How to Provide for Pets in Your Estate Plan

For many people, pets are members of the family. Considering how to provide for your pets after you’re gone can help to ensure they are well taken care of and make a challenging time easier for your loved ones. It is important to keep in mind that under the law, pets are considered property, so you cannot leave anything directly to them. Wills and trusts lawyers can help you understand the different options that can help protect your pet in your estate plan.

Designate a Caretaker and Funds in Your Will

One of the easiest ways to name a caretaker and allocate money to take care of your pet is to include it in your will. Choose wisely when designating a primary and secondary caretaker for your pet. It is important to select someone you trust to use the funds for your pet’s care, as the manner in which they use the money is not typically monitored or enforced. Before naming a caretaker, make sure they are willing to take on the responsibility so they are not blindsided in the event of your death.

Name an Agent in a Power of Attorney

You can also include language in your general power of attorney that authorizes your agent to care for your pet, place your pet with a specified caregiver, and/or spend money to provide for your pet’s care. Putting this language in a power of attorney can help protect your pet in the event of your incapacitation.

Set up a Pet Trust

A reliable way to provide for a pet is to set up a pet trust. In this type of trust, you can name a trustee that has a legal obligation to look out for the welfare of your pet, according to your instructions. A pet trust provides accountability for the funds you leave to the caretaker and enables you to outline a caretaking plan that takes effect if you become incapacitated. The names of the trustee and caretaker, detailed instructions, and the amount of money necessary to care for the pet should be included in the trust. Setting up and administering a pet trust is more costly than simply naming someone in a power of attorney or will. If you have confidence in the person you have named as a caretaker, a trust is probably unnecessary.

Being Prepared Can Protect Your Pet

A wills and estate attorney can help you determine which option may work best for your specific circumstances. Regardless of which option you choose, keeping a card in your wallet that has information about your pet and how to contact their caretaker can help to ensure they are taken care of in case of an emergency. It is also important to make sure your pet’s caretaker knows how to access your home to retrieve your pet. If you do not have anyone who can care for your pet, the SPCA and other rescue organizations offer legacy programs that find trustworthy caretakers for pets whose owners have died.

Our estate planning law firm helps clients create plans to protect all members of the family, including beloved pets.

This blog was originally posted at https://carosella.com/blog/how-to-provide-for-pets-in-your-estate-plan/

How to Discuss Estate Planning with Your Parents

Talking about estate planning can be uncomfortable. After all, who wants to think about their own mortality or losing a loved one? Although it may be a touchy subject, it is never too early to address these issues with your parents or other loved ones. The uncertainty of the COVID-19 pandemic has led many people to consider what they want as far as medical and end-of-life decisions go, and has motivated them to make sure their affairs are in order in the event of incapacity or death. Finding an experienced attorney at an estate planning law firm can make it easier to talk with your parents and help your family create a plan that gives everyone peace of mind.

Include Your Siblings

When only one adult child in a family knows the details of their parents’ estate plan, it can lead to distrust and conflict down the road. Before you bring up estate planning with your parents, having an open and frank discussion with your siblings can help you prepare for the conversation and give the process a sense of transparency.

Do it Now

Waiting to talk about estate planning with your parents can have tragic results. Life is unpredictable, and circumstances can change in the blink of an eye. Set up a day when everyone has plenty of time to discuss all aspects of estate planning. If your parents are hesitant about it, let them know you want to discuss these issues to protect them, ensure their wishes are carried out as specified, and make things easier for the family should an unexpected illness, injury, or death occur.

Address Powers of Attorney and Advance Directives

There are several vital documents that should be included in any estate plan. Before your parents create powers of attorney and advance health care directives, they will need to decide who to name as agents to make decisions on their behalf and which types of medical treatment they do or do not want. Making these important decisions ahead of time and discussing them with the whole family can help take a lot of weight off everyone’s shoulders.

Talk Finances

If your parents already have a will, make sure it is updated, especially if they have gotten remarried or experienced other significant life changes. Even if they consider their finances private, letting their children glean an understanding of their assets and wealth overall can be helpful. This is also a good time to talk about long-term care and whether certain types of trusts may provide benefits to your parents and family.

Help them Find an Estate Planning Attorney

If your parents do not have an estate planning attorney they are already working with, encourage them to consult one. Whether they already have a plan or they are starting from scratch, a wills and trusts lawyer can take a comprehensive look at their specific situation and address any concerns or questions they may have. Wills and estate attorneys can provide legal advice that can help them understand how estate planning works and create a solid plan that protects everyone’s interests.

This blog was originally posted at https://carosella.com/blog/how-to-discuss-estate-planning-with-your-parents/

How Does Business Valuation Work? Here’s What You Need to Know

There are several methods and factors involved in determining the monetary worth of a business. Proper business valuation is important when buying or selling a business, adding shareholders, wooing investors, and applying for loans or other financing sources. Experienced business lawyers know what to look for and analyze when determining the value of a business. Understanding the various ways the valuation of a company may be determined can help you make sound decisions whether you are thinking of buying or selling a business.

Asset-Based Business Valuation

Also known as book value, asset-based business valuation totals all the investments in the company and can be determined in two ways. A going concern asset-based approach involves a review of the business’s balance sheet, lists the company’s total assets, and subtracts its total liabilities.

If you opt for a liquidation asset-based method, a value is placed on the company according to the net amount of cash that would be available if all assets were sold and all liabilities were paid. If you are selling a profitable, thriving business, you may be able to get more than book value for your company.

Market Valuation

This method determines how your business stacks up to comparable companies that have recently been sold. To a fair market value, research how much comparable businesses have sold for in the past two years and value your business at a similar amount.  Although you most likely want to price your businesses at fair market value, you can increase or decrease the cost, depending on the data that shows what buyers will pay.

Income Valuation

The income method looks at your past profits and cash flow to determine what your business is worth. Using your profit and loss statement, you can project future profits and debts. If you’re selling a small business, it is important to remember that buyers often take out a small business loan to purchase a company, so you want to demonstrate to the buyer that your business can produce enough profit to pay off the loan. Typically, the more effective your business is at paying debts, the higher its valuation will be.

How to Improve Your Small Business Valuation

Careful planning can help get your business off to a good start or improve the valuation of an established business. One key element of this is to have a business succession plan in place.

It is also vital to maintain accurate, up-to-date records, such as financial statements, profit and loss statements, and accounts payable/receivable. Having all this information organized and readily available can help buyers see the potential risks and profits buyers may face. Hiring a qualified accountant or diligently utilizing accounting software can enable you to keep track of your company’s finances.

Business valuation can be more complex when selling a sole proprietorship. While all assets in a corporation, LLC, or LLP are owned by the company and would typically be included in the sale of a business, separating business assets from personal assets in a sole proprietorship can be challenging.

Have a Professional Do Your Business Valuation

Although you can do your own business valuation, consulting an experienced professional is a must to ensure the number you put on your company is accurate. Our business lawyers in West Chester can offer valuable legal advice and help you get the most for your money whether you are buying or selling a business.

This blog was originally posted at https://carosella.com/blog/how-does-business-valuation-work-heres-what-you-need-to-know/