There are numerous issues to consider when planning your Estate. This is a multi-part blog examining some of the most common issues to consider.
A DIVORCE.
Divorce of parents, of children or of grandchildren, can create a division of property and assets where "non-family" members end up owning a portion of the family property. Mississippi is an "equitable distribution" state, not a community property state such as Louisiana, where each spouse owns one half (½) of the assets. In Mississippi, the courts look to the family assets created during the marriage then make an equitable distribution between the divorcing spouses. An "involuntary transfer" of assets can be ordered by the court. A son or daughter’s ex-spouse can become your unwanted business partner.
B. LAWSUITS.
We live in a litigious society. Bad things can and do happen to each of us from time to time. Automobile wrecks, malpractice and accidents all create opportunities for third parties to obtain a judgment against an individual. Using liability insurance and different ownership entities can lessen this threat. A judgment creditor is not your first choice for a business partner.
C. BANKRUPTCY.
The economic future is uncertain. Often ventures begun by children or grandchildren fail. Debts are accumulated that can not be repaid. Bankruptcy is a course of action. The trustee in bankruptcy can become your partner. His or her goal is to create cash for the bankrupt estate. That is not best for the family or its assets.
