Month: October 2011

What is a Michigan Registered Agent?

October 30, 2011 /

As a Grand Rapids, MI business lawyer, this is a question I’ve been asked quite a bit.  Due to the large number of corporations and limited liability companies (LLCs) formed in Michigan every year, it is important to know the requirements of a registered agent.  Why?  Because whether you form a Michigan corporation or a Michigan LLC, you are required to appoint a registered agent.  The law for requiring one for Michigan corporations is here, and the law for requiring one for Michigan limited liability companies is here.

A registered agent can be an individual Michigan resident, or a domestic or foreign corporation (or LLC) authorized to transact business in Michigan.  The registered agent of a Michigan corporation or LLC (I’ll refer to it as the “Company”) is the Company’s agent for the purpose of service of process.  Service of process is the procedure used to give legal notice to the Company of a court or administrative proceeding against it.  In other words, it’s how a Company is notified that it is being sued or that someone is bringing an administrative action against it.

Of course, to “serve process” on a Company, the Company is also required to have a registered office.  Both the name of the registered agent and the street address (and mailing address if different than the street address) of the registered office must be included in the Articles of Organization (if the Company is a LLC) or Articles of Incorporation (if the Company is a Corporation).

Michael Lichterman is a relationship-based business attorney who leverages his business, marketing and legal knowledge to help business owners and entrepreneurs create a Foundation for Business Success™.  This goes beyond merely drafting a set of documents – it’s about  proactively preparing the business and the business owner for continued growth while remembering the “human side” of running a business.  He best serves small business owners (less than 50 employees) and entrepreneurs.  He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients  and their businesses – many of which have become great friends.

Beware the Double Tragedy in Estate Planning

October 23, 2011 /

Last week was National Estate Planning Awareness Week.  An entire week dedicated to raising awareness of the critical importance of estate planning.  It is estimated that over 120 million Americans do not have up to date estate plans.  And according to a recent study, 70% of respondents said that Americans fail to plan because they lack awareness as to why they should.  Even worse, 62% of respondents to the same survey believed that many Americans do not plan because they have the erroneous assumption that estate planning is only for the wealthy.  It certainly is not – read my blog post on the topic here.

So what does that have to do with the double tragedy I refer to in the title?  Even a better question is, what is the double tragedy?  It is this: a dear family member or friend passing away (or you passing away) and a complete lack of an estate plan or a poorly drafted estate plan.  I call it the double tragedy because your family will be dealing with the loss of someone they loved dearly, so why add to their frustration, grief and hardship by leaving them with a mess with your estate due to lack of planning or a “cheapo” estate plan.

Sure, sometimes things go smoothly, but that certainly is not the case in many circumstances.  Why take the chance?  Take the time and money to work with an attorney who focuses on estate planning to help create a comprehensive plan that will show your family how much you cared . . . even after you are no longer here for them.

Michael Lichterman is an estate planning and business planning attorney who helps families and business owners create a lasting legacy by planning for their Whole Family Wealth™.  This goes beyond merely planning for finances – it’s about who your are and what’s important to you.  He focuses on estate and asset protection planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, family owned businesses and pet planning.  He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients – many of which have become great friends.

Did Steve Jobs Have an Estate Plan?

October 16, 2011 /

As someone who uses and iPhone® and an iPad® in my law practice and in my personal life, I’m grateful to Steve Jobs for his foresight, innovation, and refusal to let earlier failures and setbacks stop him from doing what he loved.  I am saddened by his recent passing and hope to see another innovator of his type sometime in my lifetime.

As a Michigan estate planning attorney, I take a keen interest in the estate planning people have done (or not done) . . . and celebrities are no exception.  Many times the stories of celebrity estate planning mistakes or triumphs are a way to help families better understand the importance of estate planning.

So, did Steve Jobs have an estate plan?  As the famous “eight ball” would say – signs point to yes.  According to a Forbes.com article there is some evidence that Mr. Jobs had some level of a trust-based estate plan.  As the article points out, if that is the case, we may never know the extent of his planning.  Why?  Because trusts, when used properly, are completely private – unlike wills that must be filed with the probate court.  This is a benefit of a trust-based estate plan that is often overlooked.

With the caring, family man that he was, it wouldn’t surprise me if he did have a comprehensive plan meant to protect his and his family’s privacy.  What an incredible gift to them.  Avoiding what I call the “double tragedy” – the passing of someone they loved and a mess of an estate plan (or no estate plan) on top of it.

Don’t be fooled into thinking that Mr. Jobs’ enormous wealth was the reason he had an estate plan.  The article points out several celebrities with ‘gobs’ of money who did not have an estate plan (or had an estate plan that was horribly inadequate for their financial and family situation).

Michael Lichterman is an estate planning and business planning attorney who helps families and business owners create a lasting legacy by planning for their Whole Family Wealth™.  This goes beyond merely planning for finances – it’s about who your are and what’s important to you.  He focuses on estate and asset protection planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, family owned businesses and pet planning.  He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients – many of which have become great friends.

Why NOT To Use Joint Accounts As Your Estate Plan

October 2, 2011 /

You may remember that I wrote about some of the downsides to jointly owning assets in this previous blog post.   Well, as with all good stories, that wasn’t the end of it and the topic continues to come up.  Forbes.com had a recent article entitled “Top 5 Reasons to Beware of Joint Ownership Between Generations.”

Rather than reproducing the article, I will touch on the high points . . . please read the entire article.  Unlike my previous post covering a wide view of why not to use joint asset ownership as an estate plan, this article focuses on the top reasons related to joint ownership among different family generations.  I’ve heard more than one parent who shared with me that they were told to “just add your child to your bank accounts, financial accounts, and home to assist with financial issues and plan your estate.”

Here are the reasons the Forbes article gives for why that is a no substitute for proper estate planning:

  1. The assets are subject to the child’s creditors;
  2. The assets are subject to the child’s ex-spouse in cases of divorce;
  3. The assets are subject to “borrowing” by the child.  Borrowing is in quotes to signify that this is a case where the child, because he or she is equal owner on the account with mom or dad, uses the account for their own purposes – promising (or not promising) to pay it back.
  4. The child who is on the accounts with mom or dad gets all of those assets when the parents pass away.  That’s right . . . all of it!  Much to the chagrin of their siblings, other family members, and maybe even charities that mom or dad supported.
  5. Many times #4 can lead to family infighting.

Another critical factor making this a big “no no” in many situations is that by owning the assets jointly with their children, the parents are giving up control and risking complications that many would never think of happening.

As the article points out – it is better to have a comprehensive estate plan in place and to work with a Michigan attorney who focuses on estate planning.  A good estate plan allows you to keep control of your “stuff,” receive assistance when needed, avoid probate court after death, and eliminate questions about your true intentions.

Call us at 616-827-7596 to take that important first step.  The first step is always the hardest, and yet it leads to the reward of added peace of mind.

Michael Lichterman is an estate planning and business planning attorney who helps families and business owners create a lasting legacy by planning for their Whole Family Wealth™.  This goes beyond merely planning for finances – it’s about who your are and what’s important to you.  He focuses on estate and asset protection planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, family owned businesses and pet planning.  He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients – many of which have become great friends.