Frequently Asked Questions

Estate planning is the process of arranging for the management and disposal of your assets during your lifetime and after death. It includes creating wills, trusts, powers of attorney, and healthcare directives to ensure your wishes are carried out and your loved ones are protected.

The answer depends on your specific situation. A will is essential for everyone, but a trust may be beneficial if you want to avoid probate, have minor children, own real estate in multiple states, or desire more control over how and when your assets are distributed.

You should review and potentially update your estate plan every 3-5 years or after major life events such as marriage, divorce, birth of children, death of beneficiaries, significant changes in assets, or relocation to another state.

Without an estate plan, your assets will be distributed according to state intestacy laws, which may not reflect your wishes. Your family may face lengthy probate proceedings, higher costs, and potential disputes over your assets.

Estate planning costs vary based on complexity and location. Simple wills may cost a few hundred dollars, while comprehensive estate plans with trusts can range from $1,500 to $5,000 or more. The cost of not having an estate plan can far exceed these initial investments.

The choice depends on factors like liability protection, tax implications, number of owners, and growth plans. Common options include LLCs, corporations (C-Corp and S-Corp), and partnerships. We can help you evaluate the best structure for your specific business needs.

Business succession planning should begin as soon as your business has value worth protecting. This is typically within the first few years of operation. Early planning provides more options and better outcomes for ownership transitions.

A buy-sell agreement is a contract that governs what happens to a business owner's interest if they die, become disabled, or want to leave the business. It establishes valuation methods and ensures smooth transitions while protecting all parties involved.

While you can file basic formation documents yourself, an attorney ensures proper structuring, compliance with state laws, creation of operating agreements or bylaws, and consideration of tax implications that could save significant money and problems later.

Tax preparation focuses on filing accurate returns for the previous year. Tax planning is proactive, involving strategies throughout the year to minimize tax liability, such as timing income and deductions, retirement planning, and business structure optimization.

Estate planning strategies like gifting, charitable giving, trusts, and proper business succession planning can significantly reduce or eliminate estate taxes. The federal estate tax exemption is substantial, but planning is still important for larger estates.

LLCs offer flexibility in tax treatment, corporations face potential double taxation but offer benefits like employee benefits deductions, and S-Corps provide pass-through taxation with potential payroll tax savings. Each has unique advantages depending on your situation.

State taxes vary significantly. Some states have no income tax, others have high rates. State estate taxes also differ. When planning moves or business locations, understanding state tax implications can result in substantial savings.

Probate is the court-supervised legal process of validating a will, appointing a personal representative (executor), paying debts and taxes, and distributing a deceased person's assets to their rightful heirs or beneficiaries. In both Idaho and Georgia, this process ensures that an estate is handled lawfully and fairly.

In Idaho and Georgia, probate can take anywhere from 6 months to 1 year or longer, depending on the estate's complexity, whether there are disputes, and court schedules. Simple estates may be resolved more quickly.

Everyone has an estate. An estate includes all property a person owns at death — such as real estate, bank accounts, investments, personal property, and other assets. Whether large or small, an estate often requires administration, either through probate or alternative methods like trusts or small estate procedures.

Not all estates require full probate. Smaller estates may qualify for simplified procedures, and assets with designated beneficiaries (like life insurance, retirement accounts) or jointly owned property typically avoid probate. Trusts can also help assets bypass the probate process.

Grantor (Settlor): The person who creates and funds the trust, determining asset distribution and selecting trustees. They maintain control when establishing trust terms and can serve as co-trustee if desired.

Trustee: Has legal obligation to manage trust assets according to trust terms and state law. Must act with highest fiduciary standards, solely for beneficiaries' benefit, including duties of loyalty, care, and prudent investment management.

Beneficiary: Individuals or institutions entitled to receive trust benefits. Current beneficiaries may receive income or principal distributions, while remainder beneficiaries receive assets after current beneficiaries' interests terminate.

Yes, our firm has extensive experience administering trusts with illiquid and complex assets including partnerships, timber, oil & gas, and real estate. We work closely with specialized property managers while ensuring all legal and fiduciary requirements are met.

A 501(c)(3) is a tax-exempt nonprofit organization recognized by the IRS for charitable, religious, educational, scientific, or other qualifying purposes. Donations to 501(c)(3) organizations are generally tax-deductible for the donor.

The IRS typically takes 3-6 months to process Form 1023 applications, though complex applications may take longer. Proper preparation and complete documentation can help expedite the process.

Nonprofits must file annual Form 990 returns, maintain proper corporate records, hold regular board meetings, avoid prohibited activities, and comply with state reporting requirements. Failure to meet these obligations can jeopardize tax-exempt status.

Board members typically serve without compensation, though reasonable reimbursement for expenses is allowed. Some nonprofits may pay board members reasonable compensation for services, but this must be carefully documented and justified to avoid IRS issues.

Nonprofit corporation status is granted by the state and allows operation as a nonprofit entity. Tax-exempt status is granted by the IRS and provides exemption from federal income taxes. Both are typically needed for a fully compliant charitable organization.