North Idaho Legacy Planning

06/16/2025

“Good fortune is what happens when opportunity meets with planning!”
Thomas Edison

06/05/2025

If you or a loved one deals with mental health issues associated with military service… please know there are benefits to help. Let me know if you need assistance getting headed in the right direction.

If you have posttraumatic stress from a traumatic event you experienced during your service, you may be eligible for VA disability compensation for posttraumatic stress disorder (PTSD). Compensation provides tax-free monthly payments. Keep reading to find out if you may be eligible. Learn more abou....

06/05/2025

Fixed Guaranteed Legacy Planning Tools to Consider.

Why a Multi-Year Guaranteed Annuity (MYGA) May Be a Better Choice Than a CD

When looking for safe, predictable growth on your money, two popular options are Multi-Year Guaranteed Annuities (MYGAs) and Certificates of Deposit (CDs). Both offer fixed interest rates and protection of principal, but for many retirees and conservative investors, MYGAs may provide more compelling benefits.

Here’s why a MYGA might be a better choice than a CD:

1. Higher Interest Rates
MYGAs typically offer significantly higher fixed interest rates than bank CDs for the same term. That’s because MYGAs are issued by insurance companies, which often invest more flexibly than banks and can pass that advantage to the annuity owner.

2. Tax-Deferred Growth
Unlike CDs, which are taxed annually on interest earned—even if you don’t withdraw the money—MYGA interest grows tax-deferred. You only pay taxes when you start taking income or make a withdrawal. This can lead to more compounding over time and a larger balance.

3. No Annual IRS Reporting Until Withdrawal
Because interest on MYGAs isn’t reported annually to the IRS, it simplifies your tax paperwork and can help avoid pushing you into a higher tax bracket during high-income years.

4. More Retirement-Focused Options
MYGAs are often used as part of a retirement income strategy. Many come with features like penalty-free withdrawals, or can be converted into a guaranteed income stream later in life. CDs typically lack these options and must be rolled over or reinvested.

5. Avoiding Probate
MYGAs often allow you to name a beneficiary, so the funds can pass directly to heirs without going through probate. CDs are part of your estate unless held jointly or with a payable-on-death designation.

Considerations:
MYGAs do have surrender periods and penalties for early withdrawal (just like CDs), so they’re best for money you won’t need immediately.

They are backed by the financial strength of the issuing insurance company, not the FDIC. However, most states provide a guaranty fund for annuity protection up to certain limits (often $250,000 or more).

06/03/2025

Another reminder about my next Legacy Planning Workshop at CDA Library.

05/29/2025

10 Estate Planning Tax Tips to Protect Your Legacy

Estate planning is not just about deciding who gets what—it's also about maximizing what you leave behind by minimizing taxes. Here are 10 essential estate planning tax tips to help you preserve your wealth for future generations:

1. Use the Lifetime Gift Tax Exemption
In 2025, the federal lifetime gift and estate tax exemption is set to revert from over $13 million to about $6 million per individual. Make tax-free gifts now to reduce your taxable estate.
www.foundationlaunch.com

2. Annual Gift Tax Exclusion
Each year, you can gift up to $18,000 (2024 limit) per recipient without affecting your lifetime exemption. Spread gifts among children, grandchildren, and other beneficiaries to lower your estate value.

3. Leverage Spousal Exemptions
Married couples can double their exemptions by proper use of portability and trust planning. Consider bypass or credit shelter trusts to preserve the first spouse’s exemption.

4. Establish a Revocable Living Trust
While not a tax-saving tool by itself, a living trust helps avoid probate and facilitates tax-efficient asset transfers upon death, especially when paired with tax-smart funding.

5. Use a Grantor Retained Annuity Trust (GRAT)
A GRAT allows you to transfer appreciating assets out of your estate while retaining annuity payments, effectively passing excess growth to heirs free of estate tax.

6. Donate Appreciated Assets to Charity
Avoid capital gains taxes and reduce your taxable estate by gifting highly appreciated assets to qualified charitable organizations.

7. Set Up an Irrevocable Life Insurance Trust (ILIT)
Life insurance proceeds can be excluded from your estate if held in an ILIT, providing tax-free liquidity for your heirs to cover estate taxes and other expenses.

8. Take Advantage of Step-Up in Basis
Upon death, most assets receive a step-up in basis to their fair market value, reducing capital gains for your heirs. Avoid unnecessarily gifting appreciated assets during your lifetime.

9. Plan for State Estate Taxes
Some states have lower estate tax exemptions than the federal level. In Idaho, there is currently no estate tax, but planning may still be necessary for out-of-state property or heirs.

10. Review and Update Your Plan Regularly
Tax laws change. What worked five years ago may be outdated today. Review your estate plan at least every 3–5 years or after major life events.

Final Thought
Proper estate planning isn’t just about tax savings—it’s about clarity, control, and peace of mind. If you don't have those things consider a consult with North Idaho Legacy Planning.

05/22/2025

A question inspired by The Simple Path to Wealth:

Which expense in your life delivers the least happiness per dollar and which delivers the most happiness per dollar?

This is an excellent evaluation tool for getting and being purposeful with the things you are spending money on. Remember... once you spend a $$$ you don't just spend that $$$ you spend what that $$$ could do for you for the rest of your life.

What if the path to wealth isn't about timing the market or picking hot stocks, or even about paying someone else to do it for you? What if it’s actually about following a radically simple plan that’s not only easier to implement, but also more lucrative than the alternatives? Drawing from ...

05/10/2025

Here is a simple to read resource if you are wondering what you need to do in transitioning your farm/business from one generation to the next.

7 Best Practices for a Professionally-Managed Farm

05/05/2025

My grandson turned 2 years old yesterday. 2 years since we were in the hospital celebrating his birth. Here is a brief reflection:

What have I done in the last 2 years to invest in his faith, growth, development, and joy?
How have a served his mom and dad?
What did I miss that I won't get back?
How can I start investing in this little man moving forward?

There are a hundred more questions I can come up with. The point... we only get one shot to make the legacy that we want. Our actions, and inaction, are going to tell a story.

What story do you want to tell?

05/02/2025

“What you trade your attention for is what your life becomes!” James Clear - Atomic Habits

04/29/2025

04/29/2025

Amazing!!!

Big announcement number one: we are officially taking over the Hidden Gem in St. Maries and will be opening our tap house early this summer!!! We’ll be located almost exactly where the two rivers we are named for meet, and will be the only waterfront business in town. Stay tuned for more updates!!