Category Archives: Digital Estate Planning

Digital Estate Planning

Posted on by under Digital Estate Planning

From Ars Technica comes this post about Delaware’s recent adoption of the Fiduciary Access to Digital Assets and Digital Accounts Act, an adaptation of the Uniform Fiduciary Access to Digital Assets Act. On digital estate planning, as with corporate and trust law, Delaware looks poised to be the pioneering state of America. While the Act’s critics points to some concerns, this new digital estate planning law appears to at least be a step in the right direction. Let’s hope that Kansas and Missouri act soon to adopt similar laws to protect people’s digital assets. Non-Delaware residents with Delaware trusts, corporations, or LLCs could potentially use the Act for their benefit. For more on digital estate planning, see these earlier KC Estate Planner blog posts.

My law firm, Johnson Law KC LLC, is experienced counseling clients on all aspects of digital and traditional estate planning and asset protection, and can help you answer these questions and more with confidence and friendly expertise. If we can serve you or your family with these sensitive matters, please call (913-707-9220) or email us (steve@johnsonlawkc.com) to schedule a free, convenient consultation.

(c) 2014, Stephen M. Johnson, Esq.

 

 

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Estate Planning for the 21st Century

Posted on by under Digital Estate Planning, Elder Law, Estate Planning, Financial Powers of Attorney, Kansas, Living Wills, Medical Powers of Attorney, Missouri, Trusts, Wills

A great idea from the NYT – an app to hold your legal documents when you need to go to the hospital, doctor’s office, or other places where you might not have your estate planning documents with you. Be sure you have elder law and digital estate planning provisions, and have discussed your end of life choices with your family, doctors, and religious leaders. My firm includes all these provisions standard and custom tailors documents to reflect your beliefs, convictions, and desires. My firm also provides you with complimentary copies, a binder to organize the originals for safekeeping, and PDFs of everything for your convenience.

Today and tomorrow (1-2 May 2014), we’re at the KC Estate Planning Symposium, Kansas City’s premiere estate planning conference for accountants, attorneys, and financial professionals. More soon on the Symposium’s highlights and other useful tidbits.

If my law firm, Johnson Law KC LLC, can help you or your family with your estate planning needs, call (913-707-9220 or email me (steve@johnsonlawkc.com) for a complimentary and convenient consultation.

(c) 2014, Stephen M. Johnson, Esq.

Estate Planning in 2014

Posted on by under Asset Protection, Business Succession Planning, Digital Estate Planning, Estate & Trust Administration, Estate & Trust Litigation, Estate Planning, Estate Tax, Family Business, Family Limited Partnerships, Financial Powers of Attorney, Kansas, Living Wills, LLCs, Medical Powers of Attorney, Missouri, Small Business, Trusts, Uncategorized, Wills

Some recent online highlights from the estate planning literature. Steve Akers of Bessemer Trust offers this helpful summary of the Fall 2013 ACTEC meeting. Here’s his take on Heckerling 2014. And Wealth Counsel recently sponsored a Heckerling Nuggets 2014 webcast – slides here. The ABA’s report of Heckerling 2014 is here – part 1 and part 2.

My firm has experience working with individuals and families throughout the business and estate planning processes. I’ve enjoyed working with clients ranging from single young professionals who want to plan for the future to business owners with complex trusts and tens of millions in assets. If my law firm can help you or your family with your estate planning, elder law, asset protection, business law needs, or digital estate planning, call me (913-707-9220) or email me (steve@johnsonlawkc.com) for a free, convenient appointment. I want to make business and estate planning simple and straightforward to serve your legal needs and help protect you and your business from lurking liabilities.

(c) 2014, Stephen M. Johnson, Esq.

Protecting Your Business and Assets

Posted on by under Asset Protection, BDITs, Business Succession Planning, Digital Estate Planning, Estate & Trust Litigation, Estate Planning, Family Business, Family Limited Partnerships, Financial Powers of Attorney, Kansas, Living Wills, LLCs, Medical Powers of Attorney, Missouri, Prenups, Probate, QPRTs, Retirement, Small Business, Trusts, Wills

The Kansas City Business Journal has this helpful article with strategies for protecting your business and assets if a divorce or other unpleasantness arises in your life.

While divorce or creditor lawsuits are never welcome developments in someone’s game plan, the best offense is a good defense. My firm has experience working with individuals and families throughout the business and estate planning processes. I’ve enjoyed working with clients ranging from single young professionals who want to plan for the future to business owners with complex trusts and tens of millions in assets. If my law firm can help you or your family with your estate planning, elder law, asset protection, business law needs, or digital estate planning, call me (913-707-9220) or email me (steve@johnsonlawkc.com) for a free, convenient appointment. I want to make business and estate planning simple and straightforward to serve your legal needs and help protect you and your business from lurking liabilities.

(c) 2014, Stephen M. Johnson, Esq.

 

Need an estate plan?

Posted on by under Digital Estate Planning, Elder Law, Estate Planning, Estate Tax, Family Business, Financial Powers of Attorney, Kansas, Living Wills, Medical Powers of Attorney, Missouri, Probate, Small Business, Trusts

CNBC has this helpful article reminding readers that every adult (regardless of wealth or marital status) needs an estate plan. A basic estate plan includes 4 documents: (1) a will, (2) a living will, (3) a medical durable power of attorney, and (4) a financial durable power of attorney. If you’re married, you and your spouse should each have these documents. If you’re a wealthy person or have complex financial holdings, you may need a trust or more sophisticated documents. My firm crafts tailored estate planning documents for you that are affordable, reliable, include cutting-edge provisions standard (like asset protection, probate avoidance, elder law, and digital estate planning), and work smoothly whether you’re in the U.S. or abroad.

My firm has experience working with individuals and families throughout the business and estate planning processes. I’ve enjoyed working with clients ranging from single young professionals who want to plan for the future to business owners with complex trusts and tens of millions in assets. If my law firm can help you or your family with your estate planning, elder law, asset protection, business law needs, or digital estate planning, call me (913-707-9220) or email me (steve@johnsonlawkc.com) for a free, convenient appointment. I want to make estate planning simple and straightforward to serve your legal needs and help protect you and your family’s legacy.

(c) 2014, Stephen M. Johnson, Esq.

Estate Planning and Relationships

Posted on by under Business Succession Planning, Business Transitions, Digital Estate Planning, Dynasty Trusts, Elder Law, Estate Tax, Family Business, Family Limited Partnerships, Financial Powers of Attorney, Gift Tax, IRA, Kansas, Living Wills, LLCs, Medical Powers of Attorney, Missouri, Prenups, Probate, Retirement, Roth IRA, Small Business, Trusts, Wills

About a month ago, I had the pleasure of attending a wedding of two dear friends. A month or so before the wedding, I shared some advice with the groom (I’ve shared the same advice with other friends over the years). Every bride and groom encounter various financial, tax, and legal questions in the busy and chaotic wedding planning time and after the honeymoon’s over and the new couple adjusts to life together. Good planning is crucial. Nobel Laureate T.S. Eliot memorably wrote, “What we call the beginning is often the end/And to make an end is to make a beginning./The end is where we start from.” (The Four Quartets, Little Gidding, V). True with estate planning as with many endeavors in life. So what’s the end game? Start from there to figure out how to get there. 

Pre-wedding tips:

  • Don’t buy your fiancé expensive gifts in his or her name. Whether a car, house/condo, jewelry, vacations, clothes, furniture, artwork, antiques, or other big ticket items, wait until you’re married. Federal law allows you to give your fiancé a gift of up to $14,000 tax free per year, but if the item costs $14,001, you’ll owe gift tax and have to file a gift tax return (not fun or romantic). The IRS says a gift is anything you receive without paying fair market value. (Kansas and Missouri don’t have state gift taxes.) Instead buy the item in your name and give it to your spouse once you’re married, as husbands and wives can give each other unlimited gifts without tax consequences.
  • Don’t add your fiancé to real estate deeds until you’re married. Again, any gift (like a house or farm) over $14,000 will cost you gift tax and require filing a return with the IRS.
  • Don’t pay off your fiancé’s credit cards, car or student loans before you’re married. Gifts are romantic, but gift taxes aren’t. Wait until you’re married.

After the wedding:

  • Execute living wills, and durable medical and financial powers of attorney. These are inexpensive, but vital documents that can last for decades. Your spouse can’t talk with your doctor, authorize surgery, or make financial decisions for you without these documents in place. My firm’s financial powers of attorney include cutting edge digital estate planning and elder law provisions, standard. My firm’s living wills and medical powers of attorney include HIPAA, HITECH, and Affordable Care Act (ObamaCare) privacy releases and can easily be custom tailored at no extra charge to reflect your beliefs and convictions about end of life treatment issues. (Having these done as a single person is wise, especially if you have health issues, travel frequently, or have various assets (family business stock or a small business, home mortgage, intellectual property, etc) – you can change your attorney in fact (or agent) quickly and inexpensively once you’re married.
  • Execute a will and/or trust. Simple, no-frills wills for a couple are economical. Wills that include a trust (testamentary trusts), or pourover wills that leave everything to a standalone trust are also affordable. Kansas law automatically invalidates an existing will when you get married and have a child. Missouri law is different. A will or trust allows you to leave specific instructions for how you want your financial affairs handled, how much your spouse and children receive, who cares for your child, and so on. Kansas and Missouri both allow a separate personal property list (highly recommended) to leave specific items to different family members or friends. Whether you’ve got $5,000 in student loans or $5 million in your stock portfolio, you need a will or trust. If you die intestate (without a will), your family will pay more for probate administration and endure a longer, more complex court process than if you have a will. And who wants the government to dictate how their things are distributed and who gets what? My firm has worked on dozens of probate estates in Kansas and Missouri, but it’s easier on everyone to plan ahead. Avoid LegalZoom, Rocket Lawyer, and other do-it-yourself books or websites – I’ve seen (and fixed) online/DIY documents for clients that any practicing attorney would’ve been embarrassed to have drafted. Like many other services, you get what you pay for – good planning requires expertise. My firm has the training and expertise to guide you through the process, leavened with friendly counsel.

A few other ideas for newlyweds:

  • Joint or separate bank accounts
  • Change IRA/retirement plan beneficiary to spouse
  • Change life insurance beneficiary to spouse
  • Car titles – joint or separate
  • Real estate – joint or separate – joint tenancy in Kansas or Missouri; tenancy by the entirety in Missouri
  • If you’re moving to another state once you’re married, you have about 30 days to change your driver’s license, legal name, etc

My firm has experience working with young professionals, young families, and newlyweds to make the estate planning simple, easy, and inexpensive. My firm also has experience working with high net worth individuals and families with tens of millions in assets, closely held businesses, real estate, and other issues. We provide reliable, easy to understand documents so you can rest easy and enjoy your life. Give me a call (913-707-9220) or email me (steve@johnsonlawkc.com) to schedule a convenient, free consultation.

IRS CIRCULAR 230 Disclosure: Unless expressly stated otherwise, any U.S. federal tax advice contained in this blog post or links is not intended or written by Johnson Law KC LLC to be used to avoid IRS or other tax penalties, and any tax advice cannot be used to avoid penalties that may be imposed by the IRS.

(c) 2013, Stephen M. Johnson, Esq.    

Billionaires Win Through the Financial Crisis

Posted on by under Business Succession Planning, Digital Estate Planning, Dynasty Trusts, Elder Law, Estate Planning, Family Business, Financial Powers of Attorney, Kansas, Living Wills, LLCs, Medical Powers of Attorney, Missouri, Probate, Small Business, Trusts, Wills

According to this CNBC story, most of America’s billionaires have done very well amid the financial crisis and its aftermath, known to the history books as the Great Recession. Billionaires’ combined global worth has doubled. 61% are self made. 87% are men. 86% are married. And they’re quite mobile, with an average of 4 homes and 2 children.

Most of us will never have to worry about being billionaires, but good financial and estate planning is important for everyone. If my law firm, Johnson Law KC LLC, can help you or your family with your estate planning, elder law, asset protection, business law needs, or digital estate planning, call me (913-707-9220) or email me (steve@johnsonlawkc.com) for a free, convenient appointment.

(c) 2013, Stephen M. Johnson, Esq.

 

Small Business Law 101

Posted on by under Business Succession Planning, Business Transitions, Digital Estate Planning, Dynasty Trusts, Estate Planning, Family Business, Family Limited Partnerships, Financial Powers of Attorney, Illiquid Assets, Income Tax, Kansas, Living Wills, LLCs, Medical Powers of Attorney, Missouri, Probate, Retirement, Small Business, Trusts, Uncategorized, Wills

There are 3 stages in the business law cycle, all of which my law firm, Johnson Law KC LLC, can help you and your business by coming alongside to provide experienced, friendly counsel leavened with an understanding of business, economic, and financial issues. The 3 business stages are: (1) formation, (2) maintenance/compliance, and (3) succession.

(1) Formation – At the formation stage, choice of entity and other considerations arise. Should the business be a corporation (C corporation or S corporation), a partnership, a limited partnership (LP), a limited liability partnership (LLP), a limited liability company (LLC), a series LLC, a professional corporation or professional association, or a family limited partnership (FLP)/family LLC? How will the business’ owners and employees, and other players relate to each other?

  • A sole proprietorship is the simplest form of business, where the owner gets all the profits, but is liable for all debts and losses, and doesn’t enjoy any limited liability.
  • C corporations and S corporations take their names from respective IRS Code chapters. Corporations have to follow corporate formalities, but get limited liability for their actions in return. Kansas corporations are formed under the Kansas General Corporation Code (K.S.A. 17-6001 et seq.), patterned after Delaware corporate law, while Missouri corporations are formed under The General and Business Corporation Law of Missouri (V.A.M.S. 351.010 et seq.).
  • A partnership (a/k/a general partnership) is a joint business venture between 2 or more equal partners. Both partners are entitled to a share of the profits, but both are also liable for the partnership’s losses and debts. Since 1998, Kansas partnerships have been governed by the Kansas Uniform Partnership Act (K.S.A. 56a-101 et seq.), while since 1949, Missouri partnerships have been formed under the Uniform Partnership Law (V.A.M.S. 458.010 et seq.).
  • A limited partnership (LP) has a general partner (who has voting rights and is liable for the partnership’s losses and debts) and one or more limited partners (who have limited liability, but don’t have voting rights). Kansas LPs can be formed under the Kansas Revised Uniform Limited Partnership Act (1983) (RULPA) (K.S.A. 56-1a101 et seq.), while Missouri LPs trace their lineage to the Uniform Limited Partnership Law (1985) (V.A.M.S. 359.011 et seq.).
  • A limited liability partnership (LLP) is a group of limited partners who enjoy voting rights and limited liability – many law firms, accounting firms, and other professional organizations are organized as LLPs. Kansas LLPs are formed under the Kansas Uniform Partnership Act (1998) (K.S.A. 56a-1001 et seq.), while Missouri LLPs are formed under the Uniform Limited Partnership Law (1985) (V.A.M.S. 359.172 et seq.).
  • A limited liability company (LLC) has members who have an interest in the firm, where a corporation has shareholders who own shares of stock or a stake in the firm. An LLC can be a single member or have multiple members. Single member LLCs are usually disregarded for IRS tax purposes (and taxed as a sole proprietorship) unless they elect S corp tax treatment. LLCs with multiple members are taxed like partnerships (flow through to individual partners) but with the limited liability of a corporation. Kansas LLCs are formed under the Kansas Revised Limited Liability Company Act (1999), part of the Kansas General Corporation Code (K.S.A. 17-7662 et seq.), while Missouri LLCs are formed under the Missouri Limited Liability Company Act (1993) (V.A.M.S. 347.010 et seq.).
  • A series LLC is a new business form in Kansas and Missouri. A series LLC has a parent LLC that acts like an umbrella to consolidate administrative and tax treatment into 1 entity, and an unlimited number of daughter series under the parent LLC’s umbrella, which can each have distinct business purposes, ownership, and functions. My law firm, Johnson Law KC LLC, is on the cutting edge of counseling local companies, small businesses, and entrepreneurs on using series LLCs. Kansas series LLCs (2012) are governed under Kansas LLC law (K.S.A. 17-76,143), while Missouri series LLCs (2013) are governed by the Missouri LLC law (V.A.M.S. 347.186)
  • A professional association (Kansas) or professional corporation (Missouri) is a special corporate form for regulated professionals – accountants, attorneys, doctors, etc – in a particular state. PAs and PCs can have one or multiple members, but each member must be licensed in the particular profession that the PA or PC practices.
  • A family limited partnership (FLP) or family LLC is an LP or LLC often used among family members for various business purposes. A family may own land, a second home, or a business property in a FLP or family LLC. A FLP has a general partner (with voting rights and unlimited liability) and limited partners (no voting rights but limited liability). Many FLPs will have a parent or grandparent as the general partner owning 1% (or so) of the FLP and children or grandchildren as the limited partners owning a majority of the FLP. FLPs and family LLCs can be advantageous for business and estate planning purposes, but must have a valid business purposes and must be carefully designed and maintained to avoid audits and heightened IRS scrutiny.

(2) Maintenance/Compliance – At the maintenance/compliance stage, the requirements for different kinds of business organizations are vastly different. Talk of maintenance or compliance often conjures up visions (or nightmares) of annual corporate minutes, annual reports, state and federal securities laws. Sole proprietorships have very little, if any, regular maintenance or compliance, but they also offer no liability protection – so no paperwork, no protection. C corporations and S corporations must file annual reports listing major shareholders and other relevant corporate data with the Secretary of State’s office in the state of incorporation (Topeka, Kansas or Jefferson City, Missouri). Likewise, C corporations and S corporations must have annual shareholder meetings, regular board of director meetings, and keep minutes from these meetings. Regular meetings and minutes ensures that the corporation is being honest and transparent with shareholders and giving them a chance to voice their approval (or concern) about the corporation’s leadership and governance direction. Many corporations must also comply with federal securities laws (primarily the Security Act of 1933 and Securities Exchange Act of 1934 and applicable SEC regulations) and state securities or Blue sky laws in the Kansas Uniform Securities Act (dating back to 1911) (K.S.A. 17-12a101 et seq.) and Missouri Uniform Securities Act (2003, dating back to 1956) (V.A.M.S. 409.107 et seq.). Corporations must also comply with applicable state and federal tax laws. Partnerships, LPs, LLPs, LLCs, series LLCs, and FLPs/family LLCs must file annual reports with the Secretary of State’s office and follow other applicable corporate, securities, and/or tax laws.

(3) Succession – at the succession stage, a business owner must decide whether to pursue a merger & acquisition (M&A), wind down, estate/tax planning for owners and/or key members, buy-sell agreements, installment sales, or other succession techniques. A business may be perpetual, but an individual’s ownership is not. Serial entrepreneurs may want to start their next business adventure. An entrepreneur who shepherded a business idea from the napkin drawing to sale to a large company may want to retire or embrace another phase of life. A business owner may want to hand the reins off to his children or her carefully chosen and groomed successors among the management or executive team. My law firm has experience counseling business owners and key executives on M&A issues, wind downs and dissolutions, estate and tax planning, asset protection, and other business succession issues.

If my law firm, Johnson Law KC LLC, can help you or your family with your Kansas or Missouri business law needs, call me (913-707-9220) or email me (steve@johnsonlawkc.com) for a free, convenient appointment.

(c) 2013, Stephen M. Johnson, Esq.

Good (Celebrity) Estate Planning

Posted on by under Business Succession Planning, Business Transitions, Digital Estate Planning, Dynasty Trusts, Elder Law, Estate & Trust Administration, Estate Planning, Family Business, Family Limited Partnerships, Financial Powers of Attorney, Kansas, Living Wills, LLCs, Medical Powers of Attorney, Missouri, Probate, Small Business, Trusts, Wills

Last week brought bad news for music fans that rock and roll legend Lou Reed had died. Fortunately for Reed and his family, he planned ahead and had his financial affairs and estate planning documents prepared. While he lived a thrilling and unconventional life, his estate plan was standard – leaving everything to his wife and family. As an acclaimed musician and artist, he was wisely counseled to think about who would handle the copyrights and licensing for his music. When clients have IP portfolios, experienced counsel is needed to ensure copyrights, trademarks, patents, and licensing are handled correctly after a client’s death. Reed’s good celebrity estate planning stands in marked contrast to this case and others of bad celebrity estate planning. Celebrities are like the rest of us – we all need proper planning and peace of mind, they just have more assets and more complexity than most of the rest of us.

If you or a loved one have intellectual property – copyrights, trademarks, or patents – you need an experienced attorney to serve your estate planning needs and ensure your IP portfolio is handled well into the future. My firm has experience with estate planning and counseling clients on their IP portfolios and succession planning with those. Call my firm (913-707-9220) or email me (steve@johnsonlawkc.com)for a convenient, free consultation. Even if you don’t have an IP portfolio, you probably have digital assets (emails, photos, videos, computer files, Facebook, LinkedIn, Twitter, Pinterest, a blog, etc). My firm produces reliable and cutting edge estate planning documents that include digital estate planning and elder law provisions, standard and at no extra cost. My firm is also experienced handling probate and trust administration – ensuring your Will proceeds smoothly through probate, or that your Trust works seamlessly to avoid probate and ensure your legacy for your family, business, and favorite charities. My law firm, Johnson Law KC LLC, can serve you or your family’s estate planning, asset protection, elder law, or business needs. My firm looks forward to serving you and your family with reliable, friendly experience and counsel at an affordable cost.

(c) 2013, Stephen M. Johnson, Esq.

Digital Estate Planning

Posted on by under Digital Estate Planning, Elder Law, Estate Planning, Financial Powers of Attorney, Illiquid Assets, Kansas, Living Wills, Medical Powers of Attorney, Missouri, Retirement, Small Business, Trusts, Wills

In our digital age of laptops, smartphones, social media and digital photos and video, digital estate planning is a necessity. (You’re reading a digital asset written on a MacBook Pro.) What if a family member or business colleague needs access to your email and other digital assets when you’re alive but unavailable or incapacitated? What about after your death? This BBC article includes a good summary of the concerns and need for digital estate planning. My law firm, Johnson Law KC LLC, includes digital estate planning provisions in all powers of attorney, wills, and trusts – standard and at no extra charge – because we know how much our clients value their digital assets and want to preserve them for future generations.

If my law firm can help you or your family with your estate planning (digital and/or traditional), asset protection, elder law, or business needs, call me (913-707-9220) or email me (steve@johnsonlawkc.com) for a convenient, complimentary consultation. My firm relishes the opportunity to serve each client with reliable, friendly experience at an affordable cost.

(c) 2013, Stephen M. Johnson, Esq.