Category: Estate Planning
Where there’s a Will, there’s a Way
October 24, 2019 | William F. HuefnerMany people in Minnesota are married. Many of those same people own a home, cabin, farm, hunting land or other real estate and many of our clients think that because both the husband and wife have their names on the deed, that the survivor simply become the sole owner of the real property upon the death of their spouse. This is incorrect. In order for title to real estate to pass to the surviving spouse, they must own the property as Joint Tenants. If the title does not list husband and wife as Joint Tenants, then the default is Tenants in Common. This means that when one owner dies, their interest in the property is subject to a probate court proceeding. If the Decedent has a Will, it will pass according to the Will. If there is no Will, it will pass according to Minnesota Statute. Depending on the circumstances, it may or may not pass outright to the surviving spouse. There are solutions to this problem once it is identified, such as: (1) Recording a document so that the property is titled as joint tenancy. This way, when one person dies, title to the property passes to the surviving tenant; (2) Putting a proper Will into place which will make your and…
Read MoreThings to Update After Divorce
March 25, 2016 | William F. HuefnerThe divorce has been finalized. You’ve paid your divorce attorney. Now what? Aside from moving on with your life, there are several things that you’ll need to update after the divorce. [maxbutton id=”1″ ] While each case is unique, there are some common steps that nearly every couple will take after they’re officially divorced. These include: Dividing up all the property as per the divorce decree. Change your motor vehicle titles to reflect appropriate ownership as per your divorce decree. Change your name with Social Security and on your passport. Change the name on your driver’s license. The requirements for this will vary from state to state, but in most cases, you will need to change your Social Security card before you can change your driver’s license. Contact your auto insurer to notify them of changes in vehicle ownership, drivers on the policy and address changes. Ensure that your name has been removed from loans or debts that you are no longer responsible for. If you change your name after the divorce, make sure that you notify all of your creditors of this change. Remove your name from the joint bank account and the mortgage, if applicable. Open a new credit card in your own name, and use it to make purchases. Don’t…
Read MoreBusiness Law Information: New Ruling Allowing an LLC to adopt an ESOP
January 27, 2016 | Barna, Guzy & Steffen, Ltd.The IRS released a recent Private Letter Ruling (PLR 201538021) that surprisingly allows a Limited Liability Company (“LLC”) to adopt an ESOP. This is a new development that should be considered with caution since a PLR only applies to the taxpayer that asked for the ruling and there are some pre-requirements that may continue to create a tax problem if implemented. Here’s the story: Background The rules under the Internal Revenue Code have so far limited the use of ESOPs to C- or S-Corporations. One of the requirements for an ESOP is that it invests predominantly in qualifying employer securities. LLCs were not permitted to have ESOPs because the membership units were not considered qualifying employer securities. As a result, an LLC had to be converted to a corporation in order to utilize an ESOP. Although the process may not be all that complicated, it sometimes created adverse tax consequences for a converting owner. New developments In a the recent Private Letter Ruling mentioned above, the IRS ruled that the membership units of an LLC will be considered as qualified employer securities under the Internal Revenue Code. This means that an LLC could establish an ESOP and have it hold LLC units. The ruling is conditioned on the LLC and its units having…
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