John C. Saylor, LLC - Attorney at Law

04/08/2026

The First National Bank of Mom and Dad.

Last couple of weeks I've shared scenarios about owner financing the sale of your home or your business. We discussed some potential pros and how it can become an income stream through retirement. How it can help the next generation step into ownership. And in the right situation, how it can allow wealth to stay within the family instead of flowing to a bank.

Since posting, I've learned those two posts led to several conversations around dinner tables all over the Shoals. I also received a surprising number of phone calls and emails on the subject. Many asked the same question, “If we’re helping our kids buy a home or business, can we charge 0% interest?”

It sounds generous and like a win-win. But there is an issue many people do not discover until after the paperwork is signed.
The IRS generally does not recognize 0% loans as truly interest-free.

Under federal tax rules, when money is loaned at below-market interest, the IRS may treat the lender as if interest was charged anyway. This is called imputed interest. In practical terms, that means the lender may owe taxes on interest income that was never actually received.

I recently spoke with a couple who wanted to help their child purchase a home. They proposed: 0% interest, 30-year repayment with simple monthly payments. Their goal was to make ownership affordable and keep the interest within the family. Completely understandable. But without proper structuring, the IRS may still calculate a minimum interest rate and treat that amount as taxable income to the parents. Needless to say, Banker Mom and Dad were shocked.

Fortunately, the solution is usually straightforward. The IRS publishes minimum interest rates called the Applicable Federal Rate (AFR), which changes monthly. When family loans or owner-financed sales are structured using at least the minimum required rate, the imputed interest problem is generally avoided. Even better, the AFR is often significantly lower than commercial lending rates. Meaning: The buyer often still pays less interest than a bank would charge. The seller receives predictable retirement income. And the transaction complies with IRS rules. In some cases, families may also consider gifting funds annually within federal gift tax exclusion limits, depending on the broader estate planning picture.

Like the Silver Tsunami discussion, the larger point is this: Many people own assets that can do more than simply sit idle or transfer someday through probate. For example, a paid-off house, a closely held business, or investment property. When structured thoughtfully, these assets can sometimes: create retirement income, help the next generation step into ownership, keep wealth within the family, preserve stability for employees or family members But these strategies work best when they are planned intentionally, and specific emphasis placed on the interest rate, proper documentation, tax rules, and family expectations. Done correctly, owner financing can create flexibility and opportunity. Done casually, it can create unintended tax consequences.

As with the last two posts, this is not advice for everyone. It is simply an example of options people often do not realize they have. The common theme remains the same: start the conversation early, while options still exist, while relationships are strong, and while decisions can be made thoughtfully instead of urgently.

As always, if you like this post and found it helpful, please LIKE and SHARE. If you have any questions about business and estate planning, please call me at 256-740-3131 or email to [email protected] to schedule an appointment.

“No representation is made that the quality of the legal services to be performed is greater than the quality of the legal services performed by other lawyers.”

“Hiring an attorney is an important decision which should not be based solely on Facebook posts or advertising. The information you obtain at my page and or website is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.”

03/12/2026

It’s called the “Silver Tsunami”, and its already made landfall.

This is a conversation I’m having more and more often with business owners. It goes like this:
Owner: “I’m thinking about retiring.”
Me: “That’s great. What’s the plan for the business?”
Owner: (long pause) “My kids don’t want it. I don’t know what to do.”

I hear some version of this conversation far too often.

A business owner spends 30 or 40 years building a company.
-They employ local people.
-They serve their community.
-They create something meaningful from the ground up.
-But when retirement approaches, there’s no clear successor.

The children who grew up around the business, and who benefited from the success of the business, often watched their parents work nights, weekends, and holidays. Many chose different careers, and they don’t want to run the company.

So now the owner faces a difficult question: What happens to the business? How do I cash out?

Economists call this the “Silver Tsunami.”

Nearly half of U.S. small-business owners are over age 55, and analysts estimate 2–4.5 million businesses will need new ownership over the next decade as baby boomers retire (Forbes; Harvard Business School research).

At the same time, 60–80% of owners have no formal succession plan. Small businesses are the backbone of the American economy. According to the U.S. Small Business Administration, they employ more than 62 million Americans and generate about 43% of U.S. GDP.

What often develops is what I call a doom-loop scenario. Because there is no exit plan, the business becomes the owner’s retirement plan. The owner keeps working because the income is still needed. But eventually the owner is tired, the business slows down, and potential buyers become harder to find.

A perfectly viable business slowly begins to stall.

But here’s the part people often miss: Many of these businesses are still very good businesses.
• They have customers.
• They have revenue.
• They have employees.
• They simply need new leadership.

For entrepreneurs willing to step in, this creates a remarkable opportunity. However, the biggest barrier is usually the same question: Where does the buyer get the money to buy the business?

Bankers, close your eyes and cover your ears for this part…

One of the most common solutions is owner financing, where the retiring owner finances all or part of the purchase price over time. Instead of needing a large sum of money upfront, a buyer can acquire an established business and pay the seller from the business’s future cash flow. For the retiring owner, this can work very well. Rather than relying on a single lump-sum payment, the seller converts the business into a structured stream of payments over time, with interest. In many cases, this approach allows the owner to retire while still receiving income generated by the company, they spent decades building.

Seven Practical Advantages of Owner Financing:
1. Higher potential sale price due to a larger pool of buyers
2. Steady retirement income stream through installment payments
3. Interest income earned on the financed portion of the sale
4. Tax advantages through installment-sale treatment in many cases
5. Greater likelihood the business actually sells compared to cash-only deals
6. Ability to choose and mentor the successor, preserving employees and customers
7. Security protections through promissory notes, collateral, and personal guarantees

Done properly, this can create a hugely successful win-win outcome.

The owner gains a path to retirement. The buyer gains an operating business. Employees keep their jobs. Customers keep the business they trust.

Over the next decade we may see one of the largest ownership transitions in American economic history.

Handled poorly, many businesses will simply close. Handled well, it becomes a generational handoff of successful local companies. The key is simple: start planning early.

With the help of an experienced business attorney, these transitions can often be structured in ways owners and entrepreneurs never realized possible.

As always, if you found this information useful, please LIKE and SHARE my page (https://www.facebook.com/attorneyjohnsaylor/reviews) and Google page (https://g.page/r/CdQNpeUcWctKEBM/review).

Also, if you are a business owner or an up-and-coming entrepreneur and want to discuss your options contact me at 256-740-3131 to schedule a day and time to discuss your specific circumstances, or visit www.johnsaylorlaw.com.

Disclaimers:
“No representation is made that the quality of the legal services to be performed is greater than the quality of the legal services performed by other lawyers.”

“Hiring an attorney is an important decision which should not be based solely on Facebook posts or advertising. The information you obtain at my page and or website is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.”

02/01/2026

Your House Might Be the Best Retirement Plan You Own

Last week I shared an estate planning scenario that sparked a lot of conversation. That tells me something important: people are hungry to talk about real options, not just legal documents.

So let’s look at another scenario.

First, a quick disclaimer.
I’m not a tax professor or a Wall Street planner. I’m a small-town Alabama lawyer who spends most days helping ordinary folks with ordinary assets — a paid-off home, maybe a second piece of property, some non-probate retirement savings, and a genuine desire to take care of their family and themselves in the final chapters of life. Nothing extravagant. This is just a conversation starter.

Here’s the scenario.

A couple in their early 70s.
Their house is paid for.
They’re thinking about downsizing.

They could sell it the usual way and put the money in the bank for themselves or for heirs (that is upon their passing.)

Or…

They could sell the house by owner financing — either to an adult child, a grandchild, or even a non-family buyer.

No bank.
No lump sum.
Monthly payments instead.

The minimum interest rate is set at least at the IRS minimum required rate, called the Applicable Federal Rate, which changes monthly.

The buyer gets a home they likely couldn’t qualify for at today’s bank rates, predictable payments, and a chance to build equity.

The sellers get steady retirement income, a secured promissory note, a recorded mortgage, and an asset that keeps working for them instead of sitting in an account.

In the right situation, a house becomes more than just property.
It becomes a retirement income stream.
An estate planning tool.
And a way to help someone else become a homeowner.

Instead of just an inheritance someday, it creates stability today.

But this isn’t a magic solution.
Taxes matter.
Long-term care planning matters.
Family dynamics matter.
Default risk matters.

Done wrong, this can create stress instead of security.

So this isn’t advice for everyone.
It’s simply an example of the kinds of options people don’t realize they have.

My point is the same as last week.
1) There are more tools than just “leave it in a trust and hope for the best.”
2) There are more choices than waiting until it’s too late to plan.

And the biggest mistake I see is not having the conversation at all.

Start the conversation now.
While you still have options.
While the house is paid for.
While the decisions are still yours to make.

As always, if you have any questions concerning your personal estate planning needs, please call me at 256-740-3131 or email to [email protected] to schedule an appointment.

“No representation is made that the quality of the legal services to be performed is greater than the quality of the legal services performed by other lawyers.”

“Hiring an attorney is an important decision which should not be based solely on Facebook posts or advertising. The information you obtain at my page and or website is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.”

01/30/2026

Estate plan gone wrong:

Father dies at 81. $2.7M estate. Three adult kids.

He set up a trust in 2002. Never updated it.

Kids can't touch principal until age 65. They're currently 52, 49, and 46.

The trustee? His brother who died 6 years ago. Nobody caught it.

Now a bank is the successor trustee. Charging $36,400/year in fees.

The trust references his "wife" getting income. She died in 2015. He remarried in 2017.

His second wife gets nothing. The trust still pays his first wife's estate.

His 52-year-old daughter is a teacher. Makes $78K. Renting an apartment.

She gets $14K/year from the trust but can't access principal to buy a house.

The trust was written when his estate was $800K. Nobody adjusted for $2.7M.

"Dad was so careful about planning."

23 years ago. Tax laws have changed many times. His family changed twice.

He spent $5K on that trust in 2002. Never spent another dollar reviewing it.

Now his kids are paying attorneys $40K to petition the court for trust reformation.

The court might fix some of it. Decanting could help. But it's expensive, time-consuming, and not guaranteed.

They're not fighting over money. They're fighting a document written for a different family in a different tax code.

Your estate plan has an expiration date. Just because it's signed doesn't mean it still works.

Two points:
1) Review your estate plan every few years and with any major life change (births, deaths, marriage, divorce) .
2) Update now, or your kids will pay to fix it in court later.

01/26/2026

01/02/2026

As we look back on 2025, we’re grateful for a year focused on steady improvement, service, and community. It’s easy to overlook that our firm is a small business too, navigating many of the same challenges faced by the individuals and small businesses we serve every day.

Like most small businesses, we were intentional about improving our technology, productivity, and efficiency, knowing that better systems allow us to better serve our clients. Along the way, we invested meaningful time in continuing legal education, with a focus on emerging technology, construction and tort law developments, ethics, and practical skills that directly impact the advice we give and the work we do each day.

Equally important, 2025 reinforced the value of giving back. We’re thankful for the opportunity to support NW Alabama Toys for Tots and the Marine Corps League, and for the many people who make that work possible. Special thanks to Curtis and Barbara Griffith, Big River Broadcasting, Halley Phillips and team, our hundreds of donors and prayer warriors, and the Marine Corp League - Conley Detachment volunteers who give so generously of their time and energy.

None of this happens without a great team. We’re deeply appreciative of the most supportive staff a firm could ask for, Clerease Simmons and Angela Thornton, and our outstanding co-counsels Rennie Moody and Kelly Alvarez. It’s a privilege to work and collaborate with people who care deeply about doing things the right way.

Thank you to our clients, referral partners, and our Shoals community for being part of our 2025. We look forward to continuing the work in 2026.

As we head into this new year, we’d love to hear from you: what’s one lesson 2025 taught you, or one personal or professional goal you’re carrying into 2026?

12/12/2025

Final CLE of 2025!!! It’s a great day for Tort Law Updates. Tort law is where the law meets everyday life, it quietly shapes how we treat one another by assigning responsibility for harm, compensating those who are injured, and incentivizing safer conduct across society. Today’s CLE is a reminder, if folks want to stay off Santa’s naughty list and not become a tort defendant, a little care, courtesy, and common sense go a long way.

12/12/2025

🚨 TOYS FOR TOTS UPDATE FROM RIGHT HERE AT HOME 🚨

As of this morning, 2,350 children in our community need help this Christmas.
Not across the state. This serves Lauderdale, Colbert, Franklin, and Winston Counties.

We need more toys.......

🎁 We have until Saturday to make a dent—new, unwrapped toys and cash donations are needed NOW for our Toys for Tots drive. Every single gift puts a little more magic back into a child’s holiday.

If you’re able, even in a small way, please help.
Our team will even do the shopping for you if you'd prefer to donate—just let us know.

📍 Drop-off locations:
• Big River Broadcasting Studios – 624 Sam Phillips Street, Florence (off Veterans, across from the Coliseum)
• John Saylor, Attorney at Law – 215 W Dr. Hicks Blvd, Downtown Florence
• FINAL COLLECTION EVENT TOMORROW at Deibert Park – Toys for Tots on-site 10:00–2:00

✨ Bring the kids and grab a FREE photo with Santa Manley, courtesy of the Florence Police Foundation & Florence Parks & Recreation.
Please share. Please give if you can.
Let’s make sure no child in our community is forgotten this Christmas. ❤️🎄

12/12/2025

🎄 TOYS FOR TOTS — FINAL STOP!

We’ll wrap up our toy drive on Saturday, December 13th at Deibert Park from 11:00–1:00 — during the FREE community event with the Florence Police Foundation!

We’ll be out collecting new unwrapped toys and cash donations, and Santa Manly will be onsite for FREE pictures with Santa! 🎅✨
(Just bring your own camera or iPhone!)

Come out, enjoy the event, grab a photo with Santa, and help us finish strong for local kiddos this Christmas. 🎁❤️