October | 2021 |

The Britney Spears
conservatorship:
How it applies to everyday people!

You may have heard of the controversial Britney Spears conservatorship, which controls her life and finances. You may have even wondered “Could this happen to ‘everyday’ people?” or “How does this apply to me?”

In a nutshell, Ms. Spears (age 39) has lived under a conservatorship since 2008, after several public meltdowns that were captured by the media. For more than a decade, Ms. Spears’s father, oversaw much of his daughter’s financial and personal life as one of the conservators. The appointed conservators have control over everything from Ms. Spears’s mental health care to where and when she can travel. In fact, the #FreeBritney movement, a campaign by fans, portrays the conservatorship as a money-hungry machine intended to exert control over Ms. Spears.

The current court battle revolves around control over Ms. Spears’s estate. After extensive litigation, in September of this year a judge suspended Britney Spears’ father, Jamie Spears, from his role as conservator of her $60 million estate. “I believe that the suspension of [James Spears] is in the best interest of the conservatee, Ms. Britney Spears,” Judge Brenda Penny said. “The current situation is untenable.” In removing Jamie Spears, Judge Penny also approved Britney Spears’ choice of a CPA to assume control of her finances as her conservatorship winds down. The next hearing is set for November 12th, where the full termination of the conservatorship will be considered. Spears’ current lawyer has said that the “hope and expectation” is that the conservatorship will be terminated on that date with no order for any further mental evaluation.

What exactly are conservatorships?

Conservatorships are designed to be a necessary last resort to protect the vulnerable. These are complex legal arrangements in which a judge appoints an individual or organization to care for another adult (known as a conservator) who is deemed unfit to care for themselves or to manage their own finances. Conservatorships are typically used for people who have a severe cognitive impairment. Often those people are older, such as those with severe dementia, or those with significant developmental disabilities.

There are two types of conservatorships: general and limited. A limited conservatorship is established for an adult who needs the assistance of another party to handle their finances and other affairs. General conservatorships are granted to those who are elderly or have been impaired by an illness or accident.

(Note: In California, “guardianship” refers only to the court appointment of an individual with the legal authority to represent and manage the affairs of a minor child. Conservatorships are for protecting incapacitated adults and typically involve matters related to health care and estate.)

What are conservator responsibilities?

A conservator over the estate is responsible for marshalling, protecting, and managing the conservatee’s assets that remain in their estate. A conservator reports to the court that appointed them and is monitored by the supervising judicial court in the county in which the conservatee permanently resides.

Why challenge a conservatorship?

Once the court establishes a conservatorship, it can be difficult to terminate it. A conservatee would have to demonstrate that it’s no longer necessary, which would generally require proving mental competency is no longer an issue. It can also be argued that the conservatorship was wrong or unjust, which requires proving that the order was obtained due to fraud, misrepresentation, mistake, excusable neglect, or misconduct of a party (among other reasons). If the conservator has neglected to perform their duties, mismanaged the estate, or for some other reason is not suitable to continue serving, removal and replacement is an option.

Can damages be recovered?

A conservator will be expected to act reasonably in making decisions and managing the conservatee’s funds, and if negligent in doing so, may face liability. If the conservator has misappropriated assets/funds, including for personal use, civil litigation can be enacted to recover these losses (and possibly use of forensic accountants to identify a financial trail).

Protecting – or challenging – conservatorship

Conservatorships are designed to be useful legal tools to protect the vulnerable. If you’d like to make this happen for your loved one, you need good attorney. If, on the other hand, you believe a current conservatorship should be challenged, you also need effective legal counsel. In either situation, please contact Mortensen & Reinheimer, PC at (714) 384-6053 to make an appointment, or use our online contact form. Our website is http://www.ocestateplanning.net.

About the author:
Noah B. Herbold, Attorney, is a Certified Specialist in Estate Planning, Trust & Probate Law (The State Bar of California Board of Legal Specialization). His primary focus is assisting clients with litigated matters such as: Trust Contests, Breach of Trust, Fiduciary Appointment and/or Removal, Asset Ownership, Beneficiary Rights, Determination of Heirship, Elder Financial Abuse, Property Disputes, and Conservatorships. Contact Noah at noah@ocestateplanning.net.

Webinar: “Estate Planning – Secure Your Legacy”

Dear clients:

Our co-founder, Tamsen Reinheimer, is speaking at an upcoming webinar on “Estate Planning: Secure Your Legacy” on November 9, 2021 at 10:00 AM. Would you like to attend?

Topics to include:

What new laws might affect your estate plan?
What are the biggest mistakes people make?
Actions to take now

Please note that this seminar is hosted by Benefit Financial Services Group (not affiliated with Mortensen & Reinheimer, PC).

Register here for this complimentary event.

About the speaker:
Tamsen R. Reinheimer, Attorney, is a Certified Specialist in Estate Planning, Trust & Probate Law (The State Bar of California Board of Legal Specialization). She has significant experience in all aspects of estate planning, trust administration, and probate. Contact Tamsen at tamsen@ocestateplanning.net.

Bookkeeping Systems: 10 ways it can be crucial to the success of your clients – REFs

Bookkeeping Systems:
10 ways it can be crucial to
the success of your clients

bookkeeper

Bookkeeping is the recording of a business’ daily transactions. It is one of the few services that every company needs. Bookkeepers issue invoices to customers, record and monitor accounts receivable, verify invoices from suppliers, process payroll, create basic financial reports, and complete other important tasks to keep a business running smoothly.

If you know, or suspect that your client’s bookkeeping system needs help (and is holding back their success), this article should help to identify what should be done.

10 ways bookkeeping should help a business:

MyCFO helps our clients in critical ways to improve their bookkeeping. We design and implement day-to-day bookkeeping procedures, then provide continuous oversight and training. Our goal is to reform our clients’ bookkeeping system to help with their accounting processes and overall management. Here are 10 ways that bookkeeping should be helping a business:

Gives extra peace of mind: When the books are complete and tidy, they won’t keep management up at night. They can rest easy knowing that the business’ financial information is ready to be reviewed when needed.
Aids with organization: Easy access to well-maintained records makes decision-making less stressful and requires less time.
Spotting financial trends: Through staying on top of the books and keeping regular financial records, management can identify trends and make adjustments.
Provide critical data for strategy: In order to plan for the future, a good understanding of the past is needed. Management can track the results with bookkeeping and adjust goals accordingly.
Shows key data for cash flow management: Outstanding accounts payable, as well as lagging accounts receivable, can be identified with a quality system. It’s this delicate balance of cash inflow and outflow that will keep a business going.
Helps in accurate budget preparation: When income and expenses are properly organized, it’s easier to review financial resources and expenses.
Makes tax preparation simpler: Instead of scrambling for receipts or invoices, all financial information is organized; a key side benefit is tax preparation costs will likely be less.
Dissemination of data to outside parties: Whether customers, investors, lenders, or even the IRS, being able to provide the information requested by these parties is vital.
Avoid late fees: By paying vendor invoices in a timely manner, a company can avoid late fees and keep good vendor relations.
Complying with loan agreements: If a line of credit is in place, it likely includes conditions involving certain financial ratios, such as current ratio and debt-to-income. Instead of just hoping these will work out, an effective bookkeeping system can help in making sure the business is in compliance.

If your client’s bookkeeping system isn’t doing all 10 of the above, it needs help!

Every year, the professionals at MyCFO work with businesses of all sizes, and in a variety of industries, to drastically improve their bookkeeping systems. Contact us today for a free initial consultation!

Bookkeeping Systems: 10 ways it can be crucial to the success of your clients

Your Bookkeeping System:
10 ways it can be crucial to
the success of your business

bookkeeper

Is your bookkeeping a mess? Do you know your current profitability?

If you know, or suspect that your company’s bookkeeping system needs help (and is holding back your success), this article should help to identify what should be done.

10 ways your bookkeeping should be helping you:

MyCFO helps our clients in critical ways to improve their bookkeeping. We design and implement day-to-day bookkeeping procedures, then provide continuous oversight and training. Our goal is to reform your bookkeeping system to help with your accounting processes and overall management. Here are 10 ways that your bookkeeping should be helping your business:

Gives you extra peace of mind: As a business owner, the last thing you want is bookkeeping issues weighing on your mind. When your books are complete and tidy, they won’t keep you up at night. You can rest easy knowing that your business’ financial information is ready to be reviewed when needed.
Aids with organization: Easy access to well-maintained records makes decision-making less stressful and requires less of your time.
Spotting financial trends: Through staying on top of your books and keeping regular financial records, you can identify trends and make adjustments.
Provide critical data for strategy: In order to plan for the future, you need a good understanding of the past. You can track the results of your strategy with bookkeeping and adjust goals accordingly.
Shows key data for cash flow management: You can see outstanding accounts payable, as well as identify lagging accounts receivable. It’s this delicate balance of cash inflow and outflow that will keep your business going.
Helps in accurate budget preparation: When income and expenses are properly organized, it’s easier to review financial resources and expenses.
Makes tax preparation simpler: Instead of scrambling for receipts or invoices, all of your financial information is organized; a key side benefit is your tax preparation costs will likely be less.
Dissemination of data to outside parties: Whether customers, investors, lenders, or even the IRS, being able to provide the information requested by these parties is vital.
Avoid late fees: By paying your vendor invoices in a timely manner, you can avoid late fees and keep good vendor relations.
Complying with loan agreements: If you have a line of credit, it likely includes conditions involving certain financial ratios, such as current ratio and debt-to-income. Instead of just hoping these will work out, your bookkeeping can help in making sure your business is in compliance.

If your bookkeeping system isn’t doing all 10 of the above, it needs help!

Bookkeeping Systems: 10 ways it can be crucial to the success of your clients – PROSPECTS

Your Bookkeeping System:
10 ways it can be crucial to
the success of your business

bookkeeper

Is your bookkeeping a mess? Do you know your current profitability?

If you know, or suspect that your company’s bookkeeping system needs help (and is holding back your success), this article should help to identify what should be done.

10 ways your bookkeeping should be helping you:

MyCFO helps our clients in critical ways to improve their bookkeeping. We design and implement day-to-day bookkeeping procedures, then provide continuous oversight and training. Our goal is to reform your bookkeeping system to help with your accounting processes and overall management. Here are 10 ways that your bookkeeping should be helping your business:

Gives you extra peace of mind: As a business owner, the last thing you want is bookkeeping issues weighing on your mind. When your books are complete and tidy, they won’t keep you up at night. You can rest easy knowing that your business’ financial information is ready to be reviewed when needed.
Aids with organization: Easy access to well-maintained records makes decision-making less stressful and requires less of your time.
Spotting financial trends: Through staying on top of your books and keeping regular financial records, you can identify trends and make adjustments.
Provide critical data for strategy: In order to plan for the future, you need a good understanding of the past. You can track the results of your strategy with bookkeeping and adjust goals accordingly.
Shows key data for cash flow management: You can see outstanding accounts payable, as well as identify lagging accounts receivable. It’s this delicate balance of cash inflow and outflow that will keep your business going.
Helps in accurate budget preparation: When income and expenses are properly organized, it’s easier to review financial resources and expenses.
Makes tax preparation simpler: Instead of scrambling for receipts or invoices, all of your financial information is organized; a key side benefit is your tax preparation costs will likely be less.
Dissemination of data to outside parties: Whether customers, investors, lenders, or even the IRS, being able to provide the information requested by these parties is vital.
Avoid late fees: By paying your vendor invoices in a timely manner, you can avoid late fees and keep good vendor relations.
Complying with loan agreements: If you have a line of credit, it likely includes conditions involving certain financial ratios, such as current ratio and debt-to-income. Instead of just hoping these will work out, your bookkeeping can help in making sure your business is in compliance.

If your bookkeeping system isn’t doing all 10 of the above, it needs help!