How Much Does Probate Cost and How Long Does It Take?

The answer depends on the complexity of the estate and the required probate procedures in your state.

What is Probate and Will it Affect My Inheritance?

What is probate is a fundamental question. Financial planners claim less than 20-percent of heirs and beneficiaries receive their intended inheritance. Funeral expenses, unpaid debts, estate taxes, and legal fees can financially deplete the estate, leaving nothing for those left behind.

This article answers the "what is probate" question and provides tips and techniques to keep assets out of probate. Estates will process through the court system faster when fewer assets are involved.

Probate is the legal process used to validate decedents Last Will and Testament and tie up financial loose ends. The last will is the instrument used to convey final wishes and designate who should receive money, personal belongings, real estate, and valuable items.

Numerous options exist for creating a Will. Preformatted Wills can be downloaded online or purchased at office supply stores. Complex estates generally require assistance from a probate attorney or professional estate planner. Much depends on the estate's net worth and how many heirs are entitled to assets.

An estate administrator is designated within the decedent's Will. This individual is responsible for a wide range of duties, so it is best to appoint someone who is good with finances and able to cope well under stress. This is of particular importance when family discord exists.

Probate begins when the decedent's death certificate is submitted to probate court. The estate administrator must create an inventory list of assets and obtain property appraisals for valuable assets such as real estate, collectibles, antiques, artwork, and heirloom jewelry. Other duties include paying outstanding debts, filing a final tax return and distributing assets according to directives outlined within the Will. Most Administrators require assistance from an attorney or estate planner.

The process of probate typically takes six to nine months to settle. This can be financially challenging for estates with business or real estate holdings. The estate is responsible for maintaining real estate properties and managing business entities. If the estate does not possess the financial means to maintain the property or handle business affairs, the court can order these assets to be sold.

Probate provides a stage for disgruntled heirs to contest the last will. When family members are disinherited or do not receive assets they believe are rightfully theirs, they can file a petition through the court.

The plaintiff is responsible for legal fees. The estate must reimburse legal fees if the court rules in favor of the plaintiff. When Wills are contested probate can drag on for years and potentially bankrupt the estate. In most instances when Wills are the contested, the only people who win are the attorneys.
Estate assets can be exempted from probate by establishing a trust. A variety of types exist and most can be customized to suit the needs of the estate. Trusts are typically reserved for estates valued over $100,000.

A smaller estate can utilize various techniques to keep assets out of probate. These include establishing transfer on death (TOD) and payable on death (POD) beneficiaries. TOD is used with investment and retirement accounts, while POD is used for checking and savings accounts.

TOD and POD assignments can be made by filling out a simple form through the financial institution where accounts are held. Financial assets avoid probate through the assignment of beneficiaries.
Real estate can avoid undergoing the process of probate by titling the property as 'Tenants in Common' or 'Joint Tenancy'.

Titled property such as automobiles, motorcycles, boats and airplanes can be jointly titled and transferred to the named beneficiary upon death without passing through probate.

Another option to avoid probate is to give assets to loved ones while you are still alive. The IRS allows cash gifts of up to $10,000 per person or $20,000 per married couple, per year. This option is oftentimes attractive to individuals with chronic or terminal illness.

Probate can be an overwhelming and time-consuming task. By taking time now to execute a last will and testament and taking action to keep assets out of probate, you can rest assured knowing your loved ones will receive the inheritance you wish to leave them.

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

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Estate Planning : Have You Been Named in the Will?

If you are a beneficiary in a will, you will most likely receive notice after the will is entered in probate court. Learn what to do if you have been named in a will from an estate planning and probate lawyer in this free video on estate law.

What is a Living Trust?

A living trust, created while you're alive, lets you control the distribution of your estate. You transfer ownership of your property and your assets into the trust. You can serve as the trustee or you can select a person or an institution to be the trustee.

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

Who Is This Article For?

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

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

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

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

Forms of Business Entities

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

For most new businesses, your options are:

• Sole proprietorship


• Partnership


• Corporation (S-corporation or C-corporation)


• Limited Liability Company

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

Sole Proprietorship

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

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

Advantages of a Sole Proprietorship

Here are the advantages of choosing to do business as a sole proprietor:

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


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


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

Disadvantages of a Sole Proprietorship

Here are the disadvantages of operating as a sole proprietorship:

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


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

Partnerships

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

Advantages of a Partnership

Frankly, in most situations there are none.

Disadvantages of a Partnership

Here are the primary disadvantages of a partnership:

• Separate Tax Returns. Partnerships are required to file their own, separate income tax returns, so paperwork is increased without commensurate advantages being offered.


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


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

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

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

Corporations

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

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

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

Advantages of a Corporation

Here are the principal advantages of using a corporation to operate your business:

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


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


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

Disadvantages of a Corporation

Here are the main disadvantages of a corporation:

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


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


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


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

Limited Liability Companies (LLCs)

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

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

Advantages of an LLC

• No Personal Liability (See discussion under corporations)


• More Professional Image (see discussion under corporations)


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

Disadvantages of an LLC

• More Complicated to Form (See discussion under corporations)


• Requires Separate Bookkeeping (See discussion under corporations)


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


• Annual Filing Requirements. (See discussion under corporations)

Summary

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

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

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

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

Article Source: http://EzineArticles.com/9300297

DIVORCE - Easier than you think? - By The People

Rene goes over how a divorce does not always need to involve a full legal team. He explains the process of how By The People can help file the paperwork necessary for the courts. See more at http://www.bythepeopleca.com, or call them at 707-428-9871

Incorporation - Is It Right For My Business?

The process to form your incorporation is relatively easy, and the legal concept of incorporation is recognized all over the world. A Certificate of Incorporation is the evidence of incorporation and registration of the legal entity with the authorities of a particular state or an offshore jurisdiction. A primary advantage of incorporation is the limited liability the corporate entity affords its shareholders, and in many cases, favorable tax treatment. For anyone starting up his or her own business, an understanding of business incorporation is a must before taking that step.

Incorporation is a system of registration which gives a business certain legal advantages in return for accepting specific legal responsibilities and is an option that many businesses each year decide to take advantage of. However, prior to filing with the state, you should have your attorney and accountant advise you as to whether or not incorporation is the right step for your business, both from a legal standpoint and from a tax perspective. If the corporation is a closely held corporation and does business primarily within a single state, local incorporation is usually preferable. Incorporation is a state process, and therefore the process and specific benefits may differ from state to state, as well as registration costs, resident agent fees, etc.

What type of incorporation is best for my business? A "C" Corporation, an "S" Corporation or a Limited Liability Company (LLC)? In addition to those choices, you then need to decide where to incorporate. Not only does each state offer certain benefits, but costs to file and maintain the corporate status are different. Additionally, if your business purpose is rather simple and straightforward, you may be able to use an online incorporation service to incorporate, at substantial savings. Remember, when in doubt, or if any questions or issues need to be addressed, seek professional advice...it usually is cheaper in the long run!

There are certain states that offer important incorporation benefits to the directors and shareholders. You need to make a comparison of these benefits, as well as the filing costs, to determine if incorporation in that state is warranted. Another consideration for incorporation in a state other than where your business is located, is that you may be required to register as a foreign corporation in your resident state. This will usually entail annual filing fees equal to or greater than that for a domestic corporation. Again, prepare a checklist and weigh all benefits as well as additional costs, etc. before the incorporation process begins. Rather than incorporating in another state, you may also benefit by an offshore incorporation. Check it out carefully.

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

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How Do I Set Up an LLC Without a Lawyer?

Limited Liability Companies (LLC) are business entities that got their start in 1977 and are considered to fit somewhere between sole proprietors/partnerships, and fully incorporated companies. Existing to fill the gap between corporations and sole proprietors LLCs can help to segment personal and business assets and liabilities while at the same time maintaining a simplified tax structure. An LLC is not corporations but is a company structure to operate like a corporation.

Liability

An LLC is in itself its own legal entity so long as it is treated as one. The LLC can assume obligations of debt. In other words, the LLC, not the members, hold a loan and the liabilities that go along with it. If however, the members of an LLC use the entity as their personal bank or for personal matters it is possible that the LLC will not be recognized as a separate entity if a lawsuit is filed.

Taxes

As far as taxes go LLCs are considered by the IRS as pass-through entities. This means income passes through the business and goes straight to the LLC members just as they would with a sole proprietorship or partnership. These profits or losses are filed on each individual's tax return. A caveat to this is that LLCs can be taxed as a corporation if the members elect to do so. So, if treated appropriately an LLC can shield its members from the liabilities of a corporation without assuming the tax overhead true incorporation must maintain.

How to File

If you are thinking about forming an LLC for your business, spend the next 20 minutes educating yourself on the difference between Sole proprietorships, LLCs, and S corporations. My guess is that for most people starting out as a sole proprietorship will be sufficient for current needs and much cheaper than filing for an LLC.

If you have done your homework and have decided that an LLC is the way to go, what next? The steps to filing an LLC are not complex and although requirements vary from state to state, setting up an LLC is a simple process that can usually be done in an hour.

1. Articles of Organization
   
   The first step is to contact your secretary of state and obtain the required form for filing an LLC. In some cases, this will be a simple fill in the blank form. The state of Washington, for example, has an online application. The processes guide you through establishing a legal name, completing the certificate of formation, establishing the registered agent, defining the members, and guides you through the initial annual report. The fee for WA is roughly $200.00, additional costs may apply depending on how you file. Google your secretary of state to find out more of the specifics.


2. Registered Agent
   
   As you fill out your articles of organization you will be required to define the registered agent for the LLC. In most cases, this will be you. The registered agent is the person or business that is designated to receive important documents on behalf of the LLC. The most appropriate individual for this is generally the one spearheading the business.


3. Operating Agreement
   
   The operating agreement is the internal agreement between the members of the LLC. It is not required to form the LLC but it should be drafted to state the rights and responsibilities of the members. The operating agreement should contain but is not limited to the following;
   
   
   • Capital Contributions. How are the members expected to make capital contributions if the business needs additional capital?
   • Management Decisions. When the members are faced with important management decisions, does each get one vote, or do they vote according to their percentage interests in the LLC? Majority shareholders may feel they deserve a larger say.
   • Financial Withdraws. How do owners go about draws from the profits of the business?
   • Buy Out/Cash out. How do members leave the LLC? Will they receive an immediate payout of their capital contributions?
   • Compensation. If a member does leave how much should they be paid?
   • Share. While there are not actual shares within an LLC it should be defined how or if a departing owner is allowed to sell an interest to an outsider?

Publish a Notice

Some states require a notice of intent to be published. This can be as simple as running a classified ad in your local paper. Specifics on this will vary and your secretary of state can provide you with the steps required.

Licensing

The last bit to think about is obtaining other appropriate insurance, permits, and licenses for your new LLC. Each industry had its own unique set of requirements so be mindful of this once your business is established.

Conclusion

LLCs are considered by many to be a great way to establish a small business. There is little required to get one started and protection they provide could be priceless. That said an LLC may not be needed for everyone. Only you know the entity type most appropriate for your business.

Article Source: http://EzineArticles.com/expert/TJ_Mollahan/289985

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Living Wills and Advance Directives for Medical Decisions

Living wills and other advance directives are written, legal instructions regarding your preferences for medical care if you are unable to make decisions for yourself. Advance directives guide choices for doctors and caregivers if you're terminally ill, seriously injured, in a coma, in the late stages of dementia or near the end of life.

Advance directives aren't just for older adults. Unexpected end-of-life situations can happen at any age, so it's important for all adults to prepare these documents.

By planning ahead, you can get the medical care you want, avoid unnecessary suffering and relieve caregivers of decision-making burdens during moments of crisis or grief. You also help reduce confusion or disagreement about the choices you would want people to make on your behalf.

Power of attorney

A medical or health care power of attorney is a type of advance directive in which you name a person to make decisions for you when you are unable to do so. In some states this directive may also be called a durable power of attorney for health care or a health care proxy.

Depending on where you live, the person you choose to make decisions on your behalf may be called one of the following:

• Health care agent
• Health care proxy
• Health care surrogate
• Health care representative
• Health care attorney-in-fact
• Patient advocate

Choosing a person to act as your health care agent is important. Even if you have other legal documents regarding your care, not all situations can be anticipated and some situations will require someone to make a judgment about your likely care wishes. You should choose a person who meets the following criteria:

• Meets your state's requirements for a health care agent
• Is not your doctor or a part of your medical care team
• Is willing and able to discuss medical care and end-of-life issues with you
• Can be trusted to make decisions that adhere to your wishes and values
• Can be trusted to be your advocate if there are disagreements about your care

The person you name may be a spouse, other family member, friend or member of a faith community. You may also choose one or more alternates in case the person you chose is unable to fulfill the role.

Living will

A living will is a written, legal document that spells out medical treatments you would and would not want to be used to keep you alive, as well as your preferences for other medical decisions, such as pain management or organ donation.

In determining your wishes, think about your values. Consider how important it is to you to be independent and self-sufficient, and identify what circumstances might make you feel like your life is not worth living. Would you want treatment to extend your life in any situation? All situations? Would you want treatment only if a cure is possible?

You should address a number of possible end-of-life care decisions in your living will. Talk to your doctor if you have questions about any of the following medical decisions:

• Cardiopulmonary resuscitation (CPR) restarts the heart when it has stopped beating. Determine if and when you would want to be resuscitated by CPR or by a device that delivers an electric shock to stimulate the heart.
• Mechanical ventilation takes over your breathing if you're unable to breathe on your own. Consider if, when and for how long you would want to be placed on a mechanical ventilator.
• Tube feeding supplies the body with nutrients and fluids intravenously or via a tube in the stomach. Decide if, when and for how long you would want to be fed in this manner.
• Dialysis removes waste from your blood and manages fluid levels if your kidneys no longer function. Determine if, when and for how long you would want to receive this treatment.
• Antibiotics or antiviral medications can be used to treat many infections. If you were near the end of life, would you want infections to be treated aggressively or would you rather let infections run their course?
• Comfort care (palliative care) includes any number of interventions that may be used to keep you comfortable and manage pain while abiding by your other treatment wishes. This may include being allowed to die at home, getting pain medications, being fed ice chips to soothe mouth dryness, and avoiding invasive tests or treatments.
• Organ and tissue donations for transplantation can be specified in your living will. If your organs are removed for donation, you will be kept on life-sustaining treatment temporarily until the procedure is complete. To help your health care agent avoid any confusion, you may want to state in your living will that you understand the need for this temporary intervention.
• Donating your body for scientific study also can be specified. Contact a local medical school, university or donation program for information on how to register for a planned donation for research.

Do not resuscitate and do not intubate orders

You don't need to have an advance directive or living will to have do not resuscitate (DNR) and do not intubate (DNI) orders. To establish DNR or DNI orders, tell your doctor about your preferences. He or she will write the orders and put them in your medical record.

Even if you already have a living will that includes your preferences regarding resuscitation and intubation, it is still a good idea to establish DNR or DNI orders each time you are admitted to a new hospital or health care facility.

Creating advance directives

Advance directives need to be in writing. Each state has different forms and requirements for creating legal documents. Depending on where you live, a form may need to be signed by a witness or notarized. You can ask a lawyer to help you with the process, but it is generally not necessary.

Links to state-specific forms can be found on the websites of various organizations such as the American Bar Association, AARP and the National Hospice and Palliative Care Organization.

Review your advance directives with your doctor and your health care agent to be sure you have filled out forms correctly. When you have completed your documents, you need to do the following:

• Keep the originals in a safe but easily accessible place.
• Give a copy to your doctor.
• Give a copy to your health care agent and any alternate agents.
• Keep a record of who has your advance directives.
• Talk to family members and other important people in your life about your advance directives and your health care wishes. By having these conversations now, you help ensure that your family members clearly understand your wishes. Having a clear understanding of your preferences can help your family members avoid conflict and feelings of guilt.
• Carry a wallet-sized card that indicates you have advance directives, identifies your health care agent and states where a copy of your directives can be found.
• Keep a copy with you when you are traveling.

Reviewing and changing advance directives

You can change your directives at any time. If you want to make changes, you must create a new form, distribute new copies and destroy all old copies. Specific requirements for changing directives may vary by state.

You should discuss changes with your primary care doctor and make sure a new directive replaces an old directive in your medical file. New directives must also be added to medical charts in a hospital or nursing home. Also, talk to your health care agent, family and friends about changes you have made.

Consider reviewing your directives and creating new ones in the following situations:

• New diagnosis. A diagnosis of a disease that is terminal or that significantly alters your life may lead you to make changes in your living will. Discuss with your doctor the kind of treatment and care decisions that might be made during the expected course of the disease.
• Change of marital status. When you marry, divorce, become separated or are widowed, you may need to select a new health care agent.
• About every 10 years. Over time your thoughts about end-of-life care may change. Review your directives from time to time to be sure they reflect your current values and wishes.

Physician orders for life-sustaining treatment (POLST)

In some states, advance health care planning includes a document called physician orders for life-sustaining treatment (POLST). The document may also be called provider orders for life-sustaining treatment (POLST) or medical orders for life-sustaining treatment (MOLST).

A POLST is intended for people who have already been diagnosed with a serious illness. This form does not replace your other directives. Instead, it serves as doctor-ordered instructions — not unlike a prescription — to ensure that, in case of an emergency, you receive the treatment you prefer. Your doctor will fill out the form based on the contents of your advance directives, the discussions you have with your doctor about the likely course of your illness and your treatment preferences.

A POLST stays with you. If you are in a hospital or nursing home, the document is posted near your bed. If you are living at home or in a hospice care facility, the document is prominently displayed where emergency personnel or other medical team members can easily find it.

Forms vary by state, but essentially a POLST enables your doctor to include details about what treatments not to use, under what conditions certain treatments can be used, how long treatments may be used and when treatments should be withdrawn. Issues covered in a POLST may include:

• Resuscitation
• Mechanical ventilation
• Tube feeding
• Use of antibiotics
• Requests not to transfer to an emergency room
• Requests not to be admitted to the hospital
• Pain management

A POLST also indicates what advance directives you have created and who serves as your health care agent. Like advance directives, POLSTs can be canceled or updated.

Article Source: https://www.mayoclinic.org/healthy-lifestyle/consumer-health/in-depth/living-wills/art-20046303

What If Someone Objects to the Will?

What if someone objects to the will?