Why did some companies thrive during the COVID-19 pandemic while others had to shut their doors forever? The answer is simple: Successful companies embraced creative solutions to overcome the obstacles of the shelter-in-place orders. Creativity is key to a profitable business. Innovative problem-solving is how business leaders come up with new ideas, address unexpected issues, and inspire their teams during difficult times. Here are a few habits that resourceful entrepreneurs share. THEY MAKE A SCHEDULE. Though it may sound counterintuitive, structuring your day actually improves your ability to be creative. Establishing a schedule in advance allows you to avoid having to make small, inconsequential decisions. You won’t be distracted by wondering when you’ll get lunch or if you’re missing a big meeting. It’s all already on the calendar. Reducing daily decisions gives you more time to think about what matters and helps you dedicate more of your mental energy to solving problems or refining big ideas. THEY TAKE TIME TO RECHARGE. This doesn’t mean spending all day watching Netflix. Recharging your imagination is an active process. If you’re feeling creatively drained, go to a place that inspires BATTLING MENTAL HURDLES 3 Habits Entrepreneurs Use to Excel During COVID-19
you. This could mean taking a walk around a park, going on a hike in the woods, or visiting your local library. Immersing yourself in others’ ideas can also help recharge your creative batteries. Swing by an art museum, pick up a new book, or treat yourself to a solo movie date. Ask yourself why a particular piece of art inspires you, what makes it worthwhile, and if you would have done anything differently. THEY PRACTICE CREATING. You don’t have to wait for inspiration to strike. Cultivate creativity by making something every day, even if it has nothing to do with your projects at work. Doodle during lunch, sing along to the radio during your drive home, or write a few sentences of a short story each night. Don’t worry about whether these personal projects are “good,” just focus on bringing them into the world. Practice makes perfect. If you believe creativity is something that only a select few are born with, then you might find yourself struggling to be imaginative during difficult times. However, when you view it as a skill that can be strengthened, you’ ll develop habits to see you through what might otherwise be a creative drought.
Conditions Are Ideal for an Estate Freeze. Is It the Right Move for Your Clients?
2. HAVE YOU ACCOUNTED FOR HURDLE RATES? Often, estate freezing strategies come with “hurdle rates” attached. These rates are determined by the IRS and dictate a certain amount of income that needs to be repaid to your taxable estate or to charity. Be sure to consider this in analyzing an estate freeze while interest rates are low. The “hurdle rates” are at record lows, with the long-term federal rate for July 2020 at 1.17% and the Section 7520 interest rate at 0.6%. This means, for most estate freeze strategies, that if the investment being transferred exceeds these rates after the transfer, your client will realize a significant gift and estate tax savings. 3. DO YOU HAVE A STRATEGY AND TIMELINE NAILED DOWN? Every estate plan is different, and laws and rules related to estate planning change constantly. Because of this, it is vital that your clients consider multiple freezing strategies (e.g., gift techniques versus sale strategies) before choosing the one that is right for them. It can be difficult to answer all these questions on your own, which is why we recommend making this decision with the guidance of an estate planning attorney. Our team has the expertise necessary to ensure that when we collaborate with you, we will recommend the right strategic move for your clients. To explore this opportunity further, call us today at 317-726-1714.
This global pandemic may be a blow to your wallet, but 2020 does have its perks: Specifically, this is a prime time to consider new estate planning strategies. As Brian mentioned on Page 1, the gift and estate tax laws are favorable for the moment. That, combined with low-interest rates and asset values, makes this the perfect opportunity for an estate freeze. In the estate planning world, the term “estate freeze” refers to the practice of transferring assets to your beneficiaries without tax consequences. For example, a business owner can restructure the ownership of their company to limit the value of its assets and transfer any future growth to their family. It can be a win-win.
That said, a few questions should be answered before triggering an estate freeze.
1. WILL YOUR ASSETS APPRECIATE? An estate freeze is most valuable for assets expected to appreciate significantly in time. These include stocks and investment properties, among other things. Freezing will protect the appreciation of your assets from the 40% gift/estate tax, so it is only a smart move if your client’s assets are temporarily depressed in value or have a high likelihood of appreciation.
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