Hegwood Law - December 2020

Hegwood Law - December 2020

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DECEMBER 2020

THE PROCRASTINATOR’S ULTIMATE CHRISTMAS SHOPPING GUIDE

Dec. 24 is Christmas Eve — it is also the day my grandfather would buy my grandmother her Christmas present. However, she never complained since he always bought her something very nice and thoughtful. You could say he was a bit of an expert at procrastinating his gift purchases, and it was not because of laziness, either.

know you are going to shop late into the season, you can still scope out the potential opportunities to ease the holiday blow on your wallet. It does not take long to predict the type of gifts to buy, and a quick Google search can help you create a short list of places to go to, just to cut down on the holiday shopping chaos you are sure to encounter along the way.

Do not do your last-minute shopping online.

Our family had a bit of a track record for “hunting” presents. As kids, we would find our presents early, unwrap them, then re-wrap them so our mother would not notice. Eventually, our mom had to get better at hiding them! But I have no doubt that Nonnie would have done the same for Papa's gifts if he had bought them any earlier. So, no matter why you are procrastinating your gift buying — for personal or practical reasons — I’ve put together some tips that might help you out, especially this year.

The USPS has already been experiencing slowdowns due to its legal challenges, so, if you are a last-minute online shopper, you might want to plan buying or picking up your gifts in-person instead. Even if you buy overnight shipping, there is no telling how these historical slowdowns will worsen.

Consider giving to a nonprofit!

Amidst your holiday shopping, remember that it is never too late to contribute to your favorite local nonprofit. Especially in these times, it is so important to extend a little extra compassion to our communities and help others recover as much as we can. Your contribution does not have to be monetary, either — you could give away canned foods to a food bank or clean out your closets and give away gently used clothes still in good repair. Either way can earn you a tax break this year. (Take a peek inside the newsletter where we talk a little more about this.) Making Christmas special for our loved ones does not always mean we have to shop in advance, but it does take a little bit of preparation, even at the very last second. We hope our tips help make your preparations a little smoother this year, and from everyone at Hegwood Law Group, we hope you have a very happy holiday season!

Support your locally owned stores first.

Considering big retail stores like Walmart and Amazon typically cover every age group for every needed gift, we do not usually think about the mom and pop stores in the downtown area for Christmas shopping. However, nobody has been hit harder during the pandemic than these small stores that offer unique local goods and services, which may be shut down forever if they receive no support. Whether your mother deserves to be pampered at a local spa, or maybe your brother would benefit from a new, hardy, locally crafted leather wallet, there are plenty of ways to put your dollar into your own neighborhood and benefit your neighbors and friends this holiday season.

Scope out the deals.

-Kim Hegwood

Alright, alright — maybe the point of procrastinating your holiday shopping is to put in the least preparation possible! However, if you

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3 GIFT-GIVING TIPS That Won’t Kill Your Savings

Ah, the holidays. It’s a time of sweet treats, family, and giving back — and sometimes giving a little too much. When it comes to the perfect holiday gift, many people spend too much money. The average American spends nearly $1,000 on gifts during the December holidays alone!

to your own talents as a clue to what you should give. If you’re a great crafter, create something unique for the people on your list. If you can offer the gift of time, provide

It’s possible to cut back and make it to January without major debt. Here’s how.

a free night of babysitting for your friends with kids or an experience at the local theater. These gifts have a bonus factor: Recipients love the gift when they open it, and they love it when they get to use it!

Check your list — twice!

Set a budget — and stick to it.

The list is going to be your secret weapon to tackling the holidays with your savings still intact. Start by writing down the name of every person you’d like to get a gift for. Now, with the exception of your immediate family members, narrow the names down to your top five — top 10 if you’re really popular. Now, place the names of the people who didn’t make the cut into a second list. If you still feel the need to do something for them, send homemade cookies or a handwritten note instead of purchasing something. This limits how much you actually have to spend!

Setting a holiday budget ensures you only spend what you can afford. It also narrows down your search. If you choose to buy your neighbor something, but they aren’t your top priority, set their budget at a lower level, like $25–$50. If you have a sibling who has had a rough year and you’d like to make their holidays a little brighter, bump their budget up. This narrows the focus of what you’re looking for so you don’t stumble into something you can’t afford. Ultimately, it’s the spirit of giving during the holidays that makes them so rewarding. With a little ingenuity, you can be generous and avoid the stress of excess debt come January.

Think beyond store-bought or expensive items.

Sure, everyone wants this holiday season’s “it” item, but sometimes the best gifts don’t even come wrapped under the tree. Instead, look

WHY ESTATE PLANNING IS THE BEST GIFT YOU CAN GIVE A LOVED ONE

While it might not come to the front of your mind as this year’s hit Christmas gift, estate planning is actually an incredible gift to give your loved ones. Not only will you help alleviate the initial intimidation of starting an estate plan, but also you will help them start a very important process to protect their future and that of their family’s for decades to come.

In a similar vein, if the recipient has children or persons with special needs, it is more important than ever to begin investing time now to develop a thoughtful, comprehensive last will or revocable living trust. That way, they can be protected by the right desired guardian(s) should anything happen.

A few other reasons might surprise you, too.

An estate plan is not only a gift to the recipient — it is also a gift to the entire family. If there is an unexpected incapacitation of a family member or a death, your gift can make that deeply devastating and painful time a little bit easier. With a durable power of attorney and a health care advance directive, you put the power in your recipients’ hands to decide the orderly transition that will give their families peace of mind in a very stressful time.

Also, it is important for safeguarding the financial futures of the next generation — a last will or revocable living trust can address who will manage the affairs upon incapacitation or death and aid in addressing estate tax planning as necessary. Lastly, your gift recipient will be able to plan any charitable gifts they would like to make at the end of their life as well. They can support their favorite causes and get significant estate tax breaks, which can only benefit the inheritance of the next generation. Without a will, there can be a lot of tension in the family while dealing with the loss emotionally and legally; however, a little planning can alleviate those tensions right away. You do not have many ways to provide that type of future security for someone, but with estate planning, you can.

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5 WAYS TOMAKE YOUR HOLIDAY EXTRA ECO-FRIENDLY THIS YEAR

Sustainability is the gift that keeps on giving, so if you'd like to give a gift to the environment this December, make your holidays anti-plastic! Here are five ways that you can use the latest eco-friendly technology to make sure your Christmas is just as convenient as ever. Set up recycling bins. Nobody wants to sort through trash on their holiday, especially if you’re hosting all the parties! To avoid dealing with the waste, set up recycling and composting bins before any home holiday festivities. It’ll make your next trip to a local recycling center so much faster because everything will be organized and easier to manage. Use paper containers for leftovers. Give your celebration a restaurant-from-home feel by storing and giving away leftovers in paper containers rather than plastic. Paper will dissolve and leave behind much less chemical residue than plastic. Want to make it look extra posh? Stamp the exterior with the family initials! Change up your gift wrap. Why use wrapping paper every year when you can make your packaging extra interesting, colorful, and creative? Use newspapers, magazines, comics, posters, maps, or even art by your kids to conceal your gifts this year.

Rent, borrow, or rethink your tableware. If you’re missing proper tableware for your holiday celebration, don’t despair — some companies will actually let you rent out their dishes for your special evening! You can also borrow tableware from friends and family. But you don’t have to use metal tableware. Try following another culture’s customs and serve your food on local ingredients, like palm leaves, coconuts, or wood. Localize as much as possible. If you can buy ingredients like fresh meat or vegetables from local farms, you won’t use as much plastic packaging and you’ll support small businesses at the same time! Never buy one-use plastics if you don’t have to. For every holiday tradition, ask yourself: Can I reduce, reuse, or recycle any components to this? We hope you have a happy, eco-friendly holiday!

CHOCOLATE PIE

WORD SEARCH

directions

Ingredients

• 1 whole pie crust, baked and cooled (or use Oreo or graham cracker crust) • 1 1/2 cups sugar • 1/4 cup cornstarch • 1/4 tsp salt • 3 cups whole milk • 4 whole egg yolks • 6 1/2 oz bittersweet chocolate, finely chopped • 2 tsp vanilla extract • 2 tbsp butter • Whipped cream, for serving

1. Prepare pie crust of your choice. Set aside. 2. In a medium saucepan, whisk together the sugar, cornstarch, and salt. 3. Pour in milk and egg yolks and whisk together. 4. Over medium heat, stir until the mixture just barely comes to a boil and becomes thick, about 6–8 minutes (maybe less, maybe more; just watch it!). The second it starts to bubble and thicken (it should be thick like pudding), remove it from the heat. Add the chocolate, vanilla, and butter and stir until everything is beautifully combined. 5. Pour the pudding into the pie crust and place in the fridge to chill for 4 hours uncovered. (If there is extra pudding, spoon it into small dishes and chill.) 6. Cut into slices and serve with whipped cream!

CAROL CHEER COCOA FAMILY GIFT HOLIDAY

HOLLY PEACE SHOVEL SLEDDING SNOW TURQUOISE

Source: ThePioneerWoman.com/food-cooking/recipes/ a11850/chocolate-pie/

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INSIDE THIS ISSUE

1 The Procrastinator’s Ultimate Christmas Shopping Guide 2 3 Fool-Proof Ways to Pay for the Holidays Without Going Broke Why Estate Planning Is the Best Gift You Can Give a Loved One 3 5 Ways to Make Your Holiday Extra Eco‑Friendly This Year Chocolate Pie 4 Do You Know Your Tax Benefits for Giving to Charity?

DO YOU KNOWYOUR TAX BENEFITS FOR GIVING TO CHARITY?

Whether because of financial, health, or mental stress (or all the above), 2020 has hit us all hard. The pandemic and wildfires have affected the morale of local economies and communities deeply throughout the country. That is why you should consider helping your friends and neighbors in your community by donating to local nonprofits. And by giving, you also receive, too! You might already be familiar with the fact that, if you itemize deductions, any gift to a qualified charitable organization may entitle you to a charitable contribution deduction against your income taxes this year. Your donation will be considered deductible in the year in which it is paid. For example, if you make a contribution with your credit card, it will count toward the year you made that contribution, even if you paid it off a year later. What you might not know is that the IRA Charitable Rollover offers tax benefits to those who qualify. If you are 70 1/2 years old or older, you can donate up to $100,000 to charitable organizations directly from your IRA without that donation being counted as taxable income when it is withdrawn. (To qualify, contributions must come from a traditional IRA or Roth IRA, and they must be made directly to

a qualified charitable organization without receiving any goods or services in return.)

But you can help in more ways than giving money! Donate your spare used items to charity. You will have the advantage of filing a deduction for the full fair-market value of the donated property. You will not be taxed on appreciation of the goods, so you will essentially receive a deduction for an amount you never reported as income. So, do not throw any of your old clothes away! Someone in your community might be able to use them.

Of course, that does not mean you can contribute just anything lying around. The IRS only counts contributions in “good condition or better.”

Keep in mind that while most charitable organizations qualify for charitable contribution deductions, not all do. And no matter what, keep all documentation for your donations! Helping to make the world a better place can also make your life a little easier when tax season rolls around.

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