Can you pass the "Asset Protection Planning Stress Test?"

Let's Talk About...... Passing the Asset Protection Planning Stress Test
By: Alan Orlowksy

Can you pass the Asset Protection Planning Stress Test? 

As an Attorney with over 30 years experience practicing law, on a regular basis I am still challenged by the same common legal mistakes and omissions well educated, fore-warned and intelligent individuals just like you make because they fail to plan for business failures, law suits, illness and, inevitably, death! Of course, there are always new wrinkles to the challenges I face, but the theme never really changes ~ people just fail to plan and often with devastating financial and personal consequences. I advise my clients that it is better to pay a little now than to wait and pay and, perhaps, a successful adversarial party, a whole heck of a lot more when things head south and explode in their faces!

Fortunately for my clients, whether that client is a business or an individual, I am on a mission to protect them (as well as the general public) from the consequences of failing to engage an attorney in order to plan for the future. Consequently, I have created a short, one minute "Asset Protection Planning Stress Test" to help save and protect them from the vagaries of an uncertain world. Accordingly, following below are 10 questions that if read and answered properly will help you to determine if you have the legal firewalls, belts and suspenders needed to protect your business, your personal wealth and family from the unintended consequences of poor or no planning. 


If you can to score 100% on the questions below that pertain to your situation to YOU PASS THE TEST! This may seem unfair, but frankly, it is the standard I am judged upon and the only standard that insures that my clients will be protected if and when things head south. After all, you hire a consultant to give you the correct answer 100% of the time ~ 90% just doesn´t cut it in the real world! To take the test, please continue reading the questions below and remember to answer honestly. This is your future.

Asset Protection Planning Stress Test

1. If you own a corporation, does your corporate record book include by-laws, shareholder and board of director minutes, stock certificates, ownership ledgers, recorded articles of incorporation and annual minutes?

2. If you have an LLC do you have an LLC minute book which includes an operating agreement, up to date member resolutions, articles of formation and membership certificates?

3. If you have employees does your business have an employee handbook?

4. If you have a business partner or partners, do you have a buy/sell agreement funded by life insurance?

5. Do you have a business succession plan or exit strategy if something should happen to you or if you want to retire?

6. Have you had a recent audit of your business and/or personal insurance needs and requirements completed by an outside expert to insure that all your insurance needs are taken care of and that you are paying the lowest prices offered in the marketplace?

7. If you are married, does your spouse own at least one-half of your personal assets?

8. Do you have a personal umbrella policy?

9. If you have a business failure do you have a plan to save your residence and other personal assets?

10. Do you have an up to date estate plan with a current will, revocable trust, health care power of attorney, durable power of attorney and life insurance trust?

What was your score?

If you did not pass the test, contact Orlowsky & Wilson so we can assist you in setting up your future the way it should be.
www.orlowskywilson.com 


If you have questions about this post or about a particular legal situation, please contact Alan Orlowsky by calling 847-325-5559.

Avoid Probate with a Good Estate Plan

Let's Talk about Avoiding Probate with a Good Estate Plan
By Alan Orlowsky

It is important to go about proper estate planning in order to avoid potential probate issues. Probate is a legal document. Receipt of probate is the first step in the legal process of administering the estate of a deceased person, resolving all claims and distributing the deceased person's property under a will. Probate is required to make sure that descendant estates are in accordance with inheritance laws. The simplest way to avoid probate it to consult with an experienced estate planning attorney.

Avoiding probate can save money, time and can help avoid family disputes caused by a will. The essential things that everyone should do regarding establishing a proper estate plan are:

• Creation of a Last Will and Testament
• Creation of a Living Will
• Appointing a Power of Attorney to a reliable individual
• Consult a experienced Estate Planning Attorney

Power of Attorney allows another person to act on your behalf if you are unable to make decisions regarding your health care. The person you designate with Power of Attorney can make decisions in your best interests for such things as life support, organ donation, and resuscitation orders. This person can also pay your bills, transfer titles property and other legal issues regarding your estate. Choosing the right person is key factor in avoiding probate.

Creating a Last Will & Testament and a living will allows you to designate a estate administrator. The duties of this individual depend on the state of matters including estate value, inheritance, property and family disputes. If a will is contested and estate settlement can be drastically prolonged and may substantial legal fees and can eventually bankrupt the estate, leaving nothing for the heirs to inherit. Having these in place and current is an easy way to avoid probate.

Finally, choosing an experienced attorney can assist you in the entire estate planning process. The right attorney makes all the difference and setting up your estate before its too late is the best way to avoid any additional hassles and costs. Should you have any questions regarding setting up an estate plan or re-examining your current estate feel free to contact Orlowsky & Wilson.

If you have questions about this post or about a particular legal situation, please contact Alan Orlowsky by calling 847-325-5559.

Avoiding Family Disputes Over Personal Property

Let's talk about.....Avoiding Family Disputes over Personal Property

By Alan Orlowsky

It is quite often the personal property that causes the most heartache and disruption in families after a death. Money doesn't usually have any sentimental attachment, but personal property can have a perceived value far beyond its actual monetary worth. For example, there may be souvenirs from family vacations, various collectibles, or other items of sentimental value that are impossible to divide or duplicate, and can be left out of a will entirely. It’s helpful to discuss these things ahead of time, so you have a clear understanding of who wants what, and can anticipate and avoid problems after you’re gone.

Generally speaking, personal property is distributed under the laws of the state in which the decedent was a resident on their date of death. Real property (real estate), on the other hand, is subject to the laws of the state in which it is located. If you have significant personal property located outside of your official state of residence, distribution can be confusing. For example, if you own a Steinway piano that is located in your vacation home, the vacation home and the Steinway piano will be treated differently.

Personal property such as jewelry, antiques, artwork, family heirlooms, and household effects can be passed on to your beneficiaries through a specific bequest: “I leave my Ming Vase to my sister Betty.” But for most people, it would be overwhelming to try to inventory and choose a beneficiary for every last item you own. Instead, it is common to use a separate “Personal Property Memorandum” that is attached to, and incorporated by reference into your trust.

The memo is generally a handwritten or typed list of your bequests to family or charities, which is signed and dated by you. They could cover each personal item that you own, but typically include only those items of financial value or of strong sentimental value – the types of things that could lead to disagreements among the heirs.

The benefit of a memo is that it can be easily changed if you sell something, give it away during life, or change your mind about who should receive it after you’re gone. You simply throw the old memo away and replace it with a new one. Each personal property memorandum should be dated, and the trust should contain instructions that if more than one memo is discovered after your death, the one with the most recent date is binding.

Of course, you should also provide for personal property that is not specifically listed on the personal property memorandum. Over the years, parents have come up with interesting ways to distribute personal property items that aren't the subject of specific bequests. They might instruct the executor or trustee to divide Monopoly money among the children, and let them “bid” on the remaining items. Or they might say that each child can choose one object, starting with the oldest and moving to the youngest (or vice versa), until all items are accounted for. Anything that is not selected can be given to Goodwill or the Salvation Army, or be included in an estate sale.

Most trusts will state that the trustee can dispose of personal property equitably to the beneficiaries, and if they can’t agree on the disposition, the trustee can sell the items and split the proceeds of the sale according to the trust distribution plan.

If you have questions about this post or about a particular legal situation, please contact Alan Orlowsky by calling 847-325-5559.