Issue 34.09

While working with one of my client’s heirs I was reminded of a scam so common that I felt I should pass it on.  Suppose your aunt Mary passes away leaving her estate to her five lovely nieces.  As her favorite niece she has named you as executor of her estate.  After the funeral is over you sit down with your four fellow heirs and map out a plan to settle the estate.  This is a difficult time with many emotions and pressures weighing upon you.

Mary’s trust papers remind you that before you can cut checks to any of the heirs, all the debts of the estate must be paid, so you go to Mary’s home and start sorting through her bills.  You notice that quite a pile of mail has accumulated at her house.  While working to sort everything out one of the other nieces calls wondering why it is taking so long.  Being an executor can be a stressful assignment.

In the pile of bills you find one from your aunt’s handyman service.  It is for $2,200 for the small remodeling and painting she just had done.  You are sad that poor aunt Mary didn’t have more time to enjoy this home improvement.  You think fondly of her as your write out the check. STOP!  What you don’t know is that your aunt had no work done.  You have just fallen for a very common and disgusting estate scam.

Unscrupulous people scan the obituaries everyday looking for opportunity.  They know that most executors are not familiar with the finances of the deceased.  They expect you will simply pay all the bills without question.  You were chosen executor because you are honorable and the scammers want to take advantage of your integrity.  Many of these criminals will even send threatening late notices or warn of impending legal action.  If you are an executor do not be intimidated by bill collectors, or by other heirs anxious for their money.  Take the time needed to verify the legitimacy of all the bills you pay.  Please share this information with your own children “heir” they be scammed as well.

Dan Wyson, CFP®  is author of the book “21 Financial Myths” and owner of Wyson Financial. 1173 S. 250 W #305 St. George 435-986-9525 – Securities offered through LPL Financial member FINRA/SIPC

Issue 34.09

Part 2

Why you might want to fund a Roth IRA this year. In 2009, any withdrawals from a traditional IRA can be used to fund a Roth IRA.  Interesting.  Why is this so?

In years past, mandatory withdrawals from a traditional IRA typically couldn’t be deposited into a Roth IRA.  But the federal government has suspended mandatory IRA withdrawals for 2009. Any IRA withdrawals made in 2009 are thereby elective withdrawals.  So, if your adjusted gross income (AGI) is $100,000 or less, you have an option to fund a Roth IRA with a withdrawal from a traditional IRA – at least through the end of 2009.

In 2009, you can fund a Roth IRA with after-tax contributions to a 401(k), 403(b) or 457 retirement savings plan.  This year, you can take those contributions and convert them to a Roth IRA tax-free, provided your AGI is $100,000 or less.  More good news: there is no limit to the conversion amount.

A potential tax break for those who convert in 2010.  If you do a Roth conversion during 2010, you can choose to divide the taxes on the conversion between your 2011 and 2012 federal returns.⁸

Be sure to consult your tax advisor before you convert.  This is a very good idea before you arrange any rollover, trustee-to-trustee transfer, or same-trustee transfer of your IRA assets.  In any year, you should fully understand the potential tax impact of a Roth conversion on your finances and your estate.  Also, remember that while the income limit on Roth IRA conversions will go away in 2010, the income limits on Roth IRA contributions still apply next year and for the foreseeable future.

Scott S. Lovell is the founder of Lovell Hathaway, Your Retirement Specialist^SM , and is a registered representative offering securities and advisory services through Geneos Wealth Management, Inc.  Member FINRA and SIPC.  For additional information, Scott can be reached at (435) 656-2518.

This article was written by Peter Montoya Inc., not the named Representative nor Broker/Dealer, and should not be construed as investment advice.  Neither the named Representative nor Broker/Dealer gives tax or legal advice.  All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.  If other expert assistance is needed, the reader is advised to engage the services of a competent professional.  Please consult your Financial Advisor for further information.

Citations available.

Issue 34.09

Planned Activities – Don’t be stuck in a rut doing the same activity over & over.  There are endless new & exciting activities for you to join, and learn things that you always wanted to.  You can be as socially involved as you want to. 

Movie Night – who doesn’t love a good movie?

Neighbors – Instead of worrying about neighbors with barking dogs or screaming kids, you will live next to people who are like-minded & understand you.  These neighbors become your friends & opportunities to socialize increase exponentially.  Remember when you used to meet up with your friends in the neighborhood cul-de-sac?  Those days have returned………….

Less Work – Have home maintenance & repairs become too troublesome or expensive?  Constant upkeep of a large house and yard can be not only exhausting, but also consume all your leisure time.  Remember, you worked hard all your life to enjoy your retirement years!  You can now enjoy a well manicured lawn without all the work!  All together now – “No more chores”!!

Less Stress – Wouldn’t it be wonderful to live somewhere that is dedicated to your peace of mind, well being & happiness.  These communities can insulate you from the day-to-day stresses of the outside world.  Maybe your current neighborhood is not as safe as it used to be.  Come live where your community is secure & someone will watch over your place.

Less Worry – Especially about future health care issues.  As we age & begin to experience the initial signs of a disability or illness, the fear can be debilitating.  Maybe you can’t drive anymore & public transportation is not an option.  Independent Living Communities can provide just the right assistance to enable you to continue to live independently & maintain your privacy.  You won’t have to worry anymore…….

Come check out Senior Independent Living at its best – BeeHive Cottages!  Call 773-7966 to schedule a tour.

Issue 34.09

In a previous New FamilySearch (NFS) article I mentioned adding GEDCOM files to NFS and said it was an article for another day.  A GEDCOM (GEnealogical Data COMmunications) is a computer format that lets computer users transfer genealogical data from one computer program to another.  GEDCOM was created by The Church of Jesus Christ of Latter-day Saints.  (This standard format is used by many family history computer programs.)  You can recognize a GEDCOM file on your computer because it has a .ged suffix on its file name.  A GEDCOM allows one genealogy program to talk to another one.

For years we used GEDCOM files to download from Ancestral File or other data and then we would import these files into our own personal genealogy program, make changes and then upload it back.  We would share information with other family members via GEDCOM.

In the New FamilySearch program there is a big red warning that comes up if you try to add a GEDCOM file.  It says GEDCOM files can introduce duplication into the system.  GEDCOM files cannot be deleted once you contribute them.  The information in your GEDCOM file is likely already in FamilySearch.

Before you contribute a GEDCOM file, they recommend that you compare the information in your GEDCOM file with the information that FamilySearch already has about you and your ancestors.  If you then decide to contribute a GEDCOM file, please contribute one or two small files first.  Then you can see how FamilySearch will handle your information, and figure out if GEDCOM really is the best way.  A GEDCOM file would include any sources or notes but not any multimedia files, pictures or video clips.

I can tell you that the most time consuming aspect of NFS is the combining of duplicate records so the last thing we want to do is add more.  This is especially true if you have ancestry that comes from long time LDS members or pioneers.  Even if you think you are the only descendant working on your family tree, it is best to check first because you might be surprised to find your ancestors already in the file.  Usually the only time I find individuals who are not in the NFS program already are the people whom I have found doing original research and even then I find some of them have been added because of extracted records or because they link into another previously researched family.  So, be careful with those GEDCOMs!

Shanna Sullivan Jones is a professional genealogist now accepting new clients.  For additional information, Shanna can be reached at (435) 628-4900 or shannasjones@msn.com.

Issue 34.09

All the buzz in the computer community is about Windows 7, set to arrive in late October or early November.  This new operating system will replace the controversial Vista set of operating systems.  Many people have not liked Vista and, when it first came out it was indeed horrible.  The revisions that Microsoft has made over the last year or so have made it much better, but there are still some things that many users don’t like as well as Windows XP (which has been discontinued).

That sets the stage for release of the new Windows 7 Operating System.  The people I have talked to that were involved in the Beta testing of this product mostly like it.  (Beta testing is using a product while it is still under development and sharing their problems and experiences with the company to help make the product better).  There are a few warnings they shared with me to pass along, but they are cautiously hopeful that this will be better, less cumbersome and easier to use than Vista while restoring some of the design and compatibility of Windows XP.

I have to admit that I have come to enjoy some of the new features in Vista, even though I have had a lot of problems with the compatibility issue.  I hope they will keep the things that are working while they make it easier to use some of the XP based programs that I (and many of you) still desire to use.  In that area, I am told that, at least in some versions of 7 there will be an XP Mode that should run the old programs well.  The whole operating system has been slimmed down as well to help the computers run and boot up faster and take up less resources which will help other programs run better.

The biggest concern of the people I have visited with is the number of versions that supposedly are planned.  They tell me there may be as many as 8 different versions which will likely create confusion and end up with people often buying one version and having to upgrade to get the features they really want.  This happened with Vista at first and was part of why people really hated it.  For example, the early version of Vista Home would not play DVD movies even if you had a DVD or DVD-RW.  You had to buy a “decoder” to play movies at additional cost.

Finally, many computer companies are offering an upgrade path on new computers right now, allowing you to buy today and then get Windows 7 when it is released for very little additional money.  Talk to your computer professional about what is offered, wait to hear how it is received when it is released (and to let them fix the problems that usually occur over the first couple of months) and then, if you want to, install the upgrade.

We will try to keep you updated on the developments in this area.  Until then, stay safe and happy computing.

Shaun McCausland has been in the computer industry for 27 years (locally with Musicomp & Bits ‘N’ Bytes) and currently does in-home and on-site computer consultation, service, training and repair. If you have questions, you can reach him at 668-7118.

Issue 34.09

The idea of someone being “retired with children” may seem like the seed of another television sit-com or reality show.  But the fact is that it’s becoming more and more common for older people to have minor children in their care — whether by bringing new children into the world, taking over the care of grandchildren or adopting children who need nurturing parents. 

So it’s important to know that if you receive Social Security benefits and have minor children who depend on you, you might be able to receive benefits for them, too.  This is true whether you receive benefits as a retiree or you receive Social Security disability or survivors benefits. 

To get benefits, a child must have a parent (or in some cases a grandparent) who:

is disabled or retired and entitled to Social Security benefits; or

died after having worked long enough in a job where he or she paid Social Security taxes.

The child also must be:

Unmarried; and younger than age18; or

18-19 years old and a full-time student (no higher than grade 12); or

18 or older and disabled. (The disability must have started before age 22.)

Within a family, a child may receive up to one-half of the parent’s full retirement or disability benefit, or 75 percent of the deceased parent’s basic Social Security benefit.  However, there is a limit to the amount of money that can be paid to a family.  The maximum family payment can be from 150 to 180 percent of the parent’s full benefit amount.  If the total amount payable to all family members exceeds this limit, each child’s benefit is reduced proportionately until the total equals the maximum allowable amount.

For example, if you are retired with a minor child and your benefit payment is $1,000 a month, your minor child could get up to half of that each month, or $500.  However, if you had two minor children in your care, the maximum your entire family could receive would be between $1,500 and $1,800 — that’s $1,000 for you and between $250 and $400 per child.

Whether you receive Social Security benefits because you have a disabling condition, due to the death of a spouse or because you’ve reached retirement, if you have minor children, you’ll want to read Social Security’s online publication, Benefits for Children at www.socialsecurity.gov/pubs/10085.html.

Issue 34.09

Do you know how your community got its name?  It probably happened long before you were even born or lived in the area.  Early settlers were quick to name their settlements. Sometimes new towns were called after places where they had just moved from, maybe to avoid homesickness?  While living in New Harmony, Utah, we discovered it was named after Harmony, Pennsylvania, the birthplace of an early settler in our town. Many New England colonial towns were named after English villages that British immigrants left behind when they settled in America: New York, New Haven, Plymouth, etc.

Imagine the task of naming every lake, river, mountain, and canyon in a new area.  Many times Indian names or local early settlers’ surnames were used or an event that happened nearby.  Some Indian chiefs had towns identified in their honor like Santaquin and Kanosh.  Most states including Utah have mining towns called Silver City or Eureka. Early Spanish explorers here influenced the naming of the Spanish Fork area.  They called the Ute Indians Yuta which later became our state’s official name.

The development of Utah counties is interesting. Wasatch county was named for a Ute word meaning mountain pass.  Washington, Garfield and Millard (Fillmore) counties were all named after U.S. presidents.  Other counties were named for famous people include Sanpete-Ute Indian leader San Pitch, and Davis for Charles C. Davis-a captain in the Mormon Battalion. Rich county was called after Charles C. Rich-an early Mormon apostle, Daggett for Ellsworth Daggett-an U.S. surveyor, Duchesne for a famous French explorer, Emery for George W. Emery-an early governor of Utah, Morgan for Jedediah Morgan Grant-an early Mormon leader, and Kane for Thomas Kane-a good friend of the Mormons.

Several counties were named after natural features: Beaver, Box Elder, Carbon, Iron, Salt Lake, and Summit.  Juab was aptly identified by the Ute word for thirsty valley, Uintah, and Piute for Indian tribes.  The counties of Grand, San Juan, Sevier, and Weber were named after rivers of the same name.  Geographical features such as Alpine, Pleasant Valley, Willow Creek, Rock Creek, Green Valley, Glenwood, Milford, Moose Lake, and Dry Creek influenced their naming. Prominent citizens were often honored by having a street designated in their honor. We have a Brigham road named after Brigham Young. Ever wonder how St. George was named?  Some say it was in honor of Mormon apostle George A. Smith.

Contact lin@sunrivertoday.com to get a copy of her book LOOKING BACK…at the “Good Old Days”, a collection of her weekly columns.

Issue 33.09

In the Roadrunner cartoons one of Wile E. Coyote’s favorite tricks was to place a bowl of birdseed in the middle of the road.  Leading up to the seed were huge billboards announcing the free meal up ahead.  Above the seed was a large flashing sign proclaiming “Free Food Here!”  Of course high above the bowl of seed he would also hang a huge anvil to smash the unsuspecting bird as he enjoyed his meal.

Congressional hearings recently focused on some of the abusive practices used to deceive seniors.  A task force from the SEC and FINRA secretly attended “Free Dinner Seminars” across the country in an effort to assess the value and integrity of the material presented.  The results should not have surprised anyone anymore than the roadrunner should not have been surprised to find that his free meal came with definite hazards.

In the report regulators found abuses in over three fourths of the cases studied.  The full text is available publicly at www.nasaa.org.  Just click on the “Senior Investor Resource Center” tab, or stop by our office and we will print the report for you from the NASAA website.  I highly recommend reading it before you accept the next invitation for a free meal.  On their website they also request seniors to sign up to be “free dinner monitors.”  Resources are low and abuse is high so getting help from the public is valuable in preventing fraud.  Just as an alarm system tells a burglar to go somewhere else, getting the word out that Southern Utah will not tolerate abusive sales tactics will go a long way in reducing the problem.

The Utah Division of Securities regularly warns in its bulletins that in addition to harming seniors, these abusive practices also harm the reputation of reputable and honest providers of investment advice.  There are many good and honest people in the securities industry.  The key is to do your homework, use common sense, and find out a little about the person you are dealing with.  The people who offer free dinners are paying a very high price to get you there and feed you.  That puts enormous pressure on them to sell high commission products.  The next time you decide to attend a “free meal” you better first watch a few episodes of the Roadrunner to remind yourself of that very painful anvil hanging overhead.

Dan Wyson, CFP®  is author of the book “21 Financial Myths” and owner of Wyson Financial. 1173 S. 250 W #305 St. George 435-986-9525 - Securities offered through LPL Financial member FINRA/SIPC.

Issue 33.09

Images seen by the eye are transmitted to the brain for interpretation via a nerve called the optic nerve.  This process is called ‘vision.’  Glaucoma is an eye disease that damages the optic nerve resulting in vision loss.  In fact, glaucoma is a leading cause of blindness in the United States.  The good news is that with regular eye exams, early detection and appropriate treatment, you can preserve your vision.

The eye is filled with a clear fluid called the aqueous humor.  This fluid is constantly being produced by the eye and drained at an equal rate.  The pressure inside the eye depends on the amount of fluid in the eye.  In most types of glaucoma, the eye’s drainage system becomes clogged so the fluid cannot drain properly.  As the fluid builds up, it causes pressure to build inside the eye.  This high pressure damages the sensitive optic nerve causing vision loss.  This process is called glaucoma.

There are several different types of glaucoma but the process is very similar in all of them: something inside the eye causes pressure to increase resulting in vision loss. 

In the most common form of glaucoma there are no painful symptoms and vision loss occurs so gradually that affected individuals often do not notice vision loss until it is too late.  Because of the lack of symptoms, a comprehensive eye exam is necessary to diagnosis glaucoma.  During this exam your eye doctor measures the eye pressure, evaluates the optic nerve for evidence of damage, assesses the complete field of vision, and examines the drainage structures of the eye for proper functioning.  If evidence of glaucoma is found, proper treatment will be started.

Unfortunately, at the present time, there is no cure for glaucoma.  However, with early diagnosis and initiation of treatment glaucoma can often be controlled and vision loss prevented.  Treatment usually consists of simply instilling eye drops on a daily basis.  In some cases, a laser procedure is performed.  Surgery can also be performed if medications and laser are not helping.

Anyone can develop glaucoma but certain individuals are at a higher risk.  These risks factors include:

Over age 60

People of African descent

Relatives of people with glaucoma

People with diabetes

Very nearsighted

People with extensive steroid use

The Glaucoma Research Foundation recommends that people at high risk for glaucoma, especially people of African descent over age 35 and all people over age 60, receive a comprehensive eye exam every year.  Vision loss from glaucoma can be prevented, so see your eye doctor to make sure you are not at risk.

Jason W. Hendrix, M.D. is a local Eye Physician and Surgeon who specializes in cataract surgery and diseases of the eye including the treatment of glaucoma.  He is located at the St. George Eye Center, 676 South Bluff Street, Suite 208, Saint George, Utah.  Contact him at 435-628-4507 or visit www.stgec.com.

Issue 33.09

It is common to hear the statement, “I want to avoid probate” or “I don’t want my family to go through the horrors of probate.”  When you ask these same individuals “What is probate?” many do not have an answer.

Simply stated, probate is a special state court legal process for settling the debts of someone who has died, and distributing the remaining property to rightful heirs. 

In a probate, the person who is authorized by the probate court to administer the estate of a deceased person is called a personal representative (or executor or administrator in some states).

A primary purpose of the probate process is to have a personal representative appointed for the deceased individual.  The personal representative must be appointed in order to “sign” the decedent’s name after death.

During life, a person signs a deed or bill of sale to transfer property.  When a person dies, it is still necessary to have some document to show a transfer of title.  In other words, a “signature” of the decedent is necessary.  The probate process provides one method of doing this.  By appointing a personal representative, the court authorizes that person or persons to sign for the deceased individual.

Many people believe that if they have a will there will be no probate.  Nothing could be further from the truth.  Whether you have a will or do not have a will, your estate must go through a probate proceeding if the assets are in your sole name. 

The only difference between dying with a will and dying without a will is that if you die with a will, you tell the probate court how you would like to have your property distributed after your death.  If you die without a will, the state legislature tells the probate court how to distribute your estate.  In either case, probate will take place.  

When considering whether to “avoid probate” or not, it is important to understand what is being avoided. 

In all cases, it is important to be educated about the different estate planning tools.  After you have reviewed the different estate planning possibilities, you can then make a decision as to what is best for you.

Jeffery J. McKenna is a local attorney serving clients in  Utah, Arizona and Nevada. He is a shareholder at the law firm of Barney, McKenna, and Olmstead with offices in St. George and Mesquite.  He is a founding member of the Southern Utah Estate Planning Council.