Articles From Lumsden McCormick

Long-term care insurance is a valuable tool for protecting your estate and finances from the potentially high costs of nursing homes or in-home care. Key considerations include your financial situation, estate planning goals, age, and health, with premiums typically rising as you age. Consulting with an advisor can help you assess the best LTC options to secure your future needs and preserve wealth for your family.

With December being a peak month for charitable giving, nonprofits should take advantage of holiday generosity by engaging donors through Giving Tuesday, personalized campaigns, and compelling data. Ensuring a seamless online donation process and maximizing matching gifts can further enhance contributions. Documenting successful strategies from this season will help refine future fundraising efforts.

A solo 401(k) is an excellent retirement savings option for self-employed individuals and small business owners with no employees, offering high contribution limits and tax savings. With flexible contributions and loan options, this plan allows for substantial, deductible retirement investments. However, solo 401(k)s require more administrative work, making them best suited for business owners with significant income and a commitment to maximizing retirement savings.

For business owners considering selling their companies, having a clear succession plan is crucial.

A buy-sell agreement is essential for business owners, ensuring an orderly transition of ownership in the event of death, disability, or other major changes. This agreement defines how a departing owner's interest is valued and purchased, often funded by life insurance, and provides flexibility to keep ownership within the family or provide liquidity for estate expenses. Regular reviews keep the agreement aligned with current business value and tax regulations, preserving the business's legacy for future generations.

Creating a code of ethics is essential for nonprofits, reinforcing commitment to integrity, guiding staff in decision-making, and boosting stakeholder confidence. This code goes beyond a mission statement, defining practical, ethical behaviors and outlining core values like fairness, accountability, and transparency. Training and publicizing the code demonstrate a nonprofit’s dedication to ethical principles and responsible governance.

On September 18, the IRS and the Treasury Department released proposed regulations regarding the credit for qualified alternative fuel vehicle refueling property under IRC Section 30C.

In 2025, the Social Security wage base will rise to $176,100, increasing payroll tax obligations for employers with high earners. Employers and self-employed individuals will continue to pay FICA taxes at the same rates, with Social Security tax capped at the new wage base and no cap for Medicare. Businesses should plan for these changes and consult for compliance guidance.

A defined-value gift can help maximize the current federal gift and estate tax exemption by transferring hard-to-value assets, like business interests, at a specified dollar amount. This strategy, if structured with precise language and a formula clause, can reduce tax risks by aligning the gift’s value with IRS standards. Consulting with an advisor ensures proper documentation and minimizes potential IRS challenges.

Sharing office space can help nonprofits reduce costs by cutting rent, utilities, and sharing resources such as equipment and staff. However, organizations should carefully evaluate potential challenges like culture clashes and legal issues before committing. Exploring options like co-renting with other nonprofits or leasing space from foundations can lead to significant savings and operational efficiencies.