Life can throw unexpected challenges our way, and dealing with a tough medical diagnosis is one of the hardest. In today's episode, we'll discuss a real case study of a young family dealing with the heartbreaking reality of a terminal illness. Listen in as Tony shares practical steps to take when faced with such difficult news, including handling taxes, planning for the future of a business, and ensuring loved ones are financially secure. Important Links: Website: http://www.yourplanningpros.com Call: 844-707-7381 ----more---- Transcript: Marc Killian: This week on Plan With The Tax Man, let's talk about tough medical diagnosis and financial situations that unfortunately maybe come out of the blue and how to handle those. So we're going to spend some time looking at a case study with Tony here on Plan With The Tax Man. Hey, everybody. Welcome into the podcast with Tony Mauro and myself as we're talking investing, finance and retirement. Tony is the owner at Tax Doc Inc, and he's CPA, CFP and EA with 30 plus years of experience and a great resource for you to tap into and turn to if you need some help with situations. And unfortunately, situations like the one we're going to discuss this week. Tony, you want to share a little bit on some tough times, financial planning and dealing with things when the unexpected pops up. And in this particular case, you wanted to share some things about a tough diagnosis if you've unfortunately received one of these, what that might look like and how that might change things. How are you doing this week, by the way? Tony Mauro: I'm doing fantastic. Thank you for asking. And yeah, some of these types of things creep up on us, and so I wanted to just take a break from what we normally talk about. It still has some financial planning relevance, I think everybody can get something out of. Marc Killian: Well, and I think these things are also very important because it's life, right? Tony Mauro: Right. Marc Killian: Unfortunately, things happen to us in life and we can't see them coming and they're heartbreaking and then unfortunate, but we still have to deal with them or our families might be left behind to deal with them. So why don't you just go ahead and jump in and lay this out for us and share some things? Tony Mauro: Okay. Well, as we've done taxes for such a long time, you do see a lot of this kind of thing. And it's funny, it even affects us, but in a different way than if our own family, this was happening to because sometimes my aunts are here and then they're not. Marc Killian: Yeah, and you form relationships with folks and it's like them finding out bad news is obviously heartbreaking for them and their family, but it's very personal for you guys as well, especially when you're a boutique firm where clients... It's cliche, but clients become friends. Tony Mauro: They do. They become friends and in this situation, this is a younger family in their 40s, and we have them as an accounting client. They have a small business and we also do some financial planning for them. So they're in the wealth accumulation stage with where they're at. They've got three little kids. Marc Killian: Okay. Tony Mauro: Husband is a firefighter, and anyway, they got a horrible diagnosis last year that the wife has brain cancer and she's not going to make it. She's got maybe a year and a half left. So they've got a business they're trying to run. He is going to have work for a long time, but he is going to be left with three small children to have to take care of. You start thinking of some of this stuff. Marc Killian: Right? That's daunting. Tony Mauro: And they're trying to figure out... Well, let me back up a minute. On top of that, before we got them, they had a few issues that they still have some unpaid taxes with the IRS. We're trying to get that caught up and paid, but we've really shifted years immensely from, okay, trying to operate the business as a profit, accumulating things for retirement, to 180 degree turn of what are you going to do with the business when you're gone? Husband's not going to run it because he's a firefighter. Marc Killian: He's busy. Yeah. Tony Mauro: How's this going to look for them and whatnot? And he's going to have to carry on. We've basically been working with them on three areas. One, make up with a plan to make sure that we get the back taxes paid so the IRS is not hounding him several years down the line. Marc Killian: Right. Tony Mauro: Now, two, how are you going to sell this business? Because that's what we're looking at is trying to find a buyer either internally or externally to [inaudible 00:04:00]. Marc Killian: So you're going through valuation processes and so on and so forth there. Tony Mauro: Yeah. And then now the shift has been in the financial planning area. It's really been more so a little bit towards advising on, well, how do we wrap up her affairs when she's gone?...
