Revocable Trust, It's Now or Later

Having heard, on multiple occasions, from local attorneys that probate is not a big deal, and knowing from experience that, indeed, probate is a big, fat, hairy, expensive, time intensive, insensitive, and emotionally challenging deal, I have asked these attorneys to share with me, from their perspective, just one compelling reason to not use a revocable trust.  Here are the two most common responses I have received: To read the end of this blog, click here.

Using a Revocable Trust for the Sake of Asset Continuity

One of the most powerful truths I have learned in working with family owned businesses, is that the world of entrepreneurialism moves at a very rapid pace. I have not worked as an employee of a company for 20 years, but my recollection is that being an employee was a more forgiving place, at times with little sense of urgency. Those workers with an “employee mind-set” were more concerned with making sure they got their ½ hour lunch breaks, 15 minute breaks every 4 hours, and punching the clock right on time. The world of entrepreneurs doesn’t work that way. It’s 24 hours a day, 7 days a week, 365 days a year. There’s a reason entrepreneurs are referred to as “movers and shakers.”  They eat, sleep, and breathe their business. To read the end of this blog, click here.

How Awareness Impacts Change

Lots of “best practice” programs promise to improve corporate performance and family harmony in seven (choose your own number) or fewer steps.  Some work for a period of time, and then the effects fade into the sunset.  They fail most often because they don’t increase the awareness level of those involved; and, neglect any new heartfelt emotion or head-smart reason to persevere with new behaviors and attitudes, the momentum to change for the better gives way to the inertia of getting back where we belong. To read the end of this blog, click here.

"Family" Business is Not a Bad Word

As I reflect on 38 years of experience in business succession planning I can confirm that there was a time when being categorized as a “family” business was not a compliment. The term was derogatory, considered synonymous with “mom and pop” business. This stereotyping had obvious exceptions but was more right than wrong with respect to pets laying around with assumed rights superior to visitors or employees; kids entering the business out of school as an expert because they had worked a few summers and then coronated with a vice president title, a parking place and a tricked-up office. The female spouses acted like princesses and the male in-laws were on the payroll, but not to be found unless you called two days in advance or bumped into them at the country club.  To finish reading this blog. click here.

Why Use a Revocable Trust

In my travels around the country working with family owned companies, I am always amazed at the significant and very public role these entrepreneurs play in their communities. Because of this we often recommend the use of revocable living trusts as a part of their succession planning environment. I’m also frequently amazed at the pushback on this powerful planning tool that we get from local attorneys. In one recent situation, our client’s attorney told our client that we did not understand this particular state’s laws and that probate in this state is not a big deal. To read the end of this article, and find more like it, click here.

How to Overcome the Feeling of Being Blindsided by the Unexpected

Most of us go through the day thinking that we’re pretty much on top of things.  Then, a business colleague or associate comes into our office; or a family member asks for a few minutes to talk; or we get a tweet, an email, or some other piece of information that catches us off guard.   Innocently, we ask “How long has this been going on?” and we feel the breath leave our bodies as we discover that something usually incredibly wrong or sad has been going on around us for far too long. To read the end of this article, click here.

Family Business Advisor Teamwork

Family businesses rely on teamwork. The family infrastructure sets the inherent expectations and role model (good or bad) for teamwork to management and employees. The family team concept should also apply to their advisors. Most families base their advisor decisions upon relationship, often times with tenure taking blind precedence over the quality of service.  Although I acknowledge that the average family business is increasing in sophistication, I continue to see abuse and malpractice caused by predators who are seeking to take advantage of the natural tendency of family business leaders to rely upon relationships to make important decisions. Unfortunately there are far too many wolves wearing sheep’s clothing. To read the end of this article, click here.

Effective Leadership - What You Don't Know, Could Kill You

To borrow from Thomas Jefferson, each of us holds many truths to be self-evident.  Most of those go beyond the scope of life, liberty, and the pursuit of happiness.  He and his colleagues built a republic around that relatively simple concept.  Every two years, we subject ourselves to an election process that, as many elected officials like to point out, has consequences about future choices and decisions regarding our collective welfare on local, state, and national levels. To read the end of this article, click here.

The Family Business Curse

I am frequently asked – “What is the biggest problem that family businesses face?” The ugliest problem by far is what I call The Family Business Curse: ENABLEMENT or FAMILY BUSINESS WELFARE which can be described as - able bodied, capable minded family members active or inactive in the business who for any number of excuses are not contributing, but are provided ongoing financial assistance/subsidy to keep their standard of living up to par with those that are sacrificing to make the business work. To read the end of this article, click here.

Changing Culture by Creating It

As I've said in the previous two posts, the Arizona immigration law is highlighting the obsession our country has with our perceived civil rights with little to no acknowledgement of our responsibilities.  Even to the point of extending these civil rights to individuals who are not legal citizens of our country. No matter where you stand, it’s a very interesting dilemma without an easy solution, because our country is the great American melting pot. To read the end of this article, click here.