Author: Neel Shah

When confronted with what to do for business succession planning, a business owner might consider multiple options including passing the business on to other family members, selling the business to stakeholders currently working in the business or even selling the business to an outside individual. Scenarios such as sudden disability or death of a business owner can present serious challenges for a sole practitioner.

Despite these potential challenges, the reality is that too little succession planning is done. Less than one third of businesses actually pass to the next generation and less than 30% of those go on to pass to the third generation. If no grooming of a successor has happened yet, selling the business may be the best choice. This involves careful analysis of the uniqueness of the company, the local market, and potential profitability.

Working with a business broker can help to better understand how to set a realistic selling price and legal advisors can counsel about all possible options. Remember that planning for your business succession now can help to reduce legal challenges and concerns in the future.

First defined in 1968, ageism refers to the systematic stereotyping of and discrimination against individuals as a result of their age. Social scientists argue that we first look at new people through the prisms of gender, race and age. While gender and race are politically sensitive, perception of age will often serve to present as stereotypes like being frail, stubborn, unable to learn or unable to remember.

Many people approaching older ages feel as though these stereotypes are persistent throughout their daily life even when they are not accurate. According to a recent survey done by AARP, 58% of interviewed individuals argue that they had been subjected to humor and jokes based on their age.

Age discrimination can be found indirectly in healthcare where research money and even ICU treatments skews towards the younger, and where facilities for the treatment of the elderly often fail to meet minimum standards.

On a more positive note, AARP research did determine that a positive attitude and perspective from an individual about growing older can add an average of seven and a half years to that person’s life span. When it comes to choosing a facility for elder care, make sure you research it properly in order to determine whether ageism is a potential issue. Consult with an elder law attorney to learn more about potential issues.

Recently European succession regulation went into effect for all members of the European Union except Denmark, the United Kingdom and Ireland. One important regulation for those considering estate planning abroad is that a person’s habitual residence at the time of their death determines the law which applies to estate determinations.

In essence, this means that US citizens who habitually lived in Paris could be bound under French law for the purposes of managing the estate. In some cases, this could be overridden if an individual selects to be bound by the laws of his or her nationality, thereby bypassing local law completely. The key is to plan ahead to examine the options given your situation and to realize that a regulation may provide unprecedented flexibility in estate decisions.

If you spend a great deal of time in Europe or elsewhere, make sure you’ve consulted with your US based estate planning attorney to factor in potential challenges or opportunities based on your living situation.

A second marriage can raise many questions about who gets what, whether these people should get property, and will feelings be hurt? Each spouse should allot 30 minutes to spend time listing assets and discussing the potential future of these assets. Each member of the couple should also consider carefully what happens if the other spouse were to pass away first.

Getting married again provides the perfect opportunity to re-examine your will and make it as specific as possible in terms of beneficiary listings in particular. It is important that none of these beneficiary listings violate an existing divorce decree.

One common estate planning tool used by those in a second marriage is an irrevocable trust. This provides specificity of heirs, privacy and near certainty. As few irrevocable trusts are overturned in court, many require beneficiary approval and the judge to do this, making them an obvious choice for estate planning purposes.

Knowing what you need is simply the first step in estate planning. Most people will use a power of attorney, a will and a healthcare directive but more advanced planning could use trusts. When learning more about putting together a trust with your estate planning attorney, ask about the cost for this upfront. 

If the attorney offers a flat fee, be sure to ask whether this includes limits on time or document preparation. Selecting the right attorney the first time is crucial to your success when putting together a trust. Make sure that this individual has experience and the rapport to discuss sensitive decisions with your family members.

Finally, it’s important that you be prepared. Make sure you have all documents necessary during the initial meeting and be prepared to be decisive. Being unclear about your goals or not sure what step to take next could result in additional charges. Having an upfront knowledge about what an attorney charges to put together your trust gives you peace of mind about what to expect and the benefits you will receive from this service.

Planning for your later life and how you’ll use your assets to support your retirement might involve a Continuing Care Retirement Community. This rides the spectrum from independent living all the way through to 24-hour care. And these can offer the benefit of lifetime membership and participation.

Entry fees for these retirement communities however, can be expensive. The fees for initial entrance could be more than $20,000 and monthly fees could reach $3,500. As this is a once in a lifetime decision, great care and consultation should be used to explore the financial soundness and the maturity as far as length and time of business at these facilities.

Many CCRCs mandate Medicare A and B, while some add the supplement and some accept long-term care protections. But State by State standards and enforcement will vary, so care must be taken. When making any decisions about your own future or that of a loved one, consult with an elder law specialist who can advise you about your options and whether a Continuing Care Retirement Community is truly the best fit.

When a last will and testament is created, an executor begins to play an important role in carrying them out. During and after probate, an executor provides critical functions. This is why you should carefully consider who you will select as your executor.

An executor is bound by fiduciary duty, meaning that he or she is required to adhere to high standards when administering the estate. During the administration phase, an executor will gather information, pay debts, and deal with expenses and taxes associated with closing the estate. Since the executor manages important responsibilities like filing tax returns and handling distributions from the estate.

Some of the factors that might preclude an individual from serving as an executor include history of felony convictions, being a non-resident, being found unsuitable by the judge at his or her discretion, or the naming of a corporation not authorized to serve as a fiduciary.

Be sure to speak with your estate planning specialist about how to narrow down your search for an executor. Understanding the role this person plays in managing your estate is essential for success in the long term.

Appointing a trustee is an important evaluation that should involve careful consideration of a person’s ability to help serve in this role. If a trustee eventually proves poor at his or her job or they pass away, a trust protector may aid with flexibility and control. A trust protector can be seen as like a police officer who can write out tickets. 

The protector role can even be customized functioning from everything from an advisor to the trustee to someone who monitors actions and could eventually remove a trustee who is no longer the right fit for the job. The trust protector is a perfect fit for the irrevocable trust where the creator has no control. The protector can add beneficiaries, manage a special needs child over the long-term, and monitor estate law changes so as to maximize tax savings and income.

Keeping a family together requires talking and planning, and this is also essential when putting together your goals for your estate. In this process you should be focused on the people involved rather than simply the tax and investment considerations. Be aware of some key concerns when thinking about planning for your own family’s future such as trying to dictate a career choice, bailing children out of repeated bad decisions or paternalism.

Fight entitlement by demonstrating and promoting appreciation and explain the process of how acquisition decisions are made within your family. Finally, communication is key. Communicate as to how money will pass down after you have passed away. Involve children from the process of planning money, and analyzing it from a young age with family meetings. You might even consider setting up a family foundation to help teach your children important lessons about their finances.

 Being the parent of a child with special needs requires careful planning and consideration of the child’s future. It’s important to know many children with special needs often live full lifespans. Knowing that you are likely to precede your child in death is a good opportunity to plan ahead and set up a structure to help support them well into the future.

One way that parents can do this is by being an advocate for the child’s education. This is a mandated right until age 21. As a parent you have the opportunity to help secure and monitor all available services with regard to education for your child. In addition to focusing on all educational opportunities available for your child, make sure that you create a life care plan that addresses housing, financial and medical needs. One way to do this is through the creation of a special needs trust.

Additionally, you may want to consider the possibility of appointing a guardian to help the child manage assets within a trust or other structure. If the child’s capabilities permit it, the child could also be involved in authorizing an agent to assist with the process of planning for a financial future. If necessary, life insurance can be a good supplement to help you. Finally, create a letter of intent that conveys all of your aspirations for the child so that a future guardian or healthcare assistant can understand your perspective.

When a family member is looking at the need for long term care, it might seem overwhelming because there is so much material to be found about this transition both online and in print. Some of it greatly simplifies the Medicaid process, making it look as though you can easily guide your loved one through qualification.

The reality is that what seems like small mistakes now can end up costing your loved one later in a big way. Attempting to pass on all assets quickly, for example, presents a concern because Medicaid uses a lookback period. This means that your loved one might face penalties if he or she is determined to have tried to circumvent the system in order to qualify for government assistance sooner rather than later.

Medicaid may be a critical component of your loved one’s care, but you need to understand what’s allowed and what’s not. In addition to these basic guidelines, an experienced elder law attorney can give you advice about other strategies that provide the best possible outcome for your loved one. Don’t hesitate to get professional help in these important situations

It goes without saying that knowing one estate planning attorney does not mean you know them all. Finding the right mix of experience, expertise, and compassion is important for anyone looking to put together a plan for the future.

In an initial consultation, it’s a good idea to ask for testimonials. Your attorney might have them directly posted on a public forum like Avvo or a business Facebook page, but you can do your own due diligence by asking for contact information of satisfied clients, too. Hiring someone to put together these materials for you or your family is an important task and one that should be undertaken with care. Make sure you consult with others who have engaged an attorney’s services so that you understand how your own needs will be handled.

In the best case scenario, this can highlight just how much value you get from working with the right attorney. In the worst case scenario, it gives you a heads up before engaging in a business relationship that is not the right fit for you.

Family business carries with it a unique set of responsibilities and requirements, and the story of Cloyce Box illustrates that clearly. Cloyce went from having a football career with the Detroit Lions to founding Oklahoma Cement and Box Energy. After raising four sons, Cloyce passed away suddenly in 1993.1

Prior to Cloyce’s death, a ten-year legal battle involved the cement firm and a new marriage presented serious issues. When Cloyce passed, his two brothers, serving in the roles of CEO and Chairman, were unable to get along with other siblings and had no shared vision.

Lawsuits led to an appearance in federal court and the sale of the company for $220 million. While this seems like an exciting tale ending in a good result for the brothers- the resale of the company by the new buyer yielded a price of $1.36 billion. That’s why Brother Doug Cloyce now works as a consultant, warning others with the cautionary tale of his family’s business arc.

It’s not a surprise that people are increasingly mobile these days, and that applies to more than just the online sphere. More clients are coming to us with assets in multiple states, all of which must be addressed properly in an estate plan. 

Rules within states can vary from one to another, so it’s critical to have an estate planning attorney who is looking at the bigger picture. Read on to learn more about the key issues to watch for in this situation:

• Differing inheritance and estate tax rules. These situations can get complex very quickly, so do an evaluation with your attorney to talk about where your assets are at.
• Learn about transfer taxes. Sometimes, pieces of properties will be transferred between spouses or engaged with alternatve gifting strategies. Your attorney can help you understand any income or gift tax consequences associated with these transfers.
• Factor in the potential for multiple healthcare directives. You might need proxies that consider the laws of the states where you spend the most time.
• Plan to avoid ancillary probate. Having property in more than one state can complicate things- talk through your options with your estate planning attorney so that you’re clear about the best options for your situation.