Estate Planning

Advice on Estate Planning for an LLC Interest

Published on: June 2, 2021 | by Ettinger Law Firm

For many business owners, it’s a critical issue to make sure that business organizations including LLCs are properly structured. While many business owners have created revocable living trusts to articulate how their assets should be managed and to avoid probate, it’s a good idea that LLC interests are not put into the trust. This means that even if everything else with an estate plan is done correctly, a family would still likely need to undergo the probate process to both access and manage LLC interests. This, however, is not the best situation and there are more preferable options.

Placing an LLC interest into a trust is often a simple and affordable option. While it might be possible to simply file paperwork if an LLC involves a single member, it might be necessary to articulate such arrangements in an operating agreement. Many times, there are provisions in operating agreements that allow individuals to make these transfers. If no such provision exists however or there is not an operating agreement, the consent of the other LLC members is often required to perform such a transfer.

The Advantages of Utilizing an LLC for Estate Planning

A Simplified Power of Attorney: Holding the “Short” Form Power of Attorney to its Name

Published on: May 28, 2021 | by Ettinger Law Firm

The crisis brought by COVID has served as a stress test for many of the laws and regulations effecting our nation’s seniors. The power of attorney, a document that gives one person, the agent, the legal power to act for another, the principal, fills a dire need to put control over their health and resources in trusted hands in the event of incapacity, especially in times of crisis. Patients in nursing home facilities, for example, need quick and durable responses to the crisis. And guarantees that the courts, and third parties such as banks, will respect their decisions.

In 1948, the “Short Form” POA was created to simplify the process for New York citizens. Since then, it’s become anything but. A new law rectifies this.

New Power of Attorney Bill Comes into Effect June 13, 2021

California Court Decides Sonoma Trust Case

Published on: May 23, 2021 | by Ettinger Law Firm

A Court of Appeals in California recently affirmed a trial court’s award of attorney fees to a trust. This decision came after the trust tried to enforce a conservation easement. The defendants in the case owned land and were accused of intentionally violating an easement. This case raises an important lesson about the role that conservation easements can play concerning trusts.

How the Case Arose

A conservation agreement refers to a voluntary arrangement between a landowner and either a land trust or government agency that limits land use to protect a property’s condition. When an entity violates a conservation agreement, courts are permitted to award injunctive relief as well as financial compensation.

Should You Revise Your Estate Plan After Your Children Age?

Published on: May 19, 2021 | by Ettinger Law Firm

Perhaps at the beginning of your marriage, you met with an estate planning attorney. If children have recently entered your life, however, it’s important to make sure that your estate plan contains various important details. This article reviews just some of the most key considerations that you must have if you plan on updating your child’s estate plan.

# 1 – Address Who Would Function as Guardian

It’s critical to make sure you consider who would take care of your children if they were still young when you and your partner passed away or become incapacitated. If you have not made these arrangements, you are leaving your child in a vulnerable position.

Lessons Learned from In Estate of Tillotson

Published on: May 10, 2021 | by Ettinger Law Firm

In the recent Texas case of In Re Estate of Tillotson, the administrator of a deceased individual’s estate filed a motion to have the deceased individual’s husband turn over the deceased individual’s community property interest in several accounts. When the trial court granted the motion, the surviving spouse appealed.

The court of appeals found that the administrator had the power to file a motion seeking partition of community property. The appeals court noted that the state’s estate code provides that an executor or administrator through a written application can request the partition and distribution of an estate. The court also noted that if an intestate deceased spouse survives a child, the deceased spouse’s undivided one-half interest in the community estate passes to the deceased spouse’s children.

The appeals court went on to discuss the Texas estate code that permits a surviving spouse to seek a partition but noted that this code does not make this right exclusive to the surviving spouse. Consequently, the court of appeals affirmed the trial court’s order.

Advice on Selecting a Professional Trustee to Manage Your Trust

Published on: May 2, 2021 | by Ettinger Law Firm

If you decide to create a trust as part of your estate plan, there are various tasks that you must successfully navigate including appointing a trustee who can oversee the trust. A trustee performs the critical task of both managing the trust and distributing assets in a manner that conforms to the trust’s terms.

While a trustee performs a critical task, many people have misconceptions about the role. For example, some people think that picking a friend or family member to serve as a trustee is a wise idea because it’s a potentially cost-effective option. In reality, there are some distinct benefits to selecting a professional trustee. This article reviews some of the important to consider when deciding whether to select a professional trustee or a loved one to function as a trustee for your trust.

Experience Can Prove Helpful

Utilizing Asset Location While Estate Planning

Published on: April 26, 2021 | by Ettinger Law Firm

Estate planning is a critical process in planning for your eventual death or incapacity. Unfortunately, however, too many people neglect estate planning or do the bare minimum. In reality, however, to make sure that your goals are achieved, it’s critical to treat estate planning seriously. This means engaging in activities like routinely updating your estate plan and speaking with an estate planning attorney if you have concerns about your estate. To make the most of your estate plan, it’s also a good idea to consider the various wise asset location strategies that you might utilize to make the most of your estate.

What Qualifies As “Smart” Can Change

To a degree, smart asset location is subjective. While one person might decide that their assets should only pass on to charity, another individual might decide to pass on their life savings to their children. Often, it’s not the question of how much is left behind but instead what is left after a person’s death or incapacity and who receives what.

Anticipating Potential Changes with Estate Planning

Published on: April 23, 2021 | by Ettinger Law Firm

Senator Bernie Sanders recently introduced the “99.5% Act”, which is focused on the assets of the top 0.5% of wealthy Americans. This marks the first legislation introduced following President Joe Biden’s coming into office that would result in the lowering of the federal estate tax exemption. For many people interested in passing on assets to loved ones, it’s critical to understand the nature of these changes.

Changes Introduced by the Bill

The bill would lead to several critical changes in many of the country’s federal tax provisions, which include:

3 Tips about Using Life Insurance In Your Estate Plan

Published on: April 14, 2021 | by Ettinger Law Firm

Many people realize that life insurance can play a valuable role if someone unexpectedly passes away. What a much smaller group of people is that life insurance can play a critical role in estate planning because it can be utilized to provide liquidity when needed.

With adequate estate planning, insurance proceeds can then be used to pay for things like estate tax. In the hopes that you make the most of life insurance in your estate plan, this article reviews some critical details to remember about utilizing life insurance.

# 1 – Avoid Common Mistakes

2 Estate Planning Issues for Business Owners

Published on: April 12, 2021 | by Ettinger Law Firm

Business owners led hectic lives. Understandably, some things on business owner’s “To Do” lists end up getting delayed. Estate planning, however, should not be something that ends up postponed. Not only is estate planning critical for business owners, but some unique issues arise. This article reviews just some of the unique and nuanced issues that business owners often must navigate while estate planning.

# 1 – Unintentional PPP Borrower Change of Ownership

To respond to the adverse economic impact of the COVID-19 pandemic, the CARES Act was signed into law in March 2020. As part of the implementation, the Small Business Administration as well as the Department of Treasury implemented the PPP Program so lenders could loan money to both small and medium-sized businesses to maintain their payroll as well as hire workers who were laid off and cover applicable overhead. These loans are forgiven provided the proceeds are used in accordance with applicable laws.