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JANUARY 2024
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Reflecting on a Decade and Anticipating a Bright 2024
As we welcome a brand-new year, I am filled with an overwhelming sense of gratitude and excitement. It’s the perfect time to express my heartfelt wishes for a happy New Year to each of our valued clients. Your trust and support have been the pillars of our success, and for that, we are truly thankful. Many people focus on setting goals and resolutions for the new year this time of year. However, they often forget to reflect, too. As I eagerly anticipate the adventures 2024 has in store, I’d like to take a moment to reflect on the path that brought me here and share some of that with you. In August, our firm will celebrate its 10th year anniversary — a milestone that wouldn’t be possible without your continued support. When I first started as a lawyer, my first job was with a small firm. I quickly branched out and took a job with a much larger firm after passing the bar, but I was dissatisfied. I returned to the small firm, but I quickly realized I was doing all the work with little pay, and I thought to myself, “At this rate, I should just open up my own firm.” This was in 2014, and in that post- recession time, it was impossible to find work, even a side hustle. Eventually, I was thrust into opening my own firm — there was no other option. After opening the doors to the Law Office of
Tyler Dahl, the initial years were marked by unparalleled dedication and an unyielding work ethic. I didn’t take a day off for two years — I worked Christmas, Thanksgiving, birthdays, and weekends. To make ends meet, I tutored law and high school kids and even tried to find a part-time bartending gig. It was a grind. My first office, a tiny fishbowl space, barely housed my desk. It had those frosted cubed glass structures that let some light in, but you can’t see out. From there, I moved into a slightly larger office, but there was a catch — it was only two small rooms where three of us worked. It was a tight fit, but we made it work. Eventually, the work paid off. The community started recognizing our work, we began networking, and the firm began receiving awards. We recently rebranded and moved into a space that comfortably houses our team and allows for our anticipated growth. We have a strong team, all with accolades such as “Super Lawyers” and “Rising Stars” accreditation, and our firm was named the second-best Trusts & Estates firm in Sacramento by the Sacramento Bee. And the best part is that we are only just getting started. The coming year holds promises of expansion, both in terms of personnel and services. We are actively seeking talented individuals for leadership, legal roles, paralegal positions, and
administrative support. Plans are underway to expand our footprint to other cities, providing a broader reach to our growing clientele. And while we already have some clients for whom we assist with tax and accounting, we will be expanding aggressively to provide a more comprehensive service to specific clients who may benefit greatly. We hope to provide our business clientele with complete, in-house support. Our commitment to providing top-notch legal services and exceptional customer service remains unwavering. As we embark on new endeavors, the true foundation of our business lies in the relationships we build and the quality of work we deliver. To each of you, our extended family, we extend warm wishes for a happy New Year. May 2024 bring joy, prosperity, and the realization of your dreams. Thank you for being part of our journey, and we eagerly anticipate serving you and your loved ones in the coming year.
Happy New Year!
–Tyler Q. Dahl
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Did You Know? What Is Reverse Piercing?
Strategies to Protect Your Business Assets
The earliest recorded New Year’s celebration dates back over 4,000 years to ancient Babylon. The Babylonians celebrated the New Year during the first new moon following the vernal equinox. Here are a few more fun facts surrounding the new year! A JANUARY CELEBRATION While we now associate Jan. 1 with the New Year, it wasn’t always the case. The Roman calendar initially designated March as the beginning of the year. Jan. 1 became the start of the year when Julius Caesar introduced the Julian calendar. The iconic New Year’s Eve ball drop in Times Square, New York City, started in 1907. The first ball, made of iron and wood, weighed 700 pounds and was adorned with 100 light bulbs. THE FIRST NEW YEAR’S BALL DROP
Business owners have long favored limited liability corporations (LLCs) because protecting their personal assets from the company’s liabilities is a crucial aspect of risk management. LLCs generally shield assets from both directions of liabilities. However, this protection can be challenged in certain situations. We’ve previously mentioned how an owner’s assets can be exposed when their business is sued (piercing the corporate veil), but less common is when the courts pursue an LLC’s assets during a personal lawsuit against one of its owners. WHEN CAN THE COURT REVERSE PIERCE? Reverse piercing can occur when a business owner faces a personal lawsuit but must expose certain assets held within their California LLC to satisfy the judgment. This tactic is generally invoked when the owner of the LLC does not have other assets sufficient to satisfy a judgment, or those assets are more difficult to reach. Even worse, it does not necessarily matter if the owner mismanages the business or not. In these cases, someone with a judgment against an owner may pursue the LLC’s assets to satisfy personal obligations. The court will not pursue reverse piercing that unjustly damages the finances, business, and reputation of innocent third parties connected to the LLC. If the LLC has multiple owners, and these co-owners are not linked to the litigation in question, it becomes less likely that severe penalties will be imposed on the LLC due to the personal liability of one owner. The court’s aim is to provide a fair and just resolution without causing collateral damage. CAN INNOCENT THIRD PARTIES FALL VICTIM TO REVERSE PIERCING? THE LOCATION OF YOUR LLC MATTERS. In the realm of reverse piercing in California, jurisdiction plays an important role. California courts are only authorized to pursue California LLCs. If your LLC was established in another state, reverse piercing does not apply. In such cases, California courts are generally unable to pursue a reverse piercing to satisfy a judgment entered under their jurisdiction. IS YOUR CALIFORNIA LLC AT RISK? Whether or not your California LLC is at risk of reverse piercing depends on various factors, including the extent to which you, as the owner, are involved in the day-to-day operations and financial matters of the LLC. To mitigate this risk and ensure maximum asset protection, work with legal experts who know the law. At Dahl Law Group, we help businesses and business owners safeguard their assets and navigate complex legal scenarios just like this. Contact Dahl Law Group today to set up or review your business structure. We will work diligently to help you mitigate the risks of piercing or reverse piercing.
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Maximize Your Estate QTIP Tax Election Explained
Qualified Terminable Interest Property (QTIP) trusts are an excellent estate planning tool for individuals who need to save on estate taxes while providing for a surviving spouse and, eventually, chosen heirs and beneficiaries. They provide flexibility and control over the assets and funds held within the irrevocable trust while limiting tax consequences. TAX BENEFITS OF A QTIP TRUST Estate taxes significantly erode the value of assets without meticulous planning. Fortunately, with a QTIP trust, an estate tax is not levied at the time of the first spouse’s death. This protects the surviving spouse from having the value of the trust drained before they can benefit from it. Instead, the taxes are computed after the second spouse’s death, ensuring they can reap the full benefits of the trust throughout the remainder of their life. For family members to take full advantage of the QTIP tax election, the trust must be
established by making a tax election on the executor’s tax return. Furthermore, the trust must include the necessary terms so the election is available. PROVIDING FOR A SURVIVING SPOUSE A QTIP trust is a great way to care for a loved one. The income generated from the trust is paid out to the surviving spouse, ensuring they have a steady source of financial support. The surviving spouse can dip into the principal if it is also necessary (only for the spouse’s needs). It’s worth noting, however, that as an irrevocable trust, removing or selling assets from the trust requires legal approval before execution and may come with significant additional costs to do so. CONTROL ASSETS AND WEALTH FOR FUTURE BENEFICIARIES While ensuring the financial well-being of the surviving spouse is a major priority, it’s equally crucial to ensure the next generation or chosen beneficiaries are
not left behind. For a married couple, the spouses are the grantors and set up the trust together, establishing beneficiaries when they set up or modify the trust. When the first spouse passes, the QTIP portion of the trust is irrevocable so the trust beneficiaries are entitled to the assets within the trust when the second spouse passes away (assuming the surviving spouse does not spend down all assets for their needs). ESTABLISH A QTIP TRUST WITH DAHL LAW GROUP. Estate planning is a nuanced and layered effort to protect your assets and wealth while providing a pathway to peace of mind for your loved ones. At Dahl Law Group, we have a wealth of knowledge and experience. Our team has worked with individuals and business owners in crafting estate plans that get the most out of their legacies. To take advantage of the many benefits of a QTIP trust in your family, contact us today.
Creamy Vegan Mushroom Soup
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
Inspired by Simple-Veganista.com
Ingredients • 2 tbsp olive oil • 1 large onion, diced • 4 cloves garlic, minced • 2 lbs mushrooms (cremini or button), sliced • 1/2 cup vegan dry white wine (optional) • 1 tbsp fresh thyme
• 4 cups vegetable broth • 1 14-oz can coconut milk (light or full fat) • 3 tbsp cornstarch, plus 1/4 cup water • 1/4 cup chopped parsley • Salt and pepper, to taste
can create a precious gift for your children, grandchildren, and other loved ones that will preserve your memory for decades to come.
Directions 1. In a large pot, heat oil over medium heat. Add onions and garlic and sauté for 5 minutes. Add the mushrooms, wine (if desired), and thyme and cook for 5 minutes. 2. Add the broth and bring to a boil. Once boiling, cover, reduce heat, and simmer for 10 minutes. Stir in the coconut milk and continue cooking for another 5 minutes. 3. Mix cornstarch with water and add to soup. Stir frequently for 1–2 minutes until soup thickens to desired consistency. 4. Remove from heat and stir in the parsley. Season with salt and pepper and enjoy!
“Don’t let yesterday take up too much of today.” –Will Rogers
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INSIDE What’s
4. 2. 1. A Decade in the Books — Looking Ahead to a Bright 2024 Interesting Facts You May Not Know About New Year Celebrations Reverse Piercing and Asset Protection The Power of QTIP Trusts Creamy Vegan Mushroom Soup White Noise: Your Secret to Enhanced Concentration 3.
Calm Your Mind, Boost Your Productivity: The Benefits of White Noise
ENHANCES CREATIVITY Some studies suggest that moderate white noise can improve creativity and imaginative thinking. It keeps the idea gateway open during the generative process and enables you to think freely and develop novel solutions. Whether you’re studying, working, or engaging in creative endeavors, the benefits of white noise extend to a wide range of activities, making it a versatile tool for enhancing focus.
White noise is commonly used to help people fall asleep, but now, more people are using it to increase their concentration during the workday. By providing a consistent background sound, white noise can mask environmental distractions like chattering, traffic, or intermittent noises that may otherwise disturb concentration. Here are a few benefits of utilizing white noise in your day. CALMING EFFECT White noise, especially calm nature sounds, exerts a soothing effect on the mind, providing a stable auditory
environment that reduces sudden distractions. The calming influence can help you feel more positive and enable the mind to transition to a more conducive state for a deeper focus on work or study. BOOSTS CONCENTRATION White noise boosts concentration by increasing background neural “noise” in the brain, which helps essential neural signals to stand out and be detected, which can enhance cognitive performance. This can be particularly useful when you need to train your attention while tackling complex problems.
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