Admittedly, this seems like a whopping sum to most of us, but for a man who earned millions of dollars for just one episode of the show, this amount appears…off somehow. Shouldn’t he have had much more money than that? The answer lies in the details of estate planning and using trusts as part of your plan.

In this blog article, we’ll look at Perry’s estate plan and pull out some valuable lessons. These lessons pertain to all of us, not just the rich and famous. To find out how trusts can benefit you, read on.

What is a Trust?

A trust is simply a legal arrangement where a person (sometimes called a “settlor”) transfers assets to someone ( a “trustee”) who manages those assets for the benefit of someone else (the “beneficiaries”). Many types of trusts can be used for many different purposes, including estate planning, asset protection, and providing for loved ones.

The trustees appointed to manage a trust play a crucial role in fulfilling the settlor's wishes. Choosing the right trustees is essential for the effective management of a trust. Trustees should be trustworthy, financially responsible, and knowledgeable about estate planning.

If you’ve felt this way before, you're not alone. A recent Forbes article discusses the discomfort that abounds in the American networking style and contrasts the American way with how Italians network. The American approach to networking often seems forced and self-serving. However, the Italians network in a way that allows business connections to form naturally, based on genuine relationships and a desire to help others, which is easier and more satisfying. So, let's explore how you can promote your business by networking more effectively with a few strategies from our friends across the Atlantic. 

The Problem with American-Style Networking

You've probably been there. You walk into a crowded room, name tag slapped on your chest, and immediately feel the pressure to "work the room." Everyone around you is on a mission to collect as many business cards as possible, and it feels superficial, or like a waste of time.

You might think you're too young to be having a stroke—but that's exactly what happened to Jenny Bristow, the 40-year-old founder and CEO of Hedy & Hopp, a healthcare marketing company based in St. Louis. 

Jenny’s story is a wake-up call for every business owner. You never know when a personal crisis might strike, and you need to be ready.

Planning could make all the difference in keeping your business afloat and thriving, just like Jenny managed to do. So, in this article, we’ll look at what advanced planning is, what strategies you can take to get your business ready for the unexpected, and what you can do now to get your plan in place.

WHAT IF YOU FOUND YOURSELF IN A CRISIS? 

Jenny Bristow never expected to suffer a stroke, especially at just 39 years old. While enjoying a vacation with her husband in Arizona, she suddenly lost control of her left side and struggled to speak. 

In Part 1, we explored supercharging your retirement accounts, making the most of Section 179 deductions, turning your home office into a tax haven, becoming a charitable giving ninja, and wining and dining for Uncle Sam. If you missed it, go back and get the goods!

This week, we're diving into five more game-changing tax moves that will have you looking at your business finances in a whole new light. From giving your business structure a makeover to conquering estimated tax payments, these strategies are designed to help you finish 2024 strong and set you up for success in the years to come. So, grab your favorite caffeinated beverage, settle into your tax-deductible office chair, and let's explore the final five moves that could transform your small business's financial future.

Moreover, I wouldn’t be a lawyer if I didn’t give you a disclaimer (or use the word “moreover”): this article contains general information for small business owners and is not tax or legal advice. Always consult an expert who can determine which tax strategies are best for your business and ensure you implement them correctly.

It’s an opportunity to learn, grow, and come back stronger. Many successful entrepreneurs have failed before finding their winning formula.

If your last business didn’t work out, don’t lose hope. Here are 5 essential strategies to bounce back and set yourself up for success.

Strategy 1: Reflect and Learn From Your Mistakes

Understanding what went wrong is the first step to getting back on your feet. It’s easy to get caught up in the blame game, but this is the time to take a hard, honest look at your business.

What mistakes did you make?

Were there signs you ignored? Maybe the market wasn’t right, the timing wasn’t right, or perhaps you overspent on things that didn’t matter. Whatever the case, reflecting on what happened can help you avoid making the same mistakes in the future.

Her tragic story sheds light on a little-known issue that affects millions of Americans: unclaimed property. 

In this blog article, you'll discover what unclaimed property is, how to find it, and why proper estate planning could have ensured Ms. Benerofe received her inheritance.

But before we dive into her story, let’s get clear on what unclaimed property is, and how it could impact you and your family. 

WHAT IS UNCLAIMED PROPERTY?

Unclaimed property refers to financial assets that have been abandoned or forgotten for a specific period, typically three to five years.

The financial institutions can’t hold on to your money indefinitely. If no one comes forward to claim the assets, the law requires these assets to be turned over to the state for safekeeping. Typical forms of unclaimed property include:

This case fundamentally changes how the IRS values businesses, potentially leading to higher estate taxes for you and your family. 

I’ll break the case down for you in easy-to-digest bites in this article. I’ll also discuss the implications for you and your business and finally guide you to get the support you need so you’re not negatively impacted. 

The case is somewhat technical, so stick with me because understanding this case could save your family hundreds of thousands of dollars or more. 

The Facts

Two brothers, Michael and Thomas Connelly, owned a company called Crown C Supply (“Crown C”). Michael owned 77.16% of the shares, and Thomas owned the remaining shares, or 22.82% of the company. Like many business owners, they wanted to keep the company in the family after either died. So, they created an agreement to ensure this happened. The agreement gave the surviving brother the right to decide whether he wanted to buy back the deceased brother’s shares. If he chose not to, Crown C was obligated to purchase the shares. 

Fast forward 28 years - you've long since ended that relationship, lived a full life, and then died. But you never changed that beneficiary designation, and now that ex-partner is entitled to your million-dollar retirement nest egg while your family is left with nothing. 

Sound far-fetched? It's not. This is precisely what happened in a high-profile lawsuit involving Margaret Losinger and her former boyfriend, Jeffrey Rolison, and his estate and Proctor and Gamble, the Company he worked for during those 28 years.

Here’s a closer look at this shocking real-life story, the lessons we can learn, and how having a trusted advisor at every stage of life can protect you from making a million-dollar mistake like this or any other mistakes that you just might be overlooking. 

What Happened?

In the 1980s, Jeffrey Rolison dated Margaret Sjostedt, and the two lived together. Rolison worked at a Procter & Gamble (P&G) plant, where he signed up for a profit-sharing and savings plan.

But with so many options out there, how do you know which ones are the best fit for your family’s unique needs?

At our firm, we’ve worked with countless families to integrate education funding into their broader estate plans. In this guide, we’ll walk you through some of the most effective tools available today, highlight the pros and cons of each, and explain how they can be seamlessly integrated into your existing plan.

The Most Effective Tools for Education Funding

When it comes to saving for education, there are a variety of accounts and strategies available—each with its own set of advantages and considerations. Here’s a closer look at a few of the most powerful tools:

1. 529 Plans: A Versatile, Tax-Advantaged Option

529 Plans have become the go-to option for many families, and for good reason. These tax-advantaged savings plans allow your contributions to grow tax-free, and withdrawals remain tax-free as long as they’re used for qualified education expenses. In recent years, 529 Plans have only improved. Since 2020, they’ve expanded to cover not only college tuition but also K-12 education and even apprenticeships.

The default method is court, but it’s time-consuming, expensive, and public. As a business owner, a court case can not only harm your bottom line but also your brand’s reputation. Luckily, there are other methods to settle disputes that don’t take the same amount of time and money and don’t expose your affairs to the masses. Last week, we discussed arbitration, and this week, we’ll look at another method used to settle disputes: mediation. 

Read on to learn what mediation is, how it differs from arbitration and litigation, and why it can benefit you as a small business owner.

What Is Mediation?

Mediation is an alternative dispute resolution (“ADR”) process where a neutral third party, called a mediator, helps you and the other party in a dispute reach a mutually acceptable solution. Unlike a judge or an arbitrator, the mediator does not make decisions for you. Instead, they are trained to facilitate communication, help clarify issues, and explore possible solutions. Mediation is typically voluntary, meaning both parties agree to participate and work towards a resolution.