Dahl Law Group - March 2024

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MARCH 2024

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Savoring the Special Moments My Son Is Turning 2!

It feels surreal to utter the words, but my son turns 2 this month! As I reflect on the first two years of his life, the overwhelming sense of time slipping through my fingers is both beautiful and bittersweet. In a previous newsletter, I shared how becoming a father transformed me, and now, as we approach his second birthday, the depth of that transformation continues to evolve. Time seems to accelerate, and the realization that my little one is growing up so fast (and before I know it he’ll be a teenager) is both exhilarating and nerve-wracking. March 21 is National Teenager Day, and as I recall my own teenage years, I can’t help but wish for my son to savor each moment of his childhood without rushing into the complexities of adolescence too soon. The cliché advice to “enjoy it while it lasts” suddenly holds a profound weight, as the relentless march of time leaves me wondering: Where is it all going so quickly? Being a dad is undeniably rewarding, filled with moments that range from heart-melting to challenging. As I’ve come to find out, it’s not always a journey of rainbows and butterflies, but the love we have for our children propels us through the tough times, knowing that this fleeting phase of their lives won’t last forever. Time, as they say, will fly right before our eyes.

Watching my son experience the world around him has been amazing. He’s gradually carving out his unique personality, and the joy of hearing his little voice affectionately calling me “papa” constantly warms my heart. His laughter has been my daily dose of happiness, and even the tears, whether from laughter or frustration, are treasured moments in this journey. When Lucero and I go to the gym, we take our son to their daycare. There, the staff shares stories of all the hugs and kisses he gives the other children. It’s heartening to know that the love we give him echoes in the way he reciprocates it to others — sometimes we wonder if we hug and kiss him too much, but is that even possible? Parenthood teaches many lessons, with patience and flexibility standing out prominently. Each day brings a new reason to smile, a fresh perspective, and an opportunity to grow together. We’ve witnessed countless firsts — from tentative steps to joyous discoveries — and eagerly anticipate the many more “firsts” that lie ahead. Our family adventures have taken us to several states in Mexico, Wisconsin, Arizona, Colorado, and around California, creating memories that will undoubtedly become part of our shared narrative. From enjoying time in Guadalajara, Mexico, with Lucero’s family, to sitting on

the lap of his 100-year-old great-grandma in Colorado, each experience has been a unique chapter in his young life. Of course, Disneyland stole his heart, and the image of him giving Mickey Mouse the biggest hug imaginable remains etched in our minds. As I look forward to watching him grow, the present moment becomes my anchor. Each day is a precious chapter in his journey, and I’m committed to savoring every moment — one step at a time. So, my son, as you turn 2, my wish is simple: Slow down growing, and don’t rush into tomorrow! Happy Birthday!

–Tyler Q. Dahl

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Effective estate planning is crucial for proactively managing the transfer of wealth for generations to come. One of the most essential elements of doing so is “powers of appointment.” Powers of appointment offer flexibility and control over asset distribution. WHAT ARE POWERS OF APPOINTMENT? At the heart of powers of appointment is the ability for one individual (the donor) to grant another (the donee) the authority to decide how a trust’s assets are distributed. Powers of appointment take various forms. The general power of appointment offers the donee the broadest discretion, allowing them to allocate assets freely, even to themselves. However, this type also exposes assets to potential creditor claims. On the other hand, the limited power of appointment narrows this scope, typically confining the distribution to a specified group like family members, which adds a layer of protection against external creditors. For those who wish to integrate flexibility with future adaptability, testamentary powers of appointment are employed through wills, allowing adjustments in response to changing circumstances. Conversely, non-testamentary powers enable the donee to distribute assets during their lifetime, addressing immediate and evolving needs. POWERS OF APPOINTMENT OFFER PRACTICAL SOLUTIONS. In practice, powers of appointment are adaptable to various situations within an estate plan. For instance, a grandparent can use them to create a trust for grandchildren, with a limited power of appointment for their child. This setup ensures the grandchildren’s inheritance is protected from their parents’ creditors while allowing the parent to manage the distribution responsibly. In special needs cases, a parent can establish a trust for their child and assign a limited power of appointment to a trusted individual or entity. This ensures continuity in care and financial support. Implementing powers of appointment requires careful consideration, especially in determining the appropriate level of control and flexibility and choosing a trustworthy donee aligned with the donor’s intentions. Legal guidance is essential to ensure the power of appointment is drafted accurately. Powers of appointment provide a strategic avenue for ensuring one’s legacy, particularly for business owners who view their enterprise as an integral part of their life’s work. TAKE ADVANTAGE OF THE POWERS OF APPOINTMENT TODAY. Dahl Law Group provides comprehensive guidance in utilizing powers of appointment effectively. We help our clients safeguard their business and legacy and secure their family’s future. We invite you to schedule a consultation with us to understand how powers of appointment can enhance your estate plan. Mastering Wealth Transfer The Crucial Role of Powers of Appointment

Studies show that toddlers take roughly 176 steps per minute when they walk. It’s true! That’s a lot of movement for those tiny bodies! The word “no” becomes a toddler’s favorite word, used frequently and emphatically. If your toddler has caught the “no” bug, experts recommend responding with “yes.” A toddler’s brain is twice as active as an adult’s brain. At 2 years old, toddler’s brains have twice as many synapses as adults! The average toddler sleeps 11–14 hours daily, including naps. We could all take a lesson here — sleep is crucial for our bodies! Toddlers can speak around 50–100 words by age 2. Of course, this varies from toddler to toddler, but hearing your little one talk is one of the greatest joys of parenthood! Toddlers have endless curiosity, embracing life’s myriad phases with infectious enthusiasm. Whether you’re a parent, aunt, uncle, or cousin to a tiny human, toddlers infuse our lives with a blend of love, laughter, and the pure magic of discovery. Did You Know?

Do you have a friend who needs our help? When you’re done reading, give them this newsletter and recommend they scan our QR code. We can help them solve their tax, business, or estate planning problems before things get worse.

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Creating an LLC or corporation can open up doors for you and your partners. But you must first decide where to establish your business. This choice influences and is influenced by the location(s) where your business operates, the structure of your business, and privacy. While many entrepreneurs default to their home state for incorporation, several options could be more beneficial. FORMING YOUR BUSINESS IN CALIFORNIA Forming your business entity in your home state is often the most straightforward and cost-effective approach when creating an LLC or corporation. If your business is physically located in California, generates income in your home state, and operates most or all business in your home state, you should start there. However, in cases where you conduct business across state lines and have real estate or other investments elsewhere, Choosing the Right Ground Exploring Locations for LLC and Corporation Establishment

you have opportunities to create your LLC or corporation in those other locations. CREATING AN LLC OR CORPORATION IN ANOTHER STATE Businesses that operate primarily in a different state than where the owner resides will generally find more benefits in forming the entity where they do business. Nevada and Wyoming offer relief from personal and corporate income taxes and franchise taxes, but those benefits are primarily related to residents of those states. Then there’s Delaware, renowned for its protective measures and privacy for LLCs, along with a flexible General Corporation Law for corporations. Your business circumstances, however, will dictate your best option. Understanding the various costs and benefits is essential before making a final decision. PIERCING AND REVERSE PIERCING OF THE CORPORATE VEIL AS A FACTOR A critical factor is the corporate veil piercing (or reverse piercing). Some states provide protections for owners of LLCs or corporations when faced with a lawsuit.

In the case of piercing, a business owner is exposed to personal liability when a lawsuit targets their business interests. Most states provide protections to multimember LLCs, but states like Florida and New Hampshire do not provide the same liability protections to single-member LLCs. Reverse piercing is far less common, but California is one of a handful of states that allows the courts to pursue the business interests of an individual owner who is unable to pay off debts incurred through litigation. Nevada and Wyoming have laws that eliminate or limit the ability of courts to reverse pierce. If you form a business in a state that protects against reverse piercing, California courts do not have jurisdiction to reach into business interests owned outside of the state.

MAKE THE RIGHT CHOICES AT FORMATION

At Dahl Law Group, we are committed to guiding you through these pivotal decisions, ensuring your business is positioned for success right from its inception. Contact our offices to get started.

The Dahl Law Group congratulates Associate Business Attorney Danielle Lawrence on her selection to the 2024 Northern California Rising Stars list. This honor is reserved for lawyers who exhibit excellence in their practice and only

GET A HEAD START ON YOUR LEGACY INTERVIEW! Scan this QR code to request a FREE copy of our Legacy Interview questions. With them in hand, you

can create a precious gift for your children, grandchildren, and other loved ones that will preserve your memory for decades to come.

“Trouble is only an opportunity in work clothes.” –Henry J. Kaiser

2.5% of attorneys in Northern California receive this distinction. Congratulations, Danielle!

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INSIDE What’s

2. 1. Time Flies — Where Have the First 2 Years Gone? Fun Facts About the Toddlers in Our Lives Leveraging Powers of Appointment for Future Generations

4. 3.

Where Should You Create Your LLC or Corporation?

Exploring Sintra, Portugal

This Beautiful City Is Straight Out of a Fairy Tale Add Sintra, Portugal, to Your Travel Plans!

As spring break nears, you might already have plans to travel to Punta Cana, London, Key West, Paris, or a similar destination city. One more to add to your travel checklist is Sintra, Portugal. This beautiful town rests on the hills of Serra de Sintra, just outside the capital, Lisbon. The two castles within the city are the main draws, and it’s easy to see why. PENA PALACE AND GARDENS The National Pena Palace and Gardens are absolutely stunning. The palace is adorned in primary colors, with intricately carved yellow, red, and blue buildings. It’ll cost you 10 euros to explore the grounds and a couple of extra euros to go inside, but it’s worth it! The carvings include many

styles, including Neo-Islamic and Neo- Renaissance. Everything is opulent, and you’ll have a great time as you take in the extravagance. Some rooms are painted as an optical illusion, with doors and hallways looking three-dimensional when they’re just flat. Once you head back outside, the rest of the grounds are just as lovely. The enormous gardens have many trails, marked and unmarked. You can get lost in the beautiful oasis, and we encourage you to put aside at least half a day to explore the gardens. QUINTA DA REGALEIRA Quinta da Regaleira is the city’s second significant castle boasting beautiful

gardens, but its main draw is the initiation well. This 80-foot-deep well is a wonder as it sinks into the earth with mossy walls. We suggest you go early, as this is another big attraction for those visiting the city, and officials try to keep people moving as they arrive, mainly as it’s one-way traffic on the steps themselves. Once on the grounds, you can explore many grottos by following their main paths. The castle itself isn’t as opulent as Pena Palace, but it’s still a lovely location to visit. Sintra is perfect for any vacation, and though these are the main draws for the city, by no means are they the only ones. We encourage you to check out this city and see if it fits your travel plans.

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