Team Tisser Foundation
Team Tisser Foundation (TTF) is a non-profit corporation founded by Doron M. Tisser and his wife Laurie. TTF raises money for various charitable purposes and does not focus on any one charity or charitable purpose. The goal is to raise as much money as possible to "Help Make A Difference" by "Improving Life for Others." TTF has made donations to Memorial Sloan-Kettering Cancer Center, Leukemia & Lymphoma Society, Challenged Athletes Foundation, as well as charities helping people affected by natural disasters such as Hurricane Katrina and the Tsunamis. Since 2000, TTF has donated almost $175,000 to over 25 different charities. Friends and clients generally donate money to TTF to support Doron's participation in triathlons and marathons. If you would like more information about TTF, please contact Doron at doron@tisserlaw.com, or visit www.teamtisser.org. |
Did You Know?
An irrevocable
trust (e.g., an irrevocable life insurance trust), by definition, cannot be
amended or revoked. But it is possible
to have changes made to an irrevocable trust if the trust includes provisions
appointing a trust protector who can make changes to the trust. Without this important provision, changes may
not be able to be made to an irrevocable trust as circumstances change. Read our discussion on this very important
issue in our next Newsletter.
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Contact Us
info@tisserlaw.com
818-226-9125
The Law Office of
Doron M. Tisser
5425 Farralone Ave
Suite 100
Woodland Hills, CA
91367-6312
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Doron M. Tisser has specialized in estate and gift planning, tax planning, trust and probate administration, charitable giving, buy-sell agreements and related areas for over 27 years. Mr. Tisser is one of less than 100 attorneys in California who has been designated as both a Certified Specialist in Probate, Estate Planning and Trust Law, and as a Certified Specialist in Taxation Law by the State Bar of California Board of Legal Specialization. He was chosen by his peers as a 2009 Super Lawyer for Southern California, and enjoys an "a.v." rating by Martindale-Hubbell Law Directory, which is the highest possible rating and is based on ethical considerations and legal skills. Mr. Tisser has published over 65 articles and chapters in books on various estate and tax planning subjects and is a frequent speaker and lecturer at estate and tax planning seminars. Mr. Tisser competes in triathlons, including Ironman races, and raises money for charities through Team Tisser Foundation, a non-profit corporation he co-founded with his wife Laurie.
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A business can be a client's
single largest asset. What happens to
the business during the client's life, as well as at death, will have a
significant impact on the client and the client's family. Issues relating to the business include estate
taxes, the client's death, disability or retirement, continuity of the
business, and preventing arguments between family members after the client's
death. This Newsletter raises some of
the issues a business owner needs to address.
We hope you
enjoy the Newsletter. If you have any
suggestions, please do not hesitate to send them to us at info@tisserlaw.com.
As
always, please call us with your questions and remember, "Plan Early, Plan Well".
Sincerely yours, Doron |
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What's Happening
- Team Tisser Foundation, a non-profit corporation, is now
accepting donations to be used to "Improve Life for Others". Donations are in support of Doron M. Tisser
training for and competing in triathlons and running events. On October 10, 2009, Doron will be competing in
his first race in 1½ years when he participates in the Magic Mountain Man
Triathlon, a half Ironman distance event (1.2 mile swim, 56 mile bike and 13.1
mile run) as part of his effort to raise money for Team Tisser Foundation
("TTF"). The organizers have said the bike course "could
be the hardest, most technical and ultimately, the most rewarding bike course
in the US"
with approximately 5,400 feet of climbing in the first 42 miles of the bike portion
of the race.
- If you would like to receive information on Team Tisser
Foundation or Doron's training, or if you would like to make a donation, please
contact Doron at doron@teamtisser.org.
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On September 22, 2009, Doron M. Tisser will be part of a
panel discussion titled "After the Great Recession, How the Economic Meltdown
Affects a Business Owner's Financial Future".
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Before the end of 2009, we expect a change in the estate tax
laws. Current law provides there will be
no estate taxes in 2010; we anticipate Congress will not allow that to occur
and, instead, will continue to impose estate taxes. We expect that there will also be other
significant changes in the estate tax laws. Our Newsletter will summarize those changes as
they occur.
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Estate Planning and the Business Owner
It is important
that clients consider how estate planning relates to their businesses,
including the effects of disability, death, and retirement. There are many questions that need to be
addressed as to family businesses; the answers, from an estate planning point
of view, depend on the business owner's particular family situation. Below are some of the questions the business
owner should think about; no two clients will address the issues in the same
way.
Estate Taxes
If a business
owner dies and the business is, in general, left to someone other than a
surviving spouse, the value of the business will be included in determining the
estate taxes owed at the owner's death.
The estate taxes can be as much as 45% of the company's net value. This can be one of the most important estate
planning issues if the family wants to continue the business and not be forced
to sell it in order to raise money to pay the estate taxes.
Businesses
with Co-Owners
If the business
has two or more co-owners and one dies, becomes disabled, or wants to retire,
what happens? Is there a buy-sell
agreement in place between the owners that says one party must buy out the
other party? How will the buying party
come up with the money to make the payments?
Is the agreement funded with insurance?
Has the agreement recently been reviewed to make sure that it is
up-to-date, especially with respect to how to determine the value of the
business for a buy-out?
Businesses
with a Single Owner
If the business
only has one owner and the business owner dies or wants to retire, is there a
succession plan in place to allow the business to continue and be
profitable? This is important for the
family in order to be able to continue to receive monies from the company, as
well as being important if the family wants to sell the business.
Sale of Business
If the business
owner decides to sell the business, will it be sold to an outside party, to one
or more employees or will it be transferred to one or more of the business
owner's children who are working in the business? If it is to be sold to employees or children,
how will they pay for the business?
Disability
and Business Liabilities
If the business
owner becomes disabled, is there a succession plan in place? If not, will the business fall apart and the
family no longer able to receive income from the business? Will the company be saleable if the business
owner is no longer able to work (especially if he or she has all the
"connections")?
If there is a
line of credit or other debt in the business, it is likely that it is secured
by the assets in the business and is personally guaranteed by the business
owner's personal assets. How does this
affect the business and the surviving family members? Will it require the family to sell personal assets
to pay off the business debt?
Children in
the Business
Oftentimes,
one or more of the business owner's children is involved in the business. How does this impact the family and the
business? If one child works in the
business and another child is not involved in the business, should the business
go entirely to the child in the business?
Are there enough other assets to be distributed to the other child to equalize
the estate? If the family owns real
estate used in the business, should the real estate be distributed with the
business, or be divided between both children?
If divided between both children, the child who is not in the business
will be involved in negotiations relating to the amount of rent paid by the
business, as well as the sales price if the company and the real estate are to
be sold in the future; this can this cause friction between the children.
If
two children are involved in the business, have their future roles in the business
been defined, so that when the business owner is no longer in the business,
there will be no disagreements between the children as to how to run the
business?
These
issues can be even more complicated if a son-in-law or daughter-in-law is
involved in the business.
Summary
The
area of estate planning and family businesses is very complex and must be
looked at in detail to determine how the business impacts the client's estate
planning. Remember, the business is
often the most valuable asset in the estate and what happens to it will have a significant
impact on the family's financial future.
On
September 22, 2009, Doron M. Tisser, Esq., will be part of a panel that will
address these and other issues relating to the business owner and his or her estate
planning.
If
you or a friend are business owners who are concerned about the future of your
business, as well as you and your family's financial future, and would like to
attend, please contact Kesha Hearn or Laura Stein, in our office, to reserve a
place. The panel discussion will be in Tarzana, California
on September 22nd between 8:00 a.m. and 9:00 a.m. We hope to see you there.
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This communication published by the Law Office of Doron M. Tisser is intended as general information and may not be relied upon as legal advice, which can only be given by a lawyer based upon all the relevant facts and circumstances of a particular situation.
Copyright © Doron M. Tisser, Esq. 2009. All Rights Reserved.
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