May 2009 Newsletter

Our newsletter is back!  And, we now have a new website with a new focus and more content in business and estate planning.

If you are interested in starting or operating a small business, or working with business owners, we hope you will find helpful information in the newsletter and on our website.  Likewise, if you are interested in estate planning, or work with people in the field, you will find related information in the newsletter and on our website.  We try to post articles that address real-life issues faced by our clients, so we hope our site is beneficial for you.  Please take a look at our recent articles.

**You are receiving this if you were on our old newsletter list or if you indicated you would like to be included.

Wages for S Corporations and Officers

djelaw.comS corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates.
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Just How Good is Corporate Protection?

djelaw.comIf you ever have the misfortune of facing aggressive business creditors, you might wonder how easily these business creditors could become your personal creditors. The short answer is that your Washington corporation offers you much protection from creditors, more so than in many other states. The Washington Supreme Court recognized the legitimacy of protecting an owner’s assets with a corporation when it said, “The purpose of a corporation is to limit liability.” This is good news for owners of corporations, but owners should also be aware of situations that could compromise their corporate shield.
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FAQs Regarding Powers of Attorney

What are the general types of Powers of Attorney (POAs)?

A person needs a POA for three life situations: 1) medical decisions; 2)personal decisions, such as where and how to live; and 3) financial decisions. A person may appoint the same person or different persons as agents for the different POA documents. Usually people have two separate documents, one for the medical POA and another for the personal and financial POA.

Can I just say “I give my agent the power to make all my decisions”?

Many third parties will not accept the authority of the agent unless the POA has specific language that the third party is looking for. For example, banks want certain language from a banking statute; the IRS wants some specific language; and additional specific language is helpful for Medicaid issues.
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Revocable Living Trust – Questions and Answers

djelaw.comA revocable living trust should be considered when preparing estate plan documents. There is much hype about revocable living trusts, and much of it does not apply to people in the state of Washington. The trusts are very popular in California because of the high probate fees and costs in that state. (Public probate can be avoided by setting up an appropriate trust.) Nonetheless, for some people in Washington, a living trust will be a very appropriate part of their estate plan.
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