Types of Custody in Pennsylvania

Odds are when you think of custody, you think of physical custody — the person with whom the child resides. Did you know there are two types of custody with seven variations? At the most basic level, a Court will decide what is in the child’s best interest. This will include whether one or both parents have physical custody -- that is the time each parent should spend with the child. The Court will also decide whether it’s better for one or both parents to have legal custody.

When two parents live together with their child, the parents share physical and legal custody. Once their relationship ends and one parent moves out, both parents exercising physical custody of the child becomes harder. Physical custody is the right to have your child with you, living in your home. Depending on the circumstances of the case, a court may award shared, primary, partial, sole or supervised physical custody.  

Shared physical custody means that each parent has custody of the child for longer than a visit. This is often a 50/50 split. Some examples of a 50/50 schedule include a 5-2-2-5, 4-3-3-4 or a 3-2-2-3 schedule. The patterns denote the number of days a child spends with one parent before going to see the other parent. A shared custody schedule prevents the child from spending too much time with one parent before seeing the other. This helps guarantee that the child will have continuing contact with both parents. Parties may choose to change to an every-other-week schedule with older children. But, a week-on, week-off schedule is not common with younger children.

In Pennsylvania, primary physical custody generally means that one parent has, at the very least, more overnights with the child than the other. It may also dictate the child’s address for school. Contrary to primary physical custody, a parent with partial physical custody spends a limited amount of time with the child. If your case includes factors like substance abuse, anger issues or general safety concerns, the Court may order supervised visitation. A supervisor may be a friend, family member, or a representative from an organization that facilitates supervised visitation. If an organization facilitates the supervised visitation, the parent awarded the supervised visitation will most likely be responsible for any fees. 

In some cases, the Court determines that it is in the child’s best interest for only one parent to have physical and legal custody. If so, they will award that parent sole custody. Courts rarely award sole physical custody to one parent though. 

Legal custody is the right to make decisions for the child. Think medical, religious and educational decisions. Parents may enjoy shared legal custody, or one parent may have sole legal custody of the child. Unless there is a court order or an agreement otherwise, both parents have shared legal custody of their child. Shared legal custody means that parents need to consult with and keep each other informed of decisions. In a perfect world, both parents will work together to make the best decision for their child.

Modification of existing custody orders may happen if doing so is in the child’s best interest. Although some states require a material change in circumstances, Pennsylvania does not. It is important to remember that what is in the child’s best interest is unlikely to have shifted unless there has been a change in circumstances.

Feel free to give us a call at 724-550-6970 should your custody issues cause confusion.

*Disclaimer: the advice provided is for informational purposes and is not intended as legal advice.  It should not be relied on, nor construed as creating an attorney-client relationship.

Happy New Year!

Happy New Year! We look forward to serving and achieving our client's goals in 2021.

Custody Christmas Carol

Christmas is right around the corner! Yikes! Maybe you’re in the group of folks who have already finished your shopping and have a mound of beautifully wrapped presents under your tree or maybe you’re in the “I shop on Christmas Eve” club and aren’t sweating the details just yet. Regardless of where you fall, you’ve most likely made all of your holiday arrangements and are looking forward to spending some quality time with your family.  If you share custody of your children with your ex, maybe you’re counting down the hours or days until you see your children for Christmas.

If your ex decides to be a grinch and throw a wrench in your plans by either threatening to ignore the holiday custody schedule or, worse yet, actually refusing to let you see your children for Christmas, please remember a few things:

First and foremost, please remember that your children did not ask to be in this situation. They didn’t ask for their parents to live in separate households and they certainly didn’t ask to be shuffled to and fro on the holidays. This reminder isn’t meant as a guilt trip either. Don’t get so caught up in your anger that you forget what’s most important – your children’s feelings and happiness! 

Second, don’t threaten or try to involve the police.[1] Chances are, if you call the police in an attempt to have them enforce your custody order, they’re going to tell you it’s a civil matter and refer you to your attorney. Truly consider whether being right is more important than your children enjoying their Christmas. Is being right more important than your children’s happiness?  

If, by chance, an officer shows up and is willing to enforce the Order, what will involving the police actually accomplish?  Sure, you might enjoy some sense of satisfaction, but will it improve the quality of your children’s Christmas?  Instead of remembering that Santa brought their favorite gift, your children are more likely to remember the countless tears they shed because their parents were arguing and yelling. Involving the police will only escalate the situation and cause unnecessary strife for all involved. In the spirit of Christmas, be the bigger person. Let your ex go on about their business and call a lawyer to handle the matter in court – where it belongs.

Third, and most difficult, do not mention any of this to your children! Children deserve to be children and enjoy their youth. Don’t rob them of their innocence by putting them in the middle or by making them feel like they need to defend or protect either one of their parents. Even if you can’t remember loving your ex-spouse, remember that your children love both of their parents. 

Pennsylvania uses the “best interest of the child” standard when determining what type of custody and how custody should be shared between parents. If that standard is good enough for the Judge, it ought to be good enough for you, as your children’s parent. Before you make any rash decisions, stop and think “is this really in the best interest of my children?” If the answer is anything other than an unequivocal “YES!”, then you may want to change your course of action.

 The Skeen Firm wishes everyone a very Merry Christmas and a safe and Happy New Year!  Should your holidays not go as planned, feel free to give us a call at 724-550-6970.

*Disclaimer: the advice provided is for informational purposes and is not intended as legal advice.  It should not be relied on, nor construed as creating an attorney-client relationship.

[1] This statement does not cover situations where you are considering calling the police because you fear for your child’s safety. It is solely addressing threatening to involve the police to enforce a custody order.

The Skeen Firm 2020 Holiday Primer

This holiday season is unlike any we have seen. But as we move through the various holidays recognized in December it is important to remember their purpose. Charity, humanity, and family are the reason the holidays exist in the first place. 

No other period of the year embodies the spirit of giving more than December.  To give is to transfer possession of something (property) to someone else.  While giving is most always a good thing, there are some special considerations to keep in mind. 

As the old saying goes, nothing is free.  In fact, the IRS has special tax treatment for gifts.  What was that a tax on gifts?  Yes, that is correct.  Under the Tax Code there is a tax on any transfer of property from one individual to another. Talk about a serious holiday downer.  There is an exemption available to save the spirit of giving though. In fact, the exemption covers up to $15,000 worth of gifts annually.  So give and give big!

On second thought, give and give within your means. 2020 hit most families hard in ways that do not involve contracting the virus. With unemployment about double the rate as last year, the need to make ends meet bring extra strain. Projections forecast a surge of consumer bankruptcy filings as CARES Act relief ends and forbearances fade. That makes this year a great year to skip gifts and focus on memories. 

While the number of holiday parties may be smaller this year, it never hurts to remember that drinking and driving is always a terrible idea. The legal limit in Pennsylvania is .08, but that is only the tip of the troubled iceberg.  Pennsylvania classifies DUIs into three tiers:  general impairment, high rate, and highest rate. These tiers add penalties depending on the number of offenses. When combined they determine the sentence and fines associated with a DUI. 

In short, you will have a lot less money for giving, or making ends meet, mentioned above if you get pulled over and charged with a DUI. Driving impaired is equal to playing roulette with not only your fate but also everyone else. It is best to leave that to the casinos because playing the road version produces zero winners.  

Finally, if you chose to have a small family event, you should focus on leaving family feuds to daytime television. There is never a good time for a domestic issue so keep that in mind while you are attending family dinners.  Sure, there is a lot of stress at times in everyone’s lives.  Do not let that stress escalate a situation to fisticuffs or worse.  It is safe to assume that no one wants an assault, battery (or both) case either civil or criminal as a gift this holiday season.  So do your best to avoid these situations or topics that could create unnecessary tensions.  

Enjoy one another. Be kind to everyone you meet. And wear a mask! If you do not head this advice, feel free to call us at 724-550-6970 or email us at info@theskeenfirm.com. We will help you with your holiday humbugs. 

*Disclaimer: this article is for informational purposes only. It is not providing legal advice. It does not create an attorney-client relationship.

Small Business Formation Basics - Tax Considerations

Most small business owners wonder what they can do to decrease their taxes.  The best answer for all small business owners is simple:  Focus on growing revenue and you will find taxes will not matter. Following this philosophy is all the more important for start-ups. In the first five years of business, growth can fix most issues. Growth, not decreased taxes, is the lifeblood of your business.

Regardless, it is important to discuss tax issues when forming a business.  When you form a business in Pennsylvania, you have several options.  The most basic form of business in PA is the sole proprietorship. The IRS treats sole proprietorships as a disregarded entity. If you’re unfamiliar with the legal jargon, you may ask “a what entity?”  A disregarded entity is one where the owner files both business taxes and their self-employment taxes on the same return. For most, this is the easiest option for running their business since there is less formality and government entanglement.

The complexity changes when it comes to corporations. Forming a corporation is the most secure option for small business owners looking to limit lawsuit losses at a personal level. Why?  Because with a corporation, the company owns the assets and services that might be subject to a suit – not the board, managers, or individuals like the sole proprietorship. Corporate liability, while important, is a topic for another day. 

So, what about the taxes on a corporation? In this business form there are two levels of taxation. The first is at the corporate level. Here the company pays 21% tax on its profits. The second level is for business owners and investors. These individuals are subject to income taxes on their salaries. Investors are subject to taxes on any dividends and a capital gains tax if they sell shares. So, while it has its place, a corporation is often not ideal for start-ups because of the tax complexities and corporate formalities. 

Now is an appropriate time to discuss S-Corps. A lot of questions and requests focus on S-Corps. An S-Corp is not a business structure; it is a tax election. It will come up in our next corporate entity discussion - the LLC.

From a legal standpoint, a limited liability company or LLC is a newer business structure. An LLC provides much of the same protection from liability as a corporation without the formalities. It also gives its members a couple of different tax options. This is where the S-Corp election comes into play. Whether a single member or multi member, an LLC is a disregarded entity. At formation the IRS treats it as a sole proprietorship or a partnership for tax purposes. In many instances, this works best. Those concerned with taxes have the option to elect to be taxed as an S-Corp. The difference in choice determines how the members pay themselves.

If the members elect taxation as an S-Corp, they will have to follow certain tax rules. The LLC may only have one class of stock, may not have more the 100 owners, and cannot have outside corporate owners.  Members are also required to take a reasonable salary, subject to all standard taxes. Members can make distributions that are not subject to self-employment taxes. The catch is that the IRS has never provided any insight about what is “reasonable”. This could mean more costs for accountants and lawyers to pay less taxes. 

At The Skeen Firm, we are passionate about small business growth and are here to help all small businesses achieve their goals.  Let us help you choose the right tax election for your situation, so you can focus on growing your business!  Contact us by phone at 724-550-6970 or by email at info@theskeenfirm.com to schedule your free consultation today.

*Disclaimer: the advice provided is for informational purposes and is not intended as legal advice.  It should not be relied on, nor construed as creating an attorney-client relationship.

Thinking About Divorce?

Check out The Skeen Firm’s divorce guide. Contact us today at info@theskeenfirm.com or 724-550-6970 if you have questions about your unique situation.

*Disclaimer: the advice provided is for informational purposes and is not intended as legal advice.  It should not be relied on, nor construed as creating an attorney-client relationship.

Spousal Support Seasons in Pennsylvania

They say to everything there is a season.  The same can be said for your divorce.  There are three seasons to a divorce: pre-, pending, and post-divorce.  Just as each season in life has its own set of characteristics, each divorce season has its own type of support.

When two people get married, their budgets and finances are generally combined allowing them to afford a nicer standard of living together as a whole.  Unfortunately, when divorce is on the horizon, those finances are forced to separate which may leave one spouse with inadequate funds to support him/herself.  The spouse whose financial situation is bleaker is generally referred to as the dependent spouse and may be entitled to some form of support.

Pennsylvania has three different types of support to assist the dependent spouse: spousal support, alimony pendente lite, and alimony.  The type of support available to the dependent spouse is determined by how far along the dissolution of the marriage is in the divorce process.  Spousal support pertains to the timeframe after separation, but before someone files a Complaint for Divorce; alimony pendente lite covers the time from when a Complaint is filed until the Order of divorce is granted; and alimony may be awarded post-divorce.

Pre-divorce support, spousal support or alimony pendent lite, is calculated by taking both spouses’ net incomes and applying the statutory formula to arrive at the support amount.  If the statutory guideline amount is inadequate to meet the dependent spouse’s financial needs, the Judge may deviate from the formula and award a greater amount of support.

There is not, however, a formula to calculate alimony or post-divorce support.  Section 3701 of the Pennsylvania Divorce Code lists seventeen factors for the Judge to weigh when determining whether alimony is necessary and in determining the nature, amount, duration and manner of payment of alimony.

Summary of Alimony Factors

After reviewing the factors, alimony is awarded only if a Court finds that alimony is necessary.  In addition to determining whether alimony is necessary, the Court will also determine the duration of the support.  Very rarely is alimony awarded for an indefinite amount of time.  In fact, the general rule of thumb is one year of alimony for every three years of marriage.  Once the Court finds that alimony is necessary, the Court will determine what kind of alimony to award.  There are three types of alimony a Court may award: rehabilitative, permanent or reimbursement.  

A Court may award rehabilitative alimony – alimony for a short amount of time – to empower the dependent spouse to complete any necessary training or education to assist in his/her transition back into the workforce.  Permanent or durational alimony is awarded for a finite amount of time to help the dependent spouse transition into single life, while maintaining a standard of living similar to that established during the marriage.  Lastly, reimbursement alimony may be awarded to a spouse who contributed to the education of the other spouse or the household while the other spouse was in school/training.

Although there are different types of support available depending on your current divorce season, the important thing to remember is that you may be entitled to or eligible for financial assistance before, during or after your divorce.  Contact The Skeen Firm today at 724-550-6970 or info@theskeenfirm.com to discuss the specifics of your situation. 

*Disclaimer: the advice provided is for informational purposes and is not intended as legal advice.  It should not be relied on, nor construed as creating an attorney-client relationship.

How to Keep the 4th of July From Blowing Up in Your Face: A Holiday Primer

As we approach the Fourth of July weekend, it is important to remember that we’re celebrating the birth of American independence.  The weather forecast looks great, so enjoy some time with your family outdoors!

For many of us, this Fourth of July is unlike any other Fourth of July in our lives.  For the first time, we may be concerned with whether getting together with family and friends to partake in our normal festivities is safe.  While there may be conflicting information from the CDC on what is “safe”, here are a few ways to help make sure the only explosion you experience this weekend is watching a wonderful firework display from a safe distance, of course.

First, be respectful.  Despite what your personal feelings are regarding whether or not you need to wear a mask, if you are out in public and an establishment asks that you wear a mask, put one on or peacefully leave the establishment.  There’s no need to argue with the poor greeter at the store or the hostess at the restaurant.  They’re just doing their job.  Causing a scene may escalate the situation to the point of law enforcement being called, and it’s just not worth it.

Second, be smart.  In an earlier article, I explained the difference between the Miranda warnings and the O’Connell warnings with respect to suspected DUIs.  Law enforcement officers are likely to be out in full force patrolling the streets this weekend to help keep everyone safe.  If you are going to enjoy an adult beverage while you’re manning the grill, be smart and have a designated driver lined up or use a ride share to get home safely.  Celebrating the nation’s independence in a manner that may risk you losing yours just doesn’t make sense!

Third, be kind.  You may find yourself hanging out with new and old friends this weekend.  Given the fact that we’re in the middle of navigating through a pandemic and tensions are high, it’s likely the conversation may naturally drift to hot button debate topics.  Tempers may be short, so remember to be kind.  Be kind to the person you thought you knew who suddenly says something you find horribly offensive.  It’s perfectly fine to agree to disagree and continue enjoying the good times and good food!  Don’t let a debate get out of control and end up in a physical altercation.  No one wants to end the weekend with an assault or battery charge.

If by chance your celebration leads to fireworks in life instead of the sky and/or an encounter with law enforcement, feel free to call us at 724-550-6970 or email us at info@theskeenfirm.com.  We would be glad to speak to you about how best to put out the fire.

*Disclaimer: the advice provided is for informational purposes and is not intended as legal advice.  It should not be relied on, nor construed as creating an attorney-client relationship.  The Skeen Firm is not a fire department.  If something is on fire, please call 9-1-1.

The Skeen Firm Opens Cranberry Township Office

We are pleased to announce The Skeen Firm has expanded by opening an office in Cranberry Township on July 1, 2020. This move furthers our mission of providing everyday legal services for the everyday resident of southwestern Pennsylvania. We look forward to serving clients in Butler and Beaver Counties.

 Our new office is located at:

2009 Mackenzie Way 

Suite 100

Cranberry Township, PA 16066

 Call us at 724-720-9362 to schedule a consultation. Or book on our website at https://www.theskeenfirm.com/contact

About The Skeen Firm PLLC: The Skeen Firm is a law firm that advises clients  in the areas of estate planning, business, oil and gas/energy, family law, criminal defense, and bankruptcy across Pennsylvania. We focus on giving everyday legal advice for the everyday resident of Pennsylvania. For more information visit: www.theskeenfirm.com

Pulled Over for Suspected DUI? The Importance of Understanding Both Miranda and O’Connell Warnings in Relation to Implied Consent

Pennsylvania is an implied consent state.  So, what does that mean if a police officer arrests you for driving under the influence?  Generally,  any person who operates a vehicle in Pennsylvania is deemed to have given consent to chemical tests to determine the amount of alcohol or the presence of a controlled substance in his blood.[1]  

Miranda warnings remind an individual detained by a police officer of his constitutional rights, specifically his Fifth Amendment privilege against self-incrimination and the Sixth Amendment right to counsel.  If you’ve ever watched an episode of Law & Order or Live PD, you’ve likely heard the Miranda warnings given. 

“You have the right to remain silent.  Anything you say can and will be used against you in a court of law.  You have the right to an attorney.  If you cannot afford an attorney, one will be appointed for you.”[2]  

No doubt these statements sound familiar to you.  You may even be able to recite them from memory.  But, what about these statements?  

You are under arrest for driving under the influence of alcohol or controlled substance.  You are being requested to submit to a chemical test.  If you refuse to submit to the chemical test, your operating privilege will be suspended for at least one year.  If you refuse to submit to the chemical test, and you are convicted of or plead to driving under the influence, you will be subject to more severe penalties.  You have no right to remain silent or speak to an attorney or anyone else before deciding whether to submit to testing.  Any request to speak with an attorney or anyone else or remaining silent will constitute a refusal to submit to chemical testing.[3]

While you’ve heard of the Miranda warnings, do you know what the O’Connell warnings are?  The O’Connell warnings are read when an officer arrests you for suspected DUI and requests you submit to a chemical test to determine the amount of alcohol or detect the presence of a controlled substance in your system.  

You may be thinking, “Wait!  My license will be suspended for at least one year?  I can be in more trouble if I don’t submit to the test?”  Yes.  While you have the privilege of not incriminating yourself, your license will be for a minimum of one year if you do not submit to the chemical test because of your implied consent – the consent you granted when you drove a vehicle in Pennsylvania.

It’s been said that the best defense is a good offense.  If you are going out and plan on consuming alcoholic beverages, make a plan.  Arrange for a designated, sober driver or utilize a ride share service, such as Uber or Lyft.  If you find yourself driving home after imbibing and see blue lights in your rearview mirror, remember two things.  

Silence is golden.  Respectfully decline to answer any questions.  If a police officer pulls you over for suspicion of DUI, you will likely be arrested, regardless of what you say.  Your quick wit and charm may have gotten you out of a speeding ticket, but they will not save you from a DUI charge.  The less you tell the officer, the better.  There’s no need to tell the officer if you’ve been drinking or how many drinks you’ve had.

Cooperate.  Don’t refuse to submit to a chemical test.  Given the fact that Pennsylvania is an implied consent state, your refusal to submit to a chemical test will result in a suspended license, even if you are found not guilty in a criminal court.  If a chemical test is not administered properly, your attorney may be able to dispute the validity of the results.  If the police officer requests that you submit to a field sobriety test, remember that physical limitations are relevant.  Be sure to inform the police officer of any physical limitations you have or have had in the past, prior to performing any field sobriety test.  If you have suffered an injury in the past or are currently injured, you may be unable to perform the walk and turn or one leg stand test.

No one ever plans on the night ending with a trip to the police station.  What you can plan on is being prepared and knowing the best way to handle a complex situation.  Remember the differences between the Miranda warnings and the O’Connell warnings.  Should you find yourself facing a DUI charge, consider contacting The Skeen Firm.  Let us help you navigate the criminal justice system and protect your rights.

*Disclaimer: this article is for informational purposes only. It is not providing legal advice. It does not create an attorney-client relationship.  

[1] 75 Pa. C.S.A. §1547

[2] Miranda v. Arizona, 384 US 436 (1966).

[3] Commonwealth v. O’Connell, 521 Pa. 242, 555 A.2d 873 (1989) (emphasis added)

Crystal L. McLaughlin Joins The Skeen Firm as a Partner

FOR IMMEDIATE RELEASE: May 12, 2020

Crystal Lee McLaughlin joins The Skeen Firm PLLC as Partner

Washington, Pennsylvania: The Skeen Firm PLLC today announced that Crystal Lee McLaughlin will be joining The Firm as a Partner, chairing the Family Law and Criminal Defense practices, effective May 7, 2020. 

Crystal is joining the firm following a successful career in the corporate sector. She brings with her a unique blend of prior practice experience and a passion for the law and justice.  Crystal is committed to utilizing technology to make our client’s experience easier as she will be working to establish and grow The Skeen Firm’s Family Law and Criminal Defense practices. Additionally, Crystal will help launch the Bankruptcy practice and help expand our growing Estate Planning practice. 

“I am excited to join The Skeen Firm and return to my first love of practicing law,” says Crystal. 

Crystal graduated from The University of Mississippi with a Bachelor’s degree in English, minoring in mathematics.  She was awarded her Juris Doctorate from Mississippi College School of Law, where she received an American Jurisprudence Award in Trial Practice.

“I am excited to add Crystal to the firm as a partner, chairing the Family Law and Criminal Defense practices,” says Brocton G. Skeen, Principal/Attorney at The Skeen Firm. “Crystal’s prior practice experience, combined with her unwavering professionalism are the perfect mix in a law partner. I look forward to watching and helping her grow a successful practice.”

About The Skeen Firm PLLC: The Skeen Firm is a law firm that advises clients  in the areas of estate planning, business, oil and gas/energy, family law, criminal defense, and bankruptcy across Pennsylvania. We focus on giving everyday legal advice for the everyday resident of Pennsylvania. For more information visit: www.theskeenfirm.com

The PPP Compliance Puzzle

Few things are certain in these unprecedent times. One thing is. Forgiveness under the Paycheck Protection Program (PPP) is likely subject to heightened scrutiny. What are some steps small businesses can take now to ensure proper PPP compliance?

These basics do not guarantee any particular results. They are the start of a plan to move forward and measure against. Planning and execution in all phases are essential to success. Ensuring compliance with PPP is no different. 

Small business success is our passion at The Skeen Firm. Call us at 724-550-6970 for a free one-hour consultation about your business questions. 

*Disclaimer: this article is for informational purposes only. It is not providing legal advice. It does not create an attorney-client relationship. 

LLC filings are easy and cheap—true protection is priceless.

You filed Articles of Organization for your own LLC, saving yourself a lot of money. Great! Now you can run the business of your dreams without the fear of impact to your personal assets. Well, not completely.

Liability protection only exist if there is a corporate veil. A corporate what? The corporate veil assumes the business and its owners are separate entities. This separation is one of the major benefits of forming an LLC. So, how do you create it? 

Pennsylvania LLCs are not subject to the same formalities as corporations. The corporate formalities are instructive nonetheless. LLC owners should have an operating agreement. Like corporate by-laws, an operating agreement provides the framework of the LLC. 

New LLCs need start-up capital. LLCs should maintain enough capital to cover its debts. Capital goes to the LLC and not an individual member or manager. Directing it to them can create a commingling issue.

LLCs should maintain separate bank and credit accounts to avoid commingling. Separate accounts make it more difficult for creditors to prove individual liability. Note, this does not cover debts with personal guarantees.  

Whoa! Getting and maintaining liability protection is not as simple as filing Articles of Organization. 

Contact The Skeen Firm today if you have questions about your LLC. We are passionate about business success and asset protection. 

*Disclaimer: this article is for informational purposes only. It is not providing legal advice. It does not create an attorney-client relationship. 

152 Reasons to Call Us if You Have an Old Oil and Gas Lease

Thank you for your attention. Note: this article does not contain 152 separate reasons to call if you have an old oil and gas lease, only one. That reason is Act 152 of 2014 (Act 152), or the Recording of Surrender Documents form Oil and Gas Lease Act. Act 152 requires Lessees to provide a surrender document to Lessors when an oil and gas lease expires. While plain in intent, Act 152 can get blurry in execution. 

As lease bonus prices rose, companies scrambled to hold leases by production. This often-left landowners in the lurch. This dynamic created a tug of war. At one end of the rope were companies clinging to leases with favorable terms for them. At the other was landowners looking to cash in during the boom. The opposing interests caused a stalemate for the two sides. In 2014, the General Assembly stepped in to break the stalemate. Act 152 was the end result. 

Section 4 of the Act provides relief to landowners when companies do not cooperate. Step one involves Lessor providing notice that their lease is no longer valid. Lessees then have 30 days to challenge this notice. If a Lessee fails to make a challenge, a Lessor will record an affidavit of termination, expiration, or cancellation. Once filed the affidavit deems the lease terminated, expired, or cancelled. (58 Pa. Stat. § 904.) This framework does give landowners a solution to situations companies used to ignore. Compliance with the Act’s nuances is the best way to ensure success. Landowners with a legacy lease, or who are unsure of their lease status, should contact an attorney to discuss their options.

Contact The Skeen Firm today if you feel Act 152 applies to your legacy lease, or with general oil and gas questions. 

Phone: 724-550-6970

Email: info@theskeenfirm.com

*Disclaimer: this article is for informational purposes only. It is not providing legal advice. It does not create an attorney-client relationship. 

PPP Guidance Changes

We are here to help your small business as PPP guidance changes. Contact us today at 724-550-6970 or info@theskeenfirm.com if you have any questions.

SECURE Act - Searching for a Stretch

The SECURE Act, short for Securing Every Community Up for Retirement Act of 2019, took effect in January 2020. Congress’ intent in passing the SECURE Act was to expand retirement options, particularly 401(k)s through small businesses and for part-time employees. Further, it opens avenues to protect retirement income by offering annuities through 401(k) plans. This means….Other improvements include postponing the required minimum distribution (RMD) age to 72. It also allows traditional IRA owners to make contributions indefinitely. All of these changes are geared to help Americans grow and preserve their retirement accounts. 

For all the good the Act brings, it did eliminate what was colloquially known as the Stretch IRA. What exactly was the Stretch IRA? The Stretch IRA was a strategy used to expand the distribution timeline and reduce the tax burden of a non-spouse that inherited a Traditional IRA. Using the previous guidelines, a non-spouse inheriting a Traditional IRA would take distributions at a rate based on their life expectancy and not the original account owner’s. 

Stretching out the distribution timeline allowed the new owner to essentially defer taxes, while simultaneously allowing the investment to grow. This strategy was radically altered under the SECURE act, which requires a non-spouse inheriting an IRA to distribute the full value within ten years of the date of inheritance. Doing so creates a multitude of tax consequences and ultimately benefits the government in new revenue generation. Please note, this does not impact those non-spouses inheriting before January 1, 2020. It also will not apply to a list of excepted recipients, including spouses, children who have not reached the age of majority, disabled or chronically ill, or similarly aged recipients. No matter what your current situation or designation, there are still workarounds and innovative ways to tax plan for your estate, regardless of estate size. It is more important now than ever to review your beneficiary designations, asset blends, and overall family plan. 

Contact us today at 724-550-6970 or info@theskeenfirm.com if you have questions regarding your estate plan and how the SECURE Act will benefit or impact your particular situation.   

*Disclaimer: this article is for informational purposes only. It is not providing legal advice. It does not create an attorney-client relationship. 

Essential Estate Planning - The Legal House Protecting Your Family

Essential Estate Planning: the legal house protecting your family

A house and a sound estate plan have tremendous similarities that do not immediately meet the eye. Both are comprised of a firm foundation to build on, solid walls to protect all sides, and a roof to shelter when the proverbial sky is falling. But a house is a legitimate structure and an estate plan is just a bunch of legal documents with no foundation, walls, or a roof.  What gives? The analogy unfolds below.

Foundation – The Will

Houses are built on a poured or laid foundation if they are truly built to withstand the constant surface shifts.  A foundation supports all of the structural weight of the home. Foundations prevent walls and floors from separating and shifting.  Essentially, they provide a control platform.

Similarly a Last Will and Testament functions as the foundation in an essential estate plan. How so? A Last Will and Testament gives the testator control of how their assets, both real and personal, are distributed after their death and probate process.  (More on the probate in later posts.)  Thoughtful planning with a will provides peace of mind for who retains custody of minor children, who takes the family home, how assets are divided, and other considerations.  It is the foundation of a compressive plan. Essentially a will is a control platform. 

So what happens if someone dies intestate (without a will)? Dying intestate subjects your assets to state distribution statutes.  A more thorough discussion of intestacy is planned for a subsequent post, but in short if you die intestate you lose control of everything you build during your lifetime. 

Walls – Durable Power of Attorney

With a firm foundation laid, the next step in building a house involves framing walls and expanding the home upwards. Walls protect against whatever, in most normal cases, the outside world can throw at a home. They are flexible enough to withstand high winds and other unpredictable weather. Security is a core human need.

A Durable Power of Attorney (POA) in many ways acts as the walls within your estate-plan. Having a POA in place protects and allows your interests to continue as normal should something catastrophic occur without having to go to court for the appointment of a guardian. As your Agent, the person must act and protect your best interest. Like walls on your house, a POA protects against the unpredictable nature of life and adds security.

Roof - Healthcare POA and Living Will

Atop every home is a roof.  Similar to walls, roofs protect against nature’s unpredictability. It also ties the walls together helping to hold them in place. Often out of sight and out of mind a roof provides protection from the proverbial “sky is falling” situations. 

In the simplest of terms, a Healthcare POA and Living Will serve as your last line of defense in crisis situations. Like the POA mentioned above, the Healthcare POA gives your Agent the power to make health care decisions that are in your best interest should you become incapable of doing so for yourself. The caveat with this set of documents is the Living Will portion that sets out specific instructions for how critical medical situations are handled. These combined documents are your last line of defense in any “sky is falling” situation.

Contact The Skeen Firm, at 724-550-6970 or info@theskeenfirm.com, today if you feel like your Estate Planning “house” is not in order. With free consultations and preliminary reviews of existing plans there is no better time than now to secure your family’s future. 

*Disclaimer: the advice provided is for informational purposes and is not intended as legal advice.  It should not be relied on, nor construed as creating an attorney-client relationship. 

The CARES Act and Doing Our Part

The breakdown below is provided by the U.S. Chamber of Commerce. If you have questions regarding the eligibility of your small business, or just general questions regarding your small business, give us a call at 724-550-6970. We are all in this together and must do our part to help each other succeed.

Know Your Exit

Modern business conversations focus heavily on Start-Ups, thanks in large part to the success and rapid growth of many young companies. For each new successful IPO that comes to market there are a multitude of ventures that  simply fall short. Often the main reason for this failure is a lack of exit strategy. All new businesses start with a big hairy audacious goal (BHAG), then funnel that into a vision, then a mission, and ultimately a business strategy against which they will execute. Few, however, contemplate how to exit and truly generate ROI for investors. 

In the following series we will examine multiple methods to extract value from your business. When advising small business owners, I ask that they develop three loose scenarios to cover what I consider three end points for continued success of their business. From these scenarios,  we can work on defining potential exit strategies and selling price targets. The three initial targets are: do nothing, grow and transition, and all out sale at a desired price. Each present unique advantages and disadvantages and produce different exit strategies over the life cycle of the business. In theory, this is a constantly moving target based on where you and your business are in the growth cycle. 

The do nothing strategy works for owners who are sole proprietors or want to keep a small number of employees. In businesses where the founder is essentially the business, this model would make sense. Following it would result in growth that increased equity, which would get distributed as the owner moves to fund their retirement. This would essentially result in liquidation as the distributions occur to allow for long term, post career planning. 

The grow and transition strategy is a little less disruptive and suitable for sole proprietors and any other entity form of small business. Executing this strategy requires transition planning, buy sell agreements, and thoughtful distribution planning. Where do nothing will result in an end of your business, grow and transition allows your business to continue while you step away. In doing so, the pay will shift from a salary to primarily owner distributions. It will also allow any employees to continue operating the business as normal.

The last of these three generic categories is selling your business, whether to another private company or to the public through an initial public offering (IPO).  Similar to growing and transitioning your business, selling your business means it gets to live on potentially in perpetuity. There are a myriad of potential issues with either selling privately or taking a company public, but both produce high ROIs for initial investors and you, the founder. In a sale scenario you might no longer have a position, or might lose ultimate control once the deal closes. In going public, you will have a Board of Directors to answer to and market targets to hit. However, given the opportunity to cash in as an owner, and continue with business as mostly normal, may make many of these issues seem trivial. 

Regardless of the option, it is imperative to consider your exit strategy at or near start up because it provides a long-term target to execute against. From this initial loose target, you can develop more sophisticated plans to fit your business needs. Contact us today at 724-550-6970 or info@theskeenfirm.com to discuss this integral part of your business. 

*Disclaimer: The advice provided is for informational purposes and is not intended as legal advice.  It should not be relied on, nor construed as creating an attorney-client relationship.

Your General Counsel - Start-Up

Your General Counsel – Start-up

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