding balances.
Delays in invoicing can impair collection efforts. Familiarize yourself with industry norms before setting payment schedules (whether they’re on 30-, 45- or 60-day cycles). If your most important or largest customers have their own payment schedules, be sure to set them up in your system.
It’s also important to regularly verify account information to ensure invoices and statements are accurate and they get into the right hands. Set clear standards and expectations with customers — both verbally and in writing — about your credit policy, including pricing, delivery and payment terms.
Consider rewards for early payment and penalties for delays
Despite your best efforts, you’re still likely to encounter slow-paying customers. Here are some ideas to encourage timely payments:
- Request payment up front with deposits or service retainers,
- Reward timely payments with early-payment discounts, and
- Provide incentives to customers that improve their payment practices.
If positive reinforcement isn’t working, consider implementing late-payment penalties. For instance, you could assess fees on past-due accounts. You might also put a credit hold on extremely delinquent accounts or adjust their payment terms to cash on delivery.
Stay connected with high-maintenance customers
Make regular calls and send e-mail reminders to customers who haven’t settled their accounts. If necessary, the manager who works directly with the customer should try to resolve the payment issues with the lead contact at the company — or even the owner. Consider executing a promissory note to prevent the customer from disputing the charges in the future. If your efforts aren’t fruitful, get help from an attorney or collection agency. Keep in mind, though, that third-party fees may consume much of the collected amount.
If an outstanding debt is uncollectible, you can write it off as an ordinary business expense. Be sure to document customers’ promises to pay and your collection efforts, as well as why you believe the debt is worthless.
We can help
Solid billing and collections strategies are integral to a company’s financial health. Contact us for more ideas for improving your company’s approach to accounts receivable.
© 2024
Many employers now allow employees to work remotely, either all or part of the time. If your organization does and sponsors a health care plan, here’s a brief refresher on some of the rules regarding protected health information (PHI) and the Health Insurance Portability and Accountability Act (HIPAA).
The Privacy Rule
One major feature of HIPAA is its Privacy Rule. This is essentially a set of national standards for safeguarding PHI. Always keep in mind that PHI is much broader than details about diagnosis and treatment. It also includes demographic data such as participants’ addresses, phone numbers, email addresses and financial information, as well as details about their plan participation.
Some staff members — managers, in particular — may be able to access PHI. When working remotely, these employees should ideally:
- Have private workspaces where others can’t overhear conversations involving PHI,
- Use only employer-issued devices and never access electronic PHI (ePHI) on shared devices, and
- Put hard copies of PHI in a locked filing cabinet, shredding anything they can’t store securely.
Be sure to know which remote workers can access PHI. Each should be able to verify that there are proper measures in place to protect it.
The Security Rule
Another major HIPAA feature is its Security Rule, which is essentially a set of regulations for safeguarding ePHI. Every plan sponsor should conduct an organizational risk analysis and implement a risk management plan that addresses remote work. Doing so is even more important if, in recent years, you’ve seen a substantial increase in the number of remote workers. Your risk management plan should address the three prongs of the HIPAA Security Rule. These are:
1. Physical safeguards. Although the Security Rule applies to ePHI, physical safeguards are still important. Employers should track the location of each computer accessing ePHI. Lost or stolen computers may result in unauthorized disclosure of large amounts of ePHI, so making sure employees keep them in a secure room is critical.
In addition, employees need to report loss or theft immediately. Devices should never be left unattended in a vehicle or public space. Employees may be tempted to write down passwords and keep them near their computers. However, this practice is as unacceptable when working remotely as it is when working on-site.
2. Technical safeguards. Controlling access is key. This includes:
- Restricting access to the minimum-necessary ePHI for each employee’s job function,
- Requiring unique user IDs, passwords and multifactor authentication,
- Implementing automatic log off or lock screen, and
- Using robust encryption tools.
Advise employees to avoid downloading and storing ePHI on their computers. An individual machine often has weaker protection than a network — cloud storage may be more secure. Warn them against using portable storage media, such as thumb drives, from unknown or unauthorized sources. These items may install malware onto an employee’s computer.
3. Administrative safeguards. Implement procedures to supervise remote employees. Routinely monitor logins and system activity to identify potential security incidents, such as transfers or removal of large amounts of data. For new employees, or those new to remote work, mandate training on your organization’s policies and procedures.
Even with heightened awareness and safeguards, the nature of remote work increases the possibility of unauthorized use or disclosure of ePHI. Because the breach notification rules continue to apply, and you could incur HIPAA penalties if breach notification is inadequate or untimely, train employees to recognize and promptly report possible breaches.
Top of mind
Regular reminders and occasional retraining are good ways to keep HIPAA compliance top of mind for employees involved in plan administration, whether they work remotely or on-site. For help identifying and managing the costs and financial risks of your health care plan, contact us.
© 2024
Few things can derail your estate plan as quickly as unanticipated long-term care (LTC) expenses. Most people will need some form of LTC — such as a nursing home or an assisted living facility stay — at some point in their lives. And the cost of this care is steep.
Contrary to popular belief, LTC expenses generally aren’t covered by traditional health insurance policies, Social Security or Medicare. So, to help ensure that LTC expenses don’t deplete savings or other assets meant to go to your heirs, have a plan for funding them. Here are some of your options.
Self-funding
If your nest egg is large enough, it may be possible to pay for LTC expenses out-of-pocket as (or if) they’re incurred. An advantage of this approach is that you’ll avoid the high cost of LTC insurance premiums. In addition, if you’re fortunate enough to avoid the need for LTC, you’ll enjoy a savings windfall that you can use for yourself or your family. The risk, of course, is that your LTC expenses will be significantly larger than anticipated, eroding the funds available to your heirs.
Any type of asset or investment can be used to self-fund LTC expenses, including savings accounts, pension or other retirement funds, stocks, bonds, mutual funds, or annuities. Another option is to tap the equity in your home by selling it, taking out a home equity loan or line of credit, or obtaining a reverse mortgage.
Two vehicles that are particularly effective for funding LTC expenses are Roth IRAs and Health Savings Accounts (HSAs). Roth IRAs aren’t subject to minimum distribution requirements, so you can let the funds grow tax-free until they’re needed. And an HSA, coupled with a high-deductible health insurance plan, allows you to invest pretax dollars that can be withdrawn tax-free to pay for qualified unreimbursed medical expenses, including LTC. Unused funds may be carried over from year to year, making an HSA a powerful savings vehicle.
LTC insurance
LTC insurance policies — which are expensive — cover LTC services that traditional health insurance policies typically don’t cover. Determining when to purchase such a policy can be a challenge. The younger you are, the lower the premiums, but you’ll be paying for insurance coverage during a time that you’re not likely to need it.
Although the right time for you to buy coverage depends on your health, family medical history and other factors, many people purchase these policies in their early to mid-60s. Keep in mind that once you reach your mid-70s, LTC coverage may no longer be available to you or may be prohibitively expensive.
Hybrid insurance
Hybrid policies combine LTC coverage with traditional life insurance. Often, these take the form of a permanent life insurance policy with an LTC rider that provides for tax-free accelerated death benefits in the event of certain diagnoses or medical conditions.
These policies can have advantages over stand-alone LTC policies, such as less stringent underwriting requirements and guaranteed premiums that won’t increase over time. The downside, of course, is that to the extent you use the LTC benefits, the death benefit available to your heirs will be reduced.
Potential tax breaks
If you buy LTC insurance, you may be able to deduct a portion of the premiums on your tax return. And if you need LTC, you may be able to deduct some of the costs. If you have questions regarding LTC funding or the tax implications, please don’t hesitate to contact us.
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The qualified business income (QBI) deduction is available to eligible businesses through 2025. After that, it’s scheduled to disappear. So if you’re eligible, you want to make the most of the deduction while it’s still on the books because it can potentially be a big tax saver.
Deduction basics
The QBI deduction is written off at the owner level. It can be up to 20% of:
- QBI earned from a sole proprietorship or single-member LLC that’s treated as a sole proprietorship for tax purposes, plus
- QBI from a pass-through entity, meaning a partnership, LLC that’s treated as a partnership for tax purposes or S corporation.
How is QBI defined? It’s qualified income and gains from an eligible business, reduced by related deductions. QBI is reduced by: 1) deductible contributions to a self-employed retirement plan, 2) the deduction for 50% of self-employment tax, and 3) the deduction for self-employed health insurance premiums.
Unfortunately, the QBI deduction doesn’t reduce net earnings for purposes of the self-employment tax, nor does it reduce investment income for purposes of the 3.8% net investment income tax (NIIT) imposed on higher-income individuals.
Limitations
At higher income levels, QBI deduction limitations come into play. For 2024, these begin to phase in when taxable income before any QBI deduction exceeds $191,950 ($383,900 for married joint filers). The limitations are fully phased in once taxable income exceeds $241,950 or $483,900, respectively.
If your income exceeds the applicable fully-phased-in number, your QBI deduction is limited to the greater of: 1) your share of 50% of W-2 wages paid to employees during the year and properly allocable to QBI, or 2) the sum of your share of 25% of such W-2 wages plus your share of 2.5% of the unadjusted basis immediately upon acquisition (UBIA) of qualified property.
The limitation based on qualified property is intended to benefit capital-intensive businesses such as hotels and manufacturing operations. Qualified property means depreciable tangible property, including real estate, that’s owned and used to produce QBI. The UBIA of qualified property generally equals its original cost when first put to use in the business.
Finally, your QBI deduction can’t exceed 20% of your taxable income calculated before any QBI deduction and before any net capital gain (net long-term capital gains in excess of net short-term capital losses plus qualified dividends).
Unfavorable rules for certain businesses
For a specified service trade or business (SSTB), the QBI deduction begins to be phased out when your taxable income before any QBI deduction exceeds $191,950 ($383,900 for married joint filers). Phaseout is complete if taxable income exceeds $241,950 or $483,900, respectively. If your taxable income exceeds the applicable phaseout amount, you’re not allowed to claim any QBI deduction based on income from a SSTB.
Other factors
Other rules apply to this tax break. For example, you can elect to aggregate several businesses for purposes of the deduction. It may allow someone with taxable income high enough to be affected by the limitations described above to claim a bigger QBI deduction than if the businesses were considered separately.
There also may be an impact for claiming or forgoing certain deductions. For example, in 2024, you can potentially claim first-year Section 179 depreciation deductions of up to $1.22 million for eligible asset additions (subject to various limitations). For 2024, 60% first-year bonus depreciation is also available. However, first-year depreciation deductions reduce QBI and taxable income, which can reduce your QBI deduction. So, you may have to thread the needle with depreciation write-offs to get the best overall tax result.
Use it or potentially lose it
The QBI deduction is scheduled to disappear after 2025. Congress could extend it, but don’t count on it. So, maximizing the deduction for 2024 and 2025 is a worthy goal. We can help.
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Occupational fraud is a crime generally committed by employees against their employers. Ironically, employees also are most likely to notice or suspect occupational fraud schemes conducted by their coworkers or managers. Whether they report through an anonymous tipline or directly to management or HR, rank-and-file workers often are the first to raise the alarm.
If an employee alleges that someone has committed theft or fraud, or simply exhibits suspicious behavior, it’s your responsibility is to take the charges seriously and investigate them. Here’s how.
Preliminary digging
If you receive a fraud tip, you’ll need to assess its validity by conducting preliminary interviews — even if you plan to eventually turn the investigation over to legal and fraud professionals. To help avoid unnecessary legal complications, keep details of any allegation private, particularly the identities of the accused and the accuser.
Assure workers involved that the investigation will be held in strict confidence and inform them that they can’t discuss any part of the process with anyone outside it. Remind managers that they need to have all conversations behind closed doors, store all meeting notes securely and speak only to those people who are necessary to the complaint investigation.
One-on-one interviews
When you sit down with the accuser, the accused or potential witnesses, start with an opening statement that describes what’s being investigated and then ask open-ended questions that encourage employees to say more than “yes” or “no.” Ask all interviewees the same questions so that you can compare answers, identify patterns and uncover discrepancies. Also, have a witness present to verify what was said and what occurred during the interviews.
Keep an open mind while gathering facts. Just because an employee has a reputation around the office as a “troublemaker” or “crank,” doesn’t mean that person is lying or guilty of an impropriety. If an interview seems to veer into dangerous territory — for example, an accused individual claims harassment or asks about legal rights — contact your attorney immediately. Also consider allowing a third-party investigator, such as a fraud expert, to handle future interviews. This can help preserve impartiality and show all parties that the investigation is being taken seriously.
Tying up loose ends
You’ll want to keep detailed notes on all the steps of your investigation. Include the dates and times of workspace searches, computer forensic activity and conversations. After every interview or action taken, review your notes to ensure they capture all relevant information.
Even if your investigation turns up no evidence of misconduct or criminal behavior, you’ll need to follow up and close the loop with those involved. When complaints are found to have merit, take appropriate action as quickly as possible. You may be able to handle some minor issues with in-house personnel. But consult legal and financial advisors — and possibly law enforcement — if a crime seems to have occurred or you detect financial losses.
Document your policy
So that workers know what to expect if they make a complaint — of any kind — detail the resolution process in your employee handbook. Just make sure your managers understand and adhere to anything you put in writing. Contact us if you need help investigating fraud.
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Auditor independence is the cornerstone of the accounting profession. Auditors’ commitment to follow the standards set forth by the American Institute of Certified Public Accountants (AICPA), the Securities and Exchange Commission (SEC), and the International Auditing and Assurance Standards Board (IAASB) ensures stakeholders can trust that audited financial statements present an accurate picture of the performance and condition of companies.
Close-up on AICPA standards
Auditors of U.S. publicly traded and privately held companies must be members of the AICPA. According to AICPA standards, “Accountants in public practice should be independent in fact and appearance when providing auditing and other attestation services.” Specifically, the Professional Ethics Division of the AICPA defines independence as, “The state of mind that permits a member to perform an attest service without being affected by influences that compromise professional judgment, thereby allowing an individual to act with integrity and exercise objectivity and professional skepticism.”
In short, auditors can’t provide any services for an audit client that would normally fall to the company’s management to complete. Auditors also can’t engage in any relationships with their clients that would:
- Compromise their objectivity,
- Require them to audit their own work, or
- Result in self-dealing, a conflict of interest or advocacy.
In addition to maintaining their independence, all AICPA members must comply with a code of professional conduct. This code requires every member of the AICPA to act with integrity, objectivity, due care and competence, and maintain client confidentiality.
Benefits for your organization
Although auditor independence might seem relevant only to the accounting profession, it matters to the entire business community. When auditors adhere to the profession’s independence and ethics standards, they enhance the reliability of the financial reports they audit. The production of audited financial statements helps companies establish and maintain stakeholder confidence. This can help companies attract investors, secure bank loans and demonstrate financial stability to other stakeholders, including employees, suppliers and regulators.
Auditor independence is a critical issue for public and private companies alike. Contact us to discuss any questions you may have regarding independence.
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How long should you keep business records?
The retention of tax and business records depends on the nature of the information and how it is used. This schedule has been developed as a guide only. Various regulatory, statutory and industry practices may supersede these general recommendations and alter the holding period. Consult legal counsel before destroying records if you are uncertain and before implementing any business record retention policy. This schedule applies to both paper and electronic resources.
The updated Form W-9, released in March 2024, plays a crucial role in tax compliance and reporting by serving as a fundamental document for individuals and entities required to file information returns with the IRS. This form is essential for gathering precise taxpayer information, especially for reporting payments to contractors or vendors through Form 1099 at the end of the year. Ensuring accurate completion of the Form W-9 is vital to avoid potential complications. The recent updates to the Form W-9 aim to enhance clarity and accuracy in taxpayer information reporting.
Notable changes include:
- Clarification of Taxpayer Identification Number (TIN) Requirement: The revised form stresses the importance of providing a correct TIN to prevent backup withholding on payments, emphasizing the significance of accurate taxpayer information.
- Addition of Legal Entity Box: A new box has been introduced to specify the type of legal entity, such as sole proprietorship, corporation, partnership, or LLC. This addition simplifies the identification process, ensuring precise categorization of taxpayer entities.
- Removal of Exempt Payee Code: The updated form no longer features an exempt payee code box, streamlining the form and eliminating potential confusion for taxpayers.
- Updated Instructions: The accompanying instructions have been revamped to offer more explicit guidance on accurately completing the form. This ensures taxpayers have clear directions to follow, reducing errors in the submission process.
By acquainting themselves with the modifications in the new Form W-9, taxpayers can effectively navigate its requirements, guaranteeing the correct completion and submission of this critical document for tax reporting purposes. Contact your Yeo & Yeo advisor if you have questions.
Michigan has recently made significant updates to its antidiscrimination law, expanding protections for employees and applicants. As of February 13, 2024, Michigan now prohibits discrimination against individuals on various fronts, affecting employers of all sizes.
Key Updates:
- Inclusion of “Sex” Definition: The definition of “sex” has been broadened to encompass all terminations of pregnancy and related medical conditions. Previously, this definition excluded abortions not intended to save the mother’s life.
- Addition of Protected Categories: Michigan has added sexual orientation and gender identity or expression as protected categories under the statute. While federal law already prohibits discrimination based on sexual orientation and gender identity for employers with 15 or more employees, Michigan has extended these protections statewide.
Action Item:
- Employers are advised to update their Equal Employment Opportunity (EEO) policy and other relevant policies referencing protected classes. Ensure that sexual orientation and gender identity or expression are included in these policies if they are not already.
- Additionally, if your policy consists of a definition of sex, make sure to update it accordingly. These changes mark a significant step towards ensuring equal rights and protections for all Michigan workforce individuals. Michigan aims to create a more inclusive and equitable environment for its residents by aligning state laws with evolving societal norms.
These updates reflect Michigan’s commitment to fostering a more inclusive and diverse workplace environment while upholding the rights of all individuals within the state.
The U.S. Department of Labor (DOL) is on track to finalize a new overtime rule in April 2024, with a swift implementation timeline of just 60 days after that. This accelerated process deviates from past practices, where employers had up to 192 days to comply. The DOL’s rationale for this expedited timeline stems from economic shifts necessitating an update to the salary level standard. Should the DOL adhere to its April deadline, the new rule could be enacted by June 2024. While the DOL has faced challenges meeting deadlines, employers are advised to prepare for timely implementation this time.
The impending overtime rule will elevate the minimum annual salary for most exempt employees paid on a salary basis from $35,568 to an estimated range of $55,068-$60,209 per year. Approximately 3.4 million exempt employees earning below this threshold will require adjustments in salaries or classification as nonexempt employees.
Considering these anticipated changes, consider the following proactive steps:
Identify Impacted Employees
Determine which employees are exempt from federal overtime regulations and fall below the proposed new salary threshold.
Consider Base Pay Adjustments
Evaluate whether transitioning affected employees to nonexempt status or raising their salaries above the new threshold is the best action.
Implement Time Tracking and Training
Initiate work hours tracking for potentially nonexempt employees to accurately anticipate overtime payments.
Review Telework and Flex-time Policies
Assess existing policies related to remote work and non-standard hours to ensure precise compensation and overtime tracking.
Evaluate Compensation Methods
Consider paying newly nonexempt employees hourly to streamline tracking working hours and ensure compliance with FLSA regulations.
Calculate Potential Costs and Budget Impact
Conduct a thorough analysis of the financial implications of adjusting salary levels and overtime payments on yearly budgets, making necessary updates.
For inquiries or clarification regarding the proposed overtime rule changes, reach out to your dedicated advisor at Yeo & Yeo. The specialists in our Payroll Solutions Group and HR Advisory Solutions Group are ready to provide further assistance.
International Women’s Day is, first and foremost, a day to celebrate the social, economic, cultural, and political achievements of women. It is also an important day to raise awareness, educate and inspire communities, and highlight the significance of gender equity.
This year, the theme of International Women’s Day is “Inspire Inclusion,” a call to action for individuals and organizations to foster environments that embrace diversity and empower women. Here are some ways to mark the day – whether with friends, family, colleagues, or the global community.
- Support women-owned businesses: Encourage economic empowerment by supporting businesses owned and led by women.
- Volunteer: Get involved with organizations that support and empower women to make a positive impact in your community.
- Reach out to a friend: Send a text, email, or handwritten note to each of your female friends to let them know what you admire about them and how much you appreciate them.
- Mentorship: Offer mentorship to women in your community or workplace to help them navigate their professional journeys.
Yeo & Yeo is incredibly proud of its family-friendly culture and ability to attract and retain women. In 1987, Mari McKenzie became the first female Principal at Yeo & Yeo. She was a trailblazer in a male-driven industry, serving on Yeo & Yeo’s board of directors and forging the way for future women leaders in the firm. Today, our workforce is more than 54% female, and the number of women in leadership positions exceeds 50%, well above the industry average in professional service firms. Internally, the firm’s mentorship and career advocacy programs ensure that everyone receives support to achieve their goals and be successful. We are passionate about supporting our many women-owned business clients, helping them navigate challenges and achieve their goals. Through the Yeo & Yeo Foundation, our people also support women-focused organizations, including Girl Scouts, Women of Colors, Self Love Beauty, the Clean Love Project, and more.
“Yeo & Yeo has given me incredible opportunities to learn and grow in my career,” said Principal Rachel Van Slembrouck. “As a woman in accounting, I am truly grateful for the incredible support system I have both personally and professionally.”
Today and every day, we thank our women for providing valuable insights that uplift our clients and communities. We encourage you to take time to reflect on the achievements of the women in your life and watch Yeo & Yeo’s women’s success stories video, which celebrates our women’s accomplishments over the past year. Through their experiences, we hope to inspire and empower women to achieve their full potential and celebrate their accomplishments.
The driving revenue force of just about every kind of business is sales. But all too often, once a sales team is up and running, it’s left to its own devices to maintain its strengths, develop new skills and upgrade its technology. This can produce mixed results — some sales departments are remarkably self-sufficient while others could really use more organizational support.
To remove the guesswork, many of today’s businesses are investing in sales enablement. This is an enterprise-wide, collaborative and continuous approach to empowering the sales department to do its best work.
Pillars of the concept
Wait a minute, you might say, isn’t sales enablement just another name for sales training? No, not entirely.
Training is certainly a part of the equation. A sales enablement program will involve ongoing training on the latest sales techniques, changes in the marketplace, the company’s latest products or services, and so forth. But this training doesn’t occur haphazardly — it’s regularly scheduled and typically segmented into easily digestible learning modules, generally a more effective approach than overloading sales reps with info on a sales retreat or in sporadic seminars.
There are several other pillars of sales enablement as well. One is content. Under their programs, many companies build a library of materials that features items such as:
- Books and articles on best practices,
- Customer testimonials,
- Product “spec sheets,” slide decks and demos, and
- Reports and spreadsheets with the latest competitive intelligence.
Another key feature of a sales enablement program is coaching. This may involve engaging outside consultants to provide coaching services to sales reps or developing internal mentoring or partnering.
Technology is also central to sales enablement. Most programs involve regular discussions with the leadership team and IT department about what tools could best serve the sales team. Notably, there are multiple software platforms on the market focused on sales enablement that can help businesses set up and manage their programs. Some customer relationship management software offers help in this area, too.
Benefits in the offing
There’s a reason sales enablement has caught on with many different types of companies. There are significant benefits in the offing.
First, a well-designed program can get new hires up to speed much more quickly than a more casual, ad hoc approach to “rookie” training. And for fully onboarded and seasoned employees, sales enablement can save time and effort by providing easy access to the relevant and up-to-date data, content and tools that support their activities. Ultimately, it can boost productivity for the whole team and, thereby, revenue for the business.
Also, the ongoing training and coaching features of sales enablement help sales reps keep their skills sharp and their knowledge growing. The aforementioned learning modules, webinars, podcasts, quizzes and other learning formats may give them an edge over competitors with less educational support.
There’s the engagement factor, too. A sales enablement program communicates to new hires, as well as established reps, that the organization fully supports them. As word gets around, you may attract stronger job candidates and enjoy better employee retention rates.
A major initiative
As the saying goes, nothing worth doing is easy. To implement and run a successful sales enablement program, you’ll need to invest considerable time and resources. And before any of that, you’ll need to set clear, measurable objectives — as well as a reasonable budget. For help with the financial side of planning a major initiative like this, contact us.
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Estate planning isn’t just about sharing wealth with the younger generation. For many people, it’s equally important to share one’s values and to encourage their children or other heirs to lead responsible, productive and fulfilling lives. One tool for achieving this goal is an incentive trust, which conditions distributions on certain behaviors or achievements that you wish to inspire.
Incentive trusts can be effective, but they should be planned and drafted carefully to avoid unintended consequences. Let’s examine four tips for designing a more effective incentive trust.
1. Focus on the positives
Avoid negative reinforcement, such as conditioning distributions on the avoidance of undesirable or self-destructive behavior. This sort of “ruling from the grave” is likely to be counterproductive. Not only can it lead to resentment on the part of your heirs, but it may backfire by encouraging them to conceal their conduct and avoid seeking help. Trusts that emphasize positive behaviors, such as going to college or securing gainful employment, can be more effective.
2. Be flexible
Leading a worthy life means different things to different people. Rather than dictating specific behaviors, it’s better to establish the trust with enough flexibility to allow your loved ones to shape their own lives.
For example, some people attempt to encourage gainful employment by tying trust distributions to an heir’s earnings. But this can punish equally responsible heirs who wish to be stay-at-home parents or whose chosen careers may require them to start with low-paying, entry-level jobs or unpaid internships. A well-designed incentive trust should accommodate nonfinancial measures of success.
3. Consider a principle trust
Drafting an incentive trust can be a challenge. Rewarding positive behavior requires a complex set of rules that condition trust distributions on certain achievements or milestones, such as gainful employment, earning a college degree or reaching a certain level of earnings. But it’s nearly impossible to anticipate every contingency.
One way to avoid unintended consequences is to establish a principle trust. Rather than imposing a complex, rigid set of rules for distributing trust funds, a principle trust guides the trustee’s decisions by setting forth the principles and values you hope to encourage and providing the trustee with discretion to evaluate each heir on a case-by-case basis. Bear in mind that for this strategy to work, the trustee must be someone you trust to carry out your wishes.
4. Provide a safety net
An incentive trust need not be an all-or-nothing proposition. If your trust beneficiaries are unable to satisfy the requirements you set forth in your incentive trust, consider offering sufficient funds to provide for their basic needs and base additional distributions on the behaviors you wish to encourage.
According to Warren Buffett, the ideal inheritance is “enough money so that they feel they could do anything, but not so much that they could do nothing.” A carefully designed incentive trust can help you achieve this goal. If you have questions regarding the use of an incentive trust, please contact us.
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