World Class Mergers & Acquisitions  |  For Companies $5 Million to $100 Million in Revenue

Mergers & Acquisition FAQ – February 2011

Q: How long do I have to rollover a retirement distribution?

A: You have 60 days to rollover a retirement distribution from the day that you receive the distribution.  Otherwise, the distribution, taken before the statutory distribution age, can be taxed and subject to a 10% penalty.

Q: What is the difference between a living will and healthcare power of attorney?

A: For all practical purposes a healthcare power of attorney gives the power to a proxy to make health care decisions in the event of your incapacity.  The living will is an effective document once you are permanently comatose or death is imminent.  Therefore, the health care power of attorney is a directive when normal life is possible beyond treatment.  The living will, on the other hand, becomes effective once normal, healthy life is impossible after treatment.

Q: Where is the best place to store estate plan documents?

A: The best place to store estate plan documents is in a location where others a) know of, b) can get into when the time arises, and c) is secure.  Storing the documents in a safe deposit box that a friend knows of can be a good place as long as that friend knows where to get the keys at.  The location would be known, able to be opened, and secure.  Hiding documents in a book or in a safe that nobody knows of or does not have the combination renders the documents useless to both you and those that are trying to help you.

By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors