Talking with Your Extended Family About Your Child’s Special Needs Trust
If you have a child with special needs, you should talk to extended family members who may be intending to make a gift or bequest. Extended family members may have your child’s best interests at heart, but they may be unaware that the money they leave to your child could jeopardize eligibility for government benefits.
The Business Judgment Rule and Director Liability
The business judgment rule is a legal concept that gives the directors and officers of a corporation a measure of protection against liability while they are conducting business for their corporation. Directors and officers are entrusted with the responsibility of managing the corporation’s affairs. In this role, they often face difficult questions concerning whether to…
Initial Staff Guidance on Revised Net Worth Test for “Accredited Investor”
In our post dated July 19, we noted that as a result of the adoption of the Wall Street Reform Act, one of the definitions of “Accredited Investor” was amended to exclude from the calculation of an investor’s net worth the value of the his or her primary residence. In late July, the SEC Staff…
The Importance of Letters of Intent
While it’s important for the parents of a child with special needs to provide for the child’s financial well-being in their estate plan, it’s equally important to address the issue of transitioning to life with a new caregiver. That’s the purpose of a letter of intent, which is intended to assist future caregivers by describing…
Drafting a Buy-Sell Agreement
A buy-sell agreement is meant to protect the interests of the business and all the partners involved by establishing guidelines for selling the business shares. A company’s buy-sell agreement should dictate when shares can be sold, in what manner they can be sold, and the price at which they can be sold. The agreement will…
Negotiating Shareholder Agreements
Shareholder agreements are documents that provide businesses with a roadmap of how to act in certain situations. A shareholder agreement is negotiated and executed so that common procedures will be established before any business problems develop. Generally, the most important issues contained in shareholder agreements are those that address stock ownership. A shareholder agreement can…
Conducting Follow-On Offerings
After completing an initial public offering (IPO), a company may decide to offer additional securities, either debt or equity, to the public. These offerings are referred to as “follow-on” offerings because they follow the IPO. There are two different types of follow-on offerings: A primary offering is a public offering of securities that is made…
Important Considerations When Investing in Private Placement Offerings
Some people consider an investment in a Private Placement Offering (PPO) to be speculative and highly risky. While there is a certain amount of risk to investing in PPOs, there are regulations in place that are meant to protect those investors who choose to participate in these offerings. Generally, investors must meet the qualifications of…
The Benefits of a Multi-Tier Corporate Structure
As businesses grow, it is not uncommon for them to establish and control several subsidiary companies. Establishing subsidiary companies can be of great benefit to a parent company, as they offer the opportunity to expand the business with minimal risks. Subsidiaries can be formed in different ways and for various reasons. A corporation can form a…
Guardianship Is Not the Only Option When Your Child with Special Needs Turns 18
Many parents think that when their child with special needs turns 18, a guardianship will immediately need to be established. While a guardianship is necessary for some children with special needs, not everyone is a candidate.
