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Kendall College School of Business

LEGAL INSIGHTS FOR TODAY’S BUSINESS PROFESSIONAL. Kendall College School of Business. Presented in collaboration with The Law Offices of Burton A. Brown. Tonight’s Agenda :. Introductions Overviews Business implications when entering into a civil union Elder law

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Kendall College School of Business

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  1. LEGAL INSIGHTS FOR TODAY’S BUSINESS PROFESSIONAL Kendall College School of Business Presented in collaboration with The Law Offices of Burton A. Brown

  2. Tonight’s Agenda: • Introductions • Overviews • Business implications when entering into a civil union • Elder law • Marriage and divorce– the financial impacts • Business succession planning • Bad health can lead to bad judgment and lawsuits • Q&A

  3. PLEASE WELCOME OUR PANELISTS • Abrar Azamuddin, associate, The Law Offices of Burton A. Brown • Burton A. Brown, principal at The Law Offices of Burton A. Brown • Barbara A. Riley, attorney,TheLaw Offices of Burton A. Brown and former Cook County Judge • Bob Difiglio, president, Rusco

  4. Business implications when entering into a civil unionAbrar Azamuddin

  5. Elder lawBurton A. Brown

  6. Elder Law Burton A. Brown The Law Offices of Burton A. Brown 205 W. Wacker Dr., Suite 922 Chicago, IL 60606 (312) 236-5582

  7. What does Estate Planning Consist of? • General Power of Attorney • A Medical Power of Attorney • A Living Will • A Will

  8. Why Are These 4 Documents Important • General Power of Attorney: Allows another person to carry on your financial matters as if you’re doing it yourself • Medical Power of Attorney: Gives another party the right to make sure that you get proper medical treatment • Living Will: Gives directions for your comfort, medical assistance and final wishes • Will: Directions on how your assets and property should be divided

  9. Changes to Elder Documents • Can be made at any time prior to someone losing the capacity to make informed decisions • You can change anything you want to reflect your wishes • Help you or your family if you become incapacitated

  10. Financial Exploitation of the Elderly • Likely perpetrators are close family and friends or strangers through the phone and internet

  11. Programs to Help the Elderly • Illinois Identity Theft Hotline: 1-866-999-5630 • Illinois Elder Abuse and Neglect Act 320 ILCS 20/1 et seq. • Illinois Elder Abuse Provider Agencies that service specific areas of the state: http://www.state.il.us/aging/1directory/elder_abuse.pdf • B*Safe Program: Illinois State program that provides training to bank employees to detect irregular financial activity in accounts owned by the elderly

  12. Marriage & Divorce: The Financial ImpactsBarbara A. Riley

  13. Marriage & Divorce: The Financial Impact Barbara A. Riley The Law Offices of Burton A. Brown 205 W. Wacker Dr., Suite 922 Chicago, IL 60606 (312) 236-5582

  14. Marital Property Presumption • In Illinois, it is presumed that all property acquired during the marriage, regardless of title, is marital property • Marital property is subject to equitable allocation

  15. Examples of Marital Property • Home • Pensions • Investments • Lawsuits • Stock Options • Workers compensation benefits • Business Property

  16. Exceptions to Marital Property • Gifts or Inheritance • Property acquired after a judgment of legal separation • Excluded by Agreement of the parties • Increase in value of non-marital (subject to reimbursement • Income from non-marital sources

  17. Closely Held Businesses • Courts seldom award a percentage of a closely held business to each spouse; it will generally be allocated entirely to one spouse. The other spouse will receive other marital assets to offset his or allocable share of the business • The fairness of the percentage allocation therefore depends on the accuracy of the valuation of the closely held business and upon the valuations of the offsetting property • For the most part, property should be valued as of the date of the entry of judgment or the date of the trial

  18. Business Succession PlanningBurt Brown

  19. Will Your Business Survive You? Burton A. Brown The Law Offices of Burton A. Brown 205 W. Wacker Dr., Suite 922 Chicago, IL 60606 (312) 236-5582

  20. What Will Happen to Your Business… When you retire? If you become disabled? When you pass away?

  21. Questions You Need to Ask Yourself When do I (we) want to leave the business? How do I want to leave the business? To whom do I want to gift, or sell the business? How do I fund the transfer? How do I avoid family disputes?

  22. It’s all about… Control Choice Continuity

  23. A Written Buy-Sell Agreement Protects Remaining Owners and Your Heirs By Addressing: Who will buy/sell? When will they buy/sell At what price will they buy/sell?

  24. “Ensure” the Funding for Your Buy-Sell Pay for out of business cash flow Management or family can borrow the funds Your company can save for it You can arrange to buy the business interest under an installment basis You can acquire life and disability insurance coverage

  25. Death of an Owner Benefits of Life Insurance: Provides the cash needed immediately Prevents drain on business profits Helps to quickly turn a non-liquid asset into a liquid asset The policy’s death benefit can be designed to increase over time to reflect the growth of business

  26. Death of an Owner Benefits of Disability Income Insurance: Minimizes impact to the bottom line Can be used to help replace a portion of the disabled owner’s salary or purchase his interest Disabled partner will likely continue to draw salary or K-1 income Can be used to pay overhead and expenses

  27. Buy-Sell Agreements Redemption The business itself is the buyer Cross Purchase The owners buy from each other directly Between two or more owners Unilateral Purchase Between the owner and a key employee or family member in business

  28. Benefits of a Funded Buy-Sell Assures the Business is transferred at fair market value! It also Ties key people to the business Helps promote competent successor management Provides employees with job security Allows you to exit with maximum profitability Provides a foundation for continued success of business

  29. Where Do We Go From Here We will help DEFINE your wishes We will help DEVELOP “choices” for you We will help IMPLEMENT the strategy to protect your business

  30. Bad health can lead to bad judgment and lawsuitsBob Difiglio

  31. TIME FOR YOUR QUESTIONS… • Civil unions • Elder law • Marriage and divorce • Succession planning • Health at Work

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