Andy Gutwein


Why Parents Should Consider a POA for their Adult Children

by Andy Gutwein

Turning 18 officially declares someone an adult. And with adulthood comes the right to make important life-changing decisions. From the moment someone has their 18th birthday, they can sign binding contracts, decide where they live, and can take on a whole host of other responsibilities.

...Read More

What is Basis and Why Does it Matter?

by Andy Gutwein

What is basis? Basis is simply the amount you pay for something. Basis is sometimes adjusted by depreciation or undistributed income, but let’s keep it simple. You buy a share of stock for $100. Your basis is $100.

Why does basis matter? Basis matters because it determines the amount of income tax you pay when you sell. If you paid $100 and sell for $150 then you have a $50 gain on which income tax will be due.

...Read More

Why Now Might Be the Right Time for Major Charitable Gifts and Roth Conversion

by Andy Gutwein

The Coronavirus Aid, Relief, and Economic Security (CARES) Act has brought on a lot of highly publicized programs. For instance, every business owner is likely aware of the Paycheck Protection Program (PPP), a forgiveable loan designed to provide relief to businesses and keep people on the payroll.

...Read More

Here's How Those Stimulus Checks Could Impact Your Medicaid Coverage

by Andy Gutwein

As an Elder Law attorney, I know many of my clients receive Medicaid benefits to help with the costs of long-term care -- whether they're in a facility, in assisted living utilizing a waiver, or at home receiving waiver services. So, when the government announced the stimulus payments of $1,200 per adult and $500 per dependent child, immediately the Elder Law community wondered how the payments would be treated by Indiana Medicaid. And rightfully so.

Since stimulus payments started to be issued, I have received many inquiries from Medicaid recipients and other professionals with the most common question being:

...Read More

Is it a Great Time for a GRAT? Maybe So.

by Andy Gutwein

At its core, a Grantor Retained Annuity Trust (GRAT) is a tool used to make a tax-free gift. And it may be just the right time to consider setting one up for yourself.

Here's how it works: the donor creates a trust which calls for certain payments to be made to themselves over a period of time, and then whatever is left in the trust passes to the beneficiaries named by the donor. 

Specifically, the tax-free part is accomplished by a complex calculation that "zeros out" the GRAT. Zeroing out simply means that the anticipated value of the remaining assets in the trust (the part that is paid to the beneficiaries) is expected to be zero. 

...Read More