Blog – Bray Law Office

Why Planning Is the Greatest Gift You Can Give Your Loved Ones

Wed, 03 Dec 2025 18:00:06 GMT

For many people, the term estate planning brings to mind stacks of legal documents, a will, a trust, a healthcare directive, or powers of attorney. But estate planning isn’t just about creating documents. It’s about making sure the people you love are protected and supported when they need it most. It's ultimately about love, protection, and peace of mind.

Yet despite that truth, most people are unprepared. A survey from 2024 showed that only 32% of Americans have a will, a 6% decline from the previous year. That means most families are at risk of court involvement, conflict, and unnecessary costs at the very moment they are grieving.

In this article, you’ll learn why estate planning is one of the most important steps you can take for everyone you love. You’ll discover what happens when families don’t plan, how to create a plan that works, and why now is the perfect time to put your plan in place.

What Most People Miss: Estate Planning Is About People, Not Paperwork

The most common misconception we hear is that drafting a set of documents and signing them is how to create an estate plan. This misconception exists because it’s the traditional way estate planning has been done, and most people don’t know how insufficient documents alone are until they’re left dealing with a big legal and financial mess after a loved one has died. But you can avoid leaving a mess for those you love if you create a well-designed plan that goes beyond the paperwork.

A well-designed, complete plan makes life easier for all the people you love. It ensures they have the clarity, authority, and support they’ll need when something happens to you.

Imagine your loved ones trying to manage your affairs without knowing where your accounts are, how your bills get paid, or who should make medical decisions for you if you can’t speak for yourself. Without clarity and support, they could face months of confusion, stress, and court involvement. But with a proper plan in place, they’ll know exactly what to do and whom to turn to so they can focus on what really matters: caring for each other.

A well-designed estate plan doesn’t just pass on your assets. It passes on your values, your guidance, and your love. You will record the stories you want remembered, the traditions you hope will continue, and the lessons you’ve learned that you want your loved ones to carry forward. These are the true treasures your loved ones will cherish most. When you see planning this way, it becomes clear that it’s not something you do for yourself. It’s something you do for them.

As important as it is to understand what estate planning truly represents, it’s equally important to recognize the consequences of neglecting it.

What Happens When You Don’t Plan

Another misconception we hear is that people think they don’t have enough assets to warrant planning. This also isn’t true. Since estate planning is ultimately about people, you need a plan if you have anyone in your life whom you love.

No matter the size of someone’s estate, every lawyer who helps families after a death has seen it: the heartbreak that happens when planning was ignored, outdated, or incomplete.

People who never created a plan, or have an incomplete or failed plan, create a situation where their loved ones face long delays, expense, and family strife. Assets are frozen. Bills go unpaid. Grieving children are left to guess at their parents’ wishes, and often disagree about what those wishes were. Even simple omissions can lead to lost property, family disputes, or thousands of dollars in unnecessary legal fees.

And then there’s another danger: the illusion of planning. Many people think they’ve completed their estate plan because they used an online form or had a lawyer prepare documents years ago. But if those documents don’t reflect current laws, assets, or relationships, they can fail completely when they’re needed most. And when plans fail, the result isn’t just financial, it’s emotional. Loved ones who were once close may end up with irretrievably broken relationships. Precious time and energy are spent untangling confusion instead of being spent together in comfort and healing.

Estate planning isn’t a one-time task, but an ongoing act of care. The good news is that with the right guidance, your plan can protect your loved ones for life.

How to Create a Plan That Truly Works

Our planning process results in a well-designed, well-thought-out plan that works when you and your loved ones need it. It’s not documents-focused, it’s people-focused. Life & Legacy Planning is a comprehensive process designed to protect both your loved ones’ future and their peace of mind.

When you work with us, your plan begins with a Life & Legacy Planning Session, a working meeting that helps you understand exactly what would happen to your family and each of your particular assets if something happened to you now. During your session, you’ll gain clarity about your current situation and make informed choices about what’s truly best for the people you love. We’ll review your goals, relationships, assets, and values, then create a plan that ensures everything and everyone you care about will be protected exactly the way you intend.

Importantly, a Life & Legacy Plan is a living system, not a static set of papers. It includes an up-to-date inventory of your assets, clear instructions for your loved ones, and a built-in process for regular reviews as your life, the law, and your assets change. It’s a relationship-based approach that ensures your plan stays current and that your loved ones always have us as someone to turn to for help when they need it most.

By combining proactive legal planning with ongoing support, we help you avoid the very pitfalls that leave most families struggling after a loved one’s death. The result is confidence, not just that your documents are complete, but that everyone you love will be guided by someone who knows you, your wishes, and your story.

When you understand how powerful real planning can be, the next step becomes clear: act before it’s too late.

Your Next Step Happens Now

Take the step that too many people put off entirely, or put off until it’s too late.

If you already have a plan, let’s make sure it’s up to date and truly reflects your life today. If you don’t, now is the perfect time to begin.

We can help you create a Life & Legacy Plan that organizes your finances, protects your loved ones, and ensures your plan works exactly as you intend. You’ll walk away knowing your loved ones will have a trusted advisor to turn to when you no longer can. Life & Legacy Planning gives you peace of mind now, and gives your loved ones peace of mind for the future.

Schedule your complimentary 15-minute discovery call today to get started now.

Avoid These Common and Expensive Mistakes: How to Leave Assets to Minor Children

Wed, 26 Nov 2025 18:00:00 GMT

You love your children and want to ensure that they are always taken care of. The desire to provide for them may also be shared by their grandparents, aunts, and uncles. However, when leaving money and property to minor children, even the best intentions can lead to big problems. Common mistakes can cause chaos for your family. Here is what you need to know to protect and provide for the children you love.

Common Mistake: Using a Simple Will to Leave Assets to Minor Children

Many parents assume that a simple will is all they need for their estate plan since that is where they can nominate a guardian for their minor children. However, how the inheritances for the children will be handled often gets overlooked. A simple will requires that beneficiaries (even children) receive their inheritances outright in one lump sum. While most parents would prefer that their children receive an inheritance gradually—perhaps at certain ages or milestones—a simple will does not provide that kind of flexibility. Instead, once your child becomes an adult, the law requires the inheritance to be handed over in a single lump sum with no strings attached. Many parents assume this requirement will not be a problem because they believe that the guardian in their will can manage the inheritance for their child’s care.

Unfortunately, that is not how the law works. The inheritance does not automatically flow to the guardian but instead legally belongs to the children. And because minors cannot legally hold more than a small amount of money in their own names, the court must step in to appoint someone to manage the funds until the child becomes a legal adult (at age 18 or 21, depending on the state). At that point, whatever is left is turned over to the child in one lump sum with no restrictions.

The responsibilities of caring for your children and managing their money are separate and distinct. The court sometimes appoints the same person to handle both. Other times, different people are chosen depending on their strengths. ^[1] In addition to the concern about your child receiving a large sum of money at a young age, there is another complication:

Once the inheritance has come under court supervision, the conservator must regularly report back to the judge as to how the money is being used for your child’s benefit. In many cases, they will also need to obtain the court’s prior approval before certain expenditures can be made, which can add delays, extra costs, and ongoing oversight that many families find burdensome.

Common Mistake: Failing to Avoid Court Oversight of Your Children’s Inheritance

A court conservatorship for your minor children is a slow and likely expensive process that results in a rigid system with many rules. In most cases, nonordinary expenses (those beyond medical, educational, and normal living expenses) must have prior court approval. Because the court must apply the law the same way in every case, it cannot easily make exceptions for your child’s unique needs. For example, if your child would benefit from extra tutoring or specialized therapy, the court cannot automatically allow those expenses; it would require a separate request and approval process.

Keep in mind that every time the conservator must go to court, there are court fees. The conservator may also be entitled to compensation for the time they spend handling the matter, and an attorney will likely need to be involved as well. All these expenses come directly out of your children’s inheritance.

Correct Action: Using a Trust to Protect the Child and Their Inheritance

So what is a better way? Quite simply, using a trust. One way to use a trust is to create one in your will. Called a testamentary trust, this type of trust allows you to name someone to manage the inheritance (rather than having the court appoint a conservator) and decide when and how your children will receive their inheritance (rather than receiving it in one lump sum when they become a legal adult). However, this type of trust comes into existence only after you die and the will goes through probate. Probate is a court process that can cause delays and expenses that reduce the amount of money available for your children. In addition, because the details of your will and testamentary trust are made public during probate, everyone—including people who might try to take advantage of your children—can see what they inherited.

For most families, a better option is to use a revocable living trust. Like a testamentary trust, it lets you choose who will manage money and property for your minor children and how your children receive it. However, unlike a testamentary trust, a revocable living trust comes into existence immediately when you create it, so it can govern how your children receive financial support from you when you are deceased or if you are still alive but become unable to manage your own affairs. Another major advantage of a revocable living trust over a testamentary trust is that it is a private plan that does not require court involvement.

With a living trust, you have total control to

● choose the exact age or milestones, such as graduating from college or buying a first home, when your children will receive their inheritance;

● provide for each child’s specific needs and circumstances; and

● protect the inheritance from your children’s creditors, divorcing spouses, or poor spending decisions.

A living trust can give your children the continued protection you currently provide them long after you are gone. By using a trust, you are not just leaving a gift; you are protecting what you have worked so hard for, for their benefit.

These common mistakes can put your children’s future at risk. Let us create a plan that works exactly as you intend. Contact us today to learn more about how a revocable living trust can protect the people you love most.

^[1] Some states use the word guardian for both roles, while others distinguish between a guardian (who provides care for the child) and a conservator (who manages the child’s money). To clearly distinguish the two roles, this article uses guardian to mean the person caring for the child and conservator to mean the person handling the finances.

How to Keep Wealth in Your Family for Generations

Wed, 19 Nov 2025 18:00:01 GMT

Many families focus on building wealth, but fewer think about keeping it. Research shows that a majority of wealthy families lose their wealth by the second generation, and by the third generation, the number climbs as high as 90%. That happens not because parents lack concern for their kids, but because key pieces of planning are missing.

Keeping wealth in your family isn’t just about signing legal documents or having a strong investment portfolio. True wealth preservation requires a shift in how you think about inheritance, practical systems that keep your assets accessible, and education that prepares the next generation to be responsible stewards.

In this article, you’ll learn three essential elements of building and preserving generational wealth: the mindset shifts that redefine what inheritance really means, the legal and financial strategies that keep assets from slipping through the cracks, and the education process that prepares your children to manage and grow what you’ve worked so hard to build. Most importantly, you’ll see why families who succeed in passing wealth down think differently about what they’re actually leaving behind.

The Mindset Shift: From “My Wealth” to “Our Legacy”

The families who successfully maintain prosperity over multiple generations understand something critical: wealth is more than money. Yes, you can leave your children a million dollars, but if they don’t understand responsibility, financial management, or your family’s values, that money will vanish.

Generational wealth lasts when you pass on both tangible and intangible assets, not only accounts and property, but also the knowledge, traditions, and life lessons that make financial wealth sustainable. Your experiences, values, and even your failures are part of the inheritance that will shape how your children handle what you leave them.

This requires a mindset shift: inheritance isn’t a one-time transfer that happens at death. It’s an ongoing process of preparation during your lifetime. Instead of keeping financial matters completely private, invite your children into age-appropriate conversations about your values, your goals, and the responsibilities they may inherit one day.

Think of it like teaching your child to drive. You wouldn’t simply hand over the keys without practice and guidance. Likewise, don’t hand over wealth without the training and perspective they need to manage it wisely.

Of course, perspective alone isn’t enough. Once you embrace this broader definition of wealth, you’ll need systems that ensure your financial assets are actually protected and available when the time comes.

The Practical Side: Legal and Financial Strategies That Work

Too many people think, even those with substantial assets, that estate planning is about creating a set of documents. But documents aren’t enough. A document like a will, trust, power of attorney or healthcare directive, cannot pass on all that’s important to you, and it doesn’t address the direct impact on the people you love once you die or if you become incapacitated. The truth is, a document alone often creates more problems than it solves - like months of probate, thousands in legal fees, and painful family conflict during an already emotional time.

That’s why our process goes further. Protecting wealth and passing it on requires much more than a set of documents that eventually go stale over time. Protecting wealth requires so much more, such as:

Comprehensive Asset Organization

Your plan begins with a complete inventory of everything you own - bank accounts, investments, real estate, insurance policies, digital assets, business interests, and personal items of value. Each asset is titled correctly and integrated into your overall plan so nothing is lost or overlooked - and can be passed on to the people you love.

A Plan That Stays Up to Date

Life doesn’t stand still, and your plan shouldn’t either. Marriages, divorces, births, deaths, and property changes all require updates to ensure your plan continues to reflect your current life and wishes. Through regular reviews, I help ensure your plan stays current so it works exactly as intended when your family needs it most.

Clarity for the People You Love

A Life & Legacy Plan doesn’t just protect your assets—it protects the people you love from uncertainty. Your family receives clear guidance about what you own, how to find it, and what to do when the time comes. I help you document where accounts are held, how to access them, and who to contact for help. This clarity prevents the confusion and conflict that too often arise when families are left searching for answers.

Ongoing Guidance and a Trusted Relationship

Legal strategies form the foundation of wealth preservation, but they’re only one part of the equation. My role as your Personal Family Lawyer® is to serve as your trusted advisor for life - someone who understands your family, your values, and your goals, and who will be there to guide your loved ones when you no longer can. And if I’m not able to be there, I’ll have a trusted colleague you can turn to who will be there in the same way I would. That ongoing relationship ensures your plan works not just legally, but practically and emotionally, for the people you care about most.

Creating a comprehensive plan and keeping it updated over time is only one part of preserving generational wealth. For true generational wealth to last, your children also need the tools, guidance, and values to use it wisely.

The Education Piece: Preparing the Next Generation

Even the most thoughtfully crafted estate plan can’t prepare your family to carry your intentions forward. Real success requires education, communication, and participation, so the people you love understand not only what you decided, but why.

That’s why I encourage families to treat planning as an ongoing conversation, not a one-time event. When your family understands your decisions in advance, such as why you chose certain beneficiaries, appointed specific roles, or structured inheritances a particular way, they’re far less likely to experience confusion or conflict later. These conversations also provide a chance to share your values, priorities, and hopes for how your wealth will be used to strengthen relationships, not divide them.

If you are a member of our FamilyCare Program, I will facilitate family meetings where we review your plan together. In these meetings, we explain how your plan works, what responsibilities each person may hold. It also gives them the opportunity to ask questions while you’re here to answer them, preventing misunderstandings later. Having everyone in the same room, literally or virtually, builds understanding and unity, ensuring that your family has a clear roadmap and a trusted advisor they can turn to when the time comes.

When you work with me, you also have option to share your stories, values, instructions for your loved ones, and your reasons for the choices you’ve made. Combined with periodic family meetings and regular plan updates, this approach ensures that your loved ones are never left wondering what you wanted, or why.

Ultimately, the goal isn’t just to pass on assets, but to create a foundation of trust, understanding, and continuity. When your family is informed and included, they’re empowered to honor your legacy with confidence and clarity.

When your children are educated and prepared, the next question becomes: how do you ensure that wealth doesn’t just last for them, but also for grandchildren and beyond?

Thinking Beyond One Generation

The families who keep wealth for generations plan not just for children, but for grandchildren and great-grandchildren. This often means using structures designed for long-term stewardship:

● Trusts that distribute assets over time, protecting against mismanagement or outside threats.

● Family governance structures that bring relatives together for ongoing discussions about values and shared resources.

● Family foundations that involve multiple generations in philanthropy, reinforcing shared purpose and connection.

The goal isn’t simply to pass down money. It’s to create a structure that helps your family stay connected, supported, and guided by the values that built the wealth in the first place.

With the right mindset, strategies, and education in place, the final step is taking action. Start today, while you have the time and clarity to shape your legacy.

Your Legacy Starts Now

Preserving generational wealth requires more than smart investments. It requires intentional planning, ongoing education, and a fundamental shift in how you think about inheritance.

We help families design Life & Legacy Plans that protect not only your money, but everything that truly matters - your values, your wisdom, and your family’s future stability. Our process begins with a Life & Legacy Planning Session, where we’ll clarify your goals, review your family dynamics, and create an inventory of your assets, both financial and intangible. From there, we’ll build a plan that ensures your legacy lasts for generations.

Ready to protect your wealth and everything it represents? Click here to schedule a complimentary 15-minute discovery call today.

Honoring Your Sacrifice: Estate Planning Essentials for Military Families

Thu, 13 Nov 2025 18:08:00 GMT

Each year on November 11, the nation pauses to honor the courage and sacrifice of those who’ve served in the Armed Forces. Beyond the ceremonies and flags, Veterans Day offers military families a meaningful opportunity to reflect on a vital question: Is your family truly protected if something happens to you?

If you’ve served or are part of a military family, your planning needs go far beyond standard estate documents. From coordinating military benefits to preparing for deployment, your estate plan must work in ways most civilian plans never consider.

In this article, you’ll learn why military families need specialized estate planning, how to protect your military benefits, and what steps ensure your plan works during service, through retirement, and beyond.

Why Military Families Need a Different Kind of Estate Plan

Military families face unique challenges when it comes to protecting loved ones. You may have access to benefits like Servicemembers’ Group Life Insurance (SGLI), Dependency and Indemnity Compensation (DIC), and Survivor Benefit Plan (SBP) payments, These are all crucial safety nets that require careful coordination.

Without that coordination, even well-intentioned plans can fail. For example, if your SGLI beneficiary form lists someone you named years ago, your life insurance could go to the wrong person, creating confusion and conflict for your loved ones. Or, if you named a minor child as your SGLI beneficiary, a court will have to appoint someone to manage those funds until your child reaches adulthood, costing your family time, money, and stress. Not to mention, your child will receive all the funds at 18, outright, with no restrictions and no plan for their future security.

Frequent relocations add another layer of complexity. Estate planning laws differ by state, meaning a plan created when you were stationed in California might not work as intended after a move to Virginia or overseas. Without periodic reviews, your plan could become outdated or even invalid.

Deployment presents its own risks. When you’re serving abroad or in harm’s way, your family must have immediate authority to make financial and healthcare decisions. Standard powers of attorney often lack the specific language required for military systems, leaving your spouse or decision-maker unable to access key benefits or accounts when they’re needed most. These are not details you want your loved ones figuring out during a crisis.

How to Protect and Maximize Your Military Benefits

The benefits you’ve earned through service represent an essential part of your family’s long-term security, but only if they’re properly managed within your estate plan.

Start by reviewing all beneficiary designations. Your SGLI, Thrift Savings Plan (TSP), and retirement accounts each have forms that override your will or trust. If those aren’t up to date, your benefits might go to someone you didn’t intend, such as an ex-spouse, while your current spouse and children receive nothing.

If you’re retired, the Survivor Benefit Plan deserves special attention. It allows you to provide ongoing income for your spouse or dependents after your death, but its cost and coverage need to be evaluated alongside your life insurance and other assets to ensure balance and efficiency.

Your DD-214 and other service records are equally important. Without them, your family may face delays accessing VA benefits, military burial honors, or other entitlements. I help clients organize these critical documents as part of my Life & Legacy Planning® process, along with an inventory of assets, service-related information, and benefit access details. This is crucial. Otherwise, your loved ones may not be able to act quickly and confidently when they need to.

Finally, include burial preferences in your plan. Veterans are entitled to burial in national cemeteries, headstones or markers, burial flags, and Presidential Memorial Certificates at no cost - but your family must know how to access them. Your plan should clearly document whether you want military honors, which cemetery you prefer, and who should be notified.

When these elements are in place, your benefits don’t just exist. They work for your loved ones when it matters most.

Building a Plan That Works in Every Stage of Service

Military life is ever-changing. That’s why it’s crucial your plan works not just after you die, but also during active duty, deployments, retirement, and incapacity. Therefore, your plan should also include:

A durable power of attorney tailored for you and your family, and ensures your spouse or trusted agent can manage financial and legal matters - including communication with the Defense Finance and Accounting Service (DFAS), VA, and Tricare - without court delays. Standard forms don’t cover this scope, which is why when you work with us, we’ll create custom powers of attorney designed for you and your military service.

Healthcare directives also deserve special attention. Your healthcare proxy should work in both civilian and military hospitals, with language that allows your chosen advocate to coordinate directly with military medical personnel. Whether you face an injury in service or a serious illness later in life, these directives ensure your wishes are clear and respected.

Personal property and memorabilia should not be overlooked either. Uniforms, medals, and service mementos hold deep sentimental and historical value. Documenting these items and the stories behind them ensures they’re preserved for future generations and handled according to your wishes.

Perhaps most importantly, you deserve a trusted advisor who understands you - someone who stays connected with you and your loved ones through deployments, relocations, and retirement. Traditional lawyers create documents and move on. I stay with you, reviewing and updating your plan regularly so it continues to work as your life evolves.

Proper planning isn’t just a set of papers. It’s a relationship.

Honoring Your Sacrifice and Your Family’s

You deserve to have someone in your corner who has your back, and your loved ones do, too. That’s why Life & Legacy Planning goes beyond drafting legal documents. I will make sure your family has the clarity, guidance, and support they’ll need, whether you’re deployed, retired, or gone.

When we create your Life & Legacy Plan together, your loved ones will know:

● Where to find important documents

● How to access accounts and military benefits

● Whom to contact first for help

● And what steps to take without confusion or delay

And when the time comes, your loved ones won’t face the VA claims process or legal system alone; they’ll have someone who already knows them and their story.

Your Life & Legacy Plan will reflect not just your financial wishes, but also your values, stories, and service traditions, so your legacy lives on into the lives of all the people you love.

This year for Veterans Day, honor your service and your family’s sacrifices by taking action to protect the people who love most.

Schedule your complimentary 15-minute discovery call today to ensure your dedication to our country translates into lasting security for your loved ones.

Planning for Real Estate in a Foreign Country

Wed, 27 Aug 2025 17:00:00 GMT

The allure of a foreign land—perhaps where the weather is milder, the pace of life slower, and the cost of living lower—is a dream for many Americans who want to escape our country’s fast-paced, high-cost living. That dream can become a reality, and a tangible investment, for Americans who purchase a home overseas.

Wealthy individuals are leading the trend of Americans buying properties outside the United States, but they are not alone. Americans with average incomes, especially people who work remotely and retirees, are exploring overseas real estate markets in places such as Costa Rica, Panama, and Portugal in search of a better quality of life and a bigger bang for their buck.

However, living abroad is very different from spending a few weeks there. In addition to the challenges of adapting to a foreign culture, prospective buyers must be aware of the financial, legal, and tax implications of buying real estate abroad before signing the dotted line.

Finding the American Dream Outside America

Some US citizens are looking abroad in search of a better lifestyle at a reduced cost. About 5.5 million Americans currently live overseas, and more may be looking to make the move in search of an American dream that is eluding them in America. ^[1]

A 2024 Coldwell Banker report found that, amid surging US home costs and the rising cost of living, 40 percent of US consumers with household income of over $1 million planned on buying a home overseas over the next 12 months, while two-thirds planned to purchase a home abroad in the next five years. ^[2] Also, according to a recent Harris Poll, 4 in 10 Americans have at least considered moving or plan to move abroad. ^[3]

The average US household’s monthly expenses are now up to nearly $6,500, ^[4] while in a country such as Belize, it is possible to live comfortably on about $2,000 per month. ^[5] Healthcare also tends to be cheaper overseas. Costa Rica, for example, provides high-quality medical care at a significantly lower cost than in the US; hospital visits in Costa Rica typically cost about half as much as they do in the US. ^[6]

No matter how much they earn, Americans from different backgrounds and income levels typically want the same things: success, prosperity, good health, and upward mobility (and perhaps, a bit of room to spread their wings—preferably somewhere warm).

Navigating Uncharted (Legal) Territory

With international travel faster and more comfortable than ever, and remote work unshackling us from the office and a fixed address, Americans of all ages and economic stripes are entering the international real estate market as investors, retirees, digital nomads, and lifestyle seekers.

While the romantic appeal of a new life in a different country is undeniable, the practical realities—including the legal, financial, and estate planning considerations of foreign real estate ownership—can convince even the most idealistic modern pilgrim that the move is not just a permanent vacation.

Prospective buyers who are braced for culture shock may not be prepared to navigate the legal framework of their chosen destination, where issues such as mortgages, taxes, and property and inheritance laws can differ significantly from those in the US. For example, some countries restrict foreign ownership, impose specific registration requirements, or limit how property can be used or transferred.

The following are some of the issues you may have to navigate as a nonresident buyer:

Tax Responsibilities

Owning foreign real estate usually triggers tax obligations in both the US and the foreign country. As a US citizen, your worldwide assets, including foreign real property, are subject to US estate tax. Profits from selling foreign real property are generally subject to US capital gains tax, but exclusions may apply if it was your primary residence.

You could also be subject to local property taxes, income taxes on rental income, and capital gains taxes in the foreign country, in addition to less-known local taxes, such as Portugal’s annual wealth tax (called AIMI) on high-value properties; Spain’s deemed rental income tax even if the home is vacant; and Thailand’s Specific Business Tax (SBT) on the sale of property sold within five years of purchase (unless the property is used as a personal residence).

When buying property abroad, you may need to file US tax forms such as the FBAR (FinCEN Form 114, Form 5471 , or Form 8858 )—but only if you hold the property through a foreign entity, have foreign bank accounts tied to the property, or operate it as a foreign branch. These forms may not be required if the property is owned in your name with no foreign financial accounts.

To avoid double taxation, you may be able to claim a foreign tax credit on your US return for taxes paid to the country where the property is located. If you eventually sell the property and pay capital gains tax abroad, this credit may help offset your US tax liability.

US Estate Plans

Estate plans in the US, including wills or trusts, may not seamlessly govern foreign real estate. Many jurisdictions reject US wills if they do not meet local formalities (e.g., notarization, language requirements, or specific witnessing protocols). If a will is deemed invalid under foreign law, the property may be distributed under that country’s intestacy rules, which can contradict your intended wishes.

Trusts pose further hurdles. Civil law countries—including Italy, Chile, and Portugal—often do not recognize the concept of a trust as it exists under US law. This means that even a properly drafted US trust may be ignored or deemed legally ineffective for handling real estate abroad. In Portugal, for example, long-standing ambiguity around the recognition of trusts has caused complications for foreign owners relying solely on US planning tools.

One potential workaround is to execute an international will under the 1973 Washington Convention on International Wills. This treaty provides a standardized format for wills intended to be recognized across multiple countries. An international will must be in writing, signed by the testator in the presence of two witnesses and an authorized person (such as a notary), and properly attested.

The validity of an international will under this convention depends on whether the relevant countries have signed the treaty and whether their local laws allow for the intended distribution of assets. While the federal government has not ratified the treaty, many states, including California, Illinois, and New York, have enacted the Uniform International Wills Act, allowing residents in those jurisdictions to create wills intended to be internationally valid under the convention.

Forced Heirship and Inheritance Rules

Countries with forced heirship rules can also disrupt US-based estate plans. These inheritance rules stipulate that family members, typically spouses and children, are legally entitled to inherit a predetermined portion of the deceased’s estate, regardless of what is stated in their will or trust.

In Germany, for example, Pflichtteil (forced share) entitles spouses, children, and, in some cases, parents to 50 percent of what they would have received under intestate succession. Brazil, Portugal, Italy, and Mexico (depending on applicable local law) enforce similar inheritance rules.

If forced heirship is a concern for foreign homebuyers, they may consider purchasing property in jurisdictions without forced heirship laws, such as the UK, Ireland, or certain Caribbean islands, where the legal framework aligns more closely with US estate planning principles and allows for greater flexibility in directing how assets are distributed.

Dual Counsel for Expat Buyers

Perusing overseas real estate listings can have your head spinning at the possibilities. But foreign buyers who do not know the local laws—and do not work with an attorney at home and in the country where the property is located—could face dizzying complications.

To avoid costly mistakes that could put your investment—and your legacy—at risk, engage counsel from both jurisdictions who can help you with cross-border planning issues to align foreign and domestic requirements. If you are looking to plan for property you own in a foreign country, call us.

^[1] Doris L. Speer, How Many Americans Live Abroad?, AARO (Oct. 2024), https://www.aaro.org/living-abroad/how-many-americans-live-abroad.

^[2] The Trend Report, p. 59, ISSUU (Jan. 13, 2024), https://issuu.com/thereportgroup/docs/cbgl_-_the_trend_report_2024_4f0b3bedd1e4ff.

^[3] Grace Snelling, More Americans want to leave the country and live overseas. Many say cost of living is the top reason why, Fast Company (Mar. 4, 2025), https://www.fastcompany.com/91289388/more-americans-want-leave-country-live-abroad-cost-of-living.

^[4] Jack Caporal, American Households’ Average Monthly Expenses: $6,400, Motley Fool Money (Feb. 14, 2025), https://www.fool.com/money/research/average-monthly-expenses.

^[5] Gabriela Peratello, Cost of Living in Belize: your 2021 guide, Wise (July 13, 2021), https://wise.com/us/blog/cost-of-living-in-belize.

^[6] Christy Lowry, The cost of living in Costa Rica vs the U.S., Western Union (June 4, 2024), https://www.westernunion.com/blog/en/us/the-cost-of-living-in-costa-rica-vs-the-united-states.

7 Legal Mistakes That Could Destroy Your Business (And How to Avoid Them): Part 1 of 2

Tue, 26 Aug 2025 17:00:01 GMT

You've poured your heart, soul, and savings into building your business. You've worked countless hours, made sacrifices, and overcome numerous challenges to get where you are today. But despite all your hard work, a single legal mistake could unravel everything you've built.

The good news is that most legal disasters are entirely preventable when you know what to watch for and take proactive steps to protect your business. In this two-part series, I’ll break down seven of the most common legal mistakes that could destroy your business and provide you with practical strategies to avoid each one. Today, we're focusing on the first four critical mistakes that every business owner needs to know.

Mistake #1: Operating Without Proper Contracts

One of the most dangerous assumptions business owners make is that verbal agreements and handshake deals are sufficient for conducting business. I get it. You're busy and don't want to slow things down by finding a lawyer to draft proper contracts. While a handshake may seem like a way to move quickly and feel more personal, it creates enormous legal vulnerabilities that could cost you everything.

Without proper written contracts, you have no clear legal recourse when clients refuse to pay, suppliers fail to deliver, or partnerships go sour. You also leave yourself open to misunderstandings about scope of work, payment terms, delivery dates, and responsibilities. These disputes can quickly escalate into expensive legal battles that drain your resources and damage your reputation.

Consider this scenario: Sara runs a marketing consultancy and agrees to help a client launch a new product campaign. They discuss the project over coffee and shake hands on a six-month engagement to begin immediately. Halfway through the project, the client decides to change direction completely, demanding entirely new deliverables while refusing to pay for work already completed. Without a written contract specifying scope, payment terms, and change procedures, Sara has little legal recourse and may lose months of unpaid work, which creates financial stress.

Don’t be like Sara. Instead, implement comprehensive written contracts for every business relationship. Your agreements should clearly define deliverables, payment schedules, cancellation policies, and dispute resolution procedures. Vendor contracts should specify quality standards, delivery timelines, and remedies for non-performance. Partnership agreements should outline each party's responsibilities, profit-sharing arrangements, and exit procedures.

A word of warning: Don't rely on generic templates you find online or generate via AI. Your contracts should be tailored to your specific industry, business model, and risk profile. Generic templates and AI don't account for important nuances that an experienced professional will know.

When you work with us, we take the time to understand your business and risk profile, then tailor your contracts for the most protection possible. Moreover, I'll be there anytime you need new or updated contracts or have questions that need immediate attention, because my focus is on creating and maintaining an ongoing relationship with you, not drafting a few documents and sending you on your way. You’re a busy business owner and shouldn’t waste time looking for an attorney whenever you need guidance, then waste time again educating a new attorney about your business (or worse, the attorney doing work while not understanding your business at all). You’ll have me there as a steady source of guidance and support, saving you time, money in costly mistakes, and relieving you of the burden of having to remember to update your legal systems.

Mistake #2: Misclassifying Workers as Independent Contractors

The temptation to classify workers as independent contractors rather than employees is understandable. It seems like a simple way to save money on payroll taxes, benefits, and administrative overhead. And with the prevalence of remote workers, the lines may appear blurry. However, worker misclassification is one of the fastest ways to trigger an expensive government audit and face substantial penalties.

The IRS, Department of Labor, and state agencies are aggressively pursuing businesses that misclassify workers. The financial consequences can be severe, including back taxes, penalties, interest, and even criminal charges in extreme cases. You could also face lawsuits from workers seeking employment benefits they should have received. Small businesses are particularly vulnerable because they often lack the resources to navigate complex classification rules or defend against government challenges.

To avoid this costly mistake, you should conduct regular audits of your worker classifications. When in doubt, err on the side of classifying someone as an employee. If you work with independent contractors, ensure they truly operate independently, use their own equipment, serve multiple clients, and have control over how they complete their work.

Mistake #3: Ignoring Industry Regulations and Compliance Requirements

Every industry has specific regulations and compliance requirements, and ignorance of these rules is never an acceptable defense. Whether you're in healthcare, finance, food service, construction, or any other regulated industry, failing to comply with applicable laws can result in fines, license revocation, or even criminal charges. To complicate matters, regulations are constantly changing, and what was compliant last year might violate this year’s standards.

Businesses of every size can face complex regulatory requirements. A small restaurant must comply with health department regulations, liquor licensing laws, employment standards, fire safety codes, and accessibility requirements. A freelance graphic designer might need to understand copyright laws, data protection regulations, and professional licensing requirements depending on their client base.

Additionally, the regulatory landscape has become increasingly complex, with new requirements emerging regularly around data privacy, environmental protection, workplace safety, and consumer protection. Federal, state, and local authorities all have jurisdiction over different aspects of business operations, creating a web of overlapping requirements that can be difficult to navigate.

The solution starts with conducting a thorough compliance audit to identify all applicable federal, state, and local regulations that affect your business. This includes licensing requirements, safety standards, environmental regulations, data protection laws, and industry-specific rules. I also recommend creating a compliance calendar that tracks renewal dates, reporting deadlines, and regulatory changes (which I can help you with).

When you work with us, we’ll start with a review of your current legal systems, including compliance with all relevant authorities. We’ll then identify holes in your current systems and create a plan to fix them immediately. I’ve seen it happen so often that I can say the cost of professional compliance guidance is minimal compared to the potential penalties for violations, which can include substantial fines, business closure, and personal liability for business owners - putting your personal assets at risk of seizure.

Mistake #4: Failing to Protect Your Intellectual Property

Your business's intellectual property—including your brand name, logo, proprietary processes, customer lists, and creative works—may be among your most valuable assets. Yet many business owners fail to take basic steps to protect these assets, leaving them vulnerable to theft or infringement.

Operating without trademark protection means competitors could potentially use similar names or logos, confusing your customers and diluting your brand. Failing to protect trade secrets could allow employees or competitors to walk away with your proprietary information. Not securing copyrights could leave your creative works unprotected.

Many entrepreneurs don't realize how valuable their intellectual property can become. What starts as a simple business name or logo can eventually become worth millions if the business grows successfully. However, without proper protection, you might find yourself unable to enforce your rights or, worse, discover that someone else has registered protection for intellectual property you've been using.

The intellectual property landscape has become increasingly important in the digital age. Your website content, software code, customer databases, and even your social media presence can all represent valuable intellectual property that needs protection. Cybercriminals and unscrupulous competitors are continually seeking ways to steal or replicate successful business assets.

When you work with us, we’ll conduct a comprehensive IP audit to identify the assets you have and the protection they require. If we determine that you have unprotected assets, we can support you to get the right protection in place, whether it’s by registering your trademarks, filing for patent protection, updating your employee agreements, or establishing a system to monitor your intellectual property for potential infringement.

In Part 2 of this series, we'll explore three additional critical mistakes: inadequate insurance coverage, poor record-keeping practices, and mixing personal and business finances. Together, these seven mistakes represent the most common ways that legal oversights can threaten everything you've worked to build, and you’ll be armed with knowledge of what to do instead.

Ready to Strengthen Your Legal Foundation?

We help entrepreneurs like you avoid costly legal mistakes by ensuring your foundational business systems are properly structured and protected. When you work with us, we start with a LIFT Business Breakthrough™ Session, where I'll evaluate your current legal, insurance, financial, and tax systems and identify areas that need improvement. From there, we'll create a plan to address any vulnerabilities so you can focus on growing your business with confidence, knowing your legal foundation is solid.

Don't wait until you're facing a legal crisis to address these fundamental protections. Book a call with me here to get started.

“It Has Been Such a Good Life”: The Legacy Your Loved Ones Need

Wed, 20 Aug 2025 17:00:01 GMT

When Anna Harp lost her father, Rudolph Clausing , she didn’t get to say goodbye. It was January 2021, during the height of the COVID-19 pandemic. Her dad had been battling lung disease when he contracted the virus, and strict hospital protocols meant his family couldn’t be by his side in his final days. Anna was just 27. Her father was 66. And in an instant, he was gone.

But in the aftermath of her father’s passing, as her mother gathered his things from the hospital, she discovered something Anna never expected—a notebook, and inside it, a note scrawled in her dad’s handwriting:

“It has been such a good life.”

Seven simple words. And yet, to Anna, they were everything.

This touching story reveals something profound about what loved ones truly need after someone dies. While we often focus on financial inheritance and legal documents, the reality is that your loved ones will treasure your humanity, your love, and your guidance far more than any material wealth you leave behind. So the question is: are you preparing to give them what they'll value most?

What Your Family REALLY Values After You're Gone

In the immediate aftermath of losing someone you love, money becomes secondary to the desperate need for connection, comfort, and understanding. They'll be searching for pieces of you, trying to feel your presence, and longing to know what you would have wanted them to do.

When you die without sharing your deeper thoughts and feelings, your loved ones are left with an emotional void that no amount of money can fill. They may spend years wondering what you were thinking, whether you were proud of them, or how you would have handled certain situations. This uncertainty has the power to create lasting pain that affects their relationships, their decisions, and their ability to move forward with confidence.

The people who struggle most after losing someone aren't necessarily those with financial problems—they're the ones who feel emotionally adrift because they don’t know how to find peace after their loved one has died.

The True Legacy of Love: Clear Communication and Guidance

The best way to help them find peace is by passing on your love. Love is expressed through preparation and clear communication. When you take time to share your thoughts, values, and wishes with your family, you're giving them a roadmap for navigating life without you. This isn't just about end-of-life care or funeral arrangements—it's about providing the emotional support and practical guidance they'll need for years to come.

This type of communication becomes a legacy of love that extends far beyond your lifetime. When your children face difficult decisions, they can ask themselves what you would have done. When they need encouragement, they can remember your words of support. When they want to honor your memory, they know exactly what would make you proud.

Clear communication also prevents the kind of family conflicts that can destroy relationships after someone dies. When everyone understands your wishes and the reasoning behind them, there's less room for misunderstanding or manipulation. Your words become a unifying force that brings your loved ones together rather than driving them apart during an already difficult time.

Unfortunately, traditional estate planning completely misses this crucial need for emotional connection and ongoing guidance. Traditional planning focuses solely on legal documents, as if dying is a purely financial transaction. Traditional estate planners may ask you who should get your house and how to minimize taxes, but they won't help you communicate your values, share your life lessons, or prepare your family for the emotional realities they'll face after you're gone.

Create Your Own Legacy of Love Through Life & Legacy Planning

Life & Legacy Planning is so much more than traditional estate planning. It prepares your loved ones for a life without you. Here’s how:

You Create Clarity, Not Just Documents

Life & Legacy Planning is so much more than creating documents. It's estate planning done the right way so that it will work for the people you love most when they need it to. Once you create a Life & Legacy Plan with me, your loved ones will have the guidance they need. They’ll know where to find important documents, how to access your accounts, and what steps to take first. They will have clear instructions about everything from paying bills to handling your business interests.

But most importantly, they'll understand your wishes, not just about money, but about the things that matter most to them—how you'd want your children raised if you die while they’re minors, and what values you hope they'll carry forward. Your loved ones will know what family traditions you want to pass on, and what stories you want to tell about family members long-since passed.

You Prepare Your Loved Ones for Financial Realities

Your Life & Legacy Plan will also address the financial realities - not just the transactions - your loved ones will face. How will your spouse manage the mortgage? What about your children's future education costs? How can you ensure your family maintains their lifestyle while also preparing for long-term financial security? The answers to these questions won't come from a life insurance policy or a set of documents alone.

You Leave a Piece of Yourself

An important part of my Life & Legacy Planning ^Ⓡ process, most clients tell me it’s the most important part, is I help you create a Life & Legacy Recording. It's your opportunity to speak directly to your loved ones about what matters most. You might share the story behind family heirlooms, explain your values and hopes for the future, offer encouragement for difficult times ahead, or simply express how much your family means to you.

Unlike Rudolph's note, which was discovered by chance, your Life & Legacy Recording is specifically designed to be watched when your family needs it most. It becomes a permanent reminder of your love, wisdom, and presence in their lives. Your grandchildren will even be able to hear your voice and learn from your experiences, even if they're born years after you're gone.

You Give Them a Guide So They Have Someone to Turn to When They Need It

Finally, I have systems in place to review and update your plan on an ongoing basis as your life and assets change, so your plan will work over time, and so you have a trusted advisor at your side who has your back. I'll form a relationship that will last throughout your lifetime, and I'll be available to your loved ones so they know exactly what to do and when. If I am no longer available, know that I’m part of the Personal Family Lawyer ^Ⓡ network - lawyers who also use the Life & Legacy Planning process - and I’ll ensure one of them will be able to step in and support you and the people you love.

This ongoing relationship is what truly makes the difference. Most lawyers lose touch with clients once the documents are created, leaving families to navigate the legal process alone while they're grieving. When they have to go through probate or handle other legal matters, they have no idea what's expected of them or how to manage the process—and this is overwhelming, especially when they're also dealing with grief.

Let’s Build a Plan That Leaves No Questions—Only Love

If you want to create a plan that leaves a legacy, don’t wait. Life is unpredictable. But your love doesn’t have to be.

As your Personal Family Lawyer® Firm, I’ll help you create a Life & Legacy Plan that protects your family legally, prepares them emotionally, and leaves behind the greatest gift you could ever give them the gift of your love.

Schedule your complimentary 15-minute discovery call today, so we can create a plan that helps you say:

“It has been such a good life.”

The Life-or-Death Decisions Your Family Shouldn't Have to Make Alone

Wed, 13 Aug 2025 17:00:00 GMT

When you think about estate planning, you probably picture wills, trusts, and who gets what. But what happens when decisions are made about your body, without your full consent or without know what you would want?

In this article, I’ll explain how a comprehensive Life & Legacy Plan protects not just your loved ones, but you. We’ll explore the risks of poor planning, how to make your medical wishes known, and how to ensure no one makes life-or-death decisions for you without your voice.

Why You Might Need Health Care Authorizations

When it comes to planning for the future, many people think about finances or who will receive their home or personal belongings—but few consider who will speak for them if they can’t speak for themselves. Health care authorizations are legal documents that allow you to name someone you trust to make medical decisions on your behalf if you're unable to do so due to illness or injury. Without these documents in place, your loved ones may face delays or legal complications during already stressful times, especially if doctors are unsure who should be making decisions for you.

Appointing a health care agent isn’t just for the elderly or those with serious medical conditions—it’s something every adult should consider. Medical emergencies can happen to anyone, at any time. By designating someone in advance and providing guidance, you ensure that your wishes are followed and that your family isn’t left guessing or in conflict about what to do. It’s one of the simplest and most compassionate steps you can take to protect your well-being and ease the burden on those you love.

How Hospitals Make Decisions When You Don’t

When you haven't created a plan that legally appoints a healthcare proxy or outlines your care preferences, hospitals rely on state laws and default policies to make decisions on your behalf. This process can be chaotic, impersonal, and completely disconnected from what you would actually want.

Here's what typically happens when you don't have your own plan in place. First, medical staff will review any existing documentation, including your driver's license for organ donor status, search for advance directives in your medical records, and consult hospital databases. If they find nothing, they turn to state law to determine who has the legal authority to make decisions for you.

The state's default hierarchy usually prioritizes spouses first, then adult children, then parents, then siblings. But what if you're estranged from your spouse? What if your adult children disagree with each other? What if the person the state chooses doesn't actually know your values or wishes?

In emergency situations, time pressure makes everything worse. Hospital staff need quick decisions about life support, treatment options, and potential organ donation. Without clear guidance from you, your loved ones may feel forced to make impossible choices based on incomplete information, their own emotions, or pressure from medical staff.

Knowing all this, what can you do to keep your loved ones from having to make these emotionally painful decisions? You can create a plan that works when you and your loved ones need it to.

Key Documents That Protect Your Medical Wishes

One part of planning that works is creating specific legal documents that give your loved ones the authority and guidance they need. Each document serves a different purpose, but they work together to ensure your wishes are followed. Here are the typical documents - tools, really - that you’ll create when you work with us:

A Living Will outlines your preferences for life-sustaining treatments, such as ventilation, resuscitation, and artificial nutrition. This document tells medical professionals and your loved ones exactly what you want if you're unable to communicate. Do you want to be kept alive at all costs? Are there circumstances where you'd want treatment stopped? Your directive provides these answers in writing.

A Durable Power of Attorney for Healthcare names the specific person you want to speak on your behalf if you can't. This person becomes your healthcare proxy, with legal authority to make medical decisions according to your wishes. Without this document, hospitals must follow state law to determine who can make decisions for you, and that person might not be who you would choose.

For the sake of clarity, know that some states (including Missouri) combine the Living Will and the Durable Power of Attorney for Health Care into one document called the Advance Directive for Healthcare .

HIPAA Authorization forms ensure your chosen decision-makers can access your medical information. Even close family members can be blocked from receiving medical updates unless you've given them written permission. This document removes barriers that could prevent your healthcare proxy from getting the information they need to advocate for you.

Having these documents in place is an integral part of your plan, but not the entire plan. You need more than just the documents or you risk failing your loved ones - and yourself.

Why Documents Alone Aren't Enough

While these documents are essential, they're just pieces of paper unless they're part of a comprehensive plan that actually works when you need it. Too many people think that signing a few forms means they're protected, but documents sitting in a drawer can't speak for you in a crisis.

In addition, documents can become outdated as your health, family situation, or values change over time. The healthcare directive you signed ten years ago might not reflect how you feel today about end-of-life care. Your chosen healthcare proxy might have moved away, become ill themselves, or simply be unavailable when needed.

Even current, properly executed documents can fail if your loved ones don't know where to find them or how to use them effectively. In the chaos of a medical emergency, family members might not know these documents exist, or hospital staff might not have immediate access to them. They need to be able to access the documents at the moment they need them.

But perhaps most importantly, documents can't replace the conversations you need to have with your loved ones about your end-of-life wishes. If you haven't talked openly about what you want—and why you want it—you're leaving your family to make excruciating decisions on their own, wondering if they're doing the right thing or whether their decisions will be the catalyst for long-term conflict.

When you take the time to have these difficult conversations—explaining not just what you want, but why you want it—you lift an enormous burden from their shoulders. Instead of agonizing over an impossible choice, they can act with confidence, knowing they're honoring your wishes. You’re also potentially preventing disputes among family members who may disagree about your care.

Ultimately, your loved ones need someone they can turn to for guidance when faced with impossible choices. They may need support in understanding your intent and advocating for your wishes when medical staff might pressure them to make different decisions.

All of this, and more, is just one reason why when I work with you, I’ll be your trusted advisor for life - and your family’s advisor if you’re incapacitated or when you die. They’ll have a heart-centered human who knows you, your values, your wishes, and your intentions, and can see them through a difficult time with not only the legal support they need, but also the emotional support they want.

Book a 15-Minute Discovery Call to Start Your Plan

With a comprehensive Life & Legacy Plan in place, you can make sure your medical choices are respected, your family is protected, and no one ever has to question whether they did the right thing for you.

When you work with us, we’ll be there not just to help you plan, but to guide your loved ones in an emergency and after you die. During those first frantic hours or days in a hospital, when emotions run high and decisions must be made quickly, your family won’t be left to figure it out alone. They’ll have me to turn to—someone who knows you, understands your values, and can help them navigate what comes next with clarity, compassion, and confidence. Your loved ones won’t be dealing with an overwhelmed hospital system or a stack of confusing paperwork—they’ll have a real human being to lean on.

To learn more about how I support you and your loved ones for life, book your 15-minute discovery call with me today.

5 Myths About Intellectual Property That Could Cost Your Business

Tue, 12 Aug 2025 17:00:01 GMT

You've built something special. Maybe it's an innovative product, a recognizable brand, or a unique process that sets you apart from competitors. But dangerous misconceptions about intellectual property could leave your most valuable assets completely unprotected.

Intellectual property (IP) myths are costing businesses millions in lost revenue, legal battles, and missed opportunities. Let's explore five of the most damaging IP myths and uncover the truths that could save your business from costly mistakes.

Myth 1: "My Business Is Too Small to Worry About IP Protection"

This might be the most costly myth in business today. Many entrepreneurs think IP protection is only for large corporations with deep pockets and teams of lawyers. The truth is exactly the opposite.

Small businesses often have the most to lose from IP theft because they have fewer resources to recover from it. When a competitor copies your innovative product or steals your brand identity, you don't have the luxury of absorbing those losses like a Fortune 500 company might. This includes everything from your local bakery's secret recipe to a freelance designer's logo creations to a consultant's proprietary methodology.

Your business likely has intellectual property assets right now, whether you realize it or not. Your business name, logo, marketing materials, customer lists, and any unique processes represent potential IP assets. Without proper protection, you're essentially inviting competitors to build their success on your hard work.

If you own a small business, you actually have advantages over big corporations when it comes to IP protection. You can move quickly to secure trademarks and copyrights and implement protection strategies without navigating complex corporate bureaucracy.

Myth 2: "Registering My Business Name Gives Me Trademark Protection"

This misconception trips up countless business owners and can lead to devastating legal battles. Registering your business name with your state's Secretary of State office does not provide trademark protection. These are completely different legal systems serving different purposes.

Business registration simply allows you to operate legally under that name within your state's jurisdiction. It doesn't prevent other businesses from using similar names, especially in different geographic areas or industries. A trademark protects your brand identity in the marketplace and gives you exclusive rights to use that mark in connection with your goods or services.

Here's where it gets expensive: imagine you've built your business for several years under a name you registered with your state, only to discover that someone else has federal trademark rights to a similar name. They could force you to rebrand entirely, costing you thousands in new marketing materials, lost brand recognition, and potential legal fees.

Trademark rights can be established through use in commerce, but federal registration provides much stronger protection. It gives you nationwide priority, the right to use the ® symbol, and stronger legal remedies if someone infringes on your mark.

Myth 3: "Everything on the Internet Is Free to Use"

This digital-age myth has probably caused more copyright infringement than any other misconception. Just because you can easily find and download images, text, music, or videos online doesn't mean you have the right to use them in your business.

Most content online is protected by copyright from the moment it's created and fixed in a tangible form. This includes photographs, articles, graphics, videos, and even social media posts. Using these materials without permission can result in expensive lawsuits, with damages ranging from hundreds to hundreds of thousands of dollars per infringed work.

Even if there's no visible copyright notice, the content is still protected. Copyright notices aren't required for protection under current law. Even if you found the image on a "free" website, you need to verify that the site actually has the right to license that content.

The penalty for not doing so can be significant. Under federal copyright law (17 U.S.C. § 504(c)), statutory damages can range from $750 to $30,000 per work infringed, and up to $150,000 for willful infringement. Plus, you might have to pay the copyright owner's attorney fees.

Instead of risking these costs, invest in properly licensed content from legitimate stock photo sites, hire creators to make original content, or use content that's specifically in the public domain.

Myth 4: "I Don't Need to Worry About IP Until I'm Ready to Sell My Business"

This backward thinking can dramatically reduce your business value when it comes time to exit. Intellectual property often represents a significant portion of a business's total value, sometimes even more than physical assets. But if you wait until you're preparing to sell to address IP protection, you've missed years of value creation and protection.

Investors and acquirers place enormous value on protected intellectual property because it represents defensible competitive advantages. A business with strong IP protection can command premium prices and attract more serious buyers. Conversely, a business with unprotected IP assets can see its value plummet.

IP protection should be part of your business strategy from day one. Early protection not only safeguards your assets but also creates value that compounds over time. A trademark that's been in use and federally registered for several years is more valuable than one that's newly registered.

Proper IP protection during your business's growth phases can prevent costly disputes that could derail a sale. Due diligence processes for business sales always include IP audits, and any ownership questions or infringement risks can kill deals or dramatically reduce offers.

Myth 5: "Patent Protection Is Too Expensive and Complicated for My Business"

While patent protection can be expensive and complex, this myth prevents many businesses from protecting valuable innovations that could become their most important assets. The key is understanding when patent protection makes sense and exploring all your options.

Patent protection isn't just for high-tech inventions or pharmaceutical breakthroughs. Patents can protect manufacturing processes, business methods, software innovations, and even simple mechanical improvements. If your business has developed a unique way of solving a problem, there might be patentable subject matter worth protecting.

While a full patent application can cost $15,000 to $25,000 or more with attorney fees, there are options for smaller businesses. Provisional patent applications can provide temporary protection for about $1,500 to $3,000, giving you a year to test the market and determine if full protection is worthwhile.

For qualifying small businesses, the U.S. Patent and Trademark Office offers reduced fees that can cut costs significantly. Additionally, some innovations might be better protected through trade secrets, which don't require expensive patent filings but do require proper confidentiality measures.

The bigger risk might be not exploring patent protection when you have valuable innovations. Without protection, competitors can freely copy your innovations once they become public.

Moving Beyond Myths to Strategic IP Protection

Understanding these myths is just the first step. The real value comes from developing a strategic approach to intellectual property that aligns with your business goals and budget. This means conducting regular IP audits, understanding which protection methods make sense for your situation, and implementing consistent practices to maintain and enforce your rights.

IP protection should be viewed as an investment in your business's competitive position and future value, not just a legal expense. When done strategically, IP protection can become one of your most valuable business assets.

How to Ensure Your IP is Protected

We can guide you through the process of implementing intellectual property protection and other strategies to help your company thrive. That's why I offer the LIFT Business Breakthrough™ Session, where I'll dive deep into your current legal, insurance, financial, and tax systems and identify gaps. Then together, we'll ensure your business is primed for growth, giving you the freedom and success you've been striving for.

Book a call today to start your journey toward a more successful, well-protected, and profitable business.

The One Big Beautiful Bill: What It Means for Your Family's Financial Future

Wed, 06 Aug 2025 18:48:34 GMT

The massive tax legislation known as the "One Big Beautiful Bill" (“OBBB”) became law on July 4, 2025, brings sweeping changes that will affect nearly every American family. While much of the media attention has focused on the political drama surrounding its passage, what really matters is how these changes impact your family's financial security and estate planning needs.

With nearly 900 pages of complex provisions, the new law extends many tax cuts, creates new deductions, and makes significant changes to healthcare and benefit programs. Understanding these changes isn't just about saving money on your taxes—it's about ensuring your loved ones’ long-term security and making sure your estate plan works when your loved ones need it most.

The Big Changes That Affect Your Daily Life

The new law brings several immediate changes that could impact your family's finances. Many of these provisions are temporary, which creates both opportunities and planning challenges that require careful attention.

The new law creates several categories of benefits that could significantly impact your family's tax burden:

Family Benefits:

● Child tax credit increases to $2,200 per child starting in 2026

● New "Trump Accounts" for children born 2025-2028 with $1,000 government contribution and up to $5,000 annual family contributions for future education or home purchases

● Parent Plus student loan limits now capped at $65,000 per student, potentially affecting college funding strategies

Worker Categories with Special Treatment:

● Tip earners can deduct up to $25,000 of tip income from federal taxes through 2028

● Overtime workers get deductions up to $12,500 for individuals or $25,000 for married couples through 2028

● Both benefits phase out at higher income levels and expire after 2028

Temporary Expense Relief:

● Car loan interest becomes deductible up to $10,000 annually for U.S.-made vehicles (2025-2028)

● State and local tax deduction increases from $10,000 to $40,000, though this benefit phases out for higher earners and expires after five years

● Seniors receive a new $6,000 deduction if they're 65 or older and meet income requirements, but this benefit only lasts through 2028. These temporary provisions create a complex web of expiring benefits that families must navigate carefully.

Healthcare and Benefits: What's Changing

Beyond tax changes, the new law significantly alters healthcare coverage and benefit programs in ways that could affect millions of families. These changes particularly impact older Americans and those who rely on government assistance programs.

Several major program changes will affect how families access healthcare and benefits:

Medicaid Changes (Starting Late 2026):

● Recipients ages 19-64 must work, volunteer, or attend school for 80+ hours monthly to maintain coverage

● Exceptions exist for caregivers of children under 14, but new administrative requirements could cause eligible people to lose coverage due to paperwork complications

● States may face budget pressures that could lead to further restrictions

Food Assistance Program Changes:

● SNAP work requirements now apply to people up to age 64 (previously age 55)

● States must contribute 5-15% of SNAP benefit costs starting October 2027, potentially leading some states to restrict eligibility or withdraw from programs entirely

Health Insurance Marketplace Changes:

● Enhanced tax credits for ACA coverage will expire, potentially increasing premium costs by an average of 75%

● New documentation requirements could make it harder for people to maintain coverage

● These changes create new vulnerabilities for families who might face unexpected job loss, health issues, or caregiving responsibilities. Your estate plan should account for these potential gaps in coverage and ensure your family has resources available during difficult transitions.

Estate Planning in the New Reality

The most significant estate planning change in the new law is the permanent increase of the federal estate tax exemption to $15 million per person, or $30 million for married couples. This means only about 350,000 American families—roughly one in every 400 households—will face federal estate taxes.

However, this change doesn't make estate planning less important. In fact, the complexity and temporary nature of many provisions in the new law make comprehensive Life & Legacy Planning more crucial than ever.

The law's many temporary provisions create planning challenges that traditional estate planning simply can't address. When tax benefits expire in 2028, families may face sudden changes in their financial situations. Without proper planning, these transitions could create unnecessary stress and financial hardship for your loved ones.

Moreover, the law's focus on specific categories of workers and temporary benefits creates artificial incentives that may not reflect your family's long-term needs. A comprehensive Life & Legacy Plan helps you navigate these complexities while ensuring your fundamental goals—protecting your family and preserving your legacy—remain the priority.

The new law also demonstrates how quickly and dramatically tax and benefit policies can change. What seems permanent today may be modified or eliminated tomorrow based on political and economic pressures. This reality makes it essential to have a plan that can adapt to changing circumstances while maintaining core protections for your family.

Building Security in an Uncertain Environment

Real protection for your family goes far beyond having a set of documents in place. Your loved ones need a comprehensive plan that considers both the legal aspects of transferring assets and the practical realities of daily life after you're gone. The complexity introduced by the new law makes this even more important.

I don’t create a traditional estate plan because I’ve seen how traditional, documents-focused planning fails families time and time again. Instead, I have a process called Life & Legacy Planning. Life & Legacy Planning is so much more than creating documents. It's estate planning done the right way so that it will work for the people you love most when they need it to. Once you create a Life & Legacy Plan with me, your loved ones will know where to find important documents, how to access accounts, and what steps to take first. They will have clear instructions about everything from paying bills to handling your business interests.

Your Life & Legacy Plan addresses critical areas that traditional estate planning often overlooks:

Immediate Access and Instructions:

● Clear guidance on where to find important documents and how to access accounts

● Instructions for loved ones about what to do if you become incapacitated and when you die

● I will be there for your loved ones to provide ongoing support, and if I can’t, I have systems in place to ensure another trusted lawyer can step in and help

Financial Reality Planning:

● Strategies for managing increased healthcare costs, if it becomes necessary

● Contingency plans for when temporary tax benefits expire while family members are still financially dependent

● Methods to maintain your family’s lifestyle while building long-term financial security

Ongoing Adaptability:

● Regular plan reviews to address changing laws and life circumstances, so your plan works over time

● Systems to update your asset inventory and beneficiary designations as your situation evolves

● Ongoing relationship with me, who understands both your family dynamics and the legal landscape

Your Next Steps

The One Big Beautiful Bill creates both opportunities and challenges for American families. While some provisions offer immediate tax savings, the temporary nature of many benefits and the broader changes to healthcare and benefit programs require careful planning to protect your loved ones’ long-term security.

We help you create a Life & Legacy Plan that works regardless of changing political winds or economic conditions. Our process starts with a Planning Session, where we'll discuss how these new laws affect your specific situation and what steps you can take to protect your family's future.

Don't let the complexity of the new law overwhelm you or prevent you from taking action. The families who thrive through periods of change are those who plan ahead and work with a trusted advisor who understands both the opportunities and the risks, and is there to provide personal guidance and support for you and your loved ones.

Click here to schedule a complimentary 15-minute discovery call to learn more and get started!

What to Do First When Starting Your Estate Plan

Wed, 30 Jul 2025 17:30:00 GMT

When people hear the term “estate planning,” they often think it’s only for the wealthy or something to put off until retirement. But the truth is, estate planning is for everyone—at every stage of life . Whether you're a young professional, a new parent, or simply someone ready to get organized, a solid estate plan gives you peace of mind and protects the people you love most.

So where do you start?

Here’s a step-by-step guide to what your estate planning attorney will walk you through in building an estate plan that fits your life, your family, and your future.

1. Understand Why Estate Planning Matters

Estate planning isn’t just about what happens after you die—it’s about making sure your wishes are carried out during your life, too. A good estate plan ensures:

Your children are cared for by people you trust.
Your finances are managed if you’re unable to do so.
Your medical decisions reflect your preferences.
Your assets are passed on with as little delay, confusion, or cost as possible.

Without a plan, state law decides— and that may not align with what you want .

2. Take Inventory of What You Own and What You Owe

Start by listing out:

Real estate (homes, land, rental properties)
Bank accounts, retirement accounts, and investments
Life insurance policies
Business interests or intellectual property
Vehicles, valuables, and personal belongings
Any outstanding debts

Knowing what you own will help you—and your attorney—build a plan that protects those assets and distributes them efficiently.

3. Think About Who You Trust

You’ll need to choose the right people to:

Handle your affairs if you can’t (agent under a power of attorney)
Make healthcare decisions on your behalf (healthcare proxy)
Serve as executor of your will or trustee of your trust
Care for your children if something happens to you (guardian)

These choices are personal and important—pick people who are trustworthy, organized, and willing to serve.

4. Decide Who Gets What (and When)

This is where the “planning” comes in. Do you want your children to inherit at a certain age? Should assets be held in trust? Would you want someone to receive a specific item or amount?

Estate planning isn’t always about dividing things equally—it’s about dividing things wisely .

5. Create the Core Documents

A comprehensive estate plan typically includes:

Last Will and Testament: States your wishes and names your executor and guardians.
Revocable Living Trust (optional): Allows for probate avoidance and long-term asset management.
Durable Power of Attorney: Lets someone manage your finances if you’re incapacitated.
Healthcare Power of Attorney & Living Will: Names someone to make medical decisions and outlines your preferences for care.
HIPAA Authorization: Grants access to your medical information when needed.
Authorized Caregiver: Allows someone you trust to care for your children if you are temporarily unable.

Your estate planning attorney will help tailor these documents to your situation and to state law.

6. Review and Update Beneficiaries and Transfer Assets

Make sure the beneficiaries on your life insurance, 401(k), IRA, and other accounts are up to date. These designations override your will—so even if your will says one thing, the account will go to whomever is listed as the beneficiary.

7. Store Everything Securely—and Let Someone Know

Keep your signed documents in a safe, fireproof location. Make sure your trusted people (like your agent or executor) know where they are and how to access them in an emergency.

Talk to an Estate Planning Attorney

While it may be tempting to download a few templates or use a DIY website, estate planning is not one-size-fits-all. An experienced estate planning attorney doesn’t just fill in the blanks—they help you create a plan that reflects your family’s unique needs, goals, and values.

Here’s why working with an attorney is so important:

Know All Your Options

Most people don’t know what they don’t know. Should you use a will or a trust? How can you protect your assets from probate or creditors? What if you own a business, or have children from a previous relationship?

An attorney will help you understand your legal options and recommend strategies that match your situation—not just the default choices.

Align Your Plan with Your Family’s Goals

Whether your priority is minimizing taxes, protecting your children, avoiding family conflict, or maintaining privacy, a lawyer can structure your plan to make sure it’s working for you—not just checking boxes.

Avoid Mistakes That Could Hurt Your Loved Ones

DIY estate plans often contain errors or omissions that aren’t discovered until it’s too late—when the plan needs to work and fails. Working with an attorney ensures your documents are legally valid and fully aligned across your financial and personal life.

Keep Your Plan Up to Date

Estate planning isn’t a one-and-done task. As your life changes—marriage, children, divorce, moving states, or growing wealth—your plan needs to evolve. An attorney can guide you through regular updates so your documents always reflect your current wishes.

Bottom line: Estate planning is personal, and the stakes are high. A well-crafted plan can protect your family, preserve your legacy, and give you peace of mind. An estate planning attorney is your partner in making sure that happens—properly, legally, and thoughtfully.

Final Thoughts

Getting started with estate planning may feel overwhelming, but it’s one of the most thoughtful, protective, and empowering things you can do. Whether you’re planning for young children, aging parents, or just your own peace of mind, taking action now saves your loved ones confusion and stress later.

If you’re ready to start, consider reaching out to an estate planning attorney for a free consultation —it’s easier (and more affordable) than most people think.

A Texas Mail Carrier's Act of Love Shows Why Your Pets Need a Plan Too

Wed, 23 Jul 2025 17:30:00 GMT

When Ian Burke, a mail carrier from Destin, Texas , heard that Floyd—a 70-pound dog he'd befriended on his delivery route—had ended up in a shelter after his owner's death, he didn't hesitate. Burke arrived at the City of Denton Animal Shelter before it opened to be first in line to adopt Floyd and give him a new home.

It's a heartwarming story with a happy ending, but it also highlights a sobering reality: Floyd was lucky. Thousands of pets aren't so fortunate when their owners pass away without making arrangements for their care. According to the American Society for the Prevention of Cruelty to Animals (ASPCA), 5.8 million dogs and cats entered animal shelters and rescue organizations in 2024, and many are there because their owners died or became incapacitated without a plan in place.

As touching as Burke's story is, Floyd's situation could have ended very differently. What if no one had stepped forward? What if Burke hadn't heard about Floyd's plight? This story serves as a powerful reminder that our beloved pets depend entirely on us—not just for their daily care, but for their future security. Let's explore why including your pets in your Life & Legacy Plan isn't just thoughtful—it's essential.

The Reality Most Pet Owners Don't Consider

According to Burke, Floyd's owner was a Vietnam veteran who clearly loved and cherished his dog. Yet despite this strong relationship, Floyd still ended up in a shelter.

This scenario plays out across the country every day. Well-meaning pet owners assume that a family member will automatically step in to care for their animals, but this isn't always the case. Families might live far away, have allergies, rent properties that don't allow pets, or simply be unable to take on the financial responsibility of pet ownership. Even more challenging is that when families are grieving, they're often overwhelmed by legal processes they don't understand, leading to hasty decisions that leave beloved pets in uncertain situations.

Animals also grieve the loss of their owners and struggle with sudden changes in environment and routine. Floyd was fortunate that Burke acted quickly, but many pets experience weeks or months of uncertainty before finding new homes, if they find them at all. So what can you do to make sure your beloved pet is cared for by the people you want in the way you want?

What to Do Instead

You might think that simply telling a family member, "Take care of Fluffy if something happens to me," is enough, but informalities often fail when put to the test. During times of grief and stress, verbal promises can be forgotten, circumstances can change, and family dynamics can complicate even the best intentions. Without clear legal guidance and a trusted advisor who understands you and your wishes, your pet could end up in a shelter, just like Floyd.

Thoughtfully Choose and Prepare Your Pet’s Future Caregivers

A comprehensive pet plan goes far beyond naming a caregiver within a set of documents. When you work with us, we’ll take time to understand you and your wishes for your pet’s care - We’ll support you to identify the right people to care for your pet, and prepare them so they know how to care for your pet in the way you want. We can also help you have honest conversations with your chosen caregivers about expectations, financial arrangements, and long-term commitments. Additionally, We’ll help you create contingency plans, including choosing backup caregivers in case your first choice is unavailable, or selecting a “first responder” who can be immediately available in the event of an emergency.

We will be there for your loved ones after you die, to guide your chosen caregiver with care, so they can implement your wishes, rather than leaving them to figure out what to do and how. I will help make the process smooth and as easy as possible for them. And if I’m no longer living, I’ve created succession plans to ensure your loved ones will have the support they want and need.

Consider the Practical Aspects That Are Often Overlooked

Your plan should also include detailed and practical guidance that’s often overlooked by cheap legal plans, AI, financial advisors, and even traditional lawyers. This includes information about your pet's routine, dietary needs, medical history, behavioral quirks, and preferences. For instance, does your dog have specific walking routes or dog parks he enjoys? Does your cat need medication at certain times? What treats does your pet love, and what foods should be avoided? This information helps ensure continuity of care and reduces stress for both the pet and the new caregiver.

Other practical aspects to consider include providing your caregivers information about how to access veterinary records, vaccination schedules, microchip information, and pet insurance policies. Your chosen caregiver will also appreciate having details about your pet's daily routine, favorite toys, and comfort items that should accompany them to their new home.

Additionally, consider what you want to happen when your pet is approaching the end of their life. Having clear instructions for your pet’s caregiver about when and how to make these difficult decisions removes an enormous emotional burden from your caregiver and ensures your values guide these important choices.

Finally, a critical issue often overlooked is what happens if you’re incapacitated and can’t take care of your pet. If you become incapacitated, who will care for your pet during your recovery or long-term care? In an emergency, how will they access your home to retrieve pet supplies and comfort items? These practical considerations are often overlooked, but are crucial to ensure your pet is fed, watered, and walked.

A colleague of mine once saw a man rollerblading in a local park, and at high speed, he fell and suffered a head injury. Luckily, a neighbor walked by who knew the man and knew he had a dog, and was able to get inside the house and take the dog while his owner was taken to the hospital. But what if that neighbor hadn’t been there? How long would the dog have been alone, without food or water? Would the dog have lived much longer? It’s scary to think about.

Make a Financial Plan for Your Pet’s Care

According to a report by Rover.com published this year , the lifetime cost of owning a cat or dog is estimated to be $32,000-$35,000. Given that, not having a solid financial plan can make all the difference between your pet being cared for by the right person or ending up in a shelter. When you work with me, I’ll educate you about your options so your chosen caregiver has the resources they need. One option is creating a pet trust.

A pet trust offers two main benefits: it removes or lessens the financial burden a pet may place on a designated caretaker, whom may not be able to care for your pet otherwise, and it allows you to dictate, in enforceable and detailed terms, the type of care your pet will receive. Pet trusts can also specify how much money should be spent on routine care, medical expenses, and even end-of-life decisions. When you work with us, we will educate you so you know whether a pet trust makes sense for you and your pet. If not, we’ll support you to create the right financial plan for you.

How Life & Legacy Planning Protects Your Beloved Pet

Unlike Life & Legacy Planning, traditional estate planning doesn’t take into account the personal guidance and support you need to ensure your pet is cared for the way you want. Traditional estate planning won’t provide your loved ones with guidance when something happens to you. And traditional estate planning is usually “one-size-fits-all,” meaning it may not include what your pet and caregiver need.

Traditional estate planning focuses only on creating a set of documents, like a will, trust, power of attorney, and healthcare directive (or, a “documents only plan”). That set of documents usually sits on a shelf and becomes outdated, and can fail, potentially resulting in your pet being taken to a shelter. Documents don’t provide care and human support for loved ones. And if you don’t have a trusted advisor looking out for you and staying in touch to ensure your plan stays up to date, it won’t work.

The difference between traditional estate planning and working with me to create your Life & Legacy Plan is that I build a lasting personal relationship with you, and one that extends support to your loved ones after you're gone. While many lawyers lose touch with clients once documents are signed (another feature of “documents-only” planning), I maintain an ongoing relationship, rooted in care, concern, and personal connection.

Finally, our Life & Legacy Planning ^Ⓡ process includes ongoing reviews and updates to your plan as your life changes. I have systems in place to remind you, so you don’t need to remember to amend your plan on your own. If your pet’s designated caregiver moves away or your pet's needs evolve, we will catch it in time and adjust your plan so it doesn’t become outdated and fail. If your plan is updated when you die, your loved ones won't be struggling to figure out what to do —they'll have me to guide them through the process with care and support. And if I’m no longer living, I have plans in place to ensure continued care for your loved ones.

Take Action for Your Pet's Future Today

Floyd's story ended happily because of one mail carrier's compassion and quick action, but your pet's future shouldn't depend on chance encounters and random acts of kindness. By including comprehensive pet planning in your Life & Legacy Plan, you can ensure that your beloved companion receives the care, love, and security they deserve, no matter what happens to you.

We’ll help you create a Life & Legacy Plan that protects every member of your family, including the four-legged ones. Unlike traditional lawyers who create documents and then move on to the next client, I understand that effective planning requires ongoing care and attention so it works when you need it to.

And when you're no longer here, your loved ones won't struggle to understand the legal process or wonder what you would have wanted for your pets. I will be there for them when they need guidance and care. This ongoing relationship is what transforms a simple set of documents into a plan that truly works, giving you peace of mind knowing all your loved ones, even the furry ones, will be protected and cared for. With Life & Legacy Planning, you can give your loved ones the greatest gift they could ever want: your lasting love and care.

Click here to schedule a complimentary 15-minute discovery call and learn how I can help you create a plan that protects everyone you love.

Does Treating Your Children Fairly Mean Unequal Inheritances?

Wed, 16 Jul 2025 17:30:08 GMT

When thinking through their estate plan and how they want their assets (money and property) managed after they pass away, most parents wish to treat their children equally, often out of a sense of fairness. However, sometimes being fair or doing what is right by your children may mean giving unequal inheritances.

The Key Takeaways

● Treating children fairly does not always mean equal inheritances.

● How and when each child receives an inheritance may need to be customized to each child’s needs and circumstances.

● Not providing an outright inheritance is usually a good choice, as assets in a trust can be protected from the beneficiary’s irresponsible spending, divorce, predators, and creditors.

When Unequal Inheritances May Be Fair

There are often special circumstances to consider before you divide the family pie into equal parts. For example, you may

● choose to leave more money to your son who struggles to support his family on a modest teacher’s salary than to your daughter who makes seven figures, is married to a Wall Street tycoon, and has no children;

● opt to give a larger inheritance to a child who has dedicated themselves to volunteer work, the arts, religion, or public service;

● want to compensate a child who has given up part of their own life to care for you;

● wish to provide equally for all of your grandchildren, even if one child has more children than another;

● have a much younger child who needs care until adulthood, whereas your adult children are financially independent;

● have a special needs child who will need expensive and in-depth care for their entire lifetime; or

● have a child who has contributed to the family business and other children who have not. Instead of making them all equal owners in the business, you may want to leave the business to the one who has contributed and shown an interest and then provide for the others with other assets such as life insurance.

Distribution of Inheritances May Also Vary

You need to decide not only how much your children should receive but also when they will receive it, which may differ for each child. You can distribute inheritances in a lump sum or in installments; or you can keep an inheritance in a trust to be used for the children’s benefit at the trustee’s discretion without giving a child money outright. Consider factors such as the size of the potential inheritance, your children’s ages and family situations, how they have handled their own money, and how much they need your financial gift.

What You Should Know

Many parents do not provide outright inheritances, preferring to keep assets in a trust for their children. The trustee can make distributions for your children’s benefit based on guidelines you provide, while assets that stay in the trust have greater protection from irresponsible spending; creditors (bankruptcy, lawsuits, and divorce); and predators (those with undue influence on your child).

Example. Frank and Jen have two sons who are stable and responsible with their own money. Their sons will receive their inheritances in a lump sum after Frank and Jen die. However, their daughter is in and out of rehab and has been irresponsible with her own money. Fearing she will misuse her inheritance, Frank and Jen decide to keep her share in a trust so she can be provided for without the assets being completely available to her.

Actions to Consider

● If you can afford it, consider giving your children some of their inheritance now. Not only will you have the opportunity to witness them enjoying your gift, but it will also provide insight into how your children will manage an inheritance.

● Consider whether your children should be your only beneficiaries. Perhaps you have additional goals such as providing for your grandchildren’s education, gifting property to other loved ones, providing for beloved pets, making charitable contributions, or setting up a family foundation or donor-advised fund.

You must take action to ensure that your children receive their inheritances in the way that is best for them as individuals. Our office can ensure that your estate plan and your children’s best interests match—and continue to match—as life unfolds. Call us to schedule an appointment to create or review your estate plan.

Family Travel Reminder: Legal Essentials to Pack First

Wed, 09 Jul 2025 17:30:00 GMT

Summer is in full swing, and whether you’re heading to the beach, the mountains, or hopping on a plane abroad, a family vacation is meant to be a time of fun, connection, and relaxation. But before you pack your bags and set the out-of-office reply, there's one more checklist you should complete—your legal one.

While it may not be the most exciting part of trip planning, having key legal documents in place before a family vacation can give you invaluable peace of mind. Life is unpredictable, and being prepared means you can focus on the memories, not the “what-ifs.”

Here are the essential legal documents every family should consider having in place before heading out on vacation:

1. Healthcare Directives and Medical Powers of Attorney

Accidents and medical emergencies can happen anytime, anywhere—even on vacation. A healthcare directive (sometimes called a living will) and a medical power of attorney allow you to name someone you trust to make medical decisions on your behalf if you're unable to.

If you’re traveling without your children, it’s especially important to leave these documents for any caregivers. And if you're traveling internationally or with older children, consider having these documents available for all adults in the family.

Tip: Include a HIPAA release so your healthcare agent can access your medical information in an emergency.

2. Durable Power of Attorney

A durable power of attorney gives a trusted person the authority to handle your financial or legal matters if you're out of reach or incapacitated. This can be particularly useful if you own a business, have bills due while you’re away, or are managing ongoing legal or financial affairs.

3. Authorized Caregiver for Minor Children

If you're leaving your kids behind with grandparents or friends—or if you’re traveling and something happens to both parents—you’ll want a power of attorney authorization in place. This allows the chosen adult to make medical, educational, or emergency decisions on behalf of your children during your absence.

4. Last Will and Testament / Revocable Trust

While no one wants to think about worst-case scenarios before a relaxing vacation, having a valid, updated will in place is a key part of protecting your family. A will outlines who would care for your children and how your assets should be distributed.

Important: Make sure your will includes clear guardianship designations for minor children—especially if you're traveling as a couple or with extended family.

If you have a revocable living trust , this is also a good time to review and ensure it's properly funded and up to date. Trusts can help your family avoid probate and ensure smoother management of your assets if something happens while you're away.

5. Travel Consent Letters

If one parent is traveling alone with the children, or if minors are traveling with grandparents or other relatives, travel consent letters are essential. These documents demonstrate that the child has permission to travel, and they may be required by airlines, border agents, or immigration authorities.

Include:

The non-traveling parent’s contact information
Details of the trip
Copies of ID or custody agreements, if applicable

6. Emergency Contact and Document Packet

Create a simple packet to take with you (or leave with a trusted person) that includes:

Copies of the above legal documents
Emergency contacts
Health insurance cards
Copies of passports and travel itineraries

You can keep this in a secure cloud folder and/or a physical envelope marked “In Case of Emergency.”

Final Thoughts

Vacations are meant to be carefree—but being legally prepared is the foundation that lets you truly relax. Taking just a few hours to put these key documents in place can make a world of difference in an emergency and ensure your family is protected, no matter where your travels take you.

If you’re unsure where to begin, consider speaking with an estate planning attorney. They can help you create or update these documents quickly, so you can head off on your trip with confidence—and without last-minute stress.

Safe travels—and don’t forget your sunscreen and your legal plan!

Life, Liberty, and Legacy: How Life & Legacy Planning Promotes Independence

Thu, 03 Jul 2025 20:06:01 GMT

Every Fourth of July, we celebrate more than fireworks and barbecues. We honor the bold vision of people who refused to accept the status quo and instead created a framework for lasting freedom. The Declaration of Independence wasn't just a document—it was a comprehensive plan that established principles, assigned responsibilities, and created structures to protect future generations.

This Independence Day, consider how the same spirit can inspire you to create your own declaration of independence for your loved ones. Just as our founders understood that true freedom requires intentional planning and sacrifice, creating a Life & Legacy Plan ensures your loved ones won't be bound by confusion, court battles, or government decisions when you're no longer here to guide them.

Let's explore how the principles that built America can help you build lasting security for the people you love most.

Freedom From Government Control Over Your Family's Future

Our founders fought for the right to self-governance, rejecting the idea that distant authorities should make decisions about their lives and families. Today, you face a similar choice. Without an estate plan, you're essentially allowing the government to make crucial decisions about your family's future through default state laws and probate courts.

Here are just a few things that could happen:

A judge who has never met you or your children will decide who raises them.

This means they could end up with people you’d never want to raise them - people who don’t share your values or wouldn’t honor your wishes.

State laws determine how your assets are divided.

The law was written for everyone, and so is inherently a one-size-fits-all solution. The law doesn’t take into account your wishes or your loved ones’ unique needs. It also means that someone you’d never want to inherit from you may, and your assets may not go to the people you want in the way you want.

Your loved ones won’t have access to funds when they need them.

Your loved ones may wait months or years for access to resources you intended them to have immediately. This means your bills won’t be paid, your children may lose access to funds for ongoing care, or your spouse may not be able to maintain their lifestyle. If you die with a mortgage and no one is able to make the monthly payments, any equity you have may be lost to foreclosure, instead of going to the people you love most.

It’s also common for assets to get lost and end up with the state’s department of unclaimed property, because you haven’t created an inventory of your assets, including how to access them after your death - and kept the inventory with your plan and updated it over time.

The public can access your personal information.

Without an estate plan, your loved ones must go through a court process, which is public. They will need to submit information about your assets and your family.

The power to choose belongs to you. In what’s perhaps a rare circumstance, when it comes to your legal planning, your choices override the law.

However, not every estate plan will accomplish what you want. Many plans fail because they don’t take into account your unique family dynamics and your specific assets. They also often fail because no one is there to make sure your plan is updated over time, as your assets and life circumstances change. Just as the Constitution is often called a “living, breathing document,” designed for longevity and amended over time, your plan should work the same way. This is exactly what Life & Legacy Planning is all about.

Creating Your Own Bill of Rights for Your Loved Ones

Life & Legacy Planning goes beyond basic documents to create robust systems that work immediately when your loved ones need them. This includes detailed instructions for your loved ones, asset inventories that prevent anything from being lost, and an ongoing relationship with me, so I can guide them through difficult transitions.

Your Life & Legacy Plan also protects future generations by including provisions for how inherited assets should be managed. Instead of leaving your children vulnerable to poor financial decisions at age 18, you can structure their inheritance to support their education, encourage responsible money management, and provide security throughout their lives.

Building Lasting Institutions That Protect Your Legacy

Unlike traditional estate planning that focuses primarily on creating a set of documents, Life & Legacy Planning is about having an ongoing relationship with a trusted advisor who works with you over time to ensure your plan works. When you work with me to create your Life & Legacy Plan, I’ll also support you to:

● Make sure your children are never taken into the care of strangers and will be raised by the people you want with your guidance.

● Pass on your assets to the people you want in the way you want. This may include a structured inheritance for your children, so they don’t receive assets at age 18, when they’re more likely to make poor financial decisions.

● Create an asset inventory that is updated over time so that no assets get lost and end up in the department of unclaimed property.

● Create a Life & Legacy recording, where you share the stories, traditions, wisdom, and values that matter most to you. These are the things that mean more to your loved ones than money. And it’s the best way to pass on your love and legacy.

● Review and update your plan as your life and assets change. I have systems in place so you never have to remember to update your plan. I’ll do that for you.

Your Life & Legacy Plan will also address practical realities that traditional planning ignores. How will your family access your digital accounts? How will they access your passwords? Where are your important documents stored, and how will your loved ones be able to find them quickly? These details can make the difference between a smooth process and months of frustration and confusion.

So, as you celebrate the freedoms our founders secured through careful planning and bold action, consider what freedoms you want to secure for your own family. The same courage that led to American independence can inspire you to take control of your loved ones’ future through comprehensive Life & Legacy Planning that works when you need it to.

Take Action This Independence Day

Don't let another Independence Day pass without taking action to secure your family's freedom. We can help you create a comprehensive Life & Legacy Plan that ensures your loved ones inherit your legacy. We'll begin your planning process with a Life & Legacy Planning ^Ⓡ Session, where you’ll gain clarity on what would happen to your assets and loved ones if you don't have a plan or have an outdated one. From there, you’ll make educated and empowered decisions to create a plan that works the way you want and reflects your values, protects your assets, and provides clear guidance for the people you love most.

Get started today by clicking here to book a complimentary 15-minute consultation with my office.

Want to Disinherit Someone? This Is What You Need to Know

Wed, 25 Jun 2025 15:30:07 GMT

Disinheritance—the intentional exclusion of a family member, usually a child or spouse, from receiving part of your estate after your death—is more common than you might think. It is also easier than you might think to disinherit a loved one, with a couple of notable exceptions. However, it is not as simple as omitting someone’s name from your estate plan.

Depending on their relationship to you and the laws in your state, some people may have legal rights to a portion of your assets (e.g., money, investment accounts, and property) when you die, unless you take specific steps to prevent them from inheriting. Even then, the decision to disinherit someone can lead to disgruntled family members and legal challenges, so the situation must be approached with care, both legally and emotionally.

Disinheritance Laws: Who You Can (and Cannot) Disinherit

You are generally—but not entirely—free to dispose of your assets at your death however you see fit. This ability to include, as well as exclude, people from your estate plan is known as testamentary freedom.

Before delving into how to disinherit someone, let’s look at who might be disinherited and the legal protections they may have against disinheritance.

Spouses

Disinheriting a spouse is often the most legally complex scenario. Spouses have significant inheritance protections, regardless of what your estate plan says. For example:

● Elective share laws. In most states, a surviving spouse has the right to claim an elective share of the assets owned solely by you, thereby protecting them from total disinheritance. The amount that can be elected varies by state but may be around one-third to one-half of your separately owned property. Some states offer a larger share to surviving spouses as the length of the marriage increases.

● Community property states. If you live in a community property state (such as California, Texas, or Arizona), assets acquired during marriage are typically considered jointly owned, and your spouse automatically has a right to half of the community property. Disinheriting a spouse in these states may apply only to your separate property.

These laws make completely disinheriting a spouse challenging—though not entirely out of reach. With careful planning, strategies like prenuptial or postnuptial agreements can be used to waive a spouse’s inheritance rights, even in states with elective share or community property regimes. While these approaches require thoughtful drafting and mutual consent, they offer a path for clients whose estate planning goals call for greater control over the ultimate distribution of their assets.

Children

When it comes to disinheriting your children, you have fairly broad testamentary freedom. However, children are afforded some protections under applicable state law that may prevent complete disinheritance.

Many states have statutory allowances—such as the family allowance, exempt property allowance, and homestead allowance—that serve as built-in protections for minor or dependent children (the term dependent children may even include adult children in some states and in some circumstances). These allowances ensure that, even if a child is not named in a will or trust, they are guaranteed a minimum level of support from the estate.

In addition, if a parent passes away while still owing child support—whether from a court order or a divorce settlement—that obligation typically does not vanish with their death. In most cases, the unpaid support becomes a debt of the estate and must be addressed before assets are distributed to heirs or beneficiaries. This ensures that the child’s financial needs continue to be prioritized, even after the parent’s passing.

Siblings, Parents, and Others

Siblings, parents, and more distant relatives (such as cousins or nieces and nephews) have no automatic right to inherit unless you die without a will (intestate) and these people are next in line under your state’s inheritance laws. In most cases, this only happens if you have no surviving spouse or children.

Disinheriting these individuals is relatively straightforward, since they are unlikely to have legal grounds to challenge your estate plan. Still, to deliberately keep a parent, sibling, aunt, uncle, or other extended relative from inheriting your assets, you need to explicitly and unambiguously write this into your will or trust and designate the specific individuals or charities that you do want to inherit from you.

Others Who Might Expect Something

Sometimes, the person you want to disinherit is not a family member but a close friend, business partner, or caregiver who might expect to receive something. If you have promised them an inheritance in the past (verbally or otherwise) or suggested it in passing, they might try to contest your estate plan if they are not included. Their claims are unlikely to succeed in court, but explicitly excluding them in your estate plan documents can clarify your intentions and eliminate ambiguity and potential lawsuits.

What Happens If You Do Not Have an Estate Plan?

Dying without a will or trust means that your state’s laws determine who inherits your assets. These laws, known as intestacy rules, prioritize close family members in a specific order, typically the following:

1. Spouse

2. Children

3. Grandchildren

4. Parents

5. Siblings

6. More distant relatives

Surveys consistently show that only around one-quarter of Americans have an estate plan . ^[1] If you want to disinherit someone who would inherit under intestacy laws, you must have an estate plan. Absent a formal, written plan that states your intentions, the wrong person could receive a portion of your assets by default.

For example, say you are estranged from a sibling and die without a will. That sibling might inherit part of your money and property if you have no surviving spouse, children, grandchildren, or parents, even though you do not want them to inherit anything.

How to Disinherit Someone

Disinheriting someone requires a clear and unambiguous statement in your estate planning documents. Leaving their name out of your plan is not enough. The court could assume that an omitted name is unintentional and award them a share of your money and property, especially if the person is a close family member. To disinherit someone, you should take the following steps:

● Make your intent explicit. Your estate plan should explicitly state that you do not want a certain individual to receive any portion of your money and property. Use straightforward language. For example:

○ “I am deliberately excluding [name] from receiving any portion of my estate.”

○ “I specifically direct that my son, [name], shall receive none of my property, whether real or personal.”

● Identify the individual clearly. Use the full legal name of the person you wish to disinherit to avoid any confusion with individuals who may have similar names. For further clarity, you can include their relationship to you, their date of birth, and other distinguishing information, such as their city and state of residence. For example:

○ “I am intentionally omitting my son, Matthew James Walker, born March 2, 1988, currently residing in Seattle, Washington, from any share of my estate. He shall take nothing under this Will.”

● Keep it brief and neutral. Your estate plan is not the place to air grievances or explain your decision in detail. Most people do not realize that wills are public documents and the things they write in them live on in public view and might cause reputational harm. Even if you are trying to explain a disinheritance, making potentially false, damaging claims can expose your estate to legal risk.

○ Writing something such as “I leave nothing to my daughter, Anna Smith, because she is a drug addict and a thief and has embezzled money from her employer” could expose your estate to a claim of testamentary libel—a defamatory statement made in a will that could damage someone’s reputation.

○ Emotionally charged language could also inadvertently create grounds for a legal challenge based on duress or undue influence claims.

○ Keep your language brief and neutral (e.g., “I make no provision for my daughter, Anna Smith, due to personal reasons known to both of us.”).

● Explain your thinking in an (optional) letter. If you feel compelled to explain your decision and have not already discussed it with the person you are disinheriting, consider writing a separate letter to them. Store the letter privately and instruct that it be shared only after your passing. This is not a legally binding document and should not be attached to your will or trust. By explaining your reasons for the disinheritance, you may help reduce the chances of a family member challenging your will or trust later on—especially claims that you lacked capacity or were influenced by someone else. A clear statement of intent can go a long way toward preventing misunderstandings and minimizing the risk of litigation.

Alternatives to Disinheritance

There is anecdotal evidence that more parents are not leaving their children inheritances to avoid entitlement and promote self-reliance. Some celebrities have publicly vowed to leave their kids little or nothing, and this trend may be trickling down to ordinary Americans.

One recent survey found that just 26 percent of Americans plan or expect to leave behind an inheritance. ^[2] Parents may want to spend the money on themselves in retirement, or they may be forced to spend it on healthcare and long-term care. They may also decide that their money is better spent on charitable giving, that it should go to someone who needs it more, or that they will embrace “gifting while living” and pass their hard-earned assets to their children now.

However, leaving an inheritance does not have to be all or nothing. If you are unsure about fully disinheriting someone or want to avoid potential conflict or legal challenges, consider these alternatives:

● Leave a smaller or symbolic inheritance. Instead of cutting someone out entirely, leave them a small token gift, such as a few hundred dollars or a family heirloom, to signal that you thought of them and did not accidentally omit them.

● Use a no-contest clause. A no-contest clause provides that anyone who challenges your will or trust loses their inheritance. You can combine this type of clause with a modest gift to discourage lawsuits since the beneficiary stands to lose something if they challenge your will or trust. Keep in mind that no-content clauses may not be recognized or enforceable under your state law.

● Create a trust. A spendthrift trust can help protect a financially irresponsible beneficiary from reckless spending and shield the inheritance from creditors. Similarly, a conditional or incentive trust allows you to set goals or milestones that must be met before funds are distributed. These tools offer a thoughtful way to provide for someone you may be hesitant to give money to outright, while still protecting their long-term well-being and interests.

● Add beneficiaries to accounts. Retirement accounts, life insurance policies, and some types of bank accounts and deeds pass directly to your named beneficiaries (i.e., those other than the disinherited loved one) and bypass the need for a will and public probate process entirely. These distributed assets will only be known to the named beneficiary and the government for tax purposes, which could help keep the distribution private and prevent a will contest.

In addition to seeking a compromise to disinheritance where appropriate, make sure to review and update your estate plan regularly in case you have had a change of heart or circumstances.

Work with an Attorney to Avoid the Personal and Legal Challenges of Disinheritance

Disinheritance can be emotionally fraught and legally tricky. It is a deeply personal decision that should be approached with careful consideration and sound professional advice.

The law respects your right to choose how your assets are distributed. It also requires that those choices are expressed clearly and meet legal requirements. An estate planning attorney can help you draft documents that comply with state laws and anticipate challenges, include provisions to strengthen your plan, and explore options such as trusts that are harder to challenge and more private than wills.

For a plan that reflects your convictions and stands up in court, schedule a meeting with us .

^[1] Victoria Lurie, 2025 Wills and Estate Planning Study, Caring (Mar. 31, 2025), https://www.caring.com/caregivers/estate-planning/wills-survey.

^[2] As $90 Trillion "Great Wealth Transfer" Approaches, Just 1 in 4 Americans Expect to Leave an Inheritance, Nw. Mutual (Aug. 6, 2024), https://news.northwesternmutual.com/2024-08-06-As-90-Trillion-Great-Wealth-Transfer-Approaches,-Just-1-in-4-Americans-Expect-to-Leave-an-Inheritance .

Do You Go By Different Names? Ensure That Your Estate Planning Attorney Knows

Wed, 18 Jun 2025 15:30:06 GMT

What is in a name?

If you are a beneficiary or a creditor of an estate, or if you are setting up an estate plan, your name means a great deal.

It is not unusual for a person to go by different names, such as the name we are given at birth and the names we choose for ourselves. Some of us use nicknames; others use our middle name or initials as our primary name. We may also legally change our name due to marriage, divorce, gender identity, or personal preference. Some people even use different names within specific communities and groups.

However you choose to identify yourself and whether you have changed your name formally or informally—in the eyes of the court or just among friends and family—you need to ensure that any different names, and variations thereof, are reconciled across legal documents, including your estate plan, to avoid confusion and unintended outcomes.

Same Person, Different Name: Name Variations Are Common

Your name is a seemingly simple detail that may not receive much attention in your daily life, but it can have major ramifications for your estate plan and what happens after you pass.

Think for a moment about how you present yourself on paper and in person. The following are some examples of common name variations:

● Full legal name (first, middle, last). Some people consistently use their full legal name (e.g., Katherine Elizabeth Johnson).

● Middle initial (first, middle initial, last). Others prefer a more concise version (e.g., Katherine E. Johnson).

● Middle name instead of first (middle, last). In some cases, someone may go by their middle name (e.g., Elizabeth Johnson) instead of their legal first name (Katherine).

● Nickname. Nicknames can differ significantly from legal names (e.g., Kate for Katherine, Jack for John, or Peg for Margaret).

The names you use, like the clothes you wear, may have changed over the years to reflect how you have changed. Most adults likely have at least one alternate name (particularly women, due to marriage), but nongiven names can also appear in other contexts.

● Maiden names. According to Pew Research, nearly 80 percent of US women and 5 percent of US men in opposite-sex marriages take their spouse’s surname after marriage, ^[1] while around 14 percent of women in opposite-sex marriages retain their maiden name. ^[2]

● Hyphenated last names. An estimated 20 percent of married couples in North America use hyphenated last names. ^[3] However, if parents pass their hyphenated last name to their children, the children may later drop the hyphen. As NPR notes, merging hyphenated names can become a “bureaucratic nightmare,” causing confusion at schools, at doctors’ offices, and in other settings. ^[4]

● Online aliases and pseudonyms. A study from blog comment hosting service Disqus found that 70 percent of people who use nicknames or aliases online do so for privacy. ^[5]

● Professional names. Authors and entertainers often use pseudonyms, such as J.K. Rowling writing as Robert Galbraith, Robert Zimmerman performing as Bob Dylan, or Prince using a symbol instead of a name. People may also use an alias to separate their personal and professional identities.

● Cultural practices. Immigrants may Americanize their names as part of the assimilation process and for economic benefits, especially if their legal name is difficult to spell or pronounce. Around one-third of immigrants to the United States changed their names within 10 years of their arrival. ^[6]

● Adoption. For people who are adopted, both their first and last names can be changed once the process is complete.

● Personal choice. Many celebrities, including Angelina Jolie, Cher, and Elton John, have legally changed their names.

Why Name Nuances Matter in Your Estate Plan

Variations in how you identify yourself might seem trivial in everyday contexts and conversations, but they can create issues in your estate plan. Informing your attorney about every name you have used can prevent headaches and potential complications. Here is how:

● Identifying what you own. Estate planning begins with cataloging assets (e.g., bank accounts, real estate, investments, and digital assets). Tracking and inventorying these assets can be challenging if you have used different names. For example, a bank account under the name Katherine E. Johnson and a home under Elizabeth Johnson might be missed if only one name is listed. The deed to your house, brokerage accounts, and vehicle titles should also be checked for name variances. Without knowing all the nuances of your name, your attorney might inadvertently overlook assets when creating your estate plan, leading to certain assets not being included in your plan and delays and legal hurdles for your beneficiaries, who may need to provide legal documentation of your name change.

● Putting creditors on notice. The person you choose to wind down your affairs after your death (personal representative, executor, or successor trustee) must settle debts before distributing assets to your loved ones. The process of settling debts often requires creditor notification. Depending on state law, creditors have limited time to file claims against a deceased debtor’s estate. Publishing notice of the debtor’s death may shorten the amount of time that a creditor has to file their claim. However, name mismatches can alter this timeline. If debts are under a different name, creditors may not be properly notified, leading to disputed debts that extend probate and increase legal costs.

● Searching for unclaimed property. States hold billions of dollars in unclaimed assets, such as bank accounts, uncashed checks, utility payment refunds, and insurance payouts. About one in seven people have unclaimed property held by their state’s treasuries, collectively amounting to billions of dollars in unclaimed property in the US. ^[7] When you pass away, your estate may need to search for unclaimed property to ensure that all your assets are accounted for. If your attorney does not know that you once went by the name Katherine E. Johnson or a nickname such as Kate Johnson, they might miss unclaimed property tied to those names, and your loved ones could lose out on assets that rightfully belong to them.

In addition to assets, creditors, and unaccounted-for and unclaimed property, name variations can disrupt the following:

● Digital assets. Digital assets such as cryptocurrency wallets can be difficult for executors to access if they are not clearly documented or linked to your legal identity. Noncustodial wallets, in particular, may be unrecoverable without the seed phrase or private key, even if the executor knows they exist.

● International assets. Assets abroad may use names adapted to local legal, linguistic, or cultural conventions. For instance, a property in Spain titled under the name Catalina Johnson might not match a US will’s reference to the same person, Katherine Johnson. Also, names may appear with spelling variations; in a different script (e.g., Cyrillic or Arabic); or reordered (i.e., last name appearing first).

● Blended families. In blended families, name changes resulting from remarriage or adoption might confuse inheritance rights.

● Taxes. Inconsistencies in names across financial accounts and tax documentation could potentially raise red flags with tax authorities during the estate administration process.

● Beneficiary designations. Failure to update beneficiary designations on life insurance policies, retirement accounts, and payable-on-death or transfer-on-death accounts after a legal name change can lead to complications for your beneficiaries when they try to claim the benefits. Financial institutions could delay or deny payouts, and your loved one may need to provide proof of the name change to establish their identity.

● Powers of attorney and healthcare directives. If your or your appointed agent’s name is legally changed after these documents are created, updating them is necessary to ensure that your agent’s authority is clearly recognized under their current legal name and that the documents are unequivocally tied to your current legal identity.

The last two examples show the importance of regularly reviewing estate planning documents to ensure that they reflect any name variations and new legal names for you, your estate plan’s beneficiaries, and your trusted decision-makers.

Make Name Changes a Part of Your Regular Estate Plan Updates

William Shakespeare famously wrote “a rose by any other name would smell as sweet” to mean that things are what they are, no matter what name we give them.

A name does not necessarily define who you are. However, name changes and variations can leave a sour taste in the mouths of beneficiaries, creditors, trustees, and executors when the time comes to settle your estate.

Many estate plans have not been touched since they were first created years ago and are woefully outdated. As part of the review process, you and your attorney should take the time to discuss any informal variations and formal legal changes to your name—and the names of your beneficiaries and decision-makers—to ensure a more accurate and effective estate plan. If you are just starting your plan, be sure to tell your attorney all your names. Call us to schedule an appointment to create or review your estate plan.

^[1] Luona Lin, About 8 in 10 women in opposite-sex marriages say they took their husband’s last name, Pew Rsch. Ctr. (Sept. 7, 2023), https://www.pewresearch.org/short-reads/2023/09/07/about-eight-in-ten-women-in-opposite-sex-marriages-say-they-took-their-husbands-last-name.

^[2] Id.

^[3] Ethan Grant, The Rise of Hyphenated Last Names: Embracing Equality and Heritage in Modern Families, Bluenotary (Jan. 5, 2025), https://bluenotary.us/hyphenated-last-name.

^[4] Tovia Smith, When Hyphen Boy Meets Hyphen Girl, Names Pile Up, NPR (Jul. 19, 2012), https://www.npr.org/2012/07/19/156923573/when-hyphen-boy-meets-hyphen-girl-names-pile-up.

^[5] Steve Roy, What’s In A Name? Understanding Pseudonyms, Disqus (Dec. 15, 2014), https://blog.disqus.com/whats-in-a-name-understanding-pseudonyms.

^[6] Steinar Brandslet, Name change in the United States brought economic payoff, Norwegian SciTech News (Jun. 26, 2018), https://norwegianscitechnews.com/2018/06/name-change-united-states-economic-payoff.

^[7] What is unclaimed property? Nat’l Ass’n of Unclaimed Prop. Admins., https://unclaimed.org/what-is-unclaimed-property.

How to Protect Your Family When You and Your Spouse Work in the Same Business

Tue, 17 Jun 2025 15:30:01 GMT

You and your spouse live together, work together, and likely spend a great deal of your free time together. Having a successful marriage and business takes hard work and dedication, but it can also be among the most rewarding things in life. To help keep you on the right track, here are a few tips.

1. Create separate budgets for your family and your business. Money can be a tense topic, even for the average married couple. With a family and a business to run, it is especially important for the two of you to sit down and agree on a budget for your family as well as a budget for your business. By having open and honest communications about your finances, both personally and professionally, you can stave off more heated conversations.

2. Keep work at work. While your business is likely the main source of your family’s income—and often the main thing on your mind—it is important to create a boundary between your work lives and your home lives. If your business has a physical location outside your home, establish a rule that you and your spouse will discuss business only while you are at work. If you and your spouse are running a home-based business, you can establish “business hours,” and any time outside those hours is personal time when business will not be discussed. Whichever approach you use, it is important that you allocate enough time to accomplish your work.

3. Have your own hobby. Because you probably spend so much time together, it is important for each of you to take time alone to do something that you enjoy. This can be as simple as carving out time to take a long relaxing bath or joining a local soccer team. Having your own hobby allows you to access another part of yourself and take a break from the usual routine. Studies have also shown that individuals who have hobbies they enjoy tend to have lower blood pressure, are less stressed, and are happier overall.

4. Have your estate plan prepared or reviewed. Like any other couple, business-owning spouses need estate planning to protect each other and help ensure a financially secure and prosperous future for their loved ones. When a couple works together in a business, their financial picture and overall goals may be complicated and intertwined, making proper estate planning an even greater necessity. Below are some of the basic estate planning tools you need to protect yourself, your family, and your business.

○ Revocable living trust. With a revocable living trust (often simply called a trust ), your money, property, and even your interest in your business are owned by the trust rather than by you personally. While this may seem scary, it does not mean that you are giving up control. In creating the trust, you can name yourself as the trustee (the one in charge of managing the money and property, including your business interest, which is owned by the trust) and as the current beneficiary (the person who gets the enjoyment from the money, property, and business). The major benefit of having the trust own your money, property, and business is that, when you die, these assets pass to your designated beneficiaries without having to go through probate court proceedings. Also, if you are ever unable to manage your affairs while you are alive, the successor trustee you appoint can easily step in and take over management of the trust assets (including your business interest), thereby preventing unwanted disruption. Both of these advantages will save your family time and money and can keep your personal affairs private.

In addition to avoiding probate, a trust allows you to provide some instruction for the future of your business. It can address questions regarding who will run the business if you are unable to continue or after your death, whether the next generation is ready to step up and lead, and whether you want to provide for a beneficiary not involved in the business.

○ Financial power of attorney. By default, no one (not even your spouse) can make financial or legal decisions for you during your lifetime unless you legally select someone through the creation of a financial power of attorney . If you do not make this choice through proactive legal planning, the probate court will appoint someone for you, often through a very public and costly proceeding. Although your spouse may be the best person to make decisions about you and your business, they need the appropriate authority to do so. Executing a financial power of attorney can facilitate a smooth transition during a stressful and emotional time if, for some reason, you are unable to make decisions for yourself.

This document is incredibly important if only one of you is the legal owner of the business, even if both of you consider yourselves partners. Although the other spouse may be intimately familiar with the operations, they cannot make any decisions that may be necessary to keep the business going without the proper authority.

○ Medical power of attorney. As with financial matters, no one has the authority to make medical decisions for you during your lifetime unless you select them through proactive estate planning (via a medical power of attorney ) or they are appointed by the court. If you are unable to communicate your wishes when an emergency arises, it is important that the person who will decide your course of treatment is someone you trust. If you leave the decision up to the court, there is always a chance that it will appoint a person you would not have chosen.

○ Limited liability company or other business entity. Depending on how your business is currently structured, part of the planning process may include reviewing your business structure to ensure that it has been set up in a way that offers you the maximum asset protection, tax benefits, and ease in transitioning ownership to the next generation. One common way to achieve these benefits is by operating your business through a legally recognized business entity, such as a limited liability company (LLC). As part of your estate plan, you may then choose to transfer ownership of the LLC to your living trust to help secure all of the advantages of a living trust outlined above.

Having a successful marriage and business takes hard work. We can assist in ensuring that your family and business are protected if unforeseen circumstances befall your family. Call us today to schedule an appointment.

This Father’s Day Take Your Provision One Step Further

Thu, 12 Jun 2025 22:26:23 GMT

Father's Day arrives each June filled with barbecues, baseball games, and heartfelt cards celebrating the dads who shape our lives. While ties and tool sets make thoughtful gifts, what if we turn the tables altogether and put the family resources toward a far more meaningful gift this Father's Day—one that helps dad feel confident that he’s stepping into his best self, and providing for the family no matter what.

As a father, your number one goal is likely to provide for your family in the best way you possibly can. But have you taken steps to ensure the people you love will be cared for if something happens to you? And, if you have, are those steps the right steps or are they false security that will leave your family with a mess you wouldn’t wish on anyone? This Father's Day offers the perfect opportunity to explore how estate planning done the right way becomes the ultimate expression of fatherly love and provision.

The Weight of Fatherly Responsibility

Being a father means carrying an invisible weight that never truly lifts from your shoulders. From the moment your first child arrives, you become acutely aware that others depend on you, not just for today's needs but for tomorrow's security. This awareness often intensifies as your children grow and your responsibilities multiply.

You probably find yourself thinking about questions that didn't exist before parenthood. What happens to your mortgage if you're not here to pay it? Who would handle your children's daily routines, school decisions, and emotional needs? How would your family maintain their lifestyle without your income? These concerns aren't signs of pessimism—they're evidence of the deep love and responsibility that define fatherhood.

Many fathers try to address these worries through life insurance, thinking a policy will solve everything. While life insurance certainly plays an important role, it's only one piece of a much larger puzzle. Without estate planning done right, even substantial life insurance proceeds can become tied up in lengthy court proceedings or even lost, leaving your family without access to funds when they need them most.

The reality is that the traditional approach to estate planning - or, creating a set of documents that you then put on a shelf and forget about - often fails when your loved ones need it to work.

When Good Intentions Meet Reality

Consider this hypothetical scenario: A devoted father of two young children has a will, life insurance, and even money set aside for emergencies. He thinks he's done everything right. Then the unexpected happens—a car accident takes his life at age 42. His wife, while grieving, discovers that his will needs to go through probate court, a process that could take months or even years. The life insurance company requires multiple forms and documentation before releasing funds, which can take weeks or even months to gather. Meanwhile, bills continue arriving, and she's struggling to understand what accounts exist and how to access them to pay the bills.

She’s now thinking about what would happen to her children if she were also to die. Her husband’s will names her parents as guardians for the children if something happens to her, too, but she's not sure that's still the right choice given how their relationship has changed over the years. The will was written when their oldest was just a baby, and life has evolved significantly since then.

This scenario illustrates why documents-based estate planning often fails. Documents sitting in a drawer don't provide expert, human-to-human guidance for decisions that need to be made immediately. Outdated choices don't reflect the changing nature of relationships or changes in your assets over time. Court can place a weighty burden, both emotionally and financially, on the people you love most. And bills could go unpaid, putting assets in jeopardy, if your loved ones don’t have immediate access to your money.

The truth is that fathers want to protect their families, but don't know how to create plans that will actually work for their loved ones. The goal isn't just to transfer wealth—it's to transfer it in a way that strengthens your family rather than creating new challenges for them to navigate after your death.

Beyond Documents: What Your Family Really Needs

Real protection for your family goes far beyond having a set of documents in place. Your loved ones need a comprehensive plan that considers both the legal aspects of transferring assets and the practical realities of daily life after you're gone. And, more importantly, they need a trusted advisor to turn to for guidance when they need it.

Life & Legacy Planning is so much more than creating documents. It’s estate planning done the right way so that it will work for the people you love most when they need it to. Once you create a Life & Legacy Plan with me, your loved ones will know where to find important documents, how to access accounts, and what steps to take first. They will have clear instructions about everything from paying bills to handling your business interests. They’ll understand your wishes, not just about money, but about the things that matter most to them - how you’d want your children raised and what values you hope they'll carry forward, what family traditions you want to pass on, and what stories you want them to know about family members long-since passed.

Your Life & Legacy Plan will also address the financial realities your loved ones will face.

How will your spouse manage the mortgage? What about your children's future education costs? How can you ensure your family maintains their lifestyle while also preparing for long-term financial security? The answers to these questions won’t come from a life insurance policy or a set of documents.

Finally, we have systems in place to review and update your plan on an ongoing basis as your life and assets change, so your plan will work over time, and so you have a trusted advisor at your side who has your back. We’ll form a relationship that will last throughout your lifetime, and I’ll be available to your family when you’re gone to guide them so they know exactly what to do.

Being a great father means more than being present for today's challenge. It means securing your family’s future and strengthening family bonds. It’s the most profound way to show your love - and the best gift you can ever give to the people you love most.

Secure Your Family’s Future Now

We help you create a Life & Legacy Plan that truly works when your family needs it most. Together, we'll ensure your children are protected, your spouse has clear guidance, and your values continue influencing future generations. Don't let procrastination risk your family's future when you can take steps now to secure their tomorrow.

Click here now to schedule a complimentary 15-minute consultation and get started!

Where Is the Best Place to Store Your Original Estate Planning Documents?

Wed, 28 May 2025 17:00:19 GMT

Estate planning attorneys are often asked where original estate planning documents—wills, trusts, powers of attorney, and healthcare directives—should be stored for safekeeping. While there is no right or wrong answer to this question, consider the following:

Should you store your original estate planning documents in your safe deposit box?

Some people believe that the best place to store their original estate planning documents is in their safe deposit box at a local bank. This may make sense if you have given your spouse or a trusted child, other family member, or a friend access to your box. However, giving someone permission to access your safe deposit box does not give them the same legal rights to it that you have. Because a safe deposit box is a rental arrangement (you are leasing the box from the bank), if you are the only one who signed the lease and you become incapacitated (unable to manage your affairs) or die, no one else will be able to open your box, not even the people to whom you have previously given access. Depending on your state law, the only way for someone else to gain access to your box if you become incapacitated or die may be to obtain a court order, which wastes time and money.

If you are not comfortable giving someone else immediate access to your box, some banks may allow you to add your revocable living trust as an additional lessee, which will give your successor trustee access to your box if you can no longer serve as trustee of your trust for any reason. Also, if you use a safe deposit box to store important items such as your estate planning documents, ensure that your trusted loved ones know which bank has the box—and the exact branch where it is located. They will also need to know where you keep the key.

One final caution about using a safe deposit box for your estate planning documents: Banks have limited hours. If your loved ones need to access your documents outside of banking hours, they will not be able to.

Should you store your original estate planning documents in your home safe?

Home safes are popular these days, but in order for yours to be a good place to store your original estate planning documents, it should be difficult to move (bolted to the floor!), fireproof, and waterproof. In addition, ensure that someone you trust has the combination to your safe or can easily gain access to the combination if you become incapacitated or die.

Should you ask your estate planning attorney to store your original estate planning documents?

Traditionally, many estate planning attorneys offered to hold their clients’ original estate planning documents for safekeeping (usually without charging a fee). Today, most do not want to take on the liability. In addition, as the years go by, it may become difficult for your loved ones to track down your attorney, who could have changed firms, become incapacitated, or died.

Should you ask your corporate trustee to store your original estate planning documents?

If you have named a bank or trust company as your executor/personal representative or successor trustee, this may be the best place to store your original estate planning documents if they are willing to do so. Banks and trust companies often have specific procedures in place to ensure that your original estate planning documents are stored in a safe and secure area. If you choose this option, ensure that one or more of your loved ones know where your original documents are located.

Regardless of where you decide to store your original estate planning documents, ensure that your family members, a trusted friend or advisor, or your estate planning attorney knows where to find them. If your original documents cannot be easily located, it may be legally presumed that you purposefully destroyed them, depending on your state law. Without your estate planning documents, your money and property will be divided among your family according to state law and distributed outright. It will not matter that you wanted something different if no one can find your documents. If you have questions about the best place to store your documents or would like to discuss creating or updating your documents, call us.

How to Safeguard Your Business from Your Business Partner’s Divorce

Tue, 27 May 2025 17:00:01 GMT

Most business partnerships begin with shared goals and optimism. But life happens, and personal matters—especially divorce—can create ripple effects that threaten your company’s financial stability, leadership continuity, and future. If you’re in business with a partner, their divorce isn’t just their personal issue; it could become your business’s problem, too.

What types of problems could be lurking around the corner? Some may include disruptions to your daily operations, ownership disputes, and even financial loss. But by taking proactive steps, you can shield your business from these risks and ensure that personal life changes don’t derail your company’s success.

The Hidden Business Risks of a Partner’s Divorce

A partner’s divorce can have serious consequences for your company, many of which business owners don’t anticipate until it’s too late. Here’s how:

Ownership Disputes & Forced Buyouts. In many states, business interests are considered marital property, which means a divorcing spouse may be entitled to part of your partner’s ownership stake. This could force the sale of company shares or require a buyout that could strain financial resources.

Financial Disruptions. Divorce proceedings often result in asset freezes, meaning business accounts or investments tied to the divorcing partner could be affected. If your partner relies on business income to cover legal fees or settlements, the company’s financial stability could suffer.

Loss of Confidentiality. Divorce records can become public, exposing sensitive financials, contracts, and intellectual property to scrutiny. In worst-case scenarios, competitors could gain access to strategic information that was never meant to be shared.

Operational Disruptions & Leadership Gaps. A partner dealing with a divorce may be distracted or unavailable, leaving key responsibilities unfulfilled. If the divorce turns contentious, it could even create conflicts within the business that affect decision-making and employee morale.

When a partner’s personal struggles spill into the business, the resulting instability can ripple through every level of the company. To minimize these risks and ensure your business remains secure, proactive legal strategies must be in place before a crisis arises.

Proactive Legal Strategies to Protect Your Business

The best way to prevent these risks is to have legal safeguards in place before a crisis occurs. Here’s how to create a strong foundation that protects your business from personal disruptions:

Implement a Buy-Sell Agreement. A buy-sell agreement functions like a business prenuptial contract, defining what happens to ownership shares in the event of a partner’s divorce. This agreement can:

● Require that ownership stays within the company and prevent outside parties (including an ex-spouse) from obtaining shares.

● Set clear valuation methods for a fair and structured buyout.

● Outline funding mechanisms (such as insurance policies or reserve funds) to finance a buyout without burdening the business.

Without this agreement, you could find yourself in a situation where your partner’s ex-spouse becomes an unintended co-owner of your company.

Strengthen Your Operating Agreement. Your operating agreement (for LLCs) or partnership agreement should include clauses that:

● Require partner approval before ownership interests can be sold or assigned.

● Establish decision-making protocols in case a partner becomes temporarily unavailable.

● Specify how disputes are handled to prevent legal battles from harming business operations.

Having these provisions in place makes it easier to navigate the business implications of a partner’s personal issues.

Keep Business & Personal Finances Separate. One of the biggest mistakes business owners make is blending personal and business finances. To avoid unnecessary legal entanglements:

● Maintain separate business bank accounts, tax filings, and financial statements.

● Avoid using business funds for personal expenses (or vice versa), as this can complicate legal proceedings.

● Require written documentation for any financial contributions made by a partner’s spouse to prevent future claims.

A clean financial separation makes it easier to prove that business assets belong to the company—not an individual’s marital estate.

By maintaining a clear boundary between personal and business finances, you create a strong foundation that protects your company from unintended legal and financial complications. But financial separation alone isn’t enough—proactive planning ensures that your business remains resilient in the face of personal disruptions.

Strengthen Your Business Before Problems Arise

The time to safeguard your business from personal disruptions is before they occur. Implementing the right agreements and planning strategies now can protect your company from unnecessary financial and operational risks in the future.

We help business owners like you create legal structures that safeguard their companies from unforeseen challenges like a partner’s divorce. That’s why we start with a LIFT Business Breakthrough™ Session, where we’ll assess your foundational legal, insurance, financial, and tax systems to identify vulnerabilities and develop a plan that keeps your business strong, no matter what personal challenges arise.

Don’t wait until a crisis forces you into reactive decision-making. Book a call today to protect your business and ensure its continued success.

Planning a Trip? Protect Your Children with a Kids Protection Plan

Wed, 21 May 2025 17:00:02 GMT

As Summer approaches, you're likely focused on planning the perfect getaway with your children - booking flights, reserving hotels, and mapping out exciting activities. But there's one crucial aspect of travel planning that often gets overlooked: ensuring your children's safety and care if something unexpected happens to you during your trip. While no one wants to think about emergencies during vacation, having proper protection in place lets you truly relax and enjoy making memories together.

Let's explore why having a Kids Protection Plan ^Ⓡ (“KPP”) in place before traveling is essential and what steps you can take to protect your children. Please note: most lawyers, even at the top estate planning firms, often make at least one of 6 common mistakes that the KPP is designed to address, when naming legal guardians for children in an estate plan.

The Hidden Risks of Traveling Without Protection

When you're caught up in vacation planning excitement, it's easy to focus only on the fun ahead. However, traveling presents unique risks and scenarios you need to consider. If you become incapacitated in a car accident or experience any other emergency while away from home, what would happen to your children in those critical first hours or days? Without proper legal documentation, your children could be temporarily taken into the care of strangers or social services until the proper authorities can determine who has the legal authority to care for them.

This becomes even more complicated when traveling internationally. Different countries have varying laws about child custody and care in emergency situations. Without clear legal documentation designating temporary guardians, your children could face significant trauma while authorities work through bureaucratic processes to determine their care. Even domestic travel can present challenges if you're incapacitated in another state, as local authorities may not immediately recognize out-of-state guardianship arrangements without proper documentation.

Essential Components of Protection While Traveling

A comprehensive KPP, which we create for you as part of the Life & Legacy Planning ^Ⓡ process, provides crucial legal documentation and instructions that activate immediately if something happens to you. This includes designation of temporary guardians who can care for your children until your long-term guardians can arrive, as well as detailed information about your children's medical needs, allergies, medications, and daily routines.

When you work with us to create a KPP, we include several key components that many parents overlook. First, you’ll receive ID cards that list emergency contacts that can care for your children in your absence. Second, we’ll create medical power of attorney forms that allow designated caregivers to authorize treatment for your kids if they need medical care if needed and authorized caregiver documentation so your kids are never taken into the care of strangers, while the authorities locate the long-term guardians for your children. Third, we’ll help you with communicating your wishes to your family members and friends and guide you on what others need to know. Finally, if there is anyone you would never want raising your children, we document that (confidentially), too.

Beyond these basics, your KPP also includes detailed information about your children's daily lives - their favorite foods, bedtime routines, fears or anxieties, and comfort items. This helps caregivers maintain normalcy during a stressful situation. You can also include passwords for electronic devices, social media accounts, and educational platforms your children might need to access.

Take Action Before You Travel

Before heading off on your adventure, schedule time with me and we will help you think through all the potential issues that could arise so that you can make the best decisions for you and your kids. We’ll start by carefully selecting both local and long-distance temporary guardians who can respond quickly in an emergency, considering factors like their proximity to your vacation destination, their ability to travel on short notice, and their familiarity with your children's needs.

Then, we’ll support you in creating an emergency response plan that outlines exactly what should happen in various scenarios. This includes who should be contacted first, in what order, and what immediate actions they should take.

Importantly, your plan should be easily accessible to designated guardians and include clear instructions for first responders or authorities who might need to reference it in an emergency. We will help you with this, by making sure you have access to the documents you need, and ensuring your chosen guardians know exactly how to access the information and documents they need. We will also be here to support them in case of an emergency so they know exactly what to do.

Making these arrangements isn't about dwelling on worst-case scenarios – it's about creating peace of mind so you can fully enjoy your vacation. With proper protection in place, you can focus on creating wonderful memories with your children instead of worrying about "what-if" scenarios. Think of it as travel insurance for your children's wellbeing - something you hope you'll never need but will be incredibly grateful to have if an emergency arises.

Your Next Steps for Peace of Mind

We support you to create a comprehensive Life & Legacy Plan that includes a Kids Protection Plan so your children are always protected, no matter where your travels take you. Take the first step today by booking a Life & Legacy Planning Session, where you’ll get educated on what will happen if you become incapacitated and when you die so you can make the very best decisions for your loved ones. From that place of empowerment, we’ll then work together to create your comprehensive Life & Legacy Plan that gives you peace of mind, knowing you’ve done all you can for the people you love most.

Book a call today to get started.

The Wrong Successor Trustee Can Derail Your Final Wishes

Wed, 14 May 2025 17:00:01 GMT

Many estate plans contain revocable living trusts that will become irrevocable (cannot be easily changed or terminated) when the trustmaker dies. Such trusts may benefit the surviving spouse during their lifetime and may continue for the benefit of several additional generations. Because these trusts can be designed to span multiple decades, it is crucial to choose the right succession of trustees.

Does Your Chosen Successor Trustee Have to Act Right Away?

When you create your revocable living trust, you will usually be the initial trustee. You will still be in charge of managing your accounts and property as you see fit while you are alive and well, but the trust becomes the legal owner of those accounts and property instead of you as an individual. However, you will likely also be the beneficiary of the trust while you are alive, so you will be able to benefit from the trust’s accounts and property throughout your lifetime. With this arrangement, your selected successor trustee will not step in to manage your property unless you resign or desire someone to act as co-trustee with you, you become incapacitated (unable to manage your affairs), or you pass away.

Should You Name Family Members as Your Successor Trustees?

Your trust is intended to continue for years, so choosing the right succession of trustees is critical to its longevity and ultimate success. The successor trustee you select could be the same person paying your bills if you are alive but incapacitated (your agent under your financial power of attorney), or they could be someone different.

You may assume that a family member, such as your spouse, a sibling, or an adult child, will be the best person to serve as the trustee of your trust when you are no longer able to serve. You may think family members will better understand the varying needs of your beneficiaries and keep the costs of administering the trust down.

However, in reality, family members may not be able to fulfill all of their fiduciary obligations, either because they do not have the time or because they do not feel comfortable managing the financial, legal, or distribution requirements of the trust. If family members are not the best option for your successor trustee, you may be able to choose a corporate or professional trustee. One advantage of selecting these types of trustees is that they can often meet all fiduciary obligations under one roof for a specified fee. In addition, a corporate or professional trustee will act in an unbiased manner when making distributions and investments, which will benefit current and future beneficiaries. This option can be beneficial if you have a blended family and would like to provide for your surviving spouse while having anything that is left over held for the benefit of your children from a prior relationship. In situations like this, you may not want your surviving spouse or child from a previous relationship to be in charge of managing the money because they could have conflicting priorities. Also, a corporate or professional trustee will not get sick or be too busy to oversee the trust’s day-to-day administration.

Should You Give Your Beneficiaries the Power to Remove and Replace Trustees?

Forcing your trust beneficiaries to be stuck with the wrong trustee without a reasonable means for removing and replacing them may cause an expensive visit to the courthouse.

It may be necessary to build provisions into your trust agreement that will allow your beneficiaries or an independent third party, such as a trusted advisor or a trust protector, to remove and replace the trustees without court intervention. The fact that the trustee can be removed and replaced without going to court is often an incentive for the trustee to work out any differences with the beneficiaries. On the other hand, to prevent beneficiaries from removing trustees without valid cause, you might prefer to involve the court if a trustee needs to be removed.

What Should You Do?

Selecting a successor trustee is one of the most important decisions you will make when creating a trust. Though family members or loved ones may be your initial choice, you should give serious consideration to designating a corporate or professional trustee, either alone or as a co-trustee with a family member or loved one.

If you have family members named as your successor trustees, please contact our office so that we can discuss all of your trustee options.

How to Bulletproof Your Business Against Economic Uncertainty

Tue, 13 May 2025 17:00:00 GMT

In today's market, business owners face unprecedented challenges from inflation, supply chain disruptions, and shifting consumer behaviors. The economic landscape can change rapidly, leaving unprepared businesses vulnerable to significant losses or even failure. However, with strategic planning and robust systems in place, you can fortify your business to withstand financial storms and emerge stronger on the other side. Let's explore proven strategies to protect your business against economic uncertainty and ensure its long-term sustainability.

Building a Financial Fortress

A solid financial structure is the foundation of any resilient business. Yet, many business owners make the mistake of focusing exclusively on growth before they have a solid financial system in place. To build this foundation properly, you must start with a clear picture of where you currently stand.

Start by conducting a thorough assessment of your current financial position. This includes understanding your cash flow patterns, identifying your most profitable products or services, and recognizing which expenses are truly essential. With this knowledge, you can develop a realistic budget that allows for both growth opportunities and necessary safety measures.

Cash reserves are your first line of defense against economic uncertainty. While conventional wisdom suggests having three to six months of operating expenses saved, today's unpredictable market might call for six to twelve months instead. These reserves provide a crucial buffer that allows you to navigate temporary downturns without resorting to desperate measures like excessive debt or premature staff cuts.

Diversifying your revenue streams is another critical strategy. Businesses that rely on a single product line, service, or client are inherently vulnerable. Consider expanding your offerings or entering adjacent markets to spread your risk. For example, a marketing agency might develop a subscription-based digital product alongside its consulting services.

Remember that financial resilience isn't just about having money in the bank—it's about creating systems that provide early warnings and allow for quick adjustments. When you work with me, I not only help you audit your current systems, but we’ll also conduct regular financial reviews so you can determine when it's time to pivot, pull back, take the next step towards growth, or plan for exit. With careful planning - and a trusted advisor at your side - you can make rational decisions even during stressful economic situations.

Creating Legal and Insurance Safeguards

While a strong financial system creates the foundation of your business, proper legal and insurance protections serve as the security system. Many business owners don't realize how vulnerable they are until a crisis hits, at which point it's often too late to implement the necessary protections.

Start by conducting a review of your current business structure. Is your personal wealth adequately separated from your business assets? A limited liability company (LLC) or corporation provides valuable protection, but only if you maintain proper corporate formalities and avoid commingling personal and business finances. During economic downturns, creditors become more aggressive, making these distinctions crucial for protecting your personal assets.

Next, assess your contracts and agreements. In uncertain times, clear terms and conditions become even more important. Review your client contracts, vendor agreements, lease terms, and employment documents. Look specifically for force majeure clauses, payment terms, and termination conditions. These elements become critical when economic pressures force difficult decisions.

Importantly, don’t handle legal issues on your own. Even if you’re an attorney well-versed in business law, it’s not a good use of your time, energy, and attention when you also have a business to run. Instead, let an expert evaluate your legal systems. Read on to learn more and book a 15-minute consultation call.

In addition to having a solid legal system, you must ensure your insurance system is comprehensive. Beyond basic liability policies, consider business interruption insurance, which can provide essential income if your operations are temporarily halted. Key person insurance protects against the loss of essential team members. Cyber liability coverage becomes increasingly important as more business activities move online. Review your policies annually to ensure they still match your business reality and provide adequate coverage.

Intellectual property protection can be an overlooked asset during economic uncertainty. If your business has developed unique processes, products, or content, ensure they're properly protected through patents, trademarks, or copyrights. These assets can maintain their value even when other aspects of your business face challenges, and they may provide licensing opportunities for alternative revenue streams.

Developing Operational Resilience

With your financial foundation secured and legal and insurance protections in place, it's time to focus on operational resilience, or the ability of your business systems to adapt to changing conditions. Operational resilience isn't about avoiding all disruptions; it's about creating systems that can recover quickly and even thrive amid change.

Supply chain vulnerabilities have become glaringly obvious in recent years. Rather than focusing exclusively on cost efficiency, reconsider your supplier relationships with resilience in mind. This might mean working with multiple suppliers, keeping more inventory on hand, or prioritizing local vendors even at a slightly higher cost. The goal is to create options so that a single disruption doesn't halt your entire operation.

Technology infrastructure is another critical component of operational resilience. Cloud-based systems provide flexibility and remote access, which became invaluable during recent global disruptions. Ensure your business can function even if your physical location becomes inaccessible. This includes secure remote work capabilities, digital payment systems, and cloud-based document storage.

Workforce planning deserves special attention during uncertain times. Rather than cycling through hiring sprees and layoffs, consider building a blend of core team members supplemented by contractors or part-time staff. Cross-training employees across different functions creates valuable redundancy. Document key processes so that operations can continue even if specific team members are unavailable.

And, of course, customer relationships are perhaps your most valuable asset during economic uncertainty. Maintain regular communication with your clients, understand their changing needs, and look for ways to provide additional value. Loyal customers who see you as a partner rather than just a vendor will stick with you through difficult times.

Planning for the Future While Protecting the Present

Creating a bulletproof business isn't just about defense—it's about positioning yourself to capitalize on opportunities that arise during economic shifts. The most successful businesses don't just survive downturns; they use them as launching pads for future growth.

Strategic investments during downturns can position you for outsized returns when conditions improve. While others retreat, consider whether selective investments in technology, talent, or market expansion might be possible. Companies that maintained marketing spending during previous recessions typically outperformed those that made deep cuts, gaining market share at a lower cost than during boom times.

Most importantly, maintain your perspective and focus on long-term value creation. Economic uncertainties are inevitable, but they're also temporary. The decisions you make during challenging periods will define your business for years to come. By maintaining your commitment to your core values and strategic vision even while making tactical adjustments, you build a business that can withstand any economic climate.

Finally, remember that bulletproofing your business against economic uncertainty isn't a one-time project—it's an ongoing process of assessment, planning, and adaptation. The businesses that thrive through uncertainty are those that have built resilience into their DNA, creating systems that can flex and evolve as conditions change.

The Advisor You Need In Uncertain Times

I understand the challenges of navigating economic uncertainty while trying to grow your business. That's why I offer a comprehensive LIFT Business Breakthrough ^™ Session where together, we'll analyze your current business foundations—including your financial and tax structures, legal protections, and insurance systems. Then, we'll identify vulnerabilities in your business and develop a tailored plan to strengthen your resilience while positioning you for future growth.

With my support, you can face economic uncertainty with confidence, knowing your business is built on systems designed to weather any storm.

Book a call here to get started today!

A Mother's Legacy: Estate Planning as Your Greatest Expression of Love

Wed, 07 May 2025 14:53:03 GMT

When we think about Mother's Day, we often picture breakfast in bed, handmade cards, and bouquets of fresh flowers. But what if there was a way for mom to express her love and care that extends far beyond their lifetime? This is where thoughtful estate planning enters the picture—not as a cold legal process, but as one of the most profound expressions of motherly love possible. How, you may ask? Let’s dive in and find out.

A Mother's Care Expressed Through Legal Planning

Think about how a mother typically plans her day—ensuring lunches are packed, coordinating activities, helping with homework, and keeping track of appointments. This intricate daily choreography stems from a deep well of love and the desire to see the family thrive. Estate planning follows that same pattern of thoughtful care, just on a longer timeline.

When mom creates an estate plan, she's essentially saying, "I want to continue caring for you, even when I'm no longer physically present." It's the ultimate expression of maternal care. In my experience, I've seen many mothers recognize that planning for their children's future isn't optional—it's as essential as putting food on the table today. The important questions arise naturally:

If I couldn’t be here for my kids, who would…

● Guide the children through important life decisions?

● Make healthcare choices for my children, if they couldn’t make them for themselves?

● Ensure my children are educated in alignment with my values?

● Maintain family bonds that the children may not be ready to maintain on their own?

These aren't just legal questions but extensions of a mother's ongoing commitment to her family.

With this understanding of why estate planning matters to mothers, let's explore the specific components that make up a comprehensive plan designed to protect and nurture loved ones.

Two Basic Components of a Mother's Estate Plan

A will is one basic component of an estate plan. For mothers, it's an opportunity to thoughtfully distribute meaningful possessions and explain the reasoning behind these choices. It might include family heirlooms passed down with intention, or collections given to children who share their mother's passions. Beyond material possessions, a will names guardians for minor children—perhaps the most crucial decision a mother can make in her estate plan. This isn't simply a legal designation but a thoughtful selection of who will continue raising children with aligned values.

A trust offers mom even more sophisticated ways to extend her care. Think of a trust as a recipe with detailed instructions—just as a mother might write down her famous recipe with specific directions. A trust provides similarly detailed guidance about how assets should be managed and distributed. For instance, a mother might establish a trust that provides funds for education with specific pro visions about how the money should be used. She might include age-based distributions, ensuring children receive increasing responsibility for their inheritance as they mature, just as she would gradually give them more independence in other aspects of life.

While these two components provide a good starting point, trusts deserve special attention for the unique protection and guidance they offer —much like a mother's watchful eye continues to guide and protect long after children leave the nest.

The Trust: A Mother's Vehicle for Long-term Care and Protection

When we think about trusts in the context of motherhood, their true value becomes even clearer. A trust isn't just a legal tool; it's a method for extending protection, guidance, and values well into the future.

Consider how a mother naturally protects her children from various threats—from checking water temperature before a toddler's bath to vetting a teenager's friends. A trust offers similar protection for a family's financial well-being. Unlike a will, which becomes public during probate, a trust keeps family matters private. It can shield assets from unnecessary taxation, protect against potential creditors, and ensure that resources aren't squandered through poor management.

For blended families, a trust becomes even more valuable. Mothers in second marriages with children from previous relationships can create trusts that provide peace of mind. These legal structures ensure that both current spouses and children from prior marriages are cared for according to their wishes. Without such planning, unintentional harm might come to loved ones because the law doesn't naturally accommodate the complexities of modern families the way a mother's heart does.

Trusts also provide extraordinary flexibility, allowing mothers to address unique family circumstances. For a child with special needs, a specially designed trust can provide financial support without jeopardizing essential government benefits. For a child who struggles with financial management, a trust can provide structured support rather than a lump sum inheritance that might be quickly depleted.

Perhaps most importantly, a properly structured trust doesn't just transfer wealth; it transfers wisdom. Through thoughtful provisions and guidance letters that accompany the trust document, mothers can share their perspectives on money management, their hopes for how assets will improve their children's lives, and their vision for the family's future. Trusts can also help pass along meaningful possessions and explain the reasoning behind these choices.

Understanding the protective power of trusts leads us naturally to consider the broader picture of how a truly effective estate plan goes beyond legal documents to capture and transmit a mother's deepest values and wisdom.

The Life & Legacy Planning Difference

While standard estate planning focuses primarily on asset distribution, mothers often want something deeper—a way to pass along values, stories, and wisdom alongside material possessions. This is where my approach as a Personal Family Lawyer® attorney becomes valuable.

The Life & Legacy Planning process that we guide clients through begins with reflection on values and goals, not just assets. Many mothers are surprised by our initial conversations, expecting to jump right into discussions about homes and investments. Instead, we start by talking about what matters most, what values they hope their children carry forward, and what life lessons they want to share. It feels less like legal planning and more like crafting motherly advice for the future.

We help create customized plans that align with unique family dynamics and parental priorities. For example, if you have a family heirloom with significant emotional value—perhaps a grandmother's recipe book or collection of letters—we can help establish a trust that specifies not just who receives these items but why they matter and how you hope they'll be treasured.

One of the most powerful aspects of working with us is the Life & Legacy Interview we record for your family. This captures your voice sharing the reasoning behind your decisions, expressing hopes for your children's futures, and telling family stories that might otherwise be lost. Many mothers find this interview to be the most meaningful part of the process, as it ensures that their children will still be able to hear their guidance and love even when they're no longer present to offer it in person.

As we reflect on the profound impact a thoughtfully created estate plan can have across generations, it becomes clear that this form of planning represents one of the most enduring gifts a mother can give.

The Mother's Day Gift That Truly Lasts

This Mother's Day, as we celebrate the incredible women who nurture and shape our lives, consider that one of the most powerful expressions of maternal love is creating a thoughtful estate plan. While flowers wilt and chocolates disappear, a comprehensive estate plan continues protecting and caring for family members for generations.

For mothers reading this, consider that estate planning is not about preparing for the end of your story but ensuring that your love and care continue to influence your family's story long after you're gone. It's about making sure that the values you've instilled, the lessons you've taught, and the love you've given continue to guide and protect your loved ones.

The process doesn't need to be overwhelming or impersonal. Working with me allows you to create an estate plan that truly reflects your unique maternal wisdom and care. I will help you craft not just legal documents but a meaningful legacy that continues your most important work—loving and protecting your family—for generations to come.

This Mother's Day, consider giving yourself and your loved ones the gift of an estate plan that continues your nurturing legacy far into the future. It may not come with a ribbon, but it's perhaps the most authentic expression of a mother's enduring love imaginable.

Take the first step towards peace of mind - click here to schedule a complimentary 15-minute consultation and learn how I can help you create your personalized Life & Legacy Plan.

Estate Planning That Expresses Who You Are - 5 Things to Talk About with Your Family

Wed, 26 Mar 2025 17:00:00 GMT

You intend to pass along your hard-earned money and property through your estate plan, but what about your wisdom? Ensuring that you successfully pass all of this along may call for a family meeting to discuss your finances, your legacy, and your core principles.

Most families lead busy lives, with many relatives seeing one another face-to-face only at a handful of major holidays throughout the year. The estate planning process is a perfect opportunity to bring everyone together outside of those scheduled occasions—even if a child or grandchild has to attend via video chat.

Working with your estate planning attorney in collaboration with any other advisors you have in your corner can make this legacy-enriching process seamless and even enjoyable. However, bringing your family into the conversation is better yet, as they will get to learn new things about you and share stories and memories of their own. Here are a few topics you may want to address during your family meeting:

1. Your Rich Life Story

You may think it has all been said before, but have you considered recording your personal life narrative? These recordings will be treasured by your loved ones while you are still here and long after you have passed away. To customize these recordings, have your family members ask you about your fondest memories and greatest challenges. You will be creating a sort of time capsule that contains the uniqueness of your personality and the experiences that shaped you into the person you are today. Perhaps most importantly, you will be able to share the valuable lessons you have learned. Your family will be better for it.

2. How You Would Like Your Wishes Honored

Estate planning involves weighty decisions regarding your long-term care and who will be responsible for managing your financial and medical affairs in the event you cannot manage them for yourself, along with how your money and property should be passed on after your death. Although these are not the sunniest topics, letting your family know why you made your particular choices is important. It will allow your loved ones to understand firsthand the instructions included in your estate plan when the need to use it arises.

3. Your Family Tree

Your loved ones may be curious about more than your life story. Take time to go over your family tree and answer questions the younger members of your family may have about your shared heritage. A who’s who on paper or in a digital format is an excellent gift to your loved ones that they will be able to reference and build upon in the years to come.

4. Significant Heirlooms

Almost every family has heirlooms, each of which tells a story. It is common for estate plans to contain physical objects that matter dearly to their owners, such as antique furniture, garments, jewelry, hobby collections, and memorabilia. Keeping the story of an object alive and memorializing it in writing or through video may be more important than transferring its monetary value to the next generation.

5. Your Core Values

Your estate plan can be customized to include specific language that incorporates your values while leaving room for your beneficiaries to grow and explore life on their own terms. Educational, incentive, and charitable trusts are a few tools you may use to express your values through your estate plan.

You are much more than the wealth you have accumulated in your life. Likewise, your estate plan is about more than your financial worth. After all, wisdom and life experiences passed down from generation to generation can amount to something far greater than numbers on paper.

We would love to help you build your estate plan to include a balanced representation of who you are and what you believe. We are here to coach you through the process of going over these topics with your family and weaving them into your estate planning tools.

Call us today to set up a time , and we will get started right away.

A Female Founder's Guide to Business Success

Tue, 25 Mar 2025 17:00:01 GMT

Women are launching businesses at an unprecedented rate, yet the road to success is rarely smooth. While female founders are proving their resilience and innovation daily, they still face unique challenges—from securing funding to balancing leadership with personal life demands. But let’s be clear: female entrepreneurs aren’t just keeping up; they’re redefining success on their own terms.

This Women’s History Month, let’s explore what it takes to build and scale a thriving business as a female founder.

Rethinking the Funding Game

Access to capital remains one of the biggest roadblocks for women in business. Despite running some of the fastest-growing companies, female founders receive a disproportionately small share of venture capital funding. The good news? Women are rewriting the rules of business financing.

Crowdfunding has emerged as a game-changer, with women consistently outperforming men in campaign success rates. This isn't just about raising money—it’s about proving demand, building a loyal customer base, and demonstrating market viability from day one.

Then there are female-focused angel networks and venture firms designed to support women-owned businesses. Investors are finally recognizing that businesses led by women often deliver higher returns. If traditional funding doors aren’t opening, women are finding new ones—or building their own.

Additionally, some organizations and government programs offer grants specifically for women entrepreneurs. These grants can provide capital without the need for repayment, giving female founders an additional leg up. Understanding these resources and taking advantage of them can make all the difference in fueling business growth.

Creating a Power Network

Business can feel like a lonely climb—especially when you walk into a boardroom or networking event and realize you're the only woman in the room. But isolation isn’t an option for success.

Savvy female founders prioritize connection. They join women-centric networking groups, mastermind circles, and industry-specific associations. These communities offer more than camaraderie; they lead to strategic partnerships, collaborations, and mentorships that fast-track success.

Speaking of mentorship, finding a mentor who has already tackled the hurdles ahead can be transformative. A strong mentor not only provides guidance but also opens doors to opportunities that may otherwise stay hidden. And when women lift each other up, the entire ecosystem benefits.

One powerful way to build a network is through collaboration over competition. Women entrepreneurs can seek out partnerships with fellow business owners, cross-promoting products or services and leveraging each other’s audiences. This creates a win-win situation where everyone benefits from increased exposure and sales.

Scaling Without Burnout

Scaling a business doesn’t mean working 24/7. The most successful female founders build businesses that grow sustainably—without sacrificing their well-being.

Automation and delegation are non-negotiables. From customer service chatbots to automated invoicing systems, technology frees up time for the high-value work only a founder can do. Equally important? Hiring and trusting a capable team. Learning to delegate isn’t just a growth strategy—it’s a survival skill.

Financial literacy also plays a key role. Women are often (wrongly) conditioned to be cautious with money, but successful female entrepreneurs embrace financial risk strategically. Working with a financial advisor, tracking key performance indicators, and building a cash reserve create a stable foundation for long-term growth.

It’s also important to recognize the value of self-care in entrepreneurship. Burnout is real, and it’s more common among women who often juggle multiple roles. Establishing boundaries, taking regular breaks, and making time for activities outside of work can actually enhance productivity and creativity in the long run.

Leading With Confidence

Many women start businesses because they’re passionate about their work. But to scale successfully, passion must be paired with leadership. That means setting a clear vision, building a strong company culture, and confidently making decisions—even the tough ones.

Women often struggle with imposter syndrome, second-guessing their own expertise. But here’s the truth: confidence grows with action. Every challenge overcome is proof of capability. The more female founders own their authority, the more they inspire others to do the same.

Leadership also involves fostering an inclusive and empowering workplace. Women-led businesses often excel in creating work environments that prioritize collaboration, flexibility, and employee well-being. By embracing these strengths, female founders can build companies where employees feel valued and motivated to contribute to long-term success.

Telling Your Story

A compelling brand story can set a female entrepreneur apart from the competition. Consumers increasingly want to support businesses with values and missions they align with, and female founders have unique perspectives that resonate with audiences.

Sharing your journey—why you started your business, the obstacles you’ve overcome, and your vision for the future—can create an emotional connection with customers. Authentic storytelling through social media, public speaking, and content marketing can turn a business into a movement, attracting loyal supporters and advocates.

The Support You Need to Grow

No matter where you are in your business journey - just starting off or already breaking barriers - you can achieve your goals faster and with more ease if you have a trusted advisor at your side. We am there for you every step of the way. When you work with me, we’ll start with a comprehensive LIFT Business Breakthrough™ Session—where we’ll analyze your foundational legal, insurance, finance and tax systems. From there, we’ll help you identify growth opportunities, and then together, we’ll create a customized plan for sustainable success. The barriers may be real, but they aren’t insurmountable. With the right strategy and support, you can grow a thriving business on your own terms.

Book a call here to take the next step today.

How to Give Real Property to a Loved One at Your Death Without Probate Court Involvement

Wed, 19 Mar 2025 17:30:00 GMT

A home is often one of the most important assets that people own. Therefore, most people want to stay in their home until they die and then have a loved one receive it. One common way to pass a home to loved ones is through a will. However, transferring property with a will requires probate, which is generally considered a lengthy, costly, and public court process that many actively seek to avoid.

There are several ways an estate plan can transfer property without a will or probate court involvement when the owner passes away. In addition to a lifetime transfer of the property (by sale or gift), certain types of deeds can be used that take effect only upon the property owner’s death and do not subject the property to probate. However, using these deeds for probate avoidance can potentially introduce new issues. A trust-based estate plan may be a better option if the goal is simply to avoid probate.

Home Ownership and Inheritance

We are living through one of the largest intergenerational wealth transfers in history. Roughly one in six Americans expect to receive an inheritance in the next 10 years, and among those, nearly half anticipate inheriting property such as a house.

According to Pew Research, in 2021, nearly two-thirds of US households lived in a home they owned as their primary residence. Homeowners have, on average, around $174,000 in equity in their homes—more than double the value of their next most valuable asset, retirement accounts, which have an average value of $76,000.

Real Property, Legal Rights, and Trusts

A key concept in estate planning is honoring people’s wishes by helping them control, as much as possible, what they own and what happens to it after their death.

An estate plan enables a homeowner to decide what happens to their property after they pass away, ensuring that it goes to the person (or people) they choose in a manner of their choosing, whether that means keeping it in the family and setting limits on its use or transferring the property to a beneficiary without restrictions.

Options for Transferring Real Property at Your Death

Estate planning is highly flexible, offering multiple ways to satisfy someone’s wishes for what happens to their money and property when they die, each with a mix of benefits and downsides.

To avoid probate, there are many ways to transfer real property, both during the owner’s lifetime and at their death. Some solutions can cost less than a trust, but as the examples below show, they can also have significant downsides and risks.

Deed-Based Transfers

A deed is a legal document that transfers real estate ownership from the current owner (the grantor) to another individual or entity (the grantee). Several types of deeds can be used to gift real property at the grantor’s death. They include the following:

● Life estate deed. A life estate, created through a life estate deed, gives a person the right to live in and use a property for their lifetime. The life estate’s owner is called the life tenant, and the person who receives the property after the life tenant’s death is called the remainderman. Some people may consider using a life estate deed to retain the ability to live in their own home while they are alive, allowing them to name the remainderman who will receive the property at the life tenant’s death. While a life estate avoids probate, the creation of the life estate can be undone only if the remainderman agrees. Because the goals, legal rights, and responsibilities of the life tenant and the remainderman may differ, disagreements may arise between them over, among other things, property use, improvements, or maintenance. In addition, a life tenant cannot liquidate or sell the property without the remainderman’s agreement.

● Enhanced life estate deed. Also known as a ladybird deed, an enhanced life estate deed allows the grantor (who becomes the life tenant) to retain the ability to live in their home and the right to use, mortgage, sell, gift, and otherwise convey the property during their lifetime without the signature or blessing of the remainderman. When the life tenant dies, if they still own the property at their death, the remainderman will receive it. This provides flexibility for a property owner wanting to name who will receive the property at their death while retaining control over it throughout their lifetime. However, this type of deed is not available in all states.

● Beneficiary deed. Also known as a transfer-on-death (TOD) deed, a beneficiary deed automatically transfers the deeded property to a named beneficiary at the time of the property owner’s death. The transfer avoids probate, and the deed can be revoked anytime during the owner’s lifetime. However, not all states allow beneficiary deeds.

Again, not all of these types of deeds are legally valid in all states. An experienced estate planning attorney can explain what tools are available to you and discuss the benefits and potential risks.

Downsides to Using a Deed to Transfer Property at Your Death

There is no creditor protection for your beneficiaries. When a deed transfers property to a beneficiary, that property goes to the beneficiary outright. There are no strings attached and no protections. For instance, if the beneficiary were to receive the property during a bankruptcy proceeding, it might be used to satisfy the creditors because it is now considered the beneficiary’s property.

There is no protection if the beneficiary is disabled or unable to manage their affairs. As previously mentioned, when the beneficiary receives the property, it is theirs. However, if they receive the property when they cannot manage their affairs, its management falls to another person. It may be handled by a court-appointed guardian or conservator or an agent under a financial power of attorney, who can do whatever they want with it (as long as it is in the incapacitated beneficiary’s best interest). Also, if the beneficiary receives any means-based assistance, the sudden inheritance could jeopardize those benefits by placing the beneficiary above any applicable asset threshold.

There are no protections for you if you cannot manage your affairs. These deeds are a sufficient way to transfer property after you are deceased. However, if you cannot manage your affairs during your lifetime, the named beneficiary or remainderman has no access to or interest in the property to help you manage it until you pass away. You will have to rely on an agent under a financial power of attorney (if you have one) or a court-appointed guardian or conservator to manage the property on your behalf.

Your beneficiary is free to do what they want. As already discussed, if you use a deed to transfer ownership at your death, your beneficiary will receive the property outright. You cannot add any conditions or requirements regarding the property or its use. The beneficiary can sell, mortgage, or use it as a rental property (subject to applicable zoning restrictions). It is their property to do with as they please. Their intended use of the property may not align with your wishes.

Using a Trust to Transfer Real Property

While you may view your home as a place to live and not as an investment or financial vehicle, that perception can change when you pass away and the home passes to a loved one, particularly if that loved one already has a primary residence.

A beneficiary who inherits a home may decide to sell the property; turn it into a rental; renovate the property to use it as a farm or business; sell off individual structures on the property (such as a barn or historic structure); cash in on its natural resources (e.g., allow timber to be harvested); or even tear down the original home and build a new one in its place. When more than one beneficiary inherits the property, disagreements about how to best use it could arise.

You might not care what happens to your home when you are gone. However, if you want to set restrictions on its use for any reason—whether those reasons are sentimental or have the practical intent of reducing conflicts among multiple beneficiaries—you must use the right estate planning tool.

Consider placing your home in a living trust that legally owns the property, with you serving as a trustee and being the current beneficiary during your lifetime. This allows you to stay in your home—and maintain control over it—while you are alive. When you pass away, the home does not go through probate because you do not technically own it. Instead, a successor trustee assumes legal responsibility for the property and manages it or gives it away in accordance with your trust’s terms.

The trust terms can be highly detailed, and limitations can be set on how the property can be used. You can stipulate, for example, that the property must be shared as a family vacation home and cannot be used for business purposes. You can require that the house be held in the trust until your minor children reach a certain age so they can remain in the home after your passing. While the trust owns the property, your terms will govern its use. As soon as the property is distributed from the trust, you lose all control over it.

The Best Way to Transfer Property for Every Situation

Estate planning is a highly personal process that must consider many factors, each of which can have multiple solutions that present a unique set of benefits and drawbacks.

Avoiding probate is usually just one estate planning consideration among many, and it may not be desirable in every situation.

Determining the best way to pass down real property at death depends on your preferences and family circumstances. An estate planning attorney can explain each available option and help you decide what is best for your situation.

Who Needs an Estate Plan?

Wed, 12 Mar 2025 17:00:00 GMT

If you are reading this, you need an estate plan. Why? The short answer is that everyone age 18 and older needs an estate plan. It does not matter whether you are old or young, have built up considerable wealth or are just entering adulthood—you need a written plan to control what happens to the things you own and to protect yourself and those you love.

The Key Takeaways

● Every adult, regardless of their age or the amount of wealth they have accumulated, needs both a lifetime incapacity plan (a plan for if they are alive but are unable to manage their own affairs) and an after-death estate plan.

● Planning for incapacity keeps you in control of who will make decisions for you if you are unable to and allows your trusted loved ones to care for you without court interference—and without the potential loss of control over important decisions or expenditures for your benefit and the added expense of a guardianship or conservatorship proceeding.

● Every adult needs up-to-date healthcare directives to communicate their end-of-life wishes if they are unable to communicate them themselves.

● You need to leave written instructions to ensure that you maintain control over who is in charge of when and how your assets will be distributed.

● Every adult needs the counseling and assistance of an experienced estate planning attorney to ensure that they are implementing a legally enforceable and comprehensive plan for the future.

What Is an Estate Plan?

Planning for Death

Your estate consists of everything you own—including your car, home, bank accounts, investments, life insurance, furniture, and personal belongings. No matter the size of your estate, you cannot take it with you when you die, and you probably want certain people to receive certain things you own.

To ensure that your wishes are carried out, you need to provide written instructions stating who will receive your assets and belongings, what you want them to receive, and when they are to receive it—that is the essence of an estate plan. If you have young children, you also need to name someone to raise them in your place and manage their inheritance in the event that both parents are unable to do so.

Lifetime Incapacity Planning

A properly prepared estate plan will also contain instructions regarding your care (and the management of your assets) if you become unable to manage your affairs (sometimes referred to as being incapacitated) even for a short time due to illness or injury. Without the proper tools in place, your family will have to ask the court to appoint someone to manage your finances and medical care and for permission to use your assets to care for you. When relying on the court to make these determinations, the process is outside of your and your loved ones’ control, takes time, and can incur significant legal fees and costs, making an already stressful situation even more difficult for your loved ones. Depending on your family dynamic, this process can also be contentious if your family disagrees about who should manage your affairs or what the proper course of action for your care should be. Not only does this infighting threaten family harmony, it may also become a matter of public record, as most documents related to these types of proceedings will be available to anyone who requests them and pays a fee.

It might surprise you, but having a plan in place can often have a more significant impact on and benefit for families with modest means because they may be unable to afford the court costs and legal fees associated with the court process known as probate. Here is an example:

Sam and Meg had two young children together. Sam died in a car accident. Because he had no estate plan, the laws in his state divided his estate into thirds: one-third to Meg and one-third to each of their children. His estate included his one-half interest in their home, an inheritance he received from his grandfather (he was using this money to help support the family while looking for a higher-paying job), and a life insurance policy (but he failed to complete the beneficiary designation). Meg, a stay-at-home mom, was forced to go back to work after Sam’s death. The court set up conservatorships (in some states called a guardianship or guardianship of the estate) for each child to manage their inheritances, which required ongoing court costs, including accounting, guardianship, and attorney’s fees. When the children turned 18, they each received what was left of their inheritances in one lump sum, and there was not enough to cover their first year of college tuition.

What You Need to Know

Do not try to create an estate plan without the assistance of a professional. An experienced estate planning attorney who is familiar with the laws in your state can guide you in making difficult decisions such as who will raise your children and manage your affairs if you cannot. An experienced attorney will also know how to craft the appropriate estate planning tools so that your wishes are carried out.

We Are Here to Help

If you are ready to take control of your life and the legacy you leave behind for your loved ones, call or email our office now to schedule an estate planning consultation appointment. We make tough topics manageable to discuss. We can also craft a plan that addresses what you value most and protects you and those you care about.

The Truth About Business Insurance: Coverage Gaps Can Cost You Everything

Tue, 11 Mar 2025 17:00:00 GMT

The Truth About Business Insurance: Coverage Gaps Can Cost You Everything

Running a business involves taking calculated risks, but there's one risk you should never take: having inadequate insurance coverage. While most business owners understand the importance of basic liability insurance, many are unaware of critical coverage gaps that could leave them exposed to devastating financial losses. In this article, I'll explore common insurance blind spots that might be putting your business at risk and show you how to protect your company's future.

The Hidden Vulnerabilities in Standard Coverage

Your standard business insurance policy might give you a false sense of security. Many business owners assume their general liability policy covers everything, but this common misconception can result in disastrous consequences. Standard policies often have significant limitations and exclusions that could leave you vulnerable when you need protection most.

For instance, many business owners learn that their property insurance excludes specific natural disasters common in their area or that their liability coverage doesn't extend to certain types of legal claims. These gaps aren't just theoretical - they represent real risks that could potentially bankrupt your business.

Worse yet, many businesses discover coverage gaps only after they’ve been sued. One example is professional liability coverage. Professional liability insurance policies often don’t cover intellectual property disputes, leaving businesses exposed if they face copyright or trademark claims. Without specific intellectual property coverage, a single lawsuit could result in devastating legal fees and settlement costs.

Modern Risks Require Modern Protection

Technology changes rapidly, so today's business landscape presents risks that didn't exist even a decade ago. Digital transformation has introduced new vulnerabilities that traditional insurance policies simply weren't designed to address. Remote work, cloud computing, and increasing reliance on technology have created exposure points that require specific coverage considerations.

Cyber liability insurance has become essential, yet many businesses either lack it entirely or have insufficient coverage. A data breach can cost small businesses thousands or even hundreds of thousands of dollars, yet standard business policies typically provide little to no coverage for cyber incidents.

Similarly, the rise of social media has created new reputation management risks that many policies don't address adequately. Reputation damage can directly impact a business's bottom line through lost customers, reduced sales, and damaged business relationships. Protecting your brand reputation isn't just about public image - it's about safeguarding your company's financial health.

Environmental liability represents another modern concern that standard policies often exclude. Even businesses that don't consider themselves environmentally risky might face claims related to pollution, contamination, or environmental damage. For example, common issues like leaking storage tanks, mold, or chemical spills are typically excluded from general liability policies due to standard pollution exclusions. Without specific environmental liability coverage, businesses must pay cleanup, and remediation costs out of pocket.

Essential Coverage Often Overlooked

Beyond the gaps in standard policies mentioned above, several critical types of coverage are frequently overlooked by business owners altogether. They are:

Employment practices liability insurance (EPLI). In an era of increasing employment-related lawsuits, many businesses remain unprotected against claims of discrimination, harassment, or wrongful termination.

Business interruption insurance. The COVID-19 pandemic highlighted this gap dramatically, as countless businesses discovered their policies didn't cover interruptions caused by infectious diseases. While some lessons were learned, many businesses still lack adequate coverage for other types of interruptions, from natural disasters to supply chain disruptions.

Key person insurance. Small and medium-sized businesses frequently depend heavily on one or two key individuals, yet many lack insurance to protect against the loss of these essential team members. The death or disability of a key person could devastate a business, but proper coverage can provide the financial cushion needed to weather such a crisis and transition successfully.

Protecting Your Business's Future

Understanding these coverage gaps is only the first step - taking action to close them is crucial. We start by conducting a comprehensive risk assessment of your business foundations. Together, we’ll also review your insurance coverage now, and on an ongoing basis to ensure your policies provide adequate protection as your business changes over the years. Most importantly, we’ll review the foundational systems that go hand in hand with insurance, including your legal, tax, and financial structures. Insurance alone is not enough to protect your business effectively. You need all four systems - legal, insurance, financial and tax (“LIFT”) to work in harmony.

To take the next step, book a LIFT Business Breakthrough Session so we can identify any gaps in your protection and develop a comprehensive plan to ensure your business is properly shielded from potential threats. With our support, you can focus on growing your business with confidence, knowing you're properly protected.

Book a call here to learn more and get started today.

Beware of Trust Scams—and How to Spot Them

Wed, 05 Mar 2025 21:33:03 GMT

Trusts are widely used in estate planning to protect and transfer a person’s assets (money, accounts, property, etc.), sometimes in a tax-advantaged manner. Some trusts are highly complex, with multiple parties, intricate structures, specialized legal terms, and references to arcane tax law that can be difficult for the average person to understand.

Scammers have long taken advantage of this complexity to dupe taxpayers into too-good-to- be-true trust solutions. The Internal Revenue Service (IRS) recently drew attention to a trust tax avoidance scheme involving what are known as § 643(b) trusts. It also warns about another type of trust scam that relies on the so-called pure trust or constitutional trust to make false claims about avoiding taxes and protecting assets.

While legitimate trusts can be powerful tools for estate planning, asset protection, and tax efficiency, fraudulent trusts misuse these principles to deceive individuals. The IRS pays close attention to potential trust tax evasion schemes, and taxpayers who fall victim to a trust scam could potentially face civil and even criminal penalties, making it crucial to create a trust only with a qualified, reputable estate planning attorney.

Trust Scams on the Rise

According to the IRS, in the past few years there has been a “proliferation of abusive trust tax evasion schemes” targeting wealthy individuals, small-business owners, and professionals such as doctors and lawyers. These schemes falsely promise benefits such as

● the reduction or elimination of taxes,

● reduction or elimination of income subject to tax,

● depreciation deductions, and

● a step-up in basis for trust assets.

These trust scams commonly use a layered structure to give the appearance that a taxpayer does not control the trust when in fact they do. Transparency of control over trust assets is important in determining, among other things, which party is responsible for paying any corresponding tax liability.

The IRS also notes that abusive trust schemes frequently entail multiple trusts that distribute assets to one another. Trust funds may flow from one trust to another using rental agreements, fees for services, purchase and sales agreements, and distributions, with the goal of using inflated or nonexistent deductions to “reduce taxable income to nominal amounts,” says the IRS.

Trust scam promoters typically charge $5,000 to $70,000 for a package that comes with trust documents, trustees, and tax return services, adding to the appearance of legitimacy. However, the IRS cautions that these phony trust arrangements will not produce the promised tax benefits.

Types of Trust Scams

The Pure Trust Scam

One type of trust scheme highlighted by the IRS involves the transfer of a business to a trust it calls a pure trust or constitutional trust. The pure trust scam makes it look as though the taxpayer has given up control of their business even though they still run its day-to-day activities and control the income stream.

Promoters of such scams often claim that placing assets in a pure trust can exempt them from taxes. They use misleading language and pseudo legal jargon to make it seem like these trusts have special legal status and may claim that they are based on common law or constitutional principles exempting them from state or federal jurisdiction. However, the IRS clarifies that there is no legal basis for these claims.

Actor Wesley Snipes is a notable example of someone misled by a variation of the pure trust scam. Snipes relied on an argument that courts have repeatedly rejected—the “861 argument,” which misinterprets § 861 of the Internal Revenue Code (I.R.C.) to falsely claim that domestic income is not taxable.

The IRS alleged that Snipes did not file tax returns for several years and committed fraud. He was convicted of tax evasion charges and served time in federal prison, in addition to owing back taxes, penalties, and interest.

643(b) Trust Scams

Versions of the pure trust scam date back decades. Despite increased awareness of these scams and the IRS pursuing them in their various iterations, they continue to resurface, often rebranded under different names such as complex trusts and patriot trusts or targeting new demographics.

The IRS details one such rebranding of the pure trust scam in a 2023 memorandum challenging trusts that similarly—and just as falsely—claim to avoid income and capital gains taxes.

Promoters assert that these trust arrangements receive special tax benefits under I.R.C. § 643(b), hence the name 643(b) trusts. The IRS refers to them in the memorandum as a nongrantor, irrevocable, complex, discretionary, spendthrift trust—a complicated name for a complicated scam that, like the pure trust scam, relies on a misinterpretation of the tax code that takes it out of context.

Although 643(b) trust scams take various forms, they are essentially a new twist on the old idea that, through manipulation of the trust structure, the taxpayer can use a backdoor method to maintain some control over the trust and avoid taxes.

The basic (but false) premise of the 643(b) scam is that income allocated to the corpus (principal) of the trust is not subject to taxation.

Promoters create a trust structure, often referred to with terms like Nongrantor, irrevocable, and complex. The taxpayer transfers assets such as a business, real estate, or other income-producing assets into the trust in exchange for a promissory note. The trust then leases the assets back to the taxpayer, an arrangement that makes it seem like the income generated by the assets is not actually being distributed to the taxpayer and is thus nontaxable.

The IRS explicitly rejects the validity of this arrangement in its memorandum, emphasizing that simply allocating income to the trust’s corpus does not exclude it from taxation.

How to Spot a Trust Scam

The IRS has made it clear that it will challenge § 643(b) trusts in all forms, so taxpayers should look out for this and other trust schemes to avoid getting caught in the government’s compliance crosshairs.

As noted in the IRS memo, illegitimate trusts that misinterpret § 643 often have the guise of legitimacy and may even have legitimate-appearing promoters such as lawyers, accountants, and enrolled agents. Promotional materials may consist of a series of presentations, informational websites, documents, and legal opinions. In the case of a nongrantor, irrevocable, complex, discretionary, spendthrift trust, the trust may be described as “§ 643 compliant” or “in compliance with the I.R.C.”

More generally, taxpayers should be on the lookout for these common trust scam red flags:

● Exaggerated claims. Taxes are as unavoidable as death for a reason. No legal trust strategy can entirely eliminate tax obligations. Claims about deferring taxes instead of avoiding them may sound more reasonable but could be part of the scam.

● “Secret” loopholes. While tax law is complex, it is not a secret. Legitimate strategies are based on established legal principles. Scammers also like to tell potential victims that wealthy individuals use certain trust types to avoid paying taxes.

● Terms that give an air of legitimacy. Trust schemes may reference and misuse terms such as common law or sovereign to promote trusts as beyond the legal jurisdiction of the federal government. Taxpayers in the 643(b) scam are told that they will serve as “Compliance Overseer.”

● Pressure tactics. In a classic scammer technique, trust scheme promoters may push individuals to “act quickly” to secure the “exclusive opportunity” and create a sense of urgency that pressures them into making a rash decision without fully understanding the consequences.

● Complicated and confusing structures. Trust, tax, and estate planning law are inherently complicated, but complexity can also serve to hide a scam. Multiple trusts with confusing names and structures can be a way to obfuscate the scheme’s true nature.

● Lack of transparency. Promoters may be reluctant to provide clear explanations or documentation about how the trust works, relying on anecdotal evidence or testimonials rather than facts and legal analysis.

● Similarity to known scams. Many trust scams are the taxation equivalent of “old wine in new bottles.” Learning how to spot a scheme and cross-checking a trust strategy against known scams, including those in the IRS Dirty Dozen and other public warnings, can reduce vulnerability.

Above all, avoid promotions that sound too good to be true, verify the promoter’s credentials, and always seek a second opinion from an independent estate planning attorney before creating any trust. If you are considering setting up a trust, consult with a qualified estate planning attorney .

How to Pick a Trustee, Executor, and Agent under a Power of Attorney

Wed, 26 Feb 2025 18:00:00 GMT

While the term fiduciary is a legal term with a rich history, it generally means someone who is legally obligated to act in another person’s best interest. Trustees, executors, and agents are examples of fiduciaries. When you select people to fill these roles in your estate plan, you are picking one or more people to make decisions in the best interests of you and your beneficiaries and in accordance with the instructions you leave. You should also choose multiple backups for each of these roles in case your first choice is unable or unwilling to act when the time comes.

Understanding the basics of what each role entails and what to consider when making your choices can help ensure that your estate plan is effective.

Trustee

A revocable living trust is often the center of a well-designed estate plan because it is the best strategy for achieving most people’s goals. You (as the trustmaker) will usually serve as the initial trustee and continue to manage the trust’s accounts and property in the same manner that you did before the trust was created. You will appoint a successor (backup) trustee in the trust agreement to be responsible for ensuring that your wealth is managed in accordance with your wishes after your death or during your incapacity (when you can no longer manage your affairs). It is best to have a trusted person or financial institution carry out this vitally important role.

Your successor trustee will control only the accounts and property owned by the trust. If you own accounts and property in your sole name—that is, not as the trustee of your trust—your successor trustee will not be able to manage those items upon your death or incapacity. You will have to rely on your financial power of attorney to give someone the authority to manage those accounts and property while you are incapacitated.

When you pass away, accounts and property in your sole name without a beneficiary designation may have to go through the probate process. Probate requires your executor to step in and manage those items and ultimately distribute them to the people who have priority under state law (who may not be the people you would have chosen). This is why it is of the utmost importance to appoint the right person to be your successor trustee and to fund your living trust fully.

Powers of Attorney

Powers of attorney are the documents in your estate plan that appoint individuals to make decisions on your behalf if you are alive but unable to do so yourself. There are a few different types of powers of attorney, each with their own specific areas of responsibility. We can help you decide which types of powers of attorney you will need based on your current situation and future goals. Here are two common types to include in your estate plan:

● Financial Powers of Attorney

Financial powers of attorney grant the fiduciary you select the ability to take financial actions on your behalf, such as purchasing life insurance or withdrawing money from your bank accounts to cover your expenses. A fiduciary who acts under the authority given in a financial power of attorney is generally called an agent . Your agent is only able to manage the accounts and property that are not owned by your trust. If an account or property is owned by the trust, it is the responsibility of the trustee to manage that item, as discussed above. You can name an individual as your agent or, in some circumstances, you can name an institution, like a trust company. While in most states your agent is permitted to charge a fee for acting as your agent under a financial power of attorney, keep in mind that trust companies generally charge higher fees and will likely not waive fees like your loved ones might.

● Healthcare Powers of Attorney and Related Documents

A healthcare power of attorney allows you to name a trusted person to make or communicate your medical decisions on your behalf when you cannot do so yourself. These decisions may range from deciding what surgeon to use to whether to remove you from life support. Other documents can be used in conjunction with the healthcare power of attorney to cover specific actions that can be taken regarding your medical needs, such as making decisions about the types of care you wish to receive or who can access your medical information.

Executor

Your executor (called a personal representative in some states) is the person who will see your accounts and property through probate, if necessary, and carry out your wishes based on your last will and testament if you have one. Depending on your preferences, your executor may be the same person or institution as your successor trustee.

Some individuals choose to name a professional as their executor. The professional is usually someone who does not stand to gain anything from the will and can be a good choice if you own a great deal of different property and accounts to be divided among many beneficiaries. In other words, the more complex your estate and distribution scheme, the more it may make sense to have a professional in charge. A professional may also make sense if you do not have someone you personally know who can serve as the executor. Family or friends may serve, but it is important to consider the amount of work involved before placing this burden on someone who has little time or experience administering the estate of someone after they pass away.

Being an executor can be hard work and may have court-dictated deadlines; it is crucial to pick someone you know will be up to the job. They will probably need to hire an accountant to help sort out your taxes and a lawyer to assist in the process. If there is a dispute, then attorneys, appraisers, mediators, or other professionals will undoubtedly need to be involved. Choosing a spouse or another loved one to serve as your executor may be convenient because they may already be familiar with what you own and have an easier time ensuring that your wishes are carried out. However, because of the time involved and the nature of some accounts and property, they may not be up to the task at the time.

Get in Touch with Us Today

Let us help you make the process of picking your trustee, agents under powers of attorney, and executor as smooth and headache-free as possible. Once you have these choices in place, you will be able to rest easy knowing that your estate plan is in good hands no matter what life brings.

Schedule a call today.

Handling a Loved One’s Debts After They Die

Wed, 19 Feb 2025 18:00:00 GMT

Americans are, quite literally, getting buried in debt, with nearly half expecting to pass away with outstanding debts. ^[1]

As a general rule, a person’s debts do not go away when they die. Some types of debt, such as federal student loans, are typically forgiven upon the debtor’s death, but private loans and cosigned accounts may still be owed after the debtor has passed away. State laws also play a factor in the post death debt settlement process.

While nearly half of Americans think they will pass on their debts when they die, you can take proactive steps now to protect your loved ones from inheriting or becoming responsible for your debts. If you are an estate’s executor/personal representative or have been contacted by a debt collector about a deceased family member’s debt, you should understand your rights and obligations.

One Nation, Under Debt

Debt is as old as civilization itself. Lending at interest can be traced back to ancient Mesopotamia and the use of promissory notes to facilitate trade. The United States has carried debt since its inception, borrowing money from domestic investors and the French government to fund the Revolutionary War. ^[2]

Total consumer debt eclipsed $17 trillion in 2023, up from $15 trillion in 2021, according to credit reporting agency Experian. ^[3] The largest and most common debts include

● mortgages ($11.5 trillion in 2023),

● auto loans ($1.51 trillion),

● student loans ($1.47 trillion),

● credit cards ($1.07 trillion), and

● personal loans ($571 billion). ^[4]

The total average individual debt balance in 2023 was $104,215, up from $101,915 in 2022 and $96,371 in 2021. ^[5]

According to Debt.org, 73 percent of Americans die owing money. ^[6] The average amount of debt they die with is nearly $62,000. ^[7]

What Happens to Your Debt when You Die

You are probably familiar with the expression “buried in debt.” It might hit close to home if you are like most Americans struggling to pay off existing loan balances. However, do you know what happens to your debt when you die?

The answer depends on factors that include the type of debt and the state where you live. In most cases and most states, your loved ones are not stuck with your unpaid bills because creditors are paid only from the assets (e.g., a home, car, bank accounts, investment accounts) that are (i) part of your probate estate and go through a probate court or (ii) in your revocable living trust.

If you do not leave behind enough assets in your probate estate and living trust to fully cover the debts owed, creditors may have to settle for what is available. There are some exceptions to the idea that surviving family members and other heirs are not on the hook for the debt, including

● a person who cosigns on a loan;

● the spouse of a deceased person who lives in a state with community property laws (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin); and

● the spouse of a deceased person who lives in a state that requires a surviving spouse to pay certain healthcare expenses and other kinds of debt.

The rules governing when a surviving spouse is responsible for paying unpaid medical bills are complex and vary by state. It is important to work with an experienced estate or trust administration attorney to ensure that your affairs are wound up correctly.

Surviving spouses and adult children are frequently contacted by debt collectors attempting to collect on bills for the medical care of their deceased loved one, according to the Consumer Financial Protection Bureau. However, unless the survivor also agrees to the medical debt or is responsible under state law, they are generally not liable for the debt.

Not All Debts Go Away at Death

Debts not inherited by a specific individual under the exceptions described above do not just disappear, except for debts that are dischargeable by death.

For example, federal student loans, including Direct Subsidized Loans, Direct Unsubsidized Loans, Direct Consolidation Loans, Federal Family Education Loans, and Federal Perkins Loans, are usually discharged when the borrower dies, as long as the loan servicer receives proof of death. ^[8]

Private student loans are a different story. Some lenders of private (i.e., nonfederal) student loans offer a death discharge, although it is not the norm. They may come after the loan’s cosigner (if there is one) or the estate for repayment of the outstanding balance on the loan.

Secured versus Unsecured Debt

Determining how and when to pay a debt after the debtor has passed away and who or what may owe the debt can depend on whether the debt is secured or unsecured.

● Secured debt is backed by collateral (a tangible asset the lender can repossess or sell if the borrower does not pay back the debt). Common examples of secured debt are mortgages (secured by the real property) and car loans (secured by the vehicle). Secured debts are typically paid off before unsecured debts when a probate estate is settled during the probate process. If estate assets are insufficient to cover the secured debt, the lender can seize the collateral to recoup their losses.

In rare cases and under select jurisdictions, legal protections may be available for surviving spouses who wish to remain in a primary residence subject to a creditor’s claim. These protections may delay or prevent foreclosure if the spouse cannot pay off the mortgage in full.

● Unsecured debt is not backed by collateral (that is, there is no specific asset backing the debt). Unsecured debt includes credit card debt and personal loans.

Unsecured creditors have lower priority than secured creditors in probate. If the probate estate has enough funds, unsecured debts are paid off before any inheritance is distributed. However, if the estate lacks sufficient funds to satisfy all its debts, unsecured creditors are typically last in line for repayment and may not receive the full amount they are owed.

Funeral expenses also take priority over some creditor claims. Any state and federal taxes that the decedent owes, as well as probate estate administration expenses incurred during probate (e.g., legal and accounting fees), may also supersede creditors.

Knowing which debts have priority over others in probate is the responsibility of the estate’s executor/personal representative. If the individual assigned this role in an estate plan does not follow state probate laws, they could be personally responsible for debts that should have been paid but were not because the executor did not pay creditors in the correct order.

How to Plan for Debt and Leave More Money for Your Loved Ones

“You can’t take it with you” applies to what you owe every bit as much as what you own.

Your outstanding debt could create potential complications for loved ones. Your family may not personally get stuck with your unpaid bills; however, if you do not pay off your debts before you pass away, they may be forced to deal with debt collectors harassing or contacting them. Worse still, there may not be any money or property left to distribute to your loved ones in probate court or through the trust after everything has been liquidated to pay creditors. Here are some protections that your loved ones are afforded:

● State and federal law limits whom debt collectors are authorized to contact—and how they can contact them—to discuss outstanding debts. Spouses and other survivors should not automatically assume that they have to pay and should delay any conversation regarding payments of outstanding debts until they have discussed the specific circumstances with a lawyer. Collectors who go too far or provide misleading information can face potential consequences.

● When a beneficiary inherits a home, they also take possession of the home subject to any outstanding mortgage and are ultimately responsible for that debt. Anyone inheriting a home or other significant asset, such as a vehicle, with an outstanding loan balance must know their obligations to the lender. They may have to sell the house to pay off the mortgage or apply to transfer the mortgage to their name. In addition, individuals have the right to refuse a gift from an estate if they do not want or cannot afford it. In some cases, federal law will allow a decedent’s heirs to assume the mortgage on a property without triggering a due-on-sale clause, ensuring that the loan remains in place after the owner’s death.

● Every state has different laws and procedures surrounding debt repayment. Things can quickly get complicated, so it is best to work with a local estate or trust administration lawyer if there are any concerns about how unresolved debts could affect the surviving family.

Estate planning is about the legacy that you leave behind. If that legacy includes debt, an estate planning attorney can offer advice for getting it under control during your lifetime or help your family deal with the consequences of your debts after death.

Call us if you need assistance planning for your debt or winding up a loved one’s affairs.

^[1] Myles Ma, SPFC, 46% of Americans expect to pass on debt to their loved ones when they die, Policygenius (Jan. 9, 2024), https://www.policygenius.com/life-insurance/2024-financial-planning-survey-passing-on-debt-after-death.

^[2] FiscalData, https://fiscaldata.treasury.gov/americas-finance-guide/national-debt.

^[3] Chris Horymski, Experian Study: Average U.S. Consumer Debt and Statistics, Experian (Feb. 14, 2024), https://www.experian.com/blogs/ask-experian/research/consumer-debt-study/#s3.

^[4] Id.

^[5] Id.

^[6] Bill Fay, What Happens When People Die with Debt: Who Pays? (May 16, 2023), https://www.debt.org/family/people-are-dying-in-debt.

^[7] Id.

^[8] FederalStudentAid, https://studentaid.gov/manage-loans/forgiveness-cancellation/death.

Choosing the Right Business Structure: Beyond the Basic LLC

Tue, 18 Feb 2025 18:00:00 GMT

When starting a business, one of the most critical decisions you'll face is choosing your business structure. While many entrepreneurs automatically gravitate toward forming an LLC (Limited Liability Company), this one-size-fits-all approach might not be optimal for your specific situation. Your choice of entity will affect everything from your tax obligations and personal liability to your ability to raise capital and plan for succession. Making the wrong choice could expose you to unnecessary risks or burden you with excessive taxes and administrative requirements.

Understanding Tax Implications Across Different Structures

Each business structure comes with distinct tax treatment that can significantly impact your bottom line. As a sole proprietor, for instance, all business income passes through to your personal tax return, where you'll pay both income tax and self-employment taxes on your earnings. While this arrangement offers simplicity, it could come with an increased audit risk .

An LLC offers more flexibility in tax treatment than just defaulting to sole proprietorship/pass-through treatment. A single-member LLC can be taxed as a sole proprietorship, while multi-member LLCs can be taxed as partnerships. However, an often-overlooked option is electing to have your LLC taxed as an S Corporation, which can provide significant tax savings once your business reaches around $60,000 in annual revenue. With S Corporation tax treatment, you only pay payroll taxes on your actual salary, not on your profit distributions, potentially saving around 15% in payroll taxes on those distributions.

One crucial consideration with S Corporation tax treatment is the requirement for "reasonable compensation." The IRS requires S Corporation owners to pay themselves a reasonable salary for their services before taking profit distributions. What constitutes reasonable compensation can be subjective, however, and getting it wrong could result in serious consequences, including reclassification of all distributions as wages subject to employment taxes, plus potential penalties of up to 100%.

Beyond Basic Liability Protection

While liability protection is often the primary reason entrepreneurs choose to form an LLC or corporation, each structure offers different levels and types of protection. Professional corporations (PCs), for instance, can offer specialized protection for licensed professionals like doctors, lawyers, and accountants. Series LLCs allow real estate investors or entrepreneurs with multiple business lines to create separate "series" within one legal entity, each with its own liability shield.

C Corporations, despite their reputation for complex administration and double taxation, can offer unique advantages for businesses generating significant profits because a C Corporation structure allows for sophisticated planning opportunities (the nature of which is outside the scope of this article but book a call with me to learn more). The current corporate tax rate of 21% can also be advantageous for businesses reinvesting profits back into growth.

However, C Corporations do face the challenge of double taxation, where profits are taxed first at the corporate level and then again when distributed to shareholders as dividends. This is why many smaller businesses opt for pass-through entities like S Corporations or LLCs, where profits are only taxed once at the individual level.

Making Your Decision with Growth in Mind

When choosing your business structure, consider not just where your business is today, but where you want it to be in five or ten years. Will you want to bring in outside investors? Are you building a business to sell or creating a legacy to pass down? Do you plan to expand internationally? These future plans should heavily influence your choice of entity today.

For example, if you're planning to seek venture capital funding, a C Corporation might be more appropriate despite its higher administrative complexity. Venture capitalists typically prefer C Corporations due to their flexible stock structure and familiar operating requirements. Or if you're a solo professional service provider expecting steady growth, an S Corporation election could offer better long-term tax advantages than a simple LLC.

Remember too, that certain structures have specific requirements that might affect your future flexibility. S Corporations must meet several criteria, including:

● Having no more than 100 shareholders

● All shareholders must be U.S. citizens or permanent residents

● Can maintain only one class of stock

● Must be a U.S. corporation

● All shareholders must consent in writing to the S Corporation election

● Shareholders must be individuals, estates, or certain qualified trusts

Additionally, consider the administrative burden each structure requires. While sole proprietorships and partnerships offer simplicity in formation and operation, corporations and S Corporations require more rigorous record-keeping, regular meetings, and documentation. Factor in these ongoing requirements when making your choice, as they represent both time and monetary costs to your business.

Finally, to maximize the benefits of the right business structure for your business, make your decision with your eyes wide open - educated about and aware of all available options. The stakes are too high to go at it alone; you need a knowledgeable, trusted advisor on your side.

Book a call here to learn more and get started today.

4 Estate Planning Myths That Put Your Loved Ones at Risk

Wed, 12 Feb 2025 18:00:00 GMT

Surveys conducted in 2024 by Caring.com and Ameriprise Financial revealed a troubling trend: Americans are falling behind on estate planning. The Caring.com survey revealed that only 32% of Americans have a will - a 6% decline from 2023. The Ameriprise survey found that 52% of couples lack estate plans. These statistics highlight a dangerous disconnect between understanding the importance of estate planning and taking action. Let's examine these misconceptions and their potentially devastating consequences.

Myth 1: "I don't have enough assets to need an estate plan."

This dangerously narrow thinking ignores that estate planning isn't just about financial wealth. It's about doing the right thing for the people you love so you don’t leave a mess, and about ensuring your wishes for your own care are considered if you cannot make decisions for yourself due to accident or illness. Its about avoiding court and conflict, regardless of the amount of assets you have.

If you haven’t created a Life & Legacy plan (the type of comprehensive planning I offer), your loved ones could face lengthy court proceedings, unnecessary taxes, and difficulty accessing financial accounts, which could have devastating consequences if bills need to be paid.

It’s also about:

● Ensuring what you DO have goes to the people you want in the way you want (and stays out of the court process);

● Your children being raised by people you choose;

● Your wishes for your medical care are honored if you become incapacitated, or if your mind deteriorates;

● Only people you trust are able to manage your finances if you can’t manage your finances yourself, and

● Leaving your loved ones with your most valuable assets - your values, insights, stories, experiences and your love.

Moreover, a Life & Legacy plan can minimize conflict among your loved ones. By clearly outlining your intentions, and ideally getting my support to share your intentions with your loved ones, you significantly reduce the chances of misunderstandings or disputes, while also increasing the chances that your resources will be used to create a better future for the people you love.

Finally, an estate plan that works will save your loved ones time and money by ensuring the people who matter know what you have, where it is, how to find it, what to do with it when they do find it, and keeps them out of court and conflict.

In short, an estate plan is not a luxury reserved for the wealthy; it’s a necessity for anyone who has things that matter, and people who matter. If that’s you, and you don’t have an estate plan (or your plan could be outdated) let’s talk soon.

Myth 2: "My spouse and I trust each other completely."

Ameriprise's survey reveals 95% of couples trust each other with finances and 91% share financial values. When couples don’t plan because they trust each other to carry out each other’s wishes, they’re overlooking several essential matters.

For instance, trust between spouses doesn't prevent legal complications or avoid court. Without a Life & Legacy plan, a surviving spouse may face lengthy probate proceedings, increased tax burdens, and difficulty accessing accounts. This strain can damage relationships and deplete assets meant for heirs. Even worse, if both spouses die simultaneously, the complications can be significant, especially if the spouses have children from prior marriages, or minor children.

Another potential issue arises if the surviving spouse remarries. Without an estate plan, assets could unintentionally be passed to the new spouse instead of the people the deceased spouse loved. In some cases, children may even be accidentally disinherited, leaving them without the financial support their parent had planned to provide.

Myth 3: "Estate planning is too expensive."

Another common misconception is that estate planning is a luxury reserved for the wealthy because of its perceived high cost. The reality? Avoiding estate planning due to cost concerns can lead to far more significant time and money costs for the people you love down the road. Without a plan, your loved ones may face costly probate proceedings, unnecessary taxes, and legal disputes that can drain your estate and create additional stress for your loved ones during an already difficult time. These costs often far exceed the upfront investment of creating an estate plan.

Beyond the financial aspect, the peace of mind that comes with knowing your loved ones are protected is invaluable. A Life & Legacy plan ensures that your wishes are carried out, your loved ones are cared for, and potential conflicts are minimized. By addressing these matters proactively, you save the people you love from emotional and financial burdens, making Life & Legacy planning one of the wisest and most compassionate investments you can make, as well as the best gift you can give to the people you love.

Myth 4: "I don’t need to worry about who would raise my kids."

Many parents of minor children assume that in the event of their death, loved ones will naturally step forward to care for their children. Unfortunately, these assumptions are often misplaced. Without a Kids Protection Toolkit which we support you to create, the decision about who raises your children will be left to a judge - a complete stranger to you and your children. And when a stranger makes the decision about who will raise your kids, it might not be the person you would have wanted. In some cases, the individual granted guardianship could have values, parenting styles, or circumstances entirely incompatible with how you envisioned your children being raised. Even if you have named legal guardians for your children in a prior created will, it’s likely not taken into consideration the 6 common mistakes I see consistently when people (and even their well-meaning lawyers) name legal guardians. If you have a minor child, and have named legal guardians, but want me to review your plan to see if you’ve made any of the 6 common mistakes, call my office.

Another important consideration is the financial burden imposed on your children’s chosen guardian. If you haven’t created a Life & Legacy plan, and allocated sufficient funds for your children’s care, even willing loved ones might decline guardianship, leaving the court to make an even more difficult choice.

A Life & Legacy plan alleviates the potential financial burden on your chosen guardians and ensures that your children receive the care and stability they need during an emotionally challenging time.

Take Action Now to Protect the People You Love

I've seen too many people suffer negative, yet unnecessary, consequences after a loved one dies. And if you haven't experienced it yourself, chances are you probably will. But with the proper education, beginning with correcting these dangerous myths about estate planning, I believe we can break the cycle of strife.

I start with education so you are clear on what would happen to your loved ones and your assets if you become incapacitated and when you die. Then we will work together to create a plan that aligns with your values, your goals, your loved ones, and most importantly, that works when you need it to.

We call it the Life & Legacy Planning® process, and once you've created your Life & Legacy plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your property protected.

Book a call with us today to get started!

National Unclaimed Property Day: Why Estate Planning is More Than Just Documents

Wed, 05 Feb 2025 22:39:08 GMT

Every year on February 1st, we observe National Unclaimed Property Day - a reminder of the staggering $60 billion in forgotten and abandoned assets currently held by state governments across America. And this isn't just spare change we're talking about. These are life insurance policies, forgotten bank accounts, uncashed checks, retirement funds, and other valuable assets that have lost their connection to their rightful owners.

In our firm, I regularly see the consequences of overlooked assets and inadequate estate planning. Let's explore how assets are lost and become "unclaimed," how to prevent your assets from ending up in this $60 billion pool, and, most importantly, how to ensure your hard-earned assets reach your loved ones the way you want.

How Assets Become "Lost"

You might wonder how billions of dollars in assets could go missing. The truth is, it happens more easily than you'd think. Think about this: you become incapacitated or die, and someone in your family (either someone you named legally or someone chosen by a judge) has the job of finding all of your assets. Would they be able to find everything? How easy would it be for you to find everything, and you know what you earned, the accounts you set up, when you worked for that one company that set up a retirement account for you, got that insurance policy, etc.

What we see commonly when someone passes away without an updated estate plan (including a comprehensive asset inventory), is that their loved ones often have no idea what assets exist or where to find them. Those assets could eventually end up in state custody instead of going to the people you love. That money could be used to fund your children’s education, an investment in a loved one’s business, or to enhance the lives of the people you love most.

“Traditional” or “old school” estate planning often contributes to the problem. With an estate plan drafted by a financial advisor or lawyer who sells a will or trust rather than a comprehensive plan (or from a DIY tool like cheap legal or AI), you typically receive a set of documents to review and sign. You might take these documents home, put them on a shelf or in a drawer, and never look at them again. There's usually no inventory of your assets, which means that some of your assets could be lost or overlooked and end up part of that $60 billion in unclaimed property.

Why an Asset Inventory and Regular Review is Crucial

As a Personal Family Lawyer® firm leader, I know that effective estate planning isn't a one-time event - it's a lifelong process that includes an inventory of what you have, as well as regular updates to your inventory, as well as the legal documents that go along with it. My process begins with a Life & Legacy Planning® Session, where you’ll create an inventory of your assets, ensuring nothing gets overlooked or forgotten. This inventory includes not just the obvious assets like your home and bank accounts but also:

● Life insurance policies

● Retirement accounts from all previous employers

● Investment accounts

● Business interests

● Valuable personal property

● Intellectual property rights

● Digital assets and cryptocurrency

Digital assets present a particular challenge in today's world. Cryptocurrency, online banking accounts, social media profiles, and digital business assets can be especially difficult for loved ones to track down and access without proper planning. Many people don't realize that without proper documentation and access instructions, their digital assets could become effectively lost forever, even if their family and friends know they exist.

When you work with me, I’ll also help you keep your inventory updated throughout your life. I do this by conducting regular reviews of your Life & Legacy Plan to ensure your asset inventory stays current and properly aligned with your goals, wishes, and values. This comprehensive approach helps prevent your assets from becoming lost so they can go to the people you want in the way you want.

Beyond the Financial Impact

While creating an asset inventory is crucial, my Life & Legacy Planning process goes several steps further. It's not enough to simply list what you own - you need to ensure these assets are properly titled, beneficiary designations are up to date, and your loved ones know how to access everything when the time comes. I support you with it all. I will also be there for your loved ones when you no longer can.

In addition, there’s another crucial part of planning that’s often omitted from traditional or DIY planning. It’s the realization that the value of many assets isn't financial. Family photographs stored in the cloud, emails containing important family history, and digital collections of music or art can have tremendous sentimental value. Yet without proper planning, these too can become effectively "unclaimed property" - inaccessible to the very people meant to inherit them. When these invaluable family legacies are lost, they become another kind of unclaimed property, though their value can't be measured in dollars.

Remember, proper estate planning isn't just about having the right documents - it’s about taking all the steps needed to make things as easy as possible for your loved ones. It's the greatest act of love you can give to the people you cherish most.

Your Next Step

As your Personal Family Lawyer® Firm, I can help you create a comprehensive Life & Legacy Plan that includes a complete asset inventory, regular reviews, and updates to ensure nothing gets lost or forgotten. I’ll also support you to create a Life & Legacy Interview so your most valuable assets - your values, traditions and love - get passed on to the people you love most. Let's work together to protect your legacy.

Click here to schedule a complimentary 15-minute consultation and learn more about how I can help!

Single-Member LLCs: Are You Sure Your Assets Are Protected?

Wed, 05 Feb 2025 11:59:15 GMT

As a business owner, you've likely heard that forming a Limited Liability Company (“LLC”) is one of the best ways to protect your personal assets from business liabilities. While this can be true, the reality is more nuanced – especially if you’re the sole owner (generally called a “member” in an LLC). This is called a single-member LLC (“SMLLC”). Many entrepreneurs form SMLLCs believing they've created an impenetrable wall between their personal and business assets, only to discover too late that this shield has significant vulnerabilities. Let's explore why your SMLLC might not provide the protection you think it does and what you can do about it.

Know the Boundaries Between You and Your Business

The idea behind an LLC is that it creates a legal wall between your personal finances and your business. If someone sues your business or a creditor comes after it, your personal assets—like your home or savings—should, in theory, stay safe. But that wall, often called the “corporate veil,” can fail if you don’t maintain your LLC properly.

The most common issue that could blur the lines, and pierce your shield of protection, issue is mixing personal and business funds. Do you ever pay for business expenses with your personal debit card? That small mistake can make a big difference in court. If you are sued, and a judge is looking at whether your LLC can be used to satisfy a judgement, the court will be looking for signs that you respect the LLC as a separate entity. If a judge finds you haven’t respected the LLC’s separate status, the court will "pierce the veil.” When this happens, both your business and personal assets could be at risk if someone wins a judgment against you.

Another issue is undercapitalization. If you set up your LLC but don’t give it enough money to cover its debts or obligations, a judge could decide the LLC isn’t a real business—it’s just a shell. To avoid this, make sure your business has enough funding to operate independently.

You should also be aware that if you provide personal guarantees for business obligations, you are also putting your assets at risk. These guarantees effectively bypass the LLC structure entirely, creating direct personal liability for business debts. Many entrepreneurs don't realize they're compromising their asset protection when they sign these common business agreements.

Avoid These Common Mistakes

The way you operate your SMLLC can strengthen or weaken its protective shield. Unfortunately, many business owners unknowingly engage in practices that compromise their liability protection, not only by failing to respect the boundaries between their personal and business assets, but also by not understanding their legal obligations.

Proper maintenance of your LLC is incredibly important, and business owners often don’t maintain their LLC properly. This includes keeping accurate records, filing required documents on time, and following all applicable federal, state, and local laws. Think of it like maintaining a car – skip the regular maintenance, and you risk a breakdown when you need it most. Similarly, neglecting your LLC's administrative requirements can leave you exposed when legal challenges arise.

Furthermore, many states have specific requirements for SMLLCs that differ from multi-member LLCs. These requirements can affect everything from how you file taxes to how creditors can pursue your assets. Understanding and complying with these state-specific regulations is essential for maintaining liability protection.

What You Can Do Instead

The good news is you can take steps to close some of these gaps and make your LLC more effective. The first step is keeping your personal and business finances completely separate. Open a dedicated business bank account and never mix funds, even for small purchases.

Next, make sure you’re following all the rules for maintaining an LLC in your state. This includes filing annual reports, paying fees on time, and keeping detailed records. Think of your LLC as its own person—it needs regular care and attention to stay healthy. This step requires proper professional guidance because mistakes can derail your business and compromise your personal assets. I am here to help; read on for information on how to book a call with me to learn more.

You should also consider liability insurance. While an LLC provides some legal protection, insurance adds an extra layer of security. If someone sues your business, your insurance can cover legal costs and damages, keeping your personal finances untouched.

Moreover, think about the bigger picture. If you’re in a high-risk industry or have significant personal assets to protect, an SMLLC might not be enough. Schedule a call with me to explore strategies to protect your assets while supporting your business’s growth.

Finally, know that creating a single-member LLC is a smart start, but it’s not a one-size-fits-all solution. By understanding the risks and taking steps to address them, you can protect your personal assets more effectively. Don’t let a false sense of security leave you exposed. Take the time to get your LLC in order and explore additional ways to shield your hard-earned assets. Your future self will thank you.

How to Take Action Now

I understand the complexities of business structure and asset protection. That's why I offer a comprehensive LIFT Business Breakthrough Session™, where together, we'll analyze your current business structure and identify potential vulnerabilities in your asset protection strategy. Together, we'll develop a plan to strengthen your business's legal foundation and ensure you have the protection you need.

Book a call here to learn more and get started today!

HIPAA: An Overview for Young Adults

Wed, 29 Jan 2025 14:00:01 GMT

The Federal Health Insurance Portability and Accountability Act of 1996 (HIPAA) was enacted to provide guidelines to the healthcare industry for protecting patient information and preserving privacy. This is usually a nonissue for minors because parents, as legal guardians, generally have access to their children’s medical information, make most of their medical decisions, and pay the expenses.

However, once an individual turns 18, they are no longer a minor but a legal adult. Hospitals and doctors’ offices must safeguard the young adult’s information from everyone, including their parents or legal guardians, to comply with HIPAA law. While it makes sense that a legal adult would be in charge of their own medical information, this can pose some problems for young adults. Many 18-year-olds are still in high school, live at home, and have their expenses paid for by their parents. Although they are considered legal adults, their day-to-day lives look more like those of a child.

Young adults should consider executing the required documentation to ensure their parents or other trusted individuals can access their medical records and discuss their medical care with their healthcare providers. This is accomplished through a HIPAA authorization form . With this form, the young adult can designate any individual(s) as an authorized recipient of their medical information. Executing this document can be incredibly helpful if there is a question about the young adult’s care, especially while the parent is paying the corresponding medical bill. It is important to note that although someone may be listed as an authorized recipient of the medical information, this form does not give the named individual the authority to make medical decisions on the young adult’s behalf.

A properly executed HIPAA authorization form can also be beneficial if the young adult ends up in the hospital. Because hospitals do not want to be fined for violating HIPAA, most will err on the side of caution and refrain from disclosing any information to family members without properly executed documentation. Without access to their child’s medical information and the ability to talk with medical personnel, parents can feel out of the loop, and doctors may miss important family medical information.

Because the young adult is now in charge of their information, they get to choose whom they name as an authorized recipient. While it may make sense for them to include their parents, the young adult is not required to name them.

As a companion to the HIPAA authorization form, it is also important for the young adult to consider having a medical power of attorney prepared so that someone will have the authority to make medical decisions on the young adult’s behalf if they are unable to make their own medical decisions or communicate their medical wishes. Without this tool, the family may need to go to court to have someone appointed to make crucial medical decisions. The appointee will be based on the state’s law, not the young adult’s wishes. Depending on family dynamics, this court appointment could create conflict between family members. Also, this process takes time, costs money, and could potentially divulge the young adult’s medical information to anyone who is in the courtroom or wants to look up the court records.

If you or someone you know has recently turned 18 or needs a HIPAA authorization form, please give us a call . We are here to protect you and your family through all the major milestones in life.

Wills, Trusts, and Dying Intestate: How They Differ

Wed, 22 Jan 2025 14:00:02 GMT

Most people understand that having an estate plan benefits them and their loved ones. However, many individuals do not initiate the estate planning process because they do not fully understand the nuances of foundational estate planning tools such as a will and a trust and the full implications of dying without either in place.

Here are three scenarios illustrating what will generally happen when you die, whether you pass away intestate (without a will or trust), with a will , or with a revocable living trust (sometimes referred to simply as a trust ). For this discussion, let’s assume you have two children, but no spouse:

1. Intestate. If you die intestate, your accounts and property will go through a court process known as probate . The entire probate process is reflected in court records, so anyone can access information about what you owned, what you owed, and who will receive your money and property. However, because you have not legally specified who will receive your money and property, the probate court makes that determination using your state’s laws. Intestacy laws vary by state, but generally speaking, money and property go first to a surviving spouse, then to descendants (children or grandchildren), and then to parents, siblings, and siblings’ children, in that order, depending on who survives you.

Once the probate has been opened by an interested person (usually a family member, but maybe a creditor) and debts, taxes, and expenses have been taken care of, the court applies state law to determine where your remaining assets will go.

● If your only heirs are your two children, state law will typically mandate dividing your money and property equally between your children.

● If your children are adults (at least 18 or 21 years old, depending on state law), they will receive their inheritance immediately with no strings or protections attached.

● If your children are minors, the court will appoint a guardian or conservator (depending on the term used in your state for a person who manages money on behalf of a minor) to manage the money for your minor children until they become adults. When the children reach adulthood, they will receive their inheritance immediately with no strings or protections attached. The judge will also use state law to determine whom to appoint as guardian or conservator. This could be your ex-spouse or another closely related family member.

● The court-supervised guardianship or conservatorship process can be time-consuming and costly. Most expenditures for the benefit of the children require a formal process that includes court filings and, ultimately, authorization by the court prior to acting. In most states, guardians or conservators and the attorney representing these parties can charge for their time, which can be substantial.

● The court, not you, will decide who raises your minor children. The court will look to state law to see who has priority to be appointed as the guardian. This may be a person you would never have wanted raising your child. Because you do not have a will or other official document nominating a guardian, the judge will be able to assess the situation only according to the information they have at their disposal, which may be insufficient. However, if your children’s other legal parent is still living, they will most likely obtain sole custody of the children.

The bottom line? Dying intestate results in state law and the court making many important decisions on your behalf—regardless of what your wishes might have been. In addition, public disclosure of the intimate details of your life (finances, debts, and who will receive your money and property) is guaranteed.

2. Will. If you die with a valid will, accounts and property in your sole name at your death will still go through the probate process. However, after creditors have been paid, the remaining accounts and property will go to whom you have named in your will, in whatever way you have directed, rather than in accordance with state law.

● If you want to leave your money and property to your children, you can name a trusted decision-maker to manage the funds and provide them to your children when needed or at stated ages. In many cases, this means creating a testamentary trust in your will and naming someone as trustee to manage the funds, allowing you to put restrictions in place to ensure that the money and property are used in a way that meets your wishes. Because these terms are in a legally enforceable will, the court will abide by your wishes.

● The same considerations hold true if you specify that you want to give money to a charity, your Aunt Betty, or your neighbor.

● Your will is also where you can nominate a guardian to raise your minor children. Note that the court will still need to approve the nomination, but this is your way to ensure that your wishes are considered when the court appoints a guardian.

The bottom line? While a court oversees the process, having a will allows you to tell the court exactly how you want your affairs to be handled. However, a public probate process is still guara nteed.

3. Trust. For a trust to work properly, you need to change the title or beneficiary designation of all of your accounts and property to the trust’s name. Accounts and property owned by the trust are not subject to the probate process. One of the most important benefits of a trust is that the details and process of transferring accounts and property to the intended individuals are private .

When the trust is initially created, you serve in a variety of roles. First, you are the trustmaker who creates the trust and transfers your accounts and property to it so that the trust becomes the new owner. You are also the trustee of the trust, which means that you are in charge of managing the trust’s accounts and property, making investment decisions, and distributing money to the beneficiaries. You are also a beneficiary. Although the trust is now the technical owner of the accounts and property, you are still able to benefit from them as you did when they were in your name.

Because there may come a time when you are unable to manage the trust and the property it owns, whether because you are mentally unable or have passed away, you will name a trusted individual to step in as trustee when you can no longer act. This person is sometimes referred to as the successor trustee. They will then be responsible for managing the trust’s accounts and property and will be required to use the money and property for your (if you are still alive) and the other named beneficiaries’ benefit according to the terms you have provided in the trust agreement.

● One word of caution—to bypass probate, a trust must be properly funded. If you die owning any accounts or property in your sole name without a beneficiary designation, those items may have to go through the probate process to get to their appropriate new owner.

● Funding a trust means that ownership of your accounts and property has been changed from your individual name to your trust’s name. It may also mean naming your trust as the beneficiary if you cannot change the ownership of the account or property, as with a retirement account.

● Think of your trust as a basket. Like putting apples into a basket, you must put your accounts and property into the trust for either to have real value or control.

Even if you have a trust, you should still have a will to ensure that any accounts or property inadvertently or intentionally left out of your trust are retitled (funded) in the name of the trust after your death. This special type of will, referred to as a pour-over will, directs that anything going through probate is to be given to the successor trustee of your trust, who will then manage the account or property as part of the trust. The pour-over will also allows you to name guardians for your minor children.

The bottom line? A trust allows you to maintain control of your accounts and property through your chosen trustee, avoid probate, and leave specific instructions so that your children are cared for—without receiving a lump sum of money at an age where they are more likely to squander it or have it seized from them by potential creditors or predators.

Do not let the will-versus-trust controversy slow you down. Having any plan in place is often better than the one the state has created for you. Call our office today; we will put together an estate plan that works for you and your loved ones—whether it be a will, a trust, or both.

Five Essential Steps to Protect Your Loved Ones in 2025

Wed, 15 Jan 2025 14:00:05 GMT

You know that uneasy feeling when you think about what everyone you love would do, if (and when) something happens to you? That nagging voice reminding you that you still haven't created a will or trust or updated the estate plan you do have?

As we enter 2025, it's time to stop pushing those thoughts aside and take action to protect the people you love most. Many people avoid estate planning because they think it will be complicated, expensive, too time-consuming, or emotionally challenging. But the truth is, not having a plan, or having an out-of-date plan, is far more costly – financially, emotionally, and time-wise – for the people you love.

Let's take a look at five things you can do right now to create lasting peace of mind.

Step 1: Get Financially Organized

One of the biggest challenges people face after losing a loved one is trying to piece together their financial life. Where are all the accounts? What insurance policies exist? What bills need to be paid? Without proper organization, your family could spend months or even years trying to track everything down. Worse yet, anything they don’t find will be turned over to the State Department of Unclaimed Property, where there are approximately $60 billion in lost assets nationwide.

As important as it is, financial organization isn't just about making lists – it's about creating a clear roadmap for the people who will handle your affairs when you cannot. This includes documenting all your accounts, insurance policies, important passwords, and key contacts. When your loved ones need access to this information, it should be readily available, updated, and easy to handle. This is why our Life & Legacy Planning process begins with a financial organization, and then our ongoing Life & Legacy Planning service supports you to maintain your financial organization throughout your life, so it’s handled with as much ease as possible for the people you love when something happens to you.

Step 2: Create a Lasting Message for Your Loved Ones

When someone dies, their loved ones often wish they had one more conversation, one more chance to hear their loved one's voice or read their words. That's why recording a Life & Legacy Interview is part of our planning process. It’s truly one of the most meaningful gifts you can give the people you love, and who love you.

This message isn't just about saying goodbye – it's about sharing your values, hopes, and life lessons. Think about what you want future generations to know about your life journey.

What wisdom do you want to pass down?

What family stories, or even recipes, should be preserved?

While you may think “generational wealth” is just about money, the truth is that people who are able to learn from the recorded history of past generations have true generational wealth that’s far greater and irreplaceable than any dollar ever could be.

Your words will become a treasured part of your legacy, offering comfort and guidance long after you're gone.

Step 3: Learn About Tax Planning

Many people don't realize that proper estate planning can help minimize or eliminate taxes their loved ones might otherwise have to pay. Without planning, they could lose a significant portion of their inheritance to estate taxes, income taxes, or capital gains taxes.

Strategic tax planning isn't about avoiding your obligations – it's about ensuring more of your hard-earned assets go to the people you love rather than the government. Working with a trusted advisor who understands both estate and tax law can help you identify opportunities to protect your loved ones’ financial future.

Step 4: Plan Your Final Farewell (and Your Last Days)

While it might feel uncomfortable to think about your funeral, planning and paying for it in advance is one of the most loving things you can do for the people you love. When you're gone, they will be grieving. The last thing they need is to make difficult decisions about your funeral while trying to guess what you would have wanted.

By planning ahead, you not only ensure your wishes are honored but you also protect the people you love from emotional overspending during a vulnerable time. You can choose and pay for exactly what you want, locking in today's prices and relieving your loved ones of this financial burden.

Even more importantly, consider how you want to spend your last years, months, or even days and discuss that with the people who will be responsible for your care now. This could be a conversation we can help facilitate if bringing it up or even thinking about it alone feels too challenging or if you keep putting it off. This courageous conversation is one of the best gifts you can give to the people you love.

Step 5: Create a Comprehensive Life & Legacy Plan

All these elements come together in our comprehensive Life & Legacy Planning® process, which guides you to understand the law and how it will apply to your unique situation, considering your family dynamics and assets, so you can make educated and informed choices to ensure your loved ones stay out of court and out of conflict when something happens to you. This isn't just about creating legal documents – it's about creating a plan, maintaining it, and ensuring your loved ones know who to turn to when something happens to you.

When you create a Life & Legacy Plan with me, it includes clear instructions about who gets what, who's in charge of what, and most importantly, how to find and access everything when needed. It also includes specific directives about what happens if you become incapacitated. In addition, you’ll have the opportunity to outline your memorial service, and we’ll support you to record a Life & Legacy Interview that your loved ones will cherish for the rest of their lives.

The start of a new year is the perfect time to take these essential steps to protect the people you love. Don't wait until it's too late – the greatest gift you can give your loved ones is the gift of preparation and peace of mind.

How We Help You Get Started

We help you put these essential protections in place. Through our Life & Legacy Planning® process, we'll guide you in creating a lasting message for your loved ones, implementing smart tax strategies, planning your final arrangements, getting your finances organized, and creating a comprehensive plan that ensures the people you love stay out of court and conflict. Most importantly, we'll help you make informed decisions that align with your values and wishes. So don’t delay! Let us help you start the new year by doing the right thing for your loved ones.

Click here to schedule a complimentary 15-minute consultation to learn more.

Common Estate Planning Questions Part 2

Wed, 08 Jan 2025 14:00:03 GMT

When it comes to planning for your family's future, the options can feel overwhelming. Should you get a will? Create a trust? And what happens if you do nothing at all? These aren't just academic questions - your choices today will impact your loved ones tomorrow. In this second installment of a two-part Q & A series, I’ll break down the key differences between your primary estate planning options and explore practical ways to ensure your family is protected, no matter what the future holds. So, let’s dive in, beginning with a question about the basic estate planning documents.

Q: What is the difference between a will, living trust, and dying intestate? And what does that mean, practically speaking?

A: If you die without an estate plan, you do have a plan - it’s just the plan chosen for you by the state, and you may not like it. Almost certainly, your loved ones won’t like it because it means they’ll likely need to deal with a court process called “probate.” When you die without a will, it’s called dying “ intestate,” and it means that your assets are distributed according to state law after a process in which a judge decides who gets what. This could mean your assets would not go to the people you choose in the way you choose, and your family could face a lengthy, expensive, and public court process during an already difficult time.

A will is your basic instruction manual for what happens to your assets after you die, but it still requires your family to go through the probate process. While a will allows you to name guardians for your minor children and specify who gets what, your “executor” or “personal representative” must file the will with the court and potentially wait months or even years before receiving your assets. Plus, everything becomes public record - so anyone can look up what you owned and who got what, leaving the inheritors open to predators.

If you create a trust, your assets can be passed to the people you choose without a court process and completely privately. Think of a trust like a container that holds your assets during your lifetime and then, upon your incapacity or death, a successor trustee you’ve named can step in to handle your assets, manage your affairs, and pass your assets to your chosen beneficiaries. With a properly funded trust, your beneficiaries could receive their inheritance within weeks or months instead of months or years.

Q: Is probate always required when someone dies?

A: The necessity of probate depends largely on how your assets are titled when you die and the total value of assets that are in your personal name at the time of your death. Assets that are solely in your name with no beneficiary designation must go through probate, and the distribution must be ordered by a Judge. There are some exceptions: jointly owned property automatically passes to the surviving owner, assets with named beneficiaries (like life insurance policies and retirement accounts) go directly to those beneficiaries, and assets held in a properly funded living trust transfer according to the trust's instructions, without court involvement.

These issues can be complicated and have a huge impact on your loved ones, so it’s important to work with a trusted advisor who can help you understand your goals, and then properly structure your assets to accomplish your goals, especially if you want to keep your family out of court and out of conflict. Keep reading to find out how I can help.

Q: What if I’m uncomfortable talking about death and money?

A: While it's completely natural to want to avoid thinking about death and avoid talking about money, not planning for the reality of death or a possible incapacity before death can leave your loved ones with an expensive, time-consuming mess to clean up during what will already be an emotionally difficult time. Here's what you absolutely must know: First, if you become incapacitated or die without a plan, the court will make all the decisions about your care and your assets according to state law, not according to what you would have chosen.

Second, if you have minor children and no estate plan, the court will decide who raises your children and who takes care of the assets you leave behind, all without your input. Think about that for a moment. A judge is a complete stranger to you and your kids, yet that’s who will decide your children’s future - who makes decisions about their education, their health matters, and their financial affairs. And, then, whatever you leave behind and whatever is left after the court process goes to your children when they turn 18, without protection (i.e., they’ll be free to spend it all as quickly as they want). If that concerns you, you need a plan of your own.

Third, your family will likely have to spend significantly more time and money dealing with your affairs if you don't have a plan in place than if you had taken the time to create one. The good news is that creating a plan doesn't have to be overwhelming or uncomfortable—working with a trusted advisor who can guide you through the process step by step can actually bring you peace of mind, knowing you've taken care of the people you love.

Q: How can you minimize the stress to your family by handling these matters in the simplest way possible?

A: The best way to minimize stress for your family is to create a clear, comprehensive Life & Legacy Plan before anything happens to you. Many people think creating an estate plan will be stressful, but it's actually the lack of planning that creates the most stress for families.

When you work with me as your Personal Family Lawyer®, I make the process simple:

First, I help you get clear about what you own and what would happen to everything you own and everyone you love (including yourself) when something happens to you. Then, I support you to make informed, empowered choices about who should receive your assets, who should be in charge of carrying out your wishes, and how you want it all handled. Finally, I help ensure your plan will actually work when your family needs it by supporting you to review your plan regularly as your life changes and ensuring we maintain an updated inventory of your assets to ensure none of your assets are lost to the state due to oversight, after your death.

Beyond creating the right legal documents, I’ll support you in other ways to make things easier for your loved ones. I’ll help you document specific wishes you have for personal items with sentimental value and to have conversations with your loved ones about your choices so there are no surprises later. We’ll conduct a Life & Legacy Interview so you can pass on your values, insights, and stories - the intangible (and most important) assets that are often lost when someone dies. Most importantly, I will be there for your family when you can't be there, to guide them through the process and ensure your wishes are carried out properly. This is the power of our Life & Legacy Planning® process.

How We Help You Create Peace of Mind

As your Personal Family Lawyer® Firm, we understand that thinking about death and money can feel overwhelming. That's why we've created a simple, step-by-step process to help you get your affairs in order and ensure your family is protected. Our Life & Legacy Planning process goes beyond just creating legal documents - we help you make informed decisions about your family's future, keep your plan updated as your life changes, and ensure your wishes will be carried out properly when the time comes. Most importantly, we'll be there for your family when you can't be, providing the guidance and support they'll need during a difficult time. You'll gain peace of mind knowing you've done everything possible to make things easier for the people you love.

Click here to schedule a complimentary 15-minute consultation to learn more about how we can help:

Schedule Online.

This article is a service of Bray Law Office, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a comprehensive Life & Legacy Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session™.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® Firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Start Fresh: Strategic Productivity Practices to Power Your Business in the New Year

Tue, 07 Jan 2025 21:53:05 GMT

The end of the year is approaching, and as a business owner, you're likely reflecting on the past twelve months while looking ahead to the future. While many focus on revenue goals and growth targets, there's one fundamental aspect that can make or break your success in the coming year: productivity. By implementing the right productivity practices now, you can set yourself and your business up for unprecedented efficiency and success in the new year.

Create Systems That Scale

One of the biggest productivity killers in any business is reinventing the wheel for recurring tasks. Think about how many times you or your team members perform the same activities. Each time you tackle a familiar task without a documented system, you're essentially starting from scratch, wasting valuable time and mental energy.

Start by identifying your core business processes – everything from customer onboarding to invoice processing to social media management. Document each process step-by-step, noting who's responsible for what and any tools or resources needed. Consider recording video tutorials for complex procedures or creating detailed checklists for routine tasks.

Remember that good systems do more than just document current practices. They should be designed to scale with your business. As you create each system, ask yourself: Will this work when we're handling twice the current volume? Five times? Ten times? Build flexibility into your systems now to avoid major overhauls later.

Embrace Strategic Automation

While systems provide the foundation for productivity, automation takes it to the next level. However, the key is being strategic about what you automate. Not every process needs or benefits from automation, and poorly implemented automation can create more problems than it solves.

Start with repetitive, time-consuming tasks that don't require human judgment. Email responses, appointment scheduling, invoice generation, and social media posting are prime candidates for automation. Look for areas where manual data entry creates bottlenecks or where human error could be costly.

Be sure to thoroughly test any automation before fully implementing it. Start small, perhaps with a single process or department, and gradually expand based on results. Remember that automation should serve your business goals, not dictate them. The best automation solutions are those that free up your team to focus on high-value activities that require human creativity, judgment, and relationship-building.

Implement Time-Blocking and Focus Management

Time is your most precious resource as a business owner, yet it's often the most poorly managed. Random interruptions, constant email checking, and reactive decision-making can fragment your day and destroy productivity. The solution? Strategic time-blocking and focus management.

Start by auditing how you currently spend your time. Track your activities for at least a week (ideally two), noting what you're doing and any patterns in your energy levels and focus. Use this information to create designated blocks of time for different types of work. For instance, you might schedule deep work during your peak energy hours, batch similar tasks together, and set specific times for email and communication.

Consider implementing "power hours" – focused work periods where you and your team minimize distractions and concentrate on high-priority tasks. This might mean turning off notifications, closing email, and even putting phones in airplane mode. The key is creating an environment that supports sustained focus and productivity.

Establish Clear Communication Protocols

Poor communication can derail even the best productivity systems. When information doesn't flow efficiently, decisions get delayed, mistakes multiply, and productivity suffers. As you prepare for the new year, establish clear communication protocols that support rather than hinder productivity.

Define which communication channels should be used for what purposes. Maybe email is for external communication and documented decisions, while a chat platform is for quick internal questions. Set expectations for response times based on the urgency and importance of different types of communication.

Create guidelines for meetings to ensure they remain productive. This includes having clear agendas, time limits, and action items. Consider implementing "no-meeting" days or blocks to allow for uninterrupted focus time. Remember, every minute spent in an unnecessary meeting is a minute lost to productive work.

Your Next Step to Make 2025 the Best Year Ever for Your Business

We understand that implementing new systems requires careful planning and execution. That's why I offer a comprehensive LIFT Business Breakthrough Session, where we'll analyze your current systems and identify opportunities for improvements. Together, we'll develop a customized plan to help your business operate at peak performance in the coming year.

Schedule here to learn more and get started today:

5 Essential Strategies for Creating a Business Plan That Works

Tue, 07 Jan 2025 21:47:13 GMT

Every successful journey starts with a map, and your business journey is no different. While many entrepreneurs feel overwhelmed by the idea of creating a business plan, seeing it as just another box to check or a document that will gather dust, a well-crafted business plan can be the difference between steering your business toward success and wandering aimlessly. Let's explore five practical strategies to create a business plan that will actually serve your business.

Strategy No. 1: Start With Your "Why"

Before diving into financial projections and market analysis, begin with your purpose. What problem are you solving? Why does your business need to exist? This isn't just about crafting a mission statement - it's about understanding your business's reason for being and communicating it clearly.

Your "why" shapes everything that follows. It influences your target market, your marketing strategy, your pricing, and even your company culture. Think beyond making money - while profitability is crucial, businesses that survive and thrive long-term usually have a deeper purpose. Perhaps you're making healthcare more accessible through technology, or maybe you're helping small businesses compete with larger corporations. Whatever your purpose, make it clear and compelling.

Strategy No. 2: Know Your Numbers Inside and Out

Many entrepreneurs rush through the financial section of their business plan, seeing it as a necessary evil. However, understanding your numbers isn't just about satisfying potential investors - it's about ensuring your business model actually works.

Start with your startup costs, including everything from office space and equipment to licenses and initial inventory. Then map out your operational costs: salaries, utilities, supplies, marketing expenses, and other regular expenditures. Be brutally honest here - optimistic projections might feel good, but realistic ones will serve you better.

Next, project your revenue streams. How will you make money? What are your pricing strategies? What's your break-even point? Don't just pick numbers out of thin air - base them on market research, competitor analysis, and realistic customer acquisition costs. Remember, your financial projections tell a story about how your business will grow and succeed.

Strategy No. 3: Get Specific About Your Market

"Everyone" is not your market. Even if your product or service could be used by anyone, trying to market to everyone is a recipe for marketing to no one effectively. Your business plan should demonstrate a deep understanding of your specific target market.

Who are your ideal customers? What are their pain points? How does your solution address their needs better than existing alternatives? Use demographic data, but don't stop there. Understand their behaviors, preferences, and decision-making processes. This understanding should inform everything from your marketing strategy to your product development.

Include market size calculations, but be realistic. Focus on your serviceable obtainable market (SOM) rather than the total addressable market (TAM). It's better to show how you can capture a significant share of a smaller market than to claim an unrealistic slice of a massive one.

Strategy No. 4: Detail Your Implementation Strategy

A goal without a plan is just a wish. Your business plan needs to outline specific, actionable steps for bringing your vision to life. Break down your larger goals into smaller, manageable objectives with clear timelines and responsibilities.

What systems will you need to put in place? How will you handle customer service? What about quality control? Think through the operational details that will make your business run smoothly. Include your staffing plan, technology needs, and any required partnerships or strategic alliances.

Also, consider potential obstacles and how you'll overcome them. What happens if a key supplier falls through? How will you handle seasonal fluctuations? What's your Plan B if certain assumptions prove incorrect? Showing that you've thought through these scenarios demonstrates business maturity and preparedness.

Strategy No. 5: Make It a Living Document

Your business plan shouldn't be a static document that sits in a drawer. Create it with the intention of revisiting and revising it regularly. Set specific times to review and update your plan - quarterly is often a good cadence for most businesses.

Use your plan as a benchmark to measure progress and make course corrections. Are you hitting your milestones? Do your financial projections need adjustment based on real-world data? Have market conditions changed significantly? Regular review and revision keep your plan relevant and useful as a strategic tool.

Taking Action Now

Creating a business plan is just the first step. Implementing it effectively requires ongoing attention to legal, insurance, financial, and tax (LIFT) considerations. These foundational systems need to be robust enough to support your business as it grows while remaining flexible enough to adapt to changing circumstances.

We can help ensure your business plan aligns with sound legal and financial practices while setting you up for sustainable growth. When you meet with me for a LIFT Business Breakthrough™ Session, we'll review your business foundations and create an action plan to implement the systems and structures your business needs to thrive.

Book a call here to learn more and get started today:

Common Estate Planning Questions On How to Handle Your Assets

Thu, 02 Jan 2025 14:00:04 GMT

When it comes to estate planning, I get many questions about many topics. One of the most common questions I hear concerns account ownership and asset management. Understanding how accounts are titled and who has access to them isn't just about convenience—it's about ensuring your assets transfer smoothly to your loved ones while protecting them from potential risks.

In this first installment of a two-part series, I’ll answer the most common questions about asset ownership and management. I’ll also outline ways in which you can make things as easy for your family after your death. So let’s dive in, beginning with a question about joint assets.

Q: What's the difference between joint ownership and transfer-on-death designation?

A: Joint ownership means both parties have full access to and ownership of a specific account or piece of real estate, while living. When one owner dies, the surviving owner automatically receives full ownership. This can be convenient but comes with risks - a joint owner can withdraw all the money at any time, and the account could be vulnerable to either joint owner’s creditors or legal judgments.

On the other hand, transfer-on-death (TOD) or payable-on-death (POD) beneficiary designations give you sole control during your lifetime. Your designated beneficiary has no access or rights to the account while you're alive but receives the assets automatically upon your death. This arrangement prevents another person from accessing your assets while you’re alive and also avoids the court process (called probate) after you die.

One important note: When you have a joint owner on your account, or a designated beneficiary, that person will receive all the funds after you die, no matter how old they are or what your family dynamics are. This can create conflict in your family or can cause someone who’s fiscally irresponsible to potentially inherit a windfall with no safeguards. Lawsuits are filed all the time by disgruntled siblings who find out that the caretaker sibling receives all the money in a parent’s account (or sole title to real estate) rather than being distributed equally among all siblings. If this is a concern to you, read on to find out how you can book a call with me to learn about your options.

Q: If I hold my property jointly, or use a TOD or POD, do I need to have a Trust?

A: If you use joint ownership or TOD/POD instead of a Trust, you need to consider some traps for the unwary. First, as indicated above, jointly owned property could be at risk from creditors of either party. I think of my client, granddaughter, who was titled on grandma’s bank account. When granddaughter’s husband didn’t pay the bill on the copier contract for his business, the copier company sued and got a judgment against him. Next thing you know, grandma’s account gets garnished because it was held jointly with granddaughter, and granddaughter was liable on the copier judgment.

Suppose you use a TOD or POD to avoid a scenario like that. In that case, the problem is that the TOD/POD only operates in the event of death, not incapacity, and TOD/POD could result in the wrong person ending up getting the assets or the assets ending up in probate if there is an unexpected “order of death” issue. Imagine, grandma leaves house to grandson using TOD, but grandma and grandson are in the car together when there’s an accident, and grandson dies first, with grandma dying shortly thereafter, and before she could change the TOD/POD. Who gets the property, and how? In this case, the property would have to go through probate and pass to grandma’s “next of kin” according to the state intestacy statutes. Given that grandma was leaving her property to grandson, it’s likely she didn’t want the “state’s plan” for her assets. But, that’s what she’ll end up with.

The solution is not to use joint ownership or a TOD/POD to pass title to assets at your death. Instead, set up a trust and retitle the property, and everything can be handled with ease, privately, and in our office, for the people you love.

Q: What happens to retirement accounts and life insurance policies after death?

A: These accounts pass directly to your named beneficiaries, bypassing probate and any instructions in your will, as long as you have named beneficiaries, and if you haven’t named a minor as a beneficiary This is why keeping your beneficiary designations up to date is crucial. If your beneficiary designations are outdated – listing an ex-spouse or deceased person, for example – your assets might not go where you want them to. Even worse, if you have no beneficiary listed, these accounts would go through probate, costing your loved ones unnecessary time and money. If you’ve named a minor as a beneficiary, the assets will be subject to a court process to hold the assets under court order until your minor beneficiary is “of age” - usually 18 or 21, depending on state law.

Q: Do I need an inventory of my assets?

A: Yes, and it’s critically important that you create an inventory and keep it up to date. We include this in all of our planning options because it’s one of the most important parts of the planning process, even though, surprisingly, it’s not part of most estate planning with traditional lawyers or legal insurance plans. Our unique Life & Legacy Planning ^Ⓡ process includes an asset inventory because if you don’t inventory your assets, your family will not know what you have, how to find it, and how to get access to it as easily and affordably as possible. Lost assets end up in your state’s treasury as unclaimed property. According to the National Association of Unclaimed Property Administrators, approximately 1 in 7 people in the U.S. - or about 33 million people - have unclaimed property, totaling approximately $77 billion dollars. If you want to ensure that your assets go to the people or charities you want rather than to your state government’s unclaimed property fund, you need an asset inventory. And it must stay up to date.

Q: How often should I review my asset inventory and account designations?

A: Your inventory and beneficiary designations need to be kept up to date over time so they reflect your current circumstances when you die. Your Life & Legacy Plan includes regular, ongoing reviews of your asset inventory so no asset ever gets lost.

It’s also important to update your asset inventory and account designations whenever you experience a major life event such as:

● Marriage or divorce

● Birth or adoption of a child

● Death of a beneficiary

● Purchase or sale of significant assets

● Moving to a new state

● Starting a business

● Retirement

When you work with me, you won’t have to remember this on your own. I’ll proactively remind you to update your inventory and beneficiary designations and help make it as easy as possible for you to take action.

Q: What's the best way to organize and store my asset information?

A: Create a clear, organized system that your loved ones can easily access if something happens to you. However, be careful about including sensitive information like passwords in your will, as it becomes public record after death. Instead, consider keeping this information in a secure location and telling your trusted family members, executor, or trust administrator how to access it. I will help you explore options for the best way to do this when we work together.

How We Help You Get Organized and Protected

We help you create a comprehensive Life & Legacy Plan that includes a complete asset inventory, proper account titling, and coordinated beneficiary designations. We'll help you understand the implications of different ownership structures and guide you in making the best choices for your family's unique situation. Plus, we'll help you keep everything updated through regular reviews, ensuring your plan continues to work as intended. You’ll gain peace of mind knowing that your assets will go to the people you want in the way you want.

Click here to schedule a complimentary 15-minute consultation to learn more.

Have You Checked Your Beneficiary Designations Lately?

Thu, 26 Dec 2024 14:00:01 GMT

You regularly check the balances of your retirement, bank, and investment accounts. But when was the last time you checked the beneficiary designations on these accounts (and really, all the other accounts that allow you to name a beneficiary)?

It may have been years since you first opened an individual retirement account, bought a life insurance policy, or started putting money into a health savings account. At the time, you named someone—most likely your spouse, if you were married, or another loved one if you were single—who will inherit the money when you pass away.

However, you might have since married, divorced, or remarried without updating your beneficiaries. Or maybe another event, such as a birth or death in the family, has altered your estate planning strategy.

Beneficiary designations are a crucial part of an estate plan and a way to avoid probate. But they supersede instructions in a will or trust and should be regularly reviewed to ensure that they align with your legacy goals.

Accounts That Have Beneficiary Designations

Beneficiary designations allow individuals to specify who will receive the funds or accounts upon their death, bypassing probate and allowing these items to pass more quickly to the people or entities named as beneficiaries.

Many types of accounts and financial instruments such as the following allow for beneficiary designations (including payable-on-death or transfer-on-death account designations):

● retirement plans, such as a 401(k), 403(b), individual retirement account (IRA), Roth IRA, or pension plans

● life insurance policies

● annuities

● checking and savings accounts

● certificates of deposit (CDs)

● health savings accounts (HSAs)

● 529 college savings plans

● employer-sponsored benefits (e.g., group life insurance and employee stock plans)

● brokerage accounts

● mutual funds

● US savings bonds

Some states also allow real estate to pass to a beneficiary using a transfer-on-death deed, a beneficiary deed, or a Ladybird deed, also known as an enhanced life estate deed.

How a Beneficiary Designation Works

Beneficiary designations take precedence for distribution over other documents in an estate plan. The individual or entity you name as an account beneficiary will automatically receive the money or account, usually without it passing through the court-supervised probate process. ^[1]

A beneficiary can be any of the following:

● a person, such as a spouse, child, partner, family member, or friend

● a trust

● a charity

● your estate

It is also possible to name multiple parties as beneficiaries of the same account, allowing you to divide the money or account among them. For example, you could have half the money in your investment account pass to your spouse and split the other half between your two children.

Federal law, your state, or the account administrator may require that your spouse be listed as a primary beneficiary and receive a minimum amount before you can list other beneficiaries, unless the spouse waives their rights.

If you name your estate as a beneficiary, the money or account could be subject to probate.

Naming Primary and Contingent Beneficiaries

In addition to naming a primary beneficiary (the person first in line to inherit the money or account), most policies let you name at least one contingent (backup or secondary) beneficiary.

A secondary beneficiary receives the money or account if the primary beneficiary is unable or unwilling to accept it (e.g., they predecease the account holder or die at the same time). While primary and contingent beneficiaries provide some probate avoidance security, if there is no primary beneficiary to receive the money or account and no listed contingent beneficiary, the money or account could be subject to probate and distributed according to applicable state law.

With your estate planning attorney’s guidance, consider naming your trust, if your estate plan includes one, as primary or contingent beneficiary to help avoid the scenario where both your primary and contingent beneficiaries predecease you or are otherwise unable to take the funds.

Why You Need to Review Beneficiary Designations Regularly

A beneficiary designation supersedes any instructions in a will or trust about how to distribute money in an account or policy. If your will states that your money and property should go to one person but your retirement account designates someone else as the beneficiary, the beneficiary designation on the account takes precedence.

Many people make the mistake of assuming the opposite: that their will or trust overrides beneficiary designation forms. It is also problematic when an account owner submits a beneficiary form to a plan custodian or administrator but never confirms that the designation was processed. There could even be instances where the beneficiary form was left blank, either accidentally or with the intent to fill it out later.

A beneficiary form that is not up to date can result in assets getting tied up in probate or not passing to the correct beneficiaries. Not updating a beneficiary form could have unintended consequences, such as leaving money or the account to a loved one who is now incapable of handling them or to someone you no longer want receiving the funds.

An estate plan should be regularly updated to account for life changes. This includes examining beneficiary forms when the following types of major life events occur:

● divorce

● marriage

● birth or adoption of a child or grandchild

● loss of a spouse, child, or other beneficiary

● the end of a relationship

● closure of an account and moving the assets to a new account

● a plan administrator being bought by or merging with another financial institution

● an employer changing plan administrators for the benefits it provides

● changes in the law that affect how money and accounts can be transferred at death

While the events listed above can warrant an immediate change in beneficiary designations, it is prudent to check designations every three to five years even when you think nothing has changed.

Changing your mind about your overall estate plan is another time to consider switching beneficiaries. For example, your original intent may have been to divide your money and property evenly among your children, but you have since decided that one child needs more money than their siblings. You may need to update your retirement account to make that child the sole account beneficiary.

How to Change a Beneficiary Designation

Updating beneficiaries is straightforward, but the actual process can depend on the type of account:

● Many accounts can be checked and changed online.

● Some accounts require filling out paperwork.

● In certain states, a spouse’s written consent may be required to name someone else as primary beneficiary.

● A beneficiary change could require a sign-off from a plan administrator.

When naming a beneficiary, be as detailed as possible. Most designation forms ask for a person’s full legal name and their relationship to you. You may also need to provide details such as the beneficiary’s contact information, date of birth, and Social Security number. Part of the change process should also include requesting and saving beneficiary change confirmations from the account administrator. This is the only way to ensure that the change was successfully made.

What Can Happen When You Do Not Update Beneficiary Designations

If you fail to name a beneficiary or do not name a contingent beneficiary in case something happens to the primary beneficiary, the money or account could be subject to probate upon your death.

The probate process can add costs and delays to settling an estate. Probated accounts and property must be reviewed by the court and distributed in accordance with a will instead of a beneficiary designation. If you do not have an existing will, the money or account would be subject to state intestacy laws, which determine who has the right to receive your money and property at your death. These laws typically give preference to a person’s spouse and children, but you may want somebody else to receive your money or accounts.

Simple Form, Complex Estate Planning Considerations

Beneficiary designations show how even small estate planning details can have a big impact. While the form to name a beneficiary on an account is typically easy to fill out, naming—or failing to change—a beneficiary can have a major effect on your estate plan and loved ones.

A beneficiary designation cannot be changed after you are gone. To ensure that your account money and property go where you want and how you want, talk to an estate planning attorney to put a plan in place.

^[1] However, the money or account may still require court supervision in some instances (e.g., if you name a minor or incapacitated individual as your beneficiary).

Enriching Life with a Third-Party Special Needs Trust

megan@mbraylaw.com (Megan Bray) — Wed, 18 Dec 2024 14:00:47 GMT

A special needs trust (SNT) allows an individual to provide for a disabled beneficiary without jeopardizing the beneficiary’s eligibility for needs-based government benefits.

SNT funds can generally be used to pay for almost anything that falls outside the basic support that programs such as Supplemental Security Income (SSI) and Medicaid provide. This includes many goods, services, and experiences that these programs do not cover.

Rules around SNTs are complicated, and a trustee’s unauthorized use of SNT funds may result in a penalty or reduction of government benefits for the trust beneficiary.

How SNTs Work: First-Party versus Third-Party

There are two main types of SNTs: first-party and third-party. The main difference between them is that the former holds funds that the beneficiary owns or receives in a lump sum (often from a settlement or inheritance) and puts into the trust, and the latter holds funds given to the beneficiary by a parent, grandparent, or other family member or individual. Both types of SNT can hold assets such as cash, investments, life insurance policies, retirement accounts, and even real estate.

One key difference between first-party and third-party SNTs is that when the beneficiary dies, funds in a third-party SNT are not subject to reimbursement to the state for up to the amount of the government benefits the beneficiary received during their lifetime. Although the disabled person benefits from the funds, the funds in a third-party SNT never technically belong to them. So, when a beneficiary of a third-party SNT dies, any remaining trust assets can pass to other individuals or to charities.

What a Third-Party SNT Can and Cannot Pay For

Regardless of whether an SNT is first-party or third-party, there are certain expenses that it can and cannot pay for on behalf of the beneficiary without jeopardizing government benefits.

The basic spending rule for SNTs is that the funds are intended to supplement—not replace or duplicate—needs-based government assistance benefits. They can be used for “special needs” but not for “basic support” (e.g., shelter and basic medical costs).

● In general, an SNT can cover typical ongoing expenses of everyday life that government programs such as SSI and Medicaid do not cover.

● The funds must be used for the sole and direct benefit of the disabled beneficiary. Payments can benefit others only indirectly, such as when a beneficiary travels and needs an aide.

● Whenever possible, SNTs should directly purchase an item or service in the trust’s name and not the beneficiary’s.

● The trustee of an SNT should not make direct payments to the beneficiary even if the distributions are being made for allowable expenditures.

SSI, Medicaid, and SNTs

SSI includes shelter costs as part of its calculation when determining eligibility and benefit amounts. SSI refers to payments for shelter as “in-kind support and maintenance” (ISM). ISM is any shelter expense that somebody else (including a trust) provides for an SSI recipient. SSI considers ISM a type of unearned income.

The following items fall into this category and generally should not be paid for by an SNT:

● rent or mortgage payments

● condo and HOA fees

● property taxes

● utilities such as water, gas, and electricity

Medicaid rules and coverage vary by state, but typically,

SNTs can pay for the following types of medical and dental expenses that Medicaid does not cover:

● inpatient psychiatric services for age-excluded individuals

● over-the-counter medications

● elective surgeries and procedures

● dental and vision care

● hearing aids

● a private room instead of a shared room at a care facility

● certain specialist providers

SNT funds disbursed in a way that violates SSI or Medicaid rules can impact a disabled person’s continued eligibility for those benefits.

The Social Security Administration may reduce SSI benefits by up to one-third of the federal benefit rate if SNT funds are used for ineligible purchases. Benefits may also be reduced if money is paid directly from the trust to the disabled beneficiary. Money paid directly to an SSI recipient to provide them with shelter could potentially reduce their SSI benefit dollar for dollar because this type of distribution is treated as unearned income regardless of what the funds are being used for.

If an SSI beneficiary receives cash (or a cash equivalent such as a refundable gift card) from an SNT, their benefit may be reduced by one dollar for each dollar received, up to the point where they lose SSI completely. A beneficiary could also lose their SSI altogether if noneligible trust payments increase what the Social Security Administration calls “countable income.” Losing SSI eligibility could lead to losing Medicaid since, in many states, SSI recipients automatically qualify for Medicaid.

Allowable SNT Purchases

Despite these restrictions on SNTs, they can be used to pay for many special expenses on the beneficiary’s behalf, such as the following items and activities:

● clothing

● phone, cable, and internet services

● a vehicle, insurance, maintenance, and fuel

● tuition, books, and tutoring

● travel and entertainment

● household furnishings and furniture

● fitness equipment

● computers, television, and other electronics

● alternative medical treatments

● parties or celebrations

In addition, the money required to administer a third-party SNT, including attorney’s fees and trust accounting fees, can be paid from the trust.

Creative Ways to Use Third-Party SNT Funds

Bearing in mind the restrictions on SNTs, trustees have wide latitude with how they can spend trust funds. As long as expenditures do not break the rules and put benefits at risk, a trustee is free to put money toward special purchases that go above and beyond the simple necessities and enrich the beneficiary’s life. Here are a few ideas for inspiration:

● Vacations. Airfare, hotel accommodations, cruises, and other travel-related costs should be coverable by the trust.

● Entertainment and hobbies. Support a beneficiary’s passion by using the trust to pay for movies, concerts, theater tickets, arts and crafts supplies, photography equipment, musical instruments, and physical and digital media subscriptions.

● Recreational activities. SNTs can pay for membership fees, camps, or lessons for activities such as sports, exercise, and outdoor excursions.

● Adaptive recreational equipment. To stay active outdoors, an SNT beneficiary might need specialized equipment, such as adaptive bikes, all-terrain wheelchairs, or modified vehicles—all of which can be paid for by an SNT.

● Technology and electronics. Buy the beneficiary a new computer, tablet, or smartphone to stay connected and curate their interests. Funds can also go toward internet fees or a mobile phone plan.

● Therapeutic services and programs. Nontraditional medicine such as aromatherapy, reiki, yoga, and massage therapy, as well as spa treatments and grooming services, offer a wellness boost and are usually not covered by Medicaid.

● Pets and pet care. Research shows that pet ownership is associated with lower stress, depression, and anxiety. The trust can cover the costs of pet adoption, veterinary care, food, grooming, pet toys and supplies, and training.

● Education and skill-building. Educational programs, classes, or workshops that can help a beneficiary build a skill set and increase their self-confidence may be paid for by the trust.

● Home entertainment and furnishings. Although most housing-related expenses are not allowed from an SNT, many of the items that make a house a home—such as comfortable furniture, stylish décor, and an engaging sound system—are allowed.

● Cultural and religious activities. Use money from the trust to foster participation in cultural or religious events, such as festivals, ceremonies, or annual celebrations that the beneficiary finds meaningful.

Get Help Managing an SNT

SNTs are highly technical and complicated, and administering one for a disabled beneficiary comes with significant responsibility. Not following trust rules can result in the reduction or loss of crucial public benefits.

There may be instances in which a beneficiary’s quality of life is worth more than a reduction in their government benefits. But a trustee must always balance short-term gain with long-term goals whenever they make a distribution, especially if a beneficiary requires Medicaid to pay for their long-term care costs—a central concern for many persons with disabilities. Trustees also have legal duties under general trust law requirements and can face legal action if laws are not carefully followed.

Our estate planning attorneys can help you set up an SNT for a disabled loved one and assist with trust administration, as either trustee or co-trustee or in an advisory capacity. Schedule a consultation to learn more.

Happy 18th Birthday! Now What?

Wed, 11 Dec 2024 14:00:02 GMT

Congratulations! You are now legally an adult. Although you may not feel any different, from a legal standpoint, a great deal has changed.

When you were a minor (under age 18), your parents were your legal guardians responsible for making all your decisions. Now that you are an adult, their legal authority over you is limited, if not completely nonexistent. While this newfound freedom may sound exciting, consider the following:

● Who can access your medical information? As a legal adult, you are protected by the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA). This means that medical professionals can disclose your private medical information only to those individuals you have authorized. If you want your parents to continue having access to this information, you will need to prepare a HIPAA authorization form appointing your parents, or anyone else you designate, as an authorized recipient.

● Whom do you want to make your medical decisions? When you were a minor, your parents generally had the authority to make medical decisions on your behalf. Now that you are an adult, you must formally give them this authority if you want them to continue being able to make medical decisions for you. However, as an adult, you can provide authority for them to make medical decisions for you only if you are unable to communicate or make medical decisions for yourself. You do not have to give your parents this authority. If there is someone else whom you want to make these decisions when you cannot, you are free to name those people instead. You can give them this authority by preparing a medical power of attorney. Not only can you name someone to act on your behalf (an agent), but you can also provide some general guidelines regarding your healthcare wishes.

● Who can handle your financial decisions? Now that you are an adult and your parents cannot take care of your legal or financial affairs, having a durable financial power of attorney in place may also be helpful. Until now, if you needed a parent to withdraw from a bank account or sign something on your behalf, there was no need for any additional steps because they were your legal guardian. However, to allow them to continue engaging in these same tasks, you must grant them the authority through a durable financial power of attorney. Just like with your medical decisions, you do not have to give your parents this authority. You are free to choose whomever you want.

● Who will wind up your affairs when you die? You just turned 18, not 98, but now is a good time to begin adopting some responsible habits and consider what will happen to your money and property when you pass away. You may think you have no assets, but you actually do. For example, in this digital age, each one of your social media accounts is considered an asset. What will happen to these accounts when you pass away? You likely also have tangible personal property (e.g., personal items, collectibles, jewelry), which might have more sentimental than financial value. A will or trust allows you to give what you have to whom you want in the manner you want, no matter the monetary value.

Now that you are an adult, it is time to start thinking and planning for the future like one. The first step is to meet with an experienced estate planning attorney. We are here to help you navigate this next chapter in your life and ensure you are protected.

Business Valuation Basics

Tue, 10 Dec 2024 14:00:07 GMT

If you are a homeowner, you may have some idea of how much your home is worth. If you have a retirement account, you likely check the balance regularly. However, many small business owners do not know the value of their companies.

There are certain circumstances in which obtaining a business valuation is very important, for example, when preparing for a sale, planning for a future exit from the business, or obtaining investors.

A thorough, professional appraisal is important to ensure the valuation’s accuracy. The method an appraiser uses can be tailored to address your specific business and the reasons why you are seeking a valuation.

The Value of Valuing Your Business

Many business owners view third-party valuations as overly complicated, expensive, intrusive, and time-consuming. However, knowing the value of your business is necessary when you are preparing for a sale. In addition, there are a number of other common reasons for obtaining an independent business valuation:

● Exit planning

● Obtaining financing from a lender

● Raising capital from investors

● Insuring the business

● Implementing an owner buyout agreement

● Tax, estate, and succession planning

● Getting divorced and dividing assets

● Uncovering areas for growth and expansion

For some businesses, obtaining detailed business valuations at regular intervals can avoid the expenditure of resources in the wrong places and help identify investments with higher growth potential.

Business Valuation Methods

There are several ways to calculate business value. The three most common approaches to business valuation are asset, income, and market-based approaches.

● Asset-based business valuation. Determining a business’s value using the assets it owns focuses on its book value, which is derived from the balance sheet. Using this approach, business assets—tangible and intangible—are valued and totaled, while liabilities are deducted. Determining the value of intangible assets can be tricky, so obtaining a professional appraisal is important.

● Income-based business valuation. Another common method for valuing a business uses its cash flow figures to project future income generation. Newer businesses and established businesses may use slightly different income-based approaches.

● Market-based business valuation. A market approach to business valuation looks at the purchases and sales of similar local companies. However, one downside of this method is that it could result in a business being undervalued relative to its assets and earnings.

A professional appraiser may determine that a combination of these three methods will provide a fairer and more accurate business valuation.

Involve a Business Lawyer in Important Transactions

There are many online business valuation calculators that provide instant estimates of how much a company is worth. However, these simplified formulations are not a substitute for a professional, credentialed appraiser who can apply the most appropriate methodologies for your industry and circumstances.

Along with a credentialed business appraiser, a lawyer should be part of your team when you are preparing for important transactions such as a sale of the business. Learn the value of an experienced business attorney: contact us today to schedule a meeting.

What to Know When Relying on Life Insurance to Provide for Loved Ones

Thu, 05 Dec 2024 17:29:44 GMT

In an estate plan, life insurance can be used as a source of immediate liquidity for beneficiaries by offering a tax-free, lump-sum payment upon the insured’s death.

About half of Americans have a life insurance policy. The primary reason people purchase life insurance is to fund burial and other final expenses. However, a policy can help pay for much more, such as replacing lost income, paying off debts, equalizing inheritances, and funding a trust.

Most life insurance policies provide flexibility in how the death benefit is paid, but policies do not actually pay out in every situation. If you have life insurance policy coverage, you need to understand the scenarios that can nullify it to ensure that your loved ones receive the financial protection the policy is intended to provide.

How Life Insurance Works

The following key players are involved in a life insurance policy:

● The policyholder is the person who owns the policy and pays the premiums.

● The insured person is the person whose life is covered by the policy.

● The beneficiary is the person or entity designated to receive the death benefit when the insured person dies. The beneficiary can be an individual, a trust, a charity, or a combination of multiple beneficiaries.

The insured person may or may not be the same person as the policyholder.

Life insurance is a contract between the policyholder and an insurance company (the insurer) in which the insurer agrees to pay a death benefit to designated beneficiaries upon the insured’s death in exchange for regular premium payments.

Types of Policies

The three main types of life insurance are permanent life, term life, and employer-provided life insurance.

● Term life insurance offers coverage for a specific period of time (term), with a death benefit paid out only if the insured dies within that time frame.

● Permanent life insurance provides coverage for the insured’s entire lifetime and builds cash value over time, typically with higher premiums than term life insurance. There are two main types of permanent life insurance: whole life and universal life.

● Employer-provided life insurance is a policy offered by an employer to their employees and paid for by the employer. The employer is the policyholder, and the employee is the insured. In many cases, the death benefit will be paid only if the insured is still working for the employer on the date of their death.

Payout Structures

Life insurance is usually paid out as a single lump sum, in installments over time, or through a life insurance annuity. The payment options available depend on the terms of the individual policy and the issuing insurance company. Some permanent life insurance policies also allow the policyholder to access cash value through withdrawals or loans while the insured is alive.

● Lump sum. The most common payout method is a lump-sum benefit paid to the beneficiary in a single payment.

● Installments. The death benefit is distributed in regular payments over a set period.

● Life annuity. The death benefit is used to purchase an annuity, providing a stream of income to the beneficiary for a specified duration.

Life Insurance and Taxes

Beneficiaries generally receive a life insurance payout tax-free, although there are some cases when a death benefit is taxable.

For example, if the payout is set up to be made in installments rather than in a lump sum, the principal is not taxed but any interest that accrues is taxable. The death benefit may also be subject to estate taxes if the total estate value exceeds the estate tax threshold, and the insured person was also the policyholder.

The Importance of Designating the Right Primary and Contingent Beneficiaries

One major benefit of having life insurance with a designated beneficiary as part of an estate plan is that the death proceeds bypass the court-supervised probate process.

However, the death benefit can unintentionally go to the estate in the following situations:

● The policyholder fails to designate beneficiaries.

● Named beneficiaries predecease the insured.

● Beneficiaries cannot or will not accept the death benefit.

This is why it is essential to name primary and backup beneficiaries and carefully consider whom you name for these roles.

Even if the policyholder names beneficiaries, the death proceeds may still become the subject of a probate court proceeding if the designated beneficiaries include minor children or adults who lack mental capacity. Because such individuals cannot legally own assets (property or accounts), a judge may have to appoint someone to manage the death benefit until the beneficiary becomes an adult or can manage it themselves. So even if a beneficiary is designated on a life insurance policy, it is important to consider who that beneficiary is and what the legal consequences of passing assets on to them would be.

What Life Insurance Can Be Used For

A life insurance beneficiary can use the money however they want. It is generally received tax-free, without restrictions on how it can be spent. Even special types of life insurance, such as final expense insurance that is meant to help pay for funeral and burial expenses, can generally be used for any purpose by beneficiaries.

However, you also can set up your estate plan to guarantee that life insurance proceeds are used for a specific purpose. You can do so by naming a trust as the life insurance beneficiary and listing those specific instructions in the trust document.

Life insurance can also be used for the following purposes:

● Pay off mortgages and other debts. Life insurance proceeds can be used to pay off the remaining balance on your mortgage, a credit card or personal loan, or other outstanding debt.

● Fund a trust for your minor child. Minors are not eligible to receive life insurance funds directly. Instead, the money can be directed to a trust that benefits them and is overseen by a trustee. The trust can cover future needs like education costs and living expenses.

● Fund a special needs trust. This type of trust is often established for the benefit of a disabled child or individual and funded through a life insurance policy. It can be structured so that the trust pays only for qualified expenses that do not impact eligibility for means-tested government benefits, such as Medicaid.

● Fund a trust for your surviving spouse. Proceeds from a life insurance policy can also be placed in a trust that benefits your surviving spouse. The death benefit can replace your lost earnings and provide your spouse with financial support.

● Equalize inheritances. You may wish to leave an equal value of money and property to each of your children. If you have property that cannot be easily divided, you can give it to one child and name your other child as the beneficiary of a life insurance policy of a substantially equal amount.

● Ensure business continuity and succession plans. For business owners, a life insurance policy can fund a buy-sell agreement to pay for your share of the business at your death so there is a smooth ownership transition and business continuity.

● Cover estate taxes and settlement costs. Few estates are subject to the federal estate tax due to the current high exemption amounts. However, you might owe income taxes when you die, and some states have their own estate tax and an inheritance tax. There may also be probate fees and court costs. Life insurance proceeds can provide liquidity to pay these taxes and fees without having to sell or liquidate other accounts and property.

In addition, life insurance proceeds can be designated for a certain purpose, including a spousal or child support obligation. Like death benefit proceeds that support a minor child or beneficiary with special needs, death benefits with a directed purpose are best handled through the establishment of a trust.

Why Life Insurance May Not Pay Out

Life insurance is a contract that comes with terms and conditions. Some conditions, called exclusions, allow the insurer to deny payment to beneficiaries when the insured dies. The following are common life insurance policy exclusions:

● Expired policy. Term life insurance will not pay out past the policy’s stated term. It may be possible to renew and extend the policy term, however.

● Leaving a job. Employer or group life insurance is usually dependent on employment, so coverage ends when an employee leaves their job.

● Risky activities. The insurance company may be able to deny a death benefit if the insured died while taking part in risky activities such as skydiving, rock climbing, and scuba diving that are specifically excluded in the policy contract. Certain jobs, such as logging, offshore oil work, and law enforcement, may also fall under this category.

● Illegal activities. An insured’s death that occurs while they are engaging in an illegal activity or committing a crime is usually an excludable event.

● Suicide. Life insurance generally covers death by suicide, but most policies have a “suicide clause” that exempts suicide occurring in the policy’s first two years or a different time frame as defined in the contract.

● Murder. Murder, like suicide, is generally not excluded from life insurance coverage. However, if a beneficiary murders the insured, they will not receive the death benefit; it passes instead to contingent beneficiaries.

● Substance abuse. A policy may exclude deaths resulting from drug or alcohol abuse, including overdose deaths.

● Lying on the application. Life insurance companies decide whether to issue a policy and how much to charge based on the information the insured provides. Not providing accurate information constitutes a material misrepresentation—and insurance fraud—that can allow an insurer to rescind coverage.

Importantly, an insurance company might provide coverage to individuals who engage in risky behaviors or have a high-risk health status (e.g., alcohol and drug use, a family health history of disease, or a diagnosed medical condition) but may charge them higher premiums. Lying about this information on an application could lead to a denial of benefits.

Also, exclusions can change over time according to changing norms. For example, insurers historically excluded aviation accidents from coverage, but this is no longer common practice since private aircraft are now much safer. It is crucial to review the fine print of an insurance policy and understand its exclusions and key terms.

An estate planning attorney can provide guidance about how to integrate life insurance into your plan in a way that meets your financial and legacy goals, whether those goals are to fund trusts with life insurance proceeds, cover estate and income taxes, fund a buy-sell agreement, or provide overall estate liquidity and financial peace of mind. Schedule a consultation to learn more.

Common Estate Planning Myths Debunked

Wed, 27 Nov 2024 13:00:04 GMT

Estate Planning is an often misunderstood and frequently avoided topic. You might think estate planning is only for the wealthy or too complicated and expensive. These are just a few myths surrounding estate planning that I hear often. In reality, estate planning is critical for everyone, including you, regardless of age or financial status.

Many people don’t really understand what estate planning is - even attorneys sometimes don’t really understand it. So, I’ll take this opportunity to set the record straight and debunk some common myths, then explore why you need an estate plan, and how to get the right one, at the right price.

Myth 1: Estate Planning is Only for the Wealthy

One of the most persistent myths about estate planning is that it's only necessary if you have significant wealth or valuable assets. This couldn't be further from the truth. Estate planning isn't about the size of your estate; it's about making sure that when something happens to you - as it will - the people you love aren’t left with a big mess to deal with. Consider this: Do you have a bank account? A car? Personal belongings with sentimental value? A life insurance policy? If you answered yes to any of these, you have an estate. But even more importantly, do you have people you care about? Family members who depend on you? Or people you love who are going to be stuck dealing with your mess, if you don’t take care of these things while you can. If so, you need an estate plan.

Estate planning isn't just about distributing assets. It's about making important decisions that will affect your loved ones. For instance:

● Who will take care of your minor children if something happens to you? And, how will they take care of them?

● Who will make medical decisions on your behalf if you're incapacitated? And, how will they make those decisions?

● Who will manage your digital assets, like email, social media accounts or cryptocurrency?

● Who will make sure your bills get paid?

These questions apply to everyone, regardless of their net worth. By creating an estate plan, you're not flaunting wealth; you're taking responsibility for your life and the people you care about. After all, someone will have to deal with these things. It’s unavoidable. You can do it now and make it easy on your loved ones (and have more control over outcomes), or you can procrastinate it or avoid it altogether, and leave the people you love with a complicated and expensive mess to clean up, if you become incapacitated or after you die.

Myth 2: Estate Planning is Complicated and Expensive

Another common misconception is that estate planning is an overly complex and costly process. While it's true that estate planning involves legal documents and careful consideration, it doesn't have to be overwhelming or break the bank. In fact, we promise to make it as easy as possible for you, at the right budget based on your family dynamics, assets, and needs.

The complexity and cost of your estate plan will depend on your specific situation and goals. Our Life & Legacy Planning process is specifically designed to start with getting you educated and organized, so we can support you to choose the right plan for you and your loved ones.

You can either start with one of our educational presentations or a 15-minute call with our office. From there, we guide you through a Planning Session that will have you relieved at how educated you are. We often hear afterwards, “wow, if I knew I would feel this great after our Session, I would have done this much sooner. I didn’t know working with a lawyer could feel like this.” One of the main purposes of the Planning Session is to look at the cost of the “state’s plan” or your current plan (if you created a will or a trust in the past), and to ensure you are 100% clear about what would happen, if you become incapacitated or when you die. And, then, we look at exactly what you would want, and the cost to create a plan that meets your wishes. You are then able to make an informed, educated decision about what you want to do for yourself, and the people you love.

When you consider the peace of mind and potential savings in time, stress, and money for your loved ones down the line, Life & Legacy Planning is often the best way to save your loved one's time and money, while also creating optimal value and use of your resources, during your own lifetime. Think of it as insurance for your legacy – a small cost now can save your loved one's significant trouble and expense later.

Myth 3: I'm Too Young to Need an Estate Plan

You might think estate planning is something you can put off until you're older, but this is a dangerous assumption. Life is unpredictable, and having an estate plan in place is crucial regardless of your age.

If you're a young adult, you might not have accumulated much wealth yet, but you still have important decisions to make. For instance:

● Who will manage your social media accounts if something happens to you?

● Who will take care of your pets?

● If you have a small business or side hustle, what will happen to it?

● Who will be responsible for paying off your student loans or other debts?

Moreover, estate planning becomes even more critical if you're a young parent. Your estate plan can designate guardians for your children and set up trusts to manage any assets they might inherit. Without these provisions, the court may have to decide who raises your children, leading to family disputes and potentially placing your children with someone you wouldn't have chosen.

Even if you're single with no dependents, an estate plan is critical, maybe even more so because it’s up to you to determine who will care for you, if you cannot care for yourself. You really don’t want to leave that to a judge to decide. Your plan will ensure your wishes are respected if you become incapacitated, designate who will make medical decisions for you, and specify how you want your assets distributed. This can prevent potential conflicts among family members and ensure your hard-earned assets go to the people or causes you care about most.

Remember, estate planning isn't about planning for your death; it's about planning for life, and the uncertainties sure to come. It's about taking control of your future and caring for the people and things you love, no matter your age.

Myth 4: Once I Create an Estate Plan, I'm Done

Another common misconception is that estate planning is a one-time event. In reality, your estate plan should evolve as your life changes. Major life events that might necessitate updates to your estate plan include:

● Marriage or divorce

● Birth or adoption of children

● Death of a beneficiary or executor

● Significant changes in your financial situation

● Purchase of a home or other major asset

● Starting a business

● Moving to a different state

Even if you haven't experienced any major life changes, it's important to review your estate plan at least every three years, though we recommend you review your assets and how they are titled, annually. Laws change, and what was optimal a few years ago might not be the best strategy now. For example, the Tax Cuts and Jobs Act of 2017 significantly increased the federal estate tax exemption. If your estate plan was created before this change, it might need adjusting to take advantage of the new tax laws.

Regular reviews also give you a chance to reconsider your choices. Maybe the person you initially chose as your children's guardian is no longer the best fit. Or perhaps your financial situation has improved, and you'd like to include charitable giving in your estate plan.

Keeping your estate plan up-to-date ensures it continues to reflect your wishes and provides the best possible protection for your loved ones. Think of it as a living document that grows and changes with you, rather than a static set of instructions. It’s so important that we include regular reviews at least every three years in all our Life & Legacy Plans, and have systems to keep your plan up to date.

As we observe National Estate Planning Awareness Week, it's time to move past these myths and recognize the true value of estate planning. It's not a luxury for the wealthy, a complex process beyond your reach, or something you can put off until later in life. It's a fundamental aspect of responsible financial planning that everyone should consider. By creating and maintaining an estate plan, you're taking control of your legacy, ensuring your wishes are respected, and providing invaluable peace of mind for yourself and your loved ones. Don't let misconceptions hold you back – consult with a qualified estate planning attorney today and take the first step towards securing your future.

How We Help You Take Action Today

Don't let common estate planning myths prevent you from securing your future. We help you create a comprehensive Life & Legacy Plan that goes beyond basic estate planning. We'll outline strategies for your assets, prepare for potential incapacity, and ensure your family is cared for, even if the unexpected happens. Our approach includes regular reviews to keep your plan current with life changes, and we even help capture family memories and traditions. With our guidance, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your property protected.

Take the first step towards peace of mind - click here to schedule a complimentary 15-minute consultation and learn how we can help you create your personalized Life & Legacy Plan.

The Independent Contractor Dilemma: Navigating Risks and Rewards

Tue, 26 Nov 2024 13:00:03 GMT

In today's rapidly evolving "gig economy," you might be torn between hiring full-time employees or independent contractors (ICs). This choice carries significant implications for your business, affecting everything from your bottom line to your legal obligations. Understanding the pros and cons of hiring ICs and knowing how to protect your business becomes crucial as the work landscape shifts. This article will guide you through the benefits and pitfalls of working with ICs and provide essential steps to safeguard your business from potential legal and financial risks.

The Allure of Independent Contractors

When you're running a business, especially a small or growing one, hiring ICs can be very appealing. Here's why:

Financial Savings: One of the biggest draws of hiring ICs is the potential for significant cost savings. When you bring on an IC, you're not responsible for payroll taxes, Social Security contributions, Medicare taxes, or unemployment insurance. You also don't have to provide benefits like health insurance, paid time off, or retirement plans. While you might pay an IC a higher hourly rate than an employee, you often save money in the long run due to these reduced overhead costs.

Flexibility: ICs offer you a level of staffing flexibility that's hard to match with full-time employees. You can bring them on for specific projects or during busy periods, then part ways when the work is done. This flexibility is particularly valuable when you're just starting out and aren't sure about your long-term staffing needs. It allows you to scale your workforce up or down quickly in response to market demands.

Reduced Legal Liability: When you hire ICs, you face less legal liability in many areas. Employees have a wide range of legal protections and can bring various employment-related lawsuits against you. ICs, on the other hand, have fewer legal protections. They can't sue for wrongful termination or employment discrimination, for example. This reduced liability can provide you with some peace of mind.

The Hidden Costs and Risks

While the benefits of hiring ICs are clear, there are also significant risks and potential downsides you need to consider:

Loss of Control: When you hire an IC, you're giving up a lot of control over how the work gets done. You can specify the end result you want, but you can't dictate the methods or processes the IC uses to achieve that result. If you're someone who likes to have a hand in every aspect of your business, this loss of control can be frustrating.

Increased Audit Risk: The IRS and other government agencies are on high alert for businesses that misclassify employees as ICs. By using ICs, you automatically increase your chances of being audited. These audits can be time-consuming, stressful, and potentially very costly if you're found to have misclassified workers.

Potential for Costly Mistakes: If you misclassify an employee as an IC, even unintentionally, the consequences can be severe. You could end up owing back taxes, penalties, and even face criminal charges in extreme cases. The financial impact of these mistakes can be devastating, especially for small businesses.

Protecting Your Business: Essential Steps

Given the potential risks, taking steps to protect your business when working with ICs is crucial. Here are three key steps you should take:

Conduct Regular Internal Audits: Don't wait for the IRS or Department of Labor to come knocking. Regularly review your classification practices to ensure they're up-to-date and compliant. Look at each IC relationship and ask yourself: Do you control how the work is done, or just the end result? Does the IC work exclusively for you, or do they have other clients? Do they use their own equipment and set their own hours? These questions can help you determine if your classifications are appropriate.

Use Well-Crafted Contracts: Every IC you work with should have a clear, written contract. This contract should spell out the scope of work, payment terms, and the independent nature of the relationship. It should clearly state that the IC is responsible for their own equipment, expenses, and taxes. If you're dealing with creative work, make sure to include a "work for hire" clause to ensure you own the rights to the work product. Don't rely on generic templates - have a lawyer review your contracts to ensure they provide maximum protection.

Implement and Enforce Your Policies: It's not enough to have policies and contracts in place - you need to follow them consistently. Make sure your day-to-day practices align with the independent nature of your IC relationships.

Don't treat ICs like employees by giving them company email addresses, requiring them to work set hours, or providing them with extensive training. Remember, it's not just what's on paper that matters - government agencies and courts will look at the reality of the working relationship.

Final Thoughts

Working with independent contractors can offer your business significant benefits, from cost savings to increased flexibility. However, it also comes with risks that need to be carefully managed. By understanding both the advantages and potential pitfalls of hiring ICs, and by taking proactive steps to protect your business, you can navigate this complex landscape successfully.

Remember, the key is to be intentional and consistent in your approach to working with ICs. Regularly review your practices, use clear contracts, and make sure your day-to-day operations reflect the independent nature of these relationships. When in doubt, don't hesitate to seek professional legal advice. The investment in proper guidance can save you from costly mistakes down the road.

The Advisor You Need When Decisions Matter

We understand the complexities and potential pitfalls of managing independent contractors in your business. That's why I offer a comprehensive LIFT Business Breakthrough Session where we'll analyze your current business foundations - including protecting your business from the risks associated with misclassifying workers and managing ICs. Together, we'll develop a plan to address any gaps in your practices and ensure that your business is well-equipped to handle the challenges of the modern workforce. With our support, you can confidently engage with independent contractors, safeguard your business from potential legal and financial risks, and focus on what you do best—growing your business.

Book a call here to learn more and get started today.

A Power of Attorney May Not Be What You Think

Wed, 20 Nov 2024 13:00:03 GMT

If you've ever considered planning for your future or helped someone plan for theirs, you've probably heard the term "power of attorney." But do you really know what it is? The terms “power” and “attorney” carry weight but may not mean what you think. In fact, there are many misconceptions about what a power of attorney is and what authority it gives to someone. And no, it doesn’t grant someone a temporary law degree.

In this article, I’ll address the misconceptions about powers of attorney, so you have clarity about what to do if someone appoints you as their power of attorney. Then, armed with this knowledge, you’ll understand your legal responsibilities, so you don’t inadvertently make any mistakes or run afoul of the law.

Let’s start with a little background info. If a power of attorney doesn’t confer attorney status, then why is it called that?

What is a Power of Attorney?

Generally speaking, a power of attorney is a legal document granting someone else the authority to act on your behalf regarding your financial life. The term "power of attorney" is a bit of a historical holdover. Originally, powers of attorney were primarily used to appoint lawyers to represent individuals in legal matters. However, over time, the concept has expanded to include appointing someone to act on your behalf for various purposes.

So, while you don't need to be an attorney to hold a power of attorney, the term has continued due to its historical origins. Granting power of attorney is a way to indicate that an appointed person has the authority to act as your agent or representative, similar to the way an attorney would act on your behalf.

Not everyone wants someone to act on their behalf to manage their financial affairs. In fact, I’d venture that most people don’t. But there are times when it’s necessary in order to preserve your assets, especially if you reach a point in life when you are unable to manage your own financial, legal or healthcare matters, whether from old age, a terrible accident or simply being out of the country for that year-long trip you’ve been planning for years. In each of these cases, it’s possible that if you don’t have someone acting on your behalf, problems could occur. Your financial institutions could charge extra fees on your accounts, a fraudster could drain your accounts, and you wouldn’t know it happened, taxes could go unpaid, your property could go into foreclosure, or your credit ruined. So, to prevent these horrific outcomes, you want someone else to be able to maintain your financial life on your behalf.

Types of Powers of Attorney

We don’t need to get too much in the weeds here (if you want to get in the weeds, though, read to the end and I’ll show you how to book a call with me), know that there are different types of powers of attorney, each with its own specific purpose. Here are some examples:

General Power of Attorney: This grants the agent broad authority to act on your behalf, including managing your finances and signing legal documents, even if you’re capable of handling your affairs. It becomes effective as soon as you execute the document. When might you want this? Say you travel for work and you, and your spouse have decided to refinance your mortgage. You may want your spouse to sign the paperwork on your behalf, rather than waiting for a time you’re back in town.

Springing Power of Attorney: This also grants authority to someone to manage your financial and legal affairs. You can execute the document whenever you want, but it doesn’t kick in until you’re no longer able to make your own decisions.

Durable Power of Attorney: This is a type of general power of attorney that remains in effect even if you become incapacitated. Think of it as the General and Springing Powers of Attorney combined.

Limited Power of Attorney: This grants the agent authority to handle specific tasks only, such as managing your property or making healthcare decisions.

Healthcare Power of Attorney: This grants your named agent authority to make medical decisions on your behalf.

Even though each of these documents operates differently, they all have one important thing in common: the agent’s power ends as soon as you die.

What No One Told You About a Power of Attorney: It Ends with Death

You may mistakenly believe that a power of attorney gives someone the right to access your financial accounts indefinitely. However, this isn't the case. A power of attorney is a temporary arrangement that ends when the person who granted the power dies. What does this mean, exactly?

Let’s say your aging mother can no longer manage her affairs and she executed a Power of Attorney to give you the authority. While she’s living, you can access her bank accounts to make sure all her bills are paid and paid on time. But as soon as she dies, you no longer have the legal authority to access any of her accounts. If she had a Will or no estate plan at all, you would have to file paperwork with the probate court and wait for the case to make it through the court system until the judge grants you authority again. In the meantime, if you can’t afford to cover her bills along with your own, you may have to make the difficult decision to let her bills go unpaid. If she still has a mortgage on her house, for instance, and you can’t pay her mortgage and yours, too, the bank could begin to fore lose, and you could lose any equity she had. This equity could have been a significant part of your inheritance.

Going to court can be a frustrating and time-consuming process, and if you haven’t planned appropriately, you can suffer negative consequences. But there’s a silver lining. You and your loved ones can avoid probate court, and maintain access to the other’s finances, if you create a Life & Legacy Plan.

The Good News

With some careful planning ahead of time, you can ensure all your bills get paid and your assets are preserved for your loved ones. The way to do that is by creating a Life & Legacy Plan with a living trust. A trust is a legal arrangement that allows you to transfer your assets to a trustee, who manages them for the benefit of your beneficiaries. Importantly, a trust survives your death, so there’s no disruption in the ability for someone to manage your finances after you die.

You may have seen ads on the internet, or maybe your financial advisor has offered to draft a trust for you. And you may have the impression that a trust is a simple document you can get for little to no money. But I want to empower you with some education before deciding to go one of these routes. A trust is a legal document with legal consequences, and even lawyers who’ve gone to law school, passed the bar, and practiced law for awhile find that trusts are more complicated than they first thought. If you draft a trust yourself or with someone who isn’t a lawyer who specializes in this area of the law, you’re taking a big chance with your money and your family. I see these cases often, and usually, the trust isn’t worth the paper it’s written on.

You owe it to yourself and your loved ones to ensure your power of attorney, trust, and related estate planning tools are created correctly and updated over time, and that you understand the benefits and consequences of your plan.

When you work with me to create a Life & Legacy Plan, I’ll empower you with the education you need so you can make the right choices for yourself and your family, that you fully understand how your plan works, and that your family has my support after you’re gone.

How We Help You Preserve What Matters

Understanding the limitations of a power of attorney and the benefits of a trust is crucial for protecting your hard-earned assets. We specialize in helping individuals like you create a Life & Legacy Plan that addresses your unique needs and provides peace of mind, no matter what happens. Once your plan is in place, you can rest easy knowing that your wishes will be honored, your loved ones cared for, and your property protected.

Click here to schedule a complimentary 15-minute consultation to learn more and start your journey toward a secure financial future:

Who Should Be Your Successor Trustee?

Wed, 13 Nov 2024 13:00:04 GMT

If you have a revocable living trust, you probably named yourself as the initial trustee so that you can continue to manage your financial affairs. However, someone else will eventually need to step in to administer your trust when you are no longer able to act due to incapacity (the inability to manage your affairs) or after your death. This person is known as your successor trustee.

Key Takeaways

● Because successor trustees hold great responsibility, you should choose them carefully.

● Successor trustees can be an adult child, a family member, a trusted friend, a corporate or professional trustee, or a financial institution.

Responsibilities of a Successor Trustee

At incapacity. If you become incapacitated during your lifetime, your successor trustee will take full control over the administration of your trust for you, making financial decisions, selling or refinancing property, and completing other tasks related to your trust’s accounts and property. Your successor may also be involved in paying bills and ensuring you get any care you need. Since your successor trustee can only manage accounts and property that the trust owns, it is important that you fully fund your trust (in other words, transfer or retitle your accounts and property to your trust). When you are no longer serving as the trustee of your revocable living trust, it does not mean you will no longer benefit from the assets held within your trust. You will remain a beneficiary of the trust until you pass away.

After death. After you die, your successor trustee will act similarly to an executor of a probate estate. The successor trustee will inventory the trust’s accounts and property, pay your final bills, sell trust property if necessary, have your final tax returns prepared and filed, and distribute the trust’s accounts and property according to the trust’s instructions. As in the case of your incapacity, the successor trustee is limited to managing accounts and property owned by the trust, so fully funding your trust is crucial.

Your successor trustee will typically act without court supervision, which allows your affairs to be handled privately and efficiently. This is probably one of the reasons you established a living trust in the first place. However, this also means it will be up to your successor trustee to initiate the administration of your trust and keep the process moving fairly so that no one brings an action in court that will cause court supervision.

An Important Consideration

Your successor trustee’s ability to control and manage the trust’s accounts and property is dictated by the trust’s instructions. In carrying out their duties and making investment and management decisions, the successor trustee must act carefully to avoid breaching their fiduciary duties. Fiduciary duties are a set of rules under state law that ensure any action taken by a fiduciary (here, the successor trustee) is in the best interest of the trust beneficiaries and complies with the law.

Who Can Be a Successor Trustee

A successor trustee can be an adult child, a family member, a trusted friend, or a professional or corporate trustee (for example, a bank trust department or trust company). You should name multiple backups in case your first choice is unable or unwilling to act.

The successor trustee does not need to know exactly what to do and when because they can seek counsel from an attorney, certified public accountant, or other advisor to assist them in their responsibilities. Nevertheless, you must name someone responsible, conscientious, and willing to seek professional guidance when warranted.

What You Need to Know

Your successor trustee should be someone you know and trust, whose judgment you respect, and who will also respect your wishes.

When choosing a successor, keep in mind the type and number of accounts and property in your trust and the complexity of the provisions within your trust document. For example, if you plan to hold accounts and property in a continuing trust for your beneficiaries following your death, your successor trustee will have more responsibilities for a longer period than if your accounts and property were given to your beneficiaries immediately upon your death.

● Consider your candidates’ qualifications, including personalities, financial or business experience, and availability due to family or career demands. Being a successor trustee can take a substantial amount of time and requires a certain business sense.

● Discuss this nomination with the people you are considering to ensure they would be willing to take on this responsibility. Do not assume they would accept this role without having been educated on what is involved.

● Trustees should be paid for their work; your trust document should provide fair and reasonable compensation for successor trustees. If you nominate a professional or corporate trustee, they will have their established rate for trust work.

Rest assured, we can help you select, educate, and advise your successor trustees. You are not alone in making this important decision. If you have any questions or concerns, please schedule an appointment with us.

The Corporate Transparency Act and What It Means for Your Small Business

Tue, 12 Nov 2024 13:00:04 GMT

You’ve poured your heart and soul into building your small business. You’ve worked tirelessly, made sacrifices, and taken risks. Now, a recent law could impact how you operate. It’s called the Corporate Transparency Act (CTA).

This law, passed in 2021, aims to crack down on financial crimes like money laundering and tax evasion by requiring many businesses to disclose information about their owners. While this might sound like an added burden, it’s essential to understand how it affects you and what steps you can take to comply. In this article, I’ll break down the basis of the law, its potential impacts on your business, and what you need to know to comply with the CTA’s provisions. I’ll also show you how to get support to ensure your business is compliant. Let’s get started.

CTA Basics: What You Need to Know

The CTA is based on lawmakers’ concern about the role of shell companies in facilitating illicit activities. These shell companies are often used to disguise the true ownership of assets, making it difficult for law enforcement to trace the flow of money. Therefore, the core purpose of the CTA is to collect beneficial ownership information. You’ll need to provide details about the individuals who ultimately own or control your business. This includes names, dates of birth, addresses, and passport or government-issued ID numbers.

You’ll also need to provide information about your business, such as its legal name and address and the name and address of a company applicant (usually the person who formed the company). By requiring businesses to disclose their beneficial owners, the government aims to shine a light on shadowy operations. This increased transparency is expected to deter criminals and make investigating and prosecuting financial crimes easier.

Moreover, while the CTA casts a wide net, it doesn’t impact every business. It targets corporations and limited liability companies (LLCs) that operate in the United States. However, the definition is broader than just these types of entities. Any business formed by filing paperwork with a state or tribal government is likely covered. That most likely means your business is subject to the law. One general exception is a business structured as a sole proprietorship or partnership. But it’s always a good idea to double-check to be sure. To do so, you can schedule a call with me using the link below.

Impacts on Small Businesses

While the primary target of the CTA is to combat large-scale financial crimes, it also has implications for small businesses. The added administrative burden of collecting and submitting ownership information can be time-consuming and costly. There are also concerns about the potential for misuse of the data collected. While the government has implemented safeguards to protect this sensitive information, there's always a risk of data breaches or unauthorized access. This could lead to identity theft, fraud, or other harmful consequences for businesses and individuals.

How to Comply With the CTA

Now that you know the purpose of the CTA, how it works, and the impacts on your small business, let’s turn to compliance. To ensure your business is compliant with the CTA, you should take the following steps:

Determine if your business is subject to the law: Understand the specific requirements based on your business structure and formation date. As your LIFTed Business Advisor, I can help. Book a call with me using the link below and I’ll show you how to get your questions answered.

Gather necessary information: As I outlined above, collect the required details about your business and its beneficial owners.

Choose a reporting method: Decide how you will submit the information to the Financial Crimes Enforcement Network (FinCEN), the government agency responsible for administering the law. This can be tricky, so don’t go it alone. Contact me and I’ll support you with this.

Maintain records: Keep accurate and up-to-date records of the information you provide. If you work with me, I’ll also support you with this. I’ll not only keep your information on file so it’s readily accessible if needed, but I’ll also support you on an ongoing basis to help keep you accountable for maintaining accurate records.

Stay informed: Stay current on any changes or updates to the law or regulations. When you work with me, I’ll do this for you and notify you when any changes affect your business, so you’ll never have to worry if your business is at risk.

While these steps provide a solid foundation for compliance, it's essential to understand the potential consequences of non-compliance. Failing to meet the CTA's requirements can result in significant penalties, including hefty fines and even imprisonment in severe cases. The penalties for failure to comply include:

Civil penalties: Businesses that fail to report required information about their beneficial owners or report incorrect or incomplete information face fines of up to $500 per day until the violation is corrected. These fines can quickly accumulate, leading to significant financial burdens.

Criminal penalties: In cases of willful or fraudulent non-compliance, individuals involved can face fines of up to $10,000 and imprisonment for up to two years.

As you can see, the consequences of noncompliance - even if it's accidental - are too significant to ignore. Book a call with me right away, and let me give you peace of mind, knowing your business won’t be subject to penalties.

Your Next Step

Even though the CTA became law in 2021, the government didn’t start accepting filings until January 1, 2024 . Therefore, 2024 is the first year you’re required to submit your information. And the filing deadlines are approaching quickly. Existing companies registered to do business in the U.S. before January 1, 2024, must file by January 1, 2025. Companies that were created or registered in 2024 have 90 calendar days to file after receiving actual or public notice that their company’s creation or registration is effective (this information comes from your State’s Secretary of State, not the federal government).

Your next step, then, is to book a call with me, your LIFTed Business Advisor. Together, we’ll determine whether your business is subject to the law, what information you must provide, and when you must provide it. Then, we’ll create a strategy for ensuring your business complies with the CTA. Furthermore, we’ll set you up for support on an ongoing basis so you won’t have to worry about future compliance. I want to take the burden off your shoulders so you’re free to focus on what matters: growing your business.

How We Support You to Ensure Your Business is Never at Risk

We understand the complexities of navigating new regulations like the CTA can pose for your small business. These changes can introduce uncertainties and potential risks that can divert your focus from growth. That's why I offer a comprehensive LIFT Business Breakthrough Session where we'll assess your business's overall health, including its compliance systems. Together, we'll develop a tailored plan to address any vulnerabilities and ensure your business is not only compliant with all applicable laws and regulations but also positioned for continued success. With my guidance, you can confidently navigate this new landscape and achieve your business goals.

Book a call here to learn more and get started today.

Should Your Child’s Guardian and Trustee Be the Same Person?

Wed, 06 Nov 2024 13:15:06 GMT

If you have overheard any estate planning discussions, you have likely heard the words “guardian” or “trustee.” In estate planning, deciding who will ultimately be tasked with caring for your minor child or managing funds for their benefit is an important decision that requires consideration of many factors.

Although there is no substitute for you as a parent, a guardian is someone who steps in when you pass away to assume your parental role and raise your minor child through legal adulthood. Conversely, a trustee manages the financial legacy you leave behind for your minor child. As a parent, you need to consider the skills and characteristics each role requires to ensure that you nominate the right people for the benefit of your child and their inheritance.

Who Makes a Good Guardian?

When choosing a guardian, the top consideration is who will love and raise your child like you would. Keep in mind the potential guardian’s religious beliefs, parenting style, interest in extracurricular activities, energy level, and whether they have children. You may want to consider where the individual lives and whether they have the capacity to provide daily love, care, and support for your child.

Who Makes a Good Trustee?

While the guardian you choose may be great at caring for your children, they may not be great at managing money. For this reason, it may make sense to place the financial management of your child’s funds in someone else’s hands. The person responsible for managing your child’s inheritance is the successor trustee or trustee. Not surprisingly, when choosing a trustee, the most important characteristic is that they manage finances well. However, they often do not need specialized knowledge or training. This individual can seek assistance from financial professionals should the need arise. The trustee must be able to manage the funds in accordance with your intent and pursuant to the trust’s instructions.

Consider whether your potential trustee will agree and comply with the way you have structured the payout plan for your child’s inheritance (for example, giving your child a portion of their inheritance at different ages). If they do not agree with your wishes, it may be difficult for them to enforce them. Likewise, if you want to give your successor trustee discretion in managing funds and distributing inheritances rather than setting forth ages at which distributions are to be made, you should ensure that your trustee will use their discretion in alignment with your intent. In short, you want to choose a trustee to manage your child’s inheritance who will act in your minor child’s best interest within the limits you have set forth in your estate plan documents.

Should They Be Different People or the Same?

Whether you select the same person to act as guardian for your minor child and successor trustee for your child’s inheritance will likely be based on the ability and capacity of the specific person. Some people may have the skills required to manage both roles effectively, which can simplify certain aspects of the process because the guardian will not have to go to someone else to request distributions to care for your minor child.

On the other hand, not every person can do both jobs. With two different people serving in these roles, you can ensure that you have the right person for each job if one person is not ideal for both. Also, some individuals choose to designate a guardian from one spouse’s family and a trustee from the other spouse’s family to establish a system of checks and balances. This approach ensures that both sides of the child’s family are equally involved, and each individual remains accountable. If you choose two different people for the roles of guardian and trustee, consider how the two get along, as they will likely have to work together and coordinate frequently while your child is under the age of majority.

Seek Help to Make Your Decision

While the estate planning process can be daunting, it does not have to be. Contact a knowledgeable estate planning attorney to help guide you through this process. We can explain your options and help you determine the best plan that will follow your wishes while meeting your family’s needs.

The Perils of Joint Property

Wed, 30 Oct 2024 13:00:02 GMT

People often set up bank accounts or real estate so that they own them jointly with a spouse or other family member. The appeal of joint ownership, specifically with survivorship rights, is that when one owner dies, the other owner(s) will automatically inherit the property without it having to go through probate. Also, joint property ownership is easy to set up. It can be established at the bank when opening an account, through the title company when buying real estate, or, in some cases, after creating an account or purchasing real estate.

While this may seem like an attractive option for succession planning, joint ownership also has the potential to cause disastrous unintended consequences and complications. Consider some of these important facts before adding someone as a joint owner to an account or piece of property.

The other joint owner’s debts may become your problem.

Any debt or obligation incurred by the other joint owner could affect you. If the joint owner files bankruptcy, has a tax lien, or has a judgment against them, you could end up with a new co-owner一your old co-owner’s creditors! For example, if you add your adult child to the deed on your home and they have debt you do not know about, your property could be seized to collect that debt. Although “your” equity of the property will not necessarily be taken, that is little relief when your home is put on the auction block!

Your property could end up going to someone you did not intend.

Blended family structures have the potential to result in situations that can be difficult or impossible to navigate when someone dies. If you own your property jointly with your spouse and you die, your spouse gets the property. That may seem like what you intended, but what if your surviving spouse remarries? Your home could become shared between your spouse and their next spouse. This gets especially complicated if there are children involved: Your property could conceivably go to the children of your spouse’s next marriage rather than, or in addition to, your own children.

You could accidentally disinherit family members.

If you designate someone as a joint owner and you die, you cannot control what they do with your property after your death. Perhaps you and your adult child co-owned a business. You may state in your will that the business should be equally shared with your spouse or divided between all of your kids; however, the rights of joint owners take priority over the terms of your will, meaning the joint owner will now have full ownership and control over the property.

You could have difficulty selling or refinancing your home.

All joint owners must sign off on a property sale. Depending on whether the other joint owner agrees, you could end up at a standstill from the sales perspective一that is, unless you are willing to take the joint owner to court to force a sale of the property. (No one wants to sue their family members, not to mention incur the cost of the lawsuit.)

What if your joint owner becomes unable to manage their affairs through accident or illness and does not have a durable power of attorney in place? In that case, you may have to go to court to have a guardian or conservator appointed to represent the joint owner’s interest in the sale. Even if you and your joint owner always worked together to make decisions, an appointed guardian may see their fiduciary responsibility as it relates to protecting the other joint owner’s financial interest differently, which might mean going against you and your wishes.

You might trigger unnecessary capital gains taxes.

When you sell a home for more than you paid for it, you usually pay capital gains taxes based on the increase in value. Therefore, if you make your adult child a joint owner of your property and you sell the property, you are both potentially responsible for the resulting taxes. Your adult child may be unable to afford a tax bill based on decades of appreciation.

On the other hand, beneficiaries who inherit property at the owner’s death only pay capital gains taxes if and when they decide to sell the property. These taxes are based on the increase in value from when they inherited the property (the date of the owner’s death), not from the day the original owner first acquired it. People worry about estate taxes so much that they forget about income taxes. In this scenario, setting up your property to transfer through inheritance (rather than joint ownership) could save your loved ones a fortune in income tax. And with the often-generous estate tax exemption, most of us do not have to worry about estate tax; income and capital gains tax, however, can hit almost anyone.

You could cause your unmarried partner to have to pay a gift tax.

If you add your unmarried partner as the joint owner of your home, the Internal Revenue Service will consider that transfer of ownership to be a taxable gift to your partner. This can create needless paperwork and, depending on the value, the owing of gift taxes.

So what can you do? These decisions are too important and complex to work through without the support of someone who routinely works in this area and understands the implications of joint ownership. Consult a law firm that specializes in estate planning. A good lawyer will help you decide how to manage your property to meet your needs and goals.

Our team can assist you in planning to reduce estate taxes, avoid potential legal pitfalls, and set up a plan to protect your loved ones. We understand not only the legal issues but also the complex relationships that can be involved in estate planning. We will listen to your concerns and help you develop a plan that gives you peace of mind while achieving your goals for your family. Contact us today for a consultation.

Preventing Family Feuds Over Your Personal Belongings

Wed, 23 Oct 2024 13:00:02 GMT

The passing of a loved one is a heartbreaking event, filled with grief and sorrow. But the aftermath can become even more painful if disagreements over their personal belongings tear your family apart. These disputes, especially when centered around meaningful objects, can leave lasting wounds that may never fully heal.

But it doesn't have to be this way. By understanding the emotional weight of possessions, the power of perception, and taking proactive steps, you can prevent such heartache and foster a more harmonious grieving process for your family. In this article, we'll explore practical strategies to ensure your final wishes are honored and your loved ones stay united, even in the midst of loss.

Perception Is the Basis for Conflict

Your personal belongings are so much more than just material objects. They are tangible reminders of your life, personality, and connection to the people you hold dear. When you're gone, these items can provide immense comfort and solace for your grieving family members. However, the emotional ties to your possessions can also set the stage for conflict.

The basis for conflict over your belongings is usually rooted in perception, meaning your family members have very different ideas about the value and significance of your possessions. What one person deems a priceless keepsake, another might dismiss as mere clutter. These differences in perspective can create tension, resentment, and even damage relationships that have lasted a lifetime.

Adding to the complexity is that certain items are inextricably linked to specific memories and experiences. That piece of jewelry may remind one of your children of the love and care you showered upon them. However, to others, it may represent an inheritance they feel entitled to. The emotional attachments to your personal property often run deeper than anyone realizes, reflecting unresolved feelings of love, guilt, or regret.

Your family members' perceptions of your belongings are also profoundly shaped by their own experiences, values, and cultural backgrounds. These differences in worldview can make it incredibly challenging for them to reach a consensus when it comes time to divide their inheritance.

For instance, in some cultures, family heirlooms are passed down through generations with reverence and care. These objects are seen as symbols of shared history and identity. However, in other traditions, material possessions hold far less significance, with the focus placed squarely on intangible connections. When relatives from diverse backgrounds attempt to navigate the division of your estate, these clashing perspectives can lead to misunderstandings and conflict.

Perception also influences how your loved ones view the concept of fairness. One child may feel entitled to certain items due to their role as a primary caregiver or because they lived closer to you. Another may believe everything should be distributed equally, regardless of individual circumstances. These divergent notions of justice can further fuel disputes, especially if you don't leave behind clear instructions.

The Value of Open Communication and Thoughtful Planning

To minimize the risk of family feuds over your personal property, one of the most effective things you can do is have open and honest conversations about expectations and preferences long before you're gone. Here are some strategies to consider:

Start the Conversation Early. While it may feel awkward to discuss such sensitive topics, it's far better to address them proactively. This allows for a more thoughtful and deliberate discussion of everyone's wishes. Ideally, these conversations should occur when all parties are calm and emotionally prepared rather than in the midst of grief.

Record Yourself. Don’t underestimate the value of getting on video. Recording yourself explaining your wishes and why can be very powerful, as well as provide clarity and decrease conflict for your loved ones. When you create your estate plan with my firm, we include a Life & Legacy Interview with every plan so that your decisions and the reasons for them are clear to your family members. When there’s no ambiguity, the possibility of conflict lessens.

Make an Inventory. Make a comprehensive list of all your personal belongings, including their sentimental value and any specific requests or wishes you have associated with them. This inventory can be a crucial reference point for your family members after you’re gone. If possible, involve your loved ones in this process so that they understand your wishes and can ensure your voice is heard.

Create a Life and Legacy Plan. A Life and Legacy Plan can minimize disputes by clearly outlining your wishes regarding distributing your personal property. In addition to the Life & Legacy Interview, every plan includes a document called a “personal property memorandum,” which provides additional clarity, specifying which items should go to which beneficiaries. We even help you keep your plan updated over time to reflect changing circumstances or preferences and prevent family conflict.

Focus on Your Family’s Needs. Ultimately, the goal of your planning should be to honor your memory and support the well-being of your loved ones. Prioritize the needs of those who are grieving and try to find solutions that minimize conflict and pain. Sometimes, creating a process where each family member can express their attachment to specific items and why they matter can help others understand their emotional value rather than just their monetary worth.

Helping Your Family Sell Your Belongings with Care and Intention

Sometimes, your loved ones may need to sell your personal property, which may be necessary to settle your estate, pay debts, or ensure that your items are put to good use. Whether the items sold hold sentimental value or not, this can be another task ripe with conflict. Further, many family members don’t know what the process entails. But you can help make it easier for them by doing a lot of legwork now.

You can specify in your Life & Legacy Plan how you want your items to be sold and outline the process for your loved ones. Here are the steps your family will need to take:

Assess the True Value of Your Items. Start by evaluating the worth of the items to be sold. This may involve hiring an appraiser, especially for valuable items such as antiques, artwork, or jewelry. An appraiser can provide an objective assessment of an item's value, which can help prevent disputes over perceived worth and ensure a fair sale.

Choose the Right Selling Method. Depending on the type and value of your belongings, your loved ones will need to choose a selling method. For everyday household items, a yard sale or estate sale might be appropriate. For more valuable items, an auction house, consignment shop, or online marketplace may be the way to go. Your family should be mindful of any fees or commissions associated with these approaches, too.

Enlist the Help of an Estate Sale Company. If your estate contains a large number of items or your family is overwhelmed by the process, hiring a professional estate sales company can be a game-changer. These companies handle everything from pricing items to advertising the sale, managing the event, and disposing of any unsold items. They typically charge a percentage of the sales, but their expertise can make the process smoother and less stressful.

Understand the Legal Requirements. Depending on your jurisdiction, there may be specific legal requirements for selling estate property. For example, an executor may need court approval to sell certain assets or follow particular procedures for notifying beneficiaries. When you create your Life & Legacy Plan with us, we will be there for your family when you no longer can be, and we can advise them on all the necessary legal requirements.

Plan for the Proceeds. Decide in advance how the proceeds from the sale will be used and document your wishes in your Life & Legacy Plan. We can help you specify whether they will be distributed among your heirs, used to pay off estate debts, or donated to charity. This precise planning that’s part of our Life & Legacy Planning process helps avoid disputes and ensures that the funds are used in a way that honors your wishes.

Leave a Legacy of Harmony, Not Conflict

Family disputes over your personal belongings can add immense pain to an already difficult time. But by understanding the emotional significance of your possessions, the role of perception, and taking proactive steps by creating a Life & Legacy Plan, you can minimize conflicts and preserve familial relationships.

Your loved ones deserve to grieve with dignity and respect, not embroiled in bitter disputes. Take the time now to put the proper measures in place, and you can rest assured that your final wishes will be honored and your family will stay out of court and conflict after you're gone.

This is the lasting legacy you can leave behind - not just the material objects you've accumulated over a lifetime, but the gift of harmony, understanding, and compassion for those you hold most dear.

How We Help You Prevent Family Feuds Over Personal Belongings

Family disputes over personal property can cause significant pain and tension at a time when loved ones should come together. We can help you create a Life & Legacy Plan that ensures your belongings are distributed according to your wishes, without conflict or confusion. With careful thought, clear communication, and the right tools, your Life & Legacy Plan will keep your family united, even in the midst of grief. And you’ll gain the peace of mind knowing that your wishes will be honored and your loved ones will be supported long after you’re gone.

Click here to schedule a complimentary 15-minute consultation to learn more:

Protect Your Profits: Don't Gamble on Business Insurance

Tue, 22 Oct 2024 13:00:01 GMT

Being a business owner can be incredibly rewarding. It feels great to see an idea become a reality, increase your revenue, and create a job for someone who needs one. But, as all business owners know, with reward comes risk. There’s not much you can do to eliminate risk from your business entirely, but with the right systems, you can get pretty close.

One of the most important systems your business can have is a complete insurance system. With the right policies in place and the right guidance, you can safeguard both your personal and business assets against unexpected threats like lawsuits, property damage, and employee injuries.

In this article, we’ll take a look at the different types of business insurance, what’s legally required, and how to choose the best coverage for your needs. Read to the end, and I’ll show you how to get the right support to ensure your business is fully protected.

Understanding Your Legal Obligations

Before you start exploring the different types of business insurance, it’s important to know what’s required by law. Depending on where you live and the nature of your business, you may be legally obligated to carry certain types of insurance.

Federal law mandates that employers carry workers’ compensation, unemployment insurance, and disability insurance. These coverages are essential in protecting your employees and ensuring they receive the necessary support if they’re injured or unable to work due to a job-related issue.

Workers’ Compensation. This insurance covers medical expenses and lost wages for employees who get injured or sick due to their work. It’s a must-have if you employ three or more workers, whether they’re full-time or part-time.

Unemployment Insurance. This coverage provides financial support to employees who lose their jobs through no fault of their own. It helps them bridge the gap while they search for new employment.

Disability Insurance. Disability insurance offers income protection to employees who can’t work due to a non-work-related injury or illness. It’s another layer of protection that’s crucial for both you and your employees.

Beyond federal requirements, each state has its own rules regarding business insurance. For example, if you use vehicles for business purposes, you may be required to carry commercial auto insurance. This is only one example, and state laws can vary widely and be complicated. So it’s essential to work with a lawyer to ensure you’re in compliance with the law. As your LIFTed Business Advisor, I can help. Keep reading and I’ll show you how to book a call with me to learn more.

Exploring Common Types of Business Insurance

Once you’ve covered the basics of what’s required by law, it’s time to think about additional insurance that can help protect your business from unexpected risks. As a general rule, you should consider insuring against risks that you wouldn’t be able to cover out of pocket. Here are some of the most common types of business insurance:

General Liability Insurance . General liability insurance is a must for any business. It covers a broad range of potential risks, including bodily injury, property damage, medical expenses, and even legal costs if someone sues your business. For example, if a customer slips and falls in your store, general liability insurance can help cover their medical bills and any legal fees if they decide to sue.

This insurance also covers claims of libel, slander, and other personal injuries that might arise from your business operations. Essentially, general liability insurance acts as a safety net, protecting you from financial loss due to unforeseen accidents and legal challenges.

Product Liability Insurance. If your business involves manufacturing, wholesaling, distributing, or selling products, you’ll want to consider product liability insurance. This coverage protects you from financial loss if a product you sell causes injury or harm. For example, if you sell a toy that ends up being a choking hazard, product liability insurance can cover the costs of a lawsuit or any settlements that arise.

Even with the best quality control, defects can happen. Product liability insurance ensures that one mistake doesn’t lead to financial ruin for your business.

Professional Liability Insurance. For businesses that provide services rather than products, professional liability insurance is key. Also known as errors and omissions insurance, this coverage protects you from financial loss due to malpractice, errors, or negligence in the services you provide.

For instance, if you’re an accountant and make a mistake on a client’s tax return, leading to penalties from the IRS, professional liability insurance can help cover the cost of any legal action or settlements. This insurance is particularly important for service-based businesses where even a small error can have significant financial consequences.

Choosing the Right Insurance

Now that you know about the different types of business insurance, how do you choose the right one for your business? Here are four steps you can take:

Step 1: Assess Your Risks

The first step in choosing the right insurance is to assess the risks to your business. Think about the types of accidents, natural disasters, or lawsuits that could impact your business. For example, if your business is located in an area prone to flooding, you’ll want to consider commercial property insurance that covers flood damage.

Step 2: Find a Reputable Licensed Agent

Once you’ve assessed your risks, it’s time to find a commercial insurance agent who can help you navigate the different policies available. A good agent will take the time to understand your business and recommend coverage that fits your needs. Since agents receive commissions from insurance companies, it’s important to find one who prioritizes your needs over their own. As your LIFTed Business Advisor, I can help you find the right agent who will have your best interests in mind.

Step 3: Understand the Policy Terms

Insurance policies can contain complicated language, so don’t be afraid to ask questions. Take the time to understand the terms of each policy so you’re clear on how coverage works in different scenarios.

Step 4: Reassess Your Coverage Every Year

As your business grows and evolves, so will your insurance needs. Each year, review your coverage to ensure it will work when you need it to. For instance, if you’ve purchased new equipment, expanded your operations, or hired more employees, it’s time to update your insurance. Regularly reassessing your coverage with a trusted advisor ensures that you’re always protected, no matter how your business changes. And as your LIFTed Business Advisor, I’m here to help.

Business insurance is an investment in the future of your company. By understanding your legal obligations, exploring the various types of insurance available, and following the steps to choose the right coverage, you can protect your business from unexpected risks. Whether it’s a slip-and-fall accident, a product defect, or a professional error, the right insurance policy can be the difference between weathering a storm and facing financial disaster.

Secure Your Business’s Future with the Right Guidance

I know how crucial it is to shield your business from these unexpected risks. That’s why I offer a comprehensive LIFT Business Breakthrough Session, where we’ll evaluate your current coverage, identify any gaps, and create a strategy to ensure your business is fully protected. Together, we’ll build a safety net that allows you to confidently grow your business, knowing you’re well-equipped to handle anything that comes your way.

Book a call today to get started and secure the future of your business.

Won’t My Spouse and Kids Inherit Everything When I Die?

Wed, 16 Oct 2024 13:00:09 GMT

You may think that if you die while you are married, everything you own will automatically go to your spouse and children. But you are actually thinking of state rules that apply if someone dies without leaving a will. In legal jargon, this is referred to as dying intestate. In that case, the specifics will vary depending on your state’s law, but generally, your spouse will receive a share of what you own, and the rest may be divided among your children or parents, depending on your situation. Exactly how much your spouse will inherit depends on the state law, though.

Now, it may seem like so far, so good. Your spouse is getting an inheritance, and so are the kids. Maybe not exactly the way you would choose for yourself, but generally its ok. But here are some examples of how the laws can fail in many common family situations.

First, when it comes to who will get your money and property, most states’ laws presume that a family comprises a married couple and their biological children. But because that is not how many families are structured; things can quickly become legally complicated.

One analysis identified 50 different types of family structures in American households. ^[1] Approximately 40 percent of all marriages in the United States are remarriages for at least one spouse, ^[2] and—through adoption and stepfamilies—millions of children are living in blended families. Unfortunately, the laws have not kept up, and absurd results can occur if you rely on intestacy as your estate plan. Stepchildren whom you helped raise (but did not legally adopt) may end up with no inheritance, while a soon-to-be-ex-spouse may inherit from you.

For example, Carey and Blake each have a child from a prior relationship (Carey has a daughter, Rose; Blake has a son, Whitley) living with them full time. During the course of the marriage, Carey and Blake have a child together named Penny. Carey and Blake treat all three children the same. Yet when Carey dies without a will or trust, her family must rely on state law to determine who receives Carey’s assets. Everything that was owned solely by Carey is divided between Blake, Rose, and Penny.

Although treated like a son, Whitley would be entitled to nothing. This may not be the outcome Carey would have desired. Without an estate plan, however, nothing more can be done. With a will or trust, you can control what happens to your money and property and who will benefit from your hard work, essentially eliminating the risk of regrettable results.

Another issue with relying on state law is that none of the transfers to your loved ones happen automatically. Your family must open a probate estate with the court and go through the process specified in state law before your property can transfer out of your name and into theirs. This process can be long and costly. It is also public. Many people would prefer that an inventory of their property and the details of their family life be kept out of the public eye. Perhaps the best way to keep your matters private is by creating and funding a revocable living trust while you are alive and have the legal capacity to do so.

Furthermore, if both parents of minor-aged children die without an estate plan, then the children are left without a legal guardian. Kids do not automatically go to a godparent or grandparent, even if that is what everyone knew the parents had intended. Instead, a court will appoint someone to be the children’s guardian. In such situations, the judge seeks to act in the children’s best interests and gathers information on the parents, the children, and the family circumstances. But the decision is up to the court; the judge, following the priority listed in the state’s law, may not choose the person that you, as their parent, would have chosen. If you had created a valid will during your lifetime, you would have been able to communicate to the judge whom you would have liked to appoint as guardian.

What if you and your spouse are separated?

State law decides what happens to your money and property if you are separated from your spouse when you die. In some states, the court ignores your separation and still considers you legally married. If the state intestacy law (which, again, applies if you die without a valid will) grants spouses a share of your property at your death, as most do, then your estranged spouse may be entitled to all or a portion of it when you die.

Also, some state laws or court orders prohibit you from disinheriting your spouse after you file for divorce but before it is finalized unless you have a prenuptial or postnuptial agreement. Without one of these agreements, you can try to omit your spouse from your will or your trust, but state law may kick in to require that a surviving spouse (who, again, is treated as being legally married to you) be given a share of what you own.

If you are separated from your spouse and your divorce is pending, talk with your divorce lawyer and an estate planning attorney about your options.

The best way to safeguard and pass along what you have worked so hard to build is to talk to a qualified estate planning attorney. Protect yourself, your family, and your money and property by contacting us today.

Is a Four-Day Workweek the Future of Business?

Tue, 15 Oct 2024 13:00:06 GMT

The concept of a four-day workweek has gained significant traction in recent years, with many companies experimenting with this innovative approach to work-life balance. While the idea of having an extra day off each week may seem like a dream come true, the reality is more complex. Let's delve into the pros and cons of this trend and explore whether installing a four-day workweek would suit your business.

The Appeal of the Four-Day Workweek

The allure of a four-day workweek is undeniable. Imagine having an extra day each week to relax, spend time with loved ones, pursue hobbies, or simply unwind. The potential benefits for both employees and employers are significant.

For employees, a shorter workweek can reduce stress, improve job satisfaction, and improve overall well-being. Studies have shown that a four-day workweek can reduce burnout, increase productivity, and enhance work-life balance. When you have more time for yourself, you're less likely to feel overwhelmed and more likely to be motivated and engaged in your work.

For employers, a four-day workweek can offer several advantages. It can help attract and retain top talent, as many job seekers prioritize work-life balance. Additionally, a shorter workweek can lead to reduced turnover, which can save companies time and money. Furthermore, a four-day workweek can have a positive impact on the environment by reducing commuting and energy consumption.

Speaking of attracting top talent, here’s some food for thought as you plan your company’s future: as Generation Z enters the workforce, they bring a new perspective on work-life balance.

Unlike previous generations who may have prioritized high salaries and career advancement, Gen Z is more concerned with finding jobs that align with their values and provide a healthy work-life balance. This shift in priorities is driven by a desire to avoid the burnout and dissatisfaction experienced by older generations. Gen Zers want careers that allow them to pursue their passions, spend time with loved ones, and maintain a fulfilling personal life.

The Challenges of Implementing a Four-Day Workweek

While the benefits of a four-day workweek are clear, there are also challenges to consider. One of the biggest hurdles is scheduling. Coordinating schedules within teams and with clients or customers can be more complex when everyone is working fewer days. Additionally, reduced operating hours may impact customer service availability.

Another potential issue is the increased workload per day. To maintain productivity, employees may need to work longer hours on the days they do work. This could lead to fatigue and burnout if not managed properly. Furthermore, reduced face-to-face interactions could impact teamwork and knowledge sharing.

Now that we’ve considered the pros and cons of a four-day workweek let’s consider whether it would benefit your business. We’ll start by considering the industries best suited for this change.

The Best Industries for a Four-Day Workweek

Certain industries are more suited to a four-day workweek than others. Knowledge-based industries, such as technology, finance, and consulting, often benefit from flexible work arrangements. Creative industries, like design and marketing, can also thrive with a shorter workweek. Service industries, such as customer support and call centers, may also be able to experiment with a four-day workweek, especially if AI (artificial intelligence) can stand in for humans.

However, industries that require continuous operations, such as manufacturing or healthcare, may face unique challenges in implementing a four-day workweek. These industries often involve essential services that cannot be interrupted.

Is the Four-Day Workweek the Future of Business?

A growing number of small businesses are testing the waters - and the results are positive. A recent article in Inc. magazine shows that companies such as Tones of Melanin, POV Agency, and Bird Hill PR, are finding that a four-day workweek not only improves employee satisfaction but also boosts productivity and profitability. These companies have experienced increased employee morale, reduced burnout, and enhanced work-life balance, leading to better employee retention and overall business performance. POV Agency, in particular, found that employees became more focused and efficient during their shorter workdays.

If you’re considering making the shift to a four-day workweek in your business, know that success depends on careful planning, effective implementation, and a supportive company culture. By addressing the potential challenges and leveraging the benefits, you can create a more sustainable and fulfilling work environment for your employees.

The Advisor You Need, The Guidance You Want

The four-day workweek is a trend that is likely to continue gaining momentum. While there may be challenges to overcome, the potential benefits for you as a business owner may make it a compelling option.

I understand the impact significant changes can have on your business - if you don’t have the right foundations in place. That’s why I offer a LIFT Business Breakthrough Session, where we'll analyze your current legal, insurance, financial, and tax systems and identify any gaps that could negatively impact your business. Then, together, we'll ensure that your business is prepared to navigate any changes that set your company and employees up for success.

Book a call here to learn more and get started today.

3 Questions to Ask Yourself Before Creating Your Estate Plan With AI

Fri, 11 Oct 2024 22:29:19 GMT

Have you jumped on the AI bandwagon yet? If so, you’ve probably used it to make your life easier. AI can be incredibly helpful, especially when the stakes are low. Need a personalized meal plan or an exercise routine? AI can handle that. But when it comes to estate planning, some people use AI for what they believe to be a simple and cost-effective solution.

The allure of Do-It-Yourself estate planning through AI is strong, especially when you think your situation is simple and straightforward. You may also think you don’t have much money, and so your circumstances aren’t complicated. Both of these beliefs are extremely common - and rarely true.

Here’s the truth: estate planning is not just about creating a set of documents, and it’s almost always more complicated than you think. To do it effectively, it must be personalized to fit you, your family dynamics, and the specific types of assets you have. But unless you’re an expert, you don’t know how your personal circumstances apply to the law and your values - or how your estate plan should be structured to fit the law and your values. AI cannot do any of this. And if you get it wrong, there are legal (as well as financial) consequences. You need a human to guide you; a human who understands you, your family, your assets, your wishes and desires, and how all these things work together with current law.

So before you’re tempted to use AI for your estate plan, ask yourself the following three questions. Then consider your answers before turning to AI or any other free or cheap legal service. If you’ve already done your estate plan, these questions are important for you, too.

Question No. 1: What Matters?

First and foremost, who or what matters most to you? When you’re creating a legal plan for what happens if you become incapacitated and when you die, the place to start is by getting clear on what matters. Is it the money you’ve worked hard to earn, or is it the people around you and the relationships you’ve nurtured? Most likely, it’s the people.

Think about this. How are you affected when a loved one passes away? You’re probably filled with grief, and their absence leaves a void in your life. While their money can ease financial strain, it’s the memories and the love you shared that truly matter (this is their “legacy”). Your loved ones will feel the same way after you’re gone. What will your legacy be?

Imagine that your family is left to deal with a big legal and financial mess after you're gone, all because you didn’t create an estate plan or created one that failed. Are you ok with that being your legacy? Does it matter to you that people will need to spend time away from work and their lives to manage your affairs? And what if they ended up fighting or estranged? Does that matter to you?

What about your assets? Does it matter to you if your estate has to pay unnecessary taxes, or that your assets get lost and turned over to your State’s Department of Unclaimed Property? Or do you care about supporting a cause you believe in, or supporting a family member who needs help?

When you create a Life & Legacy Plan with our office, you gain the power to influence these outcomes in a way that AI cannot do. But first get clear on what truly matters to you.

Question No. 2: What’s It Worth?

Once you’re clear on what matters, the next question is: what are those things worth? How important is it to ensure your family’s relationships are preserved, for example? How important is it that your assets don’t get used to pay taxes when there’s an option to give them to your loved ones? It’s critical to know not only what’s important, but how important it is, so you know how much time, energy, attention, and money to dedicate to it.

One of the main reasons people may use AI to draft their estate plans is that they think estate planning is simple. However, estate planning is much more complex than most people realize. Even licensed attorneys who practice estate planning often find themselves overwhelmed by the intricacies of the law, which changes regularly and varies from state to state. AI is a one-size-fits-all approach that doesn’t take into account the complexities. So if you rely on AI, you’re leaving a lot to chance. Is it worth it to you to take a chance on what matters? There is no wrong answer here; it may be yes or it may be no. The key is that you’re being true to yourself.

Question No. 3: Is AI Actually Cheaper and Easier?

And now we’re at the third and final question: is AI or Do-It-Yourself legal really cheaper and easier than working with an expert? If the program makes a mistake in your estate plan and your family ends up in court, embroiled in conflict, with relationships irreparably broken, was it worth the supposed savings? What if your assets were lost to the government, eaten up by unnecessary taxes, or depleted by lawyers’ fees and court costs due to litigation?

When you weigh the potential costs—financial, emotional, and relational—against the upfront savings you might achieve by using AI, the true worth of those things that matter to you becomes clearer. You see that estate planning is about much more than just money; it’s about protecting the people you love and ensuring your legacy is honored as you intend.

You and Your Family Deserve More Than a Quick and Cheap Fix

The way to ensure that your plan works when you and your loved ones need it to, and saves you and your family money, is by working with me to create a Life & Legacy Plan. With our process, I’ll guide you to get clear on what matters, then together we’ll create a complete plan that honors your wishes and creates a loving legacy at a price that fits your budget. When it comes to something as important as your estate plan, it’s worth taking the time to do it right. Your legacy deserves more than a quick fix—it deserves the thoughtful attention of someone who understands your unique situation and can help you navigate the complexities of the law to achieve your goals.

We understand that estate planning isn’t just about the documents you sign or the money you leave behind. It’s about ensuring that the people and things that matter most to you are protected and honored in the way you intend. Once you’ve created your plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your legacy preserved.

Click here to schedule a complimentary 15-minute consultation to learn more:

Matthew Perry's Estate Plan Demonstrates the Benefits of Trusts

Wed, 09 Oct 2024 18:49:46 GMT

When Matthew Perry, the beloved star of Friends, passed away last year, the world mourned the loss of a comedic icon. However, as details of his estate began to emerge, a curious puzzle presented itself: despite his reported net worth of $120 million, his bank account held (only) $1.5 million. Admittedly, this seems like a whopping sum to most of us, but for a man who earned millions of dollars for just one episode of the show, this amount appears…off somehow. Shouldn’t he have had much more money than that? The answer lies in the details of estate planning and using trusts as part of your plan.

In this article, we’ll look at Perry’s estate plan and pull out some valuable lessons. These lessons pertain to all of us, not just the rich and famous. To find out how trusts can benefit you, read on.

What is a Trust?

A trust is simply a legal arrangement where a person (sometimes called a “settlor”) transfers assets to someone ( a “trustee”) who manages those assets for the benefit of someone else (the “beneficiaries”). Many types of trusts can be used for many different purposes, including estate planning, asset protection, and providing for loved ones.

The trustees appointed to manage a trust play a crucial role in fulfilling the settlor's wishes.

Choosing the right trustees is essential for the effective management of a trust. Trustees should be trustworthy, financially responsible, and knowledgeable about estate planning. They should also be willing to devote the time and effort required to manage the trust's assets.

In Perry's case, it appears he had established a trust during his lifetime. This trust, which seems to be named the Alvy Singer Living Trust - Woody Allen's character in Annie Hall - presumably holds a significant portion of his wealth. In Perry's case, the trustees were likely responsible for managing his investments, paying bills, and distributing money to the beneficiaries.

Why would Perry have chosen to establish a trust? There are many benefits, which I’ll break down in greater detail now.

The Power and Benefits of Trusts

There are many advantages to using a trust for estate planning. Here are some of the most common.

Protection from creditors and lawsuits. If a beneficiary faced financial difficulties, their creditors would generally not have access to assets held in a trust.

Ongoing support during life, incapacity, and after death. Trusts can provide for loved ones in a more flexible way than a will. A will is a legal document that outlines how your assets will be distributed after your death. However, a trust can be structured to provide support during your life and for your beneficiaries over time, ensuring that their needs are met throughout their lives. If you have a will, usually your assets will be transferred to your beneficiaries all at once - even if they are young or financially irresponsible.

Minimization of estate taxes. Depending on the size of an estate, there may be significant federal and state estate taxes. By using a trust, it can be possible to reduce or eliminate these taxes.

Court avoidance. There’s a court process called probate that takes place after someone dies, and it can be expensive, lengthy, and conflict-laden. If you have a will or no estate plan, court is mandatory. If you have a trust, however, the court process may be avoided. This results in less expense, less time, and a decreased probability of conflict. It’s also a public proceeding, and court filings contain personal and financial information you may not want others to see.

Conflict avoidance. The court process is set up to give all heirs and creditors a claim to your assets. They are invited to file a claim, and they get to see information about your assets.

Greater control over what happens to your assets and your family. When you have to go to court, it means that someone other than you - a judge, who’s a complete stranger to you and your family - will make all final decisions about your money, property, and family. But with a trust, you get to make those decisions and exercise control over the outcomes.

Preserving assets when there’s a substance abuse issue. It’s no secret that Perry struggled with substance abuse for much of his life, and it’s possible that because of that, he was advised to create a trust to hold his assets. This was a wise decision. Substance abuse can have a significant impact on financial stability, and it is possible that Perry sought to protect his assets from loss, either by his own actions or potential creditors and legal issues related to his addiction. You can do the same for a friend or relative if you want to support them and also know they struggle to manage their finances responsibly.

These advantages apply to you, too! You do not need to be wealthy to want a trust. You do not have to be charitable or famous to take advantage of the benefits. You simply need to be educated about the benefits and how they apply to you. Read on and I’ll show you how to book a call with me to get the education you need.

I’ve alluded to one more advantage that warrants a full section of discussion: privacy.

The Appeal of Privacy

Remember when I mentioned above that the court process is public? And I also mentioned that a trust can help you and your family avoid court, and the very public process that it is? If you were wondering, “If it’s true Matthew Perry had a trust, then how come it’s public knowledge that he had $1.5 million in his bank account?” then kudos! You caught on to something important.

Matthew Perry also had a will, and wills go through probate. Any assets that are not placed into a trust must be dealt with via your will and thus, are subject to the court process. Remember how I also said above that court filings must contain your personal and financial information? That’s how we know about Matthew Perry’s bank account. The funds in his bank account were ostensibly not placed into his trust, and so, are subject to the public probate process. If you want, you can go look up the court records and read his will - or any will - for yourself.

His will mentioned that he had a trust, which is also common. What it doesn’t mention is the terms of the trust, who the beneficiaries are, what his other assets are, and who gets what. Our public knowledge is limited to what’s in his will. And if his bank account had been placed into his trust, it would have been kept private, too.

In short, assets placed into a trust are kept private, as is your personal and financial information. Assets left out of a trust are public knowledge. So, when you create a trust, it’s crucial that you don’t just draft and sign the document and call it a day. You must take the next step and correctly place your assets into the trust. If you don’t do that, you lose all the benefits the trust offers.

How We Help You Protect What Matters Most

As more details about Perry's estate emerge (and sadly, his death), we may gain a better understanding of his intentions and the legacy he will leave behind. While his untimely passing is a tragic loss, his estate planning offers a fascinating look at the advantages of trusts and how you can also take advantage of them.

We can help you create a comprehensive Life & Legacy Plan that may include tools like trusts to protect your assets, maintain your privacy, and ensure your loved ones are cared for—without the headaches of court or the increased chances of conflict. By planning today, you can have peace of mind knowing your wishes will be honored, your family’s future will be safeguarded, and your legacy will be kept private.

Click here to schedule a complimentary 15-minute consultation to learn more

The Supreme Court Case Every All Business Owners Should Know About

Wed, 11 Sep 2024 02:46:19 GMT

The Supreme Court Case All Business Owners Should Know About

You might think Supreme Court cases don't affect your daily life as a business owner, but think again. The recent decision in a case called Connelly v. United States handed down on June 6, 2024, has far-reaching implications that could hit you right in the wallet. This case fundamentally changes how the IRS values businesses, potentially leading to higher estate taxes for you and your family.

I’ll break the case down for you in easy-to-digest bites in this article. I’ll also discuss the implications for you and your business and finally guide you to get the support you need so you’re not negatively impacted.

The case is somewhat technical, so stick with me because understanding this case could save your family hundreds of thousands of dollars or more.

The Facts

Two brothers, Michael and Thomas Connelly, owned a company called Crown C Supply (“Crown C”). Michael owned 77.16% of the shares, and Thomas owned the remaining shares, or 22.82% of the company. Like many business owners, they wanted to keep the company in the family after either died. So, they created an agreement to ensure this happened. The agreement gave the surviving brother the right to decide whether he wanted to buy back the deceased brother’s shares. If he chose not to, Crown C was obligated to purchase the shares.

Rather than paying out of pocket to purchase the other brother’s shares, the Connelly brothers did what many smart business owners do: they agreed that Crown C would purchase life insurance for each brother. This way, if one died, the company could use the life insurance payout to buy back the shares from the surviving brother, rather than the surviving brother having to come up with the funds to buy the shares from the estate of the deceased brother.

So far, so good. Their plan seems reasonable and is exactly what many business owners do. But then, Michael died, and his death triggered the circumstances that set this whole case in motion.

Following the terms of the agreement, Thomas had the first opportunity (in legal jargon, this is called the “right of first refusal”) to buy Michael’s shares. He declined. His refusal then prompted the backup plan the brothers agreed to: Crown C’s obligation to purchase Michael’s shares. Note that Thomas’s right to buy the shares was optional, whereas Crown C’s obligation was mandatory. This fact was crucial to the court's decision.

The reason the court highlighted Crown C’s obligation had to do with whether the obligation to purchase the shares created a liability for the company rather than an asset. This is an important distinction. A liability - or debt - decreases the company's overall value, whereas an asset increases its value. You don’t have to pay taxes on debts, but you do have to pay taxes on assets.

Having said that, let’s get back to the facts of the case.

Crown C had to be appraised to determine the value of Michael's 77.18% ownership. The appraisal put Crown C’s value at $3.86 million, making Michael’s share worth $3 million. Crown C then used the life insurance proceeds to purchase Michael’s shares for $3 million and paid that amount to his estate. The executor of Michael's estate filed the required estate tax return, which included the $3 million worth of Michael’s shares in the company.

I want to pause here to make an essential point about estates and taxes. When you own a business, and the business has value, your ownership stake counts as part of your personal estate when you die. Estates that are valued at a certain amount are subject to estate tax. Like any other person or entity, estates are also subject to a possible IRS audit. Michael’s estate got audited - and that’s when things got interesting.

The Plot Twist

The IRS looked at Crown C's finances and saw things differently than the estate did. The IRS valued the company at $3.8 million plus the value of Michael's shares, bringing the total to $6.86 million. This new calculation meant Michael's shares were actually worth $5.3 million - substantially higher than the original $3 million valuation. That meant an additional $2.3 million was to be added to the value of Michael’s estate, increasing the estate tax bill by almost $900,000. Ouch.

What does this mean for you? It changes how the IRS calculates the value of your business. Before this case, life insurance policies weren't typically included in a company's valuation. The reasoning was that they represented a future liability that would offset any payout. The Connelly decision flips this on its head. Rather than subtracting from a company's value, a life insurance policy purchase to buy out the shares of a deceased shareholder adds to the value of the company. This shift can significantly increase your company's value on paper, and potentially your tax bill, as the Connelly family learned.

But don’t fear. Instead, let your knowledge of this case empower you to adjust your company’s practices and update (or create) your personal estate plan.

The Steps You Can Take Now to Protect Yourself

If you're a business owner and want to avoid the same outcome as the Connellys, now is the time to take action. However, you may think you’re too busy to worry about your death. But here’s the thing about death: it can happen to any of us at any time. Death doesn’t care how busy you are. If you wait to plan for it, it could be too late.

Here are a few steps you can take now:

Create a business succession plan if you don't have one. A succession plan is simply a roadmap for what happens to your business if you aren’t a part of it anymore, either due to your death or exit. So if you've been putting off planning for the future of your business without you, use this as your wake-up call. A solid succession plan can help you avoid overpaying on taxes. The Connellys’ loss is your gain, if you take action.

Review your business succession plan if you have one. If your succession plan resembles Crown C's, it's time to make adjustments. Adjustments may include new or revised contracts, setting up a new entity to purchase and benefit from a life insurance policy, setting up a trust, or finding a different and creative solution. I can help you choose the best option for you and your business. All you need to do is set up a call with me using the link below.

Create or update your estate plan. As mentioned above, your business is an asset and its value will be included in your estate when you die, unless you create a plan to exclude the value of your company from your estate. So, to avoid any negative consequences, tax or otherwise, your personal estate and business plans should fit together. If you have an estate plan, the Connelly decision may mean it’s time to update it. If you don’t have an estate plan, time is of the essence. You need one, and you need one in place as soon as possible. I can help you with this, too.

These tasks may sound like a lot of work and may feel overwhelming. You’re running a business, after all. But don’t worry! I can take this off your plate and ensure you and your company have a plan that saves you unnecessary taxes. All you need to do is reach out and ask for my help.

We Do the Heavy LIFTing So You Don’t Have To

As your trusted advisor, I understand the damaging impact taxes can have on you and your business. That’s why I offer a comprehensive LIFT Business Breakthrough Session where we’ll analyze your current Legal, Insurance, Financial, and Tax (“LIFT”) systems and then develop a plan that fills in any gaps that could expose you and your company to loss. And we don’t stop there. We will continue to inform you whenever your plan is affected by changes in the law or anything else that could happen, like the death of a business partner. So, if you’re reading this and we’ve worked together before, be on the lookout for communications from my office about next steps.

Don’t worry about the heavy LIFTing. That’s what we’re here for. Book a call here to learn more and get started today.

What Conditions Can I Put On My Child's Inheritance

Wed, 11 Sep 2024 02:01:17 GMT

What Conditions Can I Put on My Child’s Inheritance?

You have two primary options for leaving an inheritance to a child. The most straightforward is to give it to them in a single lump sum, with no strings attached. But this might not be the best option for some children. You may be concerned about the child’s ability to handle the money responsibly, fear they will spend it in pursuit of a cause you do not support, want to avoid the need for a court-ordered conservatorship to manage the funds if the children are minors, or have some other reason for wanting to set conditions on their inheritance.

Estate planning lets you control from beyond the grave who receives your money, when they receive it, and how they may use it. If you wish to restrict the flow of inherited money to your child, you can do so through your will or trust. While there are legal limits on conditional gifting, you are generally free to structure an inheritance the way you would like.

Questions about whether a conditional gift is legally enforceable should be discussed with an estate planning attorney.

Ways to Use Conditional Gifts

When raising children, most parents hope to shape their children’s behaviors, provide them with specific values, and help them become productive members of society. Parents often use a “carrot and stick” approach to get the desired outcomes, incentivizing approved actions with rewards and discouraging unapproved actions with punishments.

An estate plan allows parents to require or disincentivize specific actions before a child receives all or a portion of their inheritance. This type of provision is known as a conditional gift. There are two main types of conditional gifts:

● A condition precedent gift is only given upon a beneficiary meeting a stated requirement (i.e., the “carrot” approach).

● A condition subsequent gift refers to gifts that are given unconditionally but can be later revoked if a specific event transpires (i.e., the “stick” approach).

Condition precedent gifts are frequently tied to age, with money given to beneficiaries upon attaining certain ages (e.g., turning 21) or intervals of time (e.g., disbursements made one, three, and five years after the parent’s death). Usually, such restrictions are put in place because a parent is concerned that their child is not mature enough to manage a large sum of money immediately. Parents may also choose conditions related to certain life events, such as the child graduating college, getting married, buying a home, or starting a business.

There are still other cases where a parent wants to protect a beneficiary from themselves or others. Children who have a history of drug and alcohol abuse might need a combination of the carrot and stick approaches that tie their inheritance to becoming—and staying—sober.

These are just a few reasons why conditional gifts may be included in an estate plan, and the conditions used can vary as much as the reasons for implementing them.

Whether a parent is trying to develop a sense of purpose in their child, discourage bad behavior, or align their child’s values with theirs, any number of strings can be attached to a bequest. Consider these less common conditions:

● Making an extra distribution for a perfect grade point average or doing volunteer work

● Setting distributions that match amounts given to charity or earned at a job

● Restricting distributions if the child is not working

● Providing seed money to start a business

● Conditioning a gift on the ability to pass a random drug test

● Incentivizing work in the family business

● Making sure a child caregiver does not place a surviving spouse in a nursing home

Not All Conditions Will Hold Up in Court

Although parents can be highly creative and detailed in structuring conditional gifts, their freedom to impose terms is limited.

In general, courts will not uphold conditions that are illegal, uncertain, unreasonable, impossible, or contrary to public policy. Here are some guidelines parents should consider when they create conditions for their children’s inheritances.

● A beneficiary should not be asked to engage in activity that breaks the law or is unconstitutional.

● The conditional gift should be executed in clear and precise language. If there is doubt about what actions need to be taken—or refrained from—for the condition to be satisfied, the court could declare the condition void.

● There must be a chance that the beneficiary can satisfy the condition. In part, a court’s determination on this matter is based on the circumstances of the beneficiary and the context of the gift.

● Conditions that violate public policy are not illegal per se. Instead, they are deemed to harm the public welfare because they are unfair or unreasonable.

Historically, many courts have voided on public policy grounds conditions that restrain a person’s right to marry or incentivize divorce.

The way courts interpret a conditional gift based on public policy is not always obvious and can be very fact-specific. It may come down to precedent from past cases and judicial discretion.

Some courts, for example, have refused to enforce conditions contingent upon a beneficiary getting divorced, but enforced marriage conditions based on age and marrying within the same religion. Public policy also varies to some degree by state, so a conditional gift ruled invalid in one state may be found valid in another state.

Ask an Estate Planning Attorney Questions About Conditional Gifts

Parents and children do not always see eye-to-eye—in life or in death. Each may have questions about conditional gifts in an estate plan that may be best answered by a discussion with an attorney.

For parents, as long as the conditions you set are in the best interest of your child, phrased appropriately, and do not contravene public policy or the law, the court should uphold them. On the other hand, if a condition is unclear and left open to interpretation, even the best-meaning condition can lead to a lengthy and costly court proceeding that undermines your intent.

Beneficiaries may question if a condition is legally valid or if they have satisfied it, or take issue with how a trustee is managing the trust for them. Faced with seemingly unreasonable conditions, they may need to raise a legal objection to receive their inheritance.

These issues tend to be personally sensitive and legally complicated, involving not only family dynamics but also state law and court decisions. Whether you are a parent setting a conditional gift or a child receiving one, our estate planning attorneys can help you understand your rights, obligations, and options.

Celebrity Estate Plan Series - Elvis and the Scammers

Wed, 11 Sep 2024 01:56:04 GMT

Celebrity Estate Plans Series Part 4 of 4: Elvis and the Scammers

For the last few weeks, we’ve discussed celebrities and how they planned for their deaths. We started with the King of Pop, Michael Jackson, so ending our 4-part series with the King of Rock, Elvis Presley, seems fitting.

You may be wondering why I’ve chosen to talk about a man who’s been dead since 1977. The reason is that a recent case involving Graceland shows how bold scammers can be. This case is a wake-up call for anyone who owns property or stands to inherit it. So, let’s jump into this bizarre tale to uncover what you can learn about protecting your assets from the unscrupulous actors around you.

How It Went Down

You might think that a well-known property like Graceland would be untouchable, but that didn't stop a mysterious company from trying to steal it. A group calling itself Naussany Investments and Private Lending claimed that Graceland's owners owed them millions from an old loan. They even set a date to auction the property to the highest bidder. But there was just one problem – the whole thing was a scam.

Riley Keough, Elvis's granddaughter and the current owner of Graceland, quickly fought back. She filed a lawsuit, saying her mother, Lisa Marie Presley, never borrowed money from this company or put Graceland up as collateral. The courts agreed, stopping the sale just in time. Keough’s swift action got the attention of the Tennessee Attorney General’s office, which then turned over the case to the FBI, and a federal investigation is pending.

Unfortunately, there’s been a rise in these types of scams, and they aren’t just targeted at the rich and famous. Scammers are adept at taking advantage of those of us who have never had a top-10 hit. A Wall Street Journal article published on June 3, 2024, breaks down a typical scenario, which is on point:

“Here’s how it works: A fraudster targets your house and assumes your identity, using tactics similar to identity thieves to acquire your personal information and create fake IDs. He or she then tries to sell it to an unsuspecting buyer by executing a forged deed in your name. An alternative scam is to submit a mortgage application in your name to get cash out of the house.”

Often, people don’t find out this has happened until the sale is complete and by then, it may be too late to get the property back. Or at least it would be very time-consuming and costly. Some people cannot fight back because they don’t have the financial resources to do so. The results can be utterly heartbreaking.

If it can happen to Graceland, it can happen to you. So, how can you spot these scams before they spin out of control?

Red Flags You Can’t Ignore

When you're dealing with property, loans, and estate planning, keep your eyes peeled for these warning signs:

Paperwork problems: In the Graceland case, the documents had all sorts of issues. Dates didn't match up, signatures looked fishy, and the notary said she never met Lisa Marie Presley. Always read the fine print and question anything that looks off. You should also consult with a lawyer immediately if you suspect something fishy. A lawyer can confirm your suspicions and help you take action right away.

Ghost companies: According to the news articles, Naussany Investments was hard to pin down. They had no real address, just P.O. boxes, and weren't registered as a business anywhere. Before you deal with any company, especially for something as important as a loan, do your homework. Look them up online, check with the Better Business Bureau, and don't be afraid to ask probing questions.

Timing: The scammers waited until after Lisa Marie Presley passed away to make their move. Be extra cautious about any claims against a deceased person's estate – fraudsters often target families when they're most vulnerable.

Steps You Can Take to Protect Yourself

Know that you can take proactive action to protect yourself and your loved ones, before you notice red flags. Here are some practical steps to ensure your property is protected:

Keep good records: Make sure all your important documents are organized and easy to find. This includes property deeds, mortgage papers, and any loans you've taken out. If someone makes a false claim, you'll have the proof to fight back as quickly as Riley did. Regular review and updates of these documents are crucial.

Be skeptical: If something sounds too good to be true, it probably is. Be wary of unsolicited offers or demands, especially if they come with pressure to act quickly.

Stay in the loop: If you're inheriting property or managing it for someone else, know what's going on. Are the taxes paid? Is there a mortgage? The more you know, the harder it is for scammers to pull a fast one. The reason Riley Keough was able to take action quickly enough to stop the sale was because she was paying attention.

You also want to make sure someone else is paying attention to your affairs in case you become incapacitated. In last week’s article, we discussed what can happen if you become incapacitated and you haven’t planned for it. If you missed it, here’s a sneak peek: it took months for Jay Leno to be able to manage his wife’s financial affairs once she was unable to herself. And as we’ve seen with the Graceland case, months could mean the difference between keeping your property and losing it. If you haven’t planned for your incapacity, book a call with me using the scheduling link below, and let’s talk about how we can get that taken care of for you.

And this brings us to the most important thing you can do to protect yourself. Incapacity planning isn’t enough. You need a solid and thorough Life & Legacy Plan.

A Solid Estate Plan is the Key

Having a solid estate plan creates a legal framework that's much harder for fraudsters to penetrate. The type of planning I do, called Life & Legacy Planning ^Ⓡ , is solid and thorough. It covers all possible scenarios so you and your family are prepared for anything that can happen after your death or during your incapacity. It includes an inventory of all your properties and other assets, so you know exactly what you have, and your loved ones will also know if they need to step in and help. A Life & Legacy Plan also includes regular reviews and updates so your plan stays current with changing laws and circumstances, closing potential loopholes that scammers might exploit.

Finally, we can help you ensure your loved ones know about these risks and are familiar with your estate plan. As we’ve learned from Elvis’s estate, the more eyes watching out for fraud, the better.

How We Help You Not Fall Victim to a Scam

Scams are on the rise and the best time to protect yourself is now. We help you create a Life & Legacy Plan so that your loved ones stay out of court and conflict and have a plan that works when you (and they) need it to. Once you’ve created your plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your property protected.

Click here to schedule a complimentary 15-minute consultation to learn more.

Celebrity Estate Plan Series - Jay Leno

Wed, 11 Sep 2024 01:45:15 GMT

Celebrity Estate Plans Series Part 3 of 4: Jay Leno’s Case is No Laughing Matter

For the last two weeks, we’ve discussed celebrities and how they planned (or didn’t!) for their deaths. In this third installment of our four-part celebrity series, we discuss a topic that no one wants to think about as it may seem to be a fate worse than death: incapacity. Unlike death, not everyone will become incapacitated. Yet, it’s an essential part of your future planning because if you do become incapacitated, you want to have made your choices well before that occurs. To illustrate the importance of planning for incapacity, we’ll examine the real-life court case involving Jay Leno and his wife, Mavis. I assure you, it is no laughing matter.

The Leno case highlights what happens when you or a loved one becomes incapacitated and what can happen if you have not planned in advance. From the Leno case, we can learn several lessons, including 1) What incapacity is and what it is not, 2) What a spouse can and can’t do with the other spouse’s financial affairs, and 3) How you can end up in court with all your affairs becoming public knowledge. We’ll address all three topics here, emphasizing why these matter, even for those of us who have never hosted “The Tonight Show.”

Let’s start with the basics: what do we mean when we’re talking about “incapacity”?

What Incapacity Is and What It’s Not

If you become incapacitated, you’ve lost the ability to make sound financial, medical, or legal decisions for yourself. You may even make harmful decisions or be unable to communicate at all. Incapacity can result from several circumstances, including a tragic accident, a serious, end-of-life illness, or aging-related challenges, such as dementia or Alzheimers. Like death, incapacity can strike at any time and at any age. Once it does, it’s too late to get your affairs in order, and your loved ones will be stuck with a mess.

This may seem obvious, but stay with me: It’s important to note that incapacity occurs while you’re alive. I say this because estate planning, to some degree, has much to do with timing. You can have a plan and create documents that deal with your incapacity. However, that plan and documents become null and void once you die, and another plan and set of documents are needed.

Here’s why this matters to you: If you’re like many people, you’ve heard of a document called a Power of Attorney. You may even have authority for an aging relative under a Power of Attorney. In my practice, however, I've found that most people don’t realize that the authority granted under that Power of Attorney ends as soon as the person granting the power dies. So, while you may be able to access your loved one’s checking account to pay bills while they’re alive, that ends immediately at death if your access was under a Power of Attorney. You must then get separate authority - from a court if assets are not held in a trust - to handle the remaining assets after death.

This means your incapacity planning and post-death planning must work together so the transition is handled smoothly and with as much ease for your loved ones as possible. And that brings us to the Leno case.

So, What Happened In the Leno Family? (And What It Means for You)

Mavis Leno, Jay's wife of more than 40 years, is battling dementia and has reached the point where she can no longer handle her financial affairs. So, Jay had to go to court (essentially filing a lawsuit against his own wife) to be able to manage her finances. After a few months, the court ruled and gave Jay the authority he requested.

That’s essentially the entire story. But we can’t stop there! Even from just three simple sentences above, several key takeaways exist.

Here are the highlights:

Even though they were married, Jay did not have automatic authority to manage Mavis’s finances. And neither will you if you’re married and your spouse has separate assets. Any assets or accounts you own are your property and your property alone. Marital status is irrelevant. And, if you don’t have advance planning in place, your spouse could need to go to court and sue your “estate” to get appointed and be able to take control of your assets.

Leno had to file a lawsuit (against his wife) to gain control of his wife’s finances. That’s the process, no matter what State you’re in. If you don’t have advance planning and you become incapacitated, someone will need to go to court to get authority, even if you have powers of attorney in place. And it will cost time (a few months in most cases) and money. While waiting for the court to rule, you won’t be able to pay your spouse’s bills using their money (or they may spend away, unaware of what they’re doing). That leaves you with two options:

You can pay the bills with your money and then get reimbursed later. This may be fine, especially if you have the financial means. But if you don’t have immediate access to cash, say your spouse paid all the bills from their account, this could mean trouble and potential loss of the asset. Or, bills simply go unpaid. Maybe you can explain the situation to the financial institution, and they will be patient while the court process plays out, but this doesn’t always happen.

The court process is set up for conflict, and the more conflict there is, the longer the process will take. In Leno’s case, he and Mavis have been married for over 40 years, and it’s their first and only marriage (relationship goals, right?). Given this fact, it’s reasonable to assume that no one challenged Jay’s request. But what if one of them had been married before and had children from the prior marriage? And what if one of those children wanted to ensure they got their inheritance and didn’t want the step-parent to have any control over the money? Sadly, this happens all the time. When it does, the case can go on and on, meaning court costs go up, and the assets in question could be at risk due to the time delay.

Leno’s personal and family information became public knowledge, but not because he’s famous. In most States, you must disclose your address, your family members and their addresses, and information about the financial assets. The Leno family's story is available for all of us to read, not because he’s famous, but because they had to go to court.

This can be problematic because scammers are paying attention. They tend to pay particular attention if you (or someone you love) are vulnerable, especially if you’re older. I could write books about how often older people fall prey to these scams. And they’re all terribly disturbing.

So, what have you gleaned from these insights so far? If anything concerns you, know there is a much better way this could have been handled. And this better way lies within your reach.

A Life & Legacy Plan Keeps Your Affairs Private and Your Family Out of Court and Conflict

A Life & Legacy Plan solves the problems that left Jay Leno having to sue his wife’s estate to get access to her accounts. With a Life & Legacy Plan in place, you would have a seamless, easeful transition from capacity to incapacity and then to death. There’s no time delay; assets can be immediately available when you need them. A Life & Legacy Plan can also keep you and your loved ones out of court and conflict, saving time and money and keeping all your affairs private.

When you work with me to create your Life & Legacy Plan, we’ll ensure your plan stays updated throughout your lifetime. This is critically important because if your estate plan doesn’t reflect your current life circumstances at the time you need it, then it simply won’t work. That means you end up in court, just like the Leno family. Now, for context, most attorneys do not make sure your plan stays up to date. But I’ve seen too many plans fail because of it, so together, we’ll review your plan at least every three years and make updates as necessary.

We’re Here for You Throughout All Of Life’s Changes

Incapacity planning is more crucial than ever, especially with cases of dementia on the rise. According to Alzheimer’s Disease International, over 55 million people worldwide currently have dementia, and that number is expected to increase to 78 million by 2030. Whether you’re diagnosed with dementia, another severe illness, or a terrible accident that results in your incapacity, a Life & Legacy Plan will help ensure you’re prepared, no matter what happens.

We help you create a Life & Legacy Plan so that your loved ones stay out of court and conflict and have a plan that works when you (and they) need it. Once you’ve created your plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your personal information kept private.

Click here to schedule a complimentary 15-minute consultation to learn more.

Celebrity Estate Plan Series - Vanilla Ice

Wed, 11 Sep 2024 01:41:51 GMT

Celebrity Estate Plans Series Part 2 of 4: Vanilla Ice Has Thoughts

This week, we’re continuing to look at the lives of 4 celebrities and how they’re preparing for the inevitable (or didn’t!). Last week, we examined Michael Jackson’s planning and the holes in his plan that resulted in his family being embroiled in court and conflict for 15 years and counting (if you missed it, go back and check it out!). In this second article of our 4-part celebrity series, Vanilla Ice chimes in with his estate planning experience, advice, and lessons learned on a video he posted to his YouTube channel. He has a lot to say! I’ll share some comments users posted with their takeaways, and I’ll pull out a few lessons that we can learn, too.

Let’s start with a topic no one likes to talk about: taxes.

Vanilla Ice (Really) Hates Estate Taxes

Vanilla Ice shares the story of his buddy Mark, whose parents owned a sprawling property in Palm Beach, Florida. When they passed, Mark and his siblings sold the estate, expecting to be set for life. But estate taxes ended up taking over 80% of their profit. Ouch.

Vanilla Ice calls this tax a "generational wealth killer," and he’s not wrong. Estate taxes can sneak up and bite a huge chunk out of your wealth. And the thing is, with a proper estate plan, this doesn’t have to happen! The key is to educate yourself. Knowing what you’re up against helps you plan smarter so that more of your hard-earned assets reach your heirs.

In the comments section of the video, one user wrote that he agrees. He says, “as a Certified Public Accountant (CPA), I love Rob's recommendation to gain an understanding of taxes. We spend more on taxes than everything else in life.”

I agree too! I believe that education is the most important part of estate planning. That’s why my planning process begins with a Life & Legacy Planning Session, where you’ll get the plain and simple education you need to make wise decisions about your planning, including how to keep your family out of court and out of conflict, minimize taxes, and ultimately create a plan that works for you and the people you love, when they need it.

So, first lesson: if you suspect your family could pay estate taxes at the time of your death, don’t wait to plan. There’s way too much at stake. Give us a call, and let’s get you in the know about the kind of planning you want and need for yourself, and the people you love. .

Let’s talk life insurance next.

Vanilla Ice Thinks Life Insurance is Cool

(“Ice” and “cool” - get it? Sorry, couldn’t resist.)

Life insurance isn’t just for covering funeral costs – it’s a secret weapon in estate planning. Vanilla Ice suggests “maxing out your life insurance” to pass on as much money to your kids as you can. What makes life insurance “cool” is that death benefits aren’t subject to income tax, meaning your heirs can get more bang for your buck than if you were investing the money you’d put into life insurance premiums into just about any other asset class.

It’s worth considering what Vanilla Ice suggests here. When you take out a life insurance policy, the payout can cover any necessary taxes, probate fees, and debts, ensuring your heirs receive the lion's share of your assets. Life insurance can help with short-term needs, like paying off a mortgage, or it can serve your family’s long-term needs, like maintaining the lifestyle to which they’re accustomed.

When you get educated via our Life & Legacy Planning process, we’ll look at your life insurance, whether you have the right amount and the right type, and ensure you are 100% clear on what it might mean to “max out your life insurance” and if you really should do that. We’ll consider whether you need more insurance, less insurance, or a different kind of insurance altogether based on your family dynamics, assets, and what you want for the people you love after you are gone.

Second lesson: If you want to be cool, make the right type and kind of life insurance part of your planning.

Ice Says Trusts Are Not Just for the Rich and Famous (and He’s Right!)

Trusts might sound like something only the super-wealthy need, but they’re a smart tool for anyone looking to protect their assets. One commenter agreed, saying he’s learned this from experience, “It isn’t just millionaires that need planning. I’ve seen families torn apart fighting over $100,000 or less. Siblings not speaking to each other again over $50,000.”

Ice mentions irrevocable trusts specifically. These types of trusts let you transfer assets to a beneficiary while removing the assets from your taxable estate, ensuring your assets aren’t subject to estate taxes. Any assets placed in an irrevocable trust are also protected from legal judgments and creditors IF you do it the right way and in the right jurisdiction. Don’t go at this one alone. But if it’s something you are interested in, contact us and let’s talk. In the video, Ice jokes about putting his classic car collection into a trust and setting rules, such as his kids can lease but not sell the cars. This kind of protection ensures your heirs benefit from, but don’t squander, the assets. In other words, even after death, you get to determine how your assets will be used. And if you want to protect them for future generations, you can. This is one way to create generational wealth.

So now we’re up to our third lesson: If you want to protect and preserve your assets for generations, take Vanilla Ice’s advice and utilize trusts in your planning.

Ice Has Some Not-So-Nice Things to Say About Lawyers

While trusts can undoubtedly be a useful tool in estate planning, Ice has some, let’s say, not-so-nice things to say about some lawyers who draft trusts for their clients. He calls them “vultures.” Yikes. One commenter couldn’t resist throwing in a lawyer joke, saying, “What do you call a 1,000 lawyers @ the bottom of the sea? A good start.”

Believe me, I’ve heard all the lawyer jokes out there, and I’ll say this. They wouldn’t be “jokes” if people didn’t find them funny. And people find them funny because there’s some truth in them. Sadly, lots of people have had a bad experience with a lawyer in the past.

Ice aptly describes what a bad experience looks like: the lawyer confusing you by using complex language and legal concepts, selling you documents you don’t really need, and charging way too much for what the lawyer offers. He warns against blindly trusting lawyers like this.

And, he’s right.

It is exactly why I have the processes in place that I have. My Life & Legacy Planning process has been developed precisely to ensure you are well-counseled to understand all the decisions you are making, we never put in place documents that we know are likely to fail, and that you choose your own fees through our education process.

Our education first process is designed so you understand enough about how the law works in your unique situation so that you can make wise choices and be your own best advisor first and foremost. Our pricing model is all flat fee, agreed to in advance, no gimmicks, no surprises, and all chosen by you. No tricking you with fancy legal language and then charging you an arm and a leg for something you don’t need - or even want.

This brings us to our fourth and final lesson: hire a lawyer you can trust to be there for you and your family, for life and beyond.

Put Vanilla Ice’s Advice Into Action Today

Vanilla Ice’s video brings forward lessons everyone can benefit from. By understanding your options, including how taxes and life insurance impact your family and assets specifically, and considering the use of well-counseled trusts, you can safeguard your assets and ensure they benefit your loved ones the way you want. To quote his classic hit, “Ice Ice Baby,” ‘Anything less than the best is a felony.’ Take these lessons from Vanilla Ice to heart, and start building a solid estate plan today. Your future generations will thank you for it.

We help you create a Life & Legacy Plan rooted in education and clarity, so your loved ones stay out of court and conflict and your assets are protected. And once we’ve created your plan, you can rest easy knowing you’ve done the right things for the people you love most—word to your mother.

Click here to schedule a complimentary 15-minute consultation to learn more:

Celebrity Estate Plans Series - Michael Jackson

Wed, 11 Sep 2024 01:35:58 GMT

Celebrity Estate Plans Series Part 1 of 4: Michael Jackson

What is it about celebrities that always draws us in? For whatever reason, we just can’t resist a good, juicy celebrity story. Maybe it’s because we can relate in some way, or maybe we feel like we can’t relate and that’s what makes celebrities interesting. Their lives always seem attractive but somehow… just out of reach.

So for the next few weeks, we’re going to look at the lives of 4 celebrities and see what we can learn from their stories. I think you’ll be surprised to learn that you have more in common with these folks than you thought (even if you don’t also have your own private jet).

This week, we’re going to turn the spotlight on Michael Jackson. Even if you aren’t old enough to “Remember the Time” when Michael Jackson was dominating the charts, by the end of this article, you’ll see that he left holes in his estate plan that we can learn from.

Before we get started, however, I want to address the elephant in the room: many people, maybe you’re included, find Michael Jackson’s personal life and choices… concerning. That is completely understandable. The intent of this piece is not to defend or promote him in any way. Rather, this article’s focus is on his family and what they’ve endured in the court system for the last 15 years.

Now, let’s dive in and learn how you can avoid the same fate for your loved ones.

It’s As Easy as “ABC” (and 1, 2, 3)

Before we take a look at the specifics of Michael Jackson’s story, let’s dispel a myth about estate planning: That it’s only for the rich or philanthropic. You do not need to be rich, philanthropic, or famous to need estate planning. You need estate planning if you own anything - even a bank account - and have people in your life you love. It’s as simple as that (dare I say it’s as simple as “ABC” and 1,2,3?). So as you think about your own estate planning, it's time to "Beat It" past the misconceptions so you’re empowered to do the right thing by your loved ones.

So what happened in Michael Jackson’s case? He had an estate plan that included a Will, and the Will established trusts for his mother, Katherine, and his three children, Paris, Prince, and Bigi.

Let’s stop right there because there’s already an increased potential for conflict with this setup.

When your assets pass via “Will” (instead of via Trust), your assets must go through a court process called probate, which, my mentor says, is a “lawsuit you file against yourself with your money for the benefit of your creditors.” Subjecting your assets and your family to probate can result in a long, time-consuming, and messy court process that can be unnecessarily expensive to resolve. Plus, the court process is entirely public, meaning anyone can access the records and see information about your assets and family that you would rather keep private.

A trust, on the other hand, bypasses the court process altogether, as long as your assets are owned in the name of the trust when you become incapacitated, or when you die. If your assets are properly transferred and retitled into the trust (this is called “funding” the trust), your estate can be administered privately and often takes less time than the court process does. A trust can be set up and funded while you’re alive, thereby avoiding probate, or it can be a part of your Will. When it’s part of your Will, like in MJ’s case, it isn’t established or funded until after the court process has played out. So if you’re trying to keep your family from going through the court process, putting a trust in your Will completely defeats the purpose.

Here’s what we’ve learned so far: if your intent is to keep your loved ones out of court and conflict, creating a Will alone is a “Bad” choice.

Peace of Mind For the “Man in the Mirror”

Since Michael Jackson’s assets were not owned in a trust, and instead his assets needed to pass via Will, there have been ongoing legal matters in court, which still aren’t resolved 15 years (yes, you read that right) after his death. Currently, MJ’s family is embroiled in a dispute with the IRS, and so the trusts he intended to be created for his mother and children remain unfunded, and therefore, some of his assets cannot be transferred to them, in the way it seems he intended. It’s also highly probable that the legal disputes continue to cost the estate a lot of money. That’s money that would have gone to his mother and children otherwise.

To make sure the people you love receive your assets in the way you want, I cannot underscore the importance of education and intent. This is exactly why my Life & Legacy Planning process begins with educating you first. The first time we meet, I will show you exactly what will happen to your family and your assets after your death, based on your current plan (or the state’s plan for you, if you don’t have a plan). From there, I help you make intentional decisions about what’s right for you and your loved ones, based on your desires, your assets, your family dynamics, and your budget.

Taxes - A Potentially “Dangerous” Situation!

The Jackson estate's ongoing battle with the IRS also serves as a stark reminder of the tax implications that can affect your plan and your loved ones. When it comes to taxes, you can’t think in terms of "Black or White" – there are many shades of gray to consider. If you intend to avoid as many taxes as possible, you don’t want to cut corners by either doing your estate planning cheaply or on your own. That could be “Dangerous!” I can help you create a comprehensive plan that minimizes taxes as much as possible, potentially saving you and your family (lots of) money.

Speaking of saving money, taxes can significantly reduce the value of what you pass on to your heirs, which has a direct impact on your loved ones. To minimize this impact, together you and I will explore different strategies such as gifting assets during your lifetime, establishing irrevocable trusts, or using life insurance policies to cover potential tax liabilities.

So our next lesson from Michael Jackson’s story is: when it comes to saving money on taxes, the stakes are too high to go at it alone. Work with a professional who can advise you properly. We aren’t clear why Michael Jackson didn’t get the kind of support necessary to minimize taxes and protect his estate from a long drawn-out court process, but what we do know for sure is that we can help you and your loved ones.

Avoiding the “Thriller” of Legal Disputes

The Jackson case also highlights the importance of choosing the right representatives for your estate. These are the people who handle your affairs after you’re gone (they’re called “executors” if there’s a Will or “trustees” if there’s a Trust). MJ’s family members have criticized the representatives for the way they’ve managed the estate. In particular, Katherine Jackson has alleged that the executors have been too frugal and are holding onto assets to maintain control.

There’s always a possibility of conflict between your representatives and your loved ones, even if you aren’t famous and don’t have millions of dollars to fight over. So to help minimize the potential, we recommend you communicate your intentions to your representatives and to your loved ones during your lifetime. Consider holding a meeting so everyone knows what your wishes are and understands the intent behind your decisions. You may not be able to “Heal the World” on your own, but you can promote healing within your own family and prevent future conflict by opening the lines of communication now. We often facilitate these meetings for our clients.

Also, know that you don’t have to choose family members to be your representatives - even if you feel pressured to do so. If you aren’t sure who the “right people” are, think about people you know who are not only trustworthy but also capable of handling complex financial and legal matters. There’s also the option of choosing a professional representative, as Michael Jackson did, who might be more appropriate for your situation. When you work with us, we’ll be there to “Rock With You” through all the different scenarios that could arise, so you can then choose the right people for your unique circumstances.

Our two final lessons from Michael Jackson’s story are these: 1) Communicate your wishes openly to your representatives and your family, and 2) Choose the right people to act for you when you no longer can.

By learning from the challenges faced by Michael Jackson’s family, you can ward off the possibility of a similar outcome for your loved ones. Your careful planning today can pave the way for a smoother transition of your assets in the future, ensuring that you are able to support your family after you’re gone, rather than creating a mess for them to handle without you. I’m here to serve you and help you ensure your estate doesn't become a "Thriller" of legal battles, but instead a harmonious transition that would make even the King of Pop proud.

“You Are Not Alone” - We’re Here for You

It’s “Human Nature '' to want to avoid thinking about your death, much less plan for it. We get it. But when we face our mortality, we’re able to live a more fulfilling life. The good news is that you don’t have to deal with it alone. We’re here to support you every step of the way.

As a Personal Family Lawyer Firm, we help you create a Life & Legacy Plan from a place of education and intention, so that your loved ones stay out of court and conflict. And once you’ve created your plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your legacy preserved.

Click here to schedule a complimentary 15-minute consultation to learn more:

To the Millennials: The Time to Plan Is Now

Tue, 30 Jul 2024 13:15:00 GMT

As a millennial, you are contributing to the workforce in a major way and are making positive changes in the world around you. We understand that your concerns may differ from someone of a different generation, and we are here to help you craft an estate plan that protects your future and addresses the things that matter most to you. The following are some important steps you need to take to ensure that you have a comprehensive estate plan.

Choose Your Key Decision-Makers

If you become incapacitated (for example, due to a severe injury, dementia, or a stroke) and can no longer manage your affairs during your lifetime, no one can step in for you without court intervention unless you have legally designated someone to act on your behalf while you still had the mental capacity to do so. By law, no one can automatically make your medical decisions or manage your finances—not even your parents or your spouse.

If the court is required to appoint someone to make decisions for you and you are unmarried, state law will generally prioritize your immediate family members over a significant other or friend to take on this role. You need the right legal tools to ensure that you get to choose the people who will be making these important decisions.

If you need someone to make financial decisions for you, you need to make sure that you name an agent under a financial power of attorney and give them whatever authority you are comfortable giving. You can allow the agent to act on your behalf immediately after you sign the document (in other words, without waiting until you are no longer able to manage your affairs) or require that the agent waits until you cannot act (depending on the type of financial power of attorney prepared for you and your state’s law).

You may also need to have someone make medical decisions for you if you are unable to make or communicate your wishes. You must appoint an agent under a medical power of attorney to carry out this role. It is important to remember that these are two different roles and two different legal tools. You have the option of selecting the same or different people to act in these roles depending on skill sets or other considerations.

Make Sure to Fill Out All Employment Forms Appropriately

According to a 2023 article analyzing U.S. Census Bureau data, millennials make up the largest group of individuals in the workforce at 49.5 million people, as compared to 42.8 million Gen Xers, 17.3 million baby boomers, and 17.1 million Gen Zers. ^[1] Many jobs come with employer-provided life insurance and the ability to contribute to a retirement plan. These are two very important financial tools. However, you must review the beneficiary designations for these tools and ensure that they have been completed correctly.

If the beneficiary designations are not filled out properly or are not filled out at all, the money may end up going through probate and distributed according to your will or, if you do not have a will, according to the state’s rules. Not only does this mean that you may not be able to choose who gets this money, but your loved ones may also end up going through the probate process, which can be time-consuming and costly. Alternatively, some accounts or policies have their own rules about what happens if the beneficiary designation form is not filled out. In that case, the retirement account or life insurance policy agreements will determine who will get the money and how much they will receive. In both of these cases, you are not in control of who receives these accounts and policies.

In addition to ensuring that the beneficiary designation is completed, you also need to think carefully about whom you want to name as the beneficiary. We can assist you in determining the right beneficiary and the right way to leave the retirement account or life insurance death benefit to carry out your wishes.

Naming an Individual as a Life Insurance Beneficiary

While leaving a lump sum to a loved one sounds like an easy and lovely way to be remembered, it comes with potential drawbacks. In most cases, the beneficiary will receive the death benefit in one lump sum to do with as they please. This may make administration easy, but the lump sum would then be vulnerable to your beneficiary’s creditors, divorcing spouse, or a lawsuit. Further, you may believe that your beneficiary is not able to handle inheriting a large sum of money all at once (or your beneficiaries may be minor children or individuals with special needs). If the death benefit for your life insurance policy is rather large, you may want to investigate other options.

Naming a Trust as a Life Insurance Beneficiary

Using a trust can be a great way to protect the inheritances you leave behind for your loved ones. If you designate your trust as a beneficiary, the lump sum is paid to the trustee, and the trustee will then use the money according to the instructions you have provided in the trust agreement. This means that you can dictate what the funds will be used for and possibly add provisions that make it more difficult for your beneficiary’s creditors, divorcing spouses, or lawsuit plaintiffs to reach the funds.

Naming a Charity as a Life Insurance Beneficiary

Making a charity the beneficiary of your life insurance policy can be a great way to leave a philanthropic mark at your passing. At your death, the death benefit can be paid directly to the charity. When leaving money to a charity, you need to work with the organization to understand their needs and any special requirements that must be met for them to be able to accept your donation. Gathering this information at the time you create your estate plan is incredibly important if you have specific requests for how the money will be used. You may need additional planning tools to ensure that the death benefit is distributed and used the way you want.

Naming a Spouse as a Retirement Beneficiary

Many married couples look at saving for retirement as saving for their joint retirements. This often leads to the spouse being named as the primary beneficiary of a retirement account. In some cases, the spouse must be named as the primary beneficiary unless they consent to someone else being named as the primary beneficiary. Naming the spouse as the direct beneficiary of the account will likely give the spouse the option to transfer the inherited account into their own retirement account (often called a spousal rollover) and treat the account as their own.

This can provide additional asset and bankruptcy protection since the spouse would be the account's new owner. However, this option is only available to surviving spouses. Alternatively, the spouse could keep the account separate from their own retirement assets as an inherited account. The spouse may be able to use their life expectancy when withdrawing money from the retirement account instead of being locked into the 10-year payout.

Naming a Minor Child as a Retirement Beneficiary

A minor child who inherits retirement assets as a direct beneficiary may take small distributions (called requirement minimum distributions, or RMDs, which are based on their life expectancy) every year until they reach the age of 21. At that age, they are required to take the remaining balance of the account within 10 years, or by the time they reach the age of 31. While children are still minors, their RMDs will likely be held in a protected account overseen by their guardian or conservator until they reach the age of majority in their state of residence (usually between the ages of 18 and 21). Once the child becomes an adult, they can choose to make periodic withdrawals during the 10-year period, or they can choose to withdraw everything all at once. Once the child is an adult, they are free to make whatever decisions they want.

Naming an Adult Loved One as a Retirement Beneficiary

An adult loved one may be considered part of the group that is required to receive the entire retirement account within 10 years of the account owner’s death unless some other exception applies. However, nothing prevents an adult beneficiary from withdrawing the entire retirement account balance the day they inherit it.

Naming a Trust as a Retirement Beneficiary

Another option for naming a beneficiary of a retirement account is to create a trust for your loved one and name the trust as the beneficiary (rather than naming your loved one individually). This option can work for see-through trusts that meet certain criteria under the law and allow the applicable trust beneficiaries to be treated as beneficiaries of your retirement account.

There are two types of see-through trusts: conduit trusts and accumulation trusts. A conduit trust requires that all distributions made from the retirement account to the trust are distributed to the beneficiary (or used for the beneficiary’s benefit) as soon as the trust receives it. The terms of the trust can ensure that the full distribution period is observed and that a beneficiary does not liquidate the retirement account immediately.

An accumulation trust allows the trustee to decide whether to pay out the withdrawals to the beneficiary (or for the beneficiary’s benefit) from the retirement account or to retain the funds in the trust. As a result, the full amount of the funds distributed from the retirement account to the trust can stay in the trust and can potentially be protected from claims made by outside creditors. Like a conduit trust, the accumulation trust will enable you to ensure that the beneficiary cannot liquidate the retirement account immediately after you pass away. With both types of trusts, you can dictate who will inherit the retirement account if the named beneficiary passes away before they receive the entire account.

Naming a Charity as a Retirement Beneficiary

Another option is to name a charity as the beneficiary of your retirement account. Because the charity would receive the distribution, there would be no income tax consequences for the charity or you. Although you would still have to count the retirement account as part of your estate, the fact that the account is going to charity (so long as it is a qualified organization) means that there will be a reduction in the amount that would be subject to estate tax, and therefore less tax would potentially be due.

Have a Game Plan If You Are Not Married

According to Statista, only 44 percent of millennials were married between the ages of 23 and 38 in 2020, while 53 percent of Gen Xers, 61 percent of baby boomers, and 81 percent of the silent generation were married between those ages. ^[2] Just because you are not married does not mean that you do not have a loved one whom you care for and would like to provide for when you pass away. If you do not create a proactive estate plan, your money and property will be distributed according to rules established by the state. These laws typically prioritize giving your money and property to your spouse, children, parents, and siblings. An unmarried significant other will have no right to your money and property. You need a proper estate plan if you want money and property to go to someone other than your family members.

Do Not Forget Your Pet

Another unique characteristic of millennials is that they make up the largest percentage of current pet owners, according to Forbes. ^[3] These beloved family members need care and attention, much like a child does. It is therefore important that you address your pets in your estate plan. The extent to which you include them in your estate plan can vary depending on the types of pets, the number of pets, the pet’s current health, and the pet's ongoing needs.

Who Will Take Care of Your Pet?

The role of pet caregiver is similar to the guardian of a minor child. This person will care for your pet if you no longer can. Not only is it important to make sure that you have chosen a caregiver for your pet; you should also choose backups just in case your first choice cannot care for your pet. You can leave detailed instructions or general recommendations for your pet’s care, whichever works best for your pet’s situation.

You can also decide whether you would like to set aside money to help the caregiver cover the pet’s cost of care. Some people choose to give their chosen caretaker a one-time monetary gift. Others may consider creating a budget to more accurately determine the amount they want to leave for their pet’s needs. Your approach will be based on the available funds and your caretaker’s ability to assume the financial responsibility of caring for your pet. When dealing with a larger sum of money, it is important to consider how it will be managed. Some people are comfortable giving the full amount to the caretaker so that the caretaker can easily access the money for the pet’s needs. Others prefer a trust to hold the funds and ensure that some oversight is in place. This can be done by using a trustee to manage the funds.

Lastly, you will want to consider whether you would like to provide compensation for your chosen caretaker as a thank-you for the time and energy required to care for your beloved pet.

Now Is the Time to Plan

It is not pleasant to think about what will happen if you cannot manage your own affairs or when you die. We are here to walk you through some important considerations so you can have peace of mind knowing that you and your loved ones (human and animal alike) are prepared for whatever life may throw at you. Call our office to schedule your appointment.

What Is Next for Your Estate Plan?

Wed, 24 Jul 2024 13:15:00 GMT

Having an estate plan is a great way to ensure you and your loved ones are protected today and in the future. When creating an estate plan, we look at what is going on in your life at that time. But because life is full of changes, it is important to make sure your plan can change to accommodate whatever life throws your way. Sometimes, we can make your first estate plan flexible to account for potential life changes. Other times, we must change or add to the tools we use to ensure that your ever-evolving wishes will be carried out the way you want.

Life Changes that Could Impact the Tools in Your Estate Plan

Life is constantly changing. The following are some important events that may require you to reevaluate your estate plan:

● The value of your accounts and property have increased

● Your pay has increased

● The balance of your retirement account has grown significantly

● You acquired real estate in another state

● You received an inheritance

● You have a new spouse, significant other, or minor child that you want to provide for

Ways We Can Enhance Your Estate Plan

It is important to know when you create your first estate plan that you are not locked into this plan for the rest of your life. The following are common changes we can make to your estate plan to ensure that we adequately address your evolving concerns and wishes.

Transitioning from a Last Will and Testament to a Revocable Living Trust

A will (sometimes referred to as a last will and testament) is a tool that allows you to leave your money and property to anyone you choose. It names a trusted decision maker (a personal representative or executor) to wind up your affairs at your death, lists how your money and property will be distributed, and appoints a guardian to care for your minor children. If you rely on a will as your primary estate planning tool, the probate court will oversee the entire administration process at your death. A will may adequately meet some clients’ needs.

On the other hand, a revocable living trust is a tool in which a trustee is appointed to hold title to and manage the accounts and property that you transfer to your trust for one or more beneficiaries. Typically, you will serve as the initial trustee and be the primary beneficiary. If you are incapacitated (unable to manage your affairs), the backup trustee will step in and manage the trust for your benefit with little interruption and with less potential for costly court involvement. Upon your death, the backup trustee manages and distributes the money and property according to your instructions in the trust document, again without court involvement.

If your wealth has grown or you have new loved ones to provide for, you may find the privacy, expediency, and potential cost-savings associated with a revocable living trust more appropriate for your situation.

Adding an Irrevocable Life Insurance Trust

At some point, you may decide that you need life insurance—or more of it—to provide for your loved ones sufficiently. If the value of your life insurance is especially high, you may want to consider adding protections for the funds in your estate plan, as well as engaging in estate tax planning. Both goals can be accomplished by using an irrevocable life insurance trust (ILIT). Once you create the ILIT, you fund it either by transferring ownership of an existing life insurance policy into the trust or by having the trust purchase a new life insurance policy. Once the trust owns a policy, you then make cash gifts to the trust to pay for the insurance premiums.

These gifts can count against your annual gift tax exclusion, so you likely will not owe taxes at the point of these transfers. Upon your death, the trust receives the death benefit of the policy, and the trustee holds and distributes the money according to your instructions in the trust document. This tool allows you to remove the value of the life insurance policy and the death benefit from your taxable estate while allowing you to control what will happen to the death benefit. An ILIT can also be helpful if you want to name beneficiaries for the trust who differ from the beneficiaries you name in other estate planning tools.

Adding a Standalone Retirement Trust

If you have been contributing to your retirement account over the years, the balance has ideally increased. If you want to provide for minor children or loved ones who are not good at managing money, you may want to name a trust as the beneficiary of your retirement account as opposed to naming your loved ones directly. Naming an individual directly as a beneficiary will allow them to inherit the account without restrictions or protections.

A standalone retirement trust (SRT) is a special type of trust that is separate and distinct from your revocable living trust. It is designed to be the beneficiary of your retirement accounts so that the trust becomes the owner of the account after your death. The SRT is only meant to hold retirement accounts. When the SRT is created as an accumulation trust, the trust can protect the inherited retirement account from the beneficiary’s creditors as well as guardianship or probate proceedings.

An accumulation trust requires that any withdrawals taken from the retirement account be held in the trust (not given directly to the trust beneficiaries) and distributed to the beneficiaries according to the instructions you lay out in the trust agreement. There are, of course, drawbacks to an accumulation trust. One such drawback is that because income is held in the trust and not automatically distributed to beneficiaries, the income is taxed at the trust income tax rate, which is often higher than the individual beneficiary’s tax rate. Most people, however, find that the benefits outweigh this potential burden. An SRT ensures that the inherited retirement account remains in the family and out of the hands of a child-in-law, former child-in-law, or creditor. It can also enable proper planning for disabled or special needs beneficiaries.

This type of trust can also be easier for your backup trustee to administer because they only have to worry about one type of asset: retirement accounts. An SRT can also be helpful if you want to name beneficiaries different from those you have named in other estate planning tools.

Adding a Charitable Trust

As you accumulate more wealth or become more philanthropically inclined, you may wish to include separate tools to benefit a cause that is near and dear to your heart. Depending on your unique tax situation, using tools such as a charitable remainder or charitable lead trust can allow you to use your accounts or property that are increasing in value to benefit the charity while offering you some potential tax deductions.

A charitable remainder trust (CRT) is a tool designed to potentially reduce both your taxable income during life and estate tax exposure when you die by transferring cash or property out of your name (in other words, you will no longer be the owner). As part of this strategy, you will fund the trust with the money or property of your choosing. The property will then be sold, and the sales proceeds will be invested in a way that will produce a stream of income. The CRT is designed so that when it sells the property, the CRT will not have to pay capital gains tax on the sale of the stocks or real estate. Once the stream of income from the CRT is initiated, you will receive either a set amount of money per year or a fixed percentage of the value of the trust (depending on how the trust is worded) for a term of years. When the term is over, the remaining amount in the trust will be distributed to the charity you have chosen.

A charitable lead trust (CLT) operates in much the same way as the CRT. The major difference is that the charity, rather than you as the trustmaker, receives the income stream for a term of years. Once the term has passed, the individuals you have named in the trust agreement will receive the remainder. This can be an excellent way to benefit a charity while still providing for your loved ones. Also, you may receive a deduction for the value of the charitable gifts that are made periodically over the term. These deductions may offset the gift or estate tax that may be owed when the remaining amount is given to your beneficiaries.

Adding Documents to Care for Your Minor Child

If you have not reviewed your estate plan since having or adopting children, you should consider incorporating some additional tools into your estate plan. Some states recognize a separate document that nominates a guardian for your minor child should you be unable to care for them, even if you are still alive. You can also reference this document in your last will and testament. Some people prefer using this separate document because it is easier to change the document than it is to change your will if you want to choose a different guardian or backup guardian for your minor child.

Another tool recognized in some states is a document that grants temporary power of attorney over your minor child. This can be used if you are traveling without your child or are in a situation where you are unable to quickly respond to your child’s emergency. This document gives a designated individual the authority to make decisions on behalf of the minor child (with the exception of agreeing to the marriage or adoption of the child). This document is usually only effective for six months to a year but can last for a longer or shorter period, depending on your state’s law. You still maintain the ability to make decisions for your child, but you empower another person to have this authority in the event you cannot address the situation immediately.

Let Us Elevate Your Planning

We are committed to making sure that your wishes are carried out in the way that you want. For us to do our job, we must ensure that your wishes are properly documented and that any relevant changes in your circumstances are accounted for in your estate plan. If you need an estate plan review or update, give us a call.

Turn Social Media Criticism into Business Opportunity - Part 1

Tue, 23 Jul 2024 13:30:00 GMT

As a small business owner, navigating the world of social media reviews can be daunting. A single negative review can feel like a personal attack and a potential threat to your brand’s reputation. However, handling these reviews with grace and strategy - as well as the support of a trusted advisor - can actually strengthen your brand and demonstrate your commitment to excellent customer service.

In this two-part series, I’ll walk you through 10 effective strategies to protect your business from the impact of public negative feedback. This week we’ll look at the first 5 strategies.

Strategy 1: Stay Calm and Assess the Situation

Most likely, reading negative feedback on social media will rattle you and you’ll feel it in your body. But it’s important to stay calm. This is not to say that your emotional response isn’t valid; it certainly is. It’s easy to take negative reviews personally, especially when you’ve put your heart and soul into your business. So if you need time to process the emotions, take the time. Then revisit the situation when you are calm. Whatever you do, DO NOT immediately respond publicly to the criticism. A calm and composed approach is necessary to handle the situation effectively.

Once you’re in a calm frame of mind, carefully re-read the review with the lens of understanding the writer’s perspective. This initial assessment will help you determine the best course of action.

Then to assess the situation effectively, ask yourself the following questions:

● What is the main issue the customer is highlighting?

● Is this an isolated incident or part of a broader pattern?

● Can the issue be resolved quickly, or does it require more in-depth attention?

● Is this an opportunity for me to learn something new or adopt new ways of doing business?

● Is this an opportunity to turn an unhappy customer into a raving fan?

By answering these questions, you’ll be better equipped to formulate a thoughtful and appropriate response.

Strategy 2: Respond Promptly

In the fast-paced world of social media, a prompt response is crucial. A delayed response can give the impression that you don’t care about customer feedback or that you’re not attentive to your online presence. So after you’ve assessed the situation, aim to respond within 24 hours to show that you are proactive and engaged.

When crafting your response, be sure to:

● Acknowledge the review and the issue raised.

● Express empathy and understanding.

● Outline your plan to address the problem.

For example, a timely and effective response might be: “Thank you for your feedback. We’re sorry to hear about your experience and would like to make it right. Please reach out to us directly so we can assist you further.”

Strategy 3: Be Respectful and Courteous

This seems obvious but is worth mentioning: it’s essential to maintain professionalism and courtesy in your response. Even if the review is harsh or unfair, responding with kindness and respect reflects your brand well. Avoid getting defensive or dismissive, as this can escalate the situation and damage your company’s reputation.

Use language that is calm, respectful, and aligned with your brand’s voice. Here’s an example: “We apologize for any inconvenience you experienced. We strive to provide excellent service and are committed to resolving this issue to your satisfaction.”

Strategy 4: Address the Specific Issue

When addressing the issue raised in the review, be specific and transparent. If the problem resulted from an error on your part, acknowledge it and explain the steps you’re taking to rectify it. This honesty helps build trust with your customers.

For instance, if a customer complains about a defective product, your response could be: “We’re sorry to hear that you received a defective item. We are issuing a full refund and sending a replacement immediately. We are also reviewing our quality control processes to prevent this from happening in the future.” If you’re at all in doubt about how to appropriately address the specific issue in a way that doesn’t put your business at risk, call me and I’ll walk you through it.

Strategy 5: Take the Conversation Offline

Taking the conversation offline often leads to a more satisfactory resolution. By offering to discuss the issue privately, you show your willingness to handle the situation discreetly and professionally. This approach also prevents a prolonged public debate that could attract more negative attention. You don’t want that.

Here’s an example of language you could use: “We appreciate your feedback and would like to discuss this further to resolve the issue. Please send us a direct message with your contact details, and we will get in touch with you promptly.”

These 5 strategies will help you handle negative public criticism on social media, but these are not the only strategies I have for you! Come back next week for 5 more strategies to protect your business and your brand.

The Trusted Advisor You Need

As your trusted LIFTed Business Advisor, I understand the critical importance of effectively handling negative feedback to protect your brand’s reputation. Having support and strategies for responding to negative reviews not only helps you build trust with your customers but also prevents potential conflicts that could harm your business. That’s why I offer a comprehensive LIFT Business Breakthrough Session where we’ll analyze your current business foundations - including protecting your business from risk - and develop a plan to address any gaps. Together, we’ll ensure that your business is well-equipped to handle criticism constructively. With my support, you can confidently engage with your customers, safeguard your brand’s reputation, and focus on what you do best—growing your business.

Book a call here to learn more and get started today.

Avoiding Common Estate Planning Pitfalls

Wed, 17 Jul 2024 13:15:01 GMT

If you’re a parent, you've always strived to provide the best for your family, ensuring their well-being and securing their future. However, even the most well-intentioned plans can falter if you overlook the complexities of estate planning. So, let’s celebrate all of you parents and explore some common pitfalls that parents often encounter, then offer practical strategies to navigate them successfully.

Heads up before we dive in; I’ll provide some stories below that illustrate what happens when a parent hasn’t created an estate plan or hasn’t updated it over time. The names of the people below are made up, but the scenarios I’ll describe are common.

Pitfall No. 1: Procrastination

If you’re a parent, the weight of responsibility for your family's well-being often rests heavily on your shoulders. However, even the most well-intentioned plans can fail if you overlook the complexities of estate planning. One of the most significant pitfalls is procrastination, or postponing the process under the assumption that you have ample time or that your assets are currently too modest to warrant formal planning. But the truth is that estate planning is crucial for individuals of all ages and asset levels! Unexpected events can occur at any time, leaving your loved ones in a bad situation if you haven't properly documented your wishes.

Take for example, John, a 45-year-old father of three, who put off creating a will, thinking he had decades ahead of him. You can’t really blame him, can you? Many of us are in the same boat. However, he passed away tragically and unexpectedly, leaving his family to deal with his affairs in the court process called probate. The probate process was lengthy, and his assets were frozen and unavailable for his kids until the court process played out. In addition, probate drained his assets, so there wasn’t as much to leave his kids in the end.

I doubt this is what John would have wanted. So dads, to avoid the procrastination trap, it's essential to approach estate planning with a sense of urgency. Start the process as soon as possible, and review your plan regularly to ensure it remains aligned with your evolving circumstances and family dynamics (keep reading for more information on how I can help!).

Pitfall No. 2: Failing to Update Your Plan Over Time

This brings us to another pitfall: failing to update your plan after significant life events, such as marriages, divorces, births, or deaths. Life is inherently dynamic, and your estate plan should reflect those changes. Your plan should reflect your life as closely as possible, otherwise it could become ineffective or even invalid. And if that happens, you end up like John, even if you already have an estate plan.

Updating your estate plan over time is crucial. So make a habit of reviewing your plan at least every three years, preferably annually, or whenever a major life event occurs. When you work with me, I will help you ensure your plan accurately reflects your current wishes and aligns with any changes in state or federal laws.

Pitfall No. 3: Not Communicating With Loved Ones

Contrary to common belief, estate planning is not solely about legal documents, such as a Will, Trust or Power of Attorney. Documents are merely the byproduct of good estate planning. The real power of estate planning is in having open and honest communication with your loved ones. However, many parents make the mistake of keeping their estate plans a closely guarded secret, leaving their families in the dark about their intentions and wishes. This lack of transparency can breed misunderstandings, conflicts, and resentments that can undermine the effectiveness of your plan and strain family relationships.

Let’s look at Amy’s story for a greater understanding. Amy, a successful business owner and loving parent, always assumed her oldest son would take over the family business after her passing. So Amy’s estate plan included a provision wherein her oldest son inherited the business. When Amy died, however, her son revealed that he had different career aspirations and didn’t want to run the business. This led to family conflict - because Amy didn’t have a “Plan B” in her estate plan.

As a result, the family had to go to probate court, spending lots of time, energy, attention, and money, to get the business transferred to the one family member who wanted to run the business. Had Amy discussed her wishes openly, the family could have addressed their concerns together and arrived at a mutually agreeable solution that would have saved them the unnecessary hassle of probate court.

So what can you learn from Amy’s story? Share your wishes with your family members, explain your reasoning, and address any concerns they may have. This open dialogue can foster a deeper understanding and strengthen the bond between you and your loved ones. It also allows your loved ones to provide valuable insights and perspectives that can help refine and improve your plan. What a loving gift to give your family!

Pitfall No. 4: Not Working With a Professional

The last pitfall I’ll address is going at it alone, or doing your plan cheaply online. As I pointed out above, estate planning is not just about creating a few documents and putting them away on a shelf until something happens. There’s much more to it.

Instead, work closely with an estate planning firm like ours, who can help you craft a plan that fits your unique family dynamics, wishes and assets, as well as keep in touch over time to ensure your plan is updated and works when you need it to. At my firm, we support you with all this and more, including helping you structure your plan in a tax-efficient manner, minimizing the impact of taxes on your assets and ensuring your loved ones receive the maximum benefit from your estate.

I also help you address any unique circumstances within your family, such as a family business, a child with special needs or a family member with addiction issues, ensuring that your plan is tailored to meet the specific needs of your loved ones.

So parents, after reading this, I hope it’s clear that estate planning is a profound expression of your love and responsibility as a parent. By taking action now, you can navigate the pitfalls and create a lasting legacy that transcends your lifetime.

Remember, your knowledge and attention to detail today can shape the future of your loved ones for generations to come.

How We Support You to Avoid These Common Pitfalls

As a Personal Family Lawyer Firm, we understand that protecting your family goes far beyond just legal documentation. Our mission is to empower you to enshrine your hopes, values, and profound love for your children into a comprehensive plan that preserves your family's integrity for generations to come. We take the time to truly understand what family means to you—the struggles you overcame, the values you hold dear, the future you envision. And then we help you craft a tailored estate plan that meets your needs and stays updated over time.

So, give yourself and your children the greatest gift: your love. Book a call with our office to learn how we can support you, and by extension, your entire family. Simply click on the scheduling link here :

They’re Not Kids Anymore! Navigating Your Child’s Transition Into Adulthood

Wed, 10 Jul 2024 13:00:11 GMT

When your child turns 18, they’re legally considered an adult even though they have a lot more growing to do (though they may not think so!). Just like any other adult, their health and financial information is protected by privacy laws. But unlike any other adult, that’s still your child and you want to be there to support them in a crisis. Unless you’ve planned ahead you won’t be able to step in and support your child.

As an estate planning attorney, I often see families caught off guard when I tell them this. Like those families, you may also assume that as a parent, you’ll always have a say in your child’s medical and financial matters. But you don’t. Under the law, you have just as much access to their medical and financial information as you do for Joe down the street (which is none).

The good news is that with proper planning, you can help your newly-minted adult child navigate this transition and ensure you’re able to step in if something happens. Here I’ll share 3 strategies to help you and your child make the transition to their adulthood as easy as possible.

Strategy 1: Education

The first strategy for a successful transition to adulthood is education. At my firm, I start every client relationship with education. That’s because I believe that education equals empowerment, which supports you to make the right choices for yourself and your family. Young adults also need to be empowered through education. The more you can teach your child about their new financial and legal responsibilities, the more empowered they’ll be to make the right decisions.

If you haven’t already started talking with them about legal and financial matters, now is the time s. Start with a kind of budgeting we call “money mapping”. Explain the importance of tracking their income and expenses, setting financial goals, and investing wisely, both now and for the future.

Help them understand the basics of banking, such as how to use checking and savings accounts, the benefits of maintaining a good credit score, and assist them in setting up their own bank account if they don’t already have one. Explain how to avoid overdrafts and the significance of keeping track of their balance. Introduce them to how to access credit, and use it responsibly. Explain how credit cards work, the importance of paying off balances in full each month, when it’s okay to carry a balance, and the long-term benefits of building a positive credit history.

And let’s not forget your child’s new tax obligations. Teach them how to file taxes, what documents they need, and how to understand their W-2 forms, or what it means to be a 1099. Explain the importance of keeping accurate records and how to navigate basic tax software.

Health care is another critical area where your child needs education. Let your child know that you can’t make medical decisions for them and you won’t have access to their health records anymore - unless they give it to you. I’ll cover which essential documents they need in a minute, but first, let’s talk about the importance of communication in helping them document their wishes properly.

Strategy 2: Encourage Communication

Adulthood often involves having difficult conversations (as if I’m telling you anything you don’t know!). Two of those conversations to have with your child have to do with their healthcare and financial decisions in the event of an emergency.

First off, I want to say that even thinking about your child being in an emergency medical situation is hard to think about, much less talk about. And it will probably be much harder for you than it will be for them. It’s OK. Take a deep breath. You can do this!

After you’ve breathed your way to calm, have an open conversation about what your child would want to happen in various medical scenarios. If they became incapacitated, who would they want to make decisions on their behalf? Both parents or one of you first, then the other? Or do they want anyone else involved in the medical decisions, if they cannot make them on their own. Be open to the possibilities that they have other people in their life that they may want to include, and be glad they are telling you about it, if that’s the case.

Do they know what a ventilator is and whether they’d want one if it became an issue? What about a feeding or hydration tube? And what about resuscitation? It’s necessary to talk about these things so your child’s wishes are honored. Who would they want to have access to them, in case of an accident or an illness? Once you know the answers to these questions, you can help your child create a health care directive and medical power of attorney.

Have the same conversations about finances. Do you know which and how many financial accounts they have? If they’re in college, how will you access their account to stop tuition payments or housing payments if necessary? Will you be able to access their checking account if bills need to be paid? Your child may be reluctant to discuss these matters with you, but assure them you have no intent to violate their autonomy. You simply want to be there for them, if needed.

Strategy 3: Legal Planning

Once you and your child have had these difficult conversations, emphasize the need to get a legal plan in place so their wishes are documented and honored. At the least, your adult child’s legal plan should include the following documents:

Health Care Power of Attorney (or Proxy). A health care proxy grants someone, usually you, the authority to make medical decisions on your child’s behalf if they cannot. You can authorize treatment and care and other actions, such as transfers.

HIPAA Authorization. The HIPAA Authorization is equally important. HIPAA (Health Insurance Portability and Accountability Act) is designed to protect patient privacy, but it can also prevent you from accessing your child’s medical information without their explicit permission. By signing a HIPAA Authorization, your child can ensure that you can speak with doctors and receive updates on their condition.

Living Will. A Living Will is another important document to consider. This outlines your child’s wishes regarding end-of-life care, such as whether they want to receive life-sustaining treatments. Having these preferences documented can provide clarity and guidance during difficult times, ensuring that their wishes are honored.

Power of Attorney. A Power of Attorney allows your adult child to appoint someone (again, usually you) to manage their financial affairs if they are unable to do so. This can include everything from paying bills to managing bank accounts and handling investments. Without this document, you might find it difficult to step in and help when needed.

It may also be important for your adult child to have a plan in place for what happens after death. If that’s the case, they need a will or trust. Reach out to me and I can educate you and your child on whether post-death planning is needed at this stage in your child’s life.

Finally, life circumstances will change, so let your child know it’s important to review their documents regularly and update them as needed. Encourage your young adult to revisit their decisions periodically, especially if they experience significant life changes such as getting married, moving to a new state, or starting a new job. At our firm, constant contact is part of our process so our clients never have to remember on their own to update their plan. We do the remembering for you.

Your Next Step

Now that you are armed with 3 strategies for navigating your child’s transition into adulthood, your next step is to book an appointment with our firm so we can support you to have these conversations, and to get your child’s legal plan in place.

Now, before you go thinking that you don’t need an attorney and can use a cheap online tool, or even AI, I encourage you to think about what’s at stake. Your child’s health and well-being. Your child’s growth. The opportunity to teach your child about how to prioritize the things that matter most. When I work with you, one of the best things I can do is to get to know your children as they become adults. Ideally, it will be me (or my firm) that they’ll turn to for guidance throughout their lifetime, and to be there for them, when you can’t be. No cheap legal plan can do that.

The Support You and Your Child Need

As a Personal Family Lawyer Firm, we know that navigating the transition to adulthood can be challenging, both for you and your child. Understanding the legal changes that come with turning 18 and using the 3 legal documents (and the conversations that go with them) in this article can help you provide the support and guidance your child needs. But you don’t need to navigate this transition alone. We can educate you and your child about their new legal responsibilities, support you to have the hard conversations, and help your child put a legal plan in place.

Contact us to learn how our Life & Legacy Planning process supports your family to make the very best decisions about the things that matter most.

Click here to schedule a 15-minute conversation:

The Surprising Secret to Business Success: Replacing Yourself!

Tue, 09 Jul 2024 14:30:06 GMT

You started your business as a labor of love, nurturing it through those tough early years with grit and personal sacrifice. Over time, that seedling grew into a successful enterprise through your sheer force of will and hands-on leadership.

Your business has become an extension of yourself. After all, you are the boss, the visionary, the indispensable driving force behind it all. At least, that's how it may feel. But even for a skilled leader, there is one uncomfortable truth to accept - at some point, you must replace yourself if you want your company to outlive you, whether it’s through a sale, your retirement, your death or incapacity. Paradoxical as it sounds, making yourself replaceable is the ultimate key to ensuring your business's longevity.

In this article, I’ll take you through not only why you need a plan for what happens if you’re no longer involved in your business on a daily basis, but also how to make the tough but right decisions for your business, and what to do to formalize your plans. Let’s start, however, with the first step: cultivating the right mindset.

The Paradox of Replacing Yourself

As an entrepreneur, you've worked incredibly hard to build your company from the ground up. Your business is your baby - the product of your passion, sacrifice, and undying commitment. Probably one of the last things you’re thinking about is either closing it down or handing it off to someone else.

But here's a difficult truth you need to accept: despite how indispensable you might feel, your business cannot rely on you alone to survive in the long run. Someday, whether due to retirement, illness - or of course, death - you won't be around to call the shots anymore. And if you haven't prepared for that inevitability, your life's work could crumble. And your loved ones could end up in court, or even in conflict with each other or your business partner(s) or team members. Your legacy could be tarnished. All these outcomes are avoidable, so long as you’ve planned ahead.

So what does it mean to plan ahead? It means you must make it your mission to systematically replace yourself as the boss. It seems paradoxical, doesn't it? You've worked so hard to get your business off the ground, so why would you willingly give that up? The answer is sustainability - if you want your company to thrive for generations, you need to let go of the reins, at least at some point.

Don't think of it as quitting or admitting defeat. Think of it as the ultimate show of leadership and love. By replacing yourself, your business carries on without being crippled by your absence. It continues to serve people who need your company’s services or products. It continues to provide jobs for your team members. It continues to support your loved ones, if that’s what you want. What a gift you’re giving to your customers and your loved ones!

Think for a minute about what could have happened to Apple after Steve Jobs died. Had he not made a plan to replace himself, it’s possible your iPhone would be just a relic today, maybe even stashed away in a box in your attic. Apple could have been broken up in pieces and sold off, or Steve Jobs’ loved ones tied up in court and in conflict with the other Apple shareholders. Thankfully none of this happened. iPhones are still being made and improved upon each year, and not only that, but new products have been introduced since Jobs’ death. In fact, Apple is still one of the most profitable and influential companies in the world.

You don’t have to be as well-known as Steve Jobs and Apple for the same lessons to apply. Replace yourself and your business continues to serve people and enrich their lives. Don’t replace yourself, and it’s very likely that your business ends when you do. It’s that simple.

Identify Your Successors

So how do you go about replacing yourself? Start by identifying whether you have any internal team members to begin to develop as potential successors, or if you’ll need to consider an outside sale of your Company, or possibly hiring for future succession. Don’t worry about finding a carbon copy of you, but rather molding people who share your vision and can build upon what you've created.

Groom these people over years by delegating bigger responsibilities to them. Slowly but surely, remove yourself from the day-to-day decisions and operations, and see how they step up. Provide candid feedback, guidance and advice, playing more of a coaching and mentoring role.

As you release the reins to others, you’ll necessarily need to shift away from working "in" the business to working "on" or even “above” the business. This is the perfect time to analyze your systems and make sure your business is set up with the right foundations for succession. If you aren’t sure you have the right foundational systems in place (specifically, your legal, insurance, financial and tax systems), engage with a trusted advisor who can help you.

Before I move on to the next section, I want to point out something important. Did you notice above I said “people” instead of “person” when identifying business successors? That was intentional. For the health of your organization, you need a full bench of empowered leaders, not just one person waiting in the wings. Cross-train multiple employees or family members, documenting processes and getting everyone aligned with your company's mission, values and strategic direction. This is not only smart, but ensures continuity across the organization.

The Hardest Part: Let Go of Control

One of the toughest challenges as an entrepreneur is letting go of control and relinquishing the power and final say you've grown accustomed to. You have to fight against instincts of micromanagement and trust that your successors can rise to the occasion when you're not calling every shot. If you don't relinquish that control in stages, the hardship and wisdom won't get transferred.

For the entrepreneur who hung their entire sense of purpose and identity on their business, this can be an incredibly difficult mindset shift. But it's a crucial one for the long-term viability of your life's work. After all, what good is all that success if it gets erased the day you're gone?

Does it mean you have to check out entirely someday? Not at all! You’ll begin by establishing clear key performance indicators (KPIs) to measure so you can ensure your team is hitting their metrics, and that you are able to monitor results even without being involved in the day to day. And, long-term, you may want to stay involved as an advisor, board member, or even just have your name on the wall. The point is to separate your identity and personal involvement from the company's ability to operate successfully.

Make Sure to Formalize Your Plan

So now you know the importance of replacing yourself, you’ve identified successors, and you're letting go of control. It’s important to formalize your plan so it will be honored and enforceable. How do you do that? Work with a professional. As a LIFTed Business Advisor, I can guide you to document your wishes correctly and encourage you to think not only about death and succession, but also about something you may have overlooked - your incapacity. You need a plan not only for what happens if you’re no longer around, but also what happens if you’re around but unable to participate in your business, whether it’s from a terrible accident or a serious illness. You’ll want someone on your side who can walk you through these difficult scenarios so you’re empowered to make the very best decisions for you and your business.

The LIFTed Business Advisor Who Has Your Back

As your LIFTed Business Advisor, I am committed to guiding you through the crucial process of replacing yourself as the leader of your business, allowing your business to carry on without you and make a difference in other people’s lives. Together, we'll create and refine your foundational systems then build a solid plan so your life's work thrives for generations to come. That’s the secret to business success, and that’s the gift you give to your customers, team members, and your loved ones.

Book a call here to learn more and get started today..

Value Freedom? Here’s Why an Estate Plan Is Your Declaration of Independence

Sun, 07 Jul 2024 19:53:03 GMT

As you celebrate the Fourth of July and all it represents - freedom, independence, and the pursuit of happiness - take pride in the ultimate American liberty: the right to decide your own affairs, even after death or in the event of incapacity. An estate plan, specifically a Life & Legacy Plan, is the way to express your liberty. It’s your personal Declaration of Independence. I know; it sounds weird. How in the world can an estate plan give me freedom?

Here’s how: Creating a Life & Legacy Plan (a unique estate planning process I use in my firm) preserves your self-determination, protects your family, grows your wealth, and defines your legacy on your own terms. Just as the Founding Fathers declared freedom from the British crown over two centuries ago, your Life & Legacy Plan declares your autonomy from the courts, state laws, and conflicting viewpoints that could unravel your final intentions. Read on to find out how.

You Have a Plan: It Just May Not Be What You Want

The first thing to know is that you already have a plan for what happens in the event you become incapacitated or when you die. You may not know what that plan is, and you may not like what that plan is! You see, the government has created a plan for you, without your input. Or, you may have already created your own plan, but didn’t really understand the choices you made, haven’t updated it, or may not even own your assets in a way that has them covered by your plan.

When you have a Life & Legacy Plan, you get to override the government’s plan for you with your choices. YOU get to decide exactly how you want your assets collected and distributed - whether that's providing for certain loved ones over others, leaving assets to chosen family members, who aren’t related by blood or marriage, but who have become close kin to you by choice, or donating portions to charitable causes near and dear to your heart.

With a Life & Legacy Plan in place, you maintain that plan throughout your lifetime, so as your assets change, your life changes, and the law changes, so does your plan. It grows with you, rather than becomes stale and outdated over time. Because you aren’t a stagnant human. You are evolving, changing and likely growing. Your plan needs to evolve, change and grow along with you, otherwise it’s not even worth the paper it’s written on.

The Liberation of Making Your Decisions With Eyes Wide Open

Planning for incapacity or death is the equivalent of planning for your best possible life, and for the best possible life of the people you love. It may not have ever been presented to you that way, but think about it - if you accept that you are going to die one day, and you may become incapacitated first, and you want your family and assets to be cared for in a certain way when those things happen, wouldn’t that naturally inform choices you’ll make around the allocation of your resources throughout your life?

We call this “eyes wide open” decision-making, and it leads to the most optimal use and allocation of your resources throughout your life, and makes things as easy as possible for the people you love, in the event of your incapacity or death. For example, when you consider how you want to be cared for in the event of your incapacity, and document those choices, you can then ensure you have the necessary close personal relationships to deliver on your desires, as well as the required financial means to provide for yourself or the people who will care for you (or your kids). Otherwise, you are just leaving it up to happenstance … or a judge … and we call that “eyes squeezed shut/pretend it’s not going to occur” decision-making, and it’s not responsible, mature or kind to yourself or the people you love.

The Power to Choose

The most mature, adult and loving thing you can do for yourself and the people you love is to clarify well in advance how you want to be cared for, if you cannot care for yourself, who should make decisions for you, and how you want those decisions to be made. In addition, it’s critical to provide a roadmap for the people you love, so they know what you have, where it is and how to find it.

Establishing a Life & Legacy Plan does all of that, and it doesn’t matter how much or how little you have because your loved ones will have to deal with it, whether it’s a little or a lot -- and your choices while you are living, healthy and clear empowers them and minimizes their outlay of time, energy and attention they may not have, especially during a time of grief. With a Life & Legacy Plan we help you create, you can also account for special circumstances like children or spouses from previous marriages, loved ones with disabilities, or family members you intentionally want to omit. No more worries about assets getting unfairly split or ending up in the wrong hands.

Finally, holding a family meeting can unite your loved ones around a shared understanding of your intentions rather than driving them apart through conflicts and differing interpretations of your wishes. Your Life & Legacy Plan gives you the power to choose to create more ease for yourself and the people you love.

A Declaration of How You Want to Be Remembered

Your Life & Legacy Plan represents your final declaration of the values and life experiences you'll impart to loved ones and the world at large. Use this opportunity to put your final stamp on how you want your individuality and life's purpose remembered, rather than leaving it up to chance, or leaving a legacy of mess and drama.

So, this Independence Day, make your own personal declaration of freedom by establishing your own comprehensive Life & Legacy Plan. Take pride in exercising your liberties to the fullest by removing all uncertainties over your final affairs and ensuring your true wishes will be honored.

Let Us Be Your Life & Legacy Planning Partner

As a Personal Family Lawyer Firm, Life & Legacy Planning is all we do. We work with you to craft a plan on your terms, taking into account what you want, not what someone else has decided for you. And once you’ve created your plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your legacy preserved.

Contact us to learn more about how we help you exercise freedom over your own choices. Click here to schedule a consultation:

What Can I Not Do as Trustmaker and Trustee of a Revocable Living Trust?

Wed, 26 Jun 2024 13:30:01 GMT

Wills and living trusts are two of the most fundamental estate planning documents. While both accomplish the same primary objective in an estate plan of directing the distributions of your money and property to your desired beneficiaries after you pass away, a revocable living trust, often referred to simply as a living trust or an inter vivos trust, provides added flexibility and functionality, including incapacity planning.

Like other types of trusts, there are three roles under a revocable living trust:

● The person who creates the trust, called the trustmaker, grantor, or trustor

● The person who manages the trust and the accounts and property it owns, known as the trustee

● The person who receives money and property from the trust, called the beneficiary

Before setting up a revocable living trust, you should understand what you can—and cannot—do in your dual role as trustmaker and trustee. Living trusts are complex legal documents that need to be drafted carefully with help from an estate planning attorney.

Two Phases of a Living Trust: Today and Tomorrow

The living trust is a powerful tool that affects your life today and throughout certain events into the future, such as incapacity or death.

The Living Trust While You Are Alive

After creating a trust, as the trustmaker, you must retitle accounts and property that you want to be transferred to the trust—such as real estate, financial accounts, stocks, and bonds—from your name to the trust’s name. Even after this transfer, as trustee, you retain control over them and will manage them for your benefit throughout your lifetime while you have capacity.

Any time before your death, while you are mentally capable of managing your affairs, you have the legal authority to alter, amend, or even revoke the living trust as the trustmaker. For example, you can place additional money or property in the trust or take money and property out of the trust, make investment decisions about the trust’s accounts, add or remove beneficiaries and successor trustees, and change the rules regarding when and how your beneficiaries receive their inheritance.

However, because it is your trust and you retain control over the trust’s accounts and property, there are some things you cannot do.

● You cannot use the trust to shield or protect accounts and property from your creditors.

● You cannot avoid paying taxes on income earned by the trust. Because no separate tax identification number is required for trust income, income on the trust’s accounts and property must be reported on your personal tax return.

● You cannot perform trust-related business, like making investments, taking disbursements, and paying taxes, individually. You will need to sign as the trustee instead of as an individual. This limitation is manageable, however. It usually means you will sign as “John Doe, Trustee of the John Doe Trust” instead of “John Doe.”

The Living Trust After You Die (or Become Incapacitated)

This brings us to the next phase of a revocable trust: the time after your death or incapacitation.

When you pass away or suffer from incapacity (i.e., you cannot administer the trust yourself), a successor trustee of your choosing takes over trust administration per the instructions you provide in the trust document.

Depending on the trust’s terms, the successor trustee may be responsible for managing the trust’s accounts and property for an extended period on behalf of the beneficiaries and terminating the trust and distributing its money and property to the beneficiaries. If you become incapacitated, the successor trustee can serve in this role for as long as you are unable to manage your affairs. While you are alive and unable to manage your affairs, you are not allowed to be a trustee, but you will still be a trust beneficiary, so you will not be left penniless.

Many revocable trusts will close within a few years of the trustmaker’s death. Still, some may remain open for years, such as those holding accounts and property for a minor beneficiary until they hit a certain age or milestone, as specified by you in the trust agreement. In either case, it is a good idea to name a backup successor trustee if something happens to the original successor trustee and they can no longer serve.

Get an Estate Plan That Fits Your Needs and Goals

Creating a living trust makes you a wearer of many hats. You are the creator of the trust, the initial trustee, and the beneficiary. Each role comes with unique powers and duties that apply both now and upon the occurrence of certain future events, such as your incapacity or death.

Please contact us today to schedule an appointment with one of our attorneys so you can learn more about these roles and duties. Only when you understand these roles can you go on to craft your estate plan in a way that will best meet your goals.

10 Survival Strategies for Today’s New Entrepreneur: Part 2

Tue, 25 Jun 2024 13:45:00 GMT

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Welcome back to our exploration of foundational strategies for building a successful business. In the first part of this series, we discussed the importance of partnerships, preparedness, inclusivity, team support, and maintaining a unique business identity. In this second installment, we continue with 5 more strategies that are essential for modern entrepreneurs aiming to thrive in today's competitive market. Let’s get started!

Strategy 6: Embrace Digital Transformation

In today’s fast-paced world, leveraging digital technology is essential for business efficiency and growth. You simply can’t run a business without it. Digital tools can streamline operations, enhance customer engagement, and open new channels for marketing and sales. So invest in building a robust online presence, utilize e-commerce platforms, and explore digital marketing strategies, such as content marketing and social media, to reach a broader audience. And don’t overlook data analytics to gain insights into customer behavior and preferences, which can inform business decisions and strategies. A LIFTed Business Advisor can help you put the data to work for you and create a plan for business growth. Read to the end to find out more.

Strategy 7: Develop Financial Acumen

Sound financial management is the backbone of any successful business. Understanding the basics of accounting and financial analysis is crucial. Keep a close eye on cash flow, as it is the lifeline of your business. Have a line of credit and business credit cards so you’re not only covered during a shortfall, but so you can also grow your business beyond your current revenue limitations. Develop a solid plan for managing expenses and revenue, and use financial forecasts to guide business decisions. Regularly review your financial statements to understand where your money is going and to identify trends or issues early. Educating yourself on financial principles or working closely with a financial advisor can provide a clearer picture of your business’s financial health and guide your growth strategies.

Many entrepreneurs are creative visionaries who may not be comfortable with numbers. That’s why a LIFTed Business Advisor is a crucial member of your team. They can help you learn and feel comfortable managing your finances, and will often have a trusted and vetted financial expert on their team who can offer personalized advice for your business.

Strategy 8: Focus on Customer Experience

Enhancing customer experience should be an ongoing endeavor. High-quality customer service can turn first-time buyers into repeat customers and advocates for your brand, without having to invest more time and money obtaining new customers. Offering a high level of service, therefore, is one of the wisest and most efficient ways to achieve success. So invest in training your staff to provide excellent service, and solicit customer feedback regularly to improve your offerings and ensure your products or services deliver maximum value. Constantly be willing to improve your service, even if you receive negative feedback from customers, and you’ll only learn more and grow.

Strategy 9: Prioritize Sustainability and Regeneration

Today’s consumers are increasingly aware of environmental issues and often prefer to support businesses that prioritize sustainability. Implementing sustainable practices can not only reduce your environmental impact but can also improve your brand’s image and attract a loyal customer base. Consider sourcing materials ethically, minimizing waste, recycling, and using energy-efficient appliances, if applicable. Communicating your commitment to sustainability can also strengthen your relationship with customers and differentiate your business in a crowded market.

The most successful businesses, however, will go beyond sustainability to regeneration. Regeneration means creating more, not just sustaining what you currently have. If you’re merely focused on sustainability, your resources will ultimately dry up, so it’s important to think ahead and innovate. Entrepreneurs who are able to do so will not only survive, but thrive.

Strategy 10: Network and Engage in Lifelong Learning

Never underestimate the power of networking and continuous learning! Attending industry conferences, participating in webinars, and joining professional groups can provide valuable insights and open up new business opportunities. Networking allows you to learn from peers and experts, stay updated on industry trends, and potentially find mentors who have been in your shoes and can provide insightful advice. Additionally, continually updating your knowledge and skills can help you stay competitive and agile in a rapidly evolving business environment.

A note about learning: All business owners make mistakes. But what differentiates successful ones from unsuccessful ones is what they learn from those mistakes. Those who see mistakes not as failure, but as opportunity, will make great strides. Those who see only failure will get stuck in a negative mindset that not only makes business ownership stressful and overwhelming, but can lead to business failure. A LIFTed Business Advisor can help you see opportunities when you may not be able to, and advise you on how to move forward and implement the knowledge you gain.

Bonus Strategy for Local Businesses: Build Strong Community Ties

Starting a brick and mortar business in your local community can offer numerous benefits for growth and success. Engage with local business associations, participate in community events, and explore local government resources that might be available. Building strong community ties can enhance your business's local reputation and create a loyal customer base. Furthermore, local resources such as small business development centers and local business groups can provide invaluable advice and support, helping you navigate the early stages of your business.

And now you’re armed with 10 essential (11 of you have a local brick and mortar company) strategies for business success. You know that building a successful business is a multifaceted venture requiring dedication, strategic planning, and a proactive approach. By implementing these strategies, with the guidance of a trusted advisor by your side, you position your business for growth, resilience, and long-term success. Here's to your entrepreneurial journey—may it be challenging, rewarding, and ultimately prosperous!

The LIFTed Business Advisor You Need

Having a trusted LIFTed Business Advisor at your side for all stages of your business is the best way to achieve success. Whether you’re just starting out or you’re growing your company, locking down these essential strategies with the help of someone who is as invested in your company’s success as you are is a surefire way to achieve success quickly.

And as your LIFTed Business Advisor, I’m here to serve as the trusted advisor you need so you can focus on growth and increasing cash flow with ease and confidence.

Schedule a complimentary call with us today to get started.

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What Happens To Your Social Media Account When You Die?

Sun, 16 Jun 2024 13:15:00 GMT

When you die, what happens to your online life? Each social media platform has its own rules for dealing with the accounts of deceased users, ranging from permanent deletion to transforming accounts into places for mourning and memory.

Understanding these options is essential for managing digital assets responsibly and respecting your wishes. So let’s take a look at the various policies of major social media sites and what you can do to make sure your accounts are handled the way you want. After all, our social media accounts reflect our personalities, interests, and memories, so we want them handled with care.

What Each Platform Allows

Let’s take a look at the practical aspects and discuss what each digital platform allows or requires. Note that these provisions are updated as of April 2024, as this article is being published.

Facebook.

Facebook offers two options for accounts of deceased users: either close the account permanently or convert it into a memorial account where loved ones can share memories. The platform allows you to designate a "Legacy Contact" while you’re alive; someone who can manage your memorialized account by updating your profile picture, accepting friend requests, and posting memories. Importantly, they cannot log into the account or view your private message history.

Instagram.

Instagram also allows accounts to be either memorialized or permanently deleted. A memorialized Instagram account will display a "Remembering" label and will not appear in public spaces like the “Explore” section. The process requires proof of death, such as a death certificate, so someone will need to provide that after you’re gone.

TikTok.

TikTok permits family members or legal representatives to request the deactivation of a deceased user’s account by providing appropriate proof of death. Unlike Facebook and Instagram, and at the time of this writing, TikTok does not currently offer a memorialization option, so your account is permanently removed once the request is processed.

X.

X (formerly known as Twitter) allows the family to close the account of a deceased user. This involves submitting proof of death, after which your account and its contents are permanently deleted. X does not provide a memorialization option.

YouTube. YouTube is covered by Google’s overall policies, which offer a proactive feature called the Inactive Account Manager. This allows you to set instructions for your account if you become inactive for a specified period. You can also choose to have your data shared with trusted contacts or have the account deleted.

LinkedIn.

On LinkedIn, immediate family members or colleagues can request to remove a deceased member's profile by providing proof of death. LinkedIn focuses on maintaining a professional network and so does not offer account memorialization.

How to close or memorialize an account

It’s important to know that social media platforms generally discourage logging into a deceased person's account as it poses privacy and security risks. To close or memorialize your account, family members must directly contact the service and provide the necessary documentation. They won’t be able to make a phone call, either - they’ll have to find out how to close or memorialize your account on each site separately, which can be time-consuming and frustrating. But there’s a better way! You can create a plan that helps your loved ones navigate the process. To do that, you need a trusted estate planning lawyer.

What an Estate Planning Attorney Can Do

A trusted estate planning attorney plays a crucial role in helping manage your digital legacy, ensuring that your wishes for your online accounts are carried out after your passing. Here’s what a skilled attorney can do to help ensure that your loved ones have the necessary information and authority to manage your accounts:

1. Create a Digital Asset Plan

An estate planning attorney can help you draft a digital asset plan that details your wishes for each of your online accounts. This plan can specify which accounts should be closed and which should be memorialized. It includes all kinds of digital assets, from social media accounts and emails to digital wallets and personal blogs.

Your attorney can also guide you in appointing an executor, a person who will be responsible for managing your online assets according to your wishes. A knowledgeable attorney will explain the responsibilities involved and help ensure that the executor has the legal authority they need to act on your behalf with various digital platforms.

2. Provide Necessary Legal Documentation

A skilled attorney can prepare necessary legal documents that authorize your executor to access your accounts. This might include special powers of attorney and directives that are included in your will, trust, or in a separate document.

3. Secure Your Account Information

A trusted attorney can suggest secure ways to store your account usernames, passwords, and any other necessary information. This information can be kept in a way that respects privacy and security but becomes accessible to the digital executor or designated individuals after your death.

4. Update the Plan Over Time

As laws and platform policies change, a trusted estate planning attorney can help update your digital estate plan. This ensures that it remains compliant with new regulations and continues to reflect your wishes accurately.

However, it’s important to know that most estate planning attorneys treat their clients as a “one and done” transaction. Once your plan is signed, they won’t contact you again to ensure that your plan stays updated over time. And they won’t explain that failure to update your plan regularly means your plan won’t work when you need it to. Instead, work with a Personal Family Lawyer who will keep in touch for your lifetime to ensure your plan works.

How We Can Help

We don't merely dispense legal counsel; we safeguard all your assets and guide you to make the right decisions for your unique situation. We take the time to fully understand what’s important to you, and then together, we’ll craft a thoughtful and holistic plan so you and your family can avoid the stress, conflict, and chaos that comes with incomplete planning - including incomplete digital planning.

To learn more about how we approach estate planning from a place of heart and understanding, schedule a complimentary 15-minute call with our office.

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Crafting Your Lasting Legacy With Estate Planning

Wed, 12 Jun 2024 13:15:00 GMT

What is a legacy, really? “Legacy” is often misunderstood and so is estate planning. Legacy and estate planning are often perceived as “only for the wealthy” and/or “philanthropic”. But that couldn’t be further from the truth.

Legacy isn’t just about money or wealth. As a colleague, Ali Katz says: “Legacy is the choices you make now, the actions you take now, the way of being you are now, and the ripple of impact beyond your lifetime.”

Legacy includes capturing your life stories, passing on your values, and ensuring your loved ones have a record of the essence of what matters to you. These are the things you leave behind that mean the most to your loved ones. Money can’t even compare. Thinking of it this way, it’s easy to see that every human has a legacy to create and leave behind, including you!

Estate planning, on the other hand, is something many people think they understand, but really don’t. It isn’t just about getting your Will done, or documenting what your end-of-life health care wishes are. Estate planning, like legacy, encompasses much more. It’s not about getting some documents signed. Estate planning is the vehicle that allows you to leave a legacy.

So let’s dive in for more understanding on what “legacy” really means and how you can secure your legacy for the benefit of your loved ones.

Understanding What Legacy Truly Is

Legacy, at its core, is about connecting the generations, and Life & Legacy Planning is the way to do it. Here’s an example. Consider a teacher who has spent her career fostering curiosity and resilience in her students. She may not have millions of dollars to give away, but she can use her estate plan to leave her personal library to a local school. She may even set up a small scholarship fund in her estate plan so she can continue supporting education long after she’s gone. And, if she has children or close friends she cooks for regularly, she may leave a book full of her recipes they all love.

Her legacy then becomes not just about the resources she left behind, but about inspiring future generations to value learning and perseverance, and nourishment. Similarly, your estate plan can be crafted to perpetuate the principles you deem most important, making your influence felt well into the future.

So now, take a minute to reflect. What principles are most important to you? How do you want to use them to connect your generation to the next?

Estate Planning as a Form of Love

In emphasizing the value of estate planning as the vehicle that allows you to leave a legacy, know that estate planning should be tailored for each person, each person’s family dynamics, and each person’s values. No two people are the same, no two families are the same, and therefore, no two estate plans should be the same. This personal touch transforms estate planning from a mundane task, that most people put off because they don’t see the value, into a powerful act of love.

Proper and customized estate planning can also alleviate the potential for family conflict, which oftentimes results in irretrievably broken family relationships. But when you use estate planning as a vehicle for securing your legacy, it has the power to preserve these relationships and uphold family harmony. Estate planning is then transformed into an enduring gesture of care and love.

Consider as an example a devoted husband and father who deeply valued his family's annual summer retreats to a beloved lakeside cabin. Understanding the special place the cabin held in his and his family’s hearts, he specifically detailed in his Will his wish for the property to remain in the family, passing down to his children and grandchildren.

He also set up a small fund to cover the cabin's upkeep, ensuring that his family would continue to enjoy it without financial burden. In doing so, this loving husband and father not only preserved a cherished family tradition but also created a physical space for remembrance and togetherness, allowing future generations to share in the joy and serenity he found there. This thoughtful element of his estate plan demonstrates how such preparations are acts of love, weaving his memory and values into the fabric of his family’s future.

Take another minute to reflect. How would you craft your own legacy into a plan of action?

Practical Steps to Create Your Legacy

Taking the first step in estate planning can feel daunting, but when you frame it as an act of love and legacy preservation, it becomes a deeply meaningful process. Start by identifying what matters most to you. This could be family traditions, a commitment to charity, a passion for art, or anything else that defines your personal story and values. Begin by listing these priorities and considering how they can be integrated into your estate plan.

Next, consult with an attorney who understands the intersection of legacy and estate planning through a special process called Life & Legacy Planning. An attorney who is part of the Personal Family Lawyer group (PFL) will help you get clear on your values and goals, then together, you’ll create a customized plan that fits you and honors the legacy you wish to leave behind. For instance, if you, like the devoted father in the example above, have a cherished family property, a PFL can advise you on how to set up a trust to manage that property and stipulate how it should be maintained and used by future generations.

A PFL will also record a Life & Legacy Interview that your family will cherish for years. The Interview allows you to express your love, hopes, and reasons behind your decisions and is a comforting and clarifying piece for your loved ones, ensuring they understand your intentions and feel your presence in the provisions you’ve made. You can even record messages to send to beneficiaries that provide stories and details about a special possession or heirloom and why you chose to give it to them.

By taking these steps, you’re not just planning for the future; you’re crafting a legacy that carries your values and love forward, ensuring that your impact on the world persists and that your memory continues to serve as a source of inspiration and unity for those you hold dear.

Today Is an Opportunity for Action

You can take action to get your estate plan in place. Remember, estate planning is not just for the wealthy; it is for everyone. It's about making your mark, creating a legacy that may be remembered for generations, and taking steps to put love into action.

How We Can Help You Take Action Today

As a Personal Family Lawyer Firm, we don't merely dispense legal counsel; we empower you to reflect on how you want to be remembered and how you want to pass on the values you hold dear. We take the time to fully understand what’s important to you, and then together, we’ll craft a thoughtful and holistic plan that results in the greatest gift you can leave your loved ones: your love.

To learn more about how we approach estate planning as the intersection of love and legacy, schedule a complimentary 15-minute call with our office.

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10 Survival Strategies for Today’s New Entrepreneur: Part 1

Tue, 11 Jun 2024 13:30:00 GMT

Any successful entrepreneur will tell you that starting your own business is a thrilling endeavor that requires creativity, resilience, and strategic thinking. Whether you're planning to launch a disruptive tech startup or open a charming local cafe, there are foundational strategies that will help you lay a strong groundwork for success and help you survive (and even thrive) long-term.

This article is the first part of a two-part series designed to guide you through 10 essential strategies for creating a successful business. Even if you’ve already started a business, you’ll learn something new that will catapult your business growth. Ready? Let’s dive in.

Strategy 1: Forge Strategic Partnerships

Collaboration can exponentially increase the resources and capabilities of your business. Effective partnerships combine the strengths, visions, and expertise of different individuals, creating a synergy that can tackle larger projects, share the financial burden, and enhance market reach. When selecting a business partner, look for complementary skills and a shared vision for the business, ensuring that all parties have aligned goals and expectations.

Don’t overlook the value of strategic partnerships outside of business partners. Having a trusted advisor at your side, who can guide you to make strategic decisions or avoid liability, is invaluable. A LIFTed Business Advisor helps ensure you have the right systems in place to make your business run smoothly and efficiently, will help you see potential areas of risk that could derail your business, help you put in place plans to avoid risk, and advise you on the ramifications of any business decision you make before you make it. If you’re fully committed to your company’s success, a LIFTed Business Advisor will help you get there with as much ease as possible.

Strategy 2: Prepare for the Unexpected

Business ownership is inherently dynamic and unpredictable. Economic downturns, technological advancements, or changes in consumer behavior can arise suddenly and impact your operations. To build a resilient business, work with a LIFTed Business Advisor who can help you develop robust strategies that include risk management and contingency planning. Also consider establishing an emergency fund, diversifying your revenue streams, and staying agile—always ready to pivot your business model in response to market demands.

Strategy 3: Cultivate an Inclusive Environment

The reputation of a business is crucial and can be significantly enhanced by creating a welcoming, inclusive atmosphere. An environment that respects and celebrates diversity not only attracts a broader customer base but also fosters a positive workplace culture. With the aid of a LIFTed Business Advisor, you can implement policies that promote equality and inclusivity, and train your staff to adhere to these principles. By making everyone feel valued and included, you increase customer loyalty and employee satisfaction, which are pivotal to sustained business success.

Strategy 4: Value and Support Your Team

Your team is one of your most significant assets (if not, the most significant asset). Investing in a supportive and respectful workplace can boost employee morale, increase productivity, and help retain top talent. Establish clear communication channels, recognize and reward employees' efforts, and provide opportunities for professional growth. A happy and motivated team will naturally provide better service, directly influencing the quality of customer interactions and enhancing your business's reputation. If you’re not sure how to lead your team with confidence and clarity, invest in leadership education now. Leadership is a skill you can learn, and is crucial for business success.

Strategy 5: Discover and Maintain Your Unique Business Identity

In a competitive market, discovering and maintaining your unique business identity is critical. Your unique selling proposition (USP) sets you apart from competitors and helps attract and retain customers. It’s your “secret sauce.”

For instance, KFC has “11 Herbs and Spices,” Geico has the “15-minutes could save you 15%,”

If you haven’t yet figured out what your secret sauce is, consider your core values and special characteristics that define your business. Then, consciously build a strong brand that customers trust and relate to. Always remember, what makes your business unique should remain at the forefront of your operational and marketing strategies.

For more strategies on enhancing your entrepreneurial journey, including leveraging digital tools, financial management, and customer experience, be sure to read the second part of this series, coming next week. Set a reminder now so you don’t miss it!

The LIFTed Business Advisor You Need

Having a trusted partner at your side for all stages of your business is the best way to achieve success. Whether you’re just starting out or you’re growing your company, locking down these essential strategies with the help of someone who is as invested in your company’s success as you are is a surefire way to achieve success quickly.

And as your LIFTed Business Advisor, I’m here to serve as the trusted advisor you need so you can focus on growth and increasing cash flow with ease and confidence.

Schedule a complimentary call with us today to get appointment scheduled.

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The Dark Side of the Internet: Protect Yourself From Online Scams and Digital Attacks

Tue, 04 Jun 2024 22:17:07 GMT

In the digital age, online scams and cyber attacks are becoming more frequent, posing risks to not only everyday users but also to lawyers who manage clients’ sensitive information. But there’s no need to fear if you take measures to keep your data safe. And if (when?) you’re working with a lawyer, you should also know what actions lawyers take to protect your data. Taking these two approaches, let’s discuss how you can safeguard yourself from these digital attackers and how lawyers ensure their clients’ data is protected from the bad guys.

And since this article is being published a month after “Star Wars Day” (i.e., May 4th, as in “May the fourth (Force) be with you”), I’ll refer to the bad guys as the “Dark Side” just for fun.

7 Tips to Protect Yourself From the Dark Side

Navigating the internet safely requires vigilance and knowledge about potential threats, even as the Dark Side constantly comes up with online scams and attacks designed to steal personal information or harm your devices. Here are some essential steps to protect yourself from these cyber threats and ensure your digital experience remains secure.

Verify who you’re interacting with and confirm the identity of anyone asking for personal details online. Scammers often pretend to be from a trusted company. If you receive an email or message that looks suspicious, or even a little off, contact the company directly using information from their official website.

Create strong passwords. This is crucial. Your passwords should be long, unique, and include a combination of letters, numbers, and symbols. Avoid using common words or sequences that can be easily guessed. Additionally, use different passwords for different sites. A password manager can help you generate and manage secure passwords.

Don’t click on links or attachments without knowing who the sender is. Clicking on links or downloading attachments from unknown sources can be dangerous. These can lead to fake websites designed to steal your information or install malware on your device. When in doubt, don’t click, especially when links come to you via text. Never, ever click a link sent to you via text without verifying that the sender is a real friend or company you are doing business with.

Keep your software and devices updated. Regular updates help fix security vulnerabilities. Use antivirus software to protect against malware and other threats.

Educate yourself about the types of scams that exist, such as phishing emails that ask for personal information or offer too-good-to-be-true deals. Being aware is your first line of defense.

If you get a call from a bank, a government agency or even from a child or grandchild asking for money or gift cards for any reason, or access to your computer, tell the caller you will call them back. Hang up, and call your child or grandchild directly, OR the bank or government agency and find out if they were actually calling you. As an added measure, with your family, have a family “code phrase” that must be spoken out loud in the event of an emergency, such as “blackie is a brown dog” or something unique that only your family would know.

MOST IMPORTANT: Never give anyone remote access to your computer, unless it is from a tech support company you engaged with proactively, meaning you called the tech support line on the Company’s website directly, and you initiated the request for support. Scammers will pretend they are from Coinbase or your bank, and tell you they need to access your computer to resolve your account problem. Do not fall for it.

It’s also important to note here that the elderly are the most targeted group for online scammers. So if your parents fall into this age group, pass along this article to them so they are armed with knowledge to protect themselves.

The Dark Side Won This Time, Now What?

Even after taking all these measures, sometimes the bad guys get away with it and scam you, or a loved one. If you think you’ve fallen victim to a scam, it’s important to act quickly. Immediately inform your bank or relevant service provider if you’ve shared any sensitive information. They can take steps to protect your account. You should also update your passwords right away, especially if you believe they may have been compromised. Again, ensure your new passwords are strong and unique. You may also want to report the scam to the alleged sender, so they know someone is impersonating them and can take protective measures themselves. And if applicable, report the scam to the relevant online platform, or even the local police, consumer protection agencies, or internet crime complaint centers.

Rest Easy Knowing We Have Your Back

At our law firm, we don’t just give legal advice; we’re your trusted advisor for life. If you’ve been scammed, we can help you set up your affairs in such a way that there are layers of protection built-in so it doesn’t happen again. We’re also here for your family. If your elderly parents don’t have an estate plan in place - or it’s been a while since they had it reviewed - we are here for them too. We can help them protect not only their data, but everything they want to pass on to you.

If you want to learn more about how we can help you and your parents create a Life & Legacy estate plan that keeps your family out of court and conflict and ensures your plan works when you need it to, schedule a complimentary 15-minute call with our office.

Avoid Accidentally Using Someone Else's Trademark in 4 Practical Steps

Wed, 29 May 2024 18:45:14 GMT

The journey of launching a new business or expanding an existing one brings the thrill of crafting a unique identity—choosing a catchy name, designing an eye-catching logo, and selecting other branding elements. This creative process is exhilarating, yet it's fraught with hidden dangers, notably the risk of infringing on another company’s established trademark. This mistake can quickly spiral into daunting legal battles, hefty fines, and the disruptive (and expensive) need for a complete rebrand. To avoid these pitfalls, here are 4 practical steps to help you and your business avoid trouble.

Step 1: Understand How Trademarks Work

A trademark can be any word, phrase, symbol, design, or a combination thereof (for simplicity I’ll refer to these generally as “marks”) that identifies and differentiates the source of one party's goods from another's. Trademarks are protected under intellectual property laws and encompass brand names, slogans, and logos.

The U.S. Patent and Trademark Office (“USPTO”) governs the protection of trademarks by granting applications for registration. A trademark does not have to be registered with the USPTO, however, it will be much easier for you to enforce your legal rights if it is. You can tell if a mark has been registered by the USPTO If you see an “R” in a circle after a mark. Sometimes you’ll see the “™” symbol after a mark. This means that the mark is in the process of being registered, or the owner is planning to apply for registration.

Finally, a trademark can be owned by individuals, corporations, limited liability companies, sole proprietors, and even trusts. So you may own a registered trademark individually and license it for use in your business. Or you may own a business who holds a trademark and licenses it to your other companies. Be sure to consult with a trusted attorney to learn more about ownership options, and the pros and cons of each.

Step 2: Conduct Your Research

In order to secure a trademark, you should always conduct an exhaustive search to ensure the chosen name, slogan or logo isn't already in use. This involves several critical steps:

Trademark Databases: Start with the USPTO database or equivalent databases in other countries. These resources list registered trademarks and are indispensable for determining potential conflicts with existing trademarks. U.S. States also register marks, so make sure you’re also checking each State’s database.

Internet Searches: Beyond formal registries, conduct broad internet searches to discover unregistered trademarks, which still enjoy legal protection (under a concept known as common law) based on actual commercial use.

Social Media and Domain Checks: Investigate social media platforms and domain name availability to gauge if a prospective brand name is in use in less formal contexts, potentially unregistered yet actively used.

Professional Assistance: Given the complexities and time commitment of trademark searches, consider enlisting a trusted advisor to do the work for you. A LIFTed Business Advisor can provide expertise in navigating a complex legal landscape while evaluating the likelihood of confusion between similar marks. Which brings us to Step 3.

Step 3: Evaluate the Risk of Confusion

Trademark infringement hinges on the "likelihood of confusion" standard, which determines whether consumers could be misled about the source of goods or services due to similar trademarks. So when selecting your branding elements, consider:

Similarity of Goods/Services: Does your product or service overlap with those identified by the existing trademark?

Distinctiveness of the Trademark: How well-known or recognizable is the existing trademark?

Similarity of Marks: Are the trademarks similar in appearance, sound, or meaning?

Answering "yes" to any of these questions may significantly increase the risk of legal challenges, so be sure to consult with an advisor who can evaluate your mark and advise you on whether the mark meets the “likelihood of confusion” legal standard.

Step 4: Consider Geographic Reach and Industry

Trademark rights are generally confined to specific geographic regions and the types of goods or services for which the mark is used. For instance, a local dry cleaning business might not infringe on a software company's trademark even if they share a similar name. However, if your business aspirations are national or global, or if there is any overlap in industry sectors, you should conduct a broader and more thorough search, just to be extra safe. Again, a trusted advisor can help.

If All Else Fails, Be Prepared to Rebrand if Necessary

Despite taking all these precautions, life happens. Sometimes trademark conflicts go unnoticed until years after your brand is already established. If that happens, be sure to be prepared to conduct a total rebranding process. Being flexible and having a contingency plan will mitigate more severe consequences, such as litigation. And having a trusted advisor on call will help make the process smoother, decreasing disruptions to your business.

The Trusted Advisor Your Business Needs

Knowing how to avoid accidental trademark infringement is crucial for any business. By understanding the significance of trademarks, conducting thorough research, and seeking professional counsel, you can avoid time consuming and expensive consequences, freeing you to focus on your company’s cash flow.

We are here to serve as the trusted advisor you need to ensure your company’s success and prevent any accidental negative consequences. You don’t need to go it alone.

Schedule a complimentary call with us today to get started.

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The FTC’s Non-Compete Ban: What It Means For Small Business

Wed, 29 May 2024 18:38:53 GMT

The Federal Trade Commission's (FTC) recent decision to ban non-compete agreements marks a significant shift in how labor markets will operate across the United States. This rule, passed by a narrow 3-2 vote on April 23, 2024, prohibits the use of non-compete clauses nationwide but allows some leeway for senior executives. As a small business owner, this development could have profound impacts on how you manage your human resources, protect your intellectual property, and compete in a broader marketplace.

Let’s break it down so you’re armed with the knowledge you need to help your business thrive.

The Ban’s Impact on Small Business

Historically, non-compete agreements have been a double-edged sword for small businesses. On one hand, they have provided a way to protect sensitive information and retain key employees, especially in industries where proprietary knowledge is crucial. On the other hand, they have sometimes limited the pool of talent small businesses can draw from, as potential hires may be locked into restrictive agreements with previous employers.

With the ban, the immediate effect is that you can no longer rely on these agreements to prevent your employees from joining competitors or starting their own businesses in the same field. This could lead to increased competition and, potentially, a loss of key personnel. However, the FTC argues that this will lead to a more dynamic and competitive market, which could benefit innovative and agile small businesses.

The FTC estimates that eliminating non-competes will lead to the creation of over 8,500 new startups annually and increase workers' earnings significantly. For you as a small business owner, this means a broader talent pool and potentially higher demands for salary from top candidates, given their increased mobility. To adapt, you may need to enhance other aspects of your employment offers, such as workplace culture, professional development opportunities, and other benefits that attract and retain talent.

Enhance Competitiveness Through Culture and Benefits

In a labor market free from non-compete constraints, the culture and benefits you offer can set your business apart. Focus on creating a positive work environment that encourages innovation and growth. Consider implementing more flexible work arrangements, offering professional development opportunities, and recognizing and rewarding employee contributions more visibly.

Employee benefits such as health insurance, retirement plans, and wellness programs can also be a draw. With the potential for increased competition for talent, providing a comprehensive benefits package can be a deciding factor for many candidates.

Moreover, consider how you can foster a sense of community and shared purpose within your company. Employees who feel connected to the mission and values of their organization are often more engaged and productive. Regular team-building activities, transparent communication about company goals and financial health, and opportunities for employees to contribute ideas can help in building this community.

Legal and Strategic Adjustments to Make Now

To comply with the new rule while still protecting your business interests, you should also focus on strengthening legal safeguards that don’t involve non-compete clauses. This involves revising your current employment contracts to emphasize nondisclosure and confidentiality agreements, which are still permissible and can effectively protect your business’s sensitive information.

Furthermore, it's critical to examine your current human resources policies and consider how you can make your workplace more attractive to current and prospective employees. Investing in your employees not only boosts retention but also enhances your reputation in the industry, making your business a more appealing choice for top talent.

Don’t Navigate This New Landscape Without Guidance

Consult with a legal expert who can navigate all these changes with you. An attorney can help you understand the nuances of the rule as it applies to your specific business context and assist in helping you make the right adjustments for your unique needs. These may include drafting contracts that comply with the new regulations while safeguarding your business assets and competitive edge, drafting or revisiting your non-disclosure agreements, or anything else you and your attorney deem necessary.

In the ever-changing landscape of labor laws, particularly with the FTC's rule banning non-compete agreements, having a trusted advisor to guide you becomes critical. At Bray Law Office, LLC, we can help ensure that every foundational aspect of your business—legal, insurance, financial, and tax—is managed proactively and in real-time to align with the latest regulations.

Your Trusted Advisor in This New Non-Compete-Free Era

We are committed to serving as your trusted guide, allowing you to shift your focus from legal worries to what really matters—growing your business. Together, we will ensure that your business is not only prepared for the ultimate outcome of the FTC’s ban but also primed for success in a competitive marketplace.

Let's take action now to keep your business ahead. Schedule a complimentary call with me today, and let’s make sure your business is ready - no matter what happens.

Book a call here to get started.

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What Does SECURE 2.0 Have to Do with 529 Plans

Wed, 29 May 2024 18:36:12 GMT

By now, you have likely heard about the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) and the SECURE 2.0 Act of 2022 (part of the Consolidated Appropriations Act, 2023). These pieces of legislation were created to encourage Americans to save for retirement and provide additional rules about how retirement accounts should be treated. Among the many provisions in these pieces of legislation, one presents a unique opportunity for young adults to save for retirement.

SECURE 2.0 Act’s 529-to-Roth Rollover

Passed in 2023, the SECURE 2.0 Act provided additional provisions and opportunities to strengthen the retirement system in the United States. One of these provisions includes the ability to roll over unused funds from a 529 plan into the beneficiary’s Roth individual retirement account (IRA), up to a certain amount tax-free and without any penalties.

What Is a 529 Plan?

A 529 plan is a tax-advantaged investment account designed to hold funds to be used for a beneficiary’s (such as a child’s or grandchild’s) qualified educational expenses. After-tax money is placed into the account and grows tax-free through investing. Once the money is needed, it can be withdrawn tax-free for the qualified education expenses of the beneficiary, such as tuition and fees, most room and board expenses, books and supplies, and computers and other technology. The beneficiary can also use these funds to pay up to $10,000 toward their existing student loans. If money is withdrawn for nonqualified expenses, it is subject to income tax and a 10 percent penalty (with some exceptions).

What Happens If There Are Unused Funds?

Getting an education can be expensive, which is why many people are motivated to set up or contribute to 529 plans for their children and grandchildren. Like a standard investment account, money is put into the 529 plan with the hope that it will grow over time and result in enough money to cover some or all of the beneficiary’s educational expenses. If the cost of the beneficiary’s education is less than the amount that has been saved in the 529 account—perhaps the beneficiary has received more in scholarships than they anticipated, for example—there may be funds left over. Now, instead of withdrawing the unused money from the account and paying income tax and a penalty or trying to find a new beneficiary to which you can transfer the remaining funds, the leftover funds can be rolled over into a Roth IRA for the beneficiary.

What Is a Roth IRA?

A Roth IRA is a tax-advantaged IRA to which you contribute after-tax money to be used for your retirement. While in the account, the money grows tax-free through investing and can be withdrawn tax-free after you reach age 59 ½, as long as the account has been open for at least five years. You may be able to withdraw the funds before you have reached age 59 ½ without being subject to taxes or penalties under some exceptions.

Are There Limitations to the Rollover?

Like most things, there are some limits to rolling over unused funds from a 529 educational savings plan into a Roth IRA. Some important limitations include the following:

● There is a lifetime maximum of $35,000 that a 529 beneficiary can transfer to the Roth IRA.

● The 529 plan must have been in existence for at least 15 years.

● The Roth IRA must be in the name of the beneficiary of the 529 plan.

● You cannot transfer contributions or earnings on contributions to the 529 plan that were made within five years.

● Transfers to the Roth IRA are subject to the annual Roth IRA contribution limits.

● The rollover must be plan-to-plan or trustee-to-trustee.

● The beneficiary must have earned income to roll over funds from the 529 plan to the Roth IRA.

Some states do not use the same definition of qualified expenses for state income tax calculations. Therefore, it is important that you work with a professional to understand if there will be any state income tax consequences if you choose to roll over the funds from the 529 plan to a Roth IRA for the beneficiary.

Could This Be the Right Move for Me or My Child?

This new rollover technique allowed under the provisions of the SECURE 2.0 Act presents an additional option to consider if there are funds left over in a 529 plan after you or your child have completed their education. Instead of trying to fund a new beneficiary’s 529 plan or losing part of the money to income taxes and a 10 percent penalty, you may be able to assist your loved one in planning for their retirement. If you have questions about a 529 educational savings plan and how it may fit into your estate plan, please give us a call.

Are Pensions Treated the Same in Your Estate Plan as Other Retirement Accounts?

Wed, 29 May 2024 18:33:50 GMT

The first private pension plan in the United States was established in the late 1800s. Through 1980, nearly 40 percent of Americans were covered by a traditional employer-funded pension. But employer-provided retirement plans have now largely shifted to retirement savings vehicles like 401(k) plans and Individual Retirement Accounts (IRAs) that place most of the savings onus on the employee.

Pension and retirement accounts often form a large portion of an individual’s wealth and should be accounted for in an estate plan. If a retirement account holder completes a proper beneficiary designation, their account assets will bypass probate. Account holders often designate a surviving spouse or children as beneficiary, but they could also name a trust or a charity.

The benefit and beneficiary rules applicable to different types of retirement accounts vary and should be discussed with an estate planning attorney, especially with the recent passage of the SECURE Act.

How Pensions Have Changed: Defined Benefit versus Defined Contribution Plans

The American Express Company provided the original private pension plan to its workers in 1875. Soon after, banks, manufacturing companies, and utilities also began offering pension plans. ^[1]

These early pensions were defined benefit (DB) plans. Funded entirely by employers, DB plans pay workers a specific monthly benefit for life once they retire. Typically, DB plans calculate a benefit based on factors like a worker’s salary and service length and make regular payments (annuity payments) over the employee’s life after retirement (or the joint lives of the employee and their spouse). The employer that provides a DB pension controls and owns the plan.

Traditional DB pension plans have mostly given way to defined contribution (DC) plans, such as 401(k)s. DC plans are owned and controlled by employees but are often subsidized by employers. Other types of DC plans are 403(b), 457, and 529 plans. IRAs are not employer-sponsored but can also be considered a DC plan since they involve defined contributions by the IRA owner into tax-advantaged accounts. ^[2] DC plans generally pay retirement benefits as a lump sum or installments.

From 1980 to 2008, the proportion of private industry workers participating in DB plans decreased from 38 percent to 20 percent. ^[3] In 2020, 85.3 million Americans had a DC plan compared to just 12 million workers with a DB plan. ^[4]

In 2020, 18.2 percent of Americans were covered by an IRA-style retirement account, 34.6 percent had a 401(k)-style account, and 13.5 percent had a DB plan, reports the U.S. Census Bureau. The median value of a retirement account in 2020 was about $30,000. ^[5]

Congress passed the Employee Retirement Income Security Act (ERISA) in 1974 to guarantee workers’ benefits in private pension plans. Before then, pensions had little or no protection, and there were incidents of workers losing their earned retirement benefits. ERISA covers most employer-sponsored DB plans and DC plans, but not government employee plans or IRAs.

DB Plans, DC Plans, and Beneficiaries

The only estate planning tool applicable to retirement accounts is the beneficiary designation. Retirement accounts must be owned by an individual, so they cannot be transferred into a revocable living trust during the participant’s lifetime like most other financial accounts or property. Further, they cannot be jointly owned. Thus, the only way to control how these accounts transfer at the time of the participant's death is through the use of properly designated beneficiaries.

In general, participants in an ERISA-covered plan can select anyone to be the plan’s beneficiary when they die. ^[6]

● Most plans regulated by ERISA name a person’s spouse to automatically receive the benefit if the account holder dies first.

● If the account holder wishes to select a different beneficiary, their spouse must consent by signing a waiver. Otherwise, the spouse is entitled to 50 percent of the plan’s benefits, even if somebody else is named as the plan beneficiary.

● An ERISA plan holder who divorces and remarries should update the beneficiary designation to their current spouse or else the former spouse may be in line to inherit the plan benefits.

● An account holder who does not have a spouse can name an alternate beneficiary. This may be a person such as a child, parent, or sibling, but it can also be a charity or a trust.

● The named beneficiary of an ERISA retirement plan takes precedence over somebody designated in a will as the plan’s beneficiary when there is a conflict between the two.

● When an ERISA retirement plan does not designate a beneficiary, the benefit passes to the participant’s probate estate and is distributed along with other probate assets according to the will (if the participant has created one) or according to state intestacy law (if the participant has not created one).

IRAs are not covered by ERISA. An IRA account holder can name a beneficiary (or multiple beneficiaries) to receive the account assets. They can also name their probate estate to be the beneficiary of the IRA, in which case the account proceeds will be distributed according to their will (if they have created one) or according to state intestacy law (if they have not created one). A trust or charity can be designated to receive IRA funds as well. An IRA with no beneficiary designation is distributed pursuant to the IRA’s governing document.

Employees with a DB plan may be able to name a beneficiary, but this right is not guaranteed because the employer owns the plan and sets the terms. For a DB plan, a current spouse may be entitled to a qualified joint and survivor annuity (QJSA) death benefit paid out over their lifetime. The plan may provide the annuity payout percentage, which could be at least 50 percent but no more than 100 percent of the annuity paid to the participant. It may be possible, with spousal consent, for a participant to waive the QJSA and select a different payment option. QJSA rules may also apply to nondefined benefit plans, but only through an election. ^[7]

The SECURE Act and Inherited Retirement Accounts

Passed in 2019 and effective in 2020, the Setting Every Community Up for Retirement Enhancement (SECURE) Act affects DC plans like 401(k)s and IRAs and has implications for estate planning.

Under the SECURE Act, the age at which retirees must make annual withdrawals, called minimum required distributions (RMDs), increased from 70.5 to 72. In 2023, that age was raised to 73.

A retiree who lives a long life might deplete a large portion of their retirement account due to RMDs and have little left in the account to give to heirs. But the SECURE Act also affects those who inherit an IRA or 401(k) in a more direct way.

While beneficiaries of these accounts always had to pay taxes on all withdrawals from them, prior to the SECURE Act, they could stretch out withdrawals over their life expectancy to minimize their tax bill. Beginning in 2020, however, most nonspouse retirement account beneficiaries must completely withdraw the balance of their inherited portion within 10 years of the original account holder’s death. For minors, the 10-year rule starts when they turn 21. These new rules do not apply to a surviving spouse named as an account beneficiary. Spouses that inherit retirement accounts still receive preferential tax treatment in the SECURE Act. A popular option is for the inheriting spouse to roll over the account into their own IRA and name their own beneficiaries for the account. The spouse is then treated as the original IRA owner for income tax purposes. ^[8]

Another option for an account holder when designating a beneficiary is to designate the account owner’s trust rather than naming individual beneficiaries. When the accounts transfer into the trust upon the account owner’s death, the language in the trust agreement will direct how and when the retirement proceeds are to be distributed to trust beneficiaries. The retirement account owner might prefer this option if they are concerned that the beneficiary might immediately deplete money or fail to set aside enough funds to cover taxes that might be due on withdrawals. Also, trusts can provide asset protection from creditors and help centralize asset management.

Retirement Accounts and Estate Planning

You saved hard for your retirement. The money you set aside could benefit more than just you. Most retirement accounts can be transferred to your heirs when you die, enabling them to supplement their own savings goals.

Retirement assets can transfer directly to properly designated beneficiaries outside of probate. But these assets will be subject to federal and state income tax, and possibly even estate taxes. The SECURE Act could further impact your estate planning efforts.

Your retirement accounts could be the single largest store of economic value that you leave behind. To maximize their value to loved ones after you are gone, be sure that you understand the different inheritance and tax rules that may apply, review beneficiary designations regularly, and speak to an estate planning attorney about how to best provide for your family’s future.

Navigating the World of Cryptocurrency: A Guide for Parents and Teens

Wed, 29 May 2024 18:31:16 GMT

In an era where digital innovation shapes every aspect of our lives, it's no surprise that our teenagers are drawn to the allure of cryptocurrency. This digital form of money represents a shift away from traditional financial systems. If you are the parent of teens, understanding cryptocurrency is crucial so you can provide them with the guidance they need to navigate this new world safely and wisely. Luckily, I’m here to help you learn what you need to know. Let’s dive in.

What is Cryptocurrency, Exactly?

Cryptocurrency, which folks also call “crypto” is, in essence, virtual money that can be used to buy goods and services. It can also be traded for profit, much like stocks. However, unlike the dollars in your wallet, crypto exists only in the digital world. The crypto universe is vast, with thousands of digital currencies out there.

Crypto is based on blockchain technology, which ensures transactions are secure, transparent, and decentralized, so they're not controlled by any government or financial institution (there are pros and cons to this that we’ll describe below). Imagine blockchain as a digital Lego tower where each block represents a piece of information, and once a block is added to the tower, it can't be removed or altered, making it a super secure way to keep track of cryptocurrency transactions - kind of like a high-tech, unbreakable diary

A critical component of understanding cryptocurrency is the concept of a crypto wallet. Unlike a physical wallet, a crypto wallet doesn't store currency; instead, it holds secure digital keys that allow access to cryptocurrencies. With me so far?

What Parents of Teens Need to Know

To the younger, digital-native generation, cryptocurrency is an exciting and innovative concept. They’re not afraid of technology and investing online. They’re aware of the potentially significant returns on investments, stories of cryptocurrency millionaires, and the prospect of being part of a cutting-edge financial movement. This is why crypto is very attractive to teens.

Parents should know that while there are no laws specifically prohibiting teens from owning or trading cryptocurrency, most platforms and exchanges require users to be 18 years old. For eager and younger investors, custodial accounts present a solution. These accounts allow parents to oversee their teen's investments, providing a controlled environment where teens can learn about digital currencies.

These accounts not only allow parents to monitor their teen's investment activities but also offer a hands-on educational experience in managing and understanding digital currencies. It's a balanced approach that combines the practical aspects of investing with the security of parental oversight. And, if you are a business owner, you may want to consider paying your kids, and then putting up to $7,000 of what you pay them into a Roth IRA using cryptocurrency and a self-directed IRA structure. By doing this, you can invest that $7,000 in cryptocurrency, and let it ride for the next 50 years … imagine what it will be worth to them then, and it will grow 100% tax-free.

Be Aware of the Risks

While learning how to invest in crypto can be a great learning activity for you and your teen, be aware of the risks involved. For one, the crypto market is highly volatile. Prices can surge or plummet within a short period, making investments speculative and risky. It's crucial to have open discussions with your teen about the importance of not investing more than they can afford to lose, and about the reality of the speculative nature of digital currency. Teach your teen the importance of research, diversification, and long-term thinking and you’ll help instill responsible investment habits that will last a lifetime (and make you proud!).

Most importantly, ensure that you know how to get into their cryptocurrency accounts, in case something happens. And, that someone knows how to get into your accounts as well. The biggest risk to your cryptocurrency investments is that you haven’t documented them such that someone could access your accounts, when something happens to you. Contact us and let us help!

Alternatives and Best Practices

For families that find direct investment in cryptocurrency too daunting, there are alternative ways to engage with the digital economy. Encouraging your teen to learn about blockchain technology or exploring investments in crypto-related stocks and ETFs can provide a safer introduction to the concepts without the direct risks associated with cryptocurrency trading.

However, if you’re ready to make a go at it, here are some best practices to keep in mind:

Foster a Culture of Learning. The rapid evolution of digital currencies makes continuous learning essential. Encourage your teen (and take the opportunity yourself) to stay informed about the latest developments by reading reputable news sources, listening to podcasts, and even speaking with a financial advisor.

Establish Guidelines. Before your teen makes any financial investment, it's important to establish clear guidelines. Discuss together how much time and money is reasonable to invest, the importance of privacy and security in digital transactions, and the expectations for responsible behavior. Setting these ground rules early on can lay a strong foundation for healthy financial habits.

Embrace the Future. Regardless of whether your teen decides to invest in cryptocurrency, understanding this new facet of the financial world is invaluable for you. The rise of digital currencies offers a unique opportunity for parents and teens to learn together about the future of money, technology, and personal finance. It's a chance to explore new concepts, discuss values and responsibilities, and prepare for a future where digital currencies may play a significant role.

Prepare Yourself and Your Teen With Our Guidance

Whatever the future holds, we believe it’s important to educate your children about finances so you leave a legacy of fiscal responsibility when you’re gone. That’s why we help ensure that when you’re no longer here, your assets - including cryptocurrency - are passed on the way you want, easily, and without your family ending up in court and conflict. We do that by approaching estate planning as a relationship - a lifetime relationship with you as your and your family’s trusted advisor so you have someone to turn to in times of change and uncertainty, and in times of joy and excitement.

To learn more about how we can guide you and your family to secure the future you want, schedule a complimentary 15-minute call with our office.

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Estate Planning: A Gift of Peace and Power for Every Mother

Wed, 29 May 2024 18:27:48 GMT

Moms spend their days and nights thinking about how to make sure their children are happy, healthy, and safe. If you’re a mom, you know. If you aren’t a mom, you were born because of a mom. It’s one of the two things we all have in common.

So, as Mother’s Day approaches, let’s talk about the most meaningful gift you can give or receive on this hallmark holiday that means a lot: every mom deserves the peace of mind and power to create financial security for themselves and their children with thoughtful estate planning.

Now you may be thinking, “Estate planning? Really? Isn’t that just for rich people?” Or, “How does drafting a Will give me peace of mind and financial security?”

Glad you asked! Most people have a general concept of what “estate planning” means, but in reality, don’t fully understand it. Believe it or not, estate planning is far more complex than just drafting a Will, and it’s not just for rich people, though doing it will leave your family much more “rich” than if you don’t. Once you appreciate the power of estate planning, you’ll know why it has the power to “gift” you peace of mind.

So let’s start by parsing out what estate planning really is and why it matters for every mom you know, including yourself if you are a mom.

Why Estate Planning Matters for Moms (and Dads too)

Imagine having a roadmap that clearly shows how your financial assets, the guardianship of your children, and even your most cherished possessions are handled should anything happen to you. Now imagine that your roadmap is a legal document and the people receiving that roadmap are required to abide by your wishes and are able to easily do so because your wishes are so clear and you’ve left a guide for your family along with the roadmap.

That’s what estate planning is: a legally enforceable plan for your future, and ideally a guide to help your loved ones navigate the plan. And contrary to what most people think, estate planning isn’t just for the wealthy or those who are nearing the end of life. It’s for everyone, including you! Thoughtful estate planning gives you the power to make decisions now that will impact your and your family's future, giving you peace of mind to know you aren’t leaving a mess for the people you love.

You may be wondering, “Really? How does estate planning give me peace of mind?” Relax - grab a mimosa or some tea, kick your feet up, and let’s talk about how it works.

Estate planning allows you to specify who will care for your children if you are unable to do so yourself. It’s undoubtedly a tough subject, but choosing a guardian you trust to raise your kids as you would brings immense comfort, and may even guide you to build deeper relationships with the people you’d call upon to care for your children, if you cannot. Knowing that your wishes are written down and legally protected can relieve a lot of stress, and relax any of those “stressful in the background” thoughts about that one person you would never want raising your kids.

Without a plan, a judge would decide who takes care of your children if you cannot, and they might not choose the person you would have wanted. Or worst of all, they may even choose the one person you’d never want raising your kids because maybe they look great on paper. Think about it: a judge knows nothing about you or your kids. They only know what they see in court filings. That’s it. They’d have to make decisions with no input from you. Kinda scary, right?

When done right, estate planning also lets you direct the distribution of your property and finances. Specifically, it ensures your assets are transferred to the people you choose without unnecessary delays, legal hurdles, or family conflict.

This not only secures your children’s future but also simplifies the administrative process at a time when your family should have space and time to mourn and heal, not get tangled in legal complexities. And if they do get tangled up in conflict, it’s highly likely that those relationships will be forever destroyed. That also happens. Again, more often than you may think.

Here’s the bottom line. When you get these things in order, you can die in peace, and that means you live life more fully.

Estate Planning Equals Empowerment

Estate planning puts the power in your hands. It's a declaration of your values and your voice, legally secured to guide your family when you can't be there. By setting out your wishes clearly, you prevent disputes and ensure your legacy lives on exactly as you intend. After all, someone will have to wrap up your affairs after you die, so it may as well be you, now, while you’re living. So step into your power, safeguard your children's future, and cement your role as the heart and protector of your family.

In the process of getting your estate planning handled, when you work with us, you’re going to learn a tremendous amount about your finances, and your financial literacy is going to grow in a way that will result in you feeling exponentially more financially secure and clear.

Financial Protection In Case of Loss

Estate planning is especially vital if the unthinkable happens and your spouse or partner dies. Many mothers face not only devastating emotional loss but also the potential for significant financial instability - especially if you aren’t the primary breadwinner in your family. An effective estate plan, however, includes setting up mechanisms such as life insurance, trusts, and instructions for pension or retirement benefits, which can provide you with financial support when it’s most needed. There’s absolutely no reason you and your children need to compromise your lifestyle should something happen to your partner.

For example, an estate plan ensures that you have access to joint assets and that any individual assets held by your spouse or partner are transferred to you or your children without delay. This can be critical in preventing financial hardship during an already challenging time, ensuring that you have the resources needed to maintain your home, cover living expenses, and continue to provide for your children’s needs.

The Personal Family Lawyer Difference

By now, it should be clear that creating an effective estate plan that honors your wishes and secures your and your family’s financial future isn’t as simple as creating a Will. It’s more complicated than that and can be overwhelming, particularly with the legal jargon and the multitude of decisions that need to be made. These decisions are hard, too. When you’re living your life, probably the last thing you want to think about is your death. You’d probably rather have a root canal.

Fortunately, you don't have to navigate the process alone. Personal Family Lawyer firms, like ours, are uniquely trained, and trusted advisors who can guide you through the process, ensuring that your plan fits your specific circumstances and family dynamics. Here’s a bonus: We can also advise you on tax implications and the best ways to structure your finances to benefit you and your heirs. Yay! (Unless you want to pay extra taxes and give your money to the government instead of your kids, then knock yourself out).

Finally, we are committed to serving you and your family for the long term by checking in to update your plan as life changes, assets change and your kids grow. By working with us, you create a plan that is thorough, thoughtful and works when you and your family need it to.

Let Us Give You the Gift of Peace and Power

At our law firm, we don’t just give legal advice or draft documents. We take your power and peace of mind seriously. We also know that you’re busy. We have processes in place that make getting your estate plan in place as easy as possible, all while being thorough, thoughtful, and mindful of your time and budget.

If you want to learn more about how we can help you create an estate plan that gives you the Mother’s Day gift of power and peace of mind - so you can live life to the fullest - schedule a complimentary 15-minute call with our office.

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Passing the Torch: Smart Business Succession Strategies

Tue, 30 Apr 2024 13:45:00 GMT

For many business owners, their business is one of the most valuable and important things they own. When it is time to sit down and create an estate plan, it is critical that business owners plan for their business just as they would plan for their home or finances. Effective business succession planning ensures a seamless transition of ownership upon the potential occurrence of many different events, such as the business’s owner’s retirement, disability, or death. All businesses need a succession plan, but many business owners overlook it.

An important part of being a responsible business owner includes developing systems to help other people operate the company without you. A business succession plan clearly states who will take over specific roles, hopefully reducing any potential disputes between family members or key employees. If the business is sold after a transition event occurs, a comprehensive business succession plan will also clearly outline the sale price and purchase terms.

Here are four common business succession or exit strategies to consider:

● Leaving the business to a co-owner

● Passing it to a family member

● Transferring ownership to a key employee

● Selling to a competitor

Whether you are a sole proprietor or a business with multiple employees, understanding your options is crucial for making informed decisions that align with your business goals and desired family legacy.

Leaving Your Business to a Co-owner

Co-owners or partners can play an important role when you plan for anticipated or unexpected changes in the future. Selling to a person who is already involved in daily operations and committed to your company may be an easy way to ensure ongoing success. You can draft a buy-sell agreement for the co-owner that addresses different scenarios, such as a gradual sale for retirement or a quick transfer in a medical emergency or upon death.

It is important to ensure that your partner has enough funds to make the purchase. This can be done in a few different ways: One popular way is by securing term life insurance that can pay out at death or permanent life insurance that pays out at retirement or disability. ^[1] Another way is to include terms in your buy-sell agreement for the partner to pay over time.

Passing Your Business to a Family Member

Selling or transferring your business ownership to a child, grandchild, sibling, or other family member allows you to keep your business in your family. This is a great option if your children or other family members are already working for you. There are estate planning strategies available that may help lower your tax liability by transferring some of your business as a gift using your lifetime federal gift tax exemption. Federal gift taxes on amounts exceeding the exemption will apply, but once you transfer ownership, the ownership interest is no longer part of your estate.

If you have multiple relatives that you would like to take over the business, you need to provide clear instructions as to specific roles and responsibilities in your buy-sell agreement. You may also want to address in your estate plan how to equalize the inheritance of other family members who are not going to receive ownership in the business so that these family members do not think they are being disinherited or slighted just because they have not been involved in the business.

Transferring Ownership to a Key Employee

Selling an ownership interest to a trusted employee ensures that the business is run by someone who appreciates it and is familiar with the daily operations. Selling to a key employee also requires a buy-sell agreement to purchase your business at a predetermined retirement date or in the event of death or disability.

But similar to the discussion above about selling to a co-owner, employees do not always have cash on hand. You may consider seller financing, that is, lending money for the sale with a promissory note and allowing them to pay you back directly. Not only does the purchaser benefit from the opportunity to own your business, but you (or your family in the event of your death) also receive a steady stream of income from the principal and interest for the agreed-upon period. In the buy-sell agreement, you would establish a down payment amount and monthly payments with interest until the purchase is paid in full. Negotiate the terms and clearly document them in your succession plan.

This strategy can actually work with any buyer, including family members and competitors.

Selling to a Competitor

Depending on the type of business and ownership structure, another option is to sell your business to an outside individual or competitor in the same industry. Again, you will need to draft a buy-sell agreement. To prepare for a successful sale, you may want to have an experienced manager in place, document your operating procedures, and organize your financial reports. A buyer can more easily decide whether it makes sense to purchase the business and how to step in and take over when you have taken these steps.

Additional Considerations

Estate planning is about planning for what will happen while you are alive but unable to make your own decisions as well as planning for when you have passed away. Be prepared for the unexpected by starting your business succession planning as early as possible. The decisions you make today while building and operating your business can affect your options to sell it later.

We are here to help you develop the best estate plan that properly addresses the valuable things you own, including your business. If you already have an estate plan, it is important to review it periodically to make sure that it is up to date. Give us a call to schedule your appointment today.

Clash of Cash: Small Business Loans vs. Lines of Credit

Fri, 19 Apr 2024 20:11:49 GMT

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.

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If My Will Is Filed with the Court, Will It Go through Probate?

Fri, 19 Apr 2024 20:08:31 GMT

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.

How to Choose the Right Agents for Your Incapacity Plan

Fri, 19 Apr 2024 20:05:46 GMT

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.

3 Estate Planning Documents Your Parents Need Right Now

Fri, 19 Apr 2024 19:53:19 GMT

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.

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What Happens to Real Estate With a Mortgage When I Die?

Thu, 28 Mar 2024 18:30:00 GMT

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.

Elevating Your Small Business: How to Attract Serious Clients Through Professional Branding and Business Structures

Thu, 28 Mar 2024 18:30:00 GMT

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.

Have Kids? Hire Them In Your Business For Major Financial Savings

Thu, 28 Mar 2024 18:30:00 GMT

Show Clients You’re Serious By Using Consistent Branding

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.

Show the People Behind the Business

Keep an "Open Door" Policy

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.

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

Remember, trust is the foundation upon which long-term success and growth are built. Embrace these strategies, and watch your client connections flourish.

Click the link to schedule your 15-minute call to learn more.

Who Should Be the Trustee of a Third-Party Special Needs Trust?

Tue, 05 Mar 2024 23:49:15 GMT

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.

Hiring a Lawyer: What Flat Fees, Hourly Fees and Retainer Billing Could Mean For Your Life and Family

Wed, 31 Jan 2024 14:45:00 GMT

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.

What Caregivers Need to Know About Estate Planning for a Loved One With Dementia - Part 2

Wed, 24 Jan 2024 14:45:00 GMT

Last week, we started our discussion on estate planning for a loved one with a dementia diagnosis (Part 1) and what this means for their ability to protect their wishes through an estate plan. We covered:

● What it means to have mental capacity or be incapacitated

● How dementia affects capacity for estate planning purposes

● The essential estate planning tools a person with dementia needs to create right away

However, as dementia progresses, estate planning must become more proactive and strategic than ever to avoid court and conflict over your loved one’s wishes in the future. If dementia becomes too advanced before planning is complete, the question of who will manage your loved one’s assets and care will be left to a judge who doesn’t know your loved one or their wishes.

Keep reading to learn what steps need to be considered when estate planning for someone with more advanced dementia.

Seek a Cognitive Evaluation

If your loved one’s cognitive capacity is in question, seeking a professional evaluation is a prudent and proactive step in the estate planning process. Schedule an appointment with your loved one's primary care physician or a specialist in dementia care to assess their mental state and make a recommendation on your loved one’s ability to make estate planning decisions.

During this evaluation, the medical professional will talk to your loved one and ask them questions about their everyday life, how aware they are of their circumstances, and what they would do in certain situations, such as if a stranger came to the door or if a pipe burst in their home.

Your loved one doesn’t need to remember every detail about their life for the evaluation to be beneficial. The professional will be most concerned with your loved one’s ability to analyze a scenario and make a thoughtful decision on how to respond. For example, your loved one may not remember what day of the week it is but may remember they shouldn’t open the door for a stranger.

Receiving a report from your loved one’s doctor stating they have the cognitive ability to make estate planning decisions (at least when they are in a lucid state) protects their ability to make decisions for their finances and healthcare, and dissuades any future debate from third parties as to whether your loved one had the ability to make a plan in the first place.

Encourage Private Meetings Between Your Loved One and Their Lawyer

It may be second nature to help your loved one with appointments, especially if hearing and memory troubles make it difficult for your loved one to follow along. But as much as possible, allow your loved one to meet with their lawyer independently. A private meeting between your loved one and their lawyer will provide them with the opportunity to express their wishes without external influence.

Even if you have your loved one’s best intentions at heart and they would prefer to have you present during the meetings, encouraging your loved one to have private conversations with their lawyer when possible helps avoid questions about whether or not you influenced their estate planning decisions.

If it isn’t feasible for your loved one to have an entire meeting with their lawyer alone, make sure they at least have opportunities to talk to their attorney in private by leaving the room while your attorney confirms their wishes.

Be sure to document every time your loved one meets alone with their lawyer and ask their lawyer to document it as well.

Make Sure Their Estate Plan Is Executed Carefully

Unfortunately, errors that occur at the time an estate plan is signed are common. Every state has different laws for how estate planning documents are executed, how they can be signed, and what witnesses or notaries are required to make the document binding.

If your loved one’s plan isn’t executed properly, it can result in your family needing to involve a judge to determine whether the estate plan is still valid. This also creates an opportunity for family members to question whether your loved one had the mental capacity to create the plan at all.

It’s also essential to document your loved one’s capacity at the time the estate plan documents are signed. Make sure that their lawyer reviews the documents carefully with your loved one before they sign them, that the documents reflect your loved one’s wishes, and that your loved one is creating the plan of their own free will.

If you have any concerns about other family members questioning your loved one’s estate planning decisions or mental state at the time, ask your loved one and their attorney if they could record the signing meeting to dispel any claims that your loved one was coerced into planning or didn’t know what they were signing.

Conclusion

If your loved one received a dementia diagnosis and hasn’t addressed their legal matters, don't despair - but act fast. Even in the advanced stages of dementia, individuals may have moments when they can participate in decision-making and estate planning. But, due to the progressive nature of dementia, time is of the essence for your loved one to create an estate plan, and the sooner they plan, the easier it will be for them to get the help they need as their condition progresses.

In cases where your loved one’s capacity is severely diminished and estate planning hasn’t been completed, your family will need to pursue a court guardianship. This legal arrangement involves a court appointing a legal guardian who assumes responsibility for making decisions on behalf of the person with dementia. This process can be stressful, and it’s possible the court will appoint someone your loved one never would have wanted to manage their assets or healthcare decisions.

To make sure your loved one’s wishes are documented before it’s too late, I invite you to book a meeting with office today. Our team is dedicated to providing compassionate guidance and legal expertise to ensure the well-being and wishes of your loved one are preserved.

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Why You Should Start The New Year With a LIFT Business Session

Tue, 23 Jan 2024 15:00:00 GMT

As we stand on the cusp of a new year, it's the perfect time to reflect on your business journey and set the stage for success in the coming year. What components of your business worked the best? Which areas need focus or improvement? Are there areas of your business that have been neglected? (Don’t worry, we’ve all been there).

Wherever your business stands as this year comes to a close, the new year is the perfect time to assess ways to improve its processes and set your company up for next-level growth and success in the new year. It all begins by looking at the foundational systems that support your business from the inside out. I call those systems your LIFT systems.

We are here to guide you through an examination of the Legal, Insurance, Financial, and Tax components of your business and help you build a LIFT Dream Team of trusted experts in these areas who will work together to bring your business into full alignment with your goals and needs.

Legal: Fortifying Your Structures and Protecting Your Assets

In the legal realm, the structure of your business plays a pivotal role in its success. During a LIFT Business Session, we examine your current legal framework and make sure your legal needs are aligned with your business goals. Some of the aspects we’ll consider together:

● Is your business entity structured for maximum asset protection now, tax savings today and over time, and the future exit you desire?

● Is your intellectual property protected via Trademarks, Copyrights, Patents, and Contracts, or are you at risk of losing valuable rights before it’s too late to put protections in place?

● Are your employment matters structured properly with the right agreements and policies?

Together, we'll ensure that your legal foundation is set up to protect your assets and pave the way for sustainable, long-term growth, and prepare for the eventual exit you desire.

Insurance: Safeguarding Your Interests

The insurance landscape can be complex, but it's a crucial aspect of securing your business against unforeseen challenges and preparing your business for future development, such as hiring new contractors and employees.

We'll review your existing insurance policies to assess whether they adequately cover potential risks. From liability to property coverage to disability and life insurance, we'll review what you have in place, and what may need to change, and we will work together with your trusted insurance providers to ensure you have a comprehensive insurance strategy that safeguards your business interests, coordinates with your estate plan, and provides you with across the board peace of mind.

Financial: Building a Solid Financial Infrastructure

A strong financial foundation is essential for any thriving business. In our LIFT Business Session, we dive into your financial practices, evaluating budgeting, cash flow management, and financial reporting. Together, we'll identify areas for improvement, ensuring your business has the financial infrastructure and next-level team support needed to weather uncertainties and capitalize on opportunities.

Tax: Optimizing Your Tax Strategy

Taxes are an inevitable part of business, but a strategic approach can make a significant difference. During our session, we'll assess your current tax strategy and explore opportunities for optimization. We’ll then work together with your tax advisor (or identify a tax advisor) to minimize your tax burden legally, freeing up resources for further business growth, or to support more of the lifestyle you want.

Building Your Dream Team of Advisors

Recognizing that no business owner should navigate these components alone, our LIFT Business Session extends beyond a legal assessment. We are here to help you build a Dream Team of advisors—experts in Legal, Insurance, Financial, and Tax matters.

These professionals will serve as pillars of support for your business, guiding you through the intricacies of each component and ensuring a holistic approach to your business success as it grows and changes. It's not just about reviewing your Legal, Insurance, Financial, and Tax components—it's about setting the stage for a prosperous and secure future.

To start the new year with a comprehensive LIFT Business Session, schedule a complimentary call with my office to learn more. It’s time to make this next year your best one yet.

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How to Find Work-Life Balance As A Business Owner

Thu, 11 Jan 2024 00:51:05 GMT

It’s the end of another full day as an entrepreneur. You shut down your computer, lock up your office, and get ready to enjoy a relaxing night at home. But even though you’re off hours, your mind isn’t. Maybe you run through conversations you had during the day, brainstorm marketing ideas on a cocktail napkin, or obsessively check your business email from your personal phone.

Having a mind for business isn’t a bad thing – after all, a lot of great ideas come to us when we least expect it. But if you find yourself frustrated, resentful, anxious, or feeling obligated to respond to emails and messages at all hours of the day and night, it’s time to reassess and redefine your business boundaries.

It can be difficult to set healthy boundaries when our current culture expects us to be constantly available and “plugged in.” But setting healthy boundaries and finding true work-life balance is essential for your well-being, personal satisfaction, and the success of your business.

Get Clear on What’s Urgent and What’s Not

The first and most important step on the way to work-life balance is to be honest with yourself about tasks that you “have to” do versus those you “want to” do. You’ll likely find that the reasons you’re working during “off” hours is because you’re choosing to do so, not because you have to – even though it may feel like you have to at times,

The truth is that few things are truly urgent or require an immediate response or action. Emails, messages, or requests from clients are generally not urgent, even if the client believes it is urgent or is upset. And here’s the thing, your clients and customers don’t know whether you have access to your work materials after hours or not – unless you make yourself available to them.

No one expects to hear from their doctor after hours, and no one should expect to hear from you outside of work hours either.

If the idea of cutting off work-related communication after hours makes you squirm, get curious with yourself about why you feel that way. Are you afraid clients will be angry with you if you don’t respond quickly? Do you get anxious wondering what emails have come in since you logged off for the day? Do you get a high from being needed?

Once you’re able to identify the root cause of those feelings, you’ll be able to address the issue through healthy means, like journaling, exercising, talking with friends, or speaking to a therapist.

Set Working Hours - And Stick To Them

Now that you have a better understanding of what makes you tick on and off the clock, decide to limit the hours when you respond to emails, calls, messages, and social media posts. Set up regular business hours in which you will respond to messages, and stick to it.

Enforce your business hours by including them in business contracts and communications too. When you communicate your boundaries to clients and team members from the start, you’ll find that people are happy to respect your boundaries.

Take your boundaries a step further by only responding to messages during certain hours of your work day. Use time-blocking to set aside a time that works best for you and your productivity. Reserve your most energized hours for working on your business, and set aside time to respond to messages when you have less energy. Don’t use your personal cell phone for business and always keep your business lines and accounts separate from your personal ones.

Take responsibility for when people can contact you, and send business calls to voicemail after hours. Better yet, get an assistant who can handle your phones and accounts so you can focus on running your business, not responding to messages. If you can’t afford a full-time assistant in-house, there are numerous call-answering services that can answer your phone and email, and even schedule call-backs and appointments.

Get Support

Protecting your time and value as an entrepreneur is important. Setting clear boundaries and knowing when to enforce them is the key to avoiding burnout and finding work-life balance. But to do this, you need to have measures in place to ensure those who do business with you have clear and reasonable expectations.

If you’re unclear on how to create boundaries around your time or struggling to set up the systems that will allow you to mentally and physically step away from your business, we can help.

We can guide you in making the difficult decisions you face every day as a leader in business, including when and how to set boundaries and how to set up your Legal, Insurance, Financial, and Tax systems in the right way so you can focus on growing your business (and taking care of yourself).

Schedule a complimentary discovery call to learn more.

Have Unused 529 College Savings? Roll Them Into a Roth in 2024

Thu, 11 Jan 2024 00:15:20 GMT

In December 2022, Congress passed the SECURE 2.0 Act, bringing significant changes to the world of retirement savings and student loans. Two key parts of the Secure 2.0 Act are set to take effect in 2024, and they could substantially impact your family's financial future.

In this blog, we explain how the new law affects your unused 529 college savings account and what that means for your future savings.

You Can Now Roll 529 College Savings Into A Roth IRA

A 529 college fund is a tax-advantaged savings account that is designed to help families save for their children's college education. With the SECURE 2.0 Act, Congress expanded the ways you can use these accounts by introducing a new rollover option, which is especially helpful if the beneficiary has money left over after their education is complete.

Starting in 2024, a 529 plan account beneficiary will have the opportunity to roll over up to $35,000 from your 529 college savings plans into a Roth IRA – and the best part is it's tax and penalty-free.

But there are some rules you’ll need to follow to take advantage of this retirement fund boost:

01 | Annual and Lifetime Contribution Limits

Any rollover from your 529 account is subject to annual Roth IRA contribution limits. For example, if in 2024 the Roth IRA contribution limit remains the same as in 2023 ($6,500 for individuals under 50), you can roll over an amount up to this limit, including yearly contributions withheld from your income. There is also a rollover contribution limit of $35,000 over your lifetime.

02 | The 15-Year Rule

To qualify for tax and penalty-free rollovers, the 529 plan must have been open for at least 15 years. This 15-year clock starts ticking from the day the 529 plan was initially opened, usually by a parent or grandparent. It's crucial to remember that changing the beneficiary of the 529 plan at any point may potentially restart this 15-year clock.

03 | 5-Year Rollover Blackout

Funds that were contributed to your 529 plan within five years of the rollover date cannot be rolled over. Only contributions made outside of this five-year window are eligible. But, you can continue to rollover funds as time goes on and the 5-year window moves farther away from the most recent contributions.

Here's an example of how these rules work in real life: Imagine your mother opened a 529 account for you in 2001. She contributed money to the account every year for 20 years, through 2020. When you graduated college in 2022, there were some funds left in the 529 account. You want to roll over these funds into a Roth IRA on January 1, 2024.

In this scenario, the account has been open for at least 15 years, so you can roll over funds into a Roth IRA, up to the annual contribution limit of $6,500 per year. But, the funds you roll over from the 529 cannot include funds your mother contributed in the 5 years before your rollover date of January 1, 2024. That means you can’t roll over funds contributed to the 529 account between January 1, 2019, and January 1, 2024.

Let’s look at another example: Your father opened a 529 college savings account for you in 1998 and contributed money to it every year until your graduation from trade school in 2015. Since graduation, you and your employer have contributed a total of $3,000 to your retirement account this year. There is $10,000 left in the account and you want to roll over the funds into a Roth IRA on January 1, 2024.

In this example, the account has been open for more than 15 years and all of the funds in the account were contributed to it more than five years ago, so all of the funds are eligible for a rollover. However, you can only contribute up to $6,500 to your retirement accounts annually. Because of this, you can only roll over a maximum of $3,500 from your 529 account into your Roth IRA this year if you or your employer don’t make any more contributions to your retirement this year. After the rollover, you’ll have $6,500 in your 529 account at the end of 2024.

In 2025, you’ll be able to roll over the remaining $6,500 from your 529 into your Roth IRA (if you make no other contributions from your income that year).

An Extra Bonus For Grandparent-Owned Accounts

In order to be considered for federal financial aid, students must disclose their personal and family financial information on the Free Application for Federal Student Aid (FASFA). Funds in a 529 account created by a parent are counted as a financial asset of the student on the FAFSA application.

But funds in a 529 account owned by a grandparent or other third party have never been counted as an asset for FAFSA purposes. Only money withdrawn from the account is considered untaxed income of the student which FAFSA considers in its application review.

The big news is that with the new Secure 2.0 Act, any withdrawals from a grandparent-owned 529 for education expenses will no longer be considered untaxed income of the student, which means the funds will not hurt the student’s eligibility for federal aid.

Planning for What’s Really Important

While you take steps to secure your financial future, don’t forget to protect everything you’ve worked so hard to build. Your retirement savings is likely the largest asset you own, and making sure it’s managed and passed on in the best way possible is essential for your well-being and the future well-being of those you love.

To make sure there’s a plan for your future, give our office a call. We’d be honored to learn more about your goals for your family and share with you the unique process we use to ensure everything you own and everyone you love is cared for, no matter what.

Schedule a free 15-minute discovery call to get started.

Do Not Leave Your Trust Unprotected: 6 Ways a Trust Protector Can Help You

Fri, 05 Jan 2024 14:43:01 GMT

Trust protectors are commonly used in the United States. Essentially, a trust protector is someone who serves as an appointed authority over a trust that will be in effect for a long period of time. Trust protectors ensure that trustees maintain the integrity of the trust, make solid distribution and investment decisions, and adapt the trust to changes in law and circumstance.

Whenever changes occur, as they are bound to do, the trust protector has the power to modify the trust to carry out the trustmaker’s intent. Significantly, the trust protector has the power to act without going to court—a key benefit that saves time and money and honors family privacy.

Here Are 6 Ways a Trust Protector Can Help You

Your trust protector can take the following actions:

1. Remove or replace a trustee who is not performing their duties appropriately or is no longer able or willing to serve

2. Amend the trust to reflect changes in the law

3. Resolve conflicts between beneficiaries and trustees or between multiple trustees

4. Modify distributions from the trust in response to changes in beneficiaries’ lives such as premature death, divorce, drug addiction, disability, or lawsuits

5. Allow new beneficiaries to be added when new descendants are born

6. Veto investment decisions that might be unwise

Warning

The key to making a trust protector work for you is to be very specific about the powers available to that person. It is important to authorize that person, and any future trust protectors, to fulfill their duty to carry out the trustmaker’s intent—not their own.

Can You Benefit from a Trust Protector?

Generally speaking, the answer is yes. Trust protectors provide flexibility and an extra layer of protection for the trustmaker’s intent as well as for the trust’s accounts and property and its beneficiaries. Trust protector provisions can easily be added to a new trust, and older trusts may be changed to add a trust protector. If you have created a trust or are a beneficiary of a trust that feels outdated, call our office now.

Can Artificial Intelligence Programs Write Basic Estate Planning Documents?

Tue, 05 Dec 2023 03:04:11 GMT

With the increased coverage of artificial intelligence (AI) and all of the applications it can have in our everyday lives, some people may wonder whether an AI program can create an estate plan for them. While AI may be able to generate basic estate planning documents, including wills and trusts, there is no guarantee that they will be valid and enforceable. Providing accurate information and executing the documents in compliance with your state's laws is critical. Otherwise, your documents will not work as intended.

Most people do not have the legal knowledge necessary to determine what clauses and language should be included in a will or trust to accomplish estate planning goals. They also are not familiar with state laws or how to comply with them. This is why people rely on experienced attorneys to prepare the necessary documents to carry out their wishes.

Some state laws are complex and hard to understand, and you may not know enough specifics to offer the correct information about your situation or verify that AI has properly generated or created your will or trust. Additionally, your final documents may contain wording, formatting, and grammatical errors that make them unenforceable. To review them carefully, you have to know what to look for, which often requires that you possess a certain level of legal education and knowledge.

The AI program does not understand your situation and will not help you solve a complex legal issue unless you can provide additional information. Even then, you should be cautious and ask yourself the following questions:

● How well do I understand my options for protecting my money, property, family, or business if I have a medical emergency and after death?

● Do I have a complex financial situation with large amounts of property, income, or debt?

● Is my family structure complicated (family dynamics leading to questions about property or disinheritance)?

● Am I undecided about my wishes (how to divide my money and property or what to include in an advance directive)?

Ease and Convenience versus Legal Expertise

Online estate planning programs that use artificial intelligence are designed to streamline or automate the process, making it more accessible and cost-effective for those on a tight budget. While they may provide convenience and accessibility, they provide limited guidance, and they do not offer the same level of customization, legal expertise, and personalization that an experienced estate planning attorney can provide.

You must carefully consider your needs and circumstances before choosing a reputable online estate planning program, such as one of the following:

● Quicken WillMaker & Trust

● Trust & Will

● LegalZoom

● Rocket Lawyer

● U.S. Legal Wills

Each program requires you to answer a series of questions in an attempt to tailor various legal documents, such as wills, trusts, advance directives, powers of attorney, and other estate planning documents, based on the information you provide. You may have trouble providing accurate and specific answers for several reasons:

● Legal knowledge. Crafting precise answers to estate planning questions requires familiarity with legal terms, their context, and how they should be structured in a legal document.

● Clear intentions. Vague or ambiguous answers can lead to inaccurate, incorrect, or inadequate documents for your situation.

● Complex legal requirements. Legal documents must adhere to specific formatting, contain specific language, and comply with legal requirements that vary by state and are not always straightforward.

● Legal consequences. Certain instructions or clauses within a document require predicting and avoiding potential legal issues; being unaware of the risks has adverse legal consequences.

● Omission and oversight. You may overlook critical details or legal considerations necessary to achieve your estate planning goals, resulting in incomplete or ineffective documents.

If you do not understand which estate planning strategies should be implemented to address your unique situation, how can you ensure that the software is creating the appropriate documents for your needs? Legal professionals have the necessary expertise and training to ensure that your concerns are addressed and can implement an adequate estate plan so that your wishes can be legally carried out.

Situations Requiring More Than a Basic Will

While a basic online will may be a viable option for some, an experienced attorney is helpful in the following circumstances.

Blended Families

If you have remarried and have children from a previous relationship, you must create a will or trust that ensures that your money and property are distributed in a way that considers both your new spouse and children from the prior relationship. You may have to make some complex decisions, which may be difficult to evaluate without legal advice.

Special Needs Planning

If you are a family with a dependent child or an adult with special needs, you may want to establish a special needs trust to provide for the ongoing care and financial support of your loved one while still maintaining their eligibility for government assistance programs. This requires a custom strategy to consider your options and ensure that your trust is legally compliant in your state to accomplish your goals.

Estate Tax Planning

If you are an individual with a large estate potentially subject to estate taxes, you will want to understand the latest tax-saving strategies, such as gifting, trusts, or other legal tools to minimize estate tax liabilities and preserve a greater legacy for heirs.

Business Succession

If you are a business owner looking to pass your business on to the next generation or sell it upon retirement, you will need a comprehensive plan that effectively addresses the shift in ownership, management, and business property for a smooth and successful transition.

Multistate or International Property and Heirs

If you have real property in different states, heirs may be subject to estate administration processes across multiple jurisdictions, which will require consideration of different state laws and potential tax implications. Having property and heirs in other countries creates even more complexity.

Asset Protection

If you have concerns about potential creditors coming after your hard-earned money while you are alive or creditors or ex-spouses taking the inheritance of your beneficiaries (spouse, children, loved ones, etc.) after your death, you will need an estate plan that has been specifically crafted to protect your life savings from potential creditor claims and legal challenges. This plan will need to contain specialized provisions and must be created in a manner that complies with the law to ensure that it is legally valid and not a fraudulent transfer.

Charitable Planning

If you want to include charitable giving as part of your estate plan, it may require establishing charitable trusts, foundations, or other organizations to support specific philanthropic causes while maximizing tax benefits. Each organization will have rules regarding gifts that you must follow to avoid negative consequences.

An estate planning attorney can address the unique needs and goals of you and your family. They will educate you about your situation and allow you to make informed decisions.

Errors That Make Online Documents Unenforceable

Estate planning attorneys help you avoid the following common mistakes in online documents that could make them unenforceable, require a court to interpret them, or lead to fighting among your loved ones:

● Ambiguity in wording. Ambiguity can lead to disputes and legal battles among potential heirs. Example: a will stating "I leave my property to my children" without specifying which children by name

● Improper use of legal terms. Misusing legal terms like property, beneficiary, or per stirpes can lead to confusion or incorrect interpretation of your intent.

● Incorrect names or identities. Misspelling the full name of a beneficiary or heir or using a previous name after a legal name change makes it challenging to identify the intended recipient.

● Inconsistent terminology. Using different terms to refer to the same asset (e.g., house, residence, property) may create confusion about what is being inherited.

● Improper witnessing and notarization. Failing to properly witness or notarize a will and other legal documents according to state laws can render them invalid and unenforceable.

● Lack of clarity in distribution. Vague instructions regarding who will receive your accounts and property or how they will receive them, such as "divide my estate fairly among my children," may cause disputes if there is no clear definition of terms like fairly.

● Failure to address contingencies. Not accounting for contingencies, such as what to do if a beneficiary predeceases you, can leave money and property without designated recipients, subjecting it to your state law.

● Inadequate powers of attorney. Failing to grant adequate powers of attorney, such as financial or medical decision-making authority, creates complications in managing affairs during incapacity and with advance directives at the end of your life. This could require your loved ones to get a court involved, which is what the powers of attorney were meant to avoid.

● Conflicting instructions. Providing contradictory instructions within a single document or across several documents leads to uncertainty about your intentions.

There are many considerations and potential scenarios that should be included in your estate plan. Online legal programs cannot adequately address unique situations or additional estate planning details, exposing you to unnecessary risks.

Experienced estate planning attorneys play a vital role in designing and reviewing state-specific forms that address your family's needs as well as ensuring that your wishes are met while preventing disputes in the estate administration process.

If you wish to use artificial intelligence estate planning programs, they can be used as an outline to begin the process. Take this information to an estate planning attorney to review and address the many situations you may not have considered regarding your unique family dynamics and financial circumstances. Legal experience and expertise offer valuable guidance and education. If you are ready to create a legally enforceable, customized estate plan, give our office a call to schedule an appointment.

How to Trademark Your Business Name and Protect Your Brand

Tue, 05 Dec 2023 02:58:48 GMT

Your company's name is more than just a label; it's a valuable asset that not only represents your brand but represents the legacy of your work in the world as well. It tells your clients, customers, and community who you are and what your business stands for. Protecting your business name through trademark registration can be a crucial step in securing your brand identity and preventing others from using a name you’ve invested in without your permission.

In this blog, we'll walk you through the essential steps to trademark your business name – ensuring it remains uniquely yours and legally protected from others who may want to copy or imitate it.

Step 1: Conduct a Trademark Search

The first step in trademarking your business name is to ensure it's not already trademarked by someone else. This involves conducting a comprehensive trademark search.

To do this, go to the United States Patent and Trademark Office (USPTO) website [link to https://www.uspto.gov/trademarks/search] and run a search for existing trademarks that may conflict with your business name. If your business name is already registered as a trademark, consider a different name or consult with our office to assess the issue further.

Step 2: Choose the Right Category

When you submit an application to register a trademark, the application will ask you to choose the type of business category your company falls under, such as food services or building materials. To trademark your business name, you must identify one or more categories that best suit your business.

Selecting the appropriate category or categories ensures your trademark protection extends to the products or services you offer. Misclassifying your trademark under the wrong category could lead to limitations on the protection of your name, so be sure to contact us if you have any doubts about which category your business fits into best.

Step 3: Prepare and Submit Your Application

Once you've chosen the right category, it's time to prepare and submit your trademark application. This can be done online through the USPTO website, where you'll need to provide detailed information about your business, including a description of the goods or services you offer. Additionally, you'll be required to pay a $250-$350 filing fee per class category depending on the type of application.

After submitting your trademark application, it can take several months, or even up to a year, for the USPTO to review and process it. During this time, it's crucial to monitor the status of your application using the USPTO's online tracking system.

If there are any issues or questions from the USPTO, it's essential to respond promptly and accurately to keep the process moving forward.

In the meantime, it would be a good idea to take screenshots of your trademarked terms being used in the world, so you can submit proof of use of the name when the USPTO requests it.

Step 4: Defend and Renew Your Trademark

Once your trademark is registered, it's your responsibility to defend it against any potential infringements. This means keeping a watchful eye on the marketplace for any unauthorized use of your business name or similar names. If you come across any infringements, contact us right away so we can support you to prevent the unauthorized use of your trademark.

It’s also important to know that trademark protection doesn’t last forever – it must be renewed every ten years to maintain its legal standing. Be sure to keep track of your trademark's renewal date and submit the necessary paperwork and fees on time to prevent it from expiring.

Don’t Just Hire a Lawyer, Hire a Team Member

Trademarking your business name is an essential step in establishing and protecting your brand identity. With a registered trademark, you can confidently move forward in building your brand while protecting your business's future and your personal legacy.

If you want support to consider whether you should trademark the name of your business, and then the support to actually do it, we can help. At Bray Law Office, LLC, we don’t just create legal documents and show you the door – we serve as an extension of your team by regularly collaborating with you to help you realize your vision for your life and business.

To learn more about how we serve our clients, schedule a complimentary call with us using the button below.

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What You Must Know About Your Right to Your Spouse’s Retirement Benefits

Tue, 05 Dec 2023 02:52:26 GMT

If you’re part of a blended family (meaning you are married with children from a prior marriage in the mix), you’re no stranger to the extra considerations and planning it takes to keep your family’s life running smoothly – from which parent your children will be with for the holidays to figuring out the schedule for a much-needed family vacation. You’ve also probably given some thought to what you want to happen to your assets and your family if something happens to you.

But what you might not have realized is this: If you don’t create a plan for your assets before you die, the law has its own plan for you that might not reflect your wishes for your assets, especially your retirement assets. And if you’re in a blended family, this can have a significant financial impact on the ones you love and even create expensive, long-term conflict.

This week, I explain how the law affects retirement distributions for married couples, and why you need to be extra careful with your retirement planning if you’re in a blended family to ensure your retirement account assets go to the right people in the right amounts after you’re gone.

Be Aware of How ERISA Affects 401K Distributions

If you’ve remarried, you and your new spouse have probably talked about updating the beneficiary designations on your retirement accounts to reflect your blended family arrangement. (If you haven’t talked about it, you need to talk about it ASAP). Sometimes, people who are remarried decide to leave their retirement funds to their children from a prior marriage and leave other assets like their house and savings accounts to their current spouse. You may do this to avoid future conflict between your spouse and your children over your assets.

But even if you want to leave your retirement for just your children, if you’re married and your retirement account is a work-sponsored account, your children won’t inherit the entire account even if you name them as the sole beneficiaries.

That’s because the federal Employee Retirement Income Security Act (ERISA) governs most employer-sponsored pensions and retirement accounts. Under ERISA, if you’re married at the time of your death, your spouse is automatically entitled to receive 50 percent of the value of your employer-sponsored plan – even if your beneficiary designations say otherwise.

The only time that your surviving spouse would not inherit half of your ERISA-governed retirement account is if your spouse signs an official Spousal Waiver saying they are affirmatively waiving their right to inherit 50 percent of the account, or if the account beneficiary is a Trust of which your spouse is a primary beneficiary.

IRAs Have Different Rules Than 401Ks

If you want your children to inherit more than 50 percent of your work-sponsored retirement benefits, and completing a Spousal Waiver isn’t an option, consider rolling the account into a personal IRA instead.

In contrast to 401(k)s and similar employer-sponsored plans, IRAs are controlled by state law instead of ERISA. That means that your spouse is not automatically entitled to any part of your IRA.

When you roll a 401(k) into an IRA, you gain the flexibility to name anyone you choose as the designated beneficiary, with or without your spouse’s consent.

On the other hand, if you want to ensure your spouse receives half of your retirement savings, make sure to include them as a 50 percent beneficiary or better yet, have your individual retirement account payout to a Trust instead. With a Trust, you can:

● Document exactly how much of your retirement you want each of your loved ones to receive

● Control when they receive the funds outright

● Easily update and change the terms of your Trust without having to remember to update your financial accounts.

Beneficiary Designations Always Trump Your Will

Whether you have an employer-sponsored 401K or an IRA you manage yourself, there is one critical rule that everyone needs to know: beneficiary designations trump your Will.

A Will is an important estate planning tool, but most people don’t know that beneficiary designations override whatever your Will says about a particular asset.

For example, if your Will states that you want your retirement account to be passed on to your brother, but the beneficiary designation on the account says you want it to go to your sister, your sister will inherit the account, even though your Will says otherwise.

Similarly, let’s imagine that you get divorced and as part of your divorce decree your ex-spouse agrees that they will not have any right to your retirement fund. However, after the divorce, you forget to take their name off of the beneficiary designation for the account. If you die before updating the beneficiary designation, your former spouse will inherit your retirement account.

If you forget to update your ERISA-controlled account and have remarried, your current spouse would receive half of the account and your former spouse would receive the other half. That’s why it’s so important to work with an estate planning attorney who can make sure your accounts are set up with the proper beneficiary designations and ensure that your assets are passed on according to your wishes.

Work With An Attorney Who Makes Sure All Your Assets Will Be Passed On How You Want Them To

Understanding how the law affects different types of assets is essential to creating an estate plan. But there’s more to it than just having a lawyer – you need an attorney who takes the time to really understand your family and your assets so they can design a custom plan that achieves your goals for your assets and your legacy.

That’s why we help our clients create an inventory of all of their assets to ensure that every asset they hold is accounted for and passed on to their loved ones exactly as they want it to.

Learn more about how we serve our clients differently than most lawyers; schedule a complimentary call with us. We’d be honored to share how our unique process can help your family.

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Do This By December 31st to Get a Year-Long Extension To The Corporate Transparency Act Reporting Deadline

Tue, 05 Dec 2023 02:46:45 GMT

Beginning January 1, 2024, the Corporate Transparency Act (CTA) will require businesses to file an annual report about their owners and major decision-makers. If you plan to create a new company, your reporting deadline under the CTA could be as soon as 90 days after the date of its creation. The good news is there’s a way to get more time to file the required report for your new business, but you have to act fast.

In this blog, I’ll share how to get a year-long reporting extension for your business that can give you more time to gather the required information needed to file the report. But before I tell you how to gain the extension, it’s important to understand what the CTA is and how it will affect your business.

What The Corporate Transparency Act Means For Your Business

The Corporate Transparency Act (CTA) was enacted in 2020 to enhance corporate transparency and prevent money laundering, terrorist financing, and other financial crimes. By requiring businesses to report information about their owners and major decision-makers, the Act seeks to make it easier to identify “shell” corporations – companies that don’t actually perform an active business or trade and which are often used to move money around illegally.

To comply with the Act, certain businesses including some corporations and LLCs will need to disclose the names of anyone who owns 25% or more of the company and any members of the company who have “substantial control” over the company’s activities to the Financial Crimes Enforcement Network (FinCEN).

In order to comply, a business must file an annual report with the following information on each owner or controller of the business:

● Business name and current business address

● State in which the business was formed and its Entity Identification Number (EIN)

● Owner/controller’s name, birth date, and address

● Photocopy of a government-issued photo ID (such as a driver’s license or passport) of every direct or indirect owner or controller of the company

If a company doesn’t file an annual report, it may be penalized with a $500 fine for every day the report is late and its owners could even face imprisonment for up to two years.

What Businesses Need to Report Under The CTA?

The new CTA rule applies to any company that is created by filing a formation document with the Secretary of State or a similar office, such as corporations and limited liability companies (LLCs).

Since money laundering and terrorist financing are usually conducted using small businesses, the Act largely aims to collect information on these companies, so entrepreneurs and small business owners should take extra care to meet the filing requirements.

Publicly traded companies, non-profits, and regulated companies like financial firms, accounting agencies, and banks are exempt from the rule. Large companies are also exempt if they have 20 or more full-time employees in the US and generate $5 million or more in revenue. An LLC or corporation that isn’t actively performing a business or service is also exempt due to its inactivity.

When Do You Need to File Your Report and How Can You Extend Your Deadline?

Here’s the thing about filing your annual report for the Corporate Transparency Act: If your company was created after January 1, 2024, you’ll need to file your report within 90 days of the company’s creation. But, if your company’s formation occurred on or before December 31, 2023, you have until January 1, 2025, to file its CTA report.

So, if you already have a business entity created, you have until January 1, 2025, to submit your report. So, if you’re thinking of creating a new company or changing the entity structure of an existing company, doing so before January 1, 2024, will give you a year-long grace period to file the report. Otherwise, once January 1 rolls around, it’ll be too late to take advantage of this extension.

Why does this extension matter?

The extension provides a valuable window of time for business owners to understand the reporting requirements thoroughly, gather the necessary information, and engage with legal professionals to ensure they’re in compliance with the Act without the pressure of a 90-day deadline.

The Act’s reporting rules seem straightforward, but the penalties for non-compliance can be substantial. Creating your new business entity by year-end provides a cushion against potential penalties and risks associated with overlooking or misunderstanding reporting requirements. It's a proactive step that gives your business the advantage of time.

Helping You Make Strategic Moves for Your Business

If you’re thinking of creating a new business entity soon, I encourage you to do it NOW before the end of the year so you can take advantage of the year-long window to file your Corporate Transparency Act report for existing businesses.

And don’t wait until the end of December to get started, as we anticipate there will be a rush of new business entity filings at the end of December as business owners and their professionals rush to file their creation documents before the new year.

I can help you create a new business entity before the January 1st deadline so you can take advantage of the extended filing deadline for existing businesses. But my approach to serving my business clients doesn’t end when the paperwork is filed. I’ll work with you to ensure any business you own has the Legal, Insurance, Financial, and Tax structures it needs to run smoothly from its first day to its last.

Schedule a complimentary call with my office using the button below to learn more.

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Transition to Adulthood: What Happens Legally When My Child Turns 18?

Tue, 05 Dec 2023 02:36:40 GMT

Soon after the challenges of puberty and the excitement of high school, an even larger milestone looms: the 18 ^th birthday. It marks your child’s transition from childhood to adulthood, and with it new responsibilities and rights. From a legal standpoint, this milestone also brings significant changes that every parent should be aware of.

In the eyes of the law, an individual is considered a legal adult at the age of 18. This means that your child gains certain rights and privileges, including the ability to enter into contracts, vote, buy property, and make medical decisions for themselves. While this newfound independence is a crucial part of growing up, it can also pose

challenges for parents, especially when adult children need their parents’ help or need someone to make decisions on their behalf.

In this blog post, we’ll explore what happens legally when your child turns 18, what it means for your ability to make legal, financial and healthcare decisions on their behalf, and what tools you’ll need for a smooth transition to adulthood.

How The Law Changes Your Role As A Parent

On the day your child turns 18, your ability to make legal, financial and healthcare decisions for them essentially disappears in a blink. To give you a sense of how impactful this can be, if your now 18-year old or older child is hospitalized and unable to communicate their wishes, healthcare providers won’t even legally be able to share your child’s medical information with you. Similarly, financial institutions won’t permit you to access your child's accounts or make financial decisions on their behalf without their consent - or unless you’re a co-owner of their accounts.

This shift in decision-making authority can feel unsettling and can be particularly challenging if your child is still financially dependent on you, is in a medical emergency, or requires assistance in managing their affairs due to a disability. Thankfully, there are legal tools that can help parents and young adults navigate these new challenges.

Have Their Back With Powers of Attorney

A Power of Attorney is a legal tool that allows your child to designate the person they choose to make legal or healthcare decisions on their behalf. There are two common types of Powers of Attorney that can be valuable in this situation: a General Durable Power of Attorney and a Power of Attorney for Healthcare.

A General Durable Power of Attorney allows your child to appoint someone to manage their financial affairs in the event they become incapacitated or if they just want help managing their finances. With this in place, you can continue to assist your child with financial matters, even after they turn 18.

The important thing to remember however is that not every financial institution will honor a Power of Attorney, so while every adult should have this legal tool, it’s important to check with your specific institution and possibly set up your child’s accounts in a different way to ensure you have immediate access to them if needed. We’d be happy to discuss which options are best for you and your adult child.

A Power of Attorney for Healthcare grants someone the authority to make medical decisions on your child's behalf if they are unable to do so, such as medication and treatment options, nutritional needs, and life-support measures. This is crucial to ensure that your child receives the care they want, even if they cannot communicate their preferences.

Only your child can put these measures in place, but encouraging them to create these legal documents is a proactive step in maintaining your ability to assist them when they need it most.

Stay Informed With a HIPAA Waiver

The Health Insurance Portability and Accountability Act (HIPAA) is a federal law that protects the privacy of individuals' medical records. Once your child turns 18, their medical information is protected under HIPAA, and healthcare providers are prohibited from disclosing it to anyone without the patient's explicit consent - parents and family members included.

To maintain access to your child's medical information, they must complete a HIPAA waiver. This document permits healthcare providers to share medical information with individuals specified in the waiver, such as parents or trusted family members.

Having a HIPAA waiver in place can be invaluable during medical emergencies when swift access to medical records is critical. It can also be a valuable tool for young adults who may simply appreciate a parent’s ability to speak to their doctors when they aren’t feeling well or are overwhelmed with the demands of work, college, or both.

Support Their Journey Into Adulthood Through Open Communication

Transitioning to adulthood is a significant step for both parents and children. While legal documents such as Powers of Attorney and a HIPAA Waiver are essential, it's equally important to have open and honest conversations with your child about their wishes and the responsibilities that come with adulthood.

Discuss their healthcare preferences, financial decisions, and their expectations from you as a parent. Encourage them to consider creating these legal documents not only for your peace of mind but also for their own protection.

We invite you to reach out to our firm at any time, but if you have a teen who is approaching adulthood, reach out to us right away to ensure your child has the legal support and protection they need no matter what adulthood brings.

And if you aren’t sure how to talk with your adult child about these legal tools, we can help you start the conversation from a place of love, compassion, and collaboration.

Schedule a complimentary call today to get started, and when you do ask about our special offer of free legal documents for your young adult, when you schedule your own Life & Legacy Planning Session with us.

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How to Talk Money With Your Family Over The Holidays

Tue, 05 Dec 2023 02:21:10 GMT

The holidays are right around the corner, which means more time to gather with family and relatives than any other time of the year. If you’ve been meaning to talk to your family about money, inheritance, end-of-life decisions, estate planning, and creating a plan for your whole family’s wealth - now and in the future - having everyone in the same room is ideal.

But asking your relatives how they want their assets handled when they die or if they become incapacitated might not go over well while opening presents or carving a turkey.

To keep your family from feeling blindsided and to make the most of your conversation, consider the following three tips.

01 | Share Your Intention Ahead of Time

Many people feel uncomfortable talking about their finances. They may have grown up in a family where money talk was considered taboo or perhaps they simply don’t want the details of their finances to create family tension. Some people also feel like talking about estate planning and making a plan for their money is plain bad luck (but we’re happy to report that planning for your assets does not increase your chance of dying, as you’ve already got a 100% chance of death, but it does increase your chances of leaving behind a happy, well-adjusted family).

To help your loved ones feel at ease, don’t bring money talk up for the first time while the family is gathered around the TV watching football. Instead, approach the topic weeks ahead of time if possible.

If you have regular visits or phone calls with your loved ones, let them know you’ve been thinking about creating a plan for your own money and the care of the family in case something happens to you. Casually mentioning that it’s on your mind will help plant the seed for a future conversation with your loved ones and likely get them thinking about their own plan or lack of a plan.

As your family gathering approaches, bring up the subject again, this time with more intention and detail. Consider asking the host of your family gatherings, whether it’s your sibling, parent, or adult child when the best time would be to have an all-family conversation about money for 90 minutes. Schedule it and let everyone know that you’ve got something meaningful planned.

If the host pushes back against the idea, respond with curiosity about their experience, what they feel apprehensive about, and if there is a way that you could mitigate their apprehension perhaps by speaking with other family members in advance.

If you’ve already completed your own planning, use your experience as a springboard for the conversation. More on this below.

02 | Set Aside a Time and Place to Talk

Discussing money while opening Christmas gifts isn’t likely to have the results you want. Your best bet is to schedule a time to gather to talk without distractions or interruptions.

Be upfront with your family about the meeting’s purpose so no one is taken by surprise and so they come prepared for the talk. Choose a setting that’s comfortable, quiet, and private. The more relaxed everyone is, the more likely they’ll be comfortable opening up.

Begin by sharing the context of why it’s important to you that your family begin having conversations about money, life and death. You may even want to share that the topic is uncomfortable for you, but that it’s important enough that you are willing to be uncomfortable because you know that these conversations can bring your family closer together, create more family resilience, and ensure you are all financially well-cared for, always.

Finally, as part of setting context, set a start and stop time for the conversation. Remember, the goal is to simply get the conversation started, not work out all of the details or dollar amounts, so don’t expect this to be the one and only conversation you have – its a start.

03 | Share Your Planning Experience

If you’ve already created your own plan, and it included an inventory of your assets, a look at what is enough, and what would happen to it all when something happens to you (which is what we do during our first Planning Session with you), you can start by explaining how you felt during the process, how easy it was, and how you feel now knowing that your assets and loved ones will be cared for the way you want if something happens to you.

If you’ve worked with us, describe how the process unfolded and how we supported you to create a plan designed for your unique wishes and needs.

Share any concerns or doubts you initially had about planning and how we worked with you to address them. If you have loved ones who’ve yet to do any planning and have doubts about its usefulness, empathize with them in a supportive and understanding way, and share your own journey learning the benefits of planning for your money and your wishes.

If you haven’t created a plan yet, or have doubts about a plan you created with another attorney, be open about why you want to create a plan for your life and death, such as a desire to avoid family conflict, to ensure that a child, disabled relative, or senior parent is cared for in the future, or to build generational wealth and a legacy for your family. Focus on the benefits that planning will have for both your immediate family and your extended family as a whole.

Bringing Families Together

Talking to loved ones about money and estate planning can be difficult, but as your Personal Family Lawyer® firm, we can guide and support you in having these intimate discussions with your loved ones. When done right, planning can put your life and relationships into a much clearer focus and offer peace of mind knowing that your assets will be protected and that the people you love most will be provided for no matter what.

If you’ve already created a plan with us, be sure to share our library of blog resources HERE with your loved ones. If you haven’t created your own estate plan, doing so before you talk with your family can help your loved ones be more open to the idea and can help them see the incredible benefit of planning from one of their own family members.

Schedule a complimentary call with us using the button below to learn more.

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What Happens to My Leased Car If I Die Before the Lease Term Ends?

Wed, 29 Nov 2023 14:15:00 GMT

After a house, a car is often the second-most valuable piece of property a person owns.

About 15–20 percent of new vehicles are leased rather than purchased and financed. Leasing is a popular alternative to traditional financing because it can allow the lessee (the person who leases a vehicle) to drive a more expensive car on a lower monthly payment during its most trouble-free years. At the end of the lease term, the vehicle can then be returned for a new model.

A lessee, however, does not own their vehicle. They drive it under a car lease agreement that is a binding contract. The contractual obligations of a lease can affect an estate plan, so lessees should understand what is in the fine print of their contract and what happens to a lease after their death.

How a Lease Works

From 2015 to 2019, there were approximately 17 million vehicle leases per year, representing nearly one-third of all car sales.

This was the highest percentage of leasing in history, but leases plunged with the pandemic and now account for around 17 percent of all new models delivered to customers.

With a lease, the buyer and dealer agree to a set term and monthly payment that is based on how much the vehicle is expected to depreciate over the contractual period. Instead of paying an interest rate on a loan, the lessee pays the money factor (the money the lessor used to buy the car).

Leases have mileage caps of 10,000–15,000 miles per year, above which penalties are assessed. They also typically require a down payment, an acquisition fee, and a disposition fee to return the leased vehicle. Any damage determined to be beyond normal wear and tear could result in an additional charge.

Most dealers offer leases from 24 to 60 months. At the end of the lease term, the vehicle is turned in to the dealer. Although lessees do not build equity in a vehicle the same way that buyers can, if the car is worth more than the predetermined residual value in the lease, they may end up with a positive trade-in value.

Ending a lease early can result in early termination fees and penalties. According to Consumer Reports, these charges can amount to thousands of dollars and could equal the amount of the entire lease term.

But during periods when the used car supply is tight or a particular model is in high demand, dealers may be willing to make a deal that lets the lessee out of their contract early, says Kelley Blue Book. It might also be possible to transfer the lease to someone else.

Lease Options When the Lessee Passes Away

What happens to a vehicle lease when the lessee dies depends on the lease terms, as outlined in the contract.

Early Termination Death Clause

The lessee’s death does not alter the lease terms or cause the lease to automatically terminate, unless it contains a provision that allows for early termination due to death.

Even if the lease permits early termination in the event of the lessee’s death, it may require a dealer fee along with the return of the vehicle. To prove the lessee has passed away, the estate may have to provide a death certificate.

If the lessee had fallen behind on their payments, the dealer might disallow early termination, repossess the vehicle, and require the estate to pay the lease balance. For a solvent lease, the dealer could permit an estate representative to transfer the lease to another party, including a person in the family willing to assume the lease. Again, it comes down to the contract terms.

Standard Early Termination

Ending a lease early—whether because of death or some other circumstance—could trigger early termination provisions in the contract. This could result in all remaining payments on the lease becoming due, paying early termination fees, returning the vehicle, and paying the disposition fee. These costs can typically be paid from the estate.

Options with a Colessee

Lessees do not own their vehicle and cannot leave it to a beneficiary in their estate plan. But they may have a coborrower or colessee on the contract.

When there is a cosigner on the lease, that individual typically assumes financial responsibility for remaining payments after the lessee dies. At that point, the colessee could choose to keep the vehicle or look for a lease swap partner. However, some contracts prohibit lease swaps, limit them to a partial transfer, or have prerequisites, such as only allowing swaps on a four-year lease at the two-year mark.

Certain brands and dealers might have a contingency for colessees and the death of one borrower. For example, Ford has what it calls a Peace of Mind Program that applies to select leases. If one lessee passes away, the program allows a colessee to continue the lease under the existing terms, pay off the outstanding balance, or return it to a dealership within 60 days of the customer’s death without any remaining contractual obligations.

A colessee usually cannot be added once the lease is signed. But while the lessee is alive, they can take steps to make estate administration as smooth as possible. Someone with a terminal illness might, for instance, terminate or transfer their lease early to avoid any complications in the estate administration process.

A Car Lease Could Be Overlooked in an Estate Plan

The fact that a lessee does not own their vehicle will likely cause it to be given little attention in an estate plan.

One way or another, unless there is a cosigner, the estate will be left to deal with an outstanding car lease. The options for resolving the lease agreement will ultimately come down to the contractual language and, to a lesser extent, the willingness of the dealership to negotiate with the estate.

Following the death of a loved one and before contacting the dealer, an estate representative may want to contact an attorney to review the lease’s fine print. An attorney can help explain how to legally terminate or transfer a lease per the terms provided.

Our attorneys handle estate planning issues sensitively, accurately, and effectively and can assist both individuals who want to create a plan and representatives of an estate. To set up an appointment, call or contact us.

Sometimes Stuff Is the Most Important Part of Your Estate Plan

Wed, 22 Nov 2023 14:00:01 GMT

Most people usually think about who will receive their retirement and bank accounts, life insurance proceeds, real estate, and other valuable possessions upon their death. However, a person’s personal property (their stuff) can also be a source of value that needs to be addressed. When looking to start or continue your estate planning journey, ask yourself the following questions about your personal property.

Do your items have monetary or sentimental value?

Value is in the eye of the beholder. Some items may have significant monetary value, like an antique clock, while others may have sentimental value, like your grandmother’s class ring. Each type of value necessitates its own strategy when planning for its receipt.

If Personal Property Has Monetary Value

It is important that you find out the actual value of items that you think may be worth a lot of money. If an item is very valuable, it may need to be insured. A renter’s or homeowner’s insurance policy may limit what it covers and how much it will pay if your personal property is damaged or stolen. Also, if the item requires maintenance or upkeep, you must make sure that the person who receives it understands what is required so that the value does not decrease.

If Personal Property Has Sentimental Value

Sometimes personal property that has sentimental value can cause the most family conflict. Because your loved ones will already be dealing with your loss, dividing up your mementos without proper guidance can also be emotionally taxing. This may be an even more compelling reason to document your wishes, so that everyone is on the same page. You should think carefully about who will receive sentimental items and ways to mitigate future conflicts if more than one person wants the item.

Will Someone Want Your Stuff?

When crafting your estate plan, it is important to understand what you have and who you want to leave it to. But you may also want to speak with your beneficiaries before creating your plan to find out if the person you plan to give an item to actually wants the item, particularly if the item has storage or maintenance requirements that the person will be responsible for.

If More Than One Person Wants an Item

You may have an item that multiple people want. Being aware of this during your estate planning journey is important so you can address what you want to happen to the item to hopefully prevent conflict after you pass away. You should also think about how you want to balance inheritances if only one person will receive a valuable item or how you want to divide a large group of similar items. Talk to your loved ones so that everyone is on the same page and fights can be avoided.

If No One Wants an Item

While an item may be incredibly important to you, it may not hold the same level of importance to your loved ones. As you take steps to put a plan together, determine what will happen if no one wants an item. You could choose to have it be sold, donated, or offered to an acquaintance with a similar fondness for the item.

Include Your Personal Property in Your Estate Plan

There are a few different ways you can share your wishes for your personal property through the use of an estate plan.

Specific Gift in a Last Will and Testament or Revocable Living Trust

A specific gift in a last will and testament (will) or revocable living trust (trust) allows you to specifically name who will receive a particular item. In either a will or a trust, you can specifically state, “I leave my blue antique vase with pink roses to my daughter, Susan Jones.” When you die, the executor or successor trustee will then give the vase to Susan. However, if you change your mind, the will or trust will need to be changed, which will require a new document to be executed with the requisite formalities.

Personal Property Memorandum

Another option that can be used in many states is a document called a personal property memorandum. This document lists your specific personal property and names who will receive each item. As opposed to a will or trust, generally, you just need to sign and date the personal property memorandum to make it valid—no witnesses are necessary. The document is then referenced in your will or trust as containing your wishes regarding your personal property.

This approach allows you to specifically designate who will receive an item, but if you change your mind, you can simply create a new personal property memorandum instead of having to change your will or trust.

The Residuary Clause

Most, if not all, wills and trusts contain a clause that addresses any items that have not been specifically mentioned and distributed in the will or trust. This is referred to as a residuary clause. A will or trust may provide that anything left be “divided equally among my then living children” or “all to my spouse.” However, you can also decide to direct distribution to other individuals or entities. This ensures that your personal property is distributed. However, if the items are to be divided among a group of people and you do not provide instructions for how the items are to be divided, someone will need to decide how to do so, which could cause turmoil.

We Can Help

Once you know what you have, how much it is worth, and who you want to leave it to, you need to make sure that your wishes are reflected in an estate plan that is complete and legally enforceable. By working with an experienced estate planning attorney, we can craft a plan that is unique to you and your situation. Give us a call to schedule your appointment.

Understanding Your Business Liabilities and Assets

Tue, 21 Nov 2023 13:30:00 GMT

Assets, liabilities, and equity are accounting terms that every small business owner should be familiar with. They are included on a business’s balance sheet, providing a snapshot of financial health.

A balance sheet shows a company’s assets and liabilities at a given time and how money is flowing in and out of the business. This information is useful to owners, lenders, and investors as a decision-making tool.

Only C corporations are required by the Internal Revenue Service (IRS) to complete a balance sheet as part of their annual tax return; but preparing a balance sheet at the end of every month or quarter—or at least once per year—is an essential part of running a business.

Assets, Liabilities, and Equity on a Balance Sheet

The balance sheet equation states that a company’s assets must equal its liabilities and equities: Assets = Liabilities + Equities.

Assets are resources that a business owns. They represent current or future economic value. Liabilities are debts that a business owes. Equity is the amount left over when the total liabilities are subtracted from the total assets.

Assets

An asset is a positive on the balance sheet because it generates, or has the potential to generate, income for a business. Assets can be broken down into current, noncurrent, and investment assets.

● Current assets are short-term assets that can be converted into cash (i.e., liquidated) within the next year, such as inventory, outstanding invoices, cash, and cash equivalents.

● Noncurrent assets are long-term assets that a company does not expect to convert into cash in the short-term, including production equipment, intellectual property, and real estate.

● Investment assets have the potential to generate profits or consistent income for a company. Rental property, mutual funds, stocks, and savings accounts are examples of investment assets.

In addition, assets can be divided into tangible or intangible assets. Tangible assets are physical items such as equipment, inventory, land, buildings, and supplies. Patents, investments, stocks and bonds, and trade names fall into the category of intangible or nonphysical assets.

Liabilities

Liabilities are a negative on the balance sheet because they represent money that the company owes to others. Like assets, liabilities can be categorized as current and noncurrent, depending on when they are due.

● Current liabilities are any debts due within a year. They include accounts payable, debt financing, rent and utility payments, and payroll.

● Noncurrent liabilities are debts due in more than a year, such as deferred compensation and loans paid in increments.

Obligations to provide goods or services in the future can also be liabilities. Current liabilities plus long-term liabilities amount to a company’s total liabilities.

Equity

After the value of all assets is calculated and the value of all liabilities is subtracted, the amount that is left over is equity.

Equity measures the amount of money that a business’s investors would receive if the business liquidated its assets and paid off its liabilities. For a small company such as a sole proprietorship or limited liability company, this amount is referred to as owner’s equity. Larger companies structured as corporations may refer to it as shareholder or stockholder equity.

Owner’s equity in a sole proprietorship represents the amount of cash and property the owner has invested in the business and the business’s earnings over time, minus any withdrawals. Shareholder equity in a corporation generally represents the value of corporate stock and undistributed amounts (retained earnings). ^[1]

Equity is not always positive. If a business’s liabilities are greater than its assets, equity will be negative.

Why Balance Sheets Are Important to Small Businesses

Balance sheets help business owners understand the financial health of their business. Increasing equity is a sign that the business is doing well. Declining equity could mean that it is time to make changes. For instance, business owners could decide to pay off debts to reduce liabilities on the balance sheet. The balance sheet can also provide data crucial for tax calculations, such as asset depreciation and labor costs.

Owners are not the only ones who might look at the balance sheet. Lenders, investors, and buyers may also look at it when assessing a company’s financial position.

A balance sheet, however, is only as accurate as the information and calculations used to generate it. Attention to detail is paramount in accounting. Mistakes can create an inaccurate picture of the business’s finances, leading to compounding distortions and bad forecasting.

You do not have to be a professional accountant to understand business assets, liabilities, and equity. However, you may want to consult with an accounting professional who can create balance sheets for your business. An accountant can also audit a balance sheet, prepare income and cash flow statements, and assist with tax preparation, securing funding, succession planning, growth strategies, and more.

Our attorneys assist small businesses with legal services and can refer you to reputable, local certified public accountants we have previously worked with. Call or contact us if you would like to set up a consultation.

Year-End Tax Planning Starts Now: 8 Things To Do Now to Lower Your 2023 Taxes - Part 2

Wed, 15 Nov 2023 14:00:00 GMT

Last week we looked at four different ways to lower your tax liability for 2023, from adjusting your tax withholding to strategically planning your medical procedures. In this week’s blog, we discuss four more tax-saving methods you can use right now to owe fewer taxes come April 2024.

If you missed part 1 of this series, be sure to read it here so you don’t miss out on these money-saving techniques.

Make Charitable Gifts

Giving back to your community or supporting causes you care about is not only rewarding but can also provide tax benefits if your family’s tax deductions are close to exceeding the standard tax deduction.

The standard deduction for 2023 is $12,950 for individuals and $25,900 for married couples filing jointly. Remember that the total of your itemized deductions, including charitable contributions, must exceed the standard deduction for your filing status to provide a tax benefit.

If you’re nearing the top of the standard deduction threshold, this year may be a great time to contribute to a charitable organization that is important to you. Doing so will help support a good cause and allow you to make itemized deductions for an extra reduction in your taxable income for the year.

If you make any charitable donations, keep detailed records of your donations, including receipts and acknowledgments from the charities. If you donate non-cash items (such as clothing or household goods), make sure to document their fair market value.

If you aren’t sure how to document your donations or aren’t sure if a charitable donation will be advantageous to you this year, be sure to discuss this with your tax professional.

Consider Tax-Loss Harvesting

Tax-loss harvesting is a strategy designed to offset capital gains by selling underperforming investments. This technique can help you minimize the taxes you owe on your investment gains.

The first step is to identify investments in your portfolio that have experienced losses and then sell those investments to realize the losses. After all, you haven’t actually lost or gained capital until the money enters or leaves your portfolio.

By selling underperforming investments, you can now use the lost capital to offset any capital gains from other investments that are doing well. Losses can be used to offset up to $1,500 for individuals filing separately or up to $3,000 for couples filing jointly.

It's important to remember that there are rules and limitations when it comes to tax-loss harvesting. Consult with a financial advisor or tax professional to ensure you execute this strategy correctly and in a way that aligns with your overall financial goals.

Pay Your January Mortgage Payment in December

If you're a homeowner with a mortgage, making your January mortgage payment in December can provide a valuable tax advantage. Mortgage interest is deductible on your income tax return, and prepaying your January mortgage payment in December gives you an extra month of interest to deduct on your 2023 taxes.

However, before implementing this strategy, check with your mortgage lender to ensure that they apply the payment correctly. Some lenders may automatically apply extra payments to your principal balance rather than counting them as interest for the next month.

Max Out Your IRA (Individual Retirement Account) or Roth IRA

Retirement planning is crucial for long-term financial security, and IRAs are excellent vehicles for saving for your golden years. For the 2023 tax year, the maximum contribution limit for both traditional and Roth IRAs is $6,500, with an additional $1,000 allowed for those aged 50 or older. It's essential to understand the differences between these two types of IRAs to choose the one that suits your needs best.

Traditional IRA contributions may be tax-deductible, potentially reducing your taxable income for the year. However, withdrawals in retirement are subject to taxation.

Roth IRA contributions are made with after-tax dollars, so they don't provide an immediate tax deduction. However, qualified withdrawals in retirement are entirely tax-free.

By maximizing your contributions to your IRA of choice, you can secure a more comfortable retirement and possibly reduce your tax liability for this year.

The Foundation of Life-Long Support and Security

Proactive year-end tax planning can significantly impact your financial well-being. By implementing these eight tax-saving strategies, you may be able to keep more money in the bank and take a step toward a brighter financial future.

But good money management is only one part of the equation for a life you love and a legacy that will guide and support your family for generations to come.

Making the best strategic decisions to protect your family’s health, finances, and happiness is equally, if not more, important. If you want to make sure that both your financial and personal life are in order today and structured to give your family the best support possible tomorrow, give us a call.

We would be honored to help you protect everything you own and everyone you love through our heart-centered estate planning services.

scheduling

Mastering Time Management: 4 Effective Strategies for Busy Entrepreneurs - Part 2

Tue, 07 Nov 2023 12:30:00 GMT

If you’re like many business owners, you probably feel like there isn’t enough time in the day for everything you need to do, let alone everything else you’d like to do. But it doesn’t need to be that way.

Last week I explored how to use time blocking and task management tools to better manage your time and get more out of your work day. This week, I’m sharing two more methods every business owner should use to get more done, stay more organized, and have more time to take care of yourself and the people who depend on you.

If you missed last week, be sure to catch up by reading it here. [LINK TO LAST WEEK’s PART 1 BLOG]

3 | Delegate and Prioritize

Business owners frequently wear multiple hats, but attempting to manage every facet of your business yourself can lead to burnout and inefficiency. Time-blocking and the use of technology will significantly increase how much you can get done in one day, but the success of these tools will be limited if you have too many tasks on your plate to begin with.

To effectively manage your time and maintain a high level of performance, it’s essential to prioritize and delegate tasks wherever possible. If the idea of delegating tasks makes you squirm, it’s time to take a look at methods for letting go of control and ways to increase trust in your team members and contractors.

It can be hard to let go of projects or tasks for fear they won’t be done to the same quality that you expect. But learning what to keep on your to-do list and what to delegate is an essential part of growing your business and freeing up your mental space for more creative and strategic projects.

To effectively delegate, begin by recognizing your core strengths and areas of expertise. As an entrepreneur, you probably already have a good awareness of what you’re good at. Focus your energy on tasks that align with these core competencies and have the most significant impact on your business.

Delegate tasks that fall outside of your core competencies or that can be handled more efficiently by others. This may include administrative duties, data entry, routine maintenance, or marketing projects.

The key to successful delegation is to prioritize ruthlessly. Not all tasks are created equal. Use the Eisenhower Matrix, which categorizes tasks into four quadrants based on urgency and importance. Focus on tasks in the "Important and Urgent" quadrant while delegating or eliminating those in the "Not Important and Not Urgent" category.

Feel like you’re the best person for every task? Have an honest look at the skills and personalities of your team members and even outside contractors.

For example, you might be good at updating your website or tracking your business’s expenses, but a professional website designer and bookkeeper can likely do these jobs better and faster, freeing you up to focus on tasks that require your real strengths.

Set Clear Expectations

Delegating can be difficult for entrepreneurs because you innately have a sense of what is best for your business and often feel like delegating will reduce the quality of work you could have done yourself. Or perhaps you feel that the cost of delegating is higher than the cost of just doing it yourself. This is a common fear that you must get past if you want to be able to build an organization that frees you up from doing everything yourself.

To alleviate these worries, communicate your expectations clearly to the people you are delegating work. Define the task's objectives, deadlines, and any specific guidelines. Encourage open communication for questions or clarification to ensure your vision for the task is met.

Slowly build trust in your team's capabilities by empowering team members or contractors with more and more authority and responsibility to complete tasks independently. Effective delegation fosters a sense of ownership and accountability among your team members, and this added responsibility is rarely taken lightly.

Maintain regular check-ins with team members to monitor progress, provide guidance, and ensure alignment with your business goals. Effective delegation and prioritization enable you to concentrate on strategic decision-making and high-impact tasks while efficiently managing your time.

It’s essential to set expectations at every stage of your business, from job offers to contractor agreements. If you aren’t sure you’re communicating your expectations in the best way at every stage, we can help. Schedule a call with us using the link below to learn more.

4 | Automate Repetitive Tasks

While delegation is crucial, some tasks can be completely automated, saving you valuable time and reducing the risk of human error. Efficiency is key to making the most of your time and automating repetitive tasks can be a game-changer.

Consider the vast array of tasks that can be streamlined through automation in your business. For instance, imagine the hours saved by setting up automated email responses and follow-ups. You can craft personalized messages that are automatically sent to clients or customers based on their actions or inquiries. This not only enhances customer engagement but also ensures that no lead or opportunity slips through the cracks.

If your business relies heavily on data management, you can integrate automation to upload data directly from online spreadsheets into your systems. This eliminates the need for manual data entry, reducing the likelihood of errors and allowing your team to allocate their efforts toward more strategic data analysis and projects.

Automation can even extend to social media management as well. Schedule posts in advance, track engagement metrics, and even automate responses to certain interactions. This saves time and maintains a consistent online presence, which is essential for brand building and customer engagement.

By automating the mundane, you not only free up your schedule but also ensure consistency and precision in your operations. Remember, time is your most precious resource, and automating repetitive tasks is a smart move for any busy entrepreneur looking to maximize productivity and achieve a better work-life balance.

You don’t even have to worry about setting these systems up yourself. It’s easy to find talented tech people who can help you set up these automated systems and some automation programs can even install and configure these programs for you remotely before you even get started.

Just make sure you get a contract set up with “work for hire” provisions included, so you own everything created. If you don’t have a great template agreement for hiring team members already, contact us so we can get that set up for you right away.

Helping Your Business Run At It’s Best

We all have the same 24 hours each day, but mastering the right time management tools can enhance your productivity and help you reclaim valuable hours each week. From optimizing your task management to embracing delegation, prioritization, and automation, these approaches can transform your business operations.

If you want to transform how you use your time and optimize your business's Legal, Insurance, Financial, and Tax systems so your company has a strong foundation to build on, schedule a LIFT Business Meeting right now.

Together, we’ll tailor these strategies to your unique business needs and make sure every aspect of your business is set up in the best way possible to ensure you're on the path to greater efficiency and success.

Schedule a free 15-minute call to learn more.

Year-End Tax Planning Starts Now: 8 Things To Do Now to Lower Your 2023 Taxes - Part 1

Mon, 06 Nov 2023 23:41:20 GMT

It might seem a bit early to think about your 2023 taxes, but as the year draws to a close, it's the perfect time to take a closer look at your financial situation and make some strategic moves that can help you minimize your tax liability come April.

Year-end tax planning isn't something you do at the last minute; it's a series of thoughtful steps you can start taking right now. In this blog series, we’ll explain eight key actions you can take during this last quarter of the year to save money on your 2023 taxes.

Let’s get started.

Contribute to Your HSA (Health Savings Account)

A Health Savings Account (HSA) can be a powerful tool for both managing your healthcare costs and reducing your taxable income. HSAs allow you to set aside pre-tax dollars to cover future qualified medical expenses. Contributions to your HSA are tax-deductible, and the earnings grow tax-free. To make the most of this tax-advantaged account, consider maximizing your contributions to your HSA before the year ends.

For the 2023 tax year, you can contribute up to $3,650 if you have self-only health insurance coverage or $7,300 for family coverage. If you are 55 or older, you can also make an additional $1,000 catch-up contribution. By increasing your HSA contributions, you not only reduce your taxable income this year but also build a valuable fund for future healthcare expenses.

If your employer offers an HSA account they may make an annual contribution to the account. If you’re self-employed or don’t have access to an employer-sponsored HSA, you can set up your own through most financial institutions.

Even better, the money you contribute to your HSA never expires and can be used years into the future. Just keep in mind that if you’ve taken money out of your HSA this year to pay a medical expense, that withdrawal will be counted as income on this year’s income tax return.

Contribute to a 529 College Fund

If you have aspirations of sending your children or grandchildren to college, establishing or contributing to a 529 college savings plan is a strategic financial move. These plans offer a tax advantage, as contributions are tax-deductible on the state level. While contributions aren’t deductible on the federal level, any earnings in the account grow tax-free as long as they are used for qualified education expenses.

In 2023, you can contribute as much as you like to a 529 plan, but contributions above $16,000 per year ($32,000 for married couples filing jointly) may be subject to gift tax. Nevertheless, contributing now can help you leverage potential state tax deductions while investing in your loved ones' future education.

Not sure your child or grandchild will attend college? Funds in a 529 account can also be used for vocational and trade school tuition and fees or elementary and high school tuition costs.

Adjust Your Tax Withholdings

If you are an employee, form W-4 determines how much income tax is withheld from your paycheck each month. It's essential to review and, if necessary, update your withholding information, especially if you've experienced significant life changes such as marriage, divorce, the birth of a child, or changes in your income during the year.

Adjusting your tax withholdings can help you avoid overpaying taxes throughout the year, leaving you with more money in your pocket. On the other hand, failing to update your W-4 could result in underpaying your taxes, which means needing to make a tax payment instead of receiving a refund come tax season, as well as potential penalties. Consult with a tax professional or use the IRS's online withholding calculator to determine the correct withholding for your specific circumstances.

If you work as a 1099-independent contractor or own a business, you should meet with your tax professional to determine if you need to make any changes to the structure of your business, or establish retirement accounts, before the end of the year. If you need help knowing what to bring to your tax professional, or how to ask the right questions, give us a call.

Schedule Medical Procedures Strategically

Medical expenses can add up quickly, and the tax code provides a deduction for qualified medical expenses that exceed 7.5% of your adjusted gross income (AGI) for the 2023 tax year. To maximize your deduction, consider scheduling necessary medical procedures before the year ends.

While not every medical need can be planned ahead of time, if you know you’ll need or want an elective surgery, try to schedule it before December 31. Similarly, if you’ve met your out-of-pocket maximums for health or dental insurance, now is the time to get all members of your family in for any remaining check-ups or follow-up procedures.

If you don’t think they’ll meet the threshold for medical deductions this year but anticipate a large medical bill like a birth or surgery next year, consider delaying any unnecessary medical work until January to take advantage of the medical expenses deductions next year.

Be sure to keep detailed records of your medical expenses, including bills, receipts, and insurance statements, to support your deduction claims.

Looking Out for Your Family and Your Finances

Looking at your finances and seeing where you can save money on your taxes isn’t just about finishing the year off strong and getting organized for tax season. It's about making strategic moves that position you for success now and help protect and support your loved ones in the future.

To make sure your family is cared for no matter what the future holds, schedule a complimentary call by clicking the button below. We’d be happy to talk with you about how we guide our clients to create a plan that protects their assets and their family for years to come.

And don’t forget to tune in for part two of our year-end tax planning series, where we'll explore even more strategies to help you keep more of your money where it belongs – in your pocket.

The Scary Truth: Naming Godparents Does Not Create Legal Guardians

Wed, 01 Nov 2023 23:01:45 GMT

As a parent, your top priority is the well-being and future of your children. You plan for their education, health, and happiness, and often this planning includes the tradition of choosing godparents to guide and mentor your children if something happens to you.

While selecting godparents is a meaningful tradition in many cultures, it's important to understand that naming a godparent is not the same thing as naming a legal guardian for your children.

To put it bluntly, even if you have named godparents, if something happens to you, your children could end up in the care of strangers, child protective services or in the long-term care of someone you would never want raising your children.

In this blog, we’ll explain the roles of a godparent and legal guardian and how to ensure your kids are always cared for by the people you choose - no matter what.

Godparents

A godparent is traditionally someone you name to watch over your child and help them live according to your morals and values. Godparents are meant to be mentors and role models, guiding your child in matters of faith, morality, and character. The role of a godparent is deeply rooted in religious and cultural traditions, and they often participate in religious ceremonies such as baptisms or confirmations.

Whether your family is religious or not, godparents may also play a supportive role in your child's life by offering emotional support, advice, and friendship. They can be someone your child can turn to for guidance and a listening ear, but their responsibilities are largely informal and non-legal.

Legal Guardians

In contrast, naming a legal guardian for your child is a formal, legal process. A legal guardian is someone who has the legal authority to make decisions on behalf of your child, especially if you, as the parent, are unable to do so. This could occur due to your passing, incapacity, or any situation in which you cannot provide care or make important legal, financial, healthcare or education decisions for your child.

The responsibilities of a legal guardian encompass every area of your child's life that you would normally manage as a parent. This includes everything from feeding and clothing your child to deciding where they go to school, attending parent-teacher meetings and which extracurricular activities they participate in. Legal guardianship also includes the decisions about where your child lives and what medical treatment they should or should not receive.

A legal guardian may also help manage your child's financial assets and resources, ensuring their financial well-being. In some cases, if you’ve planned ahead, you may choose to have a different person act as a financial Trustee of the assets you leave for your child, and your chosen Trustee will work alongside the legal guardian to ensure your child is financially supported. In some cases, your guardian and Trustee may be the same person. This is a decision we can help you make during a Life & Legacy Planning Session, based on the specifics of your family dynamics.

Why Naming Godparents Isn’t Enough

While godparents may be deeply caring and involved in your child's life, they have no legal authority to make decisions for your child unless they are officially appointed as a legal guardian by the court. That means that until that happens, (if it happens) your child’s godparents are not legally able to make any decisions for your children, including their basic care needs, education, and medical care.

If you become incapacitated or die, and have not legally nominated a guardian (and, ideally, more than one, which is one of the 6 common mistakes families and even lawyers make when naming guardians – ask us how to get a copy of our 6 Common Mistakes report), there could be a complex and expensive custody dispute among your family members. Grandparents, aunts, and uncles may assume you would want your children to live under their care rather than the people you named as godparents. This is especially likely if the people you’ve named as godparents are not related to you by blood or marriage.

Without a legal guardian designation in writing and signed with the formalities of a Will, godparents may find themselves in an expensive court battle over custody rights, and they may not even be named as the legal guardians of your children at all. In fact, the court could name someone you would never want raising your kids as their legal guardian.

Life-long Legal Protection for Kids

While godparents hold a significant place in your child's life as mentors and role models, they don’t possess the legal authority to make critical decisions for your child or provide for your child's physical and financial well-being on their own.

Instead, consider combining the roles of godparents and legal guardians into one. If you’ve already chosen people you trust to serve as lifelong role models and spiritual guardians for your children as their godparents, why not give those people the legal authority to truly perform those duties if something happens to you?

If you aren’t sure who the best guardian or godparent is for your children, we can help. We’ll walk you through a heart-centered process for choosing guardians who genuinely care for your child's well-being and share your values. Plus, we’ll ensure they have the financial and legal tools needed to give your child the best life possible if you can’t be there.

But don’t stop there. The best way to keep your children safe and secure is to create a comprehensive Kids Protection Plan Toolkit that keeps your children in the care of the people you choose in any situation, out of the care of anyone you wouldn’t want, ensures your children can receive prompt medical care, and that the authorities know who to contact in an emergency so your children are never placed in protective custody - even for a minute.

To learn more and to get started today, schedule a complimentary call with our office.

Got Minor Kids? 3 Instances When Your Estate Plan Must Include A Kids Protection Toolkit

Wed, 25 Oct 2023 11:15:00 GMT

As a parent, you have probably thought about the importance of naming permanent legal guardians for your child in case something happens to you, and maybe you have already done it. If you haven’t yet, take this as the sign that now’s the time to do it, in case the unthinkable happens to you.

But in some cases, naming permanent legal guardians for your child may not be enough to guarantee your kids will always be cared for in the way you want by the people you want. And, there may even be a risk of your kids being taken into the care of strangers or someone you would never want.

Read on to find out if that’s the case for your family, and if it is, contact us ASAP to get your Kids Protection Toolkit in place.

You Leave Your Kids With Caregivers

Your kids are home with the babysitter. You don’t make it home, and the authorities are called. The authorities show up at your house, and what would they do?

Would they leave your children at home with the person taking care of them while they attempt to find your Will or legal guardian nomination? Would they even be able to find your legal documents? Would your legal documents name someone who would be immediately available to come to stay with your children, and would the authorities leave your children with those people without a court order?

If not, you need a Kids Protection Toolkit to fill in the gap.

Permanent guardian nominations only take effect upon your passing and are made official through the court system. This means that they do not give any legal authority to your chosen guardians in an emergency or if you become incapacitated.

Because of this, law enforcement could place your child into protective custody with social services in the event of your sudden absence or incapacity due to an illness or injury. To minimize the chances that would happen, we can name legal caregivers for the short-term, and give those named guardians the legal documentation they would need and instructions on what to do immediately if something happens to you.

Even if you leave your minor kids with a caregiver who is a grandparent, aunt, or other family member, we want to do everything we can to ensure that the authorities would have no question that someone has authority to care for your children .

In addition, we will give you the tools to ensure that anyone staying with your children while you aren’t there knows exactly what to do if something happens to you.

You Have Someone In Your Life You Would NEVER Want Raising Your Kids

While this may not apply to you, if it does, you absolutely, 100%, without question need to contact us for a Kids Protection Toolkit STAT. If you have anyone in your life you would never want raising your kids if you aren’t able to due to illness or injury, we can ensure that person is confidentially excluded from your plan using a Kids Protection Toolkit. And, we can structure it so that this confidential document is only brought forward if necessary to keep your children out of the care of the person you would never want to raise them.

You Have Unique Desires For Your Kids’ Education, Health Care or Financial Well-Being

You’ve probably given a lot of thought to how you want to educate your children, the kinds of healthcare decisions you make for them, and how you want them to experience reality from a financial perspective. If that’s the case, then you absolutely want to ensure that anyone raising your children, if you can’t, will know how you would have wanted these decisions to be made.

Otherwise, if you don’t take the time to leave instructions to the people who could raise your children, they will not know how you would make decisions if you cannot be there to communicate your hopes, dreams, wishes, and desires.

And, here’s the great thing about this … there’s a 99% chance that you are not going to become incapacitated or die while your children are minors (phew), and yet taking the time to write down your unique desires for their well-being and care is an illuminating process in and of itself that will make you a better parent right now.

We hear it again and again from our clients that when they create their Kids Protection Toolkit with us, they immediately feel a great deal of relief and a belief that they are being the best parents they can possibly be. They have more clarity about what’s really important to them, what they want to emphasize, who they want their children to develop relationships with, and where they can better focus their own time, energy, and attention.

If you aren’t sure where to start when creating these instructions, don’t worry. We will support you with the whole process when we create your Kids Protection Toolkit.

Comprehensive Protection for The Ones You Love Most

Nominating permanent legal guardians is an essential piece of your estate plan, but in reality, it often isn’t enough to ensure your child remains in the care of people you choose, know, love, and trust if something happens to you. If your children are ever left with a babysitter, or if there is anyone in your life you wouldn’t want raising your kids, or if you have unique high-value wishes for the way your children are raised when it comes to their education, health, or financial well-being, you need a full-fledged Kids Protection Toolkit.

If you’re ready to create a Kids Protection Toolkit for your child, the first step is to schedule a Discovery call to learn more about our Life & Legacy Planning. During the planning, I’ll look at everything you own and everyone you love to get to know your family and your wishes and goals. Then I’ll explain how the law would affect your family if something happened to you today, and together, we’ll design a plan that will protect your assets and your loved ones, no matter what.

To get started, click here schedule a complimentary 15-minute call. We can’t wait to protect your children and your entire family through comprehensive planning.

Mastering Time Management: 4 Effective Strategies for Busy Entrepreneurs - Part 1

Tue, 24 Oct 2023 17:35:36 GMT

Time is your most valuable resource, and how you manage it can significantly impact the success of your business and your personal well-being. But finding effective ways to organize your schedule and manage your team can feel like a time-consuming task in itself.

If you feel overwhelmed by your calendar or like there is no room in your day to take care of your personal needs, it’s time to revisit your time management methods. To help you reclaim control over your schedule, boost productivity, and reduce stress, consider these life-changing time management strategies.

1 | Leverage The Art of Time-Blocking

If you enjoy making lists or scheduling meetings to organize your day, time-blocking takes these strategies to the next level. Time blocking means allocating specific periods of your day to dedicated tasks, projects, or activities. The process is simple yet incredibly effective, providing structure and focus to your workday.

And, if you don’t enjoy making lists or scheduling meetings to organize your day, you may have an opportunity to change your relationship with your calendar (and time) to make the very most of the 24 hours you do have each day. The skill of time-blocking can help you bend time, expanding what you do have and using your time intentionally to create the life you want.

Think about time-blocking as taking everything you would normally put into a task list, and scheduling it on your calendar in blocks of time. Then, you throw away the task list and only use your calendar to ensure you are getting everything done that needs to get done.

One of the benefits of working with your time this way is that you can quickly see if you are overestimating what’s actually possible in the time you have to complete tasks, if you need to delegate tasks, or if you need to build in more time to accomplish your goals.

The main difference between time-blocking and simply scheduling tasks on your calendar is that time-blocking is highly intentional and proactive, instead of scheduling items on your calendar reactively as they come up each day. When done well, your time-blocked schedule should include scheduled time for focused work, catching up on emails, and even personal needs like eating lunch, getting a haircut, or watching your son’s soccer game.

To get the most out of time-blocking, set aside one hour at the very beginning of your week or the Friday before to identify your most important tasks and goals for the week ahead. What are the critical items that demand your attention? By listing your top priorities, you can ensure they receive the dedicated time they deserve.

Once you've pinpointed your priorities, assign a block of time to a specific task or project, keeping in mind the level of energy and focus required. For instance, you might reserve the morning hours for high-priority projects that demand your peak concentration and save more repetitive tasks like paying bills or reviewing emails for the afternoon.

Stick to Your Schedule - And Do This If You Can’t

The key to successful time-blocking is using your calendar! This means looking at your calendar each day, first thing in the morning, and before you close your computer for the night. Do the best you can to follow the schedule you’ve established for yourself. Once you've allocated a block for a particular task, honor it as you would any other appointment. Minimize distractions, turn off non-essential notifications, and commit fully to the task at hand.

And, if you can’t stick to the schedule because something comes up - as it does - no worries, simply go to your calendar and move the task that you blocked into the next available block. Don’t give up on the task, don’t beat yourself up, don’t consider yourself a time-blocking failure - just move the task to the next open block. And, if you don’t complete a task within the assigned block, just create a new block with the estimated time to complete the rest of the task. Simple.

Over time, you’ll get better at estimating what you can do and can’t do in what period of time. You’ll start to include breaks between activities. You’ll begin to recognize that things often take longer than you expect, or that you can get way more done when you are focused or know exactly what to do than you ever dreamed possible.

To leave space for sudden business needs, appointments, or emergencies, try to block off at least one hour at the end of the day that stays vacant. If something urgent does come up during your day, you can use this free block to handle it, or use it to shift your schedule if the urgent matter requires your attention earlier in the day.

If no urgent or overdue tasks require your attention during the free hour, you can use it to get ahead on your week, leave the office early, or check in with your team.

At the end of each day or week, review your time-blocking approach. Assess what worked well and what didn't. Adjust your schedule as necessary to optimize your productivity and ensure your highest-priority tasks consistently receive attention.

2 | Embrace Technology for Task Management

The second time-management strategy to master is the use of online project management systems, beyond sticky notes and Excel sheets. In the digital age, technology offers an array of tools to streamline task management and time optimization. As a business owner, leveraging these resources can prove invaluable in boosting efficiency and freeing up your mental space.

Even if you prefer a written planner or rely on an assistant to manage your calendar, these tools can help keep all members of your team on the same page. There are numerous online task management applications available, such as Trello, Asana, and Todoist that allow you to create, organize, and prioritize tasks with ease, as well as assign tasks to team members and monitor their progress.

These task management tools often integrate with digital calendars, providing a holistic view of your schedule across platforms. By syncing your task management app with your digital calendar you can ensure that your to-do list aligns seamlessly with your time-blocked schedule.

This integration also enables you to allocate time blocks directly to specific tasks and receive reminders for upcoming deadlines. It can also notify you when a team member needs you to review their work on a project or provide input.

If it feels overwhelming to get a digital project management system setup, don’t handle it yourself. These days, there are amazing experts who can set up your project management system for you and make it a whiz for you to run. Or, if you have a techy team member already on your team, task them with getting it done, and checking in with you periodically to share their progress where you can ask questions, give feedback, and make sure the setup will work for you.

Personalized Time Management Advice

Effective time management isn't about working more–it's about working smarter to achieve your business objectives while maintaining a healthy work-life balance. By embracing time-blocking and harnessing technology to synchronize your deadlines with your calendar and your team, you can take back control of your schedule, increase productivity, and reduce the stress that a reactive workday creates.

Bills and Services to Cancel—and Keep—When a Loved One Dies

Thu, 19 Oct 2023 01:07:44 GMT

A loved one’s passing is challenging on many different levels. In addition to the emotional difficulty of processing someone’s death, there are also the many tasks that must be dealt with, such as going through their various accounts and taking the necessary steps to cancel them or transfer ownership.

Most people subscribe to multiple digital subscription services in addition to utilities, insurance, memberships, medical prescriptions, and other recurring payment programs. Settling these accounts helps avoid unnecessary charges and protect against identity theft and fraud. If the duty to handle outstanding accounts falls to you, you will first want to identify which accounts your loved one held and then figure out what to do with them.

Deciding Whether to Cancel or Keep an Account

The first step is to figure out what accounts the deceased had by looking through their mail, email, or phone notifications. You may get lucky, as the deceased may have compiled a list as part of their estate plan. Once you have identified what accounts were in the deceased’s name, you can move on to the next step of deciding whether to cancel or keep them.

Subscription Services

Subscription services are low-hanging fruit. Unless the service has a shared family plan, it can most likely be canceled.

The typical American has five subscription services, and one in five has eight or more subscription services. ^[1] In addition to digital media services like Netflix, Hulu, Disney+, YouTube TV, and Apple TV, do not forget delivery services like Amazon Prime, Walmart+, and subscription box services.

Also keep in mind that Amazon Prime and Walmart+ members may have recurring monthly deliveries for certain items. And then there are digital subscriptions to newspapers and magazines, which may be linked to a Kindle account. Kindle Unlimited, which has 150 million subscribers, is another account that may need to be canceled.

Patronage Accounts

Independent content creators are a large contingent of the digital media ecosystem, and a growing number of services provide opportunities for “digital patronage,” or delivering direct, recurring support to online content creators.

Platforms that enable digital patronage include Patreon, Twitch, Substack, YouTube, and Facebook. Outside of these platforms, creators may enable patronage, such as subscriber-only content, through their own website.

You can check bank or credit card statements to find out if a loved one has any subscriptions to their favorite content creators. Like subscription services, patronage accounts are prime cancellation targets.

Utilities

Utilities may need to be temporarily kept in the deceased’s name, transferred to another account holder, or canceled, depending on the circumstances.

● Keeping utilities in the name of the deceased should be okay on a short-term basis while the estate is resolved, but you might want to check with the utility company.

● If utilities were in the deceased’s name and they lived with somebody else, the accounts should be transferred to that individual. The same goes for a family member who plans to take over occupancy or ownership. For example, the house may have been gifted to a beneficiary in the will or established as family property with joint sibling ownership.

● Utility accounts can be canceled following estate administration, but consider the timing if the house is being put on the market. Typically, in the event of a sale, utilities are kept on until after closing.

● Although not technically a utility, a home security system deserves the same consideration as utilities. Security is particularly important for a home that is left vacant for extended periods while settling the estate.

● Do not deactivate a loved one’s cell phone service until you have retrieved all of the information you need from the phone. Again, this can include notifications about bills and other services that need to be canceled or transferred.

Miscellaneous Accounts

Many accounts fit into the main buckets listed above, but it may take a thorough sleuthing effort to uncover every account linked to a loved one’s name. Here are some more examples of accounts you may need to resolve, either by canceling or, where possible, transferring account ownership:

● Memberships to gyms, sports clubs, cultural institutions, unions, homeowners associations, Costco, and other fee-based groups or services

● Physical newspapers, newsletters, and magazines

● Social media and dating sites

● Financial advisor, personal trainer, accountant, life coach, etc.

● Pet-related dues and subscriptions

● Meal delivery services

● Music subscriptions (Pandora, Spotify, Apple Music, Amazon Music, Sirius XM, etc.)

Probate, Estate Administration, and Executor Legal Assistance

As you deal with the emotional challenges of a death in the family, you may be simultaneously navigating legal issues related to losing someone close to you. Being named an estate administrator or executor comes with a lot of responsibility. Our estate planning attorneys offer services tailored to executors that help them do right by their loved one—and the law. For answers to your estate administration questions, reach out to our team.

[1] John Glenday, US Subscription Fatigue Is Real, with Consumers Managing an Average of 5 Accounts, The Drum (Nov. 16, 2022), https://www.thedrum.com/news/2022/11/16/us-subscription-fatigue-real-with-consumers-managing-average-5-accounts.

From 'I Do' to 'What If': Estate Planning Must-Do's for Newlyweds - Part 2

Mon, 16 Oct 2023 19:04:12 GMT

Getting married and starting a new chapter in your life is an exciting time. It’s also a time that requires a lot of housekeeping such as updating your address if your marriage includes a move, changing your tax filing status with your employer, and adding your new spouse to your bank and credit card accounts.

But did you know that creating (or updating) your estate plan should also be on your post-wedding to-do list?

Last week we started to explore the key estate planning components every newlywed couple needs to protect their rights, wishes, and plans for their assets now and in the future. This week, we’re continuing the conversation with three more estate planning must-do’s for newlyweds. If you missed last week’s blog, be sure to click this link to catch up.

04 | A Living Trust

Are you surprised to see a Trust on our list before a Will? Here’s why a Trust is next on your to-do list. If you are newly married, there’s a strong likelihood that you are relatively young in your life and your career, which means there will be many changes in your assets, family, and wishes as the years go by.

Or, you might be re-marrying or getting married later in life and already have a well-established home, financial portfolio, and family that you are now combining with your partner’s life.

In either situation, you’re in a position of blending your life as a single person with the life and wishes of someone else, and the best way to make sure your wishes for your assets and your new family are honored during your lifetime and after your death is to legally document them through a Trust.

With a Will, assets must first pass through a court process known as probate before they can be transferred to your spouse or any other beneficiary. But once probate is completed, your loved ones can do whatever they want with the assets they received from you through your Will. The purpose and power of your Will ends when probate ends.

The court probate process required for Wills can take months or even years to complete, and can often lead to ugly conflicts between your spouse and other family members. Plus, a Will only governs the distribution of assets upon your death that are not already covered under your Trust or by your beneficiary designations.

With a Trust, no court involvement is needed, and you can set parameters for how you want your assets distributed over a predetermined amount of time. For example, if you have children or plan to, you can ensure the assets are safeguarded in the Trust until your children reach a certain age. If you have children from a prior relationship, you can also make sure that your new spouse is financially supported by your assets during their lifetime but that your remaining assets will be returned to your children after your new spouse’s death instead of going to your spouse’s side of the family.

Having a Trust hold your children’s inheritance can also help eliminate conflict between step-siblings and between your children and your spouse. Even if your children are adults, leaving their inheritance in a Trust can help avoid family conflict and provide them with a lifetime of asset protection from creditors and lawsuits.

Finally, using a Trust as the main vehicle to distribute your assets during your incapacity and after your death allows you to design a custom plan for what happens to your assets far into the future, ensuring that the goals you have for your loved ones are nourished and that your assets are carefully managed and protected even after you’re gone. You can do this by creating contingencies and incentives in your Trust that encourage your heirs to behave in certain ways. For example, for your sibling to receive their inheritance you could require that they seek drug counseling first, or that your children pursue a course of study before receiving a distribution of income from the Trust.

05 | A Will

A Will allows you to designate who should receive any assets of yours that aren’t already included in your Trust or directed by beneficiary designations. Ideally, your Trust will include all of your assets. But, if you forget to add an asset to your Trust, a Will ensures that the forgotten asset is “poured over” into your Trust and included under its terms for how you want your assets to be distributed and managed.

If you don’t have a Trust, your Will designates who will receive your assets through the court probate process. Your Will may also direct any charitable donations you want to make and can be used to create a Trust upon your death if the circumstances call for it- such as if one of your heirs is disabled at the time of your death.

Even if you don’t think you need a Will because you don't have many assets or have other estate planning pieces in place, having a Will as a backup or “pour-over” tool is an essential part of your estate plan. Plus, depending on state law and whether or not you have children, your assets may not get divided according to your wishes if you don’t have a Will, so it’s always a good idea to create one (or update your old one) when you get married.

06 | Legal Guardians for Your Minor Children

Finally, if either you or your spouse have minor children from a prior relationship, or if you are planning to have kids of your own soon, it is crucial that you select and legally document guardians for your children. Guardians are people legally named to care for your children in the event that you or your spouse die or become incapacitated.

To make sure your children are never left in the care of strangers for even a minute, it’s crucial to name both long-term and short-term legal guardians for your kids. That way, someone you trust will always have the authority to be with your children during a short-term emergency or a long-term situation.

Do not assume that just because you have named godparents or have grandparents living nearby that they will automatically have the authority to care for your children if you can’t. The only way to ensure that your children are cared for by the people you would want is to name guardians in a legal document. Otherwise, you risk creating needless conflict between family members and a potentially long, expensive court process for your loved ones.

Planning for a Lifetime of Happiness

If you’re newly married or are planning to be married soon, I wish you true happiness in your marriage and your new life ahead, and I truly want to help you protect the dream and future you are building with your new spouse. With the excitement of your wedding coming to an end, now is the best time to create an estate plan for your new family, and it may even be the most crucial time to create a plan for them.

We often think that incapacity and death simply don’t happen to newly married couples, but unfortunately, no one can predict the future. If an illness or tragedy does strike you or your new spouse, the ramifications of not having an estate plan in place can be even worse than for a couple who has been married for a long time.

No matter the stage of your relationship or marriage, I can help make sure your spouse and family are protected and cared for now and for years to come. Through our Life & Legacy Planning process, I’ll guide you from the heart on the estate planning questions and decisions that are essential for your family’s well-being and that feel comfortable to you.

To learn more about how we can help protect your family’s future, schedule a free 15-minute discovery call today .

Here’s to a very happy ever after.

Understanding Business Interruption Insurance

Mon, 16 Oct 2023 17:19:27 GMT

As a business owner, you may be familiar with the need for liability insurance to protect yourself and your business from lawsuits caused by injuries or accidents. But how do you protect your business’s income from outside forces that affect your productivity, supply, and revenue?

Picture this: You've built your dream business from the ground up. It's thriving, and you're enjoying the fruits of your labor. But then, disaster strikes. Whether it's a natural calamity like a hurricane, a fire, or a global pandemic that forces you to shut your doors temporarily, your income takes a nosedive. That's where Business Interruption Insurance comes in.

What is Business Interruption Insurance?

Business Interruption Insurance, also known as Business Income Insurance, is like a safety net for you and your business. It's an insurance policy that provides financial support when your business operations are disrupted due to unforeseen circumstances, such as natural disasters, accidents, or other covered perils.

In many ways, Business Interruption Insurance is similar to personal Long-Term Disability Insurance but protects the income generated through your entire business rather than your personal income alone. Essentially, it helps replace the income and revenue your business would lose during the downtime caused by outside events.

How Does It Work?

Business Interruption Insurance begins with a “trigger event,” which is an unexpected incident such as a fire damaging your store or a government-mandated shutdown during a pandemic that interrupts your business operations. This event sets the insurance process in motion and is the beginning date of your insurance claim.

Similar to personal disability insurance, there is a waiting period between the trigger event and when your business can collect benefits from the policy. This waiting period can range from a couple of days to a couple of weeks, so it's important to be financially prepared to handle immediate expenses during this time. Thankfully, most policies only require a waiting period of 48-72 hours before benefits will be paid.

Once the waiting period is over, the “business interruption period” begins. This is a defined timeframe within which the policy covers your lost revenue and usually extends until you can reasonably resume your business operations.

Beyond income loss, Business Interruption Insurance may also cover extra expenses. These are costs incurred to minimize the disruption to your business, such as renting temporary office space or investing in advertising to attract customers back. Every policy comes with a coverage limit, so it’s crucial to fully understand these limits when purchasing your policy as it will affect the level of protection you have.

What Does It Cover?

Business Interruption Insurance covers a range of scenarios. Its primary coverage reimburses you for lost income you would have earned if your business were operating normally. The insurance can also cover ongoing operating expenses like rent, utilities, and employee salaries during the downtime.

If you need to temporarily relocate your business due to a fire, flood, or other peril, the policy can cover the costs of setting up shop elsewhere. If your business owes loan payments, it can help cover those payments. Business Interruption Insurance may even cover the taxes you owe during the interruption period.

Now, just like any insurance, Business Interruption Insurance has its limits. It usually doesn't cover business losses due to fire or building problems that result from your own poor maintenance of the property. The coverage also doesn’t cover power outages unless they're directly caused by a covered event, like a severe storm,

After the COVID-19 pandemic, many insurers added pandemic exclusions. However, it's worth checking with your provider as some policies may include pandemic coverage as an add-on.

Protection and More for Your Business

In the world of business, anything can happen. That's why having a safety net like Business Interruption Insurance is a smart move. It ensures that you and your business won’t lose the income and progress you’ve worked so hard to achieve if the unforeseeable happens. Just remember, every business is unique, so it's essential to customize your coverage to suit your specific needs.

From 'I Do' to 'What If': Estate Planning Must-Do's for Newlyweds - Part 1

Fri, 06 Oct 2023 17:06:28 GMT

Wedding season is winding down, and if you are a newlywed or are planning to tie the knot soon, it’s time to make your first legal move as a married couple – creating an estate plan. With all the joy and happiness a new marriage brings, planning for your potential incapacity and future death may feel out of place, but creating your estate plan as part of your post-nuptial to-do list is the greatest gift you can give your new spouse.

A lot changes once your marriage is official, but how you and your spouse want your finances to be managed or how you would want medical decisions to be made for each other are not automatically documented when you say “I do.”

If you become incapacitated for any reason before your estate plan is complete, your spouse would not have the legal authority to make medical decisions for you even though you’re married. Your loved one would also have no access to your bank accounts, and in the event of your death, could even be put into a position of losing the home and possessions that you owned together.

Instead, your choices for yourself, each other, and your life together need to be properly documented to ensure your wishes are respected and honored no matter what the future holds.

Here are 6 essential estate planning tools you need to put in place right now.

01 | Updated Beneficiary Designations

One of the easiest estate planning tasks that newlyweds often overlook is updating their beneficiary designations. Some of your most valuable assets, such as life insurance policies, 401(k)s, and IRAs, do not transfer via a will or trust. Instead, they have beneficiary designations that allow you to name the person (or persons) you’d like to inherit the asset upon your death.

While every couple should consider creating and using a Trust to transfer retirement (only with the guidance of a lawyer, as this can be complex) or life insurance distributions, you shouldn’t wait until your Trust is created or your estate plan is complete to update your beneficiary designations. Until your estate plan is finished, if you would want your spouse to receive your retirement account benefits or life insurance at your death, you need to proactively name your spouse as your primary beneficiary, and then name at least one contingent, or alternate, beneficiary in case your spouse dies with or before you.

If you have minor children at home, remember to never name a minor child as a beneficiary of your life insurance or retirement accounts, even as a contingent beneficiary. If a minor is listed as the beneficiary, the assets would be distributed to a court-appointed custodian, who will be in charge of managing the funds until the child reaches the age of eighteen, at which point the funds would be distributed to them outright, to do with what they want. Instead, you can set up a Trust and name the Trust to receive your life insurance or retirement account benefits.

If you have children or you plan to have children in the future, you should set up a Trust to receive those assets instead so they can be properly managed for your child’s well-being while keeping the funds safe from any future overspending, debt, or legal trouble your child may have. Creating a Trust to hold and distribute assets to your children is even more important if your marriage creates a blended family, as it will ensure your children inherit from you in the way you want and avoid conflict between step-siblings.

If you aren’t sure how to update your beneficiary designations in the best way, contact my office today for a Design and Planning Session. During the Session, I’ll look at exactly what you own and guide you on exactly how your beneficiary designations should be filled out now and after your other estate planning tools like a Will or Trust are created.

02 | A Durable Financial Power of Attorney

Estate planning is not just about planning for what happens when you die. It’s equally about planning for your life and the unexpected events life throws your way like a serious illness or accident that may leave you incapacitated.

If you become incapacitated and have not added your spouse as an owner on your bank accounts or legally granted them permission to manage your financial and legal interests, they may have to petition the court to be appointed as your guardian or conservator to handle these affairs for you. This is surprising to many newlyweds and long-time married couples who assume their spouse has automatic access to all of their assets at any time.

Sadly, this isn’t the case, and without giving written permission to your spouse through a Durable Financial Power of Attorney, that authority could be given to someone else by the court, even a stranger or a family member you would never want to have control over your financial life.

A Durable Financial Power of Attorney would grant your spouse the immediate authority to manage your financial, legal, and business affairs in the event of your incapacity, and give them a broad range of powers to handle things like paying your bills and taxes, collecting government benefits for your care, selling your home or car, and managing your banking and investing.

In Kansas and Missouri, the law does not assume your spouse has any ownership of property in your name alone, which means your spouse could be forced to move out of your shared home or give up your shared property with little notice and little legal recourse.

03 | A Power of Attorney for Health Care and Living Will

Where a Durable Financial Power of Attorney gives your spouse the authority to manage your financial and legal matters, a Power of Attorney for Health Care lets them make medical decisions for you if you can’t communicate them for yourself.

For example, a Power of Attorney for Health Care would let your spouse make decisions about your medical treatment if you are in a serious car accident or hospitalized with a debilitating illness. If you don’t name your spouse as your Power of Attorney for Health Care and you do become incapacitated, your spouse would have to petition the court to become your legal guardian before they can make any major medical decisions on your behalf.

Even though your spouse is generally the court’s first choice for your legal guardian, relatives may also petition the court to be appointed as your guardian, which can create severe conflict and financial strain in your family. Creating a Power of Attorney for Health Care that names your spouse as your decision-maker far in advance will spare your spouse the time, money, and stress involved with a court guardianship process.

Within or attached to your Power of Attorney for Health Care should be your Living Will. A Living Will explains to medical providers and to your decision-maker how you would want your medical care handled, particularly at the end of life.

In your Living Will, you can explain your wishes for life support, whether you would want hydration and nutrition supplied intravenously, and even what kind of food you want and who can visit you in the hospital. It is always a relief to your spouse to have instructions and wishes written out by you in advance that they can lean on, rather than having the added stress and trauma of trying to guess what your wishes would be in these situations.

Through Sickness and Health, We Can Help

Between moving in together, establishing a new routine, and combining your finances, estate planning can seem like a low priority for newlyweds. But in reality, estate planning shortly after getting married is one of the smartest decisions you can make for your marriage. Creating your plan shortly after your wedding is also the most convenient time to plan since you will inevitably be going to the bank and contacting your financial institutions to update your new marital status.

To make sure your new spouse has immediate access to your assets and that you can always care for them in the way they would want, give me a call. It would be my honor to help you and your spouse plan for your new life and your future through my unique, heart-centered process.

If talking about finances and death shortly after your wedding feels heavy, don’t worry. I’ll guide the discussion in a way that feels casual, natural, and helps facilitate open communication between you and your new spouse.

Don’t forget to check back next week for part two of this series!

Help Your Parents Avoid These New Financial Scams - Part 2

Wed, 27 Sep 2023 11:45:00 GMT

In part one of this series, we explored two popular scams that are targeting older adults this year: the grandparent scam, and cryptocurrency pickpocketing. In this week’s blog, I’m sharing two more scams that you and your parents need to be aware of, plus tips for staying protected.

Let’s dive in.

03 | PERSONALIZED PHISHING EMAILS

Imagine opening your inbox to an urgent email from a seemingly legitimate source – perhaps your bank, a popular online retailer, or even a social media platform. The message claims there has been suspicious activity on your account and urges you to click a link or provide sensitive information to verify your identity. This is the classic phishing email – a crafty attempt to deceive you into revealing your personal data.

Phishing has been around since email became mainstream, but what has changed is the depth to which scammers feign legitimacy. Even if you or your parents are familiar with phishing email schemes, new approaches and advances in technology are making it harder than ever to detect a phishing email.

Same Scammers, New Tricks

Phishers often pose as trusted entities such as banks, governments, or department stores. But in recent years, phishers have been sending their victims more personalized emails to trick them into thinking the message is from someone the victim personally knows or is personally connected with. The email will address the victim by name and may appear to come from a friend, co-worker, or supervisor. It may even contain a legitimate-looking email domain, signature, or logo.

The email will usually claim that there is a time-sensitive matter that needs to be addressed, such as a gift that needs to be purchased for a co-worker’s birthday or important client, and asks the victim to purchase the gift via online gift cards, PayPal, or crypto.

For example, you may see an email that reads:

“Hi Jim, this is Mr. Boss. I’m going to be in meetings all day today but I need to send a gift to our new client right away. Please purchase a $200 gift card on Amazon and send it to this email address. I will then forward it to our client.”

Some phishers will pose as banks, lending agencies, or debt relief programs and claim that you have been approved for special credit or financial assistance. In the aftermath of the COVID-19 pandemic, student loan pause, and hurricane season, you may have seen an email like this:

“Hi Aaron, it’s Gav with Hardship Relief Program. We tried reaching you at your home and did not hear back… I’m not sure if you’ve spoken to an assigned agent yet, but I do see that you’re pre-approved for our Hardship Program. So, what I’m going to do is keep this in a pending status. Please give me a call between the hours of 8 AM and 10 AM EST to go over the details. My number is 555-886-3424.”

Identifying Scams: It’s All in The Details

Before you respond to any kind of email requesting a phone call, consider whether the sender’s request seems legitimate. Did you actually open an account or fill out an application? Is it normal for your boss to email you about important requests?

Always scrutinize the sender's email address, even if it looks legitimate, by hovering your cursor over the email address to reveal its true origin. Avoid clicking on suspicious links, and never share personal information via email, no matter how professional the sender’s email appears.

Check the email and “from address” for typos, and verify the information provided by the sender, such as the company name and phone number, by searching for it online. When in doubt, contact the company directly through official channels to confirm the authenticity of the message.

04 | THE ONLINE OVERPAYMENT SCAM

In the world of online buying and selling sites like Etsy, Facebook Marketplace, Poshmark, and Craigslist, scammers are increasing their attacks and their success by preying on the good conscience of other people.

In the overpayment scam, the fraudster contacts the victim pretending to be interested in purchasing an item the victim has listed for sale online. The scammer offers to purchase your item, usually at an inflated price and appears to make a payment that's higher than the agreed-upon amount.

The scammer then requests that you refund the excess amount they "accidentally" sent, and will usually act panicked, upset, and harried. The scammer may even threaten to report the victim to the police for “stealing” the scammer’s money.

But here’s where the twist comes in: the overpayment sent by the scammer was actually fake – a fraudulent check or a forged payment confirmation email that made it seem like you received funds when in fact the scammer didn’t send anything at all. When you refund the overpaid amount, you're essentially giving away your legitimate money, and by the time the scam is realized, the scammer has disappeared into the digital abyss.

To protect yourself and your parents from this sinister scam:

● Always require online buyers to pay through traceable means, such as PayPal, Cash App, or Venmo.

● Avoid sending and receiving money from strangers through non-refundable money transfer services like Zelle.

● Never accept more money than the purchase price.

● If the buyer wants a refund, verify that you actually received the funds by logging into your payment servicer account and checking your balance there. Do not rely on a confirmation email which can be easily faked, especially if your payment account does not show any payment received.

Preserving Your Assets and Protecting Your Loved Ones

Staying on top of constantly changing financial scams can feel overwhelming, but with the right knowledge and tools, you can help keep yourself and your aging parents safe from the financial and emotional harm scams cause.

We're available to help guide a discussion with you and your parents about your financial well-being as part of your estate plan, including how to catalog their assets and how to make it as easy as possible for you to help each other in the case of an emergency or scam attempt.

If you want to know more about how working with us can help you and your family, schedule a free 15-minute discovery call today. It would be my honor to look after your family’s plans now and for years to come.

Three Important Concerns Self-Employed Individuals Should Address

Sun, 24 Sep 2023 14:34:52 GMT

Being self-employed is no easy task. You are the owner, and in some cases, the only employee. While you may have more freedom than the average worker, a lot of responsibilities lie on your shoulders. Working together, we can craft a comprehensive estate plan that will help you address three important concerns you may have.

Protecting Your Financial Future

You are your own boss, and you have your own business. That means it is your responsibility to obtain the important things we associate with employment, such as retirement accounts and insurance. To properly plan for your financial future and the future of your business and loved ones, it is important to have a comprehensive plan and an experienced advisor team.

The right advisor team can educate you about the available retirement plan options and the best investment strategies based on your unique situation. You can also discuss the different types of insurance you may need to protect the important aspects of your life, such as disability, life, and business insurance. An experienced advisor team can help you determine how much insurance you need to ensure that you and your loved ones are protected no matter what, as well as how best to protect what you have worked so hard for.

Protecting Your Business Endeavors

As a self-employed individual, your business activities are likely to support most if not all of your financial needs. It is important that these activities are protected to ensure that you can support yourself and your loved ones no matter the circumstances. By working with an experienced planning team, we can address some important considerations that may be keeping you up at night:

● Are you the only person making money for the business, or are there employees?

● What will happen to the business if you become incapacitated? Can the business continue without you, or does all work halt?

● What will happen if or when you decide to retire? Will you need a different source of income, or will you have some aspect of your business that you can sell?

● What will happen to the business and your loved ones when you die? What will be left to support your loved ones?

Limiting Liability

Everything in life comes with a certain amount of risk—being self-employed is no different. From a business standpoint, a self-employed person may be personally susceptible to the business’s creditors or other lawsuits involving the business’s activities. As an individual, you may also be concerned about personal creditor claims, potential divorces, and other lawsuits. Although we cannot eliminate all risks, we can take steps to help minimize them.

With respect to the business, it is important for you to work with an experienced attorney and tax preparer to ensure that the business is formed or organized in a way that limits liability for some of the potential risks. Personally, you can take the first steps toward protecting yourself and your business by adequately insuring both. If you are concerned about protecting what you leave behind to your loved ones, there are special types of trusts that can be used to help ensure that your loved ones can benefit from their inheritance while minimizing the likelihood that it will be taken and used for a different purpose.

We understand that you have a lot on your plate. Let us take part of the burden off of your shoulders by crafting a plan that is unique to your personal circumstances. Give us a call so we can schedule your first meeting and get you on the path to a protected future for you, your business endeavors, and your loved ones.

Help Your Parents Avoid These New Financial Scams - Part 1

Sun, 24 Sep 2023 14:23:11 GMT

Fraudsters and scam artists are nothing new, but changing tools and technology are making it easier than ever for scammers to target their victims, especially seniors. To protect your aging parents (or yourself) from these con artists, it's crucial to equip yourself with the knowledge of how these scams work and what your loved ones need to know to keep their assets and emotions safe.

In this two-part series, we’ll explore four of the most recent and insidious financial scams that have surfaced, shedding light on their tactics and providing you with practical steps to shield your parents from potential harm.

01 | THE GRANDPARENT SCAM

One of the toughest parts about being the victim of a scam is the emotional and mental stress it usually causes. Scammers intentionally use urgency, alarm, or guilt to trick victims into making hurried decisions to send money to someone who needs “help.”

In the new “Grandparent Scam,” fraudsters will call or text senior adults pretending to be their grandchild. The scammer will claim that they’re in trouble and that they need the grandparent to send them money right away to bail them out of jail, buy a ticket home from a dangerous location, or pay for damages caused by a car accident.

In these scenarios, the scammer will usually ask the grandparent, “Grandma, do you know who this is?” to trick the grandparent to reveal the name of their grandchild so the scammer can use that name for the rest of the phone call. The scammer will then ask the grandparent to wire money to “help” the grandchild and ask that the grandparent don’t tell the grandchild’s parents for fear of them getting upset.

Some scammers are even using AI to disguise their voices while on the phone with the grandparent to sound more convincing. This scam preys on the love and concern our parents have for their children and grandchildren, and can easily cause young or tech-savvy parents to fall victim as well.

To protect your parents from being victimized by this scam, talk to them about the importance of never disclosing personal or financial information or the names of their loved ones in a text, phone call, or email. Instead, instruct them to ask who the caller is and to wait for the sender or caller to respond. If in doubt, the senior should ask the sender personal questions that only their real grandchild would know, but a scammer wouldn’t. Most importantly, encourage your parents to contact you before wiring or transferring money to anyone for any purpose, no matter what.

One strategy we particularly love is to have a family code word or phrase. For example, your code phrase may be “Cosmo is a spotted dog” and that code phrase would be known by everyone in the family so that if anyone is contacted in an emergency situation, the person could ask what’s our family code phrase, and the person calling, texting or emailing either knows it or doesn’t. And, if they don’t, it’s a no-go for help.

02 | PICK-POCKETING YOUR CRYPTO WALLET

The world of cryptocurrency brings new investment opportunities for those willing to try it out, but with this new financial arena comes new risks and safety measures.

In order to store cryptocurrency, you will need a digital wallet, as that’s the safest way to hold your cryptocurrency. Your cryptocurrency wallet doesn’t actually “store” money like a traditional wallet; rather, it stores passcodes, known as keys, that allow you to send and receive digital currency to and from the wallet.

Wallets come in two forms: hot and cold. A “hot” wallet stores your cryptocurrency in a location that’s connected to the internet—exchange-based wallets, desktop wallets, and mobile wallets. Because they’re connected to the internet, hot wallets are the most convenient, but also the most vulnerable to hacking.

A “cold” wallet, conversely, stores your cryptocurrency in a location that’s completely offline. Ironically, the most secure type of wallet for storing digital currency is a cold “paper” wallet. Paper wallets involve printing out your keys and storing them in a secure location. While paper wallets are the most secure option, if you lose the codes, it’s the same as losing paper currency—meaning there is no way to recover your investment.

But no matter what kind of wallet your loved one keeps their crypto in, anyone with the “key” to that wallet can access and steal the funds - no hacking required.

How the Scam Works

To gain access to your wallet, scammers will lure you to give them your wallet’s key by pretending to be representatives of a cryptocurrency company like Bitcoin or Coinbase, or by portraying themselves as a crypto broker. Once the scammer has your keys, your cryptocurrency is completely vulnerable, even if it’s kept in a “cold” offline wallet.

With the keys, the scammer can move your crypto out of your wallet and disappear with it forever, and since the cryptocurrency market is not attached to the banking system, there is no way to recover cryptocurrency once it’s stolen.

To help protect your parents from these scams, talk to them about the importance of never, ever sharing their wallet keys with anyone besides you and any other trusted family members. This is essential to keep your parents’ crypto investments safe.

In all cases, whether your loved ones have crypto in a hot wallet, paper wallet, or directly in a crypto exchange, make sure they’ve given you the details of where their crypto is stored and how to access it in the event they’re incapacitated or die. Otherwise, it’s completely lost.

If you don’t know how to find and access your parent’s cryptocurrency in an emergency or don’t know how best to plan for your own crypto, please talk with us so we can guide you on how to include your crypto information in your estate plan.

Helping You Protect the Ones You Love

Your parents' financial security is a priority that demands proactive measures, especially in the face of emerging scams that exploit their vulnerability. By remaining vigilant and arming yourself with knowledge of these scams, you can effectively shield your family from falling prey to these fraudsters.

But remember, communication is key. Talk openly with your parents about these potential risks, and encourage them to reach out to you or a trusted professional before making any financial decisions.

We're here to guide you through the intricacies of safeguarding your family's financial future and can make it even easier to protect your parents by helping them establish estate planning tools to record and pass on digital assets like crypto, Powers of Attorney to help manage their assets, and Trusts to protect everything they love for years to come.

To learn how we can help you protect your parents from these scams, schedule a call with us today and stay tuned for the next installment of our series, where we’ll dive into two more financial scams you and your senior parents need to know about.

What Not To Include As Part of Your Estate Plan

Sun, 24 Sep 2023 14:17:48 GMT

One important purpose of estate planning is to facilitate the transfer of ownership of your money and property to your family and loved ones when you pass away. For this transfer to be as stress-free and efficient as possible, it is crucial that estate planning documents be thorough and provide the necessary information. Nevertheless, there is some information that should never be included in your estate planning documents.

Social Security Numbers

Providing Social Security numbers would leave the individual vulnerable to the risk of identity theft because there are several estate planning documents that may become part of the public record. A will may need to be filed with the probate court at your death, or a power of attorney or certificate of trust may need to be recorded if real estate is transferred.

Once these documents are part of the public record, complete strangers will have access to this private information by making a simple request of the probate court or recording office and paying a small fee. Considering that in 2022 alone, the Federal Trade Commission received 1.1 million reports of identity theft, ^[1] Social Security numbers should never be included in anyone’s estate plan.

Keep in mind that you may need to provide your family members’ Social Security numbers when you designate them as beneficiaries of your retirement or other accounts, but those forms never become part of the public record and therefore are not as vulnerable to identity thieves.

Account Numbers

Similarly, unauthorized people may use account numbers to steal money from your accounts if those numbers are listed in your estate plan and become part of the public record. It is important to keep your account numbers in a secure location rather than including them in your will. You also should be cautious about making them readily available to family members unless you have designated one or more of them to act as your agent under a power of attorney, guardian, trustee, or a similar role that imposes a duty on them to act in the best interests of both you and your future beneficiaries.

Think carefully about who you choose to act in these roles because they will have access to important financial information. Keep in mind that although a family member may often be the best choice, sometimes even family members prove to be untrustworthy. In October 2022, Kile and Debra Madsen were found guilty in New Hampshire of theft after they made unauthorized purchases, payments, and withdrawals from Kile’s father’s bank account between December 2015 and August 2016. ^[2] Kile’s father, who was eighty-six when he died in 2018, suffered from dementia. The pair were sentenced to serve several years in state prison and forbidden from caring for any elderly, disabled, or impaired adult.

Rather than including account numbers in your estate plan, you should protect yourself by taking steps to avoid the disclosure of account numbers and other financial information except to someone you trust and have legally designated to act on your behalf.

Disparaging Remarks

Many people have difficult family relationships. It may be tempting for a willmaker to “deliberately and needlessly render[] articulate by his Will all his pent up frustrations, his desire for revenge unanswerable by the living victim, his unreasoned prejudices, his desires for spite past the grave.” ^[3] The 1912 book Ancient, Curious and Famous Wills ^[4] mentions the following barbed bequest included in the will of Philip, Fifth Earl of Pembroke, who died in 1669: “I give nothing to my Lord Saye, and I do make him this legacy willingly, because I know that he will faithfully distribute it unto the poor.”

Some may think that their will is a means by which they can have the last word, so to speak, in a contentious relationship. However, a few courts have held an estate or the executor of an estate liable for testamentary libel, that is, publishing a false statement that is damaging to a person’s reputation in a will. For example, in the 1914 case Harris v. Nashville Trust Co., ^[5] the plaintiff's uncle included the following in a codicil to his will: “And this sum of two hundred and fifty (250) Dollars to John Woodfin, $1.00 to William Woodfin, and $1.00 to Cleo Woodfin, the illegitimate children of my brother James Woodfin, is all that they are ever to have of my estate.”

At that time, illegitimacy was viewed very negatively, so Cleo filed suit against the executor of the estate for damages, alleging that she was the legitimate child of her parents and that the codicil had been maliciously added to the will to “blacken her character.” Although the executor claimed that no cause of action existed against the executor allowing Cleo to pursue her claim for damages, the court disagreed and allowed the case to proceed. So it is prudent to call upon the better angels of your nature and use your will as a means of blessing those you love instead of blasting those you dislike.

We Can Help

As an experienced estate planning attorney, we will make sure that the information necessary to achieve your wishes is included in your estate planning documents and that anything that would risk damage to your estate and ultimately, your beneficiaries, is excluded. Call us today to set up an appointment so you can look forward to gaining the peace of mind that comes with knowing you have put a plan in place that protects you and your loved ones.

^[1] New FTC Data Show Consumers Reported Losing Nearly $8.8 Billion to Scams in 2022, Fed. Trade Comm’n (Feb. 23, 2023), https://www.ftc.gov/news-events/news/press-releases/2023/02/new-ftc-data-show-consumers-reported-losing-nearly-88-billion-scams-2022.

^[2] N.H. Dep’t of Justice, Kile and Debora Madsen Sentenced to State Prison for Stealing from Elderly Relative, Off. Att’y Gen. (Oct. 3, 2022), https://www.doj.nh.gov/news/2022/20221003-madsen-sentenced.htm#:~:text=Madsen%20to%20each%20serve%20one,years%20after%20release%20from%20incarceration.

^[3] In re Croker’s Will, 105 N.Y.S. 190, 191 (N.Y. Sup. Ct. 1951).

^[4] Virgil M. Harris, Ancient, Curious and Famous Wills 290, https://archive.org/stream/ancientcuriousfa00harrrich/ancientcuriousfa00harrrich_djvu.txt.

^[5] 162 S.W. 584 (Tenn. 1918).

10 Life Events That Signal It’s Time to Review Your Estate Plan - Part 2

Wed, 30 Aug 2023 11:00:00 GMT

You might think that estate planning is something you can complete one time and then check off your to-do list for good. But the reality is that in order for your estate plan to work for you no matter how your life changes, your plan needs to change with it.

To make sure any big changes in your life are considered in your plan, I recommend reviewing your estate plan with your attorney at least every three years. But if any major life events happen before then, it’s crucial to have your plan reviewed as soon as possible so it can be updated if needed.

Last week , we started to explore 10 life changes that might affect your estate plan. This week, we’re covering five more life events that mean it’s time to review your plan.

06 | You Became Seriously Ill or Injured

A sudden illness or injury can leave you incapacitated and unable to manage your affairs. Therefore, it's essential to review your estate plan to ensure it includes Powers of Attorney for healthcare and finances. These documents let you name someone you trust to pay your bills and manage your assets, as well as make medical decisions for you if you can’t speak for yourself.

It’s also important to include healthcare directives that describe what kind of healthcare you want if you become incapacitated. This can include dietary restrictions or preferences, religious beliefs, or limits to certain treatments or life-sustaining measures. By legally documenting your healthcare choices, your Power of Attorney will feel more comfortable in the role and will be able to make medical decisions for you that align with your wishes.

07 | You Moved Here From Another State

Each state has its own laws and regulations regarding estate planning, so if you moved here from another state after completing your estate plan, it’s crucial to have your plan reviewed by a local attorney. If your existing plan doesn’t meet our state’s requirements for how an estate plan is signed or witnessed, or contains terms or processes that differ from the processes of our state, this can cause delays when your plan needs to be used and may even require a court to review its validity.

Reviewing your plan with a local attorney and making any changes to comply with our laws will make sure that your estate plan can be relied upon at any moment without delay or confusion.

08 | You Got Married

Marriage brings about not only joy and celebration but also important legal updates that are easy to put off. When you tie the knot, your estate plan needs to reflect your new marital status. Some states automatically make your spouse a co-owner of some of your property, but that doesn’t ensure an easy transfer of that property to your spouse when you die. Other states do not make any automatic updates in ownership. Even moving between Kansas and Missouri can change the way some of your property is legally owned between spouses.

To make sure your assets will go to your new spouse if you die or become incapacitated, it’s essential to update beneficiaries and make arrangements for shared assets. Additionally, you might consider creating provisions to protect your spouse financially and emotionally in the event of your passing.

09 | You Got a Divorce

The end of a marriage is a significant life event that requires immediate attention to your estate plan. After a divorce, you’ll likely need to revoke and redo your entire estate plan. This includes creating a new Will and Trust, updating beneficiary designations on life insurance and retirement accounts, and revising asset distribution to reflect your new circumstances and relationships.

If you have children from your previous marriage, you may need to revisit guardianship arrangements and provide for their financial needs accordingly.

10 | The Law Changed

Tax laws are subject to change, and revisions to estate tax exemptions can have a substantial impact on your estate plan. If there are significant changes in federal or state estate tax laws, it's crucial to review your plan with an estate planning attorney to minimize tax burdens and protect your wealth for your loved ones.

Even if you weren’t affected by federal or state estate taxes in the past, changes in federal estate tax law are scheduled for 2026, so now is the time to review whether this change will affect your family’s estate tax filing status. Estate taxes can cost your family tens or even hundreds of thousands of dollars, but these tax liabilities are optional and can be avoided with proper estate planning.

By Your Side Through All of Life’s Changes

Your estate plan serves as the bedrock protecting your family and finances, not just for today but also for the future. However, estate planning isn't a one-time task - it should adapt and evolve alongside the changes in your life.

Our mission is to be by your side through all of life's changes, ensuring your estate plan remains up-to-date and effective no matter what life brings your way. That's why we offer our clients a complimentary review of your estate plan every three years, and we encourage you to reach out at any time before then with questions about life changes or events that might affect your plan.

If you’re ready to create an estate plan that protects your loved ones and your legacy, or want your existing plan reviewed, give me a call. I’d be honored to help ensure your family’s well-being for years to come.

Click on my scheduling link to get started. I can’t wait to hear from you.

10 Life Events That Signal It’s Time to Review Your Estate Plan - Part 1

Thu, 24 Aug 2023 18:54:17 GMT

Maybe you thought that creating a Will or Trust is something you can do once and then your family and assets are protected forever after. It seems to be how most lawyers structure their services, so it wouldn’t be surprising if you did think this. You work with your lawyer, they draft documents, you bring them home in a binder or notebook, put them on a shelf or in a drawer, and you never hear from them again. Estate plan, done. But, it’s not, and thinking of it that way could leave your family with a big mess when something happens to you.

In reality, life events can drastically affect your estate plan and even cause your plan not to work in the way you intended. To make sure your plan remains up to date throughout your life, we recommend reviewing your plan at a minimum of every three years. Because I am so passionate about this, I offer to review my clients' plans every three years for free.

And, if any of these 10 life events happen before your three-year plan review, you’ll want to have your plan professionally reviewed right away. Let’s take a closer look at these 10 life events and how they can affect your estate plan and what changes may be required.

01 | Your Assets or Liabilities Changed

Life is full of changes, and your financial situation is unlikely to stay the same over time. Changes in your assets, such as acquiring a new home or other assets, selling property, or incurring debt should prompt a review of your estate plan. You may need to update asset distribution, beneficiary designations, and financial provisions to reflect these changes accurately and ensure that the people you love receive what you intend when you die.

Most importantly, you need to update your asset inventory every time your assets change, and if you do not have an asset inventory, you need to call us and update your plan to ensure you’ve got an inventory included. The biggest risk to your family in the event of your incapacity or death is that they do not know what you have, where it is or how to find it. We solve this by creating an updating your asset inventory, regularly.

02 | You Bought, Sold, or Started a Business

Owning a business adds another layer of complexity to your estate plan. If you’ve recently bought or sold a business, it's essential to update your plan to reflect what you want to happen to your business when you die, ensure a smooth transfer of ownership (if desired), and create a plan to protect your business assets for yourself and your loved one’s future.

The financial and personal value of your business can be a significant gift to your loved ones both today and for years to come - if you know how to incorporate it into your estate plan in the right way.

03 | You Gave Birth or Adopted a Child

Welcoming a new child into your family is an incredibly joyful moment. As a parent, it's essential to update your estate plan to include provisions for your child's well-being and financial future. This includes naming Guardians for minor children, creating a Kids Protection Plan, and ensuring their financial security through Trusts or other means.

It’s also important to document your wishes for your child’s education, religion, and values in your plan so that their legal Guardians will know how you would want your child raised if something happened to you.

04 | Your Minor Child Reached the Age of Majority (or Will Soon)

As your children grow up and reach the age of majority, it’s time to review how they will receive their inheritance, make sure someone can legally make healthcare decisions for them, and manage their money in the event they become incapacitated. Depending on their level of maturity, you may want to consider if they are ready to handle assets on their own and if so, what amount.

An even better idea is to provide lifelong protection of your child’s inheritance through the use of a Lifetime Asset Protection Trust. By using this estate planning tool, your child’s inheritance can be used to support your child’s future while safeguarding its use and protecting it from any potential future lawsuits or divorces your child may face later in life.

This ensures that your children are financially secure as they head into adulthood while also supporting your children with financial responsibility.

05 | A Loved One Dies

The loss of a family member is emotionally devastating, and it can significantly affect your estate plan. If a deceased loved one was a recipient of assets under your Will, Trust, or financial accounts, it's crucial to update these documents to make sure your assets will be distributed to the right people.

Additionally, if the deceased individual was designated as a Trustee or Executor of your estate or a Guardian of your minor children, you will need to appoint new individuals to fill these roles.

Planning for Life’s Changes

Your estate plan is the foundation that protects your family and your finances today and in the future. But estate planning is not a set-it-and-forget-it task; rather, your estate plan should change and evolve with the changes in your life.

We’re here to guide you through life’s changes to keep your estate plan up-to-date and effective, so you can have the peace of mind of knowing that your plan will work exactly how you want it to when your loved ones need it most.

If you've recently experienced a significant life event or it's been a while since your last estate plan review, now is the time to review your plan. If you haven’t created an estate plan yet, it’s better to plan early than to have no plan at all.

To get started, schedule a free 15-minute discovery call to learn more about our Family Wealth Planning Session process where we’ll discuss your family dynamics and goals, address any changes in your life, and create a comprehensive estate plan that brings you peace of mind.

Plus, don’t forget to return next week when I’ll be discussing five more life events that signal it’s time to review your plan.

Don’t Send Your Kids Back to School Without These Documents

Thu, 24 Aug 2023 18:46:01 GMT

As summer has come to a close, and back-to-school excitement fills the air, there is one crucial task that is often overlooked: designating legal guardians for your minor children. Legal guardians are the individuals you entrust with the care of your children if, for any reason, you are unable to do so yourself.

In the hustle of back-to-school shopping and end-of-season summer fun, it might seem like naming legal guardians for your kids is a low priority, but nothing could be farther from the truth.

As kids return to school, they’ll spend most of their day in the care of other people - their teachers, coaches, and babysitters. That means that your children will spend most of their time with people who do not have any legal authority to take care of them for more than a brief time in the event you are in an accident or can’t be reached for any reason.

And, if your kids are going off to college, you’ll no longer be able to make decisions for them or have access to their medical records in an emergency unless your adult kids create Powers of Attorney and Health Care Directives.

Don’t Rely on Informal Agreements

They say it takes a village to raise a child, and as parents, you usually have a network of friends or family you feel you can rely on to step in and care for your child if needed. But it's essential not to rely solely on informal arrangements with relatives or friends to care for your kids if you can’t.

Whether you are unconscious in the hospital or have passed away, there’s a chance your child could be taken into protective custody by social services until you recover or until a permanent arrangement can be made.

But here’s the thing, the person who ends up taking your child may not be someone your child knows or loves, but a complete stranger in the foster care system. Or, maybe even worse, that person could be someone you never want to raise your kids but who is appointed anyway by a well-meaning court system that doesn’t know what you would want or how you would want your children to be raised.

In addition, if you don’t name legal guardians for your kids you risk creating conflict among family members who want to care for your children and may subject your loved ones to a lengthy and costly court process—an unnecessary burden that can easily be avoided. In fact, not naming more than one guardian is one of the 6 Common Mistakes people make when choosing a guardian for their kids. (Ask us how to get the full list of Common Mistakes!)

You know your child and your family better than anyone else, and you know who would be the best fit for raising your child if something happened to you. But unfortunately, unless you document your choice of guardian in advance, the decision of who would raise your child if you can’t is ultimately left to a judge who doesn’t know you or your family dynamics.

Instead, naming short-term and long-term guardians for your kids ensures they are always cared for by people you know and trust.

And, if your kids are off at college, you cannot rely on the fact that you know they’d want you to have access to their medical records and financial accounts if something happened to them. The hospital or banks need official legal documents for you to get access if needed. That’s why we provide all of our client families with young adult planning documents for kids away at college.

Comprehensive Protection for Your Child

To make sure your kids are always protected and cared for by people you trust, it’s essential to create a comprehensive Kids Protection Plan®. Every Kids Protection Plan® enables you to name short-term temporary guardians who have immediate authority to care for your children in an emergency and long-term permanent guardians who can raise your children if you are no longer able.

Our Kids Protection Plan® also equips you with emergency ID cards that contain instructions for first responders to contact your child’s guardian if you’re in an accident so they can travel to be with your child right away. Plus, all caregivers, like babysitters and nannies, are provided with precise instructions on how to reach your short and long-term guardians, and that everyone involved in your plan has the necessary legal documents on hand to ensure a smooth process if the need for a guardian arises.

In this way, not only have you legally named guardians for your kids, but you’ve created an entire safety plan to ensure they are always cared for in the way you’d want in any situation.

And for your college-bound kids, it means having young adult planning documents in place like Powers of Attorney and Health Care Directives that allow you to access your kids’ accounts or make medical decisions for them if they become incapacitated by an illness or injury.

A Thoughtful Approach for Your Peace of Mind

We are dedicated to securing the well-being of your children under all circumstances. As the back-to-school season approaches, don't overlook this essential homework for parents - naming legal guardians and creating your own Kids Protection Plan®.

The first step is to go through our unique planning process to choose the right plan for you, your kids and everyone you love. We begin with a Family Wealth Planning Session. During the Session, I get to know your family on a personal level to understand your family dynamics and your assets. I’ll share the law with you, and together we’ll look at exactly what would happen to your assets and your loved ones if something happened to you right now.

From there, we choose the right plan for you - at the right budget and that achieves your personal objectives - based on the specifics of your family situation. This ensures your kids and family are cared for and protected no matter what happens, so you can embrace the excitement of this new academic year with peace of mind.

To learn more and get started with your own Family Wealth Planning Session, click here to schedule a complimentary discovery call. I can’t wait to serve you.

Difference Between Transfer on Death and Payable on Death Designation

Fri, 11 Aug 2023 19:19:10 GMT

Adding a payable-on-death (POD) or transfer-on-death (TOD) designation to an account allows the assets (money and property) in that account to be passed to a named beneficiary when the original account holder dies.

Like trusts, POD and TOD accounts bypass probate. They are also fast, easy, and usually free to set up. However, they do not provide the full range of benefits that a traditional trust does and can have some unintended consequences.

Before deciding whether to set up a POD or TOD account, it is important to know the difference between them, understand their pros and cons, and talk to an attorney about how they fit into your estate planning goals.

POD versus TOD (versus a Trust)

Payable on death and transfer on death sound ominous; and while the topic of death is always somewhat gloomy, POD and TOD are estate planning terms that financial account holders should be familiar with.

A goal of most estate plans is to avoid probate—the legal process by which an estate is settled. Probate can be time-consuming and costly, but there are ways to avoid it, such as placing assets in trusts that pass outside of probate.

Another way to avoid probate is to use POD and TOD accounts for asset transfers. The major difference between POD and TOD accounts is the type of assets held in the account.

● POD is a designation added to a bank account, such as a checking account, savings account, certificate of deposit (CD), and money market account.

● TOD applies to an investment account, such as an individual retirement account, 401(k), brokerage account, and other accounts holding securities.

An additional difference between POD and TOD accounts is that, with a POD designation, the account assets are transferred to a beneficiary (or beneficiaries), while with a TOD designation, account ownership transfers to a beneficiary.

Financial institutions may refer to a POD account as a Totten trust, a type of revocable trust (aka a living trust) that is set up as a POD account. PODs and TODs are, like Totten trusts, able to be revoked during the owner’s lifetime; that is, the POD or TOD designation can be removed up until the owner passes away. And with all three, while the owner is alive, they retain account ownership and can manage the account as they see fit. It is only when the owner dies that the beneficiaries have a claim to a TOD, POD, or revocable trust.

However, unlike a Totten trust or a revocable trust, there is no trustee who manages a POD or TOD account. The POD or TOD account or assets transfer directly to the beneficiary. Assets transferred in this way have no protection from a beneficiary’s creditors or their poor spending habits.

Pros and Cons of PODs and TODs

It is important to note that, in the case of jointly held accounts, a POD or TOD account designation does not kick in until both account holders have passed away. For example, if spouses jointly own a bank account that is set up as a POD account, the surviving spouse becomes the sole owner of the account when the first spouse dies, and it only passes to named beneficiaries after the surviving spouse dies.

Others benefits may include the following:

● Setup is straightforward and there is generally no cost.

● Designated beneficiaries receive the funds without having to wait for probate to conclude, which can take months. A POD or TOD account allows loved ones to get money almost immediately. Typically, all they need to provide is the death certificate and identification to the account-holding institution.

● A bank account has Federal Deposit Insurance Corporation (FDIC) insurance up to the standard $250,000, but banks allow account owners to specify multiple unique beneficiaries for an informal revocable trust (i.e., a POD account), which provides additional FDIC coverage. ^[1]

● The account owner has the flexibility to change, add, or revoke a beneficiary designation.

● For added flexibility, a durable power of attorney can be added to a POD or TOD account, allowing somebody other than the beneficiary to handle the account.

● Trusts can also be named POD beneficiaries. ^[2]

The probate avoidance offered by a POD or TOD account is its main appeal, but this and other benefits should be weighed against the following potential pitfalls:

● A POD or TOD account is not effective if the owner becomes incapacitated.

● Backup beneficiaries cannot be named, so if a beneficiary predeceases the account owner, their share of the account could be automatically reallocated to the remaining surviving beneficiaries or subject to probate.

● POD and TOD accounts are established through a financial institution and outside the rest of the estate plan. If a will is updated but POD or TOD beneficiaries are not, there could be inconsistencies in the overall estate plan.

● Because POD bank accounts avoid probate and pass outside of the estate, the funds in them are not available to settle claims or debts of the estate, such as estate taxes. This can make things harder on the executor, who may need to ask for voluntary contributions from a POD beneficiary.

● If there are insufficient probate assets to pay the debts of the estate, creditors may be able to claim certain nonprobate assets, including POD and TOD accounts.

Is a POD or TOD Account Right for My Estate Plan?

An estate plan is a highly individual matter that reflects your personal wishes and family dynamics. As such, there is no “one size fits all” advice for an estate plan. The pros and cons of any estate planning vehicle—be it a POD, TOD, revocable trust, will, or power of attorney—must be weighed against your values and goals.

Transferring a bank account to a POD account, or an investment account to a TOD account, may be as easy as signing a document with your financial institution. But the ease of a POD or TOD designation must be considered alongside fiscal considerations such as taxes and personal considerations such as whether heirs would be better served by placing the accounts in a trust.

During a meeting with our estate planning attorneys, we can discuss POD and TOD accounts and how they may align with your overarching estate planning objectives. Call or contact us to start planning today.

[1] Your Insured Deposits, FDIC (Oct. 27, 2015), https://www.fdic.gov/regulations/resources/brochures/your_insured_deposits-english.html .

[2] Beneficiary FAQs, Bank of America, https://www.bankofamerica.com/deposits/beneficiaries-faqs/ (last visited July 21, 2023).

What Not To Include In Your Estate Plan

Fri, 04 Aug 2023 00:17:19 GMT

Social Security Numbers

You may think that it would make sense to refer to yourself and your family members or loved ones by using their Social Security numbers to ensure that they are correctly identified when the time comes. It is important to provide information in your estate planning documents that is sufficient to properly identify your beneficiaries, but using full legal names, including middle name or initial, is typically adequate. Providing Social Security numbers would leave the individual vulnerable to the risk of identity theft because there are several estate planning documents that may become part of the public record.

A will may need to be filed with the probate court at your death, or a power of attorney or certificate of trust may need to be recorded if real estate is transferred. Once these documents are part of the public record, complete strangers will have access to this private information by making a simple request of the probate court or recording office and paying a small fee. Considering that in 2022 alone, the Federal Trade Commission received 1.1 million reports of identity theft, ^[1] Social Security numbers should never be included in anyone’s estate plan.

Account Numbers

Disparaging Remarks

For example, in the 1914 case Harris v. Nashville Trust Co., ^[5] the plaintiff's uncle included the following in a codicil to his will: “And this sum of two hundred and fifty (250) Dollars to John Woodfin, $1.00 to William Woodfin, and $1.00 to Cleo Woodfin, the illegitimate children of my brother James Woodfin, is all that they are ever to have of my estate.” At that time, illegitimacy was viewed very negatively, so Cleo filed suit against the executor of the estate for damages, alleging that she was the legitimate child of her parents and that the codicil had been maliciously added to the will to “blacken her character.” Although the executor claimed that no cause of action existed against the executor allowing Cleo to pursue her claim for damages, the court disagreed and allowed the case to proceed. So it is prudent to call upon the better angels of your nature and use your will as a means of blessing those you love instead of blasting those you dislike.

We Can Help

As experienced estate planning attorneys, we will make sure that the information necessary to achieve your wishes is included in your estate planning documents and that anything that would risk damage to your estate and ultimately, your beneficiaries, is excluded.

Call us today to set up an appointment so you can look forward to gaining the peace of mind that comes with knowing you have put a plan in place that protects you and your loved ones.

^[3] In re Croker’s Will, 105 N.Y.S. 190, 191 (N.Y. Sup. Ct. 1951).

^[4] Virgil M. Harris, Ancient, Curious and Famous Wills 290, https://archive.org/stream/ancientcuriousfa00harrrich/ancientcuriousfa00harrrich_djvu.txt.

^[5] 162 S.W. 584 (Tenn. 1918).The body content of your post goes here.

4 Ways to Manage Workplace Conflict

Thu, 27 Jul 2023 18:16:36 GMT

Handling workplace conflict can be one of the most difficult aspects of running a business. While achieving business goals may require talent and time, managing people and their personalities is a completely different ball game. No matter how good the management is, disputes are bound to arise in the workplace due to differences in values, poor communication, personality clashes, and unhealthy competition.

If left unchecked, minor disputes can escalate into major conflicts that can significantly affect the morale and productivity of the entire company and ultimately lead to increased turnover. Therefore, it is essential to have a solid process in place for effectively managing staff conflict. Here are three steps that can help you effectively manage workplace conflict.

Respond Promptly

As a small business owner, you might feel uncomfortable getting involved with employee disagreements, but ignoring a problem can cause more significant trouble down the road. If the issue isn’t addressed promptly, emotions can build and the conflict may escalate beyond its immediate cause. Unresolved issues tend to fester and may even compound over time, erupting in an emotional outburst or passive-aggressive behavior.

Instead, address any conflict as soon as you become aware of it and take solid steps to resolve it in order to keep emotions calm and the workplace as drama free as possible. The sooner you address the conflict, the more open-minded your employees will be to work toward a solution.

While you may think you need to confront conflict from a stern or scolding place, you can address many issues by first having a friendly conversation with the people involved, beginning with curiosity. If the issue affects your whole team, such as poor teamwork or rude communication, you can bring up the problem during a team meeting without needing to call out certain individuals.

If the issue does not resolve after addressing it lightly, private conversations can be had with the involved individuals. Most people don’t want to get in trouble with their boss, so many issues can be resolved when confronted early on by a supervisor.

Serious conflicts, especially conflicts involving harassment or discrimination should be dealt with privately and seriously with the involved employees according to your employee handbook.

All discussions about the issue should be noted, and any occurrences of harassment or discrimination, as well as any follow-up disciplinary actions, should be formally documented.

Identify the Cause of the Disagreement

Many workplace conflicts are the result of relatively small or petty issues, but these small interpersonal problems can become major issues when two conflicting people need to interact with each other every day in the workplace.

To resolve an issue quickly, identifying the cause of the dispute is crucial to resolving it. Conflicts are rarely as simple as they seem on the surface and often are complicated by other aggravating factors like conflicting personalities or office competition. Get both parties to agree on what the conflict is actually about and then identify the needs that aren't being met on both sides. Listen carefully to both parties and sort out the facts of the dispute without making any judgments.

It's best to acknowledge that we all have different opinions and points of view. Try to get each side to understand and respect the other's perspective, even if they're completely opposite of one another.

Don’t Assume - Only State Observable Facts

To stay on neutral ground as your team’s leader, it’s best to state observable facts to avoid the parties from getting defensive or feeling like you’re taking sides. When you make an assumption or judgment, it can make either party feel emotionally upset or may cause the focus of the conversation to switch from productive problem-solving to a “he said/she said” debate.

If you weren’t able to observe the situation firsthand, state the facts that have been disclosed to you. It’s also beneficial to have a spirit of curiosity to learn more about the situation instead of jumping to conclusions. For example, you could say something like, “While I wasn’t there to witness it, my understanding of the situation is XZY occurred. What can you tell me about this?”

Find A Middle-Ground Solution and Stick to It

Once the conflict has been identified, discuss openly and respectfully what a solution might look like. Work towards a solution where each side gives a little and gets a little. Be creative in searching for solutions, and develop mutually acceptable criteria for evaluating these solutions.

Be sure to refer to your employee handbook on how your company deals with conflict and any policies that affect the desired outcome, such as behavior expectations and conflict review. A well-written employee handbook makes workplace expectations clear from the beginning and helps back up whatever plan of action you take.

If you don’t have an employee handbook - you need one! We can help you create one that provides a roadmap for handling conflict in your company and that will help protect you and your company from litigation if a workplace conflict becomes legal.

Once a solution has been decided on, each side should agree to take responsibility for whatever actions are required to resolve the issue. Taking responsibility can be done verbally, but having a written agreement might be best. After some time has passed, hold a follow-up meeting to evaluate the success of the solution and make adjustments if necessary.

Supporting Your Business From the Inside Out

Managing staff conflict can be challenging, but it's crucial to maintain a harmonious and productive work environment. If you need extra guidance or support in managing staff conflict, contact me. I don’t just prepare legal documents for your business - I work alongside you on your path to growing a business and life you love and can help you navigate the legal, financial, and personal challenges that every business is bound to face.

To make sure your business has the foundation it needs to be successful, we make sure you have the Legal, Insurance, Financial, and Tax structures your business needs to thrive while protecting your own assets and interests. From there, we support our clients’ businesses through an ongoing relationship that proactively looks for ways to grow your business and bring it into alignment with your ideal work-life balance.

To learn more about how I help business owners create companies they love, schedule your free 15-minute discovery call at this link .

Investment and Distribution Trustees: Why Would I Need Both?

Thu, 27 Jul 2023 17:56:44 GMT

When creating a trust, it is common to name yourself as the initial trustee who is responsible for all aspects of administering the trust. However, when considering who will take over when you can no longer act (either because of illness or death), it is sometimes helpful to divide the responsibilities between two or more successor trustees.

For example, you may decide to have one trustee who manages the accounts and property held by the trust and another trustee who makes decisions about distributions to the trust’s beneficiaries.

There are some important reasons why you may want your trust document to bifurcate the trustees’ duties in this way.

Benefit from specialized knowledge or aptitudes. Trustees have a variety of duties and responsibilities in administering a trust, and it is sometimes beneficial to divide them up between more than one trustee based upon the expertise or skills needed to perform a particular aspect of the trust’s administration.

For example, if your sister-in-law is knowledgeable about investments and experienced in making financial decisions, but is not as skilled at handling potentially difficult interpersonal interactions, it may be beneficial to name her as your investment trustee, which is a trustee whose sole duty is to make discretionary decisions about the investment of funds held by the trust.

Some trusts call for distributions to be made to beneficiaries at the trustee’s discretion rather than mandatory distributions of a certain amount or percentage at specific times. For trusts that provide for discretionary distributions, it may be helpful for another trusted person capable of making impartial decisions, skilled at communicating with others, and familiar with the beneficiaries of the trust and their needs to be named the distribution trustee, which is a trustee responsible for making decisions about whether and when to accumulate or distribute the income or principal of the trust.

This division of responsibilities is particularly helpful if there are any difficult relationships or potential conflicts between beneficiaries or between one of the trustees and a beneficiary. For example, if your second wife is one of the trustees of the trust but the beneficiaries of the trust are your children from your first marriage, naming an unrelated third party as the distribution trustee may avoid hard feelings or the perception of unfairness related to distributions. Although it may be more expensive to have two or more trustees instead of a single trustee, the additional expense may be worthwhile to maintain family harmony and avoid damaging relationships.

Gain additional asset protection. Most creditors may not reach a beneficiary’s interest in a trust if the trustee is not required to make distributions. Some creditors may be limited in how much they can reach if distributions are based on an ascertainable standard such as for the health, education, maintenance, and support (HEMS) of the beneficiary. Depending on state law, this may be true even if the beneficiary is also the sole trustee.

However, the general rule is that the less control a beneficiary has over the trust’s accounts and property, the more protection is provided against creditors’ claims. Even if the beneficiary of the trust is also the investment trustee, greater asset protection may be available if a separate distribution trustee is appointed who is empowered to make distributions to the beneficiary in their sole discretion. In some jurisdictions, the trust could also provide that the beneficiary could resign as a trustee and appoint another independent trustee to take their place. This might further enhance the level of asset protection if the beneficiary is concerned that they may become more vulnerable to creditors’ claims in the future.

Note: This asset protection is typically not available for certain creditor claims, such as for child support or alimony or tax debts. The list of “exception creditors” varies by state and should be discussed with your estate planning attorney.

Minimize taxes . When a trustee has total discretion to make distributions from the trust to themselves or others, the value of the trust’s accounts and property may be included in the trustee’s estate for estate tax purposes, or the trustee may be taxed on the trust income under Internal Revenue Code (I.R.C.) § 678. Depending on the type of trust and the goals it is designed to achieve, an independent trustee could be appointed to minimize either estate or income taxes.

Example: To avoid having the property held by the trust included in their estate for estate tax purposes, a trustee who is also a beneficiary may be permitted by the terms of the trust to select an independent distribution trustee, as long as that distribution trustee is actually independent—not a related party or a person subordinate to the beneficiary as defined by I.R.C. § 672(c). In this situation, the investment trustee who is also a beneficiary will not have direct control over the amount or timing of the distributions, but they may still retain significant control over who serves as the independent co-trustee. In addition to choosing the independent distribution trustee, the trust document may provide that the beneficiary can replace the independent trustee at any time and for any reason.

Example: If your trust is a nongrantor trust—i.e., a trust that is a separate entity for tax purposes that pays taxes on trust income at the trust level—it is important for someone other than the grantor (the person who creates the trust) or any party who is related or subordinate to them to be the investment trustee. This is because the power to determine trust investments may be considered to be the power to control the beneficial enjoyment of the trust assets under I.R.C. § 674, which would mean the grantor, rather than the trust, must pay taxes on the trust income.

Give Us a Call

If you would like to find out more about whether you should appoint separate investment and distribution trustees, give us a call at 913-451-6936 to set up an appointment. Although having more than one trustee will make the trust more complex, and additional fees may be required for the services provided by the trustees, you may decide that the benefits far outweigh any additional costs. We can help you design your trust in a way that best achieves your goals by maintaining family harmony, protecting assets, and minimizing taxes.

3 Simple Mistakes That Can Derail Your Estate Plan

Thu, 27 Jul 2023 17:44:57 GMT

If you’re tempted to use a DIY estate planning service or have already created a plan you aren’t 100% confident in, be sure to read how these three simple mistakes can derail your estate plan and leave your family with an expensive mess.

And what I see time and again when I review these estate plans are poorly designed plans with simple but devastating mistakes. What’s more, these clients wouldn’t even realize their plan had these mistakes if they hadn’t met with us!

While it might seem simple enough to put together a trust online or have your tax attorney prepare your will, it can be very difficult to create an estate plan that works without the proper training and experience. What might seem like minor details to the inexperienced eye can often have major effects on your plan’s final outcome.

More often than not, clients who meet with us to review a DIY plan find out that instead of saving money on their estate plan, they’ve actually cost themselves much more by buying a plan that has mistakes. And if these mistakes aren’t caught by you while you’re alive and well, your loved ones will be the ones paying the price to resolve them after you’re gone.

Here are the three biggest mistakes I see when reviewing DIY and low-cost estate plans:

Leaving Assets Outright to Loved Ones

One of the simplest mistakes you can make in estate planning is distributing your assets directly to your beneficiaries upon your death. This is a bad idea for several reasons:

● The assets have no protection from your beneficiaries’ creditors once they leave your estate

● The money can be squandered and used however the beneficiary wants

● If the beneficiary is a minor, a court will decide who manages the assets and how they’ll be used

Instead of gifting your assets directly to your beneficiaries, distribute your assets into a trust for the beneficiaries' benefit. When creating a trust, you can choose who will manage your assets for your beneficiaries while also sheltering those assets from your beneficiaries’ creditors or their own poor money-management skills.

Setting up a trust to hold your assets is especially important if you have minor children. Minors cannot own money on their own, which means they can’t receive any assets from you directly on your death. Instead, a court will need to appoint a trustee or conservator to manage the assets you leave for your children. There’s a high chance that the person the court appoints will not be the person you would have chosen yourself. And if the court appoints a professional trustee, your assets will be reduced by expensive trust administration fees.

A court-appointed trustee will distribute the assets to your children outright when they reach the age of 18, but this only puts the assets at risk. Few young adults have the maturity or knowledge to manage a large sum of money responsibly so that it can grow and support them over time. Even if your adult child is responsible or has guidance from someone you trust, those assets are still susceptible to any lawsuits, divorces, and unforeseen financial troubles your child may experience in the future.

Instead of leaving assets outright to a minor or young adult, leaving your assets in a trust, established for the child’s benefit, allows you to choose the person who will manage the assets you leave for them, helps the assets grow through careful financial management, and protects the assets from your child’s lack of experience and future risk.

Not Creating a Lifetime Asset Protection Trust

Creating a trust to hold your assets can provide years of asset protection for your loved ones, but that protection only exists so long as the assets are held in the name of the trust. The second big mistake I see are trusts that direct the assets to be taken out of the trust’s protection and given to your child or beneficiary at a specific age. You might not see the problem with this scenario at first, but even if your child or beneficiary is mature enough to manage a sum of money, doing this still leaves those assets susceptible to future legal and financial risks.

Instead, everyone should consider creating a Lifetime Asset Protection Trust to hold their beneficiaries’ assets indefinitely. This gives the assets lifelong protection while still providing financial support to your beneficiaries.

Unfortunately, most lawyers do not understand how to use trusts to establish this kind of protection for the inheritance you are leaving behind, and some may even try to dissuade you from using a trust at all unless you have a very large estate. Even if you are leaving behind a small number of assets, protecting those assets and helping them grow can make a huge difference in the future well-being of your loved ones.

Forgetting to Update Beneficiary Designations

This final mistake is so simple yet so easily forgotten when creating a DIY plan or using an inexperienced estate planner: forgetting to update your insurance policies and retirement beneficiary designations so they match your estate plan. While your will and trust are important parts of your estate plan, it’s vital to update your insurance policies and retirement accounts to pay out to your trust instead of directly to your beneficiaries.

Leaving the names of your beneficiaries on your insurance and retirement accounts instead of the name of your trust ensures the largest assets you own won’t be a part of the plan you just created. Instead, the assets will be distributed directly to the beneficiaries listed on the account, to do with however they want, even if you had other plans for protecting the funds under your trust. We’ve even seen cases where the beneficiaries named on a life insurance or retirement account are so outdated that the person named on the account isn’t even a part of the client’s life anymore!

Estate Planning That Works

In order to make sure your estate plan truly works the way you intend it to, it’s essential that all of your assets are reviewed and accounted for to make sure that any accounts you have reflect the name of your trust or other estate plan method. That’s why at Bray Law Office we always create an inventory of your assets and follow up with you to make sure your assets are updated into the name of your trust. We can even update your assets for you, so you can rest assured that every piece of your plan works together.

If you're thinking about using a DIY estate planning service or had an estate plan created by an attorney in a different practice area, it's crucial to check your plan for these three simple but major mistakes. Otherwise, your estate plan might end up causing more problems than it solves, leaving your family in court and conflict.

That’s why we offer to review your current estate plan during a Family Wealth Planning Session. During this session, you'll have the opportunity to discuss your concerns, learn how your current plan will (or won’t) work for you, and if you don’t feel confident in your current estate plan, we’ll create a new comprehensive plan for you that will provide the protection and support your family needs for years to come.

Don’t let a simple estate planning mistake derail your plans for your family. Click here to schedule your Family Wealth Planning Session. Your loved ones will thank you for it!

Have a Trust? How the Corporate Transparency Act Affects You

Fri, 14 Jul 2023 15:12:14 GMT

Get ready for an interesting twist in the world of legal and business news. You may already be familiar with the upcoming Corporate Transparency Act, set to kick in next year. If you aren’t, it’s time to get in the know because it could impact you, and if you it does, you’ll need support. Starting January 1, 2024, every small business will be obligated to submit an annual report revealing the names of their major owners.

Now, here's where it gets intriguing. If you happen to have a Trust that holds partial or full ownership in a business, that business might be required to disclose private details about your trust, including details about the name of your Trustee or beneficiaries, in your annual corporate report to the government.

But hold on, you might be wondering, how do you figure out if your Trust needs to be reported? Fear not, for I have some answers. Keep reading, and you'll soon uncover all the essential details!

What Is the Purpose of the Corporate Transparency Act and What Does It Require?

Introducing the Corporate Transparency Act! Enacted in 2020 and set to take effect on January 1, 2024, this Act aims to tackle money laundering and terrorism financing schemes involving "shell" corporations—companies that exist merely on paper and don't engage in actual business or trade (like “Vamonos Pest” in Breaking Bad).

Under this Act, small companies will now have to disclose the names of any owners who hold 25% or more ownership in the company, as well as any individuals who exercise significant control over the company's activities. The goal is to identify and expose shell corporations that are frequently involved in money laundering, as such illicit activities tend to occur within small businesses rather than large corporations.

To comply with the requirements, businesses must submit an annual report to the Financial Crimes Enforcement Network (FinCEN) containing the following details about each owner or controller:

● Business name

● Current business address

● State in which the business was formed and its Entity Identification Number (EIN)

● Owner/controller’s name, birth date, and address

● Photocopy of a government-issued photo ID (such as a driver’s license or passport) of every direct or indirect owner or controller of the company

Failing to file an annual report could result in serious repercussions, from paying a fine of $500 for every day the report is late up to imprisonment for two years.

Does My Trust Need to Be Disclosed?

Since a Trust can own a business or a share of a business, Trusts are also involved in the Corporate Transparency Act, but under more limited circumstances.

So how do you know if your Trust information will need to be disclosed?

Let’s break it down…

The new rule applies to any company that is created by filing a formation document with the Secretary of State or a similar office, such as corporations and limited liability companies (LLCs).

Non-profits, publicly traded companies, and regulated companies like banks and investment advisors are exempt from the rule. Large companies are also exempt if they have 20 or more full-time employees in the US and generate $5 million in sales. So, if your trust owns a share of any of these types of companies, it does not need to be reported.

If you have an LLC or corporation you created but aren’t actively using to run a business, that company is exempt from reporting due to its inactivity, so your Trust would not be reported in that instance, either.

But, if your Trust owns a share of a small, for-profit company, (like a small family business or local investment) the beneficial owner of the Trust will need to be reported to the Financial Crimes Enforcement Network.

The beneficial owner is the person or people who benefit from the Trust or have the power to make major decisions about the Trust assets. Depending on how your Trust is written, this is usually the trustee, but it can also be the beneficiaries of your Trust.

Make sure to contact us to have your Trust reviewed before 2024 to make sure you report the correct beneficial owner of your Trust.

Does the Corporate Transparency Act Affect My Trust’s Asset Protection?

One of the best things about creating a Trust is that it provides you and your family with an extra level of privacy and provides asset protection from divorce or lawsuits for your Trust’s beneficiaries after you’re gone.

Thankfully, having a Trust that owns a business or a share of a business doesn’t take away from the Trust’s ability to provide asset protection to your heirs.

And while the new Corporate Transparency Act rule reduces some of the privacy benefits that come with owning assets in a Trust, the names of your Trust, trustees, and beneficiaries are not made public and are only used by the government for the specific purpose of investigating financial crimes.

Because of this, Trusts remain an excellent tool for providing privacy, avoiding probate, and setting up your family with a lifetime of asset protection and financial security.

Guidance for Your Family Now and For Years to Come

If you have a Trust or are curious about creating an estate plan for your family, you may be wondering how changes in the law will affect your plan in the future and how you can possibly plan for them.

That’s where we come in. Unlike many estate planning attorneys who serve their clients once and never see them again, we see estate planning as a life-long relationship.

Your life and the world around you are constantly changing, and your estate plan should too.

That’s why we keep our clients informed about any changes in the law that may affect their estate plan and offer to review your plan for free every three years to make sure that your plan still works for you just as well as it did on the day you created it.

If you’re ready to create a custom plan for the ones you love or have questions about how the Corporate Transparency Act might affect you, schedule a free call today.

We can’t wait to serve you now and for years to come.

Small Businesses Will Need to Report Under New Corporate Transparency Act

Fri, 14 Jul 2023 13:27:26 GMT

If you’re a small business owner, you’ve probably been enjoying the privacy and simplicity that owning a small company affords you. (I mean, who will really notice if you take a half-day on Friday or forget to have an annual shareholders' meeting?)

Aside from the flexible vacation you get as the owner, holding your business privately means that you can keep a level of anonymity in your business dealings, such as holding real estate or other investments in the name of your business, and keeping your personal assets separate from your business in the event either you or the business are sued.

But in 2024, small businesses will lose some of that privacy. Beginning January 1, 2024, the Corporate Transparency Act will require small businesses to file an annual report on the majority owners of the business, and failing to file the report comes with real consequences.

So what exactly does this mean for you and your business? Keep reading to learn more.

What Is the Purpose of the Corporate Transparency Act and What Does It Require?

The Corporate Transparency Act was enacted in 2020 and officially goes into effect on January 1, 2024. The Act was created to help the federal government root out money laundering schemes and terrorism financing efforts through “shell” corporations -companies that don’t actually perform an active business or trade.

Under the Corporate Transparency Act, small companies will now be required to disclose the names of any owners who own 25% or more of the company and any members of the company who have “substantial control” over the company’s activities.

By documenting the owners of small companies, the government hopes to better identify shell corporations involved in money laundering, as most money laundering happens through small companies, rather than large corporations.

In order to comply, a business must file an annual report with the following information on each owner or controller of the business to the Financial Crimes Enforcement Network (FinCEN):

● Business name

● Current business address

● State in which the business was formed and its Entity Identification Number (EIN)

● Owner/controller’s name, birth date, and address

● Photocopy of a government-issued photo ID (such as a driver’s license or passport) of every direct or indirect owner or controller of the company

Failing to file an annual report could result in serious repercussions, from paying a fine of $500 for every day the report is late up to imprisonment for two years.

Do All Businesses Need To Comply?

The Corporate Transparency Act is broadly written, so almost every small business will be required to comply with the new reporting rules - but not all.

Let’s break it down…

The new rule applies to any company that is created by filing a formation document with the Secretary of State or a similar office, such as corporations and limited liability companies (LLCs).

And if you have an LLC or corporation you created but aren’t actively using to run a business, that company is also exempt due to its inactivity.

Your Partner for Staying in the Loop

Being a small business owner is incredibly rewarding, but it can also be difficult to stay on top of reporting requirements and other changes in the law because you don’t have the manpower or the time to keep track of everything.

That’s where we come in. we help businesses stay up-to-date on their requirements, and make sure your company has everything it needs for real success, from a strong foundation to a plan for sustainable growth, no matter what stage your business is in.

If you aren’t sure if your company is required by the Corporate Transparency Act to file an annual report, give us a call. I’d be happy to review your situation and learn more about your vision for your business.

And if you want to make sure your business is set up for long-term success, ask me about how together we can make sure your Legal, Insurance, Financial, and Tax systems are in good shape.

Schedule a free call today to get started.

Vacation Ready: Essential Legal Preparations for a Worry-Free Getaway

Fri, 07 Jul 2023 19:27:33 GMT

Vacations are a time to relax, unwind, and create beautiful memories with your loved ones. But before you set off on your adventure, it's essential to ensure that your legal affairs are in order so you can fully relax during your travels.

Can’t imagine doing one more thing before you take some much-needed time away?

Don’t worry! We’re here to guide you through these important tasks, so you can enjoy your vacation worry-free. Plus, these steps only take a little time to complete and can provide you with peace of mind knowing that you have made proper arrangements if the unexpected happens to you or your family while you’re away.

Let’s dive in! (No pool puns intended!)

1. Create Powers of Attorney

Whether you’re traveling overseas or just a few hours away, it's crucial to have Powers of Attorney in place for both health care and financial matters before you leave.

A Healthcare Power of Attorney designates someone you trust to make medical decisions on your behalf if you become incapacitated during your vacation. While no one plans to become incapacitated, a slip on the diving board, an injury while boating, or a parasite caught from local cuisine (eek!) can happen.

Similarly, a Financial Power of Attorney empowers a trusted individual to manage your financial affairs for you. With a Financial Power of Attorney, you can give someone the authority to manage your investments or pay your bills away while you’re gone, or just have it as a safety net in case you become incapacitated or can’t be reached while traveling.

By having these documents prepared ahead of time, you can ensure that no matter what hiccups you run into on your travels, your wishes for your health will be respected and your financial affairs will be handled according to your instructions, even when you're away.

2. Nominate Permanent Legal Guardians for Your Kids

As a parent, naming a Permanent Guardian for your children is one of the most important decisions you can make. While it's a difficult topic to consider, designating a Permanent Legal Guardian ensures that your children will be cared for by someone you trust if the unexpected happens while you're on vacation.

It’s a good idea to take a little time to choose someone who shares your values, loves your children, and is willing to take on the responsibility of raising them. However, anyone you trust to raise your kids is a better choice than leaving the decision up to a judge who doesn’t know you or your family.

By documenting your chosen Guardian, you make sure your children will be cared for by someone who loves them and knows them if the unthinkable happens to you, and you can always update your choice at any time in the future as your children and their relationships change over time.

3. Designate Short-Term Caregivers for Your Kids

In addition to naming a Permanent Guardian, it's equally crucial to designate short-term Short-Term Legal Caregivers for your children. Short-Term Caregivers step in when the Permanent Guardian lives far away, or in case of a short-term, immediate emergency.

You can give multiple people the authority to be your child’s Short-Term Caregiver, including relatives, neighbors, or nannies. When planning a vacation, it’s a good idea to name any adults who your child will be staying with while traveling with you or staying home.

For example, if your child is spending the week at their grandparents’ house, you should name their grandparents as Short-Term Caregiver and give them medical Power of Attorney for your minor child. If your child is traveling with you, naming any adult travel companions as Short-Term Caregiver and giving them medical Powers of Attorney is a wise choice in case a Caregiver or Medical POA is needed for your child while on your trip.

Discuss this arrangement with the individuals you've chosen and make sure they’re aware of their roles and responsibilities. By establishing Short-Term Caregivers and Medical POAs, you can ensure that your children are well-cared for in the event of an emergency.

4. Tell the People You Trust About Your Plans

Last but not least, make sure that the people you trust know about your travel plans and the preparations you’ve made, including where you’ll be staying and how to get in contact with you.

Let them know about any legal documents you've put in place, and how to access them if needed. Share this information with your chosen Guardians, family members, and close friends. By keeping everyone in the loop, you can ensure that your wishes are known and your loved ones can act swiftly and effectively in case of an emergency.

You should also provide your loved ones with my contact information in case they need copies of your Powers of Attorney or kid’s Guardianship documents or need them delivered digitally.

Estate Planning for The Life (And Vacation) You Deserve

As you pack your bags and prepare for your vacation, don't overlook the importance of handling your legal affairs. Taking the time to create Powers of Attorney, Permanent and Short-Term Legal Caregivers for your children, and communicating your plans to trusted individuals can provide you with peace of mind and save your family incredible stress if there’s an emergency while you’re away.

To ensure that these documents are prepared correctly and in accordance with your state's laws, I encourage you to contact us. We start by guiding all of our clients through a unique process we call the Family Wealth Planning Session. During the Session, I get to know you and your family on a personal level and review exactly what you own and who you love to make sure everything and everyone is protected and cared for in the best way possible when you pass away or if you become incapacitated.

And if we find that things wouldn’t go the way you wanted if something happened to you, we can help you create a custom estate plan that leaves no rock unturned.

Don't let the joy of vacation be overshadowed by the “what if’s.” Contact us today for a free 15-minute call to learn more.

Capturing the Stories of Aging Loved Ones: The Power of a Family Wealth Legacy Interview

Fri, 30 Jun 2023 00:03:22 GMT

We should all take the time to reflect and appreciate all the things the seniors in our lives have done for us. Whether they are our parents, grandparents, or elderly friends, our seniors have given us so much over the years. But sometimes seeing your loved ones aging or seeing how you’ve aged yourself may remind you of how quickly time passes and how much you wish you could pause life.

When you think about a loved one who has passed away, you probably don’t give much thought to the material things they’ve left you. Maybe you have a piece of their clothing that you sometimes hold close to your heart or a favorite item of theirs displayed proudly on a shelf. But what you value most about that object likely isn’t its monetary worth but the memories it evokes of your loved one and the time you spent together. You wish you could still hear from them, learn from them, and share memories with them.

I know the value of planning for what happens to your financial assets. But I also know that there is something even more valuable to pass on to your loved ones than money – your stories, lessons, insights, and values. While we might not be able to pause time, there are things we can do to preserve the precious memories and lessons of the people we love.

That’s why I offer a unique service to my clients called a Family Wealth Legacy Interview to help preserve your unique legacy for future generations. The Family Wealth Legacy process is built into all of our plans, and it’s an opportunity to share your love with the ones you care about most, and if you have aging parents or grandparents, the Family Wealth Legacy Interview is an even more important way to preserve their stories and create a cherished memory of their legacy for years to come.

What to Expect During Your Family Wealth Legacy Interview

Family Wealth Legacy Interviews are a key part of my Life & Legacy Planning process. If the idea of giving an interview sounds intimidating, don’t worry – the process is an easy conversation, and most of my clients tell me that their Family Wealth Legacy Interview was their favorite part of the estate planning process and a heart-touching experience.

During your Family Wealth Legacy Interview, we’ll ask you a series of helpful questions and prompts that we plan in advance. Or, you can talk freely about whatever you’d like to share with your loved ones. It’s your interview, so I encourage you to be your authentic self and make it your own. We’ll be there the entire time to guide you through the process.

We’ll record your interview on video, either in-person or remotely, depending on your preference. After the interview is completed, we’ll edit the footage and provide you with a digital recording that can be shared with your family members or kept with your estate planning materials as a special memento of your story and your love for your family.

We’ve built this into all of our plans because we find that while everyone says they intend to document stories and write letters to their loved one’s, very few people ever actually get around to it.

Starting the Conversation with Your Loved Ones

Talking to your aging loved ones about estate planning and the legacy that they’ll leave behind can be difficult or uncomfortable for a lot of people. We all deal with the concept of aging and dying differently. Some of us avoid the topic altogether, and others will make light of it and even joke about “kicking the bucket.” But it’s important to have a conversation about your elder’s wishes and how much it would mean to you for them to plan ahead.

If you aren’t sure how your loved one will respond to the topic, try to come from a vulnerable place, and not from a place of any sort of judgment if they joke about death. Instead, remember that they’re joking because they might be afraid.

Try saying something like, “I know this might be hard to talk about, but it’s something that's really important to me. If something does happen to you, I want to make sure that we're able to take care of you, and I know that you wouldn't want to leave us with a big mess.”

You could also let your loved one know how much you value them, and how much it would mean to you for them to create a Family Wealth Interview so that you have a recording of them as they are right now before illness or incapacity are even a part of the picture.

By approaching the conversation in a vulnerable way, they’ll likely be more receptive to the idea of planning for their assets and more intentional in how they leave their legacy behind for the ones they care about.

Bringing Families Closer Together

Besides preserving a message for your loved ones, the Family Wealth Legacy Interview is a great time to reconnect with the moments and memories from your life that you might have otherwise forgotten.

In today’s hectic world, it can be hard to live in the moment, but by taking a little time to reflect on where your life has taken you, you’ll remember all that you’ve accomplished and all that you want to share with your loved ones, not just in your Family Wealth Legacy Interview, but every day.

Even after the interview is finished, you’ll likely live your life with more intention and awareness of how you want to pass on your values, insights, stories, and experiences in your day-to-day life. And if a senior member of your family is completing their Family Wealth Legacy Interview, you can feel at ease knowing that no matter what the future holds, you’ll always have a video of your loved one sharing their stories, their hopes, their jokes, and their love with you.

The Importance of Life & Legacy Planning

The Family Wealth Legacy Interview is a wonderful tool for seniors and their families, and I offer it as a complementary service to all of my estate planning clients, young and old. It's part of my comprehensive Life & Legacy Planning process, which goes beyond creating documents and takes a holistic approach to planning for a life you love and a legacy you’re loved ones will cherish forever.

At the core of Life & Legacy Planning is the understanding that your family's most precious wealth is not money, but the memories you make, the values you instill, and the lessons you pass down. By planning for your life and legacy, you can ensure that your family's wealth is preserved and protected for generations to come.

I believe that Life & Legacy Planning is not a one-time event but an ongoing process because it mirrors the ongoing process of your life. By working with an attorney who knows you and has a relationship with you, you make your Life & Legacy Planning as effective as possible and have the opportunity to continue to record your values and wisdom in additional Family Wealth Legacy Interviews as life goes on.

Whether you are growing your family or well into retirement, I work with you to create a plan that evolves over time and adapts to changes in your life and family circumstances.

If you want to pass on more than money to the ones you love and leave them with an even greater gift that they will treasure for generations, give me a call. And if you have a senior loved one, contact me today to see how I can help them not only make a plan for their assets but capture the love and memories they share with you.

Want to Grow Wealth? Warren Buffet's Unexpected Investment Advice

Thu, 29 Jun 2023 23:31:31 GMT

If you are going to take investment and estate planning advice from anyone, Warren Buffett is likely one you want to consider. As one of the most successful investors in history, his track record speaks for itself. However, his wisdom goes beyond picking stocks and making money.

At this year’s Berkshire Hathaway annual shareholder meeting, Buffett shared several pieces of financial advice but also provided insights on the importance of personal growth and estate planning when seeking to grow wealth. While many of us may feel overwhelmed by the thought of estate planning or building our wealth, Buffett's advice reminds us of two key but simple steps we can take to create financial and generational wealth.

Focus on Your Human Assets to Build Your Wealth and Your Legacy

In almost every interview Buffett provides, he stresses the importance of investing in yourself. “The best thing you can do is to be exceptionally good at something," said Buffett. "Whatever abilities you have can't be taken away from you. They can't actually be inflated away from you. So the best investment by far is anything that develops yourself, and it's not taxed at all."

Your earning power is the greatest determiner of your financial well-being, and the one thing you can count on no matter what’s happening in the external economic environment. If you have a highly valuable skill, and you know how to get paid well for that skill, market your services, and sell your services to those who need them, you’ll never have to worry about money. That doesn’t mean you won’t worry about money; but it does mean you don’t have to worry about money.

If you don’t have a highly valuable skill or if you have a skill that will soon be replaced by AI, that’s the first place for you to invest. You may need to get retrained, or uplevel your skills to be more human or relational so you can use AI, but not compete with it, and all that may take investment. Don’t shy away from investing in additional training to get even better at your service, or even get the additional support to learn to market and sell your services. Those investments will always pay off whereas the stock market is out of your control.

Investing in yourself not only leads to financial success but also personal fulfillment and a clear sense of purpose that will organically become your legacy. At the end of the day, you likely won’t be remembered for your financial success (though it’s a nice bonus if you are!). Even Warren Buffett, who is renowned for his wealth and investment skill, is even more often acclaimed for his wisdom, humility, and generosity than for his money.

Raising Kids Well is Key in Effective Wealth Planning

During a Q&A session with an estate planning attorney, Buffett stressed the importance of talking to your children about your estate planning well before your death. Buffett stated, “If the children are grown when the will is read to them and it’s the first they’ve heard about what the deceased thought about things, the parents have made a terrible mistake.”

Leaving your family in the dark about your personal and financial wishes until you die or become incapacitated due to an accident or illness can lead to large amounts of confusion and conflict among family members. If you don’t want to leave a mess, don’t wait to talk to the people you love.

As we recommend and build into our Life & Legacy Planning Process, Buffett recommends involving your heirs in the planning process. By doing so, you can ensure that everyone is on the same page and that your wishes are understood and respected far in advance. Additionally, this provides an opportunity to discuss your values and beliefs with your heirs, which can have a lasting impact on their lives. Buffett expressed that if you really want your heirs to act responsibly with their inheritance, you must live out your values and instill them in your heirs.

How to Start the Conversation About Estate Planning With Your Heirs

So how do you start the conversation about estate planning with your heirs? We recommend you do it directly and with an invitation to meet with you and your lawyer together. This is something we love to do with our clients, and we’d love to support your family in this way too. You might say something like: "I want to make sure that we're all taken care of, both now and in the future. That's why I'd like to talk to you about my wishes for our family resources, and how we can ensure that everything is handled smoothly when I can’t be here."

If your loved ones aren’t immediately open to having a conversation about estate planning with you or are resistant to how you want your assets managed after your death, don’t worry. Talking about estate planning can be uncomfortable at first, but as you normalize the topic, the conversation will become easier and more open.

Or, if you are worried that filling your heirs in on what they’ll receive will cause harm, please call us. This is a place we can really help by supporting you to get prepared to have a conversation with your heirs and also supporting them to be ready to receive their inheritance.

When you talk money and inheritance with your heirs during your lifetime, you have the opportunity to truly pass on not just the money, but your values too. If you wait until you are incapacitated or have died, it’s simply too late.

Finally, if you are the future heir of a parent who has not yet talked with you about estate planning, you can jumpstart the conversation by getting your own planning done, and then talking with your parents about the choices you made, why you made them, and letting them know you’d like to help them feel comfortable talking to you about the choices they are making. If you aren’t sure how to handle any of this, please reach out.

Thoughtful Guidance to Build Your Personal and Financial Life and Legacy

Warren Buffett's advice on building and preserving wealth is timeless and valuable no matter the size of your family or your estate. By involving your heirs in your estate planning and investing in yourself, you can set yourself and your loved ones up for long-term financial success and create a legacy that spans not only through your life but through the generations that follow you.

If you aren’t sure where to start or how to talk about your wishes with your family, give me a call. I’d be happy to guide you and your loved ones through the process of creating an estate plan that focuses on the needs and hearts of everyone it involves, so you can build a life you love today knowing that your loved ones and your community will be impacted by your legacy for years to come.

To learn more about my heart-centered approach to estate planning, click this link to schedule a 15-minute discovery call to learn about my Family Wealth Planning Session process.

Why "Just A Will" Is Never Enough

Wed, 14 Jun 2023 13:45:00 GMT

When you think of estate planning, a Will is usually the first thing that comes to mind. In fact, most people who contact me tell me they don’t need anything complicated for their estate- just a Will. Indeed, Wills have a reputation as the number one estate planning tool and can be seen all over TV shows and movies, from the dramatic “reading of the Will” (which rarely happens in real life) to characters plotting how best to defraud their billionaire uncle’s Will in order to inherit his lavish estate.

But although Wills are a key part of your estate plan - and a big part of the movies - relying on a Will alone won’t solve your estate planning needs - no matter what Hollywood says. Instead, using just a Will to plan your final wishes is likely to leave your loved ones with an expensive mess that won’t distribute your assets in the way you intended.

What’s more, a Will alone won’t ensure that you’re taken care of in the event of incapacity, and contrary to what you might think, relying on only a Will actually guarantees that your family will need to go to court when you die.

If you don’t want to leave your family with a mess if something happens to you, it's important to know how a Will works and when it can be used to benefit you and your family.

What Exactly Is a Will and How Does it Work?

A Will is a written document that directs how the creator of the will wants their possessions disposed of after their death. The creator of the Will is called the testator or testatrix. In your Will you can name someone you trust to manage the distribution of your assets, called your personal representative or executor. You can also write out what you want to have happen to your property, what charitable gifts you want to make, and who will receive them.

A Will can be a complex document or a very simple document. In some states you can even write your Will on a napkin if you really want to!

With that said, a Will isn’t a legally binding document unless it’s executed according to the laws of the state where you reside. In general, you need to sign your will in front of witnesses, and a notary.

Some states have laws that allow you to create a Will that isn’t witnessed at all so long as it is handwritten by the testator themselves. But because every state has different laws for the creation of a Will, it’s important to consult with an experienced estate planning attorney (like me) to create your Will rather than trying to write your own.

A Will Requires Probate Court

One of the biggest estate planning myths I hear from clients is the belief that by having a Will, their loved ones won’t need to go to court after they die.

This is sadly the opposite of the truth.

If you use only a Will as your main method of estate planning, you are actually guaranteeing that your loved ones will go to court after you die because a Will is required by law to go through the court system called probate before any of your assets can be distributed. In fact, a will is only effective within the probate court.

Once your Will is admitted to the court after your death, your personal representative or executor will be given official authority to move your assets under the court’s supervision. This ensures your property is distributed according to your wishes and that the court can intervene if there are any disputes over who gets what.

While court oversight can be helpful if there is any confusion or disagreement about your estate, the probate process is long and expensive. For very small estates the process may take about 6 months, but for most estates, the process can take 12 - 18 months or sometimes even more.

Due to the length and complexity of the process, going through probate can easily cost your family tens of thousands of dollars. Some states even require that probate cost a certain percentage of your estate’s value.

In addition, because probate is a public court proceeding, your Will becomes part of the public record upon your death, allowing everyone to see the contents of your estate, who your beneficiaries are, and what they’ll receive. Unfortunately, it’s not uncommon for scammers to use this information to try to take advantage of young or vulnerable beneficiaries who just inherited money from you.

A Will Does Not Apply to All of Your Assets or All of Your Needs

Although movies make it seem like you can and should leave all your property to your loved ones through your Will, a Will actually only covers certain items of your property, including any property owned solely in your name and any property that doesn’t have a beneficiary designation.

A Will does not cover property co-owned by you with others listed as joint tenants or owned as marital property, meaning you can only give away your share of any property you own with others, not the entire property.

Any assets that have a beneficiary designation, like retirement accounts or life insurance, are not controlled by your Will at all but will instead be paid out to the person listed as your beneficiary on each account. Because of this, it’s especially important to make sure your account beneficiaries are up to date.

In addition, a Will has no power until you die, so you can’t use it to give someone you trust the power to make decisions for you if you’re incapacitated due to illness or injury. Even if you named someone in your Will to manage your estate or watch over your children, that person will have no authority to do so while you’re alive.

Don’t Just Get a Will, Get an Estate Plan

With all the issues that using a Will for estate planning can create, you might be wondering why a Will is even used at all. The thing is, a Will isn’t the one-and-done solution that most people are led to believe by TV shows and even some lawyers.

Instead, a Will should be used as a piece of your overall estate plan , not as the entire plan itself. And ideally, your Will shouldn’t even need to be used at all.

How can that be? Well, an estate plan isn’t just one or two documents - it’s a range of tools and coordinated planning that makes sure everything and everyone you love is taken care of.

And by using better tools like a Trust instead of a Will as your main tool for estate planning, you can direct what happens to your property while avoiding probate court entirely and ensuring the people you trust can step in and manage your assets immediately if you become incapacitated because of an illness or injury.

In addition, any assets you put in the name of your Trust are entirely private, meaning the court and the public will never know what you own or who will inherit it after you’re gone.

When using a Trust-based estate plan, you’ll still have a Will, but your Will should only need to serve as a backup and safety net to make sure that any assets that are accidentally left out of your Trust at your death are added back into your Trust.

And, even more important than both a Will and a Trust, is an inventory of your assets so your family knows what you have, where it is, and how to find it when you become incapacitated or die. Without an inventory of your assets, your family will be literally lost when something happens to you. A comprehensive inventory updated throughout your lifetime is a critical, and often overlooked, piece of an estate plan that is not “just a Will”.

If you’re ready to see how having an estate plan for your family is different than having “just a Will,” schedule your Family Wealth Planning Session today. During the session, we’ll review an inventory of everything you have and everyone you love, and together look at what would happen to your possessions and loved ones when something does happen. Then, I’ll help you develop a plan to make sure your loved ones are taken care of when you can’t be there and that your plan works for you, and for them, exactly as you want it - at your budget and within your desires.

Most importantly, I don’t just create documents - I guide you and your family through every step of the process, now and at the time of your passing. I even help all of my clients pass on something more valuable than their money - their values, stories, and wisdom - through a Family Legacy Interview.

To get clear on what you really do need for yourself and the people you love, click this link so you can get on the road to your Family Wealth Planning Session today.

Garn–St Germain Act: What You Need to Know

Wed, 07 Jun 2023 13:30:00 GMT

It is important to let your estate planning attorney know if you own real estate that is subject to a mortgage. Most mortgages include due-on-sale clauses stating that, upon the transfer of the mortgaged property, the entire amount of the debt owed on the mortgage is immediately due and payable. Under the Garn–St Germain Depository Institutions Act of 1982 ^[1] (Garn–St Germain Act), lenders are prohibited from enforcing due-on-sale clauses in some circumstances but not in others. If your estate plan involves the transfer of property subject to a mortgage, it is important to keep this in mind.

What Is the Garn-St Germain Act?

The Garn–St Germain Act is a federal law that allows lenders to enter into or enforce contracts, including mortgage agreements, that contain due-on-sale clauses even if a state’s constitution or laws, including their judicial decisions, prohibit them. However, the Garn–St Germain Act lists nine situations in which due-on-sale clauses are not enforceable, including some transfers that may be relevant to your estate plan. In the nine situations specified, lenders may not enforce due-on-sale provisions in real property loans “secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation, or on a residential manufactured home.” ^[2]

This generally means that the statutory exceptions apply to due-on-sale clauses in mortgages on residential—not commercial—real estate with less than five apartments. Although we will not cover every situation involving mortgages on residential real estate in which lenders are not permitted to enforce due-on-sale clauses, the following exceptions are especially relevant when you are creating or updating your estate plan:

A transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety. Many spouses and other individuals co-own their homes or other real estate. In a joint tenancy, two or more co-owners (not necessarily spouses) of real property have equal rights and responsibilities and a right of survivorship, meaning that if one of the co-owners dies, their interest disappears and the other co-owners’ interests automatically and immediately increase proportionally. A tenancy by the entirety is only permitted in some states and is generally available only to married couples. Neither of the married co-owners may sell the property or obtain a mortgage without the consent of the other. Similar to joint tenants, tenants by the entirety have a right of survivorship, so if one spouse dies, the surviving spouse automatically becomes the sole owner of the property. When one of these two types of co-ownership exists, a lender may not enforce a due-on-sale provision upon the death of one of the co-owners.

A transfer to a relative resulting from the death of a borrower. This situation involves the transfer of real property when one or more relatives inherits it after the borrower’s death. As long as the beneficiaries are relatives, the due-on-sale clause will not be enforced.

Transfer to a spouse or child during the owner’s lifetime . If someone who owns property subject to a mortgage transfers it during their lifetime to their spouse or child, the due-on-sale clause may not be enforced. This could be a transfer of the owner’s entire interest in the property or a partial interest to establish joint ownership, such as a joint tenancy mentioned.

A transfer to an inter vivos trust in which the borrower is and remains a beneficiary that does not relate to a transfer of rights of occupancy in the property. An inter vivos trust is a trust that is created during the lifetime of the grantor (the creator of the trust) as opposed to at the grantor’s death. There are a couple of somewhat complicated but important elements to consider regarding this exception:

(1) The borrower is and must remain a beneficiary of the inter vivos trust. In the case of a revocable living trust (RLT), a grantor is often also the beneficiary of the trust: the trustee simply holds the property in trust for the benefit of the grantor. In many cases, the grantor is also the trustee. An RLT may be revoked or modified by the grantor at any time during the grantor’s lifetime, and is useful for many people because it enables them to enjoy their property as if they still owned it. The trustee is authorized to manage the property for the grantor if they become incapacitated during their lifetime, and holding the property in the trust avoids probate proceedings by enabling the property to pass according to the terms of the trust, maintaining privacy and avoiding delays and costs. Because the grantor often remains the beneficiary of an RLT, this requirement of the Garn–St Germain Act is frequently (although not always) satisfied in situations involving transfers to RLTs.

Irrevocable trusts, that is, trusts that generally cannot be revoked or changed once they are created, are often created to minimize estate taxes or protect the property held by the trust from creditors’ claims. To achieve these benefits, the grantor is often not a beneficiary of an irrevocable trust—and if the grantor is not a beneficiary, the lender may not be precluded by the Garn–St Germain Act from enforcing a due-on-sale clause when the property is transferred to the irrevocable trust. ^[3]

(2) The borrower may need to occupy the property. Unfortunately, it is not completely clear whether the individuals who transfer real property to a trust during their lifetime need to occupy the property. The Garn–St Germain Act does not require occupancy of the property being transferred to an inter vivos trust, but simply mandates that the transfer does not relate to a transfer of the rights of occupancy in the property. However, the regulations issued by the Office of the Comptroller of the Currency to implement the Garn–St Germain Act state that the borrower must remain an “occupant of the property.” ^[4] Because of the lack of clarity, it may be prudent to comply whenever possible with both requirements to ensure that the lender is prohibited from enforcing the due-on-sale clause.

We Can Help

Estate planning often involves transfers of real estate, either during your lifetime to a trust or family member, or at your death. Fortunately, if the property is subject to a mortgage, the Garn–St Germain Act will prevent the lender from enforcing a due-on-sale clause in many situations, especially transfers to family members. However, it is important to be cautious to avoid missteps that could result in a mortgage unexpectedly being called due. Obtaining lender approval in writing before transferring real estate with a mortgage is advised.

Call us at (913) 451 6936 to set up an appointment so we can help ensure that your estate plan achieves your goals for your real property and does not include any unpleasant surprises.

^[1] 12 U.S.C. §1701j-3.

^[2] 12 U.S.C. §1701j-3(d). The regulations implementing the Garn–St Germain Act, Preemption of State Due-on-Sale Laws, 12 C.F.R. §§ 191.1-191.6 (2018), https://www.govinfo.gov/content/pkg/CFR-2018-title12-vol1/xml/CFR-2018-title12-vol1-part191.xml , use the word “home” instead of a “residential real property containing less than five dwelling units” as stated in the text of the Garn–St Germain Act. 12 C.F.R. § 191.5(b). Those regulations also state in 12 C.F.R.§ 191.2(e) that the word “home” has the same meaning as provided in 12 C.F.R § 141.14, which states: “The term home means real estate comprising a single-family dwelling(s) or a dwelling unit(s) for four or fewer families in the aggregate.”

^[3] There is some authority indicating that a right of occupancy will be deemed to be a beneficial interest sufficient to satisfy the statute. Daley v. Sec’y of the Exec. Off. of Health and Hum. Servs., 477 Mass. 188 (Mass. 2017).

^[4] Preemption of State Due-on-Sale Laws 12 C.F.R. § 191.5(b)(1)(vi)) (Jan. 1, 2018), https://www.govinfo.gov/content/pkg/CFR-2018-title12-vol1/xml/CFR-2018-title12-vol1-part191.xml . Although one case found that the OCC had exceeded its authority in requiring the borrower to be an occupant of the property to maintain the Garn St Germain protections, the case may not be considered by some courts because it was unpublished. Baldin v. Wells Fargo Bank, N.A., 2013 WL 794086 (D. Or. Feb. 12, 2013).

Create a Stronger Blended Family Through Estate Planning

Wed, 31 May 2023 13:10:00 GMT

Blended families were once considered “non-traditional” families, but today, blended families are becoming just as common as non-blended families. Currently, 52% of married couples (or unmarried couples who live together) have a step-kin relationship of some kind, and 4 in 10 new marriages involve remarriage.

If you’re part of a blended family, you’ve probably recognized the extra layer of complexity that comes with planning for your family’s needs and accommodating the many relationships that exist between step-parents, step-kids, and step-siblings. Topics that might be straightforward for a “traditional” family - such as where to spend the holidays or who gets the old family car - are more complex.

Feelings tend to be more sensitive, as the person in a “step” role may feel self-conscious about their place as the “outsider” of the family, whereas on the other hand, one parent’s children may feel put out by the addition of a new step-parent, step-sibling, or half-sibling when their mother or father remarries.

In a blended family, you work hard to navigate these complexities to keep the family unified and happy. But what you might not know is that our laws for what happens if you become incapacitated or die are still very much based on the traditional family model, which means that your blended family will likely end up in court and conflict without planning for them in advance.

Avoid Conflict in Your Blended Family Through Open Communication

Estate planning is often seen as a highly private affair, but it doesn’t have to be, and oftentimes, shouldn’t be. In the case of a blended family, having open conversations with your loved ones about your estate plan and your goals for the family can save them from hurt feelings and even court battles in the future.

Like all families, how you plan for your blended family will depend entirely on your family dynamics, your family members' situations, and your own personal values for how an inheritance should (or shouldn’t) be received and what kind of legacy you want to leave behind.

Maybe you have step-kids and biological kids but want all of your children to inherit an equal share from you and your spouse. Maybe there’s a large age gap between your step-kids and biological child, so you want to make sure that your youngest has the financial support they’ll need if something happens to you whereas the older children are able to support themselves.

Maybe you have a step-parent or step-sibling that you would want to gift a special item of yours like a watch or necklace. Well, for better or worse, a person you have a step-relationship with has no right to inherit from you under the law, unless you put your plan in writing.

You don’t need to give away every detail of your Will or Trust, or tell everyone who you named to make decisions for you if you’re incapacitated. Instead, start by having an open conversation about the general goal of your estate plan, such as wanting everyone to have an equal share, or that you want to provide more for your biological children because your step-children will already receive a full inheritance from their other parent.

By taking the mystery out of your estate plan goals, your stepchildren will feel included in the discussion and feel like they are knowledgeable about your plan rather than feeling hoodwinked or hurt if they find out later that your plan doesn’t align with the expectations they created for it in their minds.

Most importantly, let the people in your life know you value and love them, and that no matter how they’re related to you, you care about them and want them to inherit not just material things from you, but also your values, stories, and legacy.

Create More Than a Plan, Create a Family Legacy

To make sure your wishes for your blended family are followed in the event of your death or incapacity, it’s essential to have a well-crafted estate plan created by an attorney experienced in serving blended families. I know all too well the importance of planning for blended families and can help you navigate your options and desires for your family’s plan.

But what really sets me apart from other estate planning lawyers is that I know that your material possessions are only a small part of a successful estate plan. What will really matter to your family members, no matter how they became your family, is your legacy.

Instead of leaving your family a mess to be battled over in court, leave your family an example of financial wellness, of a plan filled with personal values and family history.

To do this, I include what I like to call a Family Legacy Interview with all of my estate plans. During this interview, I give you the opportunity to leave your most important assets - your values, stories, and heart - to your family in a meaningful way that they’ll cherish for years after you’re gone.

And for a blended family, the Family Legacy Interview can be even more valuable, because it gives you the opportunity to really speak to your loved ones about the plan you created for them and how much you value the place they hold in your heart.

If you want to protect your blended family from a court battle and emotional conflict, give me a call today to schedule a Family Wealth Planning Session. During the Session, I take the time to really get to know you and your family’s unique situation and educate you about what exactly will happen to your family under the law if something happened to you right now, so you can make confident decisions about what’s right for your family. Even more, I welcome you to invite the members of your blended family to be a part of the conversation.

Click this link to schedule your session today.

Are You Single with a Minor Child? If So, You Need a Plan

Wed, 31 May 2023 13:01:53 GMT

You have a minor child who depends on you for their survival, so you need to make sure that they will be cared for if you are ever unable to care for them. By creating an estate plan, you can address your minor child’s care and custody and provide instructions about how your money and property should be used for their care should something happen to you.

Care and Custody of Your Child

Creating an estate plan allows you to name someone to care for your minor child if you are unable. A child under the age of majority (eighteen or twenty-one depending on your state law) cannot legally care for themselves (unless they have been emancipated). A guardian must be appointed to take care of the minor child if both parents have passed away or are unable to care for the child. It is important to note that if the other legal parent is still alive, that parent may receive custody of the child.

However, you need to have a plan in case there is no other legal parent or the other legal parent cannot care for the child. If you do not choose a guardian, the judge will look to state law to determine the appropriate guardian, who may not be the person that you would have chosen.

How do you nominate a guardian?

There are a few different ways to nominate a guardian to care for your child after your death. First, it can be done in a last will and testament (also known as a will). In this document, you can name someone to be your child’s guardian after your death, a person to wind up your affairs (executor or personal representative), and people to receive your money and property, along with any instructions.

Similarly, you may use a pour-over will to name a guardian for your child upon your death. A pour-over will also allows you to name your trust as the beneficiary of any money and property that goes through the probate process. Lastly, some states have a separate document that allows you to nominate a guardian for your minor child. Some people prefer the separate document because they can change guardians without having to update their entire will or pour-over will.

How do you name someone to step in when emergencies arise?

While an estate plan usually focuses on planning for your death, it is also important to plan for the situation in which you are alive but unable to act or make decisions (called being incapacitated), including naming someone to temporarily care for your child. In addition to delegating your parental authority when you are unable to act, this document can be used if you are traveling and need someone to make decisions for your child. It is important to note that this document is only effective for a short period (six months in some states), and your chosen person cannot agree to certain actions, such as the child’s adoption or marriage.

Rules for Your Child’s Inheritance

Who will be in charge?

A minor child cannot handle their own financial affairs (unless they are emancipated); they need an adult. If you pass away without an estate plan, the other legal parent may be in charge of managing the money and property you have left to your child. If the other legal parent is unable to manage your child’s inheritance, then the court will have to appoint someone. An estate plan allows you to name the person you want to control the money and property. Without an estate plan, the judge can only use state law and the people who appear in court to determine who will manage the inheritance.

When and how will your child receive their inheritance?

If you do not have an estate plan, your child’s inheritance will be managed for their benefit until they reach the age of majority, and then it will be given to them outright. Although they will be a legal adult, they may not be prepared for a large influx of money and property. Also, you may have certain things that you want the money to be used for. With a trust, you can draft instructions for exactly how you want the inheritance to be used. You can create a revocable trust or include these instructions in your will (known as a testamentary trust).

The important distinction between these two options is that a will has to be filed with the probate court, and the proceedings will be public and overseen by a judge. A properly drafted and funded revocable trust, on the other hand, can be managed without probate, and no documents need to be made public.

There are many options available to you when crafting instructions for how your child’s inheritance should be managed and distributed. Your minor child can receive a percentage upon reaching a specific age (e.g., 50 percent at thirty years old and the remainder at fifty years old). You can also structure your child’s trust as an incentive trust to allow the trustee to give your child money only after they meet certain goals (e.g., successfully completing postsecondary education, being sober for one year).

Alternatively, you can leave the decision of how and when to give out the funds exclusively up to the trustee’s discretion. This is sometimes referred to as a discretionary trust. Because your child will not be guaranteed a specific amount of money or piece of property, the funds will be better protected from any future creditors or divorcing spouses that your child may have. However, when deciding to use a discretionary trust, it is important to choose your trustee wisely and provide clear guidelines for the trustee to consider.

When considering who to select as the trustee of your minor child’s trust, you can choose a family member who knows your child and understands your wishes. If you do not have family that you would like to fill this role, you can look to your close friends. These people may already be a large part of your child’s life and may understand your wishes. Lastly, if you do not have someone who you would want to serve as a trustee, you can hire a professional trustee, though be aware that professional trustees charge for their services. While all trustees are entitled to compensation, a professional trustee may be more expensive and have set fees.

Although state law will provide your child with a guardian, someone to manage their inheritance, and a distribution plan for their inheritance, this is the least desirable result. You have the power to design an estate plan that is unique to your child’s circumstances and allows you to choose the most trusted individuals to guide them if you are no longer able to. We would love the opportunity to help you create the best plan for you and your child or to update your existing plan. Call us at (913) 451-6936 to schedule an appointment.

4 Ways to Use AI to Make Life Easier for You and Your Family

Wed, 17 May 2023 15:44:02 GMT

Whether you’re turning on the news or scrolling through Instagram, it’s hard not to hear about AI technology, so this week I wanted to take some time to cover what the buzz is about and how you can use this technology to make your own life easier.

AI (artificial intelligence) language models like ChatGPT and Jasper in particular are enjoying the spotlight this year. Essentially, these are online software programs that have the ability to interpret natural language and provide human-like responses. In a nutshell, that means you can type in questions or commands as if you were writing a message to a real person, and the software will produce an equally human-like response.

What has the world buzzing over these programs is their ability to understand and interpret the text you enter into them in the same way a real person would, including an ability to modify its response based on your follow-up questions or commands.

If you think AI technology seems a bit too “sci-fi” for daily use, I’m happy to share that there are a number of ways you can use an AI language model to make your family’s life easier right now, from saving you time, helping you communicate, and even helping you plan that much-needed vacation.

Here are three everyday applications for AI that you’ll want to start using today.

1. Get Help Writing a Tricky Email

I think it’s safe to say that we all have times in our lives when we have to deliver an uncomfortable message via email, text, or phone. Maybe you’re resigning from a job, critiquing someone’s work, or delivering bad news. Whatever the situation might be, it can be stressful to try and deliver a message in a way that clearly delivers your message with the right tone for that situation.

Instead of staring blankly at your email or anxiously picking up the phone, try drafting out your message in an AI language model like ChatGPT or Jasper first.

For example, I typed the following into ChatGPT to get a prompt for approaching an employee about a performance issue:

“Imagine you need to give negative feedback to an employee. This employee is friendly and hard-working but makes many spelling mistakes in the company’s meeting minutes. You want the employee to know that you value having them on your team, but that their accuracy needs to be improved. Write an email that I could send to this employee.”

ChatGPT provided the following sample email that I can use:

“Dear [Employee Name],

I hope this email finds you well. I wanted to take a moment to provide you with some feedback regarding the meeting minutes you have been responsible for drafting. First and foremost, I want to express how much we appreciate your hard work and dedication to the team. You are a valued member of our team, and we are lucky to have you.

However, I have noticed that there have been a number of spelling mistakes in the meeting minutes recently. While I understand that mistakes can happen, accuracy is critical when it comes to recording important decisions and actions taken in meetings. I wanted to bring this to your attention so that we can work together to improve the accuracy of the meeting minutes.

I would like to suggest that you take some extra time to review your work before submitting it to ensure that it is error-free. You might also consider using spell-check or grammar-check tools to assist you in catching any mistakes.

Please know that we have confidence in your ability to improve in this area, and we are committed to supporting you in any way we can. Please feel free to reach out to me if you have any questions or concerns.

Thank you again for your hard work and dedication to our team.”

Not only did the software draft a natural-sounding email, but it suggested ways the employee could remedy the situation. What’s more, you can ask the AI to further modify and refine its previous responses. For instance, you could ask it to rewrite the email with a more empathetic or casual tone, or to shorten the length of the message.

Gone are the wasted hours trying to craft the perfect email for a challenging situation!

Even if you need to communicate with someone over the phone, using an AI language model can help get the conversation off on the right foot by providing you with an outline for how to start the conversation or outlining the points you want to cover.

2. Find the Best Flight Prices Faster

If you’ve ever planned a family vacation, you know how time-consuming searching for flights can be. What seems like an easy enough task on the surface can easily become a days-long marathon of comparing airlines, prices, layovers, seasons, and the difference in travel time if you fly from one city versus another.

Now, thanks to an integration with KAYAK, you can ask ChatGPT questions about your travel plans and ChatGPT will sort through your travel options for you.

For example, you could ask, “What’s the cheapest flight from Fargo to Orlando?” and the software will provide you with the best options that meet your request.

Want a direct flight? You can alter your request by adding, “Show me direct flights only” to further narrow down your options. No need to worry about manners, you can simply be direct and to-the-point with your requests.

Want to compare prices depending on what day of the week? You can ask the software, “What is the cheapest day to fly to Orlando from Fargo in June?”

The KAYAK integration is currently only available for paid ChatGPT subscribers, but plans are underway to make it available in the software’s free version. If you’re anxious to do some traveling and want to try out ChatGPTs KAYAK integration, paid subscriptions are billable based on how much you use the software and include a free five-dollar credit to get you started.

3. Create a Better Resume and Cover Letter

Whether you’re actively looking for a job or wondering how you could improve your resume to increase your chances of a promotion, having a great resume can mean the difference between getting an interview and being passed up. But it can be difficult to write a resume or cover letter that truly conveys the value of what you bring to the workplace without sounding overly self-promoting. Thankfully, using an AI language model like ChatGPT can help flesh out your resume and create a cover letter that will stand out to a company’s hiring manager.

For example, let’s imagine I’m a receptionist for a medical clinic and want to apply for a similar position at another clinic. I’ve written a resume, but I don’t feel confident that it highlights my skills in the role. In this situation, I pasted my skills from my resume into ChatGPT and entered the following instruction:

“Improve this job description for my resume:

● Take patient phone calls and respond to messages

● Schedule appointments based on the provider’s availability

● Help team members with questions

● Follow-up with patients to reschedule canceled appointments”

ChatGPT provided the following improved bullet points:

● Responding to patient inquiries via phone, email, and messages with a friendly and professional demeanor, while providing accurate and helpful information.

● Coordinating and scheduling appointments based on the availability of healthcare providers, while ensuring that patient needs were prioritized.

● Supporting and collaborating with team members by answering questions and providing guidance when needed.

● Conducting timely follow-ups with patients to reschedule canceled appointments and ensure their continued care.

The output from ChatGPT conveys my responsibilities as a receptionist in a more interesting and descriptive way, while also highlighting my skills by showing my focus on patient care and teamwork.

By using an AI language model such as this, you can either start your resume or cover letter from scratch or get tips for how to improve a resume you already have. You can also use the software to customize the same cover letter for different companies, saving countless hours in your job search.

4. Get Help with Your Kids Homework

If you have kids, you know that helping them with their homework can sometimes feel just as tough for you as it does for them. The good news is that you can use an AI language model to walk through homework problems to make them easier for your child - and you - to understand.

All you need to do is type the math problem into the software program and ask for an explanation. For example, I entered the following into ChatGPT:

“Explain how to do this math problem to a 4th grader: 1/2 X 2/3 =”

ChatGPT responded with the following:

“Certainly! We want to find out what happens when we multiply these two fractions together. To do that, we need to multiply the numerators (which are the numbers on top) and then multiply the denominators (which are the numbers on the bottom).

So 1/2 X 2/3 would look like this:

To multiply the numerators, we just multiply the numbers on top: 1 X 2 = 2

And to multiply the denominators, we just multiply the numbers on the bottom:

2 X 3 = 6

So the answer is 2/6!

But we can simplify this fraction by dividing both the numerator and the denominator by the greatest common factor, which is 2. If we divide 2/6 by 2, we get 1/3. So the final answer is 1/3!

That means if we had one whole thing that we cut into two equal pieces, and then we shaded in one of those pieces, and then we took that one piece and cut it into three equal pieces, and then we shaded in two of those pieces, we would end up with 1/3 of the whole thing.”

Pretty helpful, right? Now that was a pretty simple example, but you can even ask more complicated math questions or questions for other subjects as well.

Not only can this help you and your child better understand their homework, but can help eliminate the frustration you two may feel over the daily homework struggle.

More Than Legal Advice - Your Trusted Advisor

By using AI technology, you can save time, communicate more effectively, and plan vacations with ease. I will use AI and other technology in my own practice to create more efficiencies and better service, so I can use my heart and humanity to serve you. I’m here to do the parts of lawyering that can never be replaced by a machine and be a trusted advisor for my clients and their families. I know that life can be hectic and stressful, and I’m here to provide resources that can make your life easier now and in the future.

In that vein, I love learning about new technologies and the ways they can improve our lives. But I also know that technology - no matter how good - can never replace the care and humanity that real people have to offer. To me, the best part about technology is that by saving us time, it frees us up to spend more time connecting with one another.

That’s why when it comes to your legal planning, I offer a Family Wealth Planning Session where I not only discuss how the law affects you and your loved ones, but we truly talk about your life, your goals, and the legacy you want to leave behind, so you can rest assured knowing that your estate plan will work perfectly for you. And by using the best technology and systems to do my work, I’m able to be more available to my clients when they need me most.

If you're interested in learning more about how I serve my clients differently than most lawyers or have questions about estate planning, please don't hesitate to schedule a free 15-minute discovery call with me today here 15-minute discovery call link.

Mental Health Awareness Month - Making Positive Change

Fri, 12 May 2023 13:49:14 GMT

How an Estate Plan Can Help Improve Anxiety

Roughly one in five US adults experiences a mental illness each year. Anxiety disorders are among the most common mental health conditions, affecting nearly one-third of adults at some point in their lives. While anxiety can be generalized and chronic, it can also be a normal reaction to everyday stresses, such as worrying about finances, health, and family.

During Mental Health Awareness Month, people are encouraged to make positive changes that can help them feel better. Anxiety may be rooted in concerns about the future, like what will happen when you pass away or have health problems. Many questions cannot be answered. But that does not mean we have no control over the future.

Procrastination, Anxiety, and Estate Planning

Procrastination and mental health can be closely linked and lead to an increasingly self-defeating cycle. Putting off necessary actions may lead to anxiety, depression, and low self-esteem, which causes further procrastination and more negative emotions. ^[1]

People may procrastinate because they fear an unpleasant outcome, struggle with perfectionism, or feel overwhelmed. Occasional procrastination, like occasional anxiety, is normal. But when procrastination starts to negatively impact your life, causing you to put off important tasks, it may be time to take corrective action.

Experts recommend beating procrastination by taking on the dreaded task, even if it is just in a few small chunks at a time. They also advise getting more organized and, when necessary, seeking professional help.

About two-thirds of Americans have no estate plan. ^[2] That means they have no plan in place for dealing with unexpected tragedies, including death or incapacity.

Many procrastinations have no immediate or tragic consequences. But if you put off your estate plan—and tragedy strikes—it will be too late to get started.

Ways to Act Now and Address Anxiety about the Future

Contemplating death and disability does not have to be a morbid, anxiety-producing exercise. It can be a productive exercise in which unpleasant thoughts are channeled into meaningful actions.

For many unanswered questions you have about the future, there is a related estate planning action you can take to achieve a greater degree of certainty. Below are some of the most common questions we all deal with and ways to take action.

What happens when I die?

Spiritually, this is a question best left to religion or philosophy. But materially, you can specify what happens to your money and property after you pass away using a will or revocable living trust.

● A will is the most basic estate planning document that everybody should have, even if it is very simple. At a minimum, a will should name who will receive your accounts and property (your beneficiaries) and describe the distribution of your accounts and property to them. A will can do much more, though. It can also appoint guardians for minor children, provide funeral and burial instructions, describe how to handle your debts, taxes, and other legal affairs, and appoint an executor to carry out the instructions in your will.

● A living trust is a trust that can hold your money and property for your benefit while you are alive and distribute them to beneficiaries upon your death or incapacity. It is often called a revocable living trust because you can revoke the trust or change its terms during your lifetime. For example, you can move accounts and property in and out of the trust, name a new trustee or co-trustee, and change the beneficiaries. At the designated time (i.e., your death or incapacity), a trustee takes over the trust and manages the accounts and property you placed in it. A living trust, which can only deal with the ownership and management of your accounts and property, is more limited in scope than a will and is best used as a will supplement—not a replacement.

What happens if I am alive but cannot communicate?

Contemplating incapacity can be as anxiety-inducing as thinking about death. The following estate planning tools can ensure that you do not end up in legal limbo due to a mental or physical disorder that renders you unable to manage your affairs or make decisions.

● A revocable living trust (described above) can be written so that it takes effect when you are incapacitated. You can define “incapacity” to specify exactly what triggers a successor trustee to take over management of the trust’s accounts and property. The trust can even lay out the procedures to follow for determining incapacity.

● A financial power of attorney is the legal authority, granted by you to someone else, that allows that other person to manage your financial affairs and property without the need for court involvement. The individual granted a power of attorney can handle bank accounts, pay bills, sell property, run a business, apply for public benefits, pay taxes, make investments, and oversee insurance and retirement accounts on your behalf. They are legally required to act in your best interest.

● A medical power of attorney is the healthcare equivalent of a financial power of attorney. It designates a person who is authorized to make medical and personal care decisions for you if and when you are unable to make those decisions. A medical power of attorney also gives a trusted decision maker the authority to manage your protected health information.

● A HIPPA release lets designated persons access your protected health information. Your medical decision maker may already have this authority through a medical power of attorney, but others may want to be included on a HIPPA release so they can stay informed about your condition.

● A living will describes the types of medical treatment you do—and do not—want to receive to keep you alive, as well as your preferences for pain management, organ donation, and other medical decisions. The use of a ventilator, tube feeding, palliative care interventions, and resuscitation techniques are typically addressed in a living will.

What happens to my children?

An estate plan is not just about your own peace of mind. It can also have a considerable impact on those closest to you. If you have minor children, you need to account for their needs. Several documents can help ensure that your children are taken care of.

● Your will can designate a guardian for your minor children in the event that tragedy befalls both you and the child’s other legal parent. It can also set up a trust and appoint a trustee to manage accounts and property for your children’s support. Careful use of a trust and trustee for this purpose may eliminate the need for a trustee bond (paid to secure performance of the trustee’s duties) and avoid court supervision of a minor child’s inherited assets. ^[3]

● A minor power of attorney lets a parent delegate somebody to take care of their child for a certain period (usually up to one year, depending on state law). The named caregiver is legally permitted to make necessary decisions for the minor, such as decisions about their schooling and healthcare. The parent can give the caretaker complete or limited authority to make these decisions. A minor power of attorney—which does not create a permanent guardianship—can be used as a stopgap if a parent is incapacitated, incarcerated, out of the country, or otherwise temporarily unable to fulfill their parental duties.

● A permanent guardian nomination names a permanent caregiver for a minor child. The nomination can be in a will or a separate signed document. Nominating a guardian for your minor child does not guarantee that that person will end up as their guardian. The court has the authority to appoint a guardian. Usually, they appoint the nominee unless there is a good reason not to. Having a backup guardian is recommended in case the court rejects the primary nominee, or if for some reason they are unable to serve as guardian.

Treat Yourself to Estate Planning This Mental Health Awareness Month

Rewarding yourself is a way to break out of procrastination that may be hindering your estate plan goals. And what better reward is there than taking control of your future?

An estate plan that includes wills, trusts, powers of attorney, medical directives, and guardianship documents can help eliminate some of the uncertainty—and anxiety—that comes with contemplating end-of-life scenarios. You cannot cheat fate. However, you can buy yourself peace of mind with comprehensive estate planning. To start planning now, schedule a meeting.

[1] Why You Put Things Off Until the Last Minute, Mass Gen. Brigham McLean, https://www.mcleanhospital.org/essential/procrastination (last visited Apr. 7, 2023).

[2] Lorie Konish, 67% of Americans Have No Estate Plan, Survey Finds. Here’s How to Get Started on One, CNBC (Apr. 11, 2022), https://www.cnbc.com/2022/04/11/67percent-of-americans-have-no-estate-plan-heres-how-to-get-started-on-one.html.

[3] Introduction to Wills, Am. Bar Ass’n, https://www.americanbar.org/groups/real_property_trust_estate/resources/estate_planning/an_introduction_to_wills/ (last visited Apr. 7, 2023).

Have You Thought Through Your Retirement Plans?

Thu, 04 May 2023 14:12:12 GMT

Beginning your retirement is a great milestone that is worth celebrating. You have put in many years of hard work, and you are now able to focus your energy on the next phase of your life. However, before you begin this next chapter, you need to make sure that you have fully thought through this exciting change in your life.

Things to Consider When Beginning Your Retirement

With this new chapter come certain estate planning issues that you need to consider.

If You Have an Existing Estate Plan

Having a properly executed and legally binding estate plan is a great first step toward ensuring that you and your loved ones are cared for. However, estate planning is not a one-and-done event. It is important that you review your plan every year or so, and especially after major life events such as the beginning of your retirement. When considering your existing plan, ask yourself the following key questions:

● Do you still own the same property or have the same account balances as when your plan was first created? What will the balances be like at your death? Chances are, you put money into investment or retirement accounts during your working years to prepare for this next chapter. While you may have a lot today, you need to be aware that this value may decrease once you start withdrawing from those accounts.

● Does your plan assume that your children or other young beneficiaries are still minors? A birth usually prompts parents to have an estate plan created. However, once it has been drafted, many parents continue living their lives without giving much thought to their estate plan. If it has been some time since your estate plan was created, your then-minor children are likely now adults or approaching adulthood. Your focus may no longer be on choosing the right guardians but on ensuring that your adult children’s needs are properly addressed in your documents.

● Does your plan rely on proceeds from an employer-provided life insurance policy? As part of an employment package, many employers offer life insurance. However, this policy may no longer exist once you are no longer working. If you were relying on these proceeds to provide for your loved ones at death, you will need to explore other options.

● Do you want to change how much your beneficiaries inherit and how they receive their inheritance? Now that some time has passed, are the amounts and ways the money and property are being given still appropriate or possible? For example, imagine that your will or trust provided that $300,000 be held in a trust for your only child’s benefit and then distributed to them when they turned thirty-five. Is it likely that you will have less than $300,000 at your death, and what wishes will have to be sacrificed as a result? Also, if your child is now thirty-five or older, any money and property would be given to them automatically based on the provisions in your documents. Are you still okay with that? Now that your child is older and you have a better understanding of their needs and abilities, you may want to consider changing how they receive the money and property. They may require more than you had originally planned, or perhaps they are successful enough that they would be fine without an inheritance from you.

If You Do Not Have an Estate Plan or Have Not Completed It

Do not procrastinate any longer. The only way to truly protect yourself and your loved ones is to have an intentional and legally enforceable estate plan. To begin thinking about your estate plan, you need to evaluate your new lifestyle and answer questions such as the following:

● What accounts and property do you own? To make sure that we craft a comprehensive plan, we all need to be on the same page about what you own and the value of your money and property. From there, we can help you determine what will happen to this money and property if you are unable to care for yourself and at your death.

● What are the current needs of your loved ones? Based upon your unique situation, you should determine the needs of your loved ones and whether you are able to support their needs during your lifetime (if necessary) and at your death.

● Can you accomplish your goals with what you have? Working with an experienced professional, you can consider the answers to the first two questions and determine how likely it is that you will be able to carry out all of your wishes. Together, we can examine all options and come up with the best possible solution for you and your loved ones.

We are excited to help you celebrate this new chapter in your life. Part of this celebration should include a visit with your financial and estate planning team to ensure that the celebration can continue for many years to come. If you are interested in discussing your existing estate plan or creating your first one, please contact us.

3 Simple Mistakes That Can Derail Your Estate Plan

Thu, 04 May 2023 13:57:25 GMT

We regularly meet with clients who ask us to review an estate plan that they created online or with an attorney who isn’t experienced with estate planning. You see, these clients usually think they found a faster and cheaper solution to estate planning, but once the plan is signed and done, they’re often left wondering whether this “cheap” plan will actually accomplish their goals, or if it will leave their family with a big mess instead. And what I see time and again when I review these estate plans are poorly designed plans with simple but devastating mistakes. What’s more, these clients wouldn’t even realize their plan had these mistakes if they hadn’t met with us!

Here are the three biggest mistakes I see when reviewing DIY and low-cost estate plans:

Leaving Assets Outright to Loved Ones

One of the simplest mistakes you can make in estate planning is distributing your assets directly to your beneficiaries upon your death. This is a bad idea for several reasons:

● The assets have no protection from your beneficiaries’ creditors once they leave your estate

● The money can be squandered and used however the beneficiary wants

● If the beneficiary is a minor, a court will decide who manages the assets and how they’ll be used

Even if your adult child is responsible or has guidance from someone you trust, those assets are still susceptible to any lawsuits, divorces, and unforeseen financial troubles your child may experience in the future.

Not Creating a Lifetime Asset Protection Trust

Forgetting to Update Beneficiary Designations

Estate Planning That Works

Don’t let a simple estate planning mistake derail your plans for your family. Click here to schedule your Family Wealth Planning Session. Your loved ones will thank you for it!

Have You Chosen The Right Trustee?

Thu, 04 May 2023 13:46:43 GMT

Whether you are reviewing your existing trust or creating a new trust, you should understand the important role that a trustee plays not only in handling trust matters but also in providing for and protecting your loved ones.

What is a trust?

A trust is an agreement between an owner of accounts and property (trustmaker) and another person (trustee) who agrees to manage the accounts and property on behalf of a third party (beneficiary). In most situations, there is a written document, called a trust agreement, that lays out the specific instructions or rules that govern the trust relationship.

What is a trustee?

A trustee is a trusted decision maker who is tasked with handling all matters that relate to your trust. Depending on the type of trust, you could be the trustee in the beginning and need someone else to act as trustee only when you are unable to manage the trust, or you could select a trustee to act immediately.

What types of trustees are there?

When creating an estate plan, there are several types of trustees to consider. An initial trustee is the decision maker that immediately starts managing the trust’s accounts and property. You may choose to be the initial trustee if you create a revocable living trust. However, for some types of irrevocable trusts, you will need to select someone else to be the initial trustee.

The successor trustee is the next in line to manage the trust. This person may need to act because the initial trustee becomes incapacitated, dies, or steps down from their role.

You could choose to have one trustee handle the entire trust. You could also choose to name a separate trustee for any subtrusts that you later create. For example, you may name your children as the trustees for the subtrusts that are created for their benefit at your death. In this instance, there may be several trustees acting once the subtrusts are created. However, they will only be responsible for their separate trust and will have no control over other subtrusts that have their own trustees.

What does a trustee do?

Being a trustee involves many different important tasks, including the following:

● Managing accounts and property owned by the trust or subtrust . Although the trust owns your accounts and property, a person needs to carry out most transactions. If the trust owns an investment account, the trustee must watch the investments and request any adjustments that may be needed to ensure the best outcome for the trust and its beneficiaries.

● Keeping the trust beneficiaries informed about the trust. Although the trustee decides how trust accounts and property are used, they do so on behalf and in the best interests of the trust beneficiaries. A trustee is required to periodically inform the trust beneficiaries about the status of the trust—what the trust owns, how much the trust is worth, what income the trust has received, and what expenses the trust has paid.

● Acting as a point person for trust matters . If beneficiaries have questions about the trust, the trustee is usually best suited to answer them. The trustee is also in charge of filing tax returns and participates in any lawsuits involving the trust.

What should you look for when selecting a trustee?

While it may be advantageous for a trustee to be financially savvy or have a background in tax, law, or finance, they are not required qualifications. When considering potential trustees, we recommend looking for someone with following qualities:

● Ability to ask for help when needed . The trustee does not have to be an expert in every area of trust administration. They can get assistance from financial advisors, tax preparers, and attorneys at the trust’s expense to fully carry out their responsibilities.

● Be detail oriented . Trust administration is a process with specific legal steps that must be taken. The trustee will be asked to compile a list of everything that the trust owns and keep accurate records of income and expenses. Being too general with this information can cause tension between the trustee and beneficiaries and could lead to legal action.

● Be organized . Depending on what the trust owns, how many beneficiaries there are, and the trust distribution plan, there may be a lot of moving parts. In addition to managing the trust, the trustee will need to make sure that they do not mix their personal affairs with those of the trust.

● Have good communication skills . Although the trustee has authority over the trust, they are supposed to act in the best interests of the beneficiaries. It is important that the trustee clearly communicate with the beneficiaries, deliver necessary information, and be available to answer any questions that the beneficiaries may have in a timely manner. A trustee must also be able to get along with the beneficiaries.

● Follow rules . State and federal laws, as well as instructions within the trust, must be followed. While a trust may have provisions that allow a trustee to use their discretion in some matters, there are other instances in which the trustee is required to do certain things a specific way. Failing to comply with the rules can subject the trustee to potential civil and criminal penalties.

Who can you choose to be your trustee?

Although the choice of trustee is a very serious matter, you have several options available to you depending on your circumstances and what matters most to you.

● Family members . It is common for clients to select family members (spouse, child, parent, sibling, etc.) to be their trustees. Family members likely have an intimate knowledge of your wishes and values, making trust administration easier if you want to leave decisions to your trustee’s discretion. If your trustee is also a beneficiary, they could choose not to accept any compensation for acting as trustee because they will already be receiving something as a beneficiary of your trust. However, allowing the beneficiary to be the trustee of your trust could jeopardize or limit protection of their inheritance.

● Close friends . Close friends likely understand your values and wishes, making any discretionary decisions easier; however, depending on your family dynamics, your close friends may not want to get involved in any conflicts that arise. Also, if they are not trust beneficiaries, they may want to be compensated for the work they do, which could leave some beneficiaries feeling disgruntled that your trustee is getting money from the trust (even though the trustee is legally entitled to it).

● Professional third party. If protecting your beneficiaries’ inheritances is important to you, a professional may offer additional protection. Because administering trusts is their profession, they will likely understand every step that must be taken and have the tools to efficiently and accurately do so. However, because trust administration is their job, they will require compensation and will inform you of their fee. This amount will likely be higher than what a family member or close friend would seek for compensation.

We understand that you have an important decision ahead of you. We are here to guide you through the decision-making process and answer any questions you may have along the way. Call us to schedule an appointment so we can help you check this item off your to-do list.

Why Everyone Needs To Keep Their Estate Plan Updated

Wed, 12 Apr 2023 11:00:00 GMT

As the world and its laws continue to evolve, everyone needs to keep their estate plans up to date. An estate plan is a set of documents, such as a will or trust, that dictate how assets will be distributed upon death or incapacity. An individual's current legal and financial situation should be considered to create a comprehensive estate plan tailored specifically to their needs.

Ensure Your Wishes Are Respected

The primary reason to update an estate plan is to ensure that an individual's wishes are respected upon death. For example, suppose an individual has recently acquired valuable property or has had changes in family structure (such as marriage or children). In that case, updating the documents that outline how assets should be distributed is important. If the documents are not updated, this could lead to disputes between family members and legal complications when probate occurs.

Additionally, if laws change at the state or federal level, those changes need to be incorporated into the existing estate plan to remain valid and effective.

Ensure Your Loved Ones Are Protected From Tax Implications

Another reason for updating an estate plan is for future tax planning purposes. Without proper planning and asset allocation, taxes can significantly reduce the amount that beneficiaries receive after one's death. Additionally, some states have transfer taxes on certain assets (such as real estate), which must be factored into one’s estate planning decisions.

In addition, changes in Federal tax law may affect whether other taxes, such as capital gains tax, applies at the time of death or while transferring assets during life – thus providing additional incentive for individuals to review their plans regularly with their advisors and make necessary updates when necessary.

Ensure Your Medical Decisions Are Handled With Care

Estate planning also encompasses contingency plans in case of incapacity due to illness or injury – commonly referred to as disability planning. This means creating end-of-life documents such as Advance Health Care Directives which list specific instructions about medical treatments that should be administered if certain conditions arise – such as if a person suffers from dementia or a traumatic brain injury and can no longer make decisions on their behalf.

This planning can provide peace of mind knowing that an individual’s wishes will be respected even if they cannot make decisions themselves due to illness or injury.

Ensure You Leave a Legacy For Your Loved Ones

Finally, updating an estate plan allows people to express gratitude for those who have helped them over the years - whether it be through providing advice on financial matters or being there simply by offering emotional support during difficult times - by including them in a legacy interview with our firm.

Specific instructions can also be included in your plan regarding how charitable donations should be handled after death - enabling individuals who wish to donate part of their wealth to leave behind a lasting legacy that furthers causes they believe in long after they pass away.

Keep Your Estate Plan Up-To-Date

In conclusion, having an up-to-date estate plan helps ensure that your wishes are respected upon incapacity or death; protects you from unnecessary taxes; helps with disability planning; and allows you the chance to express appreciation towards those who have had a positive impact on your life while still alive. Therefore, estate plans should consider current circumstances and anticipate future events to avoid any potential problems. We hold regular reviews of your estate plan through the stages of change in your life, every year or every three years - its your choice.

Estate Planning Before You Travel: Why It's Critically Important

Thu, 06 Apr 2023 14:04:28 GMT

Vacations can be the perfect opportunity to relax, disconnect from work and responsibilities, and enjoy your spouse, partner, kids’ or friend’s company. But before you head off on your next getaway, there’s something else you should consider doing that might not sound quite as fun—creating an estate plan. While it may not sound like the most thrilling way to spend a day, here are some reasons why you need to think about your estate plans before you travel.

● An estate plan ensures any medical decisions needed while away from home will be handled according to your wishes, and with as much ease as possible, no matter what the rules are where something happens. If you fall ill or become injured and can’t make medical decisions for yourself, your estate plan will ensure that decisions will be made by the person you choose, and with your indicated desires for your care at the forefront.

● Without an estate plan in place, your family or friends could have a heavy lift to get you back home, locate your assets, keep your bills paid, and even ensure your children get taken care of by the right people in the right way.

● Lastly, an estate plan ensures that any debts or liabilities are taken care of properly in case something happens while on vacation. This can help prevent creditors from trying to collect from surviving family members after the fact — something no one wants to deal with during such a difficult time.

Yes, Even Married Couples Need an Estate Plan

You might think that because you are married, you don’t need an estate plan. Or you might even think your Will is enough and would just handle everything. But that’s generally not the case.

Even if you are married, you still need medical powers of attorney, making it clear that you want your spouse making medical decisions for you, or even potentially adding in additional decision-makers. You still want a Living Will to give clarity on how you want medical decisions made for you.

Finally, if you have dependent children, you want to ensure you’ve made it as easy as possible for their care needs to be continued by the people you want, in the way you want. Without a plan in place, decisions around their care could be tied up for months, including access to the financial assets their caregivers would need to ensure they have what they need along the way.

The Benefits of Working With an Attorney

While you can create an estate plan without legal assistance, there are serious risks to the people you love, if your plan is not completed, not updated after it’s been done once, or not completed properly. The only real guarantee for the people you love to have as much ease as possible, is if you work with an experienced attorney specializing in estate planning, and particularly Life & Legacy Planning. We understand what needs to go into a thorough and complete estate plan — as well as the potential pitfalls or issues that could arise due to your unique personal and family dynamics — so you can rest assured knowing everything is being taken care of properly before you embark on your trip.

We can advise you on other important documents such as Wills, Trusts, powers of attorney (POA), health care directives (HCD), and guardianship paperwork (for minor children) so you can make informed decisions based on what you want to have happen if you become incapacitated or die . All these items should be considered when creating an effective estate plan — especially when one or both parties will be traveling outside their home country at any point.

Don't Let a Lack of Planning Dampen Your Vacation Spirits!

Taking a few simple, yet critically important, steps now can save you and your family considerable headaches down the road if anything were ever to happen while on the road—not only do we want you to enjoy each moment spent together, but we want peace of mind knowing that whatever comes your way is handled according to your wishes!

We can help put a plan together now so that you don’t forget about this important task before packing up for your next adventure. Making sure all your affairs are in order will ensure nothing stands in the way between you and enjoying time together!

Keep the Government and Lawsuit Happy Opportunists Away From Your Children’s Inheritance

Wed, 29 Mar 2023 11:30:02 GMT

If you have a current estate plan, I'll bet you plan to leave your assets to your children outright and unprotected by age 35, or maybe a little later. Go take a look at your estate plan, and see what it does right now. And, if you don’t have an estate plan, and you have kids or other people you care about, contact us today and let’s get that handled for you.

If you do have a plan and it distributes your assets outright to your kids -- even in stages, over time, some at 25, then half of what’s left at 30, and balance at 35 (or something along those lines), you’ve overlooked an incredibly valuable gift you can give your children (and the rest of your descendants for generations); a gift that only you can give them. And a gift that, once you’ve died and left them their inheritance outright, is lost and cannot be reclaimed.

Leave your kids a nest egg protected from lawsuits, divorce, and estate taxes.

While you may think to yourself, my kids’ inheritance doesn’t need to be protected. They aren’t going to get sued. You may be right, but you may also be overlooking one of the most common “lawsuits” that causes inheritances to be lost everyday, and that’s divorce. If you want to protect the money you are leaving to your children from their future divorces, even if you love their spouses nor or expect you will, in the future, you can easily do so using a protected trust.

And, if your child is ever involved in a lawsuit, for example, a simple car accident, or if a business transaction goes bad, what you leave to your child can be protected from all future lawsuits or claims against them.

The best part is that if your child has their own taxable estate when they die, your planning now could save your family 40 cents on every dollar (or more) handed down from one generation to the next.

Save your family Up to 40 cents on every dollar -- currently -- at each generation.

As of 2023, the current federal estate tax rate is 40% -- meaning that every dollar passed on over the estate tax exemption rate is taxed at 40%. And it has been as high as 55%. On top of that, many states have estate taxes as well.

This all adds up fast, and can decimate your family’s financial legacy, over time For every million dollars you leave outright to your children, if your children have a taxable estate when they die, could result in your grandchildren receiving only $550,000, with $450,000 going to the government ... unnecessarily.

So, if you want to know that everything you’ve worked so hard to create will stay in your family for generations to come and not be lost to outsiders, leaving your assets to your children protected in a trust we call a Lifetime Asset Protection Trust, instead of outright is the way to go. And, it can be easily built in to your existing estate plan or trust, you just need to ask us to help you get a Lifetime Asset Protection Trust added to your plan.

But how will my kids get to use what I leave to them?

Here’s the best part about leaving your assets to your children in a Lifetime Asset Protection Trust. Not only is what you leave protected, but your children control what you leave them when you decide they are ready.

After your death, the assets you leave behind will pass to your children (and your grandchildren, great-grandchildren, and so on for successive generations) in a Trust that your child can control, as the Trustee of the Trust. You can decide when your child is mature enough to act as a Trustee.

As the Trustee of the Trust, your child decides how what you’ve left is invested and what to do with the Trust assets. And your child will even be able to determine the amount of control vs. the amount of asset protection he or she wants based on his or her specific circumstances.

Is this still important if I don’t have much money?

If you only leave your children a small amount of money, this is still incredibly valuable for protection, if you are leaving assets that will be invested and grown, and not just spent right away on consumables. Some might say it’s even more important because your family has less to lose to taxes, lawsuits, and divorce each generation. And the impact of such losses is much greater.

A mere $10,000 protected now can become millions for the people you love for generations to come.

Imagine that you leave just $10,000 to your child in a Lifetime Asset Protection Trust, and instead of spending that $10,000 or losing it in a divorce, they invest that $10,000 in creating their own business inside their trust, and then grow that business into a million dollar or multi-million dollar venture because of how you chose to leave your child that $10,000 gift … and it’s fully protected for generations.

Secure the future of your family today by speaking to us. We review estate plans and inherited funds with you, ensuring that all legalities are in place so generations can enjoy the benefits according to your wishes. Don't wait, get peace of mind now - contact us today to get started.

Obtaining A Power Of Attorney For Elderly Parents

Wed, 22 Mar 2023 11:45:00 GMT

Making important decisions for aging parents can be a challenging task, but power of attorney (POA) can provide peace of mind and clarity in times of need. POA enables individuals to make crucial decisions on behalf of their parents, such as managing their finances or making medical decisions, when they are unable to do so themselves due to age or illness.

While it may be difficult to approach this topic with your parents, having these discussions early on can help ensure that you follow their wishes if their health changes over time. Starting the conversation with empathy and understanding can make all the difference.

In this article, we'll explore how to obtain power of attorney for elderly parents and provide helpful tips on how to approach these discussions with warmth and care. After all, our ultimate goal is to ensure that your aging parents receive the best possible care and support.

What’s a POA?

According to the American Bar Association , POAs are legal documents, which vary between states, that provide a person, or several individuals, with the power to perform actions on behalf of someone else. The individual with a POA is an agent, whereas the principal refers to the person who is having their affairs managed by other individuals. Agents can only perform actions outlined within the POA document. Moreover, if someone agrees to a POA, they can still make their own decisions, providing they can still do so coherently. This means the agent cannot make exclusive decisions on behalf of the principal.

POA Types

Below is more information regarding the different POA types:

● General: For this POA, the agent can manage the principal’s affairs for a specific period, and the principal may revoke this at any point. These automatically finish if the principal becomes incapacitated and are common when an individual can still see to their affairs but prefers that someone else does this for them.

● Durable: These POAs continue after the principal becomes incapacitated and are more common when someone cannot manage their affairs. They can conclude in many ways, including once the principal dies or if the agent completes the conditions within the POA document.

● Springing: The terms in this POA do not take effect unless the principal becomes incapacitated. For this POA, the principal remains in control of their affairs until they lose capacity.

● Medical: These POAs allow agents to make the principal’s medical decisions. They last until the principal is competent and might also expire after a certain period mentioned in the document.

● Limited: These limit the agent’s ability to make decisions regarding certain tasks as outlined in the POA document, such as paying bills or selling a house. Limited POAs are usually temporary and end when the principal loses capacity.

Why and When to Consider a POA For Your Aging Parents

Here are the common reasons why individuals may consider getting a POA:

● Finance issues: POAs enable individuals to continue paying their parents’ bills and manage their finances when their parents struggle to fulfill these obligations.

● Serious illness: Having a POA for an elderly parent can be helpful as it allows them to focus on getting better and reduces the stresses associated with managing their affairs.

● Memory issues: Individuals commonly obtain a POA to manage their parents’ affairs if they develop dementia. It is helpful to note that it is necessary to obtain the POA before the parent loses their capacity.

● Surgery: When an elderly parent is undergoing surgery, it might be a good idea to obtain a POA so individuals can make decisions on their parents’ behalf and manage their affairs until they have fully recovered.

● Frequent travel: Some older parents like to travel frequently, so POAs can be useful here for ensuring their affairs remain in order while they are away.

How Do I Choose a POA For My Parents?

When considering a POA for your aging parents, there are several things to keep in mind. The most crucial factor is trust - you must choose someone you can rely on to make decisions in your parents' best interests and follow their wishes.

While family members are often chosen for this role, it's important to consider whether they are the best fit. If you think an objective outsider may be better suited to the task, such as a lawyer, accountant, or financial institution, this is also an option, although it may come with additional costs.

Before agreeing to be a POA for your parents, it's essential to have a thorough discussion with them to understand their needs and preferences. Different types of POAs have different levels of responsibility, and it's important to clarify what your parents expect from you. If your parents need help with medical decisions, for example, this will require more involvement than if they only need assistance with financial decisions.

Finally, it's essential to understand the financial implications of becoming a POA. You will need to keep your finances separate from your parents' and be prepared to justify any decisions you make to avoid legal issues.

Choosing a POA for your aging parents is a significant decision, and it's essential to approach it with care and sensitivity. By having open and honest discussions and seeking objective advice, you can ensure that your parents receive the best possible care and support.

Contact Us To Learn More About Obtaining A Power Of Attorney For Your Elderly Parents

If you have elderly parents, it's understandable that discussing power of attorney (POA) may be a sensitive topic. However, starting these discussions as early as possible can bring peace of mind and clarity in the future.

When approaching these conversations, it's important to consider your parents' health and well-being. Let them know that you're there to support them and that you will only use the POA powers if it's absolutely necessary. It's a promise that can help reassure your parents that you have their best interests at heart.

Additionally, it may be helpful to seek the guidance of an experienced estate planning attorney. They can provide objective advice and alleviate any concerns that your parents may have. We understand that this is a difficult process, but we're here to help. Please feel free to contact us today to learn more about how we can assist you and your family.

Your Rights As The Parent Of A Young Adult — What You Need To Know When A Medical Crisis Hits

Wed, 15 Mar 2023 21:45:00 GMT

As a parent, you are quite accustomed to managing your children's legal and medical affairs, as circumstances require. If your child requires urgent medical attention while away from you, a simple phone call authorizing care can do the trick. But what happens when those “children” turn 18, now adults in the eyes of the law, and need urgent medical attention far from home?

The simple fact is that the day your child turns 18, he or she becomes an adult and has the legal rights of an adult. This means that you lose your prior held rights to make medical and financial decisions for your child unless your child executes legal documents giving you those rights back. Without the proper legal documents, accessing medical information and even being informed about your adult child’s medical condition can be difficult and in some cases, impossible.

When sending kids off to college, it is crucial to consider the legal implications of an accident or medical emergency on your ability to stay informed and participate in important decision-making for your young adult child. Medical professionals are responsible for following the Privacy Rule of the Health Insurance Portability and Accountability Act (HIPAA), which ensures medical privacy protection for all adults. Once your child turns 18, they are (from a legal perspective) no more attached to you than a stranger, making communication about medical issues is tricky if your child is incapacitated and not able to grant permission on their own.

In most states, these three legal documents can make all the difference when a medical crisis strikes and your young adult child is far from home. When utilized together, they can ensure a parent or trusted adult be kept in the loop about care and treatment when a child over the age of 18 experiences a medical event while they are away at college, traveling, or living far from home. As with most legal documents, the law varies from state to state, so be sure to seek out the counsel with us to determine which forms suit your situation best.

HIPAA

Essentially like a permission slip, this authorization allows your adult child to specify who is allowed access to their personal medical information. Specific information can be specifically withheld, such as drug use, sexual activity, and mental health issues so that additional privacy can be protected if desired.

Medical Power Of Attorney

Designates an agent to make medical decisions for the young adult. This could be you, as the parent or another trusted adult. Each state has different laws governing medical power of attorney, requiring different forms. Be sure to check with us, to be sure you are following the laws of your state and the state where your child resides.

Durable Financial Power Of Attorney

Allows the parent or another trusted adult to take care of personal business if the adult child cannot do so. This form would allow the parent to take care of such important tasks such as signing tax returns, paying bills, and accessing bank accounts for the incapacitated adult child. A durable power of attorney is powerful and gives broad access to sensitive financial and legal decision-making and should only be given to a trusted relative or friend.

The milestones come quickly once children graduate high school and enter the big, wide world away from home. As your family navigates these significant rites of passage, consult us to determine the steps necessary to ensure excellent communication and peace of mind when a medical emergency arises. Consider including your young adult children in the process. We’re here to help your family establish the legal and medical protections needed to live your desired lives. Contact us today to schedule your Family Wealth Planning Session for your family and get the right documents in place for your kids.

5 Reasons Why Shopping For The Cheapest Estate Plan Could Leave Your Family With An Unintended Mess

Sun, 12 Mar 2023 15:22:03 GMT

In most cases, from the most sophisticated business people with the highest net worth to those just starting in the workforce and on their path to adulthood, you very likely do not know how to evaluate estimates when shopping for an estate plan.

Shopping for an estate plan based on getting the lowest cost plan possible is often the fastest path to leaving your family with an empty set of documents (maybe in a beautiful binder, but not worth the paper they are written on) that won’t work for your family when they need it.

Unfortunately, we see the negative effects of cheap estate planning when family members come to us during a time of grief with that fancy binder that sat on the shelf for years sending out signals of false security, full of out-of-date estate planning documents, and find themselves stuck in what could have been an avoidable court process, or even conflict when that’s exactly what their loved one thought they had paid someone to handle for them.

Here Are 5 Reasons Why Shopping For The Cheapest Estate Plan Is Likely To Leave You With A Plan That Won’t Work For Your Family… And Could Leave Them With A Big Mess Instead.

01 | The least expensive plan isn’t worth the paper it’s written on once you’ve left the attorney’s office -- your life changes, the law changes, and your assets change over time; your plan needs to keep up with those changes.

And the truth is a lawyer can’t afford to provide anything more than documents that won’t get updated when you only pay a few hundred dollars for a plan. The business model doesn’t work for the lawyer and won’t work for you.

An attorney who has built a practice specifically to serve your family in their best interests cannot make a living selling $399 (or even $1,500 or $2,000) Wills, Trusts, or estate plans. Only insurance and financial professionals getting paid commissions to sell your family's annuities and life insurance products can make a living selling cheap documents. Buyer beware!

02 | “Estate planning” is often sold by financial professionals who want to get their hands on your “assets under management,” not necessarily prioritizing doing right by your family or keeping the people you love out of court or conflict. They may not even know how to keep your family out of court or conflict.

When your estate plan has been sold to you by an investment advisor as part of your financial advisory and retirement support services, their focus isn’t on understanding the relational and legal dynamics of families, which can flare up after the death of a loved one. As “relational lawyers,” we’ve got specific expertise and training in pre-emptively identifying potential for family conflict and heading it off before it becomes an expensive problem. We’ve seen it all when it comes to families getting stuck in court, we can help you design a plan that prevents your family from court and conflict.

03 | Forms and documents won’t be there for your family when you can’t be -- you want to leave your loved one’s relationship with a trusted advisor with whom you have built a relationship during your lifetime and who has met them and they already Trust.

Working with a lawyer who focuses on “the best documents” at the “lowest price” or doesn’t charge enough for their services cannot provide more than form documents. These days, especially with the rise of AI, template form documents are free- for anyone to use, which makes it difficult to know how those documents are handled when it comes to protecting the people you love.

Shopping around for the least expensive plan may get you the cheapest documents, but those documents won’t be there to guide the people you love when they need someone to turn to in a crisis or grief. We will be.

04 | You get what you pay for. It’s your family that will pay the price. Traditional law firms usually use generic forms and documents. These are called “Trust mills” and are a firm that drafts plans but doesn’t ensure assets are owned correctly or stay up to date over time. You might think that’s malpractice, but it’s not. It’s common practice, leaving your family at risk if and when something happens to you!

05 | An estate plan isn’t a set-it-and-forget-it kind of thing, it needs to stay updated with changes in your life, the law, and your assets.

There’s currently more than $58 billion in unclaimed property held in departments of unclaimed property across the United States. Yep, that is billion with a B. Assets often land there when someone dies or becomes incapacitated, and their family loses track of it because it wasn’t tracked well during life. And that’s just one way your family loses out if you’ve shopped around for the cheapest estate plan rather than having a plan that works for the people you love.

Is Something Better Than Nothing?

Sometimes, having something in place is better than nothing, but this is not one of those cases. In this case, having a “something” plan leaves your family holding the expensive, or even empty bag, when it’s too late for them and you to do anything about it. It’s risky business to leave your loved one’s with a set of documents you aren’t sure are going to work, and our guess is that you love your people too much for that.

Bottom line: don’t waste your time shopping around town for the cheapest plan possible. You don’t want the cheap plan, you want the plan that will work for the people you love when they need it.

If you already have an estate plan in place that you may have bought based on price, and are concerned you may have gotten a set of documents that won’t serve your family when they need it most, call us and ask about our 50-point assessment. We can help you save some money by giving it to do yourself, or you can pay us for a plan review to make sure your loved one’s won’t get stuck with an expensive and painful and unnecessary court process or loss of assets, when it’s too late.

Contact us at 913-451-6936 OR email clientservice@mbraylaw.com to schedule. We begin our planning process with a Family Wealth Planning Session, during which you’ll not only become more financially organized than ever before, you’ll finally be able to make informed, educated choices about the right plan for your family based on your unique family dynamics and your assets, instead of just shopping around for an estate plan based on price.The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

Will Your Estate Plan Actually Work When Your Family Needs It

Thu, 02 Mar 2023 02:35:13 GMT

Like most people, you likely think estate planning is just one more task to check off your life’s endless “to-do” list.

You can shop around and find a lawyer to create planning documents for you or create your own DIY plan using online documents. Then, you’ll put those documents into a drawer, mentally check estate planning off your to-do list, and forget about them.

The problem is, estate planning is more than just a one-and-done type of deal.

It will be worthless if your plan is not regularly updated when your assets, family situation, and laws change. Failing to update your plan can create problems that can leave your family worse off than if you’ve never created a plan.

The following story illustrates the consequences of not updating your plan, which happened to the founder and CEO of New Law Business Model, Ali Katz. Indeed, this experience was one of the leading catalysts for her to create the new, family-centered model of estate planning we use with all of our clients.

A Game Changing Realization

When Ali was in law school, her father-in-law died. He’d done his estate planning—or at least thought he had. He paid a Florida law firm roughly $3,000 to prepare an estate plan for him, so his family wouldn’t be stuck with the hassles and expense of probate court or drawn into needless conflict with his ex-wife.

And yet, after his death, that’s exactly what did happen. His family was forced to go to court to claim assets that were supposed to pass directly to them. And on top of that, they had to deal with his ex-wife and her attorneys.

Ali couldn’t understand it. If her father-in-law paid $3,000 for an estate plan, why were his loved ones dealing with the court and his ex-wife? His planning documents were not updated, and his assets were not even correctly titled.

Ali’s father-in-law created a Trust so that his assets would pass directly to his family when he died, and they wouldn’t have to endure probate. But some of his assets had never been transferred into the name of his Trust from the beginning. And since there was no updated inventory of his assets, there was no way for his family to even confirm everything he had when he died. To this day, one of his accounts is still stuck in the Florida Department of Unclaimed Property.

Ali thought for sure this must be malpractice. But after working for one of the best law firms in the country and interviewing other top estate-planning lawyers across the country, she confirmed what happened to her father-in-law wasn’t malpractice at all. It was common practice.

This inspired Ali to take action. When she started her own law firm, she did so with the intention and commitment that she would ensure her clients’ plans would work when their families needed it and create a service model built around that mission.

Will Your Plan Work When Your Family Needs It?

We hear similar stories from our clients all the time. In fact, outside of not creating any plan, one of the most common planning mistakes we encounter is when we get called by the loved ones of someone who has become incapacitated or died with a plan that no longer works. Yet by that point, it’s too late, and the loved ones left behind are forced to deal with the aftermath.

We recommend you review your plan annually to ensure it’s up to date and immediately amend it following events like divorce, deaths, births, and inheritances. This is so important we’ve created proprietary systems designed to ensure these updates are made for all of our clients. You don’t need to worry about whether you’ve overlooked anything as your family, the law, and your assets change over time.

Furthermore, because your plan is designed to protect and provide for your loved ones in the event of your death or incapacity, we aren’t just here to serve you—we’re here to serve your entire family. We take the time to get to know your family members and include them in the planning process so everyone affected by your plan is well aware of your latest planning strategies and why you made the choices you did.

Unfortunately, many estate planning firms only engage with a part of the family when creating estate plans, leaving the spouse and other loved ones primarily out of the loop. The planning process works best when your loved ones are educated and engaged. We can even facilitate regular family meetings to keep everyone up-to-date.

Built-In Systems To Keep Your Plan Current

Our legal services are designed to make estate planning as streamlined and worry-free as possible for you and your family. Unlike the lawyers who worked with Ali’s father-in-law, we don’t just create legal documents and put the onus on you to ensure they stay updated and function as intended—we take care of that on our end.

For example, our built-in systems and processes would’ve prevented two of the biggest mistakes made by the lawyers who created her father-in-law’s plan. These mistakes include: 1) not keeping his assets properly inventoried and 2) not correctly titling assets held by his Trust.

Maintaining a regularly updated inventory of all your assets is one of the most vital parts of keeping your plan current. We’ll not only help you create a comprehensive asset inventory, we’ll make sure the list stays consistently updated throughout your lifetime.

Start creating an inventory of everything you own to ensure your loved ones know what you have, where it is, and how to access it if something happens to you. From there, meet with us to incorporate your inventory into a comprehensive set of planning strategies that we’ll keep updated throughout your lifetime.

To properly title assets held by a Trust, it’s not enough to list the assets you want to cover when you create a Trust. You have to transfer the legal title of certain assets—real estate, bank accounts, securities, brokerage accounts—to the Trust, known as “funding” the Trust, for them to be appropriately disbursed.

While most lawyers will create a Trust for you, only some will ensure your assets are properly funded. We’ll not only make sure your assets are properly titled when you initially create your Trust, we’ll also ensure that any new assets you acquire throughout your life are inventoried and properly funded to your Trust. This will keep your assets from being lost and prevent your family from being inadvertently forced into court because your plan was never fully completed.

For The Love Of Your Family

Our planning services go far beyond simply creating documents and then never seeing you again. We’ll develop a relationship with your family that lasts not only for your lifetime but for the lifetime of your children and their children if that’s your wish.

We’ll support you in not only creating a plan that keeps your family out of court and out of conflict in the event of your death or incapacity, but we’ll also ensure your plan is regularly updated to make sure that it works and is there for your family when you cannot be. Contact us today to get started.

Why Every Adult Needs A Living Will

Wed, 08 Feb 2023 14:10:36 GMT

When it comes to estate planning and wills, you have a variety of options for legal documents. The most common of these options is a “last will and testament,” which is also known simply as a “will.” But you may have also heard people talk about a “living will” and wonder what that is, and whether you need a living will in addition to a regular last will and testament.

Both terms describe important legal documents used in estate planning, but their purpose and function differ significantly. In this article, we will review some of the most critical things you need to know about living wills and why having a living will is essential to every adult’s estate plan. And it may be that a living will is even more important than a last will and testament.

What Is A Living Will?

A living will, also called an advance healthcare directive, is a legal document that tells your loved ones and doctors how you would want your medical care handled if you become incapacitated and cannot make such decisions yourself, particularly at the end of life. Specifically, a living will outlines the procedures, medications, and treatments you would want and would not want to prolong your life if you cannot make such decisions yourself.

For example, within the terms of your living will, you can articulate certain decisions, such as if and when you would want life support removed should you ever require it and whether you would want hydration and nutrition supplied to prolong your life.

Beyond instructions about your medical care, a living will can even describe what type of food you want and who can visit you in the hospital. These are critical considerations for your well-being at a time of greatest need for you. And if you haven’t provided any specific instructions, decisions will be made on your behalf that you likely will not want.

Living Will vs. Last Will And Testament

Upon death, a last will and testament ensure your assets are distributed as you choose. Note that your last will only deals with your assets and only operates upon your death. In contrast, a living will is about you, not your assets. And it operates in the event of your incapacity, not your death.

In other words, a last will tells others what you want to happen to your wealth and property after you die, while a living will tells others how you want your medical treatment managed while you are still alive. And that’s really important for you and your care!

Living Will vs. Medical Power of Attorney

Medical power of attorney is the part of an advance healthcare directive that allows you to name a person, known as your “agent,” to make healthcare decisions for you if you are incapacitated and unable to make those decisions yourself.

Simply put, medical power of attorney names those who can make medical decisions in the event of your incapacity, while a living will explains how you would want your medical care handled during your incapacity.

Why Having A Living Will Is So Important

A living will is a vital part of every adult’s estate plan, as it can ensure your medical treatment is handled exactly the way you want if you cannot communicate your needs and wishes. Additionally, a living will can prevent your family from undergoing needless trauma and conflict during an already trying time.

Without a living will, your family would have to guess what treatments you might want, and your loved ones are likely to experience stress and guilt over the decisions they make on your behalf. In worst cases, your family members could even end up battling one another in court over who should manage your medical care and how.

Should You Rely On A Living Will Created Online?

While there is a wide selection of living wills, medical power of attorney, and other advance directive documents online, you likely want more guidance and peace of mind than is available through an online service to support you to address such critical decisions adequately. Regarding your medical treatment and end-of-life care, you have unique needs and wishes that cannot be anticipated or adequately addressed by generic documents or without the counseling and guidance we can provide through your decision-making process.

To ensure your directives are tailored to suit your unique situation, work with experienced estate planning professionals like us, to support you to create and/or review your living will.

How We Can Help

Even if you have a professionally prepared and well-thought-out living will, it won’t be worth the paper it’s printed on if nobody knows about it. A living will comes into effect the second you sign it, so you should immediately deliver copies to your agent, alternate agents, primary care physician, and other medical specialists.

Additionally, don’t forget to give those folks new versions whenever you update those documents and have them destroy the old documents. Here at Bray Law Office, delivering the latest copies of your living will and other estate planning documents is a standard part of our Life & Legacy Planning Process. We ensure that everyone who needs your documents always has the latest version.

And since unforeseen illness or injury could strike at any time. Don’t wait to plan your will. Contact us to get this critical document in place.

Creditors and Your Estate

Wed, 01 Feb 2023 12:45:00 GMT

What Happens To Your Debt When You Die?

In some cases, you could inadvertently leave a reality in which your surviving heirs—your kids, parents, or others—are responsible for your debt. Alternatively, if you structure your affairs properly, your debt could die right along with you.

According to the Federal Trade Commission , an individual’s debt does not disappear once that person dies. Rather, the debt must either be paid out of the deceased’s estate or by a co-creditor. And that could be bad news for you or the people you love.
https://consumer.ftc.gov/articles/debts-deceased-relatives

What exactly happens to this debt can vary. One of the purposes of the court process known as probate is to provide a time period for creditors to make a claim against the deceased’s estate, in which case debts would be paid before beneficiaries receive their inheritance. But if there is nothing in the probate estate and all assets are held outside of the probate estate, then what?

Well, that’s where we come in, and why it’s so important to get your affairs in order, even if you have a lot more debt than assets. Your “estate” isn’t just what you own, it includes what you owe, too. And with good planning, we can help you align it all in exactly the way you want.

Debt After Death

When an individual dies, someone will handle his or her affairs, and this person is known as an executor. The executor can either be someone of the individual’s choice, if he or she planned in advance, or someone appointed by the court in the absence of planning. The executor opens the probate process, during which the court recognizes any will that’s in place and formally appoints the executor to administer the deceased’s estate and distribute any outstanding assets to their loved ones.

During this process, the estate’s assets are used to pay any outstanding debt. This usually includes all of an individual’s assets, although it does not include assets with beneficiary designations, such as 401(k) plans and insurance policies. The estate does not own these assets, and they pass directly to the named beneficiaries. Given these factors, if an individual’s assets are subject to probate and the person has outstanding debt, their beneficiaries will receive a smaller share of anything left to them in the estate plan.

How Unsecured Debts Are Handled After Death

Typically, unsecured debts, such as credit card debts, are the last form of debt the estate repays. In most cases, the estate first repays any outstanding secured debts, including car and mortgage loans. Following this, the estate repays the legal and administrative fees associated with executing the deceased’s will. From there, the estate repays any outstanding unsecured debt, including credit card balances. Usually, if the estate lacks the assets to repay these debts, creditors have no choice but to accept the loss.

However, in some states, probate laws may dictate how the deceased’s creditors can clear these debts in other ways, such as by forcing the sale of the deceased’s property. It’s worth noting that there is a time limit for creditors to claim against an estate after the deceased dies, and this time frame varies between states.

Avoiding Probate

There are several things you can do to avoid probate. Perhaps the most common involves establishing a revocable living trust. Since the trust, not the estate, owns the assets, assets held by a properly funded and maintained trust do not have to go through the probate process.

Despite this, creating a living trust does not guarantee an individual’s assets will receive protection from creditors if that person has debt. What it does mean is that his or her heirs may have more flexibility compared to probate. In other words, by creating a living trust, your trustee may be able to negotiate with creditors more easily to reduce any outstanding debt. In theory, creditors may still sue to repay the debt in full. However, since this could involve significant costs, creditors may prefer to settle instead.

When Do Surviving Family Members Pay The Deceased’s Debts?

Most of the time, it’s unnecessary for surviving family members to pay the deceased’s debt with their own money. Instead, as noted above, payment of the debts are either paid out of the deceased’s estate, or if there is no estate, the debts are extinguished. However, there are some exceptions to this, including the following:

● Co-signing loans or credit cards: If someone cosigns a loan or credit card with the deceased, that individual is responsible for clearing any outstanding debt associated with that account.

● Having jointly owned property: If an individual has jointly owned property or bank accounts with the deceased, that person is responsible for clearing any outstanding balances associated with these assets.

● Community property: In some states, including California, Arizona, Nevada, Louisiana, Idaho, Texas, Washington, New Mexico, and Wisconsin, the surviving spouse is required to clear any outstanding debt associated with community property. Community property is any property jointly owned by a married couple.

● State laws: Some states require surviving family members, or the estate more generally, to clear any debts associated with the deceased’s healthcare costs. Additionally, if the estate’s executor failed to follow a state’s probate laws, it might be necessary for him or her to pay fines for doing so.

What To Do When Someone Dies With Debt

When someone dies with outstanding debt, it’s important to take swift action to handle their affairs and negotiate their debts. Below are some steps to follow when faced with this scenario:

1 - Understand Your Rights

Since probate laws vary between states, it’s a good idea to thoroughly research the probate process in our state and your family member’s state or hire a lawyer to handle the estate for or with you. Many states require creditors to make claims within a specific period, while also requiring surviving family members to publicly declare the deceased’s death before creditors can collect any outstanding debt. It’s also against the law for creditors to use offensive or unfair tactics to collect outstanding credit debt from surviving family members. It’s generally a good idea to ask creditors for proof of any outstanding debt before paying.

2 - Collect Documents

Collecting documents can be fairly straightforward, particularly if the deceased left all their vital financial papers in a single location. If the surviving family members cannot locate these documents, they can request the deceased’s credit report, which lists any accounts in the deceased’s name. We can assist you with this, as part of our post-death support services.

3 - Cease Additional Spending

This is essential to prevent any debts in the deceased’s name from increasing further, even if there is another person authorized to make payments. Ceasing additional spending, including canceling any recurring subscriptions, also helps prevent unnecessary complications when negotiating with creditors.

4 - Inform Creditors

Proactively contact the deceased’s creditors to look into options for negotiating the debt, and notify credit bureaus of the death. To complete this process, it’s useful to have several copies of the death certificate to share with insurance companies and creditors. Afterwards, ask to close all accounts in the deceased’s name, and request the credit bureaus freeze the deceased’s credit, preventing others from unlawfully getting credit in his or her name.

5 - Close The Estate

Once all debt has been paid off, forgiven, or extinguished, the executor can officially close the estate. The process for doing this varies based on how assets and debts were held, so do not go into this part alone. Contact us to find out how we can support you.

We Can Help Ensure Your Family Doesn’t Get Stuck With Your Debt

Effective estate planning involves taking care of your affairs, and this includes ensuring your debts will be handled in such a way that your family isn’t left with a big mess or inadvertently forced into court. Consider scheduling a Family Wealth Planning Session with us, to determine how we can help protect your assets and prevent creditors from reducing the gifts you want to leave your loved ones after death. Contact us today to learn more.

Estate Planning Issues for the Modern Family

Fri, 27 Jan 2023 15:28:28 GMT

As the name suggests, ABC’s TV show Modern Family depicts the relationships and experiences between a fictional extended family. Throughout the course of the series, the show addresses many issues that families deal with each day. For a close-knit family such as this fictional one, estate planning is crucial to ensure that everyone is protected when one of them dies or becomes disabled or incapacitated. We hope that examining some of the issues this family would need to address as they prepare for such circumstances will encourage you to consider how these issues impact your own family.

The Family’s Entrepreneurial Endeavors

Over the course of the series, there are a variety of businesses owned by members of the family. Whether it is a hobby, investment, or their nine-to-five job, these businesses require special consideration when planning for their future.

● How are these businesses owned? Depending on the ownership structure (sole proprietorship, partnership, corporation, limited liability company), what happens to the business at the owner’s death may already be dictated by the business’s official documents. If not, there needs to be legally enforceable documentation in place to facilitate the transition.

● Who should ultimately end up with the business? For business owners, it is very easy to get caught up in the day-to-day operations. However, it is important that you look to the future and proactively determine who should be in charge of your business. Just like Jay, if you want your child to continue your business, it is important that you have that discussion with them and pave the way for them to take over.

● Should the business interest go directly to the next generation or be held for them? Depending on the age of the beneficiary, you may need to appoint someone to run the business until your child is sufficiently mature. Instead of relying on the state’s determination of when a child becomes an adult, you can provide specific instructions for when and how your child becomes involved in the business.

Multiple Generations of Blended Families

When determining who will receive their money and property, members of blended families must evaluate the bonds within their family. For instance, on several occasions, Jay refers to Manny as his son, and Manny spent many of his formative years living with his mother and Jay. On the other hand, although Dylan and Haley have two children together, Dylan also has children from his first marriage. Haley may not be that close to Dylan’s other children and may not want them to receive anything she owns individually (or what she may inherit from her parents). Because a stepchild has no legal right to their stepparent’s money and property, a legally enforceable last will and testament or trust needs to be put in place in order for a stepparent to leave anything to their stepchild at death.

Guides for the Next Generation

Within this extended family, there are a few minors who need guardians in the event both parents pass away. First, although Manny states that he wants to be Joe’s guardian in the event Gloria and Jay pass away, they need to name the person they want to be Joe’s guardian in their wills. However, the naming of an individual in a last will and testament or separate document is merely a nomination. This may not stop others from contesting the nomination. It may be wise for Jay and Gloria to have frank conversations with both of their families to avoid the possibility of a fight for guardianship and to prevent Joe from potentially being taken to a foreign country.

Lily and Rex are also minors who would need a guardian if their parents were to pass away. Without an appropriate estate plan, a fight between Cameron’s and Mitchell’s families is likely to occur. Although Lily spent much of her life around Mitchell’s family, by the end of the show, Lily and Rex are moving with their parents to Missouri and will be living closer to Cameron’s family. Rex will arguably grow up with a greater bond with Cameron’s family, which could lead to conflict between the Pritchett and Tucker families if a guardian for these two children is needed.

Lastly, Poppy and George would need guardians if their parents died. Haley and Dylan may not have a lot of money and property to plan for, but their precious children deserve at least basic planning, including naming a guardian and alternates. At the end of the show, although Haley and Dylan are no longer living with Phil and Claire, they are still living close by. However, Dylan’s mother Farah started appearing once Haley became pregnant. She may have a desire to raise the children should something happen to Haley and Dylan.

If you have minor children, it is important that you think about who you want to raise them if you cannot. Although no one will ever care for them as you would, it is important that you nominate someone in a last will and testament or separate writing (if your state allows for one). Although the court will still have to make the ultimate decision as to who will be the guardian, you can rest easier knowing that you have made your wishes clear. Also, by having conversations with your family members ahead of time, you may be able to reduce the possibility of fighting after your death if everyone understands your wishes.

Protecting the Surviving Spouse

All married couples face the question of what will happen at the first spouse’s death. Some couples, like Phil and Claire, have earned and accumulated most of what they have while they were married. It would be understandable for them to consider everything they own “theirs.” Both of them would likely want everything to go to the surviving spouse.

However, when everything is given to a spouse outright, the hard-earned money and property is susceptible to creditors and predators. A naive and well-meaning person like Phil might become the victim of a scam artist and give large sums of money away based on a sad story. Alternatively, a successful woman like Claire could end up remarrying, and without proper planning, could accidentally disinherit Haley, Alex, and Luke by leaving everything to her new spouse.

To protect what you leave to your surviving spouse, no matter if it is your first or third marriage, a qualified terminable interest trust can help. This type of trust can allow your surviving spouse to receive the income the trust generates at least annually, to withdraw principal for specific purposes such as health, education, maintenance, and support, while allowing you to determine what happens to any remaining money at your spouse’s death.

Determining How Much Everyone Gets

Within this blended family, there are many different options for who will receive an inheritance from each person. When preparing his estate plan, Jay will need to consider how he wants to divide everything he owns. In his immediate family, he has a spouse, two adult children from a previous marriage, a minor son, and an adult stepson. He also has five grandchildren and two great-grandchildren. He will need to decide who gets what, how much, and when. He will need to ask himself if it is better to give everything to Gloria (possibly in a trust) for her needs during her life with the remainder to go to Claire, Mitchell, and Joe at her death—or if Claire and Mitchell should receive their portion of the inheritance while Gloria is still alive. Should he provide for Joe or leave that up to Gloria if she survives him?

When considering what to leave to a surviving spouse, it is important to remember that in some jurisdictions, there is a minimum amount that must be given to a surviving spouse known as the elective share. Also, if you reside in a community property state, your spouse may be entitled to some of your money and property if it was acquired during your marriage. While someone might think that their surviving spouse will be able to support themselves without an inheritance, it is important to have this conversation ahead of time: without the proper documentation, a surviving spouse can unwind a plan if they have not been provided for in their deceased spouse’s estate plan and have not waived the right to their entitled minimum amount.

Phil and Claire will need to take a look at their own family situation and determine how their money and property are to be divided up among their children and grandchildren. They have three children who are very different and most likely would have very different needs. Haley, the mother of two, may benefit from receiving a larger share since she has two children to support. Alternatively, Phil and Claire could choose to set aside a sum of money specifically for their grandchildren. Alex may not need an inheritance given her education and employment opportunities. Luke, on the other hand, may need more financial assistance. A sum of money could be held in a trust for him, with restrictions to ensure that he is properly provided for, gets an education, and is able to invest in good business ideas while protecting him and his inheritance from bad business decisions.

For many families across the country, not just the fictitious ones on television, an estate plan is a great way to make sure that you, your loved ones, and your hard-earned money are protected. We are committed to working with families of all shapes and sizes to craft a plan that is as unique and modern as you and your family are.

3 Essential Questions to Ask Before Creating Your Will Online

megan@mbraylaw.com (Megan Bray) — Wed, 11 Jan 2023 12:45:04 GMT

If you are looking to create your last will and testament, or will, online, you’ll find dozens of websites that let you prepare a variety of estate planning documents for very little money, and even for free. With so many do-it-yourself online document services out there, you might believe you can create your will online, all on your own, without paying a lawyer to help.

And in some cases, you can create your will online.

But if you do, you need to understand how these services can backfire on you and your family. Online estate planning can be a catastrophe for those who aren’t aware of the risks. And as you’ll see, creating your will online without a lawyer’s guidance can even be worse for your family than if you’d done nothing at all.

Know what’s possible—and what’s not

A great way to start educating yourself is by checking out the articles on our blog. The online forms don’t explain the what types of options you may have based on your family dynamics and they only offer a short list of documents. They don’t explain additional documents that may be options for you or ways to use a combination of multiple documents. Our blog is a great way to begin learning about the numerous options you have to achieve your specific goals as they relate to your family and your assets.

Meanwhile, if you are looking to create your own will online, first ask yourself the following 3 questions. After considering these 3 questions, if you determine you can create your own will online, you should seriously consider having us review it for you once you complete the document to be certain you’ve properly covered everything and everyone you care about.

1 - Will your online will keep your family out of court?

When considering creating your own will online, the first question you need to ask yourself is: “Should I become incapacitated or when I die, do I want to keep my family out of court?” If your answer is “Yes, I 100% want to keep my family out of court,” then creating your own will online may not be the best idea.

While a will is a necessary element of most estate plans, it’s typically just one small part of an integrated plan. And a will by itself won’t keep your family out of court. In order for assets covered by your will to be transferred to your beneficiaries, your will must first pass through the court process known as probate.

During probate, the court oversees the administration of your estate and assets, ensuring your assets are distributed according to your wishes, while ensuring any creditors of your estate are paid, and managing any disputes that arise. Probate is lengthy, expensive, and open to the public, so you’ll want to have more than a will in place if you have any assets that would go through court in the event of your incapacity or death.

To avoid probate and keep your assets out of court, your will needs to be combined with other planning documents and important conversations as well. These documents include a properly drafted and funded trust, up-to-date and effective beneficiary designations, and you’ll also need to have conversations with family to ensure they won’t end up in conflict due to your lack of preparation.

Beneficiary designations and trust planning can be complex, and if you have assets that would otherwise pass through the court process, it may be difficult to ensure you are making all the right choices for your loved ones and your assets using an online document service. This is why we recommend that you begin your estate planning with a Family Wealth Planning Session, during which we can help you look at your family dynamics and your assets, and then we can assess what would happen to everything you have and everyone you love, when something happens to you. During this planning session, we can then determine the right plan for you and the people you love to help keep them out of court when something happens to you.

2 - Is your online will’s execution legally valid?

If you do not have assets that would go through the court process, and you want to create an online will simply to name someone as your executor in the event of your death, you’ll want to make sure your online will is legally valid.

Each state has specific laws stipulating how a will must be documented and signed to be legally binding. If you fail to execute your will in accordance with these laws, the court can deem your will legally invalid.

If the court deems your will invalid, it’s as if the document never existed. In that case, a judge would name the person it considers is best to handle your estate, and your assets would be distributed according to state intestacy laws, which typically give priority to your closest living blood relatives.

If you want to ensure your online will is legally valid, you can look up your state’s laws governing the valid execution of a will. From there, make certain you sign it properly, with the right number and type of witnesses.

3 - Does your online will properly name an executor?

If you are going to create your own online will, the last question to consider is whether the will properly names an executor, along with back-up executors, and it ensures that those you name will be appointed by the court in the event of your death.

An executor, also called a “personal representative,” is the person responsible for carrying out the instructions in your will. Your executor is typically named in your will and appointed by the court to locate and manage your assets, pay any outstanding debts and taxes you owe, and distribute your remaining assets to your beneficiaries.

If you don’t name an executor in your will, or the person you choose is determined to be unfit, the court will appoint an executor for you. As an example of how things can go wrong here, one common situation in which a named executor can be determined to be unfit is if your will does not waive the requirement for the executor to obtain a bond, and your named executor cannot qualify for a bond. This is a frequent mistake made by those who create their own will online.

If you’re unaware of these requirements when creating your online will, your chosen executor could be deemed unfit, leaving the choice up to the court. We can make certain your choice for executor is properly qualified, so you can rest easy knowing someone you know and trust will handle your final affairs and support your loved ones when you no longer can.

The Professional Support You Deserve

As you can see, creating your will online without a lawyer’s help is a huge gamble, and if you get it wrong, it can cost your family a lot more than money. Rather than relying on a one-size-fits-all document service, meet with us to create your will and other estate planning documents.

Our Life & Legacy Planning Process is specifically designed to put in place the right combination of planning solutions to fit with your unique asset profile, family dynamics, budget, as well as your overall goals and desires. Until then, if you need to get your plan started or need us to review your existing documents, contact us today.

Want to Leave Your Retirement Assets to a Minor - What to Consider First

megan@mbraylaw.com (Megan Bray) — Wed, 04 Jan 2023 23:30:55 GMT

Your retirement account may be one of the most valuable things you own. Many people consider naming their children as the beneficiaries of these accounts because they think it is a way of easily transferring their wealth if something happens to them. However, there are some factors that make this type of transfer more complicated than you may think, especially if your child is a minor.

Can a Minor Be Named Individually as a Beneficiary?

Yes, you can name your minor child as the beneficiary of your retirement account or as the contingent beneficiary who would receive it if the primary beneficiary you have named on the account dies before you pass away. However, if your child is a minor when you die and they inherit your retirement account, a court may have to appoint a guardian or conservator to handle any money distributed to the child from the account. This will take time and money, and the guardian or conservator the court chooses may not be the person you would have chosen. You can avoid this by proactively naming a conservator or guardian for your minor child in your will.

Under the Setting Every Community Up for Retirement Enhancement (SECURE) Act, most beneficiaries must receive an entire retirement account within ten years of the account owner’s death. However, minor children of an account owner fall into a special category of beneficiaries (called eligible designated beneficiaries or EDBs). Their mandatory ten-year payout period does not begin until they turn twenty-one, meaning the beneficiary must receive an entire inherited retirement account at age thirty-one.

In the meantime, however, they are required to take required minimum distributions (RMDs), which will likely be held in a protected account overseen by their guardian or conservator, until they reach the age of majority in the state they live in (usually between the ages of eighteen and twenty-one). RMDs for these EDBs are based upon the child’s expected lifetime, and they must take them until the end of the calendar year that they turn thirty-one, at which time the retirement account must be fully distributed.

It is important to note that the child will have to pay income taxes on any amounts distributed to them. This is usually favorable because the RMDs up until the year they turn thirty-one can be made in smaller amounts because of the long life expectancy of a minor and because they will likely be in a low tax bracket. However, the account must be emptied by the end of the calendar year in which the child turns thirty-one.

Depending upon the size of the account, this could mean that the child will receive a large amount of taxable income at a relatively young age. In addition to the potential tax liability, one of the disadvantages of naming a minor child as the beneficiary of your account is that when they reach the age of majority (which could be as young as eighteen in your state), they will gain complete control of the funds and could choose to pull everything out of the retirement account right away, regardless of whether they are mature enough to handle that responsibility.

Should You Name a Trust as a Beneficiary of the Retirement Account and Your Child as the Beneficiary of the Trust?

Another option is to create a trust for your child and to name the trust as the beneficiary of your retirement account. This option can work for see-through trusts that meet certain criteria under the law and allow the applicable beneficiaries of the trust to be treated as the beneficiary of your retirement account. There are two types of see-through trusts you can consider: conduit trusts and accumulation trusts.

Conduit Trust

A conduit trust requires all RMDs made from the retirement account to the trust to be distributed to the child (or used for the child’s benefit) as soon as the trust receives it. The trust will provide asset protection and tax deferral for the funds that remain in the actual retirement account. In addition, the terms of the trust can ensure that once the child reaches the age of majority in your state, they will not be able to simply withdraw the entire balance remaining in the retirement account all at once. The trustee can also have discretion to withdraw funds from the retirement account in addition to the RMDs, which would then be distributed to or for the benefit of the child, but these decisions about additional withdrawals will be made by the trustee, rather than the child.

Although the remaining balance must still be fully distributed to the child by the end of the calendar year in which the child turns thirty-one, until that time, the conduit trust will provide asset protection, tax deferral, and additional time for your child to mature and learn how to handle the money responsibly before receiving a potentially large sum of money.

Accumulation Trust

An accumulation trust, unlike a conduit trust, provides the trustee with the discretion to decide whether to pay out the RMDs to the child (or for the child’s benefit) from the retirement account or to retain the funds in the trust. As a result, the full amount of the funds distributed from the retirement account to the trust can stay in the trust and can potentially be protected from claims made by outside creditors.

An accumulation trust will enable you to ensure that the funds are not distributed to your child sooner than necessary or desired and that the child does not gain access to the entire amount in your retirement account as young as eighteen. However, the funds must still be fully withdrawn from the retirement account by the end of the calendar year in which your child turns thirty-one. Any funds retained by the trust instead of distributed to your child will be taxed at the much higher tax rates applicable to trusts rather than the lower rate that is likely to be applicable to your child.

We Can Help

There are pros and cons for each option, and the one that is best for you and your child will depend on your unique circumstances and goals. We can help you think through whether asset protection, tax minimization, or another goal should be your priority. If you already have made your minor child a beneficiary of your retirement account or have set up a trust as the beneficiary of your retirement plan for the benefit of your children, it is important to review and update your beneficiary designations and your trust if needed. Some recent changes in the rules that govern these important accounts will have a big impact on when the funds must be distributed—and may necessitate a change in your plan. Please call us to schedule an appointment so we can help you think through the best plan for your retirement accounts, as well as any other estate planning concerns.

Don't Let Your Crypto Currency Give You and Your Loved Ones Nightmares

megan@mbraylaw.com (Megan Bray) — Mon, 19 Dec 2022 18:37:10 GMT

Although cryptocurrency may be one of the latest investment strategies with great potential, for some individuals and their loved ones, investing in cryptocurrency has not gone as planned. The following stories are each a little different, but they all underline one simple warning: if you own cryptocurrency, you need a plan.

Impact of Volatility on Estate Administration

Matthew Mellon, an investor and businessperson who was a member of two prominent families, the Mellons and the Drexels, died in April 2018. ^[1] At the time of his death, his estate was estimated to be worth approximately $200 million. Much of his wealth came from a $2 million investment in the cryptocurrency XRP, managed by the company Ripple.

Mellon died with an outdated will that did not mention his cryptocurrency. It was later discovered that he kept the keys to his cryptocurrency on various devices throughout the country and under other people’s names. Fortunately, his lawyers were able to access his cryptocurrency by working with Ripple. However, it is extremely rare for anyone to be able to access cryptocurrency without a plan.

Because the value of the XRP fluctuated by approximately 30 percent in the weeks after Mellon’s death, it was crucial that the XRP be liquidated quickly to pay his outstanding debts, income tax obligations, and estate tax. However, Mellon had entered into an agreement with Ripple that limited the amount of XRP that could be sold at a given time. This delayed the wrapping up of his affairs. By the end of 2019, his estate was worth less than half of the original value at his time of death because the XRP had lost about two-thirds of its value.

Had Mellon been up front with his trusted decision makers and advisors, they might have been able to craft a plan that provided his estate with the necessary funds to pay his outstanding obligations without having to rely primarily on the XRP. Additionally, if his plan had made it easier for his fiduciaries to gain access to the cryptocurrency, they might have been able to start the sell-off sooner, when the value was higher.

Forgetting Your Password Can Be Expensive

Stefan Thomas, a software developer, was an early adopter of Bitcoin. In fact, he created a video in 2011 about how digital currency works and was awarded 7,002 Bitcoins. ^[2] To store his Bitcoins, Thomas used a USB hard drive known as an IronKey that contained his digital wallet. Later that same year, he lost the password to his IronKey. IronKey allows only ten attempts to enter the password before it is encrypted forever. As of January 2021, he had only two attempts remaining. ^[3] Although the value of Bitcoin has dropped significantly, his Bitcoin is still worth well over $100 million dollars. ^[4] Unfortunately, unless he remembers his password or is somehow able to get around it, he will never see that money.

This should serve as an important lesson for all of us. Items that require a password do so for a reason. However, we cannot always assume that we will remember it or that someone else will be able to retrieve it for us. You must have a system in place to make sure that you or your trusted decision makers can access your passwords when necessary.

Dead and Gone

Matthew Moody, a miner of Bitcoin, tragically passed away at the age of twenty-six in a plane crash. ^[5] At the time of his death, he owned Bitcoin that he mined. However, no one, not even his parents, knows how to go about finding it. No one knows how much he owned, where it was stored, or how to access it. Depending on how much he owned at the time of his death, this could be a nice sum of money for his loved ones; but because Moody did not share this information with his family and, like most twenty-somethings, did not have an estate plan, it will remain a mystery to his family.

While it may be easy for your loved ones to determine most of what you own at the time of your death by going through your mail, searching your computer, or looking through your residence, cryptocurrency can be a lot harder to find. Depending on the type of wallet you use, it may not be obvious to your loved ones that you own something of potentially high value. This is why it is important that you have a plan for your cryptocurrency. A trusted person needs to know that you own cryptocurrency, the type you own, how it is stored, how to access it when necessary, and what your wishes are for it after your death. Failing to address this planning will leave your family without a clue as to what you truly owned at your death.

Cryptocurrency is an amazing advancement for secure and private transactions. This groundbreaking investment strategy has the potential to forever change how we view money and financial transactions. Because it is so new, finding and managing cryptocurrency may present some barriers. To best protect yourself and your loved ones, we encourage you to speak with a trusted advisor to craft your cryptocurrency plan.

^[1] Grace Ferguson, How a cryptocurrency fortune crippled a deceased billionaire’s estate, The Daily Dot (Dec. 23, 2021), https://www.dailydot.com/debug/death-internet-cryptocurrency-matthew-mellon/ .

^[2] This man owns $321M in bitcoin — but he can't access it because he lost his password, CBC Radio-Canada (Jan. 15, 2021),

https://www.cbc.ca/radio/asithappens/as-it-happens-friday-edition-1.5875363/this-man-owns-321m-in-bitcoin-but-he-can-t-access-it-because-he-lost-his-password-1.5875366 .

^[3] Steve Marshall, The latest gamble to recover man's lost Bitcoin fortune, A Current Affair, 9 Now, https://9now.nine.com.au/a-current-affair/bitcoin-software-developer-stefan-thomas-fortune-rising-forgotten-millions/1e0f32bb-62ed-464c-8ac1-63716779bdfe (last visited Dec. 2, 2022).

^[4] Bitcoin Price, CoinDesk, https://www.coindesk.com/price/bitcoin/ (last visited Nov. 23, 2022).

^[5] Bloomberg News, Legislation is needed to help heirs access bitcoin accounts, Investment News (Feb. 18, 2022), https://www.investmentnews.com/legislation-is-needed-to-help-heirs-access-bitcoin-accounts-73449.

Will the Coming Wealth Transfer Be a Blessing or Curse for your Family

megan@mbraylaw.com (Megan Bray) — Mon, 19 Dec 2022 18:12:53 GMT

Whether it’s called “The Great Wealth Transfer,” “The Silver Tsunami,” or some other catchy sounding name, it’s a fact that a tremendous amount of wealth will pass from Baby Boomers to younger generations in the next few decades. In fact, it’s said to be the largest transfer of intergenerational wealth in history.

Because no one knows exactly how long aging Boomers will live or how much money they’ll spend before they pass on, it’s impossible to accurately predict just how much wealth will be transferred. However, studies suggest it’s somewhere between $30 and $90 trillion. Yes, that’s “trillion” with a “t.”

A blessing or a curse?

While most are talking about the many benefits the wealth transfer might have for younger generations and the economy, fewer are talking about the potential negative ramifications. Yet there’s plenty of evidence suggesting that many people, especially younger generations, are woefully unprepared to handle such an inheritance.

In fact, an Ohio State University study found that one third of people who received an inheritance had a negative savings within two years of getting the money . Another study by The Williams Group found that intergenerational wealth transfers often become a source of tension and conflict among family members, and 70% of such transfers fail by the time they reach the second generation .

Regardless of whether you’ll be the one passing on wealth or inheriting it, you must have a well-prepared estate plan in place to prevent the potentially disastrous losses and other negative outcomes such transfers can lead to. Without proper planning, the money and other assets that get passed on can easily become more of a curse than a blessing for you and your loved ones.

Proactive planning is the key

There are a number of proactive measures you can take to help reduce the risks posed by the coming wealth transfer. Beyond putting in place a comprehensive estate plan that’s regularly updated, openly discussing your values and legacy with your loved ones can be a key way to ensure your estate planning strategies work exactly as you intend. Here’s what we suggest:

1 - Create your own estate plan

If you haven’t created your own estate plan yet—and far too many of you haven’t—it’s essential that you put a plan in place as soon as possible. It doesn’t matter how young you are, how much wealth you have, or if you have any children yet—all adults over age 18 should have some basic estate planning vehicles in place. If you have yet to get your estate plan started, meet with us right away to get this crucial first step handled.

From there, be sure to regularly update your plan on an annual basis and immediately after major life events like marriage, births, deaths, inheritances, and divorce. Unlike traditional estate planning professionals, when you work with us, we maintain a relationship with you long after your initial estate planning documents are signed.

Indeed, our Life & Legacy Planning Process features proprietary systems designed to ensure your estate plan is regularly reviewed and updated over your lifetime, so you don’t need to worry about overlooking anything, as your family, the law, and your assets change over time. Be sure to ask about these systems during your visit.

2 - Talk about wealth with your family early and often

Don’t put off talking about wealth with your family until you are in retirement or nearing death. As soon as possible, clearly communicate with your children, grandchildren, and other heirs what wealth means to you and how you’d like them to use the assets they inherit. Make such discussions a regular event, so you can address different aspects of wealth with your family as the younger generations grow and mature.

With everyone gathered under one roof for the holiday season, right now is the ideal time to have this discussion. If you feel anxious or uncomfortable talking about wealth with your family, reach out to us and ask for our help. As we covered in our previous article on how a recession can affect your family , we have processes and systems specifically designed to support you in having these delicate conversations, with far more ease than you trying to do everything on your own. We can even facilitate these discussions with your loved ones, if that’s something you are interested in.

And when you do have the conversation with your loved ones, focus the discussion on the values you want to instill, rather than what and how much they can expect to inherit. Let them know what values are most important to you, and try to mirror those values in your family life as much as possible. Whether it’s saving money, charitable giving, or community service, having your loved ones see you live your most important values is often the best way to ensure they carry those values on once you are no longer around.

3 - Discuss your wealth’s purpose

Outside of clearly communicating your values, you should also discuss the specific purpose you want your wealth to serve in your loved ones’ lives. You worked hard to build your family wealth, so you’ve more than earned the right to stipulate how it gets used and managed when you’re gone. While you can add specific terms and conditions for your wealth’s future use in estate planning vehicles like Trusts, don’t make your loved ones wait until you’re dead to learn how you want their inheritance used.

If you want your wealth to be used to fund your children’s college education, provide the down payment on their first home, or invest for their retirement, tell them so. By discussing how you would like to see their inheritance used while you are still around, you can make certain your loved ones know why you made the estate planning decisions you did. And having these conversations now can greatly reduce future conflict and confusion among your family about what your true wishes really are when you are no longer able to explain your wishes.

A Trusted, Lifelong Guide For You And Your Family

No matter how much, or how little, wealth you plan to pass on—or stand to inherit—it’s critical that you take action now to make sure that wealth is secure and offers the maximum benefit to your family. Our Life & Legacy Planning Process is designed to ensure the wealth that’s transferred is not only protected, but that it’s used by your loved ones in the very best way possible.

Moreover, every estate plan we create features a built-in legacy planning process, which ensures you can communicate your most treasured values, lessons, and life stories to those you leave behind. That’s why we call our services Life & Legacy Planning, not just estate planning. These intangible assets form the foundation of your family legacy, and they are often what we value most of all when it comes to our inheritance. Unfortunately, most estate planning lawyers focus little, if any, attention on such assets.

But we are not like most estate planning lawyers.

We will serve as your trusted, lifelong guide to ensure you make a lifetime of wise, forward-thinking choices for yourself and those you love most. And we will offer your loved ones the support they need to make the most important legal and financial decisions when you are no longer there to guide them. With our expert, caring counsel, you can rest easy knowing that the coming wealth transfer will offer you and your loved ones the most benefit possible, with the least amount of risk. Schedule your visit with us to get your Life & Legacy Plan started today.

4 Year-End Tax Saving Strategies for 2022

megan@mbraylaw.com (Megan Bray) — Mon, 19 Dec 2022 17:15:10 GMT

Although the end of the year can be a hectic time, it’s also the deadline for your family to implement a number of key tax-savings strategies. By taking action now, you can significantly reduce your tax bill due in April, but with just a few weeks left in 2022, you better act fast.

While there are dozens of potential tax breaks you may qualify for, here are 4 of the leading moves you can make to save big on your 2022 tax return.

1 - Maximize retirement account contributions

By maximizing your contributions to tax-deferred retirement accounts, such as IRAs and 401(k)s, you can not only save for retirement, but also reduce your taxable income for 2022.

In 2022, you can contribute up to $6,000 to an IRA and up to $20,500 to a 401(k) if you're under 50, and up to $7,000 to an IRA and $27,000 to a 401(k) for those 50 and older. If you don’t have the cash available to fund the maximum amount, try to contribute at least any amount that will be matched by your employer, since that’s basically free money, and you lose it if you don’t use it.

That said, the ability to deduct your traditional IRA contributions from your taxes comes with certain limitations . These limitations are based on factors, such as whether or not you or your spouse is covered by a retirement plan at work and your adjusted gross income (AGI), so make sure you know how your family is affected by these limits when taking deductions. On the other hand, Roth IRA contributions are not tax deductible, since they are made after taxes are taken out, but withdrawals from a Roth in retirement are tax-free.

Additionally, consider maxing out contributions to your Health Savings Account (HSA). Contributions to HSAs for 2022 are capped at $3,650 for individuals and $7,300 for families, with an additional catch-up contribution of $1,000 allowed for those age 55 and older.

You have until December 31, 2022 to contribute to a 401(k) plan and until April 18, 2023 to contribute to an IRA or HSA for the 2022 tax year.

2 - Defer income if you’ll make less next year

If you’re expecting to make significantly more income this year than in 2023, try to defer as much income into next year as possible. However, this strategy only makes sense if you’ll be in the same or a lower tax bracket next year.

This might mean asking your boss to delay paying a year-end bonus until after Jan. 1, 2023, or if you’re self-employed, waiting to invoice certain clients until the new year. On the other hand, if you think you’ll be in a higher tax bracket in 2023, you may want to do the opposite and accelerate income into 2022 to take advantage of a lower tax bracket.

3 - Use “loss harvesting” to offset capital gains

With the stock and crypto markets down this year, it can be the ideal time to use a strategy called “loss harvesting,” which means selling taxable investment assets, such as stocks, mutual funds, and bonds, at a loss to offset any capital gains you may have realized earlier in the year. Capital losses offset capital gains dollar for dollar.

If your losses exceed your gains, you can write off up to $3,000 of collective losses against other income. Any losses in excess of $3,000 can be carried over into the next year. In fact, you can carry over such losses year after year over your lifetime.

Note that the loss harvesting strategy does not apply to tax-advantaged accounts, such as 401(k)s, IRAs, and 529 plans. Additionally, the IRS "wash-sale" rule prohibits using this tax write-off for buying a “substantially identical” asset within a 30-day window before or after the sale that generated the loss.

Given the restrictions, you should always consult your CPA or financial advisor before employing loss harvesting to ensure it doesn’t backfire on you. And if you’d like us to meet with you and your CPA or financial advisor, we offer that service to the clients in our top-tier support plans, so be sure to ask about that if you’d love help getting all of your legal, insurance, financial, and tax systems organized and coordinated before the end of this year.

4 - Watch your required minimum distributions (RMDs)—or ensure your parents are watching theirs—if you or they are over age 72

If you have an employer-sponsored retirement plan, including a 401(k), 403(b), traditional IRA, SEP IRA, or SIMPLE IRA, you must start taking required minimum distributions (RMDs) by April 1st of the year that follows the year you turn 72. After that, annual withdrawals must be made by December 31st each year to avoid a serious penalty.

If you fail to take the proper RMD, you may face a 50% excise tax on the amount you should have withdrawn based on your age, life expectancy, and your account balance at the beginning of the year. That said, if you do make a mistake, you may be able to avoid the penalty by requesting a waiver from the IRS. You can request a waiver if your failure to take the RMD is due to a reasonable error, and you take steps to make the required distribution. To request a waiver, submit Form 5329 to the IRS , with a statement explaining the error and the steps you are taking to correct it.

Note that in 2022 the IRS updated its uniform lifetime table to calculate RMDs to account for longer life expectancies. As a result, your RMDs for this year may be slightly lower compared to previous years. To determine your RMD, refer to the IRS RMD worksheet , or use an RMD calculator .

Maximize Your 2022 Tax Savings

Implementing these—and other—year-end tax-saving strategies could save your family thousands of dollars on your 2022 tax bill. But if you don’t act soon, some of these opportunities may vanish for good, so schedule your appointment to discuss not only locking in your savings but also protecting your family.

Trusts and Taxes

megan@mbraylaw.com (Megan Bray) — Mon, 19 Dec 2022 17:10:58 GMT

People often come to us curious — or confused — about the role trusts play in saving on taxes. Given how frequently this issue comes up, here we’re going to explain the tax implications associated with different types of trusts in order to clarify this issue. Of course, if you need further clarification about trusts, taxes, or any other issue related to estate planning, meet with us for additional guidance.

TWO TYPES OF TRUSTS

There are two primary types of trusts — revocable living trusts and irrevocable trusts — and each one comes with different tax consequences.

REVOCABLE LIVING TRUST

A revocable living trust, also known simply as a living trust, is by far the most commonly used form of trust in estate planning. And as long as you are living, there is absolutely no tax impact of creating a living trust.

A living trust uses your Social Security Number as its tax identifier, and this type of trust is not a separate entity from you for tax purposes. However, a living trust is a separate entity from you for the purpose of avoiding the court process called probate, and this is where the confusion regarding taxes often comes from. But before we explain the tax implications of a living trust, let's first describe how a living trust works.

A living trust is simply an agreement between a person known as the grantor, who gives assets to a person or entity known as a trustee, to hold those assets for the benefit of a beneficiary(s). In the case of a revocable living trust, the reason there are no tax consequences is because you can revoke the trust agreement or take the assets back from the trustee at any time, for any reason. In fact, as long as you are living, you can change the terms of the trust, change the trustee, change the beneficiaries, or terminate the trust altogether.

However, upon your death, a revocable living trust becomes irrevocable, and this is when tax consequences come into play. Following your death, the trustee you’ve named will step in and take over management of the trust assets, and one of the first things that your trustee will do is to apply for a tax ID number for the trust. At this point, the trust becomes a taxable entity, and any income earned inside of the trust that is not distributed in that year would be subject to income taxes, at the taxable rates of the trust (or at the tax rates of the beneficiaries, if income is distributed to the beneficiaries).

IRREVOCABLE TRUSTS

An irrevocable trust is created when you make a gift to a trustee to hold assets for the benefit of the beneficiary, and you cannot take back the gift you've made to that individual.

When you create an irrevocable trust, either during your lifetime, or at death through a testamentary trust (a trust that arises at the time of your death through your will), or through a revocable living trust creating during your lifetime, the trust is a separate tax-paying entity, and it is either subject to income tax on the earnings of the trust at the rates of the trust or at the rates of the beneficiaries.

Unlike a revocable living trust, an irrevocable trust is (as the name implies) irrevocable. This means that the trust’s terms cannot be changed, and the trust cannot be terminated once it’s been executed. When you transfer assets into an irrevocable trust, you relinquish all ownership of those assets, and your chosen trustee takes total control of the assets transferred into the name of the trust. Because you no longer own the assets held by the trust, those assets are no longer considered part of your estate, and as long as the trust has been properly maintained, the assets held by the trust are also protected from lawsuits, creditors, divorce, serious illness and accidents, and even bankruptcy.

However, as mentioned earlier, irrevocable trusts also come with tax consequences. As of 2022, the income earned by an irrevocable trust is taxed at the highest individual tax bracket of 37% as soon as the undistributed taxable income reaches more than $13,450. To avoid this high tax rate, in some cases, an irrevocable trust can be prepared so that the tax consequences pass through to the beneficiary and are taxed at his or her rates, which are typically much lower.

We often set up a trust in this way when creating a Lifetime Asset Protection Trust for a beneficiary. When set up like this, the trust can provide the beneficiary with protection from common life events, such as serious debt, divorce, debilitating illness, crippling accidents, lawsuits, and bankruptcy, without being taxed at such a high rate on such little income.

If you have a trust set up, and would like us to review its income tax consequences for your loved ones upon your death, meet with us.

THE ESTATE TAX: WHAT IT IS & WHO PAYS IT

The estate tax is a tax on the value of a person’s assets at the time of their death. Upon your death, if the total value of your estate is above a certain threshold amount, known as the federal estate tax exemption, the IRS requires your estate to pay a tax, known as the estate tax, before any assets can be passed to your beneficiaries.

As of 2022, the federal estate tax exemption is $12.06 million for individuals ($24.12 million for married couples). Simply put, if you die in 2022, and your assets are worth $12.06 million or less, your estate won't owe any federal estate tax. However, if your estate is worth more than $12.06 million, the amount of your assets that are greater than $12.06 million will be taxed at a whopping 40% tax rate.

You can reduce your estate tax liability—or even eliminate it all together—by using various estate planning strategies. Most of these strategies are fairly complex and involve the use of irrevocable trusts, but such strategies are without question worth it, if you can save your family such a massive tax bill. To learn how to save your family from such a major tax burden, meet with us to discuss your options.

And please note, we are only speaking about the federal estate tax here. Currently 12 states have their own estate tax, which are separate from the federal estate tax. We’ll cover the specifics of what currently happens in our state regarding your estate tax, when we have a Design and Planning Session. Give us a call to schedule yours, if you have not yet had a Planning Session with us.

THE FUTURE ESTATE TAX

The current $12.06 million estate tax exemption is set to expire on Jan. 1, 2026, and return to its previous level of $5 million, which when adjusted for inflation is expected to be around $6.03 million . Here’s one thing we know for sure: This exemption can and will change. We don’t know what the estate tax exemption will be at the time of your death, and we also don’t know what the value of your assets will be at the time of your death. Because of this, when you plan with us, we will ensure that we put in place planning strategies to protect your estate from estate taxes, regardless of the amount of the estate tax exemption or the size of your assets. https://www.pressenterprise.com/2021/11/07/gift-money-now-before-estate-tax-laws-sunset-in-2025/ ]

WE’RE HERE FOR YOU

If you are trying to decide whether a revocable living trust, irrevocable trust, Lifetime Asset Protection Trust, or some other estate planning vehicle is the right solution for you and your family, meet with us. We will support you in making that decision, so your estate can provide the maximum benefit for the people you love most, while paying the least amount of taxes possible. Call us today to schedule your visit.

Spousal Lifetime Access Trusts: What You Should Know

megan@mbraylaw.com (Megan Bray) — Wed, 30 Nov 2022 17:40:08 GMT

No one wants to pay more taxes than they have to. To carry out this objective, many people search for the perfect estate planning tool that will allow them to control as much of their money and property as possible while reducing the amount they or their loved ones will have to pay the government. If you have looked for the tax-saving estate planning tools, chances are you might have come across the spousal lifetime access trust (SLAT). Here are some important things you should know before you settle on this tool as your estate planning solution.

What is a spousal lifetime access trust?

A SLAT is a type of irrevocable trust created by one spouse (trustmaker spouse) for the benefit of the other spouse (beneficiary spouse) that is used to transfer money and property out of the trustmaker spouse’s estate. This strategy allows married couples to take advantage of their lifetime gift and estate tax exclusion amounts by having the trustmaker spouse make sizable, permanent gifts to the SLAT that decrease the value of their estate while maintaining some limited access to the money and property that is gifted for the beneficiary spouse’s benefit.

How does it work?

The trustmaker spouse gifts money or property (of which they are the sole owner) to the SLAT for the benefit of the beneficiary spouse. If the couple resides in a community property state, they will likely need to convert community property into separate property through a partition agreement. The trustmaker spouse reports the gift on a gift tax return. The beneficiary spouse can receive distributions from the trust, from which the trustmaker spouse may also indirectly benefit. Upon the death of the beneficiary spouse, the trust assets are transferred to the remaining trust beneficiaries (usually children and grandchildren of the couple), either outright or in trust.

What are the pros and cons?

SLATs offer several advantages to those looking to minimize the value of their estate:

● Not only is the value of the property that is gifted to a SLAT removed from the trustmaker spouse’s estate, but all future appreciation is also removed. The trust property is also excluded from the beneficiary spouse’s estate, even though the beneficiary spouse may receive distributions from the SLAT.

● SLATs are typically structured as grantor trusts, meaning that all the trust’s taxable income is taxed to the trustmaker spouse, further reducing the trustmaker spouse’s estate. Plus, no separate trust tax return will be required for the SLAT while the trustmaker spouse is living. However, if the SLAT is not structured as a grantor trust, a separate trust tax return will be required.

● SLATs provide a way to “have your cake and eat it too.” While spouses may be concerned about losing control over money and property that is gifted away and whether that property will be needed in the future, a SLAT can address this uncertainty by allowing the trustmaker spouse indirect access to the property through the beneficiary spouse.

Some potential drawbacks to using a SLAT are as follows:

● Gifts made to a SLAT are final and cannot be undone.

● If the beneficiary spouse dies before the trustmaker spouse, the trustmaker spouse loses all access to the money and property that was gifted to the SLAT. This would also be the case if the couple were to divorce. The trustmaker could potentially regain indirect access to the trust assets by remarrying.

● The property gifted to a SLAT will not receive a step up in cost basis at the death of the trustmaker spouse. This drawback could be minimized by including a trust provision that allows the trustmaker spouse to swap trust property, thus allowing the trustmaker spouse the ability to substitute low-basis property with high-basis property or cash of equal value.

● Spouses looking to create SLATs for each other to utilize each spouse’s exemption amount fully will need to ensure they do not run afoul of the reciprocal trust doctrine. If the Internal Revenue Service interprets the two trusts as being substantially similar, it can undo the trusts and include the trust property in the spouses’ taxable estates, thus defeating the purpose of creating the SLAT. This drawback can be avoided by creating the SLATs at different times, using different trustees, choosing different beneficiaries, or providing for different terms for distributions. Given the complexity and tax implications, it is highly recommended that you consult an experienced estate planning attorney.

Why are people talking about them so much?

In 2022, the gift and estate tax exemption amount is $12.06 million for individuals and $24.12 million for married couples—a historically high amount. However, under current law, this amount is slated to shrink to $5 million (adjusted for inflation) on January 1, 2026. This decrease in the exemption amount could happen even sooner if Congress acts to change it. Last year, the House Ways and Means Committee proposed cutting the gift and estate tax exemption in half effective January 1, 2022. Because the law could change at any time, the window of opportunity to take advantage of this estate planning technique is very narrow.

Married couples who are considering taking such a step should contact an estate planning expert as soon as possible. We can help talk you through the pros and cons of using a SLAT and whether this technique makes sense for your situation.

How To Manage Your Digital Accounts After Your Death—Part 3

megan@mbraylaw.com (Megan Bray) — Fri, 18 Nov 2022 02:51:58 GMT

If you have preferences about what happens to your digital footprint after your death, you need to take action. Otherwise, your online legacy will be determined for you—and not by you. If you have any online accounts, such as Gmail, Facebook, Instagram, LinkedIn, Apple, or Amazon, you have a digital legacy, and that legacy is yours to preserve or lose.

Following your death, unless you’ve planned ahead, some of your online accounts will survive indefinitely, while others automatically expire after a period of inactivity, and still others have specific processes that let you give family and friends the ability to access and posthumously manage your accounts.

In part one and two of this series, we covered the processes that Facebook, Google, Instagram, Twitter, and Apple offer to manage your digital accounts following your death. Here in part three, we’ll conclude this series by covering the most effective methods for including digital assets in your estate plan.

5 Steps For Including Digital Assets In Your Estate Plan

If you’re like most people, you likely own numerous digital assets, some of which may have significant monetary value, and others which have purely sentimental value. You may even have some digital assets that you’d prefer your family not access at all when you pass away.

To ensure these assets are managed in exactly the way you want, take the following five steps to include this digital property in your estate plan. While many of these tasks you can do yourself, you’ll definitely want to consult with a lawyer to ensure your estate plan is properly prepared and works exactly as you intend.

01 – Create A Detailed Asset Inventory, With Access Instructions

Start by creating a list of all digital assets you currently own. Then, for each asset, provide detailed information about where the asset is stored and how it can be accessed, including all of the relevant login information and passwords. If you have numerous different accounts, password manager programs, such as LastPass , can simplify this effort.

If you own cryptocurrency, it’s essential that you prepare detailed instructions about how to access it, and ensure that one or more people you trust are aware that you own crypto and know how to find your instructions. Additionally, accessing cryptocurrency often requires complex user identification data and private keys.

Moreover, to effectively manage these assets.the person you choose to control your crypto after your death will need to know how to use a variety of digital tools, such as online wallets, digital exchanges, and other programs. Given this, leaving a detailed “How To” guide can be an ideal way to ensure your loved ones can access your digital currency with minimal hassle.

After you’ve created your inventory and access instructions, store these documents in a secure location, with your other estate planning documents, and ensure your fiduciary (executor or trustee) and lawyer know how to access these documents should something happen to you. Finally, back up any digital assets stored in the cloud to a computer, flash drive, or other physical device to make them easier to manage. And remember to update your digital asset inventory regularly to account for any new digital property you acquire or accounts you close.

02 – Add Your Digital Assets To Your Estate Plan

The next step is adding your digital assets to your estate plan. As with other assets, you’ll typically pass your digital property to your loved ones through either a will or a revocable living trust. Meet with a lawyer, to determine which estate planning vehicles are best suited for your particular assets and situation.

From there, specify in your will or trust the person, or persons, you want to inherit each asset, and include detailed instructions for how you’d like each asset managed after your death, if that’s something you’re interested in. On the other hand, some assets might have no value to your family or be something you don’t want them to inherit or even access, so you should specify that those accounts be closed or deleted by your fiduciary.

One thing you should NEVER do is provide the account information, logins, or passwords in your planning documents, where others might read them. This is especially true for wills, which become part of the public record upon your death.

For maximum security, keep this sensitive information in a secure place, and let your fiduciary know how to find and use it. To make securing and managing your digital assets easier, consider using a digital management service, such as Directive Communication Systems , instead of trying to do everything yourself.

It’s also a good idea to include terms in your estate plan allowing your fiduciary to hire an IT consultant if necessary, especially if your fiduciary doesn’t have much technical experience, or if you have particularly valuable digital property. Having a consultant available can enhance your fiduciary’s ability to manage and troubleshoot any challenges that come up.

Alternatively, you can designate a separate co-fiduciary just to manage your digital assets. Known as a digital executor, this individual is specifically tasked with managing your digital assets upon your death. If you have a lot of digital property or you own highly encrypted digital assets, like cryptocurrency, this option can be an optimal solution for safeguarding your online property.

03 – Limit Access

Your estate plan also needs to include instructions for your fiduciary about the specific level of access you want him or her to have. For example, do you want your executor or trustee to be able to read all your emails, texts, and social media posts before deleting them or passing them to your heirs?

If there are any assets you want to limit and/or restrict access to, we can help you add the necessary terms to your estate plan to ensure your wishes will be honored and your privacy protected.

04 – Include Relevant Hardware

Your estate plan should also include provisions for passing on any physical devices—smartphones, computers, tablets, flash drives—on which your digital assets are stored. Having this equipment will make it easier for your fiduciary to manage your online assets. And since the data contained on such hardware can be wiped clean, you can even leave this gear to someone other than the person who inherits the data stored on the devices.

05 – Check Service Providers’ Access Authorization Tools

Review the terms and conditions for each of your online accounts and web-based service providers for how they handle your data after death. As discussed in the first two parts of this series, some platforms have features allowing you to give your family and friends the ability to access, manage, and delete your accounts after your death.

If such functions are offered, use them to document the individual(s) you want to access and manage these accounts. Just make certain those you named to inherit your digital assets using the providers’ tools match the beneficiaries named in your estate plan. If not, the provider will probably give priority access to the person named with its tool, not your estate plan.

Adapt Your Estate Plan To The Evolving Digital Universe

As technology continues to evolve, it’s essential to adapt your estate plan to keep pace with these changes. As your Personal Family Lawyer®, we have the knowledge and experience to not only properly include your traditional assets in your estate plan, but all of your digital assets as well.

Indeed, we are keenly aware of just how valuable your digital property can be, and our Life & Legacy Planning Process is designed to ensure all of your assets—digital or otherwise—are protected, preserved, and passed on seamlessly to your loved ones in the event of your death or incapacity. Furthermore, we can ensure you have the maximum level of privacy, and you stay in full compliance with the latest laws governing the ever-changing digital universe. Contact us today to get started.

How To Manage Your Digital Accounts After Your Death - Part 2

megan@mbraylaw.com (Megan Bray) — Tue, 08 Nov 2022 14:59:38 GMT

Last week, in part one of this series, we covered the processes that Facebook and Google have in place to manage your digital accounts following your death. Here in part two, we’ll continue our discussion, covering how Instagram, Twitter, and Apple’s collection of online platforms handle your accounts once you log off for the final time.

Instagram

Given that Instagram is owned by Facebook, the photo and video-sharing social media platform’s processes for handling your account after your death are similar—but not entirely the same—as Facebook’s. As a reminder, Facebook allows you to name a legacy contact to handle your death, and Instagram gives you two options for managing your account after death: You can either have your account memorialized, or you can have it deleted.

However, it’s your family—not you—that has the final say. This makes it all the more important that your loved ones are well-aware of your wishes for how you’d like this digital asset managed when you die.

In order to have your account memorialized, Instagram requires a family member or friend to submit a special request form, along with proof of your death, such as your obituary or death certificate. Once your account is memorialized, the word "Remembering" appears next to your profile name, and your account will basically be frozen, appearing exactly as you left it before your death.

All posts shared on your memorialized Instagram account will be preserved and shared with the same audience they were before your death. No one can log into your memorialized account, make changes to your posts, profile information, or settings. Additionally, your memorialized account will no longer appear in public Instagram forums, such as its Explore page.

Alternatively, Instagram allows your account to be permanently deleted after your death. According to Instagram's policy, only family members can have your account deleted, and this requires a bit more effort than memorialization.

To have your Instagram account permanently erased from cyberspace, your loved ones must not only submit a special form , but they must also supply your birth certificate, proof of death, as well as proof that they are your lawful representative under local law, the latter of which can take the form of a power of attorney document, a will, or an estate letter.

Twitter

Twitter’s policies regarding the management of your account after death are fairly simple. In fact, the company only gives you one option: the deactivation of your account. Like Instagram, Twitter leaves the decision as to what happens to your account after your death up to your family. Twitter’s Help Center offers a page with the specific details about deactivating a deceased person’s account.

If your family has your login and password information when you die, it’s fairly easy. Whoever has your login and password (plus 2fa access, if you have 2fa turned on) can login to your account on their own, and select the “deactivate my account” option. From there, the account will be deleted after 30 days of inactivity. That said, the account can be reactivated, simply by someone logging back into your account before 30 days expires.

If your family doesn’t have your login information, Twitter offers an alternate option for your account’s deactivation. However, Twitter notes that this option is only available to verified family members and estate executors.

The process starts by having a family member or your executor fill out a special form requesting the removal of your account. Following the request, Twitter will email instructions asking the person for additional details, including information about your death, a copy of their ID, and a copy of your death certificate.

From there, Twitter will review each request individually, but as long as the proper information is provided, Twitter notes that the vast majority of these requests are granted. Keep in mind that such requests will result in the account’s permanent deletion, so make sure your loved ones carefully consider their decision, since once deleted, the process cannot be reversed.

Apple Devices & Services

As you likely know well, all Apple devices and services require an Apple ID. This ID is used for everything from logging on to your iCloud files and making ‌App Store‌ purchases to tracking and finding your lost iPhone with the ‌FindMy app.

Like Facebook, Apple lets you select a “Legacy Contact” to manage the data and devices connected to your Apple ID after your death. Your Legacy Contact can be anyone you choose, and you can even designate more than one Legacy Contact.

The data your Legacy Contact(s) can access and manage includes items, such as photos, videos, messages, notes, files, contacts, calendar entries, downloaded apps, and backups of any devices stored in iCloud. Your Legacy Contact(s) will also be able to remove the Activation Lock from your devices, so they can personally use them, give them away, or sell them.

However, your Legacy Contact(s) will NOT have access to your login or password information, your payment information, your iCloud email accounts, or any of your licensed media. This means that you can’t pass on your collection of music, movies, or apps, unless that media already exists on one of the devices you own.

Before providing access, Apple reviews all requests made by your Legacy Contact(s). To gain access, your Legacy Contact(s) will need the access key provided when they were first nominated, as well as a copy of your death certificate and your date of birth. This makes it vital for your Legacy Contact(s) to print out a physical copy of their access key and safely store it, rather than relying on it being saved in your messages app or password manager.

Once access is approved, your Legacy Contact(s) receives a special Apple ID to access your account. From then on, your old Apple ID and password will no longer work, and Activation Lock is removed from all devices using your Apple ID. From the time the first legacy account request is approved, your Legacy Contact(s) has three years to access your data and devices, after which your account is permanently deleted.