Tuesday, February 27, 2018

Estate Planning Tools: Durable Power Of Attorney - Seven Factors To Consider


If something happens while you are alive, that makes it impossible for you to handle your financial affairs, sign legal documents or communicate your wishes to others, you could have trouble in many ways. Without a properly executed Power of Attorney, your family may need to get a court order just to handle your affairs. These can cost plenty and waste months of time.

Even though a power of attorney is a relatively simple document and is readily available from many sources, I am still amazed at how many families and individuals do not have one in force. Follow these simple guidelines and make sure that you are protected should anything ever happen that would cause you to need one.

Seven Factors To Consider:

1. Your Agents: One of the most important decisions with a power of attorney is your selection of agents. Will you use a single agent or appoint co-agents? Who will be your successor agent(s) if someone is unable or unwilling to fulfill their duties? These are the questions you need to answer before you are ready. Your agent(s) should be organized, good with numbers and possess great common sense.

2. Access Medical Records: Will you allow your agents to have access to your medical records? They may need this information to keep track of, or to dispute medical bills. But if you want or do not want them to have access to this information, you will need to specify inside your power of attorney.

3. General or Specific Powers: Will your power of attorney provide your agent with broad general powers or very specific powers? You can decide on either, but the more specific you get, the more limited the powers your agent will be allowed. Most people will choose to provide a general power that will include handling most financial, business and personal matters.

4. Beneficiary Changes: You can empower your agents with the ability to change your beneficiaries if you would like, but this can be a risky proposition. In most instances, you will not allow for this provision. You can also provide for the power to refuse potential inheritances. I think this can be helpful in situations where, if someone passes and is leaving you an inheritance, but you refuse it (or are deceased), it would go directly to your children instead.

5. Effective Dates: When will your power of attorney take effect? When will it terminate? You can have it take effect immediately upon execution, you can have it take effect upon the certification of some medical condition or you can specify a certain time period. You might use this if you were going to be out of the country for 3 months or in a rehabilitation program for certain length of time. All powers of attorney terminate immediately upon the death of the individual, but you can set other dates or events as previously outlined.

6. Hire Professionals: Will your agent have the power to hire professionals such as accountants, financial advisers, lawyers, etc? If you want them to be able to handle these on your behalf, you have to specifically allow them by including this power within your document. If not, you may want to specify who you are already working with and require their services if needed.

7. Receive Compensation: Will your agent be allowed to receive reasonable compensation for time and efforts spent acting as your agent? Will they also be allowed to receive reimbursement for any expenses that they incur while acting on your behalf? In most cases you should allow both of these. Taking care of someone's affairs can be time-consuming and there should be reasonable remuneration for these services. While you can specify either way, your agents may be unwilling to participate without it and this could cause bigger problem down the road.

Summary: Having a power of attorney drafted is a fairly simple and inexpensive process. You can hire an attorney, use online legal services or purchase a legal software package to assist you with the preparation. It is very important to follow the execution and filing recommendations for your state and county. Having proper witnesses and notarization of all signatures is a great safeguard for any legal documents, so make sure to get them done right.


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Monday, February 26, 2018

Three Lessons on Durable Powers of Attorney


Durable Powers of attorney are an essential ingredient in a complete estate plan, which allow for continued financial management in the event of incapacity. Under a durable power of attorney, an attorney in fact makes financial decisions on behalf of the principal. The attorney in fact can be given broad and sweeping powers. Conversely, powers granted by a durable power of attorney can be limited to particular assets or powers. Accordingly, the level of control given to the attorney in fact should reflect the particular requirements of the estate as well as the principal's comfort with a broad grant of authority. In this article, the author teaches three lessons on effective execution and implementation of durable powers of attorney.

First Lesson: Why would I Need One Now?

The legality of durable powers of attorney stems from the law of agency. Under agency law principals, an individual with capacity may give an agent powers-to contract, to represent the principal or to revoke or amend a trust, for instance. In the case of a non-durable power, the agency terminates upon the principal's incapacity. Durable powers survive incapacity, but the principal must have capacity at the time of execution in order to effect a valid power. Accordingly, executing a durable power of attorney for financial management should be done prior to incapacity.

Waiting until one becomes unable to coherently express one's wishes with regards to financial management decisions is too late, and a court-appointed conservatorship may become necessary. What about the successor trustee designated in my trust, or the executor of my will? Would they be able to step in? Since the principal does not die at incapacity, only an attorney in fact designated under a properly executed power of attorney may step in to make financial management decisions. A last-minute durable power of attorney executed during incapacity would not survive a court challenge, however expensive or damaging the result.

Second Lesson: Consider making the Power Immediately Effective

Often, unwary estate planners will execute "springing durable powers of attorney," which only become effective upon the incapacity of the principal. Incapacity is determined according to a test set out in the power, such as a determination made by a medical doctor or a court rendered decision. But who wants to go through the expense, difficulty, and uncertainty of initiating a legal procedure to determine incapacity? Isn't one of the goals of estate planning to prevent unnecessary expense and delay? Moreover, doctors frequently hesitate to make determinations of incapacity because of liability they may face.

In most cases, a better strategy would be to execute an immediately effective durable power of attorney, which gives an attorney in fact the power to make decisions on behalf of the principal without any finding of incapacity. Many are fearful of an immediately effective power of attorney, reasoning that no one should be given such power over their financial affairs unless they are totally incompetent. If they have such a lack of trust for the attorney in fact, why are they executing a power of attorney in the first place? One would think that even more trust would be required when the principal is incompetent and has little influence over the attorney in fact. Finally, simple measures can be taken to avoid disasters before incapacity. Consider sealing a copy of the durable power of attorney in an envelope labeled "do not open until my incapacity." In addition to oral instructions, this can help to avoid the scenario of a run-away attorney in fact who uses the power of attorney to access financial accounts before incapacity.

Third Lesson: What powers should the Attorney-in-Fact be given?

The powers given to an attorney in fact depend upon the principal's desires and the particular concerns that stem from the types of assets held. The durable power of attorney should be coordinated with the will, trust and advance health care directive to ensure that they do not contradict each other. Namely, should the attorney in fact have the power to create trusts? To rescind or amend existing trusts? Should the attorney in fact have a power to make gifts to himself or to others? These powers can help ensure that preparation for long term care (medical) or tax planning can take place even after incapacity. Before executing a power of attorney, individuals should be fully informed of the powers that they are granting, and the possible consequences of such sweeping grants of power. In all cases, it's best to consult with an attorney who can advise on specific risks.

Conclusion

Durable Powers of Attorney are one of the five essential documents in estate planning discussed in this article series. Unlike a will or trust, which mostly deals with decisions that are made upon one's death, the durable power of attorney deals with life-time financial management and estate planning questions. Individuals should be aware of the risk in waiting to execute the power of attorney; the hazards of "springing" powers; the range of powers that can be given to the attorney in fact; and the risks associated with a sweeping grant of authority to the attorney in fact. --

This article is intended to provide general information about estate planning strategies and should not be relied upon as a substitute for legal advice from a qualified attorney. Treasury regulations require a disclaimer that to the extent this article concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law.

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Sunday, February 25, 2018

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.


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Saturday, February 24, 2018

Start an Online Business: Sole Proprietor, Corporation Or Limited Liability Company?


Who Is This Article For?

First, let's identify for whom this article is written. This article is for new entrepreneurs thinking about starting an online business which operates in the United States.

The information contained here is "entry level" for people just starting out in online business. It is not written for people in more sophisticated situations. That being said, let's get going.

Most new online business owners seem to "jump off the deep end" without giving much thought or doing much planning as to how they will operate their businesses.

That is a poor approach to starting a business. In reality, there are a number of considerations that need to be taken into account at the outset if you want to succeed with your online business and not expose yourself to problems down the line.

Forms of Business Entities

One of the first matters to consider is whether to form an entity to operate your business. Let's begin at the very basic level and quickly identify your options with respect to operating your business.

For most new businesses, your options are:
  • Sole proprietorship

  • Partnership

  • Corporation (S-corporation or C-corporation)

  • Limited Liability Company

There are other forms of doing business, but they are usually for more sophisticated enterprises, so we'll confine our discussion to the ones listed above.

Sole Proprietorship

This is the default option, one that many new entrepreneurs wind up using because they never really think about the issue.

Basically, a sole proprietorship is just you doing your thing. You and your business are not separated legally. That can be quite significant, as we'll see below.

Advantages of a Sole Proprietorship

Here are the advantages for choosing to do business as a sole proprietor:
  • Ease of Formation. A sole proprietorship is the simplest business format to form, because there is no formation. It's just you doing business as you. There is no separate legal entity within which you are operating your business. You may still require business licenses, tax id numbers, etc., but there is no separate entity to be formed and operated.

  • Low Cost of Formation. Since it is not necessary to form a separate entity to operate as a sole proprietorship, it is less expensive to get started because you don't have to pay an attorney or company to form a special entity for you and you don't have to pay any of the fees to you state that are required to form a corporation or LLC.

  • No Separate Income Tax Returns. Because there is no separate entity involved in the operation of a sole proprietorship, the IRS doesn't require you to file any separate income tax returns. You will normally just add a schedule (Schedule C) to your good old Form 1040 and file away.

Disadvantages of a Sole Proprietorship

Here are the disadvantages of operating as a sole proprietorship:
  • Personal Liability. This is the overriding disadvantage of doing business as a sole proprietor. Because there is no separation between you and your business, if you get sued all of your personal assets (house, car, investments, etc.) are at risk. Given the fact that we live in a litigious society where people are suing other people over ridiculous claims, and sadly prevailing sometimes, this is a major concern. If you end up with a judgment against you, you risk losing most of your personal assets.

  • Less "Professional" Image. Doing business as "John Smith" doesn't present the professional image in the business world that, for example, "World-Wide Multimedia, LLC" would. This may not be a major concern for you, but it is something to consider, especially if you are trying to get other businesses to recognize you as a joint venturer, affiliate, or member of their CPA network.

Partnerships

We won't spend much time on this one, because it is relatively rare in the online world. A partnership is an association of two or more people or entities for the purpose of engaging in business.
So, for example, if you and your brother-in-law want to start a business, a partnership could work. It is not something that is normally recommended, though, for reasons explained below.

Advantages of a Partnership

Frankly, in most situations there are none.

Disadvantages of a Partnership

Here are the primary disadvantages of a partnership:
  • Separate Tax Returns. Partnerships are required to file their own, separate income tax returns, so paperwork is increased without commensurate advantages being offered.

  • More Complicated to Form. Partnerships normally require paid assistance in the formation process, so costs are increased, again without offsetting advantages in most circumstances.

  • Increased Liability. This is the big one. A partnership does not protect your personal assets. Even worse, since you have one or more partners involved, you potentially become liable for their activities too, whether or not you actually participated in a given transaction. In addition, your partners can normally obligate the partnership to financial obligations and contractual agreements, sometimes without your knowledge. So, there is definitely increased personal risk to you financially in a partnership.

And, you must be cautious when pursuing business objectives with other people. You can end up in a partnership without meaning to.

Since there are normally no formal organizational requirements for a partnership, a handshake may be all that is required. Just the act of doing business and sharing profits and losses with one or more other people can result in the courts declaring you to be in a general partnership, whether that was your intent or not.

Corporations

A corporation is a separate legal entity that is formed to operate your business. It is that separation between you and your business that can be a major advantage.

You will hear two broad types of corporations discussed: C-corporations and S-corporations. Those distinctions are a topic for another article, but they will be mentioned briefly.

In a nutshell, a corporation is a corporation, the S-corporation/C-corporation distinction is merely an election made by a corporation as to how it wants to be treated for income tax purposes by the IRS.

Advantages of a Corporation

Here are the principal advantages of using a corporation to operate your business:
  • No Personal Liability. The main advantage has already been hinted at. A corporation is a separate legal entity from you personally. Assuming you set things up properly and adhere to the operational requirements of a corporation, if your incorporated business gets sued only the assets owned by the corporation are potentially exposed to the business's liabilities. Your personal assets are shielded from liability.

  • More Professional Image. As discussed above, a corporation presents a more professional image to the world than a sole proprietorship.

  • One or More Owners. The owners of a corporation are called "stockholders." The law allows a corporation to have one or more than one stockholder. S-corporations may not have more than 100 stockholders (at the time of this writing). C-corporations may have an unlimited number of stockholders.

Disadvantages of a Corporation

Here are the main disadvantages of a corporation:
  • More Complicated to Form. Articles of Incorporation and other formation documents must be prepared and filed with the state in which you incorporate. Normally, you will need paid assistance and there will be certain filing fees paid to your state, so there is expense involved. At least with a corporation you are getting the offsetting benefit of limiting your personal liability.

  • Requires Separate Bookkeeping. Since a corporation is regarded as a separate enterprise from you personally, you will be required to keep separate books and records for business and tax purposes. This may require an accountant or CPA to assist you in setting them up properly.

  • Separate Income Tax Returns. Generally, a corporation will be required to file its own separate income tax returns. You do not report the corporation's income and expenses directly on your personal tax return.

  • Annual Filing Requirements. You state of incorporation will require at least one annual report to be filed for your corporation, and there will be a small fee charged by the state in connection with that filing.

Limited Liability Companies (LLCs)

Limited liability companies are probably the most popular entities these days. They are gradually replacing corporations and the "go-to" business entity.

So as to not over-extend the length of this article, I'll just list the advantages and disadvantages without more discussion, since they are almost identical with the remarks about corporations. Where there's a difference, it will be pointed out.

Advantages of an LLC
  • No Personal Liability (See discussion under corporations)

  • More Professional Image (see discussion under corporations)

  • One or More Owners. An LLC's owners are called "members." The law allows an LLC to have one or more members.

Disadvantages of an LLC
  • More Complicated to Form (See discussion under corporations)

  • Requires Separate Bookkeeping (See discussion under corporations)

  • Separate Income Tax Returns. A multi-member LLC will be required to file its own income tax returns. For single member LLCs, there are some special opportunities with respect to how they are taxed for income tax purposes. Often, the single member can choose to have the LLC disregarded for income tax purposes. That does not, however, jeopardize your liability protection from lawsuits.

  • Annual Filing Requirements. (See discussion under corporations)

Summary

I think it's fair to say that limited liability companies are the most recommended entities, especially for online businesses. As a general proposition, they offer the same protection of your personal wealth from business liabilities that a corporation does, and LLCs are usually considerably more flexible as far as what the law allows in their management structure.

There are a lot of subtle nuances that professionals can debate when considering the pros and cons of the various forms of doing business.

In reality, though, the main concern for most smaller businesses is liability protection for the owner's personal assets.

Liability protection can be gained by using a corporation (S or C) or an LLC as the entity for operating your business. Liability protection is not gained by operating as a sole proprietor or in a partnership (formal or unintended).


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Friday, February 23, 2018

What is Probate? Should Probate be Avoided?



- What is Probate?

- Should I try to avoid Probate with my Estate Plan?

- How can I avoid Probate?

Wednesday, February 21, 2018

Durable Powers of Attorney in Wills and Estate Planning


Planning how your estate shall be divided, distributed and disposed of doesn't only mean creating a last will and testament or putting up a trust for someone. Estate planning also means preparing for the unexpected, such as falling ill to an incurable disease or becoming incapacitated later in life. In this regard, you'll need the help of someone you completely trust to put your affairs in order even when you're no longer able to make those important decisions or even communicate your wishes. Drafting durable powers of attorney gives this person you appointed the legal means to sign documents, make decisions, and represent you in court.

The Medical Power of Attorney and The Living Will

Actually, the functions of a medical power of attorney play in tandem to the directives of a living will. They're both health care directives, but the durable power of attorney for health care focuses solely on assigning someone the legal duty to make decisions related to your illness or health condition. It needs a living will, which contains your instructions and wishes, including end-of-life decisions. Once you've lost the capacity to think or act on your own, such as when you've fallen into a coma, this durable power of attorney takes effect and hands over the responsibility for your personal health and well-being to your agent or attorney-in-fact.

You'll have tighter control over managing your living will, estate planning, and health care directives when you specify that these shall only take effect after a physician has confirmed that you lacked the mental and physical capacity. In this case, you have a springing durable power attorney in hand. The term capacity here legally pertains to a person's lack of understanding of the nature of his medical condition, the health care options open to him, and the possible consequences from making these choices. In addition, that person also loses the ability to speak out or make hand gestures to relay his personal preferences for medical care. This is where a health care declaration becomes an invaluable document in your estate planning.

The Financial Power of Attorney

Through a durable financial power attorney, you give another person - someone you fully trust to act in your best interests - the legal authority to act on your behalf. However, this power attorney for finances doesn't hand over absolute authority to your proxy. You may limit or extend your agent's legal access to your financial accounts. Generally, your financial surrogate can file and pay your taxes, manage your business, handle financial transactions in your name, access your bank accounts, claim an inheritance, collect Social Security and other benefits, and make use of your assets and properties to pay off debts and provide for your family's daily expenses.

These two powers of attorney must be specified as durable when filed. Otherwise, they won't take effect once you were found lacking capacity to think and act for your well-being. A divorce ends both documents when the agent is also the spouse. The court may revoke an agent's authority under a power of attorney for health care when it finds that the agent has acted improperly. A second person named in the document takes over as an alternate agent.


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Tuesday, February 20, 2018

Do I Need a Will?


You can't take it with you. Unless you plan on living forever, there will eventually be a need to divide your property amongst the relatives and loved ones you leave behind. By having a will, you determine who gets what. Without one, the law will do it for you by the operation of statutes. Many people believe that they are not wealthy enough to need a Will. But if you own property that is titled (a car or house), after your death, those items cannot be transferred without opening an estate. If you don't have a Will, the cost of processing your estate goes up significantly.

When a person dies and leaves property behind, that property is known as an estate. In order to transfer ownership of the property in the estate from the deceased to surviving heirs, the estate must go through the probate process. A Will not only identifies who will inherit the property, but names an executor to administer the estate. Without a Will, not only will statutes determine who gets your property, but the court will have to appoint and administrator to handle the estate. This is a costly process.

The most obvious benefit to having a Will is controlling what property passes to which heir. This is important if there are pieces of personal property that you want to go to a specific loved one for sentimental or other reasons. A Will also allows you to place conditions on the bequest, such as that the heir complete higher education or attain a certain age, before receiving his or her inheritance.

If these benefits of having a Will are not enough to convince you to take action, then consider those who you are leaving behind. A Will invariably makes the probate process smoother and easier for the survivors. In addition to controlling exactly where the property goes, a Will names the person or persons who will "execute" the estate, meaning the person who will gather the property and distribute it to the named heirs. This is often no small undertaking - it can involve selling stock, closing and consolidating bank accounts, liquidating assets, and more. In drafting a will, you should be sure to select an executor who has knowledge of the property in your estate and the competence and willingness to perform the job, all of which makes for a more efficient probate process. Without a Will, the court must appoint an administrator (obviously not of your choosing) to perform these tasks. Unfortunately, this is more costly and can lead to disagreements amongst family members.

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Monday, February 19, 2018

Sunday, February 18, 2018

Incorporation and LLC's - By the People



Rene of By the People Document Preparation Service in Fairfield CA talks briefly about the basic differences between Inc. and LLC, and the benefits and features of each. Give Rene or Tammy a call at 707-428-9871 with any questions you may have so they can help you get the right product for your business.

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

Saturday, February 17, 2018

Estate Planning - More Than Just A Legal Will


When people think of Estate Planning, they generally think of legal wills. Estate planning is not just a will, although it does involve writing one. Rather, it's a series of legal steps that involves allowing your beneficiaries to avoid probate and minimize the taxes incurred, and for you to write a living will in which you nominate trusted associates who would assume power of attorney and executor status should you be incapacitated or die. Estate planning also allows you more direct control over how your assets will be treated when you're gone.

One of the most important parts of any estate plan are measures to avoid too much of the estate's worth being lost to taxes. In the United State and abroad, dying can attract a number of specific taxes from both State and Federal governments, like death tax and estate tax. The simplest way to minimize estate tax is to name recipients of funds or assets from your estate in your legal will, specifying that a certain amount should be given as a gift. Provided your lifetime tax-free gift threshold of $1 million is not exceeded, these portions cannot attract any taxation.

An important part of any estate plan is the inclusion of a living will. A living will is not usually considered a legally binding document, however, it is given consideration if you are ever incapacitated and left unable to carry out your legal rights, or make decisions. While the living will itself may not carry much weight, you can nominate someone to assume your enduring power of attorney (EPA). If you are unable to exercise the living will as a legally binding decision, your enduring power of attorney can only be challenged by a court.

The will itself is the most important part of any estate plan. If you should die without writing a will, the specific laws of your state will determine how your assets will be divided following probate. Additionally, with no prior planning of where the assets should go on the event of your death, your estate is likely to be taxed the maximum possible amount. Where no will is present, the spouse is likely to keep one third of the value of the estate with the remainder to be distributed evenly among children.

An estate plan enables you to stipulate, for instance, that if your children receive an inheritance, the property is given to them personally and not, for example, to the child's spouse. Should your child ever divorce, then the value of any inheritance received would not have to be shared in any divorce settlement, as it would not be a shared asset of that marriage.

One of the more important aspects of estate planning is the protection it can provide your assets. Typically, after a person passes away their family sells the assets that were left to them and divides the proceeds among themselves. If, however, you have a company or significant property holdings, you may wish to prevent the breakup of any of these assets, judging them to have more value whole compared with their value after being broken up.

Estate planning allows very specific instructions for how such assets should be treated if you wish to prevent this asset division from happening. For example, you can specify in your will that you require that your business be run by a family trust whose members and membership requirements you specify. It is not uncommon for people to wish to leave behind some legacy when they've gone, and the establishment of a family trust to ensure your assets are managed properly by a family member is a good way of ensuring it.

Another common request made is for a trust fund to be established as a scholarship fund or similar. Again, with a proper estate plan, it is possible for a benefactor to specify who a scholarship fund is for, and who is allowed to sit on any board or committee it relies on to pick a recipient.

Estate planning is the method by which specific instructions may be given in advance on how to manage your affairs should you become incapacitated or die. Estate planning represents the best way of protecting your assets from the whims of financially irresponsible relatives, excessive government taxation, and dissolution of your assets by the normal laws of succession in the state or country concerned.


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Wednesday, February 14, 2018

What Happens During Probate



Probate is the court process that determines whether your will is legally valid. The probate court is also where your estate is officially distributed to your creditors and the beneficiaries under your will. Depending on the value and complexity of your estate, the probate process can take several months .... or it may be eligible for a simplified process.

Tuesday, February 13, 2018

The Importance of a Healthcare Proxy and Living Will


A living will is a legal document that describes your end of life wishes. You create it when you are alive, but it does not become valid until you are in an end of life situation. With a living will your agent(s) have final decision, but it should be made with medical doctors and other healthcare officials to be sure you are given the correct prognosis and so that your agents can make the right decision. You should give a copy of your living will and healthcare proxy to your local hospital, doctor, nursing facility or hospice care agency.


Function

The living will covers common decisions your loved ones can make when you are near to dying. You have the choice to fill out the form in whatever fashion you like. Choices can be made regarding keeping you alive by machines, being kept on a feeding tube with no hope of recovery, being in a persistent vegetative state and more.

Features

Living wills are available online and can be obtained for free. You need not pay for a living will to be drafted. Each state has its own differences so be sure you use the one for your state.

Once completed, the form should be signed in the presence of two witnesses. The witnesses sign the document and attest that you signed of your own free will and that they are not your appointed health care agents or proxies. Some states do not allow relatives or people responsible for make medical decisions to be witnesses.

In your living will, you will designate someone who will be your proxy or agent. This person will be the one you choose to carry out the details of the document. Choose a family member who understands your wishes and has agreed to see that they are carried out. Do not choose a doctor or any employee of a hospital or institution that is treating you at the time it is executed. You can change your agent or proxy, but be sure that whoever got the original one has the new one replaced. The same applies to other changes to the document.

Most people don't like thinking about these things, however they are extremely important. You don't know when you will be in a situation in which this document will be needed. Be sure to complete it now before you can't. Consider all of the possibilities there are regarding your last wishes medically. There are certain powers given to your agent(s). Here are some general rules:

• "Full power to consent, refuse consent, or withdraw consent to all medical, surgical, hospital and related health care treatments and procedures on my behalf, according to my wishes as stated in this document, or as stated in a separate Living Will, Health Care Directive, or other similar type document, or as expressed to my agent by me;"
• "Full power to make decisions on whether to provide, withhold, or withdraw artificial nutrition and hydration on my behalf, according to my wishes as stated in this document, or as stated in a separate Living Will, Health Care Directive, or other similar type document, or as expressed to my agent by me;"
• "Full power to review and receive any information regarding my physical or mental health, including medical and hospital records, in accordance with the Health Insurance Portability and Accountability Act of 1996, 42 USC 1320d ("HIPAA");"

• "Full power to sign any releases in order to obtain this information;"
• "Full power to sign any documents required to request, withdraw, or refuse treatment or to be released or transferred to another medical facility."

Your document should contain sections covering the following situations:

1. "If I have an incurable and irreversible (terminal) condition that will result in my death within a relatively short time, I direct that... "

2. "If I am diagnosed as being in an irreversible coma and, to a reasonable degree of medical certainty, I will not regain consciousness, I direct that... "

3. "If I am diagnosed as being in a persistent vegetative state and, to a reasonable degree of medical certainty, I will not regain consciousness, I direct that... "

You are able to decide which choices can be made.

Other areas to be covered include:

• Intravenous and Tube Feeding
• Life Sustaining Surgery
• New Medical Developments
• Other Non-Conventional Treatments
• Home or Hospital

Benefits

A living will gives you the power to choose how you would like to be cared for in the days leading to your death. It also removes some of the burden from your family when they know that they are following your wishes.

Don't fail to prepare this document. As has been stated herein already, you don't know when you will be in a situation in which this document will be needed.


Article Source: http://EzineArticles.com/?expert=David_G_Komatz

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Monday, February 12, 2018

Understanding the Difference Between a Will and a Living Trust


When planning for the future of your children as you get older, there are a few options on how to pass on your assets such as property, life insurance, stocks, etc. The two major ways of stating and distributing your assets after your passing is with a living trust or will. When you hear the words trust fund or wills, it refers to estate planning. Although there are different trusts out there, the main one I will focus on is a living trust.

Will

A will is a document that is created to help distribute assets and properties to a beneficiary after one passes away. With a will, it will be submitted through a probate process, which is a court process. In this process, the courts will validate the will and ensure that all the instructions are followed properly while also repaying any creditors. The downfall to a will is that it becomes public so anyone can see the distribution of your assets to your selected beneficiaries. On top of not having privacy, it could take several months to even years for the court to sort everything out!

Living Trust

A living trust is a legal document that states three parties: Grantor/Trustor, Trustee, and Beneficiaries. The grantor/trustor is the individual or couple who establishes/creates the trust. The trustee is the person nominated to be in control of the trusts assets. In many cases, the trustee is the same as the grantor/trustor. Beneficiaries are those at the receiving end who will benefit from the trust. A trust is beneficial to most people who have property worth $100,000+ and/or those who have large amounts of assets. In certain states, properties at $100,000+ can be subject to legal fees in the probate process. With a living trust, it bypasses the whole probate process and all assets can be immediately accessed by the beneficiaries. As opposed to a will, a living trust is private so it does not go through a probate process, therefore it is NOT a public record. Things that can be listed in a living trust include: stocks, bonds, real estate, life insurance, personal property, etc.

A trust is beneficial for estate planning for those who have large amounts of assets. By establishing a specific living trust known as an A-B Trust, an individual can reduce the amount of taxes paid significantly. For example, in 2012, the current estate tax is $5.12M with a cap at 35% over the $5.12M. In an A-B Trust with a couple passing their assets to their one kid, they would designate half the fund to the surviving spouse and the other half to the kid. The surviving spouse and the kid will then each receive a tax break of $5.12M giving a sheltered total of $10.24M from estate taxes. When the surviving spouse passes, then his/her half is giving to the kid who is then subject to another $5.12M tax break. Unlike a trust, a will however will be only have a tax break of $5.12M.

Conclusion

When comparing the differences of having a last will versus a living trust, it shows that the trust comes out on top. A trust will help to give privacy, immediate access to assets from beneficiaries, AND tax breaks. For those who are near the age of deciding what to pass on to their children or know someone in that situation, help them understand the difference of the two and sway them toward a living trust if feasible!

Article Source: http://EzineArticles.com/?expert=Jonathan_R_Wong

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Saturday, February 10, 2018

Top 6 Most Frequently Asked Questions in Expunging Your DUI Conviction Records in California


Like most states in US, California too allows you to expunge your DUI conviction record. Expunging your DUI conviction record will help you get rid of all the problems resulting from your offense and make you to experience the life like before. Regardless of whether your offense is misdemeanor or felony, they can usually be expunged. Following are the FAQ's which are sure to provide you an insight about expunging your DUI records in California:

What is expungement?

Expungement means sealing your DUI conviction record which practically means giving petition to the court to expunge your record and the court replaces your plea as not guilty and then dismisses your case. So when applying for a job or under any other circumstances you need not have to disclose that you have been convicted.

Who Is Eligible For expungement in California?

You are eligible for expungement:

  • if you are a first DUI offender who has only one charge for either a misdemeanor or felony
  • a year has passed since conviction
  • if you have completed probation successfully and not on probation for another offense
  • have no charges pending
  • have paid all the fines ordered by the court
How much does it cost to file for expungement? 

It costs between $50 and $80 to file for expunging your record. 

Will they need my presence at the court? 

No, your expungement lawyer can do it for you. 

What will I benefit from expunging my DUI conviction record? 

There are a lot you will benefit from expunging your record such as employment, licensing etc,. 

What expungement won't do? 

Your expunged case can still be used for increasing your punishment when you again caught up for a DUI or other criminal cases.

Article Source: http://EzineArticles.com/?expert=Jennifer_Mann

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Friday, February 9, 2018

Separation vs Divorce


Are you unsure about the future of your marriage? Here are some tips to help you explore the difference between separation and divorce.

Thursday, February 8, 2018

Uncontested Divorce Made Affordable - By the People



Divorce is probably never easy, but it doesn't have to be expensive. Rene of By the People in Fairfield CA talks briefly about help with uncontested divorces with our without children. Rene or Tammy will be happy to answer all your questions. Call them at 707-428-9871 and you can visit the website at http://bythepeopleca.com

Wednesday, February 7, 2018

5 Reasons an LLC Is Right For You


As a business owner, you can run your business as a sole proprietorship, or it can be operated as a formal structure, for example an LLC. Forming LLC as the business structure is an exceedingly good choice for the average entrepreneur. Managing your company as an LLC brings many benefits.

Following are just a few of many reasons to contemplate having an LLC, if you are a small business owner:

1. Protection of personal assets - As a business owner, you are more apt to be sued. You need to protect your personal assets from those of your company, so your personal monies are protected in case a lawsuit is brought against your company. By starting LLC that is correctly setup, you are usually protected.

2. Have a professional image - Nothing says professional company like a legitimate business structure. Just about anybody can start a company, but it is the people that go the extra distance by setting up a business structure show how serious they are about their company, and people take notice of this.

3. Trust - If your business is an LLC, you are making it particularly easy to discover suppliers in which to do business with you, and particularly easy to get a business loan. Operating your business as a profession, and not a hobby, is a wonderful way to gain trust with those companies that you need to work with.

4. Low audit risk - Sole proprietorships are more at risk to facing an IRS audit than LLCs. This most likely has something to do with the fact that a person might be using the business as an excuse to get some tax benefits, though they would get more if they actually had an LLC and the IRS is onto these people. However, if a person has taken the effort of LLC formation, it is likely they are in business for all of the right reasons.

5. Business flexibility - When operating as an LLC, you have greater choices in how to handle operating your business. Adding additional owners is a simple process, which is not possible as a sole proprietor. A limited liability company is a very flexible business structure that gives a variety of options on how you wish to manage your company.

If you are going to run a business, then you should do what you can to run it as effectively as possible. Making use of an LLC as your business structure has many virtues, even more than those listed in this article. Treat your business right and make it an LLC.

Article Source: http://EzineArticles.com/?expert=Will_Karter

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Tuesday, February 6, 2018

Monday, February 5, 2018

4 Things You Need To Know About Advanced Directives


It is a sad truth that death is an inevitable part of life. And, even though many of us are reluctant to face this fact, it is no excuse to fail to plan for your end-of-life healthcare, particularly if you are past retirement age. Although it may be scary to think about your end-of-life decisions, it can greatly improve the quality of life for your family after you are gone, and will reduce the chance your passing is a burden on your family. Advanced directives offer you the assurance that your last wishes will be fulfilled. Here are four things to know about them.

1. What is an Advanced Health Care Directive?

An advanced directive is a generic term for a legal document that describes to and instructs others about your medical care, in the event you are unable to make your decisions known. A directive only becomes effective under circumstances described in the document, but in general allow you to do two things. The first is to appoint a health care agent or power of attorney. This person will make decisions on your behalf. Secondly, the directive will provide instructions about exactly what forms of health care you want and do not want.

2. Why Are Advanced Directives Important?

According to recent surveys, the majority of people would prefer to die in their own homes. However, many terminally-ill patients meet the end of their life while in the hospital, typically while receiving ineffective treatments that they may or may not really want. Occasionally, this confusion can cause conflict between the surviving members of the family, leading to fights and arguments. Meanwhile, the dying person's thoughts and wishes remain unexpressed. An advanced care directive prevents all of this. From documenting the treatments you want, to describing your wishes for your remains and personal effects, advanced care planning is highly beneficial.

3. Creating an Advanced Care Directive

An advanced care directive and living will does not have to be complicated, however the content may be complex and should be considered carefully. In general, it will consist of short, simple statements about what types of treatments you would accept or deny, given particular circumstances where you are unable to speak for yourself. It is important to create this document with the help and guidance of your family, legal, health, and financial professionals for maximum effectiveness.

4. Talking With Your Loved Ones About Your Choices

A vital step in advanced care planning is to clearly communicate your wishes to your loved ones and family about your decisions, and why you are making them. For most of us, this conversation can seem like a daunting task. You may be uncomfortable bringing up your own death with your loved ones, or it may seem like poor timing to have that conversation, but it is much better to have this conversation now, before there's a problem, so that everyone can remain calm and relaxed.


Article Source: http://EzineArticles.com/?expert=Rocky_C_Rhodes

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Sunday, February 4, 2018

Estate Planning 101 - Wills, Living Wills, Power of Attorney, Trusts


Estate planning sounds so overwhelming: Wills, Living Wills, Power of Attorney, Trusts, Guardianships, etc., etc., etc.

What does it all mean and what do you really, really need to ensure that your family will be cared for when you pass away?

While the following definitions are by no means intended to be all-encompassing, or cover all of the variations of each document, they are helpful for the estate planning novice in determining what documents are right and necessary for them.

What is a will?

A will is a written legal declaration by which a person makes known how their property will be disposed of upon their death. Property includes not only real property (land, house, condominium, business storefront, etc.), but also personal property such as jewelry, art, sports memorabilia, even pets.

What is a living will?

A living will is a legal document, by which a person makes known his or her wishes regarding life-sustaining or life-prolonging medical procedures, such as resuscitation. A living will can also be called an advance directive, health care directive, advance medical directive, or physician's directive.

What is power of attorney?

Power of attorney is a legal document by which Person A gives Person B the power to make decisions about their legal and/or financial affairs upon Person A's incapacitation. Powers of Attorney expire upon your death.

What is a trust?

Trusts come in all forms and can be straightforward or extremely complex. Simple stated, trusts are a financial arrangement that allows a third party (the trustee) to hold assets on behalf of a beneficiary. How and when the assets pass to the beneficiary can be controlled by establishing a trust.

The sooner you get started, the sooner you'll have the peace of mind in knowing that your family will be cared for when the inevitable happens.

Even if you have completed estate planning, it's never really 'done.' Life is going to come along and make you re-do it.

Following are a few examples of life circumstances that necessitate your updating your estate planning documents:

  • IF you had a baby
  • IF you got married
  • IF you got divorced
  • IF you adopted a child
  • IF you have a new grandbaby
  • IF a relationship within your family has changed
  • IF tax laws have changed
  • IF your estate value has dramatically increased (or decreased)
  • IF you moved to a new state
  • IF you retired
  • IF you changed your investments

Article Source: http://EzineArticles.com/?expert=Nancy_L_Holm

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Friday, February 2, 2018

Estate Planning : How are Trusts Taxed?



In estate law, trusts are taxed differently depending on whether they are revocable or irrevocable trusts. Learn how a trust is taxed from an estate planning and probate lawyer in this free video on estate law.