Facts About A Probate Process

When a person dies, someone has to handle their estate and the process it through a legal system. This is what is commonly referred to as probate. It is also sometimes referred to as administering the estate. The term estate refers to any money, property and other possessions.

The process involves collecting all the possessions left, paying any outstanding debts and distributing whatever is left to the people entitled to it. It helps transfer the estate in a supervised and orderly way. Estate administration applies whether the deceased left a will or not. In practice, the process will depend on whether the deceased left a will and where they lived.

If there was a will, the executor named in the will is in charge of the property administration process. If a will was not left, an administrator will be appointed by the court to administer the estate. The general term for the person in charge of administration for an estate is the personal representative.

In America, the process is usually under the jurisdiction of the probate courts which are state courts. This means that the process will vary from state to state. In the U. K, the process for England, Scotland, Northern Ireland and Wales is also different. However, the general procedure is similar for most jurisdictions in many places.

The executor of the will or the administrator is given the authority to handle matters of the deceased by the court. The document showing that he/she has the authority is used to access any assets held by the deceased. The activities of the personal representative are usually governed by strict rules to avoid misuse of power granted to them.

In some places, the personal representative has to notify the public that the estate owner has passed on. This gives any person with any alleged claim to the estate an opportunity to file a formal complaint. The personal representative is in charge of payment of any debts or taxes that were owed by the deceased.

The personal representative conducts a complete check of the property in the estate and collects all necessary documents. There are some assets that are non-probate, for example assets held jointly, the ownership automatically passes to the remaining person in case of death of one on of the owners. The inventory check is important to identify all assets and make sure the assets are adequate to cover the debts owed. The payment of creditors is done according to merit and this varies in each area. The will, if available, determines how the property will be divided. If there is no will, the probate laws determine what each beneficiary gets.

The distribution of assets to the beneficiaries usually marks the end to the probate process and the property accounts are then closed. In most cases, the personal representative is entitled to a fee. The probate process can be complicated depending on how complicated the property is. If the property to be probated is in different jurisdictions, different processes may have to be followed.


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Do You Need A Living Trust?

Living trusts are a much talked about topic in the field of estate planning, and for good reason. You may have heard financial planners or attorneys mention these trusts as a "must have" item in your planning portfolio, but may be confused as to what a living trust really is, what it accomplishes, and most importantly, if you really need one.

What Is A Trust?

A trust is an arrangement in which one person, the trustee, holds legal title to the property of another person or group of people, the beneficiaries. Every trust must have at least one trustee, one beneficiary as well as property which is placed into trust, called the corpus. A trust document sets out the rules that the trustee has to follow when managing, distribute, and generally overseeing the corpus. A living trust, also known as an inter vivos trust, is a trust which is set up by the settlor (person creating the arrangement and funding the trust) while he/she is still alive.

How Does This Benefit Me?

A. Reduces Cost: When a person passes away, assets titled in his/her name pass either under the will or by the laws of intestacy which dictate how assets are distributed if there is no will. Either process requires the intervention of the local Surrogate's Court and, most likely, an attorney. An attorney will typically charge 3-5% of the total value of the probate estate which is in addition to a similar amount charged by the executor/administrator. With a revocable living trust, there is a slightly higher initial fee to set up and fund the trust, but it is usually a fraction of the cost of probating a will.

B. Saves Time: By going through the judicial process of probate, the validity of your will is open to challenges by disinherited heirs and other interested parties. Intestate heirs, also known as distributees, can challenge the validity of a will if they stand to receive more money if there had not been a will at all. The probate/administration process can protract the transfer of assets by months in the best case scenario and years in the worst. This can delay getting your assets to those who need them and costs your estate unnecessary legal fees. Since a revocable living trust is not a public document and does not need to be filed with the court in order to distribute assets, there is less unnecessary delay in transferring the assets since the trust does not need to be probated. You will not have to waste time waiting to get letters testamentary appointing an executor since a successor trustee is appointed automatically by the trust. Additionally, while a living trust can be challenged, it is more difficult to do so than with a will.  All this means that your final wishes will be executed as quickly as possible.

C. Give You Control: Since a living trust will be prepared by you, typically in consultation with your attorney, you retain full control to specify what will happen to your assets when you pass away. You set the terms, pick the trustees, and direct them how/when to invest, manage, and distribute your assets.  Best of all, you retain complete control of the property in the trust while you are alive by naming yourself as trustee. Since the trust is revocable, you can amend or revoke the entire trust any time you wish.

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Your Non-Profit Organization - Benefits of Incorporating

The term "nonprofit" is used to identify any business that is organized to serve a public purpose. That is, a for-profit business sets a purpose of making money for the owners, where a nonprofit business sets a purpose of some charitable idea.

Not all nonprofits need to be organized as a corporation. For example, social groups or activity-based groups (quilt guilds, hunting clubs) may have no need for tax exemption or charitable status, so a basic state registration of the name may sufficient. However, there are significant benefits to incorporating a nonprofit, and any nonprofit that intends to grow or have significant cash flow through should consider taking the extra step to incorporating from the start.

The benefits of incorporating a nonprofit are akin to the benefits of LLC or corporation status of for-profit businesses. These benefits include:

Limited Liability

Except for rare, specific instances, the individuals who control a corporation are not liable for legal and financial obligations of the nonprofit. The corporation can incur debts and have legal obligations on its own, without the personal guaranty of its board members. Also, a corporation can own its own property, have its own bank account, and employ staff, all under its own name.

Continuity

A corporation continues to exist in perpetuity until legal dissolution, unless it is chartered for only a specific, limited period of time. Its existence is not dependent on the individuals involved. For this reason, some businesses, banks, and donors are more likely to deal with nonprofit corporations over unincorporated organizations...it indicates that the nonprofit is not going to end up for personal gain of the founders and will continue to exist on its own merit.

Uniform Set of Rules

Corporations are governed by a uniform, though flexible, set of rules established by state law. Thus, corporations are operated functionally the same and others (board members, staff, donors) know what to expect from the governance of the nonprofit.

Tax Exemption

Incorporation allows a nonprofit to apply for state and federal tax-exempt status. This means that the money the nonprofit brings in will generally be untaxable. If the nonprofit makes money from an activity unrelated to the stated purpose of the organization, it may be taxable, but general donations, grant funding, and other income directly related to the stated purpose is exempt from taxes.

Charitable Status

Incorporation also allows qualified nonprofits to apply for 501(c)(3) status, meaning donors can write their contributions off their taxes. This status is critical if a significant proportion of your income will come from the public or individual donors.

Most nonprofit organizations will benefit from registering as a corporation. In addition to the legal protections, incorporation adds an air of legitimacy to the organization. And, while securing 501(c)(3) status can be tedious, it is well worth the effort for any qualified charitable organization that will seek public funding. Also, most government and private grantmaking agencies prefer to deal with 501(c)(3) status organizations. If your nonprofit idea is likely to grow or branch out from where it starts, incorporating the business and pursuing the appropriate exempt and charitable statuses should begin as early as possible.

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The Advantages of an Uncontested Divorce

Many states these days give couples the ability to go through a simple uncontested divorce. In fact, this is the way most couples do divorce. It's relatively simple and inexpensive, and it preserves both parties' dignity and privacy.

Divorce is expensive no matter how you slice it, but if you do need to get a divorce, an uncontested divorce will let you save yourself time and money, and as much heartache as possible. This situation is difficult enough, and you don't have to make it more difficult to making the divorce itself contentious unless it's absolutely necessary to do so.

If there are particularly contentious issues in your marriage still to be resolved (such as child custody), then an uncontested divorce may not be the way to go, since of course you'll need to make sure your rights and those of your children are taken care of. In fact, in some states, if there are children involved, an uncontested divorce may not even be an option for you.

However, if you and your soon-to-be ex-spouse are on relatively good terms and simply need not to be married anymore, and if issues such as child custody are already worked out between you, then an uncontested divorce is going to be easier for everyone. Yes, the process of getting divorced is still painful, but an uncontested divorce makes it as simple a process as possible, too.

Privacy is also an issue with divorce. The disclosures you make to each other don't have to be a matter of public record unless you each want them to be if the divorce is uncontested. The agreement you make will have to be a matter of public record, but only that. By contrast, contested divorce is likely to have every single little nuance of the divorce a matter of public record simply because spouses in a major battle with each other make such things a matter of public record. So if you want to protect your privacy, work out the details of the divorce between you and simply make the final agreements a matter of public record, not every little discussion you to have had as well. This is easier on your children, too.

If you think you can't negotiate an uncontested divorce with your spouse, that's fine. Perhaps you can't. However, make sure that your spouse and you are both aware of the problems an uncontested divorce can help you avoid. It may very well be that simply faced with the differences in navigating through a contested divorce versus an uncontested one will convince the spouse who doesn't want the uncontested divorce to go through with it.

Now, it should be noted that you don't have to agree as to why the divorce is happening to make it uncontested. You only have to agree on the terms of the divorce to make an uncontested divorce possible. Therefore, at first blush, it may certainly be true that you think you cannot manage an uncontested divorce. However, after a bit of time has gone by and tempers have cooled, you may think that having an uncontested divorce is best for you after all. Think about it, think about the cost both financially and to your children, and then decide whether or not an uncontested divorce is your best bet.


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Incorporation/LLC

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5 Steps for Preparing an Advanced Healthcare Directive

An advanced healthcare directive made out to tackle any health problems will kick in the event where you are temporarily or permanently unable to make your own decisions due to any physical or mental conditions. Such a directive should be made thoughtfully, and if you want it to be truly effective, the following steps will tell you how.

• Plan the Contents: The first and most important thing when setting out to make an advanced directive is to decide how you want your treatment to be handled for the period when you cannot take a call. Your wishes can be generalized for accidents or ill-health or can specify particular ailments and medications, and the extent to which invasive treatment or life-sustaining techniques should be administered or even end-of-life wishes. The content will vary depending on your age, unique circumstances, or any particular wishes that you may have.

• Type of Directive: Next you will have to choose the kind of directive you want to have. You can make a set of instructions referred to as a living will or can appoint an agent or proxy to take decisions on your behalf by creating a power of attorney specifically for healthcare. However the most effective way is to combine both in the advanced directive to make it more effective in different conditions.

• Communicate: Before you finalize the directive you must talk to your doctor or any healthcare personnel who will not only tell you about the different aspects of such a directive but also the pros and cons of specific treatments, and how they can affect you in the future. In addition to the doctor you must speak with your family and take them into complete confidence so that there is no confusion when the time comes.

• Preparing the Directive: Once your mind is clear you can proceed to put down your directive on paper. At times a state may have a set of advanced healthcare directive forms that you can fill, but these may be too generalized in which case you can create your own directive to be more specific and customized. Most directives will require your signature along with those of two other witnesses, however you must find out for any other requirement of your particular region. Personnel at the healthcare facility can provide you with the proper guidance or may alternatively direct you to professionals who are well trained for such purposes.

• Pass on the Directive: The last but equally important step is to provide the concerned people with a copy of the directive. Ask your doctor to place the directive in your medical file so that anyone dispensing treatment at that time will be aware of your wishes. Also make sure your appointed agent has one and is thoroughly briefed about the contents. Finally make sure your family or close friends have a copy too.

One more thing to remember is that the advanced healthcare directive is a document that can be changed whenever you wish. Periodically you must review its contents and make the necessary changes to maintain its effectiveness.


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What You Should Know About Advanced Health Care Directives in California

This video is about Advanced Health Care Directives in California. It discusses what it is, why everyone should set one up, who you should chose as your agent(s), and who you should give copies to. 

Reasons For Keeping A Medical Power Of Attorney

Medical power of Attorney is also known as living will or advance health care directive which is only related to the decisions made for your medical care and health. You have to organize a medical directive according to your state's law authorizing that your partner should make the decisions on behalf of you in case of any illness or accident. Families of couples who are unmarried may raise their brows or may object on your decision to keep your partner as the medical power of Attorney. So you have to be very clear on that in the legal document, but then also there is no guarantee that the blood relations will not try to block your wish.

You should not keep the originals of your medical directive in the safe because when the legal documents are unavailable, wrong decisions might be taken on your treatment. Provide one copy of the HIPAA form, medical directives and other information related to your living will so that your agent can make right decisions. You must have the extra copies of your medical power of attorney as the doctors, hospitals or other persons who would like to know your decisions regarding the medical directives can go through it.

It is always wise to appoint an agent as your medical power of attorney, if you are in the later stage of your life. You agent can make decisions on behalf of you when you are not mentally strong to do so. You can select any individual you like as your agent or attorney-in-fact. Even though you have a living will, you should have a medical power of attorney as both are completely different from each other as legal documents. Living will shows the person's wish on the decision that should be made regarding the medical care, if there is a need of life support system whereas the medical directive is used to make important choices on medical care like using a life support system when the person is unable to make a decision.

This kind of power of attorney is not only used for older persons who are suffering from serious diseases, but also suited for young individuals who met with an accident or suffering from some serious health problems. The agent should perform the wishes mentioned in the document, even though the wishes made by you may contradict with your agent's wish. The agent should follow your instructions, even though they wish you to be alive disregarding your health condition. You should discuss your wishes with your agent so that you can assure that everything will go smoothly according to your wish when you are mentally incapable of executing those wishes. When you become mentally incapable, the agent will get the responsibility to act on behalf of you including the handling of all your money.

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DBA (Fictitious Business Name) Filings

Whether you're a corporation, LLC or sole proprietor, there may be advantages to filing a "Doing Business As" or "DBA" for your business. 
What is a DBA?

DBA stands for "doing business as" and is an official and public registration of a business name. DBAs are also known as Fictitious Names, Fictitious Business Names, Assumed Names, and Trade Names. Essentially, a DBA is the name of a business other than the owner's name or, in the case of a corporation, a name that is different from the corporate name as on file with the Secretary of State.

What are the benefits to filing a DBA?

A DBA makes it easy to: 
o Open a bank account and collect checks and payments under your business name 
o Look more professional, by establishing a separate business identity 
o Start marketing and advertising under a name other than your personal or corporate name

What is an example of a DBA and how it is used?

If you were a sole proprietor named Jane Brown and the name of your business was "Donuts Unlimited," you would register your business as Jane Brown, doing business as "Donuts Unlimited." 
I've already got a name for my corporation or LLC. Do I need a DBA?

If you have a corporation or LLC and want to do business under a name different from your corporate name, most states require that you file a "Doing Business As" name or "DBA."

For example, if an LLC is doing business under the name "Studio City," but the corporate name is "Pinnacle Projects, LLC," then a DBA should be filed for the name "Studio City." This DBA filing must be made in the county or state (where applicable) in which the registered office and principal address of the business are located.

What information is required for a DBA filing?

DBA filings will typically contain the name of the applicant, date of filing, name of the fictitious business and address for the business. Filings can be made by individuals or businesses. In most states, you must first file the DBA documents with the appropriate government entity, accompanied by a state or county fee. In some states, you also have to publish the name in a newspaper to give notice of the new business name.

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The Different Types Of HIPAA Compliance Forms

 In order for companies to be in compliance with the Health Insurance Portability and Accountability Act, or HIPAA, they must have the proper documentation. HIPAA compliance forms are pieces of documentation that help medical facilities and other businesses comply with the provisions of HIPAA regulations. This federal law, established by Congress, helps protect patient information of those individuals receiving medical care. The Health Insurance Portability and Accountability Act is a very serious matter. If a company is not in compliance with HIPAA regulations there are severe and specific penalties. All medical environments in patient or out patient care must follow HIPAA regulations. In order to have a satisfactory policy compliance there has to be a streamlined effort from all fields and levels of medical information. Below we will discuss some important HIPAA compliance forms.

3 HIPAA Compliance Forms You Should Know About

1. A notice of privacy practices is a common privacy form that you could be familiar with. This document informs patients of the provisions of HIPAA. This document will most likely be given to you by a health care specialist. You could possibly be given this document when you visit a medical facility. The document is generally meant for patients to better understand the regulations that protect them and how they are implemented.

2. Another HIPAA document you could be familiar with is the form to release your medical information to others. This document can be signed by a patient if they wish to release their information to other individuals such as a new medical office. If you have been referred to a specialist by your family doctor you will need to sign a release form so your medical information can be sent over to the specialist.

3. Patient request forms are another type of HIPAA related medical form. This can include a Patient Health Information (PHI) form. Also included in this category could be a patients request for accounting of disclosures. This form would entail a list of any offices that have received their medical information from a certain medical office.

Among other HIPAA compliance forms, another informal document called a HIPAA checklist is also available. This document provides a checklist of all the compliance information a medical facility should be following. This document can serve as a checklist for medical managers to follow to prioritize compliance. Many medical offices create these checklists on their own, as they are not required by HIPAA. Even though they are not required they are a great way to keep your office in check.

With HIPAA you can rest assured that your medical information will be safe and secure. The Health Insurance Portability and Accountability Act has changed the way medical information is transmitted and secured. When you travel to your doctor you will be able to understand the privacy documents you could be presented and realize that are they for your safety. HIPAA has dramatically decreased the fraud associated with health care. It continues to make our health care system more efficient and secure.

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