January 2026 - Lonich Patton Ehrlich Policastri

Should Small Business Owners Plan for Retirement?

January 22, 2026/in Estate Planning /by Michael Lonich

Running a small business often means wearing every hat, from owner to manager, marketer, bookkeeper, and problem-solver… the list never ends. But with so much focus on daily operations, many business owners put long-term planning on the back burner, especially when it comes to retirement.

The truth is, small business owners should plan for retirement, and the earlier, the better. Your business may be thriving today, but a solid retirement plan ensures financial security for your future self and peace of mind for your family.

Why Retirement Planning Matters for Small Business Owners

Unlike traditional employees who may rely on employer-sponsored 401(k)s or pension plans, small business owners shoulder the responsibility of building their own nest egg. That makes intentional planning even more important.

Financial Security for the Long Term

Your business might be your biggest asset, but counting on it alone to fund your retirement can be risky. Markets shift, industries change, and transitions don’t always go as planned. A retirement plan helps diversify your financial future and provides stability no matter what happens with your business.

Protecting Your Family

Retirement planning often overlaps with estate planning. Without a clear plan, your loved ones may face difficult decisions about your business, finances, and long-term care. Preparing now helps ensure your family is protected and your wishes are honored.

Retirement Planning Options for Small Business Owners

When it comes to retirement planning, you have more options than you might realize, and many of the options outlined below are specifically designed for self-employed individuals and small business owners.

SEP IRAs

A Simplified Employee Pension (SEP) IRA is easy to set up and offers higher contribution limits than traditional IRAs. It’s a popular choice for owners who want flexibility and the ability to save more in profitable years.

Solo 401(k)s

If you’re a business owner with no employees (other than a spouse), a Solo 401(k) can be a powerful tool. It allows for both employer and employee contributions, making it possible to save significantly more each year.

SIMPLE IRAs

For businesses with a few employees, a SIMPLE IRA offers a streamlined way to help your team save for retirement while still being manageable for the employer.

Don’t Forget Succession Planning

Retirement planning isn’t just about money, it’s also about ensuring your business can continue smoothly when you’re ready to step back. Whether you’re planning to sell, pass the business to a family member, or wind it down, having a written succession plan helps avoid confusion, conflict, and financial loss.

Start Planning Today

If retirement planning has been on your “someday” list, consider this your sign to take action. Small business owners work hard to build something meaningful, and your retirement and legacy deserve that same level of care.

At Lonich Patton Ehrlich Policastri, we provide a number of financial-related services for small business owners, including business succession planning and estate planning. Contact us today to schedule your free consultation.

Disclaimer: This article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.

Does a Will Cover Child Custody?

January 14, 2026/in Family Law /by Gina Policastri

The addition of a child to the family is cause for celebration. As a parent, every part of your life changes – your world grows bigger, and your priorities shift. But along with the joy comes a profound sense of responsibility. You are committed to protecting this tiny, vulnerable person and their future, including making sure they would be cared for by the right people if something unexpected happened.

One question many parents have is whether their will can dictate who will take custody of their children. A will plays an essential role in expressing your wishes; however, it doesn’t control every aspect of child custody under California law. Understanding what a will can and cannot do can help you make more informed decisions for protecting your children’s future.

What a Will Can Do

A will allows you to name a guardian to take care of your minor children in the event of your death. For new parents, this is one of the most critical aspects of creating a will. There are two capacities in which a guardian may serve:

Guardian of the person: The responsibility for the child’s daily care, well-being, and upbringing
Guardian of the estate: Managing any inheritance left for the child.

You can name the same person for both roles or appoint different individuals for each one based on their strengths.

What a Will Cannot Do

Many parents are surprised to learn that naming a guardian in their will doesn’t automatically guarantee custody. The judge will give substantial weight to the parents’ wishes, but they must also evaluate what is in the child’s best interests. Therefore, they may reject the parents’ nomination if:

The nominee has a criminal history or substance abuse problems
There are credible allegations of past abuse or neglect
The nominee is unable or unwilling to take on the responsibility of guardianship
Another close relative petitions the court for guardianship, and they appear better suited for the role.

What if Only One Parent Dies?

If one parent dies, the child will stay with the surviving parent unless the judge finds them unfit. Even if you nominate someone else as guardian, the courts will not allow a will to override the surviving parent’s rights.

If both parents die, or the surviving parent can’t care for the child, the court will look to the will for guidance.

What if there is no Will?

About two-thirds of American adults don’t have a will. For parents with minor children, this creates a dilemma for California courts as they must determine guardianship with no guidance. This can result in family disputes as multiple relatives petition for custody. The worst part is the uncertainty it creates for the child who has lost their parents and is trying to process their emotions.

Beyond the Will

You want your wishes to carry as much weight as possible with the courts. In addition to naming a guardian in your will, consider writing a letter of explanation describing why you chose a particular guardian. You should also name a backup guardian in the event your first choice can’t fulfill the role. Creating a trust to manage your children’s inheritance helps ensure their financial security.

Our attorneys at Lonich Patton Ehrlich Policastri can help you draft a will, create a guardian plan, and set up a trust. We understand the importance of protecting your children’s future if something were to happen to you.

Contact us for a free consultation by calling 408-553-0801. By working with us, you will have peace of mind and the assurance that your wishes are legally sound.

Disclaimer: This article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.

What is the Difference Between Estate Planning and a Will?

January 7, 2026/in Estate Planning /by Michael Lonich

Most people know that they should have a will to make sure that their assets get distributed appropriately after their death, but is a will all you need? What is estate planning? Is there a difference between estate planning and a will? How do you know which you need?

What is a Will?

A will is a written document that outlines your wishes and provides detailed instructions for several things after your death, including:

The distribution of your assets
Who you want to be the guardian of your minor children
Appointing an executor who will carry out your wishes and administer your estate (i.e., pay outstanding debts and taxes)

A will only takes effect after your death, so it does not include provisions for how to manage your assets if you become incapacitated.

Everyone should have a will even if you do not have extensive assets. Without a will, a court will decide about asset distribution and guardianship issues.

What is Estate Planning?

Estate planning is an overall strategy for managing your assets, your health, and your legal affairs both during your life and after your death. Estate planning includes a will, but is much broader and helps with many additional issues like minimizing taxes and protecting your assets.

In addition to a will, estate planning often includes:

Trusts

There are many different kinds of trusts that help you manage your property and other assets, protect those assets from the probate process after your death, and provide various tax benefits. If you have minor children, establishing a trust is a great way to ensure that you can continue to provide for them long-term, especially if you have a special needs child.

Power of Attorney

A power of attorney document designates a trusted individual to make financial, medical, and legal decisions on your behalf if you are unavailable (e.g., out of the country) or incapacitated due to illness or age.

Healthcare Directives or a Living Will

Although it can be uncomfortable to think about, it’s important to clearly outline your wishes for medical treatment and care, if you are ever unable to make or communicate those decisions for yourself. Rather than leaving your spouse or other family members to have to make painful choices during a very emotional and stressful situation, you can choose for yourself about resuscitation, feeding tubes, pain management, life support, and end-of-life care.

Taxes and Other Financial Planning

An estate planning attorney can help you minimize the impact of taxes on your estate to help you maximize your enjoyment of it during your lifetime. They can also help you protect your assets in cases of divorce or bankruptcy. An estate plan also allows you to designate beneficiaries for all your accounts.

Estate Planning Customized to Your Goals

While having a will is important, it is just one piece of the whole puzzle. Effective estate planning allows you to provide guidance about your wishes after death but also if you become incapacitated, as well as helping you manage your estate now. The estate planning group at Lonich Patton Ehrlich Policastri (LPEP Law) can help you customize your estate plan to meet your goals of protecting your assets and your family both now and in the future. Call LPEP Law to schedule your free, no-obligation consultation to get started today.

Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.

January 2026 LPEP Spotlight: Jamaica Peralta

January 4, 2026/in 2026, Spotlight /by Lonich Patton Ehrlich Policastri