Estate Planning or Successon Planning?

Though often used synonomously, the terms "estate planning" and "succession planning" differ slightly. Estate planning often refers to planning for estate taxes, but can also mean planning for the distribution of your estate, that is, who gets what.

Succession planning means planning specifically for the succession of a family business to future generations. Succession planning may involve estate taxes, but they are secondary to the purpose of the planning, which is to allow a successful family business to be passed on intact to future generations. This can be very tricky because issues such as outstanding loans, employee relations and everything involved in running a business is involved in succession planning.

An estate plan might include a succession plan, or it might provide for the sale of the business.

Why Do People File Bankruptcy?

This is a question that has puzzled those who study human behavior for years. Why do some people file bankruptcy while others don't? Lots of theories have been advanced: lack of education in money matters; crushing debt from unexpected medical bills; divorce or death; or just plain irresponsible behavior in running up credit card bills. Now a nationwide study has shown at least one contributing factor: The toughness of state collection laws.

It seems that in those states where creditors have more power to collect debts, such as through garnishment of wages, foreclosure of judgment liens on real property, attachment of personal property like cars, and the like, people are more prone to file bankruptcy than debtors in states where creditors can't make their lives as miserable.