December 2015 Newsletter to Clients

Enjoy this month’s edition that features a client’s thoughts on the complications of dying, important year-end deadlines, update on TD Ameritrade’s Advisorclient portal and reminder about potential email fraud.

Estate Planning: The death of a spouse or a partner is a sad experience. To help make the post funeral life experience less painful, we want to share a dear friend and client’s personal experience who lost her longtime partner.

Utility Accounts: It is a good idea to have both persons on an account. In that way the account does not have to be closed. One calls to report the death and that name is removed. Still preferable to call and check with each company. But you still may have to send Death Certificate to some of them. Ask for the fax #.

Banking: Once again a joint account makes it simpler. That way all auto-pays can continue without interruption. Her only child is now listed as joint holder on the bank account for check writing in emergency situations or event of death. Point of Death (POD) keeps the account open as well but it is my understanding that the Death Certificate and maybe the Power of Attorney may have to be employed after they are notified. At some point the account may have to be closed to eliminate decedent’s name. Best practice is to check with your individual bank.

Credit Cards: All credit cards companies have an Estate Unit, Deceased Account Department or Estate Specialist. Some even have a direct phone number so call and ask! They want to be informed immediately so they can close the account to prevent fraud. However, if they are not told, the account stays open and auto-pays continue. That buys time to switch out auto-pays and have all transactions clear.  Last bill should be paid before calling them in reality although that is not their preference!

When they are told of the death, they close the account. That will give the Estate 30-45 days to pay the bill before it would be turned over to a debt collection agency. When calling, give them the Executor’s name and address for the final bill.

If the credit card is a joint card, then deceased’s name is merely removed from the account. No changes need to be made is my understanding.

Credit card companies are best contacted through iChat rather than phone trees. iChat can give you the contact number of the Estate Department.

Tax Planning: We want to make you aware of several approaching year-end activities with potential tax implications for 2015 including the dates which action must be taken in order for TD Ameritrade to meet the December 31 deadline.

Deadline for Required Minimum Distributions (RMDs): Clients who are 70½ or older or those who have BENEFICIARY IRA’s must take an RMD from their IRA and/or their QRP for the 2015 tax year. All RMDs must be withdrawn by December 31, 2015, with the exception of RMDs for clients who turned or will turn 70½ during this calendar year; these clients may defer their first distribution until April 1, 2016.

Deadline for Roth IRA Conversions: Clients must submit a Roth Conversion Form in good order by December 22, 2015. Forms received after that date will be processed on a best-efforts basis.

Deadline for Establishing a 2015 QRP: Qualified Retirement Plans for 2015 must be established by December 31, 2015.

Charitable Gift Deadlines:

• Tuesday, December 15 - Gift requests of cash delivered via check and/or federal funds wire
• Friday, December 18 - Gift requests between accounts custodied at TD Ameritrade
• Monday, December 21 - Gift requests of stock delivered via the Depository Trust Company (DTC) system

Technology: On December 9, TD Ameritrade will debut the new AdvisorClient.com web portal. We encourage all clients to begin using the new portal as the old version will no longer be accessible after this date. In addition, for clients that would like a sneak peek of the enhancements, you can access a tutorial on our website.

Buyer Beware: Email fraud continues to be a threat for which we all need to remain AWARE. Thieves are hacking into consumer email accounts and attempting to have funds transferred to their bank accounts. For this reason please be patient with us are we are taking extra precautions for such requests. We remain aware and are acting with a sense of urgency and will therefore require verbal authorization, be on the lookout for unauthorized activity and following up an email request with a phone call.

We wish each of you a joyous holiday season.

Thank you for your continuing confidence.

Past performance is no guarantee of future results. The opinions expressed are those of Moneywatch Advisors, Inc. and are no guarantee of the future performance of any particular fund. This information is for educational purposes only and is not intended as investment advice. Please consult your financial advisor for more detailed information or for advice regarding your individual situation.