By Julia Frey. The summer makes me think of families and good times together. But it also makes me think about how family businesses best survive and thrive. Oftentimes, there is one individual who starts a business with the intent to grow it into a sustainable family business. But as the business grows and as that founder ages, it is sometimes hard to find a balance between children of the founder of the business and a business structure that is viable. The issues in the transfer of a business from one generation to another, has to begin long before the actual transfer occurs. For example, a family business must reflect family values and goals, and must have a proper way of reviewing performance even of family members and oversight. Once the founder dies, if this type of structure and accountability has not been put into place, the business may run into problems that may force it to be sold. For example, issues often arise in a family business when it is run by one or two children-owners but there are other children-owners who are less involved. The business must be structured so that there are mechanisms to ensure that the children running the business don’t treat it as “only their own”, that they follow standard procedures and that they function business-wise as any business would, such as having salary structures commensurate with the industry, expenses being clearly divided between personal and business etc. It is never too early to have your trusted attorney advisor get involved to help you set up a structure for sustainability and growth. Please call us.
Do you have a child or loved one with special needs?
By: Julia Frey. If you have a child or other loved one who has special needs, such as serious physical or mental disabilities, the last thing you want to do in your estate plan is to provide for outright gifts or even a discretionary trust for that individual, if he or she may be entitled to governmental benefits. You need to establish a “Special Needs Trust” so that the assets in the trust do not render that person ineligible to obtain governmental benefits. By establishing a Special Needs Trust your loved one will be able to receive governmental benefits, and still have the Special Need Trust assets available to pay for the extras (such as travel, non-covered medical services) that are not covered by the governmental benefits plans. If you fail to set up a Special Needs Trust for your loved one, all of the hard-earned assets that you have set aside for your loved one will have to be spent, before any governmental benefits are available. This is not a result that is beneficial to you or your loved one.
Why should you have a will?
Julie Frey talks on the Lowndes YouTube Channel about the importance of having a will. Julie goes over the following questions:
Can You Include a Dementia/Alzheimer’s Provision in Your Living Will?
For anyone who has witnessed a loved one die of Alzheimer’s disease or dementia, you will want to know that appropriate language can be added to any Advanced Directive or Living Will which will serve to advise physicians and family members of your wishes concerning life sustaining measures. You can specify which specific life sustaining treatments you wish to have followed if your health deteriorates and you are no longer able to communicate, swallow food or water safely, care for yourself, recognize family and friends, and the condition is not going to improve. You can ensure that comfort measures are followed, but also direct family members and doctors to withhold antibiotics, food, artificial ventilation, heart regulating drugs, and any form of resuscitation.
How much does a store bought form will cost? $24.95, $199, $500?
By: Matthew O’Kane
The answer may be much more than you pay for it.
On March 27, 2014, the Florida Supreme Court put its “two cents” in when it answered the question for the Estate of Ann Aldrich in the case of Aldrich v. Basile, 39 Fla. L. Weekly S159a. The facts of the case are simple. On April 5, 2004, Ms. Aldrich wrote her will on an “E-Z Legal Form.” In her will, she listed the assets she owned at the time and devised them to her sister. Under the terms of her will, if her sister predeceased her, Ms. Aldrich devised the listed assets to her brother. Her will did not contain a provision dealing with after acquired property, a general devise or a residuary clause that would dispose of any assets not otherwise listed. The E-Z Legal Form will was properly executed. Three years later, her sister died and left Ms. Aldrich additional cash and land. On November 18, 2008, Ms. Aldrich wrote a note that attempted to amend her will acknowledging her sister’s death and devising all “her worldly possessions” to her brother. The note was not executed in accordance with the Florida Probate Code.