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Since you’ll be discussing topics like death, incapacity, and other frightening life events, hiring an estate planning lawyer may feel intimidating or morbid. But it definitely doesn’t have to be that way.

Instead, it can be the most empowering decision you ever make for yourself and your loved ones. The key to transforming the experience of hiring a lawyer from one that you dread into one that empowers you is to educate yourself first. This is the person who is going to be there for your family when you can’t be, so you want to really understand who the lawyer is as a human, not just an attorney. Of course, you’ll also want to find out the kind of services the lawyer offers and how they run their business.

To gather this information and get a better feel for who the individual is at the human level, we suggest you ask the prospective lawyer five key questions. Last week in part one we listed the first two of these questions, and here, we cover the final three.

The sad truth is most lawyers do a terrible job of staying in regular communication with their clients. Unfortunately, most lawyers don’t have their business systems set up for ongoing, proactive communication, and they don’t have the time to really get to know you or your family.

If you work with a lawyer who doesn’t have systems in place to keep your plan updated, ensure your assets are owned in the right way (throughout your life), and communicate with you regularly, your estate plan will be worth little more than one you could create for yourself online—and it’s likely to fail when your family needs it most.

Think of it this way: Yes, your estate plan is a set of documents. But more importantly, it’s who and what your family will turn to when something happens to you. You want to work with a lawyer who has systems in place to keep your documents up to date and to ensure your assets are owned in the right way throughout your lifetime. Ideally, the lawyer should get to know you and your family over time, so when something happens, your lawyer can be there for the people you love, and there will already be an underlying relationship and trust.

Your lawyer should proactively communicate with you and keep you and your family educated on an ongoing basis. We think sending out a weekly (at least) email is best. I prefer to hear from the professionals with whom I work on a monthly basis by regular mail and on a weekly basis by email, but depending on the relationship, it could be even more frequent than that.

If you are considering hiring a lawyer who doesn’t take the time to proactively communicate with his or her clients, this should be a red flag. That’s a sign that the lawyer may be stuck in an old, outdated mindset that won’t address your ongoing needs in the way you deserve.

Given the complexity of today’s legal world, lawyers must have specialized training in one or more specific practice areas, such as divorce, bankruptcy, wills and trusts, personal injury, business, criminal matters, or employment law. You definitely do NOT want to work with a lawyer who professes to be an expert in whatever random legal issue walks through the door.

That said, you do want your personal lawyer to have broad enough expertise that you can consult with him or her about all sorts of different legal and financial issues that may come up in your life—and trust he or she will be able to offer you sound guidance. Moreover, while your lawyer may not be able to advise you on all legal matters, he or she should at least be able to refer to you to another trusted professional who can help you.

Trust me, you wouldn’t want the lawyer who designed your estate plan to also handle your personal injury claim, settle a dispute with your landlord, and advise you on your divorce. But you do want him or her to be there to hear your story, refer you to a highly qualified lawyer who specializes in that area, and overall, serve as your go-to legal consultant.

In this capacity, you can call your personal lawyer before you sign any legal documents, any time you have a legal or financial issue arise, or whenever anything that might adversely affect your family or business comes up, and know that you’ll get excellent guidance.

With this in mind, look for a lawyer who has an ongoing service program or membership program, in which you can pay a low monthly fee and be able to call with all of your legal and financial questions, without being charged hourly for the consultation. And be sure that when you call, you get to schedule time to talk with your own lawyer, who you know and trust. We love the idea of legal insurance plans, but we don’t love that you don’t get your own personal lawyer with them. You need to know your lawyer, and know that your lawyer has your back.

This is a critically important—and often overlooked—question to ask not only your lawyer, but any service professional before beginning a relationship. Sure, it may be uncomfortable to ask, but a truly excellent, client-centered professional will have a plan in place to ensure their clients are taken care of no matter what happens to the individual lawyer managing your plan.

Look for a lawyer who has their own detailed plan in place that will ensure that someone warm and caring will take over your planning without any interruption of service. If your lawyer prepared a will, trust, and other estate planning documents for you, or if you are in the middle of a divorce or lawsuit, you want to make certain your lawyer has such a contingency plan in place, so you won’t be forced to start over from scratch should your lawyer die, retire, or become otherwise unavailable.

Finally, if your lawyer offers a membership program, you’ll want to make sure he or she has a relationship with another lawyer or a network of lawyers who can continue to service you under that program.

Although hiring the right estate planning lawyer may not seem like a super important decision, it’s actually one of the most critical choices you can make for both yourself and your family. After all, this is the individual you are trusting to serve on your behalf to protect and provide for your loved ones in the event of life’s most traumatic experiences.

Should you choose the wrong person for the job, your family could potentially face all manner of unnecessary conflicts, expenses, and legal entanglements during a time when they are at their most vulnerable. In the end, estate planning is about far more than having a lawyer create a set of documents for you, and then never seeing you again, or only seeing you when something goes wrong.

With us as your Personal Family Lawyer®, we develop a relationship with you and with your family that lasts not only for your lifetime, but for the lifetime of your children and their children, if that’s your wish. Our unique, family-centered legal services are specifically tailored to provide our clients with the kind of love, attention, and trust we’d want for our own loved ones.

To learn more about our one-of-a-kind systems and services, schedule a Family Wealth Planning Session™ today.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. If you’re ready to create a comprehensive estate plan, contact us to schedule your Family Wealth Planning Session. Even if you already have a plan in place, we will review it and help you bring it up to date to avoid heartache for your family. Schedule online today.

If you’ve always dreamed of starting your own business, but find the idea of building an entire operation from scratch too daunting, you might consider investing in a franchise.

Since you’re getting an already proven business model and brand, purchasing a franchise can make the start-up phase quite a bit easier. In addition to getting a well-known brand name, most franchises also come with turnkey operating systems, extensive training programs, and ongoing support from the franchisor.

Though franchises have a lot of advantages, they also come with their own unique drawbacks, and they aren’t a good fit for everyone. It’s vital to do your homework and thoroughly research the franchise before finalizing the deal.

Before buying a franchise, you should answer the following four questions to ensure the business arrangement is worth the investment and is a suitable fit for your particular needs and temperament.

Unlike starting your own business, where all of the capital you invest goes directly to support your operations, a major portion of your initial investment in a franchise goes to the franchisor for licensing rights, training, and equipment. To determine the true cost of the franchise, carefully review the Franchise Disclosure Document (FDD), which franchisors are required to provide you with before signing the franchise agreement.

These agreements often contain hidden costs in addition to the start-up costs and royalty payments, such as fees for training, marketing, and special promotions you’ll be required to offer. Because FDDs can be hundreds of pages long and include confusing terms and legalease, allow us to review it with you to ensure the deal is sound, worth the investment, and that you understand all the fine print.

One of the biggest benefits of investing in a franchise is that you’re buying a proven business concept. But not all franchises are equal, so make sure your franchise comes with sound systems for everything needed to run the operation on a daily basis, from inventory and equipment to marketing and payroll.

What’s more, the franchise should come with ample training and ongoing support to ensure you’ll be able to master these systems with minimal headaches. With the proper systems, training, and support, your chances for business success can be greatly increased.

One of the major drawbacks of franchises are the level of control and restrictions imposed by the franchisor. Most require franchisees to follow strict guidelines and standards for things like pricing, product offerings, operational hours, and store design.

Oftentimes, you won’t be allowed to veer from these rules and do things your own way, such as trying new marketing strategies or varying product offerings. Even though you may be the boss of your franchise, the franchisor typically maintains a significant level of control. Given this, you’ll need to determine if you’re comfortable abiding by such a restrictive arrangement.

Before choosing a franchise, consider the local market and customer demographic. Determine what the local clientele and market will support both now and in the future. Also research any potential competitors already doing business in the area.

You may find that there are already fellow franchisees operating in the vicinity. Some franchisors offer exclusive territory, while others don’t. And don’t just consider your geographic competition. Also determine whether the franchisor is allowed to sell products on its own to local stores or via other distribution channels, setting itself up as your potential competitor.

Some of the most reputable franchisors will help buyers do market research and select the best location for their store, while others will even assist with lease negotiations. Although owning a franchise will provide you with some built-in product recognition and customer loyalty during the start-up phase, it’s vital that you research the market to ensure demand for your product or service will survive the long haul.

Investing in a well-known franchise can seem like a sure-fire way to own a wildly successful company. But no business opportunity is without its risks and downsides. Don’t let your lofty expectations and excitement keep you from doing the proper research and planning.

We can help you review the franchise agreement to make sure you’re getting the best deal possible and are aware of all hidden costs and restrictions. We can also help you review the franchisor’s legal terms related to contract termination, contract renewal, and conflict resolution to ensure you’re not setting yourself up for a raw deal.

We offer a complete spectrum of legal services for business owners and can help you make the wisest choices on how to deal with your business throughout life and in the event of your death. We also offer you a LIFT Your Life And Business Planning Session, which includes a review of all the legal, insurance, financial, and tax systems you need for your business. Schedule online today.

Due to its highly touted “business friendly” nature, the new Republican tax bill—which recently passed both the House and Senate—has been highly anticipated by many business owners. Known as the “Tax Cuts and Jobs Act,” both the House and Senate versions reduce tax rates, adjust tax structures, and revamp tax benefits for businesses to stimulate economic growth.

While it’s uncertain what the final bill will include, or if it will even pass, both versions include common elements, which prudent business owners should be aware of when planning 2017’s year-end taxes. For example, you can adopt tax-saving strategies like deferring income to 2018 or accelerating deductions into 2017 if your business’s marginal tax rate is likely to be lower in 2018, or do the exact opposite if your rate will be increased or if certain tax deductions will not be available to you in 2018. Just keep in mind—nothing is set in stone, yet.

One thing is clear though, proactive planning with a trusted advisor can help you navigate the changes, once they are set. Those who are educated and plan ahead can make the most of whatever the tax law does become through re-structuring or structuring new entities. So even if you are reading this and it’s “too late” for 2017, contact us now so we can begin planning for 2018 early in the year.

Both the House and Senate versions of the tax bill reduce the top corporate tax rate from 35% to 20%. According to the bills, the new rate is actually “below the 22.5% average of the industrial world.” The current top rate is 35%, although the effective tax rate after deductions and expenses is 23%.

The corporate alternative minimum tax (AMT) is aimed at ensuring business owners pay at least some federal income tax. Currently, they pay the AMT only if their income tax liability is less than the current 20% AMT rate, in which case the corporation pays the difference. The House eliminates the AMT entirely, while the Senate keeps it, but expands exemption amounts at which the provision takes effect.

The bills retain tax credits for research and low-income housing, but they limit the net interest expense deduction for C corporations. The proposals also repeal the Section 199 deduction for domestic production activities, along with most industry-specific deductions, business credits, and special exclusions.

The bills offer 100% bonus depreciation—for at least five years—for new investments in depreciable assets (except buildings constructed after September 27, 2017). Existing tax law allows 50% bonus depreciation for such assets, but this drops to 40% in 2018, 30% in 2019, after which it will be eliminated. So if you are considering investing in an otherwise depreciable asset, consider waiting until next year, when you may get a 100% deduction right away.

When it comes to estate planning, most people automatically think about taking legal steps to ensure the right people inherit their stuff when they die. And these people aren’t wrong.

Indeed, putting strategies in place to protect and pass on your wealth and other assets is a fundamental part of the planning equation. However, providing for the proper distribution of your assets upon your death is just one part of the process.

And it’s not even the most critical part.

Planning that’s focused solely on who gets what when you die is ignoring the fact that death isn’t the only thing you must prepare for. You must also consider that at some point before your eventual death, you could be incapacitated by accident or illness.

Like death, each of us is at constant risk of experiencing a devastating accident or disease that renders us incapable of caring for ourselves or our loved ones. But unlike death, which is by definition a final outcome, incapacity comes with an uncertain outcome and timeframe.

Incapacity can be a temporary event from which you eventually recover, or it can be the start of a long and costly event that ultimately ends in your death. Indeed, incapacity can drag out over many years, leaving you and your family in an agonizing limbo. This uncertainty is what makes incapacity planning so incredibly important.

In fact, incapacity can be a far greater burden for your loved ones than your death. This is true not only in terms of its potentially ruinous financial costs, but also for the emotional trauma, contentious court battles, and internal conflict your family may endure if you fail to address it in your plan.

The goal of effective estate planning is to keep your family out of court and out of conflict no matter what happens to you. So if you only plan for your death, you’re leaving your family—and yourself—extremely vulnerable to potentially tragic consequences.

Planning for incapacity requires a different mindset and different tools than planning for death. If you’re incapacitated by illness or injury, you’ll still be alive when these planning strategies take effect. What’s more, the legal authority you grant others to manage your incapacity is only viable while you remain alive and unable to make decisions about your own welfare.

If you regain the cognitive ability to make your own decisions, for instance, the legal power you granted others is revoked. The same goes if you should eventually succumb to your condition—your death renders these powers null and void.

To this end, the first thing you should ask yourself is, “If I’m ever incapacitated and unable to care for myself, who would I want making decisions on my behalf?” Specifically, you’ll be selecting the person, or persons, you want making your healthcare, financial, and legal decisions for you until you either recover or pass away.

The most important thing to remember is that you must choose someone. If you don’t legally name someone to make these decisions during your incapacity, the court will choose someone for you. And this is where things can get extremely difficult for your loved ones.

Although laws differ by state, in the absence of proper estate planning, the court will typically appoint a guardian or conservator to make these decisions on your behalf. This person could be a family member you’d never want managing your affairs, or a professional guardian who charges exorbitant fees. Either way, the choice is out of your hands.

Furthermore, like most court proceedings, the process of naming a guardian is often quite time consuming, costly, and emotionally draining for your family. If you’re lying unconscious in a hospital bed, the last thing you’d want is to waste time or impose additional hardship on your loved ones. And this is assuming your family members agree about what’s in your best interest.

For example, if your family members disagree about the course of your medical treatment, this could lead to ugly court battles between your loved ones. Such conflicts can tear your family apart and drain your estate’s finances. And in the end, the individual the court eventually appoints may choose treatment options, such as invasive surgeries, that are the exact opposite of what you’d actually want.

This potential turmoil and expense can be easily avoided through proper estate planning. An effective plan would give the individuals you’ve chosen immediate authority to make your medical, financial, and legal decisions, without the need for court intervention. What’s more, the plan can provide clear guidance about your wishes, so there’s no mistake or conflict about how these vital decisions should be made.

Determining which planning tools you should use to grant and guide this decision-making authority depends entirely on your personal circumstances. There are several options available, but choosing what’s best is something you should ultimately decide after consulting with an experienced lawyer like us.

That said, we can tell you one planning tool that’s totally worthless when it comes to your incapacity: a will. A will only goes into effect upon your death, and then it merely governs how your assets should be divided, so having a will does nothing to keep your family out of court and out of conflict in the event of your incapacity.

There are multiple planning vehicles to choose from when creating an incapacity plan. And this shouldn’t be just a single document; instead, it should include a comprehensive variety of multiple planning tools, each serving a different purpose.

Though the planning strategies you ultimately put in place will be based on your particular circumstances, it’s likely that your incapacity plan will include some, or all, of the following:

Healthcare power of attorney: An advanced directive that grants an individual of your choice the immediate legal authority to make decisions about your medical treatment in the event of your incapacity.
Living will: An advanced directive that provides specific guidance about how your medical decisions should be made during your incapacity.
Durable financial power of attorney: A planning document that grants an individual of your choice the immediate legal authority to make decisions related to the management of your finances, real estate, and business interests.
Revocable living trust: A planning document that immediately transfers control of all assets held by the trust to a person of your choosing to be used for your benefit in the event of your incapacity. The trust can include legally binding instructions for how your care should be managed and even spell out specific conditions that must be met for you to be deemed incapacitated.

You may be powerless to prevent your potential incapacity, but proper estate planning can at least give you control over how your life and assets will be managed if it does occur. Moreover, such planning can prevent your family from enduring needless trauma, conflict, and expense during this already trying time.

If you’ve yet to plan for incapacity, we can counsel you on the proper planning vehicles to put in place, and help you select the individuals best suited to make such critical decisions on your behalf. If you already have planning strategies in place, we can review your plan to make sure it’s been properly set up, maintained, and updated. Contact us today to get started.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. If you’re ready to create a comprehensive estate plan, contact us to schedule your Family Wealth Planning Session. Even if you already have a plan in place, we will review it and help you bring it up to date to avoid heartache for your family. Schedule online today.