Maine’s Property Tax Stabilization Program, the “Program,” took effect in August 2022. This Program is designed to freeze or stabilize an individual’s property tax on a homestead from year to year. The annual deadline to carry over the previous year’s tax amount is December 1, and an application must be submitted to the local municipality for review each year. Read More
The SECURE Act became law in January 2020. It stands for Setting Every Community Up for Retirement Enhancement, which means it changes some of the rules to our retirement accounts. We at Perkins Thompson are ready to review how the SECURE Act affects your estate plan. This writing discusses the strategy to make charitable gifts from a traditional IRA. There are other facets to the SECURE Act that we will continue to address. Read More
An advance healthcare directive lays out your wishes and provides instructions for your healthcare providers to follow when you are no longer able to speak for yourself regarding your medical care. A directive may be written or spoken but it is much better to prepare an advanced healthcare directive in writing to make sure your desires are reflected accurately and to avoid confusion and misunderstandings down the road. The directive can include instructions concerning your medical care, healthcare providers and treatment facilities, as well as your wishes when it comes to end of life decisions, organ donations and funeral arrangements. Read More
In March, U.S. lawmakers passed a coronavirus relief and stimulus package to help Americans weather the economic shutdown. The package includes changes to retirement plan rules to make it easier for people to take early withdrawals and loans from retirement accounts and IRAs.
Allowing such early withdrawals and loans may be helpful in providing cash for living expenses and avoid the need to tap into credit cards or personal loans to pay bills. However, the downside of tapping into retirement plan savings is that by so doing the taxpayer may have some long-term detrimental impacts on their retirement. Read More
COVID-19 and the unprecedented efforts being taken to prevent its spread have turned the world on its head and brought into focus the importance of preparedness and planning in all aspects of life.
For governments, being prepared means having effective response plans in place to combat the health and economic damage caused to the people they serve. For businesses, being prepared is having established plans to allow them to adapt to new circumstances and to continue operations.
For individuals, what first comes to mind in being prepared and planning is probably having enough savings tucked away to get through a tough time, or having enough food and supplies stored for their families. What often gets over looked, even in the best of times, is planning for you and your family’s future in the event of a serious illness, or even death, of a loved one. Read More
COVID-19 is a Black Swan, a reminder to expect the unexpected. Health Care Directives are a tool to plan.
As we follow the news about COVID-19, it triggers thoughts about what would happen if we got sick. An Advance Health Care Directive is the tool to decide who would make health care decisions for us and what those decisions would be. Read More
It’s always a good idea at year end to prepare for the upcoming tax season and this year end of year planning is particularly critical in light of major changes…
Another year end is rapidly approaching so it is once again time to consider end of the year tax planning. This year there is even more uncertainty than usual with…
As we approach year-end, it’s time to consider end of the year tax planning. For this year, the problem is compounded as a result of uncertainty as to what the…
MISSING THE 60 DAY ROLLOVER DEADLINE CAN CAUSE THE RETIREMENT ACCOUNT ROLLOVER TO BE TAXED: Most of us are aware that a taxpayer who participates in an IRA or qualified…
On August 2, 2016, the IRS announced proposed new regulations seeking to limit, if not disallow, valuation discounts in transfers of interests in family controlled business entities for gift, estate…
The IRS reported a total of 1.6 million victims of identity theft involving stolen tax refunds in the first half of 2013, compared to just 271,000 for the whole of…
The Affordable Care Act contains tax provisions that affect your 2014 income tax return. Almost everyone is affected by the individual shared responsibility provision, while only people who purchased coverage…
The Internal Revenue Service has published an Announcement and new Regulations relating to qualifying for the “hardship exemption” under the Affordable Care Act, IRS Notice 2014-76, which may be helpful…
Tax-saving opportunities continue for retirement planning due to the availability of Roth IRAs, changes that make regular IRAs more attractive, and other retirement savings incentives.
Deduction timing is also an important element of year-end tax planning. Deduction planning is complex, however, due to factors such as filing status, adjusted gross income levels for deduction phaseout,…
Though April 15, 2015, is a long way off, it’s time to begin thinking about how the Affordable Care Act will affect your 2014 income taxes. The Affordable Care Act…
The Treasury Department and the Internal Revenue Service have ruled in Revenue Ruling 2013-17 that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married…
The Supreme Court’s ruling that the 1996 Defense of Marriage Act is unconstitutional paves the way for married gay couples to qualify for many federal benefits and protections previously limited…
The Maine Revenue Service has recently announced a new amnesty program for taxpayers who may be subject to “use tax” because they purchased tangible personal property outside the State of…
Phil Hunt is the editor of A Practical Guide to Estate Planning in Maine, published in October, 2012 by MCLE New England. The Guide includes two chapters by Mr. Hunt…
There are advantages and disadvantages to using non-probate transfers that pass your property directly to your beneficiaries instead of by Will. Even in states like Maine, that have a less…
Federal Gift and Estate Tax Exclusions Increase by $120,000 in 2012 As we head into a new year, the good news is that inflation adjustments kick in and the federal…
The CLASS Act was enacted to provide federal assistance for long-term home or community assisted-living care One of the most difficult problems facing families with an aging loved one is…
Here is a checklist of things to cover when working with your attorney on your estate plan: Confirm your “domicile” state to avoid multi-state tax and administrative problems. Execute or…
The Legislature has passed and the Governor has signed a significant estate tax reform package. The big news is that the Maine credit shelter exemption will increase from $1,000,000 to…
The new estate tax legislation, passed by Congress on December 17, 2010, will greatly change the estate tax as we have known it. The key feature of the legislation is…
PLAN FOR ESTATE TAX CHANGES BEFORE THE NEW YEAR As things currently stand, with less than a month to go in the 2010 tax year, the federal estate tax and…
A SPOUSE CAN DECLINE TO INHERIT UNDER HER SPOUSE’S WILL AND, INSTEAD, CAN TAKE A THIRD OF HER SPOUSE’S ESTATE If your spouse passes away while domiciled in Maine, you…
The issue of the rights of a married person to claim a share of the estate of a deceased spouse contrary to the terms of the deceased spouse’s Will and…
IN MAINE, IF YOU DIE WITHOUT A WILL, MAINE LAW WILL DECIDE WHO INHERITS YOUR PROPERTY If you reside in Maine, and die without a will, your property is said…
FIVE GOOD REASONS TO MAKE A WILL Having a Will Ensures that Your Wishes will be Honored. In Maine, if you do not have a Will, State law will determine…
IN MAINE, YOU CAN MAKE YOUR OWN END-OF-LIFE DECISIONS, FROM MEDICAL CARE TO DISPOSITION OF REMAINS HERE’S HOW: In Maine, you are in charge of your medical and end-of-life decisions….
What is a Durable Power of Attorney: A power of attorney is a document in which one person, the “principal”, appoints another person, the “agent”, to act on his or…
Perkins Thompson receives many inquiries on estate planning and elder law issues. Because I handle many of these, and have been editor of Maine Probate Laws and Maine Probate Procedure…
The vast majority of wills requiring probate administration in Maine can be handled at low cost within a reasonable time period. Maine’s probate administration process provides a means to wind…