In April 2018, billionaire Matthew Mellon flew by private jet to Cancun Mexico to check himself into drug rehab to deal with his addiction to opioid pain pills. But the 54-year-old heir to the Mellon Bank dynasty never made it to the rehab facility and was found dead in his hotel room after suffering an apparent heart attack days before he was due to check into the clinic.

In addition to leaving behind three children, Matthew also left behind an estimated $500 million in XRP, a cryptocurrency. Problem is, at the time of his death, Mellon apparently had never bothered to share the location of the digital keys needed to access his digital fortune, and it now looks like his massive fortune is lost for good. 

This tragic oversight demonstrates one of the most basic, yet often-overlooked, tenets of estate planning—in the event of your incapacity or death, if your heirs don’t know how to find or access your assets, those assets are as good as gone. In the case of cryptocurrency, it’s as if those assets never existed at all.

An American Dynasty
Matthew’s great-great-great-grandfather, Thomas Mellon, founded Mellon Bank in Pittsburgh in 1869, and he was the patriarch of one of America’s richest dynasties. When he was 19, Matthew’s own father, Karl Mellon, tragically committed suicide in 1983, a few days before Matthew graduated high school.

After graduating from the University of Pennsylvania’s Wharton School at age 21, Matthew inherited a series of trusts worth some $25 million. Matthew was reportedly introduced to cryptocurrency by the Winklevoss twins, Cameron and Tyler, and in 2012, he started out by purchasing Bitcoin and investing in several companies related to the digital currency. 

Matthew eventually sold off his Bitcoin after he became more interested in Ripple’s XRP, and he reportedly started out with an initial investment of about $2 million. After the crypto market exploded, Matthew’s initial investment in XRP grew exponentially, and in early 2018 it was worth more than $1 billion. 

Cold Wallets And False Names

Ironically, Matthew’s digital currency was lost in part because he used a security practice aimed at safeguarding the funds. Believing his massive windfall would make him the target of hackers and other criminals, Matthew reportedly kept his XRP locked in cold wallets in dozens of secret accounts under false names only he could identify.

A “cold wallet” is one that isn’t connected to the Internet. The use of a cold wallet is a common practice, since “hot wallets,” or those connected to the internet, are a frequent target of hackers. For an added level of security, Matthew hid the digital keys needed to access those cold wallets in bank vaults all over the country. But as with the cold wallets, Matthew never shared the location of those bank vaults with anyone either, and now, some three years later, his family has yet to locate any of his crypto holdings or passcodes.

Matthew’s story is sadly not uncommon. In fact, one estimate found that roughly 20% of all Bitcoin is considered lost, which means some $140 billion in capital has simply vanished into cyberspace. The vast majority of this lost crypto is the result of cases like Matthew’s where investors die without leaving their heirs any way to access it.

And cryptocurrency isn’t the only asset that ends up going missing. From bank accounts and life insurance policies no one knows about to safe deposit boxes and everything in between, your family must know how to find and access every asset you own, otherwise, it could be lost forever.

In fact, there’s a total of more than $58 billion of unclaimed assets from across the country held by the State Department of Unclaimed Property. Much of that massive sum got there because someone died and their family didn’t know they owned the asset.

A Comprehensive Inventory
Fortunately, losses like these are easily avoidable with proper planning. Whether your estate is worth millions or far less, it’s absolutely vital that your plan includes a comprehensive inventory of your assets. And as Matthew’s case shows, this inventory must also include detailed instructions for how your heirs can find and access all of those assets, particularly highly encrypted assets like cryptocurrency.

These components are a standard part of every estate plan your Family Business Lawyer™ creates. Your Family Business Lawyer™ will build a detailed inventory of your wealth and property—including your business—that includes the exact location of every asset. And whether it’s cryptocurrency, social media accounts, or an online payment platform like PayPal, we’ll also include detailed instructions for locating and accessing all of your company’s digital assets and their passcodes. Contact us today to get started.

This article is a service of Liz Smith, Family Business Lawyer™. We offer a complete spectrum of legal services for businesses 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 a LIFT Start-Up Session™ or a LIFT Audit for an ongoing business, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule your appointment at 907-312-5436, or find a time for us to call you. 

You are likely well aware of the tax benefits that come from donating to charity during your lifetime—donations to charity are tax-deductible. But you may be surprised to learn about the numerous benefits that are available when you incorporate charitable giving into your estate plan.

As with donating to charity during your lifetime, dedicating a portion of your estate to a charitable cause can reduce the taxable value of your estate. You can also receive significant tax savings by naming your favorite charity as the beneficiary of your IRA, 401(k), or other retirement accounts.

And if you have highly appreciated assets like stock and real estate that you want to sell, you can even set up a special type of charitable trust that can not only help you avoid both income and estate taxes but also create a lifetime income stream for yourself and your family, all while supporting your most beloved charitable cause.

While as a Personal Family Lawyer®, we can help you find the most beneficial option for donating to charity via estate planning, here are three of the most popular ways to structure charitable giving into your plan. 

1. Leave Money To Charity In Your Will Or Revocable Living Trust

One of the simplest ways to donate to charity in your estate plan is to name a charity as the beneficiary in either your will or revocable living trust. Just make certain when you leave money via your will or living trust that you use the correct legal name of the charity, as many charities have very similar names, and if you aren’t specific, the charity may have difficulty accessing the funds.

In either your will or living trust, you can also state the purpose for which you’d like the charity to use the funds, or you can make the donation for the charity’s “general purpose,” meaning the charity can use the funds as it sees fit. If you choose to leave money for a specific purpose, make sure that the charity can actually fulfill that purpose or the charity might have to refuse the gift. To this end, if your request is really specific, you may want to contact the charity before making the request to see if the organization will be able to fulfill your objective.

Keep in mind that if you leave money to charity in your will, your will must first go through the court process of probate, which can be time-consuming, before the organization can access the funds following your passing. Conversely, donations to charity made via a trust would pass to the charity immediately upon your death.

Leaving money to charity in your will or living trust can reduce the taxable value of your estate, thus reducing estate taxes for your heirs. That said, the current federal estate tax exemption is $11.7 million per person, so unless you are super wealthy, you won’t see any tax benefit—at least at the federal level. However, 17 states currently have state estate taxes that kick in at lower exemption amounts, so if you live in one of those states and leave money to charity via your estate plan, your loved ones may be able to benefit from reduced estate taxes at the state level. 

2. Name A Charity as the Beneficiary of Your Retirement Account

As with leaving money to charity via your will or living trust, another easy way to incorporate charitable giving into your estate plan is to name a charity as the beneficiary of all or a percentage of your tax-deferred retirement accounts (IRA, 401(k), 403(b), etc.). In addition to supporting a good cause that’s near and dear to your heart, donating your retirement account assets to charity comes with some significant tax-saving benefits.

Individuals named as beneficiaries of your retirement account will have to pay income taxes on any distributions they receive from your retirement account. But since charities are tax-exempt, charitable organizations named as beneficiaries will receive the full amount of your retirement account assets. Additionally, though you need to include the value of the retirement account assets as part of the gross value of your estate, you will receive a tax deduction for the charitable contribution, which can offset estate taxes.

Finally, under recent changes to the SECURE Act, most beneficiaries of IRAs now must withdraw all funds from the retirement account within 10 years of the account holder’s death, which eliminates the ability of most individual beneficiaries to stretch out retirement account distributions over time and compresses income tax payments into a much shorter period. Those who fail to withdraw funds within the 10-year window face a 50% tax penalty on the assets remaining in the account.

Yet because charities don’t pay income taxes, it may be more beneficial from a tax-saving perspective to leave your retirement assets to charity, while passing on your non-retirement assets to your loved ones. However, the SECURE ACT does offer exemptions to the mandatory 10-year withdrawal rule for certain beneficiaries, including a spouse, minor children, and disabled or chronically ill individuals. Given this, you should consult with us, as your Personal Family Lawyer, to determine the most beneficial option for passing on your retirement account assets.

3. Set Up a Charitable Remainder Trust

One final way to structure charitable giving into your estate plan is by creating a special trust known as a charitable remainder trust (CRT). If you have highly appreciated assets like stock and real estate you wish to sell, you can use a CRT to avoid income and estate taxes—all while creating a lifetime income stream for yourself or your family and supporting your favorite charity.

A CRT is a “split-interest” trust, meaning it provides financial benefits to both the charity and a non-charitable beneficiary. With CRTs, the non-charitable beneficiary—you, your child, spouse, or another heir—receives annual income from the trust, and whatever assets “remain” at the end of your lifetime (or a fixed period up to 20 years), pass to the named charity or charities. 

When you set up a CRT, you name a trustee, an income beneficiary, and a charitable beneficiary. The trustee will sell, manage, and invest the trust’s assets to produce income that’s paid to you or another beneficiary. The trustee can be yourself, a charity, another person, or a third-party entity.

With the CRT set up, you transfer your appreciated assets into the trust, and the trustee sells it. Normally, this would generate capital gains taxes, but instead, you get a charitable deduction for the donation and face no capital gains when the assets are sold. Once the appreciated assets are sold, the proceeds (which haven’t been taxed) are invested to produce income.

As long as it remains in the trust, the income isn’t subject to taxes, so you’re earning even more on pre-tax dollars. And when the trust assets finally pass to the charity, that donation won’t be subject to estate or income taxes.

Because CRTs come with very specific and complex requirements surrounding their creation, operation, and the responsibilities of the trustee, it’s vital that you consult with us, your Personal Family Lawyer® if you are considering setting up a CRT. Meanwhile, review this post for an in-depth look at how charitable remainder trusts work and the numerous tax-saving and income benefits they offer.

Enlist Our Support

Although these three methods for structuring charitable donations into your estate plan are among the most popular, there may be other options available. Meet with us, as your Personal Family Lawyer®, to determine the best way to achieve your charitable objectives while maximizing your tax-saving and other financial benefits. Schedule an appointment with us today to learn more.

This article is a service of Liz Smith, Personal Family Lawyer® in Juneau, Alaska. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love.  That’s why we offer a Life & Legacy Planning Session,™ during which you will get more financially organized than you’ve ever been before, and make all the best choices for the people you love. You can begin by calling our office today at 907-312-5436 to schedule a Life & Legacy Planning Session and mention this article to find out how to get this $750 session at no charge; or book a time for our team to call you at a time you choose.

Growing your small business can be tricky. In fact, rapid growth can actually harm your company if you don’t plan properly. When you are first starting out, for instance, you may not have the revenue to hire the staff needed to handle the increased business that rapid growth brings, and trying to do everything on your own is neither effective nor efficient.

At the same time, if your operation isn’t scaled properly, rapid growth can cause your costs and workload to quickly reach unmanageable levels, making growth unsustainable and even causing your company to implode. Fortunately, using a combination of outsourcing, processes, and technology, even the smallest operation can maximize growth, while keeping costs and workload at sustainable levels.

As your Family Business Lawyer™, we support you to incorporate the systems, processes, and technology to ensure your business is positioned properly for rapid, sustainable growth. To get your growth started off on the right track, consider implementing the following strategies related to outsourcing, systems, and technology.

Boost Efficiency and Productivity With Outsourcing & Delegation

When you first start out, it can be tempting to try to do everything yourself. But trying to handle everything on your own will not only cause you to burn out, it can also cause you to neglect your core responsibilities as your company’s leader and visionary.

This is where outsourcing and delegation comes in. To begin, we recommend you conduct a two-week time study, in which you track every single thing you do for two weeks, from the minute you wake up until the minute you go to sleep. 

Then, using the time study, identify which of your tasks can be automated—or delegated—to maximize your productivity over the long haul. Then, examine your effectiveness at handling repeatable tasks within various aspects of managing your operation, such as marketing, sales, customer intake, and fulfillment.

From there, identify the tasks that are not the best use of your time, and use these three questions to get the most out of outsourcing and delegation. Take a look at this list and determine the following:

• What tasks are taking up most of your time?
• What tasks are the ones you don’t enjoy doing that can be delegated?
• What tasks can be systematized?

Out of the tasks that fall into these three categories, are there any that you could outsource or delegate to someone else? Remember, hiring is your #1 growth strategy—you can always make more money, but you cannot make more time.

If you don’t currently have administrative support, consider getting immediate assistance with answering the phones and managing new customer intake and/or new product sales. Intake and basic customer service are repeatable processes that you can easily train someone else to handle and free up your time considerably.

When hiring new team members, particularly outsourced staff, it’s often beneficial to use independent contractors (ICs) instead of employees. Contractors can help you save big on labor costs. Plus, ICs offer you increased flexibility to adjust your team based on fluctuations in the market and your workload, which can be a huge advantage for smaller operations.  

But hiring ICs also comes with some significant liabilities, including major fines and other penalties for misclassifying employees as contractors. What’s more, you must be certain you have the proper employment agreements in place to guarantee you own the intellectual property ICs create for you, or you may wind up not owning the very work you pay them to produce. 

Fortunately, with assistance from us, your Family Business Lawyer™, you can easily avoid these risks. Meet with us for trusted advice on the latest worker classification laws and for support in creating airtight independent contractor agreements that protect both you and your intellectual property.

Uplevel Growth With Technology

Today’s business technology solutions allow even the smallest operations to achieve incredible growth with minimal staff and infrastructure. Many tasks that used to take multiple people can now be completely automated, allowing you to not only increase efficiency but also enhance the experience for your customers.

When you look at your weekly list from above, see if there are tasks that can be accomplished by a technological system rather than a person. There are numerous business programs and apps available to help you with a wide array of office tasks.

Frustrated with the difficulty or speed of locating customer records or information? Try using a content management system. Overwhelmed by the creation and maintenance of too many paper files? Consider moving to a paperless office to free up your team’s time—and yours.

Harnessing the power of technology can boost productivity and support long-term growth in a number of ways. Here are a few other easy areas to start with:

• Digital dictation and speech-recognition software 
• Mobile apps for inventory and logistics
• Project management systems
• Video chat systems
• Instant messaging platforms
• Document management systems

Implement Standard Operating Procedures for Routine Tasks

Take a good look at how your business is operating. Have you implemented processes like standard operating procedures to make the repeating tasks in your company as efficient as possible? If not, it’s easy to constantly reinvent the wheel with certain aspects of managing your company, causing you to lose valuable time and lots of potential income.

Standard operating procedures (SOPs) are detailed instructions describing the procedures for carrying out recurring business tasks. At first, creating SOPs for your company’s processes might not seem very important. After all, if it’s just you and a couple of other people doing all the work, creating step-by-step instructions for each key task might seem like a waste of time.

However, SOPs are critical for productivity and efficiency, and they can save your business both time and money in the long run. SOPs are also essential for growth, as they allow you to replicate key processes on a larger scale. Moreover, standardization facilitates training and helps ensure that your operation won’t come to a standstill if you lose a key team member.

In the end, standardizing your business processes can have a positive effect on just about everyone involved with your business: you, your team leads, your staff, your customers—and even your successor. Read our previous post for a more detailed look at all the ways standard operating procedures can benefit your business.

Don’t Overlook Your Foundation
Even if you’ve implemented processes, technology, and outsourcing to efficiently deliver your core product or service and maximize growth, your company is still at risk if it doesn’t have effective legal, insurance, tax, and financial (LIFT) systems. In fact, without solid LIFT systems, your business is just one accident, audit, or lawsuit away from ruin.

The LIFT Foundation System and Toolkit from us, your Family Business Lawyer™ is specifically designed to help you integrate these cornerstone systems into your operations and provide your company with an unshakable LIFT foundation. To see how stable your LIFT foundation is right now, contact us, as your Family Business Lawyer™, to take our free LIFT 20-Point Assessment.

This assessment will highlight the gaps in your current LIFT foundation that need the most attention. From there, you can meet with us, your Family Business Lawyer™ to conduct a more thorough audit and implement the full LIFT Foundation System and Toolkit. Contact us today to learn more.

This article is a service of Liz Smith, Family Business Lawyer™. We offer a complete spectrum of legal services for businesses 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 a LIFT Start-Up Session™ or a LIFT Audit for an ongoing business, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule your appointment at 907-312-5436, or find a time for us to call you. 

Wills and trusts are two of the most commonly used estate planning documents, and they form the foundation of most estate plans. While both documents are legal vehicles designed to distribute your assets to your loved ones upon your death, the way in which they work is quite different.

From when they take effect and the property they cover to how they are administered, wills and trusts have some key differences that you need to consider when creating your estate plan. That said, when comparing the two documents, you won’t necessarily be choosing between one or the other—most plans include both.

In fact, a will is a foundational part of nearly every person’s estate plan. Yet, you may want to combine your will with a living trust to avoid the blind spots inherent in plans that rely solely on a will. As you’ll learn below, the biggest of these blind spots is the fact that if your estate plan only consists of a will, you are guaranteeing your family has to go to court if you become incapacitated or when you die.

To determine the right solution for your family, you should meet with us, for a Life & Legacy Planning Session. We offer a comprehensive process for helping you feel confident that you’ve chosen the right planning tools at the right fees for yourself and the people you love. 

In the meantime, here are some of the key differences between wills and trusts that you should be aware of.  

When They Take Effect

A will only will go into effect when you die, while a trust takes effect as soon as it’s signed and your assets are transferred into the name of the trust, known as “funding” the trust. To this end, a will directs who will receive your assets upon your death, while a trust specifies how your assets will be distributed before your death, at your death, or at a specified time after death. This is what keeps your family out of court in the event of your incapacity or death.

Furthermore, because a will only goes into effect when you die, it offers no protection if you become incapacitated and are no longer able to make decisions about your financial, legal, and healthcare needs. If you do become incapacitated, your family will have to petition the court to appoint a conservator or guardian to handle your affairs, which can be costly, time-consuming, and stressful. 

And there’s always the possibility that the court could appoint a family member as a guardian that you’d never want making such critical decisions on your behalf. Or the court might select a professional guardian, putting a total stranger in control of just about every aspect of your life and leaving you open to potential fraud and abuse by crooked guardians.

With a trust, however, you can include provisions that appoint someone of your choosing—not the court’s—to handle your assets if you’re unable to do so. When combined with a well-drafted medical power of attorney and living will, a trust can keep your family out of court and out of conflict in the event of your incapacity, while ensuring your wishes regarding your medical treatment and end-of-life care are carried out exactly as you intended.

The Assets They Cover

A will covers any asset solely owned in your name. A will does not cover property co-owned by you with others listed as joint tenants, nor does your will cover assets that pass directly to your loved ones via a beneficiary designation, such as life insurance, IRAs, 401(k)s, and payable-on-death bank accounts.

Trusts, on the other hand, cover any asset that has been transferred, or “funded,” to the trust or where the trust is the named beneficiary of an account or policy. That said, if an asset hasn’t been properly funded to the trust, it won’t be covered, so it’s critical to work with your Personal Family Lawyer® to ensure your trust works as intended.

Most lawyers will set up a trust for you, but few will ensure your assets are properly inventoried or funded, and we believe this is the single most important aspect of estate planning—and it’s one that is almost always overlooked. As your Personal Family Lawyer®, we will not only make sure your assets are properly inventoried and titled when you initially set up your trust, we’ll also ensure that any new assets you acquire over the course of your life are inventoried and properly funded to your trust on an ongoing basis, with various maintenance plans to ensure your plan works when your family needs it. This keeps your assets from being lost and prevents your family from being inadvertently forced into court because your plan was never fully completed.

Finally, even with the support of a lawyer like us, it can sometimes be difficult to transfer every single one of your assets into a trust before your death. Given this, consider combining your trust with what’s known as a “pour-over” will. With a pour-over will in place, all assets not held by the trust upon your death are transferred, or “poured,” into your trust through the probate process.

How They Are Administered

In order for assets in a will to be transferred to a beneficiary, the will must pass through the court process known as probate. During probate, the court oversees the will’s administration, ensuring your assets are distributed according to your wishes, with automatic supervision to handle any disputes.

However, probate proceedings can drag out for months or even years, and your family will likely have to hire an attorney to represent them, which can result in costly legal fees that can drain your estate. During probate, there’s also the chance that one of your family members might contest your will, especially if you have disinherited someone or plan to leave significantly more money to one relative than the others.

Bottom line: If your estate plan consists of a will alone, you are guaranteeing your family will have to go to court if you become incapacitated or when you die.

Furthermore, since probate is a public proceeding, your will becomes part of the public record upon your death. This means everyone will be able to learn the contents of your estate, who your beneficiaries are, and what they inherit, setting them up as potential targets for scam artists and frauds.

Unlike wills, trusts don’t require your family to go through probate, which can save them time, money, and the potential for conflict. Plus, when you have a trust set up, the distribution of your assets happens in the privacy of our office—not the courtroom—so the contents and terms of your trust will remain completely private. 

How Much They Cost

Wills and trusts do differ in cost—not only when they’re created, but also when they’re used. The average will-based estate plan can run between $2500 to $4,500, depending on the options selected. An average trust-based plan can be set up for $4,500 to $8,500, again depending on the options chosen. So at least on the front end, wills are less expensive than trusts.

However, wills must go through probate, where attorney fees and court costs can be quite pricey, especially if the will is contested. So even though a trust may cost more upfront to create than a will, the total costs once probate is factored in can actually make a trust the less expensive option in the long run. 

That said, each family’s circumstances are different, and this is why as your Personal Family Lawyer® we do not create any documents until we know what you actually need, and what will be the most affordable solution for you and your family, both now and in the future, based on your family dynamics, your assets, and your desires. 

With this in mind, our Life & Legacy Planning Session Process is designed to compare the costs of will-based planning and trust-based planning with you, so you know exactly what you want and why, as well as the total costs and benefits over the long term.

Find The Option That’s Right For Your Family
The best way for you to determine whether or not your estate plan should include a will, a living trust, or some combination of the two is to meet with us as your Personal Family Lawyer® for a Life & Legacy Planning Session™. During this process, we’ll take you through an analysis of your assets, what’s most important to you, and what will happen to your loved ones when you become incapacitated or die.

Sitting down with us, your Personal Family Lawyer® will empower you to feel 100% confident that you have the right combination of estate planning solutions to fit with your unique asset profile, family dynamics, and budget. Schedule your appointment today to get started.

This article is a service of Liz Smith, Personal Family Lawyer® in Juneau, Alaska. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love.  That’s why we offer a Life & Legacy Planning Session,™ during which you will get more financially organized than you’ve ever been before, and make all the best choices for the people you love. You can begin by calling our office today at 907-312-5436 to schedule a Life & Legacy Planning Session and mention this article to find out how to get this $750 session at no charge; or book a time for our team to call you at a time you choose.

In March of last year, the outbreak of the pandemic forced businesses across the country to abruptly shutter their offices and have their employees work from home. Initially, most thought the shutdown would last for a few months at most, but more than a year later, millions of people are still working remotely.

The shift to remote work has transformed the way the American workforce operates, and even now that vaccines are widely available, many companies are choosing to keep a large number of their workers at home. At the same time, other businesses are taking a hybrid approach, where employees work both from home and in the office.

Remote Work Is Here to Stay

In fact, more than 80% of company leaders said they plan to allow their employees to continue working remotely at least some of the time after the full reopening from the pandemic, according to a survey by research firm Gartner. The survey found that 47% of respondents said they intend to allow employees to work remotely on a full-time basis, while 43% would grant flex days, and 42% would provide flex hours.

Remote work offers a number of benefits for both you and your team. Without a physical office, startup costs and overhead are significantly lowered. You also aren’t limited to hiring locally, so you have a much better chance at attracting top talent. And increased employee autonomy and flexible schedules typically increases job satisfaction, which can boost productivity and morale, while lowering turnover.

But running a remote workforce also comes with its own unique challenges. This is especially true when it comes to managing your team and keeping them engaged and motivated. Management strategies that are effective in an office often don’t translate to a remote environment, where you must strike a balance between an individual worker’s independence and your team’s overall cohesion.

With this in mind, adopt these three strategies to better engage and manage your remote workforce.

1. Communication Is Essential

With everyone working in different locations, facilitating communication among your team should be a top priority. Fortunately, today’s technology makes staying in touch with your remote workforce easier than ever. While email and phone calls are still vital, video chat and messaging platforms take remote communication to the next level.

Face-to-face interaction—whether one-on-one or in a group—provides the most connectivity, so make videoconferencing a central aspect of your company’s communication process. Over the past year, Zoom has proven to be one of the most popular video-chat platforms, as it not only allows you to interact face to face, but it also facilitates collaboration by allowing chat participants to share their individual computer screens with the entire team. Our team Zoom’s once a month, but each group will have their own best frequency to communicate in big and small groups.

Slack is another online communication tool that can serve as the main hub for your team’s daily communications, and it too has proven quite popular. Slack’s versatile instant-messaging system brings your team and conversations together in one place and allows you to share images, documents, and other files directly in chat. We recently started using Slack and I (at least) am loving it!

Additionally, Slack lets you organize team discussions into different channels, allowing you to tailor communications by topic or department. And you can even build a sense of community with Slack by creating non-work channels, where your team can get to know one another and socialize.

2. Foster Authentic Connections

Communication is key, but your team will only establish genuine connections if communication is regular and meaningful. While remote workers don’t need constant hand-holding, it’s easy to feel isolated and disconnected if there isn’t consistent communication among your team. Younger workers just starting out are particularly vulnerable to feelings of isolation.

Holding weekly team meetings via video chat not only allows you to regularly discuss company goals and progress, but it also allows remote workers to gather together, which fosters a sense of unity, belonging, and comradery. Encourage your team to actively participate in meetings by seeking their feedback, so they feel like they’re part of the company’s overall direction and decision making.

In addition to weekly meetings with the entire team, consider scheduling regular “check-ins” on a weekly or even daily basis, where workers interact one-on-one with their team leads via video chat or instant message. These check-ins allow individuals to discuss how their work is progressing, as well as share how they’re doing in their personal lives, which encourages authentic personal relationships.

Of course, the best way to create meaningful connections is for your team to meet in person. Consider holding on-site gatherings whenever possible, as well as encouraging team members who live near one another to meet up and spend time together.

3. Develop Clear Processes

Since you can’t physically monitor your team’s ability to do their jobs, it’s vital that they’re clear on exactly what you need them to accomplish. To this end, establish clear, easy-to-follow work processes, so each person knows what’s expected of them, as well as how, where, and when their work should be delivered.

For general processes common to all employees, consider creating video tutorials laying out standard operating procedures (SOP). Share these videos with your team, so they have an easy-to-follow model for how common tasks should be completed.

For more specific functions, consider online project-management tools like Asana and Trello that allow you to assign tasks in a highly structured way. By organizing project tasks in a checklist format, team members can complete each task in a step-by-step manner, ensuring maximum consistency and efficiency.

Moreover, these programs offer a detailed overview of each project, so you can clearly monitor workflow and track where individual team members are in the overall process, eliminating the need to micromanage. 

Establish a Solid Foundation

Running a successful remote operation isn’t just about managing your team. You’re also responsible for the nuts and bolts of business management: the legal, insurance, financial, and tax (LIFT) components. Yet, with your company’s workforce spread out over several different states—maybe even different countries—these essential tasks are made even more complex.

For instance, just staying in compliance with the constantly changing employment and tax laws across multiple states can be a massive endeavor. And making just one mistake can cost you big time.

As your Family Business Lawyer™, we specialize in helping you navigate these diverse legal landscapes, and we’ll assist you in establishing a solid LIFT foundation for your company as well. Contact us today to schedule a LIFT Strategy Session.

This article is a service of Liz Smith, Family Business Lawyer™. We offer a complete spectrum of legal services for businesses 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 a LIFT Start-Up Session™ or a LIFT Audit for an ongoing business, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule your appointment at 907-312-5436, or find a time for us to call you. 

Legendary hip hop artist DMX—born Earl Simmons—passed away on April 9 at age 50 after suffering a massive heart attack a week earlier at his home in White Plains, New York. The heart attack was reportedly triggered by a cocaine overdose on April 2, which left the rapper hospitalized in a coma. After a week of lingering in a vegetative state, his family made the decision to remove him from life support.

As we reported last week in part one, although DMX was wildly successful in both music and movies, the rap icon experienced serious legal and financial problems, along with frequent issues with drug addiction throughout his career. Having fathered 15 children with nine different women, DMX’s money issues largely stemmed from unpaid child support, but he also failed to pay income taxes, and both of these issues would land the rapper in prison and rehab on more than one occasion.

The combination of child support payments and back income taxes also left DMX deeply in debt. In fact, some estimates put DMX’s net worth at the time of death at more than $1 million in the red. However, as with other famous musicians, DMX’s overall net worth also included extensive recording and publishing royalties—valued at an estimated $17.7 million—so even though DMX’s estate will have to pay off his massive debts, there will likely be a fairly significant sum left for the late rapper’s children to inherit.

That said, on top of his failure to manage his finances, DMX also failed to create an estate plan. And as we’ll see below, this lack of planning has already ignited a court battle among the late rapper’s many potential heirs. Even worse, the rap icon’s lack of planning will likely mean that his fiancée, Desiree Lindstrom, the mother of DMX’s 15th child, son Exodus Simmons, will most likely inherit nothing from her late fiance’s fortune.

A Family Feud Kicks Off
Although Desiree and DMX were in a relationship for seven years and raising their son together when he died, the two were never married. In an attempt to establish a claim to his estate, shortly following DMX’s death, Desiree petitioned the New York Supreme Court in an attempt to be legally declared his “common-law” spouse. But the court denied her request, which isn’t surprising given that New York hasn’t recognized common-law marriage since 1933. Had her request been approved, state law would give Desiree priority to control DMX’s estate as its administrator.

In light of the court’s ruling, Desiree will likely have zero say in how DMX’s estate is managed, and unless his other children consent, she likely won’t inherit any of his money either. And seeing that a court battle is already brewing among DMX’s oldest children over the administrator role, it’s doubtful that Desiree will be at the top of their minds when it comes to dividing up their late father’s assets.

Just a month after DMX’s death, five of his adult children petitioned the Westchester County Surrogate’s Court seeking to be named administrators of their late father’s estate. According to the New York Daily News, the first filing was made by DMX’s daughters Sasha Simmons and Jada Oden on May 10, while DMX’s three adult sons with Tashera Simmons—Xavier, Tacoma, and Sean—filed their petition to be appointed administrators on May 10.

Whoever is eventually appointed to administer DMX’s estate will not only be paid a commission, but more importantly, that person will also be in charge of making all of the estate’s future business and financial decisions. Furthermore, the administrator will also be in charge of reviewing and approving the claims of competing heirs. With such power and money on the line, it’s not surprising so many of DMX’s children are jockeying for the administrator role.

Unfortunately, as we’ve seen with both Prince and Aretha Franklin, such family disputes can last for years, tearing the family apart, costing the estate millions in legal fees, and exposing the family’s private lives to tabloid headlines. And in the end, the court may decide to avoid causing a family squabble by appointing a neutral third-party administrator to manage DMX’s estate, leaving a total stranger in control of his life’s work.

A Needless Tragedy

The saddest part of this whole situation is that virtually all of the conflict, expense, and trauma that DMX’s loved ones are likely to endure could have been easily prevented with straightforward estate planning. Using revocable living trusts, for example, DMX could have ensured that his children and fiancée would have immediate access to his assets upon his death or incapacity, avoiding the need for court involvement altogether and keeping the contents and terms of his estate totally private. 

At the same time, using special asset protection trusts, DMX could have named a person, or persons, of his choice—rather than a person chosen by the court—to manage his music and publishing assets upon his death, thereby ensuring DMX’s artistic legacy is honored and preserved in the exact manner the rap legend would want. Furthermore, DMX could have used asset-protection planning to minimize his tax liability and shield his recording and publishing royalties from creditors in order to maximize his estate’s future revenue potential and guarantee his loved ones a source of income for generations to come. 

The Power Over Life and Death
Finally, DMX’s story highlights the vital importance of incapacity planning. Estate planning is about more than planning for your eventual death; it’s also about planning for a potential incapacity from accident or illness.

In DMX’s case, his incapacity was brought on by a cocaine-induced heart attack, and he lingered in a coma for a week before being removed from life support. Because he didn’t have any planning in place, DMX’s mother, Arnette Simmons, was reportedly put in charge of making all of DMX’s medical decisions, including the ultimate decision to remove him from life support. And as we reported last week, this is the same woman who is said to have abused DMX when he was a child.

While DMX reportedly reconciled with his mother in recent years, he may have preferred to have someone else—like his fiancée Desiree—in charge of making life and death decisions for him. Additionally, although DMX’s mother and children were reportedly cordial with Desiree while he was hospitalized and did allow her to visit him, because they weren’t married, his family could have just as easily denied Desiree the right to see DMX during his final days. DMX could have prevented all of this with proper estate planning.

Through a medical power of attorney, DMX could have granted an individual of his choice, such as his fiancée, Desiree, the immediate legal authority to make decisions about his medical treatment in the event of his incapacity. And with a living will, DMX could have provided detailed guidance about how his medical decisions should be made during his incapacity. Such guidance could include instructions for everything from who should be allowed to visit him in the hospital and what kind of food he would want to specifying if and when he would want life support removed.

While advance healthcare directives like medical power of attorney and a living will are the foundation of any incapacity plan, for truly comprehensive incapacity planning, your estate plan may also require other planning vehicles, such as a durable financial power of attorney and living trusts. Meet with us, your Personal Family Lawyer® for support in putting in place an incapacity plan that’s right for your particular situation.

Learn from DMX’s Mistakes
Regardless of your financial status, planning for your potential incapacity and eventual death is something you should take care of immediately, especially if you have children. As we saw with DMX, you never know when tragedy may strike, and through estate planning, you can save your family from needless disputes, expense, and embarrassing public exposure.

Beyond just passing on your material assets to your loved ones when you die, estate planning is also critical to ensure you’ll be properly cared for in the event of your incapacity from illness or injury. And when done right, estate planning doesn’t just help you plan for incapacity and death, but makes your life better as well by giving you the peace of mind of knowing you’ve made the right legal and financial decisions for yourself and those you love.

Whether you already have an estate plan created or nothing at all, meet with us, your Personal Family Lawyer®, to discuss the specific planning strategies best suited for your asset profile and family dynamics. With our guidance and support, we can ensure that your loved ones will stay out of court and out of conflict no matter what. Contact us today to schedule an appointment.

This article is a service of Liz Smith, Personal Family Lawyer® in Juneau, Alaska. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love.  That’s why we offer a Life & Legacy Planning Session,™ during which you will get more financially organized than you’ve ever been before, and make all the best choices for the people you love. You can begin by calling our office today at 907-312-5436 to schedule a Life & Legacy Planning Session and mention this article to find out how to get this $750 session at no charge; or book a time for our team to call you at a time you choose.

As more and more businesses take advantage of the benefits of using independent contractors (ICs) in lieu of full-time employees, the line between worker classification can get easily blurred. While understanding the difference between the two can be quite complex, getting it right can be one of the most important business decisions you’ll ever make.

This is true not only in terms of productivity and your bottom line, but misclassifying your workers can also cost you big-time in penalties, including fines, back taxes, and unpaid benefits. What’s more, the Department of Labor (DOL) recently rescinded a Trump-era rule that would have made it easier for employers to designate workers as independent contractors, rather than employees under the Fair Labor Standards Act (FLSA).

This move likely signals that the Biden administration will be more carefully scrutinizing independent contractor relationships with an eye toward classifying more workers as employees rather than contractors. In fact, as a candidate for president in 2020, Biden pledged to establish a federal standard for worker classification similar to the “ABC test, which was recently adopted in California. While we’ll cover the changes in legislation regarding worker classification in more detail in a future post, for now, you should make certain that you are taking every precaution to ensure correct classification.

A Frequent Mistake

Studies show that between 10% and 20% of employers misclassify at least one employee, and you can be penalized regardless of whether or not you did so intentionally. With misclassification happening so frequently, you should carefully scrutinize every member of your team, and make sure you have airtight employment agreements in place for every person you hire.

Fortunately, with the support and guidance from me, your Family Business Lawyer™, you can easily avoid these risks and stay totally compliant. That said, seeing that you can save a significant sum in labor costs by using ICs instead of employees, you may be tempted to take your chances and pass off some of your employees as contractors. But in doing so, you’re risking serious consequences, which have the potential to ruin your business. 

How Companies Get Caught

It’s easy for the IRS to be alerted to potential misclassification. A team member can file an SS-8 form, alleging you’re in violation of the law, or he or she might simply receive a 1099 and W-2 in the same year. Beyond that, you can also get caught if one of your team tries to claim unemployment or disability, as this can result in an audit of your business.

Plus, because there’s no single test at the federal level to determine a worker’s classification and varying standards between states, it can be easy to misclassify someone by mistake. And regardless of whether or not the misclassification was intentional, if the allegation proves valid, you’re potentially on the hook for paying back taxes, benefits, and hefty fines.

Fines, Back Payments, and Penalties

If you misclassify an employee, you can face fines from the DOL, IRS, and state agencies that can total millions of dollars. Moreover, you can be held responsible for paying back taxes and interest on employee wages, along with FICA taxes that weren’t originally withheld. And failure to make these payments can result in even more fines.

You can also be held liable for failing to pay overtime and minimum wage under the FLSA as well as under state laws. Such claims can go back as far as three years if it’s found you knowingly made the misclassification. And if the IRS believes your misclassification was intentional, there’s also the possibility of criminal and civil penalties. 

Outside of the fines paid to state and federal agencies, if an employee is misclassified, they’re eligible to claim employee benefits he or she missed out on. These can include healthcare coverage, stock options, 401(k) matches, PTO, and even unpaid break time.

Not to mention, if a worker is misclassified, the resulting audit and penalties can also seriously damage your company’s reputation. So even if the fines and penalties don’t destroy your business, the negative media coverage just might.

Don’t Take The Chance

Utilizing independent contractors can give your company an edge in today’s “gig economy,” but if you are not careful, ICs can also be a serious liability. Consult with me, your Family Business Lawyer™ for trusted advice on the latest worker classification laws in your state and for support in creating airtight independent contractor agreements that protect both your business and its intellectual property. Reach out today to schedule your appointment.

This article is a service of Liz Smith, Family Business Lawyer™. We offer a complete spectrum of legal services for businesses 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 a LIFT Start-Up Session™ or a LIFT Audit for an ongoing business, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule your appointment at 907-312-5436, or find a time for us to call you. 

Legendary hip hop artist DMX—born Earl Simmons—passed away on April 9 at age 50 after suffering a massive heart attack a week earlier at his home in White Plains, New York. The heart attack was reportedly triggered by a cocaine overdose on April 2, which left the rapper hospitalized in a coma. After a week of lingering in a vegetative state, his family made the decision to remove him from life support.

Despite selling more than 74 million albums and enjoying a wildly successful career in both music and movies, DMX, who died without a will, left behind an estate that some estimates report being millions of dollars in debt. Even though DMX likely died deeply in debt, just weeks after his passing, multiple members of his family, which includes 15 children from nine different women, petitioned the court seeking to become administrators of the late rap star’s estate.

While DMX’s estate may currently be in the red, his loved ones are presumably fighting over the right to control the rap icon’s recording and publishing royalties, which will likely be a lucrative source of future income. In fact, following his death, Billboard reported that DMX’s total royalties, which include the release of a posthumous album, master recording royalties, and licensing opportunities, are worth an estimated $17.7 million.

With so much wealth at stake and so many children, DMX’s failure to create an estate plan will likely mean his loved ones will be stuck battling each other in court for years to come. And perhaps no one stands to suffer more than DMX’s fiancée, Desiree Lindstrom.

DMX and Desiree, who were engaged in 2019, had been together for seven years, and she gave birth to his 15th child, a boy named Exodus Simmons, in 2016. However, because the two were never married and DMX did not create any estate planning providing for her, Desiree will likely inherit nothing from her late fiance’s fortune.

A Common Problem
While DMX’s case is certainly tragic, the lack of estate planning is all too common among famous musicians—Prince, Jimi Hendrix, and Bob Marley all died without a will. More recently, the legendary “Queen of Soul,” Aretha Franklin, who died in 2018, left behind four different handwritten wills, and more than three years after her death, her four adult sons are still fighting each other in court over her estate.

We cover DMX’s story and others like it in hopes that they will inspire you to do right by your loved ones by creating a proper estate plan. Death comes for us all, often when we’re least expecting it. And without any planning in place, you are forcing your loved ones to endure a costly, possibly conflict-filled, and in all cases, an unnecessary legal process resulting in the loss of wealth and assets you’ve worked so hard to create.

Furthermore, estate planning is crucial even if you have far less wealth than the late rap icon. After all, given DMX’s lucrative recording and publishing royalties, his children will likely still receive an inheritance, while similar estate planning failures would almost certainly wipe out a smaller estate.

With this in mind, we’ll discuss DMX’s estate planning mistakes and how those errors have impacted his family, his fortune, and his end-of-life medical treatment. From there, we’ll explain how proper planning could have spared DMX, his kids, and his fiancée from their tragic circumstances, and then we’ll outline the steps you can take to make certain that your loved ones never have to endure such a dire outcome.

From Fame And Fortune To Debt and Prison

Emerging on the scene in the late 1990s, DMX quickly became one of rap’s biggest stars, cranking out chart-topping hits like “Party Up” and “X Gon’ Give it to Ya.” Between 1998-2003, DMX cemented his legendary status in hip hop, with an unprecedented string of five consecutive number-one albums which would earn him three Grammy Awards. From there, DMX parlayed his success in the music biz into an impressive career in movies, starring in a number of hit films, such as Romeo Must Die and Cradle 2 The Grave. 

While DMX experienced amazing success in his professional life, his personal life was plagued by serious financial and legal struggles as well as substance abuse. Although his albums earned him more than $2.3 million between 2010 and 2015, DMX filed for bankruptcy in 2013, claiming to have just $50,000 in assets and owing more than $1 million in debt to numerous creditors. The bankruptcy court, however, denied DMX’s claim, leaving him on the hook for his debts.

The majority of DMX’s money problems were caused by the fact that he fathered so many children with so many different women, each of whom relied on the hip-hop icon for financial support. DMX married his childhood friend Tashera Simmons in 1999, and they had four children together and were married for nearly 15 years until their divorce in 2014. However, DMX had numerous affairs during their marriage, some of which resulted in children. 

In 2004, DNA testing confirmed that DMX fathered at least one child from these extramarital affairs, and this led to the rapper being sued for unpaid child support. As a result, DMX was ordered to pay $1.5 million to the child’s mother, Monique Wayne.

But that wasn’t the end of DMX’s problems with child support. In his 2013 bankruptcy filing, DMX listed back child support as his priority debt, totaling roughly $1.24 million to multiple women. In addition to outstanding child support payments, DMX’s financial troubles were exacerbated by his failure to pay income taxes, which eventually landed the rap star in prison. 

In 2017, DMX pled guilty to $1.7 million in tax fraud, and the court ordered him to spend a year in prison. Although DMX was released from prison in 2019, at the time, he still owed $2.3 million in income taxes. In September 2020, the IRS filed a tax lien against DMX and ex-wife Tashera Simmons to collect the remaining debt, and upon his death, DMX reportedly still owed the IRS nearly $700,000, according to Radar.

A Traumatic Childhood Leads to Addiction
DMX’s troubles as an adult likely stemmed from his abusive childhood. Born to a teenage mother, the rapper was reportedly beaten by both his mother and her many boyfriends as early as age 6, according to the New York Post. At age 10, DMX was kicked out of school for fighting, and a short time later, he was ordered to spend 18 months in a home for troubled youth. By age 14, DMX was living on the streets, where he was first introduced to drugs. 

In a 2020 interview with podcaster Talib Kweli, DMX said that his issues with addiction started at age 14, when his 30-year-old rap mentor offered him a joint that DMX didn’t know was laced with crack cocaine. Following that experience, DMX said he began using drugs as a coping strategy to deal with his pain, and sadly, the habit followed him until his final days.

Over the years, DMX entered drug rehabilitation on multiple occasions (his latest rehab stint was in 2019), and the Grammy winner was even forced to cancel an entire tour due to his recurring battles with addiction—which would ultimately claim his life. Toxicology reports showed that the DMX died of a cocaine-induced heart attack that cut off circulation to his brain, leaving the rapper brain dead. Although DMX’s heart was revived at the hospital, he remained in a coma until his mother ultimately made the decision to remove him from life support a week later.

A Family Feud KIcks Off
While DMX’s mother, many of his children, his fiancé, and ex-wife were able to visit him in the hospital before he passed away and were all reportedly on good terms, just a few weeks later, several of those same relatives were in court battling one another for control of the late rapper’s estate. And as we’ll see next week, with so many potential heirs and such big money on the line, the fight over DMX’s estate is likely to get quite ugly.

Don’t let what happened to DMX’s family happen to your loved ones. Whether you have no estate plan at all or have a plan that needs review—even one created by another lawyer—contact us, as your Personal Family Lawyer®, today. With our support and guidance, we can ensure that your loved ones will always be provided for and stay out of court and out of conflict no matter what happens to you.

Next week in part two of this series, we’ll discuss how DMX’s lack of estate planning created a nightmare for his family, and then we’ll outline the steps you can take to ensure your loved ones don’t suffer a similar fate.

This article is a service of Liz Smith, Personal Family Lawyer® in Juneau, Alaska. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love.  That’s why we offer a Life & Legacy Planning Session,™ during which you will get more financially organized than you’ve ever been before, and make all the best choices for the people you love. You can begin by calling our office today at 907-312-5436 to schedule a Life & Legacy Planning Session and mention this article to find out how to get this $750 session at no charge; or book a time for our team to call you at a time you choose.

Business insurance is your first line of defense in protecting your company from a wide variety of different potential threats. Without the right insurance—or with too little of the insurance you do need—you could be at great risk from the costs of a lawsuit, judgment, or in the event of an unforeseen emergency or disaster.

There are numerous types of business insurance available, and some insurance policies are a must-have for nearly every business, while others you might not need. The type of insurance you require will ultimately depend on the specific risks your company faces as well as its assets, so you should meet with us your Family Business Lawyer™ to identify the coverage your particular business should have in place.

In addition to not having the right types and levels of coverage, business owners make a number of common mistakes when purchasing business insurance. While we can help you determine the appropriate coverage for your company, here are a few frequently made errors to avoid when investing in business insurance.

1. Purchasing a policy that doesn’t offer you legal representation in the event of a lawsuit
The right business insurance will not only pay out if someone wins a lawsuit against your company, but it will also hire a lawyer for you and pay your legal bills if your business is ever sued. To this end, make sure your insurance coverage offers a “duty to defend” your business in the event of a lawsuit, and not just a “duty to indemnify,” or pay out, in the event of a judgment.

In fact, providing you with legal representation can be the most important component of business liability insurance, because your company can be sued at any time by anyone even if you’ve done nothing wrong. And if you can’t afford to defend yourself against the suit, your business can be ruined by a single frivolous claim.

2. Failing to insure against loss of income
If your business is damaged in a fire, storm, or another unexpected event, having commercial property insurance will pay to rebuild and repair your workspace. However, if your business is shut down for even a short period of time, the loss of income can be devastating. Given this risk, consider investing in business interruption insurance, also known as business income coverage.

Business interruption coverage reimburses your company for the income lost due to the event, and it can also cover overhead expenses like rent or electricity while your operation is out of commission. Many businesses learned the hard way just how crucial such coverage is during the pandemic-related shutdowns of this past year, so let it be a lesson as to how vital such coverage can be.

3. Failing to adjust your coverage as your business grows
Like any other foundational business system, if your insurance isn’t regularly reviewed and updated as your operation grows, your coverage may prove inadequate, putting your business at risk. In general, it’s a good idea to review your insurance coverage on an annual basis, but as your business evolves, you should also revisit your policies whenever your company undergoes significant changes involving infrastructure, assets, and personnel.

While there are a number of events that could necessitate an audit of your insurance coverage, some of the key changes that require you to immediately review your business insurance include the following: relocating or renovating your office, hiring new employees, adding a new product, or service, purchasing new vehicles, and making changes to your top executives.

4. Failing to insure against employee lawsuits
While you probably don’t want to think that one of your team would ever sue you, your employees (and independent contractors) are actually one of the most likely sources of litigation. In fact, nearly one in every five small businesses will get sued by a team member.

In addition to having clear employment agreements in place and formal processes for hiring and firing, you should invest in employment-practices insurance for your company. This coverage protects your business against lawsuits brought by both employees and contractors, and the right coverage will not only pay out in the event of a judgment against you, but also pay for your legal costs.

5. Relying on homeowners insurance to cover a business run out of your home
You might think that your homeowners insurance policy would protect your home-based business from losses and liabilities, but this is a common misconception. Your homeowners policy doesn’t offer coverage for any business property, including both equipment and structures used for business purposes. Your homeowners policy also doesn’t cover against business-related liabilities, such as slip and fall accidents.

Although you can get extra coverage added to your homeowners policy to cover your home-based business, if you run a business out of your home, you really should get both homeowners and business insurance. At a minimum, you’ll need business liability coverage, property insurance, and business interruption insurance, which can be purchased bundled together under a typical business owner’s policy.

The Right Coverage For Your Business
Every business has its own unique risks and assets, so there’s no way to know exactly what coverage your company needs without an evaluation. Before you sit down with an insurance agent, meet with us, as your Family Business Lawyer™ for an insurance audit.

We can support you by evaluating the specific risks your company faces at each stage of growth to determine exactly what kind of insurance you need and what levels of coverage will best protect your business assets both now and in the future. Contact us today to get started.

This article is a service of Liz Smith, Family Business Lawyer™. We offer a complete spectrum of legal services for businesses 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 a LIFT Start-Up Session™ or a LIFT Audit for an ongoing business, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule your appointment at 907-312-5436, or find a time for us to call you. 

It’s sad but true that many pets end up in shelters after their owner dies or becomes incapacitated. In fact, the Humane Society estimates that between 100,00 to 500,000 pets are placed in shelters each year for exactly this reason, and a large number of these animals are ultimately euthanized.

Unfortunately, the law considers pets to be nothing more than personal property just like cars, furniture, and electronic devices. So unless you take the proper steps to include your pet in your estate plan, your beloved companion could end up in a shelter or worse following your death or incapacity.

In light of this cold reality, here we’ll detail how you can use estate planning to ensure your pets receive the best possible care when you’re no longer able to care for them yourself. Consult with us as your Personal Family Lawyer® to put the proper legal documents in place to provide for your furry friend’s future care.

Select A Caregiver For Your Pet

Selecting a trustworthy caregiver is the first—and most important—step in protecting your pet via your estate plan. You might assume that your kids, relatives, or friends will step in and care for your pet should something happen to you, and these folks may even tell you as much in conversation. But properly caring for most pets is a major commitment of time, energy, and finances, so you shouldn’t rely on simple promises to ensure your pet’s future is secure.

It’s best to come up with a list of potential candidates, and then have a frank talk with each of them, discussing the extent of care your pet requires and whether they have any personal issues (allergies, housing, children, other pets, etc) that might prevent them from providing the proper care. 

If you don’t know any suitable caregivers, charitable groups, such as the Safe Haven® Surviving Pet Care Program, can provide for your pet in the event of your death or incapacity. 

Create A Detailed Care Plan

Once you’ve chosen your pet’s caregiver—along with one or two alternates in case something happens to your top choices—then you’ll need to outline all of your pet’s care requirements. At the very least, your caretaking instructions should include your pet’s basic requirements: dietary needs, exercise regimen, medications, and veterinary care. But if you are like most pet owners, you probably want your pet to receive more than just the bare necessities, so consider leaving instructions for any other special treatment you want your furry friend to receive. 

From special grooming arrangements and yummy treats to weekly visits to the park and favorite toys, your care plan can provide your beloved companion with whatever lifestyle you wish for them. Finally, don’t forget to address what you want to be done at the end of your pet’s life, such as burial, cremation, and/or memorial services.

Funding For Your Pet’s Continued Care
When determining how much money to put aside for your pet’s care, you should carefully consider the pet’s age, health, and special care needs. Remember, you’re covering the cost of caring for the animal for the rest of its life, and even basic expenses can add up over time.

In addition to the bare necessities like food and vet visits, make sure you also calculate the costs for any special treatments or services you include in the care plan and leave enough money to pay for them. And if you end up leaving more money behind than needed, you can always name a remainder beneficiary, such as a family member or charity, to inherit any funds not spent on the pet.

Create A Pet Trust
Since pet care can be quite complicated and costly, the best way to ensure your wishes are properly carried out is to set up a pet trust. While it’s possible to leave care instructions and funding for your pet in a will, a will cannot guarantee the new caregiver will use the funds properly—or even that they will care for your pet at all. 

In fact, a person who’s left their pet in a will can simply drop the animal off at a local shelter and keep the money for themselves.  A pet trust, on the other hand, allows you to layout legally binding rules for how the funds in the trust can be used. Additionally, pet trusts can cover multiple pets, work in cases of incapacity as well as death, and they remain in effect until the last surviving animal dies.

To ensure your wishes are accurately carried out, you should name someone other than the caregiver as a trustee. This way, the trustee can manage the funds and make sure they are used exactly as spelled out in your care instructions. 

Do Right By Your Furry Family
Although leaving assets in a pet trust is fairly simple, creating a properly drafted trust that includes all of the necessary terms can be quite complex. To this end, reach out to us, as your Personal Family Lawyer,® for support in creating your pet trust.

We can make sure that your pet trust contains all of the necessary elements to guarantee that your beloved companions will continue to receive the love and care it deserves no matter what happens to you. Contact us today to schedule an appointment.

This article is a service of Liz Smith, Personal Family Lawyer® in Juneau, Alaska. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love.  That’s why we offer a Life & Legacy Planning Session,™ during which you will get more financially organized than you’ve ever been before, and make all the best choices for the people you love. You can begin by calling our office today at 907-312-5436 to schedule a Life & Legacy Planning Session and mention this article to find out how to get this $750 session at no charge; or book a time for our team to call you at a time you choose.