California Probate - Law Offices of Janet Brewer Blog

What Happens If You Fail to Submit a Change of Beneficiary Form?

“The financial institution is obligated to distribute the CD to the person or entities that otherwise would be entitled to receive it.”

Wealth Advisor’s recent article entitled “I’m being denied an inheritance. Can they do that?” explains the situation where an individual, Peter, was given a CD/IRA by a friend named Paul.

Paul told Peter that he wanted him to have it, in case anything happened to him. Paul was married and didn’t tell his wife about this. Paul’s wife was the beneficiary of several other accounts.

Paul told Peter to sign a document before he died, and they got it notarized.

Paul died somewhat unexpectedly, and Peter took the signed and notarized beneficiary designation form to the bank to see about collecting the money.

However, the bank told Peter that there was no beneficiary designation given to them prior to Pauls’ death.

Is there anything that Peter can do?

The article explains that it’s a matter of timing, and it’s probably too late. That’s because it looks like Paul failed to submit a written beneficiary change form to the financial institution prior to his death.

As a result, the financial institution must distribute the CD to the person or entities that otherwise would be entitled to receive it.

In most states, you can choose any IRA beneficiary you want. However, in nine community property states, you are required to name your spouse as your heir. If you want to name anyone else, your spouse must give written permission. The same laws apply, if you want to change your beneficiary designation.

The nine community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

The only way for Peter to see the money, is if he can show that Paul intended for him to receive the asset. That bank doesn’t want to be sued by another person, who claims they’re entitled to the CD.

In this situation, it’s best to speak with an experienced estate planning attorney who can examine the specifics of this type of issue. If you have any questions about your current estate plan, please call or email us today.

Reference: Wealth Advisor (Nov. 24, 2020) “I’m being denied an inheritance. Can they do that?”

Advice If You are Named Executor of a Family Estate

“After a loved one passes, one of the biggest hurdles that families face, is passing wealth onto the next generation. Unfortunately, family dynamics can spur conflict and infighting among descendants.”

More than 75% of advisors polled by Key Private Bank said the most difficult part of estate planning is dealing with interfamily dynamics, according to a survey released in 2019.

Channel 10 Boston’s recent article entitled “Executor of a Family Estate? Here's How to Avoid Infighting Over Inherited Wealth” reports that the bank surveyed 130 of its client-facing advisors about their experience with individuals who are doing estate planning.

"The sensitivities of talking about estate planning often present emotional hurdles to putting a plan in place — especially when multiple marriages and blended families are involved," stated Karen Arth, Head of Trust with Key Private Bank, in the survey release.

Many family conflicts surrounding assets and estate planning are caused by miscommunication. The older generation should ask their children to join the conversation. Without this step, there can be a lack of clarity and transparency from generation to generation. The older generation believes that it did everything right in their estate planning, but often they don't explain their reasoning to their children and didn't give their children a chance to offer any input.

One way to prevent drama, as well as ways to remedy conflicts already started, is to begin the communication while everyone is alive.

When a person dies, they may leave an entire estate, with a lifetime of items to family. However, many of these items might not be listed in the will. As a result, the family must divide them up among themselves. Conflicts around sentimental value can arise. It is a good idea to seek help from a third party, so they can bring clarity and allow everyone to cool down. There are facilitators who can help. They are not just financial advisors and family dynamics experts but also professional mediators, who can help the family come to an agreement.

It is critical to have an open dialogue when it comes to dividing up assets. One way to avoid conflict is for the heirs to create wish lists of items they’d like, that can then be reviewed by the executor of the estate. Some people categorize items into groups of equal value, and others decide who gets what by rolling the dice. Whatever the method, open communication is vital to avoiding conflict.

Reference: Channel 10 Boston (Nov. 12, 2020) “Executor of a Family Estate? Here's How to Avoid Infighting Over Inherited Wealth”

What Do You Do with a Big Inheritance?

“Let’s start with the numbers: 10 and 1,000,000,000,000. Over this decade, $1 trillion is expected to change hands through inheritance. The majority of that will end up in the hands of baby boomers.  While one study found that the average inheritance was only $50,000, there will be a lot of inheritances in the $1 million-plus range.”

Wealth Advisor’s recent article entitled “Death by inheritance: Windfall can cause complications” cautions that in a community property state, if you’re married, your inheritance is separate property. It will stay separate property, provided it’s not commingled with community funds or given to your spouse. That article says that it is much harder to do than it looks.

One option is for you and your spouse to sign a written marital agreement that states that your inheritance (as well as any income from it) remains your separate property. However, you have to then be careful that you keep it apart from your community property.

If your spouse doesn’t want to sign such an agreement, then speak to an attorney about what assets in your inheritance can safely be put into a trust. If you do this, take precautions to monitor the income and keep it separate.

Another route is to put your inheritance into assets held in only your name and segregate the income from them. This is important because income from separate property is considered community property.

Another tip as far as the overall management of the inheritance, is to analyze it by type of asset. IRAs and other qualified funds take very special handling to avoid unnecessary taxes or penalties. If you immediately cash out your inherited traditional IRA, you’ll forfeit a good chunk of it in taxes. If you don’t take the mandatory distribution of a Roth IRA, you’re going see a major penalty.

Inherited real estate has its own set of issues. If you inherited only part of a piece of real property, then you’ll have to work with the other owners as to its use, maintenance, and/or sale. For example, your parents’ summer home is passed to you and your three siblings. If things get nasty, you may have to file a partition suit to force a sale, if your siblings aren’t cooperative. Real estate can also be encumbered by an environmental issue, a mortgage, delinquent taxes, or some other type of lien.

Some types of assets are just a plain headache: timeshares, partnership, or entity interests that don’t have a buy-sell agreement, along with Title II weapons (which may be banned in your state).

You can also refuse an inheritance by use of a disclaimer. It’s a procedure where you decline to take part or all of an inheritance.

Finally, speak with an experienced estate planning attorney, so you can incorporate your inheritance into your own estate plan. Contact our office today to schedule your consultation.

Reference: Wealth Advisor (Nov. 10, 2020) “Death by inheritance: Windfall can cause complications”

Do I Really Need a Will?

“There’s much to plan for in life — college, your wedding, your first child, life insurance — and with more than enough to keep you busy, it’s easy to forget about your will. After all, no one wants to sit around and dwell on their death, but it is perhaps one of the most important decisions you will make in your life.”

No one enjoys pondering their own mortality, but we can all help unburden our loved ones after we’ve gone, by creating a will.

Bankrate’s recent article entitled “Why it’s important for every adult to get a will” explains why you need a will and how to protect what you most cherish after you pass away.

Many people think that a will must be a complicated document full of confusing legal jargon. However, the purpose of a will is really very simple despite its importance. A will is a legal document that disposes of your property at your death. In addition, wills address several issues required to be resolved after death, such as who will care for your children, who will make decisions about your estate and who will receive your assets? Every adult should have a will that speaks to these issues.

There are several types of wills which are customized based on your property and assets. Some people have specific instructions regarding special bequests at their death, and others pass everything to a surviving spouse and children.

Testamentary will. This will is prepared in advance and is signed in front of witnesses. This is the most common type of will.

Holographic will. This is a will that is written by hand and is frequently a last resort in emergency situations. It is not valid in all states.

Oral will. This is a verbal will that’s spoken in front of witnesses. However, most courts prefer instructions in writing. As a result, an oral will isn’t a form that is widely recognized or recommended.

Mutual will. A couple can create a joint will, so that when one spouse dies, the other remains bound by the existing will’s terms.

Pour-over will. This type of will is used when you plan to “pour” your assets into a previously established trust at your death.

There are many reasons why you should have a will. A will can:

• Clearly identify ownership of your property
• Name a legal guardian for your children
• Shorten the legal process of assigning your assets
• Make donations of assets to charitable organizations
• Make specific gifts; and
• Save on estate tax.

Speak to an experienced estate planning attorney about the right will for your situation. If you have any questions about your current estate plan, please call or email us today.

Reference: Bankrate (Nov. 6, 2020) “Why it’s important for every adult to get a will”

How Will a New NFL Policy Impact the Late Broncos Owner’s Estate Planning?

“In a massive turn of events, the Denver Broncos may finally get a resolution to the fiasco that is the team’s ownership situation; only it may not come in the way that it was originally planned.”

No matter the late Pat Bowlen's intentions of passing down ownership of the team to one of his children via the Bowlen Trust, the NFL looks to be asserting its authority with a new policy on minimum ownership and team control.

Sports Illustrated’s recent article entitled “New NFL Ownership Policy Could Have Major Impact on Broncos” says that NFL Commissioner Roger Goodell now has the authority and power of levying fines up to $10 million per year to teams that aren’t in compliance with the policy and up to $2 million per year for individual owners.

The new NFL policy says that one person must hold at least the minimum amount of equity in the team and also have the final say in all team matters.

The Broncos and Tennessee Titans are the only two teams not currently in compliance with this policy, meaning that they both could be fined by the league up to $10 million within the next year. The Broncos are under control of the Pat Bowlen Trust, a three-person entity that was empowered with naming one of Bowlen’s seven children as his successor after his death in 2019. Within the trust, a list of expectations was provided by the Broncos' late owner which were aimed at readying the eventual successor for life as an owner in the NFL.

However, as it now appears, there’s an ongoing lawsuit between the trust and a legal team for Beth Bowlen Wallace, as to who will be taking control of the team in the near future.

It looked like the trust selected Pat’s daughter Brittany Bowlen as the eventual owner. She has completed nearly every instruction set out by the late Mr. Bowlen when he created the trust in 2009. However, his oldest daughter, Bowlen Wallace, and her uncle Bill Bowlen, contend that Pat was already showing signs of Alzheimer’s Disease, which took his life in 2019—long before he signed his estate planning documents. The two say that he wasn't in a competent state of mind to make such decisions. Bowlen Wallace and Bill also believe that Beth herself has already done everything asked of her late father in the trust and that she should be designated as the owner of the football team.

This mess is in litigation and could go on for years. A court hearing scheduled for September was postponed until 2021, due to the COVID-19 pandemic.

Because of the lawsuit and the NFL’s deadline to name one person with “final say,” the team may be forced to sell—which was a possibility after Pat’s death. The other Bowlen children must approve on who the majority shareholder would be.

“It is an option, and we’ve told the beneficiaries that,” Broncos CEO Joe Ellis said of selling the team back in December of 2019. “Because if Brittany were to succeed and take over for her father, everybody else is going to have to sign off on that, most likely. That may not be a requirement, but it’s going to be necessary, I think, moving forward from a trustee viewpoint.

“That’s why a sale remains a possibility, I think, given the circumstances we’re in.”

Reference: Sports Illustrated (Nov. 23, 2020) “New NFL Ownership Policy Could Have Major Impact on Broncos”

Estate Planning: How to Maximize What You Leave Behind

Anticipating and arranging what you leave behind for your heirs is imperative. Knowing how to maximize what you leave behind is the key. 

Many people in the United States feel woefully underprepared for retirement, let alone leaving behind assets for loved ones. However, the estate planning process provides many opportunities to protect your assets and minimize your tax liability, ensuring that they last for your lifetime and that more of your money is passed to loved ones.

A knowledgeable estate planner will be able to give you advice that ensures you are able to transfer the maximum assets possible by employing several strategies, including:

1. Set Up a Trust

Trusts protect the interest of your heirs, and they ensure that asset transfers occur according to your wishes. They also allow your heirs to avoid probate court and protect assets from creditors and divorce proceedings in the family. If your assets are substantial, you may also want to consider setting up a Dynasty Trust (also referred to as a Legacy Trust or Generation-Skipping Trust). 

These trusts can leave some assets for future generations of your beneficiaries, such as grandchildren and great-grandchildren. Depending upon your unique circumstances, you may want to consider several different types of trusts. An experienced estate planner can help you understand all of your options and decide which is the best choice to meet your unique needs.

2. Minimize Your Tax Burden

Depending upon the financial vehicles you use to transfer assets, various tax treatments may apply. For instance, certain inherited assets, such as stocks and mutual funds, receive favorable tax treatment, and leaving these assets to heirs can result in significant tax savings. Gifting assets to beneficiaries while still alive is another common strategy. 

Eligible gifts that are excluded from the gift tax (generally those below $15,000 in value given to an individual or $30,000 for a married couple) are entirely tax-free and do not require a gift tax filing. Similarly, any bequests made to charitable organizations are not subject to taxation, and they are deductible from your ordinary income. If you plan to leave any assets to charity, it’s a good idea to understand how they can benefit you and your estate by reducing your tax liability.

3. Establish Life Insurance or Tax-Deferred Variable Annuities

When life insurance policies are paid out, the beneficiary receives the proceeds without paying taxes on the funds. This leaves a guaranteed benefit to your heirs, unlike other investments that rely on market performance. In addition to these policies, you might want to consider fixed or variable annuities, which allow you to invest in mutual funds or fixed-income investments. 

Another benefit is that annuities held in a 401(k) plan are portable, allowing those who inherit them to transfer the annuity into another plan, rather than forcing them to liquidate it immediately, which can result in charges and fees. Before identifying which plans or annuities might be beneficial for your assets, it’s important to understand that some of these plans come with hidden fees or charges, so you must understand all of the fine print up front. 

This is another area where a skilled estate planner can help you understand your options and their benefits and drawbacks.

4. Creating Timelines & Managing Debt

In many instances, retirement accounts, such as IRAs and 401(k)s allow you to defer paying taxes until the money is withdrawn. Once retired, you can withdraw from these plans and pay taxes on the derived income. When it is beneficial for you to defer withdrawing, an estate planner can help you understand when the best time would be for you or your heirs to start deriving benefits from these types of accounts. 

Knowing when to start can often result in significant savings, allowing more of your assets to be enjoyed by you and your surviving heirs. Properly managing debt is another crucial aspect of maximizing your transferable assets. Your heirs don’t necessarily inherit your debt, but creditors can come after your assets to cover any outstanding debts, which can reduce the value of your estate. While you are alive, it is best to create a plan for settling outstanding debts and ensure that you do not accumulate new ones.

Estate planning can be complicated, and thinking of one’s demise is never a fun activity. But what you leave behind is your legacy. And even those who have many assets might be leaving their beneficiaries a much smaller amount if they haven’t adequately planned and taken advantage of strategies for maximizing the value of the assets that they can transfer upon death. 

For these reasons, you must work with an expert estate planner. The amount of money they can save your estate for your beneficiaries makes this action one of the best financial moves you can make.

What Key Estate Planning Terms Should I Know?

“Estate planning is an incredibly important tool, not just for the uber-wealthy or those thinking about retirement. On the contrary, estate planning is something every adult should do.”

Estate planning can help you accomplish several objectives, including naming guardians for minor children, choosing healthcare agents to make decisions for you should you become ill, minimizing taxes so you can give more wealth to your heirs, and saying how and to whom you would like to pass your estate at death.

Emmett Messenger Index’s recent article entitled “13 Estate Planning Terms You Need to Know” provides some important terms to understand as you consider your own estate plan.

Assets: This is anything a person owns. It can include a home and other real estate, bank accounts, life insurance, investments, furniture, jewelry, collectibles, art, and clothing.

Beneficiary: This is an individual or entity (like a charity) that gets a beneficial interest in an asset, such as an estate, trust, account, or insurance policy.

Distribution: A payment in cash or asset(s) to the beneficiary who’s designated to receive it.

Estate: All of the assets and debts left by a person at death.

Fiduciary: An individual with a legal obligation or duty to act primarily for another person’s benefit, such as a trustee or agent under a power of attorney.

Funding: The process of transferring or retitling assets to a trust. Note that a living trust will only avoid probate at the trustmaker’s death if it’s fully funded. A trustmaker also may be known as a grantor, settlor, or trustor.

Incapacitated or Incompetent: The situation when a person is unable to manage her own affairs, either temporarily or permanently, and often involves a lack of mental capacity.

Inheritance: These are assets received from someone who has died.

Probate: This is the orderly court-supervised process of distributing the assets of a person who has died.

Trust: This is a fiduciary relationship where a trustmaker gives a trustee the right to hold property or assets for the benefit of another party, known as the beneficiary. The trust is a written trust agreement that directs how the trust assets will be distributed to the beneficiary.

Will: A written document with directions for disposing of a person’s assets after their death. A will is enforced by a probate court. A will can provide for the nomination of a guardian for minor children.

We can help walk you through creating and fully understanding every element of your estate plan; call or email us today to schedule a consultation.

Reference: Emmett Messenger Index (Oct. 28, 2020) “13 Estate Planning Terms You Need to Know”

Does the COVID-19 Pandemic have an Impact on Financial Powers Of Attorney?

“We have all seen the heartbreaking stories about people dying in hospitals from Covid-19 without family present. We’ve also heard about the tragic decisions healthcare workers must make when time and resources are spread thin. Compounding these sad situations is that often the person who can speak for the individual suffering from Covid-19 is not present because of hospital procedures designed to prevent contagion.”

If you’re concerned about the consequences of contracting COVID-19, you’d typically create an advanced directive, a medical power of attorney, and a HIPAA release to give authority to those you want to have access to your medical information. These documents are intended to both state your medical care wishes and specify who can make medical decisions for you if you’re unable.

Forbes’s recent article entitled “If You Lose It, Don’t Lose It: Financial Powers Of Attorney In A Covid-19 World” says that sometimes the issue of money is lost in the confusion. If you’re in the hospital or otherwise unavailable, who do you want to take care of any of your immediate financial issues?

People frequently associate this issue with just writing checks, like paying the mortgage. If it’s deducted automatically, it should be okay, and the other bills can wait until they recover. However, some financial issues are planning-related, and those can’t wait, like in late December when you want to make a Roth IRA conversion but you’re in a hospital. You might also want to make a contribution to your favorite charity since the CARES Act provides a $300 non-itemized charitable deduction. If you are incapacitated, you need a trusted agent who can make important financial decisions for you and execute them on your behalf.

A financial power of attorney (POA) is often the answer. It is separate from a medical POA but equally as important. Without a binding financial POA, your incapacity will have a major financial impact. A financial POA gives you the power to name an agent to act on your behalf if you lose the physical or mental capacity to handle your own finances.

If you are worried about the financial risk related to a sudden impairment from an event, such as the coronavirus, ask an experienced estate planning attorney about creating a springing and durable POA. “Springing” means the power doesn’t trigger until you’ve lost the legal capacity to handle your own finances. “Durable” means that your agent continues to retain the power to act on your behalf until you either recover or die. This is the preferred approach because they retain control until something bad happens (causing it to “spring” into action) and then their agent maintains control, even if some unscrupulous individual attempts to hijack the process (proving the power is “durable”).

Note that a POA may not be recognized when it is presented to an individual or company. Financial institutions have been hesitant to accept a financial POA submitted by the principal’s agent because they’re concerned about liability if the POA turns out to be fraudulent, or if the agent acts contrary to the accountholder’s desires. Without the institution’s agreement, the incapacitated person’s plans won’t happen. However, many states have addressed this.

Many people are creating “just in case” estate planning documents to deal with the possibility of contracting COVID-19. Ask an experienced estate planning attorney about creating a financial POA.

If you have any questions about your current estate plan, please call or email us today.

Reference: Forbes (Oct. 27, 2020) “If You Lose It, Don’t Lose It: Financial Powers Of Attorney In A Covid-19 World”

What Is a GRIT and Should It Be Used in an Estate Plan?

“Trusts can be useful in estate planning for passing on assets to your heirs. A grantor retained income trust (GRIT) is a specific type of trust that allows you to transfer assets, while still benefiting from the income they generate.”

Creating a GRIT (grantor retained income trust) could have some benefits, particularly if you’re seeking for ways to minimize taxes in your estate plan. A GRIT is a type of irrevocable trust. This means that the transfer of assets is permanent and can’t be reversed.

Yahoo Finance’s recent article entitled “What Is a Grantor Retained Income Trust (GRIT)?” explains that a grantor retained income trust lets the person who creates the trust transfer assets to it, while still being able to receive net income from trust assets. The grantor keeps this right for a set number of years.

With a GRIT, the grantor (or creator of the trust) has the right to receive net income from the assets held in the trust. The trustee distributes income to the grantor, according to the trust terms. After the initial term during which the grantor is eligible to receive income from the trust expires, one of two things can happen. The remaining assets in the trust can be distributed to its beneficiaries. If you don’t want the assets to pass on to beneficiaries immediately, you can set it up so the assets continue to be held in trust.

However, unlike other types of trusts, there are rules on who can get a transfer of GRIT assets. Specifically, there are certain people who can’t be named as a beneficiary to a GRIT, including your spouse, your parents or spouse’s parents, your children or spouse’s children, or your siblings or spouse’s siblings (or their spouses).

However, you can designate the children of your siblings or other distant relatives as the beneficiary to a GRIT.

A GRIT is typically used for one specific purpose, which is to minimize taxes in estate planning. Keeping estate taxes as low as possible results in additional assets to pass on to your beneficiaries when you pass away.

When assets are transferred to a GRIT, they’re valued at a discount. This is based upon on the number of years for which you plan to draw income from the trust as the grantor, and the principal value of assets included in the trust are excluded from your estate for estate and gift tax purposes. However, you’ll be taxed on the income you receive from a GRIT during the initial term. It’s taxed at your ordinary income tax rate. It’s important to know about creating a GRIT for the purpose of minimizing estate taxes, that you must outlive the initial term. If you die during the period when you’re still receiving income from the trust assets, no estate or gift tax benefit would pass on to your beneficiaries.

A grantor retained income trusts can serve a specialized objective as part of your estate plan. However, whether you need one can depend on a variety of factors, so speak with an experienced estate planning attorney about the specifics of a GRIT. Contact our office today to schedule your consultation.

Reference: Yahoo Finance (Oct. 23, 2020) “What Is a Grantor Retained Income Trust (GRIT)?”

Incorporating Gifting with an Estate Plan

“Gifting sounds pretty simple, but there are many ways to do it. There are also several tax ramifications to be aware of.”

Kiplinger’s recent article entitled “Gifting sounds pretty simple, but there are many ways to do it, and several tax ramifications to be aware of as well” explains that no matter if a gift is made this year or in future years, there are some important questions to consider.

Increased exemption. The Tax Cuts and Jobs Act significantly upped the lifetime gift, estate and generation-skipping tax exemption to $11.58 million per individual ($23.16 million per couple). It’s set to expire at the end of 2025. Thus, there’s the prospect of possibly losing an opportunity to transfer wealth out of your estate and save on future estate taxes earlier than anticipated.

When to Give. A big question is whether a person should give away assets during their lifetime or at their death. Those who opt to gift while they’re alive often do so to reduce their estate and to share in the joy of seeing the effect it makes in the lives of the recipients. Others decide to gift after death for the security of having the assets on hand, if they’re needed. Gifting after death also gives recipients time to prepare for the responsibility that comes along with inheriting wealth.

Unified Federal Estate & Gift Tax Exemption. There are many ways to distribute assets. What works for one family isn’t necessarily the wisest strategy for another. Note that any transfer is gift tax-free up to the annual exclusion amount ($15,000 per person per donor in 2020). Any gift over this amount will count against the donor’s lifetime exemption amount. After that lifetime exemption is used, the gift will be subject to gift tax.

Outright cash gifts. This appears to be the most uncomplicated way of gifting. However, for those with significant wealth, this approach could have some drawbacks. These concern the ability and experience gift recipients have to manage money, outside risks, such as a spouse or high-risk professions, and demotivating recipients to live off their inheritance, instead of becoming productive on their own. Therefore, distributing large amounts of money—particularly at a young age—is generally discouraged.

Trusts. These are used frequently for larger gifts to provide for beneficiaries, while using controls by the grantor. These parameters can include things like distributing trust assets in stages (when the beneficiary reaches a certain age or achieves a specific goal). You can also leave assets in a discretionary lifetime trust, which would maintain the assets in a trust for the beneficiary’s entire lifetime. When set up by an experienced estate planning attorney, this offers a high level of protection from divorcing spouses, lawsuits, poor financial decisions and outside influences. It can also let the grantor create a lasting family legacy for many generations.

Gifts for education or medical expenses. Direct payments for college tuition or for medical expenses have no gift tax consequences. Educational gifts can also be made by funding a 529 educational savings plan. While there are no contribution limits for a 529 plan, gifts over the annual exclusion amount can have gift tax consequences or count against the lifetime exemption. You can also pre-fund an account up to $75,000 and it will receive the same tax treatment, as if it were gifted in $15,000 increments over five years.

Uniform Trust to Minors Act (UTMA) and Uniform Gifts to Minors Act (UGMA). These custodial accounts are generally less restrictive than trusts and let minor beneficiaries access funds at age a specific age depending on state of residence.

You can read more about how our process works, how we can make sure we are a good fit for your needs, and how to get started today right here.

Reference: Kiplinger (Oct. 30, 2020) “Gifting sounds pretty simple, but there are many ways to do it, and several tax ramifications to be aware of as well.”