4 Tips to Help Your Loved Ones Avoid Inheritance Disputes

Many families do not encounter problems when settling a loved one’s estate. However, when issues surrounding inheritance arise, it can bring out the worst in people. Each family’s circumstances are different, and an experienced wills and estate attorney can help you understand the most effective way to set up your estate so the settlement process runs smoothly.

Set Up an Estate Plan as Early as Possible

Most young people do not think about estate planning or what may happen after they are gone. However, the best time to create and implement one is when you are physically healthy and of sound mind. Illness or advanced age can easily open the door to disputes if you do not have a will or other estate planning documents in place.

For example, if one of your adult children is your caregiver and you create a Will while under their care, other family members may contest it, claiming your caregiving child had undue influence on you or that you did not have the testamentary capacity when your will was signed. If your estate plan has been in place for many years, it is much less likely to be contested on the basis of whether you were of sound mind.

Consider a Living Trust

Putting assets and property in a revocable living trust can be an effective way to cut down on family disputes. You have access to any monies or property in the trust while you are alive, and can add or remove them at any time. Upon your death, the assets are either distributed according to the terms of the trust or held in the trust to be distributed to beneficiaries in the future, as specified by you.

Trusts are also valuable tools for helping your family avoid probate, which can be a lengthy and expensive process, especially when an estate is contested. Speaking with probate attorneys about your specific situation can help you understand your options.

Talk with Your Loved Ones About Your Estate Plan

Conversations about planning for what will happen after your death are challenging. However, making your objectives clear to family members and talking out any differences ahead of time can be beneficial for everyone involved. If you communicate openly about why you are distributing certain assets to particular people and why some potential heirs may not be included in your estate, your loved ones can get a better understanding of your intentions.

Being very specific about the distribution of items that have more emotional significance than monetary value can also cut down on inheritance disputes. You may even want to gift these items while you are still alive.

Keep Your Plan Up to Date

Life changes such as divorce, remarriage, the birth of children, and other events often alter family dynamics and lead to conflict if they are not properly addressed. In addition, ever-changing tax laws may affect the way your estate plan should be set up to ensure your loved ones’ inheritance is maximized. Checking in yearly with your estate law attorney and making any necessary changes can help to ensure your wishes are accurately reflected in your estate plan. If you own significant real estate investments, it is prudent to consult with your real property lawyer periodically as well.

Our attorneys can assist you with drafting a well-crafted estate plan that reduces conflict between family members and diminishes the likelihood of inheritance disputes.

This blog was originally posted at https://carosella.com/blog/4-tips-to-help-your-loved-ones-avoid-inheritance-disputes/

Why Business Succession Planning is Critical to Your Company’s Success

When you own a successful business and your future looks bright, it can be tough to imagine what would happen if you were not there. Things can change in the blink of an eye due to an accident or illness, and the COVID-19 pandemic has shown that it is more important than ever to be prepared. However, business succession planning is not just something that is needed when an unexpected event occurs – it can also help to ensure the success of your company after you retire. Talking with an experienced business succession planning lawyer can help you understand how a good plan can help your business thrive for decades to come.

What is The Purpose of Business Succession Planning?

The aim of succession planning is to ensure your company has adequate procedures and qualified leaders in place if unexpected events occur or someone retires. Failing to plan can leave your business in chaos. If no one around knows how to run the company, it can go downhill quickly.

Benefits of Business Succession Planning

Having a solid business succession plan in place has many benefits – it can make transitions easier for everyone involved and keep your company rolling along. Estate law attorneys often advise clients to make business succession planning part of the estate planning process to protect their family’s financial future. Each business is different. For example, real property lawyers may better understand the unique needs of clients in the real estate and construction industries.

It Prepares Your Business for Disaster

Regardless of how old you are or how long your business has been around, there are many scenarios that can make your company vulnerable. Companies buy insurance policies to protect their businesses from unexpected events like fires and natural disasters. Consider a business succession plan a kind of insurance for an event such as an owner suddenly retiring, becoming ill, or dying. Thinking about business succession planning can be daunting, but having a good business attorney in your corner can help you shore up your company for the long haul.

Creates Structure and Opportunity

Business succession planning can help you identify which positions are most critical to keeping your business running smoothly. It gives you an opportunity to observe possible candidates and see whose skills and values match up with your company’s mission and plans for the future. Talking with management and employees about their career plans and interests can help you better understand potential vulnerabilities, and see if cross-training employees in certain roles is necessary.

Even if some employees do not have a lot of experience, if they are ambitious and willing to learn, acknowledging their hard work and showing appreciation can inspire them to stay with you for the long haul and grow into management positions throughout the years, and eventually, take over when you are gone.

If you own a family business, you may also realize that just because your adult child works for you, it may not mean that they are capable of or willing to take over the company someday. Starting conversations about these issues can be challenging, but framing it in the context of planning for your business’s future success can make these discussions less emotional.

Expedites Training and Development

Once you have identified candidates for senior positions, you can begin to help them in their professional development and training. This gives them time to acquire the skills and they may need to be successful down the road. Investing in your employees’ growth is also an investment in the continued development of your company. It is never a bad idea to have fresh eyes that may be able to point out weaknesses or inefficiencies in processes and procedures or notice untapped sales opportunities and other vehicles for positive change. The world is always changing, and fresh ideas help your company evolve with it and stay at the forefront of your industry.

Our business contract attorneys help you understand the importance of business succession planning and work with you to create a plan that keeps your company on track to continued success.

This blog was originally posted at https://carosella.com/blog/why-business-succession-planning-is-critical-to-your-companys-success/

Why You Should Create Powers of Attorney for Health Care and Finances Right Now

Regardless of your age, having powers of attorney and other vital estate planning documents in place can help to ensure you and your family are prepared if you fall ill and are unable to make decisions for yourself. Coronavirus has affected people of all ages and left some incapacitated for weeks or even months. If there were ever a good time to see a wills and estate attorney to help you draft POAs, it is now.

Power of Attorney for Health Care

This document enables you to name an agent who will make medical decisions for you should you become unable to do so. These decisions may include medication, treatment options, surgery, end-of-life care, and just about any other medical issues that may arise.

Your estate law attorney can also draft an advance directive, which outlines your wishes regarding life-sustaining measures such as mechanical ventilation and artificial nutrition and hydration. It also allows you to specify whether you want resuscitation measures such as CPR.

Having these essential documents ready to go in case you become gravely ill or you are injured in an accident makes your wishes clear, which takes a huge burden off your loved ones. No one wants to make these serious decisions without having any idea of what a family member would want. Having an experienced lawyer assist you with drafting these documents also ensures they are legally sound.

Powers of Attorney for Finances

If you are laid up in the hospital, your rent, mortgage, utilities, and other bills still need to be paid. In a POA for finances, you can designate someone you trust to handle your finances in the event of your incapacitation. You can be as specific as you like about which financial duties they are authorized to fulfill. In addition to making sure your bills are paid, you can authorize your agent to manage bank accounts, investments, real estate, and insurance policies, make deposits, file taxes, and any other financial matters that need to be taken care of.

A well-drafted power of attorney for finances can protect your financial stability and prevent unscrupulous people from taking advantage of you. Both types of POAs can help minimize conflict within your family. If you’re unsure about who to name as your agent in either POA, your lawyer can offer an objective perspective so you can make well-informed decisions.

Other Things to Know about POAs

Probate attorneys, wills and trusts lawyers, and estate planning lawyers can all help you create solid powers of attorney that protect your rights. You can revoke or alter your powers of attorney at any time, as long as you are mentally capable of doing so. You can also terminate your powers of attorney if you get better and are able to make decisions for yourself.  Irrevocable powers of attorney are extremely rare. POAs are no longer valid in event of your death.

If you are divorced or your spouse has passed away, it is critical to update your entire estate plan. It is especially important to create or revise your powers of attorney if you do not wish to have your former spouse make health care or financial decisions for you or if you have been remarried. If you are currently working with local divorce attorneys, they may be able to help you update your powers of attorney and other documents.

This blog was originally posted at https://carosella.com/blog/why-you-should-create-powers-of-attorney-for-health-care-and-finances-right-now/