10 Down … Many, Many More to Go!
Brad Smith • November 4, 2019
It’s official. This month marks the 10th anniversary of Sivia Business & Legal Services! It’s hard to wrap my head around, honestly. We’ve come a long way–from a lone lawyer space to a four-attorney firm. I was once an army of one, but now we have our own office building(s) and a full time support staff. I am beyond grateful to all the wonderful clients. It’s been an honor that you’ve allowed us to work with you and advocate for you. I thank my colleagues who have used us as a resource and referred business to us. We continue to learn, grow and hone our skills thanks to you. Last but not least, all the staff members that have been with us throughout the years. You hold it all together and keep the practice running smoothly. We wouldn’t have made it to this point without everyone’s trust and support. It’s been an exciting journey and I look forward to the future. Cheers to many, many more successful years. Thank you.
A “Trust”ed Twist on Buy/Sell Agreements
A Cross Purchase buy/sell agreement is a popular strategy used in succession planning. In a typical cross purchase agreement, each owner purchases a life insurance policy for each of the other owners. So, for example, in a business with three partners, six life insurance policies are purchased. Naturally, the more owners involved, the more complicated and expensive this type of agreement can be.
But there is another option—a twist on the typical buy/sell. It’s called a Trusted Cross Purchase agreement. In a Trusted Cross Purchase agreement, only one insurance policy is purchased per person and the policies are then held by a trust, until such time as the policies are paid out.
There are other advantages, too, aside from purchasing fewer policies. The insurance company takes on the risk of early death or disability—thereby initiating an early buy out. This type of agreement also ensures there will be the necessary funds to purchase the business, and the policies typically benefit from the tax-free “inside build-up” of the monies invested in the policies.
Of course, disadvantages do exist. Using current funds to purchase the life insurance polices take away from capital that could be used to grow the business now. Plus, should one of the partners decide to terminate employment for any reason beside death, the life insurance policies are only worth the cash surrender value.
In reality, there is no one-size-fits all buy/sell agreement. Each business situation is different, and an experienced attorney should evaluate each business by its unique circumstances. If you would like to learn more about a Trusted Cross Purchase agreement, or any other buy/sell agreement, contact me at 618-659-4499 or info@sivialaw.com.
New Year + New Laws = Outdated Estate Plan
As 2016 begins, we reflect upon the joys and challenges we faced throughout the past year. Unfortunately, many people overlook how these joys and challenges affect estate planning. Often, the events that shape our lives the most also influence how we would want to take care of our loved ones. For example, have you experienced changes such as these in 2015:
- Birth or adoption of a child or grandchild
- Child turned 18
- Divorce or marriage
- Change in named guardians, beneficiaries, trustees or personal executors
- Approaching age 70
- State-to-state move
- Own your own business
Of course, even if you haven’t had any major changes take place in your life, it is still a good idea to have your estate plan reviewed every three years. Laws change periodically so it is important to find out if any legislative revisions impact your estate plan. After all, an out-of-date can add to the stress and pain affecting loved ones during a difficult time.
It is important to us that our clients are always prepared for the unexpected. If you wish to set up a review of your current estate plan or establish a new one, our firm is offering you a free estate planning consultation now through January 31, 2016. You can reach our office at 618-659-4499 or email us at info@sivialaw.com. In the meantime, check our free Estate Planning Resources Page here.
We hope you transition into 2016 knowing you have safeguarded your loved ones from unintentional consequences through intentional planning.
Happy New Year!
Understanding Veteran’s Benefits & Eligibility
In honor of Veteran’s Day, I wanted to talk about benefits available to Veterans and their spouses. The federal government offers a variety of benefits to Vets and their families, but many Vets are unsure how to access such benefits or aware of the eligibility requirements.
There are several benefits available, including education and training, compensation, home loans, rehabilitation, life insurance and pension offerings for Veterans and their dependents. Each benefit has its own eligibility requirements.
A Veterans Pension is a tax-free benefit paid to low-income, wartime Vets. Similarly, a Survivors Pension is a tax-free monetary benefit payable to a low-income, un-remarried surviving spouse and/or unmarried child(ren) of a deceased Veteran with wartime service.
To qualify, a Vet or a surviving spouse must be housebound or require the aid and attendance of another person. Pension benefits are needs based and your “countable” family income must fall below the yearly limit set by law.
Veterans must have at least 90 days of active duty, including one day during a wartime period, to qualify for a VA pension. The 90 days does not have to be continuous. At least 90 days of active duty service during WWI, WWII, Korean War, or the Vietnam War (09/16/40 to 07/25/47, 06/27/50 to 01/31/55, and 08/05/64 to 05/07/75). If you served less than 90 days, you may be eligible if discharged for a service-connected disability.
If the active duty occurred after 9/7/1980, you must have served at least 24 months or the full period that you were called up (with some exceptions).
Eligible Veterans must also be:
- Age 65 or older with limited or no income, OR
- Totally and permanently disabled, OR
- A patient in a nursing home receiving skilled nursing care, OR
- Receiving Social Security Disability Insurance, OR
- Receiving Supplemental Security Income
A Survivors Pension is calculated to be an amount equal to the difference between your countable family income and the annual pension limit set by Congress. For spouses or unmarried children to qualify for the Survivors Pension benefit, the deceased Veteran must have met the following service requirements:
- Veterans must have at least 90 days of active duty, including one day during a wartime period, to qualify for a VA pension. The 90 days does not have to be continuous. At least 90 days of active duty service during WWI, WWII, Korean War, or the Vietnam War (09/16/40 to 07/25/47, 06/27/50 to 01/31/55, and 08/05/64 to 05/07/75).
- If the active duty occurred after 9/7/1980, you must have served at least 24 months or the full period that you were called up (with some exceptions).
- Was discharged from service under other than dishonorable conditions.
Discerning eligibility and the completing the application can be a daunting, complicated process. If you, or someone you love, may qualify for VA or survivor benefits, contact me at 618-659-4499 or email me at info@sivialaw.com. You can also visit our website at www.sivialaw.com for more information on our Veteran’s Benefits assistance. I would be honored to assist a Veteran receive the benefits he/she deserves for protecting our freedom.
Interested in Working With Us?
If you need help with estate planning or any other legal concerns, we are here for you. Don't hesitate to contact our firm directly for assistance. Our dedicated team is ready to provide support and guidance to you and your loved ones during important life transitions.
Whether you're ready to schedule a strategy session to discuss your specific needs or if you're interested in exploring our wide range of complimentary guides and additional resources, we encourage you to get in touch with us.
With licensed attorneys and offices located in both Illinois and Missouri, we are well-equipped to serve clients in these regions. Reach out to us today and let us leverage our expertise and care to guide you through the legal process.
Helpful Guides
Begin your journey by taking advantage of our collection of complimentary guides.
Online Documents
Simple & Convenient, Cost Effective, Attorney Reviewed Documents.
Recent Posts
Estate planning is about more than just dividing assets; it’s about making sure your wishes are honored when it comes to your health, finances, and legacy.
Estate planning is about more than just dividing assets; it’s about making sure your wishes are honored when it comes to your health, finances, and legacy.
Beyond understanding the medical aspects, there are critical legal steps you should take to safeguard your rights, clarify your wishes, and prepare for any unexpected situations.
Estate planning is a sensitive and complex process that often involves difficult decisions. One of the most challenging choices parents may face is whether to leave their children unequal inheritances.
In this blog, we’ll break down inheritance and estate taxes in Illinois and Missouri, helping you understand what to expect and how to plan accordingly.
At our firm, we emphasize the importance of proper trust funding. This crucial step ensures that your trust will work for you and your loved ones when you need it most.
Estate planning often feels like an overwhelming task, conjuring images of endless paperwork, difficult decisions, and tough conversations. It’s a process that involves contemplating the future—sometimes in ways that are deeply personal and emotionally taxing.
Submit Your Confidential Request
Click the button & fill out the form so we can better understand how we can help.