Question:
With this month’s announcements about the Braves moving to Cobb County, Kennesaw merging with Southern Poly, and Kennesaw’s upcoming football team, what do you think about the economic growth of Cobb County for the next three to five years?
Answer:
We are pretty excited about Cobb County’s future. We recently attended an event where Commissioner, Bob Ott, spoke. He mentioned that the stadium would bring more than 400,000 hotel stays per year to the area, and that 99% of the county’s taxpayers will not likely see an increase in taxes, as a result of the project. Atlanta Fulton County Stadium never saw any development around it. In Cobb County, the area under consideration is 60 acres, with only 18 needed for the stadium. The Braves will be controlling the concessions, parking and the area around the stadium. We feel there is enough room for development.
While we are a little biased toward Kennesaw State University, we still feel that the merger with Southern Polytechnic Institute will be great for the universities. The merger brings in both a solid engineering school and a school of architecture, which will enhance Kennesaw. While there may be some attrition at first, we believe the end result will be great for both schools. We think the leadership at Kennesaw is top-notch, and will be a benefit to the Southern Poly students in the long run. As for Kennesaw’s football team, we are, again, excited by the prospect. We recently attended a KSU event that projected an attendance of 10,000. Final attendance was around 15,000. We think this bodes well for the community support for KSU football.
Question:
My mother just died and I’m trying to help dad take over the household financials. How can we find out whether my mom owned any life insurance?
Answer:
If your mother left a letter of instruction, read it carefully. It may help you determine whether she had life insurance. A letter of instruction is simply a letter written by or on behalf of the deceased. It enables a surviving spouse or other person to locate important documents, such as, bank accounts, life insurance policies, safe deposits, or collectibles.
If your mother died without such a letter and you are trying to discover whether she had life insurance, there are several things you can do:
- Contact any family members whom your mother may have confided in. They may know if she had life insurance and from whom it was purchased.
- Ask your mother’s lawyer, estate executor, banker, accountant, or financial planner whether they know of a life insurance policy.
- Talk to your mother’s auto and home insurance agents. Often, consumers purchase one or more insurance products through the same agent. They may have sold your mother a policy or referred her to someone who did.
- Has your mother’s estate been probated? If it has, check the court records for details of the estate. Sometimes, the life insurance policy will show up as an asset.
- Did your mother have group life insurance through an employer? Speak to her former employers to make this determination.
- Perhaps your mother had a safe deposit box. You may want to contact some of your local banks to see if there is a safe-deposit box account in your mother’s name.
Look at any canceled checks, bank accounts, and credit card statements to determine if your mother made any premium payments to an insurance company. Next, follow up with each company to determine what the payment was for.
Remember, the insurance company is not obliged to notify you about the life insurance policy even if you are the spouse. Typically, the insurance company does nothing until someone notifies it and files a death benefit claim. This is usually done by the owner (if not the insured), the beneficiary, or the estate of the insured. Although the above is no guarantee of success, some investigation should give you at least a chance of locating an existing policy.
Question:
My mother-in-law has expressed interest in starting a trust fund for my child’s education. She’s willing to fund a significant amount, but I’m not sure a trust is the way to go.
Answer:
Trusts are often used to minimize estate taxes, but they can be expensive to set up and maintain. Your tax situation and financial aid eligibility could be negatively affected by a trust.
We recommend funding a 529 Plan for your child. An individual can gift up to $14,000 a year to a 529 plan, without incurring a gift tax. A couple can gift up to $28,000, if they elect to split a gift. Also, under unique rules exclusive to 529 Plans, individuals can make a lump-sum gift to a 529 plan of up to $70,000 ($140,000 for married couples) and avoid federal gift tax, provided a special election is made to treat the gift as having been made in equal installments over a five-year period. No additional gifts could be made to the beneficiary during those years unless the annual allowance increases. However, an estate must include a portion of any contribution made with the five-year averaging election if the benefactor dies before the fifth year.
529 Plans are flexible, in that if all the funds are not used for your child, the beneficiary could be changed to a sibling or cousin. Withdrawals from a 529 Plan are tax free when used for qualifying higher education expenses.
At Henssler Financial we believe you should Live Ready, and that includes understanding the tax consequences of your education savings. If you have questions regarding your education savings plans, the experts at Henssler Financial will be glad to help. You may call us at 770-429-9166 or email at experts@henssler.com.
Disclosures
The following information is reprinted with permission from Forefield, a division of Broadridge Financial Solutions, Inc. This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
