Is your Trust a Parachute or merely a Safety Net?
There is a wonderful recent story about a Minnesota family that has baptized 27 babies over three generations with a baptismal gown made from the World War II parachute that saved grandpa’s life! I’m always coming up with analogies for trusts and often use...Brother of Terri Schiavo Warns Against Weakened Catholic Teaching on Basic Care
The brother of Terri Schiavo, famous in the estate planning world for issues surrounding her diagnosis of Persistent Vegetative State (PVS), is warning of a possible weakening in Catholic teaching in favor of providing basic care for the incapacitated. The brother,...Ahem… American Housing and Economic Mobility Act of 2024 (AHEMA)
The American Housing and Economic Mobility Act of 2024 (AHEMA) is a giant $5 trillion tax increase now before both houses of Congress which has the potential, if Democrats end up with enough control after elections this year, to radically change estate planning. These...Take an Estate Plan Test Drive
Unfortunately, you really do not know exactly how well your estate plan will work until after you are gone. No way around that, but you can improve chances with thorough comprehensive planning and a good maintenance plan. But there is something else you can do: You...How Businesses Can Plan for Sunsetting TCJA Provisions
The Tax Cuts and Jobs Act (TCJA) of 2017 made several significant changes to the tax code that affect small businesses and business owners. It introduced the qualified business interest deduction, added a bonus depreciation deduction for qualifying property, and...Tax Deductions for Home-Based Businesses
The rise of home-based businesses represents a fundamental shift in the way Americans work. Home businesses offer their owners a convenient and flexible way to earn income without commuting to a traditional office. They may also qualify for tax breaks in the form of...Intellectual Property Basics for Businesses
Intellectual property (IP) is the driving force behind many of the world’s most innovative and successful businesses. IP rights—including patents, copyrights, and trademarks—protect intangible assets and help companies and individuals profit from the fruits of their...US Supreme Court Rejects Use of Corporate Redemption Obligation as Estate Deduction
In a major unanimous decision (Connelly v US) sure to cause revision of many business succession plans, the US Supreme Court earlier this month on June 6, 2024, rejected use of a corporate redemption obligation as an estate deduction. While the Court pointed out in a...Trump Voters (59%) Far More Likely Than Biden Voters (19%) to Prioritize Marriage and Children, Poll Finds
A new Pew poll finds that Trump voters are FAR more likely (59%) than Biden voters (19%) to say that society should prioritize marriage and having children. That the rate is higher among Trump voters should not surprise anyone. I’ve definitely noticed a...As Your Kids Consider Sterilization, Incentives Can Make a Vas Deferens
Increasingly, young adults are choosing permanent sterilization. Your estate plan can punish them for doing so. (Or reward them, whatever.) Not talking about transgender surgery. Big sterilization issue there obviously, but that was the subject of another recent post....Suicide Risk Doubles with Transgender Surgery
California men who undergo transgender surgery (removing male genitals and replacing with something else) double their risk of suicide. How long will we continue to allow this demonic, macabre nonsense? Most children confused about what sex they are, grow out of that...Ayn Duringer Headed for Law School, Aims for Top Tax Program
My daughter, Ayn, will be heading for law school this Fall! She was offered a very nice package covering most expenses of attending the Levin College of Law at the University of Florida in Gainesville. Most estate planning attorneys like me, especially those of us...Corporate Transparency Act (CTA) Ruled Unconstitutional
National Small Bus. United v. Yellen, No. 5:22-cv-1448-LCB (N.D. Ala. Mar. 1, 2024) On Friday, March 1, 2024, in National Small Bus. United v. Yellen, Judge Liles C. Burke of the United States District Court for the Northern District of Alabama ruled via memorandum...Economic and Legal Considerations for Short-Term Rental Businesses
Platforms such as Airbnb and VRBO have disrupted an industry once dominated by hotels and resorts, allowing individuals to open their homes and residential properties to travelers. The boom in short-term rentals has created new opportunities for investors who want to...Changing Your Business’ Legal Structure
Over time, your business can undergo significant changes. What may have started as a humble, one-person operation can grow into a more complex company, with multiple owners, employees, an evolving mission statement, and increasing risks. As the scope and goals of your...What Is Due Diligence When Buying a Business?
Due diligence is the process of obtaining and verifying information about a company or person in preparation for a business transaction, such as an acquisition, merger, or potential new business partner. Generally, due diligence provides information about the company...The Annual Meeting: What Every Corporation (and Many Limited Liability Companies) Should Know
All registered corporations are required by law to hold an annual meeting. Limited liability companies (LLCs), although not subject to the same statutory requirement, may hold regular meetings in accordance with their governing documents. What Is the Purpose of a...Gifts That Keep Giving: Tax Considerations for Business Gift-Giving
As the holiday season approaches, gift-giving is on the minds of many business owners. But there are reasons why a business owner may want to give gifts to workers and clients throughout the year and not just during the holidays. Whether to recognize a job well done,...SECURE 2.0 Tax Credits for Small Business Retirement Plans
America is in the midst of a retirement savings crisis. Many people are not saving enough to replace their income in retirement, and some have no money saved for retirement. Employer-sponsored retirement plans enable people to save for retirement, but many...Year-End Deadline! 2 year GRAT for Excess GST Exemption
Suppose earlier this year you read somewhere (this site, for example) that estate, gift, and generation-skipping transfer (GST) tax exemptions will drop in half in 2026, and that there is generally no clawback for gifts made before then which exceed the 2026 exemption...Advisors Panic over Corporate Transparency Act (CTA)’s Orwellian Reporting Requirements
Did you ever put off studying for a final, until the night before the final? That’s pretty much how the planning community is feeling about the Corporate Transparency Act (CTA), which will go into effect January 1, 2024. Congress passed the devilish law several...SECURE 2.0 Act, You, and Your IRA Beneficiaries
On December 29, 2022, President Biden signed the Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0 Act). The previous SECURE Act in 2020 made several changes to retirement planning: It increased the required beginning date (RBD) for required...Israel Gun Ownership Only 2%, Lack of Gun Culture Threatens Families
[UPDATE: Gun sales and license applications are now surging in Israel. Imagine that. Almost like LA, the day after a riot. Does the same thing happen with fire extinguishers?] Israel gun ownership is only 2%. By contrast, over half of Americans own guns. It is not a...Best Time to Talk Turkey on Estate Planning? Thanksgiving and Christmas
Although it is tempting to add the Fourth of July, the best time of year for regular family discussion of estate planning is really the holiday season spanning from Thanksgiving through Christmas, of course including Hanukkah. The window may be expanded to New...Benefits of Having Your Business Donate to Charity
Giving money to charity might seem counterintuitive to those running a for-profit company. However, it is important to keep in mind that charitable giving can not only make a big difference to the recipients of your generosity, but it can also provide a net gain to...Legal Considerations for Farm Owners
Farming brings to mind kinship with nature and a simpler way of life. But the farming industry is highly regulated, and navigating the applicable laws and regulations can be far from simple. A rising world population creates greater demand for food and the farmers who...What Happens to Your Business When You Die
You spend a significant part of your life building your business, and it becomes a major part of your legacy. But when you die, everything you have built could fall apart if you have not taken the time to create a business succession plan. Without a plan in place,...How to Protect Your Business from Lawsuits
Small business owners are no strangers to risk management. Owning and operating a small business entails a certain level of unpredictability. Despite your best efforts to stay on top of supply chains, marketing, sales, competitors, employees, and cash flow, unexpected...Business Trusts 101: What Entrepreneurs Should Know about Using a Business Trust
Trusts are usually associated with estate planning, but trusts can also apply to business operations. As a small business owner, you can hold the business in a trust instead of using a business entity such as a limited liability company (LLC) or corporation. Business...How Do I Start a Home-Based Business?
The number of people working from home has never been higher. During the pandemic, many workers got a taste of the remote-work future and realized that they prefer to work from home. Now, as companies move ahead with return-to-office plans, there is an emerging power...What Happens When an LLC Member Dies?
In theory, a limited liability company (LLC) can last in perpetuity. However, the owners of an LLC should plan for the day when they are no longer there to run their business. This includes not only situations like retirement or career change, but also a decidedly...Complying With Estimated Quarterly Taxes
Tax day is one of the most important—and one of the most dreaded—days on the calendar for working Americans. If you have had a side gig or even transitioned to full-time self-employment, you may have to make estimated quarterly tax payments. Not everybody who earns...Using a Deferred Compensation Agreement in Your Business
The war for talent is heating up. A record number of workers have quit their jobs this year, creating a massive problem for employers. While higher pay can help get new workers in the door of your business, wages alone may not be enough to keep them there. Employers...How to Talk to Your Family About Business Succession
Benjamin Franklin famously quipped, “If you fail to plan, you are planning to fail.” From the very beginning, you had a plan for your business to succeed. You set goals and developed methods to achieve those goals. Your business has stood the test of time because you...The Basis Optimized Trust (BOT)
The Basis Optimized Trust (BOT) is an advanced option for planning that may yield better results than the more common types of irrevocable trusts, such as credit shelter (bypass) trusts, or qualified terminable interest property (QTIP) trusts, which have been the...Considerations Before Owning a Business with Your Spouse
Both running a successful business and having a successful marriage require commitment and hard work. Operating a business as a married couple can present its share of challenges, but being devoted to one another as spouses and as business partners can bring higher...Why You Should Consider Putting Your LLC into a Trust
The limited liability company (LLC) is a popular business structure that offers liability protection and avoidance of double taxation. Trusts are popular asset transfer vehicles that allow you to avoid probate and keep assets out of the hands of creditors. By placing...Prodigal Son Breaks News To Dad That He Spent His Entire Inheritance On Gender Studies Degree
I stole the title of this post from a great Babylon Bee article that just came out. For those who don’t know, Babylon Bee is satire. Strangely, their satirical articles often do come true. And this particular title hews closely enough to family settings often...Member-Managed vs. Manager-Managed LLCs: What Is the Difference?
When setting up your business, one of the most significant decisions you will make is which type of entity to form. If you have settled on forming a limited liability company (LLC), you must also choose the type of management structure it will have. LLCs can be...The BDOT Option for Trusted Beneficiaries
The Beneficiary Deemed Owner Trust (BDOT) is one of several options to consider for “trusted beneficiaries” (pun intended) to whom you are open to giving some access to trust income and/or principal. (Another option might be the Beneficiary Controlled...How to Protect Your Personal Assets as a Business Owner
As a small business owner who puts in long hours to build your enterprise, it can sometimes feel like there is no separation between your personal and professional lives. You are probably willing to make this sacrifice to build a company that reflects your values and...Critique of “California Gun Laws” (2022 edition)
This critique of the 2022 (9th) edition of “California Gun Laws” by C.D. “Chuck” Michel and Matthew D. Cubeiro is not a critique of the entire book, but only a small portion consisting of two sections, Section 3 (“Operation of Law”...Medical Tyranny: Forced Organ Harvesting in America?
Could we see forced organ harvesting here in the US? Of course the notion seems far-fetched, but over the last couple years we’ve fetched so much culture-rending nonsense from far-away communist China that we could be up to our eyeballs in China soon. We...Listen to our new Radio Ad
Check out our new radio ad, commencing today on the Andy Caldwell Show, K-NEWS 98.5 FM…best talk radio on the Central Coast! Posted with permission of the Andy Caldwell Show and Dimes Media. Click here: Script: Ronald Reagan warned us: “Freedom is never more...California Prop 19 Passed, Urgent Action Recommended
Barring any assistance from a Kraken tentacle or two, it looks like California’s Prop 19 passed. Many families will be negatively affected and you should contact us right away for preliminary legal advice on whether you might benefit from taking immediate...SECURE Act: How It Will Affect You and the Beneficiaries of Your Retirement Accounts
Dear Clients and Students, On December 20, 2019, President Trump signed the Setting Every Community Up for Retirement Enhancement Act (SECURE Act). The SECURE Act, which is effective January 1, 2020. The Act is the most impactful legislation affecting...President Trump Signs HUGE Tax Increase on Families (SECURE Act)
Yesterday with all eyes focused on impeachment, President Trump signed into law the Setting Every Community Up for Retirement Enhancement (SECURE) Act, part of the 1,700 page, $1.4 trillion Further Consolidated Appropriations Act, 2020 (H.R. 1865, as amended)....Create a Dynasty Trust before Window Slams Shut
Dynasty trusts may be a tough sell when it comes to some millenials. How long did AOC say we have, twelve years? On the other hand, clients who are sane may benefit from acting now to create a dynasty trust before the window closes in 2026 — or perhaps...Kiplinger’s State-by-State Guide to Taxes
You may find Kiplinger’s updated tax map surprising: Click on any state in the map below for a detailed summary of state taxes on income, property, and everything you buy. Check out our slideshows below, including our picks for the 10 most tax-friendly and the...
Free to Advisors
Protective Law Corporation
895 Napa Ave
Suite B4,
Morro Bay, CA 93442 Suite B4,
United States (US)
URL: https://lawnews.tv