Frequently asked questions.
We understand that legal matters can raise many questions. Below are answers to some of the most common questions we receive about estate planning and business law. If you don't find the answer to your question here, please don't hesitate to contact us.
Estate Planning FAQs
When should I start estate planning, and what happens if I don't have a will?
You should start estate planning as soon as you have assets you care about or people you want to protect - which for most people means in their twenties or thirties, especially after major life events like marriage, having children, buying a home, or starting a business.
If you die without a will (called dying "intestate"), the state decides who gets your assets according to predetermined formulas that may not reflect your wishes. Your spouse and children will likely inherit, but the specific percentages depend on your state's laws. More importantly, without a will, the court will appoint someone to manage your estate and potentially choose guardians for your minor children - decisions you should be making yourself.
The process also becomes more expensive, time-consuming, and stressful for your loved ones when there's no clear plan in place. Even a basic estate plan can potentially save your family thousands of dollars and months of legal complications during an already difficult time.
What's the difference between a will and a trust, and which do I need?
A will is a document that directs how your assets should be distributed after you die, names guardians for minor children, and appoints someone to handle your estate. However, wills must go through probate - a court process that can take months or even years and becomes part of the public record.
A trust is a legal arrangement where you transfer ownership of assets to the trust, which then manages and distributes them according to your instructions. Trusts can operate during your lifetime and after death, often avoiding probate entirely. They also provide more privacy and can offer greater control over when and how beneficiaries receive assets.
Most people benefit from having both. A will covers anything not in your trust and handles guardianship decisions, while a trust manages your major assets and potentially avoids probate. The right combination depends on factors like the size of your estate, your family situation, privacy concerns, and your goals for asset distribution.
Generally, if you have significant assets, own property in multiple states, have minor children, or want to maintain privacy, a trust-based plan may be worth considering alongside a will.
How much does estate planning typically cost?
Estate planning costs vary significantly based on the complexity of your situation and the documents you need. A basic estate plan represents a meaningful investment, while comprehensive plans with trusts and advanced strategies will naturally cost more.
Several factors influence pricing: the size and complexity of your estate, whether you need simple wills or more sophisticated trust structures, the number of beneficiaries involved, business interests, and any special circumstances like blended families or children with special needs.
We believe in transparent pricing and will provide you with a clear estimate after understanding your specific needs during our initial consultation. Many clients find that the investment in proper planning is modest compared to the potential expenses, delays, and complications their families could face without a solid plan in place.
We're happy to discuss different planning options that can fit various budgets while still providing meaningful protection for you and your loved ones.
How often should I update my estate plan?
We generally recommend reviewing your estate plan every three to five years, but life events often trigger the need for updates sooner. Major changes like marriage, divorce, births, deaths, significant changes in financial circumstances, or moving to a different state should prompt an immediate review.
Tax laws and estate planning regulations can also change over time, potentially affecting the effectiveness of your current plan. Additionally, your goals and family dynamics may evolve - children grow up, relationships change, and your priorities may shift.
Some clients prefer annual check-ins to ensure everything remains current, while others may go longer between formal updates if their situations are stable. The key is staying proactive rather than reactive. We're always available to advise you on whether changes in laws or your circumstances warrant plan modifications.
What happens to my digital assets and online accounts when I die?
Digital assets - including social media accounts, email, cryptocurrency, digital photos, online banking, and subscription services - are becoming an increasingly important part of estate planning. Without proper planning, your loved ones may struggle to access or manage these accounts.
Many online platforms have their own policies for deceased users' accounts, which may not align with your wishes. Some accounts can be memorialized, others deleted, and some transferred to family members, but each platform has different requirements and procedures.
We can help you create a comprehensive digital asset inventory and include appropriate provisions in your estate plan to address these accounts. This might include designating digital executors, providing access instructions, and ensuring your estate planning documents address both the legal and practical aspects of digital asset management.
It's important to keep this information secure but accessible to your chosen representatives when needed.
Business Law FAQs
What type of business entity should I choose (LLC, Corporation, etc.)?
The right business entity depends on several factors, including your business goals, tax situation, liability concerns, number of owners, and plans for growth or investment. Each structure has distinct advantages and drawbacks.
LLCs offer flexibility in management and taxation while providing personal liability protection. They're often ideal for smaller businesses and professional services. Corporations provide strong liability protection and can be better for businesses seeking outside investment or planning significant growth, but they come with more formalities and potential double taxation (though S-Corporation elections can help with tax efficiency).
Other factors to consider include your state's specific laws, whether you'll have business partners, your comfort level with corporate formalities and record-keeping requirements, and your long-term exit strategy.
We work with you to understand your specific situation and goals, then recommend the entity structure that best fits your needs. We can also help you understand how your business entity choice integrates with your overall estate and tax planning strategies.
What essential documents does my business need from day one?
Every business needs certain foundational documents to operate legally and protect the interests of its owners. The specific documents vary by entity type, but most businesses should have their formation documents (Articles of Incorporation or Certificate of Organization), operating agreements or bylaws that govern how the business operates, and proper tax elections filed with the IRS.
Beyond the basics, businesses typically need contracts for common situations - employment agreements, client or customer contracts, vendor agreements, and potentially non-disclosure or non-compete agreements. You'll also want to consider liability waivers if appropriate for your industry.
Banking resolutions, insurance policies, and proper record-keeping systems are also crucial from the start. If you have business partners, buy-sell agreements can prevent future disputes by establishing what happens if someone wants to leave or circumstances change.
We help new businesses identify the essential documents for their specific situation and industry, ensuring you have the legal foundation needed to operate confidently while avoiding common pitfalls that can create problems down the road.
How can I protect my personal assets from business liabilities?
The primary way to protect personal assets is by choosing the right business entity structure and maintaining proper separation between your business and personal affairs. LLCs and corporations can provide a "liability shield" that generally protects your personal assets from business debts and legal claims.
However, this protection isn't automatic - you must respect the entity's separate legal existence. This means keeping separate bank accounts, maintaining proper corporate records, avoiding mixing personal and business expenses, and following required formalities for your entity type.
Additional protection strategies might include adequate business insurance coverage, professional liability insurance if applicable, and in some cases, more sophisticated asset protection planning using trusts or other legal structures.
It's important to note that this protection has limits. Personal guarantees on business loans, professional malpractice, and situations where you've personally engaged in wrongful conduct can still expose your personal assets. We help you understand both the protections available and their limitations, so you can make informed decisions about your business structure and additional safeguards.
When do I need to update my business documents?
Business documents should be updated whenever there are significant changes to your business structure, ownership, or operations. Common triggers include adding or removing owners, changing ownership percentages, bringing in investors, major changes in business direction or services, and updates to key personnel or management roles.
Legal and regulatory changes may also necessitate updates to your agreements and policies. Additionally, as your business grows and evolves, your initial documents may no longer reflect your current needs or provide adequate protection for more complex situations.
We recommend reviewing your core business documents periodically - perhaps annually or every few years - to ensure they still serve your business effectively. Many businesses also benefit from updates when they reach new milestones, enter new markets, or face changing industry conditions.
Some changes, like updating registered agent information or business addresses, have legal deadlines, so it's important to stay current with required filings. We can help you identify when updates are needed and ensure your business documentation continues to support your goals and protect your interests.
How can I protect my assets from lawsuits or creditors?
Asset protection involves using legal strategies to make it more difficult for creditors to reach your assets in the event of a lawsuit or financial claim. Common approaches include utilizing business entities like LLCs to separate business and personal assets, establishing certain types of trusts, maximizing contributions to retirement accounts that have creditor protection, and properly structuring ownership of real estate and investments.
The key to effective asset protection is planning ahead - these strategies work best when implemented before you face any threats, not after a lawsuit has been filed. Courts are skeptical of transfers made when litigation is pending or reasonably anticipated.
Legitimate asset protection is about using proper legal structures and planning techniques, not hiding assets or engaging in fraudulent transfers. The goal is to position your assets within legal frameworks that offer protection while maintaining your ability to benefit from and control your wealth.
We work with clients to develop asset protection strategies that fit their specific risk profile, asset types, and family goals. This often involves coordinating business planning, estate planning, and insurance strategies to create multiple layers of protection for your financial security.
Have more questions? Contact us today to discuss your specific legal needs.
Our team is here to help you secure your business future and family legacy.