A Word of CautionA Word of Caution

These materials are presented with the understanding that the

information provided is not legal advice.  Due to the rapidly

changing nature of the law, information contained in this

presentation may become outdated.  Anyone using information

contained in this presentation should always research original

sources of authority and update this information to ensure

accuracy when dealing with a specific matter.  No person

should act or rely upon the information contained in this

presentation without seeking the advice of an attorney.

Top Ten Estate Top Ten Estate Planning Tools For Planning Tools For A Business OwnerA Business Owner

Presented By:

David A. DeJarnett, Esquire

#10 Durable Power of Attorney#10 Durable Power of Attorney

• Plan for incapacity

• Appoint someone to make business decisions on your behalf

• Keep your business in operation

#9 Last Will & Testament #9 Last Will & Testament

• Business will pass in an orderly fashion

• Consider how estate taxes will be paid

• Empower executor to operate business

#8 Entity Shields #8 Entity Shields for Asset Protectionfor Asset Protection

• Use corporations or limited liability companies

• Protect personal assets

• Protect assets subject to different risks

#7 Prenuptial Agreement#7 Prenuptial Agreement

• Largest potential creditor is your fiancé

• Also known as your future former spouse

• Protect the value that you create in your business

#6 QTIP Trust#6 QTIP Trust

QTIP Trust - Qualified Terminable

Interest Property Trust

• Reduce Estate Taxes by using both exemptions

• Provide support to spouse while controlling disposition of business

• Reduce Estate Taxes by using minority/fractional interest discounts

#5 JRLT#5 JRLT

JRLT - Joint Revocable Living Trust

• If not QTIP, then JRLT

• Reduce Estate Taxes by using both exemptions

• You can be trustee

#4 Business Succession Plan#4 Business Succession Plan

• Who will own and operate your business when you are ready to retire?

• Will you sell your business or will you give it to your spouse or children?

#3 Buy-Sell Agreement#3 Buy-Sell Agreement

• Controls who your partners are

• Restricts transfer of minority interests

• Provides for liquidation of interests

#2 ILIT#2 ILIT

ILIT - Irrevocable Life Insurance Trust

• Business is illiquid

• ILIT provides liquidity

• ILIT provides value replacement

#1 Time#1 Time

• Start early

• Plan often

Thank You!Thank You!

For more information, contact:

David A. DeJarnett, Esquire

Bowles Rice McDavid Graff & Love LLPddejarnett@bowlesrice.com

(304) 264-4232