13 Surprising Facts about Rowel Manasan

If people can’t accept your imperfections, that’s their fault.”

- David M. Burns

I normally steer clear of such blatant “self-promotion” in my Weekly Blogs to you…but we did a “team building” exercise recently, and the facilitator asked us to put down some descriptive facts about ourselves.

And, as I was scanning the news this past week, and seeing the *continued* doom and gloom, the glut of “experts” who clamor for your inbox and your attention, and the unfortunate reality of our scattered, modern age…well, I just thought you should have a better idea about who would be guiding your family through tough times.

Yes, this is a small departure from my normal, pocket-protecting strategy, but I felt that it was a necessary interregnum.

Oh, and my staff helped me put some of these together, as did a certain California gentleman who spent some time in Texas, enforcing the law…

13 Surprising Facts about Me!

1) Rowel Manasan does not sleep, but waits.

2) When the IRS Man goes to sleep each night, he checks his closet for Rowel Manasan.

3) Rowel Manasan can lead a horse to water AND make it drink.

4) Rowel Manasan counted to infinity–twice.

5) When Rowel Manasan falls in water, Rowel Manasan doesn’t get wet. Water gets Rowel Manasan.

6) Rowel Manasan CAN believe it’s not butter.

7) Rowel Manasan doesn’t read the legal and tax code …but stares it down until the information submits its will.

Rowel Manasan can divide by zero.

9) If you look closely, you can see Rowel Manasan in every scene of Gladiator.

10) Rowel Manasan has never blinked over the course of life. Never. Unlike the IRS when they pick up the phone and Rowel Manasan is on the line.

11) Rowel Manasan once fixed an incorrect estate plan by simply looking at it.

12) Rowel Manasan has never been “away” on vacation. Resort locations come to Rowel Manasan.

13) Rowel Manasan never hides, and only seeks.

Don’t you feel better with Rowel Manasan on your side?

Seven things 2010 heirs need to do right now

Twenty years from now you will be more disappointed by the things you didn’t do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbour. Catch the trade winds in your sails. Explore. Dream. Discover.

- Mark Twain

The “no estate tax” situation is causing a ton of confusion…still. It seems that every week brings with it different news about how Congress plans (or, um, doesn’t plan) to deal with this situation.

I’ve been receiving questions from clients and friends about how to handle this situation, and there are no “easy” answers. That said, however, I’ve put together a list of steps that inheritors should make sure they do this year, if they find themselves in that situation.

Feel free to pass this along to your friends!

Important Steps For 2010 Heirs

There’s been lots of chatter about the “windfall” situation 2010 estates find themselves in this year, with the lapse of the estate tax.

Here’s the problem–this may not be the case. It’s a bit of a technical issue, and one that should be handled in consultation with a tax professional, but this is the long and short of it:

Before this year, heirs valued inherited assets at the fair market value at the time of the decedent’s death. This year, heirs must use the decedent’s basis as their own when computing income taxes owed on the sale of these assets. The following seven steps can help guide you in this situation:

1. Have assets appraised. In order to determine your estate tax bill and where you want to allocate your $1.3 million carryover basis, you need to know the value of assets in your estate.

2. Locate purchase records. If you can’t prove the cost of an asset, the IRS will assume a value of zero and you’ll be responsible for capital gains taxes on the entire amount.

3. Delay selling appreciated assets. It’s possible that inheritors may be able to escape these carryover rules by delaying the sale of the assets until next year.

4. Postpone distributions. Congress could restore the estate tax retroactively. If the assets have already been distributed, paying the estate taxes will be very difficult.

5. Extend paperwork deadlines. Just like an income tax return, you may be able to extend the deadline for the carryover basis reporting paperwork to October 15.

6. Apply the basis allowance fairly. Don’t apply it to particular assets that will benefit one beneficiary more than another.

7. Guard against an executor’s added risks. If beneficiaries disagree with the executor, the executor should do what they ask, but get the beneficiaries to sign a document releasing the executor from liability.

Here’s an article which goes into greater detail for you:

http://www.forbes.com/2010/08/23/estate-tax-carryover-basis-capital-gains-personal-finance-deorah-jacobs.html

I’m personally dedicated to the success of your family–and your peace of mind! Can other lawyers say that?

Your millionaire neighbor

Our greatest battles are with our own minds.

- Jameson Frank

If there’s one thing that this downturn has shown me, it’s that certain truths really are eternal.

(By the way–I hope you had a fantastic weekend. As I sit down and write this, I’m staring at mounds of client paperwork and a lot of training for my staff to boot…but after an incredibly restful weekend myself, I have an almost caffeinated excitement about the week. So forgive me in advance if this email is a bit punchy!)

As a lawyer who deals a lot with client finances, it’s true that I tend towards financial conservatism. But that doesn’t mean that I don’t make it a point to study *exactly* how money “works”, and that I simply default towards savings. No–even for one such as me–these are still learned behaviors.

And I’m hoping that I can contribute to YOUR learning a little this week by opening the closet doors of your millionaire neighbor…many of whom are my clients.

(Oh, and by the way–last week, I wrote about those “cheap” online options for preparing a will. Perhaps the New York Times is secretly on my email distribution list? http://www.nytimes.com/2010/09/11/your-money/11money.html

Seems they came to the same conclusions!)

15 Closed-Doors Truths From Your Suburban Millionaire Neighbor

That’s right.  Although having a million bucks isn’t as impressive as it once was, it’s still nothing to sneeze at. In fact, Reuters recently reported that in 2009, there were 7.8 million millionaires in the United States .

That’s a lot of people, people.  And the odds are one or two of them are living near you. Heck, one of them might even be your neighbor.  In fact, the odds are very good that it is your neighbor.

“But, you don’t know my neighbor.  That guy doesn’t look anything like a millionaire.”

Well, guess what?  Your suburban millionaire neighbor called (yes, we go way back) and the two of us had a nice little chat. And here are a few things he shared with me–but apparently doesn’t want to tell you.  (No offense, I’m sure.)

1. He always spends less than he earns. In fact his mantra is, over the long run, you’re better off if you strive to be anonymously rich rather than deceptively poor.

2. He knows that patience is truth. The odds are you won’t become a millionaire overnight.  If you’re like him, your wealth will be accumulated gradually by diligently saving your money over multiple decades.

3.  When you go to his modest three-bed two-bath house, you’re going to be drinking Folgers instead of Starbucks.  And if you need a lift, well, you’re going to get a ride in his ten-year-old economy sedan.  And if you think that makes him cheap, ask him if he cares. (He doesn’t.)

4. He pays off his credit cards in full every month.  He’s smart enough to understand that if he can’t afford to pay cash for something, then he can’t afford it.

5. He realized early on that money does not buy happiness. If you’re looking for nirvana, you need to focus on attaining financial freedom.

6. He understands that money is like a toddler; it is incapable of managing itself.  After all, you can’t expect your money to grow and mature as it should without some form of credible money management.

7. He’s a big believer in paying yourself first. It’s an essential tenet of personal finance and a great way to build your savings and instill financial discipline.

8. Although it’s possible to get rich if you spend your life making a living doing something you don’t enjoy, he wonders why you do.  Life is too short.

9. He also knows that the few millionaires that reached that milestone without a plan got there only because of dumb luck.  It’s not enough to simply declare that you want to be financially free. This is not a “Secret”.

10. When it came time to set his savings goals, he wasn’t afraid to think big. Financial success demands that you have a vision that is significantly larger than you can currently deliver upon.

11. He realizes that stuff happens, that’s why you’re a fool if you don’t insure yourself against risk. Remember that the potential for bankruptcy is always just around the corner and can be triggered from multiple sources: the death of the family’s key bread winner, divorce, or disability that leads to a loss of work.

12. He understands that time is an ally of the young. He was fortunate enough to begin saving in his twenties so he could take maximum advantage of the power of compounding interest on his nest egg.

13. He’s not impressed that you drive an over-priced luxury car and live in a McMansion that’s two sizes too big for your family of four. Little about external “signals” of wealth actually matter to him.

14. After six months of asking, he finally quit waiting for you to return his pruning shears.  He broke down and bought himself a new pair last month.  There’s no hard feelings though; he can afford it.

15. He doesn’t pay taxes and fees which could have been avoided with a simple phone call. He plans ahead before trouble strikes. Oh, and here’s the number he calls to keep his family taken care of: 909-843-6427

So that’s it.  Now you know what your millionaire neighbor won’t tell you.

Oh, and, um, would you be so kind to keep this just between you and me?  I’d hate to ruffle anyone’s feathers or cause of any kind of neighborly spat.

I’m personally dedicated to the success of your family–and in your neighborhood relationships, after all! Can other lawyers say that?

You get what you pay for

“Respect your efforts, respect yourself. Self-respect leads to self-discipline. When you have both firmly under your belt, that’s real power.”

- Clint Eastwood

How was your long weekend? Hey–whatever your opinion about labor unions, I think we all appreciate an extra “day off” now and then (though, as with many business owners, my “day off” wasn’t exactly just burgers and the pool…working hard on client paperwork around here)!

Yes, as you may have heard, “Labor Day” originated during the time of 7-day workweeks of 12-hour days, in the late 1800’s, as our country was in the throes of the Industrial Revolution. Times have certainly changed since then–and our economy is no longer driven by the manufacturing jobs of the past.

Now, it’s about *knowledge*…and that’s why I take the time each week to inform YOU with “straight talking” steps you should be taking with your family’s situation, and how to be prepared for any circumstance.

Well, this week, I wanted to touch on something that I’ve (obliquely) addressed in the past, but it really should be expanded upon…

When Cheap Isn’t Cheap

I hate to break it to you, but did you know that many lawyers like to joke to one another about how “good” those online legal programs (LegalZoom®, Pre-Paid Legal®, etc.) are for our business? Why would that be?  First, because they are NOT as “easy to use” as claimed, and secondly…they actually cost you an arm and a leg in the long run.

You might think they seem like an inexpensive and safe option. But I’m not referring to the money for the service itself.

Using those programs can end up leaving thousands (or much more) of your assets in the coffers of Uncle Sam…even if you follow all of their instructions to a tee. I see it all the time–frustrated clients bringing in online-generated plans, astonished at all the “hidden savings” my staff and I are able to find for them.

The security you get is actually false security.

Now, it’s not my intention to scare you, but again–I’ve seen it more than I’d like. Frustrated families coming to see me during a period of great stress, and my staff and I having to attempt to “undo” poorly-crafted plans created by well-intentioned families (or even other lawyers) which ends up costing everybody far more than they’d like.

So, I hope you are with me:  you agree … choosing a well-trained and caring professional, who will put YOUR interests first–rather than just making another “sale” online is critical.

“Do I need full legal services?“

You do if you own any assets, including real estate, bank accounts, brokerage accounts, retirement accounts or life insurance that would need to be distributed to your loved ones after your death.

However, you *don’t* need full services if all you own is a car, some furniture and clothing.  In that case, you can take care of your planning by setting up a Living Will (aka Advance Health Care Directive) and a Durable Power of Attorney–two documents that all adults need regardless of the size of their assets. We can get you set up with these at very minimal cost.

But if your situation is any bit more complicated than this–don’t go online. Work with someone that can actually sit down with you and come up with the right plan for ALL your needs.

I’m personally dedicated to the success of your family — and your peace of mind. Can other lawyers say that?