Need for Estate Planning

Need for Estate Planning

I do not intend to be Chicken Little with this post. However in 2011 unless Congress acts to extend the estate tax credit all estates over $1,000,000 in value will be taxed at 55% of the entire value. This means that many people who previously would have had few estate tax issues presently need to examine planning options to protect their assets for their heirs.

That means that If planning has not already begun, the clock is ticking. What do you need to do in order to be ready?

The first thing you need to do is determine what your net worth is. Compile your account statements as well as your real estate holdings. The combination of these two basic totals will give you an initial basis of your basic net worth. If you are a business owner a valuation of your interest n the business will be necessary to include in the calculation. Once your net worth is established it is imperative to sit with an estate planning attorney to determine how to preserve your assets

When you sit with your estate planning attorney make sure you bring with you your net worth documentation so that the planner may review the assets to determine what else may be included in the calculations. That will make sure all information is available to make the best plan for you and your family ensuring the assets you worked hard to obtain will be able to be there for your children.

The estate planning attorney will explain the various options for you. They will start talking about different trust vehicles that may fit your needs. Listen carefully and understand certain trusts will divest you as the earner of this income of control of the assets. Others will allow you to maintain control but may lose certain benefits to you. Each individual’s circumstance is extremely specific so meet with your planner to best determine your need and the right planning to protect your assets as well as ensure your family is able to enjoy what you have worked hard to attain rather than the US government.

Todd Engel
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http://www.engelatty.com
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Equine Law: Am I Just Horsing Around?

One of my favorite areas of practice is my equine law specialty. No, I am not just horsing around!

Since 1977, my family has owned and raced thoroughbred horses. We have been fortunate enough to race horses throughout North America and presently run horses at Aqueduct. We have raced at tracks from Oaklawn Park to Woodbine in Toronto. We have raced most frequently in the New York circuit. It is a wonderful experience and nothing is quite as thrilling as watching your horse running down the stretch going for the finish line. The question is whether a horse needs a lawyer?

No, the horse doesn’t need a lawyer, but others certainly do. I represent owners with respect to setting up the legal entities that make sense for their needs There needs to be agreements by and between the partners. There needs to be corporate resolutions in order to establish the business entity properly. Remember, while horse racing is a sport, and can be a lot of fun, the ownership of horses is intended to be a business.

If the business is successful, then tax issues are at play. Income taxes, sales tax, and other tax issues are continuously changing and need to be evaluated. The stimulus bill just signed by President Obama has created excellent tax advantages for horse ownership including depreciation of up to $250,000 for horses put into service during 2009. Sales tax issues can be reviewed and assessed dependent upon the state where a sale takes place.

Should a horse become extremely successful, there are additional legal issues to look at. These center around stallion syndication and arrangement of stallion servicing. Negotiating arrangements with the various farms where the stallion is to stand is necessary. Drafting agreements between the owner of the stallions and the owners of the mares is also required.

The racing side also has its need for equine attorneys. Licensing issues for owners, trainers and jockeys are an integral part of equine representation. Should a trainer or jockey have to serve a suspension, quality representation is necessary to protect their rights. Negotiation with the State Racing and Wagering Board can keep a trainer or jockey from having to serve a suspension and therefore keep the trainer or jockey from losing necessary income. Should a hearing be necessary, the lawyer can conduct the examination of witnesses and effectively represent a trainer, owner or jockey in front of the Board.

Horse racing is a thrilling sport. Proper assistance can make sure you remain in the game for the long haul.

Todd Engel

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Legal Planning in a Different Economy

When I look around my community, I see a totally new and evolving economic paradigm. Sure there are layoffs everywhere. Circuit City closes and there are 30,000 fewer jobs. Magna may close their local plant eliminating what at its height was 8,000 jobs in the automobile industry. Five years ago, who would have ever thought that Lehman Brothers would no longer be in existence? If you ask me, it is a time for opportunity to grow and develop a business.

Globally the economy is shrinking. This is no surprise from picking up the newspapers. However, that offers an opportunity for an enterprising person to open and develop a new business. In my view, the old economy of manufacturing and big business is no longer viable in today’s marketplace. The manufacturing is being accomplished in other countries where the costs of doing business are less. These only makes sense in a capitalistic society, if I can make it cheaper and sell it on the marketplace, then why do I need to pay the overhead, taxes and other costs of manufacturing in this country. So, how are we going to survive and what can a lawyer do to help?

The best way to reinvigorate the economy in times such as the now is to invest in ourselves and be creative. For some, that means thinking outside the box of what they know to look for employment in new areas. For others, it is to examine what their strengths are and to start their own business. My thinking is the small to medium sized businesses are going to drive this economy forward because those are the businesses that are going to roll up their sleeves and move us forward through creative work. What industry that is in is to be determined. However this is an exciting time to be involved in legal representation of small closely held businesses.

How does a lawyer help you? A good business lawyer can help in each facet of business planning. Whether it is setting up a good quality business plan., determining the right entity to begin this venture with, whether it is a solo proprietorship, general partnership, limited liability partnership, or corporation, a lawyer can guide you through the process and help fill out the appropriate documentation. A lawyer will work with you to project financing needs and developing strategies for obtaining startup capital. A lawyer can advise as to the tax implications of owning versus renting your business location and other depreciation techniques. Use a lawyer at the beginning who you trust, and it can be mean money saved down the line.

Todd Engel

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Law Office Technology Part 2

My last blog post dealt with some basic technology in order for a practice to hit the ground running. We will now discuss certain additional applications to make running an office more seamless as well as effective.

As I said previously, Microsoft Outlook is the email calendar and task tool that has the market dominance. This is because it is bundled with Microsoft Office. I use it to keep my contacts as well as my calendar and my emails. While stability can be an issue, it is the industry standard. Google has an online calendar system that is pretty good, however being that it is unsecure, I would not recommend it for law office calendar management due to confidentiality issues.

Clients today expect and deserve feedback as quickly as possible. That is one of the many reasons smartphones have become ubiquitous with attorneys. What an individual looks for in a smartphone is an ability to synch with your email, contacts and calendars. There are many flavors, whether it is the Iphone, the Blackberry or the Palm or variations on their theme. The key to me is to be able to have the information not only at my desk but also at my fingertips when I am out of the office.

Document assembly software is important in making sure you don’t have to reinvent the wheel. When your practice has developed a niche, use the appropriate software to generate repeat documents. Hotdocs is a great example of this. I also use Drafting Libraries for various documents. The quality of the document produced is quite good and there is certain customization and flexibility which is important.

Every lawyer wants to be paid for what they do. Therefore invest in a good time and billing package that can be utilized both by you and your assistant. Ideally it should feed into your phone/PDA so that you can quickly capture time outside the office. You should be able to enter fees quickly and easily. You should be able to set whether you are billing on an hourly basis, flat fee basis or contingency fee. You should ideally be able to combine this with a practice management suite which sets forth a conflict search. Try demos of these products, there are many and again, different people like different programs.

Technology is constantly changing and evolving and lawyers have to stay current to best serve our clients. Join the technology group of your local bar. Join the ABA Law Technology section. Read and learn what you can but remember don’t use something without trying it first.

Todd Engel

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