BPE Law Gold River California Business Law Blog | BPE Law2025-04-23T17:46:39Zhttps://www.bpelawblog.com/feed/atom/WordPressOn Behalf of BPE Law<![CDATA[Strong business contracts address the end of the agreement]]>https://www.bpelawblog.com/?p=471802025-04-23T17:46:39Z2025-04-23T17:46:39ZClarifying when the agreement ends
Each business relationship and contract has unique parameters. Perhaps a business wants to indefinitely lock in vendor services for weekly deliveries of specialty produce. The contract may potentially persist indefinitely in that arrangement.
Other times, the contract is likely to last a set amount of time. The company may require one year of accounting and payroll services or support for the duration of a single construction project. Contracts should include information about the duration of the agreement and when it might end on its own.
It may also be necessary to include terms regarding when and why either party can cancel the agreement before the scheduled end of the business contract. In some cases, the agreement might include provisions that require an attempt at alternative dispute resolution before either party prematurely cancels the agreement or initiates contract litigation.
Establishing terms for contract cancellation
Depending on the nature of the contract, it may be necessary for either party to provide a specific amount of advance notice regarding an intended cancellation. Requiring a 30-day notice is common. Requesting written notice of a pending termination can also be helpful.
Businesses might also impose certain penalties for early cancellations or the failure to fulfill cancellation terms. The contract might even include guidelines for renegotiating, renewing or extending the agreement. In some cases, the contract may include provisions that allow certain aspects of the agreement, such as a restrictive covenant, to remain in effect even after the working relationship between the parties ends.
Every working relationship has unique issues that may influence the best terms to add to a contract. Discussing company objectives and sources of exposure with a skilled legal team can help those establishing, renewing or canceling a contract ensure optimal organizational protection throughout that process.]]>On Behalf of BPE Law<![CDATA[Estate planning considerations for big tech workers]]>https://www.bpelawblog.com/?p=471782025-04-23T13:27:55Z2025-04-23T13:27:55ZEmployees at major tech companies in Northern California frequently receive compensation packages that go beyond traditional salaries. Stock options, restricted stock units (RSUs), performance bonuses and other equity-based incentives can significantly impact one’s long-term wealth and estate planning strategy. Without a tailored estate plan, much of that value could be lost to taxes, legal disputes or lack of direction. As a result, if you work in big tech and you either don’t have an estate plan in place or you haven’t updated an existing plan in some time, it’s going to be to your benefit to make some focused efforts now.
Key considerations
One of the most important issues you’ll want to address is the management of equity compensation. Stock options and RSUs are often tied to specific vesting schedules, tax implications and restrictions on transferability. It’s important to understand how these assets are treated upon death and whether they can be passed to heirs. Some stock plans may allow transfer upon death, while others may expire or become non-transferable. An estate plan should account for how and when to exercise options and how those assets will be distributed among beneficiaries.Another key consideration is tax planning. Big tech professionals often find themselves in high tax brackets due to their income and investment gains. Without careful planning, estate taxes and capital gains taxes could significantly reduce the value of the estate. Tools such as irrevocable trusts, grantor-retained annuity trusts (GRATs), or charitable remainder trusts (CRTs) may help mitigate estate and gift taxes while preserving wealth for future generations. Strategic gifting during your lifetime can also reduce your taxable estate while allowing you to witness your legacy in action.Finally, digital assets are also increasingly relevant in the tech space. Beyond traditional bank accounts and investments, many professionals in this field benefit from intellectual property and/or online business interests. These assets require specific instructions for access and transfer upon death. If digital assets are not addressed explicitly in an estate plan, they may be lost forever. Including a digital asset inventory and providing your executor with the proper permissions and knowledge to access them is going to be important as a result. If you work in big tech, your estate planning needs go beyond the basics. A one-size-fits-all approach won’t do justice to your financial situation or long-term goals. Partnering with a skilled legal team who understands the complexities of tech industry compensation and California law is, therefore, going to be wise. ]]>On Behalf of BPE Law<![CDATA[Can an HOA enact rules to prohibit short-term rentals?]]>https://www.bpelawblog.com/?p=471742025-03-26T14:53:47Z2025-03-26T14:53:47ZThere are limitations on HOA rules
Generally speaking, HOAs can enact many different types of rules that restrict the use of properties within the community. That being said, they must ensure that the rules they establish align with California state law and prior judicial precedent.
For example, the state limits how strictly HOAs can control rental housing. HOAs can establish rules that prevent a large percentage of owners from converting their homes to rental units. However, the lowest percentage currently allowable is 25%. Any attempts to limit home rentals that are stricter than that may not actually be enforceable.
Similarly, the law only allows for HOAs to limit truly short-term rental arrangements. HOAs can prohibit local property owners from renting their homes for less than 31 days. However, they cannot insist on a minimum three- or six-month lease.
Finally, property owners generally do not have to worry about the enforcement of rules implemented after they acquire the property. For the HOA to enforce restrictions on property owners, the owners have to be aware of and agree to the terms established by the HOA. Restrictions enacted after an investor acquires a property may lead to legal controversy in some cases.
Real estate investors considering renting out homes in an HOA community may need help reviewing restrictions on their use of the property. Ensuring that rental practices do not violate HOA policies can help protect aspiring landlords from legal conflict and costly enforcement efforts initiated by the local HOA.]]>On Behalf of BPE Law<![CDATA[How testators can keep their bank accounts out of probate]]>https://www.bpelawblog.com/?p=471662025-02-18T15:58:20Z2025-02-24T15:00:30ZAccounts can transfer directly to a chosen beneficiary
People trying to establish an estate plan generally want wills or trusts to address their most valuable property. They may also want to address other assets on an individual basis. There are unique solutions available for financial resources, including checking accounts, savings accounts and even retirement accounts.
Most financial institutions allow account holders the option of establishing a transfer on death or payable on death designation. By filing a special form with the financial institution, the account holder can arrange for someone else to directly assume ownership of the account after their death.
The beneficiary designated in the paperwork must physically go to the financial institution with state-issued identification and a copy of the death certificate. If they follow the right procedure, they can assume control of the account without it passing through probate court first.
There are other solutions for protecting financial assets available as well, such as using a financial account to fund a trust. However, that arrangement may limit the account holder's control over the funds unless they are a trustee.
Keeping valuable assets out of probate court can protect them from creditor claims and limit complications associated with estate administration. People with different resources may need to create robust estate plans that allow them to preserve those assets, and that’s okay.]]>On Behalf of BPE Law<![CDATA[Important annual business regulations for 2025 in California]]>https://www.bpelawblog.com/?p=471682025-02-19T03:42:41Z2025-02-19T03:42:41ZWhat obligations do businesses have?
Depending on the outcome of pending federal lawsuits, companies with opaque structures may also need to file a beneficial ownership information (BOI) report with the Financial Crimes Enforcement Network (FinCEN).
Corporations and limited liability companies (LLCs) operating in California may also need to file a Statement of Information with the California Secretary of State. Businesses also need to ensure that they comply with recent changes to state employment statutes. These include rules that allow workers to not attend meetings related to religion or political matters in the workplace.
The minimum hourly wage for workers increased to $16.50 at the start of 2025. The exemption threshold for overtime wages that applies to salaried workers has already increased to $68,640. New rules also expand the leave protections for victims of crime and their family members. Additionally, the state has updated the mandatory poster advising of whistleblower protections that employers must display.
There are many other new rules and annual requirements that may apply to certain types of businesses. There are special requirements for franchise operations, as well as new rules regarding how companies treat independent contractors and food delivery workers.
Tracking compliance with not just current federal and state laws but also statutes can be a full-time job. Many organizations rely on the guidance and support of outside counsel. Partnering with professionals who understand state and federal business regulations can help reduce the risk of non-compliance and help organizations protect themselves against fines and other potential consequences.]]>On Behalf of BPE Law<![CDATA[3 ways to address a business in an estate plan]]>https://www.bpelawblog.com/?p=471622025-02-18T15:40:08Z2025-02-18T15:40:08Z1. Choose a specific successor to inherit the company
Sometimes, individuals running small businesses or professional practices have already trained their replacements. A family member or professional acquaintance may have helped them run the business and may be capable of taking over after their passing.
Business owners frequently choose to leave the company to a specific person who may also run the organization in the future. Testators can accomplish that goal by including the business in a will or by arranging to transfer ownership as they prepare for retirement.
2. Establish a business trust
Maybe the owner of the business doesn't have a specific employee or family member who wants to take over the company. Perhaps they worry about loved ones fighting over the business or selling it for short-term profit and effectively destroying their legacy.
Establishing a business trust can give the owner more control over the long-term future of the company. They can name a trustee who is capable of managing the company to oversee operations. They can also name beneficiaries to receive proceeds when the company proves profitable. Trusts can also be helpful for those concerned about probate litigation, creditor claims or estate taxes.
3. Arrange to sell the company
Given that a business may be the most valuable asset an individual owns, they may want their loved ones to benefit from its overall worth. Leaving instructions for a personal representative to sell the business after the owner dies can be a viable solution.
Business owners can leave directions to divide the proceeds of the sale among specific beneficiaries. The company can enrich the lives of the people they love without forcing them to change jobs or take on the responsibility of business management.
Creating an estate plan that effectively addresses a business or professional practice requires careful consideration of every option available. Business owners often need help establishing documents that work effectively given their wishes and circumstances.]]>On Behalf of BPE Law<![CDATA[A checklist for those planning their estates]]>https://www.bpelawblog.com/?p=471592025-01-03T20:54:19Z2025-01-03T20:54:19ZIdentify beneficiaries and assets
The first step to take when preparing for estate planning is to create a comprehensive list of beneficiaries. Prospective beneficiaries may include direct family members, close friends and even charitable causes.
Testators may want to create a written list of who should receive assets from their estate. They need to know what property is solely in their name so that they can address it.
They may also want to make notes of any complicating factors, such as unstable marriages or health challenges, that might make a direct inheritance problematic. Finally, they may want to select candidates for positions of authority, including their personal representative.
Establish specific goals
Particularly when contemplating a personal legacy, testators have an easier time if they create specific goals. Perhaps they want to minimize how much property passes through probate court.
Maybe their top concern is preventing their family members from fighting about their inheritances or contesting the estate plan. The goals that someone has influenced what documents they need to use and what terms they include in those documents.
Select the necessary documents
Estate planning is most efficient when people already know what documents they want to draft. Many people decide to use a will as their main testamentary instrument. Some people choose a trust instead or in addition to a will.
It is also often beneficial to create documents that address medical incapacity and the challenges of advanced age. Advance health care directives and powers of attorney can be valuable inclusions in an estate plan. People may also want to leave letters of intent so that their personal representatives can better understand their wishes and perspective.
Review documents regularly
After sitting down with an attorney to draft specific documents, a testator needs to commit to regularly revisiting those documents. After any major changes in their family circumstances, health or finances, they may need to update their documents. Checking them for accuracy every few years can also help them correct outdated beneficiary designations or recognize when it may be time to replace a personal representative.
Gathering necessary information ahead of time, drafting appropriate documents and revising them occasionally are all key components of establishing and maintaining an effective estate plan. Testators who are fastidious in their approach to the process may derive more benefits than those who don't plan ahead before meeting with their lawyers.]]>On Behalf of BPE Law<![CDATA[Using severability clauses to strengthen business contracts]]>https://www.bpelawblog.com/?p=471562024-12-16T14:40:29Z2024-12-16T14:40:29ZWhat is a severability clause?
At its most basic, a severability clause serves to help increase the scenarios in which the contract remains valid and enforceable. Such clauses often include language that makes the rest of the contract enforceable even if a breach of one aspect of the contract occurs or the law changes to invalidate part of the contract.
Severability clauses may also include language allowing either party to correct or change the terms of a clause that become unenforceable or impossible to meet. For example, in a lease, a severability clause makes the overall agreement enforceable even if there are certain issues with the premises or a history of delayed payments. The lease does not simply end because the tenant fails to make on-time payments.
How do severability clauses help businesses?
There are many ways in which a severability clause protects a business. Should a delay in delivery or project completion occur, severability clauses allow for the adjustment of terms so that the contract remains valid.
They can also allow a business to enforce an agreement even if a minor breach has previously occurred. The ability to make reasonable adjustments to the agreement to reflect changing circumstances is also quite valuable. A severability clause is one of many important additions that can strengthen business contracts.
Including the right terms in business contracts and drafting custom agreements for each new major business undertaking can be worthwhile investments. Seeking legal guidance can help business owners and executives as they review existing agreements and customize contracts to better suit company needs.]]>On Behalf of BPE Law<![CDATA[Property tax law impacts on inherited homes in California]]>https://www.bpelawblog.com/?p=471532024-11-11T18:00:41Z2024-11-11T17:57:25ZHow has the law changed?
Until a few years ago, anyone who inherited a California home paid the same property taxes assessed to the deceased owner based on the home’s value when that owner bought it. For old properties that were worth far more in the current market, that could mean a very low tax rate on a very expensive property.
Not surprisingly, many people took advantage of this low rate (which could increase by no more than 2% annually) to rent out inherited property in order to take advantage of a nice income. That came to be known as the “Lebowski loophole” because the children of actor Lloyd Bridges and his wife (including The Big Lebowski star Jeff Bridges) did this – legally – with their late parents’ decades-old Malibu home.
That loophole was closed in 2020 when voters approved a proposition that requires a property value reassessment whenever a home is sold or inherited. If the beneficiary makes it their primary residence within a year of inheriting, they get a $1 million off the new assessed value for tax purposes. The goal was to get more properties on the market and out of the hands of people keeping them as rental properties for a tax advantage.
It's a lot to think about. However, it’s always crucial to consider the impact of any large inheritance on the person to whom it’s left. That’s just one reason it’s smart to have sound legal and other professional guidance during estate planning.]]>On Behalf of BPE Law<![CDATA[Do businesses have to formally register IP to protect it?]]>https://www.bpelawblog.com/?p=471512024-11-01T15:04:52Z2024-10-16T18:29:49ZRegistration is useful but not always mandatory
Depending on the type of intellectual property an organization has, formal registration might be necessary or might make enforcement easier. A new product or concept that may qualify for a patent typically requires formal registration.
Innovations are often not easy to protect if a business doesn't invest in the prosecution of a patent. Similarly, companies usually need to officially register trademarks if they want to prevent competitors from duplicating company logos and images that may serve as trademarks.
When it comes to copyright, formal registration is less important. Businesses typically receive basic copyright protection when they initially publish creative works for public consumption. Uploading a song to streaming platforms or sharing visual art on social media can constitute publication for the purposes of copyright protection. That being said, formal copyright registration typically makes it easier for organizations to combat copyright infringement by other parties.
Trade secrets often do not require registration but can also be relatively difficult to protect after infringement occurs. Organizations may need to be very protective of trade secrets by limiting who has access to the trade secrets that give them a competitive advantage.
Enforcement is different in every case
When an organization discovers that other companies have infringed on a patented idea, reproduced copyrighted materials or duplicated trademarks, enforcement actions are typically necessary. In most cases, the enforcement process begins with formal communication with the infringing party. What happens from there depends on the circumstances.
For many organizations, IP holdings provide a competitive advantage and play a key role in company branding. Having support identifying what forms of IP require registration and enforcing IP protections can help organizations protect their profit margins and market shares. Business owners and executives often need to consult with outside professionals to ensure they properly protect their IP holdings and take the right enforcement actions if infringement occurs.]]>