Title: What If You Die Without a Will?
Content:
September 8, 2020
By: Chad Roberts
While having a conversation about estate planning and one’s own mortality can be a difficult and unwelcoming one, it’s an essential conversation for providing a less painful transition for ones’ family and to ensure the intended result.
If one dies without a will, the Tennessee intestate succession statutes provide a specific beneficiary scheme and determine who will handle a person’s affairs after death. This scheme may not be what one wants. There are numerous ways in which one’s intent is thwarted without proper planning. One common situation is where a parent dies without a will. For example, if Dave and Sally are married with two minor children and Sally dies without a will, Dave will receive one-third of the estate and each of their children will receive one-third of Sally’s assets. Since their children are minors, the probate court will oversee the administration of the assets until the children are of age. This outcome is perhaps not what Sally would have wanted.
Sally could have avoided this situation if she had a will. The will could have provided for all of her assets to pass to her husband, in which case the children would not have received two-thirds of her estate. The outcome could also change if Sally owned property jointly with her husband or had completed beneficiary designations. To the extent that Sally and Dave owned the property as tenants-by-the-entirety, Sally’s interest will pass to Dave as the survivor. If Sally owned an investment account or life insurance and named Dave as the sole beneficiary, then Dave would receive the entire balance of the account. Clearly, estate planning goes beyond drafting a will. Beneficiary designations and survivorship rights must be addressed as well.
Moreover, while Tennessee’s probate process is not particularly onerous, living trusts provide an option to protect privacy and help with incapacity issues and other benefits that a will cannot provide. Living trusts, however, come with some negatives, including the burden of transferring and having a trust own your assets while you are alive.
Estate planning conversations are not easy or simple, but they are essential to providing for loved ones and carrying out one’s legacy properly. Estate planning is further complicated by tax issues, asset protection issues, business succession issues, charitable giving issues, and guardianship issues, among others. Thus, it is vital that individuals seek the advice and counsel of knowledgeable and experienced estate planning attorneys.
If you’re in need of legal guidance regarding estate planning, please contact Harris Shelton today.
Title: HARRIS SHELTON HANOVER WALSH ATTORNEYS RECEIVE BEST LAWYERS® RECOGNITION
Content:
Harris Shelton Hanover Walsh, PLLC, one of Memphis’ largest law firms, today announced that 30 of its attorneys have been recognized by their peers for inclusion in the 2021 edition of The Best Lawyers in America©, while another eight attorneys have been selected for inclusion in the first edition of Best Lawyers: Ones to Watch.
Recognizing attorneys from 78 countries around the world, Best Lawyers is the oldest and most respected peer review publication in the legal profession. This honor is awarded to candidates who have been in practice for 10 or more years. Click here to view the list of attorneys who received the Best Lawyers recognition.
Two attorneys on the list received recognition for “Lawyer of the Year” in Memphis: Barbara B. Lapides in the practice area of Municipal Law and Jerry O. Potter in the practice area of Personal Injury Litigation. Only 5,791 lawyers across 184 metropolitan areas – one attorney per community and specialty – received this recognition. Click here to view the attorneys, past and present, who have received “Lawyer of the Year” recognition.
Now in its first edition, The Best Lawyers: Ones to Watch honor is awarded to promising younger attorneys who have been in practice between five and 10 years. Nominees were positively recommended by peers of the legal community and methodology for selection, following the same process as that of Best Lawyers. Click here to view the list of attorneys who received this recognition.
Title: AN INTRODUCTION TO EQUINE LAW
Content:
June 10, 2020
The Mid-South is home to a diverse group of equestrians who are involved in many disciplines, and within any equine activity, issues or disputes may arise. The practice of equine law involves various aspects of horse ownership and involvement with equine activities.
Tennessee understands the importance of these activities and has enacted certain statutes to limit the civil liability of those involved in certain equine activities. Harris Shelton attorney Melanie Dunlap provides counsel and litigation services in various areas of equine law, including:
Melanie shares more about equine liability issues in Tennessee and points to consider when drafting contracts related to equine activities via Mid-South Horse Review.
If you’re in need of legal guidance regarding equine liability or any of the areas listed above, please contact Harris Shelton today.
Title: COVID-19 Laws: Understanding the Paycheck Protection Program
Content:
May 14, 2020
Wondering if your small business qualifies for relief? Let’s take a look at the Paycheck Protection Program to see if your situation meets eligibility requirements and take a deeper dive into how the process works.
The Coronavirus Aid, Relief and Economic Security (CARES) Act expands and modifies section 7(a) of the Small Business Act, an existing small business loan program. This expansion makes qualifying small businesses eligible for forgivable loans on historically favorable terms for both borrowers and lenders.
The CARES Act appropriated $349 billion dollars to create the Paycheck Protection Program (PPP) as a financial bridge to keep American small businesses operating and paying their employees during the COVID-19 pandemic.
FAQs:
What is the Max Loan Amount?
2.5 times average monthly payroll costs.
Who is Eligible?
Business and nonprofits with 500 employees or fewer that have been in operation since March 1, 2020 and can make the required certifications.
When Can I Apply?
Applications opened to small businesses and sole proprietorships beginning on April 3, 2020. Applications opened to independent contractors and self-employed individuals starting April 10, 2020. Applicants must apply by June 30, 2020, but the allocated funds will likely be exhausted by that deadline, so apply as soon as possible.
How Do I Apply?
What is the Forgiveness of the Loan?
If certain criteria are met — primarily, that you maintain the same number of employees calculated through payroll records — then the full principal of the loan and interest is forgiven.
Now, let’s take a deeper look into each of the key areas mentioned above:
Loan Amount
A qualifying small business can borrow up to 2.5 times its average monthly payroll costs, calculated by averaging the borrower’s last 12 months of payroll costs; or $10 million, whichever is less.
For a business that was not operational in 2019, the maximum loan amount is 2.5 times the borrower’s average monthly payroll costs for January and February 2020, or $10 million, whichever is less. For seasonal employers, the maximum loan amount is 2.5 times the borrower’s choice of their average monthly payroll costs for the 12-week period beginning either February 15, 2019 or March 1, 2019 and ending June 30, 2019.
Payroll costs include:
When calculating payroll costs, exclude:
Eligibility
Size and Type of Entity
Businesses eligible for this loan include:
Note: Nonprofit organizations are subject to the SBA’s affiliation standards.
Date in Operation
To be eligible, small businesses must have been in operation with either paid salaries and payroll taxes for employees or paid independent contractors on March 1, 2020.
Certifications
In addition to meeting the above criteria, small businesses must certify all of the following in good faith:
Loan Process and Permissible Uses
Application Procedure
A small business can apply for the loan through and receive funds from their existing SBA-authorized private lender. Fees are waived for both the borrower and lender. Unlike other SBA loans, the borrower doesn’t have to offer any collateral or personal guarantees. PPP loans are unsecured.
In most cases, loans are guaranteed by the SBA, which will require documentation proving the amounts necessary to calculate eligibility, maximum loan amounts and forgiveness criteria. The Small Business Administration will continue publishing more information on how to apply for a PPP loan.
Restrictions with Other Loans
Small businesses cannot take out both a PPP loan and an Economic Injury Disaster Loan (EIDL) related to the COVID-19 pandemic. If a small business took an emergency EIDL grant of up to $10,000, then a subsequent PPP loan will be reduced by the amount of the emergency EIDL grant. Small businesses may take out both a state bridge loan and a PPP loan.
Forgiveness and Repayment Terms
Expenses that Qualify for Forgiveness
If a small business keeps all of their employees or hires back any recently furloughed or terminated employees before June 30, 2020, certain expenses made during an eight-week period of the borrower’s choice between March 1, 2020 and June 30, 2020 with the principal of the PPP loan may be forgiven.
Forgivable expenses include:
In order for the full loan amount to be forgiven, no more than 25 percent of the principal may be used on non-payroll expenses. If the full principal of the PPP loan is forgiven, then the borrower is not responsible for interest accrued in the eight-week period. Borrowers must provide documentation of expenses for which they seek forgiveness. Loan forgiveness cannot exceed the principal amount. Any loan amounts forgiven are excluded from gross income for tax purposes. A lender must issue a decision no later than 15 days after receiving a loan forgiveness application from a borrower.
Forgiveness Reductions for Laying off Employees
If a small business lays off one or more employees, loan forgiveness will be reduced by a percent decrease in the number of employees laid off. Whether a small business has experienced a reduction in the number of employees is calculated by multiplying payroll costs by the average number of full-time equivalent employees per month for the eight-week forgiveness-eligible period divided by the employer’s choice by the average number of full-time employees per month from March 1, 2019 to June 30, 2019. For seasonal employees only, the average number of full-time employees per month from March 1, 2019 to June 30, 2019 can be used in this calculation.
If a small business’ total payroll expenses on employees making less than $100,000 annually decreased by more than 25 percent, then the loan forgiveness amount will be reduced by that amount.
PPP Loan Amounts Not Forgiven
If a small business takes out a PPP loan and does not have the full amount forgiven, the remaining amount of the PPP loan is subject to the following terms:
A recipient cannot also use the Employee Retention Tax Credit for the same period. A recipient can, however, still obtain the tax credit associated with the Expanded Emergency Leave Benefits.
The certification raising the most questions is that uncertain economic conditions due to the COVID-19 pandemic make the loan necessary to support ongoing operations.
The SBA continues to release guidance regarding PPP Loans. There is no clear guidance on this certification. The demand for this loan is substantial and initial funding was exhausted, which lead to additional funding. If you’re in need of legal guidance regarding an assessment on whether you’re eligible for the 7(a) loan or other COVID-19 response measures, contact Harris Shelton today at 901-525-1455.
Title: WHAT YOU NEED TO KNOW ABOUT THE CARES ACT: EMPLOYEE RETENTION TAX CREDIT
Content:
April 26, 2020
The Coronavirus Aid, Relief and Economic Security (CARES) Act creates a payroll tax credit designed to provide financial incentives for businesses to keep employees on their payroll during the COVID-19 crisis.
Businesses qualify if they are partially suspended, completely suspended or even closed as a result of a quarantine, isolation order or “safer-at-home” order. This credit is available for wages paid from March 13, 2020 through December 31, 2020. Wages earned before March 13, 2020 qualify if they were paid on or after March 13, 2020.
To help provide insight into the complexities of this legislation, Harris Shelton attorneys have broken down Retention Credit eligibility, exclusions and more:
What is the Tax Credit Amount?
The Retention Credit is for 50% of qualifying wages paid by the employer during an eligible calendar quarter. Businesses can apply the Retention Credit up to $10,000 per employee in total.
How Does Employer Size Affect Eligibility?
For businesses with 100 or fewer employees, all wages for the time period in which the business is affected can be credited.
For businesses with more than 100 employees, only wages paid to employees who are not providing services to their employer qualify. Full-time employees are defined under the same criteria as the Affordable Care Act, meaning that an employee must work at least 30 hours per week on average in a month.
Who is Eligible?
Only nongovernmental businesses are eligible for the Retention Credit. Eligibility will be determined for each business on a quarterly basis. There are two ways to reach eligibility:
What are the Qualifying Wages, Limitations, and Exclusions?
There are still many questions about how the Retention Credit will work and whether certain employees will qualify. For instance, it’s unknown whether the wages of employees of large employers who are providing some – but not all – of the services they usually provide qualify for the Retention Credit. Further guidance by the IRS will be crucial to understanding the nuances of the Retention Credit.
If you or your business are in need of legal guidance regarding recent COVID-19 legislation, please contact Harris Shelton, a full-service law firm, today.
Title: HARRIS SHELTON ATTORNEYS EXPAND PRACTICE TO NASHVILLE
Content:
Harris Shelton attorneys Jeffrey Griffin, Laura Martin, Emily Huseth and Michael Rafferty were recently sworn in to the United States District Court for the Middle District of Tennessee before the Honorable Judge William L. Campbell, Jr. The motion for admission was made on behalf of all four attorneys by Harris Shelton attorney Abigail Webb Sala.
Harris Shelton opened its Nashville office in 2017 when prominent attorney and former Chancellor William (Bill) Young joined the firm. With the opening of the Nashville office, Harris Shelton is now equipped to provide its full range of legal services to Nashville as well as surrounding communities in Middle Tennessee.
Title: HARRIS SHELTON IS PLEASED TO ANNOUNCE WILLIAM P. (BILLY) MOSS, III AS ITS NEWEST MEMBER
Content:
William P. (Billy) Moss, III has become a member of Harris Shelton. Billy represents lenders and borrowers in a wide variety of commercial financial transactions and has structured, negotiated, and has documented scores of loan financing arrangements of all types, including secured and unsecured financing. A significant portion of his practice focuses on the financing aspects of commercial real estate purchases from a borrower’s perspective. He also has significant experience assisting lenders with foreclosures and other debt recovery remedies. Billy works out of both the firm’s Memphis and Oxford offices.
Title: LAURA MARTIN AND KEVIN WALSH HONORED AS FELLOWS OF THE MEMPHIS BAR FOUNDATION
Content:
Attorneys Laura Martin and Kevin Walsh were recently honored by being recognized as Fellows of the Memphis Bar Foundation. Attorneys and judges are nominated to become Fellows in recognition of their distinguished service to the legal profession and their adherence to the highest standards of professional ethics and conduct. As the charitable arm of the Memphis Bar Association,the MBF provides grants to assist law related activities and projects that further its mission of promoting social justice and legal education and recognizing professionalism among members of the Bar. Congratulations to both Laura and Kevin.
Title: EMILY HUSETH ELECTED TO THE BOARD OF MEMPHIS BAR ASSOCIATION HEALTH LAW SECTION
Content:
Harris Shelton attorney Emily Huseth was recently elected to the Board of the Health Law Section of the Memphis Bar Association for 2018-2019. The Health Law Section works closely with the Institute for Health Law and Policy (iHeLP) at the University of Memphis Law School and offers CLE seminars on legal issues affecting local healthcare entities.
Title: HARRIS SHELTON MEMBER MATTHEW KIRBY PRESENTS AT ANNUAL SEMINAR SPONSORED BY HOSPITAL WING AIR AMBULANCE SERVICE
Content:
A standing-room-only crowd of EMTs, Paramedics, Flight Nurses and other emergency medical personnel attended Matthew Kirby’s presentation entitled “Surviving the attack of a Litigator.” The presentation, which focused on improving communication skills, utilized a combination of lecture and skills practice. Based upon feedback, the presentation was enjoyed by those in attendance:
“Mr. Kirby did a phenomenal job of both educating and demonstrating tactics and skills for the medicolegal aspects of our job.”
“His talk was extremely interesting and applicable. I wish he could have spoken longer.”
“The Wing” is a non-profit air medical transport that provides inter-hospital transfers as well as emergency scene calls within a 250- mile radius of Memphis. The area includes West Tennessee, Arkansas, Mississippi, Missouri, Alabama, and Kentucky. “Wing Fling” is an annual continuing education conference hosted by the Hospital Wing Air Ambulance Service.
Title: Disclaimers
Content:
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