Estate and Business Planning Legal Blog

While there are very sophisticated estate planning techniques used to reduce one's taxable estate, while the client is living, there are also some simple, inexpensive ways to do so.  Yes, attorneys can establish all types of trusts for clients, in order to shelter assets from estate taxes, and those trusts are certainly useful, but things don't have to be that complicated.  Here are just a few easy ways to accomplish your goals.

1.  Annual Gifting:  Each person can give the sum of $14,000 per individual each year, without having to report the gift on a gift tax return, and without it reducing the donor's unified credit for estate taxes.

Successful business owners often work long and hard, focusing all of their efforts on building and expanding their businesses.  Often, owners have partners who work together amicably toward the common goal of achieving success. As a result, having a partnership or shareholder agreement in place is usually not a priority. 

The best opportunity for people to negotiate an agreement to provide for business succession is when they are working together in a cooperative fashion.  We have all heard about and seen too many situations where business owners worked together for many years successfully and then an owner becomes disabled, dies, or decides he or she doesn’t wish to work in the business any more.
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It sometimes seems confusing to clients to find out that the probate process (the court process one needs to go through when a person passes away and leaves a will) and the administration process (when one dies without a will) is different in every state. While there are many similarities in the process, some states have more streamlined processes than others.

Surprisingly, New York is one of the easiest states to probate a will and administer an estate, while Florida is one of the most difficult.  If one is a snowbird, spending time in each state, the question becomes, in what state is the will probated or the estate administered?  This is determined by the residency one declares while one is alive.  Having said that, however, caution must be taken when giving information for the death certificate, because the state you put down for residency there will often control where the procedure must occur.
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Of course, the best way to find a law firm for your business is by referral.  Therefore, one should ask family, friends and business acquaintances for a recommendation.  In the absence of that, business and networking organizations are a good source, along with the internet.  No matter how you get the information you are looking for, before choosing a firm, there are a few important factors to consider.

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Clients frequently decide that they would like to move to the State of Florida and become Florida residents.  The reason for this is usually financial, as Florida does not have an income tax, nor do they have an estate tax.  Unfortunately, the move is often made without careful thought of the consequences of such a move.  If one simply wants to spend a good deal of time in Florida, there is certainly nothing wrong with that.  Becoming a Florida resident, however, is more involved.
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There are many reasons why one might obtain life insurance and the purchase of such insurance should seriously be considered when doing estate planning. The most common situation where life insurance is necessary is in the case of a couple who has young children.  In that situation, it is common for one or both spouses to obtain term insurance, which is generally not terribly expensive but lasts only for a term of years, to provide the funds necessary to raise the children if something were to happen to one or both parents. While there is no cash value to such policies, the cost is considerably less than whole life  and variable insurance and it covers a temporary need.

Life insurance is also an important component of the estate plan of someone who may have substantial assets but whose assets are not liquid.
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The terms "elder law" and "elder care" have become popular, catchy phrases people now use, to describe an array of planning techniques that are available to people as they age.  Very basically, elder law planning involves having the proper legal documents, such as a will, health care proxy, living will and durable power of attorney. The purpose of these documents is to protect oneself in the event of disability and death.

In fact, the health care proxy, living will and power of attorney are probably more important to have than a will.  Why is that so?  Because if you become disabled and you do not have the proper documents in place, your family will likely wind up in court, commencing a guardianship proceeding to have you declared incapacitated, and to give them power to make decisions on your behalf.
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There are some very simple steps an employer can take in order to  reduce the occurrence of employment-related litigation.  Of course, the employee selection process is the first place to start.  Employers should not make promises to prospective employees (or even current employees) without first giving thought to the consequences of doing so.  Being honest and straightforward and not committing to any future promotions, salary increases and the like, even if done verbally and not in writing, is extremely important. 

Knowing what to do when a loved one becomes ill can alleviate some of the uncertainty and anxiety that normally follows. Oftentimes, people panic and start making changes to their estate plan without first consulting with an experienced attorney or tax advisor. Family, friends, and others who want to help, tend to give well-meaning advice. They may suggest putting assets into the name of the well spouse alone, transferring assets, and/or adding or changing beneficiaries to accounts.  Following such advice without considering the tax and other consequences can have unintended, adverse consequences.  One should not begin to make changes to bank accounts and other investments unless and until all of the tax implications have been examined.