Category Archives: Family Business

Final Boarding Call: Estate Planning in 2012

Posted on by under BDITs, Business Succession Planning, Business Transitions, Dynasty Trusts, Estate Planning, Estate Tax, Family Business, Family Limited Partnerships, Financial Powers of Attorney, Generation Skipping Tax, Gift Tax, Gifts to Minors, Illiquid Assets, Kansas, Living Wills, LLCs, Medical Powers of Attorney, Missouri, QPRTs, Small Business, Special Needs Trusts, Trusts, Wills

The WSJ has this helpful article reminding folks to get their estate plans in order, especially for families with $1 to 5 million+ in assets. As we ring in the new year in a few short months, if Congress hasn’t done anything on the tax front, you’ll see several changes hitting your pocketbook. The Bush tax cuts will expire – so you’ll owe tax if you (1) die with more than a $1 million estate, if you (2) give more than $1 million to family or friends, or (3) if you do more than $1 million generation skipping transfers (e.g. grandparents to grandchildren). Portability is also set to expire, so you won’t be able to use your predeceased spouse’s estate tax exemption. The Obama payroll tax cut will also expire – so you’ll have less take home pay from each paycheck. Like the historically low interest rates now in play, we may not see estate and gift tax laws that allow you to pass on your hard-earned wealth and leave a legacy for your family again in our lifetimes.

Echoing the anecdotes offered in the WSJ article, our firm has been very busy lately, and our appointment calendars are filling up with work, as are the other professionals we work with to best serve clients with a holistic approach. If you need to do any estate planning, business, or real estate work before 2013, it’s time to act. If you have a small business, real estate interests, or other potentially hard-to-value assets, you may need to have an appraisal done before structuring your business succession plan, or setting up a family limited partnership (FLP) or family LLC. Appraisers’ schedules are filling up, so if you’re thinking of passing on your business or real estate holdings, it’s time to bite the bullet and get it done. Your family will thank you and you’ll be able to enjoy the holidays with the peace of mind that everything’s taken care of according to your desires.

We offer a free 1/2 hour consultation, convenient and affordable flat fee billing, and we’re a simple phone call or email away at (913) 7o7-9220 or steve@johnsonlawkc.com. At Johnson Law KC LLC, we look forward to serving your legal needs.

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

Estate Planning: Beyond Taxes

Posted on by under Digital Estate Planning, Estate Planning, Estate Tax, Family Business, Financial Powers of Attorney, Generation Skipping Tax, Gift Tax, Gifts to Minors, Kansas, Living Wills, Medical Powers of Attorney, Missouri, Probate, Small Business, Trusts, Wills

Conrad Teitell, a noted tax and non-profit lawyer, has these helpful tips to remind people that while a good estate plan will minimize or completely avoid taxes for your and your family, estate planning is about more much than taxes. I would add that consulting with an estate planning attorney is crucial. Any adult with any complexity in their life (married, divorced, kids, grandkids, house, more than $50,000 in assets, business interests, life insurance, IRAs, favorite charities or college, anticipated inheritance, etc) needs to talk with a lawyer about their estate plan.

Every adult needs a will and/or trust, a living will, and durable financial and medical powers of attorney. Our law firm’s estate planning documents include digital estate planning provisions (for email, social media, digital photos, online banking, and more) standard. While digital estate planning is a cutting edge field and certainly not included in most online legal services or other one-size-fits-all forms, at Johnson Law KC LLC, we listen to your needs and provide custom tailored solutions that will protect you and your family for generations to come. Give us a call (913-707-9220) or email us (steve@johnsonlawkc.com) for a free 1/2 hour consultation on your estate plan.

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

Estate Planning Made Easier

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

Here’s a helpful article from Fox News offering 5 tips for preparing a will and estate planning documents. They are:

1. Make a plan – what do you want to happen to your assets when you die?

2. List your assets – what different accounts, cars, house, and other stuff do you have?

3. Name an executor – who’s going to handle your final affairs and administer your estate?

4. Consult an expert – use a good estate planning attorney, accountant, and financial advisor

5. Leave a note – how do you want your funeral handled? Who should your family call after you die?

While thinking about estate planning is often unpleasant or morbid, we try to make the estate planning process easier and help you gain the peace of mind and assurance that your family is taken care of and well provided for. Whether you’re in Kansas or Missouri, young or old, single or married, wealthy or just starting out your career, we’re here to serve your estate planning needs. Call our office (913-707-9220) or email (steve@johnsonlawkc.com) us for a convenient appointment and let’s begin the estate planning journey together, for you and your family’s sake. We offer a free 30 minute consultation and convenient, no surprises flat fee billing to our estate planning clients.

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

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.

Probate and attorneys’ fees

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

Here’s a cautionary story from the Daily Mail about a wealthy Connecticut man who died, leaving an estate of $162 million, in 1986, which was consumed by attorney’s fees during the lengthy probate process. The Connecticut story was an extreme case and no doubt left the family displeased with their attorneys. Probate cases are usually completed within a few months to year or so, depending on the complexity of the assets involved and how cooperative the heirs are. But probate horror stories like this one are what cause many people to avoid probate with a trust, joint tenancy property, transfer on death or pay on death, and other probate-avoidance techniques.

If you’re involved in a probate estate or need a good estate plan to avoid probate, call (913-707-9220) or email (steve@johnsonlawkc.com) our office, Johnson Law KC LLC, for a convenient complimentary consultation.

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

The New Economy: Time for an Estate Planning Checkup

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

The Wall Street Journal’s Real Time Economics blog has this post detailing a new report from the Federal Reserve that familys’ net worth fell nearly 40% between 2007 and 2010, as the financial crisis engulfed the economy and left a stubborn recession in its wake. The new economic realities we find ourselves in nationally and globally call for a review of your estate plan. Whether you’ve got an older estate plan that’s been in place for years or are a young professional or new entrepreneur who’s never done estate planning before, we can help guide you through the process. Call (913-707-9220) or email (steve@johnsonlawkc.com) our office, Johnson Law KC LLC, for a convenient appointment and complimentary consultation.

(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.