Wills, Trusts, and More

Unequal Business Asset Distribution Among Children

Business owners have a special burden when thinking about estate planning.

Those with businesses often hope that the business that they created can continue to flourish after they are gone. Often, certain children, or a particular child, is more involved in the business than others. These children understand how to keep the business operating and should be the ones given the business interests.

However, what if your business represents the majority of your estate? How do you make it fair to both the children involved in the business and those that are not involved? There is an alternative to accomplish your objective.

You can create additional liquid assets in your estate at the time of your death. The “additional assets” can be used to equalize the assets of the children who are outside the

by Jeffery J. McKenna

business, with those assets of a child who will inherit your business.

This strategy is accomplished through the use of life insurance. The life insurance proceeds are first used to equalize the assets to the children not inheriting the business, and any additional funds can be utilized to pay any death settlement costs, estate taxes, or other expenses.

Often, a trust is the best vehicle to receive and distribute the life insurance proceeds. In a large estate, insurance policies can be placed inside a special insurance trust with death benefits then being outside of the estate for estate tax purposes.

The use of life insurance can help avoid potential family conflicts which might occur if business assets must be divided equally among the children or even sold to equalize the inheritance to the children. Either outcome could dilute your chosen child's ownership to the point where he or she could not function

Faith

A climber fell off a cliff, and, as he tumbled down, he caught hold of a small branch. "Help! Is there anybody up there?" he shouted.

A majestic voice boomed through the gorge:

"I will help you, my son, but first you must have faith in me."

PANGUITCH OFFICE AT 46 NORTH MAIN STREET TO SERVE CLIENTS IN AND AROUND GARFIELD COUNTY.

Live Long...

It's Me

"Yes, yes, I trust you!", cried the man.

"Let go of the branch", boomed the voice. There was a long pause, and the man shouted up again, "Is there anybody else up there?"

Britain's oldest woman turned 114 today. When asked the secret of her longevity, she attributed it to taking a walk at midnight every night. When quizzed on whether she was concerned about the increase in muggings in recent years, she said that she was not, and would continue mugging people as long as her health holds out.

PUNishment

I was once passing through a town in England when this lady stopped me because she needed help fixing her car that had broken down.

As I was fixing the car, the lady would cross the road and shout "Hello" at me. This happened a few times as the lady found it really amusing. I would have thought that it was very weird had I not realized that it was the singer Adele.

A Bear Walks Into a Bar

A bear walks into a bar... The bartender is extremely busy and looks tired. He eventually makes his way over to the bear.

The bear immediately tells him, "You look exhausted."

My ceiling isn’t the best, but it’s up there.

Sudoku

To Play: Complete the grid so that every row, every column and every 3x3 box contains the digits 1 to 9 adequately as the majority leader of the business.

Since most small businesses are not liquid and not easily marketed, a forced sale could be financially disastrous and foil your goal of having one child continue the business. The additional influx of liquidity from your trust, at the exact time it will be needed, can accomplish your objectives.

Jeffery J. McKenna is a local attorney whose practice has been focused on Estate Planning for over 20 years. He is licensed and serves clients in Utah, Arizona and Nevada. He is a shareholder at the law firm of Barney, McKenna and Olmstead. If you have questions you would like addressed in these articles, please feel free to contact him at 435 628-1711 or jmckenna@barney-mckenna.com or visit the firm’s website at WWW.BARNEYMCKENNA.COM, he would enjoy hearing from you. THEME:

"Yeah, it's been a rough day," says the bartender, "What are you drinking?"

"I'll have a glass of...", says the bear. He waits a painfully long moment before finishing, "...scotch."

"Why the long face?", asks the bartender.

"Don't you mean big pause?", asks the bear.

"Yeah, sorry. Like I said, it's been a rough day."

This week's answers on B5

Ranger

38. Seaside bird

42. Old hat

45. Scatterbrained, in U.K.

49. Top seed

51. Nickname for dad

(2 words)

54. Speak like Cicero

56. ____ Buchanan of "The Great Gatsby"

57. China's Great one

58. Often goes with "willing"

59. Rumpelstiltskin's weaver

60. Upper hand

61. Not top-shelf

62. Popular symbol of extinction

63. *Mr. Pritchett in "Modern Family"

65. *Mr. Conner in "Roseanne"

67. Skin cyst Solution

Spring is going out looking a lot like winter, with all of the white stuff flying around (dead flowers from the trees that were so beautiful). Winter seemed like it would never end, and spring seemed like it just started a week ago, but there are only fourteen days till the summer solstice on the 21st. The summer solstice is the longest daylight day of the year, with the sun rising at 5:47 a.m. and setting at 9:27 p.m.

The sun setting late plays an active part in some of the events here in Panguitch. The balloon people start blowing up their balloons at 9:30 p.m. for the balloon glow during the Panguitch Valley Balloon Rally, the highlight of the exciting weekend. Then the firefighters start their 4th of July fireworks promptly at 10:00 a.m.

On June 14th, it is Flag Day, and also that week, on the 18th, it is Father’s Day. When you get to be my age—being a father, grandfather and a greatgrandfather—you have got everything you need, so pictures are nice or just as nice, and “I love you” goes a long way.

Well, this is the big week for the 25th annual Panguitch Quilt Walk Festival. It started last night with the Chocolate Fest. There were plenty of goodies for all and musical entertainment. All of the proceeds go to the Sub for Santa fund. April Hookham will be doing this event, along with many of her friends. Pat has done this for about 25 years, and it is time for some new blood; many thanks to April for doing such a great job.

The quilt classes start