Continue reading "I’ve Been Named the Executor of a Relative’s Will in Indiana. Now What?"
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]]>A last will and testament, commonly called a will, is a legal document that describes how a person’s property and assets should be transferred after their death. An executor is a person named in the will who is responsible for overseeing this legal process, known as probate. The executor will need to submit the deceased person’s will to the probate court in the county in which the decedent (also known as the testator) resided at the time of their death and petition to be appointed as the executor of the will. Once the will is admitted to probate, an experienced estate administration attorney will work with the executor to:
If you have been nominated as the executor of an estate, having an experienced advocate guide you through this process may make it easier and provide valuable benefits. Each case is unique and should be analyzed carefully, but here are a few circumstances in which hiring a probate lawyer may be beneficial.
The decedent owned a large or complex set of assets. Some items are easier to value and distribute than others, and some assets may not need to go through probate at all. But if you’re unfamiliar with the probate process, making these determinations on your own can be difficult, especially when the number or amount of assets involved is unusually high.
Conflict exists among the beneficiaries or surviving family members. The decedent may have believed that their will would clearly express their wishes for distributing property and assets, but emotions and family dynamics can sometimes complicate the process or lead to misunderstandings. Having an informed and neutral person to handle these situations can help avoid or resolve conflicts.
The estate may not have enough assets to satisfy its debts or obligations. The decedent may owe debts at the time of death, including final medical bills, and the estate may also have to account for taxes. If the assets in the estate are not likely to cover these obligations, a knowledgeable estate administration attorney can assist the executor in properly settling the debts.
Not all estates require the opening of a probate estate. Depending on the size of the estate and the nature of the assets, an experienced estate administration attorney can guide you in understanding alternatives to the probate process.
Ensuring a loved one’s final wishes regarding their estate are carried out can be stressful, but it can also be an important way to honor their memory. If you’ve been nominated as the executor of an estate in Indiana and need guidance on the probate process, the attorneys at Spagnolo & Hoeksema, LLC, are here to assist you. Call our office today to request a free consultation.
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]]>Continue reading "Reasons to Work with a Lawyer When Forming a New Business"
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]]>You can protect your business with written agreements, and having the right legal agreements will help you avoid employee or contract disputes and potentially limit your liability. A contract can also protect your ideas and business information from competitors. Common kinds of contracts that most businesses will need include:
Many small businesses require a combination of licenses and permits, and these can be from both federal and state agencies. The requirements (and fees) will vary depending on the business activities, location, and government rules. States tend to regulate a wider range of activities than the federal government, and an experienced local business law attorney can help you understand these requirements.
There are several business entities to choose from, each with benefits and limitations. Common business structures include sole proprietorship, partnership, and limited partnership. You might also consider forming a limited liability company (LLC) or a corporation. Perhaps you are even interested in starting a non-profit organization or co-op. Additionally, there are options within the entities that can determine issues such as double taxation and liability for the acts of partners.
A knowledgeable attorney can explain these options and how they will impact the future of your venture.
You may be based in one state and have certain preconditions relating to your business there, but what happens if you begin doing business in a neighboring state? This becomes critical for many Illinois and Indiana companies that can easily have business crossing state lines. Illinois, for example, enforces non-compete agreements, while Indiana will only enforce them if the restrictions are reasonable in scope relating to time, activity, and geographic area.
Certain businesses have to strictly conform to state law governing that business form, or they risk losing the benefits and protections of the laws. Common examples of industries that face strict regulation include healthcare and finance, just to name a few. Regulatory compliance involves businesses following state, federal, and international laws, or regulations relevant to their operations.
Many small business owners face issues when trying to finance their new businesses. The ability to secure adequate capital funding can be a major concern. Common problems include a shortage of cash on hand, lackluster personal and business credit scores, and technological issues. A skilled business lawyer can help you explore funding options.
Different kinds of businesses are going to have different tax advantages and disadvantages. Inadequate tax planning can cost your business significantly. Working with a business attorney who also understands tax law attorney can help you plan for all of the potential liability concerns related to your business.
You need to understand that different kinds of businesses can offer different personal protections for business owners. You will want to work with an attorney who can outline the advantages and drawbacks of whatever type of business you are hoping to open.
When considering starting your own business, one of your first steps should be to speak with a qualified attorney. Spagnolo & Hoeksema, LLC, knows how complex starting a new venture can be and helps clients in Illinois and Indiana take the right steps to a good start.
Our firm can be by your side throughout the entire business creation process. Call us or contact us online to take advantage of a free consultation that will let us fully examine your business strategy and offer concrete legal advice to help you start on the right foot.
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]]>Continue reading "What Happens if I Die Without a Will?"
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]]>In most cases of death without a will, the estate will need to go through probate court, and this process can become adversarial in some families. Legal representation is vital for preserving certain rights and ensuring favorable outcomes.
A person who dies without a will is said to die “intestate,” and the person who dies is known as the decedent. Speaking very broadly, a decedent’s property will be distributed to their heirs during a probate court case according to state regulations after any required debts and taxes have been satisfied. However, this may be different than how the decedent would have liked their assets to be divided, which is one of many reasons why creating a valid will is so important. Here are a few other important points to consider:
State distribution guidelines vs. personal wishes – If a decedent had a spouse and two children, the probate court could determine that the spouse is entitled to half of the money from the estate and the other half should be divided equally between the two children (although many factors will determine the final distribution). If the state’s method for distributing your assets is not aligned with your wishes, a will or other estate planning tools could give you more control over these decisions.
Naming an administrator – Another important consideration is who will administer the estate. If there is no will, a probate court will assign an administrator to settle a decedent’s estate. An administrator will be responsible for tasks like gathering the deceased person’s assets, paying bills, and distributing the estate property to beneficiaries once the probate process is complete.
Assets not subject to probate – Certain assets that do not pass through your will are also unaffected by intestate succession laws. This may include property in a living trust, life insurance proceeds, funds in an individual retirement account (IRA) or 401(k), property the descendant owns with another person in joint tenancy or tenancy by the entirety, and much more.
Considerations for family relationships – When a person dies with children or other descendants from them and a surviving spouse, the surviving spouse usually inherits half of the intestate property. Children who were legally adopted receive an intestate share, but foster children or stepchildren who were never legally adopted do not automatically receive a share. Creating a will or trust could help you ensure that your loved ones are included in your estate according to your preferences.
As you can see, dying without a will can create immense problems for your family and other loved ones and result in your assets being handled in a manner you would not approve of. This is why every adult needs to have an estate plan in place, regardless of the value of your assets.
Working with an experienced firm like Spagnolo & Hoeksema, LLC, will help you formulate a comprehensive will and protect your interests. Our attorneys can conduct a thorough examination of all your assets and develop a plan that precisely suits your needs and goals. Call us or contact us online to receive a free consultation so we can further discuss your estate planning options.
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]]>Continue reading "Adult Guardianship Laws in Indiana"
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]]>The need for an adult guardian is not always clear-cut, and judges frequently have to wrestle with whether or not such an appointment is truly necessary. Beyond the need for appointing a guardian, the matter of who will serve as the guardian can also be contentious. This post will cover some of the basics of Indiana guardianships, but it is always best to consult with an experienced attorney regarding your unique situation.
In Indiana, a guardian is a person or entity appointed by the court to handle the care and supervision of an incapacitated person or the property of an incapacitated person. An incapacitated person is someone whose current condition or disabilities prevent them from providing self-care or managing their own affairs.
An adult under guardianship will still retain the right to vote, challenge or end the guardianship, request an appointment of a different guardian, and participate in other routine activities such as visiting with friends or family. For persons with permanent disabilities, guardianships in Indiana often remain in place throughout their lifetime, but state law requires termination of a guardianship when an incapacitated person dies or if the court determines the guardianship is no longer necessary.
The court will set the specific limitations of each guardianship. A guardian could potentially be responsible for matters such as providing or supervising the healthcare of a person with disabilities or ensuring proper preservation and management of their property, finances, and assets. In most cases, a guardian will be required to regularly inform the court of the status of these matters.
Courts in Indiana are directed to limit guardianship when appropriate to encourage the self-improvement, self-reliance, and independence of the incapacitated person. A guardianship may have limits on the length of time it is valid, the guardian’s scope of authority, and more. Both the person petitioning for guardianship and the person subject to protection are allowed to seek limited guardianship.
Indiana law acknowledges that certain legally recognized supports may address an incapacitated person’s limitations without the need for guardianship in some cases. Such supports may include, but are not limited to:
There are many nuances to consider when determining which type of legal protection may be best for your loved one and your family. A knowledgeable guardianship attorney can assist you in understanding these choices and how they might impact your situation.
If you are seeking adult guardianship in Indiana, do not try to handle this complex matter by yourself. You will benefit by having Spagnolo & Hoeksema, LLC, on your side because we know how to achieve the most favorable outcomes in these cases.
Our firm can work closely with you and make sure that you are able to provide the court with the necessary evidence to support your claims and grant you guardianship. Call us or contact us online to set up a free consultation that will allow us to take a much better look at the specifics of your case and provide solid legal advice.
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]]>Continue reading "Common Estate Planning Myths Debunked"
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]]>Your will determines the distribution of assets in your individual name, but certain assets that are passed by title or by beneficiary designation may not necessarily be included. This can mean that, without a comprehensive estate plan in place, your home, retirement account, or life insurance may pass by title to the joint owner or by beneficiary designation to a named beneficiary.
Titling and beneficiary designations are often just as important as a will itself. A skilled estate planning attorney can help you better protect your assets and work to minimize any unintended consequences relating to the distribution of your estate.
Every adult must plan for potential incapacity and death regardless of the value of their estate or their current age, and a well-crafted estate plan protects more than just your finances.
Nobody can truly prepare for accidents or illnesses, which is why having a legal representative you name to handle financial and medical care decisions in the event of incapacity is critical. Not having a valid will or trust designating such a representative may result in unnecessary stress or costs for your family and could result in unwanted actions regarding your care.
While many people enter the estate planning process believing that their needs will be quite simple to satisfy, the truth is that there are often many considerations they do not give proper thought to. For example, children and grandchildren are common beneficiaries, but you’ll need to consider factors like the ages at which these beneficiaries can obtain assets or if it may be wise to distribute assets in installments.
You may also have issues relating to guardianship of your minor children, estate taxes, or succession plans relating to unique assets. There can also be complications in blended families or stepfamilies. For this reason, even people with a relatively small estate may need to consider estate planning tools that go beyond a simple will.
People hoping to avoid the administration of a will in probate court may use a revocable living trust as their tool of choice for an estate plan, but that revocable trust will need to have proper funding in order to avoid probate. This means that you need to title assets of your estate in the name of the trust or payable to the trust by beneficiary designation.
If you create a revocable living trust but do not transfer certain property into it, assets could require probate. Not having a will can lead to the property passing to heirs-at-law or your closest kin.
Anybody saying this needs to ask themselves how long ago they created the estate plan because any estate plan that is more than ten years old is likely to need an update. Not only do circumstances in life change, but laws do, too. Revisions may only involve minor changes, but those changes can still be important.
Misconceptions can be a major hang-up with estate planning, and many people do not realize how important an estate plan can be for their long-term goals.
If you do not have an estate plan or need to update an existing one, make sure to work with an experienced attorney. Spagnolo & Hoeksema, LLC, handles estate plans of all sizes for clients throughout the greater Chicagoland area, serving both Illinois and Indiana. Our firm will take the time to understand your long-term goals and help you craft an estate plan that supports the outcomes you are seeking. Call us or contact us online to schedule a free consultation and go over all of the unique details of your case.
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]]>Continue reading "The Proposed Democrat Tax Plan Would Have A Major Impact On Your Estate"
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]]>We all expected that the “rich” would be targeted with this plan. Who is and isn’t rich is always left very vague and subject to interpretation. The proposed plan certainly targets the people they call “rich,” but, shockingly, it also goes well beyond.
The eye opener is the extent to which this proposed plan will affect the not “rich” – i.e. the middle class.
In short, if you own a home, or have any substantial investments, be careful not to die, if this plan gets implemented.
As I have discussed with many of my clients, the Democrat plan has always been to lower the estate tax unified credit equivalent from the roughly $11,500,000 amount at which it currently stands, to something closer to the previous $5,000,000 amount, or lower. Remember, the tax on your estate after you die is in addition to the income taxes you have paid your whole life.
However, the plan, as proposed, increases those death taxes by eliminating what is called the “step up in basis” that all decedents receive on their property and non-qualified assets owned at the time of their death. This provision alone will affect everyone who dies regardless of the size of their estate.
For example, if a decedent bought a home in 1976 for $50,000, and that home is now worth $300,000, the current law provides that the basis in the home would be stepped up from $50,000 to $300,000, as of the date of the decedent’s death. If the heirs then sell the property for $300,000, there is no taxable gain to the heirs.
In Democrat’s new plan, there would be no step up at death. The $250,000 gain would be fully taxed to the heirs receiving that gain. For people who have estates that are subject to estate taxes, the appreciated asset could carry a tax as high as 70% or more of its value. The same analysis applies to highly appreciated non-qualified investment accounts. This means that the increase in value of those accounts would be fully taxed at this higher rate, and your heirs do not receive the benefit of your investment and savings during your lifetime. The net effect could be catastrophic on your estate and on your heirs.
This would be a radical shift of the law as it has stood for the entirety of my career. Again, this change is not aimed at just the “rich,” but also squarely at the middle class. In fact, it is aimed at anyone who owns a home and has saved a few bucks. If this proposal becomes law, it will become necessary to re-evaluate and revise your estate plans immediately. We would welcome the opportunity to discuss with you the ramifications of these changes to your estate.
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]]>Continue reading "ESSENTIAL STEPS WHEN DISSOLVING YOUR BUSINESS"
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]]>Whether you have a partnership agreement or articles of incorporation, your business may have pre-defined steps for the end of a business. These steps may include voting among partners or shareholders to finalize the closure. Checking these guidelines first can help you avoid disputes later in the process.
When you have decided to dissolve a partnership, LLC or corporation, you probably filed with the state when founding your business. Filing Articles of Dissolution will give the state notice that you are terminating your company.
You will need to notify local, state and federal agencies that you intend to solve the business. Because your company is still liable for taxes during its operation, you will need to continue making paycheck deductions, filing your quarterly or annual taxes and filing all relevant forms for the year. The state of Illinois gives guidelines for submitting this information with the state, and the IRS offers a checklist for business closure.
Canceling your business licenses with local governments or agencies is also an essential step if your company required a license to operate.
Whether you had a line of credit for supplies used in your business, worked with a lender or had insurance for your company, notifying your creditors allows you to take appropriate action to pay that debt. This will enable them to be aware of the amount of time before your business will be dissolved and send you a claim for unpaid lines of credit.
You may want to work with an attorney at this stage because you could reject some of these claims and negotiate others. Handling these claims is a matter of state law, and your attorney can assist you in reviewing the claims you have received and determining your options for each.
Just as it is important to pay off your business’s existing debts to the best of your ability, you should collect on the debts that other people and companies owe your business. You should also sell any remaining assets at this time. Once you fulfill all your business’s financial responsibilities, you will distribute your assets among the people who have a stake in the company.
Closing your business can be a complicated process, and experienced legal guidance can be an asset at any stage of this process. A qualified attorney can ensure that you fulfill all your company’s legal responsibilities and complete the process of dissolving your business with confidence.
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]]>Continue reading "While We Wait… 10 tips to improve your business during the shutdown"
The post While We Wait… 10 tips to improve your business during the shutdown appeared first on Spagnolo & Hoeksema, LLC.
]]>With many businesses temporarily closed and with most of us confined to our homes, now is a good time to re- evaluate your business and how it operates.
1. Review your customer base. Do you have many customers, or is your business dependent on one or a few large customers? If it’s the latter, look at ways to diversify your customer base so that the loss of a large customer doesn’t cause an unmanageable drop in cash flow. If it’s the former, are you spending a large amount of time on customers that require a lot of attention but produce very little? Perhaps by “firing” that customer, it will free you up to work on customers that are productive.
2. Review your customer relationships. Have you done this lately? How strong are they? Who, in your business, controls those relationships? You may want to use this downtime to strengthen those relationships.
3. Evaluate your labor force. Is the size and mix of your workforce the most efficient and effective for your business? Are your employees in positions that play best to their skills? Is your compensation structure competitive and designed to incentivize your workforce? Do you have proper employment agreements with your employees? Are your independent contractors really independent contractors?
4. Examine how your business cash flows. Are you using a line of credit, or is the business cash flowing itself? If you have a true line of credit, are you using
it as such, or should that line really be handled like a capital loan? Are you actively managing your payables and receivables in order to maximize your cash
flow?
5. Evaluate your accounting practices. Is it time to upgrade accounting software? Is your accounting software properly set up for your business? Are you receiving the proper accounting help and advice? Are you considering the impact of taxes on your business? Do you get advice about the tax consequences of potential activities or transactions before entering them? Activities and transactions designed to achieve certain goals and objectives can be structured in myriad ways, but not all produce the same tax consequences. Upfront tax planning can result in achieving your goals and objectives but in the most tax effective way. In a similar vein, are you considering the impact of taxes on your personal returns and the possible interrelationship between your business’ tax situation and your personal one? Again, upfront tax planning is often key to producing the best overall economic result.
6. Evaluate your fixed assets. Are the fixed assets and equipment being used in your business in need of replacement or repair? This down time may be a good time to do either, if cash flow allows. Is a piece of equipment more of a problem than it’s worth? Are there better and more affordable equipment options out there that can make your business more efficient?
7. Evaluate your legal structure and documentation. Is your business structured properly? Does it have the proper legal documentation that will protect your business if it is sued? Are your customer and vendor contracts solid and in order? Have you done your own estate planning?
8. Evaluate your business’ insurance needs. When was the last time you spoke to your insurance agent? Does your business have the proper insurance coverage for the type of activities it is engaged in?
9. Evaluate your physical location. If you are leasing, does your space fit your needs for the right price? Are you paying a market price for rent? If you own, are your real estate taxes in line with similar properties? Has your property’s assessed value been unreasonably increased lately?
10. Evaluate your exit strategy. Have you planned for how you will get cash out of your business? Do you want to pass it on to your children? Do you want
to sell it, and, if so, to whom?
We’d be happy to help you navigate through any of these opportunities. Give us a call to get started!
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]]>The post One less thing to worry about – we can help you protect your assets in the name of your Trust appeared first on Spagnolo & Hoeksema, LLC.
]]>After the puzzles and movies and cooking, you might want to take some time to care for the things you’ve worked so hard for over the years. Please make sure that your assets are protected and properly titled in the name of your Trust.
If you have a Living Trust and have not yet done this, take this opportunity to get it done now. If you have already re-titled your assets in the name of your Trust, that’s great! But do take some time and verify that it is done properly and up-to-date.
If you have not taken any steps yet to protect your assets to ensure they remain safe, we would be happy to help you get started doing just that.
In any event, if you have any questions, please feel free to give us a call. Our office is open, and we are available by phone conference, video conference, and e-mail.
Stay Safe. We look forward to a return to normalcy.
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]]>Continue reading "Choose the right business structure to start strong"
The post Choose the right business structure to start strong appeared first on Spagnolo & Hoeksema, LLC.
]]>The kind of business you set up does matter. Certain business forms protect you against personal liability and can change the way that you do your taxes each year.
According to the Internal Revenue Service, the most common kinds of businesses include:
Deciding on a business structure is the first step, because your choice will influence everything from your day-to-day operations to your taxes. You will want to choose the business structure that gives you the best balance of benefits and legal protections.
Sole proprietorships
Sole proprietorships are an easy form for a business to take. You have complete control of your business and don’t need to worry about creating a second business entity. Keep in mind that your business assets and personal liabilities are not separate, so your business could be on the hook for personal liability issues and vice versa.
You can get a trade name as a sole proprietor, but you won’t be able to sell stock. This could make it more difficult to borrow from a bank.
Limited Liability Companies (LLCs)
Another option is the LLC. An LLC protects you against personal liability in most situations and will allow you to receive some of the benefits of corporations and partnership structures. If your LLC goes bankrupt or faces a lawsuit, your personal assets won’t be at risk (in the majority of cases).
Of course, these are just two of the different business structures that are listed above. Each one has its own strengths and weaknesses, so you’ll need to think carefully about the kind of business you want to run and if liability is a concern to you.
When you talk with your attorney, you’ll want to have a good explanation of what you plan to do with your business and what kind of legal protections you’d like. You should discuss tax benefits of different types of business structures as well as ways to limit your personal liability in the case of problems that result in a lawsuit.
Your attorney will help you decide on the right business structure, so that you can start your business out on the right foot and build a strong business from the ground up.
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