Category: Estate Planning
Things to Update After Divorce
March 25, 2016 | William F. HuefnerThe divorce has been finalized. You’ve paid your divorce attorney. Now what? Aside from moving on with your life, there are several things that you’ll need to update after the divorce. [maxbutton id=”1″ ] While each case is unique, there are some common steps that nearly every couple will take after they’re officially divorced. These include: Dividing up all the property as per the divorce decree. Change your motor vehicle titles to reflect appropriate ownership as per your divorce decree. Change your name with Social Security and on your passport. Change the name on your driver’s license. The requirements for this will vary from state to state, but in most cases, you will need to change your Social Security card before you can change your driver’s license. Contact your auto insurer to notify them of changes in vehicle ownership, drivers on the policy and address changes. Ensure that your name has been removed from loans or debts that you are no longer responsible for. If you change your name after the divorce, make sure that you notify all of your creditors of this change. Remove your name from the joint bank account and the mortgage, if applicable. Open a new credit card in your own name, and use it to make purchases. Don’t…
Read MoreBusiness Law Information: New Ruling Allowing an LLC to adopt an ESOP
January 27, 2016 | Barna, Guzy & Steffen, Ltd.The IRS released a recent Private Letter Ruling (PLR 201538021) that surprisingly allows a Limited Liability Company (“LLC”) to adopt an ESOP. This is a new development that should be considered with caution since a PLR only applies to the taxpayer that asked for the ruling and there are some pre-requirements that may continue to create a tax problem if implemented. Here’s the story: Background The rules under the Internal Revenue Code have so far limited the use of ESOPs to C- or S-Corporations. One of the requirements for an ESOP is that it invests predominantly in qualifying employer securities. LLCs were not permitted to have ESOPs because the membership units were not considered qualifying employer securities. As a result, an LLC had to be converted to a corporation in order to utilize an ESOP. Although the process may not be all that complicated, it sometimes created adverse tax consequences for a converting owner. New developments In a the recent Private Letter Ruling mentioned above, the IRS ruled that the membership units of an LLC will be considered as qualified employer securities under the Internal Revenue Code. This means that an LLC could establish an ESOP and have it hold LLC units. The ruling is conditioned on the LLC and its units having…
Read MoreWhat is a Revocable Living Trust?
October 21, 2013 | William F. HuefnerA revocable living trust is one way to approach estate planning. People use revocable living trusts to bypass the probate process. Think of a trust as a sort of legally created box. Once you create the box you can start filling it with your assets. This is known as “funding the trust.” The assets could be anything: bank accounts, real estate, cars, boats or anything else that you own. To fund it property is retitled into the appropriate trust. As long as you’re still alive you’ll maintain total control over these assets. For example, if you place your house in the trust you would continue to live in the home, repair it or update it as you saw fit, and pay any and all bills associated with it. When you die, control of these assets will be in the hands of the successor trustee who can then transfer your assts to the beneficiaries. Revocable living trusts will not end up in probate at all. They’re also harder to dispute than wills are, which makes them very attractive to people who are in difficult or complicated family situations. However, revocable living trusts can’t handle every aspect of your estate planning process. You will still need a will. A will is the only document that…
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