Baton Rouge Legal Blog

Many small business owners in Louisiana decide to sell their business when they no longer want to operate it themselves, whether it is because they want to move on to a new venture or they have decided to retire. There are several key considerations for business owners who are about to sell their company.

Financial records should be accurate and up to date. This is essential for pricing a business and getting the best deal in a sale. Business owners should expect to present at least three years of prior business records to potential buyers. Working with an accountant is a good idea for owners who want to develop solid accounting practices.

Most trusts created in Louisiana are done so as an estate planning tool to transfer property upon the passing of the settlor, the person who created the trust. Typically, the estate is settled reasonably quickly and the trustee distributes the assets to the beneficiaries without incident. In some circumstances, however, there may be a reason the estate remains open and the trustee is charged with administering the assets for the benefit of beneficiaries throughout a period of time. If problems arise with a trustee, a beneficiary may have grounds to object.

Issues regarding trust administration often come up when beneficiaries are to receive their distributions in the future, typically triggered by their age. Estate planning experts point out that although the trustee has powers to protect the estate and administer it according to the settlor's wishes, the beneficiary has rights too. One fundamental right is to be provided with a copy of the trust.

Many people in Louisiana consider how they can leave a legacy behind to their children or other loved ones. Because of their flexibility, trusts can be an excellent option that allow people to transfer their wealth while avoiding the exposure and delay of the probate process. Trusts can also provide people with significant tax incentives during their lifetime. However, some people hesitate when creating trust funds for their children. Parents worry that knowing that there is a large sum of money waiting for them in adulthood will discourage their child from pursuing academic or career excellence.

When a trust is created, the trustee normally has the responsibility to notify the beneficiary of the trust as well as provide details about its administration. Silent trusts, on the other hand, provide a mechanism for people to create an irrevocable trust for the benefit of another without notifying the other party. The period of silence could stretch for a named number of years or until the beneficiary reaches a certain age, such as 25. The trust's creator waives the trustee's duty to inform, allowing it to remain secret while the tax and estate planning benefits of the trust go into effect immediately.

Setting aside money for the college education of a child, grandchild or other loved one in Louisiana or elsewhere is a smart and compassionate thing to do. A trust is one way to accomplish this goal as it provides a lot of flexibility with its terms and conditions. One of these types of trusts is called a pot trust. It is essentially a pot of money from which beneficiaries can take funds when they need them. One issue with this type of trust is that the assets may be distributed unequally, causing division among the beneficiaries.

Alternatively, separate trusts can be set up for each beneficiary to avoid problems of unequal distribution. A potential problem with this solution is that each trust may not have the funds necessary to provide for the beneficiary's education, especially if one of them decides to go to an expensive private school. A private college usually costs several times the amount of a public one.