In good economic times it sometimes seems hard to make a mistake. We no longer live in those times! Good planning and proper implementation of plans is always important, but a challenging economic environment can both disclose unique opportunities and expose critical flaws.
Opportunities abound for those with foresight and patience, as do traps for the unwary. An understanding of applicable law is critical to making the right choices.
A review of the legal aspects of business organization and operational formalities, as well as personal estate planning can identify and address issues before they become critical.
Questions to ask yourself:
- As a business owner have my corporate, partnership or limited liability company documents been properly executed, and are all required government filings current?
- Do I have a buy-sell agreement with co-owners?
- Is implementation of my buy-sell agreement workable and practical in this economic environment?
- Do I understand my personal liability exposure from personal notes and/or guaranties I may have signed?
- Do I understand the legal and tax implications of my loan documents if I’m unable to meet my obligations?
- If I become disabled/incapacitated is there a workable plan in place to cover my business and personal responsibilities?
- Do I have necessary authorizations in place to allow others to act for me without court proceedings?
- Do I understand the legal and tax implications if I should die and have I made adequate plans to deal with those implications, including a well conceived will/trust to direct the administration of my estate?
- Am I comfortable with my plan for administering/distributing my estate and the party/parties named to manage administration and distribution?
- Is my estate plan compatible with my spouse’s and do both recognize any special needs of our individual children and/or others we are responsible for?
If we can assist you in reviewing the dealing with any of these matters, please contact us.
This brief overview of some important considerations associated with the U.S. liability and taxes is by no means comprehensive. Always seek the advice of a competent professional when making important tax planning decisions.
