Estate Planning Process

Saturday, June 27th, 2009

Business succession planning should address the continuity and transfer of tangible assets such as equipment and land.  This also includes intangible assets such as people and culture.  Aggressive succession planning encourages transfer of farm or business to the next generation before the death of its owners.

Estate planning is essential because it prevents liquidation of your assets to cover tax liabilities.  It’s an ongoing process of expressing, designing, refining, and adopting the programs, structures, and documents needed to achieve the continuity objectives of your family business.  In addition, it requires communication, refinement, and continual review of necessary plans and transfer to your vendors, key personnel, partners, and family who’ll be affected by your loss.

The process must accomplish three goals:

• *Establish plans for continuity of family assets or family business
• *Initiates transfer of assets to charities and family members prior to death
• *Upon death, completes transfer of assets with minimum administrative hassle and cost, according to your wishes

Be careful to avoid estate planning complexities that often arise out of unfocused objectives, dysfunctional relationships, and special family circumstances.  To protect the rights of your beneficiaries or descendants, hire an estate planning lawyer who will be the executor of your estate.

Tags: assets, business succession, Estate Planning, estate planning lawyer, executor, family business, lawyer, tax liabilities
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Critical Factors in Estate Planning Process

Saturday, June 20th, 2009

The nature of your various assets and how you are holding title to those assets are critical factors in your estate planning process.  Before you change title (or take title) to an asset, you have to understand the consequences of your proposed change.  Seek the help of your estate planning lawyer to advise you on:

• *Separate property and community property - if you’re a registered domestic partner or you’re married, the assets that you or your domestic partner earns are part of a community property. However, you can also continue to own separate property. These may be property that you own prior to marriage. Also, inheritance or gifts received during the partnership may be considered separate as well. Community property can be converted to separate property (and vice versa) through a written agreement.
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• *Tenants-in-common - for example, several people own property and a co-tenant (co-owner) dies, then the co-tenant’s property interest would pass on to the beneficiaries named in the will.
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• *Joint tenancy with survivorship right - single or married co-owners that own property can hold title as joint tenants with survivorship right. Therefore, if one tenant dies, the property would pass on to the surviving tenant overriding the will of the deceased person.
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• *Community property with survivorship right - typically, married people would hold title to property by passing it to the surviving spouse in the event that the other party would die. This would also pass on without any influence of the will created by the deceased person.

Tags: assets, community property, Estate Planning, estate planning lawyer, gifts, inheritance, separate property
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