You should definitely prioritize asset protection when you are starting a business. It is important to separate your personal property from the business assets, and vice versa. There are two legal structures that are typically utilized for small business owners that want to protect assets, and we will look at them in this post. Limited Liability Companies A limited liability company can provide an asset protection solution in many instances. When you establish an LLC, there is legal separation … [Read more...]
Inheritance Planning for Business Partners
Inheritance planning is always complicated as you make decisions about how to take care of the people in your life after you are gone. When you own a business, however, the complexities of planning for life after your death become even greater. Not only do you need to ensure that you are leaving a legacy for your family but you also need to consider what will happen to your company when you are no longer around to run it. Because inheritance planning for business raises many different legal … [Read more...]
What is a Vermont Reverse Mortgage and Should I Consider It After Retirement
What is a Vermont Reverse Mortgage and Should I Consider It After Retirement from Stephen Unsworth A reverse mortgage is available to homeowners over the age of 62 They must have paid their home off or have substantial equity built up in order to qualify. Learn more about Vermont Reverse Mortgage in this presentation. … [Read more...]
Your Family Owned Business
Most families say they wouldn’t trade the benefits of their family owned business for anything. While they agree it might be more stressful, the thought of earning a living and providing for the future needs of their family is found in just one place.There are a few obstacles that come with the estate planning efforts. It’s easy to lay the formalities aside because your employees are family members in many cases, but once you explore what that really means in the long run, you might wish to … [Read more...]
Portability and American Taxpayer Relief Tax Act of 2012
Portability and American Taxpayer Relief Tax Act of 2012 from Stephen Unsworth It’s still an option, though many choose this now for other reasons, most often when there exists a high value estate. Learn more about Portability and American Taxpayer Relief Tax Act of 2012 in this presentation. … [Read more...]
The Psychology of Family Limited Partnerships in Vermont
Unfortunately, family limited partnerships in Vermont, or FLPs, have gotten a bad rap in recent years. Some insist they’re golden opportunities for the IRS to audit while other say they’ve become abusive methods of transferring wealth with no tax repercussions. But even if that’s true, and we’re not saying it is, there are many benefits to these financial planning options. Perhaps the real downside has to do with the family dynamic itself. Keeping it in the Family First things first – before … [Read more...]
Is a Family Limited Partnership Right for You?
Family Limited Partnerships are financial tools used by those with considerable wealth. They're controlled by the family with the goal of better protecting their wealth. They're often preferred over a traditional LLP distinction for a few reasons as they appear to be better choices for avoiding estate taxes.It's not been that long ago that family limited partnerships, or FLPs, were used rarely and were misunderstood by many. Now, though, they're a powerful estate planning tool that can … [Read more...]
Farm Ownership Transfers Set to Increase Soon
Ensuring that farms will be passed along to the next generation or to another farmer is a complex process. There are many aspects, including interpersonal relationships, financial affairs, and legal issues. It is essential to plan for this process. Planning should take into account farm management, as well as income and asset transfers. The financial and legal considerations include changes in the structure of the business, plus personal retirement needs and estate planning.General … [Read more...]
Congress Extends Farm Bill Provisions
Estate planners can be fairly satisfied with what Congress enacted in the short-term to avert the fiscal cliff early in 2013. While they raised the estate and gift tax rate, they mostly left estate planning laws alone.Congress Keeps Milk Prices LowerCongress also helped farmers and consumers by averting a flood of milk price increases. By including a provision dealing with this agricultural issue, Congress extended the 2008 Farm Bill until September of 2013. For farmers in Vermont, this … [Read more...]
Business Planning Provides Motivation and Reference Points
Planning takes time. But planning also takes you places in a more organized fashion. If you own a bigger business, you probably have a number of people who can devote themselves to planning. As a small business owner, planning is every bit as important.Good planning starts with how you organize your business. Think carefully about the business structure that works best for you. Experienced legal help can make sure you’re on the right track. Are you content to simply operate as a sole … [Read more...]
