Lutz adds Jen Walde as Performance Advisor

Lutz adds Jen Walde as Performance Advisor

 

LUTZ BUSINESS INSIGHTS

 

Lutz adds jen walde as performance advisor

Lutz, a Nebraska-based business solutions firm, recently added Jen Walde to its Omaha Office.

Jen joins the firm as a Performance Advisor with over 13 years of combined human resources and operations experience. She is responsible for providing career support and coaching to Lutz’s employees. In addition, she will collaborate with firm leadership to develop and implement strategic planning initiatives related to employee retention and development efforts. Walde graduated with her Bachelor’s degree in human resources management from Bellevue University and her Master’s in leadership from Doane University.

 

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OMAHA

13616 California Street, Suite 300

Omaha, NE 68154

P: 402.496.8800

HASTINGS

747 N Burlington Avenue, Suite 401

Hastings, NE 68901

P: 402.462.4154

LINCOLN 

601 P Street, Suite 103

Lincoln, NE 68508

P: 531.500.2000

GRAND ISLAND

3320 James Road, Suite 100

Grand Island, NE 68803

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Is the Traditional Bypass Trust Outdated?

Is the Traditional Bypass Trust Outdated?

 

LUTZ BUSINESS INSIGHTS

 

Is the traditional bypass trust outdated?

justin vossen, investment adviser, principal

 

Many early-retirement Boomers feel comfortable that their estate plan is in order, having put their estate plan in place when they had younger children. With adult children, and the increase in the estate and gift tax exemption amounts, many feel that there is little planning to be done. However, upon review, we see plans that may need adjusting due to the recent changes in tax laws. Specifically, those plans with the AB Trust/Bypass trust structure.

How the AB trust/Bypass Trust Structure Works

With the traditional bypass trust, when the first spouse dies, the bypass trust is funded with an amount equal to the applicable exclusion amount in order to minimize federal and state estate taxes. Any remaining marital assets would transfer to the surviving spouse via a separate marital trust, typically. 

Today, that amount is $11,400,000; meaning that all assets would be moved into the bypass trust if the estate is less than $11.4 million. Anything over that $11.4 million would go to the surviving spouse via the marital trust. Most folks do not have $11.4 million of assets in their name; so generally, most assets will flow to the bypass trust when trusts contain inflexible formulas for funding at death.

Assets owned by the deceased spouse receive a basis adjustment at death. However, assets placed in the bypass trust will NOT receive a second basis step at the surviving spouse’s death. This is a key worry in today’s estate planning environment. Any assets passed outright to the spouse or placed in a marital trust, WOULD receive a second step at the surviving spouse’s later death. However, the bypass trust would allow for the growth of those assets to occur outside the surviving spouse’s estate. This structure is written to use the client’s maximum estate exclusion at the first passing to primarily avoid estate tax.

 

Why Does/Did This Structure Make Sense?

Attorneys and planners used this bypass trust structure because estate tax avoidance was a primary concern when individuals passed away a handful of years ago. For example in 2001, the estate and gift tax exclusion was $675,000; and if you did not use that exclusion on the first death, it died with you. If you owed estate tax for amounts of assets higher than $675,000, you would have had to pay a tax of 55% on that amount. The estate tax used to be extremely punitive. Therefore, good estate planners would make sure to use the full $675,000 exemption amount at the first passing via the bypass trust. This shielded those assets and any growth from future estate taxes on the second passing. 

Advantages of the Bypass Structure:

Creditor protection: This varies from state to state, so consult an attorney to understand your particular situation.

Spendthrift protection: A couple can predetermine how the surviving spouse benefits from the trust and protects the money for future generations. This also provides control of the assets for the benefit of the future generation. Also, this could shield the assets from a future spouse in case of divorce or from a comingling of assets in a mixed family situation. This could avoid the children being accidentally disinherited.

Probate: The assets in the bypass trust would avoid probate when the surviving spouse dies.

 

Disadvantages of the Bypass Structure:

New Laws: Today, two major things have happened, the first being the $11.4 million exclusion amount and the second was the advent of portability in 2011. Portability allows for the surviving spouse to actually “port” the amount that is unused by the first spouse which is then added to their own exclusion amount. Thus, the surviving spouse could have a $22.8 million estate and gift exclusion, as well as essentially two steps in basis if both spouses’ steps are used. The estate and gift tax percentage has also dropped to 40%, still punitive but lower than before. So, the bypass structure may no longer be needed in many cases.

Expense: Over a lifetime, the bypass trust structure is costly to create and perhaps a costly burden to administer as it requires its own tax return and administration.  

Taxes: The bypass trust has a compressed (high) tax structure so careful considerations to allocations and income distribution need to be considered.

Today – What Could I Be Doing?

You need to consult your estate attorney on what is most appropriate to use in your particular situation.  However, a few things should be considered:

Portability: If your assets are substantially less than the $11.4 million exemption, the portability provision has given rise to a simplified approach. This provision allows individuals to leave all of their assets to the surviving spouse and transfer their exemption to them. This allows the couple to protect $22.8 million from estate taxes without using the bypass trust planning. While this does NOT protect it from creditors or future spouses, it is a simple way to avoid the estate tax. However, keep in mind that these increased exemption amounts are due to sunset in 2026 to their pre-2018 levels.

Disclaimer Provisions: Many attorneys are drafting flexibility into plans by the use of disclaimers or “Clayton” disclaimers for federal tax planning. With this trust planning, when the first spouse dies, the surviving spouse receives the assets of the deceased spouse. At that time, the surviving spouse then has the OPPORTUNITY to make a disclaimer election. This disclaimer election would allow the assets to pass directly into a bypass or martial trust. This allows for the surviving spouse to use all or a portion of the deceased spouse’s estate exclusion amount. 

Why would you want to leave the surviving spouse with a decision to make at an emotional time? The reasons to do this type of disclaimer would be to provide flexibility as the laws change over time. As mentioned, the current estate and gift exemption is scheduled to sunset at the end of 2025. Given the political climate, it may make sense to provide flexibility in the plan to do what is best at the time of the first passing.

 

What Should I Do?

There is not a one-size-fits-all solution for anyone with estate planning. Family dynamics, balance sheets, asset structure, and legislation continue to change as people’s lives evolve. You may not be able to achieve all of your objectives and goals with one solution, but you can get pretty close. Ultimately, creating the optimal wealth transfer plan requires an evolving strategy refined by you and your trusted advisors over time.

 

 

IMPORTANT DISCLOSURE INFORMATION

PLEASE REMEMBER THAT PAST PERFORMANCE MAY NOT BE INDICATIVE OF FUTURE RESULTS.  DIFFERENT TYPES OF INVESTMENTS INVOLVE VARYING DEGREES OF RISK, AND THERE CAN BE NO ASSURANCE THAT THE FUTURE PERFORMANCE OF ANY SPECIFIC INVESTMENT, INVESTMENT STRATEGY, OR PRODUCT (INCLUDING THE INVESTMENTS AND/OR INVESTMENT STRATEGIES RECOMMENDED OR UNDERTAKEN BY LUTZ FINANCIAL), OR ANY NON-INVESTMENT RELATED CONTENT, MADE REFERENCE TO DIRECTLY OR INDIRECTLY IN THIS NEWSLETTER WILL BE PROFITABLE, EQUAL ANY CORRESPONDING INDICATED HISTORICAL PERFORMANCE LEVEL(S), BE SUITABLE FOR YOUR PORTFOLIO OR INDIVIDUAL SITUATION, OR PROVE SUCCESSFUL.  DUE TO VARIOUS FACTORS, INCLUDING CHANGING MARKET CONDITIONS AND/OR APPLICABLE LAWS, THE CONTENT MAY NO LONGER BE REFLECTIVE OF CURRENT OPINIONS OR POSITIONS.  MOREOVER, YOU SHOULD NOT ASSUME THAT ANY DISCUSSION OR INFORMATION CONTAINED IN THIS NEWSLETTER SERVES AS THE RECEIPT OF, OR AS A SUBSTITUTE FOR, PERSONALIZED INVESTMENT ADVICE FROM LUTZ FINANCIAL.  TO THE EXTENT THAT A READER HAS ANY QUESTIONS REGARDING THE APPLICABILITY OF ANY SPECIFIC ISSUE DISCUSSED ABOVE TO HIS/HER INDIVIDUAL SITUATION, HE/SHE IS ENCOURAGED TO CONSULT WITH THE PROFESSIONAL ADVISOR OF HIS/HER CHOOSING.  LUTZ FINANCIAL IS NEITHER A LAW FIRM NOR A CERTIFIED PUBLIC ACCOUNTING FIRM AND NO PORTION OF THE NEWSLETTER CONTENT SHOULD BE CONSTRUED AS LEGAL OR ACCOUNTING ADVICE.  A COPY OF LUTZ FINANCIAL’S CURRENT WRITTEN DISCLOSURE STATEMENT DISCUSSING OUR ADVISORY SERVICES AND FEES IS AVAILABLE UPON REQUEST.

ABOUT THE AUTHOR

402.827.2300

jvossen@lutzfinancial.com

LINKEDIN

JUSTIN VOSSEN, CFP® + INVESTMENT ADVISER, PRINCIPAL

Justin Vossen is an Investment Adviser and Principal at Lutz Financial with over 20 years of relevant experience. He specializes in wealth management and financial planning.

AREAS OF FOCUS
  • Financial Planning
  • Wealth Management
AFFILIATIONS AND CREDENTIALS
  • Certified Financial Planner™
  • Financial Planning Association, Member
EDUCATIONAL BACKGROUND
  • BSBA in Economics and Finance, Creighton University, Omaha, NE
COMMUNITY SERVICE
  • St. Augustine Indian Mission, Board Member
  • Nebraska Elementary and Secondary School Finance Authority, Board Member
  • St. Patrick's Church, Trustee
  • March of Dimes Nebraska, Past Board Member

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OMAHA

13616 California Street, Suite 300

Omaha, NE 68154

P: 402.496.8800

HASTINGS

747 N Burlington Avenue, Suite 401

Hastings, NE 68901

P: 402.462.4154

LINCOLN 

601 P Street, Suite 103

Lincoln, NE 68508

P: 531.500.2000

GRAND ISLAND

3320 James Road, Suite 100

Grand Island, NE 68803

P: 308.382.7850

Lutz M&A Advises Fantasy’s, Inc. on its Acquisition by Casey’s General Stores

Lutz M&A Advises Fantasy’s, Inc. on its Acquisition by Casey’s General Stores

 

LUTZ BUSINESS INSIGHTS

 

lutz m&a advises fantasy’s,  inc. on its acquisition by casey’s general stores

bill kenedy, LUTZ consulting and m&a shareholder

 

Lutz M&A announced that it served as exclusive financial advisor to Fantasy’s, Inc. in connection with its recent acquisition by Casey’s General Stores, Inc. (“Casey’s).  Casey’s is a Fortune 500 company (NASDAQ CASY) operating over 2,100 convenience stores in 16 states in the Midwest and the South. Casey’s is currently the fourth largest convenience store chain and the fifth largest pizza chain in the United States.

Founded in 1989, Fantasy’s is Omaha’s premium chain of gas stations, convenient stores and touchless car washes.  Casey’s plans to leave the popular touchless tunnel car washes in place and continue to use the Ride the Wave brand, while bringing its famous pizzas to the nine Omaha metro area locations.

“The acquisition of the Fantasy’s chain is an excellent fit to our existing store base and will expand our presence in the greater Omaha market,” said Terry Handley, President and CEO of Casey’s General Stores, Inc.  “They are a very well established and managed chain, and we are excited to welcome the Fantasy’s employees to the Casey’s family.”

On working with Lutz M&A, Fantasy’s owner Karen Spaustat observed, “Lutz did a great job guiding us through the process of marketing our company and introducing us to several interested parties. They ultimately helped us find the right fit with Casey’s General Stores.”

Commenting on the transaction for Lutz M&A, Bill Kenedy said, “It was a great opportunity to represent this long-term client of Lutz in this transaction.  We are happy for the Spaustat family and believe Casey’s acquired a great company in Fantasy’s.

 

Fantasy's Logo Casey's logo

 

About Lutz M&A, LLC: Lutz M&A is a Nebraska-based mergers and acquisitions advisory firm, serving lower middle-market businesses in the Midwest across a range of industries. Lutz M&A is committed to providing its clients with a comprehensive, skilled and professional marketing process not typically available to smaller market companies. For more information, visit www.lutz.us.

ABOUT THE AUTHOR

bill kenedy

402.492.2132

bkenedy@lutz.us

BILL KENEDY + LUTZ CONSULTING AND M&A SHAREHOLDER

Bill Kenedy is a Lutz Consulting and M&A Shareholder at Lutz. He specializes in business valuation, litigation support, and merger and acquisition advisory services.

AREAS OF FOCUS
AFFILIATIONS AND CREDENTIALS
  • American Institute of Certified Public Accountants, Member
  • Nebraska Society of Certified Public Accountants, Member
  • Certified Public Accountant
  • Accredited in Business Valuation
  • Certified in Financial Forensic
  • Certified Exit Planning Advisor
EDUCATIONAL BACKGROUND
  • BSBA in Accounting, St. John’s University, Collegeville, MN
COMMUNITY SERVICE
  • Construction Financial Management Association, Past Treasurer, Board Member
  • A Time to Heal (non-profit focused on cancer patients), Past Board Member

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Toll-Free: 866.577.0780  |  Privacy Policy

All content © Lutz & Company, PC

 

OMAHA

13616 California Street, Suite 300

Omaha, NE 68154

P: 402.496.8800

HASTINGS

747 N Burlington Avenue, Suite 401

Hastings, NE 68901

P: 402.462.4154

LINCOLN 

601 P Street, Suite 103

Lincoln, NE 68508

P: 531.500.2000

GRAND ISLAND

3320 James Road, Suite 100

Grand Island, NE 68803

P: 308.382.7850

Lutz Launches Family Office Services; Adds Lisa Strutzel

Lutz Launches Family Office Services; Adds Lisa Strutzel

 

LUTZ BUSINESS INSIGHTS

 

Lutz launches family office services; adds lisa strutzel

Lutz, a Nebraska-based business solutions firm, recently announced a new service line, Family Office Services. Lutz’s Family Office team assists high-net-worth families manage their family enterprise by helping them determine their goals and priorities, establish processes and providing integrated financial services. From wealth transfer planning, to investment management, to strategic philanthropy, Lutz will deliver personalized, best-in-class service.

Bringing over 14 years of experience as an executive of a family office, Lisa Strutzel joins Lutz as Family Office Services Director. She will lead the team by coordinating the efforts to provide customized, cost effective services to high-net-worth clients.  Lisa graduated from Iowa State University with distinction and is a licensed CPA with the State of Nebraska. Being a passionate advocate of philanthropy, she obtained the Chartered Advisor in Philanthropy (CAP®) designation from the American College of Financial Services.

“An effective family office provides the ‘glue’ which can help hold a family together through generational transitions.  By supporting an organized family governance process, the family office is central in fostering family unity and engagement. As the family office knows the totality of its client’s financial situation, it can provide the integrated planning needed for sustainable wealth in concert with promoting and preserving family harmony and values.” said Lisa Strutzel, Director of Family Office Services at Lutz.

Ron Nebbia, Lutz Consulting Shareholder, said “Managing the complexities of significant wealth requires a great deal of time and effort. Our multi-disciplinary Family Office team has the skills required to assist you with all facets of your family office needs. We are equipped to handle the day-to-day details so you can Mind What Matters.”

Learn more about Lutz’s Family Office Services here: https://www.lutz.us/lutz-family-office-services/.

 

RECENT POSTS

4 Reasons Why You Didn’t Get the Job

4 Reasons Why You Didn’t Get the Job

Finding a job is a tough process. It can be frustrating to apply for jobs and get rejected, or worse, to never hear anything back at all. There are many reasons why you may not have landed a job…

read more

SIGN UP FOR OUR NEWSLETTERS!

We tap into the vast knowledge and experience within our organization to provide you with monthly content on topics and ideas that drive and challenge your company every day.

Toll-Free: 866.577.0780  |  Privacy Policy

All content © Lutz & Company, PC

 

OMAHA

13616 California Street, Suite 300

Omaha, NE 68154

P: 402.496.8800

HASTINGS

747 N Burlington Avenue, Suite 401

Hastings, NE 68901

P: 402.462.4154

LINCOLN 

601 P Street, Suite 103

Lincoln, NE 68508

P: 531.500.2000

GRAND ISLAND

3320 James Road, Suite 100

Grand Island, NE 68803

P: 308.382.7850

Getting Started with QuickBooks: 5 Must-do’s

Getting Started with QuickBooks: 5 Must-do’s

 

LUTZ BUSINESS INSIGHTS

 

getting started with quickbooks: 5 must-do’s

amanda harpster, client accounting services manager

 

Whether or not you make New Year’s resolutions, you may have decided that 2019 is the year you’re going to organize your company’s finances by using QuickBooks.

The transition from manual accounting to QuickBooks should be an orderly, well-planned process. If you just jump in and start creating transactions, you will soon give up and/or lose critical financial data. Here are five ways to avoid that.

Take setup seriously

Read everything on every screen after you have installed the software. Our attention spans have shortened thanks to the barrage of online content coming at us constantly. QuickBooks can tell you what you need to do. Or, call Lutz to assist in setup. It is worth it!

Familiarize yourself with the Chart of Accounts

Your company’s Chart of Accounts is the backbone of your accounting system. You will be assigning transactions to accounts that are divided into multiple types, like assets and liabilities. It’s very important that you make these designations correctly, as they will have impact on reports and taxes. So look over the list, but please don’t make any changes.

Prepare to run both manual and QuickBooks recordkeeping simultaneously

It can be dangerous to just switch over from one system to another without running them both for a while. This takes extra time, but not as long as it takes to untangle a tangled-up company file. You will need to set up a system for this so you’re sure everything is being recorded correctly both ways.

Take a tour around QuickBooks’ user interface and navigation system

QuickBooks actually has three navigation aids: the icons on the home page, the vertical toolbar, and the standard windows File menu. There’s a lot of duplication among them, so you can decide which will work best for various tasks.

Explore a sample company

You might be a little hesitant the first few times you enter transactions in QuickBooks, thinking you are going to do something wrong that’s irreversible. For that reason, the software comes with two sample files that you can use for practice sessions. Don’t worry: You can’t “hurt” this data.

Open the File menu and select Close Company. The No Company Open window will be displayed. Click the arrow next to the icon in the lower right that says Open a sample file and choose between product-based and service-based. When you want to go back to your own data, click File | Open Previous Company and click on your company file. Please be sure that you always know what file is open before doing any real work. The name will appear at the top of the screen.

Moving your company’s accounting over to QuickBooks is a major step, but we think you’ll be pleased with how it tracks your finances once you’re used to it. We’d like to help by working with you on installation, implementation and training. Connect with us, and we’ll see if we can’t make your New Year a little happier by streamlining your accounting.

ABOUT THE AUTHOR

402.827.2307

aharpster@lutz.us

AMANDA HARPSTER + CLIENT ACCOUNTING SERVICES MANAGER

Amanda Harpster is a Client Accounting Services Manager at Lutz with over 14 years of relevant experience. She focuses on QuickBooks support, tax and payroll compliance, and small business consulting.

AFFILIATIONS AND CREDENTIALS
  • Intuit Certified ProAdvisor, QuickBooks
EDUCATIONAL BACKGROUND
  • BSBA in Accounting, University of Nebraska, Omaha, NE
COMMUNITY SERVICE
  • St. Patrick’s Parish, Volunteer
  • Cub Scout Pack #409, Treasurer
  • Ponca Hills Fire Department Women’s Auxiliary, Member
QUICKBOOKS PROADVISOR CERTIFICATIONS

Certified ProAdvisor - Online  

SIGN UP FOR OUR NEWSLETTERS!

We tap into the vast knowledge and experience within our organization to provide you with monthly content on topics and ideas that drive and challenge your company every day.

Toll-Free: 866.577.0780  |  Privacy Policy

All content © Lutz & Company, PC

 

OMAHA

13616 California Street, Suite 300

Omaha, NE 68154

P: 402.496.8800

HASTINGS

747 N Burlington Avenue, Suite 401

Hastings, NE 68901

P: 402.462.4154

LINCOLN 

601 P Street, Suite 103

Lincoln, NE 68508

P: 531.500.2000

GRAND ISLAND

3320 James Road, Suite 100

Grand Island, NE 68803

P: 308.382.7850