5 Best & Worst States for Business
http://www.msn.com/en-us/money/smallbusiness/the-5-best-and-5-worst-states-for-business/ar-BBi0o4S?ocid=ASUDHP
Saturday, February 28, 2015
Tuesday, February 24, 2015
Friday, February 20, 2015
Wednesday, December 3, 2014
Tuesday, December 2, 2014
Why Smart Women Invest in Estate Planning
It is important for us to ensure that our families and financial goals are met after our death. As an attorney, it is my opinion that we as women face unique challenges when it comes to estate planning. Beyond our inherent emotional attachments, we are often financially responsible as mothers, wives, sisters, aunts, widows, employers and friends. Culturally and biologically, women are caretakers. We are often confronted with tough choices about finances, beneficiaries and health care. We do not always have the benefit, during these confrontations, of possessing all the knowledge that we need to make informed decisions. As wives, we do not always know or understand what estate planning our spouses already have in place. As single mothers, we are confronted with the dilemma of the continued care of our children without the benefit of partners. We are all faced with a variety of important decisions that result from different life circumstances and choices. As varied as those life circumstances and choices may be, there is one common goal. After we die, what are our wishes? What do we want for the people that we love?
After eighteen years of practicing law, I have found that conversations discussing death can be difficult for many of my clients depending on what stage of their life they are currently in. The gamut of emotions I see ranges from humor to sadness and from acceptance to fear. But death is a reality for all of us and timed without our control. Estate planning is better dealt with now than not at all for the sake of our loved ones..
In 2014, the estate tax is capped at $5.34 million, Current Estate Tax . Many people think that estate planning is not necessary or applicable to them if they do not currently have $5 million in assets. Nothing could be further from the truth. Estate planning is not just about tax planning. Tax consequences are always an important consideration in estate planning and people should seek competent legal and financial counsel in these matters. But estate planning is so much more. After we die, what are our wishes? What do we want for the people that we love?
It is about planning for our children and naming their guardians. It is about planning to protect and care for our spouse, partner, relative or dear friend after our death. It is about planned charitable giving to a great cause that is close to our heart. It is about planning to effectively manage assets received from the divorce or death of our spouse. It is about planning for the future of our businesses, whether by sale or its transfer to our family.
Estate planning is a legal vehicle to dictate how, to whom and when we want our estate assets to be distributed. I know my children would not have been financially mature enough to manage a substantial amount of inherited wealth upon turning eighteen years old. I shuddered at that possibility and urged my parents to extend the age to twenty-five when I hoped they would be possibly more mature.
Whether for the benefit of children, spouses, partners, businesses, charities or churches, your estate assets must be set to transfer in a legally effective manner mirroring your desires. No matter what a person’s net worth is, it is important to have a basic estate plan for all the fore –mentioned reasons. It is also important to discuss your wishes with your heirs to avoid confusion and minimize conflict after you die. It is a necessary conversation that is conducive to effective estate planning.
At a minimum, a basic estate plan should include a will, a financial power of attorney and an advanced care directive. These basic estate documents address after-death issues such as who the asset will goes to, who is handling the financial affairs and who is responsible for making medical decisions upon an individual’s medical incompetency. A trust may be the chosen vehicle for some people depending on their estate planning goals. More and more people are using trusts as an estate planning vehicle. Trusts allow people to put conditions on how and when their assets are to be distributed. Trusts are often used to reduce estate and gift taxes. Trusts are also private documents and avoid the delay and publicity of probate court.
Every individual should have a will. A will indicates exactly where you want your assets to go upon your death. Dying without a will, or dying intestate, leaves it up to the laws in the state where you die on how your assets are to be distributed which may not coincide with your own personal wishes and adds delay to the administration of your estate. A will is also the best place to indicate who you want to be the guardian of your minor children if you die before the children reach the age of majority. Even if you have a trust, a will is used to distribute assets outside of the trust. A person’s assets may include real estate, bank accounts, business interests, insurance policies, investments and retirement accounts.
Estate planning is as individual as we are as women. It is a necessary reality of our lives to effectively carry out our wishes in our deaths. It may be the final chapter for us as caretakers.
Mary-Anne E. Martell, Esq., is Senior Legal Counsel and Founder of Seacoast Law. A boutique law firm in Westbrook specializing in estate planning, real estate, corporate and equine. Mary-Anne welcomes comments or questions at law@seacoastlawme.com or (207) 591-7880.
Thursday, October 4, 2012
Presenting the new Mr. & Mrs. Merrill!
Seacoast Law is proud to announce that Attorney Shannon Esty married her long time love, Bryan Merrill, on September 22, 2012.
Wednesday, September 19, 2012
The Benefits of Small Business Bankruptcy
In this economy, as a corporate business attorney, I am seeing a steady increase in the number of small business clients that are struggling to juggle a significant amount of debt. While there are some individuals that cringe at the thought of filing bankruptcy, under the right circumstances, bankruptcy can help you reorganize your debts to save your business, wipe out your personal liability for those business debts, or simply liquidate the company leaving you debt free. The legislative intent of the federal bankruptcy code is to promote entrepreneurial business ventures while providing legal remedies if those ventures falter. It is not news that large corporations, advised by a bevy of attorneys, have utilized the federal bankruptcy code for years.Look at Donald Trump. Cutting your losses and having a fresh start makes good business sense.
Depending on your business goals, this can be accomplished by filing a personal bankruptcy, business bankruptcy, or both.
Who Is Liable for Business Debts?
If you are a sole proprietor or a general partner of a partnership, you are personally liable for the obligations of your company. This means that if the business does not pay its debts, creditors may be able to take your personal assets to satisfy those debts. The majority of my small business clients are operating under a type of corporate formation, for both tax and liability benefits.If you are a limited partner or your business is a corporation or limited liability company, you are usually not personally responsible for those business debts. Your creditors can only go after business assets to satisfy those debts, taking your personal assets, like your home, right out of the mix. However, you may still be liable for those business debts if you cosigned or personally guaranteed the debt.
What Are My Bankruptcy Options?
Chapter 7, 11, and 13 bankruptcies each offer certain benefits and also certain drawbacks to the small business owner. Determining which chapter is right for you depends solely on your type and amount of debt and how your business is legally formed under the State of Maine.Chapter 7 Bankruptcy
Under the federal bankruptcy code, a Chapter 7 bankruptcy filing can be utilized by both individuals and business entities alike.Chapter 7 Bankruptcy for a Business Entity
If you have a partnership, corporation, or a limited liability company, you can file a Chapter 7 bankruptcy on behalf of your business. Under these circumstances, a Chapter 7 filing is used primarily to close and liquidate a business' assets. The business does not receive a discharge and cannot use Maine statutory exemptions.When the case is filed, a bankruptcy trustee is appointed to sell the business' assets and distribute the proceeds to the business' creditors. It is usually an attractive option for small business owners who wish to close their business and do not want to deal with selling assets and negotiating with their creditors. However, a Chapter 7 business bankruptcy does not eliminate any personal obligations on any business debts.
Personal Chapter 7 Bankruptcy
If you are a sole proprietor then your business cannot file Chapter 7 bankruptcy on its own. A sole proprietorship is not a separate legal entity from its owner. All business assets and debts are also the debts of the individual business owner. As a result, you must file a personal bankruptcy to get rid of business debts. The benefit of this is you can wipe out both personal and business debts while using exemptions to protect business assets. This means you may be able to continue operating the business even after bankruptcy.Also, if you were on the hook for the debts of your partnership, corporation, or limited liability company, a personal Chapter 7 can wipe out your personal liability for business debts. As a result, many small business owners who file a Chapter 7 business bankruptcy also file personally as well.
Chapter 13 Bankruptcy
You Cannot File Chapter 13 for a Business Entity
You can only file a Chapter 13 bankruptcy if you are an individual. A business cannot file Chapter 13 as a separate entity.As we mentioned, a business entity cannot file a Chapter 13. However, if you are a sole proprietor, you and your business are considered the same entity. So if you file a Chapter 13 all business debts are automatically included in the bankruptcy. Chapter 13 is designed to let you keep all property and reorganize your debts through a repayment plan so it is a good choice for sole proprietors with a lot of assets.Personal Bankruptcy Under Chapter 13
In addition to being used by sole proprietors, Chapter 13 bankruptcy allows other small business owners to discharge their personal liability for business debts. A Chapter 13 is usually used by small business owners with a lot of personal assets or who don’t qualify for a Chapter 7.Chapter 11 Bankruptcy
Both individuals and businesses can file Chapter 11 bankruptcy but it is significantly more complicated than both Chapters 7 and 13.Chapter 11 for Business Entities
Chapter 11 is known as the business reorganization bankruptcy. It is used by businesses who wish to continue operating while reorganizing their debts through a repayment plan. Generally, it is a lot more expensive and complex compared to a personal Chapter 13 reorganization and has additional requirements such as filing ongoing operating reports and the appointment of a creditors’ committee. Further, creditors must usually vote on and approve a plan before it can be confirmed.However, if your business has less than $2,343,300 worth of debt, it can be classified as a “small business debtor.” The small business Chapter 11 usually proceeds more quickly because a creditors’ committee is not required and there are fewer hearings.
Personal Chapter 11 Bankruptcy
A personal Chapter 11 is rarely used because a better alternative exists under Chapter 13 for individuals. However, individuals with more than $1,081,400 of secured or $360,475 of unsecured debt are not eligible to file a Chapter 13 and may be forced to file Chapter 11 bankruptcy.
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