Estate Planning Forms

Use institution-specific Durable Power of Attorney estate legal forms Call your bank. Many banks and brokerage houses will only accept Durable Power of Attorney (DPOA) forms that it has created or has specified the language in the DPOA. Not all power of attorney forms are created equal and not all companies will accept your forms. Use DPOA documents which remain enforceable following mental incapacity of the principal.

I recommend:  Obtain Durable Power of Attorney forms like those available from ExpertLaw and limit the powers granted in the forms to your specific needs. Avoid using DPoA forms that don't contain the word "durable." Bank Webinars provides information on forms that banks, brokerage houses, and other businesses want you to use, as well as helping you with the language banks specify for your DPOA.

Complement any business owner's will with other legal documents including forms for estate planning A will is an instrument that transfers property after a person's death. Transferring property during a person lifetime can reduce frustration and tax consequences. Such a transfer of property during one's lifetime is done through the use of insurance policies, documents for trusts, marital property agreements, and other transactions.

I recommend:  Consult Abanet.org for assistance in creating a pre-nuptial agreement or post-nuptial agreement to transfer property between spouses to maintain the business upon one spouse's inability to do so. Set up a Grantor Retained Interest Trust (GRIT) or other favorable trust to your business and family's situation. Obtain insurance policies on key people in your life. Create a will that takes care of the leftover assets not already disposed of at death. Sit in on a Continuing Legal Education (CLE) course at Legalspan.com to learn more.

Choose the right buy-sell agreement using the right estate legal documents Keep your business going upon the death, retirement, or divorce of one of the owners by using a buy-sell agreement. Buy-sell agreements are legal documents for estates that allow for the transfer of ownership of a business. This is either done through a Redemption agreement or a Cross Purchase agreement. When a company buys back the leaving owner's shares, it uses the Redemption agreement. When other owners buy back shares in the company of the leaving partner, they use a Cross Purchase agreement.

I recommend:  Research the best option for your business's estate legal papers at BVResources. If your business wants to limit who can buy the shares, include specific limiting language in the document. Set a value on the business using either a periodic appraisal system, agreed value of the business and shares, or other technique to determine how much the shares will be worth. Get a buy- sell agreement form at USlegalforms.com.