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Rochester Business & Commercial Law Blog

How to select a business successor

As Minnesota business owners approach the end of their careers, they may realize they need to choose a business successor. This is an important decision to make and there are many things people need to consider as they identify potential successors.

One thing business owners need to consider is what the future might hold for their company. Leaderonomics.com says that it is a good idea for people to know what challenges might arise in the immediate future, as well as several years down the road. This can help them identify which skills might be most important in a successor. Additionally, some people might want to look back at their business plan to remember where they want the company to go and how it should get there. It is important for people to remember that choosing a business successor can sometimes become emotional or political, especially when people have worked together for a long time. However, it is a good idea for people to put aside their emotions and office politics when they make this choice.

Strategy can keep an estate plan current and relevant

When people first sit down to discuss their estate plan, they may be overwhelmed with how many options they have and how many components there are to planning an estate in Minnesota. However, if they take things slowly and take adequate time to articulate their end-of-life wishes and desires, they may be more productive at putting together a well-rounded estate plan that will give them confidence and peace of mind. 

According to Ameriprise Financial Inc., there are several considerations that people should take into mind before making any designations on their estate plan. Some of the important aspects they should think about include the following:

  • The number of their current assets and the potential for growth. 
  • The amount of debt they have accumulated and their ability to pay it off. 
  • Any tax implications that their heirs or beneficiaries may be charged with following the death of the policyholder. 
  • The amount of money they are currently making, as well as how much they spend annually to pay for their expenses. 

New parents must develop an estate plan with the baby in mind

Having a baby is a happy event for most couples, but it is one that comes with big responsibilities. One thing that many new parents might not want to think about is what will happen to their children if both parents pass away. While it is a horrifying thought, taking the time to make plans in case this happens can give you peace of mind to know your children have the best chance to continue on safely after you pass away.

Your estate plan is the key to taking care of your children if something happens to you. The plan should be comprehensive so that it covers many different aspects of the children's lives. If you are one of the almost 64 percent of Americans without a will or need to update a current one, now is the best time to handle this task. The following tips can help ensure your children are cared for if you aren't here to raise them.

Updating your estate plan is critical to keeping it valid

Once you have finalized your estate plan in Minnesota, you breathe a breath of relief. A burden has been lifted and you suddenly feel at ease about being able to provide direction and comfort for your family when you pass away. At Dunlap & Seeger, we have helped many people with the development of an estate plan that meets their personal needs. 

One of the important aspects of having an estate plan is maintaining it and keeping the components up-to-date. Leaving it to sit on a shelf until it is needed is risky should your life's circumstances change. For example, perhaps one of the heirs you have listed has passed away. Or maybe familial differences have altered your list of beneficiaries. Other changes in your life may leave your estate plan outdated and not as effective as it once was. 

Understanding an estate plan is critical to its effectiveness

When people recognize a need to begin planning their estate, they may be instantly overwhelmed with the breadth of important decisions that are awaiting them. However, when people in Minnesota put in adequate time learning about the purpose and function of an estate plan, they may be much more confident and effective in putting together a comprehensive document that accurately depicts their final wishes. 

Because estate planning is such an involved process that addresses many key issues including distribution of assets, allotment of property, guardianship of minors and even health care or financial proxy information, mistakes can undoubtedly be made. Serious mistakes, however, can compromise the effectiveness of a person's plan so it is critical that they avoid errors that could put them at risk. 

Using strategy to decide on a new location for your business

As you grow your business in Minnesota, you may encounter the need to invest in some more commercial property to help with the development of your organization. Deciding where to purchase this property is critical to your success and will require you to spend considerable time comparing your options. At Dunlap & Seeger, we have helped many business owners to secure and protect various aspects of their company. 

A lot of factors will need to be managed in deciding which property you purchase including location, pricing, accessibility, a potential for growth and if you plan to rent or own the space. Focusing on one aspect at a time may enable you to more successfully make decisions that will put you in the best possible position of achieving your goals. 

Negotiating strategically to win over investors

When new companies are testing the waters with their products, investors can play a critical role in expediting the process of building small businesses and helping them scale their initiative. What organizational leaders in Minnesota should be aware of is how critical their content delivery is when pitching to investors. What they say, or do not say, and how clearly and confidently it is presented can make all the difference in whether or not they can seal the deal. 

When businesses are preparing to negotiate at all, Forbes suggests some helpful tactics that can help the discussion process to go more smoothly. Being prepared can also enable companies to come away from negotiations without having to compromise too much of their original plan. Some of the things leaders can do include:

  • Understanding their role in the negotiation process and assess how the relationship's dynamics may affect the outcome. 
  • Preparing to compromise to avoid losing out on potentially beneficial alternatives when their desired deal is a no go. 
  • Maintaining a professional and cordial discussion even when conversation may become competitive or heated. 

How to give money to someone who's bad at conserving it

Imagine you're planning your estate, trying to decide how you want to distribute your assets after you die. This money and other property is the product of a decades-long and prosperous career. You've only managed to hang onto it because you're frugal and wise about managing money.

In fact, everyone in your family is excellent at conservatively managing their money, too -- except for your daughter. She's a free-spirited, self-sabotaging "spendthrift." In other words, if you give her a few hundred dollars, she'll spend it on something frivolous before it gets in her hands.

Preparing to facilitate the process of a company merger

Merging two companies in Minnesota is a strategic business play that may allow two organizations to effectively build their success by feeding off of each other's strengths and core competencies. With joined forces, the newly-created company has the opportunity to gain momentum to soar beyond their competitors, but only if adequate steps are taken by corporate leaders to facilitate the merger and guide the process. 

According to Entrepreneur, a company that is interested in merging with another entity should conduct a thorough analysis of its financial health and capabilities before even considering a significant move. With the addition of a wholly different organization, both companies are bound to experience some stress that if not adequately planned for, can destroy any chance of the partnership being successful. 

How can you minimize estate taxes?

An old saying goes, "there are two certainties in life – death and taxes." Most people assume that taxes end after death, but the truth is that that the tax man hits a deceased person's estate hard. Federal estate taxes typically amount to 45 to 55 percent of an estate's value. The family or beneficiaries must pay the taxes in cash and within nine months of a person's death. Because few Minnesota estates have the cash to pay these hefty fines, families are often forced to liquidate assets. If you do not want your family to have to liquidate assets to pay your estate's taxes, there are a few steps you can take to reduce or even eliminate estate taxes.

According to U.S. News Money, one sure way in which you can eliminate or reduce the taxes on your estate is to give your wealth away before you die. Federal law allows each individual to give up to $14,000 annually to as many people as they choose without consequence. You may even give your wealth away to charitable organizations, donations that your estate may be able to claim as tax deductions.  

Contact Us Today Our lawyers listen carefully to your goals and concerns while helping you obtain the best results possible. Call 507-316-0628 or fill out the form to email our team.

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