Plan Before a Crisis

It is easy for a person to be lulled into a false sense of security that they can delay planning for one’s inevitable death and, most likely, incapacity or incompetency. As a business owner, the stakes are often higher. Generally, there are employees and their families that are relying on the continuation of the business. Without pre-planning, when a crisis occurs it could be too late to ensure the least risk to your business and your financial welfare.

For example, Cut Your Losses, LLC is owned by two partners who are married to each other. They have not prioritized having their estate plan completed, which includes a trust. With the significant amount of life insurance each of them has on each other, mostly due to their children being minors, the couple is above the $3,000,000 estate tax threshold in Minnesota. The Wife, after a car accident, is in a coma. The Husband contacts an attorney to get a trust set up for the couple. However, since the Wife does not have capacity, she is unable to execute any estate planning documents. If the Wife passes away, any amount in her estate above $3,000,000 will be taxed by Minnesota Revenue.

Another example is Cut Your Losses, LLC that is owned by a single individual. This LLC has 20 employees. The owner passes away without a business succession plan in place. The husband is the sole heir. He is too grief stricken to run the business and he has no experience with the business. Therefore, the business closes.

Spangler and de Stefano, PLLP represents business owners and individuals with their estate planning, including planning for medical assistance and business succession planning.

The material contained herein is for informational purposes only, and is not intended to create or constitute an attorney-client relationship between Spangler and de Stefano, PLLP and the reader. The information contained herein is not offered as legal advice and should not be construed as legal advice.