Baton Rouge Legal Blog

There are a number of ways people in Louisiana can structure their estate to protect assets from a divorce. Parents may want to place assets intended for their children in a revocable trust with a protector. The child can be named as the trustee, but the protector takes over if there is a lawsuit or other issues that could cause the assets to be seized.

This type of trust can also protect a child's inheritance from a stepparent in case one parent dies and the other remarries. However, there are other types of trust that can also protect assets to varying degrees. The irrevocable asset protection trust puts the control of assets in the hands of an outside trustee and may also include a protector. Couples who want more control over their assets may opt for a spousal lifetime access trust which offers fewer protections but does take the assets out of the estate so they are not subject to estate or gift taxes. While the estate tax exemption is currently around $11 million, it is scheduled to drop in 2026 and could be changed again at a later date.

There are several mistakes that entrepreneurs in Louisiana and elsewhere tend to make when purchasing their first businesses. For instance, they may take on more debt than they can afford to repay. Individuals who spend too much to acquire a business may not have the cash needed to pay employees or take other steps to expand the company.

It is also a mistake for a person to purchase a business that he or she is incapable of running. An entrepreneur who doesn't have the skills, knowledge or passion for a given industry is wise to stay away from companies within that sector. Regardless of what type of business a person wants to buy, it is important to do due diligence before completing a transaction. At a minimum, a buyer will want to know why the company is being sold. He or she will also want a clear idea of a company's financial health before agreeing to become its new owner.

Many people in Louisiana recognize the Ikea brand name. The Swedish company supplies furniture to millions of households, but the instability its three-drawer Malm dresser has left as many as eight small children dead and the company owing millions of dollars for product liability settlements. Ikea's most recent settlement with the family of a 2-year-old boy who was killed when the dresser tipped over totals $46 million. Three other similar settlements with families cost the furniture maker an additional $50 million.

The boy's father found his son asphyxiated with his head lodged between the middle and top drawers of the tipped-over dresser. The parents had bought the dresser in 2008, but their lawyer stated that Ikea never notified them about the Malm dresser recall that occurred in 2016. According to the lawsuit, the company knew about the dresser model's instability and threat to child safety but failed to take effective actions to warn consumers.

There are many factors that business owners in Louisiana should keep in mind when it comes to selling their companies. By timing the sale properly, they are more likely to obtain top dollars for their organizations. There are many factors that may determine how valuable a company is to a buyer. For instance, if there isn't a lot of money available to purchase a business, it may sell for less than it otherwise would.

If there is a lot of competition in a given industry, it could also influence how much a company is worth to a buyer. In some cases, the presence of new companies in an industry may suggest that it is growing, which may make existing businesses within that sector more appealing. Business owners are encouraged to give themselves one or two quarters to complete the sale process.