Asking the Right Questions

Are you, or someone you know, beginning the search for an estate planning attorney? If yes, then congratulations! So, where do you go from here?

What Not to Do

Do you simply start calling random local attorneys from the phone book and ask how much each charges for an estate plan? No.

Think about it. If you had chest pains, would you call local cardiac surgeons and ask for bids on how much each charges for open heart surgery? Why not? First, the surgeons would not know whether you were having a heart attack or if it was last night’s lasagna. Similarly, avoid any estate planning attorney who is willing to render a “diagnosis” without conducting a thorough examination of your unique circumstances and objectives.

What You Should Do

Traditionally, one of the best sources for professional referrals, whether to doctors, dentists, accountants, financial professionals or attorneys, is people you already know and trust who have used such services. A personal referral from a trusted family member, friend, or colleague is a strong referral. In addition, the Internet is a wonderful resource for research of all kinds, including finding and vetting estate planning attorneys. Just run a Google search for your location and “estate planning” to begin the process.

What You Should Do Next

Once you have identified some local estate planning attorneys, the process is only just beginning. You do not want to take any shortcuts when it comes to making proper estate plans to manage, administer, and eventually distribute everything you have to those you love most. Here are three things to evaluate when selecting the right estate planning attorney for you: focus, reputation, and commitment.

What is Your Focus?

Have you ever heard the expression that someone is the “jack of all trades, but the master of none”? That is not the attorney you want planning your estate. For example, if criminal defense, appellate litigation, and admiralty law are listed as “practice areas,” can you be confident regarding the depth of their experience when it comes to trusts, estates, real estate, and tax law?

When it comes to estate planning, the more your attorney is focused on estate planning the better. Be sure to visit the website of each attorney under consideration. Does the attorney have robust and educational estate planning content? Does the attorney let you know what to expect when it comes to his or her estate planning process?

What is Your Reputation?

It is hard to hide on the Internet. All things good and bad about something or someone can usually be found. There are multiple websites devoted to rating attorneys in every practice area. Consequently, it never hurts to find out how other attorneys and clients have rated a given attorney in terms of ethical standards and legal ability. Most of these websites will come up in response to your initial Google search.

What is Your Commitment?

Since the only constant in life is change itself, your estate plan likely will need updating over time. An attorney should have a process to stay in touch with you and remind you to review your estate plan.

© 2015 Integrity Marketing Solutions. All Rights Reserved.

This Close to a Clean Get-Away

So, you have spent many days, nights, weekends, and holidays building your family business – not to mention blood, sweat, and a few tears. While others were working regular hours and punching a time clock, you were taking care of customers, meeting payroll, paying for employee benefits, and contributing to the United States Treasury. On behalf of a grateful nation, thank you.

Are You Ready?
Is it time to think about spending more time with family, taking up golf, enjoying a little travel, or furthering your favorite charitable causes? What does that look like and, even more importantly, how do you get there from here?

Assuming you will not be selling to any family members, how do you sell your business for what it is worth in a win-win-win for you, your loyal employees, and the buyer? Very carefully.

Look Inside
Are there one or more key employees already inside your business who could take over the reins? If yes, then have you thought about selling to them? It would be a great arrangement for you if third- party financing were used to cash you out upfront.

However, if you have supreme confidence in the ability of these new “insider” owners to succeed, then owner financing may give you a higher return and spread the tax consequences over multiple years. In the right circumstances, an employee stock ownership plan (ESOP) provides a ready market for the business owner to sell and gives the employees tangible skin in the game as the new owners.

Look Outside
If an “inside job” is not in the cards for the sale of your business, then the sale of your business to an outside party is another alternative. One often-overlooked possibility is approaching one or more loyal customers. For example, if you have a popular barbecue restaurant, perhaps some of your regulars might want to buy it as an investment or to learn to smoke ribs for a living. As part of the sale, you could stay on long enough to teach them your secret recipes and leave knowing that your “baby” will continue without you.

One traditional arrangement is to sell to a friendly competitor. Buying your business would increase the market share, product line, or efficiencies of your competitor. If you go down that road, do not unwittingly disclose the “secret sauce” of your business success, including proprietary customer lists, processes, and trade secrets. Be mindful of such things as confidentiality agreements and non-compete agreements while you are at it.

Be Prepared
Before you consider any of these “inside” or “outside” options, think like a Boy Scout and be prepared. This is the time to put the polish on all of your business operations – from marketing and sales to production, legal, and accounting. Regarding accounting, make sure there are no loose ends with the IRS and get a business valuation to see where you stand.

Assemble Your Team
Finally, do not go it alone. As you put the polish to your business operations, you will need to assemble your team of trusted advisors to make sure you have all the bases covered. To have the most successful outcome for all concerned, assemble your legal, accounting, and financial advisors early in the process. Not only will these advisors help you stay out of trouble, but they may know of potential buyers for your business.

© 2015 Integrity Marketing Solutions. All Rights Reserved.