By Laura Watts

If you own a business, you might have received a notice from your Secretary of State’s office informing you of your requirement to file a beneficial ownership report with the United States Department of the Treasury’s Financial Crime’s Enforcement Network in compliance with The Corporate Transparency Act enacted by Congress on January 1, 2021, as part of the National Defense Authorization Act.

If reading that causes you to scratch your head, you’re not alone. Many of our Myatt & Bell business clients have reached out with questions and concerns.

First, it is important to highlight that this is a federal law. Accordingly, the annual report that your business files with the state is not sufficient to meet this new mandatory federal requirement.

While there is no fee to file a beneficial ownership report (“BOIR”), the fine for failing to comply is a civil penalty of up to $500 per day. Consequently, this is not something you should ignore. Businesses established after January 1, 2024, are required to submit the BOIR to FinCEN within 90 days of their formation. Businesses formed prior to January 1, 2024, have until January 1, 2025 to complete this filing. Businesses formed after January 1, 2025, are required to submit the BOIR to FinCEN within 30 days of their formation.

You might be wondering, what is the purpose? In a nutshell, the Financial Crime’s Enforcement Network’s (“FinCEN”) primary mission is to safeguard the financial system from illicit use. The Corporate Transparency Act’s (“CTA”) reforms are intended to crack down on money laundering and other related illegal activities like terrorist financing, corruption, and tax fraud. To illustrate, many individuals form businesses to hold things such as a title to property, but do not otherwise carry-on significant business operations. These are often referred to as “shell companies.” Most shell companies are formed for legitimate purposes, and historically, the requirements to disclose the companies’ members have been lax, allowing the owners to remain anonymous. The CTA’s reforms require better disclosure of business owners to prevent bad actors from using shell companies in furtherance of various crimes. In other words, the federal government wants to know who you are, that you’re running a legal business, and that you are paying your taxes.

If you are saying, “Gee, I just don’t have time to deal with all of that,” we have good news for you: Myatt & Bell has you covered.

We will file the BOIR on behalf of your company, or companies, for $200 per LLC or $300 per corporation, for the first business and $50 for each additional business [1]

Get Help Today
Our team is ready to assist you. To get started:

• Existing Registered Agent Clients – please click here.
• All Other Business Clients – please click here.

[1] Additional fees may apply for businesses with more complicated ownership structures.

Estate Planning & Peace of Mind

Have you found yourself making excuses for why not to get your estate in order? Maybe you’re convinced that you really don’t need estate planning. If you have assets and loved ones, you need an estate plan. Having an estate plan that is right for you ensures your loved ones are taken care of and that the transition is as easy as possible.

Attend one of our complimentary estate planning webinars and see for yourself. Having your estate plan prepared and understanding the why’s behind the importance of estate planning can bring you the peace of mind you have been needing. Join us at our next Estate Planning Informational Webinar by clicking here.

From Our Clients

“Careful, thorough work. Very responsive and knowledgeable. Bonus points for a great disposition! We highly recommend Bryce Kaufman and the support staff at Myatt & Bell.” – Theresa E.

“We began working with Myatt & Bell when my mom wanted to update her will and create a trust (probably 10) years ago. She passed in 2021. We were well supported through the legal requirements of managing her estate, will and trust, before and after her passing. Some years earlier, we engaged them as our estate attorneys. With their guidance, I am confident that my children will be well protected when my time here ends.” – M.K.

Families choose Myatt & Bell to design their estate plans with honest optimism and meticulous attention to detail.

Do you have feedback for us?

Please continue giving us feedback about your experience with M&B. We want to make sure our clients are happy.

And, if you run into someone who needs help with a will or trust, please tell them about Myatt & Bell. Thank you!

By Attorney Bryce Kaufman

As we step into the new year, there are some important changes that could have a significant impact on your estate planning. Both the federal gift exclusion and the federal lifetime Estate Tax exemption have significantly increased, creating additional opportunities for individuals and couples navigating estate and tax planning.

Annual Gift Tax Exclusion on the Rise

One notable change is the increase in the federal gift tax annual exclusion. In 2023, the exclusion stood at $17,000 per individual or $34,000 for a married couple. In 2024, these numbers are seeing a boost to $18,000 per individual and $36,000 for married couples. This adjustment provides individuals more flexibility in gifting without triggering federal gift taxes. Gifts over the federal annual exclusion require the filing of a gift tax return, which will simply lower the federal estate tax exemption described below. As long as there is any remaining estate and gift tax exemption, they do not result in gift tax being paid by the donor.

Here in the Pacific Northwest, there is no gifting limit at the state level. That means that a gift above the federal gift tax annual exclusion has no negative ramifications on state-level estate tax, nor does anything have to be filed with the state. Lifetime gifts completely avoid state estate tax at death in Oregon and Washington. Oregon will tax an estate over $1,000,000, regardless of single or married, at a progressive rate of 10%-16%, while Washington will tax an estate over $2,193,000, regardless of single or married, at a progressive rate of 10%-20%. With such low state level estate tax, setting up a trust and lifetime gifts are extremely beneficial.

Changes in the Federal Lifetime Estate and Gift Tax Exemption

For those considering the long-term implications of estate planning, the federal lifetime estate and gift tax exemption amounts are crucial. In 2023, the exemption was $12,920,000 for an individual or $25,840,000 for a married couple. However, due to inflation, in 2024 these figures increased to $13,610,000 for individuals and $27,220,000 for married couples. Any amount over this exemption is taxed at 40%.

It’s important to note that these current exemption amounts were established in 2017 under the Tax Cuts and Jobs Act and are currently slated to sunset at the end of 2025. Without legislative intervention, the exemption amounts could see a significant reduction to $5,000,000 per taxpayer or $10,000,000 for a married couple, indexed for inflation. If Congress does not enact any changes before January 1, 2026, the federal estate and gift tax exemption amount will likely be approximately $6,800,00 per person, or $13,600,000 for a married couple.

For those who might be wondering about the urgency of these changes, it’s essential to understand that time is of the essence. The Internal Revenue Service (IRS) has made it clear that large gifts made before the end of 2025 will be “locked in” or “grandfathered” to utilize the higher estate and gift tax exemption, protecting individuals and couples from potential reductions in the future. For example, a married couple gifts a total of $20,000,000 over the annual exclusion in 2024. Since this amount is below the exemption of $27,220,000, there is no tax implications. Now let’s pretend the married couple passes away in 2026 and the tax exemption has decreased to $13,600,000. Even though they gifted $20,000,000 in 2024 ($6,400,000 over exemption), they were grandfathered in to the rules at 2024, saving the estate $2,560,000.

What about Income Tax?

It is important to factor in income tax planning and what is called a “step-up in basis.” A step-up in basis refers to the adjustment of the value of an asset for tax purposes when it is transferred from one person to another, typically upon death (inheritance) or as a gift. This adjustment is often extremely beneficial for the recipient as it can potentially eliminate any income tax.

Inheritance: When someone passes away and leaves assets to their heirs, the heirs generally receive a “step-up” in the basis of the inherited assets to their fair market value at the time of the decedent’s death. This means that the new basis for the heirs is not the original cost of the asset but its value at the time of the decedent’s death. This is advantageous because it can reduce the income tax liability if the heirs decide to sell the inherited assets in the future. This applies to any appreciated nonqualified asset such as property or stock that has been appreciated. If children inherit the family home and sell it shortly after the parent’s death, the only income gains they would pay, if any, is that on the appreciation from date of death to the date of sale.

Gifting: When someone gifts an asset during their lifetime, the recipient generally takes over the donor’s basis in that asset. This is known as a “carryover basis.” However, certain gifts, such as those subject to the gift tax, may trigger a step-up in basis. For instance, if the donor paid gift tax on the gift, the recipient may receive a step-up in basis. However, they do not receive a second step-up after the donor’s death.

Looking Ahead: The Importance of Planning

The looming sunset of the current federal exemption at the end of 2025 underscores the need for planning. Without proper planning, individuals and families could face considerable estate tax liability.

As we move further into 2024, staying informed about these changes and consulting with financial and legal professionals becomes crucial for effective estate and tax planning. The evolving landscape of federal tax policies emphasizes the need for individuals to be proactive in navigating their financial affairs and ensuring that their legacy is protected for future generations.

Finding Help

Myatt & Bell’s Estate Planning attorneys are here to help. Please give us a call today to get connected with our team.

Estate Planning & Peace of Mind

Have you found yourself making excuses for why not to get your estate in order? Maybe you’re convinced that you really don’t need estate planning. If you have assets and loved ones, you need an estate plan. Having an estate plan that is right for you ensures your loved ones are taken care of and that the transition is as easy as possible.

Attend one of our complimentary estate planning webinars and see for yourself. Having your estate plan prepared and understanding the why’s behind the importance of estate planning can bring you the peace of mind you have been needing. Join us at our next Estate Planning Informational Webinar by clicking here.

From Our Clients

“All of the staff were amazing and thorough. Information was presented in a manner that was understandable and clear.” – Stephen K.

“We selected Myatt & Bell to update our estate plan and associated documents. Consultations with Attorney Lindsey George were focused and professional. Asset worksheets were clearly explained and easy to work with. All documentation was exchanged electronically using the online Clio secure document system. Myatt & Bell provided a complete service resulting in an impressive package of legal documents correctly reflecting our desired outcomes. We will continue to return to them as updates are needed.” – Charles I.

Families choose Myatt & Bell to design their estate plans with honest optimism and meticulous attention to detail.

Do you have feedback for us?

Please continue giving us feedback about your experience with M&B. We want to make sure our clients are happy.

And, if you run into someone who needs help with a will or trust, please tell them about Myatt & Bell. Thank you!

By Attorney Bryce Kaufman

This month’s newsletter highlights an important change in Oregon’s estate tax law.

Senate Bill 498, signed into law earlier this year, went into effect on September 24, 2023, and introduces a new Oregon estate tax exemption for natural resource property, offering a valuable opportunity for Oregon residents. In short, Senate Bill 498 is meant to ease succession issues for family farm, forest, and fishing estates with a tax exemption worth up to $15 million.

Qualifying for the Exemption

Ownership of natural resource property does not automatically grant the estate tax exemption. To qualify for this exemption and reduce your estate tax burden, several conditions must be met:

Ownership Duration: The property must have been owned by the decedent for at least five years before their death.
Material Participation: During five years before the decedent’s death, either the decedent or a family member must have materially participated in the land for farming, forestry, or fishing purposes for at least 75% of the time.
Family Transfer: The property must be transferred due to the decedent’s death to a family member, who then must hold the property for five consecutive years after the decedent’s death.
Post-Death Participation: During five years after the decedent’s death, any family member must materially participate in the land for farming, forestry, or fishing business purposes for at least 75% of the time.

It is important to note that if the property is sold within five years of the decedent’s death, or if the material participation requirement isn’t met, there’s a provision for an additional tax. This additional tax is calculated as if the property had been part of the taxable estate.

Defining Key Terms

To ensure that you meet these requirements, it’s essential to understand key definitions:

Family Member: This broadly includes individuals within the third degree of relation, whether by blood, marriage, adoption, civil union, or domestic partnership, to another person.
Natural Resource Property: This encompasses property in Oregon used in the operation of a farm business, forestry business, or fishing business owned by the decedent at the time of their death. The full definition can be found in ORS 118.140 and includes a wide range of property types.
Materially Participate: This term is loosely defined and likely to evolve through future litigation and regulation. It currently means to engage in active management, as defined in section 2032A of the Internal Revenue Code, but it lacks a precise definition. While the Department of Revenue may adopt rules to clarify this definition, until then, or if ever, it is important that you and your family continue to work with your attorney to help ensure this requirement is met.

Choosing Between the Credit and the Exemption

SB 498 does not take away the existing credit against the Oregon estate tax for certain natural resource property under ORS 118.140.

Currently, farm families can use the credit to reduce their estate tax burden by up to $7.5 million, however, several conditions must be met to qualify. In part, Senate Bill 498 was designed to alleviate many of the hurdles to apply for the credit and expand who qualifies. Nevertheless, an estate can still either use the credit or the new exemption, but not both.

We’re Here to Help!

This new exemption presents an opportunity for qualifying Oregon residents to optimize their estate planning strategies and potentially reduce their estate tax liability in a significant way.

Be sure to consult with a qualified estate planning attorney at Myatt & Bell to explore how this new law can benefit your estate.

Estate Planning & Peace of Mind

Have you found yourself making excuses for why not to get your estate in order? Maybe you’re convinced that you really don’t need estate planning. If you have assets and loved ones, you need an estate plan. Having an estate plan that is right for you ensures your loved ones are taken care of and that the transition is as easy as possible.

Attend one of our complimentary estate planning webinars and see for yourself. Having your estate plan prepared and understanding the why’s behind the importance of estate planning can bring you the peace of mind you have been needing. Join us at our next Estate Planning Informational Webinar by clicking here.

From Our Clients

“All of the staff were amazing and thorough. Information was presented in a manner that was understandable and clear.” – Stephen K.

“We selected Myatt & Bell to update our estate plan and associated documents. Consultations with Attorney Lindsey George were focused and professional. Asset worksheets were clearly explained and easy to work with. All documentation was exchanged electronically using the online Clio secure document system. Myatt & Bell provided a complete service resulting in an impressive package of legal documents correctly reflecting our desired outcomes. We will continue to return to them as updates are needed.” – Charles I.

Families choose Myatt & Bell to design their estate plans with honest optimism and meticulous attention to detail.

Do you have feedback for us?

Please continue giving us feedback about your experience with M&B. We want to make sure our clients are happy.

And, if you run into someone who needs help with a will or trust, please tell them about Myatt & Bell. Thank you!

• Naming the Right Fiduciary in Estate Plans
• Get to Know Director John Courtney
• Complimentary Estate Planning Webinar

A Note from the President:

This month’s article highlights our Trustee service offerings through our affiliate company, First NW Fiduciary, Inc (“First NW”). We started First NW in response to the quantity of requests from our clients. One advantage of First NW is that we don’t provide investment services. This means that clients get to keep the same financial advisor that you’ve had during life.

We hope you enjoy learning more about the role a professional Trustee plays in estate planning and trust administration.

As always, please feel free to reach out with any questions.

Very Sincerely,
Justin R. Martin

Naming the Right Fiduciary in Estate Plans

With an estate planning legacy dating back to 1960, Myatt & Bell, P.C. has drafted thousands of wills and trusts. Based on the age of our firm, this also means that we have sadly witnessed clients becoming incapacitated and passing away.

Throughout the decades, we are often asked about the role a fiduciary plays in estate planning and trust administration. A fiduciary is a person or an institution that has an ethical and legal responsibility to provide the best form of care and loyalty to the one who has named them as such in their estate plans.

When you create a living trust, if you are healthy and capable, generally you and/or your spouse will act as initial trustee(s). But deciding who to name as successor trustee upon your disability or death can be a difficult decision. Adult children, family members, or friends may be willing and able to take on this responsibility, but if not, you may want to consider hiring a private fiduciary.

Here are some factors to consider when deciding who to name as trustee or successor trustee:

• Expertise & Experience
• Time & Availability
• Impartiality & Objectivity
• Trustworthiness & Reliability
• Cost

The responsibilities of a trustee will vary depending on the specific terms of the trust, but they generally involve managing and investing trust assets, distributing income or principal to beneficiaries, filing necessary tax returns, maintaining accurate records, and providing regular reports to the beneficiaries. They must act in the best interests of the beneficiaries, exercising a duty of care, loyalty, and impartiality.

To help flush out a fiduciary’s role in greater detail is First NW Fiduciary Trust Officer, Laura Watts, with four real-world scenarios:

1. My bank is named as successor trustee in my trust, but I was just informed that I don’t have enough assets in trust to qualify for the bank’s trust services. What other options do I have?

This is a common problem. Often professional trustees, like banks, will not handle trusts with assets below the $1 million or even the $2 million range. Having a family member step in is a good alternative to a bank, where a family member is fiscally responsible and is willing to manage a loved one’s estate. This may even be a child that is old enough (or will soon be) that is willing and able to handle this responsibility.

If a child or family member cannot be appointed as successor trustee due to age, financial responsibility, or phase of life, a professional trustee such as First NW Fiduciary, Inc. (First NW), is a great option. First NW has the training, expertise, and time to handle trusts of all sizes and complexity. Unlike a bank, when you or your beneficiaries have questions, you won’t speak to a machine and dial multiple extensions to get through to a live person. With First NW, you can expect nothing less than the white glove service a small office provides, and First NW comes with the knowledge and expertise of a large institution without the added hassle and high fees of a bank.

2. My husband and I have a blended family. I think my son would do a great job as trustee, but he doesn’t get along with his half-siblings. What do you suggest we do?

No matter how straight forward your estate plan is, handling a parent’s estate can cause hard feelings, resentment, and distrust, even among the closest of family members. Blended families often present even greater challenges and worry among beneficiaries. A private fiduciary, like First NW for example, offers a neutral-third party alternative.

The professional fiduciary’s job is to act objectively to carry out the trust’s instructions without getting caught in family disagreements. When and if differences and concerns arise, we have the training to mediate between family members to help avoid disputes from blowing up and potentially leading to lengthy and expensive legal actions down the road. Lastly, having a professional fiduciary helps beneficiaries feel heard and eliminates any fear of family history getting in the way of the administration process.

3. My partner passed away years ago and I don’t have any children or close family members. What are my options if I become incapacitated?

Hiring a private fiduciary like First NW offers you the peace of mind to know that someone is ready to step in when you are no longer able to manage your finances. We are obligated by law to act solely in your best interest. We will work with a team of professionals that you choose or hire well-vetted and trusted professionals to coordinate your personal care and physical safety. We will make sure your money is safe, invested prudently, and being spent how you directed in your estate plan.

4. I don’t want to burden one of my kids with handling my estate when I pass away, but I hear that hiring a private fiduciary is very expensive.

You likely hire professionals like an accountant to file your taxes, a financial advisor to invest your assets, an attorney to provide you with legal advice, or a hair stylist to do your hair. Even the most basic trust can be time-consuming and difficult to administer, and often requires the assistance of an attorney.

An untrained fiduciary may not understand the complexity involved and quickly become overwhelmed, especially if he or she already has a full-time job and/or kids to care for. Further, a fiduciary is responsible for adhering to their duties and managing estates according to relevant law whether they are aware of the requirements or not. Mistakes or neglect can lead to costly legal actions by dissatisfied beneficiaries. Unlike many professional services that charge hourly, First NW’s fees are based on a percentage of the assets in your trust. The fee schedule is published, and beneficiaries are required to be notified of any upcoming fee changes. More importantly, we have the requisite knowledge and expertise to help avoid expensive and undue errors that frequently occur with non-professional trustees. Hiring a professional fiduciary may seem expensive, but when a child cannot take on the added burden it brings peace of mind to know the process is being handled in a hassle free and professional manner.

If you would like more information, please visit www.firstnwfiduciary.com or give us a call today. Laura, and team, are ready to help!

John Courtney, Director of Finance

Tell us something fun about you: I’m not fun, I’m an accountant.

Also, I met the love of my life while taking a bite out of a cheeseburger. Literally, found a note with her name/number between bun and melted cheese. Best drive thru order ever!

What are you currently reading? The Making of Another Major Motion Picture Masterpiece, by Tom Hanks.

What is your all-time favorite movie or book? Elf!, Happy Gilmore, Talladega Nights, Austin Powers … are you feeling a movie theme yet? Most recent top pick would be Phantom of the Open, a must-see true story. As for favorite books, Death, Taxes and Leaky Waders; Who Moved My Cheese? and Five Dysfunctions of a Team.

What is your favorite food? Fish and Chips from Cap’n Yoby’s in Kelso, WA (hint: cheeseburger w/paper)

What do you like to do just for fun? Not complete questionnaires.

Fish, golf, hike, cycling, running, spending time with my lovely wife, going to Thorn games. (Sorry Timbers, you fall and whine way too much.)

Most memorable place you have vacationed? Cycling eight days through Ireland. Land of the Gingers!

BBQ Chicken Recipe*

Barbecued chicken isn’t, really: It’s grilled rather than smoke-roasted at low temperature. But it requires a similar attention to technique. You’ll want to move the pieces around on the grill to keep them from burning, and flip them often as well. Cooking barbecued chicken benefits from a basting technique used by the chef and outdoor cooking maven Adam Perry Lang, who thins out his sauce with water, then paints it onto the meat he’s cooking coat after coat, allowing it to reduce and intensify rather than seize up and burn.

Ingredients
Yields 6 to 8 servings

• 1 cup barbecue sauce (see suggested recipe)
• 6 to 8 chicken legs (drumsticks and thighs) skin-on, bone-in, about 3½ to 4 pounds
• Kosher salt and black pepper, to taste

Step 1: Build a fire in your grill, leaving one side free of coals. When coals are covered with gray ash and the temperature is medium (you can hold your hand 5 inches above the coals for 5 to 7 seconds), you are ready to cook. (For a gas grill, turn one of the burners down to low or off, lower cover and heat for 15 minutes.)

Step 2: Meanwhile, combine barbecue sauce with 1 cup water and stir to combine. Set aside.

Step 3: Sprinkle the chicken pieces generously with salt and pepper, then put them on the grill directly over the coals and cook for about 15 minutes, turning once every 5 minutes or so, and brushing with the thinned barbecue sauce. When the chicken skin starts to crisp and darken, move the pieces to the cooler side of the grill and let them cook for 15 to 20 minutes more, or until a peek inside shows that the meat no longer has any red at the center.

Step 4: Move the chicken back onto the hot side of the grill and baste with sauce again, turning the meat a few times. Remove to a warmed platter and serve.

*Source: New York Times Cooking

Estate Planning & Peace of Mind

Have you found yourself making excuses for why not to get your estate in order? Maybe you’re convinced that you really don’t need estate planning. If you have assets and loved ones, you need an estate plan. Having an estate plan that is right for you ensures your loved ones are taken care of and that the transition is as easy as possible.

Attend one of our complimentary estate planning webinars and see for yourself. Having your estate plan prepared and understanding the why’s behind the importance of estate planning can bring you the peace of mind you have been needing. Join us at our next Estate Planning Informational Webinar by clicking here.

From Our Clients

“Very professional, detail(s)-oriented, client first attitude, easy to do business with and throughout the process.” – Frederick V.

“We have such a great experience with Myatt & Bell, P.C. They walked us through the entire estate planning process in a clear and precise manner that helped us understand every step. Our questions were answered with patience and clarity and in the end everything went quite smoothly. We are grateful to have this taken care of and to know that our family will be taken care of. I highly recommend Myatt & Bell, P.C. for your estate planning needs.” – Amy P.

Families choose Myatt & Bell to design their estate plans with honest optimism and meticulous attention to detail.

Do you have feedback for us?

Please continue giving us feedback about your experience with M&B. We want to make sure our clients are happy.

And, if you run into someone who needs help with a will or trust, please tell them about Myatt & Bell. Thank you!

• Common Misconceptions About Estate Planning & How to Handle Them
• Get to Know Attorney Crystal Lewis
• Complimentary Estate Planning Webinar

Common Misconceptions About Estate Planning & How to Handle Them

By Melissa Graveson, Attorney

When we think of estate planning, we think of making a plan for how the house, bank accounts, cars, and other assets should be distributed after we die. Often this means achieving peace of mind by clearly laying out the division of property so every family member is cared for as intended.

Unfortunately, several misconceptions remain about what estate planning and the death administration process actually entail. In order to make the plan that bests suits you, your family, and ultimately preserves your legacy, it is critical to understand the planning and administration process.

By understanding the seven common misconceptions that follow, you will be better suited to make informed decisions about what kind of estate plan you need.

Misconception #1: A will is all I need and it avoids probate
This common misconception has the potential to derail your planning and leave a lot of questions unanswered. Not only does a will not avoid probate, having a will nearly guarantees that your assets will be subject to a months-long probate process. Further, a will takes effect after death but has no use while we’re alive.

Creating a will or trust is the foundation of an estate plan, but other documents are needed to address end of life care. For example, a trust can indicate the intent to stay at home for as long as possible, an advance directive ensures last medical wishes are honored, and a power of attorney allows trusted individuals to assist with bills and finances when the planner is no longer able to manage their finances.

A good estate plan includes all of these documents and more, ensuring that a plan is in place to address all end of life concerns.

Our loved ones want to carry out our wishes, but when we do not execute documents to guide them, they are left at a loss for what to do and don’t have the authority to act.

Misconception #2: I can download a will or trust that suits my needs
Online forms have certainly improved. However, these forms will never be able to match the advice and guidance an experienced estate planning attorney can provide for your unique circumstances. Online forms may put a rough estate plan in place but are not capable of analyzing the intricacies of your estate and advising on executors, taxes, and other planning decisions.

Hiring a Myatt & Bell attorney to assist guarantees peace of mind that your estate plan is in place and is carried out as intended. Without an attorney you are left guessing as to whether your plan will operate as intended. Estate plans largely only come into operation after the planner is no longer able to make any desired changes. The reality is that you can’t afford to rely on an estate plan that you don’t know will work until it’s too late.

Misconception #3: I only need to make an estate plan when I’m retired and have a lot of assets
Unfortunately, life does not come with any guarantees and tragedies can happen without a moment’s notice. Waiting to make an estate plan means risking losing the chance to clearly designate caretakers for minor children or beneficiaries for assets.

It’s important to make a plan – even in early adulthood – because doing so is the only way to ensure loved ones actually receive assets designated for them. Further, and if you have minor children, it is even more critical to put a plan in place so they are cared for financially and guardians are nominated.

Without an estate plan the intestacy laws take effect and may create unintended consequences for distributions.

Misconception #4: A power of attorney can be used after death to pay bills and access accounts
A power of attorney is a document that takes effect during life so a named agent can assist with asset management and bill pay. Although it’s a key aspect of any estate plan, the power of attorney is no longer usable after someone dies. A will or trust is needed to direct management of your assets after death.

Misconception #5: A professional executor is expensive and unnecessary
The goal of estate planning is to clearly outline your wishes and appoint someone trustworthy and capable of carrying them out. Making the determination of who should carry out the estate plan is complicated, and family members aren’t always the best people for the job.

A professional fiduciary is helpful and even necessary in a variety of circumstances. For example, not all kids are willing or able to manage their parent’s estate. It is critical that the named trustee is able and willing to take on the job. Often kids are not in a place of their lives to take on the added burden of administering the estate. Further, if kids are not financially responsible with their own assets, they won’t be able to manage your estate and make distributions.

One goal of estate planning is to lay out a clear plan so that there are no questions and siblings aren’t left fighting. The reality is that in some circumstances an estate plan is best suited to the appointment of a neutral trustee to further preserve the sibling bond rather than putting one child in a position of authority over the others if this may cause conflict between them.

An estate plan is only as good as the person named to carry it out. Professional trustees have years of experience in administering estates smoothly and efficiently. When children or other beneficiaries are not in a place to take on this role it is a gift to appoint someone who can manage these tasks while the family moves through the grieving process.

Misconception #6: After a loved one passes away, I only have to distribute their assets
Distributing assets and receiving a last gift is an important and special aspect of administering an estate plan. However, this is the last step, and it typically occurs several months after a loved one passes away.

The trustee is required to manage and wrap up all aspects of the estate from paying bills and taxes to identifying beneficiaries and assets before distributions can be made. Without legal assistance, this is often an overwhelming and unclear process where the trustee risks failing to comply with the rules for managing an estate. So even if a trustee does not know the rules, they are still held liable for any noncompliance.

Working with an attorney will ensure the trustee manages the estate as intended and is aware of their fiduciary responsibilities.

Misconception #7: Estate Planning is too complicated, so I’ll just make my wishes known verbally
The estate planning process may feel overwhelming or even unnecessary to some. These feelings can be further validated if it seems like everyone gets along and will know how to carry out your wishes without any sort of written documentation.

Unfortunately, this is not an effective strategy because oral communications are not a legally recognized means of creating an estate plan. A verbal plan means probate will be required, and the estate will be managed and distributed in accordance with intestate laws that may not align with your intentions.

If the family gets along well and understands your wishes clearly, they may choose to receive the assets according to the Court and then redistribute them to the intended individuals. This is the best possible scenario and still requires Court involvement and expense that is ultimately costly and avoidable. Further, this strategy may create undesirable tax consequences, and does not direct the assets to our intended beneficiaries.

When a person passes it becomes readily apparent whether the planner’s wishes were well understood by the family. Often there is confusion even with an estate plan is in place ranging from whether Mom intended the heirloom China set to go to one child or another, or whether Dad really meant to distribute more of the estate to one child or the other. This confusion is compounded by grief but is easily solved with a written estate plan in place.

We’re here to help!
Having an estate plan is the only way to ensure your wishes are carried out as intended.

Myatt & Bell, P.C. is here to help ease the burden, clear up any confusion, and customize an estate plan with your wishes placed front and center.

Crystal Lewis, Attorney

Please tell us something fun about you:
I wanted to let my children eat the cookie dough without worry that they would catch a disease, so we raise a few healthy chickens and I know there is no danger in letting the kids eat the eggs raw.

What are you currently reading?
An ancient history textbook I found for free on-line.

What is one of your favorite movies?
Day and Night – equal parts silly, action, mystery, sentiment and romance.

What is your favorite food?
I was born in May so of course my favorite food is strawberry shortcake.

What do you like to do just for fun?
For fun, I golf with my husband or my daughter. We have six kids, but only one likes to golf.

What do you enjoy doing in your spare time?
In my spare time, it’s all about home and family.

Strawberry Shortcake Recipe*

Yield: 4 generous servings

• 2 pints ripe, well-rinsed strawberries
• ½ cup sugar, or more to taste
• 4 cups flour
• 3 tablespoons sugar
• ¼ teaspoon salt
• 5 teaspoons baking powder
• 1¼ cups butter
• 3 cups whipping cream
• ¼ teaspoon vanilla extract

Step 1: Pick over and hull strawberries. Cut in half or slice, depending on size. Gently crush about a quarter of the berries with a fork to release their juices. Mix with remaining berries and the ½ cup of sugar, adding more sugar if necessary. Set aside, covered, for about half an hour to develop flavor.

Step 2: Preheat oven to 450 degrees.

Step 3: Into a large mixing bowl, sift together flour, 3 tablespoons sugar, salt and baking powder. Add ¾ cup of softened butter, and rub into dry ingredients as for pastry. Add 1¼ cups cream, and mix to a soft dough. Knead the dough for one minute on a lightly floured pastry board, then roll it out to about ½-inch thickness. Using a 3-inch biscuit cutter, cut an even number of rounds – 2 rounds per serving.

Step 4: Use a little of the butter to grease a baking sheet. Place half the rounds on it. Melt remaining butter and brush a little on the rounds; place remaining rounds on top. Bake for 10 to 15 minutes, or until golden brown.

Step 5: Remove from the oven, and pull shortcakes apart. Brush the insides with some of the remaining melted butter.

Step 6: Beat remaining cream until it thickens. Add vanilla. Beat again just until thick.

Step 7: Place a bottom half of a shortcake on each plate. Top with a generous spoonful of berries. Cover with a top half, add a few more berries, and top with whipped cream. Serve immediately.

Tip: Extra shortcakes may be frozen, but they should be warmed before using. They are also good toasted for breakfast or tea.

*Source: New York Times Cooking

Estate Planning & Peace of Mind

Have you found yourself making excuses for why not to get your estate in order? Maybe you’re convinced that you really don’t need estate planning. If you have assets and loved ones, you need an estate plan. Having an estate plan that is right for you ensures your loved ones are taken care of and that the transition is as easy as possible.

Attend one of our complimentary estate planning webinars and see for yourself. Having your estate plan prepared and understanding the why’s behind the importance of estate planning can bring you the peace of mind you have been needing. Join us at our next Estate Planning Informational Webinar by clicking here.

From Our Clients

“We have such a great experience with Myatt & Bell, P.C. They walked us through the entire estate planning process in a clear and precise manner that helped us understand every step. Our questions were answered with patience and clarity and in the end everything went quite smoothly. We are grateful to have this taken care of and to know that our family will be taken care of. I highly recommend Myatt & Bell, P.C. for your estate planning needs.” – Amy P.

“Covers all bases, easy to communicate with and friendly. What more could you ask?” – Serena K.

Families choose Myatt & Bell to design their estate plans with honest optimism and meticulous attention to detail.

Do you have feedback for us?

Please continue giving us feedback about your experience with M&B. We want to make sure our clients are happy.

And, if you run into someone who needs help with a will or trust, please tell them about Myatt & Bell. Thank you!

• Firm Announcement: We are expanding!
• Learn How to Secure Your Business with an Estate Plan
• Complimentary Estate Planning Webinar

Dear M&B Family,

We are excited to announce that Myatt & Bell, P.C. is expanding!

Myatt & Bell recently acquired Washington-based estate planning law firm, Salmon Creek Law Offices. This opportunity represents a pivotal point in our firm’s history as we expand our service offerings into the Pacific Northwest, underlining our commitment to delivering personalized, white-glove estate planning and trust administration services to clients located throughout the region.

With offices now in Washington and Oregon, our multiple-attorney team practices in the areas of estate planning, business and tax, probate and trust administration, trust and estate litigation, guardianship and conservatorship matters, elder law, as well as Medicaid Planning.

Please feel free to share the good word that we are now available to serve those in Washington State, and who are looking for legal services that are designed to build, strengthen, preserve, and protect families for generations. As a reminder, all Myatt & Bell attorneys follow the same estate planning processes, and so we look forward to matching new clients with the right attorney for their specific needs.

Thank you for your continued trust and confidence in Myatt & Bell. We remain grateful to you and our M&B Family!

Very Sincerely,
Justin R. Martin
President

Secure Your Business with an Estate Plan

By Attorney Bryce Kaufman

In last month’s issue, we discussed the importance of business formation and which legal structure might be right for your business. This month, we’re diving into the critical interplay between estate planning and business planning.

The Intersection of Business Planning and Estate Planning
Business planning and estate planning are closely related and should be considered together to ensure that your assets are protected, your taxes are minimized, and your family and business interests are taken care of.

In general, having a comprehensive business succession plan in place from the beginning sets proper expectations. It removes elements of uncertainty and the potential for surprise among your owners, partners, and managers. Creating a plan early in the life of your business also means that should any unforeseen event occur, your business will be less impacted by loss or incapacity.

Key Elements of a Business Succession Plan
A critical aspect for all business owners is to plan for what will happen to their business if they become incapacitated or pass away. To plan for incapacity, all business owners must have a Power of Attorney. A Power of Attorney is a legal document that allows someone else (an “agent”) to make decisions and act on another person’s behalf. You may choose to have two separate Powers of Attorney, one for personal matters and the other solely for business matters. Whoever you appoint as your agent in the Power of Attorney needs to be someone who you trust and can run your business, such as negotiating contracts, accessing financial accounts, placing orders, and writing checks.

Business succession planning ensures that your business continues to run smoothly without interruption and that your heirs are taken care of. This involves creating a comprehensive plan that outlines how the business will be transferred, who will take over the business, and how the transfer will be funded. The plan can involve:

• Selling the business outright.
• Transferring ownership gradually.
• Creating a plan for the orderly dissolution of the business.

The goal is to ensure the business’s long-term viability and protect its stakeholders’ interests.

When identifying potential successors, consider who is best suited to take over the business, whether a family member, a key employee, or an external buyer. Assessing each potential successor’s skills, experience, and commitment to the business is vital. If you plan on leaving your business after your death to one or more co-owners, a buy-sell agreement can ensure unintended beneficiaries, including spouse or children, do not unintentionally become an owner.

When transferring ownership to family members or business partners, setting up one or more trusts can help protect assets and avoid any tax consequences. Ensuring that your personal assets are not subject to the liabilities of your business requires proper business and trust formation. When set up correctly, your personal assets are protected from potential creditors and lawsuits. Then when your business is passed onto your family, this same protection is also in place for them.

The Role of Tax Planning
Tax planning is a large part of any succession plan. Minimizing any potential state and federal tax for your estate and your heirs must be considered. Setting up trusts during your lifetime, such as Intentionally Defective Grantor Trust (IDGTs), Grantor Retained Annuity Trust (GRATs), or Grantor Retained Unitrust (GRUTs), can help minimize tax consequences. Further, if the business or assets in trust continue to grow, the appreciation will not be subject to estate taxes. If taxes are unavoidable or terms of a buy-sell require liquid assets, setting up an irrevocable life insurance trust (ILIT) can also be beneficial. The main benefit of an ILIT is that the life insurance proceeds are not considered part of the grantor’s estate for tax purposes but still provide money to pay for expenses.

Charitable giving can be an effective business and estate planning strategy. For example, making donations of company stock to a nonprofit organization during your life or setting up a charitable remainder trust. A Charitable Remainder Trust (CRTs) is a type of trust that allows the donor to provide income to themselves or other beneficiaries for a specified period, after which the remaining assets in the trust are distributed to a designated charity. CRTs offer several benefits to business owners, including a charitable income tax deduction for the value of the remainder interest that will eventually pass to the charity and the ability to avoid capital gains taxes on appreciated assets transferred to the trust. Additionally, CRTs allow donors to make a meaningful charitable gift while still providing income for themselves or their designated beneficiaries.

These are just a few tax planning strategies that can help minimize tax liability.

Finding Help
The intersection of estate planning and business planning is critical. It affects how your business will continue operating and how your estate is managed after your death. It’s important to work with an experienced attorney here at Myatt & Bell who can help you navigate these complex issues.

We’re ready to help!

Estate Planning & Peace of Mind

Have you found yourself making excuses for why not to get your estate in order? Maybe you’re convinced that you really don’t need estate planning. If you have assets and loved ones, you need an estate plan. Having an estate plan that is right for you ensures your loved ones are taken care of and that the transition is as easy as possible.

Attend one of our complimentary estate planning webinars and see for yourself. Having your estate plan prepared and understanding the why’s behind the importance of estate planning can bring you the peace of mind you have been needing. Join us at our next Estate Planning Informational Webinar by clicking here.

What Clients Are Saying:

“We were needing to update our trust. Myatt & Bell, P.C. was referred to us by a friend and it couldn’t have been a better referral. The office staff greeted you warmly and we were made to feel very relaxed. The attorney handling our trust presented herself confidently, yet very down to earth. We felt we had engaged with someone who was extremely knowledgeable about trusts, kind, yet forthright in leading us to be able to make the best decisions for our trust. We were extremely satisfied with the outcome of our trust and very pleased and thankful for the input, teaching and understanding of our attorney. Their rates are reasonable and worth the cost when you see your end product.” – Amy R.

“An excellent experience. Thorough, organized and professional. Justin Martin is a top-notch attorney. We would recommend this office to anyone.” – Michael M.

Families choose Myatt & Bell to design their estate plans with honest optimism and meticulous attention to detail.

Do you have feedback for us?

Please continue giving us feedback about your experience with M&B. We want to make sure our clients are happy.

And, if you run into someone who needs help with a will or trust, please tell them about Myatt & Bell. Thank you!

• Starting a business? Learn more about the different legal structures
• Get to Know Our Team
• Recipe Spotlight
• Complimentary Estate Planning Webinar

Starting a business? Learn about the different legal structures for your business and how to best secure it

By Bryce Kaufman, Attorney

Are you looking to protect your assets or start a new business? Your business structure can affect how much you pay in taxes, your personal liability, paperwork and meeting requirements, and your ability to raise money. Making the right choices in the early stages of business formation can help you avoid challenges later.

You must choose a business structure before registering your business with the state. Most business structures require you to get a tax identification number and file for the appropriate licenses and permits. Each type of structure has its own benefits and considerations that are affected by the business’ size, number of owners and employees, and other variables.

An overview of some of the different types of business structures:

Sole Proprietorship

Suppose you are currently operating a business and have not registered as any other type of business. In that case, you likely are considered a sole proprietorship. A sole proprietorship is the simplest and most straightforward business type. However, a sole proprietorship does not create a separate entity. Under a sole proprietorship, your business assets and liabilities are not separate from your personal assets and liabilities.

Partnership

A partnership is the simplest structure for two or more individuals to own a business. There are two primary forms of a partnership, limited partnerships (LP) and limited liability partnerships (LLP). A partnership can be a good choice for professionals and before forming a more formal business.

• A limited partnership (LP) will limit some partners’ personal liability but leave one general partner with unlimited liability. The general partner must also pay self-employment taxes, where all other partner’s profits pass through to personal tax returns.
• A limited liability partnership (LLP) is where every partner has a limited personal liability for the debts of the partnership and generally will not be liable for the damages of the other partners.

Corporations

There are several types of corporations, including C Corporation, S Corporation, B Corporation, Close Corporation, and Nonprofit Corporation. C and S Corporations are discussed below, but feel free to talk with at Myatt and Bell if a B Corporation, Close Corporation, or Nonprofit Corporation is appropriate for you and your business.

• C Corporation: A C Corporation, or as most people know as a corporation, is its own legal entity, separate from its owners. Owners of a corporation are called shareholders who own stock in the corporation in exchange for money or other assets. Distributions or payments to the shareholders are called dividends. As a corporation is its own legal entity, it has its own assets and debts, separate from the shareholders. However, a corporation has disadvantages such as high expense to start, complex regulations and formalities, and double taxation. Double taxation occurs because the profit of a corporation is taxed to the corporation when earned, and the shareholder is then taxed when dividends are distributed.
• S Corporation: An S Corporation eliminates the double taxation issue of a C Corporation. An S Corporation has flow-through taxation allowing profits and losses to pass through to the shareholders. Otherwise, an S corporation operates like an ordinary C corporation with the same advantages and disadvantages. S corporations also have limitations, such as the number of shareholders and who or what entities can be shareholders.

Limited Liability Company (LLC)

The Limited Liability Company (LLC) is the goldilocks for many business owners between sole proprietorship/partnership and corporations. An LLC allows an individual to shield personal assets from business liability while maintaining flexibility. Another advantage of an LLC is pass-through taxation, allowing profits and losses to pass through to your personal income without facing corporate taxes. An LLC can also be structured so each member owns and controls equal parts of the business or set up such that the LLC is managed by some members with different control and/or profit to other members.

Choosing the best business structure for you can be challenging enough. Properly setting it up after you have chosen is another challenge altogether. Attorneys at Myatt & Bell can help you navigate what is best for you and execute a plan.

Secure Your Business with an Estate Plan

Business formation issues are important; and, equally important is business succession planning.

We will be talking more about business succession planning in our next issue, so please be on the lookout. But in general, having a comprehensive business succession plan in place from the beginning sets proper expectations. It removes elements of uncertainty and the potential for surprise among your owners, partners, and managers. Creating a plan early in the life of your business also means that should any unforeseen event occur, your business will be less impacted by loss or incapacity.

Finding Help

Myatt & Bell is here to help. Our attorneys advise clients on questions of business formation and are ready to start your business succession planning today.

Judy Gibson, Sr. Paralegal

What are you currently reading?

Killing the Legends, which is about the lives, legacies and tragic deaths of Elvis, Lennon and Ali.

What is your all-time favorite book or movie?

Doctor Zhivago because it was the first movie my husband, Jer, and I watched when we were dating.

Most memorable place you have vacationed?

I visited Maui once with my husband and some friends. We all flew into Kaanapali with our bicycles in tow! We bicycled around the island, with the men in our group alternating between riding and hauling a bicycle trailer behind them with our clothes, snacks, and water. We started in Kaanapali and biked 20 to 30 miles a day (our longest day was 70 miles!), and stopped at various Bed & Breakfasts along the way. We eventually made it around the entire island and it was an incredible experience.

__________________

My Dad’s Infamous Pancake Recipe

Ingredients & Instructions

• 1 heaping cup of flour, plus 1 tablespoon
• 1 tsp of sugar, ½ tsp salt
• 1 tsp baking soda
• 1 egg yolk
• 3 tablespoons of shortening melted (mom always used bacon grease and it is the best)
• 2 cups buttermilk
• Mix flour, sugar, salt, backing soda and egg yolk with buttermilk until thoroughly mixed and add melted shortening.
• Beat egg white until stiff and fold into batter.
• Enjoy!

Estate Planning & Peace of Mind

Have you found yourself making excuses for why not to get your estate in order? Maybe you’re convinced that you really don’t need estate planning. If you have assets and loved ones, you need an estate plan. Having an estate plan that is right for you ensures your loved ones are taken care of and that the transition is as easy as possible.

Attend one of our complimentary estate planning webinars and see for yourself. Having your estate plan prepared and understanding the why’s behind the importance of estate planning can bring you the peace of mind you have been needing. Join us at our next Estate Planning Informational Webinar by clicking here.

From Our Clients

“We always get great service, all of our questions answered. The staff are polite courteous attentive and pleasant. Most importantly, their fees are very reasonable and we never go away feeling like we got gouged. We always recommend this firm to friends when they are seeking good counsel and estate planning needs.” – Linda D.

“We have never been anything other than delighted with the professionalism, customer service, expertise and engaging culture of this estate planning legal practice. Check out their website for a calendar of regularly presented online introductions to estate planning basics. I’ve participated in these webinar a couple of times since I understood more every time I listened in.” – Sandy N.

Families choose Myatt & Bell to design their estate plans with honest optimism and meticulous attention to detail.

Do you have feedback for us?

Please continue giving us feedback about your experience with M&B. We want to make sure our clients are happy.

And, if you run into someone who needs help with a will or trust, please tell them about Myatt & Bell. Thank you!

• Greetings from Myatt & Bell President, Justin Martin
• What’s new? 2023 Estate & Gift Tax Updates
• Get to Know Our Team
• Recipe Spotlight
• Complimentary Estate Planning Webinar

Happy New Year, M&B Family!

The Internal Revenue Service recently released the annual inflation adjustments for tax year 2023, which include welcome increases for wealth transfer tax planning.

Gifting can help you reduce estate taxes while providing your beneficiaries with immediate use and enjoyment of transferred assets. Gifts can also be used to facilitate financial aptitudes of beneficiaries and foster a generational family purpose. Although the annual gift tax exclusion is one way to do so, it remains prudent to double check with legal counsel beforehand to ensure there aren’t any unforeseen pitfalls in your gifting initiatives, as well as to maximize the gift opportunities.

In the meantime, please read the enclosed article for more information about this year’s tax adjustments and what it may mean for you.

Very Sincerely,
Justin R. Martin
President, Myatt & Bell, P.C.

What’s new? Estate & Gift Tax Adjustments, 2023

By Andrew D. Ginis, Attorney and LL.M. in Taxation

The IRS recently released 2023 inflation adjusted estate tax and gift amounts.

The 2023 annual gift tax exclusion increased to $17,000 per beneficiary (the 2022 exclusion was $16,000). This exclusion is the amount that can be given to each beneficiary before the gift needs to be reported on Form 709 – United States Gift (and Generation-Skipping Transfer) Tax Return.

Annual exclusion gifts can be a good way to transfer wealth over time with minimal costs and no use of a person’s lifetime estate and gift tax exemption. For example, a married couple can each gift $17,000 to each of their children and grandchildren this year. That adds up to $136,000 for a couple with two children and two grandchildren (2 spouses x 2 children x 2 grandchildren x $17,000)! As mentioned in M&B Monthly October 2022 issue, Oregon has no gift tax and federal gift tax is due only after a person’s lifetime estate and gift tax exemption is used.

The 2023 lifetime estate and gift tax exemption increased to $12.92 million per person (the 2022 exemption was $12.06 million). This exemption is the amount (including previously taxable gifts) that is exempt from estate tax at person’s death. As mentioned in the October 2022 issue, the lifetime estate and gift tax exemption is expected to decrease significantly in 2026, making now a great time to use your increased lifetime exemption before it’s gone!

Congress also recently made changes to the Setting Every Community Up for Retirement Enhancement (SECURE) Act, aka “SECURE 2.0”.

SECURE 2.0 highlights include:

• Raising the Required Minimum Distribution (RMD) age to 73 for those born 1951-1959 and 75 for those born 1960 or later,
• Permitting limited transfer of unused 529 funds to the beneficiary’s Roth IRA,
• Eliminating RMD’s for employer-sponsored ROTH 401(k), 403(b), and 457(b) plans,
• Increasing catch-up contribution limits and indexing for inflation, Creating new account types including Starter 401(k)’s and SEP/SIMPLE Roth IRA’s,
• Permitting employers to make matching contributions to ROTH accounts,
• Reducing the penalties for missed RMDs,
• Allowing student loan borrowers to receive employer contributions even when they don’t make matching employee contributions, Additional options for surviving spouses, and
• Indexing Qualified Charitable Distributions (QCD’s) amounts for inflation.

Note that some of these changes are not effective until 2024 or later.

If you would like to talk about the impact of these changes and the new planning opportunities they present, please reach out to us!

Finding Help

Myatt & Bell, P.C. has decades of experience assisting clients in creating estate plans.

Our team of attorneys will answer your estate planning questions and identify some techniques that may be available to lower your tax obligations, including two common tools to control and access assets that have already been gifted (IDGT & SLAT).

Jennifer Jackson, Director of Operations

If you were “read like a book,” what would your book look like?

It would probably be soft cover because I am adaptable, laid back, and often go with the flow. I’m highly malleable in different situations.

My book would have a table of contents in the front, a table of contents at the start of each chapter, and a checklist at the chapter’s end! That way, I could easily check off boxes after accomplishing tasks, learning lessons, and completing various chapters.

Finally, my book would have a lot of beautiful colors and artwork to express my creative side.

What is your favorite thing to do for vacation?

My husband and I LOVE cruising anywhere tropical. We love that we can see more than just one place we’ve never seen before.

We love that there is a ton of things to do during a cruise and its destination stops, but also appreciate the convenient permission to do nothing. What’s more, we love all the food choices and experiences afforded by travel. We love sitting on beaches, taking in the variety of blues and teals of the ocean, laughing, and simply enjoying each other’s company.

Something many people don’t know about you?

My biological father is 100% Sicilian and descends from a long family lineage of Sicilians. I am the first of the line to be born without a Sicilian mother. Because of my heritage, it has been a life-long dream to go to Sicily and see the culture my ancestors are from. I plan to do so in 2025, God willing.

__________________

Jennifer’s Low-Carb Zuppa Toscana Soup

Ingredients

• 1 lb. Jimmy Dean hot sausage (If you like meaty soup, you can add another 1lb of meat. Just note that this may increase the amount of broth you need, depending on how thick you like your soup.)
• 4 slices of bacon (I personally do not add bacon but my original recipe calls for it, so this is an optional ingredient.)
• 1 head cauliflower
• 32 oz. beef broth
• 1 onion
• 3 cloves garlic minced
• ½ cup heavy whipping cream
• 2 Cups fresh spinach (or more if you like)
• Salt (optional – with spicy sausage usually not necessary)
• Pepper (optional to taste)
• Crushed red peppers (optional to taste)
• Shredded Parmesan
• 4 slices of crispy cooked bacon (I personally do not add bacon but my original recipe calls for it, so this is an optional ingredient.)

Instructions

• In large soup pot, cook sausage until almost fully cooked
• Add onion, broth, garlic, cauliflower and bring to a boil (stirring occasionally)
• Once reaches boil, reduce heat and simmer on low until the cauliflower is cooked thoroughly
• Add salt, pepper, crushed red peppers to taste
• Add spinach and heavy whipping cream
• Serve with shredded parmesan on top
• If you like bacon you can also add bacon to the top or add to soup when you add spinach

Enjoy!

Estate Planning & Peace of Mind

Have you found yourself making excuses for why not to get your estate in order? Maybe you’re convinced that you really don’t need estate planning. If you have assets and loved ones, you need an estate plan. Having an estate plan that is right for you ensures your loved ones are taken care of and that the transition is as easy as possible.

Attend one of our complimentary estate planning webinars and see for yourself. Having your estate plan prepared and understanding the why’s behind the importance of estate planning can bring you the peace of mind you have been needing. Join us at our next Estate Planning Informational Webinar by clicking here.

From Our Clients

“We always get great service, all of our questions answered. The staff are polite courteous attentive and pleasant. Most importantly, their fees are very reasonable and we never go away feeling like we got gouged. We always recommend this firm to friends when they are seeking good counsel and estate planning needs.” – Linda D.

“We have never been anything other than delighted with the professionalism, customer service, expertise and engaging culture of this estate planning legal practice. Check out their website for a calendar of regularly presented online introductions to estate planning basics. I’ve participated in these webinar a couple of times since I understood more every time I listened in.” – Sandy N.

Families choose Myatt & Bell to design their estate plans with honest optimism and meticulous attention to detail.

Do you have feedback for us?

Please continue giving us feedback about your experience with M&B. We want to make sure our clients are happy.

And, if you run into someone who needs help with a will or trust, please tell them about Myatt & Bell. Thank you!

• Greetings from Myatt & Bell President, Justin Martin
• Estate & Gift Tax Planning
• Get to Know Our Team
• Recipe Spotlight
• Complimentary Estate Planning Webinar

Dear M&B Family,

This issue explains how gifting during your lifetime can be an effective estate planning strategy that offers multiple benefits.

Gifting can help you reduce estate taxes while providing your beneficiaries with immediate use and enjoyment of transferred assets. Use of the annual gift tax exclusion is one way to do so. For 2022, each person may gift $16,000 to as many people as they wish. For example, a married couple may gift $32,000 from a joint marital or joint trust account to each child, or in some scenarios, to each child’s irrevocable trust. Additional gifts could be made to grandchildren, if appropriate.

There can also be many pitfalls in gifting, so please let us know whether you need help with your gifts! In the meantime, we hope you enjoy the enclosed article about the various lifetime gifting opportunities that are available.

Very Sincerely,
Justin R. Martin
President, Myatt & Bell, P.C.

Estate & Gift Tax Planning

By Andrew D. Ginis, Attorney and LL.M. in Taxation

Does it make sense to make gifts prior to death?

For many of us, estate planning is not about taxes. It is about how we want our assets distributed. But thoughtful estate and gift planning can help preserve your wealth and pass it on to your beneficiaries in a way that may lower your tax obligations.

Does lifetime gifting make sense?

If you believe your estate might owe estate tax, gifting assets throughout your life, rather than waiting until death, can be a powerful way to reduce the amount of taxes ultimately paid by your estate. That is because both the present value and any potential future growth of the gifted assets are removed from your taxable estate.

Even if taxes are not your primary concern, giving a smaller amount when your beneficiaries need it, and while you may witness the benefit, may be more meaningful for everyone.

What matters is doing what works best for you and your family.

What estate taxes apply?

The IRS allows a lifetime tax exemption on gifts and estates, up to a certain limit, which is typically adjusted yearly to keep pace with inflation.

Since the Tax Cuts and Jobs Act of 2017, the federal estate tax and lifetime gift tax exemptions have reached historic highs.

Today, the value of assets at death in excess of $12.06M for individuals ($24.12M for married couples) is taxed at a rate of 40%. Because the same exemption amounts are tied to lifetime gifts, this means that a single individual could gift $12.06M tax free, and a married couple could gift a combined $24.12M without paying any gift tax.

These are the highest exemptions in the history of the estate and gift tax, but they expire in 2025, when the exemption limit is set to automatically fall back to the previous level (about $6M if adjusted for inflation).

If today’s exemption disappears after 2025, how can you take advantage of the historically high exemption while it’s still available?

To leverage the historically high gift tax exemption you must gift more than the amount that the exemption is eventually lowered to. For example, if a gift of $7M is made under current law before the exemption is reduced to $6M, then the donor would have taken advantage of $1M of the opportunity (the amount of the gift in excess of the reduced exemption). Any amount under $6M (or whatever amount the exemption is potentially lowered further to) would fail to take advantage of the current high exemption amount. This means that the window of opportunity is open now and for individuals and couples with larger estates.

Oregon State Taxation

While some gifts and tax paid on federal gifts made within three years of death are included in an individual’s federal taxable estate, Oregon has no such rule. In fact, Oregon has no gift tax at all.

However, Oregon does have a $1M estate tax exemption and assets held at death in excess of this limit are taxed at a rate of 10-16%. This means that every lifetime gift, no matter the size, can save eventual estate tax in Oregon.

As a result, gifting can be a powerful estate planning strategy to reduce the size of your estate and the amount that is eventually subject to Oregon estate tax. For example, consider Steve and Grace, who are both in their early 70’s and have two grown children, each with children of their own. At a combined $10M, the couple’s estate today is less than the current federal exemption of $24.12M for a married couple and less than the presumed reduced exemption of $12M. However, Steve and Grace don’t even come close to spending the income and growth from their assets. Assuming a typical mix of real estate, retirement accounts, and investment accounts or business interests, asset values are likely to continue growing and their estate could be $20M or more in 10-15 years.

Gifting this year would not only remove the value of the gifts from their estate but also the future growth on these assets. By gifting, Steve and Grace could reduce or avoid federal estate tax and reduce Oregon estate tax, a potential savings of 40% at the federal level and 10 – 16% for Oregon.

Finding Help

Myatt & Bell, P.C. has decades of experience assisting clients in creating estate plans.

Our team of attorneys will answer your estate planning questions and identify some techniques that may be available to lower your tax obligations, including two common tools to control and access assets that have already been gifted (IDGT & SLAT).

Give us a call. We are ready to help.

Laura Watts, Paralegal

What are you currently reading? “The 1619 Project” by Nikole Hannah-Jones.

What is your favorite food? Ramen.

What do you do just for fun? With three children, I don’t have a lot of spare time! But when I do have spare time, I enjoy watching a show or listening to a book.

Can you share a fun fact about you? Sure! I graduated from Willamette University College of Law and practiced law as an attorney in Colorado. A couple years later, my family moved to Tucson, Arizona, so my husband could begin a PhD program. Planning that our time in Arizona would be limited, I worked as a paralegal for a law firm specializing in elder law, probate administration, and estate planning. I grew to love this area of the law! After many years of moving, my family has decided to make Oregon our permanent home. I look forward to a long career with Myatt & Bell and plan to take the Oregon State Bar soon.

__________________

Laura’s Pumpkin Cheesecake

Crust

• 1 ½ cups graham cracker crumbs
• 1/3 cup butter or margarine, melted
• 1/4 cup granulated sugar

Cheesecake

• 3 packages (8 ounces each) cream cheese, softened
• 1 cup granulated sugar
• 1/4 cup packed brown sugar
• 1 ¾ cups ( 15-ounce can) pumpkin
• 2 eggs
• 2/3 cup evaporated milk
• 2 tablespoons cornstarch
• 1 ¼ teaspoons ground cinnamon
• ½ teaspoon ground nutmeg

Topping

• 2 cups ( 16-ounce carton) sour cream, at room temperature
• 1/4 to 1/3 cup granulated sugar
• 1 teaspoon vanilla extract
• Whole strawberries, sliced and fanned (optional)

For Crust

Combine graham cracker crumbs, butter and granulated sugar in medium bowl. Press onto bottom and 1 inch up side of 9-inch springform pan. Bake in preheated 350°F oven for 6 to 8 minutes. Do not allow to brown. Cool on wire rack.

For Cheesecake

Beat cream cheese, granulated sugar and brown sugar in large mixer bowl until fluffy. Beat in pumpkin, eggs and evaporated milk. Add cornstarch, cinnamon and nutmeg; beat well. Pour into crust.

Bake at 350°F for 55 to 60 minutes or until edge is set but center still moves slightly.

For Topping

Combine sour cream, granulated sugar and vanilla extract in small bowl. Spread over surface of warm cheesecake. Bake at 350°F for 8 minutes more. Cool in pan on wire rack. Chill for several hours or overnight; remove side of pan. Garnish with strawberries.

Makes 16 servings.

Estate Planning & Peace of Mind

Have you found yourself making excuses for why not to get your estate in order? Maybe you’re convinced that you really don’t need estate planning. If you have assets and loved ones, you need an estate plan. Having an estate plan that is right for you ensures your loved ones are taken care of and that the transition is as easy as possible.

Attend one of our complimentary estate planning webinars and see for yourself. Having your estate plan prepared and understanding the why’s behind the importance of estate planning can bring you the peace of mind you have been needing. Join us at our next Estate Planning Informational Webinar by clicking here.

From Our Clients

“We always get great service, all of our questions answered. The staff are polite courteous attentive and pleasant. Most importantly, their fees are very reasonable and we never go away feeling like we got gouged. We always recommend this firm to friends when they are seeking good counsel and estate planning needs.” – Linda D.

“We have never been anything other than delighted with the professionalism, customer service, expertise and engaging culture of this estate planning legal practice. Check out their website for a calendar of regularly presented online introductions to estate planning basics. I’ve participated in these webinar a couple of times since I understood more every time I listened in.” – Sandy N.

Families choose Myatt & Bell to design their estate plans with honest optimism and meticulous attention to detail.

Do you have feedback for us?

Please continue giving us feedback about your experience with M&B. We want to make sure our clients are happy.

And, if you run into someone who needs help with a will or trust, please tell them about Myatt & Bell. Thank you!

• The Unwed Person’s Guide to Estate Planning
• Get to Know Paralegal Sierra Myers
• Recipe Spotlight
• Complimentary Estate Planning Webinar

The Unwed Person’s Guide to Estate Planning

By Bryce Kaufman, Attorney

It’s a harmful myth that estate planning is only for people who are married or who have children.

Everyone should have an estate plan, although for a variety of reasons. Parents with young children, for example, need an estate plan to appoint someone to care for their minor children or set up a trust for their benefit. Others need an estate plan to minimize their taxes. For unwed people, it can be any combination of reasons while also ensuring their belongings go to those closest to them and they are appropriately taken care of during their lifetime.

Whatever the reason, an estate plan is a necessary tool for everyone because it helps establish control, eliminate or expedite the probate processes, and save money.

What is an estate plan?

An estate plan establishes who will eventually receive your assets and how you want your affairs handled if you cannot handle them on your own for any reason.

An estate plan can help you feel more confident about the future, knowing your loved ones are taken care of and that the legacy you leave behind is the one you want. Failing to create such plans can lead to unintended consequences.

What happens if I die without an estate plan?

If you do not have a will or trust in place, your estate might not go to those who are closest to you. With no will or trust, the laws of Intestate Succession dictate where your estate goes.

Each state has different intestate laws. In Oregon, for example, the intestate succession laws say that the estate first goes to the spouse. And if there is no spouse, then to the children. If there are no children, then to surviving parents. If there are no surviving parents, then equally to brothers and sisters, and so on through the next-of-kin relations (if you know someone in this position, please talk to one of our probate attorneys – they can help!). In summary, dying without an estate plan means that a court will distribute property according to current state laws rather than follow your specific wishes.

Impact of Intestate Succession

When you take the time to create your estate plan, it means you won’t die intestate. Intestate Succession can add tremendous stress to the already difficult time your grieving loved ones face.

If you have a blended family or other unique family dynamics, it can further exasperate the issue and quickly make things more confusing. To illustrate, a blended family might involve a couple raising children from pre-existing relationships that are not biologically or legally related to them. In the event of death, this can lead to unnecessary conflict between stepchildren and stepparents in the wake of a tragic loss or unintentionally cutting out children from an estate altogether.

Planning for Incapacity

Estate Planning is not only about having a plan that deals with the distribution of your property and assets after your death. It is also about having an arrangement in place to deal with what happens if you become incapacitated.

Incapacity caused by an accident, sudden illness, or injury means you are incapable of making informed decisions about your well-being and finances. In many circumstances, without an incapacity plan in place, a loved one cannot immediately make decisions on your behalf without court intervention. A judge can appoint someone to take control of your assets and make decisions for you through a court-appointed guardian. Guardianships can be expensive and time-consuming.

Incapacity planning allows you to take control of the situation now, while you are healthy, to make your wishes clear and ensure they are honored.

Establishing Your Estate Plan

The good news is that if you are at least 18 years of age, we can help you set up your estate plan.

An excellent place to start is to take inventory of your assets. You will want to compile a list of your investments, retirement savings, insurance policies, business interests, and real estate holdings. It is important for you to understand your applicable state and federal tax situation and recognize that federal estate tax exemption changes regularly. But please don’t worry. We are well versed in this arena and can break down the complexity of the subject matter and offer immediate assistance.

For issues that might arise during your life, our team will also set up a protective plan so that if you ever become incapacitated, your health and financial well-being will reside in the hands of someone you appoint. Five key documents include:

1. Power of Attorney for Health Care
2. HIPAA Authorization & Release
3. Advanced Directive for End-of-life Decisions
4. Power of Attorney for Property
5. Nomination of Guardian and Conservator

We’re here to help!

Whether you are young or old, rich or poor, married or single, have children, or are childless, we strongly encourage you to create an estate plan.

Myatt & Bell, P.C. has decades of experience assisting clients in creating estate planning documents that accurately and clearly outline intended distributions of estates, while protecting interests in the event of incapacity. Please call us to discuss which estate plan is right for you.

Sierra Myers, Paralegal

What do you do just for fun? I like to train for semi-crazy competitions. Currently, I am training for the Great Pacific Race (a rowing race from the coast of California to the shores of Hawaii). I am also training for a half and full marathon that I will enter at the beginning of next year.

What is your all-time favorite book or movie? My all-time favorite book is All the Light We Cannot See by Anthony Doerr. It’s beautifully written, and you find small things you missed every time you read it that makes the story that much more meaningful. I read it while I was in Paris, and I couldn’t put it down.

Most memorable place you have vacationed? Our family trip to Capri, which is an island off the coast of Italy. My family has Italian heritage, and we like to host our family reunions over in Italy. We have done it twice so far, and Capri was my favorite. Spending time with my distant relatives and catching up on their lives is always a treat.

What do you enjoy doing in your spare time? I enjoy going to concerts, painting, reading, and finding new restaurants or bars to try.

__________________

Sierra’s Family Recipe
Grandma Cathy’s, “Bar ‘B Cups”

Ingredients

• 1lb of ground beef, chicken or turkey
• 1/2 cup of barbeque sauce
• 1 can of tenderflake canned biscuits
• 1 Tbsp minced onion
• 2 Tbsp brown sugar
• Shredded cheese

Directions

• Preheat oven to 400°
• Brown meat and drain
• Add barbeque sauce, onion and brown sugar
• Simmer until onions soften
• Remove canned biscuits and press individual biscuit into an ungreased muffin pan portion so that dough lines the bottom and sides
• Spoon meat mixture into the biscuit cups and then sprinkle with cheese
• Bake for 10-12 minutes
• Once biscuits are golden brown around edges, let cool and enjoy!
• Serves 4

Estate Planning & Peace of Mind

Have you found yourself making excuses for why not to get your estate in order? Maybe you’re convinced that you really don’t need estate planning. If you have assets and loved ones, you need an estate plan. Having an estate plan that is right for you ensures your loved ones are taken care of and that the transition is as easy as possible.

Attend one of our complimentary estate planning webinars and see for yourself. Having your estate plan prepared and understanding the why’s behind the importance of estate planning can bring you the peace of mind you have been needing. Join us at our next Estate Planning Informational Webinar by clicking here.

From Our Clients

“Taking care of our Estate Plan was streamlined by Myatt & Bell. We appreciated the attention to detail and answers to every question we came up with. Thank you for our new piece of mind, Myatt team!” – Betsy F.

“My wife and I set up our Living Trust through Myatt and Bell originally in 2002 and they did a great job! We did an update through them recently and were again very happy with their work! I am happy to recommend their services to anyone who needs this type of work done.” – Jeffrey C.

Families choose Myatt & Bell to design their estate plans with honest optimism and meticulous attention to detail.

Do you have feedback for us?

Please continue giving us feedback about your experience with M&B. We want to make sure our clients are happy.

And, if you run into someone who needs help with a will or trust, please tell them about Myatt & Bell. Thank you!