As we settle into a new administration, it should be review time for you and your business. For most of 2020, when I met with clients, we only had anecdotal evidence about what was to come. We didn’t know what the outcome of the election would be. We weren’t sure which party would control Congress, or if we’d continue to have a split between the House and the Senate. Now that we have some clarity, it’s a good time to review your small business planning. It’s also review time for you and your estate plan. Are your healthcare documents up-to-date? Do you need to change your will?
If you need a quick checkup, I’ve even got a short survey for you: It’s only 10 questions…
If you are in Minnesota, this week brought an announcement by the governor of a new tax plan. The plan is designed to raise revenue for the state, which means that it is definitely review time for your estate plan if the plan is passed. Included in the plan were,
- A new tax bracket for high earners;
- Additional capital gains taxes;
- Increasing the corporate tax rate on C corporations;
- A retroactive tax on foreign income (back to 2016);
- An additional smoking and vaping tax on cigarettes and vaping products; and
- An estate tax on estates worth $2.7 million or more.
The last item is one that many people should be concerned about. While that amount may seem like it’s beyond what your assets are, there are plenty of ways your estate could easily approach that number. If you don’t have proper planning for your life insurance and retirement accounts, you could end up leaving a hefty tax bill for your family.
The main focus of our business planning in 2020 seemed to revolve around the PPP loan program. Many clients were forced to navigate a system that was poorly designed. The more we learned about the program, the more changes we needed to make to our businesses. Recently, we received word that the administrators of the PPP program are going to remove some of the roadblocks that were preventing businesses from receiving their money. If you’ve been considering applying for a PPP loan, it’s a good time to review the program for your business.
Another area to consider is your local government and its response to the pandemic. Many have provided a variety of small business programs to help their businesses. Depending on where you are, the tax planning may have become even more important as more tax breaks may be coming your way. So it’s review time for your business, a good opportunity to meet with your trusted experts, advisors and mentors (your TEAM) to make sure you are on track to get the most benefit out of any changes.
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If it’s time to get your estate plan or business documents in order, give me a call and we can set up a Legal Strategy Session to discuss the process and what documents would be best tailored for you and your company – (877) AMAYERS.