HOOVER FINANCIAL ADVISORS ADDS TAX SPECIALIST

Malvern, PA – , recently joined Hoover Financial Advisors as a senior tax advisor. His appointment was announced by Peter K. Hoover, CFP, president and HFA founder. “We are delighted to have someone with such impressive credentials on our team,” says Hoover. “He is an asset for clients, particularly seniors.”

Furey’s primary duties are to help HFA clients with tax planning and preparation. His expertise concerning executive compensation tax implications, stock options and restricted stock, 401(k), pension plans and employee benefits is essential in guiding clients to financial goals and comfortable retirement. In addition, Furey’s knowledge of the intricacies of incentive programs and deferred compensation is beneficial in the tax planning process. He is a volunteer preparer through the AARP tax aide program. “I enjoyed learning how to apply HFA’s state-of-the-art software to my job. I first came here as a seasonal tax preparer and it evolved into an exciting and challenging year ‘round position,” concludes Furey.

Furey was an executive for Campbell Soup Company for more than 25 years. He served as vice president and corporate secretary for 18 years and received Campbell’s prestigious Influence with Honor leadership award. He holds a bachelor’s of science degree in business administration from Villanova University. He earned a doctor of jurisprudence and master of laws in taxation from Villanova, as well. Furey and his wife Jill reside in Villanova.

HFA, which is headquartered on Moores Road in Malvern, was launched in 2005 by Hoover, who has been an independent financial advisor for more than 30 years.  Since its inception, HFA has tripled in size. Employees include client relationship managers, financial planners, insurance and tax specialists, investment analyst and an information services manager. Two years ago, HFA was selected as 2012 Small Business of the Year by Chester County Chamber of Business & Industry. For more information, visit its website at www.petehoover.com or call 610.651.2777. To reach Furey, call the tax department at 610.651.2777 (Ext. 123).

PROTECTING HEIRS REQUIRES PRUDENT PLANNING

Malvern, PA – Recently, a profusion of Internet and print articles proclaimed problems with the will of Philip Seymour Hoffman, who died in February. The late actor’s estimated net worth at the time of his death was $35 million. A tax exemption on the first $5.34 million is provided by federal law. However, a tax of up to 40 percent can be levied against the excess.

One of many other glitches involves Hoffman’s three children. When the will was signed in 2004, he had one son. Thus, his daughters are not mentioned in the will, which leaves everything to his companion Marianne O’Donnell, the children’s mother. A Trust is provided for their son, but nothing is allocated to the girls. The family resided in New York and the state allows only a $1 million exemption. Thus, New York can tax O’Donnell up to 16 percent on assets left to non-spouses. A total of more than $15.1 million in combined state taxes was reported in an article in Forbes. Without a marital deduction, O’Donnell’s assets could be taxed again upon her death.

Last year, news sources stated that $30 million of actor James Gandolfini’s $70 million estate would be eaten up in state and federal taxes. Subsequent reports clarifying the earlier claim indicated this was unlikely to happen.

Peter K. Hoover, CFP, is intrigued with all these reports and sees essential value in alerting people to potential disaster if proper measures aren’t in place concerning estates and beneficiaries. “If ownership, beneficiaries and implementation of assets are not worded correctly, the Trust outcome will not work as intended by the testator. One way Hoffman (or anyone) could have prevented financial crises for his heirs was by adding one or two sentences to the will to provide for future children,” he notes.

“I believe that Gandolfini had an irrevocable Trust, which is tax free,” continues Hoover. “However, there are many misconceptions that can cause estate problems for heirs. To simplify, think of an estate as moving parts that must work together.

“For example, if a married couple prepare their wills when they are relatively young and name children beneficiaries of a sizable estate, it would seem there would be no issues. But say both parents die unexpectedly a few years later and the kids are under the age of majority. A court guardian may have to be appointed and fights over the estate could ensue, disrupting the family and perhaps denying one or more children the inheritance wished for them. To prevent this, children’s estate assets can be directed toward a Trust until they reach specified ages; a Trustee could be named to administer this Trust.”

Hoover suggests another possible inheritance problem prevalent in divorce situations. “If someone re-marries and immediately revises his will naming his new wife beneficiary, one would assume she would receive the estate. Not so, if all insurance and retirement beneficiaries are not updated, as well. Because a beneficiary supersedes the will, the former spouse could get nearly everything. This is because insurance policies, 401Ks and IRAs were not changed when the will was drawn up. These are only two of many situations that could be prevented with proper planning.”

Hoover notes that other stumbling blocks to a smooth estate execution include tax law changes, improper signatory or power of attorney, even lifestyle modifications. “An individual’s estate should be carefully structured and then reviewed on a regular basis. In short, planning today provides peace of mind for heirs tomorrow.”

HFA, which is headquartered on Moores Road in Malvern, was launched in 2005 by Hoover, who has been an independent financial advisor for more than 30 years. Since its inception, HFA has more than tripled in size. Employees include client relationship managers, financial planners, insurance and tax specialists, investment analyst and an information services manager. HFA selected as 2012 Small Business of the Year by Chester County Chamber of Business & Industry. For more information, visit its website at http://www.petehoover.com or call 610.651.2777.

Reading Health System Lays Off 210 Employees

Map of Pennsylvania highlighting Berks County (Photo credit: Wikipedia)

The parent company of Reading Hospital, Reading Health System, laid off 210 employees today as part of a cost-cutting plan that also will eliminate an additional 181 jobs through attrition and change the employee retirement package from a defined-benefit pension to a 401(k) plan.

Hospital officials said the cuts are in response to changes in the national health care system, including cuts in Medicare and Medicaid reimbursements to hospitals.

Also, fewer patients are getting elective surgeries because the patients themselves have been laid off or experienced reductions in their medical benefits, said Therese Sucher, chief operating officer.

The cuts are in part due to the 2010 Affordable Care Act, or Obamacare, which required hospitals to implement electronic health records so all patients and physicians have immediate access to patient information.

Read more:   http://readingeagle.com/article.aspx?id=470221

Pennsylvania Makes Magazine’s Top 10 As Tax-Friendly To Retirees

Map of Pennsylvania, showing major cities and roads (Photo credit: Wikipedia)

Allegheny County residents smarting from the sting of new property assessments may not agree, but Pennsylvania was just picked as one of the 10 most tax-friendly states for retirees.

The rankings by Kiplinger magazinecompared a variety of taxes including sales, income, retirement and inheritance taxes.

Local taxes were not a factor.

Pennsylvania ranked high overall primarily because the state largely avoids dipping into retirees’ nest eggs by not taxing Social Security benefits, public and private pensions, or distributions from IRAs and 401(k)s, said Rachel Sheedy, retirement editor for the personal finance publication.

The state’s high ranking from Kiplinger follows several other recent surveys that have pointed to the Pittsburgh region in particular as one of the most livable places for retirees.

Read more: http://www.post-gazette.com/stories/local/state/pa-makes-magazines-top-10-as-tax-friendly-to-retirees-652374/#ixzz25tLU1PE1