Saturday, October 31, 2015

Becoming Incorporated - The Pros and Cons Of Incorporation


So you currently have your own business and you're pondering over whether or not you should incorporate it, or carry on as a sole trader?

Before you make the incorporation decision, you need to consider all of the advantages and disadvantages that incorporating brings.

This article will set out to explain the benefits and downsides to incorporation, starting with the benefits ...

Benefits of Incorporation:

Personal Liability Protection

An incorporated company is a separate legal entity responsible for its own debts. Shareholders only have responsibility for servicing debts and liabilities up to the value of their equity in the Company.

Creditors of a corporation can only seek payment from the assets of the incorporated business and not from the personal assets of shareholders, directors and officers.

As a small business owner of a non incorporated company, your personal assets are at risk if your business fails to service it's debts.

Personal liability protection is therefore a major benefit of business incorporation.

However, owners forming new corporations with small amounts of invested capital may well be asked to provide personal guarantees that credit will be honoured to reduce the risk of the lender.

Also, owners of incorporated businesses are required to personally ensure that the company makes its required tax repayments.

Protection From Legal Action

As with personal liability protection from debts above, the personal assets of the company's owners is protected by the separate legal entity status in cases where the incorporated company faces legal action.

Note, incorporation does not protect a company's officers from liability and prosecution in cases where the company is found guilty of criminal negligence.

Tax Advantages

Some incorporated businesses can enjoy lower taxation rates following business incorporation compared with partnerships and sole traders. One way of achieving lower taxation is to minimise the salary paid to the owners to reduce higher rates of personal taxation, and draw income from the business in the form of dividends which are taxed at a lower rate.

Obviously professional advice from a qualified taxation expert should be sought in all instances as all personal circumstances are different.

Other taxation benefits of incorporation are that once incorporated, many additional items of expenditure become tax deductible. For example medical expenses, entertainment expenses, vehicle and travel costs, recreational facilities and pension costs all become tax deductible. This can be a significant cash benefit. In particular money placed in an approved pension plan is tax free as is the funds growth.

Raising New Capital

Once you've incorporated your business, the ability to issues shares simplifies the process of raising capital investment. It's also easier to get loans and other finance approved from financial lending institutions if you are an incorporated company.

Transferring Ownership

The existence of shares also simplifies the sale of your business in the future. Also should an owner or director die, the business can continue to operate indefinitely.

Business Credibility

Having the words Inc or Corp in your business name gives a positive perception of long term financial stability.

Disadvantages of Incorporation

Double Taxation

Once incorporated, earnings are subject to double taxation, whereby, company profits are taxed, and then the dividends paid to shareholders from the "net" profits are also taxed.

With a non-incorporated business, the income the owner receives from the business is only taxed once. Double taxation can be avoided if the corporation is registered as an "S-Corporation"

Statutory Compliance Costs

Compliance with legal and accounting requirements places a significant burden on companies in terms of staffing, cost and time. There are also fees associated with the initial company incorporation, and ongoing operations.

Loss of flexibility The separate legal entity status of incorporation also means that the company finances are separate from the individual's, therefore the individual cannot "borrow" money from the accounts of the corporation, and statutory requirements in general reduce the flexibility of what can and can't be done with the business and its finances.

The above are some of the key advantages and disadvantages that you as a business owner need to consider before you begin the process of incorporation. You should always seek legal advice as all cases are different.

Richard Taylor is an MBA and Company Director with a particular interest in small business start ups. Click on the following link to learn more about the benefits and disadvantages of business incorporation. http://www.incorporate-my-business.com
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Friday, October 30, 2015

Which Business Entity Is Right for You?



Entrepreneur Network partner Brittney Castro talks business types with attorney Jessica Olmon.

Thursday, October 29, 2015

By The People Fairfield CA



Rene talks about how By The People in Fairfield can help people with legal matters in an inexpensive way. See more at http://www.bythepeopleca.com

Monday, October 26, 2015

Estate Planning Tips for People Going Through Divorce


Divorce is stressful period of transition and change for most people. While there many things on which you will need expend your attention during this challenging time, you should not forget that your estate plan also requires addressing now that you've experienced this life change.

One of the first things you will want to do is update your will. Generally, your will names your spouse by name, so if you die and your will leaves a sizable inheritance to "John Doe" or "Jane Doe," then your executor (or the trustee of your trust) and the courts will be obliged to follow this instruction, even if this person is your ex-spouse. For many people, such an outcome might be especially frustrating and painful, so you should deal with updating your will promptly.

You will also need to go through any asset or account that has a death beneficiary destination on it to remove your ex. Recent court cases have ruled that, even if you divorce your ex and update your will, your ex will still receive the money from your life insurance or retirement account if you do not update the paperwork on those accounts. The single determining factor regarding who gets your transfer-on-death or pay-on-death accounts is the name on that account's death beneficiary designation form, so it is vital that you make sure you update each of these accounts.

Additionally, you'll want to tend to your powers of attorney and living will. Chances are, you do not want your ex managing your financial affairs or making healthcare decisions (including end-of-life decisions) for you after you're divorced. Executing new powers of attorney and a new living will is often a relative quick and straightforward process.

If you have a living trust, you should investigate updating this part of your estate plan, as well. For many people, their spouses may not only be beneficiaries of their trusts, but trustees, as well. A capable estate planning attorney can assist you with making the changes your trust needs to address your divorce.

Finally, you do not have to wait until your divorce is finalized in order to begin updating your estate plan. Even if you anticipate that your divorce may take several months or years to complete, you can (and should) start working on updating your estate plan right away. Keep in mind, though, that the law in every state says that you cannot disinherit your spouse so, even if your preference is to leave your ex nothing, you will not be able to make that happen until the divorce is final.

This article was written by Rich Lynn, Author for UPG America and is intended for general information purposes only. Some information may not apply to your situation. It does not, nor is it intended, to constitute legal advice. For more information about this and other estate planning matters, including additional estate planning related articles, visit our website at http://www.upgamerica.com. You may also find out more about the Legacy Assurance Plan, an estate planning assistance service offered by UPG America, at http://www.legacyassuranceplan.com.
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Sunday, October 25, 2015

Saturday, October 24, 2015

Divorce/Legal Seperation - By The People


BY THE PEOPLE can help with Uncontested Divorce or Legal Separation. For couples who can resolve their own asset and debt division and/or child issues, BY THE PEOPLE can prepare all of the necessary documents for you to obtain your divorce. We also do all of the filing and procedural work throughout the process.

Since we are a local company and file divorces every day, we can provide you with up to date information about filing fees and the local court systems. In California the minium time period for a divorce is 6 months from the date of service.

Legal Separation is the same process for the court and same documents needed.You will still need to address all of the same issues, the only difference is the end result. You will still be married, having dealt with all asset/debt division and child custody, visitation, support, and if you decide to go forward with a divorce, you will need to start over from the beginning.

Our fees to prepare all of your divorce or legal separation documents is $599.00 if there are minor children, or $499.00 if there are no minor children. The only other fee you will pay will be the filing fee for the court of $435.00. Our fee is due up front, and we accept cash, check or credit cards. The filing fee for the court is not due up front; it is due as soon as you are ready to file with the court. The paperwork is usually ready to file within a week of starting the process. The Court only accepts cash, check or money order for their fees.

When you are ready to get started with your divorce or legal separation at BY THE PEOPLE, you may make an appointment or come in as a walk-in to our office at 1371-C Oliver Road, Fairfield CA. We will have you fill out a worksheet that will give us the information we need about you, your spouse and the issues your need to address in your divorce. Most of our customer find it takes about 30 minutes to complete the necessary information in our worksheet. You may come in with your spouse or you may come in on your own to fill out the worksheet and begin the process. The choice is yours.

For more information, please visit http://bythepeopleca.com/

Friday, October 23, 2015

DIVORCE !!! Easier than you think? - By The People Fairfield CA



Rene goes over how a divorce does not always need to involve a full legal team. He explains the process of how By The People can help file the paperwork necessary for the courts. See more at http://www.bythepeopleca.com

Thursday, October 22, 2015

Cover Your Bases With Estate Planning


ESTATE PLANNING

Create a Will

As an original concept of estate planning, creating a will is a part of it. By writing a will, money and property are divided after someone's death. There is a living will, which relates to medical treatment and any procedures that must be adhered to in case the originator becomes extremely or deathly ill. Also, by taking responsibility for communicating--both properly and promptly--creates a more action oriented atmosphere that is destined to be organized, in comparison to no guidance for the future.

Issue Trusts

After someone's death, relatives and loved ones tend to be on end. In some cases, there are certain property rights and awards that must be issued out to these members. That is where a trust sets in. A trust is method of passing down funds to another, after one's death has occurred. There are many forms of a trust in action today; and they vary according to the specific needs of the person granting the initial trust (in most circumstances).

Power of Attorney

During estate planning, assigning a Power of Attorney is important. By addressing this issue, someone is nominated as the head honcho when you are not able. This applies to financial issues and personal matters (i.e. health).

Letter of Instruction

Moreover, a letter of instruction is another important document that must be created and developed. This kind of particular pass-down includes specific directives that your successors must adhere. In summary, a letter of instruction contains contact information (in the event of your death), which pertains to where important information, files, or safes are stored; and details that pertain to financial accounts, in addition to pass-downs about continuing activities.

Good Reasons for Estate Planning

When the responsibilities--of a grantor, etc.--are put into place, the numbers can be big, in relation to financial responsibilities, health decision leader, etc. As a result, governments and certain laws have been put into place, in order to assist families and associates passing things down. Before, without a will or any other lawful documentation, people and tribes had to go by what they were told, and what they had learned, while certain individuals were alive and/or on their deathbeds. Thereafter, conflict could occur because of possible misrepresentation, disbelief, and manipulative factors.

With that said, by attempting to be responsible and producing wills and trusts (estate planning), detrimental misguidance--concerning responsibilities--should be null if any. Ultimately, It is always a good idea to tinker with estate planning; cover your bases, before you are out for the count.

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Wednesday, October 21, 2015

Defining Legal Terms - By The People Fairfield CA



Rene goes over what types of questions they can help answer at By The People. A legal document preparation company.

See more at http://www.bythepeopleca.com

Tuesday, October 20, 2015

Living Wills Review: Five Reasons Why You Must Have A Living Will


Living wills and advance directives have lately become the hot topic of discussion with the case of the brain-dead pregnant women in Texas going to the courts to decide. While her individual rights versus Texas state law makes for a heated debate, the real question for most Americans and Canadians should be 'What happens if you don't have a living will and the unthinkable happens?'

Every year, thousands of people have an unfortunate accident that leaves them in an incapacitated state. This is where a living will comes into play. A living will, which can also be known as an advance health care directive or advance directive, is a set of instructions given by you, allowing for what types of medical intervention and treatment you would like to receive, if you are in a state of mind where you cannot make decisions for yourself. If you don't have a living will, you leave these decisions to someone else. So, there by itself, is the number one reason for having a living will. Now let's break down the other 4 major reasons why you should have a living will:

2. Avoid Family Fighting. Imagine what not having a living will could do to your family. If you haven't made the medical decisions that are usually addressed in a living will, depending on your state or province, often times it is left up to your family to make these pain staking decisions for you. Imagine your spouse having to decide whether or not to keep you on life support. Now imagine your mother, or brother, disagreeing with their decision. The emotional toll this can take on a family could be devastating. The case of Terri Schvaio often comes to mind. Back in 1990 she collapsed and fell into a coma for more than two months, and then was declared to be in a vegetative state. Years later, her husband made the decision, against her parents' wishes, to have her removed from a feeding tube. The argument went on for seven years. You can imagine the emotional toll your family would suffer in a similar situation.

3. The Medical Costs. In some cases when a person is incapacitated, the prolonged period of keeping a patient alive can outlast the medical insurance, leaving the extra costs to be paid by the patient's estate. Many times, when the decision is made by the spouse, or other family member, to artificially extend one's life, the medical costs involved can cause an extreme financial burden. It is not unheard of for families to end up losing everything because of this. If you were incapacitated, could you imagine your family losing their home, or possibly facing medical bankruptcy?

4. The Legal Costs. All it takes is for two family members to disagree and here comes the lawyers. This happens in many cases, like Terri Schvaio's, where lawyers for the disagreeing parties spend weeks, months, and even years, arguing for their side, all the while the costs are adding up. And eventually someone will have to pay those bills. Imagine the life insurance you left to protect your family, ending up in the hands of attorneys, all because no one knew what your wishes were. These situations happen all too often. You having a living will can avoid a catastrophe like this.

5. Peace of Mind. Simply put, when you have a living will, you are more likely to have the peace of mind of knowing that your wishes will be known, and that family members won't have to fret over whether or not they made the right decision. It is perhaps one of the most responsible, unselfish acts you can take by keeping the heart wrenching decisions out of the hands of your loved ones. If the unthinkable were to happen to you, there would be no reason to compound your family's suffering.

Now that you have the five major reasons to get your living will, you have to decide what to include in it. There are many points to consider, like if you should appoint a medical power of attorney (POA), where you would designate someone you trust to make decisions that may not have been covered in your living will, or adding a 'do not resuscitate' directive. These are some of the many items you will want to discuss with your family. Also consult your attorney for advice on your state's laws when drafting a living will.

I heard it said that having a will is like writing a final love letter to your loved ones to assure they get everything you want them to have. When you think of it in these terms, a living will would be an extension of that love letter, preventing unnecessary pain and hardships for your family, just in case you were to experience an incapacitated state for any length of time.

Gerard Cassagnol is a professional writer and has written several articles on legal issues of the day. He is an advocate for affordable legal representation and coverage in the USA and Canada. He has had a legal plan membership for over 15 years, and is now a marketer of legal plans and identity theft plans for individuals, families, and small businesses.
For more information about Individual and Family Legal Protection, please go to FREE Insider Report on Legal Protection
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Monday, October 19, 2015

Documents to Consider When Doing Estate Planning


There's nothing that can prevent someone from dying, since physical death is an absolute certainty that no one can escape. The fear for some people, though, is not what's going to happen to them after they pass on, but more on who's going to take care of their loved ones, especially if the people he'll be leaving behind are either very young children or are incapacitated, or both.

You can't have control of what's going to happen to you after death, but you sure can decide what's going to happen to your assets once that event transpires. It's called estate planning. This is the process by which a person (or even a family) arranges the transfer of his assets in anticipation of his death. And in estate planning, there are several documents to consider. Here are some of them:

Last will and testament - This document takes front and center in all the planning. This is the document that legally provides for the transfers of assets after one's death. It names a person to settle the estate, a trustee who will administer any trust established, and a guardian if there minor children. For those who die without having executed a will, they are considered to be 'intestate.' Under certain laws, if one is intestate, property goes first (or in major part) to a spouse, and then to children and their descendants.

Trust - Persons preparing a will and testament can execute either 'inter vivos' or testamentary trusts (trusts established through a will). The difference between the two is that with the former, assets are transferred into the living during the trust creator's lifetime, as opposed to testamentary trusts, where the transfer becomes operative at the time of death.

Durable powers of attorney - A power of attorney is the document that authorizes a designated agent to carry out financial and business transactions for the person that's establishing the document. This grants such agent to access bank accounts (and even brokerage accounts), deal with insurance companies, and even sell property. This effectively allows the agent to step into the shoes of the person he is assisting.

Healthcare power of attorney - This document is a form of a living will that is designed, among other things, to: provide instructions for the conditions should life-sustaining procedures be utilized, authorize who will make healthcare decisions, and ensure that the person chosen to make these decisions is given access to the executor's medical records during incapacity.

These are the important documents to take into account so a person can have the opportunity to make personal and financial decisions, both in life and after death, without the need for court orders.

Estate planning deals with certain legal issues, which makes it important for an individual to get the services of a lawyer while doing it. You can get attorneys estate planning at ClinchLongLetherbarrow.
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Sunday, October 18, 2015

Understanding of Probate - The Process of Assets Transfer After a Person's Death


When someone dies, his or her assets should go through probate. The probate process includes collecting the deceased's assets, paying off liabilities and necessary taxes, and administering property to heirs as per the will.

Probate of decedent's Will

During this process, authenticity of the deceased's will is to be proved in the court of law. Will of a deceased must be probated soon after his or her death. Nobody has a right to hold it back at any cost.
The decedent's attorney or the person possessing the will of decreased, will need to produce it immediately, or within the specified time. There are penalties for destroying or concealing the will.

Probate Proceedings

The procedure starts only when there is the involvement of an official executor. If you are well versed with the different kinds of laws that are involved, then you can submit your application to be the executor on behalf of the friends or relatives.
  • The first thing to do here is to file a formal request. The applications should be submitted in the local court of the same country, where the deceased lived the last days of his or her life. Along with filing the probation documents, you should also produce the original death certificate of the deceased.
  • After filing the documents in the court, it the next step is to inform the creditors of the deceased. You can advertise about the probate in the newspapers, or on any other such local media.
  • You can let the heirs and beneficiaries of the departed know about the probate process, by mailing the court notice to their respective mailing address or by emailing it to them. You will need to document every notification sent to the successors who are in the line, and submit them to the court before the probate process commences.
You can complete all the procedures within the nine months duration, which is after the date of death of your client. There are many benefits from letting your client know beforehand about what will happen with his or her possessions after death.
  • The distribution of property among the beneficiaries will take place only after clearing off the debts taken by the diseased from different sources.
  • The entire process will be completed with transferring of the deceased's possessions to the rightful beneficiaries.
The inheritance money will be handed over to the next successor in line in many ways such as, funeral expenses, debt and taxes, family allowances, costs of estate administration, etc.

Advance Inheritance LLC is one of the best financing companies in Los Angeles, CA. If you are looking for fast funding again the inheritance money that is due to you, Please visit http://www.advanceinheritance.com/. The entire process can be completed in 3-5 working days.
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Saturday, October 17, 2015

Why You Should Integrate a Family Trust with Your Business



Utilizing a Revocable Living Trust can be an affordable way to ensure your business passes effectively to your family or loved ones upon your death.

Tuesday, October 13, 2015

Uncontested Divorce - Do You Know How It Works?


An uncontested divorce is a divorce in which both parties can agree to the terms of the divorce. With an uncontested divorce, both parties negotiate the terms of the divorce without court proceedings. One lawyer represents one of the parties and prepares the divorce documents. Generally speaking, the lawyer will meet with the party they are representing and start the divorce proceedings. The parties negotiate the terms until both parties are satisfied. There are advantages and disadvantages to an uncontested divorce.


An uncontested divorce is considerably cheaper than going to court. If you can negotiate the terms of the divorce agreement before contacting a lawyer to begin the divorce proceedings, the cost is minimal. It saves time for everyone involved. When facing a divorce, saving money is a huge benefit. This is money that can be used for making necessary changes and for living expenses.

An uncontested divorce can also help maintain a level of civility between the parties. If the parties to the divorce have an amiable relationship, it is best to try to protect that mutual respect, especially if there are children involved. Another advantage is the privacy that an uncontested divorce offers in contrast to court proceedings. The divorce will be a matter of public record, but the visibility of the negotiations and the actions taken is potentially private and limited by what the parties disclose in the documents.

Just because the parties do not immediately agree to terms of the divorce doesn't mean that they should put the decisions in the hands of a judge. It may just mean that more negotiations are needed. However, there are times when an uncontested divorce is not necessarily the best route. There are some disadvantages to uncontested divorces.

If one party is exerting power and control over the negotiations or if there is a history of domestic violence, then an uncontested divorce is usually a bad idea. The victimized party is not in a position to look out for their own best interest. An uncontested divorce does not ensure that the agreement will be fair and just. Therefore, if one party is unable to do this for themselves, an uncontested divorce is not for them.

An uncontested divorce will not work if the parties cannot tolerate each other enough to negotiate the terms of the divorce. If they can't have reasonably civil discussions and come to an agreement, then attempting an uncontested divorce is a waste of time. Sometimes, this hostility will lessen with time and an uncontested divorce will become a viable option.

Moses Wright is the founder of Divorce-Papers.org. More information on Divorce Papers, Selecting Divorce Attorney and Divorce Settlements - Assets & Liabilities can be found on his website. You are welcome to reprint this article if you keep the content and live link intact.
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Monday, October 12, 2015

Why Forming an LLC is a Good Idea


If you are experienced in running your business, you understand the importance of getting the correct corporate form in place. You should seek to have a structure that will not only aid long term expansion but also protect your assets. The good news - there are a lot of potential forms your business can take.

You should consider, if you have a small business, forming an LLC. Think about setting up an LLC if you have a small business. Fortunately, they are simple to create. There is little paperwork with them. Further, in many states, you won't need to file an annual report.

Also, LLC forms a business structure that can protect your personal assets. Just keep you LLC compliant and your personal property is protected.

With an LLC, you can safe guard your business name.Also, LLCs allow unlimited owners. This will help give your business growth room. Also, owners don't need to have US citizenship.

In addition, an LLC doesn't require meetings. It also needs little paperwork. And you can flow your profit and loss to your personal taxes.

Keep in mind that setting up an LLC has fees and paperwork. Also, you need to make sure you are following all city and state laws. Thus, only consider an LLC if you have a clear business plan.

Overall, an LLC is great for small business. So you should at least consider one if you are serious about your business. Remember, it can save you time and money, both of which you can invest in your business!

David is the creator of http://www.LLCFormsExpert.com [http://LLCFormsExpert.com], a site dedicated to helping you with forming an LLC [http://LLCFormsExpert.com]
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Sunday, October 11, 2015

Easily Misused Estate Planning Terms


Wills and Living Wills

Wills and Living Wills are key parts of any good estate plan. However, though the two sound similar they serve very different purposes. A Living Will states your choices for the kind of medical care you want to receive if you become sick or injured and are unable to talk. A Last Will and Testament, often referred to as just a Will, deals with your property and how you want it distributed if you should die. Therefore, a will is only effective after you die and a living will is only effective before you die and when you incapacitated.

Advance Directive vs Advanced Directive

A Living Will is a type of advance directive. All advance directives are documents a person creates that state what his or her choices are in the event he or she becomes incapacitated or otherwise unable to communicate with other people. Advance directives, such as Living Wills or health care powers of attorney, typically address financial or medical situations and can state specific choices as well as nominate someone else to make decisions on the incapacitated person's behalf.

These documents are referred to as "advance" directives because you make them in advance or in preparation for the possibility that you become incapacitated. Some people mistakenly use the term "advanced" directive, implying that the documents are somehow more complicated or important than others. This is not true, and anyone can make advance directives fairly easily as long as they ensure the documents comply with state law.

Probate Estate vs Trust Estate vs Taxable Estate

An estate is a general term used to describe an area or amount of property. It is sometimes used when referring to assets that are part of the probate estate at someone's death, or assets that are not payable to another person at the owner's death or not part of a trust estate. If an asset is part of a trust estate, then generally the asset will not be part of the probate estate. Further, when considering the taxable estate of an individual for estate tax purposes the IRS will consider the gross estate of the decedent to include the value at the time of his death of all property, real or personal, tangible or intangible, wherever situated. If property is part of a trust estate, it may or may not be part of the gross estate for federal estate tax purposes depending on certain facts about the trust.

Medicare vs Medicaid

Medicare is a federal program attached to Social Security. It is available to all U.S. citizens 65 years of age or older and it also covers people with certain disabilities. It is available regardless of income.
Medicaid is a joint federal and state program that helps low-income individuals and families pay for the costs associated with medical and long-term custodial care. Unlike Medicare, Medicaid has strict eligibility requirements.

Experienced estate planning attorneys Dallas TX of the John R. Vermillion & Associates, LLC offers estate planning and business planning resources to residents of Dallas TX. To learn more about these free resources, please visit http://www.revocabletrusts.com today.
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Saturday, October 10, 2015

Different Types of Power of Attorney


Although power of attorney is essentially handing control of your affairs over to another person, there are different uses of the position which vary depending on the situation. These largely depend on the reason behind power of attorney being transferred from the 'principal', the individual who wishes to relinquish control of their affairs, and the 'attorney-at-fact', the person who takes control of the principal's business and legal dealings.

Non-Durable POA

Non-durable power of attorney is used for short-term transactions, which for whatever reason the principal cannot handle themselves. Any such power of attorney that is non-durable has an expiration, primarily when the principal becomes incapacitated for some reason and is no longer able to give permission for the power of attorney to continue, nor can they revoke it. Usually, non durable power of attorney is limited to a specific time frame, in which any particular deal that is needed to be completed is given time to be dealt with. When this particular instance is complete, power returns to the principal.

Non-durable POA is effective immediately.

Durable POA

This type of power of attorney is similar to non-durable power of attorney, only it continues in the event that the principal becomes incapacitated or mentally ill. All powers of attorney come to an end when the principal dies, but durable power of attorney continues right up to that point. Power of attorney that is durable is often used in terminally ill cases, where the principal asks their attorney-at-fact to allow any lifesaving equipment to be removed or authorize a Do Not Resuscitate

Durable POA is effective immediately.

Springing POA

Springing power of attorney is used in cases where the principal cannot actively give permission, either verbally or in writing, for someone to act as their attorney-at-fact. To obtain springing power of attorney, a doctor must certify that the principal is incapable of thinking for themselves and an attorney-in-fact is required. Springing power of attorney is used predominantly in cases of sudden deterioration of health, such as deterioration of a mental illness or a serious accident.

These are the three main types of power of attorney, governing time and how the power is assigned. However, power of attorney does not have to be granted for all of the principal's affairs - it can sometimes only apply to one aspect, such as financial. The differences are as follows:

Special or Limited POA

Predominantly used with non-durable power of attorney, special or limited power of attorney is used for specific cases. It often just applies to financial dealings or a specific property sale, and though an attorney-in-fact is appointed, they have no control over any aspect of the principal's life apart from the sector they are charged with.

Any other type of POA is called General Attorney, which applies to all affairs and dealings of the principal.

Health Care POA

This is a specific power of attorney that is used for those who are terminally or mentally ill, and gives the attorney-in-fact power over medical decisions but nothing more. It is similar to special attorney, though is specifically used for medicinal purposes.

Disclaimer: This article is for informational and entertainment purposes only, and should not be construed as legal advice on any subject matter.

LegalBuffet.com is a complete online resource that compares the legal services offered by various online companies. Find the best company for your general power of attorney needs at http://legalbuffet.com/power-of-attorney
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Friday, October 9, 2015

Estate Planning : Purpose of a Living Will



A living will, or advance directive, gives a named person the ability to 'pull the plug' in some medical instances. Learn the purpose of a living will from an estate planning and probate lawyer in this free video on estate law.

Tuesday, October 6, 2015

How to Become Someone's Power of Attorney



Becoming someone's power of attorney allows a person to make financial or legal decisions for another person if that person cannot make their own decisions.

Sunday, October 4, 2015

Estate Planning : When Does the Trust Stay Private?



Often revocable living trusts can help heirs avoid probate court, and affairs can remain private. Find out when a trust stays private from an estate planning and probate lawyer in this free video on estate law.

Saturday, October 3, 2015

What Are the Benefits of an Uncontested Divorce?


When you hear "uncontested divorce", also known as no fault divorce in California, you probably think of a couple who amicably and in a friendly manner decide to call it quits. While this is surely the case in some situations, choosing to go the uncontested divorce route may be a financial decision rather than an emotional one. Just like any divorce, there is the chance that an uncontested will see unpleasantness and bitterness to some degree.

So why would you choose this path if you are unhappy with your former partner? Well, for one an uncontested divorce is much cheaper than a contested divorce in most cases. The couple could even file for divorce without the assistance of lawyers, although at the very least speaking with an attorney is often helpful and important in protecting one's rights.

What's more, it allows the couple to end their marriage quickly and with as little animosity as possible, even if the former couple isn't walking away from the marriage with the best of feelings towards one another. You probably will not agree on every single aspect of the divorce, but after a little negotiating, compromising and talking through the issues, couples are often able to reach an agreement without fighting each other in court.

Getting back to the money-saving benefit of an uncontested divorce, the extra cash that may otherwise go to a divorce attorney can be used to rebuild your life. You won't have a partner with whom you can split your expenses, including rent, car payments, utilities, etc., and if you have kids you'll be able to pamper them a little bit as they deal with the divorce.

There are some cases in which a no fault divorce may not be right. If abuse exists in the relationship, negotiating may be difficult for the victim of abuse, as intimidation and possibly fear will put create an uneven playing field. If either you or your spouse decides that you want to walk away with most of your assets, or if you are not on speaking terms with your spouse, an uncontested divorce may not be the best of choices.

In the end, though, many choose an uncontested divorce because of the money, headaches and hassle that it saves them.

Justin recommends to look for more information on a Uncontested Divorce Lawyer or just schedule a consultation with a Temecula Divorce Lawyer visit the offices of Diefer Law Group
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Friday, October 2, 2015

Ever Considered an LLC?


There are no hard and fast rules as to what is the best way to structure a business, and naturally, the decision will be based on your own individual circumstances. But there are certain pros and cons to each business structure that you should be aware of, as there are certain rules that regulate the way business may be conducted in the U. S.

Strategy - Consider converting your business to a Limited Liability Company to avoid personal exposure to business liability.

Sole Proprietorship and Partnerships do not offer owner(s) protection from business debts, whereas Corporations do.

For this reason alone, you should consider forming your business entity as a Corporation - to provide the owner(s) "1st Level" protection from business creditors. Of course, this only applies to debt that has not been "personally guaranteed" by any business owners.

This same level of protection can also be accomplished, without incorporation, using a "Limited Liability Company" (LLC). A "Limited Liability Company" is taxed as a partnership form of organization-using a Form 1065, (or as a corporation, using a Corporate Tax form) and issuing K-l (Form 1065) Schedules to each owner.

This is the newest method of structuring a business and is a fairly recent innovation. An LLC is like a Sole Proprietorship; however it provides the same protection from liabilities as that of a "C" or "S" corporation. In fact, this structure allows you to elect to be treated as a corporation without having to deal with the formalities of a corporation.

If there is only one owner, you can file and be taxed as a Sole Proprietorship. If there are two or more owners, you will be taxed as a partnership.

Here's why you may want to consider using the LLC form of business organization.

Advantages

· Limits liability just like a regular corporation.

· One person can own the LLC, which eliminates the need to file a separate tax return.

· Other entities such as a C Corp, trust, or partnership can own an LLC.

· Does not require the formal meetings and documentation of a "C" or "S" corporation.

· Tax filing and other paper work is simple and inexpensive.

· You can claim all the same tax advantages of Sole Proprietorship and partnerships.You don't have to hold shareholder meetings or keep meeting notes.

· Management control need not be proportional to ownership.

The advantages of a "Limited Liability Company" over an "S" Corporation form of business organization are as follows:

· An "LLC" is not limited to 100 owners;

· An "LLC" allows foreign individuals to be owners, and

· An "LLC" cannot have its status revoked if it engages in real estate activities.

Disadvantages

· The major disadvantage of an LLC is that it does not provide a FICA tax break like an "S Corporation" does (except in the case of hiring a spouse or children... their salary is not subject to FICA taxes if they are under the age 18).

· The laws which govern an LLC are not uniformly written among the states. Because there is no uniformity between states with regard to the tax treatment of an "LLC", there may exist some potential for exposure to additional liability at your local and/or state level.

Under a "Limited Liability Company" its owners are not called owners or partners, but rather are referred to as "members." Each member enjoys an upper limit on their own personal liability potential in an amount equal to the dollars they personally invested in the "LLC"-just like the liability protection afforded "S" Corporation shareholders.

One final thought on multiple ownerships within partnerships, LLC's or corporations. What happens if you and one other owner in your business do not get along? Bad relationships have resulted in some of the most expensive and protracted legal battles around. This kind of business contention is as bad as a divorce.

Thus, take the following advice:

If you incorporate or structure your business as an LLC and have multiple owners, always set up a "buy-sell" agreement at the launch of your business. This will eliminate a lot of problems you could encounter later. Think of "buy-sell" arrangements as some sort of business prenuptial agreement.

As I have already noted, the way you formally structure your business can protect you from liabilities and save you thousands of tax dollars depending on your personal circumstances. I strongly recommend that you seek out the professional help of your accountant or attorney in order to sort out the issues with each of these entities.

http://Bradgillies.com
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Thursday, October 1, 2015

Do Not Wait Until It Is Too Late! Set Up A Durable Power Of Attorney While You Still Can


Many things in life need to be decided in advance, but none more so than durable power of attorney. Why is this legal document so important? Because in it you indicate who will handle your finances and make decisions for you while you are of sound mind and body, or should you become mentally or physically incapacitated. This trusted individual is known as your agent.

Once you have decided to arrange for a durable power of attorney, how do you choose your agent? Since this individual will be stepping into your shoes to undertake as many or as few of your financial and property matters as you decide, you must choose someone whom you trust absolutely, who has the ability to manage money, and is at least 18 years of age.

Moreover, you must set up a durable power of attorney while you still have the mental capacity to sign a legal document and to make decisions for yourself. Once you can no longer do this, it is too late to give anyone else the authority to do so. Your wishes regarding bank accounts, financial transactions or real estate dealings could be largely ignored or unknown.

Normally people choose a trusted family member, spouse, friend or legal advisor for their agent. What is crucial to note here is that if you would like your spouse to manage your affairs in circumstances foreseen and unforeseen, you must arrange in advance for him or her to have a durable power of attorney. Lingering in the mind of the public is the misperception that your spouse can automatically sign documents for you if you are mentally or physically incapacitated, but this is not the case.

One of the great benefits of the durable power of attorney instrument is its flexibility and convenience. When your durable power of attorney takes effect and the powers that you grant your agent can be as broad or as narrow as you choose.

For example, you can be completely competent to manage all your affairs, but choose to give your agent power immediately because you would like him or her to act on your behalf if you are on vacation, out of the country, or sick. For a couple who moves to Florida to retire, it is much more convenient to have their New Jersey-based son, who is their agent, sell their New Jersey home.

By the same token, you can grant your agent power that becomes effective only in the future, whether you remain competent to handle your own affairs, or not. In either case, the powers that you grant your agent are completely up to you and can encompass as many or as few tasks as you designate.
Some of the powers that you can give your agent include the authority to sign checks, make deposits, pay bills, file tax returns, make health decisions (the subject of another article), sell property, or invest money.

You can also empower your agent to hire individuals to manage your business and personal matters, whether it is as simple as lawn mowing or as complex as investment advising. The only restriction is that your agent cannot write and sign a will for you, and his or her powers become void upon your death. Whatever powers you designate, you can also revoke at any time.

How is a durable power of attorney different from a power of attorney that is not durable, and why is appointing a durable power of attorney so much more important to your future? If you were to grant a non-durable power of attorney to your agent, it would only become effective only upon your showing signs of mental incapacitation.This means that if you are physically incapacitated, your agent does not have the authority to act upon your behalf.

As the following example shows, a non-durable power of attorney is not at all flexible.

When an elderly widower was hospitalized and physically incapacitated for several weeks, he was unable to rollover a CD and pay the premium on his life insurance policy in time.

Because he had previously arranged for his daughter to have a non-durable power of attorney only, she could not carry out either of these tasks for him. She was neither able to take advantage of a new CD offer with a better rate, nor was she able to prevent the life insurance policy from lapsing. Had the father arranged for his daughter to have a durable power of attorney, she would have been able to act on his behalf in both of these matters.

Finally, a durable power of attorney is much more affordable than the alternative: setting up a guardianship. If you have already planned for a comprehensive, durable power of attorney, and you become mentally incapacitated, the need for a guardianship is obviated. Establishing up a guardianship can take months of court time and medical testimony, as well as costing thousands of dollars.

Ultimately, it is up to you and your lawyer to decide how to best ensure that your affairs, whether in the present or the future, are managed according to your wishes. A well planned durable power of attorney can do just that.

Nicholas Giuditta is a trust and estates lawyer in Cranford, NJ. He prepares estate plans for high net worth individuals that protect their loved ones and preserve their assets. Find out how your family can benefit by visiting http://www.giudittalaw.com
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