Latest / The SmallBizChat with Melinda Emerson / Protecting Your Business Assets for Future Generations with Tracey L. Gordon

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Protecting Your Business Assets for Future Generations with Tracey L. Gordon · The SmallBizChat with Melinda Emerson

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I always tell with people, you don't make a will when you get old.
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You make a will when you get an asset.
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And assets are not just physical things.
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They're not just houses, cars, They have collection, businesses, etcetera, etcetera.
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Your assets is minor children.
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If something happens to you and your husband, who's gonna take care of your children under
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18, if you're not allowed to take care of them.
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If you have disabled children, who was, who was gonna take care of that child when you're no
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longer there?
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3, 2, 1, 0, ignition.
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Lift off.
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Ending small business failure.
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Welcome to the small biz chat podcast with the number 1 small business spurt, Melinda Emerson.
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Melinda's goal is to end small business failure, and she'll give you the information
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you need to succeed and live the life you dream of.
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Now here's your host, the small biz chat lady herself, Melinda Emerson.
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Are you tired of feeling like you are a slave to your business?
1:08
Well, honey, I know exactly how you feel.
1:10
I'm a Linda Emerson, the small business lady, I wanna invite you to my free webinar.
1:14
The 12 piece of running a successful business is gonna be on Thursday, April 20th, at 2 pm
1:20
Eastern.
1:21
I'm gonna walk you through all the areas of your business that you need to tighten up so
1:25
that you can get back to the point where your business is serving you as opposed to draining
1:29
you.
1:30
Alright.
1:30
Sign up today.
1:34
Welcome back to the Small Bridge Chat podcast I'm Melinda Emerson, your host.
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Now it's time to talk about protecting your business and having some assets to pass down to
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the next generation.
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And my next guest is the honorable Tracy El Gordon, and she serves as a pillar of change
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for Philadelphia constituents for over 20 years.
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Her organizing and legislative success propelled her from the ranks of local
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grassroots leadership and advocacy to becoming Philadelphia's 1st African American register of
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wills.
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Her tireless dedication to the community have resulted in elect in election protection laws,
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citywide neighborhood cleanups, advocacy for seniors and youth, as well as property value
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increases and protection.
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As the register of wills, Tracy has implementing comprehensive probate reform To
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improve the quality of life for Philadelphia, for more information, you go to
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Philadelphia.gov/wills Tracy, welcome to the Small Bishop podcast.
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Thank you.
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Thank you for having me.
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Good afternoon.
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Well, I'm so excited to talk to you because you know, you have been, a a lifelong public
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servant.
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And so I know that you are now the register of wills, but how did how did you get interested
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in in serving the public?
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Well, around 5 years after I purchased my first home as a single parent, 4 children, I
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purchased a home in Southwest Philadelphia, and the neighborhood, to me, began to decline due
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to democrat demographics shifts.
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And so this concerned me because I always wanted my children to grow up in a clean state
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neighborhood.
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And I decided, you know, when I noticed the decline that I had to do something about it.
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And one of the things that we do here in Philadelphia to protect our blocks and
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neighborhoods is become block captains.
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So I started to become a block captain, and I started organizing right on my block, and I
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started recruiting block captains around my block because I knew my children would be
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playing around the corner because we live in row houses.
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And so from there, I just start organizing black cats.
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Captains, organizing cleanups, and becoming a volunteer at my my children's school so I can
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just make sure that they had an an a high quality of life.
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So that's how I got started into it.
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Now what is the register of wills?
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I mean, it's a title we've all heard for years, but what What do you actually do?
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Everybody
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asks that question.
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No one this office has been in existence.
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The the 1600s way before the, revolutionary war, way before the civil rights war.
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And it's called something different depending on what state.
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So I'm at Philadelphia in the state of Pennsylvania.
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So, basically, a lot of things I'm saying is based on the laws and the constitution in the
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state of Pennsylvania.
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I'm also the clerk of Wilson Court.
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So, the registrar Walls, what we do here is we oversee the transfer of generational wealth.
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In other words, when people die and they have wills, there's certain paperwork they need to
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bring in order to be able to get the assets of the deceased person.
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Most people think is an automatic transfer of wealth.
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There is no automatic transfer of wealth There's no just because you're the only child
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and your mother or father or your honor, uncle, verbally, commits, and says that, this is your
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things.
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There is a legal process that you have to go through called probate.
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So you have to go to your local register world's office and you have to, call and bring
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proof the one that you represent the estate, whether you have a will or not, and that person
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is even an executor or an executive trip, and you have to come with the actual proof of the
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will, the physical will, and which, ID showing that you are the executor and then proof of who
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the heirs are.
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So, basically, I am the one that will approve the will, legitimize the will.
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Even if you don't have a will, you need to come because my office is will you come get the
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paperwork so you can take it to the mortgage company and say, I represent this state, you
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know, you know, transfer, you know, just conduct a business because they're not gonna
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talk to you unless you show proof that you are the representative of this state.
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So for instance, if you own a house and you wanna leave it to your child, they can't just
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go over to the title company and say my mom got, transfer the title from my name to from
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her name to my name unless you come to my office first and open the state so you can get
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the proper paperwork.
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Then you go to the recorder deed, which is total different office and then you can show
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them, hey, here's the paperwork, you know, transfer everything in my name as to transfer
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everything into my name.
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Based on the will.
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Now if you don't have the will, that's a whole different other story.
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So then you have to come, and then you have to come and request a hearing so I can appoint and
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administrate it.
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When you have a will, you decide who's gonna be that executor in case of a male or that exactly
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tricks in case of a female, that person is the person that you place in your world that you
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want to conduct your business.
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So let's talk about will.
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So when should someone have a will prepared?
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When you're eighteen years old, you're able to conductor will.
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Anybody that's under 18, you know, you can't make a will.
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So eighteen years old basically is when, you know, you own things, people tell me all the
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time, you know, just to get somebody used to understanding the importance of how you
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transfer your generational wealth eighteen years old.
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I, many people, mostly rich people always tell me that they help.
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They they, you know, assist their children and make it a will so they can understand the
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process.
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I always tell with people, you don't make a will when you get old.
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You make a will when you get an asset.
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And assets are not just physical things.
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They're not just houses, cars, they have collection, businesses, etcetera, etcetera.
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Your assets as minor children.
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If something happens to you and your husband, who's gonna take care of your children, under
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18, if you're not allowed to take care of them?
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If you have disabled children, who was is who was gonna take care of that child when you're
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no longer there?
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So a simple estate planning that is not being taught in our schools, not really getting it
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being taught in our colleges.
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I graduated from Temple University with, with a business degree in risk management men in
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insurance, and I learned about all types of insurance, but no one ever told me about making
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wills.
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And that's your insurance to protect your generational wealth.
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So when you get an asset, that's when you make the will.
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So a will.
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Is that DIY thing?
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I mean, can I just go online and get get a template online and have somebody notar it?
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Is that the right way to do it, or should you actually have an estate lawyer help you with
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it?
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Best practice best practices.
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Go to a state attorney.
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Don't go to the attorney.
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That was your auto when you get an automobile, accident you're gonna go to an estate attorney
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or contact your local register and they have booklets to detail everything that you need to
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protect your generational wealth.
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I always tell people because I'm, you know, I'm not an attorney Don't go to your neighbor.
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Don't go to your eye.
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Don't go to the smart uncle.
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Go to an attorney, a state attorney is one of the most important decisions that you're gonna
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make in your life, and that's making a will because that protects your generational wealth.
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A welcome consists of these components.
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Of course, to date, you wanna name this is my last will and testament, and I am of sound
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mind.
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This is who I named as my executor.
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This is the person that is gonna have the copy of the will because you should keep the
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original and let people know where the original is.
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Some states actually let you register your will at the office before they die.
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In the state of Pennsylvania, we don't see the will until you die.
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So you have to let somebody know where the new world is.
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You have to let the executor or executor trips understand what their role is.
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Their role is to be to conduct the business.
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They're gonna bring the will, and they're gonna conduct the business.
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They're gonna take the will and get all of the paperwork necessary from my office and take it
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to get access to the assets.
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Once they get access to the access, then you and you will, you're gonna list all your
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assets, house car, businesses, and who they go to.
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Who are the beneficiary?
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The house goes to her.
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The business I want my business to solve me.
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You know, but the the executor is responsible of making sure all your debt is paid before the
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distribution of that wealth.
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So the best answer that I can say to anybody, William, and I'm telling everybody, best
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practice is to consult with an estate attorney because everybody has different situations.
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They may have been married before.
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They may have children and other from other marriages.
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They may have several businesses.
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So you wanna go to somebody that has a expertise in the state planning, and they will
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create that will for you for you to sign.
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So one of the things I always had somebody say is that the number one thing you wanna avoid is
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probate court, because probate just involves a bunch of fees and the state getting part of
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your estate.
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True or false?
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I would say boss.
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I would always tell people, and that it it
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was that personal attorney that tells you this?
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Because he stated it.
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It's just for years.
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It's just things I've heard people say for over and over again, avoid probate court if you
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can't.
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Yeah.
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There are ways that you can avoid it as a way how we use you you set your state up.
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But I always tell people because I'm not an attorney, and I'm not allowed to give out legal
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advice.
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You need to go to the attorney and say, hey.
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Listen.
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I how do I avoid this so they can tell you the rules?
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And so they can properly advise you.
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Because when you don't get the proper advice, people think they're gonna avoid inheritance.
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And then the so they don't propate.
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So then the house sits there or the property or the asset sits in the dead person name, and
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that becomes a problem because you cannot get access to anyone's access without opening up
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this state.
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There are legal ways around it, but you need to start to attorney because your situation is
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different from theirs and other people's and you need to talk to a state attorney and tell
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them what you want to do, and they will tell you how to do it.
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Now is it any different if you own a business or is a business just another asset?
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It's a yes.
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A business is your asset.
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That's that's your asset.
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Your cards, your asset, your stamp can anything that you own or have a ownership interest.
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That's your asset.
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And absolutely, you wanna make sure.
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Do you want to business dissolve once you die?
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I mean, I had a a a famous restaurant owner here in Philadelphia, and he wanted his
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business to be dissolved upon death.
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You know?
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And he had a state attorney, and he had a clad I will, and it finished the job.
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And they just did after the the debt was paid, it was distributed to however he wanted it, and
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he put a clause in it.
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If anybody, any of the beneficiaries can text this will, then they will be automatically
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written out the will.
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So, yes, your business is your asset.
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And and and and, you know, a lot of people die and and the kids don't have interest in the
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business.
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They may not even have interest in living in the house or owning the house that you've left.
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You know, you the the that's one of the things that you should automatically do when you get
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the owner business, when you have a child, when you get married, when you turn at 18, if you
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have assets, Make a will.
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Cause if something happens to you, you are the one that has the ultimate authority to decide
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who is gonna carry out your last your business because you can't carry it out because you're
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debt.
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You wanna make sure all your debt is paid.
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So you want to name that executor, and it may not be one of your children, or it may not be
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your oldest child.
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It may be the that middle child that you know is gonna take care of the business.
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So that's the most important part.
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It's the name that executor or executor that's gonna take care of the business.
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Some people pay a percentage to the executor.
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At least let them know some people are shocked.
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My aunt died and left me the executorists and never even told me.
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So they're forced to do something that they may not wanna do or may not be qualified to do.
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And, also, when best practice is name a alternative, because that witness that that
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executive, did you name, may decide they don't wanna do it, or they or they something happens
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to them, or they can't be found?
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Then you wanna name a alternative.
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And you also, when you make a will, you know, and you it filled up your Pennsylvania.
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We don't see the will until you guys.
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So you would make sure you keep it in a safe place, make a copy, and make sure people know
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where they will because all kinds of things happen when you're dot when you die.
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Or after your death.
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Alright.
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What is
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the best business advice you've ever received?
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The best business advice I've ever received was to buy a home.
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So my so so my children would have somewhere, you know, I would to live it is one of the best
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investments I've made.
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It's helped me as a single parent throughout my children and and, you know, they have somewhere
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safe and loving to live.
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And, and as a result, I have 4 kids and all three of them only businesses, and they only
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houses.
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And one is the one who wakes all in our house.
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Under the age of thirty.
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Good stuff.
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Good stuff.
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Well, thank you so much, Tracy.
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You you've been a wealth of information.
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Thank you all for joining me for this episode of the small business chat podcast.
15:41
If you're ready to grow your business, and you're looking to use email marketing.
15:45
Head over to Small Bizlady University.
15:48
I've got a great 6 week online course that'll put you in the right direction and start
15:52
closing more sales right away.
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Alright.
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I wanna leave you all with this.
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You never lose in business Either you win or you learn.
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I thank you for joining us, everybody.
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God bless.
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Are you tired of feeling like you are a slave to your business?
16:12
Well, honey, I know exactly how you feel.
16:14
I'm a Linda Emerson, the small business lady, and I wanna invite you to my free webinar The
16:18
twelve piece of running a successful business.
16:20
It's gonna be on Thursday, April 20th at 2 PM Eastern.
16:25
I'm gonna walk you through all the areas of your business that you need to tighten up so
16:29
that you can get back to the point where your business is serving you as opposed to draining
16:33
you.
16:34
Alright.
16:34
Sign up today.
16:44
Thanks for listening to the Small Biz chat podcast with Melinda Emerson.
16:48
Subscribe to this podcast, wherever you listen to podcasts, and join us next Wednesday for
16:53
more fantastic information and interviews.
16:56
You can find more sources and small business success strategies by visiting linda's website
17:02
succeed as your own boss.com.
17:04
Thanks again for listening, and we'll see you next week.