015: Kids in the Business: When Personal Estate Planning and Business Succession Planning Collide
Release Date: 09/04/2018
Absolute Trust Talk
Trustees, are you confident you’ve completed all your legal responsibilities? This final, crucial question is one every trustee should ask—but the answer is rarely simple. In this episode of Absolute Trust Talk, host Kirsten Howe and associate attorney Jessica Colbert delve into the often-overlooked legal notices trustees are required to send before making final distributions. They discuss the critical 120-day notice to trust beneficiaries and heirs, informing them of their rights to contest the trust. They also cover essential notifications to the Department of Health Care Services and...
info_outline 158: Avoiding Trustee Liability: Critical Steps Before Distributing AssetsAbsolute Trust Talk
Being named a trustee is a significant responsibility that demands careful attention, time, and effort—and missing critical steps can lead to complex legal consequences. In this episode of Absolute Trust Talk, host Kirsten Howe and associate attorney Jessica Colbert delve into real-life cases where trustees overlooked essential duties. They discuss three crucial questions every trustee must ask before making final distributions: 1. Have I done everything necessary concerning income taxes? 2. Is there a supplemental property tax...
info_outline 157: Avoiding Probate Hassles: Understanding California's 2025 Law ChangeAbsolute Trust Talk
A significant shift in California probate law is on the horizon, promising to make estate transfers more accessible for many homeowners. In this episode of Absolute Trust Talk, host Kirsten Howe and associate attorney Jessica Colbert delve into a game-changing legislation effective April 1, 2025. This new law allows for a simplified transfer of primary residences valued up to $750,000 to heirs—without the need for probate or a formal estate plan. They discuss how this expansion of the small estate affidavit and petition procedures can ease the burden on families, making property...
info_outline 156: Probate Alternatives: Real Estate Affidavits and Succession Petitions ExplainedAbsolute Trust Talk
In the third episode of their probate alternatives series on Absolute Trust Talk, host Kirsten Howe and associate attorney Jessica Colbert delve into two streamlined legal procedures that help families avoid the costly and time-consuming probate process when transferring small real estate estates in California. They explain an affidavit procedure for properties valued under $61,500 and a petition for determining succession to property for estates under $184,500. The discussion covers the requirements for each method, including waiting periods, the role of a probate referee, and when each...
info_outline 155: Spousal Property Petitions: An Easier Alternative to ProbateAbsolute Trust Talk
In this episode of Absolute Trust Talk, Kirsten Howe and associate attorney Jessica Colbert delve into the spousal property petition, a vital tool that offers a faster and more cost-effective way for surviving spouses to claim assets from a deceased spouse's estate. They break down the legal nuances, sharing practical examples of how this process works and how it can sometimes be used even after both spouses have passed away. With real-world scenarios and expert advice, this episode sheds light on probate alternatives that can ease the estate administration process for families. Whether...
info_outline 154: Unlocking Assets Without Probate: The Benefits of Using a Small Estate AffidavitAbsolute Trust Talk
Navigating the probate process can feel overwhelming, so what if there was a way to avoid it entirely? In this episode of Absolute Trust Talk, associate attorney Jessica Colbert and managing attorney Kirsten Howe introduce the small estate affidavit—an often overlooked yet highly effective tool for bypassing probate when certain conditions are met. Together, they break down what it takes to qualify for this process, explain how it works to transfer personal property without court involvement and point out some important details and potential challenges. Don’t miss this insightful...
info_outline 153: AB Trusts After 2013: What You Need to Do NowAbsolute Trust Talk
Welcome back to Absolute Trust Talk! In this exciting episode, associate attorney Jessica Colbert steps into the spotlight for the first time, accompanied by managing attorney Kirsten Howe. Together, they continue the series AB Trusts: Do You Have One? Do You Need One? This episode uncovers the surprising reason many couples have AB trusts without realizing it, and what steps you should take if you find yourself in this situation. You’ll also learn why it might be time to reconsider an AB trust, especially if you are the surviving spouse and want to make changes. Don’t miss out on this...
info_outline 152: The Truth About AB Trusts: Will Your Wishes Be Followed?Absolute Trust Talk
Welcome back to Absolute Trust Talk with Kirsten Howe and associate attorney Jessica Colbert! In this second episode of our AB Trust series, we dive into a vital question: Will your wishes truly be honored? While AB Trusts are a common estate planning tool for couples, they have potential challenges. One significant issue is when the deceased spouse's wishes are unintentionally—or even deliberately—overlooked or altered. Tune in as we explore how and why this happens and, more importantly, what steps you can take to ensure that your estate plan works exactly as intended. ...
info_outline 151: Is an AB Trust Right for You? Essential Insights for Married CouplesAbsolute Trust Talk
Married couples, is your AB trust still serving your needs, or has it outstayed its welcome? In this episode of Absolute Trust Talk, Kirsten Howe and associate attorney Jessica Colbert take a closer look at AB trusts, a once-standard estate planning tool. They discuss when an AB trust makes sense and when it might just add unnecessary complexity and cost. Tune in as they explain the key benefits of asset control after death, while also considering the downsides, such as tax filing requirements and maintenance expenses. Whether you're revisiting an existing trust or planning for the future,...
info_outline 150: Third-Party Trustees: A Smart Choice for Your Estate Plan?Absolute Trust Talk
In this episode of Absolute Trust Talk, Kirsten Howe and associate attorney Jessica Colbert continue their in-depth discussion on selecting a successor trustee, with a focus on third-party options. They explore key considerations when choosing a licensed professional fiduciary, breaking down the advantages and potential drawbacks of this option. Additionally, they provide insights into other alternatives, such as corporate trustees. Whether you're making this decision for the first time or revisiting your estate plan, this episode offers practical advice to help you choose the best trustee...
info_outlineIn episode 15 of Absolute Trust Talk, Kirsten welcomes financial planning and investment professional John O’Dea of Summit Financial Group to the show. John’s focus is the wealth accumulation and protection needs present for individuals who own and operate a business. He has over a decade of experience working to simplify investment, insurance, and succession planning concepts.
Kirsten and John start out by discussing how to begin business succession planning for parents who own a business and want to transition it to their children but may not have planned for it yet. The discussion then dives deep into analysis of each step – valuation of a business, what the parents need to retire comfortably, how to add other professionals into the mix, and how to make the process fair for children who might not work in the family business.
Big Three from Episode #015:
- Start with goals and objectives – normal planning goals and processes
- Solve for what mom and dad need or must get
- Then indicate key paths to take
Time-stamped Show Notes:
2:46 – John jumps right into discussing how he gets started when helping clients transition a business.
6:24 – John shares how vital the EBITDA/MEBITDA calculations factor into cash flow.
8:45 – Kirsten asks John to share what other surprises arise in this planning.
12:12 – What comes after figuring out what the parents must get in order to step away from the business?
16:25 – What happens if there is a gap between what a client wants vs. what value there really is in their business?
18:10 – John discusses how to close a gap ensuring that assets last as long as needed.
28:07 – John shares how to communicate or incorporate transitioning parties.
31:53 – What are the most common conflicts in this process?
38:45 – How exactly do you transition a company to a new generation?
43:09 – John shares a couple of other common surprises uncovered when doing the business transition and succession planning.
Episode #015 Freebie: The Retirement Income Challenge
Retirement is something that individuals and couples work their whole lives for. When you stop working, you still need to live – there are still monthly expenditures, but that paycheck disappears. In conjunction with this episode, Absolute Trust Talk guest John O’Dea shares a key tool that he uses in his practice, The Retirement Challenge white paper. This document helps prospective retirees understand some of the challenges they are up against and describes some of the strategies available to address these challenges. Click here to gain exclusive access to your own copy of The Retirement Challenge white paper.
Resources/Tools/Links Mentioned in This Episode:
Never Split the Difference: Negotiating as if Your Life Depended on It by Chris Voss and Tahl Raz