Plan and Protect
YOUR LEGACY
With a Personalized Approach to Wealth
Management & Estate Preservation
SERVICES PROVIDED
Estate Planning
- Revocable Living Trust
- Last Will and Testament
- Advance Health Care Directive
- Durable Power of Attorney for Health
- Durable Power of Attorney for Financial
- Retirement Planning
- Funeral Planning
Business Planning
- New Business Startup
- Sole Proprietorship Formation
- Corporation Formation
- LLC Formation
- Partnership Agreement
- Buy Sell Agreement
- Key Person Protection
$1,299 FOR PREPARATION OF REVOCABLE LIVING TRUST
FOR MINIMUM ESTATE OF $200,000 AND YOU OWN YOUR OWN HOME
BENEFITS OF A REVOCABLE LIVING TRUST
The primary purpose of a revocable living trust is to manage and distribute assets during
your lifetime and after you die, and keep your assets private without going through probate.
Some of the benefits of a trust are:
- Control and Flexibility: The grantor retains control over the trust assets and can amend or revoke the trust at any time during their lifetime.
- Trustee: The grantor retains control over the trust assets and can amend or revoke the trust at any time during their lifetime.
- Incapacity and Death: If the grantor becomes incapacitated, the successor trustee can manage the trust assets according to the trust’s terms. Upon the grantor’s death, the trust becomes irrevocable, and the successor trustee distributes the assets according to the trust document.
- Joint Living Trust: A joint living trust is a type of trust created by a married couple, allowing both spouses to control the assets and manage the trust jointly.
- Trust Implications: Revocable trusts are generally subject to estate taxes, and the assets in the trust are considered part of the grantor’s taxable estate.
- Creditors: Creditors can still pursue assets held in a revocable trust.
- Choose a trustee/name beneficiaries: Decide who will manage the trust’s assets
(you can be the trustee initially or appoint someone else); name a beneficiary.
- Outline the terms of the trust: How the assets will be managed and distributed;
- Sign/notarize the document: Once the trust document is finalized, you must sign it in front of a notary public.
- Fund the Trust: Your assets (bank accounts, real estate, investments, etc.) are now ready to be transferred to the trust.
- Retitle and transfer assets: The ownership of assets will be changed from your
name to the name of the trust. You’ll need deeds, stock certificates, bank account
statements, and other documents to facilitate the transfer of assets.
PREPARATION OF AN
ADVANCE CARE DIRECTIVE
By creating an advanced care directive as part of your estate, you alleviate the burden on your family to make difficult decisions during a stressful time. Think of end-of-life planning as a final gift you leave for your loved ones. By taking time now to make tough decisions about your health and finances, you prevent that burden from being shifted to them after you die.
Checklist for preparing an Advanced Care Directive:
- Living Trust – Preparation of a living trust names and instructs a person, called the trustee, to hold and distribute property and funds on your behalf when you are no longer able to manage your affairs.
- Financial Planning – Review your financial situation, including debts, insurance policies, and retirement plans.
- Durable power of attorney for finances – Name the person(s) who will make financial decisions for you when you are unable to.
- Appoint a health care proxy – A health care proxy can be a spouse, relative or trusted friend to make decisions about your health based on your values and preferences if you are unable to.
- Palliative care – Focuses on relieving pain and improving quality of life for individuals with serious illnesses.
- Hospice care: Also known as comfort care, should you have a terminal illness.
- DNR (do not resuscitate) Order – A medical directive instructing healthcare providers not to perform CPR, i.e., if your heart stops.
- Obituary – Consider drafting your obituary to accurately reflect your life’s narrative.
- Funeral Planning and Costs – Burial and cremation, memorial services, and other related costs, and who you would like to be notified.
- Organ donation – Consider making a decision about organ donation.
Advanced care planning is an ongoing conversation that you should have at least once a year and when major life events occur. Planning ahead will give you peace of mind and ensures your loved ones are cared for after you are gone.
FREE PREPARATION OF BUY-SELL AGREEMENT WHEN FUNDEDWITH AN ANNUITY, LIFE OR DISABILITY INSURANCE
WHY YOU NEED A BUY-SELL AGREEMENT
A buy-sell agreement is a legally binding contract that outlines how ownership interests, such as shares, partnership stakes, or membership interest, will be handled if a triggering event occurs. Any business with more than one owner needs a buy-sell agreement, to provide a means for an orderly transition of ownership while the owners are still engaged and active in the business.
BENEFITS OF A BUY-SELL AGREEMENT
- Establishes a fair method to value the stock of the departing owner and for estate tax purposes;
- Ensures and protects stakeholders involved in the agreement by defining how ownership transitions are managed;
- Provides funding with safeguards, such as life or disability insurance policy, installment note, cash, sale or distribution/leveraging of company assets;
- Governance or other provisions can be added to ensure continuity of business operations.
COMMON VALUATION METHODOLOGY
- Fixed price – Shareholders agree on fixed price;
- Formula – An asset-based or earnings-based formulate to determine value;
- Independent appraisal – Shareholders agree on the appraisal process when agreement is executed;
- Market approach – Shareholders agree to use comparables of recently sold, similarly situated companies.
TRIGGERING EVENTS
- Death – Are the beneficiaries entitled to the fair market value of the interest? Do the surviving owners want the beneficiaries to be actively involved in the business?
- Divorce – Is the business interest an asset subject to division of property in case of divorce?
- Disability – If an owner becomes disabled, will the business require additional capital? Should the owners purchase the interest?
- Withdrawal – What restrictions should be placed on the interest of a departing owner? Under what circumstances can an owner be forced out?
- Bankruptcy – Will creditors have the right to seize or otherwise encumber the interest of an insolvent owner?