Seiler Law Blog

Why a will?

Jon Schindel — Tue, 11 Jan 2011 14:39:04 +0000

The first question many people ask an attorney is “Why do I need a will” but most already know the answer. Here are a few reasons you need a will:

1) If you have children under the age of eighteen (18), a will allows you to name guardians who will raise the children until they reach majority age. If you do not name guardians, a court will likely decide who will be the guardian.

2) If your children are not at an age where you would be comfortable with them receiving their share of your estate as an outright gift, you can regulate when they receive distributions as they get older. This protects your children from…..themselves.

3) Regardless of your net worth or the age of your children (if you even have any), having a will makes the administration of your estate far easier and less expensive for those that you leave behind. If you don’t have a will, your state and its courts will dictate how your assets are passed.

Disclaimer

This Blog is made available for educational and general information purposes only, and is not meant to provide specific legal advice. It should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. None of the information in this Blog necessarily reflects the opinions of Seiler & Associates or its attorneys or clients. The information is not guaranteed to be correct, complete, or current, and we do not expressly or implicitly warrant the accuracy or reliability of any of the contents.

An attorney-client relationship cannot be formed by receiving, accessing, or reading this Blog and this Blog is not intended to create, and does not create, an attorney-client relationship between you and Seiler & Associates. This Blog is not soliciting clients and does not propose or endorse any type of transaction.

If you are interested in having us represent you, you must contact us so we can determine whether the matter is one for which we are willing or able to accept professional responsibility.

The Corporate Liability Shield Pierced–Executives are Personally Liable for Wage and Hour Violations

Scott Seiler — Tue, 11 Jan 2011 14:36:55 +0000

A Federal District Court held that a corporation’s CEO and CFO can be held personally liable for the company’s non-payment of an employee’s wages (Boucher v. Shaw, 572 F.3d 1087 (2009)).

In Boucher, several employees sued the company and its two owners (the CEO and CFO) for unpaid wages, vacation, and holiday pay under the Fair Labor Standards Act (“FLSA”). The court held that a person who exercises “control over the nature and structure” or has “economic control” over the employment relationship is personally liable for FLSA violations. The Court looked a several factors including control of the employees, ownership interests in the company, and responsibility for management and employment matters. If the foregoing are present, the liability shields afforded by corporate organizations (C Corp, S Corp, LLC) are of no effect. Thus validating our firm’s mantra, “always pay your employees.”

Skirting the control issue is nearly impossible for most small and medium businesses, who must give some concerted effort on assuring they have legal and accurate payroll, reporting and paid time off procedures. This case, together with other unpublished cases recently decided, should provide the requisite impetus for companies to have their organizational documents and HR procedures reviewed.

Disclaimer

If you are interested in having us represent you, you must contact us so we can determine whether the matter is one for which we are willing or able to accept professional responsibility.

Hiring and Firing in Minnesota: Part 2

seiler — Mon, 10 Jan 2011 21:25:06 +0000

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If you are interested in having us represent you, you must contact us so we can determine whether the matter is one for which we are willing or able to accept professional responsibility.

Hiring and Firing Compliance in Minnesota: Part 1

seiler — Thu, 06 Jan 2011 17:09:55 +0000

Disclaimer

If you are interested in having us represent you, you must contact us so we can determine whether the matter is one for which we are willing or able to accept professional responsibility.

Seiler & Associates is thrilled to announce four new additions to our team

seiler — Fri, 12 Nov 2010 19:11:47 +0000

Please welcome the four newest members to the Seiler & Associates team:

Kyle Moen-Attorney. Kyle is a recent graduate of the William Mitchell College of Law. He has worked as a clerk for the firm since October 2008, consistently demonstrating that he is a self starter with the ability to quickly learn new legal concepts. Kyle will be working in the areas of commercial litigation, business transactions and consumer collections.

Bobbi Dahlstrom-Attorney. Bobbi graduated from the University of St. Thomas School of Law in 2006. Bobbi comes to us with a broad background of practice experience and brings an infectiously positive attitude. She will be working on a variety of transactional and litigation matters.

Lisa Needham—Attorney. Lisa is a 2002 graduate of the William Mitchell College of Law and former clerk to Minnesota Supreme Court Chief Justice Kathleen Blatz. Lisa has a strong background in many aspects of public law and is an adjunct professor of legal writing at William Mitchell. She joins us on an “of-counsel” basis, working on a variety of matters, including regulatory, transactional and federal litigation.

Caitlin Maxhimer—Administrative Assistant. Caitlin has been with us for a few months and has become an integral part of our team. She keeps the office ship shape and the attorneys on task. Make sure to say ‘hi’ when you call.

Disclaimer

If you are interested in having us represent you, you must contact us so we can determine whether the matter is one for which we are willing or able to accept professional responsibility.

Aren’t Trusts Just for People with a lot of money?

Jon Schindel — Mon, 20 Sep 2010 14:34:13 +0000

While there are types of trusts that are specifically designed to assist wealthy clients in the protection of their assets, a revocable trust is a tool that almost anyone should consider when evaluating estate planning options. Regardless of whether you have a will or not, most states require that your estate go through a post-mortem process called probate. Probate is designed so that your state or county has the opportunity to supervise the administration of your estate to ensure any distributions are properly made. Probate can be very time consuming and expensive.

You may be able to avoid all this through a revocable trust. In most cases, having your assets in a revocable trust while you are alive will allow your estate to bypass the probate process. Avoiding probate saves your estate money and allows your assets to be distributed more quickly. It will also take some of the burden off of those you leave behind to administer your estate. In addition, you can operate a revocable trust during your life with little or no noticeable impact on your life.

Ask an attorney if a revocable trust is right for you.

Disclaimer

If you are interested in having us represent you, you must contact us so we can determine whether the matter is one for which we are willing or able to accept professional responsibility.

Post-Termination Responsibilities: Paid Time Off/Vacation

Scott Seiler — Mon, 20 Sep 2010 14:32:20 +0000

The myriad of business regulations favoring employees have created misconceptions adversely influencing many companies’ employment policies. For instance, it is common for Minnesota businesses to provide terminated employees with payment for unused paid time off (PTO) or vacation time. However, the Minnesota Supreme Court has held that an employer may provide paid time off to an employee during the course of employment, without necessitating obligations to pay such an employee for unused paid time off following termination. Lee v. Fresenius Medical Care, Inc., 741 N.W.2d 117 (Minn. 2007).

The language of the policy in question was decisive to the court’s decision. As such, companies must craft a clearly understandable PTO policy (or modify any conflicting policies), notify current employees of the policy, and advise new employees of the rule.

But, be aware: if an employee was hired on condition she receives post-termination payment of unused paid time off, the new policy could be a breach of this condition. Further, while a change this momentous might benefit the company, it can create ill will among staff. It is important to prepare for the modification and plan carefully before implementation.

For more information on wage, hour and other employment law matters, please call us at 952.358.7400.

Disclaimer

If you are interested in having us represent you, you must contact us so we can determine whether the matter is one for which we are willing or able to accept professional responsibility.

Kagan Confirmed By Senate

Jennifer Lange — Mon, 09 Aug 2010 14:18:47 +0000

You read our recent article on Solicitor General and Supreme Court Justice nominee Elena Kagan. She was recently confirmed by a majority of the full Senate and will become the next U.S. Supreme Court Justice. Please share your thoughts on Kagan’s confirmation and/or her role as a Justice?

Disclaimer

If you are interested in having us represent you, you must contact us so we can determine whether the matter is one for which we are willing or able to accept professional responsibility.

The Patient Protection and Affordable Care Act: Top Ten Things Employers Need to Know NOW

Scott Seiler — Sun, 27 Jun 2010 18:46:27 +0000

By: Scott Seiler, Tina Taffoli, and Jennifer Lange

1. Some changes are already in effect!

The changes under this bill are implemented over a number of years, but some have already started to take effect! It is important that you get up to speed as soon as you can.

2. Small Employer Tax Credit Available

If you have 25 or fewer full-time equivalent employees, you may be eligible for a tax credit of up to 35 percent of employer paid insurance premiums. The credits work on a sliding scale. The fewer employees a business has, the larger the percent credit.

3. Continuous Coverage for Adult Children until Age 26

Under the new plan, dependent adult children must be covered, regardless of the child’s marital status, until age 26. However, grandfathered plans do not need to cover these dependents until 2014 if the dependent is eligible to be covered under another plan.

4. No More Pre-Existing Condition Exclusions

Beginning September 23, 2010, no pre-existing condition exclusions may be imposed for children under the age of 19. This is extended to insureds of any age beginning January 1, 2014.

5. Big Changes to FSA Policies

Beginning in 2011, Flexible Spending Accounts (FSAs) will no longer reimburse for any over the counter medications, unless prescribed by a doctor. In addition, effective 2013, the cap on FSA contributions is limited to $2,500.

6. New W-2 Reporting Obligations

Employers must include the value of the benefit provided by the employer for each employee’s health insurance coverage on the employee’s W-2.

7. No Annual or Lifetime Limits Permitted

Commencing September 23, 2010, insurance companies may not impose annual or lifetime dollar limits on essential health benefits. Essential health benefits include emergency care, hostpitalization, maternity/newborn care, preventative/wellness services, prescription drugs, mental health and substance abuse services, pediatric care, and other basic benefits.

8. $5 Billion Reinsurance Program for Early Retirees

The new bill creates a $5 billion fund to finance a temporary program for employers providing insurance to retirees over 55 years old who are not eligible for Medicare.

9. Rescission of Coverage Prohibited

Beginning September 23, 2010, rescission of coverage is prohibited, except in cases of fraud or intentional misrepresentation, where advance notice is required.

10. Uniform Summary of Benefits

By March 23, 2012, all group health plans must provide a uniform summary of benefits to participants for fully insured plans.

For a summary of all provisions of the new law, see this handy flow chart, available here, or contact us should you have any specific questions.

Disclaimer
This Blog is made available for educational and general information purposes only, and is not meant to provide specific legal advice. It should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. None of the information in this Blog necessarily reflects the opinions of Seiler & Associates or its attorneys or clients. The information is not guaranteed to be correct, complete, or current, and we do not expressly or implicitly warrant the accuracy or reliability of any of the contents.

If you are interested in having us represent you, you must contact us so we can determine whether the matter is one for which we are willing or able to accept professional responsibility.

What’s EGTRRA?

Jon Schindel — Sun, 27 Jun 2010 18:46:05 +0000

By: Jon Schindel and Jennifer Lange

The Economic Growth Tax Relief Reconciliation Act (EGTRRA) implemented in 2001, made a number of changes to the estate and gift tax system. So, what does that mean to you today? If you have an estate plan in place or are planning on creating one, it may mean a lot!

Here’s what EGTRRA did:

When EGTRRA was passed in 2001, it gradually reduced the rate at which large estates were taxed. The size of the estate excluded from the tax rose each year from $1 million to $3.5 million, while the tax rate also decreased from 55% to 45%.
In 2010, EGTRRA was subject to a sunset provision. This completely removed the estate tax for one year.
If Congress does nothing to reinstate EGTRRA in 2011, the rates will return to the pre-EGTRRA rates, with a $1 million exemption and a 55% tax rate.
The annual gift rules were not affected by the sunset of EGTRRA. Both before and after EGTRRA, a person may give a lifetime gift of up to $13,000 per donee per year and not pay taxes on it. This means that a person with three children could give $13,000 to each of her three children, for a total of $39,000 per year, without paying taxes on that total gift amount.

So what does all this legal mumbo-jumbo mean to you?

Your estate could be significantly impacted by EGTRRA. If Congress doesn’t act, your current estate plan may not account for the reversion back to pre-EGTRRA rates. Contact us to schedule a free estate plan review to be sure your plan is up to date.

If you are interested in having us represent you, you must contact us so we can determine whether the matter is one for which we are willing or able to accept professional responsibility.