What Happens If a Business Owner Dies Without a Succession Plan?

As a business owner, it's possible you'll one day face claims that could reach beyond your company and threaten your personal assets. You can protect what you have from lawsuits brought against a company you own or hold a membership interest in, and the right strategies for you will depend on the unique situation of your business. A Queens business attorney is the best one to show you how to protect your assets from lawsuits. more How to Protect Assets from Lawsuits Form an LLC Under New York law, a member is not liable for the debts or obligations of the LLC solely because of their membership. For this to work, you'll need to file Articles of Organization with the Department of State, adopt a written operating agreement, and keep the company's finances completely separate from your own. Always maintain separate bank accounts, distinct contracts, and clean records to reduce any chance that a court will pierce the entity and reach your personal holdings. Get Good Insurance Even with an LLC, you'll want and need liability insurance. A solid commercial general liability policy and any needed professional coverage will be able to absorb many claims before they even threaten the business, let alone your personal property. Review the limits each year and confirm that it meets your needs. Know and Transfer Your Assets Make sure you know exactly what you own and what's potentially vulnerable. Then you'll know best how to protect everything. Certain personal assets are already protected no matter what kind of business you have, including equity in your primary residence up to a certain amount, life insurance proceeds and annuity contracts (when the policy is properly structured), and retirement accounts under ERISA or qualifying individual retirement arrangements. You can also transfer assets into an irrevocable trust for the benefit of your family. Once the transfer is complete and you have no beneficial interest in those assets any longer, they generally sit beyond the reach of your future creditors. New York does not recognize self-settled trusts that name you, the creator, as a beneficiary, so the trust must name someone else as beneficiary. Be aware that you need to move assets into the trust before a claim is made against your company. If you try to make a transfer once a claim's been made, it can be nullified as fraudulent. Make Sure Your Documents Are In Place Business succession tools like buy-sell agreements and carefully drafted operating agreements will keep any ownership transitions orderly and reduce the chance that a dispute or unexpected death could force a fire sale of company assets. Be sure that you're reviewing your overall risk profile at least once a year with your attorney. New contracts, a change or addition of location, or a change in the type of work you perform can all create fresh exposure and require that you adjust your entity's structure, insurance limits, or ownership titles before any problem appears. Talk to a Queens Business Attorney Contact DeCandido & Azachi today to set up a free consultation on your situation. We serve the entire Queens area from our Forest Hills, NY office.

Probate here in Nassau County can be expensive and time-consuming, so it's natural to ask how to avoid probate for your assets. New York law does offer several reliable paths forward. more How to Avoid Probate in Nassau County: 5 Ways to Go About It There are several things you can do to get your assets passed directly instead of moving through the full Surrogate's Court process. Each method has its own requirements and trade-offs, though, so the right combination depends on the types of property involved and the goals you have for control and privacy. Always talk to a lawyer to get specific advice. Revocable Living Trusts A revocable living trust is a legal arrangement you create while alive. You transfer ownership of assets into the trust and usually name yourself as trustee. This gives you complete control to use the property, sell it, or change the trust terms at any time; but when you pass away, the successor trustee you named steps in and distributes the trust assets according to your instructions. Because the trust is the owner of the assets, not you or your estate, those assets do not enter the probate process. Pour-Over Will Many people sign a pour-over will when they set up a trust. This just directs that any assets still in your individual name at your death are to be bequeathed to the trust. This keeps most property out of court while providing a safety net for anything you might have overlooked while setting up the trust. Joint Ownership with Rights of Survivorship This is a popular option for married couples. Setting up your ownership this way allows the surviving owner to receive the full title automatically upon the other owner's death. This structure works for some bank accounts, brokerage accounts, vehicles, and real estate, too. You just need to make sure these are all set up the right way. Beneficiary Designations on Financial Assets Many accounts and policies let you name a beneficiary directly with the financial institution or insurance company managing the account. Life insurance proceeds, retirement plans such as IRAs and 401(k)s, bank accounts with payable-on-death forms, and brokerage accounts with transfer-on-death registrations all pass straight to the named person or persons upon proof of death. These transfers happen outside probate. The key here, however, is remembering to keep the designations current as life changes. Transfer on Death Deeds for Real Property New York law lets property owners record a transfer-on-death deed for real estate. You keep full ownership and control during your lifetime and can revoke or change the deed by recording a new one or by selling the property, but, upon your death, the named beneficiaries receive title without any need to go through probate for that specific parcel of land or house. Talk to Us to Learn All the Options in Nassau County These are just five general options. There are more, and what's best for your estate depends on the specifics. Contact DeCandido & Azachi in Forest Hills, NY today to get strategic advice on your estate planning. We also serve clients in Plano, TX.

A power of attorney is a legal document that lets you appoint someone you trust to handle your affairs if you become unable to do so yourself. Creating one now allows you to assert control over your own life and future while you still have it, and that control will continue if you become incapacitated. A Forest Hills lawyer can help you craft your documents so they do exactly what you want. more Understanding a Power of Attorney Powers of attorney are governed by the General Obligations Law, Article 5, Title 15. For your directions to be valid, you'll need to sign the document in front of a notary and two witnesses who are not named as agents. Once it's in place, then, if you lose capacity due to illness or injury, your nominated person would take over to direct your finances. You can make the power of attorney as broad or narrow as you want. A general power covers almost everything: banking, real estate, taxes, insurance, and investments. But if you don't want a single person to have complete control, you can always limit them to specific tasks, such as selling one piece of property or handling a single bank account. Healthcare decisions require a separate healthcare proxy to be nominated and aren't covered by the standard power of attorney document (though you can nominate the same person to both care for your finances and also make medical decisions for you if you cannot). The two documents work together as part of a complete plan. Why You Need One Sooner Rather Than Later Life changes fast. A sudden stroke, a car accident, or a progressive condition like dementia that moves more quickly than you were told to expect can all leave you unable to pay bills, file taxes, or make decisions about your home. Without a power of attorney in place, your family would have to go to court to get someone appointed to take care of these things. That makes the whole thing public, expensive, time-consuming, and puts the final decision on who controls your finances in a judge's hands instead of yours. Plus, during the delay, your estate could suffer loss. But if you've set things up correctly, then your chosen agent can step in immediately to deposit your Social Security checks, pay your mortgage, speak with insurance companies, or sell assets if needed for your medical care. You also protect yourself from family disputes. By naming one or more agents in advance and stating your wishes clearly, you reduce the chance that relatives will fight over who should handle your affairs. Many people assume a spouse or adult child can automatically handle everything for an incapacitated person, but New York law does not work that way. A power of attorney is one of the simplest yet most powerful tools you can create to protect your future and spare your loved ones unnecessary stress. Visit DeCandido & Azachi in Forest Hills, NY today to set up a consultation.