by Bill Miller | Sep 5, 2018 | Uncategorized
Choosing a business structure is one of the first and most important decisions a new business owner makes. In general, a business can operate as a corporation, partnership, limited liability company, or sole proprietorship. When starting your business, it’s important to ask, “Is a sole proprietorship right for me.”
Will a Sole Proprietorship Cause Your Business to Take Off?
Like all business entities, sole proprietorships have advantage, including:
- Formation. A sole proprietorship is the easiest kind of business to form. For example, it is usually not necessary to file any documents with the Alabama Secretary of State. New companies may register their business name, but that is optional. Other entities, like corporations, have to file forms with the Secretary of State and may be required to renew their registration annually.
- Management. A sole proprietorship might be the best option for you if you prefer flying solo. There’s no one to negotiate with or disagree with your choices. The owner is completely in control.
- Taxes. Sole proprietorships are pass-through entities. This means business does not pay taxes. Instead, the owner claims the company’s profits on his or her personal income tax return. Under the new tax bill, most sole proprietors receive about a 20% deduction from taxable business income.
However, sole proprietorships may not be right for everyone.
When a Sole Proprietorship Is Not the Best Solution
Like all business entities, sole proprietorships have disadvantages, including:
- Management. Going it alone can be lonely! With a partnership or corporation, there are other owners to help carry the load. Sole proprietors, though, shoulder all the responsibility of forming and managing the business.
- Liability. Some business owners enjoy limited liability because of the business structure they have chosen. Sole proprietors, however, are personally liable for most, if not all, claims against their business.
- Capital. Sole proprietorship typically find it more difficult to raise money for the business. Without shareholders or contributing partners, the sole proprietor usually borrows money. Some financial institutions are leery of this. Also, the business owner often uses personal property for collateral.
Review Your Estate Plans Regularly.
The attorneys at Miller Estate and Elder Law understand the estate planning needs of their clients. Contact Miller Estate and Elder Law at 256-251-2137 to schedule an appointment. Though our offices are in Anniston and Birmingham, we help clients in Talladega, Gadsden and surrounding communities.
by Bill Miller | Sep 3, 2018 | Elder Law, Medicaid, Medicaid Planning, Medicaid Qualification
Joe recently learned that his mother, Lillian, is applying for Medicaid. She lacks the funds and insurance to cover the cost of her 24/7 nursing care. Lillian was suddenly thrown into a world of procedures and terms that she did not understand. Joe felt a little helpless himself. His mother needs Medicaid and he does not what he can do to help her.
Help with the Medicaid Application Process
The Medicaid application process is complicated, complex, and frustrating. It’s also necessary. Medicaid is the largest payer of nursing home costs in the United States. In addition, a majority of people age 65 plus will need long-term care.
Joe can help Lillian find the right Medicaid program. For example, she probably needs either Medicaid for the Elderly and Disabled or Medicaid in the Nursing Home. He can read over the eligibility requirements and find the right application. They can apply online or using a paper application. Then, he can help her with one of the most difficult parts of the application process: finding the documents that go with the application.
Help Gather Supporting Documents
Medicaid requires a long list of supporting documents some spanning the 60 months prior to application, including:
Bank statements, annuities, life insurance policies, promissory notes, loans, property deeds, Social Security card, power of attorney, Will, trusts, long-term care insurance policy, Medicare card and Part D policies, just to name a few.
As Joe started helping Lillian gather documents, he was grateful that his mother was so organized. Many of the documents they needed were filed at her home. Other records required them to contact banks, financial institutions, and so on. Lillian signed a durable power of attorney that allowed Joe to get some records for her.
Help Find an Alabama Medicaid Attorney
It helps to have someone on your side who knows how the Medicaid system works. If an application is denied, naturally the applicant’s benefits are delayed. And, if they have an immediate need for Medicaid funds to cover their care, well, someone has to pay for it. The applicant or family members may be forced to pay substantial amounts for long-term care that could have been covered by Medicaid. That’s why it is so important to get the application right the first time.
Joe found a good elder law attorney for Lillian. In addition to helping get Lillian’s Medicaid application together, they were able to handle other estate planning issues:
- They set up a Miller Trust to handle monthly income in excess of Medicaid resource limits,
- Prepared and signed a durable power of attorney and health care power of attorney, and
- Helped Joe get his own estate planning and incapacity planning in place.
Sometimes You Just Need a Helping Hand
The application process for Medicaid is a difficult path for most people to navigate. The attorneys atMiller Estate and Elder Law use their skills and experience to make the experience a little less difficult.
For a free consultation with an experienced Alabama attorney, contact us at 256-251-2137 or use our convenient Contact Form. We have offices in Anniston and Birmingham and serve clients in Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
by Bill Miller | Aug 31, 2018 | Elder Law, Medicaid, Medicaid Planning, Medicaid Qualification, Nursing Home
It’s a cold, hard fact. Many people in the United States need long-term care at some point in their lives. It’s also true that this care is expensive.
How many people really need long-term care?
As our population ages, the number of people in need of skilled nursing care will skyrocket. Today, roughly 70% of people who are age 65 will need some form of long-term care in their lifetimes.
Also, age is not the only reason people need long-term care. About 8% of people age 40-50 year age group need long-term care due to a disability. And 69% of people age 90 and up are likely to suffer from one or more disabilities.
Long-term care is expensive. How do people pay for it?
There are basically three ways to pay for this type of care:
- Self-pay, which may use up all your savings and resources.
- Long-term care insurance, which can be difficult to get as you get older.
- Public benefit programs like Medicaid.
So, it’s important that you be able to qualify for Medicaid.
That requires planning.
And Medicaid planning should take place years before you need care.
If I won’t need long-term care until I’m 65 or older, why plan now?
Medicaid programs pay more long-term care expenses than any other group. This means it’s critical that you be able to qualify for Medicaid. The whole application process is complicated and frustrating. Not everyone qualifies for Medicaid, leaving their families struggling to find other ways to pay.
The reason to start planning now is because Medicaid doesn’t just look at your current financial picture when considering your application. They actually look at financial records starting from 60 months prior to the application date. During that time, you may have transferred money or property to family as an early inheritance or just a gift. That kind gesture could reduce or eliminate your eligibility for Medicaid.
The Good News.
There are ways to prepare for Medicaid, well in advance of the time you need it. It’s complicated, but we can help.
The attorneys at Miller Estate and Elder Law assist clients just like you apply for Medicaid benefits. We also help with Medicaid planning and estate planning. For a free consultation with an experienced Alabama attorney, contact us at 256-251-2137 or use our convenient Contact Form.
We also offer free guides, videos, and workshops.
We have offices in Anniston and Birmingham and serve clients in Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
by Bill Miller | Aug 29, 2018 | Business
It’s often said: Good fences make good neighbors. There’s some dispute about the literal interpretation of that saying, which is taken from a Robert Frost poem. However, there are times when boundaries are a good thing. That’s especially important in business relationships where everyone needs to know what they can and cannot do. A good contract can make that happen.
Contracts Need to Be Complete
A good contract should include the terms and conditions agreed upon by the parties. What those terms and conditions are will be determined by the type of deal being memorialized. Some industries, like real estate, may have contract forms that are dictated by law.
Don’t be afraid to ask questions or point out omissions in a contract. Remember that contract could affect your life and your bottom line.
Contracts Should Be Clear and Unambiguous
The language in the contract should be clear, even if it seems like it’s legalese or fine print. When contract provisions are ambiguous or could be interpreted in more than one way, the party that drafted the contract is usually held responsible.
Parties are also responsible for disclosing any information pertinent to the transaction that led to the contract being written. For example, the seller of a property must disclose certain problems to the buyer of that property.
Contracts Need to Be Enforceable
All the parties must agree to the contract, freely and without being under duress. The parties also must have the ability to understand the contract.
Contracts Can Address Problems Before They Happen
In addition to just making sure the language is clear and complete, contracts include provisions covering how to handle contract disputes.
For example, the contract may state what courts will decide on major disagreements. If parties from different states fight about performance of the contract, in which state will they file the ensuing lawsuit? In an effort to avoid costly litigation, contracts may include language calling for alternative dispute resolution like mediations or arbitrations.
Force majeure provisions cover unavoidable delays in performance of a contract, which could head off potential litigation.
Always Talk to an Attorney Before Signing a Contract.
What may seem obvious on its face could actually have unintended consequences for everyone. Make sure you fully understand a contract before signing it.
The attorneys at Miller Estate and Elder Law assist clients with their business interests, including writing and analyzing contracts. For a free consultation, contact us at 256-251-2137 or use our convenient Contact Form. Although we’re located in Anniston, we also help clients in the Birmingham, Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
by Bill Miller | Aug 24, 2018 | Probate
Alexander named his oldest son, Caleb, the executor (also known as personal representative) of his estate. When Alexander passed away last month, Caleb was left grieving and wondering, “What does an executor or personal representative do?” His father’s estate planning attorney was able to shed some light on the subject.
Gather Assets
As personal representative, Caleb is responsible for finding and protecting all of his father’s property. Anything Alexander will become estate assets to be used for paying claims and distributing to heirs.
Sometimes the decedent, Caleb’s father in this case, maintain accurate, up-to-date records. This makes the personal representative’s job much easier. Whether easy to find or not, though, Caleb has to find every asset his father owned.
In addition to finding the assets, the personal representative must protect them also. This may require the estate to purchase licenses, register vehicles, and buy insurance. Care should be taken to avoid wasting or spoiling assets that require special attention.
By the way, “assets” may include: stocks, bonds, promissory notes, partnership and business interests, life insurance policies payable to the estate, household goods, personal property, artwork, jewelry, china, silverware, valuable collections, vehicles, safe deposit boxes, and real estate.
Find and Pay Valid Claims
The personal representative is responsible for notifying creditors of the decedent’s death. There are two ways to do this:
- Publishing a notice in a newspaper with general circulation in the county in which probate was filed; and
- Sending written notice to all known creditors.
Creditors have to submit their claims within a certain time period or they may forfeit their claim.
Common debts and liabilities include: notes, mortgages, accounts payable, and unpaid taxes.
Finalize the Estate
The personal representative typically starts and ends the probate court proceeding. Before finalizing the estate, however, all property remaining in the estate will be disposed of. This usually involves distributing it to heirs named in the decedent’s Will. However, if there’s no Will to probate, all property will pass according to Alabama’s intestacy laws.
The personal representative files an initial inventory of assets within 60 days of being appointed. Depending on the length of time required to finalize probate, the personal representative may file partial accountings until the final settlement is filed.
Learn More About Forming a Business in Alabama.
We’ve only listed three duties for the personal representative. However, each of those tasks involves multiple steps. It’s critical to obtain the services of an attorney to make sure everything is done correctly.
The attorneys at Miller Estate and Elder Law efficiently assist their clients with probate and estate planning. For a free consultation, contact us at 256-251-2137 or use our convenient Contact Form. You may also want to check out our free videos. Although we’re located in Anniston, we also help clients in the Birmingham, Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
