Elder Law 101

As a business owner, you’ve likely put in countless hours and made significant investments to build and grow your business. But have you considered what will happen to your business when you retire or pass away? Business succession planning is a crucial aspect of any business owner’s overall estate plan, yet it’s often overlooked or put off until it’s too late. In this article, we’ll discuss the importance of business succession planning and what steps you can take to protect your business and ensure its continued success.

Why Business Succession Planning Matters

Business succession planning is the process of creating a plan for the transfer of ownership and control of your business in the event of your retirement, disability, or death. Without a proper plan in place, your business could be at risk of being sold off, dismantled, or simply closing its doors. Here are a few reasons why business succession planning is so important:

Ensures a Smooth Transition of Ownership

One of the most important reasons to have a business succession plan in place is to ensure a smooth transition of ownership. With a proper plan in place, you can determine who will take over the business when you retire or pass away, and how the transfer of ownership will take place. This can help to minimize disruptions to the business and ensure that it continues to operate smoothly.

Protects Your Family and Employees

Having a business succession plan in place can also help to protect your family and employees. Without a plan, your family may be left with a business they don’t know how to manage or sell, and your employees may be left without jobs. A proper plan can help to provide for your loved ones and ensure that your employees are taken care of.

Maximizes the Value of Your Business

Having a business succession plan in place can also help to maximize the value of your business. By planning for the transfer of ownership in advance, you can take steps to increase the value of the business and ensure that it is in the best possible position for a successful transfer.

Steps to Take for Business Succession Planning

Now that we’ve discussed the importance of business succession planning, let’s take a look at some steps you can take to protect your business and ensure its continued success:

Create a Plan

The first step in business succession planning is to create a plan. This plan should outline how ownership and control of the business will be transferred, who will take over the business, and how the transfer will be funded. It’s important to work with an experienced attorney who can help you create a plan that meets your unique needs and goals.

Identify and Train Successors

Once you have a plan in place, it’s important to identify and train your successors. This may include family members, employees, or outside investors. It’s important to provide them with the knowledge and skills they need to successfully run the business.

Consider Tax Implications

When creating a business succession plan, it’s important to consider the tax implications of the transfer. This may include estate and gift taxes, capital gains taxes, and other taxes that may apply. Working with an experienced attorney and tax professional can help ensure that you minimize your tax liability and maximize the value of your business.

Review and Update Your Plan Regularly

Finally, it’s important to review and update your business succession plan regularly. Changes in your personal life or in the business itself may require updates to the plan. Regular reviews can help ensure that the plan remains relevant and effective.

Conclusion

In conclusion, business succession planning is an important aspect of any business owner’s estate plan. It can help ensure a smooth transition of ownership, protect your family and employees, and maximize the value of your business. By creating a plan, identifying and training successors, considering tax implications, and regularly reviewing and updating the plan, you can help protect your business and ensure its continued success.

At Beasley & Ferber, our team of experienced attorneys can help you create a business succession plan that meets your unique needs and goals. We understand the complexities of business succession planning and can help you navigate the process with confidence. Contact us today to schedule a consultation and learn more about how we can help you protect your business.

When it comes to estate planning, it’s important to understand the difference between probate and non-probate assets. Probate is the legal process of administering a deceased person’s estate, which includes paying any outstanding debts and distributing assets to heirs. Non-probate assets, on the other hand, are assets that pass outside of the probate process. In this article, we’ll discuss the difference between probate and non-probate assets and what steps you can take to protect your estate and your heirs.

What are Probate Assets?

Probate assets are assets that are owned solely by the deceased person and that do not pass automatically to a named beneficiary. These assets must go through the probate process in order to be distributed to heirs. Examples of probate assets include:

• Real estate that is owned solely by the deceased person
• Bank accounts that are solely in the deceased person’s name
• Personal property such as furniture, jewelry, and artwork
• Business interests that are solely owned by the deceased person
• Life insurance policies that are payable to the deceased person’s estate

What are Non-Probate Assets?

Non-probate assets are assets that pass outside of the probate process and that are typically distributed directly to named beneficiaries. Examples of non-probate assets include:

• Jointly owned property with right of survivorship
• Bank accounts that have a named beneficiary
• Retirement accounts and pensions that have a named beneficiary
• Life insurance policies that are payable directly to a named beneficiary
• Trusts that have a named beneficiary

Why is it Important to Understand Probate vs. Non-Probate Assets?

Understanding the difference between probate and non-probate assets is important for several reasons. First, it can help you ensure that your assets are distributed according to your wishes. By naming beneficiaries for non-probate assets, you can ensure that these assets are distributed directly to the people you choose without going through the probate process.

Second, understanding the difference between probate and non-probate assets can help you minimize the time and expense of the probate process. By ensuring that as many assets as possible are non-probate assets, you can reduce the amount of time and money that your heirs will need to spend on the probate process.

How to Protect Your Estate and Your Heirs

Now that we’ve discussed the difference between probate and non-probate assets, let’s take a look at some steps you can take to protect your estate and your heirs:

Create a Comprehensive Estate Plan

The first step in protecting your estate and your heirs is to create a comprehensive estate plan that includes a will, trusts, and other important documents. Working with an experienced estate planning attorney can help ensure that your assets are distributed according to your wishes and that your heirs are protected.

Review and Update Your Estate Plan Regularly

It’s important to review and update your estate plan regularly to ensure that it remains relevant and effective. Changes in your personal life or in the law may require updates to your estate plan, so it’s important to review it at least once a year.

Name Beneficiaries for Non-Probate Assets

By naming beneficiaries for non-probate assets such as retirement accounts and life insurance policies, you can ensure that these assets are distributed directly to the people you choose without going through the probate process.

Consider Trusts

Trusts can be a valuable tool for protecting your assets and ensuring that they are distributed to your heirs according to your wishes. A trust can help you avoid probate, minimize estate taxes, and provide for the ongoing management of your assets after your death.

Consult an Experienced Estate Planning Attorney

Finally, it’s important to consult with an experienced estate planning attorney to ensure that your estate plan is comprehensive and effective. An attorney can help you understand the difference between probate and non-probate assets and can provide guidance on how to protect your estate and your heirs.

Conclusion

Probate and non-probate assets can have a significant impact on how your estate is distributed and on the amount of time and expense that your heirs will need to spend on the probate process. By understanding the difference between these two types of assets and taking steps to protect your estate and your heirs, you can ensure that your assets are distributed according to your wishes and that your loved ones are protected.

At Beasley & Ferber, our team of experienced estate planning attorneys can help you create a comprehensive estate plan that meets your unique needs and goals. We understand the complexities of probate and non-probate assets and can help you navigate the process with confidence. Contact us today to schedule a consultation and learn more about how we can help you protect your estate and your heirs.

Estate planning can be a daunting task, but it’s a necessary one to ensure that your assets are protected and your loved ones are taken care of after you pass away. One option to consider when creating your estate plan is setting up a trust. Trusts can be a valuable tool in achieving your estate planning goals. In this article, we’ll discuss what trusts are, the different types of trusts, and how trusts can help you achieve your estate planning goals.

What is a Trust?

A trust is a legal arrangement in which one person (the trustee) holds and manages assets for the benefit of another person (the beneficiary). The person who creates the trust is known as the grantor. Trusts can be revocable, meaning they can be changed or revoked during the grantor’s lifetime, or irrevocable, meaning they cannot be changed or revoked once they are established.

Different Types of Trusts

There are many types of trusts, each with its own benefits and drawbacks. The most common types of trusts include:

Revocable Living Trusts: These trusts are created during the grantor’s lifetime and can be changed or revoked at any time. They are often used to avoid probate, which is the legal process of settling an estate.

Irrevocable Living Trusts: These trusts cannot be changed or revoked once they are established. They are often used for asset protection, as they can help protect assets from creditors or lawsuits.

Testamentary Trusts: These trusts are created through a will and take effect after the grantor’s death. They are often used to provide for minor children or other beneficiaries who are not able to manage their own finances.

Special Needs Trusts: These trusts are used to provide for beneficiaries with disabilities without disqualifying them from government benefits.

Charitable Trusts: These trusts are established to benefit a charitable organization.

How Trusts Can Help You Achieve Your Estate Planning Goals

Trusts can be an effective tool in achieving your estate planning goals. Some of the benefits of trusts include:

Avoiding Probate: Trusts can help avoid the probate process, which can be time-consuming and costly.

Protecting Assets: Irrevocable trusts can protect assets from creditors or lawsuits.

Providing for Minor Children: Testamentary trusts can provide for minor children or other beneficiaries who are not able to manage their own finances.

Providing for Beneficiaries with Disabilities: Special needs trusts can provide for beneficiaries with disabilities without disqualifying them from government benefits.

Maintaining Control: Trusts allow the grantor to maintain control over how their assets are distributed after they pass away.

Tax Planning: Certain types of trusts can be used for tax planning purposes, such as reducing estate and gift taxes.

Contact Beasley & Ferber for Assistance

Trusts can be a valuable tool in achieving your estate planning goals. They can help you avoid probate, protect your assets, provide for your loved ones, and maintain control over your assets. It’s important to work with an experienced elder law and disability law firm like Beasley & Ferber to determine which type of trust is best for your specific needs. Contact us today to learn more about how we can help you achieve your estate planning goals.

At Beasley & Ferber, we have over 60 years of combined experience in estate planning. For more information about estate planning and to get started with an estate attorney in New Hampshire today, please contact Beasley & Ferber today.

As we age, one of our primary concerns is protecting our assets, including our homes. One strategy that some people consider is gifting their home to their children. While this may seem like a straightforward way to protect the value of your property and pass it on to your children, there are several important factors to consider before making such a decision.

In this article, we will explore the benefits and risks of gifting your home to your children, and what you need to know before taking this important step.

The Benefits of Gifting Your Home to Your Children

Gifting your home to your children can have several benefits, including:

Protection from creditors: By gifting your home to your children, you remove the asset from your estate, which means that it is no longer vulnerable to creditors. This can be particularly important if you are facing a lawsuit, bankruptcy, or other financial difficulties.

Reduced estate taxes: If your estate is large enough to be subject to estate taxes, gifting your home to your children can help reduce the tax burden on your estate. This is because the value of the home is no longer part of your estate, and therefore not subject to estate taxes.

Simplified probate: Probate is the legal process that occurs after someone dies to distribute their assets. If you gift your home to your children, it can simplify the probate process, as the property will already be in their name.

The Risks of Gifting Your Home to Your Children

While there are benefits to gifting your home to your children, there are also some significant risks to consider, including:

Loss of control: Once you gift your home to your children, you no longer have control over the property. This means that you cannot sell it, mortgage it, or make any other decisions about the property without the permission of your children.

Tax consequences for your children: If your children sell the property, they may be subject to capital gains taxes on the increase in value from the time you gifted it to them. This can be a significant financial burden for your children.

Medicaid eligibility: If you need to qualify for Medicaid to pay for long-term care, gifting your home to your children can impact your eligibility. Medicaid has a five-year “look-back” period, which means that any gifts made within five years of applying for Medicaid can impact your eligibility.

What You Need to Know Before Gifting Your Home to Your Children

If you are considering gifting your home to your children, it is important to work with an experienced elder law attorney who can help you understand the legal and financial implications of this decision. Some key factors to consider include:

Your overall estate plan: Gifting your home is just one aspect of your overall estate plan. Your attorney can help you understand how this decision fits into your broader goals for your assets and your family.

Your tax situation: Gifting your home can impact your tax situation, both in terms of estate taxes and income taxes. Your attorney can help you understand the tax implications of this decision.

Your children’s financial situation: Before gifting your home to your children, it is important to consider their financial situation and how this decision may impact them. This includes considering the tax consequences and the potential loss of control over the property.

In Conclusion

Gifting your home to your children can be a useful strategy for protecting your assets and passing them on to the next generation. However, there are also significant risks to consider, and it is important to work with an experienced elder law attorney to understand the legal and financial implications of this decision.

Contact Beasley & Ferber for Assistance

At Beasley & Ferber, we have over 60 years of combined experience in estate planning. For more information about estate planning and to get started with an estate attorney in New Hampshire today, please contact Beasley & Ferber today.

There are many reasons why a person may choose a non-profit, educational institution, or other entity as their beneficiary instead of a person. They can leave a portion of their estate to the entity or they can leave their entire estate. They may not have family, the family may already be well off, or they could be estranged from their family.

Whatever the case, you are perfectly within your rights if that is what you choose to do. Here’s what you need to know.

What are the Types of Beneficiaries?

There are several types of beneficiaries that you can consider, your spouse, friends, family, a charity, a university, or even the government which after your death would be estate taxes.

When you are considering what will happen to your estate after you pass on, you will have to look at this. Planning your estate thoughtfully will allow you to assess your assets as well as potential beneficiaries and decide if you will divide it into portions for other beneficiaries, or if the bulk of it will go to the entity.

What is an Entity Beneficiary?

While the beneficiary is legally designated to receive the benefits that you allocate from any financial products that you name, the type of beneficiary can be either a person or an entity.

In a will, an entity is an individual, a single organization, a group, a trust, a corporation, or an organization. So when you are planning how your estate will be divided and disbursed, you need to keep in mind that you must be as specific as possible because the language can be ambiguous. If you want all or part of your estate to go to a certain non-profit, then name that non-profit. Be very specific.

Can a Non-Profit Beneficiary be Contested by Your Family?

Your spouse and children may try to challenge your trust or will because they do not want that portion of your estate to go to the beneficiary. This can create problems by slowing the probate process. The challenges can create difficulty in ending it, causing it to drag on and on.

They may challenge it because it affects the portion that they receive and they may feel that it is rightfully theirs. However, these challenges do not get overturned often because it was the person’s expressed request.

How do You Name a Charity as Your Beneficiary?

There are three steps to naming a charity beneficiary. It is not a difficult or drawn process at all.

1. Decide on the charity or cause that you wish to support
2. Decide the type and/or amount of gift that you want to make
3. Include the gift with the charity expressly named in your Estate Plan

It’s really that easy.

There is one more step though that while it is not required, it is recommended. Talk to your family and friends. Make sure that they understand what you are doing and are on board. This should minimize the possibility of anyone challenging your gift once you pass.

Contact Beasley & Ferber for Assistance

If you are ready to begin your own estate planning and would like to include a charity or non-profit as a beneficiary, let us help. At Beasley & Ferber we have the knowledge and experience to make estate planning quick and easy. Call today and schedule an appointment and get started.