How to Coordinate Business Succession & Estate Planning
October 30, 2024 | Carole Clark Isakson
At some point, many business owners execute a will or trust to provide for the disposition of their personal assets. Those dispositions will either specifically or generally deal with their business ownership interests as well. However, business succession planning is also affected by an entity’s governing documents. This blog addresses the possible conflicts between the entity documents and the individual owner’s estate planning documents. Make sure your business attorney and estate planning attorney are each aware of your plans so you can avoid such conflicts. Governing Documents Affect Business Succession Planning When a business owner makes an estate plan, they must decide where all their assets are to go, including ownership in the business. The owner—let’s call her Sam—may wish to leave half of XYZ Properties to her three children for their benefit. So, Sam’s will or trust will state that her ownership interests in the company (or perhaps simply all her assets) are to be divided equally among her three children. Whether or not this will actually happen depends on the governing documents of XYZ Properties. There are several forms of business entities. But no matter the type of business, the owner(s) intentionally created it, and in cases where there is more than one owner, the owner intentionally chose the other person(s) with whom…
Read MoreBGS Proudly Supports the Minnesota Trucking Association
September 20, 2024 | Carole Clark Isakson
As they have for many years, BGS attorneys James Wills and Carole Clark Isakson attended and participated in the annual Minnesota Trucking Association conference in northern Minnesota last month. Corporate paralegal Rachel Schwankl also returned for another year of conference events, and associate Jacob LeVahn attended for the first time this year to round out the team. BGS is a member of the MTA and sponsors various events throughout the year for the organization, including the keynote speaker at the annual conference. This year’s conference featured multiple networking and educational events, including a keynote speaker (introduced by Jake) and Carole’s seminar on various aspects of broker and carrier liability. That topic is key for trucking companies that frequently have an affiliate with a broker’s license or broker freight internally. Understanding the risks inherent in these operations and how to best protect against liability is critical for brokers and carriers. The event was held at Cragun’s Resort in Brainerd, and attendees enjoyed both the conference and its location. Daily events included meetings, seminars, and social gatherings. More information on Barna, Guzy & Steffen’s transportation department can be found here: https://www.bgs.com/business-law/transportation-law.
Read MoreBe Wary of Letters from Lawyers Claiming Your Company Name Is at Risk
September 16, 2024 | Carole Clark Isakson
Over the last several months, we have seen an uptick in the number of false claims being made concerning company names. These claims come in the form of a letter from a lawyer warning the recipient that its business name is about to be “taken” by a third party. There is an offer of help, and frequently a claim that if the recipient doesn’t act, this unknown third party will file a trademark application on the company name and deprive the recipient of the right to use it. THESE CLAIMS ARE GENERALLY FALSE. There is a difference between an entity name (i.e. for an entity that is created at the Secretary of State level) and a trademark, although they can certainly also be the same. A trademark designates the source of goods or services. It exists, meaning you own rights to it, when you start using it. One way to enhance the protection of a trademark is to file an application to register it with the United States Patent and Trademark Office—though you still own it and have rights to it even if you do not register it. This is a common misconception, and one that lawyers prey upon. Simply put, your company name is yours in the state where you created it. And if your…
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