Tuesday, July 30, 2019

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.


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Monday, July 29, 2019

Three Types Of Trusts


A brief white board animation explaining 3 different types of Trusts.

Sunday, July 28, 2019

What Is a Deed of Trust and What Is It Used For?


A deed of trust is a term for a document which has a specific legal meaning in the United States not shared in other parts of the world. It means that the value of land or so-called real estate is transferred to a trustee who holds the land or real estate as security in relation to a loan. The usual language used to describe the person borrowing the money is that of trustor whilst 'beneficiary' is the word used to describe the person that benefits from the deed, or in plain English the person or institution that lent the money.

This type of legal document is only relevant in a few states. The states which usually use this type of deed are Alaska, Arizona, Arkansas, California, Colorado, the District of Columbia, Idaho, Maryland, Mississippi, Missouri, Montana, Nebraska, Nevada, North Carolina, Oregon, Tennessee, Texas, Utah, Virginia, Washington, and West Virginia. The other states in the United States tend to prefer the use of mortgages to secure the interests of lenders in relation to real estate transactions. Theoretically, the loan to which this type of deed relates is created in such a manner that lending institution or person transfers money to the trustor so that they may purchase the property so that the purchaser may then transfer this money to the person selling the property and the seller then executes a grant deed followed by an accompanying trust deed executed by the purchaser to create the trust deed. However, the usual practice is that the property is put into the hand of an escrow holder until the funds are available and the grant deed and deed of trust are in the possession of the escrow holder to enable the reversal of the purchase if all of the necessary elements do not fall into place.

A trust of this type is certainly distinguished from the nature of a mortgage because this type of property document revolves around three parties. A mortgage is only ever between two parties. Also, a trust of this nature does not actually involve a transfer of title from the mortgagor to the mortgagee in the way that a mortgage does. Usually, the method of documenting a deed of this nature is with the county clerk near the location of the property. This enables the searching and registration of encumbrances and interests in the relevant property such that it is possible to have an open system of property registration.

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Friday, July 26, 2019

Living Trust and Wills - By the People


Living Trust or a will? Rene talks about some of the differences and what sets one apart from the other to help you make the best decision for your needs. Call Rene or Tammy at 707-428-9871 with any questions you may have, and see their website at http://www.bythepeopleca.com

Thursday, July 25, 2019

Is Probate Necessary?


Whether probate is necessary depends on what property the decedent owned, how it was held, and on the law of the state in which the decedent died and the laws of any states where the decedent held property.

Wednesday, July 24, 2019

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.

Tuesday, July 23, 2019

Becoming Incapacitated Without A Healthcare Power Of Attorney


A Healthcare Power of Attorney is meant to be in place to allow you to make healthcare decisions for yourself when you are no longer able to speak for yourself. You are considered to be legally incapacitated when you can no longer speak for yourself. What happens when you become incapacitated without having a healthcare power of attorney in place?

If you become incapacitated or no longer able to speak for yourself concerning medical decisions without a Healthcare Power Of Attorney in place for yourself then family members in most states might be able to step in to make decisions for you. This is put into place by the power under the Adult Health Care Consent Act of most states. The Adult Health Care Consent Act states an order of succession of who will be able to step in to speak for you in case of your incapacity. The Spouse is given priority in the order of those that can step in and speak for you. The next in line is the children.
The next in line is parents. After that are siblings. In the order of succession after the spouse each group of children or parents if there is more than one must come to an agreement on a decision to be made. This situation puts undue stress and difficult decision in the hands of family members that have within their choice the power to keep alive or let a family member die. This can lead to unnecessary fights or disagreements among family members at a difficult and stressful time.

When there are differing opinions on whether you should be allowed to stay alive or pass among family members the situation can quickly and literally become life and death. Unnecessary stress and arguments can be prevented by simply putting in writing your healthcare wishes in your advance directives. Take the choice and doubt over what you would have wanted to happen to you away from everyone else. This is a simple and selfless act that could potentially keep a family together by having a plan in place. Having a plan in place allows for everything to flow smoothly at a time when tensions and grief can be high and get even higher.

It is best to have a Healthcare Power Of Attorney in place to make your wishes clear and appoint one agent to make decisions on your behalf.


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Sunday, July 21, 2019

The Tax Benefits of a Limited Liability Company


A limited liability company, or LLC, is one of the most popular business entities today but also one of the newest. An LLC is unique in that it's a pass-through entity. The IRS does not consider an LLC a legally separate entity in terms of taxation, so all business income, losses, and expenses are "passed through" to individual owners to report on their personal income tax returns.

By default, a single-member (or single owner) LLC is taxed as a sole proprietorship. An LLC with more than one member is taxed as a partnership by default. There are many tax advantages (as well as drawbacks) to forming an LLC instead of a corporation.

Flexible Taxation

One of the biggest benefits of forming an LLC is you can choose how you are taxed. This is one of the lesser understood advantages of a limited liability company. When you file your taxes, you can choose to file as a "disregarded entity" and get the default tax treatment or you can choose corporate tax treatment. If you choose the corporate taxation structure, your business will be taxed at a much lower corporate rate on the first $75,000 in income. Keep in mind an LLC's tax rate is completely dependent on the owner's income. If you have a higher income, you will likely pay lower tax rates by choosing corporate treatment.

Lease Assets

With a limited liability company, you can lease your personal assets to the company. This means you can run your LLC from your home office and have the LLC leasing the office from you. Doing so means you are creating a business expense that you may be able to write off while improving your personal financial situation. This is a tricky area, however, as the expenses must be legitimate business expenses and you will need a formal lease agreement in place.

No Double Taxation

Corporations are subject to something known as double taxation, which means a corporation first pays taxes at the corporate level then again on income from dividends that are distributed to owners. LLC owners are not subject to double taxation; business income is reported on your personal income tax return and taxed once.

Tax Disadvantages

While there are certainly tax benefits to an LLC, there are drawbacks as well. LLC owners are required to pay taxes on their distributive share of the company's profit, even if they do not receive the distribution because the money stays with the business. Corporate owners are not required to pay taxes on business profits unless the profits are distributed (usually as dividends).

Finally, as an LLC owner, you will also be required to pay self-employment taxes, even if you are a single member LLC. Corporate owners who work as employees of the company, meanwhile, only pay half of this tax amount on their salaries while the corporation pays the rest.


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Saturday, July 20, 2019

Friday, July 19, 2019

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.

Thursday, July 18, 2019

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.


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Wednesday, July 17, 2019

Should You Include Your Spouse When Forming a Small Business LLC?


In this video, you learn reasons why you may not want to have your spouse included in your LLC. But every situation is different.

Monday, July 15, 2019

Setting Up an LLC - The Benefits and Steps of a Limited Liability Company


A limited liability company (which is commonly abbreviated as LLC) offers limited liability to its owners as a legal form of business company in the United States. Many small business owners are drawn to this type of business formation because it offers limited liability for the actions and debts of the company. This type of business formation excludes personal liability from the general debts and other obligations of the company and limits the liability of the owners to the extent of their equity. An LLC has characteristics of both a partnership and corporation; the primary partnership characteristic is the availability of pass-through income taxation while the primary corporate characteristic is limited liability.

Many entrepreneurs choose to setup an LLC for tax reasons. LLCs avoid "double taxation" because the income of the LLC itself is not taxed at the company level. Instead, taxes on profits and deductions of losses are computed at the individual level on the personal tax return of each LLC member (owner). LLC owners can elect for the IRS to tax the LLC as a sole proprietorship, partnership, C Corporation, or S Corporation. Owners make this election through the IRS after the company forms with the state.

After setting up an LLC, the bottom-line profit of the business is not considered to be earned income to the members, and therefore is not subject to self-employment tax. But it is still important to consider that the managing member's share of the overall profit of the LLC is considered earned income, and is subject to self-employment tax.

Members of an LLC are compensated using either guaranteed payments or distributions of profit. Guaranteed payments represent earned income to the members, which qualifies them to enjoy the benefits of tax-favored fringe benefits. A distribution of profit allows each member to pay themselves by merely writing checks. However, as a member of an LLC, you are not allowed to pay yourself wages.

Another important perk of setting up an LLC is that the managing member of an LLC can deduct 100 percent of the health insurance premiums he pays, up to the extent of their pro-rata share of the LLC's net profit.

The basic steps to setting up an LLC are fairly simple:

Step 1: Find a copy of the LLC Articles of Organization Form for your state. This is usually located at the Secretary of State's office. It is also a good idea to check there are any rules concerning business names in your state.

Step 2: Choose a name for your business. Almost any name will work so long as it is not the same or deceptively similar to a name being used by another entity that is filed with the State Filing Office which is usually the Secretary of State's Office. The name must end with the words Limited Liability Company or an abbreviation such as LLC or L.L.C. The ending such as LLC or Inc is not considered part of the name when searching for availability.

Step 3: Complete and File the Articles of Organization form with the State Filing Office. The State Filing Office where you turn in the form is usually the Secretary of State where you are required to pay a filing fee. The Articles of Organization form is a relatively simple document that includes the name of your business, its purpose, office address, the registered agent who will receive legal documents, and the names of each initial member of your proposed LLC. A registered agent is simply a person or incorporated company who can accept service of legal papers if your company is sued or the person who can receive mail from the State Filing Office. You can act as your own registered agent, however, the address you use must be a street address and not a P.O. Box. The address is important to make sure you receive papers that are served or sent to your company.

Step 4: Submit a notice to your local newspaper for publishing. This step is sometimes required by your state, you may want to check to make sure. Some states even require this step to be done before filing your Articles of Organization form. This notice should detail your intention to setup an LLC.

Step 5: Prepare and Sign an Operating Agreement. This is not required by the state but is a very important step in maintaining your liability protection and preventing disagreements between the members. The Operating Agreement is an essential document which sets forth the rights, duties and obligations of each member of the LLC. It also usually sets the ownership percentages between the members, the division of profits and the distribution of income. This document can also strengthen your liability protection by demonstrating that you have completed the organization of the company and are in compliance with the process.

The State Filing Office usually does not provide Operating Agreements, this will be something that you have to come up with. Many people use online services such as settingupllc.com, and other people go further and hire attorneys which can be much more expensive.

Step 6: Obtain an Employer ID Number (EIN) from the IRS. As a separate legal entity, your LLC requires its own federal tax identification number from the IRS. This can sometimes be avoided if an LLC is owned by only one person, in which case the person has the option of reporting taxes on his own social security number. To get the Employer ID Number you can acquire from SS-4 from most post offices and then file it with the IRS.

Step 7: Setup a Separate Bank Account for the LLC. A separate legal entity requires a separate bank account. It is important that you do not co-mingle your funds between business and personal bank accounts. The courts will look at this if you were to ever get sued.

Step 8: Document Ownership Interest Percentages of the LLC. To avoid disputes and ownership conflicts in the future, it is important to assign ownership percentages when the company is first formed. This step is not necessarily required, but it would be very wise.


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Sunday, July 14, 2019

Advance Health Directive: The Living Will and The Power of Attorney



A living will, also called will to live, is one type of advanced health care system, or advanced health care principle. It often goes along with a specific type of power of attorney. These are legal tools that are usually witnessed or notarized.
A living will usually covers specific directions as to the course of treatment that is to be taken by caregivers, or, in particular, in some cases denying treatment and sometimes also food and water, should the patient be unable to give conscious consent ("individual health care instruction") due to illness.
A power of attorney for health care, appoints an individual (a proxy) to give health care decisions should the patient be unable to do so.
Refusal of treatment forms, the name suggests, the term "will to live", as opposed to the other terms, tends to point out the wish to live as long as possible rather than refusing treatment in the case of serious conditions.
In the Netherlands, patients and likely patients can identify the circumstances under which they would want euthanasia for themselves. They do this by providing a written order. This helps to ascertain the preexisting expressed wish of the patient even if the patient is no longer able to exchange a few words. However, it is only one of the factors that is taken into account.
In Switzerland, there are several associations which take care of registering patient declarations, forms which are signed by the patients declaring that in case of unending loss of judgment (e.g., inability to communicate or severe brain damage) all means of prolonged life shall be stopped. Family members and groups, also keep alternatives which entitle its holder to enforce such patient decrees. Establishing such decrees is pretty straightforward.
In the United States, most states recognize living wills or the label of a health care surrogate. However, a "report card" issued by the Robert Wood Johnson Foundation in 2002 concluded that only seven states deserved an "A" for meeting the standards of the model Uniform Rights of the Terminally Ill Act. Surveys show that one-third of Americans say they've had to make decisions about end-of-life care for a loved one.

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Saturday, July 13, 2019

Criminal Records: Do You Qualify for Expungement?



Expungement is not the same thing as sealing. The terms are very close in meaning with subtle differences. However, an expungement means that the criminal record is erased as if they crime never happened. Sealing simply hides the record and make it no longer public information. This is important because each state has different laws that apply to each of these terms.

Friday, July 12, 2019

Estate Planning Eases Confusion, Financial Worries



What you need to know about estate planning, including why having a will and assigning a power of attorney is crucial.

Thursday, July 11, 2019

Why Making a Will Is An Important Task for Your Family And You


All our lives we work hard to ensure that our family never has to face a difficult time ever but we promptly forget all about them at the end. We are talking about preparing wills or last testaments that people almost always don't prepare or unnecessarily delay due to a psychological block. The psychological block is our inherent fear of death which is aggravated during the making of a will. The preparation of a will is almost an indication of our own mortality and that is something none of us want to accept.

But whether we accept it or not, our mortality is the only truth and we must keep the responsibility of taking care of our family with us. A will could save our family from a host of troubles out of which some could be huge hassles that will need a lot of time and resources to solve. Say, for example, the most common form of trouble that comes from the non-preparation of a will is property disputes. Normal property disputes could siphon off huge amounts of time and resources. Plus there is no guarantee that the problem will be solved within a stipulated time. Property disputes are known to stretch for years and some even extend till the death of the supposed beneficiary. This means there are chances that your family might never get to enjoy the property that rightfully belongs to them.

Does that statement depress you? But that's simply the beginning as there will be more and more problems associated with the non-existence of a will.

The next problem that could occur is the proper division of the property and in case of common ownership of a property- the lack of a trust fund. These are legal wrangles that could again put pressure on your family or dear one's resources.

Making a will is the best form of property management as the methods of division is expressly mentioned in the will. Without the existence of a will, there are chances that the beneficiaries or dependents will have a tough fight in their hands to ensure their right on the property. Then there are properties which have common ownership and for those, you need to create a trust fund. But that's again not possible without the presence of a will or testament.

Make a will immediately as this will not only guarantee the peace and security of your loved ones but also give you the strength to accept your own impending mortality.


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Wednesday, July 10, 2019

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 safeguard 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!


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Tuesday, July 9, 2019

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

Sunday, July 7, 2019

Estate Planning : Family Estate Trust or Revocable Living Trust?



Most people who ask for family estate trusts really want a revocable living trust to reduce estate taxes and manage finances.

Friday, July 5, 2019

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 only have a tax break of $5.12M.

Conclusion

When comparing the differences in 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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Thursday, July 4, 2019

Happy 4th of July!


From every mountainside, let freedom ring. 
Martin Luther King Jr.

Wednesday, July 3, 2019

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 a 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 a 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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Tuesday, July 2, 2019

Conservatorship Information



A conservatorship is a court proceeding that grants one or more people the authority to make financial or health care decisions for another because of a mental or physical incapacity that renders a person unable to make informed and sound decisions.

A conservatorship can be over the person, the estate, or both. The person appointed by the court to make decisions is called the conservator, and the person about whom decisions will be made is called the conservatee.

Conservators are generally family members or a professional conservatorship company and in some cases, the Public Guardian's office may be appointed. Regardless of who the conservator is, their duty is to act solely in the best interests of the conservatee. To insure this, court evaluation, supervision and monitoring of the conservatorship is established.

Monday, July 1, 2019

Wills and Trusts - What Are the Differences?


Both of these legal documents offer a way to distribute estate assets when a person dies but each is different in a variety of ways.

Wills

With a will, it is cheaper to prepare but it can be expensive to probate. In many jurisdictions, according to estate law, this is a legally binding document, which will allow you to give your assets to a designated beneficiary or beneficiaries. Unfortunately, this usually does not happen until after the person of the will dies. A will executor carries out the distribution of their assets. After the creator dies, the will must go through probate. During probate, the court will decide if the will is valid. Then the court will supervise the distribution of the assets. This can be a costly process because the assets can be subjected to estate taxes. When this is the case, an estate lawyer's services may be required.

With a will, one of the drawbacks is that they become public record after the creator's death so everything about the will is public knowledge. In order to manage the distribution of assets, there will be a conservatorship or a power of attorney.

Trusts

A trust is more expensive to prepare but when there is a trust, it will usually allow the beneficiaries to avoid any probate costs. After having a trust written it can take effect any time during a person's lifetime using a trustor to convey assets to the trustee to hold for the beneficiaries. When the creator dies, the probate is avoided. This is because the assets were transferred during the lifetime of the trustor. The trust will continue to function even after the trustor dies.

With a trust, it will usually remain private and allow the beneficiaries of the trust to maintain confidentially about the specific terms of the trust. Generally having a trust can provide more tax benefits. In some jurisdictions, they will allow for a certain amount of the trust assets to be passed on to the beneficiaries without requiring them to pay gift and estate taxes. Depending on any applicable trust laws, the tax perks available will vary from one jurisdiction to another jurisdiction.

In managing a trust, it can be done by a trustee or a trustor but will depend on how the trust has been set up. If the trustor manages the trust then he will usually specify who will manage it once he has died.

In conclusion

Looking at all the facts it appears that it is best if a trust is set up to distribute the assets instead of using a will. If you are uncertain talk to an estate attorney for legal advice as to which one you should set up for your particular situation.


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