In 2025, each person can make a tax free gift of $19,000.00 in value per donee. Accordingly, a husband and wife could gift $38,000 to each of their children as a tax free gift in 2025. As a reminder, if you make a gift by check, the check needs to be deposited and cleared prior to the end of the year.
How to Avoid Probate Wills or Revocable Living Trusts In simplest terms, Wills require probate, whereas revocable living trusts-when properly funded- avoid the probate process. Wills can be robust documents containing tax saving and asset protection strategies. However, wills memorialize the testator's instructions for distributing assets at death only . Wills-absent the availability of a summary/small estate affidavit-require probate. Revocable living trusts, on the other hand, become effective immediately upon creation and are vehicles for the management of assets of the trust creator (also called the settlor or grantor) during his or her lifetime, including during periods of incapacity and at death. Revocable living trusts also make it easier to distribute assets without court involvement at death. A trust can avoid probate when it owns all of the decedent's assets or is otherwise the recipient of the assets upon his or her death using other probate-avoidance tools such as those discussed below. When a decedent's trust does not own all, or become the recipient of, a Grantor's assets at his or her assets at death, pour-over will is used to funnel any probate assets into the trust. Pour-over wills should be intended as a backup strategy. Learn more about Revocable Living Trusts by downloading our Free Report, "Understanding the Basics of Revocable Living Trusts in Missouri ."
Probate , also called estate administration , is the judicial process by which a decedent's assets (his or her estate ) are distributed to his or her heirs or other devisees. Probate codes and procedures can vary from state-to-state. If a decedent had a will, he or she is deemed to have died " testate ," and the will governs the distribution of his or her assets. If a decedent did not have a will, he or she died " intestate ," and the decedent's state's laws of intestacy will determine who will get his or her assets.
Yes. If you have children, you are not required to leave them any portion of your estate. A common misunderstanding is that you must leave each child at least one dollar. Today, your Will may simply state, "I have intentionally failed to provide for my son, Josh." The Kaiser Law Firm handles the following types of cases: Estate Planning: Wills & Living Trusts Real Estate Transactions Family-Owned Businesses & Farms Powers of Attorney & Living Wills IRA & Retirement Planning Asset Protection & Business Planning Special Needs Planning Trust Administration & Probate
YES. You will need to hire an attorney to assist you in the probate process if the probate estate is over $40,000. The probate estate consists of assets that a decedent owned in his or her own individual name and which do not pass by a valid beneficiary designation.
No, this is not true. Unfortunately, some business owners often believe that noncompete agreements "are not worth the paper they're written on." In Missouri, non-compete agreements can be enforced under certain conditions. For many businesses, a well-drafted non-compete agreement can be a valuable and critical legal document.
The tax treatment depends on whether you sell assets or equity, how goodwill is allocated, and whether you qualify for special provisions like IRC §1202 (Qualified Small Business Stock) . As tax attorneys, we integrate your sale strategy with your estate and wealth plan to minimize taxes now and later.
Working capital ensures the business has enough cash and inventory to operate after closing. We'll help calculate the correct target and prevent the buyer from manipulating the formula in their favor.
Missouri business sale lawyer explains how representations and warranties affect post-closing risk and how to protect yourself. These are factual statements you make about your business's condition. If any turn out to be inaccurate, the buyer can make a claim against you. We carefully review and negotiate these provisions to limit post-closing risk.
That depends on tax and liability factors. Buyers often prefer asset purchases to avoid past liabilities, while sellers typically prefer stock or membership interest sales to benefit from capital gains treatment. We'll help you evaluate both structures and negotiate terms that protect your after-tax proceeds.
Buyers expect to see: Your organizational documents (Articles, Operating Agreement, Bylaws) Financial statements and tax returns for at least 3 years Key contracts (leases, customer, vendor, and employment agreements) Intellectual property registrations and permits We'll help you organize these into a professional due diligence package.
Ideally, 12 to 24 months before you sell. Early legal planning allows time to clean up corporate records, resolve ownership or liability issues, and structure the sale for the best tax outcome. The earlier we're involved, the more leverage you have when negotiating with buyers.
In an asset sale, specific assets are sold and liabilities may be excluded. In a stock sale, the buyer purchases the entire company-including its obligations. Each has tax and legal implications. We'll help you choose the best fit.
The best time to sell depends on your personal goals, business performance, and market conditions. Ideally, you should start planning 6-24 months in advance to maximize value and minimize risk.
Missouri law permits the formation of a limited liability company (LLC) that may then establish one or more series. Missouri law provides that an individual series is not liable for the debts or obligations of any other series of the LLC.
No. A Missouri limited liability company (LLC) does not issue stock certificates. The ownership of a limited liability company is reflected in the limited liability company operating agreement.
Even if you lose your stock certificate you still own your stock. However, to replace the physical certificate, the shareholder must contact the company's stock transfer agent. Typically, the stock transfer agent will require the shareholder to sign an "Affidavit of Lost Stock Certificate" and will issue a new stock certificate to the owner.
It be may be beneficial to organize your consulting business as a limited liability company (LLC) to avoid personal liability with respect to your business. However, just like any other professional, you will be personally responsible for your negligence in your consulting services. Therefore, it is important to have errors and omissions insurance when providing consulting services.
No, this is not true. Unfortunately, some business owners often believe that noncompete agreements "are not worth the paper they're written on." In Missouri, non-compete agreements can be enforced under certain conditions. For many businesses, a well-drafted non-compete agreement can be a valuable and critical legal document.
Yes. Your Articles of Incorporation or Articles of Organization are not the same as a business license. Once your LLC or corporation is formed with the Missouri Secretary of State, your municipality may require that your businesses obtain a business license before opening a business in their city. A business license is obtained directly from the local governmental authority.
A Missouri limited liability company (LLC) is created by filing Articles of Organization with the Secretary of State of Missouri. The Articles of Organization must include: LLC's name and address Name and address of the LLC's registered agent Whether the LLC will be member-managed or manager-managed LLC's duration, if not perpetual Every Missouri LLC must have a registered agent for service of process in the state. This is the person or business entity that agrees to accept legal papers on the LLC's behalf if it is sued. The registered agent must have a physical street address in Missouri. LLC Operating Agreement In addition to filing the Articles of Organization, your business should also create a written LLC "Operating Agreement." The Operating Agreement does not need to be filed with Missouri Secretary of State's Office. However, the Operating Agreement is an important document because it explains the LLC members' rights and responsibilities, their percentage interests in the business, and their share of the profits.
It depends on the structure of the sale and your transition plan. We'll help you navigate employment law issues and structure agreements that are fair, compliant, and clear for all parties.
The structure of your sale impacts capital gains taxes, depreciation recapture, and more. We coordinate with your CPA or tax advisor to help you create the most tax-efficient exit.
Absolutely. A business sale is a major transaction with binding legal consequences. From structuring the deal to drafting contracts and minimizing post-sale liability, legal guidance protects your interests and prevents costly mistakes.
Answer: No. A will is guarnteed to go through probate. Your Executor is required to file your Will with the Probate Court within 1 year of your death. You can avoid Probate in Missouri by using a Revocable Trust.
NO! In Missouri, if you are sued, your child's college account (also known as a 529 plan) can be taken! BACKGROUND: College savings plans pursuant to Section 529 of the Internal Revenue Code ("529 Plans") can be a valuable vehicle to invest money for the higher education expenses of a child (or other beneficiary). 529 plans are designed to encourage savings for the college or post-graduate education of younger generations. Contributions to a 529 account grow income tax-deferred and distributions for specified higher education expenses are free from federal income tax. One of the many benefits of a 529 college savings plan is that the account owner will retain control over the account, including the unilateral right to take back the contributions to the account or to change the designated beneficiary to another family member at any time. In addition, the beneficiary of the account (i.e. a child or grandchild) usually does not have the right to access the money in the 529 account. Because the 529 account is an asset of the account owner, a 529 account is subject to the claims of creditors of account holders who are residents of the State of Missouri regardless of whether the 529 account is established through the State of Missouri or another state. MISSOURI RESIDENTS-CREDITORS CAN INVADE THESE ACCOUNTS ! Unlike qualified retirement plans (401(k) plans), IRA and Roth IRA's which offer certain protections pursuant to the Missouri homestead statutes, there is no protection afforded to 529 accounts from creditor claims of the account owner. Accordingly, if the account owner is faced with a judgment, the creditor has the ability to attach the 529 account to satisfy their judgment, a result which could be devastating to you and your loved ones. Federal law provides some protection for Missouri residents who are owners of 529 accounts if the account owner is in bankruptcy. Absent a bankruptcy, Missouri residents who are owners of 529 accounts (whether such accounts are MOST accounts or another states college savings plan) are exposed to losing their 529 accounts to a judgment creditor! INTRODUCING THE 529 EDUCATIONAL SAVINGS TRUST : Missouri's 529 college savings plan (MOST) (as well as most other state college savings plans) allow a trust to be the owner of a 529 college savings plan. The combination of a 529 college savings plan and a specially designed 529 Educational Trust can provide divorce and creditor protections and allow the client to retain the ability to use the funds in a financial emergency. In addition, the client can move the asset between siblings (or other family members) to meet the client's planning objectives. College savings plans are touted, often appropriately, for their tax deferral and other benefits of saving for college costs. However, it is important to sit down with your estate planning attorney to make sure that the ownership of these plans correctly carries out your planning objectives. If you are concerned about asset protection, estate taxes, control and other issues then you should consider a 529 Educational Savings Trust. Call us today at 314 966-7766 to learn more about our 529 Educational Savings Trust.
In Missouri, if you become disabled and lose the capacity to deal with your finances yourself, someone will have to establish a conservatorship over your finances. Doing so is expensive. If you have prepared a revocable trust or a durable power of attorney, a conservatorship is not needed and the person you have designated will handle your finances. Can't my spouse just take over my financial matters? Your spouse is able to manage joint accounts only. He or she cannot sign on your behalf for financial accounts under your name alone unless you have prepared a revocable trust or a durable power of attorney naming your spouse as the person who will handle your personal financial matters.
When applying for Medicaid in Missouri, the state will "look back" to see if any gifts have been made in the past five years. Missouri will not just let you give away your property or your money to qualify for Medicaid. Any gifts or transfers for less than fair market value that are made during the "5 year look back" period may cause a delay in Medicaid eligibility.
No. This is a very common misconception. There are several reasons to have a revocable trust. However, asset protection planning and nursing home protection are not reasons to have a revocable trust. Under federal Medicaid law and under most states laws, your revocable trust is considered your asset and must be "spent down" before you qualify for long term care in a nursing home. Also, because your revocable trust is your asset, it can also be reached by your creditors if you get sued. If you want to learn more about asset protection in Missouri, download a free copy of our report, 10 Questions You Should Ask About Protecting Your Assets in Missouri.
No, not unless your spouse has named you to be his/her attorney-in-fact under a Durable Power of Attorney and his/her health care agent under a Medical Directive. Absent these two documents being in place (and presented to a medical provider), you will need to go to the Probate Court and be appointed as your spouse's guardian and conservator.
A "no contest" clause states that if a beneficiary under your will or trust challenges his or her inheritance, he or she will receive nothing. Remember, however, in Missouri, you cannot disinherit your spouse.
Yes. In Missouri, a "no contest" clause is enforceable.
No. In Missouri, married persons may not completely disinherit their surviving spouse, unless the spouse agrees by executing a waiver of their rights to inherit in the form of a prenuptial agreement or other legally enforceable contract. Depending on your situation, a surviving spouse is entitled to receive up to a one-half or one-third of the deceased spouse's estate.
No. That is a very common misconception. Your Revocable Trust may avoid probate of your assets upon your death, however, your Revocable Trust in Missouri (and most states) will not protect your assets from nursing home expenses. The assets you place in your Revocable Trust are considered owned by you and must be spent down before you qualify for long-term care in a nursing home. The solution? Call our office to develop a strategy to protect your assets from long-term care expenses.
If a parent knows that their minor child has a propensity to act recklessly or carelessly when driving, then the parent is expected to take reasonable steps to prevent that child from causing foreseeable harm to others. For example, in Missouri, if a parent knows his or her child is an inattentive driver who constantly talks or texts while driving and despite that, the parent allows the child to continue to drive the family car, and the parent makes no effort to restrict the child's use of his or her phone, then a parent would be on notice of the child's dangerous propensities. If the child ends up causing an accident while talking or texting, the parent could be considered negligent for failing to prevent foreseeable harm.
There are 29 states that have "filial support laws" which provide that children can be legally responsible for their parents' long-term care costs. However, Missouri currently does not have filial support laws. You could become contractually liable by signing agreements with the nursing home or hospital. Be careful what you sign!
No. Missouri does not protect the ownership of any type of 529 or other college savings plan from your creditors. Call us now to learn more about a 529 Educational Savings Trust which can protect the money in your 529 College Saving Plan for your children.
The probate process varies case by case depending on the nature of the assets (real estate, businesses, out of state property), the number of beneficiaries, whether there are liabilities of the estate that need to be paid, and what county the probate process takes place. The typical time frame is between 6 months and 18 months.
No. When a person dies in Missouri with a will, the will must be admitted to the Probate Court in the county where the decedent lived. Once the will is determined to be valid by the Court, then the person named in the will as the Executor or Personal Representative has the legal authority to gather and value the assets owned by the estate, pay the decedent's bills and taxes and ultimately distribute the assets of the estate to the beneficiaries named in the will.
In St. Louis, the main advantage of adding your son's name to your house is that doing so will avoid probate and make it easier for him to take possession of your home upon your death. The main disadvantage is that your home will be subject to any claims for your son's debts and could even come into the picture if he were to get divorced.
Yes. In Missouri, you may name more than one person to serve as the executor. These persons are called co-executors. This structure may work in some cases. However, because both co-executors often must agree on all decisions (and sign everything) it may create more problems than it is worth. You should discuss this co-executor issue with your attorney.
No. Under these circumstances, the State of Missouri will usually not take your property. However, if you don't make a will, the State of Missouri will decide who gets your property. If you die without a will and your relatives cannot be found, then the State of Missouri may get your property.
Yes. In Missouri, if you have children, you are not required to leave them any portion of your property. A common misunderstanding is that you must leave each child at least one dollar. You may simply state, "I have intentionally failed to provide for my son, Matthew."
Learn all about Revocable Trusts in our special report Understanding the Basics of Revocable Trusts .
No! The assets in your Revocable Trust are still considered your own personal assets while you are alive as you control and benefit from the assets in your trust. As such, a creditor can attach their judgment to your assets in your Revocable Trust. Learn more by downloading our free report 10 Questions You Should Ask About Protecting Your Assets in Missouri .
When there is no Last Will and Testament of a person who dies, then there will be a court proceeding in the county where they lived at the time of death. The law of the State of Missouri will determine the persons entitled to share in the distribution of their property.
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