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Camden NJ Business & Commercial Law Blog

What is breach of fiduciary duty?

There are certain business terms that might be confusing even to those who are involved and work in business as their means of making a living. Knowing these various terms is essential for New Jersians who are starting a business or running a business. One is breach of fiduciary duty. Fiduciary duty is when a party is obligated to act in the interests of another party. Breaking that code will be a breach of fiduciary duty. One party trusting another with a certain duty creates a fiduciary on the part of the one who is being trusted. There are several different ways in which fiduciary duty can be breached.

First, the breach of fiduciary duty will often hinge on if there was a fiduciary relationship when the dispute took place. Next, the relationship and duties of the fiduciary must be considered. Third, the duties that were breached during the relationship will need to be examined. An example of a breach might be if the fiduciary does not act in the interest of the clients, but in his or her own interests. It can also be a failure to provide certain necessary information such as there being a conflict of interest.

Why is filing a business dissolution important in New Jersey?

Sometimes, New Jersey business owners decide to close. But, they may make the mistake of failing to inform the state of their business dissolution. This is an important clerical maneuver because it will remove the company from the tax and public records.

For businesses that were formed before March 20, 2013, a domestic corporation will use dissolution, while a limited liability company (LLC), limited liability partnership or limited partnership will cancel. Foreign corporations will withdraw. Businesses formed on or after that date must dissolve and terminate.

The importance of estate plans with an inheritance -- Part II

Estate plans are complex instruments that can be confusing to a great number of people. There are multiple subsets to any estate plan and dealing with wills, trusts, inheritance and other matters related to it can leave family members in dispute. A recent post discussed the importance of inheritance estate plans. This post will follow up by discussing other issues that should be accounted for by New Jersey residents as they formulate this crucial document and decide on how it should be done.

Minor children who have been left behind and given a large amount of money after a parent has died could lead to trouble. Parents who decide to leave money to their minor children must understand that the court will name a property guardian to supervise them. The child will be able to use this money when he or she is deemed an adult. In New Jersey that will be when he or she turns 18. Inexperience can lead to financial overspending and deplete the money. A trust might be beneficial in such a case.

Estates and digital assets in New Jersey

When designing an estate plan, a new issue is digital assets. This is a relatively new phenomenon, but digital assets will only increase in importance. As such, one must have a grasp of how digital assets affect trusts, wills and other estate planning tools.

First, one must take a digital asset inventory. The inventory should include electronic accounts, subscriptions, etc. And, the list should include the asset's web address and how to access it (i.e., usernames, passwords, security questions, etc.). Moreover, the inventory should include liabilities, like automatic payments. Failing to provide this information to heirs and executors will cause problems.

Types of business entities: The general partnership

If you are considering starting a new business, then congratulations are in order! Few things satisfy the entrepreneurial spirit like a new venture. As you begin the process of bringing your vision to fruition, you may find yourself contemplating what type of business entity would best serve your purposes.

In order to make the right choice, you need as much information as possible regarding your choices. If you intend to enter into the business with others, you could form a limited liability company, a corporation or some type of partnership (either limited or general). Each entity type has its pros and cons. Only you can ultimately determine which entity works best for you and your business. This article explores the particulars of a general partnership.

The importance of inheritance estate plans -- Part 1

An estate plan is a vital part of the future for people in New Jersey. It is often overlooked, but especially for those who do not have significant means. They might be under the impression that since there is not substantial assets to divide, wills are unnecessary. However, that is a mistake.

There are a multitude of errors that people will make when it comes to estate planning. Knowing them is a sound way to avoid making them.

A special needs trust can help loved one who is disabled

A common concern for New Jersey parents is what will happen to their children after they have passed on. This issue is magnified if there is an adult child with a disability or health issue. Estate planning can address these matters and make sure that the adult child is cared for. It is important to know what steps to take to ensure that this is the case.

A special needs trust is beneficial in this vein. Trusts craft a relationship between the person who is funding the trust, the beneficiary and the trustee. With a special needs trust, there will be extra funding for someone who is in a situation where the funds will be necessary for adequate care. People who are disabled might not be able to handle their own finances, live alone, and manage themselves. This is where a special needs trust comes in. It is also useful if governmental assistance like Supplemental Security Income (SSI) is not sufficient to pay for all that they require. It can help with medical care if Medicaid does not cover everything that the disabled person needs. If the trust is crafted skillfully, the beneficiary will still be able to receive help from these programs.

Proposed business partners in fantasy sports call off merger

New Jersey companies that are considering advancing their business goals by merging with or acquiring another company should make certain that the idea fits in with their corporate strategy and it is a viable plan. Mergers and acquisitions is an exceedingly complex area of the law with various aspects of it up for scrutiny from government regulators and resistance from shareholders. Companies that are thinking about an ambitious plan in this vein must be cognizant of what they are facing. One recent decision on the part of two large companies in the same business provides a window into the difficulty of such business maneuvers.

A proposed merger between two purveyors of fantasy sports - FanDuel and DraftKings - has come apart. The companies had announced the merger in late-2016, but there were numerous obstacles that were too difficult to overcome. The federal government was scrutinizing the agreement and there were concerns about violations of the antitrust laws. The merger had been blocked last month as the Federal Trade Commission conducted a review. Concerns centered around competition. The two companies are believed to have more than 90 percent of the fantasy sport market.

Preparing estate planning documents based on political realities

A common concern for New Jersey residents who have significant assets in their portfolio as they craft their estate plan is wealth protection. Part of that is keeping track of how the government is dealing with various issues that will affect them. This includes the health care plan that has been presented by Republicans and if there will be tax cuts. Those who are wealthy are currently holding off on estate planning because of these current issues.

Taxes and the plan presented by President Donald J. Trump has a repeal of the inheritance tax - also referred to as the estate tax. Currently, those with assets beyond $5.49 million must pay 40 percent tax when inheriting it. It is twice that for a married couple. Those who are concerned about the tax burden for heirs can consider a trust. While there are alternatives, the repeal of the tax can make the trust unnecessary. But it is still not known as to what is going to happen with these plans.

Legal help with estate administration in New Jersey is vital

Losing a loved one is difficult in an emotional and personal way and this can be compounded by the financial ramifications and issues that must be navigated when dealing with a loved one's estate. New Jersey residents who are thinking about the inevitable future will undoubtedly want to prepare with organized estate planning. For this, it is essential to have advice from an experienced legal professional.

Probate is often unavoidable and can be complicated, especially to someone who is not accustomed to these matters and is already in an emotional state from the loved one's death. With probate, the court will deal with the testator's outstanding debt and then distribute the assets that remain. These assets can be subject to the estate tax and the inheritance tax. People who want to keep as much of the estate as possible will want to devise strategies to protect their assets from taxation. A lawyer can help with this.

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