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When starting or expanding a small business, one of the most critical decisions an entrepreneur faces is how to fund their venture. Oftentimes, business growth is held back by a sort of “chicken-or-the-egg” scenario in which the business owner needs to hire or invest in a resource in order to grow, but they can’t afford the investment unless they have grown the business first. Financing can help you jump the chasm of being stuck in that loop. Two popular financing options are obtaining a business line of credit from a bank and securing a loan. Each has its unique advantages and disadvantages, and choosing the right one depends on various factors, including the nature of your business, your financial health, and your long-term goals. It can get complicated, especially if you’re new to business ownership, but you don’t have to figure it out on your own. Instead, let’s navigate this together, shall we? In a future article, we’ll look at another type of business credit, using credit cards and how to do it right so you don’t ruin your credit score in the process - so stay tuned. But, first … Bank Business Credit: Your Money Bucket What exactly is a business line of credit? Think of it like a bucket that holds money. You can fill your bucket with money whenever you need it, up to a certain limit set by the bank or lender. You can take money out when you need to pay for things like new equipment, more inventory, or even to fix unexpected problems. Then, as you put money back into the bucket by paying it off, you can take it out again whenever you need it, as long as you don't go over the limit. Here are some advantages of using a business line of credit: ● Flexibility: Business credit lines offer flexibility that loans cannot match. You can draw funds up to a certain limit, repay, and then borrow again, which is particularly useful for covering short-term cash flow shortages or unexpected expenses. ● Only Pay for What You Use: Unlike a business loan, where you receive a lump sum and start paying interest on the entire amount immediately, with a credit line, you only pay interest on the amount you've actually drawn down and used. This can result in significant cost savings if you don't need the entire credit line at once. ● Builds Business Credit: Regularly using and repaying your business credit line can help build your business's credit history. A strong credit history can make it easier to secure additional financing in the future at better terms. Sounds good, right? Well, your money bucket has some disadvantages, too: ● Higher Interest Rates and Fees: Business credit lines often come with higher interest rates compared to traditional loans. There may also be additional fees, such as annual fees or transaction fees, which can add to the overall cost of borrowing. ● Variable Interest Rates: Most business credit lines have variable interest rates, which means the cost of borrowing can increase if interest rates rise. This unpredictability can make budgeting for repayments more challenging. ● Requires Strong Credit: Qualifying for a business credit line typically requires a strong credit history and financial performance. Startups or businesses with poor credit may find it difficult to qualify. A money bucket probably sounds pretty nice right about now, but there’s another option that may be even better for you: a bank business loan. Bank Business Loans: Your Rocket Fuel A bank business loan is essentially a financial boost provided by a bank to help businesses fund their growth, cover operational costs, or finance major purchases. It’s a little like a giant booster rocket for your business. You're ready to launch into the market and explore new opportunities, but you need a big burst of cash to make the necessary investments to get off the ground. The bank steps in (usually backed by the Small Business Administration), agreeing to give you the funds you need, but with a catch: you need to promise to repay the loan, just like you would with a home mortgage, but over a much shorter period of time. During the pandemic, the SBA made loans available at 3.75% interest payable over 30 years. Now, though, SBA loans are typically in the 7-10% range, and payable over a much shorter period. And, several private lending options have sprung up, like Quiq capital and Hum, with rates available in the 15-20% range, payable over 1-3 years. Let’s look at the advantages of using a bank business loan: Lower Interest Rates: Bank loans generally offer lower interest rates compared to business credit lines. For long-term financing needs, a loan can be a more cost-effective option. Fixed Payments: Loans come with fixed repayment schedules, making it easier for businesses to budget and plan for the future. Fixed interest rates also protect against the cost increases that can affect credit lines if interest rates rise. Lump Sum Financing: Loans provide a lump sum of cash upfront, which can be crucial for significant investments such as purchasing real estate, heavy machinery, or undertaking major renovations. Of course, there are also disadvantages, some of which are: ● Less Flexibility: Once a loan is disbursed, you cannot borrow more without applying for a new loan. This can be a drawback for businesses that encounter unexpected expenses or opportunities that require additional funding. ● Early Repayment Penalties: Some loans come with early repayment penalties, making it costly if you decide to pay off the loan ahead of schedule. This can limit your ability to reduce interest costs by repaying early. ● Lengthy Application Process: The process of securing a loan can be lengthy and require extensive documentation, including business plans, financial statements, and personal financial information. This can be a significant hurdle for new or small businesses. Phew! That was a lot of information. But now you know what business loans and lines of credit are, and you’re aware of the pros and cons of each. So let’s switch gears and discuss how to pick the right option for you. Which is Better for My Business? The decision between a line of credit or a business loan largely depends on your business's specific needs and financial situation. What are your immediate and long-term priorities? If you require flexibility and anticipate needing funds on an ongoing basis for short-term needs, a business credit line might be more suitable. It offers the ability to manage cash flow effectively, though often at the cost of higher interest rates, so be aware of the trade-off. Conversely, if you have a one-time, large-scale investment in mind, a loan might be more appropriate. Loans offer the advantage of lower interest rates and fixed repayment schedules, making them ideal for long-term financing needs. However, the lack of flexibility and potential early repayment penalties are important considerations. In either case, it's crucial to carefully consider your business's financial health, the predictability of your cash flow, and your ability to meet repayment obligations. It's also wise to consult with a trusted advisor who can provide tailored advice based on your business's unique circumstances. Ensure You’re Making the Right Decisions We’re here to serve as the trusted advisor you need to ensure you’re making the right financing decisions for your business. You don’t need to go it alone. Together, we’ll evaluate all your options in detail, considering your specific financial goals, then help you plan your future - with the funding you need. Schedule a complimentary call with us today to get started. schedule

Death is a personal and private affair that affects the deceased’s close family and friends. However, there is at least one aspect of death that may require state oversight: probate. Probate is the court-supervised process of either (a) carrying out the instructions laid out in the deceased’s will or (b) applying state law to distribute a deceased’s accounts and property to their family members if the deceased did not have a will. The main purpose of the probate process is to distribute the deceased’s money and property in accordance with the will or state law. Not all wills, and not all accounts and property, need to go through probate court. And just because a will is filed with the probate court does not mean a probate needs to be opened. But whether or not probate is necessary, most state laws require that a will be filed when the creator of the will (testator) passes away. Understanding Probate, Wills, and Estates Estates, wills, and probate are distinct, yet interrelated, estate planning concepts. ● An estate consists of everything that a person owns—including their personal possessions, real estate, financial accounts, and insurance policies. Virtually everyone leaves an estate when they die. ● A will is the legally valid written instructions that a person creates describing how they want their money and property distributed upon their death. Wills are highly recommended, but there is no legal requirement to have one. To make a will legally valid, it must be properly executed in accordance with state law. Executing a will involves signing the document in front of witnesses. Additionally, at the time of signing, the creator must have capacity (i.e., be of sound mind). ● Probate is the legal process that formally distributes the accounts and property that are in the decedent’s sole name, do not have a beneficiary designated, and have not been placed into a living trust prior to the decedent’s death (sometimes referred to as probate assets). During probate, a decedent’s probate assets are identified and gathered, their debts are paid, and the probate assets are distributed to beneficiaries named in the will or their heirs as determined by state statute if there was no will. Probate with a Will Assuming that a decedent does have a will, here is how probate typically proceeds: ● The person nominated in the will to act as executor (sometimes called the personal representative) files a copy of the death certificate, the original will, and any required documents or pleadings with the probate court. If the person nominated in the will does not file these documents with the court, state statute will determine who else has priority to make such filings (possibly another family member, an attorney, or even a creditor of the decedent). ● The court examines the will and other documents filed to confirm their validity and gives the named executor the legal authority to carry out the decedent’s wishes, as specified in their will. This legal authority is conferred in a court-issued document called letters of authority, letters testamentary, letters of administration, or another similar name. ● The individual appointed as executor inventories and values the decedent’s estate assets and identifies any outstanding debts of the estate, such as loans and credit card debt. ● Once estate debts are paid, the remaining accounts and property are distributed to named beneficiaries and the estate is closed, ending the probate process. The length of a probate can vary depending on many factors, including the size of the estate, state laws, and whether the will is deemed invalid or contested. Avoiding Probate In some cases, avoiding probate altogether can cut down on the amount of time it takes to wind up a deceased person’s affairs. There are also other reasons to avoid probate, such as keeping probate filings out of the public record and saving money on court costs and filing fees. Beneficiary designations, joint ownership, trusts, and affidavits are common ways to avoid probate. Here are some examples of these probate-avoidance tools in action: ● Pensions, retirement accounts like 401(k)s, and other accounts that allow for designated beneficiaries may not need to be probated. Transfer-on-death (TOD) and payable-on-death (POD) accounts are generally treated the same as accounts that have a beneficiary designation. ● Accounts and property that are jointly owned and have a right of survivorship can bypass probate. ● Accounts or property held in a trust may also bypass probate. But trusts are not without administrative and cost burdens. Also, if the deceased forgot to transfer ownership of an account or piece of property to the trust, a pour-over will may be needed to transfer those accounts and property to the trust through the probate process upon the trustmaker’s death. ● Some states have laws that allow probate to be skipped if the value of an estate is below a specified value and does not contain any real estate (often referred to as a small-estate exception). The threshold value for qualifying for this exception varies by state. For example, probate can be skipped in Arizona, Texas, and Florida for estates worth less than $75,000. In California, the threshold is $184,500; in New York, it is $30,000. Filing a Will versus Opening Probate Filing a will with the probate court and opening probate are separate actions. A will can be filed whether or not probate is needed. Remember that probate is needed only under certain circumstances, such as when the decedent passed away while owning probate assets. Further, not only can a will be filed with the court when a probate is not needed, some state laws actually require it. Some state laws require the person who has possession of a decedent’s will to file it with the court within a reasonable time or a specified time after the date of the decedent’s death. The consequences for failing to file a will vary by state but may include being held in contempt of court or payment of fines. Additionally, the person in possession of a will might also be subject to litigation by heirs who stand to benefit from the estate under the terms of the will. The latter also applies if the will-holder files a will but does not file for probate. Failing to file for probate (when probate is necessary) prevents inheritances from being properly distributed. These legal consequences are usually imposed only on a will-holder who willfully refuses to file a will. If someone you love has passed away and you have their will in your possession, we recommend that you work with an experienced probate attorney who can assist you in determining whether a probate must be opened and whether the will needs to be filed. Avoid Probate Issues When Drafting a Will Probate avoidance may be one of your goals when creating an estate plan. You should also consider implementing tools in your estate plan to minimize issues that may arise if your estate does require probate. Your will may have been written years ago and might not reflect current circumstances. You could have acquired significant new accounts or property, experienced a birth or death in the family, left instructions that are vague or generic, or chosen an executor who is no longer fit to serve. An outdated or unclear will can spell trouble when it is time to probate your estate, making it important to identify—and address—issues that could lead to problems, including will contests and disputes.  It is recommended that you update and review your estate plan every three to five years or whenever there is a significant life change or a change in federal or state law. You cannot be too careful when stating your final wishes. For help drafting an airtight will that avoids possible complications, please contact us.

Many people believe that estate planning is only about planning for their death. But planning for what happens after you die is only one piece of the estate-planning puzzle. It is just as important to plan for what happens if you become unable to manage your own financial or medical affairs while you are alive (in other words, if you become incapacitated). What happens without an incapacity plan? Without a comprehensive incapacity plan, if you become incapacitated and unable to manage your own affairs, a judge will need to appoint someone to take control of your money and property (known as a conservator or guardian of the estate) and to make all personal and medical decisions for you (known as a guardian or guardian of the person) under court-supervised guardianship and conservatorship proceedings. The guardian and conservator may be the same person, or there may be two different people appointed to these roles. Depending on state requirements, the conservator may have to report all financial transactions to the court annually, or at least every few years. The conservator is also typically required to obtain court permission before entering into certain financial transactions (such as mortgaging or selling real estate). Similarly, the guardian may be required to obtain court permission before making life-sustaining or life-ending medical decisions. The court-supervised guardianship and conservatorship are effective until you either regain the ability to make your own decisions or you pass away. Who should you choose as your financial agent and healthcare agent?  Guardianship and conservatorship statutes are the state’s default plan for appointing the person or people who will make decisions for you if you cannot make them for yourself. This default plan, however, may not align with the plan you would have put into place on your own. Most importantly, state statutes may give priority to someone to act as your guardian or conservator who is not the person you would have selected had you engaged in proactive planning. Rather than having a judge appoint these important decision-makers for you, your incapacity plan allows you to appoint the trusted individuals you want to carry out your wishes. There are two very important decisions you must make when putting together your incapacity plan: Who will be in charge of managing your finances if you become incapacitated (your financial agent)? Who will be in charge of making medical decisions on your behalf if you become incapacitated (your healthcare agent)? The following factors should be considered when deciding who to name as your financial agent and healthcare agent: ● Where does the agent live? With modern technology, the distance between you and your agent may not matter. Nonetheless, someone who lives nearby may be a better choice than someone who lives in another state or country, especially for healthcare decisions. ● How organized is the agent? Your agent will need to be well-organized to manage your healthcare needs, keep track of your accounts and property, pay your bills, and balance your checkbook, all on top of managing their own finances and family obligations. While you may trust many of your loved ones to act on your behalf, not all of them will have the capabilities and organizational skills desired for this position. ● How busy is the agent? If the agent has a demanding job or travels frequently for work, then the agent may not have the time required to take care of your finances and medical needs. ● Does the agent have expertise in managing finances or the healthcare field? An agent with work experience in finance or medicine may be a better choice than an agent without it. Keep in mind that you can appoint different people for these different roles. What should you do? If you do not proactively plan for incapacity before you become incapacitated, your loved ones will likely have to go to probate court to have a guardian and conservator appointed. This would be a hassle, taking time and costing money during what is already likely to be a very stressful and emotional time. Part of creating an effective incapacity plan means carefully considering who you want as your financial and medical agents. You should also discuss your choice with the person you select to confirm that they are willing and able to serve. This would also be a great opportunity to discuss with them your wishes as to the medical and financial issues that are most important to you. Our firm is ready to answer your questions about incapacity planning and assist you with choosing the right agents for your plan.

Today, we're diving into a topic that is absolutely crucial: estate planning for your parents. As they gracefully navigate their golden years, ensuring their peace of mind (and yours!) becomes a top priority. Whether they raised you the way you want, or showed you how you want to do it differently, as your parents' age, one of the very best things you can do for your own best future, and that of your entire future lineage - your children, grandchildren, and beyond - is to take great care of the people you were born to or raised by. The questions you need to start asking now are: How will you help them if they become ill or injured? Who will take care of their bills and make sure their health needs are met? How do they want to be cared for, if and when they cannot care for themselves? The starting place is open conversation and a power trio of estate planning tools swoop in to save the day: the General Power of Attorney, the Power of Attorney for Healthcare (including a Living Will), and the HIPAA Waiver. Now, let's break down why these tools are the unsung heroes of comprehensive estate planning for your parents, and how to bring them up so you can support your parents to get them created or updated, no matter how much or how little money they have in the bank. 1. General Power of Attorney (POA) A General Power of Attorney (or POA) grants a person you name (often a family member or trusted friend) the authority to manage your financial affairs if you become unable to do so yourself. From handling bills to making investment decisions, the General POA ensures that your financial matters are handled, whether you’re experiencing a temporary illness or a long-term inability to manage your money, such as in the case of memory problems. If your parents have assets that you must be able to access easily in the event of their incapacity, you may decide that a POA for accessing their accounts is not sufficient, as it can be difficult to get access to bank accounts even with a POA in place, and will require court action. In that case, the best course of action is to ensure that their assets are titled in the name of a trust, with you or someone you trust as the named successor Trustee, who can step in and handle financial matters for your parents, without any court involvement, when needed. 2. Power of Attorney for Healthcare and Living Will It’s possible your parents already lean on you for guidance with their healthcare decisions, and it’s equally possible they don’t share details of their healthcare with you at all. No matter which side of the spectrum your parents stand on, the question of what will happen to their healthcare needs if they become seriously ill can feel overwhelming — and trust me, it’s even more overwhelming during moments of medical crisis. Thankfully, a Power of Attorney for Healthcare and Living Will allow your parents to explain their medical wishes to guide medical providers and family members on what treatments and life-saving measures they’d like to have, even in the toughest of times. The Power of Attorney for Healthcare designates someone to make these medical decisions on behalf of your parents if they're unable to do so. This trusted individual becomes the advocate, ensuring that healthcare choices align with your parents' values and preferences. Meanwhile, the Living Will – also known as a Declaration to Physicians – outlines your parents' wishes regarding life-sustaining treatments in the event they're unable to communicate. From CPR to artificial hydration, this document provides clarity amidst uncertainty, giving both your parents and their loved ones peace of mind that the decisions being made around their care and what they themselves would want. 3. HIPAA Waiver In the digital age, privacy is paramount – but what happens when privacy becomes a barrier to essential healthcare-related communication? Enter the HIPAA Waiver, the ultimate tool for opening communication roadblocks in times of need. HIPAA (the Health Insurance Portability and Accountability Act) protects the privacy of individuals' medical records. While this is crucial for safeguarding sensitive medical information, it can sometimes hinder the flow of communication between healthcare providers and family members, especially for the elderly and those incapacitated by an illness or injury. By signing a HIPAA Waiver, your parents authorize specific individuals to access their medical information and speak directly to their medical providers, ensuring seamless communication and informed decision-making. This is essential in medical emergencies but is also extremely helpful if your parents need help hearing their doctor or understanding their medical advice. How to Bring Up Estate Planning With Your Parents The best way to bring up estate planning with your parents is to get your own planning handled first. Then, let your parents know that in the process of handling your own planning, your lawyer raised the question of whether you were an agent under anyone else’s power of attorney, or named as a successor Trustee in your parents' Trust, or if you are going to be caring for aging parents at some point. And, if you have worked with a lawyer and they didn’t ask you those questions, give us a call and let’s review your plan and your parents’ planning to make sure that everything you’ll need is dialed in. This can all get quite messy very quickly, and now is the time to talk with your parents. Why the Urgency? You might be thinking, "Why the rush? Can't we tackle this later?" Here's the scoop: Life is unpredictable, and procrastination can be a costly gamble. Waiting until a crisis strikes to get these tools in place can lead to a whirlwind of legal and emotional chaos, leaving your parents' wishes unfulfilled and their affairs in disarray. By proactively planning ahead, you're not just checking items off a to-do list – you're investing in your parents' peace of mind and yours. Don't wait for a storm to hit – schedule a 15-minute call today to learn how our unique Life & Legacy Planning process is designed with your family's well-being in mind, offering personalized guidance and support every step of the way. Schedule

Your clients are the heartbeat of your business, and establishing a deep sense of trust with them is the cornerstone of growth and success. In a world where skepticism and misinformation prevail, nurturing authenticity and reliability in your brand is essential to building and keeping your client base. In this blog post, we will delve into effective strategies that will not only build client connections but also foster trust through the power of your business' branding and communication. Plus, we’ll explore how living your brand of trust, transparency, and fairness throughout your company’s Legal, Insurance, Financial, and Tax systems will set your company up for success. Show Clients You’re Serious By Using Consistent Branding To attract and keep clients, they need to trust that your business isn’t just making things up as it goes or running on fumes - that it might close shop in a year or completely change its style as it discovers who it is. Whether your business has been established for years or is in its early stages, clients want to feel like your company has a strong identity and the experience and knowledge they can rely on to meet their needs. One powerful way to convey your professionalism and reliability no matter what stage your business is in is through consistent branding. When clients encounter your brand, whether it's through your website, social media, or marketing materials, they should experience a seamless and cohesive visual and messaging experience. Your brand colors, look, and voice should be consistent across each platform. If your Instagram posts are casual and funky but your website is serious and polished, clients will wonder whether they’ve landed on the correct webpage or if your company even knows who it's serving. By maintaining a consistent brand image, you signal to clients that you take your business seriously and that you are dedicated to delivering a high-quality experience. Consistent branding instills confidence and reassurance in clients, assuring them that they can trust your business to fulfill its promises and provide the value they seek. Invest time and effort in crafting a consistent brand identity that reflects your values, resonates with your target audience, and establishes your business as a trusted and credible partner in their journey. Show the People Behind the Business From an outside perspective, businesses often create an image in our minds of a faceless corporation that seems to operate autonomously. But as a business owner, you know that couldn’t be farther from the truth. Behind every successful business are passionate individuals who genuinely care about their work and their clients. Humanizing your brand dissolves your company’s anonymity and allows your clients to connect on a deeper level with your business because they’ll be able to see the real names and faces of people they can relate to - not just a pretty logo or website. Introduce the faces and stories of your team members sharing their expertise and values across your marketing channels and your website. This could look like a weekly picture of different team members and a short quote about what they love about their work, or include a brief biography of your business’ key players on your company website. Showcasing your team doesn’t need to consume your branding efforts, but simply offering a glimpse into the human side of your organization will foster a sense of what marketing experts call the “know, like, and trust factor” that helps you attract and keep your clientele. Keep an "Open Door" Policy We’ve all been there. You come across a website that catches your eye. You want to purchase their services, or just learn more about what their business is all about. But then, you can’t find the business’ email, phone number, or contact information anywhere, or it takes you forever to locate it. There’s nothing more frustrating than wanting to contact a business and not being able to. Most importantly, not being able to find a company’s contact information sets a tone of secrecy that can turn you off entirely to that brand, even if secrecy isn’t the company’s intention at all. Creating an environment of open communication is crucial for establishing trust for your business, and it starts by welcoming communication and making it easy for clients to get in touch. To do this, encourage your clients to voice their thoughts, concerns, and feedback. Provide them with various channels to reach out, such as email, phone, social media, or live chat. Be prompt and attentive in your responses, showing that you genuinely care about their inquiries and are committed to resolving any issues they may face. By being accessible and responsive, you build a solid foundation of trust and foster a strong client-business relationship before the potential client hires you or buys from you. Bringing Trust and Authenticity to Every Aspect of Your Business Building client connection and trust through your business's branding and communication is an ongoing journey that requires consistency, authenticity, and open dialogue. By demonstrating professionalism through a unified brand experience, showing the people behind your business, and fostering open communication you create a warm and relatable environment that builds trust. Remember, trust is the foundation upon which long-term success and growth are built. Embrace these strategies, and watch your client connections flourish. But don’t forget- building trust shouldn’t end with your client-facing branding. It’s also important to foster the same sense of trust and communication internally through transparency in your business’ contracts and workplace policies, as well as in the communication between team members and management. If you’re ready to build a business that stands on trust and shows your client base the heart and service your company has to offer, give us a call. Our focus is establishing a strong foundation for your business by making sure your Legal, Insurance, Financial, and Tax structures are in place and that your business exemplifies trust and connection from the inside out so you can make your dream business a reality.  Click the link to schedule your 15-minute call to learn more.

Your clients are the heartbeat of your business, and establishing a deep sense of trust with them is the cornerstone of growth and success. In a world where skepticism and misinformation prevail, nurturing authenticity and reliability in your brand is essential to building and keeping your client base. In this blog post, we will delve into effective strategies that will not only build client connections but also foster trust through the power of your business' branding and communication. Plus, we’ll explore how living your brand of trust, transparency, and fairness throughout your company’s Legal, Insurance, Financial, and Tax systems will set your company up for success. Show Clients You’re Serious By Using Consistent Branding To attract and keep clients, they need to trust that your business isn’t just making things up as it goes or running on fumes - that it might close shop in a year or completely change its style as it discovers who it is. Whether your business has been established for years or is in its early stages, clients want to feel like your company has a strong identity and the experience and knowledge they can rely on to meet their needs. One powerful way to convey your professionalism and reliability no matter what stage your business is in is through consistent branding. When clients encounter your brand, whether it's through your website, social media, or marketing materials, they should experience a seamless and cohesive visual and messaging experience. Your brand colors, look, and voice should be consistent across each platform. If your Instagram posts are casual and funky but your website is serious and polished, clients will wonder whether they’ve landed on the correct webpage or if your company even knows who it's serving. By maintaining a consistent brand image, you signal to clients that you take your business seriously and that you are dedicated to delivering a high-quality experience. Consistent branding instills confidence and reassurance in clients, assuring them that they can trust your business to fulfill its promises and provide the value they seek. Invest time and effort in crafting a consistent brand identity that reflects your values, resonates with your target audience, and establishes your business as a trusted and credible partner in their journey. Show the People Behind the Business From an outside perspective, businesses often create an image in our minds of a faceless corporation that seems to operate autonomously. But as a business owner, you know that couldn’t be farther from the truth. Behind every successful business are passionate individuals who genuinely care about their work and their clients. Humanizing your brand dissolves your company’s anonymity and allows your clients to connect on a deeper level with your business because they’ll be able to see the real names and faces of people they can relate to - not just a pretty logo or website. Introduce the faces and stories of your team members sharing their expertise and values across your marketing channels and your website. This could look like a weekly picture of different team members and a short quote about what they love about their work, or include a brief biography of your business’ key players on your company website. Showcasing your team doesn’t need to consume your branding efforts, but simply offering a glimpse into the human side of your organization will foster a sense of what marketing experts call the “know, like, and trust factor” that helps you attract and keep your clientele. Keep an "Open Door" Policy We’ve all been there. You come across a website that catches your eye. You want to purchase their services, or just learn more about what their business is all about. But then, you can’t find the business’ email, phone number, or contact information anywhere, or it takes you forever to locate it. There’s nothing more frustrating than wanting to contact a business and not being able to. Most importantly, not being able to find a company’s contact information sets a tone of secrecy that can turn you off entirely to that brand, even if secrecy isn’t the company’s intention at all. Creating an environment of open communication is crucial for establishing trust for your business, and it starts by welcoming communication and making it easy for clients to get in touch. To do this, encourage your clients to voice their thoughts, concerns, and feedback. Provide them with various channels to reach out, such as email, phone, social media, or live chat. Be prompt and attentive in your responses, showing that you genuinely care about their inquiries and are committed to resolving any issues they may face. By being accessible and responsive, you build a solid foundation of trust and foster a strong client-business relationship before the potential client hires you or buys from you. Bringing Trust and Authenticity to Every Aspect of Your Business Building client connection and trust through your business's branding and communication is an ongoing journey that requires consistency, authenticity, and open dialogue. By demonstrating professionalism through a unified brand experience, showing the people behind your business, and fostering open communication you create a warm and relatable environment that builds trust. Remember, trust is the foundation upon which long-term success and growth are built. Embrace these strategies, and watch your client connections flourish. But don’t forget- building trust shouldn’t end with your client-facing branding. It’s also important to foster the same sense of trust and communication internally through transparency in your business’ contracts and workplace policies, as well as in the communication between team members and management. If you’re ready to build a business that stands on trust and shows your client base the heart and service your company has to offer, give us a call. Our focus is establishing a strong foundation for your business by making sure your Legal, Insurance, Financial, and Tax structures are in place and that your business exemplifies trust and connection from the inside out so you can make your dream business a reality.  Click the link to schedule your 15-minute call to learn more.

Your mortgage, like the rest of your debt, does not simply disappear when you die. If you leave your home that has an outstanding loan to a beneficiary in your will or trust, your beneficiary will inherit not only the property but also the outstanding debt. They may have the right to take over the mortgage and keep the home, or they may choose to sell it and keep the proceeds. A few different scenarios can unfold, however, depending on the mortgage terms and the estate plan instructions. Ultimately, planning for the transfer of real estate upon your death can make the process much easier for your loved ones. American Housing Debt Exceeds $12 Trillion The US homeownership rate stood at around 66 percent in 2022, according to the US Census Bureau. The Federal Reserve Bank of New York reported at the end of September 2023 that Americans were carrying $12.14 trillion in mortgage balances. Housing debt makes up over 72 percent of all US consumer debt. A home is the largest purchase that most people will ever make, and many borrowers pass away before receiving the deed to their house free and clear. A survey from CreditCards.com found that 37 percent of Americans died with unpaid mortgages. The number of Americans who have received or expect to receive an inheritance has increased in recent years. At the same time, 73 percent of Americans are likely to die with debt, including unpaid mortgages. Unpaid Mortgages on Inherited Homes A 2023 Charles Schwab survey revealed that more than 3/4 of parents intend to leave a home to their children in their estate plan. However, nearly 70 percent of those who expect to inherit a home from their parents say they will sell it due to increasing real estate costs. Deciding what to do with a family property that is passed down to the next generation can be an emotional as well as a financial decision. While the sentimental value of a home is typically a strong motivator for holding on to it, beneficiaries may move on from an inherited home because of financial considerations. If a couple co-signed a home loan together and one spouse predeceases the other, the surviving spouse must continue making mortgage payments. A surviving spouse may also be responsible for paying back a mortgage taken out by the deceased spouse alone if the couple lives in a community property state such as Arizona, California, Texas, or Washington. Outside of co-signers and community property spouses, the loved ones of a decedent are not typically personally responsible for making mortgage payments on the decedent’s home unless they receive ownership of the property, as in one of the following scenarios. One beneficiary inherits the property through a will, trust, or deed. A person can leave a house to a loved one after their death under the terms of a will or trust, or with the use of a transfer-on-death deed or Lady Bird deed (in those states that permit these forms of deeds to enable real property to avoid probate and pass automatically to a beneficiary). When the home transfers, a mortgage or loan secured by the home also transfers. The person who inherits the home must pay off the mortgage with other funds or sell the property and apply the proceeds to pay off the mortgage. In certain cases, they may be able to take over (or assume) the existing mortgage and have it transferred to them, with the beneficiary continuing to make the monthly mortgage payments. Additionally, some lenders might work with the new borrower to refinance the loan and change the terms. Multiple beneficiaries inherit the property through a will, trust, or deed. Multiple beneficiaries who inherit a property through a will, trust, or the appropriate deed have the same options for an inherited mortgage as a single beneficiary: they may be able to assume the mortgage (as co-borrowers), use other funds to pay off the mortgage, or sell the property and use the sales proceeds to pay off the mortgage. Any option requires all beneficiaries to be on the same page. One or more beneficiaries can buy out the shares of the other beneficiaries, although higher home prices and mortgage rates could make it impractical for one or more beneficiaries to buy out the other beneficiaries. If a consensus cannot be reached, the court may order the sale of the property and a division of the proceeds. Heirs inherit the property through the probate process. Gifting a home to a beneficiary or beneficiaries assumes that the original homeowner had a will or trust as part of an estate plan. This is an unreliable assumption, though, since roughly 2/3 of Americans do not have an estate plan. Dying without a will or trust means that the court will appoint an executor or personal representative to distribute the decedent’s money and property and settle their debts. Because the home is part of the unsettled probate estate, the mortgage on the home becomes part of the probate estate as well. The executor may use other money and property from the probate estate to make mortgage payments until the home is sold or transferred to the rightful heir. If the mortgage is not paid off during the probate process, the heir will take ownership of the home subject to the mortgage, and the options discussed in the two scenarios above will apply. Make a Plan to Pass on Your Home A parents’ home is often a place of cherished family memories. Leaving a home to children is a common way to keep a family legacy alive and transfer wealth. However, rising costs and evolving preferences are contributing to declining interest among children in keeping their parents’ homes. A home with a mortgage presents additional challenges that should be accounted for in an estate plan. For example, your plan can contain provisions that dedicate funds to help loved ones pay for an inherited home or provide additional instructions about how to distribute home sale proceeds among beneficiaries. As part of your estate plan, you can even refinance your mortgage now to secure more favorable terms for your beneficiaries after your passing. An estate planning attorney can offer advice that aligns with your legacy goals and family situation. To make the transfer of a home as seamless and efficient as possible, contact our attorneys to schedule an appointment. Your mortgage, like the rest of your debt, does not simply disappear when you die. If you leave your home that has an outstanding loan to a beneficiary in your will or trust, your beneficiary will inherit not only the property but also the outstanding debt. They may have the right to take over the mortgage and keep the home, or they may choose to sell it and keep the proceeds. A few different scenarios can unfold, however, depending on the mortgage terms and the estate plan instructions. Ultimately, planning for the transfer of real estate upon your death can make the process much easier for your loved ones. 

Family members with special needs may require assistance throughout their lives. If you want to ensure that a loved one with a disability is taken care of after you are gone, you can help manage resources for them by using a third-party special needs trust (SNT). Also known as a supplemental needs trust, a third-party SNT is funded with assets (money and property) that do not belong to the special needs beneficiary but are meant to be used for their benefit. Third-party SNTs allow the beneficiary to receive some benefit from the trust while preserving the beneficiary’s eligibility for means-tested public assistance programs such as Medicaid and Supplemental Security Income (SSI). When the beneficiary passes away, whatever funds remain in the third-party SNT can pass to other family members. Choosing the right trustee to manage a third-party SNT is a crucial decision. The person selected for this role must understand their responsibilities and fulfill them in a way that does not jeopardize the beneficiary’s government benefits. SNTs and Third-Party SNTs Explained There are two main types of SNTs: first-party SNTs and third-party SNTs. Both are intended to ensure that a person with a disability or functional needs can receive financial support from the trust while preserving their government benefits. What differentiates these two types of trusts is the source of trust funding and the government’s entitlement to a portion of the trust’s funds. ● First-party SNTs are funded with first-party money (i.e., the beneficiary’s own assets). Typically, this type of SNT is set up by a person with special needs if they receive a windfall (e.g., a personal injury or medical malpractice settlement) or if they become disabled at a time when they have significant assets but need to qualify for means-based benefits. ● Third-party SNTs are established by a parent, grandparent, sibling, or other person and funded with their assets rather than the assets of the beneficiary—including money, life insurance policies, real estate, and investments—to benefit a family member with special needs. A third-party SNT can be created in two ways: o A standalone third-party SNT is created during the lifetime of the trustmaker, is effective immediately upon creation, and remains effective after the death of the trustmaker. It is eligible to receive assets from multiple sources during and after the trustmaker’s lifetime. o A testamentary third-party SNT is created as part of a person’s last will and testament and does not come into existence until the person who created the will passes away. At the time of death, designated estate assets are transferred to the trust and the individual with special needs becomes the beneficiary of the trust. SNTs and Government Benefit Reimbursement Whichever type of SNT is created, whether first-party or third-party, standalone or testamentary, the assets in the trust are legally owned by the trust—not the beneficiary. As a result, the special needs beneficiary is not disqualified from SSI or Medicaid, which have income and resource limits for enrollees. There is an important difference, however, between first-party and third-party SNTs in terms of government benefit reimbursement: ● In a first-party SNT, when the beneficiary dies, the state Medicaid agency is entitled to reimbursement for the full amount paid on behalf of the beneficiary during their lifetime. This could mean fully exhausting the remaining trust funds to repay state Medicaid programs. Only after Medicaid reimbursement has been satisfied can the trust balance be distributed to other beneficiaries named in the trust by the trustmaker. ● This Medicaid repayment obligation does not apply to a third-party SNT because the assets it contains never belonged to the beneficiary. When the beneficiary of a third-party SNT dies, all remaining assets can pass to other named beneficiaries. Ultimately, the government will not get any portion of the trust funds. Responsibilities of a Third-Party SNT Trustee Once the decision is made to create a third-party SNT, the next, and equally important, decision is to select someone to serve as trustee. The trustee is the person responsible for managing the SNT on behalf of the disabled beneficiary. They administer the trust and manage its assets according to the trust’s terms. More than one individual can serve as trustee. A trustee can also hire an attorney or other professional to help them meet their legal duties. A trustee has a fiduciary duty to act in the best interests of the trust beneficiary. Broadly, in the SNT context, they are required to ensure the beneficiary remains eligible for government benefits by providing additional financial support from the trust for specific and limited purposes. For example, the trustee may use the trust funds to supplement the beneficiary’s government benefits—but not replace or duplicate them—by distributing funds to pay for things like education, recreation, and vacations. A trustee’s duties can include the following: ● Handling trust distributions to the beneficiary ● Overseeing investments of trust assets ● Maintaining trust records ● Filing the trust’s taxes ● Communicating with the beneficiary and other involved family members Third-party SNT trustees have a big responsibility. Among other things, they must understand the rules and regulations surrounding government benefits and allowable distributions. Using an SNT to provide cash or cash equivalents to the beneficiary, or to pay for the beneficiary’s food or shelter, could disqualify a beneficiary from public benefits. In all trust-related matters, the trustee must act to ensure the beneficiary maintains the highest quality of life possible. Failure to uphold their fiduciary duty could not only harm the beneficiary, but also lead to legal action against the trustee. A new trustee may have to be named. If estate planning documents do not name a successor trustee, the court may need to appoint somebody to serve as trustee. Choosing a SNT Trustee Special needs trusts have highly technical terms and administrative requirements, and the rules governing them are very complicated. A simple mistake on the part of the trustee could unintentionally hurt the beneficiary. A layperson named as the trustee of an SNT can hire an attorney to provide guidance and assistance; they may need to do so to satisfy their fiduciary duty and make sure the disabled beneficiary receives appropriate support. Attorney fees can be paid out of the trust. Alternatively, an SNT can designate a professional trustee to oversee the trust. Hiring a professional trustee can increase trust costs, but a trustee who has experience with SNTs may be better suited than a family member to fulfill the trustee’s many important responsibilities.  A special needs attorney from our office can assist family members with setting up an SNT. We also work with SNT trustees to meet their legal duties and maximize trust benefits. To discuss your goals and needs with a special needs planner, please contact us.

Trying to find the right lawyer to help with legal matters, especially if you are under the gun in a crisis situation, but even if you aren’t, can often feel like navigating uncharted waters. You want to find an attorney you like who will understand your family’s needs, but you also have to consider the cost of the attorney you’re hiring, and whether they can meet your immediate needs and be there for you in the long term. Depending on the type of legal work you need handled, whether it’s a high-conflict litigation matter, a one-off transactional matter, or ongoing strategic support, the options can be confusing to say the least. Maybe you’ve even considered a legal insurance plan or a pre-paid legal program. While the idea of legal insurance is fantastic, the execution is often lacking. In this blog, we’ll explore your options for hiring a lawyer just by looking at the legal billing models. In future articles, we’ll consider other factors, such as the benefits of consistent relationships, strategic guidance, and proactive risk prevention. In addition, for the purposes of this article, we’ll focus on proactive estate planning, and touch on some of the other more reactive situations, such as crisis planning to support an elder who needs immediate nursing care or a high-conflict divorce or business break-up. The Pitfalls and Costs of Hourly Billing Hourly billing, tracked and invoiced in 6-minute increments, was the standard legal billing model for generations. If you’ve ever hired a lawyer billing by the hour, you probably experienced the reality where you really didn’t want to share too much with that lawyer, and wanted to keep your conversations as concise as possible, always tracking whether the conversation strayed into anything personal and perhaps wondering “am I getting billed for this?” As a result, when hiring an attorney who bills by the hour, you’ll likely find yourself hesitant to contact your attorney with questions or additional pieces of information because you don’t want to incur extra costs or get a surprise bill in the mail. This creates a barrier to open communication with your lawyer and can keep you from getting the legal support you truly need. Or, you may not even think about how your lawyer is billing, and after a quick phone call to your lawyer here and an email to them there, you could be caught off guard by how quickly those 6-minute increments add up to substantial invoices you weren’t planning on. This can harm your relationship with your lawyer, make it challenging to budget for legal services effectively, and can leave you feeling stressed about your legal bills instead of focusing on the reason that brought you to the lawyer in the first place. Complex cases or unforeseen complications can inflate your bill even more by prolonging the time your lawyer is needed to complete the work. Even without a complex case, hourly billing may unintentionally skew your lawyer's incentives. After all, a longer legal process means more billable hours for them. If you’re wondering if this is the case with your lawyer, it negatively impacts your sense of trust in your relationship with them. Hourly rates for lawyers can be as low as $125 per hour, and as high as $1000 or more per hour. In some big firms, they even get as high as $2000 per hour now. The general range seems to be $250-$650 per hour, depending on the type of matter. Because hourly billing comes with so many risks to the relationship with your lawyer and your bank account, whenever possible, we recommend that you work with a lawyer who is experienced enough in the type of matter they are handling for you that they are able to quote you a flat fee for a specific outcome related to the work you need handled. The Advantages of Flat Fees Choosing a lawyer who charges flat fees flips the script, offering a straightforward and transparent approach to legal billing. With flat fees, you know exactly what you'll pay from the outset, and what you’ll be delivered in return. As we say here in our office: everything is billed on a flat-fee basis, agreed to in advance, so there are no surprises. This transparency eliminates the stress of unexpected costs and allows you to plan for legal expenses more effectively. Flat fees give you and your lawyer room to speak freely about your needs without feeling as if you need to watch the clock or wonder if you’ve strayed too far afield in your conversation and connection. This means you can ask questions without worry, and leave it to your lawyer to set boundaries around whether any of the additions you may want would increase the fee for the services you need. The way we see this work in our office when we are focusing on your estate planning matters is that we’ve invested considerable time in coming up with a flat fee billing structure that’s based around the outcomes you desire, rather than the specific documents you need, and that is flexible to change and grow with you over time. For example, you may begin with a plan that is focused on keeping your kids in the care of people you know, love, and trust but doesn’t fully avoid the court process. Later, you might upgrade to a more comprehensive plan that focuses more on asset protection. The critical aspect here is that your fee is tied to the outcomes you desire, not the hours it takes or the documents we create. When an attorney charges a fee for their services that is based on the outcome you desire, you know you’re getting a comprehensive package, not just one or two documents or a set of hours that won’t actually deliver for you and your family at the end of the day. Keeping The Focus On You We specialize in providing comprehensive estate planning with a focus on our client relationships. That means charging a reasonable flat fee for a comprehensive plan where we can take the time to get to know you, your family, and your needs on an intimate level and tailor your fee to the outcomes you desire. Plus, we understand that planning for death and incapacity can be a lot to think about, and we want to give you the mental and emotional space to consider your estate planning options without the anxiety or distraction of a bill that changes every month. We want our time spent together to be entirely focused on you and your needs. If you’re ready to create an estate plan for the people you love that will serve and protect them for years to come, we invite you to reach out.  Schedule a complimentary discovery call with us to get started.