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Check out this great source for added information about Estate Planning and Business Law!
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Martin Luther King, Jr. Day |
Our office and courts will be closed in Observance of Martin Luther King, Jr. Day, Monday, January 17, 2022.
We will resume regular office hours, Tuesday, January 18th, 2022.
Have a good holiday weekend.
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Tips to an Annual Review of
Your Estate Plan
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You hired an attorney, you went through all the discussions and decisions, you invested in your future, and you obtained an Estate Plan… now what? Estate Planning is not a once in a lifetime event. Your life changes. Perhaps you bought a new house, had more children or grandchildren, opened new accounts, or are no longer on good terms with your trustees. Your Estate Plan needs to be amended to change with you. That does not mean you have to amend your Estate Plan every year, but it does mean you should review it.
If your Estate Plan has been gathering dust on a shelf and you have not looked at it for years, now is the is the perfect time to review!
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Office Shenanigans and Adventures |
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Wishing All
a Happy New Year!
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Estate Planning and Business Law Topics of Discussion |
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The Process of Modifying your Will or Trust |
The modification of a will or trust is necessary when there are significant changes in the life of the creator of the instrument. Amending a trust is typically a straightforward process. A trust may be modified to include additional beneficiaries, appoint a different trustee, or alter the disbursement of property assets. This is accomplished by filing a modification in writing called an amendment to the trust. The amendment to the trust describes changes and is signed and dated by the settlor. A revocation of a trust can be achieved by restating the trust in its entirety to supplant the revoked trust.
Similarly, a testator can amend or revoke a will any time before death so long as he/she is deemed mentally competent to do so. A modification to a will is referred to as a codicil, and it must comply with legal requirements similar to those of the original will. In the event the amendments to the will are substantial, a testator should consider executing an entirely new will that explicitly revokes the first will. This may occur if the testator undergoes a major life event, such as a divorce, remarriage or a measurable change in financial status. If the testator does not amend the will to reflect major life changes, the courts will abide by the old will in making distributions, except where the law supports a particular amendment.
There are several circumstances in which changing your will is important, if not necessary, for the testator.
Death of a beneficiary. If the decedent’s family member dies, then it is likely that the decedent will need to select an alternative beneficiary.
New state of residence. When the testator changes his/her residence to another state after the last will was executed, it is important to consult the laws of the new state of residence to verify the validity of an out-of-state will.
Change in marital status. In the event of a divorce, remarriage, or death of a spouse, an amendment of the will is necessary to effectuate the distribution of property to beneficiaries.
Change in value of assets. If a will was originally drafted years ago when the value of the estate was considerably smaller, it should be amended to include the additional assets.
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Legal Documents Every Business Should Have |
Every business executes specific agreements and contracts depending on the nature of its business. For example, technology companies with highly proprietary information typically focus on their intellectual property and confidentiality related agreements. Service-based professionals typically enter into engagement agreements outlining the scope of their services and fees. Most businesses maintain certain basic agreements that are instrumental in efficiently operating the business and preventing future legal disputes. Some of these agreements are highlighted below.
Entity Agreements. An entity agreement is one of the first agreements that a business executes. Whether you are forming a corporation, limited liability company or partnership, you will need an accompanying agreement that conforms to your entity. A shareholder, operating, or partnership agreement designates the responsibilities of each individual and assigns the percentages of profits and losses among the parties. In addition, these agreements contain protocols for conflict resolution, death or incapacity of a partner or member, or dissolution of the entity.
Sales or Service Contracts. Sales and service agreements describe what the business will provide with respect to services or products. For a service-based business, this contract specifies the terms of the services that the company offers to the customer (for example, accounting, legal, manufacturing, or technology services). For a business that sells products, the contract designates the terms of the sale, including payment options and warranties.
Employment Contract/ Independent Contractor Agreements. A contract of employment that specifies salary, wages, benefits, and paid time off can help prevent disputes between employers and employees. Independent contractor or vendor agreements are also necessary for businesses that rely on the services of outside vendors, consultants or short-term employees. It is important to draft an independent contractor agreement that identifies the service provider as an independent entity, rather than an employee. Misclassifications of employment, even accidental or unintentional, can have significant penalties and legal consequences for business owners.
Release of Liability. Businesses can draft a release of liability contract to protect themselves from liability for injuries or damages incurred by a customer or other individual who consumes their product or receives their services. Keep in mind that these agreements are not always enforceable. Nevertheless, if you have a release in place that customers are aware of, it can be advantageous in the event of a lawsuit.
Non-Disclosure Agreement. A Non-Disclosure Agreement (NDA) requires employees or workers to keep certain employment-related information confidential. NDAs are particularly relevant in proprietary industries where employers want to ensure that employees or independent contractors do not divulge trade secrets, client information or other data. Some states allow Non-Compete Agreements (NCA) to prevent an employee from acquiring employment in the same area for a designated time and within a certain distance from the former employer. NCAs, however, are generally not enforceable in California.
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