Estate planning might seem like something only wealthy people need, but if you own a small business, it is crucial. Without a plan, you risk leaving your business and your family in a tough spot if something happens to you. A solid estate plan makes sure your business can continue to run and that your family and chosen successors are taken care of.
When you own a business, you are not just thinking about yourself but about everyone who depends on it. Estate planning helps you protect both your personal and business assets. If you do not create an estate plan, the state will decide who gets control of your business. This can lead to unintended consequences like splitting ownership between your spouse and children, which might not reflect your wishes.
Tools like wills or trusts can ensure your business ends up in the right hands. You can even pick different people to handle your personal and business assets, which makes sure everything is managed by the right person.
One of the most important things for business owners is having a succession plan. This plan says who will take over your business if you can no longer run it. Without one, your business could face confusion or, worse, arguments among family members or partners.
If your business is an LLC, you can pass ownership to your children while also cutting down on estate and gift taxes. This way, your business stays in the family without unnecessary legal and tax complications.
Another big benefit of estate planning is that it helps lower taxes. Using strategies like buy-sell agreements, life insurance, and trusts, you can reduce estate taxes, giving your family more of your assets. It also provides the liquidity needed to pay off any debts, so they do not have to sell parts of the business to cover costs.
Estate planning is key for small business owners who want to protect their legacy and provide for their families. The right plan can help reduce taxes, avoid legal complications, and ensure a smooth transition for your business. For help with your estate plan, reach out to O’Brien Law Firm, LLC, for experienced guidance.
There are several reasons why some people want to exclude their children from their will. It could be because they are estranged from the child or because they have already provided lifetime gifts to the child. Still, wanting to exclude your child from your will requires significant consideration as it has legal implications.
Even if you would like to exclude your child or children from your will, you are not allowed by law to disinherit minor children. Minors are legally protected from disinheritance. The law entitles these children to any financial support they would have received if they had lived with you until they became legal adults.
The law does not protect adult children as it does minor children. However, failing to name them in the will is not enough to ensure that they don’t receive part of your estate. Sometimes, the court assumes that the lack of a name in the will is unintentional, and they can be awarded an equal share as the other beneficiaries you name. If you would like to disinherit your adult child, you must provide the omission as direct information and ensure that the omission is intentional and not an oversight.
Inasmuch as you can exclude your adult children from your will, you must consider a few other factors, such as the following.
Take Action to Ensure Your Wishes Are Honored
The law does not deny you the right to exclude your child from your will. However, the law steps in to protect the rights of minor children, the disabled, or those who need help with medical expenses. Consult an experienced estate attorney in Southaven, MS, to ensure that you navigate these complex decisions. O’Brien Law Firm, LLC, is here to help. Reach out to us today for a consultation.
If you love pets, it means that you consider them an important part of your family. Pets are categorized as one’s property in most states. Still, there’s a lot that goes into caring for pets, and that care and love should continue even after you are gone. So, how can you ensure that your pets are cared for in your estate plan?
In the same way that a person establishes a trust for their children who have not come of age, you can ensure that your pets are cared for in your estate by establishing a trust for them. Understandably, setting up a trust for your pets is usually a long, complicated, and expensive option. However, it is necessary if you want to leave your pets in good hands and with enough money to pay for their daily expenses throughout their anticipated lifespan.
When establishing a trust for your pet, you should plan to ensure that they will be in good hands when you are no longer around to love and care for them. Given that pets are like children and they tend to accept someone they trust and are familiar with, you must find them the right caretaker.
You can look from within your circle of friends and family and then speak to the persons you consider long before you include their names in the trust document. If the person accepts to be your pet’s caretaker, you should go over your expectations and see that they agree with these expectations. Most importantly, you should ensure you choose a person who has your pet’s best interests at heart.
The final step as you work on plans to ensure that your pet is cared for in your estate plan is to provide for them enough funds. Ensure that the funds can cover the cost of their food, vet visits, and grooming. The goal is not to burden the caretaker by expecting them to pay for the pet’s expenses out of pocket.
If you love your pets and want them taken care of after your passing, you can make plans to have them live comfortably with someone they know and trust. If you are unsure where to start, contact O’Brien Law Firm, LLC, for expert legal guidance today.
A power of attorney (POA) is a written authorization granting an individual the power to act on your behalf on legal, financial, or health matters if you become incapacitated. The appointee, often called an agent or attorney-in-fact, makes decisions in your best interest if you cannot make them yourself. Arranging a power of attorney in advance has numerous benefits. These include:
A well-written power of attorney outlines all your assets and gives directives on when your attorney-in-fact can access them. The authorized agent manages your property and financial assets as outlined in the document. The POA also clarifies your intent and wishes in advance, helping protect your assets from mismanagement.
Dealing with health emergencies can be hectic, especially if you have a chronic condition. A healthcare power of attorney document can help manage medical emergencies. It outlines critical information, such as your healthcare provider and health records, allowing the authorized agent to make medical decisions on your behalf.
Family conflicts can arise if you don’t have a power of attorney in place. After all, this document outlines which family members have the power to represent you. A POA can help prevent conflicts and court battles involving your loved ones.
A POA can ensure financial security if you empower a trusted expert to manage your financial matters in case of inability or incapacity. The authorized agent will handle your accounts, sign checks, file taxes, and pay bills according to plan, preventing mismanagement.
Without a POA, the court may have to appoint a guardian to manage your assets and make decisions on your behalf. You and your family will not have any control over the court-appointed conservator. You can avoid this situation by setting up a power of attorney in advance.
A POA is essential in legal, financial, and health matters. It empowers your loved ones or trusted individuals to act on your behalf, preventing family conflicts and protracted legal battles. Our experienced attorneys at O’Brien Law Firm in Southaven, MS, can help you create and revise your power of attorney documents to meet your needs. Contact us today for legal assistance.
When undertaking estate planning, you naturally want your assets to be distributed according to your wishes after your demise. One of the estate planning tools you can use to achieve this is a trust.
Trusts are legal arrangements where the asset holder transfers their assets to a third party called a trustee. The trustee does not take ownership of the assets but manages them on behalf of the designated beneficiaries. The most common types are revocable trusts and irrevocable trusts.
What Are Revocable Trusts?
A revocable trust allows the grantor to retain control over the assets in the trust. In this arrangement, the grantor can add, remove, or modify assets and beneficiaries at will. They may or may not consult the trustees while doing so.
Generally, assets under revocable trusts do not undergo the probate process when the grantor passes away. This saves the beneficiaries time and money. Regarding taxation, revocable trusts are considered part of the trustor’s estate. As such, they have to pay income taxes on the trust’s earnings. Another downside is that they are not shielded from creditors if the grantor has debts.
What Are Irrevocable Trusts?
Irrevocable trusts are a type of trust agreement that can only be modified with beneficiary or court approval. The assets in an irrevocable trust are not considered property of the grantor. Ownership lies with the trust itself, which in turn serves for the benefit of the designated beneficiaries.
Due to their ownership structure, irrevocable trusts are typically used when grantors want to reduce their estate taxes. They also protect the trust’s assets from creditors. Further, the trust’s assets can’t be attached in any lawsuits touching the grantor, as they are not considered the grantor’s property.
Get Informed Advice
Personal goals differ, and the above types of trust can be ideal for different people. Our team of estate planning and probate attorneys can help you determine the right trust for you and assist you in setting it up. Call O’Brien Law Firm in Southaven, MS, today to learn more about our services.
