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You’ve put blood, sweat, and tears into your family and your business. Now it’s time to protect it.
JULY 2024
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Desert Days and Cowboy Ways My Unique Upbringing on a Ranch
The first time I rode a horse, I was six months old. Sure, I was on my dad’s lap, but it still counts, right?
When I tell people that I grew up working on my family’s cattle ranch, they’re often surprised. After all, it’s not very common! Many teens are working their first summer jobs this time of year, and my mind often wanders back to my younger years — living the dream! My family has been in the cattle business since my grandpa bought his first cows when he was 14 years old. As a kid, I had a blast riding horses and chasing cows, being chased by our notoriously mean cows, and experiencing Wild West adventures most kids only dream about. Being around animals and the outdoors quickly became my passion — it was in my blood. I worked alongside my brothers, dad, and grandpa. Looking back, the time spent with my family was the most important part. While it wasn’t always fun and involved a lot of hard, physical labor, I wouldn’t trade those experiences for anything. I have learned a variety of tactics and skills from my dad and grandpa beyond just the finer details of the beef industry. They instilled in me an appreciation for the great outdoors, the value of working hard and not being afraid to get your hands dirty. Often our days started well before sunrise and ended whenever the tasks at hand that day were complete. I have always admired that after a full day of “cowboy work,” my dad would head into the office to handle the ranch’s business side as well — talk about grit and determination! I have great memories travelling to our ranch located on the Nevada-Oregon border and spending time in the remote desert miles away from the nearest town. I cherished those moments
in the middle of nowhere. It was every kid’s dream. Once, after branding calves, we were riding our horses back to our camp and a rattlesnake slithered under my horse. Fortunately, the horse and I both jumped in the same direction, avoiding any disaster, but it definitely scared me. If you know me, you know I’m not a fan of snakes! After that experience, I made sure to keep my eyes peeled. My upbringing was unique and the best experience I could have ever hoped for. Living the cowboy life as a kid shaped me into who I am today and instilled a strong work ethic from a young age. While you certainly won’t catch me at the office at 4 a.m.
these days, the lessons I learned about hard work paying off have been invaluable both personally and professionally.
–Elliott Harry
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Protecting Your LLC
Did You Know? Did you know that Texas leads the U.S. in cattle ranching, with more cattle than any other state? It’s true! Check out some interesting facts about cattle ranches and farm life below! BRANDING CATTLE ROOTS Branding cattle for identification dates back to ancient Egypt and Rome. Even back then, livestock owners used a hot iron to mark their animals. SCENTS FOR MILES Cows have an excellent sense of smell and can detect scents up to six miles away. COW COMPANIONS Cows are social animals and form strong bonds with each other. They often groom one another and choose specific friends within the herd.
Strategies Against Creditor Charging Orders
When creditors pursue a judgment against a debtor who owns a business, the courts issue what is referred to
as a charging order. This order authorizes a lien against distributions from a Limited Liability Company (LLC). The creditor seizes the money owed to them through a lien placed on the distributions from the LLC. The lien goes only against distributions paid out directly to the individual named in the charging order and not other members or owners of the LLC. HOW LLCS PROTECT AGAINST CHARGING ORDERS Some states, including California, allow creditors to foreclose on a debtor’s membership interest in an LLC using court judgments. A single-member LLC may be exposed to complete liquidation in the foreclosure of the debtor’s interests. A multi-member LLC protects other members from the debt of the lone member with the lien applied against them. Ensuring your LLC has a buy-out clause for members adds an additional layer of protection should a member’s debts disrupt company operations. The lone protection single-member LLCs get from charging orders is that this does not expose company or personal assets to liability. Only distributions can be targeted by a charging order, and your company can survive if the debt isn’t a large portion of the LLC’s interest. TAX CONSEQUENCES FOR LLCS FACING CHARGING ORDERS Because the creditor only assumes the resulting distribution and not an actual controlling interest in the LLC, the debtor retains sole responsibility for the tax payment of the distributions. This means the distribution goes to the creditor, but the tax bill stays with the member. The only time the creditor is responsible for the taxation of the interest in the LLC is if the creditor moves to foreclose on or liquidate the LLC or the debtor’s interest in the LLC. FACING A CHARGING ORDER? HIRE AN ATTORNEY Charging orders put the entire business at risk if the necessary asset protection strategy is not in place. The team at Dahl Law Group helps single and multi-member LLCs optimize their asset protection strategies to avoid these circumstances or at least prepare for them.
LARGEST CATTLE RANCH
The largest cattle ranch in the world is the Anna Creek Station in Australia, which spans about 6 million acres — larger than Israel!
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.
Contact our offices if you are facing a charging order or need to adjust your strategy to protect your work from them in the future.
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The Who, What, Where, When, and Why of California Conservatorships
In a limited conservatorship, the courts issue up to seven specific powers to the conservator. Those powers include:
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Maintaining the conservatee’s home Accessing and keeping confidential records and personal information Providing medical consent on behalf of the conservatee Overseeing the conservatee’s social, romantic, and sexual relationships Consenting (or declining to consent) to the conservatee’s marriage
Conservatorships have a bad name. People often think of Britney Spears’ conservatorship and the #FreeBritney movement because, well, that’s the only real-life example most people have been exposed to. However, conservatorships serve an important role under the right circumstances. WHAT IS A CONSERVATORSHIP? A conservator is a court-appointed title given to an individual who manages another individual’s financial and personal affairs. The conservator oversees an incapacitated or limited- capacity adult, including individuals with developmental disabilities. There are two main types of conservatorships in California: general and limited. In a general conservatorship, the conservator is given full power and responsibility as defined by the court order to manage the conservatee’s lifestyle. In a limited conservatorship,
the conservator receives specific powers and responsibilities to care for the conservatee. WHO CAN SERVE AS A CONSERVATOR? According to the court, conservators can be just about any adult as long as they have the capacity to handle the role. These are often family members but can also be legal professionals, such as a professional fiduciary. Your best choice will be someone who understands the needs of the conservatee and is accessible. WHERE, WHEN, AND WHY A CONSERVATORSHIP IS NECESSARY For general conservatorships, the conservator operates whenever needed to help the conservatee manage decisions like finances, health, and other important personal matters. Courts decide whether the conservator manages the estate (financial matters), the person (health and safety), or both.
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Educational decision making
Overseeing the conservatee’s ability to enter into contracts
In California, the court orders each of these powers individually in a limited conservatorship, meaning that any combination of that list can be assigned to a conservator. At Dahl Law Group, we understand the importance of these court orders despite what public perception may be. Contact our team if you believe you or a loved one needs a conservatorship, and we will work directly with you to find the right person for the role.
Quinoa Veggie Bowl
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
This recipe is packed with protein-rich quinoa and a colorful array of vegetables. It’s ideal for a healthy lunch or a quick dinner!
can create a precious gift for your children, grandchildren, and other loved ones that will preserve your memory for decades to come.
Ingredients • 2 tbsp olive oil • 1 red bell pepper, diced • 1 yellow bell pepper, diced • 1 cup diced zucchini
• 1 cup diced mushrooms • 1 tsp dried oregano • Salt and pepper, to taste • 2 cups cooked quinoa
“The only real mistake is the one from which we learn nothing.” –Henry Ford
Directions 1. Heat olive oil in a large skillet over medium heat. 2. Add bell peppers, zucchini, and mushrooms and cook until softened, about 5 minutes. 3. Add oregano, salt, and pepper and stir to combine.
4. Add the cooked quinoa and mix thoroughly. 5. Cook for an additional 5 minutes, then serve.
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INSIDE What’s
2. 1. Lessons From My Ranch Upbringing Cattle Ranch Life Trivia What a Charging Order Means for LLCs
3.
The Role of Conservatorships — Protecting Vulnerable Adults
Quinoa Veggie Bowl
4.
Your Guide to Preparing for Summer Hikes
Get Trail-Ready Tips for a Successful Summer Hike AVOID HEAT EXHAUSTION. Heat exhaustion is the preamble to heat stroke, and its symptoms include headache, dizziness, muscle cramps, and copious amounts of sweating. If you experience these symptoms, seek out rest and shade immediately ; it’s a surefire sign you need to lower your body temperature. Once you stop sweating altogether, you should start worrying because that is a symptom of a life- threatening heat stroke! CHOOSE THE PROPER PATH AND ATTIRE. When hiking in the summer, it’s best to pick a path with ample shade. Alternatively, you can hike in darkness. Night hikes, illuminated by headlamps and flashlights, are a great way to escape the summer heat and experience the trail like never before. If you want attire that reduces your temperature and provides more protection, try wearing UPF-rated clothing to block harmful rays. Picking the right time, place, and attire can help ensure your summer hike is a scorching success!
If prepared for the elements, you can enjoy hiking year-round. But if you embark on a trail in the extreme heat without the means to handle it, you place yourself on a perilous path. Heat, unlike cold, cannot be mitigated by simply bundling up. From maintaining proper hydration to donning the proper attire, here are three tips to ensure your summer hikes are safe and enjoyable! REMEMBER HYDRATION AND SUNSCREEN. Staying hydrated is key in any season, but it is especially vital when the summer heat beats down on you! Pack extra water for your hike and have water in your vehicle after you finish. If you are tired of lugging around extra water bottles, a hydration pack can help you carry extra H20 hands-free and take sips while on the move. To reduce the risk of painful sunburns, apply sunscreen to all exposed skin areas. Additionally, take a break every 40 minutes to reapply sunscreen as needed.
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