Category Archives: Business Transitions

Adjustable Mortgages: Like ‘Em Like Facebook’s Zuckerberg?

Posted on by under Business Succession Planning, Business Transitions, Estate Planning, Estate Tax, Family Business, Financial Powers of Attorney, Kansas, Living Wills, LLCs, Medical Powers of Attorney, Missouri, Probate, Small Business, Trusts, Wills

Mark Zuckerberg, the multi-billionaire co-founder of Facebook, recently took out an adjustable mortgage on his house. But this article wisely cautions that adjustable rate mortgages are not usually a good idea. In Zuckerberg’s case, the idea might make sense because he can invest the money in more profitable ways. Then again, most of us don’t have a $15-20 billion net worth to invest. But like Zuckerberg probably did around the Facebook IPO and his marriage the next day, you should visit your estate planning lawyer to be sure your estate plan is optimized to provide for your family and continue your legacy in the community. If you’ve gotten married, divorced, had children, or had other major life changes happening lately (or coming on the horizon in the next few months), you owe it to yourself and your family to be sure your estate plan is tailored to meet your needs.

Call our office (913-707-9220) or email us (steve@johnsonlawkc.com) for a convenient appointment to review your estate plan. We offer a free 30 minute consultation.

(c) 2012, Stephen M. Johnson, Esq.

Gift Giving in 2012

Posted on by under Business Succession Planning, Business Transitions, Dynasty Trusts, Estate Planning, Family Business, Financial Powers of Attorney, Gift Tax, Gifts to Minors, Kansas, Missouri, Small Business, Trusts, Wills

The NYT has this interesting blog post encouraging wealthy individuals and families to take advantage of the $5.12 million gift tax exemption for 2012. Remember, on New Year’s Day 2013, the gift tax exemption goes back to $1 million per person, meaning you’ll lose the opportunity to give $4.12 million tax free. And the gift tax rates are scheduled to rise from the current 35% (for amounts over the $5.12 million exemption).

Does your financial power of attorney document include gifting provisions if you’re incapacitated? If not, you may need a new power of attorney.

If you’re considering giving gifts this year to family members, remember the old adage that there’s no time like the present. Call (913-707-9220) or email our office (steve@johnsonlawkc.com) for convenient appointment to discuss your gift giving strategy for 2012 and a complimentary 30 minute consultation.

(c) 2012, Stephen M. Johnson, Esq.

Gifts and FLPs in 2012

Posted on by under BDITs, Business Succession Planning, Business Transitions, Dynasty Trusts, Estate Planning, Family Business, Family Limited Partnerships, Gift Tax, Illiquid Assets, Kansas, Missouri, Small Business, Trusts

CNBC has this interesting article regarding the increasing popular estate planning tactics of gifts and setting up family limited partnerships or family limited liability companies (FLPs) in 2012 to take advantage of the $5.12 million per person gift tax exemption. Our firm is advising numerous clients on leveraging the gift tax exemption this year (before it falls back to $1 million on January 1, 2013 when the Bush tax cuts sunset absent Congressional action) and drafting FLPs or family LLCs to meet client’s estate planning needs.

If you had over $1 million, real estate, business interests, or want to extend your family’s legacy to your children and grandchildren and beyond, now is the time to look at gifts and see whether a FLP, family LLC, or dynasty trust may be right for you. Call (913-707-9220) or email us (steve@johnsonlawkc.com) for a convenient appointment to discuss your estate planning strategy. We offer a complimentary 30 minute consultation. Our firm has experience counseling high net worth individuals and families on their estate planning needs and we frequently design FLPs or trusts for clients. A well-designed and carefully crafted FLP or trust is like a finely polished diamond: We understand the legal, tax, and business facets of protecting your assets, providing for your family, and ensuring the legacy of your values continues for generations.

(c) 2012, Stephen M. Johnson, Esq.

Holistic Estate Planning and Leaving a Legacy of Your Family’s Values

Posted on by under Business Succession Planning, Business Transitions, Dynasty Trusts, Estate Planning, Family Business, Family Limited Partnerships, Gifts to Minors, Kansas, Missouri, Small Business, Trusts, Wills

Here’s an article on a relatively new concept called holistic estate planning that combines traditional estate and tax planning considerations with mediation, family conferences, and facilitating the sharing of values and communicating across generational boundaries. The estate planning attorneys in our office strongly recommend holistic estate planning and believe that it’s a great way to bring families closer, pass on a strong and positive legacy of values and family traditions to future generations, and ensure all family members can play a vital role in the family’s ongoing legacy, business or real estate interests, and impact on the local community.

A practical application of holistic estate planning is found in this article in this weekend’s LA Times. Two siblings – one conservative and one liberal – are using some of their inheritance to promote their political ideas in California. The brother and sister are the children of Charlie Munger, the Harvard trained lawyer and investment partner of Warren Buffett, the legendary investor behind Berkshire Hathaway. The article illustrates an overarching goal of estate planning: having sufficient financial and other freedom to pursue your passion.

If we can help you and your family with estate planning or serve you in the holistic estate planning process, give our firm, Johnson Law KC LLC, a call (913-707-9220) or email us (steve@johnsonlawkc.com) for a convenient appointment.

(c) 2012, Stephen M. Johnson, Esq.

Interesting investing trend

Posted on by under BDITs, Business Succession Planning, Business Transitions, Dynasty Trusts, Estate Planning, Family Business, Generation Skipping Tax, Gift Tax, Illiquid Assets, Kansas, Missouri, Probate, Small Business, Trusts, Wills

According to this CNBC article, many very affluent investors are shifting their investment portfolios around as they search for (1) safety and (2) yield. Safety or asset preservation and yield or accumulation are two often conflicting goals for investors. The article does point out that following the investing habits of very affluent investors (those with over $30 million to invest) is not necessarily a good idea for ordinary investors. But as Robert Frank notes, wealthy investors “set the tone for the broader market,” so if they are dumping publicly traded U.S. stocks in favor of private companies, real estate, and commodities (as the study suggests many are), it may send signals rippling through the broader stock markets for some time.

For both asset protection (from creditors, taxes, divorcing spouses, and spendthrift children) and tax benefits, we’re recommending Inheritor’s Trusts or Beneficiary Defective Inheritor’s Trusts (BDITs) to many of our affluent clients, clients who anticipate  receiving an inheritance from their relatives of  over $400,000, and entrepreneurial clients who like to start, grow, and sell small businesses. An Inheritor’s Trust works well in any of these situations and is an exciting new tool to help facilitate your estate and financial planning needs. Call (913-707-9220) or email (steve@johnsonlawkc.com) our law firm, Johnson Law KC LLC, to learn more about how you can benefit from an Inheritor’s Trust and for a convenient and free half-hour consultation.

(c) 2012, Stephen M. Johnson, Esq.

Heckerling Insights: Part 3

Posted on by under BDITs, Business Succession Planning, Business Transitions, Dynasty Trusts, Estate Planning, Estate Tax, Family Business, Family Limited Partnerships, Generation Skipping Tax, Gift Tax, Income Tax, Kansas, Missouri, Probate, QPRTs, Small Business, Trust protector, Trusts, Wills

Here are some interesting insights from our colleagues at the Heckerling Institute from this year’s conference. Among other topics, beneficiary defective inheritor’s trusts (BDITs), generation skipping tax planning (GST), trust protectors, qualified personal residence trusts (QPRTs), grantor trusts, and various probate planning issues are discussed. If we can help you and your family with any of these issues or address other estate planning or small business issues you have, please call (913-707-9220) or email us (steve@johnsonlawkc.com) for a convenient appointment.

Our firm, Johnson Law KC LLC, is developing a practice in Missouri inheritor’s trust and other beneficiary defective inheritor’s trusts (BDITs) and excited about sharing this new tool with clients to help meet their estate planning needs now and for generations to come.

(c) 2012, Stephen M. Johnson, Esq.

Happy Tax Day!

Posted on by under Business Succession Planning, Business Transitions, Digital Estate Planning, Estate Planning, Financial Powers of Attorney, Income Tax, Kansas, Living Wills, Medical Powers of Attorney, Missouri, Trusts, Wills

Happy tax day and many happy returns (or refunds, as the case may be)!

In unrelated news, the Daily Mail (UK) has this article about the dangers of using Google to find medical treatments and self-medicating without seeing a doctor about medical issues. A parallel problem exists in the legal world: many people use the Internet to try and solve their legal issues without consulting with an attorney. Remember, if you use an online legal form, you’re doing so at your own risk. If it’s anything important, or that could affect your rights,  your finances, or your family, you should consult with an attorney. Only an attorney has been through three years of law school, passed a bar exam, and become well versed in handling your particular issue. Some online legal resources have useful insights, but many are riddled with errors, hopelessly obsolete, filled with misstatements of the law, or  misleading or incomplete documents that won’t hold up in court (and aren’t worth the paper they’re printed on).

At Johnson Law KC LLC, we constantly review and revise our documents and keep up to the moment on new legal developments to ensure our clients always get the best representation and legal advice. If we can help you or your loved ones, please call (913-707-9220) or email (steve@johnsonlawkc.com) for a convenient appointment.

(c) 2012, Stephen M. Johnson, Esq.

Lump Sum Retirement Planning

Posted on by under Business Succession Planning, Business Transitions, Dynasty Trusts, Estate Planning, Family Business, Family Limited Partnerships, Kansas, Missouri, Probate, Small Business, Trusts, Wills

This video from Smart Money has useful strategies for lump sums from early retirement. If you’ve taken early retirement, you need to review and revise your estate planning documents as well. Call (913-707-9220) or email (steve@johnsonlawkc.com) us and we’d be happy to work with you on your early retirement needs.

(c) 2012, Stephen M. Johnson, Esq.

Shhhh … You’ve Inherited Money

Posted on by under Business Succession Planning, Business Transitions, Dynasty Trusts, Estate Planning, Estate Tax, Family Business, Generation Skipping Tax, Kansas, Missouri, Small Business, Trusts, Wills

Smart Money has this interesting video about how to interact with family and friends when you inherit money or have a large financial windfall. Our law firm has decades of experiencing advising wealthy individuals and families. Affluent people don’t always look the same either – some look like a socialite, while others may be a small business owner or farmer. If you have inherited money or had a windfall, be humble and quiet about it, and talk with your financial advisor and attorney ASAP. If we can help you deal with an inheritance and related estate planning needs, call (913-707-9220) or email us (steve@johnsonlawkc.com) for a convenient appointment.

(c) 2012, Stephen M. Johnson, Esq.

Small Business Tax Strategy

Posted on by under Business Succession Planning, Business Transitions, Estate Planning, Family Business, Family Limited Partnerships, Kansas, Missouri, Small Business, Trusts

So if you’re like millions of Americans, you own, work for, or are part of a small business. America has long been defined by a vibrant entrepreneurial excitement and stream of thought in its economic life. But just like with trusts, setting up a small business may be a matter of tax strategy. Which state will charge you the lowest formation and maintenance costs (e.g. setting up your corporation or LLC and maintaining the required filings)? What is the state’s business income tax? These factors and more are all important for the financially savvy small business owner or entrepreneur to consider.

Bloomberg Businessweek has this article exploring the tax benefits and costs of having a small business in various states. It’s crucial to remember that you don’t have to be a resident of a state to have a business or trust there. In fact, some of the best deals from a tax standpoint may be available outside of your home state. And other things, like friendliness of corporate law and sophistication of the business law courts can be important too. Consider that many large U.S. companies are incorporated in Delaware. Why? Because Delaware has long been considered the friendliest state to businesses in America and its Chancery Court has a long and distinguished history of providing protections to business owners and shareholders from various corporate lawsuits and liabilities.

So if you’re setting up a small business or trust, be smart about taxes! Call (913-707-9220) or email (steve@johnsonlawkc.com) and we can explore the best place to start your small business or trust.

(c) 2012, Stephen M. Johnson, Esq.