Michigan Estate Planning Blog

Entrepreneurs Asking For An Early Inheritance Mid-Michigan

If your parents are retiring or already retired, then likely they will need their own retirement savings to maintain their lifestyle. On the other hand, as an entrepreneur you might be on the verge of rolling out the next big thing in the marketplace. Should you ask your folks for an early inheritance? The Wall Street Journal considered this matter in an article titled “Cash-Strapped Entrepreneurs Seek Early Inheritances,” with ideas for parents and their entrepreneurial heirs alike. In an economy starting to show some signs of life, many business plans that have been mothballed are being reconsidered. As an heir, is it ok to want your inheritance now? As a parent, is it ok to give it up early? Well, yes to both. All parties concerned must be mindful of tax issues, as well as future financial needs that include planning for retirement, old age, health issues and even the rest of the estate. The original article explores the emotional aspects of this issue, too. Indeed, it can be difficult to ask for an early inheritance and, conversely, it can be difficult being asked for an early inheritance. Regardless, whether you are asking or being asked, you will need competent legal, accounting and financial counsel to guide you. You do not want the potentially competing dreams of business success and a secure retirement to turn into nightmares for all concerned.

Reference: The Wall Street Journal (August 19, 2013) “Cash-Strapped Entrepreneurs Seek Early Inheritances”

For more information, see www.jerryreiflawyer.com

 

Entrepreneurs Asking For An Early Inheritance Saginaw MI

If your parents are retiring or already retired, then likely they will need their own retirement savings to maintain their lifestyle. On the other hand, as an entrepreneur you might be on the verge of rolling out the next big thing in the marketplace. Should you ask your folks for an early inheritance? The Wall Street Journal considered this matter in an article titled “Cash-Strapped Entrepreneurs Seek Early Inheritances,” with ideas for parents and their entrepreneurial heirs alike. In an economy starting to show some signs of life, many business plans that have been mothballed are being reconsidered. As an heir, is it ok to want your inheritance now? As a parent, is it ok to give it up early? Well, yes to both. All parties concerned must be mindful of tax issues, as well as future financial needs that include planning for retirement, old age, health issues and even the rest of the estate. The original article explores the emotional aspects of this issue, too. Indeed, it can be difficult to ask for an early inheritance and, conversely, it can be difficult being asked for an early inheritance. Regardless, whether you are asking or being asked, you will need competent legal, accounting and financial counsel to guide you. You do not want the potentially competing dreams of business success and a secure retirement to turn into nightmares for all concerned.

Reference: The Wall Street Journal (August 19, 2013) “Cash-Strapped Entrepreneurs Seek Early Inheritances”

For more information, see www.jerryreiflawyer.com

 

FIVE STEPS TOWARD RECOVERY FOR SMALL BUSINESS OWNERS

Economic indicators are improving, and with them, small business optimism. If you are an entrepreneur, you’re ready for some rosy economic news, but you’re also likely to try to take matters into your own hands … which is a good thing. Raj Seshadra, head of small business banking at Citibank, was quoted with five excellent steps small business owners can take now to help hasten their own economic recovery. • Keep track of all funds that come into or go out of your business on a daily, weekly, and monthly basis. Tracking expenses is vital to good cash flow management. • Make the most of marketing. When the economy suffers, it’s more important than ever to continue marketing efforts. Explore ways that social media marketing could boost your bottom line. • Find a great advisor. It’s important to find an experienced, qualified advisor you can trust. • Find a great bank that will work with you. • Stand out with terrific customer service. Caring about customers and treating them with respect can help ensure they keep coming back to your business.

 

PATENT PROTECTION? THE “AMERICA INVENTS ACT”

If you’re a small business owner and an entrepreneur, then you ought to check out the new patent law and the most major changes to it in some 60 years. With the stroke of a pen, President Obama recently signed the America Invents Act into law. You may not have heard much in the media about this new law, because both parties agreed to it. While the devil is in the details, and many remain to be seen, many regard the law as less than favorable to entrepreneurs. The biggest change is that instead of being a first-to-invent system (i.e., where the patent rights go to whoever can prove they created the idea/product first), we are moving to a first-to-file system. Soon, the patent will go to whoever gets the idea to the patent office first, and in a digital age that is a race where every second counts. As a recent Forbes article points out, this is much more of a challenge to the entrepreneur (especially the technology entrepreneur) because it makes “idea theft” more likely. In turn, it forces innovators to be more closed about their ideas (out of fear). Prior to the new law, getting an idea right and getting it out there have always been a social process involving communication. For one, think of how dangerous a trade show might be for an entrepreneur. Similar systems have been in place in Canada and Europe for years, and there’s evidence that it hasn’t been good to small business. What to do? According to another recent article, this one from Smart Business, it’s important to remember that you are in a race. Indeed, it’s much like land grabs of the early 19th century and that’s probably one comparison to a “pioneer” that an entrepreneur might like to avoid. It will be important to reassess how you deal with your ideas, whether you are an individual or you have employees working on developing their own ideas. You no longer have the option of sitting on a good idea. The lifeblood of small business is often innovation, and so the security of your business might now lie in speed. More information about the law and specific problems can be found in each of those articles, as well as in other sources. According to the America Invents Act, the race is on as of January 1, 2012.

References:

Forbes (September 20, 2011) “New Patent Law Means Trouble for Tech Entrepreneurs”

Smart Business (September 20, 2011) “The America Invents Act: A race to the patent office”

Decision-Making Declines As Birthdays Increase

Why do many of the most difficult decisions we face come later in life? I guess it’s just fact of life. Unfortunately, we’re not always at the top of our game when those decisions must be made. Therefore, it’s essential to make proper plans earlier, rather than later. According to a recent study, reported on here by the Wall Street Journal, the decline starts around age 60. The scores on a test measuring knowledge of investments, insurance, credit and money basics fell about 2% each year starting after age 60. In fact, they fell from about 59% correct for those in their 60s to a dismal 30% for those 80 and older. What’s almost as bad is that these very people actually grew more confident in their decisions and knowledge. Problem: These are the very same people who are attempting to sift through the messy and confusing programs like Medicare and Social Security, at the very same time they are undergoing this dramatic change in their mental agility. These also are the people who will want to take care of their loved ones in their estate plans in an era of constantly changing laws and regulations. If you are the adult child of older parents, this is something to bear in mind when seeking to help them, perhaps especially when your assistance is unwanted. Likewise, as a parent, fact of life will necessitate a bit of self-understanding. And for everyone, this means that proper estate planning should be done earlier, rather than later.

Reference: The Wall Street Journal (October 30, 2011) “Financial Acumen Declines After 60”