Law Offices of Lawrence H. Jacobson A Professional Corporation California Expert Witness | Expert Testimony | Consultant for Real Estate & Malpractice 2026-06-04T15:19:37Z https://www.lawrencejacobson.com/feed/atom/ WordPress /wp-content/uploads/sites/1103263/2021/05/cropped-LHJ-siteicon-512px-transparent-32x32.png On Behalf of Law Offices of Lawrence H. Jacobson A Professional Corporation <![CDATA[Succession: It’s more than a television show]]> https://www.lawrencejacobson.com/?p=48805 2026-06-04T15:19:37Z 2026-06-04T15:19:37Z When many people hear the word “succession,” they immediately think of the popular television show about a wealthy family battling for control of a business empire. While the drama makes for entertaining television, real-life business succession involves far more practical concerns.  For business owners, succession planning is one of the most important steps in protecting the future of a company, employees and family members.

What is business succession planning?

Business succession refers to the process of planning for the transfer of ownership, leadership and management responsibilities when an owner retires, becomes disabled, passes away or otherwise leaves the business. Without a clear succession plan, even successful companies can face uncertainty, operational disruptions and internal conflict. Many owners spend decades building a business, but postpone discussions about what happens next. Some assume family members will naturally take over, while others expect a future sale to solve the issue. Unfortunately, failing to create a formal succession strategy often leads to confusion, disputes and financial losses when a leadership transition occurs. A succession plan typically addresses several important questions. Who will manage the business if the owner can no longer do so? Will ownership transfer to family members, key employees or outside buyers? How will the business be valued? What funding mechanisms will support ownership transitions? Addressing these issues in advance can help avoid costly disagreements later. Stable transitions often preserve business value and reassure stakeholders that operations will continue smoothly despite changes in leadership. An experienced business succession legal team can help owners identify goals, evaluate transition options and create documents that support long-term stability. Unlike television drama, effective succession planning is not about conflict or power struggles. It is about creating a thoughtful roadmap that protects the business, preserves relationships and helps ensure that years of hard work continue to benefit future generations.]]> On Behalf of Law Offices of Lawrence H. Jacobson A Professional Corporation <![CDATA[What does a change in state law mean for California trustees?]]> https://www.lawrencejacobson.com/?p=48801 2026-05-22T03:19:50Z 2026-05-22T03:19:50Z A change to California law that took effect with estates being administered in 2026 can make things a bit easier for trustees and beneficiaries – and bring California probate procedures regarding trusts more in line with the rest of the country. The amended law states that if a trust beneficiary is being “virtually represented” by another beneficiary in relatively simple trust proceedings, the person being represented doesn’t have to receive notice of proceedings as long as their representative does. This was not the case in the past.

How the scope of representation has expanded

The law states, “Unless otherwise represented, a minor, an incapacitated person, a person subsequently born, or a person whose identity or location is unknown and not reasonably ascertainable may be represented by and bound by another person having a substantially identical interest with respect to the particular question or dispute.”  This expands the scope of who can represent others. In the past, the relationship was limited to those already legally established, like parent-child and conservator-conservatee. The change helps streamline and simplify the process for providing notice of proceedings for relatively limited or uncomplicated matters. It also prevents the need to seek legal codification, like a guardian ad litem for minor children and others being represented. There are restrictions on who can represent another beneficiary. For example, the representative can’t have a conflict of interest with the person they’re representing.

Full notification may still be the safest way to proceed

Trustees and others helping to administer a trust can still provide full notification to all beneficiaries, regardless of their ability to participate in proceedings. This can help avoid unintended consequences, like someone having an undisclosed conflict of interest. Some wealth managers say that the change in the law was made in part to make California a more appealing state in which to set up a trust. States like Nevada, Delaware and even Tennessee currently offer a number of advantages that draw out-of-state wealth. As with any change in probate law, it’s worthwhile for personal representatives and other administrators to have sound legal guidance to help ensure that they understand how this modification affects them and the best course of action as they carry out their fiduciary duties.]]> On Behalf of Law Offices of Lawrence H. Jacobson A Professional Corporation <![CDATA[Get the business valuated when critical events occur]]> https://www.lawrencejacobson.com/?p=48798 2026-05-11T12:33:42Z 2026-05-11T12:33:42Z Significant life events can create sudden uncertainty for closely held businesses. When a partner experiences a divorce, death or other major transition, the value of the business often becomes a central question. A current and defensible valuation helps protect the company, the remaining partners and the partner’s family during these moments. A valuation provides a clear picture of the company’s financial health. In a divorce, courts may need to determine whether a partner’s ownership interest is marital property and how much that interest is worth. Without an updated valuation, the business may face disputes over income, assets or goodwill. A reliable valuation can help reduce conflict by offering an objective number supported by financial records and accepted valuation methods.

When a business partner dies

A business partner’s death can also trigger the need for a valuation. Many operating agreements include buy‑sell provisions that require the surviving partners to purchase the deceased partner’s interest. These agreements often rely on a predetermined valuation method or require a valuation at the time of the event. An accurate valuation ensures that the partner’s family receives a fair price while allowing the business to continue operating without disruption. Valuations are also important when partners retire, exit the business or transfer their ownership interests. Regular valuations help businesses plan for taxes, succession and long‑term growth. They also help partners understand the financial impact of major decisions before they occur. Because valuations rely on financial statements, market conditions and industry data, they should be updated periodically. Business owners benefit from routine valuations because they provide clarity during unexpected events and support smoother transitions when ownership changes.]]> On Behalf of Law Offices of Lawrence H. Jacobson A Professional Corporation <![CDATA[When your best successor may not be a family heir]]> https://www.lawrencejacobson.com/?p=48796 2026-04-28T14:00:38Z 2026-04-28T14:00:38Z Why family may not always be the best management choice Keeping the business in the family can feel important. At the same time, leadership requires skills and commitment that not every family member brings. Some heirs have no interest in daily operations. Others want the role but lack experience managing people, handling risk or maintaining key relationships. When you evaluate a potential successor, you may want to consider whether that person:
  • Has led teams within the business
  • Exercises sound financial judgment
  • Maintains strong client and vendor relationships
  • Understands operations and risk exposure
  • Demonstrates consistent accountability
Selecting a successor based only on family ties can place pressure on both the business and your relationships.

Considering a current employee

A trusted employee often brings practical value that is difficult to replace. This person may already understand your operations and how your team works together. They may have earned trust over time by handling pressure, making sound decisions and keeping the business running during demanding periods. That experience can support a more stable transition. Clients often prefer continuity, and employees respond well to leadership they already respect. You do not need to choose between family and business interests. You can separate ownership from management, which allows your family to retain financial benefits while a capable leader handles daily operations.

Family ownership and legal structure

Your family can retain ownership while a qualified employee manages daily operations. This approach preserves wealth and continuity without placing a relative in a role they are not prepared to handle. To support this structure, your plan should rely on clear legal documents that define roles and set expectations, including provisions that:
  • Define how ownership interests will transfer over time
  • Establish who will control major decisions
  • Set compensation and incentive structures
  • Protect the interests of family members
  • Clarify how disputes will be resolved
These measures create structure, reduce the risk of conflict and help the transition proceed as intended.

Protecting your legacy and your business

There is no single model for succession. The right choice depends on your goals, your family and your business. In some cases, a family member will lead. In others, a trusted employee will take that role while your family retains ownership. What matters is choosing someone who can sustain the business and protect what you have built.  ]]> On Behalf of Law Offices of Lawrence H. Jacobson A Professional Corporation <![CDATA[Avoiding business disputes with a proper buy-sell agreement]]> https://www.lawrencejacobson.com/?p=48794 2026-04-23T02:34:39Z 2026-04-23T02:34:39Z A buy-sell agreement is essentially a business’s exit and continuity plan. It sets the rules in advance for what happens when an owner leaves, retires, becomes disabled, passes away or simply wants to sell their share. Instead of scrambling during a crisis, you already have a legally binding roadmap in place. This legal document is often what keeps companies from falling apart during transitions.

Key provisions that prevent conflict

The strength of a buy-sell agreement lies in its details. Some crucial provisions that you should get right include:
  • Valuation method: Clearly define how the business will be priced when the time comes, so no one argues over fair value.
  • Trigger events: Outline exactly what situations activate a buyout, such as death, divorce, retirement or bankruptcy.
  • Funding mechanisms: Explain how the purchase will be paid for, often through insurance or structured payments.
When the agreement terms are precise and unambiguous, there’s far less room for disagreements or unnecessary legal disputes down the road.

Don’t wait for a crisis to get organized

Too many business owners wait until conflict shows up before thinking about structure. By that time, your options are often limited, emotions are running high and decisions that should be strategic start to become reactive. The fallout can be costly, both financially and operationally. Experienced guidance can be essential in establishing clear legal frameworks to protect your business during uncertain times and reduce the risk of disputes that strain valuable relationships.]]> On Behalf of Law Offices of Lawrence H. Jacobson A Professional Corporation <![CDATA[Why estate planning now includes your digital life]]> https://www.lawrencejacobson.com/?p=48791 2026-04-07T08:52:43Z 2026-04-07T08:52:43Z For many people, some of the most important parts of life no longer live in a filing cabinet or a desk drawer. They exist behind login screens, password vaults and cloud accounts. From financial management to family photos and personal communications, a person’s digital life can be just as valuable and meaningful as physical property. Yet it is often one of the most overlooked parts of an estate plan.

Your digital footprint may be larger than you think

Digital assets can include far more than social media profiles. Online banking portals, investment accounts or cryptocurrency wallets may all become difficult or even impossible for loved ones to access without proper planning.  The problem is not about simple convenience. If a person becomes incapacitated or passes away, family members may struggle to locate accounts, retrieve important records or preserve valuable digital property. In some cases, even close relatives cannot legally gain access without clear authorization and properly drafted estate planning documents. A well-rounded estate plan should account for both traditional and digital assets. To share access to your accounts, you must first gather an inventory of login information, such as:
  • The website URL or name
  • The email address used to create the account
  • The username or email associated with that account
  • Your password
  • Answers to any security questions for that account
  • Any regular payments made under that account
By securely storing login information, naming a trusted person to manage digital affairs and ensuring legal documents clearly authorize access when needed, you can help reduce confusion, avoid unnecessary delays and make an already difficult time more manageable for the people left handling your affairs. Planning for the future now means thinking beyond bank statements and real estate deeds. If you want to make sure your digital life is protected and accessible when it matters most, it may be time to speak with an experienced legal professional.]]> On Behalf of Law Offices of Lawrence H. Jacobson A Professional Corporation <![CDATA[Asking a chosen party to be your executor]]> https://www.lawrencejacobson.com/?p=48789 2026-03-19T11:08:07Z 2026-03-19T11:08:07Z It’s not uncommon for people to discover they have been named an estate’s executor after the death of the testator (the person who created the will). This often leads to more confusion during a time of grief, which can potentially affect one’s ability to serve capably.  After identifying the person you believe is best suited to administer your estate, it’s crucial to inform them. Here is how you can do this:

Preparation

Before meeting with your chosen party, prepare the documents that will help them understand your estate and their role. These include a detailed record of your assets and liabilities, as well as the contacts of the professionals on your team. Such information helps them understand the complexity of the estate and that they have access to experts. You can then set the meeting. Choose an ideal time, when both of you have adequate time for the discussion, and a location that’s quiet and private. 

The conversation

Be gentle and clear during the conversation. Start by telling them you have selected them to be your estate’s executor and why you chose them. Then, help them understand the role. Let them know the duties they will be assuming immediately and later. Moreover, explain your estate to them. Share the documents you gathered and inform them where your items are stored. It’s also vital to be honest about your family dynamics, for instance, potential conflicts.  Encourage your chosen party to ask questions throughout the discussion and finish by telling them they can take time before responding. The initial conversation with your chosen executor is critical. You want to help them understand the role and manage their expectations. Once they accept, you should officially nominate them in your will.  ]]> On Behalf of Law Offices of Lawrence H. Jacobson A Professional Corporation <![CDATA[3 common commercial lease terms landlords might violate]]> https://www.lawrencejacobson.com/?p=48787 2026-03-02T21:18:38Z 2026-03-02T21:18:38Z A commercial lease is a binding agreement between a property owner and a business tenant. Business leaders sign leases to acquire office space, a retail shop or an industrial facility. Business leaders often need assistance negotiating appropriate terms in their leases and enforcing those terms if the landlord does not voluntarily uphold them. What common commercial lease inclusions can lead to disputes between tenants and landlords because landlords do not uphold the lease as they should?

1. Force majeure clauses

Force majeure clauses allow for the early termination of a lease in unusual circumstances where the company cannot continue operating. Landlords may try to fight lease terminations under force majeure clauses, as they may want to demand payment for the remainder of the lease’s duration.

2. Exclusive use clauses

An exclusive use clause prohibits a landlord from leasing another unit to a business offering similar goods or services. If a landlord signed the lease with a new tenant that might diminish an existing tenant’s market share, they may need to contest the landlord's decision to rent a nearby space to a similar organization.

3. Lease assignment closes

Provided that the lease allows for assignment, the tenant can locate another company to assume the remainder of their lease. Landlords sometimes interfere in this process in the hopes of compelling the current tenant to pay the remainder of their release and then securing additional revenue by renting to a new business. Evaluating the circumstances that could constitute a breach of the agreement can help commercial tenants hold landlords accountable. Entrepreneurs and executives may need support when dealing with a dispute with the landlord over their refusal to uphold the terms included in the commercial lease.]]> On Behalf of Law Offices of Lawrence H. Jacobson A Professional Corporation <![CDATA[Is ownership transfer the same as management transition?]]> https://www.lawrencejacobson.com/?p=48785 2026-02-18T11:59:23Z 2026-02-18T11:59:23Z Many business owners think ownership transfer and management transition are the same. They often happen together, but they are not the same step. Knowing the difference helps you protect your business, your team and your plans. This matters in family-owned or investor-backed companies.

What ownership transfer means

Ownership transfer means you change who legally owns the business. This usually means shares or equity change hands. This can happen through a sale, a gift, a trust or a buy-sell agreement. In California, companies track this in their own records, such as a stock list or an LLC member list. When you sell your shares, you give up your right to profits and your right to vote on major company decisions. The California Secretary of State does not track share ownership. Your company keeps this information in private records and tax documents. Ownership transfer answers this question: Who legally owns the business value?

What management transition means

Management transition focuses on who runs the business each day. You can still own the company but step away from daily work. Many owners move into advisor roles while a new CEO or manager takes over. In California, management changes often require state updates. If you change officers, directors or LLC managers, you must file a Statement of Information. This public record tells the state who can sign contracts and make big decisions. Management transition answers this question: Who has the power to run the business each day?

Planning today to protect your business tomorrow

Ownership and management can overlap, but they do different jobs. Ownership controls financial rights. Management controls daily leadership and public authority. Speaking with a California business attorney can help you plan both. An attorney can review company rules, help with state filings and help you build a clear plan. Early legal help can lower confusion and help your business stay stable.]]> On Behalf of Law Offices of Lawrence H. Jacobson A Professional Corporation <![CDATA[Protecting your family from business risk]]> https://www.lawrencejacobson.com/?p=48783 2026-02-16T17:11:57Z 2026-02-16T17:11:57Z As a business owner, you know that you will have to take risks. This risk may include simply seeking financing and taking out business loans. The future can be unpredictable, but you hope that your debt levels will be sustainable and allow the company to grow. One thing that sometimes holds business owners back is that they are worried about the impact debt can have on other areas of their lives. From a strictly professional perspective, you may be willing to take on loans, believing that your financial projections are correct, that you have properly analyzed your target audience and that the company will make enough money to pay those loans back without problem. But you may be concerned that, if things do not go the way that you hope, it could create instability for your family. A business owner does not want to lose their family home, for example, because of financial risks they took for the company.

Choosing the correct business structure

Often, there are ways that you can insulate your personal life—and your personal assets—from this risk. You do not necessarily have to worry about losing your home, your retirement savings and other important assets. For example, rather than running a company as a sole proprietorship, where you would carry personal liability, you may be interested in starting a limited liability company (LLC). Under this setup, creditors are able to seek payment from the business, but only the company is responsible for paying off those loans. Your personal assets, such as your home or retirement savings, are out of reach for creditors. This helps to demonstrate why it is so important to know exactly how to structure your business from the very beginning. It can help to work with an experienced law firm at this time.]]>