• Often life insurance owned by the business or by the other owner can be an important tool to assure the availability of liquid funds to purchase the ownership interest of a deceased owner.
• In the absence of life insurance, the purchase price for the deceased owner’s interest will need to come from the operating income of the business; this may put a big strain on the cash flow of the business.
• Although disability buy-out insurance is available, it often is very expensive. For that reason most buy/sell agreements provide that the ownership interest of a disabled owner is paid for over a number of years with the payments coming from the operating income of the business.
• The goal in planning is to balance the need of the deceased/disabled owner to be bought out with cash as quickly as possible against the need of the remaining owner to continue to operate the business profitably.

We can help you sort out all of the complex issues associated with planning for business continuity following the death or disability of a business owner.

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• The purchase of a condominium unit is the purchase of an ownership interest in a specific housing unit that is part of the condominium complex.  In addition to the specific unit, the purchaser also owns an undivided interest in the common areas, such as parking lots, hallways, gardens, swimming pools, and/or a clubhouse. Purchasing a condominium is similar to purchasing a single family home in that you receive a Deed (recorded on the Land Records) as evidence your ownership interest.
• In contrast, the purchase of a co-op is the purchase of stock in a Cooperative Housing Corporation. The Corporation owns the real property and you own a part of the Corporation. Although your shares of stock in the Corporation entitle you to exclusive possession of a specific unit, you, individually, do not own any of the real property. Your ownership interest is evidenced by shares of stock in the Corporation (personal property) and not by a Deed to a specific unit (real property).

If you are purchasing a condominium or co-op it is important to review all applicable documents before obligating yourself to proceed with the transaction. We can help you make an informed decision by explaining your rights and responsibilities.

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• Although federal and state law prohibits a nursing home from requiring a child to guarantee the payment of a parent’s nursing home costs, a child, inadvertently, may end up volunteering to take on that responsibility.
• Whenever possible, have all admission documents signed by the parent who will be entering the nursing home.
• If you are signing for a parent because you are named as an agent in a Durable Power of Attorney Instrument, sign “Name of Parent, By, Name of Child, Agent”.
• If you are signing for a parent because you have been appointed as a Conservator by the Probate Court, sign “Name of Parent, By, Name of Child, Conservator.”
• If the nursing home requires one or more names to contact in case of emergency, use the phrase “contact person” not “responsible person”.

Please contact our office if you need help reviewing nursing home admission agreements. We can suggest language that will avoid the inadvertent assumption of financial responsibilities by an adult child.  

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• Be sure the police are at the scene and get an accident case number from the officer who conducts the investigation.
• If there are witnesses, try to get names and contact information.
• If your car has been damaged take photographs of the damage when you get the car back to your home. If your car has been towed to a garage take the photographs at the garage.
• Call your automobile insurance company and report the accident. This should be done even if the accident is not your fault.
• Make an appointment to see your primary care physician.
• Contact our office.

We have years of experience helping people who have been involved in automobile accidents, and our staff includes a nurse. We know what needs to be done to protect your legal interests. Let us help you.

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• For calendar years 2011 and 2012, the federal estate tax exemption for property passing to non-spouse beneficiaries is $5,000,000.00; the Connecticut estate tax exemption remains at $3,500,000.00.
• A federal estate tax exemption of $5,000,000.00 and a state estate tax exemption of $3,500,000.00 will allow for the simplification of many previously more complex estate plans.
• If a family member died in 2010 and a step up in the cost basis of property owned by the decedent is important, a special federal tax return describing the property must be filed no later than September 17, 2011.
• In most instances where a family member died in 2010, filing this special federal tax return before September 17, 2011 will be important. Here is an example. Dad’s house cost $50,000.00 when purchased, but was worth $400,000.00 when dad died in 2010. Tom, son, plans to sell the house. If Tom does not file the return, he will need to report a capital gain of $350,000.00 when he sells the house ($400,000.00-$50,000.00). If Tom does file the return, there is no capital gain because the cost basis will have been stepped up to $400,000.00.

We encourage you to call us to discuss how these changes in federal law affect your estate planning needs. We have experience preparing sensible and cost effective estate plans for individuals and couples.   

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