VA Business, Tax & Estate Planning

The Separation of Church … And Estate

For many people, estate planning isn't just about financial assets and other practical concerns. It's also about honoring their religious beliefs and passing those values on to family members. That can be very tricky ground.

Planning your estate may seem like a simple matter of deciding who gets your stuff when you’re gone. What if you are a person of great faith and religious conviction? How does a person of faith plan for his or her estate when life (and especially life beyond) is so much more than mere “stuff”?

Death & (Income) Taxes

Death and taxes may be equally inevitable, but the taxman demands the last word. Death does not excuse a final accounting with the IRS. In fact, taxes can further complicate the lives of survivors.

Of the two certainties in life – that is, of death and of taxes –the taxman always gets the grim last word.

Business Owners – Exiting Gracefully

The wealth of many boomers is tied up in businesses they own. And that can be a problem when it comes time to retire.

If you’re a small business owner, then you probably speak of your business and your life in the same breath. There’s nothing wrong with that. In fact, you are in good company.

All told, your business is one of the biggest challenges and accomplishments in your life. That said, it’s rare that the business is the only fulfilling thing in your life – there’s family, for one. In addition, do you really want to continue working in and on your business until the day you die, with no retirement or with old-age eventually getting in the way?

The Conversation: Mind Your Own Beeswax!

Have you ever tried to talk to your aging parent about finances and been told to take a hike? “Just mind your own business. I’ll be fine”.

Taking care of an elderly loved one can be difficult, especially when they are nervous about meeting of their own future needs. It’s worse when the issue is money, either for current finances or future planning. Has your elderly loved one ever told you to butt out and not worry?

Generation-Skipping Gyrations - AKA Dynasty Trusts

Generation-skipping trusts, also known as dynasty trusts, are designed primarily to avoid estate taxes each time one generation transfers wealth to the next generation.

For a number of reasons, the government seems to think that family wealth ought to pass from one generation to the next, without “skipping” over anyone. However, that’s not always the way the world works (or the way folks want to distribute their assets)

What if you want to provide for your grandkids instead of your children?

This is one time when extra planning is crucial to escape a series of tax law traps. As a result, this planning may require a generation-skipping or “dynasty” trust.

The idea that wealth ought to trickle down from generation to generation is, if nothing else, a way of guaranteeing that taxes are paid at each level. On the other hand, it’s not necessarily in keeping with your plans or modern reality. For example, who would have anticipated the student debt so many grandchildren face today?

For whatever reason, you might want to skip a generation in your estate distribution. The estate planning vehicle to accomplish this objective is a trust, specifically a “generation-skipping” or “dynasty” trust.

For more information, check out an article in ProducersWeb titled Generation-skipping Trusts.

While there are many limitations, and perhaps also a growing political battle to further limit such trusts, there are very real gains to be secured for you and your family.

These trusts can become complicated very quickly, so competent counsel will be necessary to determine whether a generation-skipping trust is appropriate for your unique circumstances and, if so, then to implement it.

The Law Firm of Quinto & Wilks, P.C. has been serving Northern Virginia for more than 15 years. Our expert estate planning attorney has been practicing for more than 25 years. Located just a few miles off Interstate 95 in scenic Lake Ridge, Virginia, Quinto & Wilks, P.C. specializes in estate planning. Why not call our office today and schedule a consultation regarding a possible Trust and/or other estate documents? For the peace of mind that should be yours and your heirs', Quinto & Wilks, P.C. is here to take the confusion and frustration out of estate planning. Call us today!

Reference: ProducersWeb (April 11, 2012) “Generation-skipping Trusts”

The Archie’s Successors … Arch-Enemies?

Just because two business partners get along well doesn’t mean the next generation will do so too. When succession planning is done in advance, restrictions — or at the very least, mechanisms to dictate how decisions will be made and what procedures are to be used in case of disagreement – can be used to avoid messy, protracted battles.

Are you a Baby Boomer, or the child of one? If yes, then perhaps you recall the Archie Comics. Unfortunately, that halcyon world of yesteryear has given way to litigation and lawyers. Archie’s Comics has been in a state of war since the passing of the founders and the dysfunctional antics of their successors. There is at least one more lesson to learn from Archie and the gang: proper succession planning.

The story of the succession and rapid rise in hostilities can be followed in an article in onwallstreet.com titled Archie Comics Power Struggle Provides Valuable Succession Planning Lessons.

In the end, the Archie Comics tale is too commonly repeated. According to the article, one of the successors actually is accused of slashing the other’s tires; the accuser apparently is under a restraining order keeping them from the company – a restraining order which they have allegedly violated. In short, ugly stuff.

Too often ugly feuds can break out, even in once idyllic companies. The Archie Comic Publications has been around since 1941, after all, and it was only in 2007/2008 that the newest generation came on board.

When thinking about your company, it is vital to consider the future beyond your ownership. Who will be the successors? Will they be compatible partners to carry the business forward?

These and other fundamental issues are better resolved now, rather than later. The Law Firm of Quinto & Wilks, P.C. can answer your business planning and business succession questions. Our business planning attorney has been practicing in Northern Virginia for more than 25 years and makes it his mission to stay abreast of all the new laws and legalities in not only business law but estate planning too! Located just a few miles off Interstate 95 in Woodbridge, Virginia, Quinto & Wilks, P.C. is easily accessible to residents all over Northern Virginia. Why not call our office today and see how our business law attorney can help you and your company?

Reference: onwallstreet (April 18, 2012) “Archie Comics Power Struggle Provides Valuable Succession Planning Lessons”

Will Writing Fundamentals

The bottom line is, if you love and cherish your family, you MUST take the time to write your will. It ensures your assets are given to your family or other beneficiaries based on your wishes.

Writing your Last Will and Testament is the most basic act of estate planning. Nevertheless, preparing one’s Last Will has been deferred or ignored by the majority of the adult American population. In fact, some 70% of Americans have no Last Will.

Against this backdrop, the excuses for not having a Last Will typically include the “I’ve got plenty of time” excuse. As reported in a recent article in Forbes, Tell Your Family You Love Them -- Write Your Will, there are certain fundamentals only you can control when it comes to your estate.

In reality, there isn’t a single moment in your life when you’re ready to plan your estate. You don’t just reach some magical “pause button” where everything stops and there’s nothing new happening in your life, your business, your investments, or with your loved ones. Likewise, there is no time to stop planning, and for the same reasons.

Estate planning is not an event, but rather a lifetime process. Beginning today, you can put a plan in place with enough flexibility to cover many of life’s twists and turns. And, of course, you should always update your plan to reflect major changes – whether in the law, your life, your assets or the lives of your loved ones. 

Finally, you should consult with an estate planning attorney prior to making or finalizing any will or estate document yourself. Because the law is constantly changing, some simple forms that you get in a library or off the internet, while covering most things, may not cover everything, thus possibly leaving detrimental holes and flaws in your estate plan. Whether having a qualified attorney draw up these documents for you or creating them yourselves, it is always best to have an estate planning attorney review your documents. The Law Firm of Quinto & Wilks, P.C. has been helping the people of Northern Virginia establish ironclad effective estate plans for more than 25 years. Our estate planning attorney is an AV rated attorney and specializes in estate planning, so you can rest assured that he is up-to-date on all of the current laws and issues. Additionally, located just a few miles off Interstate 95, our firm is easily accessible to all of Northern Virginia. Why not give our office a call today and schedule your estate planning consultation?

Reference: Forbes (March 30, 2011) “Tell Your Family You Love Them -- Write Your Will”

Planning Today For Dementia In Your Tomorrow

Advancements in medical science and care may enable us to live fuller, longer lives. The flip side is that more of us, like Mike Wallace, are likely to suffer from a diminished mental state–a harsh reality that’s difficult to accept.

It has been an unfortunate past few weeks for celebrity deaths. Recently both Dick Clark and Mike Wallace passed away. It is in the life and death of Mike Wallace, however, that there is a lesson to learn for all those planning for old age and, perhaps more so, for those planning for their estates.

The estate planning lesson of Mike Wallace’s life was the subject of a recent article in Forbes by Deborah Jacobs. Titled “Mike Wallace Death Underlines Need To Prepare Financially For Risk Of Dementia,” the article is a wakeup call for making proper estate plans while you are physically and mentally able.

Apparently, Wallace suffered from dementia late in life. In fact, developing that condition will be an increasingly prevalent fact of life for baby boomers. According to recent projections, one in eight baby boomers will develop Alzheimer’s after they turn 65.

The problem, as pointed out in the Forbes article, is that once dementia or Alzheimer’s strikes, it is too late to make plans. Simply put, you are no longer, “of sound body and mind” as per the classic Last Will and Testament language. Furthermore, even if you are in control “most of the time,” any legal document or change you may make to a legal document will become suspect or outright inadmissible. This is a fact of life and a fact of law.

Just as old age is not the time to be planning your retirement finances, it is not the best time to make your estate plans either. The lesson learned is to engage appropriate financial and legal counsel sooner rather than later.

The Law Firm of Quinto & Wilks, P.C. can answer your questions and help build a strong and effective estate plan. Our estate attorney has been practicing for more than 25 years and specializes in estate planning and probate. Located conveniently off of Interstate 95 in Woodbridge, Virginia, Quinto & Wilks, P.C. is easily accessible to all of Northern Virginia. Why not call our office today and let our AV Rated attorney help you create your estate plan?

Reference: Forbes (April 8, 2012) “Mike Wallace Death Underlines Need To Prepare Financially For Risk Of Dementia”

Estate Planning For Couples Can Be Complicated

How married couples and domestic partners structure their estate plans can make the difference between whether a family stays connected or gets blown apart after the first spouse or partner passes away. Things can be even more complicated and volatile in blended families – when there are step and half siblings and stepparents in the mix.

Family Business Mistakes Matter

Running a family business is the most natural thing in the world--and the most unnatural. Handle it well, and it can make you rich, capitalize on bonds no ordinary colleagues could share, and keep your family employed for generations. Handle it badly, and it can instead keep lawyers employed for generations.

If you have a family business, then a recent article in Inc. magazine is a must read to avoid unaffordable mistakes. In short, these mistakes can kill your family business.