by Bill Miller | Jun 28, 2018 | Business
Darrell K. owned a company that manufactured products for outdoor hobbies. As his business grew, he expanded his product line. In the coming year, he plans to hire a marketing director, a new business manager, and several scientists to research and test new product ideas. Darrell realized his company creates and maintains a lot of confidential information. He wondered if he needs to protect that information. His attorney suggested he draw up a non-disclosure agreement.
What is a Non-Disclosure Agreement?
This agreement, sometimes referred to as an “NDA,” is a legally binding contract. The parties to the contract agree to keep certain information secret, disclosing it only if given permission.
There are two distinct types of non-disclosure agreements:
- Unilateral NDAs are one-way agreements used when one party discloses secrets to another party. For example, Darrell has a meeting with potential investors and discussed new products in development. An NDA should protect his company’s trade secrets from misuse.
- Bilateral NDAS are mutual agreements to protect information that both parties have presented. As an example, Darrell meets with an entrepreneur interested in merging his company with Darrell’s. Both parties divulge information about their business operations. A bilateral NDA might be signed by both parties, agreeing to keep the other party’s information secret.
Non-Disclosure agreements usually state what information is to be protected and for what period of time. The parties typically add other provisions as needed.
When Are Non-Disclosure Agreements Used?
Sometimes employers ask employees with access to confidential information to sign non-disclosure agreements. Non-disclosures may prevent leaks about new products or marketing campaigns. In Darrell’s case, he asks his marketing director and scientists to sign NDAs. If these key employees left the company, the disclosure of inside information like marketing strategies and research could really hurt Darrell’s company.
Businesses often disclose sensitive information to banks when asking for loans. The same holds true when seeking new investors – data may be offered to help potential investors make informed decisions. For example, Darrell needs more capital for product development and asks his bank for a loan. The bank probably won’t give Darrell the money he needs unless they know his intentions.
Are Your Company Trade Secrets Safe?
The attorneys at Miller Estate and Elder Law assist clients with their business concerns, from forming the business to preparing contracts.
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 | Jun 26, 2018 | Estate Planning
As we pass through life, we make memories, build families, and learn life lessons. Some memories may bring a smile to your lips and a tear to your eyes. Even if you’ve been entertaining and instructing family for years, it’s still time to consider writing an ethical will.
Isn’t My Regular Will Enough?
An ethical will may also be known as a legacy letter. It’s something in writing, a written expression, that your family may cherish for years. No matter how well you communicate, it’s unlikely you’ve told every family member every little thing about your life. Well, you can include those details, memories, and lessons in your ethical will.
Some of the things you may want to include are:
- Your complete family history.
- A detailed personal history.
- The theories, beliefs and opinions you hold dear.
- Things you’ve done that you are particularly proud of.
- Actions your loved ones have taken that made you proud, but you somehow never talked about.
- Lessons you learned from your parents, grandparents, aunts, and uncles.
- Secrets about your early years that may delight your family.
There’s no wrong way to write your ethical will. Remember, this is not a legally binding document like your Last Will and Testament.
Won’t Writing This Will Take A Long Time?
It’s probably not something you can do in one sitting. Spend some time reflecting on your life. Start a journal or diary and jot down what you think is important. Then, when you are ready, start writing.
Organizing your thoughts is more important than the format you use. You could sort your information into categories or include subheadings like “Our Family History” or “My Early Years.” Keep your ethical will safe by storing it with your other estate planning documents.
When Should I Write My Ethical Will?
That’s up to you and where you are in life right now. People just starting their life’s journey may want to start keeping a journal now. Others may just write their ethical will as important milestones happen.
Make Your Estate Plan Complete.
Estate planning documents give their makers an opportunity to state their final wishes, or what type of medical treatment they want, among other things. While it’s not a legal-binding document, an ethical will can be an important part of your estate plan.
The attorneys at Miller Estate and Elder Law help their clients develop comprehensive estate plans customized to meet their needs. 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 | Jun 25, 2018 | Estate Planning, trust
People really get a lot done with power tools. Sometimes we all just need little extra oomph. It’s like that in estate planning. Some people need a powerful estate planning tool – a trust. Do you need one in your estate plan?
Trusts 101
A trust is a legal entity created and funded by a settlor or trustor. The trust is administered by a trustee for the benefit of the trust’s beneficiaries.
Why Use a Trust?
Trusts can be revocable (you can change it) or irrevocable (changing is hard or impossible). Both are a powerful estate planning tool. Almost any property you own can be used to fund a trust.
Trusts allow assets to be transferred before and after your death. Some trusts are funded by the settlor. Other trusts are funded by the settlor’s Will.
People use trusts to avoid probate. Trust assets typically do not become part of a person’s estate, and so can avoid probate. Assets usually can be delivered more quickly to beneficiaries through a trust.
Trust can exist for generations. For wealthier families, this allows them to spread their wealth over the years, usually taking advantage of tax breaks.
A Trust for Everyone (Almost)
People who do need a trust have several types of trusts to choose from:
- Revocable Living Trusts are the most common trust. Settlors sometimes names themselves as trustee because they get to maintain control of the assets transferred to the trust.
- A Special Needs Trust, as the name states, is for people with special needs. Example: a 16-year old girl with cerebral palsy may need medical and vocation care for years. Her parents may set up a special needs trust to meet her needs for years to come.
- Miller Trusts, also known as Qualifying Income Trusts, are used by Medicaid recipients. Any income they receive in excess of Medicaid’s income limits is transferred to a Miller trust.
- Spendthrift trusts are often used to protect assets from beneficiaries who are vulnerable to creditors or civil judgments. This trust may also be used to protect an inheritance from an irresponsible heir.
- Charitable Remainder Trusts allow the settlor to donate money to a charity while receiving an annuity. The money used to fund the trust pays the settlor’s annuity until death or until the trust terminates. At that time, the remainder of the money goes to the named charity.
- Dynasty Trusts are used to pass wealth through generations while avoiding or reducing taxes
As you can see, trusts can serve many purposes depending on the settlor’s goals and can be a powerful estate planning tool. However, trusts can have negative consequences for settlors if not set up correctly. It’s best to consult with an experienced attorney before establishing a trust.
Learn More About Trusts.
The attorneys at Adams & Miller understand the estate planning needs of their clients. Contact Adams & Miller, P.C. 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 | Jun 24, 2018 | Estate Planning, Probate
For many people, probate is not the best solution for settling an estate. Probate proceedings can be long, expensive, and frustrating for the heirs and the executor. Fortunately, there are perfectly legal ways to avoid probate.
Probate Explained
After someone dies, their property – their stuff – has to go somewhere. So, if the person who died left a valid Will, someone submits the Will to the court to be probated. An executor appointed by the court begins the sometimes tedious process of gathering the decedent’s assets and claims against the estate. Claims are paid, property is distributed to heirs, and the executor closes the probate when everything is done.
When there is no Will, the property is still distributed. However, the law determines who gets what, not the decedent.
It is usually best for the heirs when the decedent’s property does not pass to them through probate. We’re going to look at three ways to make this happen.
Joint Tenancy
With this type of property ownership, two or more people own the property. Each owner has an undivided, equal interest in the property. In joint tenancy, a deceased owner’s interest does not pass to the other joint tenants.
Sometimes a property is owned by joint tenancy with right of survivorship. This means that if one owner dies, the other owner gains possession of their ownership interest. In Alabama, this joint tenancy with the right of survivorship does not occur automatically. Instead, the right of survivorship must be clearly stated in a legal document.
Property that passes through right of survivorship usually does not become part of the probate estate. Without the right of survivorship, it does.
Beneficiary Designations
With most financial accounts and certain other assets, the owner may designate who will receive the asset upon the owner’s death. You’ve probably seen beneficiary designations on retirement accounts, bank accounts, and insurance policies.
One thing to remember is that beneficiary designations trump the Will. Usually, property that is passed through beneficiary designations will not pass through probate. Instead, it is transferred quickly to the beneficiaries named by the deceased owner.
Although the speedy transfer is great, discuss these designations with your estate planning attorney. Unless your estate plan and the designations are in sync, your heirs could receive more or less than you intended. For example, if your Will states that your three children will inherit equal shares of your estate, but you name your oldest child as beneficiary on your insurance policy, the oldest child will likely receive more than the other two children.
Revocable Living Trust
Trusts are useful estate planning tools. There are various trusts for various purposes, including the revocable living trust.
Revocable means the trust can be changed fairly easily by the settlor, the person who established the trust. After signing the trust document, the settlor transfers assets to the trust. This type of trust can be used to avoid probate, reduce estate taxes, or manage assets. In general, trusts avoid probate because the trust assets never become part of the settlor’s estate.
A Little Planning Is What’s Needed.
For most people, it’s not that difficult to avoid probate. It just takes some astute estate planning with the assistance of an attorney who knows Alabama law.
The attorneys at Adams & Miller have the experience you need to get the estate plan you deserve. Contact Adams & Miller, P.C. at 256-251-2137 to schedule an appointment or fill out our convenient Contact Form. We help clients in Anniston, Talladega, Birmingham, Gadsden and surrounding communities.
by Bill Miller | Jun 23, 2018 | Estate Planning
Two patients arrived at the local hospital’s emergency room one night. Both had suffered strokes that left them unable to communicate. One family showed up with estate planning documents. The other did not. Is it ever possible to draw up estate plans in the ER?
Patricia N.
Patricia has no estate plans drawn up. Her Will would not help handle her incapacity. What she needs right now is a durable power of attorney, a health care power of attorney, an advance directive, and possibly a living Will. As the hospital staff work on Patricia N., her family scrambles to find any estate planning documents she has signed. They need to know her wishes for end-of-life treatment, should the time come to consider it. Since she didn’t name an agent to act on her behalf in a durable power of attorney, her financial affairs will be neglected. The doctors are not authorized to speak to her family members, because she didn’t sign a health care power of attorney. The awful truth sets in. She didn’t plan for this and now it’s too late. She no longer has the ability – the capacity – to make decisions for herself.
Thomas E.
Thomas has an estate plan. He even took the time to meet with his family about it. He named agents in his durable power of attorney and health care power of attorney, then shared copies of his estate planning documents with them. As his anxious family waits in the Emergency Room, his powers of attorney are handed to hospital staff and doctors. They can rest assured that they can now discuss Thomas N.’s medical condition and financial affairs with his agents. If the time comes to consider long-term care or end-of-life treatment, they can be confident they are doing what Thomas wants, even if he is not able to speak to them.
Can we sign estate planning documents in the ER?
It’s entirely possible for individuals to sign estate planning documents in the Emergency Room – if they have the capacity, or the ability, to do so. Someone who has suffered an illness or injury that prevents them from communicating will lack the capacity to make decisions about and sign estate planning documents.
How can you make sure this does not happen to your family?
People of all ages need estate plans. However, estate planning is particularly critical for people who are elderly or who suffer from serious health conditions.
The attorneys at Adams & Miller understand the estate planning needs of their clients. Contact Adams & Miller, P.C. at 256-251-2137 to schedule an appointment. We help clients in Anniston, Talladega, Birmingham, Gadsden and surrounding communities.
