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Bulletin The Burton Law Firm

VIEWS: 14 PAGES: 4

									                                                                      SECOND QUARTER               YEAR 2011




  PROTECTING YOUR
  FAMILY’S LEMONADE
  STAND: TOOLS TO
  HELP YOUR FAMILY
  BUSINESS ............... 2




                                                                                Burton
  DRAFTING YOUR
  TRUST TO PROVIDE
  FOR YOUR
  CHILDREN—AND
  PRESERVE YOUR
  ASSETS ................... 3



NEWS AND UPDATES FROM THE BURTON LAW FIRM:
BIG FIRM QUALITY, SMALL FIRM CHARM.                                               Bulletin
Spring Renewal
                          As tax season draws to a close, we reflect on      Allen PC and has over 25
                          the financial and government chaos of last         years of practice
                          year, and look forward to a more stable and        experience.
                          prosperous 2011 for all of us. So far this year,
                          The Burton Law Firm has had some                   By the time this newsletter
                          welcomed recent adjustments and expansions,        is printed, the firm will also
                          which are already making our firm's 2011 an        have welcomed two new
                          exciting year.                                     babies to the world. Tom
                                                                             Reid, one of the attorneys
                    Colleen Brusseau has taken over as Firm                  on our firm's litigation
                    Administrator and has effected a number of               team, and his wife
policy changes that will make us significantly more efficient. We            welcomed Taten Thomas
are expanding our extensive technological infrastructure, hiring a           Reid in January, and I am
new senior transactional paralegal to assist with our business, tax          literally writing this
and estate planning matters, and will soon be rolling out our new            message from the hospital
rebranding campaign encompassing a new logo, website, and                    while waiting for the birth
business cards, as well as our new slogan, "Big Firm Quality,                of our daughter, Jelena
Small Firm Charm."                                                           Marie Burton.                    Image: Simon Howden / FreeDigitalPhotos.net

In addition, Michael K. Iwahiro, a veteran business and                      More information about Michael, Taten and Jelena can be found in
transactional attorney, joined the firm in early April from Bullivant        this issue of our newsletter, as well as some information about
Houser Bailey. Michael, our sixth attorney, previously managed               protecting your own family through proper estate and business
the Business Services Practice Group at McDonough Holland &                  planning.
                                                                                                                                - Jeb U. Burton

                                                     ESTATE PLANNING CHECK-UP:
                                                     Family Events Provide a Good Reminder to
                                                     Update Your Estate Plan
                                                     Because one’s family is often the impetus for developing an estate plan, we encourage
                                                     clients to conduct periodic reviews of their estate plans on birthdays, family holidays,
                                                     wedding anniversaries or other personal occasions to avoid the potentially devastating
                                                     problems associated with out-of-date estate plans. Failing to review an estate plan can lead
                                                     to catastrophic results, including failing to account for subsequently accumulated wealth
                                                     and changes in personal circumstances, and failing to adjust distributions accordingly for
                                                     the care of later born children or dependent beneficiaries. A brief review of one’s estate
                                                     plan on a regular basis can prevent these problems.
                          STAFF CORNER:
 THE BURTON
  LAW FIRM                Michael K. Iwahiro
                          Meet our new Of Counsel

                          Michael K. Iwahiro joined The Burton Law Firm        received his B.A. in
Jeb U. Burton,            in early April as Of Counsel, adding 25 years of     economics and his J.D.
                          experience in business counseling and                from the Boalt Hall
Managing Shareholder      transactions for private companies and               School of Law.
                          individuals. Mike’s practice includes business
Michael K. Iwahiro,       structuring and formation, corporate governance,     In his spare time, Mike enjoys playing golf,
Of Counsel                mergers and acquisitions, negotiated business        gardening in his yard, and spending time with
                          dispute resolution, contracts, intellectual          his family. He has recently rekindled his love of
                          property protection (trademarks, trade secrets       tennis, and in addition to playing the game,
Thomas D. Reid,           and copyrights) and licensing matters.               enjoys accompanying his sons to their occasional
Senior Attorney                                                                tournaments. As a cost-savings measure, he has
                          Mike was previously a shareholder at Bullivant       struck up a hobby of stringing tennis racquets at
Sapphira W. Pixler,       Houser Bailey, and before that he headed the         his home and finds it to be quite therapeutic.
Senior Attorney           Business Services Practice Group at
                          McDonough Holland & Allen PC, where he               Mike is a long-standing active member of the
                          practiced law for 24 years.                          Asian/Pacific Bar Association of Sacramento
Rebecca A. Gardner,                                                            (ABAS). A past president of the organization,
Senior Attorney           Currently residing in Granite Bay with his wife,     he currently serves on the board of the ABAS
                          Helen, and their children, Matthew (14) and          Law Foundation, a non-profit arm of the
R. Brooks Whitehead,      Mitchell (12), Mike is a graduate of Kennedy         organization responsible for law student
Associate Attorney        High School in South Sacramento and the              scholarships, community outreach and legal
                          University of California, Berkeley, where he         education.
Colleen Brusseau,
Senior Paralegal and
Firm Administrator        Protecting Your Family’s Lemonade
Vanessa Cornejo,          Stand: Tools to Help Your Family
Paralegal
                          Business
Kassandra Carpenter,
                          Associate Attorney R. Brooks Whitehead provides some helpful tips to
Marketing
Communications            protect your business in case of unexpected trouble
Specialist
                          Everyone knows the adage, “when life gives you lemons, make lemonade” – but how do you make
Joanna Fedycki,           lemonade without a knife to cut the lemons and a juicer to squeeze out the juice? Presented in this
Receptionist              article are three tools to help you, your family, and your family’s business turn life’s lemons into
                          lemonade.
Dairl Helmer,
File Clerk                   So your lemonade stand [read: family business] has been burned in a fire; property insurance will
                               cover the physical damage, but what about the revenue you lost while your stand is being
                               repaired or rebuilt? More importantly, how will you pay your mortgage, advertising costs, taxes,
                               and salaries while the business is shutdown? Business Interruption Insurance covers your lost
                               revenues when your business has sustained physical damage. But what if it is your lemon
 555 University Avenue,        producer [read: key supplier] that sustained the loss and now you cannot continue production?
       Suite 275               You can add contingent business income coverage that protects against lost revenues when an
 Sacramento, CA 95825          indispensable third party suffers a loss that affects your business.

                               Be careful that your policy covers everything you need. Some policies require a complete shut-
  916.570.2740 phone           down of the business before payout. Some may only cover losses for a limited time or may
   916.570.2744 fax            provide only partial coverage for certain losses. We can work with you to help select and review
                               your policy.
  www.lawburton.com          What would happen to your lemonade stand if you unexpectedly died or were disabled? Most
                                                                                                         (Continued on page 3)
(Continued from page 2)

     small businesses are owned and managed by only a few individuals. Who would take over
     management? Who would buyout your interest, and at what price? At such a tragic time, do you
     want your family to be worrying about these issues? Solution: negotiate a Buy-Sell Agreement
                                                                                                             BUSINESS
     that will ensure that management, buyout, and estate planning issues are taken care of before
     something unexpected happens.
                                                                                                             CHECK-UP:
     Buy-Sell Agreements can be customized to fit your unique situation. The buyer can be the                  It’s Not Just a
     business itself (stock redemption), the remaining owners (cross-purchase), or a combination of
     the two. The purchase can be funded with cash, assets, loans, or even life insurance. The key is
                                                                                                              Catch Phrase -
     to plan in advance with a firm experienced in both business and estate planning issues, who can
     help ensure your family and your lemonade stand will be making your special blend long after
                                                                                                             It’s a Trademark
     you are gone.
                                                                                                             Business owners sometimes
   If undercutting the competition by a nickel allowed you to monopolize the lemonade market,              get so busy running their
     your family may be stuck with an enormous estate tax bill due nine months after your death.             family businesses that they
     What will happen if the bulk of your estate is tied up in your illiquid lemonade stand? If the          forget about the goodwill
     value of that closely held business interest makes up at least 35% of the value of your adjusted        that their business has
     gross estate, your estate may qualify to pay your estate tax liability in installment payments that     generated. You have
     will not come due until the fifth year after the tax is due. Hopefully, you will make time for your     worked hard to build your
     attorney to help you plan for and minimize this estate tax burden, but the Section 6166 Stretch         business and your business’s
     Out is a good option in case of emergency.
                                                                                                             reputation. Consider trade-
                                                                                                             marking the logo or tagline
                                                                                                             that is tied to your
Drafting Your Trust                                                                                          business. To get a trade-
                                                                                                             mark approved, you need a
to Provide for Your                                                                                          distinctive sign or indicator
                                                                                                             that identifies your products
Children—And                                                                                                 or services to consumers –
                                                                                                             something that is unique to
Preserve Your Assets                                                                                         your business. A trademark
                                                                                                             can be a name, word, phrase,
Senior Attorney Rebecca A. Gardner and Associate Attorney R. Brooks                                          logo, symbol, design, image,
Whitehead examine ways to tailor your estate plan for your family’s unique                                   or a combination of these
                                                                                                             elements. The owner of a
needs                                                                                                        registered trademark may
What kind of car do you own? What       Holding Assets in Trust can        time, rather than putting the
                                                                                                             commence legal proceedings
kind of car would your teenager buy     be a great way to ensure that      child in a situation he or she    for trademark infringement
if he or she inherited all of your      assets are preserved for your      is ill-equipped to handle         to prevent unauthorized use
assets tomorrow? If you answer          child’s benefit without giving     (hello Ferrari!).                 of that mark. This will
“late model mid-size sedan” and         your child full and immediate                                        prevent others from selling
“Ferrari” – this article is for you.    control of their inheritance. In   For a child with special          products with a logo that is
                                        addition, assets held in trust     needs, a Special Needs Trust      similar to yours and profiting
It is often not the best idea to give a for your child can be              should be utilized to provide     from your hard work.
teenager immediate and unlimited        protected from creditors and       benefits to that child in a way
access to all of your assets;           sheltered from a divorce           that preserves any                We have the expertise to help
however, individuals who fail to        settlement while providing         government benefits that he       you with your trademark
properly plan are doing just that.      spendthrift protections and        or she receives. This requires    issues. Contact our office
Under California law, a beneficiary custom distribution incentives         careful drafting to ensure that   for more information.
needs to be just 18 years old to in-    for the child.                     the distribution provisions for
herit outright. Miley Cyrus and Nick                                       that child will not jeopardize
Jonas may have sold a lot of re-        In addition, your trust can be     his or her eligibility for
cords, but we still would not trust     drafted to allow a Child to        public benefits.
them to manage our estates wisely. Serve as Co-Trustee of his
                                        or her trust at a certain age or   For more information on
This article addresses some of the      in stages. A slow and steady       drafting your trust to best
ways that trust drafting can be used transition to full control of         provide for your children
to provide for your children while      the assets can help a child        while protecting your assets,
still preserving your assets.           learn to responsibly manage        please contact our office.
                                        his or her inheritance over
                                  UPCOMING
                                  SEMINARS
Welcome to the World!
                               The Crocker Art Museum’s Planned
                                  Giving Committee presents:
                                The New Estate & Gift
                                Tax Law Is Here – Now
     Jeb and Julianna Burton
                                       What?
     are pleased to announce
           the arrival of                Presented by:
                                 James Deeringer, Downey Brand
                                Rebecca Gardner, The Burton Law
                                              Firm
   Jelena Marie Burton
                                 THURSDAY, MAY 5th 2011
                                     3:00 PM-4:30 PM
         April 14, 2011         CEMO ROOM, CROCKER ART
                                        MUSEUM

      7 pounds, 10 ounces      Seats are free, but limited. To reserve
                                  your seat, call (916) 808-7843.
          18.75 inches


                                 The attorneys at The Burton
                                    Law Firm regularly give
       Tom and Kate Reid           presentations throughout
                               Northern California on a variety
     are pleased to announce    of subjects dealing with estate
           the arrival of       planning, business law and tax
                                 law. If you, or someone you
                                 know, would like to have us
    Taten Thomas Reid            present to your staff or your
                                     clients, please contact
                                    Kassandra Carpenter at
        January 27, 2011       kcarpenter@lawburton.com or
                                         916-570-2740.
       9 pounds, 1 ounce
           21.5 inches

								
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