Month: July 2017

Protecting Children with Special Needs

 

Special Needs Trust

Parents with children with disabilities are faced with unique challenges. One of the major concerns of parents of a child with special needs is how to properly leave money to the child.

Because most children with disabilities will receive some sort of public benefits to help pay for medical and long-term care, it is of vital importance that the disabled child not receive assets directly or have money gifted to them personally. Even for a child who does not utilize public benefits it is important to understand that their child may be at risk to creditors and other people who may want to take advantage of them.

Because of these above reasons, a Special Needs Trust becomes a necessary tool for a person with disabilities.  Mom and Dad are able to leave a legacy to their child but without disqualifying the child from public benefits. Other family members, such as grandma and grandpa, can leave gifts or a legacy to the disabled child without a worry that the child will become a target from unsavory individuals. As a result, these funds will then be available to supplement the needs of the child in the future.

To learn more about  Special Needs Trusts visit our site.

Protect Your Business with a Business “Prenup”

If your business has two or more owners, you need a Buy-Sell Agreement.

A buy-sell agreement is simply a contract between two or more business owners that formally documents contingency plans if a life changing event occurs.  Some people refer to these agreements as “prenups” for business owners. In the agreement, the business owners agree upon what happens to the ownership structure of the company in the event of one owner’s death, divorce, disability, retirement or other life changing events.

Many business owners don’t realize until it is too late the importance of a buy-sell agreement.  For example, if an owner gets divorced, the business may become hostage to the marital dispute. Or if an owner dies, the surviving business owner(s) may inherit heirs for business partners, who care little about whether the business survives.

Without a buy-sell in place, you are opening yourself and your business up for unknown risks.  Protect yourself and your business from the unknown future with a buy-sell agreement. Ensuring that critical events are properly covered is essential to the long-term survival of your business.

Business Owners: There’s No Time Like the Present

The biggest asset for many small business owners is the value of their business and they count on it for retirement funds. However, most of those owners do not actually know the value of the business. How will they know when they can stop working or what to expect in retirement?

Having the information needed to prepare adequately for retirement is just one of the many benefits to a business valuation. Here are several others:

  • Increase value. In life, what is measured improves – this applies equally to business valuation.
  • Capital infusion. To raise money on the right terms you need to know your value.
  • Mergers & Acquisitions. You need certainty on your value to properly negotiate a deal.
  • Exit of an Owner. The more you understand the value, the more likely you will be to reach an amicable split.
  • Too often people guess or estimate and one side or the other losses.
  • Tax strategies. Good tax and financial planning requires beginning with good data. The best plan in the world won’t do you much good if the initial assumptions about value of your assets was wrong.
  • Employee incentive programs. Companies with employee incentive plans may want or need to share value information each year with employees.
  • Insurance planning. Many small businesses do not have adequate insurance coverage. In order to get adequate coverage, you need to know how much value you are covering.

Many business owners avoid valuation because traditionally it has involved an extensive, expensive, and invasive process. Epiphany Law is different and our technology has changed the process. Now we can provide a valuation report that costs a fraction of the traditional model and takes a fraction of the time.

To get started on your business valuation, simply go to https://epiphanylaw.bizequity.com/.

 

Estate Planning is Not a DIY Project

So if you are like me, you take pride in completing a DIY project. Even though I feel a sense of satisfaction when I complete a project, I’ve learned over the years that there is a time and a place for DIY projects and a time for professionals to be called. Often, the risks of incorrectly doing a project outweigh the costs of calling a professional. This holds true for estate planning as well.

Some people think Estate Planning can be a DIY project. These people find online tools and services to complete estate planning documents.  By attempting to use a DIY estate planning tool, people can end up causing more problems.

Over the years, I have helped people who come in after they realized there were problems with their DIY estate planning documents. Some of the problems these DIYers experienced include:

  • Institutions did not accept their DIY power of attorney
  • The online forms were not in sync with Wisconsin laws.
  • Errors were made because they misinterpreted the online forms
  • Unintentionally disinherited assets

These problems ended up costing the DIYers and their beneficiaries more time and money than it would have if they called a professional in the first place. These issues may have been avoided by speaking with an experienced Estate Planning Attorney up front. The role of an Estate Planning Attorney is to be a counselor in explaining your different options and pointing out some of the pitfalls that may be lurking. Computer generated forms are simply not comparable to the customized service and advice that an Estate Planning Attorney can provide.