Why Your Business May Not Survive Probate Court
Your business is part of your legacy, but it could vanish almost overnight if the unexpected happens and you pass away. Should this occur, the company could be dragged into probate court without a will. Here are the questions you should ask yourself before that happens. First, is your business a probate asset? Probate is the legal process used to distribute a deceased person’s assets. During probate, executors of your will (or, without a will, a court-appointed administrator) will collect the assets of a deceased person, pay any liabilities remaining on the person’s estate, and distribute the assets of the estate to beneficiaries. What meets the definition of “assets”? Probate assets are solely in the decedent’s name that pass either through a will or, in absence of a will, according to state laws.
The only assets not subject to probate — also known as non-probate assets — are accounts owned jointly with right of survivorship, assets held in a trust, IRAs that pay on death, and life insurance and annuities payable on death. So, if you’re the sole owner of your business and do not have a trust, the future of your company may eventually be in the hands of your will’s executor — or, without a will, a court-appointed administrator. Second, why would businesses die in probate? Probate can be a surprisingly long process. On top of appointing an executor or administrator, they will publish notice to creditors, determine validity of claims against the estate, file the deceased’s tax returns, and pay the debts of the deceased. Once that is all over, assets will be distributed to the rightful heirs and beneficiaries.
This process, at its fastest pace, can take six months. However, it can take years. That’s a long time for a
business to survive if there was no plan for your departure. What if you needed a loan to keep the business going? Who’s going to take out the loan? If your business required a loan to continue running and you were the sole owner, your legal heir will be responsible to pay for the loan. You don’t want your family to pay money they don’t have to, but without estate planning, it may be nearly impossible to avoid. If you’ve found yourself in a similar situation, don’t hesitate to give our offices a call. As a family-owned business and estate planning law firm with tax expertise, we’re proud to help you every step of the way.
Brunch Rainbow Frittata
Check out our Summer 2022 Promo! Up to $500 Off an Estate Plan!
Inspired by EatingWell.com
Scan the QR code below for more information:
Ingredients
• Nonstick cooking spray • 1/4 cup sweet potato, diced • 1/4 cup yellow pepper, diced • 1/4 cup broccoli, chopped • 8 eggs
• Basil, thyme, salt, and pepper, to taste • 1/2 avocado, pitted, peeled, and thinly sliced • Cherry tomatoes, halved • Sriracha hot sauce (optional) 4. Pour egg mixture into skillet with vegetables. Don’t stir but instead use a spatula to lift the edges of the egg mixture until it is evenly distributed. 5. Transfer mixture to oven. Bake for 5 minutes or until the dish sets. 6. Top with avocado and tomatoes. Drizzle Sriracha on top (if desired).
Directions
1. Preheat oven to 350 F and coat a cast-iron skillet with nonstick cooking spray. 2. In the skillet over medium heat, cook sweet potatoes, yellow pepper, and broccoli until soft.
3. In a medium bowl, whisk
together eggs, basil, thyme, salt, and pepper.
3
www.tqdlaw.com | 916-545-2790
Published by The Newsletter Pro www.TheNewsletterPro.com
Made with FlippingBook Ebook Creator