The Nosy Lawyer

CTA Imposes New Small Business Reporting Requirements for 2024 Small business owners will have one more item on their compliance to-do list when the Corporate Transparency Act (CTA) takes effect next

nosylawyer@gmail.com (Nosy Lawyer) — Tue, 02 Apr 2024 18:51:21 GMT

Small business owners will have one more item on their compliance to-do list when the Corporate Transparency Act (CTA) takes effect next year.

The CTA, enacted as part of the Anti-Money Laundering Act of 2020 (AMLA), places new reporting requirements on many business entities in an effort to expose illegal activities, including the use of shell companies to launder money or conceal illicit funds. Around 30 million small businesses will be impacted by the law, which will establish a federal database of information, furnished by “reporting companies,” that will be accessible to certain authorities and organizations.

A final rule has been issued stating how the new law will be implemented to help businesses understand whether the law applies to them, how to comply, and which agencies will have access to the information they must report. CTA violations carry civil and criminal penalties, including imprisonment.

Why was the CTA passed?

The CTA was passed as part of the National Defense Authorization Act for Fiscal Year 2021. It directs the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) to gather information from private companies about their owners and controlling persons. Acting Director Himamauli Das said, “FinCEN is taking aggressive aim at those who would exploit anonymous shell corporations, front companies, and other loopholes to launder the proceeds of crimes, such as corruption, drug and arms trafficking, or terrorist financing.”

To counter the risks allegedly posed by anonymous shell companies, the CTA mandates the creation of a national registry that contains certain information about business entities that are formed by filing a document with a state’s secretary of state or similar office.

What does the CTA require?

Effective January 1, 2024, the CTA requires that certain businesses disclose to FinCEN information about the company, its beneficial owners, and in some cases, the company applicant.

Reporting companies—defined as any company with twenty or fewer employees that is formed by filing paperwork with the Secretary of State or equivalent official—that are created or registered prior to January 1, 2024, have until January 1, 2025, to file an initial report; reporting companies created or registered after January 1, 2024, will have thirty days after creation or registration to file a report.

Small business organizations such as the National Small Business Association (NSBA) and the National Federation of Independent Businesses (NFIB) oppose the CTA, calling it cumbersome, intrusive, overly punitive, and unconstitutional. NSBA states that small businesses are unfairly impacted because they usually do not have compliance teams or staff attorneys.

Eighty percent of the small businesses surveyed by NFIB are against the new reporting requirements, which NFIB claims are unclear. NFIB notes that each state has different standards and practices for business entity formation, potentially leading to uncertainty about whether a business must report to FinCEN. For example, some states require sole proprietorships and general partnerships to register with state agencies, while other states do not.

Does the CTA require my business to report?

The CTA applies to companies that are created by filing a document with a state authority. Typically, this includes corporations and limited liability companies. Depending on the state, it could also include limited partnerships, professional associations, cooperatives, real estate investment trusts, and trusts. In addition, the CTA applies to non-US companies that are registered to operate in the United States.

NFIB estimates that, based on these rules, 30 million small businesses will have to report to FinCEN. However, the CTA exempts around two dozen categories of companies, including companies that:

are publicly-traded;
have more than twenty full-time US employees;
filed a previous year’s tax return showing more than $5 million in gross receipts or sales;
have an operating presence at a physical US office location;
operate in a regulated industry, such as banking, utilities, or insurance, that already imposes similar reporting requirements; or
are subsidiaries of exempt organizations.

The exemptions, which generally include larger companies that are already subject to regulation, underline the primary purpose of the CTA: to combat money laundering and other illicit activities conducted via small, private, and anonymous shell companies.

What information must be provided in the reports?

The CTA requires three categories of information to be reported: company, owners, and applicant.

Domestic reporting companies created before January 1, 2024 must provide information about the company and its beneficial owners .
Beneficial owner is defined in the CTA as an individual who exercises “substantial control” over the reporting company or has an ownership interest of at least 25 percent. Company senior officers, directors, and others who make significant decisions on behalf of the company may meet this statutory definition of “substantial control,” although the broad definition may cause confusion in some instances.
Domestic reporting companies created on or after January 1, 2024, must provide information about the company, its beneficial owners, and its company applicants .
A company applicant generally is the individual who files the formation document with state authorities for the reporting company.

Technically, the information to be filed with FinCEN is called a Beneficial Ownership Information (BOI) Report. The following is what is required in the report for a company, an owner, and an applicant:

The reporting company must provide its name and any alternative (DBA) names, the address of its principal place of business, the state of formation, and its taxpayer identification number or FinCEN identifier.
Each beneficial owner of a reporting company must furnish their full legal name, date of birth, residential address, and an identification number from a driver’s license, passport, or other state-issued identification (ID), along with a copy of the ID document.
A company applicant is required to submit the same information as a beneficial owner.

Who has access to FinCEN BOI reports?

The CTA authorizes FinCEN to disclose BOI information to five categories of recipients:

US federal, state, local, and tribal government agencies
Foreign law enforcement agencies, judges, prosecutors, and other authorities
Financial institutions
Federal regulators
US Department of the Treasury

FinCEN may only disclose BOI information “under specific circumstances”: there are more stringent requirements for agencies other than those engaged in national security, intelligence, and law enforcement activities. There are also restrictions on how the information may be used and how it must be secured.

Some small business owners have expressed concerns about the privacy implications of the CTA. The NSBA has filed a lawsuit challenging the CTA’s constitutionality, in part on privacy grounds over sharing “sensitive information” with the government.

Are there penalties for noncompliance with the CTA?

Penalties for noncompliance may be steep. Willingly providing false information (including false identifying documents) to FinCEN, or failing to report complete BOI information, can result in:

Fines of $500 per day, up to $10,000
Imprisonment for up to two years

Civil and criminal liability may be avoided if an individual who submitted an original, erroneous report did not knowingly submit inaccurate information and submits an updated report correcting the inaccurate information within ninety days

Get help with CTA reporting requirements.

Understanding how the CTA applies to you, how it will affect your business, and what you must do to comply introduces new burdens that you may have scarce resources to address.

Terms like “beneficial owner” and “substantial control” may seem vague and confusing, further complicating compliance efforts. But compliance is critical for business owners who want to avoid possible sanctions.

We can help you determine whether the CTA applies to your business and the steps needed to meet its reporting requirements. With the law’s effective date just months away, we encourage you to reach out now to start working on a CTA compliance strategy.

Sincerely,

The Nosy Lawyer™

The information provided here is not legal advice and does not purport to be a substitute for advice of counsel on any specific matter. For legal advice, you should consult with an attorney concerning your specific situation. Call us if you have questions about your specific situation. Call us if we can be of assistance to you.

Schedule an appointment with an attorney:

www.calendly.com/macklaw - initial consultation link.

The Nosy Lawyer™ is a publication of the Mack Law Group, PLC a Bloomfield

How Effective Estate Planning Can Avoid Detrimental Disputes In The Hospital

nosylawyer@gmail.com (Nosy Lawyer) — Tue, 12 Mar 2024 19:00:00 GMT

When clients seek estate planning advice, they often begin with a request to draft a will or a trust. After a few “nosy lawyer” questions, I discover what they are really seeking is assurance that their affairs are handled in an orderly fashion, so that their family is taking care of when “if” and “when” something happens to them. The “if” is if they are disabled or incapacitated and unable to handle their own affairs, and the “when” is when they die.

Estate planning has two essential parts – pre-death death and post death planning. Of course, there are several ways to design plans around these two concepts, but if done correctly, an estate plan should provide an orderly way to address the “if” and “when”.

Pre-Death Planning

Let’s talk about pre-death planning and how it can avoid stressful situations in the ICU. According to a recent study approximately 1 in 5 patients in the U.S. die in the ICU. The ICU is a place where decisions about care must often be made quickly and decisively. The ability to do so can hinge upon sorting out who can make those decisions, and under what legal authority. This process can come with great deliberation and debate among family members with differing views on a patient’s care, leaving medical professionals stressed in the uncomfortable middle. There is a better way.

We recommend our clients prepare with pre-death planning. A Medical Power of Attorney (also called Patient Advocate Designation) importantly allows a patient who is otherwise unable to make medical decisions to designate someone to make those decisions on his/her behalf. Having a properly drafted and executed Medical Durable Power of Attorney can reduce family fights and enable medical professionals to move quickly to take critical medical action. This document is a part of our pre-death planning. It takes the guess work out of who oversees making medical decisions, allows the decisions to be made in accordance with the patient’s wishes, and allows the medical professionals to go about saving lives.

Sincerely,

The Nosy Lawyer™

Schedule an appointment with an attorney:

www.calendly.com/macklawgrp.com - initial consultation link.

The Nosy Lawyer™ is a publication of the Mack Law Group, PLC a Bloomfield

The Sole Proprietorship: Pros and Cons

nosylawyer@gmail.com (Nosy Lawyer) — Thu, 29 Feb 2024 19:57:51 GMT

Transitioning from being an employee to being self-employed is a goal of many American workers, and a growing number of workers have realized their goal in the wake of pandemic-related economic disruptions.

Individuals often cite taking control of their career as a top motivating factor for being self-employed. Self-employment frequently starts as a side hustle that blossoms into a full-time career. Without even knowing it, however, the self-employed may find themselves operating a sole proprietorship.

Whether a sole proprietorship is the final destination on a self-employed individual’s entrepreneurial journey or a stop on the way to running a larger business, they should understand the pros and cons of this structure.

The Shift to Self-Employment

Having a full-time job was once seen as the main path to a successful career. But that perception has changed radically among younger workers, who have learned the hard way that employment does not offer the security it once did.

The Great Recession saw roughly one in five employees lose their jobs. It pushed many of them into temporary work, often as contractors; disrupted traditional career paths; and contributed to an overall sense that the economic system is broken.

While the economy stabilized in the years after the Great Recession, COVID-19 delivered another blow as millions of businesses laid off staff. The number of self-employed workers rose sharply following pandemic-related shutdowns and layoffs.

However, unlike with the Great Recession, the newly self-employed after the pandemic were not just employees who had been laid off from their jobs. Forced to reconsider their work lives during the COVID-19 lockdowns, many workers joined the Great Resignation, willingly leaving their jobs to become self-employed.

Self-employment remains above pre-pandemic levels and, if it continues increasing at its current rate, could surpass traditional employment in the coming years. Self-employed Americans comprise roughly 6 percent to 15 percent of the workforce, depending on the source. However, many more Americans want to be self-employed. A 2021 survey conducted by Freshbooks found that 40 percent of traditionally employed Americans were contemplating a shift to self-employment, with half saying it is their top life goal. Among those who are self-employed, 95 percent said they plan to stay that way for the foreseeable future, the study also found.

It is not just low-skilled workers, such as rideshare and delivery drivers, that are swelling the self-employed ranks. According to an Upwork survey, highly educated and skilled workers make up a growing share of those providing freelance services.

Self-Employment and Sole Proprietorship

Workers who are not employed by a specific company may, by default, be operating a sole proprietorship. Unlike a corporation, limited liability company (LLC), or partnership, which require paperwork to be filed with the state and the payment of filing fees, a sole proprietorship typically requires no such formalities. In fact, a contractor, freelancer, or other self-employed individual is automatically considered a sole proprietor by the Internal Revenue Service (IRS) if they operate a business under their own name and are not registered as another business type.

Sole proprietors may need to obtain industry-specific licenses and permits to lawfully operate. They can also file an application to conduct business under a fictitious name, called a doing business as (DBA) name. With a DBA, a sole proprietorship entity is not separate from the individual who runs it: legally, they are considered the same.

While fictitious name certificates do not provide any significant legal protections, they can help business owners conduct business within a certain geographical space under a specified name. This should not be confused with trademark protections that provide certain levels of exclusivity when it comes to brand identifiers such as names and logos.

Benefits of a Sole Proprietorship

The simplicity of a sole proprietorship is one of its major advantages. Other than paying taxes, there are typically no required filings or registrations. Startup costs are low, and even tax preparation is relatively simple, since the sole proprietorship is not taxed separately from the business owner.

The business’s profits and losses are reported on the business owner’s personal income tax return, which uses the owner’s Social Security number.
In addition, sole proprietors can take advantage of tax deductions not available to employees, such as health insurance deductions and business expenses.

With the simplicity of a sole proprietorship comes greater control over the business. Although some states permit a married couple to jointly own a sole proprietorship, there are no partners or shareholders to consider. The sole proprietor has the freedom to make every revenue decision—including how much to pay themselves and how much to reinvest in the business. They can guide the business in whatever direction they want.

Drawbacks of a Sole Proprietorship

Sole proprietors are fully responsible for their taxes, business decisions, and legal contingencies. While this creates freedom, it can also lead to exposure.

As the sole owner, manager, and decision maker, the sole proprietor is solely liable for debts and financial losses that the business incurs. Because the business entity is not legally separate from the owner, personal assets are at risk if the business faces a lawsuit, bankruptcy, or financial trouble. The courts could seize a sole proprietor’s home, car, bank accounts, and other belongings to satisfy a liability of the business.

Additional drawbacks of a sole proprietorship include the following:

It is more difficult to raise capital due to the inability to sell stock, add new owners/members, or secure loans from banks, which tend to see sole proprietors as high risk.
Difficulty raising capital can lead to problems growing the business.
Sole proprietors generally must pay a self-employment tax of more than 15 percent on all business income. This tax doubles the Social Security and Medicare taxes that employees pay and comes on top of regular income tax.
Not having business partners can be seen as a plus, but as the business matures and seeks fresh opportunities and investments, outside partners may be desirable.

Sole Proprietors Don’t Have to Go It Alone. We Can Help.

Making the jump to full-time self-employment could be the fulfillment of a lifelong goal, but working for yourself is not without challenges.

Running a sole proprietorship may not be as simple as it appears on the surface. You might have to

choose and register a DBA,
register for licenses and permits,
purchase a website domain,
hire employees and obtain an employee identification number,
open a business bank account,
buy insurance to mitigate personal liability for business losses, and
prove to the IRS that your business is not a “hobby” to reap the potential tax benefits of sole proprietorship.

A sole proprietorship may initially be the right choice for consultants, freelancers, independent contractors, and some types of business owners such as franchisees who have minimal startup capital requirements and whose products or services involve a relatively low risk of liability. But at some point, you may decide that you have outgrown your sole proprietorship and want to form a business entity such as a corporation or an LLC. Further, if you plan to grow from the beginning, you may want to consider a different legal structure.

During a meeting with our business attorneys, we can discuss the pros and cons of a sole proprietorship, whether it is right for you, how to get started as a small business owner, and ways we can help you meet your business goals. Call or contact us to get started.

Sincerely,

The Nosy Lawyer™

Schedule an appointment with an attorney:

www.calendly.com/macklawgrp.com - initial consultation link.

The Nosy Lawyer™ is a publication of the Mack Law Group, PLC a Bloomfield

Unlocking Financial Security: A Comprehensive Guide to Trust Funding

nosylawyer@gmail.com (Nosy Lawyer) — Wed, 17 Jan 2024 22:45:29 GMT

Financial planning is an essential aspect of securing your family’s future and protecting your assets. One powerful tool for achieving this is a trust. But setting up a trust is only the first step. To make the most of it, you need to fund the trust. In this blog post, we will explore the importance of trust funding, the various assets that can be placed in a trust, and the benefits it can provide to both you and your beneficiaries.

What Is Trust Funding?

Trust funding refers to the process of transferring your assets into a trust. The trust becomes the legal owner of the assets, and you, as the trustee, or someone else that you chose will manage them, for the benefit of the trust’s beneficiaries. Proper funding ensures that your assets are protected, managed according to your wishes, and distributed efficiently upon your passing.

Types of Trusts:

Revocable Living Trust: This trust allows you to maintain control of your assets during your lifetime and provides a seamless transition of your assets upon your incapacity or death.

Irrevocable Trust: Once assets are placed in an irrevocable trust, you typically cannot reclaim them. This trust offers enhanced asset protection and tax benefits.

Assets to Consider for Trust Funding:

Real Estate: Homes, rental properties, and land can be transferred to a trust, providing a clear path for the distribution of these valuable assets.
Financial Accounts: Bank accounts, investments, and brokerage accounts can be included in a trust, making it easier to manage and distribute these funds.
Business Interests: If you own a business, funding your trust with business interests can ensure a smooth transition of ownership.
Life Insurance Policies: Placing life insurance policies in a trust can help beneficiaries receive payouts efficiently, potentially reducing estate taxes.

Benefits of Trust Funding:

Probate Avoidance: Funded trusts can bypass the lengthy and costly probate process, ensuring your assets are distributed to beneficiaries more quickly.
Privacy: Trusts are private documents, so the details of your assets and beneficiaries remain confidential, unlike probate, which is a public process.
Asset Protection: Irrevocable trusts can shield your assets from creditors and legal claims, providing added security.
Tax Efficiency: Proper trust funding can help minimize estate and inheritance taxes, leaving more for your beneficiaries.
Incapacity Planning: Trusts can outline how your assets should be managed if you become incapacitated, offering peace of mind for you and your loved ones.

Steps to Fund a Trust:

Identify assets to be included.
Work with an attorney to create and customize the trust document.
Change titles and beneficiary designations to reflect the trust as the owner.
Update wills, deeds, and financial accounts to mention the trust.

Conclusion:

Trust funding is an essential step in estate planning, offering numerous benefits for you and your beneficiaries. Whether you have real estate, financial assets, or a business, establishing a trust and properly funding it can provide financial security, privacy, and peace of mind. Consult with an experienced estate planning attorney to ensure your trust is tailored to your specific needs and goals and enjoy the comfort of knowing your legacy is secure.

Sincerely,

The Nosy Lawyer™

______________________________________________________________________________________

Call us if you have questions about your plan or would like to get started with a new estate plan. https://macklawgrp.com (248) 562-6423.

The Nosy Lawyer™ is a publication of the Mack Law Group, PLC a Bloomfield Hills, Michigan based law firm serving business owners and their families.

Uncommon Sense with Jill Gleba Podcast

nosylawyer@gmail.com (Nosy Lawyer) — Mon, 23 Oct 2023 19:01:15 GMT

Tune in to the latest episode of the Uncommon Sense with Jill Gleba podcast where Pamela Mack discusses the common mistakes and misconceptions in Estate Planning.

The Uncommon Sense is a fun and engaging podcast that features collection of stories and ideas for the “financially curious” who want to learn more about personal finances but aren’t sure where to begin.

Listen to Pam and Jill talk about things like Trusts gone bad, when you might not want to make your kids joint on your account, leaving kids without guardians and more horror stories around estate planning.

Click here to listen!

Estate Planning for Single Mothers: Providing for College Education Expenses

nosylawyer@gmail.com (Nosy Lawyer) — Mon, 16 Oct 2023 17:31:18 GMT

Being a single mother comes with its unique challenges, and one of the most significant concerns is ensuring your child's financial future, including their college education. Estate planning is a powerful tool that can help you secure your child's educational needs even when you're not around. In this blog post, we will explore the importance of estate planning for single mothers, particularly in the context of providing for college education expenses. We will also discuss how The Mack Law Group can provide invaluable support and guidance in this important journey.

The Significance of College Education Planning

A college education is often a stepping stone to a brighter future, providing opportunities for personal and professional growth. As a single mother, you want to make sure your child has access to quality education and the tools they need to achieve their dreams. Effective estate planning can be instrumental in securing the necessary financial resources to cover college education expenses. Here's why it's essential:

1. Financial Security for Your Child:

A well-structured estate plan can provide your child with financial stability, ensuring they have the means to pursue higher education without burdensome student loans.

2. Legacy Preservation:

Estate planning allows you to pass on your values and legacy to your child, including the importance of education and personal development.

3. Tax Efficiency:

Strategic estate planning can minimize tax liabilities, ensuring that more of your assets are directed towards your child's education.

4. Peace of Mind:

Knowing that you've made provisions for your child's future can provide peace of mind, allowing you to focus on the present.

Estate Planning Strategies for Single Mothers

For single mothers, estate planning strategies that focus on providing for college education expenses are of paramount importance. Here are some key components to consider:

1. Will and Testament:

A will is a foundational document in your estate plan. It allows you to designate a guardian for your child and specify how your assets should be distributed to support their educational needs.

2. Trusts:

Creating a trust, such as an education trust or a revocable living trust, can ensure that your child's inheritance is managed and allocated for their education in a structured and tax-efficient manner.

3. Life Insurance:

Life insurance can provide a financial safety net for your child in case of your untimely passing, offering them the resources they need to cover college expenses.

4. 529 College Savings Plan:

Consider establishing a 529 college savings plan, which offers tax advantages for education savings and can be integrated into your estate plan.

5. Guardianship Designation:

Designate a guardian in your will who will be responsible for your child's education and well-being if you're not there to provide care.

6. Health Care Proxy and Power of Attorney:

These documents are essential for ensuring that your child's medical and financial needs are met during your absence.

The Role of The Mack Law Group

The Mack Law Group specializes in estate planning and can provide crucial assistance to single mothers in ensuring that their child's college education expenses are covered. Here's how they can help:

1. Customized Estate Plans:

The Mack Law Group creates personalized estate plans tailored to your unique financial situation, goals, and values. They will work closely with you to ensure that your child's education expenses are addressed.

2. Trust and Investment Strategies:

They offer strategies to establish trusts and invest assets in a way that will maximize growth and ensure that funds are available for your child's education.

3. Life Insurance Planning:

The Mack Law Group can help you explore life insurance options to provide financial security for your child.

4. Tax Efficiency:

They are well-versed in tax-efficient planning, which can help you minimize tax liabilities and allocate more resources to your child's education.

5. Guardianship Designation:

The Mack Law Group can assist in designating a guardian who is not only capable of providing care but also committed to your child's educational aspirations.

6. Legacy Planning:

They understand the importance of preserving your legacy and can help ensure that your values and educational aspirations are passed down to your child.

Common Pitfalls to Avoid

In the estate planning process, there are common pitfalls that single mothers should avoid to ensure the success of their college education planning:

1. Procrastination:

Delaying estate planning can put your child's financial future at risk. Starting early and updating your plan regularly is essential.

2. Neglecting Proper Guardianship Designation:

Failing to designate a guardian who is aligned with your educational and financial goals for your child can lead to conflicts and misunderstandings.

3. Inadequate Financial Planning:

Not considering the cost of higher education and the potential for tuition inflation can lead to underfunding your child's education.

4. Lack of Professional Guidance:

Navigating estate planning can be complex, and failing to seek professional advice can result in suboptimal planning.

Conclusion

Estate planning for single mothers is a powerful tool for ensuring that your child's college education expenses are adequately covered. The Mack Law Group understands the unique challenges and aspirations of single mothers and can provide the expertise and guidance needed to create a comprehensive estate plan that preserves your legacy and secures your child's financial future. Don't let the complexities of estate planning overwhelm you – reach out to The Mack Law Group and take the first steps toward ensuring your child's educational aspirations are achieved.

Can Do Attitude - The Kindling Project podcast

nosylawyer@gmail.com (Nosy Lawyer) — Mon, 18 Sep 2023 22:13:12 GMT

Can Do Attitude - The Kindling Project podcast

In the fast-paced world of legal advocacy, there are those who not only uphold the law but also inspire change, empower the community, and lead with compassion. At The Mack Law Group, we are proud to share that we recently had the incredible honor of being featured on The Kindling Project podcast .

The Kindling Project is a passion project brought to you by Melissa Halpin, an artist and CEO of Memora, a national experience design agency, and Monica Inestroza-Curtis, a storyteller and blogger at ToGETherJOY.com.

I had the opportunity to share my experience building multiple businesses successfully and to discuss the importance of pursuing our visions and not letting others dictate our path.

Tune in today to learn valuable insights on staying true to yourself and achieving your goals.

The Nosy Lawyer™

(248) 562-6423

Estate Planning Strategies for Single Mothers: Ensuring Financial Security

nosylawyer@gmail.com (Nosy Lawyer) — Mon, 18 Sep 2023 17:37:55 GMT

As a single mother, your top priority is providing a secure and stable future for your children. Estate planning plays a vital role in ensuring their financial security and well-being. At Mack Law Group, we understand the unique challenges faced by single mothers and are here to offer guidance and support. In this blog post, we will discuss essential estate planning strategies specifically tailored to single mothers, empowering you to protect your assets, plan for the future, and ensure a lasting legacy for your children.

Create a Comprehensive Estate Plan:

Developing a comprehensive estate plan is the foundation of securing your financial future. It includes essential documents such as wills, trusts, powers of attorney, and healthcare directives. At Mack Law Group, we specialize in assisting single mothers in creating personalized estate plans that reflect their unique circumstances and goals.

Designate a Guardian for Your Children:

Selecting a guardian for your children is a critical decision. Choose someone you trust who shares your values and is capable of providing the love and care your children need. Our experienced team at Mack Law Group can guide you through the process of selecting a guardian and ensuring that your children’s best interests are protected.

Establish a Trust:

Consider establishing a trust as part of your estate plan to protect and manage assets for the benefit of your children. A trust provides you with control over how your assets are distributed and can offer ongoing financial support. Our skilled attorneys can assist you in establishing and managing a trust that aligns with your goals and safeguards your children’s financial future.

Review and Update Beneficiary Designations:

Regularly review and update beneficiary designations on your life insurance policies, retirement accounts, and other financial assets. Ensure that your beneficiary designations accurately reflect your current wishes and consider designating a contingent beneficiary. Our team at Mack Law Group can help you navigate the process and ensure that your assets are distributed according to your intentions.

Plan for Long-Term Care:

Consider your long-term care needs and include provisions for them in your estate plan. This includes addressing health care decisions, disability insurance, and long-term care insurance. Our knowledgeable attorneys can help you understand your options and develop a plan to protect your well-being as you age.

How Mack Law Group Can Help:

At Mack Law Group, we are dedicated to assisting single mothers in securing their financial future through comprehensive estate planning. Here’s how we can support you:

Personalized Estate Planning:

Our experienced team will work closely with you to understand your unique circumstances, concerns, and aspirations. We will develop a customized estate plan that ensures your children’s financial security and reflects your wishes.

Guardian Designation Assistance:

We provide guidance in selecting a suitable guardian for your children, considering factors such as compatibility, values, and capabilities.

Trust Creation and Management:

Our attorneys can help you establish and manage a trust that safeguards your assets and provides ongoing financial support for your children.

Long-Term Care Planning:

Our expertise in long-term care planning will help you make informed decisions about health care, disability insurance, and other considerations to protect your well-being as you age.

As a single mother, securing your financial future through estate planning is essential for the well-being of your children. At Mack Law Group, we are committed to providing expert guidance and support throughout the estate planning process. Contact our team today to schedule a consultation and let us help you create a comprehensive estate plan that ensures the financial security of your family and leaves a lasting legacy.

The Nosy Lawyer™

(248) 562-6423

Probate vs. Non-Probate Assets: What Single Mothers Need to Know

nosylawyer@gmail.com (Nosy Lawyer) — Thu, 07 Sep 2023 20:56:32 GMT

Probate vs. Non-Probate Assets: What Single Mothers Need to Know

As a single mother, understanding the difference between probate and non-probate assets is crucial for effective estate planning. Probate is the legal process of administering a deceased person’s estate, while non-probate assets bypass this process and transfer directly to designated beneficiaries.

At Mack Law Group, we recognize the importance of guiding single mothers through the complexities of probate and non-probate assets. In this blog post, we will provide essential information on this topic and explain how our experienced team can assist you in navigating the estate planning process with confidence.

Probate Assets

Probate assets are those that are subject to the probate process upon the owner’s passing. These assets typically include:

Solely Owned Property: Any property held solely in your name without designated beneficiaries or joint ownership falls under probate. This may include real estate, vehicles, and personal belongings.
Bank Accounts: Bank accounts held solely in your name without payable-on-death (POD) or transfer-on-death (TOD) designations are considered probate assets.
Investments and Securities: Stocks, bonds, and mutual funds held solely in your name are subject to probate unless you have designated beneficiaries or transfer-on-death instructions.

Non-Probate Assets

Non-probate assets do not go through the probate process and transfer directly to designated beneficiaries upon your passing. Common examples of non-probate assets include:

Jointly Owned Property : Property held jointly with rights of survivorship automatically transfers to the surviving owner(s) upon your death. This applies to jointly owned real estate, bank accounts, and other assets.
Retirement Accounts : Assets held in retirement accounts, such as 401(k)s or IRAs, pass directly to the named beneficiaries you have designated.
Life Insurance Policies : Proceeds from life insurance policies go directly to the named beneficiaries and are not subject to probate.

How Mack Law Group Can Help

At Mack Law Group, we understand the importance of planning for the future and ensuring the smooth transfer of assets for single mothers. Here’s how we can assist you:

Estate Planning Guidance : Our experienced team will provide personalized guidance on estate planning strategies tailored to your specific circumstances. We will help you identify probate and non-probate assets, ensuring that your wishes are clearly stated and your assets are protected.
Asset Protection : We will work with you to develop an estate plan that safeguards your assets, ensuring that they are protected and transferred according to your wishes.
Document Preparation : Our attorneys will draft and review the necessary legal documents, including wills, trusts, and beneficiary designations, to ensure they accurately reflect your intentions.
Estate Administration : In the event of your passing, our team can provide guidance and support to your loved ones during the probate process, ensuring a smooth and efficient administration of your estate.

Understanding the distinction between probate and non-probate assets is essential for single mothers when it comes to estate planning. At Mack Law Group, we are committed to assisting single mothers in navigating these complexities and securing their assets for the future. Contact our experienced team today to schedule a consultation, and let us help you create an estate plan that protects your assets, provides for your loved ones, and offers peace of mind.

The Nosy Lawyer™

(248) 562-6423

Common Mistakes in Probate Avoidance in Wayne, Oakland, and McCain Michigan

nosylawyer@gmail.com (Nosy Lawyer) — Thu, 07 Sep 2023 20:48:36 GMT

Common Mistakes in Probate Avoidance in Wayne, Oakland, and McCain Michigan

Probate avoidance is a crucial aspect of estate planning that can save your beneficiaries both time and money in the long run. However, there are common mistakes that people make when attempting to avoid probate, which can lead to unnecessary legal battles and disputes. In this blog post, we’ll discuss some of the common mistakes people make in probate avoidance in Wayne, Oakland, and Macomb, Michigan, and how the Mack Law Group can help you avoid them.

Mistake #1: Failing to Plan Properly

One of the most common mistakes people make is failing to plan properly. Some individuals assume that their assets will automatically transfer to their loved ones after they pass away, but this is not always the case. Without a proper plan in place, your assets may end up in probate court, where your loved ones will be forced to go through a lengthy and costly legal process to inherit your assets. Therefore, it’s essential to create a comprehensive estate plan that considers all your assets and outlines a clear plan for their distribution.

Mistake #2: Improper Use of Joint Tenancy

Another common mistake people make is the improper use of joint tenancy. While joint tenancy is a popular probate avoidance strategy, it can lead to unintended consequences if not used correctly. For instance, if you add a family member as a joint tenant on your property, they become a co-owner of that property, and you lose control over it. Moreover, if the joint tenant passes away before you do, their share of the property may pass to their heirs rather than yours, which can cause complications and disputes.

Mistake #3: Failure to Update Beneficiary Designations

Many people fail to update their beneficiary designations regularly, which can cause complications during probate. For instance, if you’ve named your ex-spouse as a beneficiary on your life insurance policy or retirement account, they will receive those assets, even if you’ve remarried or designated someone else as your beneficiary in your will. Therefore, it’s essential to update your beneficiary designations regularly to ensure that your assets go to the intended beneficiaries.

How the Mack Law Group Can Help

At the Mack Law Group, we understand the importance of proper estate planning and probate avoidance. We have years of experience helping clients in Wayne, Oakland, and Macomb, Michigan, to create comprehensive estate plans that minimize the risk of probate and ensure their assets go to their intended beneficiaries. Our attorneys will work closely with you to identify your goals and develop a plan that aligns with them.

Moreover, we offer a range of legal services, including wills, trusts, power of attorney, and healthcare directives. We’ll also help you update your beneficiary designations, review your joint tenancy arrangements, and ensure that your assets are titled correctly. With our help, you can rest assured that your estate plan is in good hands and your loved ones are protected.

Probate avoidance is a crucial aspect of estate planning that can save your beneficiaries both time and money in the long run. However, many people make common mistakes when attempting to avoid probate, which can lead to unnecessary legal battles and disputes. At the Mack Law Group, we’re committed to helping clients in Wayne, Oakland, and Macomb, Michigan, create comprehensive estate plans that minimize the risk of probate and ensure their assets go to their intended beneficiaries. Contact us today to schedule a consultation and start planning for your future.

The Nosy Lawyer™

(248) 562-6423

The Top 10 Estate Planning Mistakes To Avoid For Mothers by The Mack Law Group

nosylawyer@gmail.com (Nosy Lawyer) — Thu, 07 Sep 2023 20:43:57 GMT

The Top 10 Estate Planning Mistakes To Avoid For Mothers by The Mack Law Group

Every mother wants the best for her children and works hard to ensure they have a secure future. But, oftentimes, mothers can run into problems when it comes to estate planning. It is important that every mother puts in place an estate plan that will protect their children and provide for their future in the event of their passing. The Mack Law Group provides this guide on the top 10 mistakes to avoid when setting up an estate plan as a mother.

1. Not having a Will

A will clearly defines who will receive your assets after you pass away. Without one, your assets may not go where you intended them to and could be subject to state law rules regarding inheritance. A will can also name a guardian for any minor children you have, which is especially important for single parents.

2. Not having an Enduring Power of Attorney

This document allows you to appoint someone else to manage your finances if you become unable to do so yourself due to illness or injury. It is essential that you choose someone trustworthy who can make decisions on your behalf in such cases as they arise.

3. Not having an Advanced Health Care Directive

This document allows you to state your wishes regarding end-of-life care should you become unable to make decisions yourself due to illness or injury. An Advanced Health Care Directive helps ensure that your wishes are respected during difficult times and makes it easier for family members and caregivers who need guidance about what treatments are appropriate for you in such situations.

4. Not updating documents regularly

It’s important that all of your estate planning documents are kept up-to-date with any changes in circumstances or assets, such as if there are changes in guardianship, beneficiaries, or assets involved in the estate plan over time. Failing to update these documents could result in unexpected outcomes down the road which could be costly and time-consuming to fix later on.

5. Not considering taxes

Estate taxes can be substantial and should be taken into consideration when setting up an estate plan – even if no tax is currently due at death (which could change depending on laws). Consulting with an experienced tax attorney can help reduce potential tax liabilities and make sure everything is set up correctly from the start.

6. Naming inappropriate trustees

When selecting trustees (the person responsible for managing the trust), it’s important that they have the necessary skills required for this role and are capable of properly carrying out tasks related thereto without feeling overwhelmed by them (e..g., investing funds). Choosing people who don’t meet these requirements can lead to costly errors down the road, both financially and emotionally. So it’s important that careful consideration goes into this decision from the start.

7. Ignoring state laws

Every state has different laws governing estates, trusts, probate proceedings, etc., so it’s important that all documents are prepared according to those specific laws or else they may not be valid when needed most! Consulting with local legal professionals familiar with these laws can help ensure everything is set up correctly from day one so there aren’t any surprises later on down the line!

8. Not considering digital assets

Digital assets (such as online accounts) must also be addressed within an estate plan since they often contain valuable information or access rights which may need transferring over upon death (or incapacity). These should always be considered when setting up an estate plan so nothing gets forgotten about during this process. Also consider whether passwords should be stored securely somewhere too (e..g., password manager) just in case access needs granting at some stage down the line. It’s also important to double-check any applicable privacy policies that are related as well.

9. Not obtaining proper insurance coverage

Insurance coverage may not always seem like a priority upfront, but it can really help provide financial protection against unforeseen events later on down the line. This is especially if something were ever to happen unexpectedly leaving behind minor children without income-generating sources, etc. Speak with local insurance providers/agents today and ask how they might be able to offer assistance here.

10. Failing To Put Protections In Place For Minor Children

Last but certainly not least… One thing many single mothers forget about when putting together their estate plans and/or wills is providing protections for minor children should anything unexpected happen before they reach adulthood themselves. For example, appointing guardianship and or creating trusts, etc. Allowing experts like The Mack Law Group to handle these matters, helps to ensure everything runs smoothly and protects everyone involved from potential pitfalls along the way.

As a busy mother, taking care of yourself and making sure everything is set up correctly now is extremely important because it will save time and money later on down the line, especially where young ones are involved. Working proactively now with experts like The Mack Law Group, ensures proper protections and supports are put in place early enough, allowing everyone peace of mind moving forward. Taking steps today means less stress tomorrow.

The Nosy Lawyer™

(248) 562-6423

Top 10 Estate and Legacy Planning Tips For Single Mother Entrepreneurs in Southern Michigan

nosylawyer@gmail.com (Nosy Lawyer) — Thu, 07 Sep 2023 18:20:46 GMT

Top 10 Estate and Legacy Planning Tips For Single Mother Entrepreneurs in Southern Michigan

Estate and legacy planning is an important process for all entrepreneurs, but it is especially critical for single mothers. As the sole breadwinner and decision-maker for your family, you need to make sure that your affairs are in order in case something happens to you. The Mack Law Group has put together a list of the top 10 estate and legacy planning tips for single mother entrepreneurs in Southern Michigan to help you get started.

1- Make a will

This may seem like an obvious one, but it is crucial that you have a valid will in place that stipulates how you would like your assets to be distributed in the event of your death. Without a will, the state will make these decisions for you, which may not be in line with your wishes.

2- Set up a trust

If you have young children, it is important to set up a trust so that there is someone you trust who can take over the management of your assets on their behalf should something happen to you. This person will be responsible for making financial decisions on their behalf and ensuring that their needs are taken care of.

3- Designate a guardian

If you have minor children, it is also important to designate a legal guardian who will take care of them should something happen to you. This person will be responsible for making decisions about their welfare and upbringing.

4- Make sure your life insurance policy is up to date

If you have a life insurance policy, make sure that it is up to date and that the beneficiaries are properly designated. This will ensure that your loved ones are taken care of financially should something happen to you.

5- Update your beneficiary designations

Make sure that your beneficiary designations are up to date on all of your accounts, such as your 401k, IRA, and life insurance policy. This will ensure that the assets go to the people you want them to go to in the event of your death.

6- Have a durable power of attorney

In the event that you become incapacitated, it is important to have a durable power of attorney (POA) in place so that there is someone who can manage your affairs on your behalf. This person will be able to make financial and legal decisions on your behalf if you are unable to do so yourself.

7- Property ownership

Be sure to keep good records of all property ownership, including real estate, vehicles, jewelry, etc. This will make it easier for your loved ones to settle your estate if something happens to you.

8- Keep good records

It is also important to keep good financial records so that your loved ones can easily settle your estate if something happens to you. This includes keeping track of bank account numbers, investment account numbers, credit card balances, and outstanding bills.

9- Create an inventory of your belongings

Creating an inventory of all your belongings can be helpful for both estate planning purposes and insurance purposes. If something happens to your home or office and everything is lost, having a record of what was there can be very helpful when it comes time to file an insurance claim or settle your estate.

10- Make digital copies. It can also be helpful

To make digital copies of important documents such as birth certificates, social security cards, passports, wills, trusts, etc. That way if something happens to the originals, you will have access to them.

These are just some basic estate and legacy planning tips for single-mother entrepreneurs in Southern Michigan. Our Estate Planning attorneys will assist you to develop a comprehensive plan estate plan and/or business succession plan that meets your needs.

The Nosy Lawyer™

(248) 562-6423

What US Businesses Should Know About the GDPR

nosylawyer@gmail.com (Nosy Lawyer) — Tue, 15 Aug 2023 16:25:43 GMT

The European Union’s General Data Protection Regulation (GDPR) is a privacy law that protects the personal information of individuals (or as the law refers to them, “data subjects”) in the European Union (EU).

Although the GDPR is a European regulation, the law is extraterritorial in scope and applies to any business that handles the personal data of EU data subjects. This includes US-based companies that have no physical presence in the EU but control or process the personal data of EU customers.

The GDPR does not necessarily apply to all US businesses with a European presence, nor are the obligations the same for all businesses to which the GDPR applies. But if it does apply to your business, you need to have a clear understanding about your legal obligations because GDPR penalties can be steep.

Overview of the GDPR

Effective May 2018, the GDPR is one of the world’s strongest data protection regulations and has served as model legislation for similar laws that have since been enacted around the globe, including here in the United States. For example, the California Consumer Privacy Act, the Colorado Privacy Act, and the Utah Consumer Privacy Act are modeled on the GDPR.

One of the most notable aspects of the GDPR is that it applies to organizations that are not located in the EU. The main focus of the GDPR is to protect the personal data of people living in the EU. Their data can easily end up in the possession of a US-based company if that company’s website tracks and analyzes EU visitors. And if the company stores or uses the personal data of an EU data subject, it could have obligations under the GDPR.

This begs the question of how, exactly, the GDPR defines “personal data.” The definition is broad and covers any information that can identify an individual. Examples of personal data include a person’s name, identification number, IP address, email address, home address, and location data. Context is key: even if a piece of data, by itself, cannot identify someone, it may still be considered personal data if it can identify the person together with other information about them.

Is My Business Subject to the GDPR?

The GDPR sometimes applies to organizations based outside the EU. Article 3.2 of the GDPR describes two scenarios in which non-EU companies may have to comply with the law:

The company offers goods and services to people in the EU . Occasional instances of an EU data subject visiting your US website may not meet this definition, but if you specifically cater to EU customers (e.g., your website includes offerings described in European languages and has Euro pricing), it is more likely that the GDPR applies to you.
You monitor the behavior of website visitors . Companies that use marketing tools such as tracking cookies that gather data from website visitors fall within the scope of the GDPR. If you do not specifically cater to EU subjects but somebody from an EU country occasionally visits your site, it is less likely—but not impossible—that European regulators will scrutinize your tracking activities.

The GDPR also only applies to “professional or commercial activity,” and not to “purely personal or household activity.” There is a second exception for organizations with fewer than 250 employees. The exemption is partial and applies only to a company’s record-keeping obligations regarding data processing activities.

Data Controllers versus Data Processors

Other key terms used throughout the GDPR are data “controller” and data “processor.” Processing personal data covers activities such as gathering, collecting, and storing personal data, while controlling personal data involves determining what to do with personal data that has been processed. A company that decides “why” and “how” the personal data should be processed is the data controller.

For example, Company A collects personal data from its customers to sell them products. Company A is a controller. Company A provides the data it has collected to payment and shipping vendors. These vendors are processors.

A data processor is typically a third party (such as a cloud storage company or IT services company) external to a controller that processes personal data on behalf of the controller. However, there are cases where a company qualifies as both a controller and a processor.

Whether you are a controller or processor (or both) determines in part your specific legal obligations under the GDPR. Controllers generally have greater responsibilities—and liabilities—than processors under the GDPR, but their actual duties vary.

For example, controllers must have a lawful basis for collecting data and processors must keep records of their processing activities. Both controllers and processors must implement GDPR-compliant security practices and may have to appoint a data protection officer (DPO), to name just a couple of the obligations that controllers and processors share. The GDPR requires controllers that rely on third parties to process personal data to use a contract called a data processing agreement.

How to Maintain GDPR Compliance

GDPR.eu, an official EU website for GDPR compliance, recommends that US companies take the following steps:

Conduct an information audit to determine if you are subject to the GDPR. Hint: if you process the personal information of EU data subjects, and these processing activities are related to offering them goods and services, the GDPR probably applies to you.
Establish a legal basis for processing EU subject data . For most companies, this means obtaining consent from data subjects to collect and use their data. Processing data based on consent, though, comes with extra duties. Consent must be freely given, specific, informed, unambiguous, and revocable. Obtaining GDPR-compliant consent entails having a privacy notice that informs subjects about how their data are being used.
Conduct a data protection impact assessment to understand data security and privacy risks and implement risk mitigation procedures, such as using encryption and other safeguards. Article 25 of the GDPR mandates “data protection by design and default.”
Have a data processing agreement with your vendors . Contracts with your email vendor, cloud storage provider, and other third parties that handle the personal data you collect are required by the GDPR. These contracts define the rights and responsibilities of each party. Data controllers are responsible for creating the contract, which must contain certain clauses to be GDPR-compliant.
Determine if you need to name a GDPR DPO . A DPO is a manager in charge of responding to data subject comments and questions, monitoring an organization’s GDPR compliance, performing data impact assessments, and more. Not every organization requires a DPO.
Understand your duties in the event of a data breach . These duties include reporting a data breach within seventy-two hours to the supervisory authority and communicating the data breach to impacted subjects.
Follow cross-border transfer laws . The state of EU-US data transfers is currently in flux, with the previous legal framework invalidated by a European court. US and EU leaders are working on a new agreement, but in the meantime, transatlantic data flow is legally risky. Businesses that rely on it should consider using standard contractual clauses to ensure that European personal data sent to the US enjoy GDPR-like levels of protection.

Businesses that market their services to EU citizens and residents should already have updated their privacy policy, website terms and conditions, and internal policies about data handling a few years ago when the GDPR took effect. It never hurts to review your policies, however. If you are new to the European market, you should take steps to ensure you comply with the GDPR.

Failure to comply with the GDPR can result in controllers and processors being hit with a fine of up to €20 million, or 4 percent of annual global turnover , whichever is higher. Big GDPR fines have been issued to US companies, and small and small and mid-size enterprises (SMEs) are not immune. The GDPR Enforcement Tracker website has cataloged thousands of GDPR fines, most of which have been against SMEs. Analysts say that regulators are set to step up GDPR enforcement.

Talk to a Lawyer

The GDPR set the standard for data privacy legislation, and many other jurisdictions have since followed suit. Your company should take steps to comply with the GDPR and any laws like it, including those set to take effect in the United States in 2023. Instead of looking at compliance as an added legal burden, look at it as a way to build trust between your brand and your customers, as consumers worldwide demand greater control over their personal information.

For help with your data protection compliance policies, reach out to our office to schedule a meeting.

The Nosy Lawyer™

(248) 562-6423

____

What is personal data? European Comm’n, https://ec.europa.eu/info/law/law-topic/data-protection/reform/what-personal-data_en (last visited Dec. 2, 2022).

Does the GDP apply to companies outside of the EU? GDPR.EU, https://gdpr.eu/companies-outside-of-europe/ (last visited Dec. 2, 2022).

Article 30 GDPR. Records of processing activities, GDPR Text, https://gdpr-text.com/read/article-30/ (last visited Dec. 2, 2022).

What is a data controller or a data processor? European Comm’n, https://ec.europa.eu/info/law/law-topic/data-protection/reform/rules-business-and-organisations/obligations/controller-processor/what-data-controller-or-data-processor_en (last visited Dec. 2, 2022).

GDPR compliance checklist for US companies, GDPR.eu, https://gdpr.eu/compliance-checklist-us-companies/ (last visited Dec. 2, 2022).
Everything you need to know about the GDPR data protection officer (DPO), GDPR.EU, https://gdpr.eu/data-protection-officer/ (last visited Dec. 2, 2022).

30 Biggest GDPR Fines So Far (2020, 2021, 2022), Tessian (May 5, 2022), https://www.tessian.com/blog/biggest-gdpr-fines-2020/.

GDPR Enforcement Tracker, https://www.enforcementtracker.com/ (last visited Dec. 2, 2022).

GDPR: Fines increased by 40% last year, and they're about to get a lot bigger, ZDNet.com (Jan. 19. 2021), https://www.zdnet.com/article/gdpr-fines-increased-by-40-last-year-and-theyre-about-to-get-a-lot-bigger/.

Pass-Through Taxation: What You Need to Know

nosylawyer@gmail.com (Nosy Lawyer) — Thu, 18 May 2023 16:01:54 GMT

Most US businesses have a pass-through taxation structure: they are not subject to corporate tax. Instead, they have their income “pass through” to their owners to be taxed on their individual income tax returns.

Pass-through businesses have simpler filing and a lower tax rate than C corporations because they avoid double taxation. Pass-through business owners must pay self-employment taxes, however, in addition to state and local taxes. C corporations are eligible for some tax breaks that pass-throughs do not qualify for, although pass-through entities may qualify for a special deduction under a tax law that took effect in 2018.

Taxation is not the only factor to consider when selecting a business structure. Not all pass-through businesses enjoy limited liability protection, and unincorporated businesses may face limitations with growth and financing.

Types of Pass-Through Business Entities

According to the Internal Revenue Service (IRS), a pass-through entity is a business that passes its income, loss, deductions, or credits to its owners. It does not typically have an entity-level tax liability.¹ Many entities offer options to enjoy pass-through taxation; however, how an entity accesses this option varies depending upon the type of business.

A sole proprietorship is the default structure of a business owned by a single taxpayer, such as a freelancer or independent contractor. Sole proprietorships are the most common type of pass-through entity. The owner of a sole proprietorship reports business income on Schedule C of a 1040 tax return.
A partnership has multiple owners. The owners can be individuals or other businesses. Partnerships make up around 11 percent of all pass-through business entities. They file an entity-level tax return, but each partner’s business income, which is distributed according to the partnership agreement, is reported separately using Form 1065.
A limited liability company (LLC) has a flexible structure that allows it to be taxed as different pass-through entities, as well as a C corporation. An LLC with one member/owner is taxed as a sole proprietorship by default, while an LLC with more than one member/owner is taxed like a partnership. An LLC can also elect to be taxed as a corporation by filing Form 8832.
A corporation , sometimes referred to as a C corporation, is subject to double taxation as a default. That is, corporate income is taxed once at the corporate level through the corporate income tax and a second time at the individual level through the individual income tax on capital gains and dividends.² However, C corporations may elect to receive a special pass-through designation as an S corporation.

About the S Corporation Tax Election

An S corporation is a tax election limited to US citizens and businesses with up to 100 shareholders. S corporations file federal income taxes using Form 1120-S. Each shareholder reports their business profits and losses. About 13 percent of pass-through businesses are S corporations. LLCs and corporations may elect to be taxed as pass-through entities by filing Form 2553.

Avoiding double taxation is a major incentive for businesses to organize as pass-through entities and explains why about 95 percent of US businesses are pass-throughs.³ These types of companies employ more than half of all private-sector workers and account for around 40 percent of all private-sector payroll.⁴

High-income taxpayers earn the majority of pass-through business income. About 45 percent of pass-through income is earned by taxpayers who make $500,000 and over. Pass-through status lets these taxpayers avoid double taxation, but their business income could place them in a higher tax bracket.

To take the sting out of pass-through business income taxes, owners may be able to exclude up to 20 percent of qualified business income (QBI) from federal income tax using the Qualified Business Income Deduction. The pass-through deduction was added through the Tax Cuts and Jobs Act (TCJA) of 2017. The law’s details are complex, though—not all businesses qualify for the QBI deduction, and determining eligibility requires a multistep approach.⁵

Disadvantages of Pass-Through Status

Not having to pay taxes twice on business income is a major benefit of pass-through entities, but the tax picture is more complex than double taxation versus single taxation.

C corporations do not have to pay taxes on retained earnings or profits that are reinvested in the business. Flow-through entities, on the other hand, typically must pay taxes on all earnings, whether they are retained. As a result, flow-through businesses may have more of an incentive to distribute profits as dividends to owners, rather than use them to build the business.
C corporations can deduct fringe benefits —things like health insurance, paid time off, and commuter benefits—from their taxable income. Flow-through entity owners, however, may not write off fringe benefits.
C corporations might be able to write off more charitable deductions than pass-through businesses. C corporations can generally make tax-deductible charitable contributions up to 10 percent of their taxable income. Pass-throughs can deduct charitable contributions as well, but only if they itemize their deductions.
C corporations can issue an unlimited amount of stock, making them much more attractive to investors . Among pass-through entities, only S corporations can issue stock, but only up to 100 shareholders, and only one class of stock.
Not every type of pass-through entity offers limited liability. Starting a pass-through entity, especially a sole proprietorship or general partnership, is relatively simple. These types of businesses are created by default, without their owners having to file any paperwork with the state. Yet unlike a corporation or LLC, an unincorporated business is not a legal entity separate from the owners. Unincorporated businesses have unlimited liability. In the event of a bankruptcy or lawsuit, creditors can go after the personal assets of the owners.

Which Structure Is Right for Your Business?

Choosing the proper business entity structure involves balancing several factors. Owners are in business to make money. Most want to earn—and keep—as much income as possible. Federal taxes are just one piece of the taxation puzzle. State and local business taxes must also be considered to get a complete picture of a business’s tax rate. In addition, the tax breaks that you qualify for may change as your business grows and becomes more complex.

A simple business structure can make sense early on when you are effectively self-employed, have no employees, and face little exposure to liability. But at some point, it could make sense to transition a sole proprietorship or general partnership into an LLC, elect to have your LLC taxed as a corporation, or change your S corporation to a C corporation. There can be many different reasons to change an existing business structure, including not only tax considerations, but also limited liability protection, raising money from outside investors, succession planning, and hiring employees.

Before selecting a business entity, you should discuss the issues with an attorney. Once we learn more about your business, financials, and goals, we can explain your options from every angle so you can make an informed, confident decision. Contact our office to set up an appointment today: www.calendly.com/macklaw/initial-consultation .

The Nosy Lawyer™

(248) 562-6423

¹ Procedures and Authorities, IRM 8.19.1 (Apr. 19, 2016), https://www.irs.gov/irm/part8/irm_08-019-001.

² Double Taxation, Tax Foundation, https://taxfoundation.org/tax-basics/double-taxation/ (last visited May 17, 2023).

³ Aaron Krupkin and Adam Looney, 9 facts about pass-through businesses , The Brookings Inst. (May 15, 2017), https://www.brookings.edu/research/9-facts-about-pass-through-businesses/#fact5/.

⁴ Kyle Pomerleau, Some Pass-Through Businesses are Significant Employers , Tax Foundation (Feb. 9, 2015), https://taxfoundation.org/some-pass-through-businesses-are-significant-employers/.

⁵ I.R.S. News Release FS-2019-8, Facts About the Qualified Business Income Deduction (Apr. 2019), https://www.irs.gov/newsroom/facts-about-the-qualified-business-income-deduction.

How Effective Estate Planning Can Avoid Detrimental Disputes In The Hospital

nosylawyer@gmail.com (Nosy Lawyer) — Thu, 06 Apr 2023 17:06:08 GMT

When clients seek estate planning advice, they often begin with a request to draft a will or a trust. After a few “nosy lawyer” questions, I discovered what they are really seeking is assurance that their affairs are handled in an orderly fashion, so that their family is taking care of when “if” and “when” something happens to them. The “if” is if they are disabled or incapacitated and unable to handle their own affairs, and the “when” is when they die.

Estate planning has two essential parts – pre-death death and post-death planning. Of course, there are several ways to design plans around these two concepts, but if done correctly, an estate plan should provide an orderly way to address the “if” and “when”.

Pre-Death Planning

We recommend our clients prepare with pre-death planning. A Medical Power of Attorney (also called Patient Advocate Designation) importantly allows a patient who is otherwise unable to make medical decisions to designate someone to make those decisions on his/her behalf. Having a properly drafted and executed Medical Durable Power of Attorney can reduce family fights and enable medical professionals to move quickly to take critical medical action. This document is a part of our pre-death planning. It takes the guesswork out of who oversees making medical decisions, allows the decisions to be made in accordance with the patient’s wishes, and allows the medical professionals to go about saving lives.

If you have questions about pre-death planning, give us a call at (248) 562-6423 or schedule an appointment with us at www.calendly.com/macklaw .

Your Nosy Lawyer,

Pamela Mack

Name, Image, and Likeness: How to Protect Your Right to You

Tue, 28 Mar 2023 20:09:36 GMT

Creating a personal brand can be a way to establish an authentic image and stand out from the crowd. For most people, personal branding is a communications strategy rather than a career path. A carefully cultivated personal brand lets people know at a glance who we are, what we stand for, and the value we provide.

But for anyone with a degree of celebrity, their livelihood can depend on or at least be tied to their personal brand. Celebrity is a strong currency in our media-driven culture. How much somebody benefits from their status as a public figure depends largely on how well they control their own brand. If public figures do not protect their name, image, and likeness, somebody else could profit from them.

Understanding the Right of Publicity

When a company has created a valuable idea, design, symbol, product, or work of authorship, it has intellectual property rights that can be protected under patent, trademark, or copyright law. Once a patent, trademark, or copyright is registered with the appropriate government agency, its owner has additional tools to enforce their rights against unauthorized use by others.

People are similarly entitled to intellectual property rights that protect against another’s misappropriation of their name, image, and likeness for profit. This is known as the right of publicity. The right of publicity is not protected by federal law but rather at the state level, and state laws vary. Where an individual lives therefore has a strong bearing on their right of publicity.

In California, for example, almost anyone’s likeness, name, photograph, signature, and voice is protected for seventy years after their death. New York, on the other hand, only grants right of publicity protection to those who profit from their name and likeness. ^[1]

More than half of the states recognize some form of the right of publicity, either at common law or in state statutes. However, even where granted, the right of publicity is not absolute. The First Amendment protects the use by others of a person’s name, image, and likeness in news sources, educational materials, and some forms of entertainment, provided there is not commercial exploitation by a third party. ^[2]

Contracting Out Name, Image, and Likeness

Athletes, celebrities, and influencers have the right to control how their name, image, and likeness are commercially used. If another individual or company attempts to use their personal brand in an unauthorized or improper way for its own profit, such use could provide cause for legal action.

Because a person’s name and image are theirs to control, however, they can allow other parties to use them commercially. Permission is typically granted through a licensing agreement.

Licensing agreements can be fraught with peril for the uninformed. The licensee party (i.e., the party that is buying the rights to a person’s name, image, and likeness) may include contractual clauses that the licensing party (the athlete or celebrity) may eventually regret, such as the following:

An exclusivity clause that prevents the licensing party from working with competitors (e.g., if the contract is for promoting a line of men’s grooming products, the licensing party agrees not to engage in advertising, promotional, or marketing activities for companies that compete with the licensee).
An in perpetuity clause that allows the licensee to use the licensing party’s name, image, and likeness forever.

When it comes to contracts, the devil is in the details. It is reasonable for a business to seek to prevent their paid endorser from working for the competition. But overly broad categories of exclusion—for example, the entire beverage industry—should generally be avoided in favor of more detailed subcategories, such as energy drinks or soft drinks.

In some cases, an in perpetuity clause could be illegal. Now that college athletes have the right to profit from their name, image, and likeness, some states have passed laws specifying that licensing agreements cannot extend beyond an athlete’s collegiate playing career. These deals also cannot reward athletes for their on-field performance.

Contracts that contain illegal provisions are unenforceable. However, barring an illegal contract, once an agreement is in effect, it can be difficult—or impossible—to renege on it without financial repercussions.

Consider the cautionary tale of Hayley Paige, a bridal gown designer who signed a contract with JLM Couture to create a namesake line of wedding dresses. When Paige tried to negotiate a new contract, she found herself trapped by the terms of the original contract, which did not even allow her to use her name in business or post on her social media accounts without JLM Couture’s permission. She says she regrets signing that first contract and, as a young and inexperienced designer, feels that she was taken advantage of by a big corporation. ^[3]

An attorney should always review licensing agreements before you sign them. Cancellation provisions can be added to an agreement that stipulate the circumstances under which a licensing party is within their rights to cancel or modify the agreement.

How Much Are My Name, Image, and Likeness Worth?

All of this begs the question of how much a person’s name, image, and likeness are worth in monetary terms. This consideration will come into play if someone sues over a breach of their right of publicity. It can also be a factor in estate planning if the right of publicity survives beyond the death of the person with celebrity status under state law.

Valuing a personal brand is much like valuing a business. It mostly comes down to calculating future revenue potential. Projecting income, though, is not always straightforward for a business or an individual. The value of a personal brand may change, and the change is often unpredictable.

Celebrity cachet is based on consumer sentiment, and the public is notoriously fickle. A celebrity who has a successful run may fall off the cultural radar a year or two later. Often, an income approach that uses net present value is combined with a market approach that looks at other public figures of comparable status. ^[4]

Know Your Rights. Protect Your Brand.

The internet has broadened the celebrity sphere. Today’s online influencers can garner a fan base that used to be reserved for famous movie stars, musicians, and athletes. Specialty niches abound, providing a YouTube streamer or an Instagram model the opportunity to build their personal brand into a personal empire, complete with endorsement deals.

Fame and money have a way of attracting bad actors. To protect your right to you—and preserve the value of your personal brand—you must understand what is and is not permitted. Working with an experienced attorney can help ensure that others do not take advantage of your hard work and talent.

Schedule a consultation to learn more about how we can take steps to protect your rights.

Call us at (248) 562-6423

Or Schedule your appointment at: www.calendy.com/macklaw - Initial Consultation Link

[1] Right of Publicity: The Complexity of Valuing a Celebrity’s Name, Image, and Likeness, Stout (Feb. 21, 2022), https://www.stout.com/en/insights/article/right-publicity-complexity-valuing-celebritys-name-image-likeness.

[2] John R. Vile, Right of Publicity, First Amend. Encyc. (Aug. 2017), https://www.mtsu.edu/first-amendment/article/1011/right-of-publicity#.

[3] Rachel Torgerson, A Fashion Girl’s Dream Job—and the Nightmare That Killed It, Cosmopolitan (Mar. 16, 2022), https://www.cosmopolitan.com/style-beauty/fashion/a38920222/wedding-dress-designer-hayley-paige-legal-saga-jlm-couture/.

[4] Name, Image, and Likeness, Appraisal Econ., https://www.appraisaleconomics.com/range-of-services/name-image-and-likeness/ (last visited Jan. 28, 2023).

Let’s Talk About Joint Ownership of Assets – What’s Mine is Yours

nosylawyer@gmail.com (Nosy Lawyer) — Tue, 31 Jan 2023 18:16:05 GMT

As individuals grow older, they often rely on those around them for transportation, assistance with paying bills, and overall management of their affairs. One strategy employed to assist with financial affairs is to add children to bank accounts as joint holders. They are often surprised to learn that there are some significant drawbacks to this strategy.

Here are five:

1. What’s Mine is Yours

Adding someone as a joint owner of a bank account means that they also owns 100% of the assets in that account. Meaning, he or she can take all or part of the assets in the accounts -- with or without permission.

2. What’s Mine May Also Be Your Spouse’s in a Divorce

If a joint holder of an account ends up in divorce court, the assets in that account may be subject to division with an ex-spouse.

3. What’s Mine May Be Your Creditors’

Creditors of joint holders can access funds in an account to satisfy debts.

4. What’s Mine May Unintentionally Harm You

Assets in joint accounts may be considered as assets of the parents of students applying for school financial aid, thus impacting that student’s eligibility for assistance.

5. What’s Mine is Not Necessarily Theirs

It is often the case that parents will add one child to an account to assist with financial affairs, with the expectation that at death that child will share the proceeds equally with other family members. There is, however, no legal requirement that they do so. In fact, that child may legally pocket the entire amount without any recourse.

There are better alternatives to joint accounts that enable older individuals to have their affairs managed without these sorts of risks. Come talk to me about it. I’d love to share with you.

- The Nosy Lawyer

#Mindingyourbusiness #Mindingyourlegacy

Protecting Your Children with An Emergency Plan

nosylawyer@gmail.com (Nosy Lawyer) — Fri, 06 Jan 2023 21:52:09 GMT

I recently read the tragic story of a father who was in a deadly car crash, leaving behind five children aged four months to 10 years of age. The children’s mother died just the year before. These poor children were orphaned and likely taken into protective custody, with the prospect of being divided between strangers. Tragically it happens every day, but it is entirely avoidable.

It is precisely this situation that prompted the Mack Law Group to implement the Nosy Lawyer Child Emergency Plan™ for our clients.

How it works:

1. Parents choose the individuals who should raise their children in the event of an accident.

2. We assist parents with legally documenting their choice of family members or friends (in preferential order) who will serve as longterm guardians for their children.

3. If the long-term guardians are another state, or unable to arrive immediately, we will legally document a choice for family or friends who can take temporary possession, with the goal that children should never be taken into protective custody with strangers.

4. We create emergency cards containing contact information of designated family members and/or friends, along with copies of scanned guardianship documents. These choices enable the children immediately go to those of the parents’ choosing.

5. Finally, at the client’s election, we hold a virtual family meeting to discuss the plan with the guardians.

Call us today for details on the Nosy Lawyer Child Emergency Plan™.

How Cryptocurrency and NFTs Fit into Your Estate Plan

nosylawyer@gmail.com (Nosy Lawyer) — Fri, 14 Oct 2022 20:13:38 GMT

Five years ago, cryptocurrency was probably not on your radar. Today, it may be an important investment in your portfolio. You could even own some nonfungible tokens (NFTs), which are powered by the same blockchain-based technology. Despite the dizzying fluctuations in the value of these assets, you should ensure that they are included in your estate plan so you can preserve them for your heirs.

Preserving Cryptocurrency: Now and Later

Cryptocurrency, which is digital money, is exhibiting stability as part of the global financial landscape, even though the value of individual coins (units of cryptocurrency) has been notoriously volatile. The overall market hit $3 trillion in value in 2021, only to lose $2 trillion in value so far in 2022. Emerging from the ashes of the 2008 financial disaster, cryptocurrency is likely to retain its status as an investment option because its holders enjoy freedom from government and bank control.

This advantage can become a drawback when it comes to preserving cryptocurrency. Before you consider including cryptocurrency in an estate plan, it is imperative that you hang on to your digital cash on a day-to-day basis. This involves preserving the passwords and digital wallets (storage units) connected to your cryptocurrency. This will avoid a disastrous situation like the one that befell a Welsh man who accidentally threw away half a billion dollars’ worth of Bitcoin. Consider the following options to preserve your cryptocurrency:

Hot wallet: An online app that provides convenience but is vulnerable to being hacked or stolen
Cold wallet: An offline storage device that avoids hacking but is a small item and easily misplaced
Custodial wallet: A third-party crypto exchange that holds your coins, avoiding the risk of losing the device, although the company could freeze your funds or be the target of a cyber attack
Paper wallet: A printed list of keys and QR codes that is safe from hackers but easily misplaced

Tax Consequences to Consider

Another important consideration is that the Internal Revenue Service (IRS) considers cryptocurrency to be property rather than currency. That means it is subject to capital gains tax. Whether the owner holds it for longer than twelve months determines whether the IRS will assess short-term or long-term capital gains tax. Exchanging cryptocurrency for fiat currency (a country’s official money) is a taxable event, as is exchanging one kind of cryptocurrency for another (e.g., exchanging Bitcoin for Ether). If you are in the business of selling or creating cryptocurrency (called “mining”), ordinary income tax rates will apply.

What about NFTs?

NFTs are unique digital collectible items. They are based on the concept “I own this.” It does not matter what “this” is, just that it is valuable or may gain value someday. That is why various digital collectible assets, such as the following, can be characterized as NFTs:

Digital artwork
Video clips
Social media posts
Memes
Gaming tokens
Digital real estate

While being the owner of the virtual Pyramid of Giza may seem silly today, who knows how much it will be worth tomorrow? This makes a little more sense when we think about emerging technologies like virtual reality, augmented reality, and metaverses. While the NFT market seems to have collapsed recently, you never know when it will bounce back or if something similar will take its place.

How Crypto and NFTs Fit into Your Estate Plan

Talk to an estate planning attorney about cryptocurrency and NFTs, even if you have not yet purchased your first Dogecoin or CryptoKitty. They can help you keep taxable events to a minimum and preserve your digital assets as part of your overall estate plan while maintaining your privacy.

If you need assistance with your estate plan, or just have question, give us a at the Mack Law Group a call (248) 562-6423. We are your Bloomfield Hills, Michigan based award winning estate planning attorney.

Planning for Your Digital Legacy

nosylawyer@gmail.com (Nosy Lawyer) — Thu, 06 Oct 2022 20:10:29 GMT

An estate plan often focuses on tangible property such as jewelry, artwork, money, and vehicles. However, in this age of technology, it is important to remember to include your digital assets. Digital assets consist of everything we own online. Because we spend more time on computers and smartphones than we ever did before, you may not realize how much digital stuff you own, from photos and videos to online accounts, cryptocurrency, and nonfungible tokens (NFTs).

Why Is It Important to Plan for Digital Assets?

Planning for digital assets is important for several reasons. First, without a plan, digital assets may get lost in the Internet ether and not pass to your loved ones after your death due to the simple fact that their existence is unknown. Second, planning now means your family will not have to worry about hunting for these items upon your death while also grieving a beloved family member. Third, like most adults (roughly 70 percent of them), you want certain aspects of your digital life to remain private. If you do not create a plan, your loved ones may learn things that you wish to keep secret. Finally, planning now can minimize the risk of identity theft, which happens to 2.4 million deceased Americans each year. Keep reading to learn more about why it is important to include digital assets in your estate plan and how to account for them.

Digital Assets: What Are They?

Instead of existing in photo albums and on videotapes and DVDs, most of our family photos and videos are now digital. Even if they lack commercial value, they certainly have sentimental value that you want to preserve for your family and friends. Social media accounts containing your photos and videos can also have value to your loved ones when you are gone. For example, a Facebook account can serve as a memorial after you pass away. When you consider all of the other accounts that you log into (more than 130 on average), the list becomes quite lengthy.

Digital assets that you may own include the following:

Social media accounts (e.g., Facebook, Twitter, LinkedIn)
Financial accounts at brick-and-mortar and online institutions
Business documents and other files stored in the cloud
Cryptocurrency
NFTs
Databases
Device backups
Internet domain names and uniform resource locators (URLs)
Streaming service accounts (e.g., Netflix, Peacock, Hulu)
Merchant accounts (e.g., Amazon, Etsy, eBay)
Gaming tokens
Virtual avatars
Points-based loyalty programs (e.g., for groceries, gas stations, airlines, and hotels)
Rights to intellectual property, artwork, and literature
Online betting accounts
Monetized video content

Including Digital Assets in Your Estate Plan

Taking inventory of your digital assets may take some time, but it is worthwhile. If something were to happen to you, your estate planning attorney or another trusted person should have complete access to your online footprint. This includes usernames and passwords for all accounts. Tools such as Dashlane or the password manager integrated in your browser can be used to simplify the storage of usernames and passwords.

In addition, you should continuously back up all digital assets, including photos and important documents, to the cloud, and ensure that your attorney and trusted person can easily access them when the time comes.

Because they are not controlled by governments or banks, cybercurrency and NFTs must be handled carefully. You do not have the option of calling customer service to reset your password if you forget or lose it. NFT and cryptocurrency passwords should be stored online in a “hot wallet,” or in an offline device known as a “cold wallet.” Either way, someone needs to know how to access your passwords when you cannot.

Other estate planning considerations for digital assets include the following:

Your estate plan can provide that your digital possessions be handled by one or more cyber successors who can distribute your digital assets like tangible property.
One cyber successor can control your Instagram account, for example, while another can take possession of your Bitcoin.
Keep in mind that passwords should not be memorialized in your will, especially regarding cryptocurrency, as they could be made public if the will is submitted to probate court.
Consider how technologically savvy a person is before appointing that person as your cyber successor.

Next Steps for Your Digital Assets

Talk to your estate planning attorney about your digital assets and cyber successors. Have a conversation with potential cyber successors about how they would handle your assets, and make sure that they would carry out your wishes before appointing them. Digital assets can be placed into a trust or distributed through your will, or you could grant access to them through a power of attorney. With the help of an experienced estate planning attorney, you can feel relieved that your digital assets will be easily located, managed, and passed to your loved ones.

If you have questions about how digital assets fit into your estate plan, call The Mack Law Group, your Bloomfield Hills, Michigan based, award winning law firm. Our contact number is (248) 562-6423.

Legal Considerations for Email Marketing

nosylawyer@gmail.com (Nosy Lawyer) — Tue, 27 Sep 2022 15:33:55 GMT

Small businesses have more ways than ever to reach their audience. Social media, websites and blogs, video campaigns, webinars, and podcasts are just a few of the marketing strategies that you may leverage to drive sales. And while it is good to experiment with new ways of communicating your message, you should not overlook tried-and-true strategies like email marketing.

Email marketing is one of the more affordable marketing channels and has an impressive return on investment (ROI). Before you implement an email marketing strategy, however, your business should be aware of privacy and anti-spam laws that apply to direct-to-inbox communications. A well-thought-out email campaign can keep you top of mind with your audience, but a campaign that does not respect privacy rights can do more harm than good.

Email Marketing Stats to Know

The key to a successful marketing campaign is visibility. Your message is not going to get through if it is never received in the first place. Email has been around for decades and remains a part of people’s daily lives. According to a 2019 email usage study by Adobe, Americans spend an average of five hours per day checking emails.1

Despite the enduring popularity of email, not all marketers use it to their advantage. A HubSpot survey found that email marketing is used by about 50 percent of marketers, with more than 20 percent saying they plan to leverage email for the first time in 2022.2

Email marketing ROI is thirty-six dollars for every one dollar spent. That is a better ROI than organic searching and the third highest ROI of any marketing channel, trailing only paid and organic social media content. Over the last twelve months, more than three-quarters of marketers have seen an increase in email engagement, and 37 percent of brands plan on raising their email budget this year.3

Email Marketing and Privacy Laws

Effective email marketing is not as simple as sending out electronic missives on a regular basis. Strategies like market segmentation, strategic email copy that is targeted to your audience, and email A/B testing can help to increase open rates, click-through rates, and ROI.

But there is more to email marketing than understanding your audience. You must also understand the legal requirements for email marketing. Marketing emails sent to US recipients are subject to the CAN-SPAM Act, a law implemented in 2003 and updated in 2008. Violations of this law can subject businesses to fines of up to $46,517 per each separate email in violation, making noncompliance potentially costly.

To ensure that your marketing emails comply with the law, follow these CAN-SPAM requirements4:

No false or misleading headers. Your domain name and email address must accurately identify your name (or the name of your business) in the “From,” “To,” and “Reply-To” fields.
No deceptive subject lines. Honesty is the best policy in email marketing. The subject line of your email needs to reflect what is in the message. For example, if you are advertising a new product, do not make the subject line about a free gift card.
Identify your email as an advertisement. You have considerable flexibility in how you identify your message as an ad but ensure that the disclosure is clear and conspicuous.
Identify your location. Include a valid physical postal address for yourself or your business in all marketing emails.
Provide a way to opt out. Explain somewhere in your message how recipients can opt out of future emails. The Federal Trade Commission (FTC) says that your opt-out notice must be “easy for an ordinary person to recognize, read, and understand.”
Promptly honor opt out-requests. If you receive an opt-out request from an email recipient, you have ten days to comply. Once you receive a request, you are prohibited from selling or transferring the recipient’s email address to another party, including in mailing list form. To make compliance easier, most email marketing platforms automatically remove individuals who opt out from your lists.
Stay on top of marketing firm activities. Your legal responsibilities under the CAN-SPAM Act do not disappear if you contract with a marketing company to do your email marketing and they break the law.

Email Marketing Compliance and Your Privacy Policy

Other countries have requirements similar to those in the CAN-SPAM Act. For instance, Canada’s Anti-Spam Legislation (CASL) requires marketers to obtain consent (express or implied) prior to sending commercial emails. Similar consent requirements are found in the United Kingdom’s Privacy and Electronic Communications Regulations (PECR). Outside of the UK, European Union member states have adopted the General Data Protection Regulation (GDPR), which has rules that apply to email and email marketing.5

A growing number of countries and US states are adopting GDPR-like data protection rules that have marketing implications. California, Colorado, Connecticut, Utah, and Virginia have enacted comprehensive consumer data protection laws that may affect your email marketing and other marketing activities. For example, the California Consumer Protection Act (CCPA) gives consumers the right to delete certain personal information—including email addresses—that companies collect. If you are covered by the CCPA, you must comply with deletion requests, disclose to consumers their right to have personal information deleted, and notify any third parties that collect data on your behalf of the deletion request. Other state data laws have similar provisions.

Considering these developments, your company should craft a privacy policy that explains what you do with subscribers’ personal data, and a link to the policy should be included in emails and on web pages. Even in locations that do not require it, a privacy policy with a section on email marketing is considered a best practice that can earn customer trust. With the national American Data Privacy and Protection Act inching closer to reality, and similar laws being passed globally, having a strong privacy policy in place now can jumpstart your data compliance strategy.

With the data privacy movement gaining momentum in the United States and worldwide, protecting consumers from spam emails and other privacy violations is crucial. In addition to helping you avoid penalties, a compliance strategy that prioritizes customer consent and preference can provide a competitive advantage. Our attorneys can ensure that your business complies with consumer privacy laws everywhere you do business. For help with your digital compliance, please contact us.

1 Michael Guta, Hey Marketers, Americans Still Spend 5 Hours a Day on Email, Small Business Trends (Apr. 16, 2021), https://smallbiztrends.com/2019/09/email-usage-statistics.html.

2 Maxwell Iskiev, The HubSpot Blog’s 2022 Content and Media Strategy Report [Data], HubSpot, https://blog.hubspot.com/marketing/content-and-media-strategy-report (last visited Sept. 16, 2022).

3 Katrina Kirsch, The Ultimate List of Email Marketing Stats for 2022, HubSpot, https://blog.hubspot.com/marketing/email-marketing-stats (last visited Sept. 16, 2022).

4 CAN-SPAM Act: A Compliance Guide for Business, Fed. Trade Comm’n, https://www.ftc.gov/business-guidance/resources/can-spam-act-compliance-guide-business (last visited Sept. 16, 2022).

5 Ben Wolford, How Does the GDPR Affect Email?, GDPR.eu, https://gdpr.eu/email-encryption/ (last visited Sept. 19, 2022).

Let’s Talk About Judy – The Single Mom

nosylawyer@gmail.com (Nosy Lawyer) — Mon, 08 Aug 2022 16:02:17 GMT

Let’s talk about Judy.

Judy is a 40-year-old single mom with a 12-year-old son, George.

The case of Judy came to my mind when I was thinking about how I can encourage people of modest income and assets to create an estate plan. Most people are convinced that they lack enough assets for formal estate planning, and I hear it all the time. However, nothing could be further from the truth. Yet the myth persists. The truth of the matter is that formal estate planning is necessary, especially for single parents with minor children.

Let’s have a look at Judy’s case. She earns $60,000 in annual salary, has a life insurance policy through her employer valued at $100,000, and owns a condo with a market value of $100,000. The condo has a mortgage with a remaining balance of $60,000, which most people would agree that it is a relatively modest estate.

What do you think Judy wants the most for George in case of her incapacity or premature death? That’s easy – She will want George to be with someone she trusts and that he has enough assets to live to maturity.

We designed an estate plan for Judy with one goal in mind – George’s well-being. The plan is as follows:

If Judy becomes incapacitated, a trusted person immediately steps into her shoes and is authorized to pay her bills and take care of George’s financial needs with the Financial Power of Attorney. The temporary guardianship allows the trusted person to take care of George and keep him safe. This is done without court intervention. A person of Judy’s choice can make necessary decisions about her health care, including difficult decisions. This is all done in an orderly manner without any court battles or fighting among relatives.
In the event of Judy’s untimely death, the created Trust will provide an orderly transition of the $100,000 in proceeds from her life insurance and hold the $40,000 in equity from the sale of Judy’s home. The Trustee will pay Judy’s taxes, funeral expenses, and other debts, and hold the balance in Trust for George. The remaining $120,000 assets in Trust assets will be held and paid out by the Trustee as indicated for George’s health, maintenance, education, and support. In addition, the Will provides for a trusted person to be George’s Guardian. Again, everything is done in an orderly manner. No court battles, no probate oversight, and no fighting among relatives.

So, how does Judy feel after the plan? She is empowered and has peace of mind knowing that she has not left George to chance, custody battles, or in poverty. George will have enough resources to be well provided and cared for. No probate or court battles. Just peace.

In the next edition of Musings of a Nosy Lawyer, I’ll tell you what happens if Judy fails to prepare.

If you would like us to design similar a plan for you, give us a call. Our initial consultation is free.

The Nosy Lawyer

Minding Your Legacy

PRESS RELEASE: Top 100 National Black Lawyers

Fri, 04 Mar 2022 00:53:34 GMT

Meet One of Michigan’s Newest Top 100 National Black Lawyers

Pamela Denise Mack is the latest inductee into the National Black Lawyers Top 100

Location, Date : As of 2022, attorney Pamela Denise Mack, founder of Southern Michigan based law firm The Mack Law Group, was honored as one of this year’s selected candidates to the National Black Lawyers Top 100. All lawyers are nominated by a peer and, upon nomination, go through a rigorous vetting process. The group considers a nominee’s reputation, notable achievements, settlements, verdicts as specialized lawyers, among other criteria. Pamela Denise Mack specializes in the law practice of corporate and commercial transactions, legacy planning, data privacy, and intellectual property. Pamela Denise Mack’s dedication to creating a practice where clients can trust they’re working with professionals who have their best interest in mind while also receiving top-of-the-line legal advice and business strategies is just one of the many reasons why Pamela Denise Mack has earned this prestigious award. This award places Pamela Denise Mack in the Top 100 Black Lawyers in the Southern Michigan area.

This distinction comes as a result of Pamela Denise Mack’s years of hard work providing fair and unparalleled legal counsel to her clients. Pamela Denise Mack began her long career in law after earning her Juris Doctor at Wayne State University. From then on, Ms. Mack set about putting her legal skills to work as a corporate advisor. Prior to opening her own Law Firm, Pamela Denise Mack spent over two decades working as an in-house corporate and real estate counsel. As a corporate counsel to a Fortune 100 Corporation, she oversaw leasehold matters for its over $600 million in real estate assets. She then went on to serve as in-house Corporate Counsel for the world’s largest inventory services corporation with operations in over 40 countries, with 20,000 employees worldwide. There, she was responsible for overseeing corporate contracting (including IT and vendor agreement negotiations), global data privacy, and FCPA compliance functions.

Working with Fortune 100 corporations, she was trusted to oversee nearly $200 million worth of vendor and service agreements for the company, which now allows her to apply this expertise to her own clients. With years of big corporate experience under her belt, Pamela Denise Mack employs her wealth of knowledge to provide new and established businesses with unparalleled business advice and general legal counsel. Furthermore, Pamela Denise Mack is also a graduate of the Goldman Sachs 10,000 Small Business program, and the SBA Emerging Leaders program.

Pamela is an author with published books Retirement Start Up Kit and a children’s book titled My Name is Judah.

About the legal award, The National Black Lawyers is an invitation-only professional development and networking association built for and with the top African American attorneys across the country. The association boasts their mission to “create and celebrate legal excellence by promoting our attorneys as subject-matter experts, developing a strong national network of top African American attorneys, and facilitating the exchange of timely information to enable our members to maintain their status as leaders”. Members of The National Black Lawyers Association are some of the most well-known practicing lawyers across the country. The NBL recognizes and promotes the present contributions of African American lawyers and connects lawyers, locally and nationally, to share their knowledge with other members and the larger legal community. Pamela Denise Mack was selected to join a board of legal leaders who excel as some of the most successful and influential lawyers with reputations that precede them.

Pamela Denise Mack excels over her peers due in large part to her focus on providing legal counsel to her community. She minds the business and legacies of corporations, business owners, and families with a focus on exceptional quality and personalized information. Her focus isn’t just to serve a client but to make sure her clients are set up for success and will thrive for years to come. Pamela Denise Mack enacts this through her main focus of providing clients with exceptional representation and proactive service at all stages of business growth, and development through business succession. Whether you are a rising entrepreneur, an established high-valued corporate head, or just making plans for the future, The Mack Law Group, PLC is committed to handling your legal matters with individualized care and attention. Those interested in utilizing the services provided by founder attorney Pamela Denise Mack can book a consultation or phone call through The Mack Law Group website.

Happy New Year!

nosylawyer@gmail.com (Nosy Lawyer) — Fri, 11 Feb 2022 00:51:48 GMT

Happy New Year! Greetings from The Mack Law Group. It has been truly a pleasure to work with you in 2021. I am so grateful that I was able to assist you with the very important step of preserving a legacy for your loved ones by completing an estate plan for you.

I wanted to take this opportunity to thank you for being our valued client. I encourage you to think of the new year as an opportunity to take the following steps to make things easier for you and your loved ones:

Advise us of any life events that may impact your estate plan:

There are so many life events that could potentially have an impact on your estate plan. Some of these life events include: death of a family member, the starting of a business, a divorce, a separation, a birth, a change in health status, or the death of an agent selected as your power of attorney, trustee, or health care designee. Did you purchase or sell a home? These are just a few examples. Please give us a call to discuss any major life event so that we may review your plan for modification.

Fund your trust:

If we created a trust for you, now is a good time to revisit funding your trust. You may recall that I told you that creating a trust and not funding it is like building a beautiful home and not putting any furniture in it. You cannot live in it, and it is not serving the purpose for which it has been built. Likewise, having a trust and not funding it is means that it is not fulfilling the purpose for which it has been established, since any assets not transferred into your trust during your lifetime are typically required to go through the probate court. If you have done your initial funding, great! We applaud you. If not, there’s still time. Now is the time to consider the status of your assets, including new ones that you may have accumulated in 2021. We are happy to assist with funding your trust. Just give us a call.

Please talk with your family:

The best way to minimize disappointment and disputes after your death is to let everyone know what to expect in advance. Be prepared to discuss those issues with your loved ones. You may even make changes to your estate plan based on those conversations — we will be happy to have follow-up discussions, as needed. There is no legal requirement that you either share or withhold copies of your documents, but there are good practical reasons to let loved ones in on the plans. If you are unsure of what that do, we can provide advice and counsel on these issues.

Coordinate your beneficiary designations:

It is very important to check your beneficiary designations. It is often the case that clients believe their Last Will and Testament will supersede their beneficiary designations. This is often not the case. Proceeds from life insurance polices, retirement plans, etc. will go directly to the designated beneficiaries, thus bypassing your will or trust. Your beneficiary designations should align to your overall estate plan. We are happy to review your designations with you, as needed.

Do not tinker with beneficiary designations, documents, or titles.

If someone at your bank says you should make all your accounts into “Payable on Death” (POD) accounts please talk with us first. If we have helped you name a trust as beneficiary on your IRA and your accountant tells you that it was a mistake, please talk to us before you change it back. We strongly recommend that you not put your child’s name on your house or your bank account, “just in case”. We prepared your documents with you and your estate planning goals mind. Your change may undue the value and effect of the documents we prepared for you.

Prepare a list of assets and directions.

It really helps if you have left an asset roadmap for the person who handles your estate. You know where your life insurance policy is located, but the person handling your estate might not. Whoever that person might be will spend countless hours looking for that kind of valuable information if you do not provide a roadmap for him or her. Having that roadmap will make that person’s job much less stressful. We are here to assist you.

May 2022 be a peaceful, healthful, and prosperous year for you and your loved ones. Please let us know how we may be best serve you this year.

Warm Personal Regards,

THE MACK LAW GROUP - A PROFESSIONAL LEGAL CORPORATION

Pamela-Denise Mack
Pamela-Denise Mack, Principal Attorney

In Re Estate of Prince Rogers Nelson

nosylawyer@gmail.com (Nosy Lawyer) — Tue, 01 Sep 2020 23:46:29 GMT

In Re Estate of Prince Rogers Nelson

The Perils of Not Having an Estate Plan.

It is difficult to believe that it has been over four years since the death of the iconic entertainer Prince. It is even harder to believe that legal and administrative fees now exceed $45 million, and his six heirs have so far received nothing. A recent visit to the Minnesota Judicial Branch website, which lists the publicly available probate court documents, revealed a shocking 109 pages of pleadings filed in connection with Prince’s estate. The six heirs to his estate are claiming their portion of the estimated $300 million in estate assets. Four years later the fight is not over, not by a long shot.

As the saying goes, there is nothing new under the sun. No, there are plenty of other famous people who have died without a will or an estate plan, leaving a significant portion of their wealth to the lawyers, accountants and consultants. The list of celebrities is long and includes Aretha Franklin, Bob Marley, Barry White, Jimi Hendrix, Marvin Gaye, Tupac, Kurt Cobain, Howard Hughes, Pablo Picasso, and Amy Winehouse. In the case of the estates of John Singleton, James Brown, and Michael Jackson, these individuals had wills that were either poorly drafted, or not updated, causing unnecessary disputes.

It is not just famous people who die, leaving bickering heirs to battle it out through their attorneys. For most Americans, the risk of leaving their estates to lawyer fees with little for heirs after a legal battle is quite real. According to a 2019 Cares.com study of over 2,700 Americans, nearly 65% of them have no will. The reasons were varied. While most understand the importance of having a will, a significant percentage felt it was too expensive, or lacked the knowledge on how to secure one. The good news is establishing an estate plan in place is not nearly as difficult or expensive as you may think.

There are four key documents that are essential for any estate plan: A will, a trust, an advance care directive, and a power of attorney. We want to educate you on each of these essential documents. We are here to help. Allow us to demystify the process for you with our step by step approach to getting your estate plan done.

Let’s talk. Schedule a free 30-minute consultation with one of our estate planning lawyers today. (248) 229-0185

The Nosy Lawyer

Minding Your Business, Minding Your Legacy

Look Before You Use that Logo

nosylawyer@gmail.com (Nosy Lawyer) — Thu, 06 Aug 2020 23:48:57 GMT

Look Before You Use that Logo

Ask First, Use Later

I recently visited the newly designed business website of a friend and colleague. It was beautifully done, visually appealing and had all the right calls to action to invite visitors to engage. I noted all of the impressive clients whose logos were featured prominently across the page. I wondered if she had secured permission from her customers to use their logos.

I have reviewed thousands of contracts with some of the world’s largest companies and almost all of them have a clause with language similar to the following:

“Supplier shall not use Company’s name, trademarks, services marks, logos, any description that would reveal Company’s identity or other forms of identification, whether registered or not (“Company Identification”), in any way, including, but not limited to, any advertisements, press releases, announcements, customer lists (including customer lists on any website) or materials of a public or promotional nature or in soliciting other clients. Further, Company shall not make any direct or indirect public reference to this Agreement or any other contract between Supplier and Company without first obtaining Company’s written permission which may be withheld in Company’s sole discretion. In addition, Supplier agrees that it shall not negatively reference or disparage Company.”
Companies invest significant time and resources into building and maintaining their brands and will take extraordinary steps to ensure they are protected. Here is an example of Impossible’s (of The Impossible Burger) statement of restriction on use of their trademark:

“Impossible is a trademark of Impossible Foods Inc. (“Impossible Foods”).

We love the passion and enthusiasm for Impossible Foods and our products, but we must be mindful of our brand identity, our reputation, and the goodwill developed under our trademarks, logos and other assets. That means we must ensure these assets are used only with our permission. For example, only Impossible Foods (and its affiliated companies) and its authorized licensees may use the Impossible logo in advertising, promotional and sales materials. Licensees may use Impossible Foods assets only as specified in their agreement with Impossible Foods or pursuant to applicable guidelines. If you have any questions, or if you see our trademarks being misused, please contact us at legal@impossiblefoods.com.”

If you are considering the use of a customer’s logo in a client list or in your marketing materials, we recommend that you first review your agreements to see if there is a prohibition against use. If not, we recommend that you first seek written permission.

Call us today regarding your logo or your agreements. (248) 229-0185

THE NOSY LAWYER - MINDING YOUR BUSINESS

The Nosy Lawyer

CTA Imposes New Small Business Reporting Requirements for 2024 Small business owners will have one more item on their compliance to-do list when the Corporate Transparency Act (CTA) takes effect next

Why was the CTA passed?

What does the CTA require?

Does the CTA require my business to report?

What information must be provided in the reports?

Who has access to FinCEN BOI reports?

Are there penalties for noncompliance with the CTA?

Get help with CTA reporting requirements.

How Effective Estate Planning Can Avoid Detrimental Disputes In The Hospital

Pre-Death Planning

The Sole Proprietorship: Pros and Cons

The Shift to Self-Employment

Self-Employment and Sole Proprietorship

Benefits of a Sole Proprietorship

Drawbacks of a Sole Proprietorship

Sole Proprietors Don’t Have to Go It Alone. We Can Help.

Unlocking Financial Security: A Comprehensive Guide to Trust Funding

What Is Trust Funding?

Types of Trusts:

Steps to Fund a Trust:

Conclusion:

﻿

Uncommon Sense with Jill Gleba Podcast

Estate Planning for Single Mothers: Providing for College Education Expenses

The Significance of College Education Planning

﻿

1. Financial Security for Your Child:

2. Legacy Preservation:

3. Tax Efficiency:

4. Peace of Mind:

Estate Planning Strategies for Single Mothers

1. Will and Testament:

2. Trusts:

3. Life Insurance:

4. 529 College Savings Plan:

5. Guardianship Designation:

6. Health Care Proxy and Power of Attorney:

The Role of The Mack Law Group

1. Customized Estate Plans:

2. Trust and Investment Strategies:

3. Life Insurance Planning:

4. Tax Efficiency:

5. Guardianship Designation:

6. Legacy Planning:

Common Pitfalls to Avoid

1. Procrastination:

2. Neglecting Proper Guardianship Designation:

3. Inadequate Financial Planning:

4. Lack of Professional Guidance:

Conclusion

Can Do Attitude - The Kindling Project podcast

Can Do Attitude - The Kindling Project podcast

Estate Planning Strategies for Single Mothers: Ensuring Financial Security

Create a Comprehensive Estate Plan:

Designate a Guardian for Your Children:

Establish a Trust:

Review and Update Beneficiary Designations:

Plan for Long-Term Care:

How Mack Law Group Can Help:

Personalized Estate Planning:

Guardian Designation Assistance:

Trust Creation and Management:

Long-Term Care Planning:

Probate vs. Non-Probate Assets: What Single Mothers Need to Know

Probate vs. Non-Probate Assets: What Single Mothers Need to Know

Probate Assets

Non-Probate Assets

How Mack Law Group Can Help

Common Mistakes in Probate Avoidance in Wayne, Oakland, and McCain Michigan

Common Mistakes in Probate Avoidance in Wayne, Oakland, and McCain Michigan

Mistake #1: Failing to Plan Properly

Mistake #2: Improper Use of Joint Tenancy

Mistake #3: Failure to Update Beneficiary Designations

How the Mack Law Group Can Help

The Top 10 Estate Planning Mistakes To Avoid For Mothers by The Mack Law Group

The Top 10 Estate Planning Mistakes To Avoid For Mothers by The Mack Law Group

1. Not having a Will

2. Not having an Enduring Power of Attorney

3. Not having an Advanced Health Care Directive