Paying It Forward: How to Build Your Legacy Through Mentorship  

As a business owner, it can be easy to see an opportunity to mentor a young professional as a purely charitable experience. But mentorship can play a pivotal role in shaping your legacy when you approach it with the right mindset. Not only does mentoring give you the opportunity to invest in the life of an aspiring businessperson, but it can also provide you with a unique perspective on your business and a chance to create a lasting impact in the community.

In this week’s blog, we’ll explore how mentorship can propel your aspirations and shape the legacy you’re building for yourself and your business.

 

Share a Vision and Drive For Success

Mentoring isn’t just about imparting knowledge; it’s about instilling a vision of growth, innovation, and unwavering commitment. By envisioning a positive future for your mentees, you are simultaneously reaffirming your aspirations for yourself and your business.

As you go through the mentorship process, you’ll find yourself examining your processes and goals in service of providing a good experience to your mentee. What do you want your business to look like? What impact do you want it to have on your team members, community, and family?

Considering these questions throughout the mentorship process will not only provide guidance and inspiration to your mentees but will keep your vision for your business alive and at the forefront of your actions. As you nurture your mentees’ potential, you reinforce your commitment to progress for your business and your position as a driving force in your industry. 

Mentees benefit when people with experience encourage them to keep their eyes on the prize, and mentors benefit by reaffirming the principle that envisioning a positive future—and working toward that future—is the key to success. As a mentor, you enrich your business and leave an impact on your community as a leader who cares about the success of others.

 

Learn Through Shared Experience 

It may seem like the mentee is the only one learning and growing in a mentorship relationship, but mentorship isn’t a one-way street; it’s a dynamic exchange of wisdom, ideas, and insights. While mentoring, you’ll refine your skills and gain fresh perspectives from your mentee. When you open the doors of experiential learning for your mentees, you’re inviting them to journey alongside you in real-world business challenges and triumphs, and with those experiences will come valuable feedback for you as the business owner.

As you begin showing your mentee the ropes of your business, how it’s run, and the different roles and departments that allow it to function, you yourself will re-learn essential components of your business that you may not have personally been involved with in some time. Teaching someone else about your company and its processes will also put you in a key position to reevaluate the things that are working well for your company and the areas that need improvement. 

As you exchange information with your mentees and seek to provide them with a strong mentorship experience, you may want to reevaluate your strategies, adopt new processes, and bolster your professional acumen. Your mentees will be in a unique position to offer feedback on your business systems and processes, as well as your company’s public reputation and customer experience.

By facilitating their growth and learning by actively involving them in the day-to-day work of your business, you unknowingly cultivate your own learning and create a legacy of continuous evolution, innovation, and stewardship of your company and of the people who work in it.

 

A Legacy of Leadership

As a busy entrepreneur, you may worry that mentoring young professionals will be time-consuming or not create an immediate benefit for your business. But by dedicating time and energy to mentorship, you showcase the heart of a leader who not only envisions a brighter future for their industry but also actively nurtures that vision by passing on knowledge of the field to the next generation of leaders.

This authentic commitment to your industry and those in it not only fuels your mentees’ ambitions but also establishes you as a trusted beacon in your industry – an integral facet of your enduring business legacy. It makes you a more valuable member of the business community, a necessary component of your career advancement and business growth. 

Your mentorship opportunities will also create more awareness of your business in the community, a sense of public trust in your company, and a growing knowledge base of potential customers, clients, or referrals. In this way, your company will increasingly become a household name, you will develop personally, and you’ll refine your legacy as an integral leader in your company and your community.

 

Guidance for Building Your Legacy From a Law Firm With Heart

As your Personal Family Lawyer® firm, we understand that your business is made up of more than just business documents, and we know that a true sense of success and satisfaction in your business comes from more than revenue – it comes from building a legacy that represents your heart as a leader.

We are experienced in using a heart-centered counseling approach to help entrepreneurs define and build their legacies, and we can put protective measures in place to ensure your time can be spent on growth and giving back to the business community instead of putting out fires and fixing problems. And through our LIFT Business Breakthrough Session™ we can help you implement robust Legal, Insurance, Financial, and Tax systems that protect your interests while you help others—and yourself—envision and work toward a more positive future.

To learn how we can help you, schedule a free 15-minute call with us to discuss the dream and vision you have for your business.

Got Intellectual Property? Include It In Your Estate Plan

 

You don’t have to be a famous producer or household name to own intellectual property. If you create music, own a business, write stories, or build gadgets in your garage, you almost certainly have intellectual property. However, because intellectual property is intangible, it’s often overlooked in estate planning.

And if you do have intellectual property, it may hold significant sentimental and even monetary value for you and the people who love you. Without properly planning for these works in your estate plan, your family could lose these valuable assets forever.

Even if you’ve worked with a lawyer to set up your business, write a will, or file your taxes, those professionals may not be thinking about what happens to your intangible assets upon your death. Many lawyers who focus on estate planning don’t really understand the value of intellectual property and how to protect it. We do, and now so will you.

It’s essential that you take the proper steps to not only protect these intangible assets during your lifetime but also ensure that your intellectual property is properly handled following your death. That way, the monetary and human value of your intellectual property isn’t lost forever when you die.

 

Safeguard Your Intellectual Property During Life

While you might think that identifying, protecting, and valuing your intellectual property is something that only applies to big companies and famous artists, that’s definitely not the case. Your intellectual property has sentimental value to your family and may have more monetary value than you realize, and could be of even greater value to your loved ones after you’ve died.

The first step to take in protecting your intellectual property is to formally document it in an inventory of assets that describes what the asset is, where it’s located, and how to access it if it’s a digital or intangible item. This is something I help all of my clients create to ensure that no asset, whether tangible or intangible, is left out of their plan or lost when they die. 

The next step is to consider if any of your intellectual property should be legally registered in the form of trademarks, copyrights, or patents with the U.S. Patent and Trademark Office. Original works are automatically copyrighted when you create them, but without legally registering your copyrights, it can be difficult to prove and enforce your copyright if someone steals your work and presents it as their own. If you’re lending, renting, licensing or selling anything you’ve created to a third party, it’s also important to have the proper legal agreements and contracts in place to ensure there’s no question about who owns the material.

Likewise, if you own a business and have not protected your intellectual property with copyrights, trademarks, patents, royalty and licensing agreements, non-competes for employees, and work-for-hire provisions in your existing agreements with independent contractors and vendors, now is the time to do so.

Don’t wait until your intellectual property is stolen or you receive a cease-and-desist letter to put these protections in place. Registering a trademark or copyright might cost you time and money, but failing to register your original works can cost you far more than that in legal fees or the lost value of your assets, especially if your family ends up in court trying to fight for what you created.

 

Protect Your Intellectual Property for Future Generations

In addition to protecting your intellectual property during your lifetime, it’s equally important to plan for what will happen to these assets at your incapacity or death, and to protect your heirs from a potentially long and costly court battle over the ownership of your intangible assets.

The most important thing is to make sure that your family can locate and access your intellectual property after you’re gone. Otherwise, your work could be lost forever. 

Once you’ve created an inventory of your assets, you’ll need to make sure your loved ones know how to find your inventory so that if you die or become incapacitated they can easily locate and access your assets. Your inventory should also include how each asset is accounted for in your estate plan and whether you share ownership of any intellectual property with another person or company. 

To make sure all of your assets are planned for in the right way, it’s imperative to meet with an estate planning attorney who has the experience and knowledge to plan for your intellectual property and protect any future income the property may generate for your loved ones.

Your attorney should help you plan for each asset, who will inherit it, how its value will be distributed, and how income generated from it will be used, all while avoiding the need for a long and costly probate proceeding. 

If you think this all sounds overly complicated, imagine how much more difficult it will be for your loved ones to deal with it should something happen to you. In fact, it could prove impossible for your loved ones to handle these matters in your absence, which is why it’s so important for you and your legal team to take care of these issues now. That way, your family isn’t stuck trying to clean up your mess after your death.

 

Planning for All of Your Assets, In The Best Way

While you might not be a famous author, artist or musician (yet), you very well may have valuable intellectual property, and chances are that property has not been properly documented or accounted for in your estate plan. Besides monetary value, your pieces of intellectual property are unique creations that reflect your heart, soul, and personality that your family will cherish for years to come.

To make sure all of your assets are protected and planned for, including your intellectual assets, give us a call. As your Personal Family Lawyer® firm, we offer expertise in documenting, valuing, and protecting your intangible assets so your loved ones can benefit from these creations for generations to come.

Get in touch to schedule a free 15-minute call with me to learn more.

4 Red Flags That Signal It’s Time to Part With a Bad Client

 

Dealing with clients who bring more complications than benefits can be a burden on your business, causing undue stress and even a loss of revenue. However, breaking ties with such problematic clients can be a tough decision, especially if your business is still finding its footing or you’re strapped for funds. 

Nonetheless, there are instances where parting ways with a client is the most prudent course of action. To grow your business and increase efficiency, it’s crucial to acknowledge that not every client is an ideal fit for your business. In the worst-case scenarios, you would have been better off never engaging with these clients in the first place. 

If any of your clients are exhibiting these red flags, it may be time to consider ending that client relationship and learning to avoid potential clients that exhibit any of these behaviors.

 

Consistently Delayed Payments

While the occasional late payment might stem from oversight, repeated instances signal a more serious issue. If late payments become a pattern, it might be time to reassess the client relationship. Imagine if your team received their pay weeks or months late – it could potentially lead to their departure, and rightly so.

To mitigate this concern, consider incorporating specific payment terms into your sales agreements. By outlining your payment schedule, penalties for delayed payments, and potential remedies, you establish clear expectations and set the tone for possible recourse. Requiring upfront payment or a deposit before commencing work is another preventive measure. Always ensure that each client signs a sales agreement with precise payment terms before any work is undertaken.

If you need help crafting a thorough agreement to minimize the risk of late payments, we can help.

 

Underestimating Your Worth

Valuing your work appropriately is essential for your business’s sustainability. Sometimes, a skewed perception of money can lead to undervaluing your efforts. Overcoming this financial misconception is crucial, as it directly impacts your self-worth and your client relationships.

Unresolved money-related fears and beliefs can adversely affect your business and personal life. By acknowledging and addressing these misconceptions, you can project confidence and command the compensation you deserve. Underestimating your worth can not only impact your income but also erode your enthusiasm, quality of work, and overall well-being.

Our firm is adept at helping you cultivate a healthier relationship with money. Through the Money Map to Freedom program, we’ll guide you in reclaiming your precious resources and establishing financial freedom, empowering you to demand fair compensation from clients without discomfort.

 

Scope Creep: Navigating Expanding Expectations

Clients occasionally seek more than initially agreed upon, leading to scope creep. While such instances don’t always indicate problem clients, it’s essential to manage the situation proactively. Gradual expansion of responsibilities can lead to an unfair imbalance between your clients and strain your relationship with others.

When confronted with work outside the scope of your agreement, address it using a “change order” approach, much like modifications during home remodeling. Request proper compensation for any extra efforts, ensuring fairness to both parties. While it’s critical to recognize your clients’ evolving needs, it’s equally important to maintain equilibrium and prevent an undue and uncompensated burden on your business.

 

Lack of Boundaries

An additional facet of managing client relationships revolves around the crucial principle of time boundaries. It’s not uncommon to encounter clients who consistently encroach upon your time, whether through incessant calls or expecting immediate responses beyond regular business hours. While maintaining open communication is essential, it’s equally important for clients to respect your time and understand that your availability has limits.

Clients who disregard these boundaries not only risk overburdening your schedule but also undermining the quality of service they ultimately receive. Just as you wouldn’t expect your team to be on call 24/7, clients should recognize the importance of designated business hours and reasonable response times.

If you find yourself consistently grappling with clients who exhibit this behavior, it might be an indication of a broader lack of appreciation for your professional space. Evaluating whether such clients align with your business values and working style is crucial. In some cases, a candid conversation outlining your communication norms and setting realistic expectations can lead to improved understanding. 

However, when these discussions yield no change, it might be worth considering whether the client relationship is sustainable in the long run. Remember, fostering a healthy client relationship involves mutual respect and understanding, with each party valuing the other’s time and commitments.

 

Fostering Positive Client Relationships

Though parting ways with problematic clients can be challenging, the long-term benefits outweigh the immediate discomfort. New clients can always be acquired, but the time, energy, and attention wasted on troublesome clients are irretrievable.

As your dedicated Personal Family Lawyer® firm with a business focus, we offer comprehensive support in navigating challenging client dynamics. From crafting meticulous sales agreements to aiding you in redefining your financial relationship with money, our expertise ensures your business’s prosperity. Connect with us to initiate a path toward healthier, more productive client relationships.

Can You Rely on Legal Insurance for Your Estate Plan?

 

As the need for affordable legal services becomes even more important in today’s world, it’s common to opt for group legal insurance offered through your workplace benefits. These group insurance plans provide free legal assistance for a variety of needs from law firms that have contracted with the insurance company to provide the legal work.

While group legal insurance might seem like an easy option to save on your family’s legal needs, it’s often inadequate for creating the kind of estate plan you really need to protect your assets, your choices, and your loved ones. In fact – the type of estate plan, will, or trust created through legal insurance programs could leave your family with a big mess.

Here are the reasons why estate planning for your family demands a heart-centered, counseling-oriented approach and guidance beyond the scope of your group legal insurance coverage. I’ll help you understand the potential pitfalls of using group legal insurance for estate planning and share suitable alternatives to ensure your assets are properly protected and that your loved ones are left with a legacy of love, and not a big mess.

 

One Size Doesn’t Fit All

When it comes to estate planning, if you have people you love and assets you care about, there is no such thing as a one-size-fits-all plan that works for you and your family. While there are almost always at least, and sometimes 4 key documents in a standard estate plan–a will, trust, health care directive, and power of attorney–there are additional pieces of planning that are quite important for your family, depending on the specifics of your family dynamics and the nature of your assets, to ensure that your plan actually will work when your family needs it. Not to mention the content of these 4 documents must be specifically tailored to meet the unique needs of your family.

Each person and each family has unique circumstances that require custom planning to ensure their plan works the way you want it to. Your financial, medical, and personal needs must be taken into account to craft a comprehensive plan that will serve you now and pass on your assets in the best way after you’re gone, all while ensuring the best use of your resources during your life.

Your group legal insurance plan may have the 4 key documents of an estate plan, but a generic set of planning documents is unlikely to work for you the way you want, and will almost certainly guarantee your family will end up lost and confused when something actually happens to you, and your family needs the support of the plan you created to guide them. 

To create a plan that will truly work for you and your family, your planning process needs to begin with an evaluation of your assets and family dynamics and needs to educate you about the application of the law to your specific situation. This is why we don’t have a one-size fits all solution, but instead begin our planning with you looking holistically at everything you have, everyone you love, and what you desire for the people you love.  

The type of cookie-cutter estate plan you are likely to receive through your group legal insurance simply won’t include the kind of comprehensive considerations and counseling necessary to deliver a plan that will serve you and your loved ones in the way you would want while keeping your family out of court and conflict.

 

Legal Insurance Nickel and Dimes

Many group legal insurance plans boast free legal services after your deductible is paid, but what isn’t revealed is the limit of the coverage that’s covered for free.

Only certain types of legal services are covered under group legal insurance plans. Estate planning is frequently covered, but the kind of plan you will receive is a mere set of documents, similar to what you could create yourself online, and not a customized, well-counseled plan that will be sure to work when your family needs it.

Plus, some items that are essential to the creation of your plan, like notary stamps or fees to file documents with the state, are not included in the covered service and are instead charged to you as an extra expense.

More importantly, most legal insurance plans have limits to the amount of claims you can file for each type of service each year. For example, you may only be covered to create a Will once a year, but won’t be covered if you need to update your estate plan mid-year if circumstances change or someone dies. Estate planning isn’t something you do once, as your life will change, your assets will change, and the law will change. A legal insurance covered plan will not keep up with those changes, so you may receive documents, but those documents aren’t likely to be what your family needs when something happens to you.

 

You Need a Heart-Centered, Counseling-Based Planning Approach

Creating an estate plan isn’t just about a Will or a Trust or passing on your money after you’ve died. It’s about making wise decisions about the use of your resources throughout your life, leaving your assets in a way that creates a legacy, not a mess, and creating the best reality possible for yourself and your loved ones. 

As your dedicated Personal Family Lawyer®, I take a holistic approach to serving you by working closely with you and your family to understand what matters to you, your family’s dynamics and values, and the aspirations you have for your family as a whole. Then, I review and consider all of your assets, including the intangible assets often left out of planning. Then, together, we create a truly personalized plan that takes into account every aspect of your family’s well-being for the near and long-term

What’s more, your needs and your family’s needs will change over time. You’ll buy new assets and sell others. You may have another child, or become a grandparent. Your son may start a business or your sister may develop a disability. 

That’s why it’s crucial to coordinate your estate plan with the circumstances of your loved ones so that your wishes are honored and your assets are protected no matter how their situation changes over time.

To do this, I look at how your wishes and the circumstances of your loved ones intersect and can provide you with personalized guidance at any stage in life’s journey.

In addition, our planning process includes creating an inventory of all of your assets and we review your entire plan, including all of your decisions and your asset inventory for free every three years to make sure the plan we created for you will continue to serve you and your family in the way you intended. By doing this, we can identify any areas of your plan that need to be changed and any new assets that need to be coordinated into your plan.

 

Legal Insurance Plans Lack Long-Term Considerations

Estate Planning is a journey that spans a lifetime. As your finances, needs, and wishes evolve over time, your estate plan must adapt accordingly. Relying solely on group legal insurance won’t provide the ongoing support and guidance needed to address changing circumstances over the years. 

Under group legal insurance, your choice of attorneys is limited to the firms that have contracts with the insurance company, and there is no guarantee that the attorney you worked with this year will be available to help with changes to your plan next year.

Your children will grow into adults. That means you’ll lose your ability to make decisions for them unless you update your estate plan to nominate a Permanent Guardian or Power of Attorney for them. We can help with that.

You may wish to leave your house to your daughter but you worry about the longevity of her marriage. We will help you look at all of these considerations as part of our planning with you now and as they come up in the years that follow.

Time-sensitive changes to your plan that are needed as a result of a sudden emergency or death in the family may be impossible to carry out when using an attorney through group legal insurance. Instead, you want to work with an attorney who knows your family’s story and can pick up right where you left off, allowing them to quickly and effectively address any needed changes to your plan with just a phone call.

Trusted Expertise in Estate Planning

While group legal insurance may seem like the ultimate way to protect your loved one’s future legal needs and your family’s wallet, sadly, the services available through these group insurance plans simply aren’t comprehensive enough to ensure you and your family get the support and guidance they need, and deserve.

Instead, it’s crucial to work with an experienced estate planning attorney who gets to know your family on a personal level and can guide you every step of the way.

Your estate planning journey deserves personalized attention, compassionate understanding, and unwavering dedication. That’s why I have dedicated my practice to using a form of estate planning we call Life & Legacy Planning, allowing me to guide you skillfully through the decision-making process while looking ahead to proactively avoid issues in the future. 

If you want to make sure your loved ones are always cared for no matter what the future holds, schedule a phone call with me and I’ll share all the details of our Family Wealth Planning Session, which kicks off our Life & Legacy Planning process. 

Is Your Business Making Any of These Simple Employment Mistakes?

As a small business owner, it’s essential to consider potential legal pitfalls that come with managing a workforce. While payroll and workplace policies may seem like less consequential aspects of your business, team member complaints, and workplace violations are one of the top areas where small business owners find themselves in hot water.

Taking a proactive approach by auditing your processes and improving your systems can help you ensure a fair and compliant work environment that steers clear of legal trouble. 

To make sure your business is on a straight path and that your team members are happy and focused, make sure you aren’t making any of these simple employment mistakes.

 

01 | Wage and Hourly Pay Mistakes

Minimum wage issues, overtime, holiday pay, and comp hours can complicate your payroll if you have W-2 employees.  As a result, miscalculating pay due to your employees can have legal consequences and harm your reputation. 

To avoid compensation issues, make sure your payment policies are clear and concise. If you have limitations to working hours, (for instance, you don’t provide holiday pay or overtime) make these policies extremely clear from the very beginning.  

Bold or capitalize any particular restrictions in your employment agreement and handbook, and remind team members of the policy whenever the question of working hours comes up. By being forthcoming with your policies and keeping them top of mind for your team employees will temper expectations and help avoid payroll confusion.

Where possible, hire your team members as salaried employees or contractors on a flat-fee basis rather than as hourly employees. This won’t be possible for every type of role, but if you can, hiring someone as a contractor will help you get the work you need without having to worry about overtime pay or hourly time tracking.

 

02 | Misclassifying an Employee as an Independent Contractor

Misclassifying an employee as an independent contractor might seem like a convenient shortcut, but beware—the consequences can be costly! 

Hiring independent contractors to perform work for you has benefits over hiring W-2 employees. Your business won’t have payroll tax or an obligation to provide contractors with employee benefits. But only certain team members can be treated as independent contractors based on the level of freedom they have to perform their work. 

As tempting as it may be to save on taxes and employee benefits, the misclassification of a team member can lead to hefty fines, back taxes, and legal headaches. Plus, it’s not just about the money—misclassified workers may be denied essential protections like overtime pay and workers’ compensation. 

The best approach? Ensure you properly classify your workers from the start and ensure that every independent contractor has a signed agreement, and that you are paying your independent contractors to their own business entity, as that can provide a safe harbor of sorts. If you do not have a standard independent contractor agreement that you have signed by every independent contractor working for you, contact us to create a template you can use. 

 

03 | At-Will Employment Misunderstandings 

At-will employment is a concept recognized by nearly all 50 states. An at-will arrangement means that either party has the flexibility to terminate the employment relationship at any time, whether the person hired isn’t a good fit after all or the team member decides to take a different opportunity somewhere else.

But here’s the thing. If you do decide to terminate the relationship, always document the reasons behind the termination in writing to add a layer of protection to your business. 

At-will working relationships are the most flexible work terms you can have, but that doesn’t protect you from accusations of discriminatory or retaliatory firing from a disgruntled ex-employee. To avoid this, always document your reasons for the termination in writing.

Record any incidents that the team member had before being let go, such as showing up late or failing to complete work on time. Even if the reason for the termination isn’t based on performance, such as simply needing to downsize your team to fit your new budget, document it and make a note of issues affecting hiring in the company as a whole in your company meetings and expense reviews.

Getting into the habit of documenting your hiring and firing decisions, as well as the company’s condition as a whole will help protect you and your business from any firing accusations that might arise in the future.

 

04 | Not Including “Work for Hire” and Confidentiality Provisions in Your Contractor Agreements

Hiring an independent contractor is a great way to outsource work for your company, but if you aren’t including provisions in your contractor agreements to protect your ownership rights of the work they create, you risk losing ownership of the materials they create for you.

To make sure your intellectual property such as proprietary processes, marketing materials, and artwork belong to your company and not to the contractor themselves, it’s essential to include “work for hire” provisions in your contractor agreement. You also need to include confidentiality agreements and may even want to have your contractors sign a nondisclosure agreement to prevent information about your company from being disclosed to the public.

Including these simple but often overlooked provisions protects your company’s materials from being repurposed or sold to another company or third party by the contractor and ensures you have recourse if a contractor discloses confidential information about your company.

 

Watching Out for You and Your Business

As a business owner, proactively addressing potential employment issues is key to protecting your business’s reputation and keeping your workforce satisfied and productive. But, making sure your business complies with different employment laws and regulations can feel overwhelming.

That’s where I come in as your Personal Family Lawyer®. To make sure every area of your business is set up for success, I work with you to audit your legal, insurance, financial, and tax systems. During this session, we’ll review your current practices, address any concerns, and create a tailored legal strategy that safeguards your business while promoting a positive work environment.

Don’t let employment mistakes hinder your business’s success. Schedule a discovery call with us and let’s pave the way for your business to grow and thrive. 

Don’t Send Your Kids Back to School Without These Documents

As summer comes to a close, and back-to-school excitement fills the air, there is one crucial task that is often overlooked: designating legal guardians for your minor children. Legal guardians are the individuals you entrust with the care of your children if, for any reason, you are unable to do so yourself. 

In the hustle of back-to-school shopping and end-of-season summer fun, it might seem like naming legal guardians for your kids is a low priority, but nothing could be farther from the truth. 

As kids return to school, they’ll spend most of their day in the care of other people – their teachers, coaches, and babysitters. That means that your children will spend most of their time with people who do not have any legal authority to take care of them for more than a brief time in the event you are in an accident or can’t be reached for any reason. 

And, if your kids are going off to college, you’ll no longer be able to make decisions for them or have access to their medical records in an emergency unless your adult kids create Powers of Attorney and Health Care Directives.

 

Don’t Rely on Informal Agreements

They say it takes a village to raise a child, and as parents, you usually have a network of friends or family you feel you can rely on to step in and care for your child if needed. But it’s essential not to rely solely on informal arrangements with relatives or friends to care for your kids if you can’t. 

Whether you are unconscious in the hospital or have passed away, there’s a chance your child could be taken into protective custody by social services until you recover or until a permanent arrangement can be made.

But here’s the thing, the person who ends up taking your child may not be someone your child knows or loves, but a complete stranger in the foster care system. Or, maybe even worse, that person could be someone you never want to raise your kids but who is appointed anyway by a well-meaning court system that doesn’t know what you would want or how you would want your children to be raised.

In addition, if you don’t name legal guardians for your kids you risk creating conflict among family members who want to care for your children and may subject your loved ones to a lengthy and costly court process—an unnecessary burden that can easily be avoided. In fact, not naming more than one guardian is one of the 6 common mistakes people make when choosing a guardian for their kids.

You know your child and your family better than anyone else, and you know who would be the best fit for raising your child if something happened to you. But unfortunately, unless you document your choice of guardian in advance, the decision of who would raise your child if you can’t is ultimately left to a judge who doesn’t know you or your family dynamics.

Instead, naming short-term and long-term guardians for your kids ensures they are always cared for by people you know and trust. 

And, if your kids are off at college, you cannot rely on the fact that you know they’d want you to have access to their medical records and financial accounts if something happened to them. The hospital or banks need official legal documents for you to get access if needed. That’s why we provide all of our client families with young adult planning documents for kids away at college.

 

Comprehensive Protection for Your Child

To make sure your kids are always protected and cared for by people you trust, it’s essential to create a comprehensive Kids Protection Plan®. Every Kids Protection Plan® enables you to name short-term temporary guardians who have immediate authority to care for your children in an emergency and long-term permanent guardians who can raise your children if you are no longer able.  

My Kids Protection Plan® also equips you with emergency ID cards that contain instructions for first responders to contact your child’s guardian if you’re in an accident so they can travel to be with your child right away. Plus, all caregivers, like babysitters and nannies, are provided with precise instructions on how to reach your short and long-term guardians, and that everyone involved in your plan has the necessary legal documents on hand to ensure a smooth process if the need for a guardian arises. 

In this way, not only have you legally named guardians for your kids, but you’ve created an entire safety plan to ensure they are always cared for in the way you’d want in any situation.

And for your college-bound kids, it means having young adult planning documents in place like Powers of Attorney and Health Care Directives that allow you to access your kids’ accounts or make medical decisions for them if they become incapacitated by an illness or injury. 

 

A Thoughtful Approach for Your Peace of Mind

As your Personal Family Lawyer® firm, we are dedicated to securing the well-being of your children under all circumstances. As the back-to-school season approaches, don’t overlook this essential homework for parents – naming legal guardians and creating your own Kids Protection Plan®.  

The first step is to go through our unique planning process to choose the right plan for you, your kids and everyone you love. We begin with a Family Wealth Planning Session™. During the Session, I get to know your family on a personal level to understand your family dynamics and your assets. I’ll share the law with you, and together we’ll look at exactly what would happen to your assets and your loved ones if something happened to you right now.

From there, we choose the right plan for you – at the right budget and that achieves your personal objectives – based on the specifics of your family situation. This ensures your kids and family are cared for and protected no matter what happens, so you can embrace the excitement of this new academic year with peace of mind.

Should I Operate as a Sole Proprietor or a Corporation?

As a small business owner, there were a lot of decisions you considered when you started your business, from what services to offer and where your business would be located, to what color your logo should be and what font you’ll use. You also had to choose what kind of entity your business would be, and for many first-time business owners, opening shop as a sole proprietor seems like the easiest choice to get started.

But if you’re wondering how your selected business entity affects your taxes and income, it’s a good idea to consider converting your business to a corporation. 

In this week’s blog, I’m breaking down the benefits of incorporating your business and considerations for the best time of the year to make the switch.

 

Make a Name for Yourself, Literally

If you recently started a business, you may think you’re not earning enough money to justify organizing your business as a corporation. But, there’s a psychological benefit to incorporating your business even before you need the liability and tax benefits, which is that you are establishing yourself as a business, and making a statement to yourself, future clients, and the universe that you are a business owner — and that is a critical part of your future success.

Incorporating your business not only gives you certain benefits that sole proprietors don’t get to enjoy, but it also helps customers, investors, and associates take you seriously as a company. People are more likely to get involved with companies they trust, and even if your company is new, being incorporated gives the impression that your company is built on a solid foundation.

Incorporating is also a great way to light the fire under your own feet to learn all that you can about the benefits and tools available to you as a corporation, as well as the requirements for maintaining a corporation the right way. Even if your business is only made up of a few people, having an official corporation designation will let the world know that you’re serious about your business, which will support your business’s future growth.

 

Protect Your Money and Home From Debts or Lawsuits Against Your Business

As a sole proprietor, you literally put everything you own on the line for your business, and I don’t just mean your hard work and dedication. As a sole proprietor, you are personally responsible for any accidents or liabilities that occur at your business. And if you’re sued because of an injury or a broken contract, your personal savings and even your home are at risk.

When you own your business as a corporation, you can take out loans and conduct business in your business’s name rather than your own. Incorporating your business and keeping your business’s assets separate from your personal assets limits your liability for any debts or lawsuits your business faces. As a corporation, creditors, clients, and other sources of potential lawsuits can go after the business’s assets, but not your personal assets, so long as you keep your business’s finances separate from your own.

 

Save Money on Taxes and Decrease Audit Risk

Another perk of running your business as a corporation is the tax treatment. Especially if you elect to be treated as an S Corporation (the most popular corporation type for small businesses), you’ll benefit from an ability to reduce income tax by paying yourself a reasonable salary from your business (which is subject to payroll tax) and taking owner’s draws from the business, which are not subject to payroll taxes.

Plus, while we cannot guarantee this, we understand that you are significantly less likely to be audited by the IRS as a corporation than as a sole proprietor. In fact, we’ve heard that a sole proprietor is three times more likely to be audited! That’s because Uncle Sam is more suspicious of sole proprietors who might find it easier to brush income under the rug compared to more regulated corporations.

 

Take Steps Now to Incorporate in January

If you’re thinking of incorporating your business, the best time to do so may be next January, depending on what your revenue will be this year. While it seem strange to be thinking about January in the middle of Summer, if you’re thinking of incorporating your business, the best thing to do is prepare now so you don’t have to rush come the end of the year, and so you can begin enjoying the psychological benefits of professionalizing your business now, even if you do not incorporate until January. 

What you can do now is to begin preparing in advance by thinking through the roles you want in your company and the necessary documents you’ll need to make informed decisions, such as creating or updating your current profit and loss statements and business plan. 

Then, work with us to organize the other pieces every well-organized corporation needs, such as your Articles of Incorporation, bylaws, and employee handbook. Incorporation takes some legwork, but creating your corporation the right way from the start will make the transition smooth and easy so you can do what you do best – run your business!

If you want to minimize your liability and position your business for major growth, begin by sitting down with us. As your Personal Family Lawyer® firm, we can set up your business incorporation and establish a sound Legal, Insurance, Financial, and Tax system to support your business’s future success.

Vacation Ready: Essential Legal Preparations for a Worry-Free Getaway

Vacations are a time to relax, unwind, and create beautiful memories with your loved ones. But before you set off on your adventure, it’s essential to ensure that your legal affairs are in order so you can fully relax during your travels. 

Can’t imagine doing one more thing before you take some much-needed time away? 

Don’t worry!  As your Personal Family Lawyer®, I’m here to guide you through these important tasks, so you can enjoy your vacation worry-free. Plus, these steps only take a little time to complete and can provide you with peace of mind knowing that you have made proper arrangements if the unexpected happens to you or your family while you’re away.

Let’s dive in! (No pool puns intended!)

 

Create Powers of Attorney

Whether you’re traveling overseas or just a few hours away, it’s crucial to have Powers of Attorney in place for both health care and financial matters before you leave. 

A Healthcare Power of Attorney designates someone you trust to make medical decisions on your behalf if you become incapacitated during your vacation. While no one plans to become incapacitated, a slip on the diving board, an injury while boating, or a parasite caught from local cuisine (eek!) can happen.

Similarly, a Financial Power of Attorney empowers a trusted individual to manage your financial affairs for you. With a Financial Power of Attorney, you can give someone the authority to manage your investments or pay your bills away while you’re gone, or just have it as a safety net in case you become incapacitated or can’t be reached while traveling. 

By having these documents prepared ahead of time, you can ensure that no matter what hiccups you run into on your travels, your wishes for your health will be respected and your financial affairs will be handled according to your instructions, even when you’re away.

 

Nominate Permanent Legal Guardians for Your Kids

As a parent, naming a Permanent Guardian for your children is one of the most important decisions you can make. While it’s a difficult topic to consider, designating a Permanent Legal Guardian ensures that your children will be cared for by someone you trust if the unexpected happens while you’re on vacation. 

It’s a good idea to take a little time to choose someone who shares your values, loves your children, and is willing to take on the responsibility of raising them. However, anyone you trust to raise your kids is a better choice than leaving the decision up to a judge who doesn’t know you or your family. 

By documenting your chosen Guardian, you make sure your children will be cared for by someone who loves them and knows them if the unthinkable happens to you, and you can always update your choice at any time in the future as your children and their relationships change over time.

 

Designate Short-Term Guardians for Your Kids

In addition to naming a Permanent Guardian, it’s equally crucial to designate Short-Term Legal Guardians for your children. Short-Term Guardians step in when the Permanent Guardian lives far away or in case of a short-term, immediate emergency. 

You can give multiple people the authority to be your child’s Short-Term Guardian, including relatives, neighbors, or nannies. When planning a vacation, it’s a good idea to name any adults who your child will be staying with while traveling with you or staying home.  

For example, if your child is spending the week at their grandparents’ house, you should name their grandparents as Short-Term Guardians and give them medical Power of Attorney for your minor child. If your child is traveling with you, naming any adult travel companions as Short-Term Guardians and giving them medical Powers of Attorney is a wise choice in case a Guardian or Medical POA is needed for your child while on your trip.

Discuss this arrangement with the individuals you’ve chosen and make sure they’re aware of their roles and responsibilities. By establishing Short-Term Guardians and Medical POAs, you can ensure that your children are well-cared for in the event of an emergency.

 

Tell the People You Trust About Your Plans

Last but not least, make sure that the people you trust know about your travel plans and the preparations you’ve made, including where you’ll be staying and how to get in contact with you. 

Let them know about any legal documents you’ve put in place, and how to access them if needed. Share this information with your chosen Guardians, family members, and close friends. By keeping everyone in the loop, you can ensure that your wishes are known and your loved ones can act swiftly and effectively in case of an emergency. 

You should also provide your loved ones with my contact information in case they need copies of your Powers of Attorney or kid’s Guardianship documents or need them delivered digitally.

 

Estate Planning for The Life (And Vacation) You Deserve

As you pack your bags and prepare for your vacation, don’t overlook the importance of handling your legal affairs. Taking the time to create Powers of Attorney, Permanent and Short-Term Legal Guardians for your children, and communicating your plans to trusted individuals can provide you with peace of mind and save your family incredible stress if there’s an emergency while you’re away.

To ensure that these documents are prepared correctly and in accordance with your state’s laws, I encourage you to contact me, your Personal Family Lawyer®. I start by guiding all of my clients through a unique process I call the Family Wealth Planning Session. During the Session, I get to know you and your family on a personal level and review exactly what you own and who you love to make sure everything and everyone is protected and cared for in the best way possible when you pass away or if you become incapacitated. 

And if we find that things wouldn’t go the way you wanted if something happened to you, I can help you create a custom estate plan that leaves no rock unturned.

Don’t let the joy of vacation be overshadowed by the “what if’s.”

Passing the Torch: How to Inspire Your Kids to Take Over the Family Business

The dream of passing on your business to your children and witnessing the legacy you’ve built continue to flourish is a powerful one. However, inspiring your children to embrace the idea of taking over the family business can present its challenges, and your children may even exhibit resistance to the notion altogether.

Fret not. While you can’t control how your children feel about your business, there are effective ways to inspire them and help them see the value of being a business owner and carrying on a family legacy. With these strategies, you can empower them to become the next leaders of your family business and set your company up for a smooth succession transition when it’s time to retire.

 

Show Your Kids That You Love What You Do

First things first. It’s hard for someone to take an interest in something if they only hear negative comments about it. Of course, there are going to be many work days that are long, stressful, or tiring, but framing your work as something that gives you a sense of accomplishment rather than fatigue will help pique your children’s interest.

You don’t need to completely hide negative feelings about your work, but keeping a positive attitude about your business when talking about it around your children can go a long way in inspiring them. 

For example, if you come home exhausted after a long day, say something like, “Wow, am I tired after today. But we were able to finish the project by our deadline and wow does that feel good.” 

By framing challenges as a positive experience, you’ll help your children to appreciate work and the satisfaction they’ll gain from overcoming obstacles and leading a team.

In addition, give your children the opportunity to hear positive feedback from others in your company as well. Invite your kids to company parties or team dinners, and give them the chance to mingle and observe on their own. By seeing you and your team interacting in a positive way and having fun, your child will make the connection that your business is a source of joy in your life.

 

Introduce Your Kids to The Business Early On

Help your children gain a sense of ownership and independence by providing them with valuable hands-on experience in your business from a young age. Take the time to explain the inner workings of your company, showing them how things operate and involving them in decision-making processes. This active participation will not only foster their curiosity but also empower them to contribute their own ideas and perspectives.

To further ignite their interest and sense of ownership, consider assigning age-appropriate tasks or projects that align with their individual interests and capabilities. Whether it’s organizing files, assisting in customer service, or engaging in other relevant activities, these responsibilities will provide them with a personal connection to the business and instill a sense of responsibility and pride in their contributions.

Even if your children aren’t old enough or interested in working as an employee yet, bringing them into your office and showing them the day-to-day tasks you do will show you appreciate their involvement. Keep communication open around the dinner table or on car rides about things happening in your business and encourage your children to provide their input.

By actively engaging them in these ways, you are nurturing their growth as future business leaders and will likely cultivate a passion for the family business.

 

Let Someone Else Be Their Boss

If your children are at an appropriate age, offer them a position at your company, but keep their expectations humble. Start your child in an entry-level position like you would any other newcomer. This will keep your child grounded while also assuring employees that you won’t show favoritism to your own family members.

Have your children rotate through the different departments or tasks of your company so they can gain skills and knowledge of each one. 

And while it might be tempting to oversee and mentor your child yourself (after all, you know your business best!) give the role to someone else. By having your child report to another seasoned employee, you give them the space to work and learn independently without feeling like you’re standing over their shoulder or pressuring them to perform.

This also gives them the chance to form meaningful mentorships with other valuable members of your team and improve their own independence and responsibility because they know they won’t be able to cut corners or avoid discipline if they aren’t reporting to their parent.

 

Give Them Space to Have Other Experiences

Finally, encourage your kids to have experiences outside of the family business. While it’s natural to want your children to follow in your footsteps, it’s important to recognize that they have their own dreams and goals. 

Encourage them to pursue their own interests, whether it’s in sports, arts, or any other field. Support their passions and provide opportunities for them to explore and grow outside of the family business.

By giving them the freedom to pursue their own paths, you allow them to develop a sense of identity and purpose beyond the family business. This will also help them gain a broader perspective and a range of skills that can be valuable in any endeavor they choose to pursue.

Ultimately, inspiring your kids to take over the family business requires a delicate balance of encouragement, exposure, and allowing them to chart their own course. By showing your love for what you do, involving them in the business, providing them with diverse experiences, and supporting their individual aspirations, you can create an environment that fosters their interest and empowers them to become the next generation of business leaders in your family.

 

Planning Your Business Succession Starts Today

While it might seem like the day you turn in your office keys is far in the future, the most effective succession planning for your business begins today.

As your Personal Family Lawyer®, I know that passing on a business is more than just selling your company to the highest bidder. It’s about instilling your values and your passion into the next generation of leaders over time and inspiring your own family to become a part of your legacy.

If you aren’t sure how to have conversations with your children about your business or your goals for its succession, give me a call.  My passion is supporting business owners to achieve not just their financial goals, but their personal and lifestyle goals as well. 

Schedule a 15-minute call to learn more about how we can help. I can’t wait to help you inspire your family to get involved with your business in a healthy way.

Why “Just a Will” Is Never Enough

When you think of estate planning, a Will is usually the first thing that comes to mind. In fact, most people who contact me tell me they don’t need anything complicated for their estate- just a Will. Indeed, Wills have a reputation as the number one estate planning tool and can be seen all over TV shows and movies, from the dramatic “reading of the Will” (which rarely happens in real life) to characters plotting how best to defraud their billionaire uncle’s Will in order to inherit his lavish estate.

But although Wills are a key part of your estate plan – and a big part of the movies – relying on a Will alone won’t solve your estate planning needs – no matter what Hollywood says. Instead, using just a Will to plan your final wishes is likely to leave your loved ones with an expensive mess that won’t distribute your assets in the way you intended.  

What’s more, a Will alone won’t ensure that you’re taken care of in the event of incapacity, and contrary to what you might think, relying on only a Will actually guarantees that your family will need to go to court when you die.

If you don’t want to leave your family with a mess if something happens to you, it’s important to know how a Will works and when it can be used to benefit you and your family. 

 

What Exactly Is a Will and How Does it Work?

A Will is a written document that directs how the creator of the will wants their possessions disposed of after their death. The creator of the Will is called the testator or testatrix. In your Will you can name someone you trust to manage the distribution of your assets, called your personal representative or executor. You can also write out what you want to have happen to your property, what charitable gifts you want to make, and who will receive them.

A Will can be a complex document or a very simple document. You can even write your Will on a napkin if you really want to!

With that said, a Will isn’t a legally binding document unless it’s executed according to the laws of the state where you reside. In general, you need to sign your will in front of a witness, and sometimes a notary. 

Some states have laws that allow you to create a Will that isn’t witnessed at all so long as it is handwritten by the testator themselves. But because every state has different laws for the creation of a Will, it’s important to consult with an experienced estate planning attorney (like me) to create your Will rather than trying to write your own.

 

A Will Requires Probate Court

One of the biggest estate planning myths I hear from clients is the belief that by having a Will, their loved ones won’t need to go to court after they die.

This is sadly the opposite of the truth.

If you use only a Will as your main method of estate planning, you are actually guaranteeing that your loved ones will go to court after you die because a Will is required by law to go through the court system called probate before any of your assets can be distributed. In fact, a will is only effective within the probate court.

Once your Will is admitted to the court after your death, your personal representative or executor will be given official authority to move your assets under the court’s supervision. This ensures your property is distributed according to your wishes and that the court can intervene if there are any disputes over who gets what.

While court oversight can be helpful if there is any confusion or disagreement about your estate, the probate process is long and expensive. For very small estates the process may take about 6 months, but for most estates, the process can take 12 – 18 months or sometimes even more. 

Due to the length and complexity of the process, going through probate can easily cost your family tens of thousands of dollars. Some states even require that probate cost a certain percentage of your estate’s value.

In addition, because probate is a public court proceeding, your Will becomes part of the public record upon your death, allowing everyone to see the contents of your estate, who your beneficiaries are, and what they’ll receive. Unfortunately, it’s not uncommon for scammers to use this information to try to take advantage of young or vulnerable beneficiaries who just inherited money from you.

 

A Will Does Not Apply to All of Your Assets or All of Your Needs

Although movies make it seem like you can and should leave all your property to your loved ones through your Will, a Will actually only covers certain items of your property, including any property owned solely in your name and any property that doesn’t have a beneficiary designation.

A Will does not cover property co-owned by you with others listed as joint tenants or owned as marital property, meaning you can only give away your share of any property you own with others, not the entire property.

Any assets that have a beneficiary designation, like retirement accounts or life insurance, are not controlled by your Will at all but will instead be paid out to the person listed as your beneficiary on each account. Because of this, it’s especially important to make sure your account beneficiaries are up to date.

In addition, a Will has no power until you die, so you can’t use it to give someone you trust the power to make decisions for you if you’re incapacitated due to illness or injury. Even if you named someone in your Will to manage your estate or watch over your children, that person will have no authority to do so while you’re alive. 

 

Don’t Just Get a Will, Get an Estate Plan

With all the issues that using a Will for estate planning can create, you might be wondering why a Will is even used at all. The thing is, a Will isn’t the one-and-done solution that most people are led to believe by TV shows and even some lawyers.

Instead, a Will should be used as a piece of your overall estate plan, not as the entire plan itself.  And ideally, your Will shouldn’t even need to be used at all. 

How can that be? Well, an estate plan isn’t just one or two documents – it’s a range of tools and coordinated planning that makes sure everything and everyone you love is taken care of.

And by using better tools like a Trust instead of a Will as your main tool for estate planning, you can direct what happens to your property while avoiding probate court entirely and ensuring the people you trust can step in and manage your assets immediately if you become incapacitated because of an illness or injury. 

In addition, any assets you put in the name of your Trust are entirely private, meaning the court and the public will never know what you own or who will inherit it after you’re gone. 

When using a Trust-based estate plan, you’ll still have a Will, but your Will should only need to serve as a backup and safety net to make sure that any assets that are accidentally left out of your Trust at your death are added back into your Trust.

And, even more important than both a Will and a Trust, is an inventory of your assets so your family knows what you have, where it is, and how to find it when you become incapacitated or die. Without an inventory of your assets, your family will be literally lost when something happens to you. A comprehensive inventory updated throughout your lifetime is a critical, and often overlooked, piece of an estate plan that is not “just a Will”. 

If you’re ready to see how having an estate plan for your family is different than having “just a Will,” schedule your Family Wealth Planning Session™ today. During the session, we’ll review an inventory of everything you have and everyone you love, and together look at what would happen to your possessions and loved ones when something does happen.  Then, I’ll help you develop a plan to make sure your loved ones are taken care of when you can’t be there and that your plan works for you, and for them, exactly as you want it – at your budget and within your desires. 

Most importantly, I don’t just create documents – I guide you and your family through every step of the process, now and at the time of your passing. I even help all of my clients pass on something more valuable than their money – their values, stories, and wisdom – through a Family Legacy Interview.