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Many entrepreneurs refer to their business as their “baby” and rightfully so. Like a child, entrepreneurs nurture their business from an idea through conception, to growth, and maturity. Running a business is much like raising a child. Both require a lot of time, tears, resources, and effort to be successful. People often prepare for what would happen to their children in the event they pass away unexpectedly, however, they don’t necessarily consider what would happen to their business – and how that would affect their family. While it can be scary to consider, life is uncertain. Creating an effective estate and succession plan is an ongoing process that will change in each phase of the business’s life.
Business owners pour blood, sweat, and tears into their business, often struggling and making sacrifices for the company to survive, in an attempt to create a legacy that will provide for themselves and their families. But what happens when they are no longer around to run their business? Entrepreneurs should be aware of the unique issues they face when creating an estate plan. They must take action to ensure their business continues on long after they are gone.
Entrepreneurs often think that estate planning and succession goals happen later in life or at maturity of the business. Let’s face it, the upkeep of running a business is more than enough to worry about, much less considering one’s own mortality in their younger years. In the past, young entrepreneurs and start-up owners were less likely to plan for these things right out of the gate. As we continue to come out of the pandemic, the roles have reversed for the first time in history, allowing 18-34 year olds to take the lead when it comes to creating an estate plan.
Often business owners don’t consider what would happen to their “baby” without a leader. What happens after the owner passes away – when the court system ties up the business assets for months or even years until your estate is settled? Or even worse, they hand the business over to an unprepared family member. Without a proper estate and business succession plan in place, these scenarios are entirely likely.
Successful estate and succession planning requires a team of professionals. The team should include an estate planning attorney, accountant, financial planner, and an insurance agent. An important first step in creating the plan is consulting with an estate planning attorney and then ensuring that all of the professionals are in communication with one another in order to accomplish their succession goals.
What Are Elder Law and Special Needs Planning?Elder law and special needs planning involve preparing for expected and unexpected life circumstances, including the possibility of becoming incapacitated as well as protecting and providing for future needs of loved ones with disabilities.At its core, Elder Law focuses on the unique needs of older persons and practice areas that address issues of concern for aging adults, adults with disabilities/incapacity, their families and caregivers. Unlike traditional estate planning, Elder Law begins by assisting you with issues associated with a long and healthy life, rather than simply planning for death. It mixes legal and practical issues such as being able to continue residing in your home if you had a chronic condition, having someone help in managing your finances, and not becoming a victim of financial abuse in the process. Elder law endeavors to help you solve the problem of not knowing what you dont know.Special Needs Law focuses on solving legal problems for individuals with special needs and their caregivers. Although there is no uniform definition of special needs, the phrase describes individuals with a wide variety of physical or mental conditions who require assistance with personal care needs, activities of daily living, paying bills, managing finances, etc., who may be vulnerable to and need protection from exploitation or abuse, and who may need access to public benefits or any number of other types of assistance. If you currently provide care for a child or loved one with special needs (such as mental or physical disabilities), you must have contemplated what may happen to him or her when you are no longer able to serve as the caregiver. Frequently, parents and grandparents are concerned about how their children and grandchildren will be cared for after the parents or grandparents deaths and want to plan in advance to protect their special needs loved one. Elder Law and Special Needs Planning encompass many different fields of law, including, for example: Disability planning, durable powers of attorney, living trusts, advance directives, other tools to delegate management and decision-making to another in case of incompetency or incapacity Estate planning, including the management of finances and assets during life and disposition on death using trusts, wills, and other instruments Special/Supplemental Needs Trusts Conservatorships and guardianships Long-term care planning and placements Trust and probate/estate administration Elder abuse and financial exploitation Medicaid planning Retirement and Social Security planningWhen each day seems to present a new challenge, thinking about the future can be overwhelming. A plan can help break things down into achievable pieces. No matter what age or stage, it is getting started that counts.This article is for informational purposes only and is not intended to be legal advice.This article was submitted by Ashley Day, Esq., A Day Law, LLC. Reach her at 251-277-3377.
The short answer is no, they are not the same. A DNR stands for a DO NOT RESUSCITATE order. A Living Will is a completely different document that is used during a very different time.A DNR should be entered into at your doctors office or in the hospital, not at your local estate planning and elder law attorneys office.Typical estate planning documents that an attorney will assist you with would include a financial and medical power of attorney as well as a Last Will and Testament and maybe a Trust of some type. The confusion often lies in the fact that in a medical power of attorney, you will often see a Living Will as a part of the document.This is collectively known as an Advance Healthcare Directive if medical power of attorney and living will are together in one document. The Living Will does not kick in until the individual is end-stage medical. While there is a very long medical definition for this term, I simply like to state it as when two qualified physicians put in writing that there is no realistic hope of recovery and that you will always remain vegetative, comatose, permanently unconscious, and terminally ill. A medical power of attorney, living will, or advanced health care directive are often documents that are obtained from your estate planning and elder law attorney and not from your health care provider.On the other hand, a DNR or DO NOT RESUSCITATE order is intended to let emergency and other medical professionals know whether or not they should resuscitate you. Methods often used for resuscitation would be things such as defibrillators, breathing tubes, ventilators, CPR, and other invasive techniques.The DO NOT RESUSCITATE order comes into play when the heart has stopped beating or the person has stopped breathing. The medical power of attorney, on the other hand, comes into play when the person simply cannot answer questions for themselves. That could be for numerous other reasons, such as being under sedation or incapacitated, unconscious due to an accident, or unable to speak.Certainly, it does not necessarily mean that the heart has stopped beating or that you have stopped breathing. The Living Will does not kick in until the end of life, but the heart is often beating, sometimes due to heroic and lifesaving measures, but the DNR will prevent those heroics if that is your wish.We truly believe that it is imperative for you to talk to your estate planning and elder law attorney about the estate planning documents as outlined above as well as discuss with your doctor about a DNR order. While you are discussing the DNR order, we would also recommend that you have a conversation with your healthcare professional about a POLST (Physicians Order of Life-Sustaining Treatment). These are documents that will be obtained directly from your doctor and they will be able to assist you with the nuances of how they work.We hope this article provided insight into the definition of a DO NOT RESUSCITATE order and the difference between a medical power of attorney and a Living Will. If you would like further information about these items, contact our office. Wed be more than happy to assist you. Call us at (717) 845-5390.
It is very easy with everything that is going on in our country and our world right now, to be concerned about the pandemic and start to think about your own mortality and planning. While we recommend planning at all times to always be prepared ahead of time, this certainly provides a reminder for us to stop and take a look at our current situation to make sure that we have at least our basics in place. Powers of AttorneyEach person should have a financial power of attorney that authorizes another individual to make financial decisions on their behalf in case they cannot. They could be unable to because of an illness or an incapacitation or simply just not in town, or maybe they are traveling out of the country. We cannot stress the importance of having a financial power of attorney in place to avoid the necessity for guardianship. We have discussed in detail in other blogs and articles about powers of attorney and guardianships, and we would encourage you to please take a further look at those, and why it would become important to have a financial power of attorney in place.A medical power of attorney is an essential document that authorizes another individual to make medical decisions on your behalf if you are not capable or able to make those medical decisions for yourself. Although there is a healthcare statute in the state of Pennsylvania that will name the next of kin to be able to make those healthcare decisions in case you cannot, we stress the importance enough of having this document in place to ensure that the people that you want making those decisions can make them without unintended people being named as well. When you reach the end-of-life stage it's also important that you have in place a living will. If the living will is coupled in one single document with a medical power of attorney, that is also considered an advanced healthcare directive. We recommend having these documents in place to ease the burden on your family. This will save them from having to make those end-of-life decisions if two qualified physicians put in writing that there is no realistic hope of recovery that you will always remain end-stage medical or vegetative, comatose, permanently unconscious, or terminally ill. There is certainly a lot that goes into the medical definition, but plainly stated, it is imperative to decide for yourself how you would like those decisions to be made rather than to put the burden on a loved one to feel like they have to play God or pull the plug on their family member. Review Your Current Documents, Including Beneficiaries, to Ensure They Meet Your Needs and Desires We encourage anyone who has planning in place to not assume that it is up to date or that it is what their current wishes are, things change over time. It is also important to review all of your beneficiary designations on accounts, such as life insurance policies, annuities, retirement accounts, etc. Often, the most overlooked item is reviewing the beneficiary designations of an account, and it is probably the most critical thing that can screw up an estate plan. Please make it a priority to review your documents to make sure they accurately reflect your wishes. If you have questions or need to make some changes we would be more than happy to see you at one of our workshops to discuss the different documents and how they can assist you and your family. We certainly understand if there is any anxiety or stress that you are experiencing but encourage you to be prepared no matter what, which will give you a sense of comfort and security. If you would like further information about this topic or to learn more about our firm, please visit us at www.bellomoassociates.com or call the office at 717-845-5390.
At Safe Harbor Law Firm (formally known as Buff Law Firm PLLC), we focus on estate planning, elder law, and closely related practice areas. Our true focus, however, is helping families plan for and take control of their future. This can involve:Ensuring your assets will go to the people you want, when you want, in the manner you want after you pass awayPreparing for the possibility that you or your spouse will need expensive long-term careand helping you find ways to pay for itEnsuring that people you trust have the authority to make financial and medical decisions on your behalf in the event of incapacityProtecting your assets and those of your heirs against threats such as creditors, lawsuits, divorce, the high cost of long-term care, and moreGuiding your loved ones through the probate and/or trust administration processSafe Harbor Law Firm has helped families from all walks of life find solutions to challenges like these and many more. We welcome the opportunity to do the same for you. Ultimately, our goal is to help you enjoy the peace of mind that comes from having a plan in place for the future. We invite you to contact us for a personal meeting to discuss your particular needs and goals.