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.
Friday, April 12, 2013
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.
Four Reasons Why Business Owners Should Make A Will
If you own a business or have shares in a family company then you should
consider making a Will. The following are some of the reasons why
making a Will for business owners is so important.
1. The first reason is the fact you can select appropriate executors and trustees, who will be responsible for ensuring the running of the business after your death. Unlike funds in the bank, where management can be fairly minimal, your executors will almost certainly need to ensure the business is kept running in the short term until more long decisions can be taken.
For even the smallest business, your executor's job is to ensure that your financial obligations are met, this can include dealing with tax issues, employees and your business accounts. Failing to do so could have a detrimental effect on the value of the business and therefore mean your family lose out financially. So while your may ultimately want your spouse or children to inherit, if they are not going to be the appropriate executors then you can appoint executors who have the business skills to carry out the executor's duties effectively.
2. The second reason is that by drafting your Will, you can take advantage of the tax breaks offered for business property. There are ways in which the Will can be prepared to ensure that not only do you pass your business to the people you want to inherit, but you do so in a way that limits your total inheritance tax bill as well.
3. The third reason is for making a Will is so that you define exactly how your executors can act. By making a Will, you are able to ensure that your executors have all the necessary powers and authorities they will need to carry on your business and run it correctly. Without a Will, your estate may end up in a position where decisions or steps that are needed to ensure the survival of the business cannot be taken when they need to be. This could mean either a lucrative business opportunity is missed or that an expensive Court application is needed. Either way the result is detrimental to your estate.
4. The final reason for making a Will is to ensure that your interest in the business passes in the way that you want. So for example if you have that children assist in the business while others do not, you can draft your Will to take this into account.
You may therefore decide to ensure that your children who are involved in your business inherit the shares, while the others take cash or other assets. Doing this ensures both a fairness in the way your children are dealt with, but also means that your children who do take a role in the business will not to lose their livelihood following your death. Additionally it means that they will not be forced to sell the business to pay their siblings, a move which may mean they also lose out financially.
If you own a business then making a Will really is something to consider very seriously. The time and effort you have spent in building your business, and its value to it may not be properly passed to your family if you do not make a Will.
Article Source: http://EzineArticles.com/6820783
1. The first reason is the fact you can select appropriate executors and trustees, who will be responsible for ensuring the running of the business after your death. Unlike funds in the bank, where management can be fairly minimal, your executors will almost certainly need to ensure the business is kept running in the short term until more long decisions can be taken.
For even the smallest business, your executor's job is to ensure that your financial obligations are met, this can include dealing with tax issues, employees and your business accounts. Failing to do so could have a detrimental effect on the value of the business and therefore mean your family lose out financially. So while your may ultimately want your spouse or children to inherit, if they are not going to be the appropriate executors then you can appoint executors who have the business skills to carry out the executor's duties effectively.
2. The second reason is that by drafting your Will, you can take advantage of the tax breaks offered for business property. There are ways in which the Will can be prepared to ensure that not only do you pass your business to the people you want to inherit, but you do so in a way that limits your total inheritance tax bill as well.
3. The third reason is for making a Will is so that you define exactly how your executors can act. By making a Will, you are able to ensure that your executors have all the necessary powers and authorities they will need to carry on your business and run it correctly. Without a Will, your estate may end up in a position where decisions or steps that are needed to ensure the survival of the business cannot be taken when they need to be. This could mean either a lucrative business opportunity is missed or that an expensive Court application is needed. Either way the result is detrimental to your estate.
4. The final reason for making a Will is to ensure that your interest in the business passes in the way that you want. So for example if you have that children assist in the business while others do not, you can draft your Will to take this into account.
You may therefore decide to ensure that your children who are involved in your business inherit the shares, while the others take cash or other assets. Doing this ensures both a fairness in the way your children are dealt with, but also means that your children who do take a role in the business will not to lose their livelihood following your death. Additionally it means that they will not be forced to sell the business to pay their siblings, a move which may mean they also lose out financially.
If you own a business then making a Will really is something to consider very seriously. The time and effort you have spent in building your business, and its value to it may not be properly passed to your family if you do not make a Will.
Article Source: http://EzineArticles.com/6820783
Wednesday, April 10, 2013
Monday, April 8, 2013
Understanding Probate and Estate Planning
Everyone has heard the term probate
but not everyone knows that this term means. Probate is quite literally
the process your family members will go through with the government
after you have passed away. This is the transfer of your assets and
finances to your chosen beneficiary or beneficiaries. The executor of
the will is the one in charge of following this process through
thoroughly and making sure that your wishes are carried out as clearly
stated in your will. Your executor can be anyone, not necessarily a
relative and they handle your vehicles and houses, everything that is
left to them.
Article Source: http://EzineArticles.com/2147442
In the case that an executor was not
named in a will or a will was never named than a court hearing will
often name a relative to be the executor in order to get through the
probate process as simply as possible. This person is not random but
often the closest living relative or the person who received the most in
the will should there be one that was written.
There are several different phases
within probate. First, the executor or named administrator is required
to prove the validity of the will to a probate court before anything can
begin. Next the step is for the executor to provide statements of the
deceased debts and assets as well as the list of beneficiaries in the
will. From here the creditors will be notified of this death and they
will then have only 6months to collect any debts that are owed to them,
should there be any.
If money is owed it must be
collected from the estate, not from the beneficiaries who inherit it.
What this means is that the beneficiaries will not be able to inherit
their money until the creditors receive what is owed to them. Whatever
is left of the estate will then be distributed to the beneficiaries.
There are cases where probate court
is not necessary to take care of a person's will. If a person has very
few possessions and money to distribute the court is not necessary and
the beneficiaries distribute the will without the law to guide them.
Also, if anything is jointly owned, for example a husband and wife, the
other person will get everything by default.
When people write their wills they
almost never consider the act of probate and often do not even really
understand how probate works. Probate should be part of your research
and understanding before you begin writing your will and/or your estate.
This is a very confusing stage in life that should be understood as
best as possible for everyone. Probate can be a very pain staking cycle
for your loved ones left behind and when planning your estate your
lawyer can help you do what you can to avoid probate court for your
executor.
Article Source: http://EzineArticles.com/2147442
Saturday, April 6, 2013
End of Life Decisions That Count
Advance Medical Directive also known by the name of living will,
personal directive, or advance healthcare directive is a set of
instructions that define the health care parameters in case you are not
able to make decisions on your own due to illness or incapacitation.
These instructions usually involve the appointment of a person for
making health related decisions on behalf of the incapacitated person.
There are two approaches to carrying out an advance medical directive. The older and traditional structure of such directive is known as the "Living Will". Named such due to the fact that the person making the will is likely to be living at the time of its execution. In this type of directive specific instructions are laid out for the health care providers to follow in case the person giving the instructions is unable to give any instructions on his own.
The second approach is by way of granting a 'medical power of attorney'. This involves the appointment of an agent (usually a family member or a close friend) to take health care related decisions on behalf of the granter in case of his or her incapacitation. This way the granter can make sure that detailed matters concerning the end of life health care procedures are carried our according to his or her wishes. These matters may include general care such as the level of comfort, the option of hospice, personal grooming, and bathing. However these can be more health specific concerning how to go about certain medical procedures like infusions, dialysis, tube feeding, and may include decisions such as continuing or withdrawing the life support system.
The need of advance medical directive has increased in the recent times due to the fact that up to 55% of Americans spend their last days in health care institutions, which is often a long and grueling period for both the dying and their loved ones. Given the advancements in medical technology a near dying person may be kept alive by putting him or her on an artificial life support system and if prolonged this period can be quite stressful both financially and otherwise for the relatives.
Making end of life decisions like these you can have the peace of mind that in case of your incapacitation you will be looked after exactly as you would want, and it also goes to show that how much you love your family and would not want them to suffer unnecessarily on account of your end of life health care issues.
There are two approaches to carrying out an advance medical directive. The older and traditional structure of such directive is known as the "Living Will". Named such due to the fact that the person making the will is likely to be living at the time of its execution. In this type of directive specific instructions are laid out for the health care providers to follow in case the person giving the instructions is unable to give any instructions on his own.
The second approach is by way of granting a 'medical power of attorney'. This involves the appointment of an agent (usually a family member or a close friend) to take health care related decisions on behalf of the granter in case of his or her incapacitation. This way the granter can make sure that detailed matters concerning the end of life health care procedures are carried our according to his or her wishes. These matters may include general care such as the level of comfort, the option of hospice, personal grooming, and bathing. However these can be more health specific concerning how to go about certain medical procedures like infusions, dialysis, tube feeding, and may include decisions such as continuing or withdrawing the life support system.
The need of advance medical directive has increased in the recent times due to the fact that up to 55% of Americans spend their last days in health care institutions, which is often a long and grueling period for both the dying and their loved ones. Given the advancements in medical technology a near dying person may be kept alive by putting him or her on an artificial life support system and if prolonged this period can be quite stressful both financially and otherwise for the relatives.
Making end of life decisions like these you can have the peace of mind that in case of your incapacitation you will be looked after exactly as you would want, and it also goes to show that how much you love your family and would not want them to suffer unnecessarily on account of your end of life health care issues.
Friday, April 5, 2013
The LLC Set-Up: Setting Up a Limited Liability Company
To set up an LLC or limited liability company is one of the major
decisions that any business or company can undertake. This form of
business registration has a lot of implications for the operation and
management of the company and can ultimately contribute to its success
or failure. But the first thing any business that wants to set up an LLC
should do is to get good advice. There are pros and cons to this type
of business registration and to set up an LLC will take some time and
money, the two most important resources that any business has. It is
useful to examine the options before investing either.
The simplest form of business registration is a sole proprietorship. This is usually a simple registration of the fact that an individual wishes to engage in public commerce and the nature of that business. Unless there are other licenses to obtain from the local regulatory authorities because of the nature of the business, this means a trip to City Hall, filling out the required forms, paying the minimal fees, and obtaining a business number that allows the company to begin business. The individual owner can then start up operations and assume all of the liabilities and tax requirements of the business.
A more complex form of business registration is incorporation. This involves registering the business as a corporation and issuing shares in that business to others who may wish to be part of the business. The act of incorporation involves filing acts of incorporation with the state and while an individual can prepare and file these without an attorney, legal and financial advice is usually required to ensure that the documents are in order. There will have to be a Board of Directors, officers of the corporation and a method to inform shareholders of the on-going operations of the business.
Somewhere in the middle of the previous two options is the option to set up an LLC. An LLC is more complex than a sole proprietorship and simpler than incorporation. It has some benefits and disadvantages. The disadvantages to choosing to set up an LLC are mostly in the time and costs of going through the process. Once the business has been set up as an LLC or a limited liability company the advantages begin to kick in.
The major reason to set up an LLC is to protect the owner or owners of a business from liability. This form of business registration limits the liabilities of the owners to the level of investment that they have made in the business. All other debts, responsibilities or liabilities that are incurred or caused by the operation of the business are not their responsibility.
The other main reason to set up an LLC is for taxation purposes. Income from a limited liability company is only taxed once and the state does not levy additional income tax on the company or business itself. This is different from a C-corporation where income is seen as both corporate and personal and taxed at both levels when dividends are taken.
Article Source: http://EzineArticles.com/192876
The simplest form of business registration is a sole proprietorship. This is usually a simple registration of the fact that an individual wishes to engage in public commerce and the nature of that business. Unless there are other licenses to obtain from the local regulatory authorities because of the nature of the business, this means a trip to City Hall, filling out the required forms, paying the minimal fees, and obtaining a business number that allows the company to begin business. The individual owner can then start up operations and assume all of the liabilities and tax requirements of the business.
A more complex form of business registration is incorporation. This involves registering the business as a corporation and issuing shares in that business to others who may wish to be part of the business. The act of incorporation involves filing acts of incorporation with the state and while an individual can prepare and file these without an attorney, legal and financial advice is usually required to ensure that the documents are in order. There will have to be a Board of Directors, officers of the corporation and a method to inform shareholders of the on-going operations of the business.
Somewhere in the middle of the previous two options is the option to set up an LLC. An LLC is more complex than a sole proprietorship and simpler than incorporation. It has some benefits and disadvantages. The disadvantages to choosing to set up an LLC are mostly in the time and costs of going through the process. Once the business has been set up as an LLC or a limited liability company the advantages begin to kick in.
The major reason to set up an LLC is to protect the owner or owners of a business from liability. This form of business registration limits the liabilities of the owners to the level of investment that they have made in the business. All other debts, responsibilities or liabilities that are incurred or caused by the operation of the business are not their responsibility.
The other main reason to set up an LLC is for taxation purposes. Income from a limited liability company is only taxed once and the state does not levy additional income tax on the company or business itself. This is different from a C-corporation where income is seen as both corporate and personal and taxed at both levels when dividends are taken.
Article Source: http://EzineArticles.com/192876
Thursday, April 4, 2013
Living Will FAQs - Once I Write My Living Will, Can I Make Changes to It?
Living Wills are not a necessity, but a good thing to have, in case at
some point in your life you may not be able to make decisions about your
own health and finances. A living will can be done on your own, or by
an attorney, and lists how to distribute your assets in the event that
you cannot handle your own finances, or if you need someone to make
important health decisions on your behalf.
However once a living will is created, time can change things, and in some cases, living wills may need to be altered. This can certainly be done. The original living will can either be destroyed or have a letter of cancellation attached to it. If you had done your living will through an attorney, it may be advised that you contact your attorney to help make the necessary alterations to the will.
Otherwise, you are free to alter your living will as you need to. It is important that you check with your state government office to make sure you are doing it correctly, however, so that your original will or your altered will aren't thrown out in court if it ever comes to that point.
A living will can be an important document, should anything unfortunate and unexpected occur. Having one that is up to date with the correct information and requests will make things easier for you and for your family. It's best to look at your will at least once a year and alter it if necessary, just to be safe.
Article Source: http://EzineArticles.com/4898056
However once a living will is created, time can change things, and in some cases, living wills may need to be altered. This can certainly be done. The original living will can either be destroyed or have a letter of cancellation attached to it. If you had done your living will through an attorney, it may be advised that you contact your attorney to help make the necessary alterations to the will.
Otherwise, you are free to alter your living will as you need to. It is important that you check with your state government office to make sure you are doing it correctly, however, so that your original will or your altered will aren't thrown out in court if it ever comes to that point.
A living will can be an important document, should anything unfortunate and unexpected occur. Having one that is up to date with the correct information and requests will make things easier for you and for your family. It's best to look at your will at least once a year and alter it if necessary, just to be safe.
Article Source: http://EzineArticles.com/4898056
Wednesday, April 3, 2013
The 3 Biggest Mistakes With A Living Will (Prepare This Gift To Your Family Today)
- Not Choosing an advocate for your living will. This person need not be a medical professional, but should be a compassionate and caring person. The medical professionals will be there for your advocate to guide them in the decisions they may need to make on your behalf. When we do not choose your leave your family wondering who is to make these very important decisions. If you have made no choice of advocate, then know one will know your personal wishes. Choose today, help your family in their time of need.
- Not educating the advocate about your living will. If you do not share the content of your living will with the designated advocate, they will not be prepared to make these important decisions if the need arises. Nothing like being given this responsibility without any notice. "Oh, by the way we found this living will and you are the designee, now, make this life and death decision for your parent." Talk about a surprise; not only is the designee surprised, you may find out that the chosen advocate does not want this distinction. Have a conversation with the chosen advocate and get them a copy of the document, too. Time may be of the essence and a copy will suffice in case of emergency.
- Not getting the living will done. The most important document for you end of life care is the living will. Delaying preparation of the living will only makes the decision making very difficult if the need arises. Being prepared is the sign of a caring and considerate person; not preparing a living will can leave a family with an awful feeling about end of life decisions. Dying is tough enough without all the very hard decisions that may need to be make at a critical time in your life. Preparing a living will is a kindness to your family members; it allows them to feel comfortable with the tough decisions that may need to be made on your behalf.
Tuesday, April 2, 2013
Requirements to Register California LLC
Registering a California LLC is not
as difficult as it may seem. There are a number of requirements that you
must follow to form your LLC in California. The primary requirement is
to file your Articles of Organization with the California Secretary of
State. Once filed, the approval process will take a few weeks, but the
hard part is done.
The Articles of Organization must contain the following:
1.) The name of the limited liability company.
2.) The following statement:
The purpose of the limited liability
company is to engage in any lawful act or activity for which a limited
liability company may be organized under the Beverly-Killea Limited
Liability Company Act.
3.) The name and address of the initial agent for service of process.
4.) State whether the company will be managed by members or managers.
5.) The articles need to be signed by the Organizer.
You can include additional articles,
but they are not required by the state office. It will depend on your
business model, and your specific situation. If you are unclear about
the best solution for you please consult a lawyer in California.
Additional Articles
a.) You can include additional language to limit the liability of the members.
b.) You can include an article regarding the events under which a dissolution may occur.
c.) There can be articles included to limit the powers of certain members or managers.
While it can be complex, registering
a corporation in California can be both fun and easy. Take your time to
make sure that you have followed the appropriate requirements and you
can save time and money also.
Article Source: http://EzineArticles.com/183383
Monday, April 1, 2013
Why Use a Limited Power of Attorney?
A limited power of attorney is sometimes called special or specific
because it is granting limited power for a special or specific purpose.
With limited authority, the agent will not have broad authority over the
grantor's finances and property but only the specific authority that is
granted to him in this limited type of form.
At any time, a person may require this limited type of form to give another person the power to act in his or her place and to complete a specific task for them. It could be given by a business owner to another person so that the person can handle the responsibilities of managing the grantor's business while he or she is out of the country. Individuals, who are suffering from health issues, preventing them from completing all of their business responsibilities, may also use a limited power of attorney form to appoint someone as their agent to help them complete the work in their place and stead.
Different states have different requirements for executing this type of legal document. But most of the states require that you sign the document in the presence of a notary public. So, it is advisable to make sure that you are using an acceptable form with the correct acknowledgment when you have decided to prepare and execute this type of legal document. This type of legal document can also be revoked for any reason or when the task is completed. Though the grantor granted the agent the authority to take over some of his or her responsibilities, the grantor can continue to make those decisions and manage their affairs themself at any time.
A limited power of attorney is commonly used when conducting banking transactions, collecting debt, buying or selling real estate, investing in financial products and in negotiating with the IRS.
As the name suggest, a limited type of form is given when the task requires limited power. The agent or the recipient of the authorization or power is allowed to engage only in the tasks that are listed in the document.
When choosing an agent, the law requires that you choose someone who is at least 18 years of age. It is also important that the person you choose to be your agent is trust worthy. Depending on the task required of them, they may have access to your personal information like your bank account. Giving this information to an untrustworthy person may lead to theft. It is also important that the person you choose is capable of completing the task in a manner that is acceptable to you and with the outcome you are anticipating. So, make sure to talk to your prospective agent before including his or her name in your limited power of attorney document.
Article Source: http://EzineArticles.com/7172815
At any time, a person may require this limited type of form to give another person the power to act in his or her place and to complete a specific task for them. It could be given by a business owner to another person so that the person can handle the responsibilities of managing the grantor's business while he or she is out of the country. Individuals, who are suffering from health issues, preventing them from completing all of their business responsibilities, may also use a limited power of attorney form to appoint someone as their agent to help them complete the work in their place and stead.
Different states have different requirements for executing this type of legal document. But most of the states require that you sign the document in the presence of a notary public. So, it is advisable to make sure that you are using an acceptable form with the correct acknowledgment when you have decided to prepare and execute this type of legal document. This type of legal document can also be revoked for any reason or when the task is completed. Though the grantor granted the agent the authority to take over some of his or her responsibilities, the grantor can continue to make those decisions and manage their affairs themself at any time.
A limited power of attorney is commonly used when conducting banking transactions, collecting debt, buying or selling real estate, investing in financial products and in negotiating with the IRS.
As the name suggest, a limited type of form is given when the task requires limited power. The agent or the recipient of the authorization or power is allowed to engage only in the tasks that are listed in the document.
When choosing an agent, the law requires that you choose someone who is at least 18 years of age. It is also important that the person you choose to be your agent is trust worthy. Depending on the task required of them, they may have access to your personal information like your bank account. Giving this information to an untrustworthy person may lead to theft. It is also important that the person you choose is capable of completing the task in a manner that is acceptable to you and with the outcome you are anticipating. So, make sure to talk to your prospective agent before including his or her name in your limited power of attorney document.
Article Source: http://EzineArticles.com/7172815
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