John Michael Goralka’s Answers

We really need more information to even guess as to the answer. First, the aunt can leave her assets to whomever she chooses. The IRA, 401k and life insurance are generally governed by beneficiary designations completed and signed by your aunt. If a beneficiary designation was completed properly, no court appearance or probate proceedings will be required and no notice to any other parties in needed or generally provided. If a beneficiary designation was not completed, then those items will...

First, I am sorry about the lawsuit and the use of your personal funds. Your ability to receive a tax benefit for the funds spent defending this matter depends in part on the nature or basis of the lawsuit against the corporation and whether the corporation is an "S" corporation or a "C" corporation. An S corporation is a pass through entity which may enable you to recieve some benefit for the funds spent. Whether the claim or lawsuit will support a current deduction depends upon the basis...

First, you need to verify that the appropriate assets, investment and bank accounts are transfered to the trust. You should consult with an experienced attorney to review the assets and identify which assets need to be transfered. As a general rule, if record title is in the name of the individual, then the asset or account should be transfered. If there is a beneficiary designation, you need to identify the best manner to complete that designation. Care must be taken for IRA accounts and...

You have 2 options in adding a new shareolder. First, either or both of the current shareolders and sell some of their shares to the new investor. This is often not the preferred approach as this would be a taxable transaction for the existing shareholders. Second, the corporation may issue additional shares directly to the new shareolder. This would avoid a taxable transaction for the shareholders. If the buy in or subscription price paid by the new shareholder is paid in cash, then there...

I am very sorry for your loss. The lawyer can not hide or destroy the trust instrument as that would be a violation of the attorney's ethical and professional obligation subjecting him or her to discipline. The irrevocable trust would have a separate tax id number. The trust would have a much higher tax rate than your husband's individual tax rate. For this reason, income typically would be distributed to your husband annually to obtain a distribution deduction at the trust level. Review...

More information is needed to answer your question. Tax issues such as these are very fact specific and the answer may often turn or be effected but what may seem to be a slight technicality. First, we need to be certain that the account receivable was properly contributed to the corporation and the contribution complied with IRC section 351. I would also be concerned if the debt was owed to you by a family member. Was there a business purpsoe for the contribution. What were the payment...

Mr. Fromm is absolutely correct. I would add that as the holder of the power of attorney you must have been a close and trusted friend. You indicated that conservatorship proceedings are now in place. You may be in a position to help your friend and his family by acting on the power of attorney to avoid continuing costs related to the conservatorship proceedings. That is probably one of the main reasons why your friend designated you on the Power of Attorney. You really should return to...

Life insurance is essentially a conract. The life insurance company will pay the designated benficiaries. If you fathe is not designated as a beneficiary, then he will not have any say in the distribution of the death benefit from the life insurance policy. If no beneficiart is designated, then the life insurance company will pay the proceeds to your mother's estate. Your mother's estate will be administered and distributed in accordance with her estate plan. If she has a will or trust,...

First, you really need to provide all of the finacial information to your tax preparer to get an accurate answer. That being said, you may generally consider that the amounts you receive as rent will be taxable income. You are generally able to right of your expeses for the rental. Those expenses would include a portion of your utitilies to the extent that the utilities are avaialbe to your tenant. For example, water, garbage and electricity would be included but not the telephone unless...

Attorney Rosemary above may be a good resource for you as she identified the key issues. The strength of your case improves if you fully performed your obligation to care for him. In other words, your case is stronger if you cared for him up to the date of death or until he was placed in a care facility. You have then fully performed your obligation for care. The letter may contain sufficient language to be a contract. Even if not enough to constitute a contract, then that may still be...