Part 2: The Cost of No Plan and What Business Owners Need to Know.

For business owners, estate planning carries an added layer of responsibility. Your business isn't just an asset— it's a livelihood, a legacy, and often the result of years of dedication. Yet many owners overlook this crucial planning. According to Gallup research, roughly one-third of all business owners say they have no plan—or are unsure — what will happen to their business after they step away. Among family-owned businesses, about 31.4% have no estate plan beyond a basic will, leaving their companies vulnerable to disruption or closure. These numbers highlight a simple truth: if you own a business, you need a plan that protects it.

A strong plan for business owners begins with business succession planning, deciding who will step in to run the company if you become unable to do so. This may be a trusted family member, a business partner, or a key employee with a deep understanding of your operations. If your business has partners, buy-sell agreements are essential tools. They clearly outline what happens to your ownership interest in the event of death, disability, or retirement, preventing conflict and preserving stability.

Many entrepreneurs also benefit from trust planning for business interests. Transferring business interests into a trust helps avoid probate, streamlines leadership transitions, and protects continuity in the event of unexpected events. It is equally important to ensure your financial power of attorney gives your chosen agent explicit authority to access business accounts, handle payroll, sign checks, and maintain daily operations if you're unable to.

A Real-World Example: Prince's Estate Nightmare

A striking example of the consequences of failing to plan is the case of music icon and business owner Prince. Despite owning a massive portfolio of business interests, music catalogs, intellectual property, real estate, and production companies, Prince died without a will or estate plan. What followed became one of the most public and expensive estate battles in modern history.

His estate was locked in probate for more than 6 years, during which more than 45 individuals came forward claiming to be heirs. His business ventures, royalties, and brand assets were stalled as the courts attempted to resolve ownership. The IRS disputed the valuation of his estate, triggering prolonged litigation and millions in legal fees. Ultimately, decisions about Prince's legacy and business interests fell into the hands of people he never personally selected.

While Prince's estate was enormous, the lesson applies universally: without clear planning, even the strongest business or brand can fall into chaos, conflict, and delay. Estate planning ensures your business, intellectual property, and hard-earned legacy are handled according to your wishes, not left to the courts.

Proper planning protects more than just your family. It safeguards your employees' livelihoods, provides reassurance to clients, and preserves the value and reputation of the business you've built. For business owners, estate planning isn't simply a legal step — it's a vital part of ensuring your legacy continues with clarity and stability.

Contact Seck & Associates (913-815-8481) or use our contact form today to begin building an estate plan that protects your business, your family, and the legacy you've worked so hard to create.

Part 1: Estate Planning 101: What Everyone Should Know

Estate planning isn't just for the wealthy, older adults, or people with complicated assets. Estate plans are for anyone who wants control over what happens to their property, finances, and loved ones when life takes an unexpected turn. Whether you're just starting your career, raising a family, building a business, or preparing for retirement, understanding the basics of estate planning is one of the most important steps you can take to protect yourself and the people you love.

What Is Estate Planning?

Estate planning is the process of making legal arrangements for the management and distribution of your assets if you become incapacitated or pass away. A comprehensive plan creates a clear roadmap your family can rely on during some of life's most challenging moments.

Why Estate Planning Matters

A thoughtful estate plan offers several key benefits:

• Control. Without a plan, state law decides what happens—and the result may not reflect your wishes.

• Protection for children. For young families, estate planning is essential. It ensures your children are cared for by the people you choose, not whoever a court selects.

• Guardianship decisions. A will is the only legal way to name guardians for minor children, preventing confusion or disputes around guardianship.

• Business continuity and succession. Plan who will run the business if you're unable to and use tools like buy-sell agreements to outline what happens to your ownership interest upon death, disability, or retirement.

• Avoiding probate delays. Tools like trusts and beneficiary designations can streamline or bypass probate.

• Incapacity planning. A complete plan also ensures someone you trust can manage your medical and financial affairs if you can't.

• Peace of mind. Knowing you're prepared creates tremendous relief for your loved ones.

Key Components of a Basic Estate Plan

• Will. A will directs how your assets will be distributed after death and names guardians for your minor children, ensuring the people you trust most raise them.

• Revocable Living Trust (RLT). A RLT helps avoid probate, maintains privacy, and enables efficient management of your assets if you become incapacitated. It also protects and manages assets for children until they reach a certain age.

• Durable Financial Power of Attorney. This document authorizes a trusted person to handle financial matters on your behalf if you are unable to manage them yourself.

• Health Care Power of Attorney. This names an individual who can make medical decisions on your behalf when you cannot speak for yourself.

• Living Will / Advance Directive. A living will outlines your preferences regarding end-of-life care, giving guidance to your loved ones and medical providers.

• HIPAA Authorization. A HIPAA Authorization allows chosen individuals, such as family members or agents, to access your medical information. Without it, doctors may withhold essential health information, even from spouses, children, or close relatives.

• Beneficiary Designations. This specifies beneficiaries that life insurance, retirement accounts, and similar assets will transfer directly to. Reviewing and updating these designations regularly is essential. 

Special Considerations for Business Owners

If you own a business, no matter how small, estate planning takes on an additional layer of importance. A business is often one of the most significant and most complex asset someone owns. Without a plan in place, the sudden loss or incapacity of the owner can disrupt operations or even lead to closure.

Having an estate plan in place can benefit people in all stages of life. It provides peace of mind knowing that all your assets and family will be properly cared for should the need arise. If you are in need of estate planning services contact Seck & Associates today to begin building an estate plan that protects your business, your family, and the legacy you've worked so hard to create.

Jared's Jams Enters Into Partnership With Chief's Coach Andy Reid

Seck & Associates is thrilled by the recent announcement in the Kansas City Star of our client, Jared’s Jams’ partnership with Kansas City Chiefs coach Andy Reid to develop and release a new boysenberry flavored jam.

Jared’s Jams owner, Jared Niemeyer, and his company were introduced to Reid around five years ago. Since then, Reid has been a huge fan of the company’s line of jams, culminating in the release of “Andy Reid’s Boysenberry Jam” which was unveiled on June 4th, 2025 at 5th Annual Evening with Andy Reid, an event held on behalf of Special Olympics Missouri.

Both Niemeyer, a long-time Special Olympic athlete, and Reid, a fervent supporter of Missouri Special Olympics, were in attendance for the event which included 380 boxes of the new jam for attendees to enjoy.

We are so excited for this partnership our client has entered into, and we hope that all of you reading this enjoy the new jam flavor. Andy Reid’s Boysenberry Jam can be purchased here.

Why You Are Putting Your Company at Risk if Your Website is Not ADA Compliant

In today's digital age, maintaining an online presence is crucial for businesses of all sizes. One thing that is often overlooked by businesses is responsibility of ensuring that its website is accessible to all users, including those with disabilities. The Americans with Disabilities Act (ADA) mandates websites include certain accessibility features for people with disabilities. Failing to comply with these requirements may alienate a significant portion of the population and  expose your business to legal risks.

What is ADA Compliance?

The ADA was enacted to prevent discrimination against individuals with disabilities in all areas of public life. While the ADA does not explicitly mention websites, courts have interpreted its provisions to apply to the digital space. This means that websites need to be designed and coded in a way that allows people with disabilities to use them effectively.

What is Required for ADA Compliance for Websites?

To ensure your website is ADA compliant, consider the following guidelines:

1.      Keyboard Accessibility. You should ensure that all functionalities are accessible via a keyboard. Many users with disabilities rely on keyboard navigation rather than with a mouse.

2.      Text Alternatives. You should provide text alternatives for non-text content, such as images, to ensure that users with visual impairments can understand the content using screen readers.

3.      Time-Based Media. You should offer alternatives for time-based media, such as captions for videos, to accommodate users with hearing impairments.

4.      Navigation and Input.  You should make it easy for users to navigate and find content on your website. This includes having a straightforward and logical layout, clear headings, and consistent navigation options.

5.      Readability. You should make sure text is readable and understandable. This involves using a text color that stands out from the background, providing resizable text, and avoiding small font sizes.

Do Most Web Hosts or Platforms Include ADA Compliance?

Many popular web hosting services and website-building platforms, such as Squarespace, offer tools and features designed to help ensure ADA compliance. However, the level of functionality and support they offer can vary widely and you should research your website platform’s features for guidance. Some platforms, like WordPress, Wix, and Squarespace, provide built-in accessibility tools and plugins that help website owners create more accessible content.

Many platforms offer ADA-compliant templates and themes, which are designed to meet accessibility standards out of the box. For more advanced compliance needs, there are third-party plugins and services available that can further enhance a website’s accessibility. For highly customized websites or specific accessibility needs, it may still be necessary to involve web developers who specialize in ADA compliance.

While these tools and features can significantly ease the process of creating an accessible website, it remains the responsibility of the website owner to ensure full compliance with ADA standards. It is also advisable to conduct regular updates and audits to your website to ensure that it remains compliant if guidelines change.

What Are the Risks of Non-Compliance?

The risks of not having an ADA-compliant website range from alienating a significant segment of your customer base to possible legal liabilities. In recent years, there has been a surge in lawsuits filed against businesses for failing to provide accessible features on their websites. These lawsuits are often initiated by individuals with disabilities who are unable to access the website's content, as well as by opportunistic law firms.

Individuals with disabilities, such as those who are blind or visually impaired, often rely on screen readers and other assistive technologies to access website content. When a website is not designed with accessibility in mind, it can be challenging or even impossible for these individuals to navigate and use the site effectively. As a result, some individuals, supported by advocacy groups or legal professionals, file lawsuits to enforce their rights under the ADA.

Steps to Achieve Compliance

1.      Conduct an Audit. Regularly audit your website to identify and address accessibility issues. This can be done through automated tools and manual testing by individuals with disabilities.

2.      Implement Accessibility Features. Make changes to your website based on the audit results. This may include updating your website's code, adding text alternatives, and ensuring keyboard accessibility.

3.      Train Your Team. Educate your web developers, designers, and content creators about ADA compliance to ensure ongoing accessibility in all new content and updates.

4.      Consult with Experts. Consider consulting with accessibility experts or legal professionals specializing in ADA compliance to guide you through the process.

The Bottom Line

Making sure your website is ADA compliant is not just a legal obligation but a business necessity. Providing an accessible online experience allows you to reach a broader audience and avoid the potential of legal action from individuals with disabilities and opportunistic law firms. Taking proactive steps now can save your business from significant legal and financial troubles in the future.

For more information on ADA compliance and how to protect your business, feel free to contact our firm. Our team of experienced legal professionals is here to help you navigate the complexities of ADA requirements and ensure your website meets all necessary standards.

DISCLAIMER: The choice of a lawyer is an important decision and should not be based solely upon advertising

New Delaware Law Could Revolutionize Corporate Governance: What Businesses Need to Know

Background

Last week, it was reported that a controversial new law had been passed in Delaware that could have extreme ramifications in how corporations in Delaware are run. The recently passed legislation in Delaware can be traced back to a landmark case earlier this year involving the investment bank Moelis & Co.

In February, Vice Chancellor J. Travis Laster invalidated most of an agreement between Moelis & Co. and its founder, Kenneth Moelis. This agreement would have granted Moelis extensive powers over the company’s leadership and litigation strategy, effectively allowing him to bypass the company's Board of Directors. Vice Chancellor Laster ruled that this arrangement did not follow Delaware corporate law, which requires certain checks and balances to ensure proper corporate governance. As of now, this decision has not been appealed although an appeal is expected.

In mid-May, another event that prompted the new bill occurred when Tesla CEO Elon Musk had a pay package valued at $55 Billion invalidated by a Delaware judge for being excessive and not in the best interest of the company’s shareholders. In response, Tesla moved its incorporation  to Texas. This move by such a high-profile company and influential CE highlighted potential vulnerabilities in Delaware’s corporate laws and prompted Delaware lawmakers to act swiftly. Despite opposition in the Delawares House of Representatives, the new bill was quickly passed through the Delaware Senate and now awaits the signature of Governor John Carney.

What This Means for Businesses

The new legislation could be a seismic shift in how businesses in Delaware are run. It essentially would allow corporations to enter into side agreements with individual shareholders or investors without approval from a company’s Board of Directors. These agreements could give these shareholders significant power within a company, even allowing them to bypass the Board of Directors in certain circumstances.

Opinion on the bill is split, with supporters of the bill arguing that it is in line with current business practices and is necessary to keep Delaware a top destination for corporations to do business. Opponents of the bill argue it will weaken the oversight of  Delaware corporations’ boards of directions. They also contend that it has the potential to give too much power to these individuals and will ultimately be bad for businesses and shareholders.

Impact on Corporate Structure and Operation

If the bill becomes law, it could have a significant impact on corporate structures and operations. Businesses might need to update their bylaws and Board resolutions to account for these new side agreements. Corporations formed in Delaware would need to consider how to manage the powers of individual shareholders and ensure that their Board of Directors retains essential oversight functions. Should the bill become law, practically every corporation formed in Delaware is likely to be potentially impacted in some way.

Conclusion

It is unclear whether Governor Carney will sign the bill into law and, if so, whether we will see many agreements with individual shareholders follow. Businesses incorporated in Delaware will need to ensure that they have the proper protections in place if they want to try and avoid potential conflicts and preserve the authority of their Board of Directors.

If you are concerned about the new law and want help with navigating the new corporate landscape should the bill be signed, Seck & Associates brings nearly two decades of helping entrepreneurs navigate change.

As always, the choice of a lawyer is an important decision and should not be based solely upon advertising.

 Soruces: 

Moelis Ruling Sharpens Focus on Private Equity Veto Agreements (bloomberglaw.com)

Move to Change Delaware Law After Musk Attacks Called Knee-Jerk (bloomberglaw.com)

Delaware corporate law overhaul could soon become law - WHYY

The FTC Has Officially Banned Noncompetes Nationwide

 On Tuesday, April 23rd, 2024, The Federal Trade Commission announced they were issuing a final rule banning noncompetes nationwide. The ruling comes over a year after the FTC initially announced they were considering the ban.

Reasons Behind the Ruling

According to FTC chair, Lina M. Khan, “Noncompete clauses keep wages low, suppress new ideas, and rob the American economy of dynamism, including from the more than 8,500 new startups that would be created a year once noncompetes are banned.” 

Essentially, the FTC determined that these sorts of clauses are generally exploitative and tend to only provide a benefit to employers while putting undo restrictions and burdens on employees. The FTC cited examples such as employees being required to relocate to a new area or take a position in a lower paying field as evidence of the types of issues employees subject to a noncompete face.

These agreements currently affect around 18% of the U.S workforce, and the FTC anticipates that removing these restrictions could lead to a 2.7% growth in new business formations, as well as estimated earnings increases of around $524 per year for workers. Additionally, they anticipate that there will be lower health care costs as a result.

What Does this Mean for Businesses?

Under this ruling, all existing noncompetes become “essentially unenforceable,” with companies being banned from entering new noncompetes. The exception to this rule is that existing noncompete agreements with senior executives can remain in effect.

Additionally, it’s important to note that the wording of this ruling only applies to agreements between workers and employers. This means that noncompete agreements between a buyer and seller of a business entity are exempt from this ruling as well.

One important thing to note is that businesses concerned about keeping information from competitors can still use trade secret laws and non-disclosure agreements to keep this information from competitors.

Given that many employees who are subject to a noncompete clause are typically also subject to an NDA there should be comparatively little impact on business operations or trade secrets despite the ruling.

The final thing to note is that the ruling will go into effect 120 days after publication in the federal registrar.

What You may Need to do

As mentioned above, the FTC is attempting to ensure that this ruling is easy to comply with. According to their announcement, employers merely have to notify their employees that they will no longer be enforcing noncompetes against them. If you are a business owner that needs to do this, their announcement provides model language that you can use.

There are no other required steps as far as the ruling goes, but you may want to ensure that any employees that are privy to sensitive proprietary information have an NDA in place, and that you remain up to date with all trade secret laws that may apply to ensure that your company’s assets are protected.

If you need assistance with any aspect of this ruling Seck & Associates can help with our 15+ years of helping entrepreneurs navigate changes such as these.* Have questions? Please do not hesitate to reach out today.

* The choice of a lawyer is an important decision and should not be based solely upon advertisements

* Correction: The original post was missing the link attribution to the original announcement.

Navigating the Corporate Transparency Act

Introduction 

The United States has recently taken a significant step towards combating financial crimes by enacting the Corporate Transparency Act (CTA). Passed as part of the National Defense Authorization Act, the CTA requires companies to disclose their beneficial ownership information. This new legislation aims to make it harder to conceal illicit activity via corporate anonymity, thereby better safeguarding the U.S. financial system as a whole.

What is the Corporate Transparency Act? 

The CTA requires certain U.S. limited liability companies, corporations, and other entities to provide the Financial Crimes Enforcement Network (FinCEN) with detailed information about their beneficial owners or anyone who owns or controls at least 25% of the ownership interests of the entity.

Who Has to Report?

Any entity that is a corporation, a limited liability company, or is created by filing a document with a Secretary of State or similar office under the law of a state or Indian tribe and that does not qualify for an exemption.

Access to the fee-free reporting system became available on January 1, 2024. Companies that existes before that date will have one year to file an initial report with FinCEN. Any company formed after that date will have 90 days to file an initial report. 

For any US domestic company, the individual responsible for filing the report is the same individual who filed the companies original formation documents.

What is a FinCEN identifier?

Thsi is a unique number issued by FinCEN to individuals and reporting companies who apply for one by providing all the information that otherwise has to be included in the initial report. A reporting company may use this FinCEN identifier number in lieu of providing each piece of identifying information.

Businesses Implications

For businesses, the CTA introduces another set of compliance requirements.

Companies must make sure their information is up-to-date and accurately reported to the FinCEN. For those falling under the purview of the CTA, they must disclose the name, date of birth, address, and a unique identifying number (such as a passport number) for each beneficial owner. Failing to do so could result in stringent penalties against the offending entity. While the filings themselves can be tedious, the information required also has implications for privacy, as the collected information will be accessible by law enforcement agencies and, in certain cases, by financial institutions conducting due diligence.

If you would like help filing this report or would prefer that we file the report for your company please reach out to us at sseck@seckassociates.com. We are happy to discuss your FinCEN reporting needs or any other potential business needs you may have.

Part Three of Six-Part Series: Trust Variants

Estate planning can be an intimidating process for anyone. Sometimes it feels like the attorneys are speaking a foreign language full of confusing terms and concepts. Seck & Associates is going to present a series of estate planning blogs to break down and provide a brief overview of several common terms, concepts, and types of trusts to help our clients work with us to achieve their goals. Although in this series of blogs we will attempt to provide a general overview of this process, it is important to remember that very estate plan is unique, and structuring depends on 1) the types of assets currently held by the client, 2) the client’s retirement plans, 3) the client’s anticipated need for long-term care, 4) the client’s wishes for distributing property and wealth to both the client and others throughout the client’s life and following the client’s passing, and 5) tax considerations. After you gain the following general estate planning knowledge, we are happy to sit down with you and address the specific needs of you and your family.

Last week we discussed what part a Will and a Trust play in the estate planning process. This week we explain the many different types of Trusts available.

Part III – Trust Variants

Some of the most common Trusts include Revocable Living Trusts, Irrevocable Trusts, Grantor Trusts, Asset Protection Trusts, and Medicaid Asset Protection Trusts. The following is a brief explanation of each of these types of fundamental Trusts. Each of these Trusts can take several forms and have unique provisions to address the Trustor’s wishes.

· Revocable Living Trusts are used to hold assets during the Trustor’s life and transfer them to the Beneficiaries designated by the Trustor upon the Trustor’s passing. The terms of Revocable Living Trusts can be changed by the Grantor at any time, including who the Beneficiaries of the Trust are. The Grantor is also free to transfer assets into and out of the Trust at any time, or even terminate the Trust.

· Irrevocable Trusts hold assets transferred by the Grantor that will be distributed to the Beneficiaries upon the Grantor’s death. Unlike Revocable Living Trusts, Irrevocable Trusts generally cannot be changed by the Grantor once they are created. Irrevocable Trusts are usually created to help plan for income and estate taxes and help shield assets from creditors in case of financial distress experienced by the Grantor.

· Grantor Trusts are any type of Trust where the Grantor retains control of the Trust assets. Taxes on Trust income from Grantor Trusts are paid by the Grantor under most circumstances.

· Asset Protection Trusts are trusts designed to shield assets in the event of the Grantor’s financial distress. These Trusts take the form of Irrevocable Trusts, and are designed to prevent creditors or plaintiffs in lawsuits involving the Grantor from gaining access to Trust assets.

· Medicaid Asset Protection Trusts are used by Trustors that want to preserve assets from being “spent down” in order for the Trustor to be eligible for Medicaid payment of long-term care expenses. These Trusts must be set up well in advance (5 years) of a Trustor needing to enter a care facility. If the 5-year timeframe isn’t met, in almost every state Medicaid will deny payment for long-term care expenses under Medicaid look-back provisions. Another option if the 5-year time frame isn’t viable is transferring assets into annuities. Specific rules apply to these types of Trusts that should be discussed before their formation.

We hope Part III of our series has provided some comfort and clarity in what to expect during your first meeting with your estate planning attorney. For your own personal consultation please reach out to us at sseck@seckassociates.com. We are happy to sit down with you and address the specific needs of you and your family.

Part Two of Six-Part Series: The Role of Wills and Trusts

INTRODUCTION

Estate planning can be an intimidating process for anyone. Sometimes it feels like the attorneys are speaking a foreign language full of confusing terms and concepts. Seck & Associates is going to present a series of estate planning blogs to break down and provide a brief overview of several common terms, concepts, and types of trusts to help our clients work with us to achieve their goals. Although in this series of blogs we will attempt to provide a general overview of this process, it is important to remember that very estate plan is unique, and structuring depends on 1) the types of assets currently held by the client, 2) the client’s retirement plans, 3) the client’s anticipated need for long-term care, 4) the client’s wishes for distributing property and wealth to both the client and others throughout the client’s life and following the client’s passing, and 5) tax considerations. After you gain the following general estate planning knowledge, we are happy to sit down with you and address the specific needs of you and your family.

Last week we explained what Wills and Trusts are and the general terms that surround the making of each. Part II of this week we will address what part each instrument plays in the estate planning process.

Part II – The Role of Wills and Trusts

As a refresher from last week’s blog, a Will is a legal document that coordinates the distribution of assets after death, and it can appoint guardians for minor children. Trusts are used to make the property transfer process following death of the creator of the Trust (and the Will) easier and to take advantage of certain tax rules.

When Trusts are used as part of an estate plan, it is still important to have a basic Will for a few reasons. First, whenever a person dies, state laws require (with certain very limited exceptions) that the estate of the deceased person be submitted to the state courts for what is called Administration. The state courts in charge of Administration are called Probate courts, and the job of the Probate courts is to 1) utilize the assets of the deceased person to satisfy any outstanding debts of the deceased and 2) after the debts of the deceased are satisfied, to recognize and document the transfer of property to the deceased’s heirs and any other individuals named by the deceased in the deceased’s estate documents.

When someone passes away without a Will, the Probate court is forced to follow procedures called Intestate Administration. Without a Will to guide the Probate court, the Intestate Administration procedures require the Court to decide which assets of the deceased are liquidated to satisfy any debts of the deceased. Also, any assets that aren’t included in the Trust(s) created by the deceased will have to be distributed by the Probate court using default rules under state statute that may not reflect the wishes of the deceased.

We hope Part II of our series has provided some comfort and clarity in what to expect during your first meeting with your estate planning attorney. For your own personal consultation please reach out to us at sseck@seckassociates.com. We are happy to sit down with you and address the specific needs of you and your family.

Part One of Six-Part Series: Estate Planning Terminology

Estate planning can be an intimidating process for anyone. Sometimes it feels like the attorneys are speaking a foreign language full of confusing terms and concepts. Seck & Associates is going to present a series of estate planning blogs to break down and provide a brief overview of several common terms, concepts, and types of trusts to help our clients work with us to achieve their goals. Although in this series of blogs we will attempt to provide a general overview of this process, it is important to remember that very estate plan is unique, and structuring depends on 1) the types of assets currently held by the client, 2) the client’s retirement plans, 3) the client’s anticipated need for long-term care, 4) the client’s wishes for distributing property and wealth to both the client and others throughout the client’s life and following the client’s passing, and 5) tax considerations. After you gain the following general estate planning knowledge, we are happy to sit down with you and address the specific needs of you and your family.

In Part I of our series this week we will address the common terms and concepts you will hear discussed in your first meeting with your estate planning attorney.

Part I – Estate Planning Terminology

Estate plans center around two key sets of documents – the Wills and the Trusts set up to achieve the goals of each client. As we discuss Wills and Trusts, we will be using certain legal terms to describe the various parties involved. A Will is a legal document that coordinates the distribution of assets after death, and it can appoint guardians for minor children. The person making a Will is called a Testator (or if female Testatrix), and the intended recipients of property or other assets under the Will are called Beneficiaries, or in some cases Devisees. Wills also appoint a certain individual (and frequently an alternate person in case the person appointed is unable to serve) to administer the Will. That administrator is called an Executor, and it is the Executor’s job to work with the probate court to make sure that all the property and assets of the Testator (person making the Will) are distributed according to the Will and all other applicable estate planning documents, including Trusts.

As further discussed below, Trusts are used to make the property transfer process following death of the creator of the Trust easier and to take advantage of certain tax rules. The creator of a Trust can be referred to by any of three terms: Trustor, Grantor, or Settlor. The persons receiving property or other assets under the Trust are called Beneficiaries, just like the recipients under a Will are called Beneficiaries. Trusts also have a person in charge of administration called a Trustee, and depending on the type of Trust, the Trustee can be the Grantor, a person appointed by the Grantor, or an independent third party (frequently a trust company or bank).

Just like the Executor of a Will, the Trustee is responsible for making sure that the Trust Assets (all the property and assets held by the Trust) are managed and distributed according to the instructions of the Trustor contained in the Trust. Because Trusts operate both during the life of the Grantor and after the Grantor’s passing, the Trustee has ongoing management responsibilities for the Trust that include distributing Trust income to the Beneficiaries, caretaking for Trust assets, and other administrative duties. Under many Trusts, the Grantor is also a Beneficiary throughout the Grantor’s life, and depending on the type of Trust, the Grantor frequently retains a level of control over the Trust assets, including the rights to transfer assets into and out of the Trust and, in some cases, even terminate the Trust altogether. Termination of a Trust is called Dissolution of the Trust.

We hope this first part of our series has provided some comfort and clarity in what to expect during your first meeting with your estate planning attorney. For your own personal consultation please reach out to us at sseck@seckassociates.com. We are happy to sit down with you and address the specific needs of you and your family.

The FTC Proposes a Ban On Noncompete Agreements

On January 5, 2023, the Federal Trade Commission (the “FTC”) published a proposed rule that would broadly ban noncompetition agreements (“noncompetes”) between employers and a broad class of “workers.”

The FTC’s website states the proposed rule is meant to curb “a widespread and often exploitative practice that suppresses wages, hampers innovation, and blocks entrepreneurs from starting new businesses.”

Under the proposed rule, the term “worker” would include executives, interns, c-suite executives and most employees. The proposed rule would make it illegal for companies to:

1. enter into or attempt to enter into a noncompete with a worker;

2. maintain a noncompete with a worker; or

3. represent to a worker, under certain circumstances, that the worker is subject to a noncompete.

Note that the rule does not cover the following:

• noncompetes between companies; and

• noncompetes that are part of a company’s sale of its assets.

While the rule is not in effect yet, it reflects a trend of disfavoring noncompete agreements. Traditionally, enforceability of noncompetes has been determined by state courts, and many states limit enforcement of noncompetes. Currently, California, North Dakota and Oklahoma have imposed broad bands on noncompetes.

Companies have a legitimate interest in protecting their intellectual property, investments in technology, and trade secrets. Accordingly, if enacted as the FTC proposed rule is currently drafted, companies will have to carefully draft nondisclosure and other agreements so “workers” sign agreements that would comply with the FTC rule.

The proposed rule is subject to a public comment period for 60 days. A final rule would become effective 180 days following publication. If the FTC does issue a final rule, employers are expected to sue the FTC to keep the rule from being enforced.

Sheila Seck Named to the 2022 Missouri & Kansas Super Lawyers® List

Seck & Associates is proud to announce that for the seventh year in a row, its founder, Sheila Seck has been named to the 2022 Missouri & Kansas Super Lawyers® List. Super Lawyer rates outstanding lawyers who have attained a high degree of peer recognition and professional achievement. The selection process is based, in part, on peer nominations and peer evaluations. The fact this is based on peer recognition and client satisfaction is a true testament to Sheila's success with both her clients and within her profession.

To learn more about the Super Lawyers® selection process go to https://www.superlawyers.com.

The Estate Planning Essentials for Your Young Adult

Monumental occasions such as your child turning 18, or graduating from high school, bring on a range of emotions from nostalgia to excitement as to what comes next for your young adult. These times are also a reminder that your child is not only changing in your eyes, but also in the eyes of the law. As your child reaches adulthood, they gain a level of autonomy from their parents that they previously didn’t have. While this is a natural step in any young adult’s life, it can bring on some unexpected, and depending on how this arises, traumatizing situations for parents and their children if they aren’t properly prepared in advance.

One potential issue is that when your child reaches the age of 18, you no longer have automatic access to their medical information. Therefore, if they experience a medical emergency, the doctor cannot discuss their medical condition with you without first getting express written permission from your child, which may not be possible given the circumstances. It is, therefore, critical to prepare the appropriate legal documents in advance so that such conversations can occur as soon as they are needed.

At Seck & Associates our estate planning attorney, Bryant Parker, is happy to assist you with situations involving your young adult children like the one above. He can explain to you what documents are necessary, when the need would arise for these documents, as well as prepare them on behalf of your family. All these documents are included in the Seck & Associates Young Adult Estate Planning Package. Please contact Bryant today at (913) 815-8485 or bparker@seckassociates.com for more information.

Successor Corporations

A successor corporation is a new business that arises out of a prior existing one. It is important to keep in mind that taking over another business can leave the new business open to liabilities. It may be in your best interests to work with a business lawyer if you wish to create a successor corporation.

How Successor Corporations Occur

In the majority of cases a successor corporation is created through an acquisition or merger. By taking over the existing corporation a new business entity is created. Your company may purchase another business, and in the process create a new name and identity. The terms of the agreement will mean that the property, financial assets, obligations and equipment become the property of the new company. Ideas, knowledge and contacts that were held by the former corporation also become the property of the new one.

Be Careful When You Acquire a Business

You need to be clear on the fact that by taking over an existing business you accept its assets, but also its liabilities. It is often the case that a company will try to escape liabilities such as tax obligations through a merger with another company. If you are not aware of the company’s liabilities prior to the acquisition you may be left with being obligated to repay these liabilities. You might have recourse through a lawsuit, but the court may decide that by accepting the merger you should have been aware of any liabilities, and therefore they are yours to repay.

When a business that is seeking to acquire another does become aware of existing liabilities, this can often disrupt negotiations. You should be aware also that if an individual or entity was seeking to sue the former corporation, your company may become the subject of the lawsuit and be liable for paying damages.

If You Are Seeking to Create a Successor Corporation

Acquiring a business can lead to unexpected liabilities if you are not careful. It is important that you hire a business lawyer who can help you unveil any information about the business that is the object of your acquisition. Call Seck & Associates today to arrange a consultation at (913) 815-8481.

Do You Put the PRO in Procrastinate?

Have you ever caught yourself saying “I’ll get around to it,” or “Someday I’ll get that done” regarding items on life’s “to-do list”?  For over 75% of the U.S. population, completing their estate plans is often put off.  The drawback to postponing this particular “to-do” item is that “someday” becomes the day when an unforeseen event or crisis happens.

Did you know that less than half of Americans age 55 or older have a will?  According to a recent study by Merrill Lynch, only 18% of those 55 and older have the basic recommended essentials of a will, a healthcare directive and a durable power of attorney.  The most common reason is: “I haven’t gotten around to it.”

Believe it or not, everyone over the age of 18 needs an estate plan, whether you make minimum wage or are ready to build a family dynasty.  Why? 

1.     To protect your privacy,

2.     To have a say in what happens to you and your assets during and after your lifetime,

3.     To minimize the expenses your children will have after your death,

4.     To ease the burden on your family,

5.     To ensure the continuation of your business,

6.     To set up a structure which minimizes conflict between family members and allows smooth transition of assets, and

7.     To keep the government from deciding what happens to you and your estate.

The recent, unexpected death of Luke Perry at age 52 forced people to look at the reality that life is short.  No one knows when they will die, but everyone has the ability to prepare for it by putting an estate plan in place.  We can make it simple and painless for you.

At heart, we are all young and don’t think what happened to Luke Perry will happen to us.  Don’t let that stop you from making arrangements for your estate and family.  Benjamin Franklin once said that “in this world nothing can be said to be certain, except death and taxes.”  He was right.

Contact us to schedule your complimentary estate planning consultation.

4 Important Reasons to Start Your Exit Plan Today

Approximately 75% of business owners are expected to transition out of their businesses in the next 10 years. Eighty to ninety percent of business owners have most of their wealth tied up in their businesses. Even with a large amount of their wealth concentrated in a single place, 83% of business owners have no written transition plan and 49% of business owners have done no exit planning. With all the businesses for sale in the United States, only about 20% result in a successful sale.

So how do business owners increase the chance for successfully transitioning their business and get the value they built in their business? Advance planning is important. It is never too early to start thinking about an exit, whether a business owner is starting out, growing, or nearing retirement. Below are 4 reasons to start working toward an exit plan today.

1.       Prepare for a Forced Exit. Certain unforeseen events such as death, disability, divorce, distress and disagreement, can require a business owner to exit. While these events are often unexpected, a business owner can consider such scenarios in advance to put together an exit plan should one of the above occur. By having a plan in place, business owners will know they will have adequate resources personally and within the business should a forced exit be necessary.

2.       Maximize Company Value. Whether selling a business is part of an owner’s short-term or long-term plan, owners should develop an exit plan now to work on implementing the steps necessary to achieve an owner’s exit strategy. For example, if your plan is to sell in 5 years and you would like to receive a specific purchase price, you should be working with advisors to take steps to reach that exit strategy. By developing a plan early and implementing such plan, business owners can increase the value of their companies to ensure a more successful exit or sale.

3.       Mitigating Risk. Business owners can work with advisors such as merger and acquisition attorneys or advisors to develop a plan that allows for reducing the risk and increasing the sale proceeds in a transition. For example, if the strategy is to sell to a third party, the business owner may want to work on cleaning up any skeletons in the closet such as settling outstanding litigation, cleaning up the balance sheet, buying out minority shareholders or updating old equipment.

4.       Prepare for Retirement. Much of the focus of exit planning or planning for a sale can be focused around the company, but equally as important are the goals and next chapter for the business owner. Once the company is sold, what does the business owner need to be comfortable in retirement? What will the business owner day-to-day activities look after an exit? Working with advisors to plan for this next chapter will affect the goals upon a sale.

Building a Peak Performing Family Business

I worked in and owned a business with my family for almost 20 years. When I share this with others, their typical response is “I could never work with my family” followed by stories of just how dysfunctional their family is. It makes for juicy conversation at a cocktail party, but it raises the question: How do you create a family business that performs at its best rather than its worst?

In my experience of working with my family, along with advising family business owners and next generation leaders, I found the following keys helpful in building a peak performing family team.

#1 Know Yourself - While this is about family business, it starts with you. Why are you in the business in the first place? Is it to lend a hand during a busy season or a place to land while you decide on the next step in your career? Or, do you eventually want to take over the business from mom and dad? Whatever your reason, be honest with yourself and your loved ones.

Next, be clear on the strengths you bring to the table and how they can benefit the family and business. It’s tempting to join the company if there’s an opening, but if it’s a poor match for your skills and your personal vision, it will lead to frustration for everyone involved.

#2 Know Your Family – Every family has its way of solving problems and managing differences. Knowing these patterns of behavior is essential to removing the roadblocks that keep the family and business from moving forward. Knowing your family’s strengths is just as helpful here. Aligning everyone’s talents to the task at hand boosts productivity and reduces the tension that comes with mixing family and business.

#3 Think Big Picture – It’s easy to confuse roles and responsibilities in the family business. Sometimes you’re a parent, sales manager and major shareholder at the same time.  It’s easy to say that you keep family and business separate, but when a family member is struggling at work the desire to swoop in and save the day is strong. Occasionally that’s needed because everyone missteps. However, if it becomes the norm, it undermines their development, distracts you from your responsibilities, and weakens everyone else’s performance. Be aware and intentional about the role, or roles, you play, and how they may conflict so, you can make more informed decisions.

#4 Build Value – Family businesses must keep an eye towards building a company that’s transferable, whether it’s to the next generation or an outside buyer. Establishing and communicating policies, processes, and practices is essential. It includes managing not just the financial capital, but the human, customer and structural capital too. By following a value building strategy, the business is better positioned to serve the family’s current and future needs.

#5 Take the Long View – Most family businesses are closely held entities not subject to the demands of outside shareholders. They benefit by investing resources that may not yield immediate results but will pay out in the long term. They tend to think in generations and not just financial quarters. When planning, consider how life events such as births, graduations, weddings and retirements will impact the family and business. More than likely, the wealth the business generates will be needed to finance these significant events.

Family businesses are in a critical time of transition and a peak performing team is needed to weather the change. Aligning everyone’s strengths, while taking a big picture approach that includes a value building strategy with an eye to the long view, will ultimately serve you, your family and the business.

Succession Planning: The Earlier the Better

Many entrepreneurs think succession planning is not needed until the owner is ready to retire or resign; however, it is never too early to begin succession planning. Planning early and communicating it often can allow for a smooth transition of leadership and possibly enhance, rather than detract from company growth.

A study of the world’s 2,500 largest public companies shows that companies racing to replace exiting CEOs forgo an average of $1.8 billion in shareholder value. Further, another study shows the longer it takes for a company to name a CEO, the worse the company performs relative to its peers. Finally, poor succession planning can mean disengaged business owners often sticking around in the business longer than is desired which may directly affect the company’s performance.

To identify a succession plan for the company, business owners must consider a preferred transition for the company. While it is hard to predict the future, entrepreneurs should consider what an ideal transition would be. Would it be transitioning the business to an employee, family member or a third party? Each of these potential buyers are different and planning would take a different approach and each transaction can be structured in a way to meet the seller’s goals.

Employee Transition. If transitioning a business to an employee, a business owner should work with that employee early and often. Business owners can work with an employee by putting such employee in charge of new projects and getting an understanding for how that employee may operate after a transition. Owners should work with employees on strategy and financial analysis. Employees often have great institutional knowledge of the business; however, not all employees have what it takes to be a business owner.

Family Transition. If transitioning to a family member, a business owner should work with the relative to develop a plan for a smooth transition outside of discussing family matters. Family matters should be kept separate from the transition. Additionally, a business owner may consider working with the company’s board or establishing a board to help support the family transition and serve as an objective third party.

Third-Party Transition. If transitioning to a third party, a business owner has a lot of flexibility in defining the deal structure. The owner can negotiate the transition period, which may be a few months to a few years depending on the business owner’s wishes.

Regardless of the type of transition, business owners should develop a succession plan so when an owner is ready to exit, the owner can do so without major disruption to the company.

How Well-Designed Company Mission & Values Statement Drive Growth

I’ve focused this post on the critical nature of having a clear, realistic Mission & Values statement to ensure your team is aligned — because without team alignment, you won’t be able to drive growth.

Read more. . .

 

2018 Tax Bill: What You Need To Know

In 2017, congressional leaders pushed the largest tax reform bill in the last 30 years through Congress in record-breaking time. The bill is infamously mysterious. Most Americans know little except for Congressman Ryan’s promise for future taxes “to be done on an index card.”

Now that the legislation has gone through the house and senate, has the promise of a simplified tax code been fulfilled? And what does that mean for the small businesses of the world?

Read more . . .