The Law Offices of BJ Richardson

Your Relationship With the Law

springfieldmarketingco@gmail.com (Springfield Marketing Services) — Thu, 01 Apr 2021 07:19:08 GMT

There is no perfect justice, just as there is no absolute in ethics. But there is perfect injustice, and we know it when we see it.

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"There is no perfect justice, just as there is no absolute in ethics. But there is perfect injustice, and we know it when we see it."

- Alan Dershowitz

A Non-Profit Startup: Why A Lawyer Is A Must

Thu, 01 Mar 2018 20:23:00 GMT

Starting a company or an organization is not an easy feat, no matter what its type or size may be. When starting an organization, owners and decision-makers must be completely aware of the steps they must follow, the professionals who will be involved, and the need for hiring a competent lawyer who will make sure that all transactions that the organization is involved in are smooth, legal and legitimate.

Although the steps to create a non-profit startup are quite similar to that of any other startup or business entity. Owners of such organizations are required to do some additional research and data mining to ensure that things run smoothly.

There are many reasons why an individual would want to create a non-profit startup, all of which may or may not depend upon the immediate circumstances of the individual. For instance, the person may want to change or remedy a particular problem that his or her society is facing at large. The person may also believe in a particular (but not directly related) cause and might want to start a new entity or organization whose purpose is not to create a revenue stream for the owner.

While the idea itself is noble, the process of creating and successfully running a startup involves several difficult issues. And while it is easy to create a non-profit startup, making sure that the startup actually survives beyond the stage of creation is difficult and complicated at best. It is then up to the owner to decide whether he or she is truly committed to making the non-profit startup run successfully, and understand that the time and energy required in doing so may involve certain sacrifices on their part. The owner must also understand the importance of discovering sponsors and investors and communicating with them, as it is these relationships which will help make the non-profit startup up-and-running.

In order to successfully create a non-profit, the owner(s) must make sure that proper paperwork has been submitted to the Internal Revenue Service within 60 days of the establishment of the organization. The owner must also see to it that the organization is classified on the basis of the service it provides to the community (i.e. if it propagates social welfare, is a charitable service, offers spiritual and religious services, etc). In order to get classified, the aims of the non-profit must be put on paper and legitimized by a competent lawyer who is hired to help create and run the non-profit. Once the initial IRS documentation is approved, the organization will be awarded its tax-exempt status and will be allowed to proceed legally with its mentioned goals.

What are the processes that need completion?

Thanks to the internet and advancement in technology, those looking forward to creating a non-profit startup now have an advantage in the form of “checklists” that list the various items required. These checklists are available online and can easily be downloaded.

While that does make the owner more informed on the processes that need to be completed, the owner still must make sure that these processes are actually followed. Every procedure and method that will be utilized in this regard must be thoroughly researched and fully understood. For instance, if the owner plans to incorporate the non-profit, he or she must understand that how the organization stands will attract charitable profits raised by entities.

First and foremost, the owner must create a suitable name for the organization. Having an apt name is vital for the brand value of the organization, and the right one may create a sense of bonding with the people. When the organization is armed with the right kind branding, it will be remembered by consumers (as well as clients and other investors) instantly – without any need of reminders. Depending on the law of the state in which the non-profit is created, the name may require “corporation,” “incorporated,” or “limited” added to its name.

Once this stage is crossed, the owner should make sure that the organization’s name and purpose are provided to the public along with all possible sources of income. In other words, the organization must keep all of its operations and income-related information completely transparent to the public. Thereafter, the owner can proceed to register the name in the state or even country-wide. Registering a business name is quite like a trademark, where the company’s name is registered for services and/or products sold to clients and/or customers.

Why is a lawyer a must in a non-profit startup?

As mentioned earlier, any owner who is looking forward to creating a non-profit startup must have a competent lawyer who will be responsible for all legal matters and will ensure that the organization runs smoothly and perfectly. Any business entity needs a lawyer for several different reasons, chief among them being preventing any legal problems from cropping up and crippling the entity. Through service, processes, and performance for a client, legal representatives make sure that all documents are valid and all the relevant officials are being properly communicated to. The lawyer also sees to it that the methods and rules for creating the startup are being adhered to properly.

A non-profit has several added factors which require proper legal attention. For instance, establishing a non-profit startup has a lot to do with achieving the tax-exempt status and filling forms with the Internal Revenue Service. In case these processes are not done properly and correctly, the non-profit will be held liable and may even be dissolved. A non-profit startup, therefore, must be established with the form filled in, which should be returned to the IRS within 60 days of its creation.

Once this is done, the lawyer who is involved with the non-profit startup should examine the all of its goals, bylaws, and overall internal paperwork. He or she must make sure that these things align rightfully with the type of organization that has been filed with the IRS. The lawyer must also see to it that the structure of the entity, as well as the internal procedures used, remain aligned with the purpose and spirit of the business, point out any discrepancies to the owner or group and suggest solutions for the same.

The post A Non-Profit Startup: Why A Lawyer Is A Must appeared first on The Law Offices of BJ Richardson .

Effect Of Environmental Regulations On Small Businesses

Thu, 01 Feb 2018 20:35:00 GMT

In the United States of America, both large and small businesses are subject to following a number of environmental regulations. These safety regulations have been set by the Environmental Protection Agency with the purpose of protecting the world from the environmental consequences of business activities. With the help of these regulations, it is possible for the EPA to keep a check on the practices and behavior of owners and management of entities, which in turn helps to ensure that the products and services produced by them cause the least amount of harm to the environment as possible.

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Common Problems Faced By Business Owners And Their Legal Remedies

Mon, 01 Jan 2018 21:21:00 GMT

The post Common Problems Faced By Business Owners And Their Legal Remedies appeared first on The Law Offices of BJ Richardson .

How To Contest A Trust

Fri, 01 Dec 2017 21:41:00 GMT

While contesting a will is a concept many are familiar with, most people actually are unaware of the fact that a trust can be also be contested under specific circumstances. A trust that has been contested successfully can either be modified or terminated – depending on the situation.

What Is A Trust?

Simply put, a trust is a legal document which enables an individual to name another person to hold a particular property on behalf of a third party. In this context, the individual who makes the trust is the settlor or grantor, the individual who has been named to the trust assets is the trustee, and last but not the least, the individual who stands to benefit from the entire arrangement is known as the beneficiary.

It is the grantor’s job to establish the terms for managing the trust property as well as the income that is generated from it. The trustee, on the other hand, has a fiduciary role and is obligated to fulfilling certain legal duties by following the instructions set by the grantor.

In order to be able to contest a will, there is a wide range of criteria that need to be fulfilled. In case of trusts, the criteria are fewer but very strict. First of all, any individual who wishes to modify or terminate a trust must be a beneficiary of the trust. The individual must also have a strong and irrefutable reason to contest the trust.
Other factors that influence the ability of a person to contest a trust includes a specific statute of limitations under state law or the Uniform Probate Code which places a restriction against contesting till the passage of a certain period of time – say 2 years after the death of the settlor.

Question of Forfeiture

According to the provision laid down in some trusts, the beneficiary who contests the trust will have to forfeit any portion that he/she was entitled to. However, many states today have enacted separate laws which invalidate such provisions when the beneficiary has a valid cause to contest the trust.

Reasons For Contesting, Modifying Or Terminating A Trust

Revocable trusts can be modified by the grantor at any point in time as long as he/she is alive – the trust will become irrevocable only after the death of the grantor. Once the trust becomes irrevocable, it can only be modified if it has been successfully contested. There are several reasons why a beneficiary can choose to contest a trust:

The Trust Does Not Reflect The Settlor’s Real Wishes

This is one of the the most common reasons for trusts getting contested by beneficiaries. Beneficiaries who feel that the trust does not reflect the real wishes of the settlor can make numerous allegations, including (but not limited to) the settlor being pressurized by someone else to create the trust in a specific way (undue influence), or fraud or duress on the part of the settlor him/herself. Undue influence implies that the possibility of the settlor being pressured by a beneficiary into making the trust in a specific way – with the sole aim of benefiting him/herself. This “pressurizing” may have included otherwise unlawful tactics such as threatening the settlor, withholding vital resources and/or manipulating the settlor into staying isolated from his/her family members. Fraud, on the other hand, occurs when the settlor him/herself was unaware of the fact that the signed document was, in fact, a trust.
If any of these circumstances are found to be true, the court will immediately make provision to modify the trust, and even terminate it if needed.

A beneficiary can also make an allegation that the trust is not reflecting the real wishes of the settlor, due to the lack of capacity of the settlor him/herself to form a trust. In the event that the court finds that the settlor him/herself was unaware the provisions of the trust or even the fact that he/she was making a trust in the first place, or if the settlor was not sound of mind during the time of creation of the trust, it can arrange to modify or even terminate the trust.

The Trust Is Not Serving Its Original Purpose

Sometimes, issues arise due to unprecedented change in circumstances. In some situations, for instance, the settlor might have established a trust keeping a certain goal in mind, but the present realities may actually prevent the trust from serving its intended purpose. This usually happens when the beneficiaries receive little to no benefit from said trust which in turn makes the cost(s) of administering the trust would be much more than the benefits received.

Sometimes, the trust itself contains language which can help in its modification or termination. If not, a beneficiary can seek to extinguish the trust by petitioning the court.

The Language Used In The Trust Is Ambiguous

If the language that has been used in the trust is poorly-written or dubious, the trust may be subject to varying interpretations by the trustee and the beneficiaries. Under such circumstances, the beneficiary may seek to petition the probate court to modify or even terminate the trust and thereby give a declaratory judgment of the settlor’s real intent.
If the court determines that the language used in the trust has no scope of ambiguity, the trust will remain firmly in effect. On the other hand, if the court does find that the language used in the trust is indeed ambiguous, it will begin to make further investigations to determine the real intentions of the settlor with the help of additional information such as the communications and personal history between the grantor and beneficiaries. The court will thereafter determine the way the trust will be treated with the help of the testator’s believed intent.

Importance Of Legal Assistance In Contesting A Trust

Any individual who wishes to contest a trust must be able to give the probate court a solid reason as to why the trust should be modified or terminated. In order to be able to do so, they must consider hiring a certified and qualified attorney who is experienced in managing probate litigation and can expertly handle the situation both inside and outside the courtroom. The probate attorney will also serve to explain the rights of the individual and the options that he/she has to bring forth a petition and contest the trust.

The post How To Contest A Trust appeared first on The Law Offices of BJ Richardson .

Employment Laws All Small Businesses Must Be Familiar With

Wed, 01 Nov 2017 21:57:00 GMT

In today’s day and age, owning and operating small businesses are a fantastic option for people who want to be in control of their lives and routine, and have a good place where they can channel their creative energies. That said, owning a business – no matter how small – comes with a set of responsibilities. Any small business should comply with a set of local, state, and federal laws when they hire staff to assist them in making their future.

Not being able to comply with these laws can – and does result in the business facing serious consequences, ranging from fines worth thousands of dollars to expensive lawsuits that can cripple the business altogether. The following are some important employment laws that all owners of small businesses should be aware of:

Fair Labor Standards Act

The Fair Labor Standards Act is one of the most important (if not the most important) employment law. Not complying with this act can be detrimental to the existence of many small businesses. This act discusses several points, including (but not limited to) child labor prohibitions, standards of proper recordkeeping, minimum wage rates and mandatory rates overtime pay.
Small businesses are often vulnerable to not complying with this act, as they don’t have much cash flow (especially when starting out), which in turn makes them do things that can – and do make them run into payroll-related issues. These missteps include misclassifying employees as independent contractors, not keeping records properly and not being able to justify their actions.

Anti-Discrimination Laws

Any owner-employer of a small business should be familiar with and comply with all relevant anti-discrimination laws. There are several Anti-Discrimination laws, many of which are relevant to employers who have a specific number of employees (like 15 or more). This is the case for Title VII of the Civil Rights Act. Several states, however, have lower standards of requirements, with some states imposing said laws when an employer hires even a single employee.

According to Title VII, an employer cannot discriminate between their employees on the basis of color, race, religion or national origin. Also prohibited is discrimination on the basis of sex, which the EEOC has interpreted as a prohibition on discrimination on the basis of sexual orientation and gender identity. There are other federal laws in place as well – such as the ones that prohibit discrimination on the basis of an individual’s genetic information, age (in case the employee over 40 years of age or older), and disability.

The function of anti-discrimination laws is to help prevent discrimination of both intentional and unintentional nature. The latter of the two often tends to occur on account of a facially-neutral employment policy which causes a disparate impact. Anti-discrimination laws vary from one law to another, with some imposing a higher degree of burden on the employer (like requiring them to provide suitably customized accommodations to employees who have disabilities). Laws also vary from state to another, with some states providing extra protections and prohibitions on the basis of some additional characteristics like height and/or weight, and age discrimination on the basis of age group.

Occupational Safety And Health Act

Following this law should be a must for every small business owner and employer. According to the Occupational Safety and Health Act, employers should provide a safe working environment for their employees. Employers also have an additional duty of report all cases of serious work-related deaths and injuries. Employers who have more than ten employees must maintain records of those accidents for no less than five years. Not complying with these regulations will lead to employer facing significant fines.

Immigration And Nationality Act

This law – or the lack of obedience of it – often proves to be the bane of many good employers. As per the Immigration and Nationality Act, it is the duty of the employers to make sure that any and every employee they hire have a legal immigration status. The are various methods to ensure this, the most prominent of them being the I-9 Form, which should be duly filled and then approved. To make things more convenient, employers can now track their I-9 verifications with the help of the E-verify program.

Employers should personally check the documents of their employees in order to confirm their legal immigration status. Furthermore, all of the confirming documents must be kept separately from other documents of the employee.

Fair Credit Reporting Act

Yet another important law that small business should have a proper understanding of is the Fair Credit Reporting Act.
In the event that an employer obtains an employee or applicant’s credit report, they must ensure that the same fully comply with this law. It should also the noted that said credit report can be a vital part of the process of a background check.

According to the Fair Credit Reporting Act, employers should procure any information regarding an applicants or employee’s credit if it is relevant for the purpose of employment. Even in such cases, the employer must make sure to obtain the employee’s written permission before they procure the credit report. In addition to all of this, the employer must also provide a disclosure to the employee which duly informs their rights to them.

Tax Laws

This one goes by default – employers should have a good grasp of the various tax laws that can – and do – impact them. This includes knowing the various type of employment taxes that they have to collect and remit to the taxing authorities.

Wage Garnishment Laws

Employees should have a comprehensive understanding of the concept of wage garnishment; this knowledge can prove to be very useful in case the employee’s wages are garnished.

Employers, on the other hand, should also have a solid understanding of basic concepts such as the percentage of the employee’s paycheck that can be withheld, how various types of amounts differ (for instance, child support versus judgment creditor). Furthermore. employers should have a thorough knowledge of where payments should be remitted in such situations.

Legal Assistance

No matter how knowledgeable a business owner might be as regards legal issues, he/she will still need strong and stable legal assistance. Contacting – and retaining an employment lawyer will help them understand their rights and responsibilities better and will allow them to make the correct legal response to any situation that may crop up in the course of working.

An employment lawyer can – and does have many roles to play when it comes to assisting business-owners. Not only do they explain the federal, local, and state laws, along with the impact they have on the business, they also discuss compliance measures which will help keep the business – and the business-owner stay on the right path.

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Tips To Modify Your Will

Sun, 01 Oct 2017 21:59:00 GMT

Creating a will is an involved process that requires an individual to make several decisions all at once: who to include as a beneficiary, whether to create a trust, how to divide the property among beneficiaries, and how to protect assets and resolve debts. Sometimes after a will is made, a testator may change his or her mind and want to modify the will. Perhaps he or she had a falling out with a family member, is involved in a new relationship, or had an unexpected death in the family. Fortunately, it is possible to modify your will so that it reflects your current wishes without having to completely redraft the will.

The Importance of Codicils

Making modifications to your will is actually a fairly simple process. You must draft a codicil, which is an amendment to your will. In the codicil, you must specify all changes that you wish to make, including adding or removing beneficiaries or even changing the majority of your will. You can add as many codicils as you need to as your wishes change over time. As long as the most recent codicil is legally valid, this version of the will is the one that will be probated.

Producing A Valid Codicil

When modifying your will, it is important to ensure that your codicil meets the legal specifications of your state. Otherwise, the codicil is not valid and will not be admitted into court, and it will be too late for you to amend the problem. To help you with the modification, consider consulting with a probate lawyer . A probate attorney can provide you with sound legal advice and help you meet all of the necessary legal requirements to have your codicil admitted for probate.

State laws vary, but for a codicil to be valid, two witnesses and a notary are required. You and your two disinterested witnesses must sign your will and codicil. Your lawyer will also attach an affidavit with the second round of signatures from you and your two witnesses. A notary will then provide his or her signature and verification. Once all of the necessary signatures have been gathered, the authentication of your codicil is complete. Following this procedure and other laws related to wills and probate will help to ensure that your will is probated according to your latest wishes.

When you need to change your will, you need some guidance to get this done correctly. Here are some instructions on how you can alter your will or revoke it but they must be followed carefully if you decide to change stipulations in your will. If you fail to follow them or try to change the will by marking things out or adding things to it, it could void swath portions of your document. It could also null and void your will entirely. The instructions are not hard to follow but they are important to follow if you want your will to stay valid in a court of law.

Two Methods To Revoking Your Will:

1.) Signing an entirely new will null and void any other wills.

2.) Destroying a will in your possession, if you truly wish to revoke the will.

You should never try and change any part of your will by any other way. For instance, do not try and add provisions to the side of the will, either by writing it in or typing it in. Never cross-out portions of the will. These methods are not suitable to will alteration and may be subject to a court battle should someone question its validity.

The following six things are standard clauses when it comes to changing your will and adding in information. Make sure to include changes where it’s indicated on the form. Be sure to type up your will the same way as you did the original one by following the instructions below:

1.) Make a copy of the addition form. Use this new copy as a worksheet and fill in the information in the right areas for every chosen clause. In the main clause, you’ll need to use one or more of the following phrases. If you want to change a certain sentence, you need to revoke the original sentence and add your new sentence in. If you want to add new material to it or revoke a certain part, be sure you have one of the following phrases in the will:

“In this will, I revoke the following sentence/phrase.”

“In this will, I want to add in the following sentence/phrase.”

2.) On the photocopy worksheet edition, mark out any extra material that’s not going to become a part of the will. Read of it entirely to make sure it’s what you really want.

3.) Once you’ve made all the changes you want, be sure to type it out again, using 8 1/2 x 11″ typing paper.

4.) Once the typing is complete, fill in the total page amount in the signature paragraph. Don’t sign it yet or fill in the date where it says so.

5.) You’ll need to read it again carefully to ensure there are no mistakes. If you find any, you’ll need to retype that one page. Don’t use type-correcting fluid, tape or erasures of any type. Also, don’t mark out words and don’t add anything using pen or pencil.

6.) Once your will is perfect, staple the pages together in the upper-left hand corner. Now your document is prepared to sign. Make sure to follow the instructions on how to sign your will properly or it could become null and void. Be sure to include the statement, when signing.

Whenever a significant life event occurs you should consider modifying your Will, so following a birth, a death, a divorce, a marriage or large change in your financial situation. When you get married a previous Will is automatically rendered void. However, when you get a divorce this does not mean they cease to be a beneficiary of your Will, you will have to actively remove your ex-partner from the Will should you feel you need to. It should also be noted it is important to modify your Will following a birth as even if your other children are all beneficiaries of the Will your newborn will not be added to the Will automatically. You should contact a solicitor if you need to make a change to your Will, be this be a total redraft or an amendment via codicil.

Let the professionals at The Law Offices of Bj Richardson help you with your specific needs. We don’t handle every aspect of tax law, however, we can direct you to a professional that can handle any area of tax law that we don’t handle.

The post Tips To Modify Your Will appeared first on The Law Offices of BJ Richardson .

Understanding Charitable Remainder Trust

Fri, 01 Sep 2017 22:10:00 GMT

Donating part of your income to charities is one of the best ways to contribute towards society and feel positive about yourself. A charitable trust gives you a benefit of a tax break now and after you have passed on. Since the inception of the Charitable Remainder Trust law in 1969, many families have taken advantage of this law to increase their income, save on tax and benefit charities for worthy causes.

What Does A CRT Do?

The greatest advantage of a Charitable remainder trust is a reduction of the income taxes during your lifetime and estate taxes when you are gone. You are also not required to pay capital gains tax when you sell your property. In the meantime, you get to help one or several charities that push a cause that you believe in and live a good life without any tax worries.

How Do You Work With A CRT?

The entire process begins when you give up the control of your property to an irrevocable trust. Irrevocable means that you cannot later change your mind when the trust is already operational. After you have created a CRT, you transfer the property that you seek to donate to a charity. The IRS must approve the charity that you choose. It should have the tax exempt status under the IRS Internal Revenue Code. The selected charity then becomes the trustee of your trust. It manages your property and ensures that there is an income for you from the property. The charity will be paying a portion of the income that is generated from the property for a specified number of years or lifetime as agreed in the trust document. At the end of the period that you set, the charity will take ownership of the property.

Why Should You Consider A Charitable Remainder Trust?

Income Tax

You can take an income tax deduction equivalent to the value of the property that you donated spread over several years. The hard thing is to determine the amount of the deduction. A professional tax expert can help you determine this figure. The IRS determines the value of the gift and then deduct the amount made from the property over the time. You will then receive a portion of the property income. You still end up with a large income tax deduction.

Estate Tax

At the end of the period that you had agreed to be getting payments, the property changes ownership to the charity. Therefore, it will not be subjected to estate tax by the IRS. If the assets were many, you would have made enough tax savings.

Capital Gains Tax

You are required to pay tax on every appreciation in the value of your property. However, with a CRT, you can turn the appreciation in value into cash without having to pay that capital gains on your profit. In most cases, the selected charity will sell the non-income producing asset in the charitable trust and use the proceedings to buy a piece of property that will bring you income. Fortunately, charities are not required to capital gains tax. Therefore, the amount will be retained in the trust without being taxed at all.

How Do You Get Income From The Charitable Trust?

There are two basic structures for getting your cash:

Fixed Annuity

You may decide to be getting a fixed dollar amount for the period that the charity will be a trustee of the trust. You cannot change the agreement later even when there is inflation, or the property makes more money. You can set as high amount as you wish. However, remember that setting a very high income reduces your income tax deduction. You may also eat up the entire principal and be left with nothing to leave to charity by the end of the period or death. The charity might not accept the gift especially if the entire value is paid back to you.

Percentage Of The Assets Of The Trust

The most common method is to ask for a percentage of the value of the property as your annual income. The property is appraised yearly and the percentage sent to your bank. IRS has set 5 percent as the lowest amount that you can receive from the property. If there is inflation, your annual payments can go up accordingly.

You Need The Help Of A Lawyer

Seek the assistance of an attorney to help in the following areas:

Setting Up A Charitable Trust

There are several requirements that must be met in order for the IRS to approve your charitable trust. Failure to meet these requirements is likely to cause loss of the benefits that you’re entitled. A lawyer will take you through the legal steps required as well as make you understand the risks involved in the venture.

Identifying A Credible Charity

The selected charity will be in control of your property and will make all decisions on your behalf. Therefore, it is important that you be careful when selecting it. Having been approved by the IRS is not enough proof that the charity is credible. A lawyer will dig deep into the operations of the charity, professionalism, and performance in the past. In the end, you will be sure that you are handing over your property to an organization that has the adequate knowledge and that will give you adequate returns for the agreed period. In addition, the lawyer can advise you on what to expect, the best way to earn from the property as well as handle all the legal procedures that go with handing over your property to the charitable trust. Pick a lawyer who is well-versed with the tax code so that he can help you tailor the trust as per your need. A charitable remainder trust is an excellent way to enjoy reduced tax on the property as well as ensure that you have a lifetime income all your life. There is also the additional advantage of not worrying about the management of your property.

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Golf Legends In The Making

Tue, 01 Aug 2017 18:43:00 GMT

If you didn’t already know, Phil Mickelson is an American professional golfer. His full name is Philip Alfred Mickelson. He has won many different events adding up to be around 40 or more wins, some of which include five different major championships, and three different Masters titles. He even made it to the World Golf Hall of Fame in 2012! He is ranked up with another 15 golfers to win at least 3 out of the 4 majors in the history of golf! He has been within the top 10 Official World Golf Ranking for over a whopping 700 weeks, and a world ranking of 2nd numerous times. He is normally right-handed on everything, except for golf, where he swings with his left, giving him the nickname, Lefty.

Phil Mickelson was born in San Diego, California, but was raised in both San Diego and Scottsdale, Arizona. His father is Philip Mickelson, who is an airline pilot, and used to be a naval aviator, and his mother is Mary Mickelson. He also has a wife and 3 kids.

Phil learned how to play golf from his father, by mirroring how his father played, thus him swinging with his left rather than his right. With his father being a pilot his schedule was very flexible and this allowed his father to be home to play golf with him several different times a week. They had a very elaborate practice area in their backyard in San Diego, allowing him to practice whenever he wanted to. In 1988 he graduated from the University of San Diego High School.

He went on to Arizona State University on a golf scholarship. While at Arizona State University Phil Mickelson became the face of amateur golf in the United States. He was the first golfer with a left-handed swing to earn the amateur title in the United States. He also became the second college golfer to earn first-team All-American honors for all four years. As an amateur he went on to win his first PGA Tour event, making this perhaps his greatest achievement as an amateur.

Only being 20 years old he was only the sixth amateur to win a tour event. Since Mickelson’s accomplishment of winning a tour event as an amateur, no one since has won another one as an amateur.

He finally graduated from Arizona State University in 1992, and eventually went professional. He was able to bypass the qualifying process because of his win the year prior. This was because the win had earned him a two-year exemption to the process. Near the beginning of 1993, he hired Jim “Bones” Mackay as his new caddy. He won a handful of PGA Tournaments including:

His win of the 2000 Buick Invitational ended up ending Tiger Woods’ six consecutive win streak on the PGA Tour. After his win that ended Tiger Woods’ streak he didn’t want to be the bad guy and didn’t want to necessarily end Tigers streak, he just wanted to win the golf tournament. He performed very well in the majors all the way up until the end of the 2003 golf season:

His inability to win any of them ended up with him being named as the “best golfer to never win a major”. Finally, his first major championship win came to him during his thirteenth year on the PGA tour. He roped in his victory in the 2004 Masters with an 18-foot birdie putt on the final hole. This helped him get the name “best golfer to never win a major” off his chest and was only the third golfer with a left-handed swing to win a major. The first two being:

He ended up being let out of his multi-year contract with Titleist/Acushnet Golf because of a voicemail he had left for Callaway Golf for their driver and golf balls. He had also thanked them for helping him get his brother some golf equipment. The voicemail ended up getting back to his sole contractors and they ended up terminating it and was soon after signed on at Callaway Golf, who is his current equipment sponsor.

Phil Mickelson hit his all-time career low for an 18-hole round in 2004. He had hit a 59 at the PGA Grand Slam of Golf at Poitou Bay Golf Course in Hawaii. In 2005 he had won his second major at the 2005 PGA Championship at Baltusrol. He had ended up finishing 4-under-par at a total of 276 with a soft pitch from deep greenside rough to almost a foot and a half away from the hole and used his birdie to finish it. He finished one shot ahead of Thomas Bjorn and Steve Elkington.

In 2014 he missed the cuts for the first time of the Masters since 1997. At the PGA Championship at Valhalla Golf Club he ended up just one shot behind world number one, Rory Mcllroy. At the end of 2015, he ended up wanting a new swing coach, and left his longtime swing coach Butch Harmon, to get a new one at the beginning of 2016. He went on to win many more after that but suffered a couple sports hernia surgeries in the fall of 2016. Many people expected him to be out for quite a while, while recovering from these surgeries, but within the next couple of weeks he was up and back at it again.

He has been golfing pretty much his entire life and made a life for himself doing something he’s always loved. He’s had many ups and downs in his career, but he has always come out doing the one thing he has known forever, something he loves. Most people don’t make a career out of doing the one thing they love, but Phil Mickelson did.

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All You Need To Know About Dealing With Alzheimers

Sat, 01 Jul 2017 18:48:00 GMT

The website for Alzheimers Association, “ALZ,” should be your first stop to learn more about this degenerative disease which affects more than 5 million Americans. Whether you’re looking for some basic information about Alzheimer’s or for someone who can guide you through the initial caregiving phase, you will find assistance here.

Some people assume their physician will offer enough helpful suggestions to get by, but they are usually too busy to give your family the individualized care you deserve. Find a support group, find a friend, find inspiration or find tips. The Association is there to help you and your family to cope during this difficult time.

There are five core services you can get from the Alzheimers Association. The first service is a 24/7 Alzheimers help hotline. In addition to providing you and your family with a host of information on Alzheimer’s disease, the Association can also counsel on elder care, adult day care, trained nursing facilities, lawyers, transportation, financial planning and home care.

One of the most agonizing decisions to make is deciding when the time is right to move an Alzheimer’s patient into a long-term care facility. The Association can help you to find the best care options for your family.

The second service the Association provides is their care consultation. There is someone there to provide supportive listening when the isolation, frustration, depression, fear or grief becomes overwhelming for an Alzheimer’s caregiver.

Many caregivers report that the most difficult thing is the fear of losing the person, coupled with the sad realization that their loved ones can never regain their personalities or full mental capacity. There will be many decisions to be made along the way and obstacles may arise that you don’t know how to deal with, such as what to do when your loved one refuses to bathe or change clothes? So it’s best to call a professional for any questions you may have.

The third service provided by the Association is peer-led or professionally led their support groups. Some people shun these services because they don’t want to be seen as someone with a problem; however, the success rate and the manageability are so much higher for people attending these sessions. It sometimes helps to hear others’ stories because you can gain insights on where to take your loved one for care or what pitfalls to avoid.

A fourth service offered by the Association is safety services. Here you can get set up with Medic-Alert and the Alzheimers Association Safe Return. You can be prepared for the wandering Alzheimers patient and any accidents that may happen. The Association connects families with law enforcement agencies to ensure their loved one’s safety for those moments when you can’t be there. The peace of mind is well worth the five minutes it takes to sign up for these valuable services!

The fifth service to get from the Association is probably the most important: education. Whether it’s brochures, audiobooks, DVDs or books, you will find the information you need. You can learn about the signs of Alzheimers, or about getting an Alzheimers diagnosis. You can develop new communication skills and learn about dementia activity programs in your area.

Many people come to the Alzheimers Association website to read about current research and clinical studies. Sometimes what keeps us going in the face of adversity is the hope that new developments are afoot. With so much research dedicated to Alzheimers drugs and treatments, it’s possible that we’ll see huge leaps in the next ten or twenty years.

New studies have found, for example, that Alzheimers is partially caused by tangled up proteins and plaque deposits. As recently as two years ago, it was discovered that Alzheimers could be diagnosed with a skin test. You can also find ways of helping the scientific community through participating in a clinical study, which may also give you some extra money to cover your medical bills.

“The most important thing is to let people know that they are not alone in this fight. There are thousands and thousands of us out there willing to fight with them,” said Cathy Edge, an Alzheimers Association supporter. The best cure for that depressing feeling of helplessness is to get actively involved.

You can donate, volunteer, fundraiser, sponsor, host events, participate in “memory walks,” advocate workplace giving or perform some other valuable Alzheimers help. “Sometimes you just want to sit down and cry.

But I eventually found a way to channel it. The way I channeled it was to start Funding a Difference. I listened to the scientists talk, and I thought, Ok, I’m a part of this – I’m doing something. It takes a little bit of the pain away,” adds donor Darlene Shirley.

Probably one of the most difficult things you’ll ever have to do is care for someone with Alzheimers. The reality that the person with Alzheimers is likely very close to you, only makes the task more challenging. Being someone who cares for another human being puts you into a category with a high degree of burnout. It can be a stressful, thankless job. You need to stack the odds in your favor as much as possible.

Don’t Be Afraid To Ask

Nobody likes to look clueless, and it’s human nature to be reluctant to ask questions. Now is the time to go against that nature. The medical community, specifically your physician, or the physician of your patient should be your first avenue for help. Be as involved as possible in their care That includes doctor visits, hospital visits, and any therapy, or coping sessions the Alzheimers-afflicted individual attends.

Lean On Me

While arming yourself with as much Alzheimers information as possible is a great strategy, don’t try to be Superman. Having a plethora of information is of no help if you are too exhausted to put it to good use. Medical professionals in the community should be able to point you towards organizations and support groups for caregivers. Potentially even specific to caregivers of Alzheimers patients, depending on the size of the community in which you live.

You’re Already Doing The Right Thing

Messaging and chat rooms are great places to go if you are looking for immediate interaction and feedback from like-minded caregivers. Discussion boards while not quite as real-time interactive, can be better, because they maintain their studies forever. Chat room discussions tend just to disappear.

The post All You Need To Know About Dealing With Alzheimers appeared first on The Law Offices of BJ Richardson .

Successful Farm Estate Planning For Your Family Farm

Thu, 01 Jun 2017 18:50:00 GMT

Family farms are the backbone of America. The countryside is dotted with them. They are integral to small communities. Some have been passed on through many generations and have shaped the land around them. Most of all, they are dearly beloved by the families who spend so much time making them successful. It’s in the best interest of American agriculture that the farm families that run these farms continue for many generations. How to help keep them going? Farm estate planning.

Estate planning is not a term that most people find especially joyful. And when it comes to farm estate planning for families the term usually comes with it confusion and possibly some tension among the family. However, it is best for the long-term vitality of the farm and for the potential heirs to create a plan to divide the estate when the parents are ready to retire. It’s imperative that farm owners be ready to consider an all-encompassing estate plan that will successfully enable the smooth transition of the farm to their heir and keep the family together.

There are solutions for families facing this situation. First, the parents should expect to clearly address their vision for the future. Heirs may have an idea that they want to see for the future of the family farm but ultimately it is up to the parents to come up with the plan and present it to the children. Keeping in mind, many people don’t like change but they are even more averse to surprises especially when the situation can be emotional. It’s important to keep the harmony in the family by creating a clear and concise vision, which has been communicated to the heirs. This keeps the family together and a part of the process.

Next, likely one family member has been working the farm and has been groomed to inherit the business. It’s important to address the farming heir and to keep non-farming family members in the loop. The farming heir needs to know the important information pertinent to the running of the farm but the non-farming family members should know the basics of the farm. Who owns the land? Are there large notes on the farming equipment? This will make the family aware of the situation of the farm. Most farmers are heard to say they are land rich and cash poor. Many of their assets are in land and equipment, not ready cash. Knowing this information could make the process easier to understand for the non-farming heirs.

Split The Farm

One solution to the succession of the farm is the splitting up of the farm equally between the heirs. The farming heir then can pay rent to the non-farming family members. This could keep the non-farming family members a part of the farm and could allow them to be generous to the farming heir renting the parcels at or below the average for the region. The day-to-day operation of the farm falls on the farming heir but large decisions of the farm would be decided amongst all the farm heirs.

However, there are risks to this plan. The farming heir has likely spent all of his time working on the farm and may not have the cash available to start paying rent right away to the non-farming heirs and may even resent that he should do so at all considering the non-farming heirs did not work on the farm. Likely the farming heir has not worked for a large wage during his time on the farm and his future is more intertwined with the success of the farm than his non-farming siblings.

The time the farming heir has put into the farm is referred to as “sweat equity”. This sweat equity can be put into numbers and dollars. The family can look at the size of the farm when the farming heir started working and the size of the farm at the time of the estate planning. The farming heir can then be paid for helping to grow the farm, which could give the heir the cash needed to pay his non-farming siblings for the rent of the split land. This also can work to mitigate feelings from so many years of hard labor helping to grow the farm.

Purchase Option

Another option for farm families is the purchase of the farm from the parents. This option brings with it a few considerations. What is a fair selling price? The parents cannot sell their farm at a low price, as they must look after themselves during retirement and the children may not be able to go into a large amount of debt to buy the farm even at a fair selling price. The family has the opportunity to discuss a payment plan with the parents. This will keep the parents comfortable in retirement and keep the children from going into a large amount of debt. Again, these considerations must be talked through openly and honestly among the family to keep the family working together.

Purchase On Death

Another recourse is to wait until the parents have passed away to buy the family farm. The parents and heirs may be able to decide beforehand how much the farm could be worth in the future looking at the growth in the past. This gives the heirs the option to financially plan in advance. It also gives the parents the opportunity to set a fixed price for the heirs. The issue of sweat equity could be credited to the farming heir lessening the amount the farming heir will face in the future.

It is important for the running of a family farm that no one is caught off guard. Whether your farm is worth a little or a lot it is crucial to engage in farm estate planning in case of an accidental death. During the grieving process, your family should be relieved knowing that the legalities affecting the farm have been taken care of and they can grieve in peace.

Keeping the family harmoniously together is of the utmost importance and an estate plan will help you achieve that goal. Having an estate plan before retirement or death is the smartest way to ensure success for the family and for the farm. Many a family farm has been lost due to poor planning but all of those concerns can be avoided when the family can take an honest look at the farm. Change is emotional and a family farm is the site of much hard work. Ensure your family farm the success of many generations by utilizing creative solutions and talking openly and honestly with each other.

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How A Personal Trust Is Set Up

Sat, 01 Apr 2017 19:42:00 GMT

Setting up a personal trust is not just a task for the rich and famous, anyone can set up a personal trust, as it is a legal mechanism that allows you to put conditions on how and when your property will be distributed to your heirs. Personal trusts also allow you to reduce your estate and gift taxes and to distribute assets to your loved ones without the cost, delay and public records of probate court.

How a personal trust is set up

Setting up a personal trust involves drafting legal documents, and a Revocable Living Personal trust may involve the following:

1. A Grantor establishes a Personal trust to benefit people or an organization of their choosing (called the Beneficiary).

2. The Grantor transfers an asset or assets, such as a piece of real estate, to the Personal trust, which is known as ‘funding’ the Personal trust.

3. The Grantor names a Personal trustee to manage this asset. In a living personal trust, the Grantor can also act as the Personal trustee, and name a Successor Personal trustee to take over when they pass away.

4. The property is managed by the Personal trust. When the Grantor passes away, the property does not go through Probate, since the deceased was not the legal owner, and the Successor Personal trustee takes over the Personal trustee duties.

5. The Personal trustee manages the Personal trust to benefit the named Beneficiaries, which can involve selling the property and distributing the proceeds to the beneficiaries, thus terminating the Personal trust.

Example of setting up a revocable personal trust

Jim decides that setting up a Revocable Personal trust is in his best interest. Not only will it allow his property to avoid probate, particularly an out of state probate proceeding for his vacation home, but it can also provide the mechanism to manage his finances should he no longer be able to do so on his own. Jim can choose to use an estate planning attorney to draft the personal trust documents, or he can use an online service or kit to draft the personal trust documents.

Jim is the creator of the Personal trust, he is called the Grantor, he funds the personal trust by transferring ownership of his real estate, stocks and bonds and some personal property into the ownership of the Personal trust. Initially, he will manage his own personal trust, so he is the Personal trustee, and initially, he will be the Beneficiary of the Personal trust. The only change made at this point is simply the ownership of the property.

Jim names his nephew as his successor Personal trustee and his children as the successor Beneficiaries. When Jim passes away, his nephew takes over the management of the Personal trust. He distributes the Personal trust property to Jim’s children as specified in the Personal trust documents.

As you can see, this type of property transfer can be used by more than just the wealthy – in fact, many smaller or moderate-sized estates can benefit from setting up a personal trust.

Personal trusts serve many uses; they’re important estate planning devices, too. But the majority of personal trust must be funded with your assets for them to fulfill their purpose. The apparent hassle of funding a personal trust delays many people from doing so. Unfortunately, not funding them properly defeats their purpose. Here’s the lowdown on personal trusts and how to fund them.

A personal trust is a legal entity – just like a corporation or a person. It holds assets for a beneficiary¸ perhaps to be distributed to him upon some future event. A personal trust document states the purpose of the personal trust and how that purpose to be carried out. A personal trustee is the person (or entity) that carries it out. The grantor creates and generally funds the personal trust.

You as the grantor creates the personal trust document, assigns the personal trustee(s) and beneficiary(ies) and signs the personal trust document to put it into effect. Then you must fund the personal trust by putting assets into it. And that means creating evidence that the personal trust owns (i.e. holds) that asset, and not you.

Who owns an asset?

In terms of ownership, we can put assets into two simple categories: those that are titled assets and those that are untitled assets. Titled assets are owned by the title they’re under. Your bank accounts, securities accounts, house, and car are typical assets titled in your name as proof of your ownership. The actual form of title may vary: a house has a deed, a vehicle has a certificate of title, bank accounts have simply a signed card held by the bank acknowledging ownership of moneys.

Untitled assets have no official designation of ownership. Typical assets that carry no tile are your clothes, lawnmower, golf set, jewelry, paintings and artwork. Your unchallenged possession of them generally implies they’re yours, or you may keep receipts that directly show you bought them.

If you fund your personal trust with any assets, you must re-title them in the name of the personal trust or create some proof that the personal trust owns them as assets if they’re untitled.

How to transfer ownership of your assets to a personal trust?

Different categories of assets require different approaches for transfer of title. In the case of bank and securities accounts, just follow the rules of the institutions that hold these accounts. It may be simple or complicated. Most often, a simple written request to change the title for your name to the name of your personal trust is all that’s needed.

In the case of real estate, you’ll need to deed real estate into your personal trust. You’ll need a lawyer to do this, generally. And if your real estate is in a different state than you live, you’ll need a lawyer in that state to re-title it into the personal trust’s name. In the case of your personal effects like those items having a legal certificate of title, such as cars and boats will have to be re-titled. You may want to check with the insurance company that often covers this type of property to see how best to re-title them – and preserve them as insured.

Those personal effects that carry no legal title can still by used to fund a personal trust. Just write up a document in the name of the personal trust with your signature assigning them – and listing them – as owned by the personal trust – and not you.

Some of the hassles that delay people from funding a personal trust are the re-titling of items that have underlying liens, insurance, and other claims associated with them. You should use a lawyer to help you handle this.

You can see why funding some intended assets can get troublesome and neglected. But get it done so your personal trust can achieve the purpose for which you created it.

Call today for your free 30-minute consultation.

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10 Simple Steps To Creating An Estate Plan

Wed, 01 Mar 2017 18:55:00 GMT

Here is a simple checklist that will help you take care of your personal, family and personal interests by drafting a will, powers of attorney, funeral plans, and more.

1. Make a will.

In simple terms, a will is a signed writing in which a testator gives directives on what is to happen to his or her wealth after their death. The testator makes a statement of the persons that they want to inherit their property in the event that something happens to them or their spouse. When drafting a will, one is required to name a guardian who will take care of their siblings and also name an executor of the will. Attorneys such as those at the law offices of BJ Richardson is best suited for the job of an executor of a will and at the same time, they can also give legal advice during drafting to ensure that the will is valid.

2. Consider a trust.

A trust is simply a legal entity that can holds title to property which is termed as the trust principal. Parties to a trust include the trust-maker, beneficiaries, and the trustee. A trust that is made while one is still alive is called a living trust while one that is made within a will is usually referred to as a testamentary trust. In the event of your demise, all your trust assets will be distributed to your beneficiaries in the manner and at the time stipulated in the trust agreement. A living trust saves your heirs the trouble of having to go through probate court which is a very exhaustive, time-consuming and costly legal process.

3. Make health care directives.

Advanced healthcare declaration, durable healthcare proxy, healthcare power of attorney all refer to the same concept, that of making advance medical care directives. This generally refers to the act of appointing an agent, usually an attorney such as the law offices of BJ Richardson, to make healthcare decisions on your behalf in case you are not in a position to do so yourself. It incorporates life-prolonging treatments such as surgeries, nursing home care, and intensive medical care.

4. Make a financial power of attorney.

In the event of temporary or permanent incapacitation, it is very important that you have an agent in place who can handle all your financial affairs. An attorney can be your agent in such a situation, where you’ll have given them the authority to handle all issues related to your finances. Financial powers of attorney are usually documented in legally binding documents that will guarantee you proper execution of all the wishes you had before incapacitation.

For people with young siblings or those who have a significant amount of debt or taxes, a life insurance policy would be a very viable option. It is also important to name a guardian to manage the money and property that your minor children inherit after your death.

5. File beneficiary forms.

These are documents which contain information about one’s beneficiaries. A File beneficiary form will name the beneficiaries of all your bank accounts, retirement plans, stocks, brokerage accounts and bonds in the event of your death. Such forms will go a long way in ensuring that your heirs avoid going through the probate process which is usually very hectic.

6. Understand estate taxes.

Current laws and regulations dictate that estate tax after one’s death can only be imposed if the estate in question is valued at more than $5.45 million. It is also stipulated that all assets left to a spouse in a married couple are exempt from tax and are free to transfer twice the exempt amount without being taxed. This applies especially for gifts, charity, and grants. Once your estate is tallied up by the estate attorneys and accountants, trusts are set up to remove all your assets from the estate, a net taxable estate and the projected tax rate is arrived at and the whole estate tax is calculated.

7. Cover funeral expenses.

It is possible for you to set up an account, which is payable-upon-death, to cater for expenses related to the funeral. This is far better than using funeral prepaid plans which are generally very unreliable.

8. Make final arrangements.

It is crucial that you make known what you wish for regarding body organ transfer, disposition and donation. This is also applicable for your wishes regarding burial and cremation.

9. Protect your business.

For business owners, especially those who are sole business owners, drafting a succession plan or a buyout agreement is necessary to ensure continuity of the business.

10. Store your documents.

The custodian of your documents should be your will executor or your attorney-in-fact. These people are the only people who should have access to your documents in the event of your demise. Such documents include wills, trusts, deeds, certificates, bank account information, debt information, payment plans and final agreement documents.

Let the professionals at The Law Offices of Bj Richardson help you find the professional attorney to help you with your specific needs. We don’t handle every aspect of tax law, however, we can direct you to a professional that can handle any area of tax law that we don’t handle.

Call today for your free 30-minute consultation. 417-234-1874.

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Your Parents Passed Away Suddenly, What Do You Do About The Estate?

Wed, 01 Feb 2017 20:08:00 GMT

When your parents passed away unexpectedly, it may have been a time of grief and sorrow for you as you tried to make some sense of what had happened. You probably had long moved out of the home and did not have much detail about their estate. With their demise, the estate becomes something you have to settle.

In your grief-stricken state, you may not be in the best of dispositions to handle estate matters after your parents passed away. Here are actionable steps you can take to manage the process, and make it more bearable.

1. Grieve. Do not rush from the funeral to your attorney’s office or to prepare for court appearances. Spend some time to be with family and come to terms with your loss. This will help you feel less overwhelmed when you have to handle your late parents’ estate.

2. As soon as possible after your parents passed away, obtain death certificates. The certificates must be certified and you may need several copies. These certificates are required in many legal and other processes.

3. Look for the original will left by your deceased parents. Before your parents passed away, they may have written a will and left it with their attorney or in their safe deposit box. Also get a photocopy of the will. The will appoints the executor of the estate and also helps you in facilitating settling the estate even though you are not the executor.

4. Apply for probate from a court that is in the county your parents were living in at the time of their demise. The court must have jurisdiction over the county your parents lived in at the time of death. Attach to your application for probate your parents’ death certificate, along with a copy of their will. A small fee may be required when you submit your application. The court will process your application and notify the executor of your parents’ will of the date and time of the first hearing.

5. If your parents passed away leaving no will or trust, i.e. died intestate, their property will still be distributed to those entitled to receive it, under the law governing the particular state they lived in. A probate court will appoint an executor of the estate.

Named Executor

At the first probate hearing, the judge will issue an order admitting your late parent’s estate into probate. He will examine your late parents’ will to confirm its validity. If your parents passed away and their will is not valid for some reason, it will be rejected. The judge may also appoint an executor of the estate. The judge will issue legal documents to you, the named executor, that empower you to carry out this role. In case your deceased parents had any dependents, the judge will issue orders authorizing you to continue supporting the dependents from your late parents’ estate funds.

Collect your late parents’ mail. Since your parents passed away, their mail may continue to come in the mail box. Collecting their mail will protect their privacy and will also help you in your role as administrator of their estate. Statements of accounts and other documents relating to their property may come in the mail. Bills will also come in the mail. In a nutshell, what arrives in the mailbox can help you in the process of identifying your deceased parents’ property.

Pay your late parents’ legitimate bills. Make the payments from their estate. These include credit card bills that your parents passed away and left outstanding, unpaid medical bills, mortgage payment invoices, cell phone and utility bills and others. Creditors should begin to be paid as soon as you are appointed trustee or executor of the estate.

Secure your late parents home and property. After your parents passed away, their home may be left unoccupied. This may allow for easy access to family members and others. Secure their property, by keeping the house locked. Change locks to the doors if necessary. There may be pricey personal property in the house that unauthorized persons may access and carry away. This property is such as antiques, art pieces, furniture and other valuables. Also, personal effects such as documents, clothing, and jewelry should be kept secure until the final settlement of the estate.

Inform credit reporting agencies and credit card companies that your parents passed away. This protects against someone fraudulently using your deceased parents’ credit cards, names or social security number to apply for credit. You also notify the credit card companies of your intent to close the accounts.

Inform their employers. If both or one of your parents passed away while still employed somewhere, let the employer know of their demise. These will facilitate the collection of any benefits your parent may have had with their employer, and also their final paychecks if any are still outstanding.

Let social security know your parents passed away. If your parents were receiving social security checks, notify social security administration of your parents’ demise and ask about survivor benefits.

Inform veteran affairs administration. If any of your parents passed away while receiving veteran benefit payments, have it stopped. Also, ask veteran affairs administration about any survivor benefits.

Distributing Assets

Administering the estate of your late parents requires adherence to certain legal requirements so that it will not result in personal liability to you. You should work with an experienced attorney licensed to practice in the state your late parents resided in before they died. The attorney will advise you on the correct process of distributing your late parents’ assets and helps you avoid problems.

Estate Planning

A living trust is an estate planning tool whose aim in part is to avoid probate. Your parents may have created a trust and transferred their property into it. In their lifetime, they administered the trust for the benefit of all the beneficiaries. When your parents passed away, the trust was irrevocable and a trustee steps into their position. If you are the trustee, you must administer or distribute the trust for all beneficiaries according to the terms of the trust. This is done privately and avoids probate or oversight. If there was a trust by the time your parents passed away, you will not need to spend high attorney fees and there would be no court appearances to administer their estate.

Call today for your free 30-minute consultation.

The post Your Parents Passed Away Suddenly, What Do You Do About The Estate? appeared first on The Law Offices of BJ Richardson .

Understanding How An Elder Law Lawyer Can Be Of Help

Thu, 01 Dec 2016 19:55:00 GMT

Most people are usually familiar with litigation, DUI, human rights, and corporate law lawyers. However, not many people today are aware of the existence and the importance of elder law lawyers. Elder law is a very broad field of law and it encompasses many smaller fields. In simple terms, elder law is related to any legal situation that affects the aged- seniors in legal terms. Such legal situations include; Social Security, Estate Planning, Financial Planning, Retirement Planning, Healthcare, Medicare and Medicaid, Family Relationships, and Disability among others. Elder law lawyers are experts in this field who work hand in hand with seniors and their families helping them develop legal solutions and offering them legal advice. The main aim of this is to help provide a high quality of life for their clients.

The elderly, in many cases, can become either frail physically or mentally. This is where elder law lawyers come in with their experience and expertise in counseling, education, planning, and advocacy. They are equipped to help out the aged with several legal needs. The most common scenarios being;

Medical Planning- This involves helping seniors obtain medical benefits in order to manage the costs involved in long-term care in hospitals and nursing facilities. Elder law lawyers also help them navigate the bureaucratic processes of health insurance application, claim, and insurance recovery.

Estate Planning- This involves granting powers of attorney, will drafting and execution, creating and administrating estate plans, trusts, and drawing up medical directives. Elder law lawyers also help with issues related to probate, tax planning, asset protection, trust funds and gifting. All these help the seniors during their lifetime and even afterward. The Elder law attorney is granted legal authority to carry out the affairs of the client (a senior) acting as the principal administrator of the estate.

Guardianships and Conservatorships- When an elder is no longer in a position to make sound decisions in their financial and health issues, they can appoint an elder law attorney to act in their interest in specified situations. This should be considered before reaching the point of total incapacitation.

Elder Abuse and Age Discrimination- These are events where other people around an elder- such as family, friends, and caretakers- use undue influence, coercion, or manipulation to take advantage of their incapacitation. In such a case, an elder law lawyer can come in handy to help challenge the action in a court of law. This protects the senior from financial fraud, healthcare malpractice, sexual abuse, emotional abuse, and neglect.

Financial planning and retirement planning – Elder law attorneys offer guidance and support to the aged on issues related to their finances, social security, retirement planning and benefits, tax and insurance issues.

Legal Representation and Advocacy in a court of law – Like any other legal expert, elder law attorneys can represent and advocate for their clients on issues such as; insurance claims and settlements, social security claims, issues of neglect, discrimination, and elder abuse.

Other issues that can be solved with the help of such an attorney are; Long-term care planning and financing, disability planning, home equity and housing issues, asset protection, and probate issues. The ultimate goal of the attorney is to ensure that their clients get the highest quality of life possible by helping them create the best and most suitable life plans and systems.

Finding an elder law lawyer in Springfield Mo and getting into an agreement with them usually costs less than what most people expect. Hiring one can be very affordable for people in all classes. In addition, the procedures involved in hiring one are relatively easy to follow up. This makes these services very accessible and can be enjoyed by anyone.

Elder law lawyers are specially trained to assist the aged and their families; however, their services are not limited to seniors. If one is interested in drawing up a will, creating a guardianship plan for siblings, or granting power of attorney for financial and medical decisions, using the services an elder law attorney in Springfield Mo is the best thing do.

Call today for your free 30-minute consultation.

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What Happens When You Tax The Rich?

Tue, 01 Nov 2016 20:04:00 GMT

Should the rich the rich be taxed? Which is the most appropriate taxation rate for the rich? What happens when you tax the rich? These are some of the questions that form the basis of the heated global debate about the tax contribution of the rich. This ongoing discussion has intensified in recent years especially because of the increasing economic problems. Some people argue that the rich should be taxed and taxed heavily, insisting that wealthy people can easily afford to make large tax contributions. Some people, on the other hand, argue that taxing the wealthy and the top earners is counterproductive and imposing high taxation rates on them will worsen the economic situation instead of solving it.

Taking a stand on an issue such as this (which I am not doing in this article) requires one to have some basic understanding of how taxation works and the effects it has on different income classes and the economy as a whole. Imposing higher taxes on the rich affects the economy and income classes both positively and negatively. The following answers the question-What happens when you tax the rich?

The positive effects of taxing wealthy people more than poorer people include; increasing government revenue which would be beneficial to the government especially in rough economic times such as recession and depression. The reasoning behind higher taxation of the rich- progressive taxation- is that rich people are the ablest to afford higher tax hikes. Another benefit that can be observed from a progressive tax system is the reduction of wealth discrepancies. It reduces the gap between the rich and the poor which is important because large wealth discrepancies increase the risk of an economic crash and social instability such as political turmoil and crime.

Taxation of wealthy people is also justifiable on the grounds of morality. Raising tax money from the rich and redistributing it by aiding the poorer sections of a county’s population, can be deemed as a moral action. Taxing the rich helps to make an adjustment to income discrepancies that result from the ever-increasing income of the wealthy and the stagnant income of the middle and lower classes of the economy. It will also create and increase the funding that is directed to health, education, security and defense which will subsequently create economic growth.

Taxing the rich also has several downsides. First of all, it is a disincentive for investment and innovation because it affects the people who are most likely to invest. The more money an investor makes, the more he/she is taxed. The result of reduced investment and innovation is less business and subsequently high rate of unemployment and economic collapse. Taxing the rich makes it difficult for them to increase their levels of income generation. This forces them to leave their countries to find favorable tax heavens for them to do business and make a higher income. Talented business people and expertise are lost to other economies which isn’t healthy for a growing economy.

Progressive taxation is also socially divisive because it creates conflict between different income classes. The lower and middle classes start to resent the upper class and vice versa because they have different contributions to the tax bill. Tax evasion and noncompliance are also huge problems associated with higher taxation of the rich. When tax bills become a burden, it is natural for the taxpayer to default. This increases the total spending by revenues bodies in the enforcement of tax evasion and noncompliance regulations.

At first, the government tax collection increases significantly with increased taxation of the top earners. This sudden spike in overall revenue increases the incentive for inefficient expenditure, which is already a problem even before the rich are taxed higher. Higher taxation of the rich forces the wealthy to alter their investment, expenditure, and tax behaviors in an effort to find a way to reduce their tax spending which in turn leads to a very significant decrease in the real government revenue. The government supported programs become difficult to implement because of reduced funding. However, this happens over time gradually, and the effect is experienced after some years of implementing progressive taxation systems.

Adoption of progressive taxation programs where the rich contribute more to the tax bill has proven to be ineffective and risky even in the past. Past attempts by many countries to do this led to slow economic growth and stagnation. Individuals and business were also affected in equal proportion with high tax bills and reduced income levels. Such outcomes induced the wealthy population to engage in less socially productive activities simply to avoid taxes and as a result, stifling the wider economy.

Taxation of the rich and the top earners results in a series of different events which have both positive and negative outcomes. An evaluation of what happens when you tax the rich shows that taxing the wealthy people is a very delicate move which requires careful and informed implementation because it can be detrimental to the economy if done wrong. It has proven to be a risky and damaging endeavor in the past if done without modesty. With an understanding of the possible outcomes, strategies can be designed to make it possible to reap the benefits and also steer clear of the risks of taxing the rich.

Call today for your free 30-minute consultation.

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Do You Need A Buy-Sell Agreement?

Sat, 01 Oct 2016 19:29:00 GMT

What is it?

In simple terms, a buy-sell agreement, also called a shareholders agreement, is a contract or agreement between the owners and shareholders of a business, used to facilitate the smooth transfer of business ownership interests. It clearly lays out orderly procedures and controls that should be used in the transfer of shareholder interests in the event of specific events such as death, bankruptcy, or retirement of a shareholder. A shareholders agreement is legally binding and signed by all parties involved. Each partner in the business agrees to a cross-purchase, which is, buying another partner’s equity interests in the event they leave the partnership.

Many benefits.

Buy-sell agreements are crucial for all kinds of businesses including sole proprietorships, private corporations, joint ventures, and partnerships. This is because the agreement helps to align the interests of both the company and shareholders hence preventing disagreement when it comes to change of ownership or transfer of equity. A Buy-Sell agreement plays a huge role in stabilizing the value of a business by transferring it under specific conditions to the desired party.

For a buy-sell agreement to be reliable and effective, it has to be drafted carefully and professionally so that it balances the interests of all parties involved. The structure and contents of such an agreement vary a lot depends on the number of parties involved, the short term and long term needs of the parties, and the economic consequences. There are of different types of shareholder agreements such as stand-alone, redemption and cross-purchase. They can also take the form of simple provisions included in another agreement in the case of small limited liability businesses. Buy-sell agreement attorney with acquisitions or corporate transaction experience can help to structure a shareholder agreement to make it fit one’s specific needs.

Triggers.

A well-drafted shareholders agreement outlines and defines the specific conditions that will trigger the application of its provisions. As mentioned earlier, such triggers can include bankruptcy, change of ownership, retirement, insolvency, being fired, quitting, incapacitation and death. It also outlines the procedures that should be used to buy or sell equity if the specified events trigger this necessity. This helps to avoid a lot of bureaucracy during transfer of business interests.
Another great benefit of entering into a buy-sell agreement is that includes a funding mechanism. Such agreements can be easily and efficiently effected because they are backed up by a funding mechanism that facilitates the liquidation of equity that is to be transferred. Quick liquidity allows for payment of taxes and debts by heirs in the case of a deceased partner. Equity can also be transferred in the form of a one-time cash payment or buyout over time in the case of a sale. The most common form of funding used nowadays is life insurance.

Some details are lined out.

A shareholder agreement includes the price per share that will be used for transactions in future when the agreement will be used. This is very important since it helps to avoid potential price fluctuations or haggling over the price at the time of transfer. It also allows for the partners to set prices that will not have negative tax effects and economic consequences in the future.

A buy-sell agreement is also the most efficient way to dissolve a sole proprietorship in the event that the owner dies. This is especially important if there is no one to take over the business. Once it is dissolved the agreement will also stipulate the person entitled to the cash which may be close family or a valued employee. In the same case, after dissolution, the agreement can outline how the money will be used to settle debts, taxes or pay employee wages.

Seek out knowledge.

To draft a reliable buy-sell agreement, it is very important for each partner or shareholder to seek legal counsel so as to ensure that all their unique issues are addressed in the contract. Coming to an agreement on certain key business issues and reflecting them in the contract can at times be difficult requiring the presence of a legal mind. An attorney would be in a better position to understand all the requirements and be able to navigate all the complex issues to create an agreement that will satisfy all the parties involved.

A buy-sell agreement is a very important future planning tool. It is nowadays used for estate planning. This applies in the case of a deceased partner who leaves behind a widow, widower or heirs. Such an agreement facilitates the transfer of illiquid assets in the form of cash in case the heir doesn’t join the partnership. However, using it as an estate planning tool involves complex procedures that require tax auditors, insurance, and valuation experts and this is best coordinated by an experienced lawyer for it to be successful and less time-consuming.

Buy-sell agreements give heirs options.

Shareholder agreements have the benefit of creating choice for an heir in the case of a deceased partner. The heir has an option of joining the partnership as a shareholder or liquidating the equity if they lack the necessary experience or knowledge to run the business. The agreement allows for one to take direct ownership of stock, estate, insurance policies and other membership interests transferred to them.

Although one can enter into a shareholder agreement at any time in a business relationship, the most suitable time to draft and enter into one is at the start of a business relationship because the future is very unpredictable. This helps to avoid misunderstanding and court cases resulting from the lack of an agreement when a partner leaves or joins the business.
For a shareholder agreement to be fair and effective, it has to satisfy all the legal requirements set by the law. An attorney with acquisitions and corporate transaction experience will go a long way in helping one to ensure that the agreement is legally binding to all parties and that it complies with the laws and regulations that will be used during its application. A lawyer will help in drafting buy-sell agreements, purchase or sale agreements during a sale or purchase of equity, they will help in avoiding tax pitfalls and giving you a variety of funding options. with all this in mind, Yes, you do need a buy-sell agreement for your business.

Call today for your free 30-minute consultation.

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Do I Need An Estate Plan?

Thu, 01 Sep 2016 19:24:00 GMT

As a property owner, the question that constantly rings in one’s mind is, Do I need an estate plan? Well, the answer to this question is Yes, definitely. An estate plan is one of the most important things that every person who owns any property, whether in small or large scale, must have. An estate plan is simply the process of organizing one’s affairs in advance in relation to the smooth transfer of one’s estate after their death. It involves creating a detailed and flexible plan that will be used to transfer your assets to the beneficiaries of your choice.
Estate planning is done using one or more of the legal tools and entities provided for by the law such as; a will , trust , power of attorney , power of appointment, health care surrogacy, property ownership rights, business successions among others. Although these are some of the best tools to use for estate planning, they are no good without the involvement of an experienced estate planning attorney when creating the plan. The combination of such tools with the services of a lawyer will guarantee you that the plan will be well-structured, plus, it will be one hundred percent efficient and effective when the time comes for its use.

Yes, and here’s why.

The question ‘Do I need an estate plan?’ is best answered by the very many benefits that can be accrued from having a well-structured estate plan in place in advance. The greatest advantage of such an arrangement is that it ensures that all your beneficiaries, family, and children are catered for financially in the event of your death. This is made possible by wills, and trusts which give you a choice while you are still alive to decide who, when and how your assets will be distributed after your death. Health surrogacies and powers of attorney will help you make the best choices regarding your health care in case of incapacitation and also regarding the care of your minor children.

Huge tax savings is another benefit of having an estate plan in place. It helps to significantly reduce the taxes payments that your beneficiaries will have to pay while administering your estate. An attorney will be in a position to navigate through all the tax issues relating to the transfer of property. This also comes hand in hand with relieving your family or beneficiaries from a lot of bureaucracy and court expenses that come with one dying intestate and assets going into probate. Interstate and probate are the states where property left behind by a deceased person is administered by the court because they did not have an estate plan by the time they died. This is a very complicated, time-consuming and expensive process that you shouldn’t put your beneficiaries through.

But wait, there’s more.

A proper estate plan will also help shield your estate from lawsuits and other claims that might arise such as claim from creditors, tax organizations, divorced spouses, or in-laws. This guarantees the security and protection of your property by the law. Estate plans also create privacy when it comes to administration of a deceased’s estate. This is a fact that is valued by many people because it avoids probate courts and public interference. A Trust is very effective in keeping things private and civil.

An estate plan will allow you to name an executor or an executrix of the plan. This is a person whom you trust to distribute your property as stated by the will after you pass away. You’ll be able to mention a primary executor plus several secondary ones whom you can change at any point in time. An executor of an estate plan can be an attorney, spouse, child or a family member that you trust.

Incapacitation.

Estate planning provides short-term and long-term plans for incapacitation or incompetency. This is made possible by the use of powers of attorney and medical surrogacies. In the event that you become incapacitated by being hospitalized, a medical surrogate will be used to determine who you would like to take over your medical and financial decisions. The same applies for power of attorney, which is used mainly to determine how your estate is handled if you become incompetent, disabled, or not in a position to make critical decisions. These plans stipulate the extent to which the executor or trustee can and the conditions for its execution.

When it comes to distribution of property to beneficiaries an estate plan can be used to create restrictions and incentives for your successors. This has to do with timing and level of access to the assets. It helps to specify this especially when it comes to minors so as to ensure disciplined use of the inheritance. It also helps a lot in the transfer of trust funds and business interests.

Don’t burden the family.

Most people nowadays fail to plan their estates because they don’t believe that it is necessary to have a plan in place. Most of them leave up the task of distributing their wealth to their family, failing to realize that if they die without an estate plan, they die intestate, and the law will determine what will happen to their assets. The result of this may be something they would not have liked, or it may lead to disagreements, high estate taxes and prolonged court cases that tie up the property. It is, therefore, paramount that you have an estate plan in place to protect you and your family’s interests.

Gain peace of mind.

With the use of the above estate planning methods, you’ll be able to gain peace of mind and confidence that the administration of your estate after you pass away will be done strictly according to your wishes. However, this cannot be achieved without the involvement of a trained and vastly experienced estate planning attorney to guide you step by step through the whole process keeping all your interests at heart.

All the benefits that we’ve seen can come from creating a well-structured estate plan proves that you do need an estate plan ASAP if you don’t have one. The easiest way to do this is to pick up the phone and talk to an estate planning lawyer, and you’ll be on your way to having the best plan.

Call today for your free 30-minute consultation.

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Understanding Innocent Spouse Relief Tax

Mon, 01 Aug 2016 19:58:00 GMT

Filing returns can be a tedious and time-consuming job, and one should ensure that they are well equipped with all the necessary information regarding the entire process. There are no shortcuts to filing returns since they are a government requirement which must be met by all citizens. There are different types of taxes and reliefs. To understand the Innocent Spouse relief tax, here are some of the critical questions with solutions, to help you while filing your returns.

What is innocent spouse relief?

It is a tax reprieve from the additional tax you are indebted if your partner in marriage or former partner failed to report or wrongly reported income or falsified deductions or credit.

When should you file the innocent relief liability?

Form 8857 should be filled as soon as one becomes aware of a tax liability for which only one’s spouse or former spouse is believed to be responsible. Two years is the maximum time that the law allows one to request for the innocent spouse relief after the date the IRS first tried to collect the tax from you. When seeking a refund of tax paid, it must be requested within three years after the date the return is filed, which is also the statute period for seeking a refund. It can also be done two years after payment is made. Refer to Publication 971 , Innocent relief liability.

Does one need to fill multiple forms for several years reporting?

No. One form is enough to cover multiple years of reporting.

How does one become aware of the obligation?

The IRS upon scrutinizing your tax return proposes to increase your tax obligation. The IRS will then send you a notification.

What are the conditions to be met to qualify for the innocent spouse relief?

There are several conditions that must be met before one qualifies for spouse relief.

These are:

Filing a joint return that has a tax deficiency resulting from the misreporting from your spouse or former spouse. It could be due to an error of omission by the spouse who fails to include all income received. Wrongly reported credits and deductions could also result in the tax deficiency.

Give enough evidence that at the time of signing the joint return, you were unaware that there was an underestimation of tax. This should absolve you from any wrongdoing, and you will not be punished because of the mistake of your spouse or former spouse.

What if one does not meet the qualifications for Innocent Spouse Tax Relief?

All is not lost when one does not qualify for the spouse relief. You may still be qualified for equitable relief by providing proof beyond any reasonable doubt that you were not liable for the under-estimated tax and that it would not be fair to hold you in liability for the same. However, you must meet all the other requirements listed in the Publication 971, Innocent spouse relief.

What documents need to be submitted when seeking the Innocent Spouse Tax Relief?

When seeking innocent spouse relief, a duly completed Form 8857(PDF) , Request for the Innocent Spouse Relief which is signed under penalties of perjury is required. If the form is unavailable, a written statement containing the same information as would be found in the form is submitted. It will be signed under the same conditions as that of the form.
The IRS will be required to alert the spouse whom you filed the return jointly of your pending application and allow him or her to furnish IRS with facts which will inform the decision making concerning your claim.

What happens if you lived in a communal property and failed to file your returns jointly as a married couple?

You might qualify for relief from the operation of state community property law if you lived in a community property and you did not file as married filing jointly.
Community property states include the following:

Will I automatically get a relief once I have filled all the requisite forms?

No. It is not automatic that one will be granted the relief applied for. Some factors will need to be considered and verified before the disbursement. Some of the considerations will include the following:
The current spousal status

The credibility of the application will affect the outcome of the results. The IRS team need to be fully convinced that the application is genuine.

How long does it take to complete the process and have the check ready?

A duly filled Form 8857, Request for the Innocent spouse relief takes up to 6 months to finish the processing. During the processing time, the service will be requesting for your tax information and contact the non-requesting spouse.

Where is the Innocent Spouse Claim Filed?

The Form 8857 should be sent to the following address:
Internal Revenue Service, P.O. Box 120053 Covington, KY 41012

Fax the Form 8857 and attachments to the IRS at 855-233-8558.
All attachments should have the name and social security number.

Are there any laws in place to protect the person filing from an aggressive or abusive spouse?

The law states that the IRS must contact your spouse or former spouse without any exception when processing your application.

The spouse will be allowed to participate in the process and will be informed of the preliminary and final result of your request.

IRS will not divulge the current personal information of the applicant for purposes of privacy protection. Examples are your current name, current residence or current employer and any other unrelated information.
Your spouse or former spouse may, however, become privy of your personal information should you petition the Tax Court.

What happens when there are further questions pertaining to the Request for Innocent Spouse Claim?

There is a toll-free number, 1-855-851-2009. Any additional information can be obtained from here.
Should I wait for the outcome of my claim to continue filing my current year tax return?

No, you do not have to wait for the results. File your returns normally it will not affect the outcome of your application.

Conclusion

Innocent spouse relief is a tax reprieve that can be applied by a spouse who feels that his or her partner failed to give the correct estimates regarding their income to the IRS. The application and subsequent approval will result in a refund. However, one has to follow the rules that have been laid down by the IRS.

Call today for your free 30-minute consultation.

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Estate Tax Explained For Your Small Family Business

Fri, 01 Jul 2016 19:39:00 GMT

Estate tax must be considered by anyone who is planning for their family’s future . If you own a family business, it is important to protect the main source of income for your loved ones and any investments you may have made during your lifetime. A knowledgeable, friendly attorney can help you master this important aspect of the estate planning process.

Estate tax is applied to large fortunes and is calculated when you transfer your possessions at your death. It does not affect anything below the tax-exempt sum set by the government. Property that was transferred prior to your death won’t be affected. In order to determine the amount of tax you owe, the fair market value of everything you own or have an interest in will be considered.

Taxable Assets

Taking care of your family is your first priority and it helps to know which of the assets you plan on leaving to them will be considered for taxation after you die. The property you own that is a part of your family’s business, life insurance proceeds and all of your business interests will be taxed. If you own a small business, other assets will also be considered for estate tax, including:

In addition to owning a small business, some people also create other investment vehicles. This helps them to diversify their income. When you are considering estate taxes, you must remember that these investments will be considered as well. If you do not want them included, talk to an experienced attorney about solutions that will work for you. They can help you to find options, no matter how complex your financial arrangements may be.

All of those assets comprise your Gross Estate and are typically eligible for tax. A knowledgeable tax attorney can help you to plan your life insurance and other investments so that your family benefits fully from these assets. With full access to your life insurance benefits, your family can pay for retirement plans or college education and even fund buy-sell agreements for your business.

Will Your Family Have To File A Return?

Some small business owners have combined assets that are less than the amount the government considers for estate tax purposes. In order to decide whether your family will need to file a return, they must calculate your Taxable Estate. Basically, your taxable Estate is the net value of your assets after your expenses are subtracted from your Gross Estate.

Your actual Taxable Estate expenses are determined by adding your personal debts, mortgages on your business properties, gifts to charities and the fair market value of the property that will be owned by your spouse. People who have estates that consist only of cash, insurance or a few other assets do not usually have to file an estate tax return. If your assets amount to more than $5.45 million when they are combined, your family will have to file an estate tax return.

Since 2011, it has been easier to transfer unused exemptions to your spouse when you die. This means that effectively, people who are married can access double the exemption and hold a greater portion of their assets for their family. You can preserve more of your family’s wealth and hold on to a greater portion of your assets by fully utilizing the exemptions available to both of you.

Preserve Your Wealth

People who plan ahead can often reduce or even completely eliminate estate taxes. Congress sets the exempt amount and this has been consistently rising over the years. If you are a single parent or unmarried, you can make use of life insurance to reduce the taxes that you pay. Some people also decide to remove assets before they die, since the assets at your death are what the government considers for estate taxes. With friendly legal advice, you can develop strategies that work well for your needs.

Taxes may decrease the resources you want to give to your spouse and other dependents. Speak with an experienced estate planning attorney today about proven methods of preserving more of your hard-earned wealth for your loved ones. Planning for estate tax gives you greater peace of mind, protects your assets and helps you to create an enduring legacy for future generations.

Call the Law Offices of Bj Richardson today to discuss your business law planning needs.

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Nursing Home Planning And Your Estate

Wed, 01 Jun 2016 19:51:00 GMT

Nursing home planning is essential for people who want to protect their hard-earned savings in every situation. Long-term nursing home care may become necessary after an accident, illness or the death of a primary caregiver. Estate planning should be designed to prevent financial losses if you require expensive medical treatment.

Government programs for nursing care constantly change rules that determine your eligibility. Many of them are under strain and some states already make late payments to nursing homes. There are several options available that help you to preserve wealth and get the maximum benefits possible from Medicaid . Community-based services, nursing home care and assisted living are all possibilities that you can prepare for with solutions such as a revocable trust.

Protecting Your House

If you move into a nursing home, the state can make a claim against your home to recover money that has been spent on your care. This can happen to anyone who gets benefits from Medicaid. Since your home is likely to be the only substantial asset you have left when you die, you may want to leave it to your children.

In some states, your home may not be included under estate recovery if it values less than $552,000. If a dependent relative such as a spouse lives there, you can keep your home. If you decide to transfer your home to a relative, that can lead to a penalty period where you are ineligible to receive benefits. Meet with an elder law attorney to discuss ways to protect your home for your loved ones.

Income For Your Spouse

A healthy partner may be left with nothing if all your assets are used to cover nursing home costs. This situation can be avoided through “planned poverty”. The “impoverishment strategy” prevents all your assets from being used up, so your spouse can buy food, pay for their own medical costs and cover other expenses.

Transferring all assets to your spouse isn’t recommended since the finances of both partners are considered when determining Medicaid eligibility. Your partner can retain a burial reserve and property under certain conditions but a percentage of these will be considered as available for Medicaid purposes.

Senior Citizens Already In Nursing Homes

Seniors who are already receiving long-term and who have not done any nursing home planning previously can still use methods of protecting their assets. You can keep enough of your assets to pay for up to sixty months of care. You could then transfer the balance to loved ones and apply for Medicaid after the waiting period when your own savings run out.

Some parents chose to pay their children substantial sums for the Geriatric Care services that they would perform any way out of love. This option is not available to individuals who are in nursing homes so you should use this and other techniques with caution. Meticulous nursing home planning can safeguard your assets and guarantee a higher standard of healthcare. Consult with our compassionate legal advisors to prepare for this critical aspect of estate planning in accordance with the laws of your state.

Call The Law Offices of Bj Richardson today to discuss your nursing home planning needs.

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Estate Lawyers Concerns

Sun, 01 May 2016 19:36:00 GMT

Why The Wealthy Fail To Implement Their Estate Lawyer’s Plan

After discussing and designing the estate plan of a client, the next step that the estate and trust lawyer has to take is the implementation. This stage is often characterized by the creation of trusts, drafting of documents as well as the creation of partnerships. Interestingly, many wealthy clients terminate the process long before the implementation.

The Study

Recently, a study was carried out involving 619 estate and trust lawyers. During the study, each of the lawyers involved had run into a situation that involved a wealthy client, that did not make it to the final step of implementation. The study revealed that the client had paid for all the steps, involved in the creation of the estate plan, they simply just didn’t follow through with the final step.

The Survey

After the study, a separate survey was carried out to help understand better, why some of these wealthy clients opted to take no action or quit before implementation. This survey was conducted on 288 affluent families with a net worth of over $10 million dollars. The selected families had requested an estate and trust lawyer to help in designing their estate plans. However, these wealthy clients failed to follow the process to the end.

The Findings

Part of the survey involved asking the wealthy clients to give an explanation as to why they failed to follow the whole process to the end. They were asked to provide an explanation as to why they made the decision not to implement the estate plans designed for them.

The survey revealed that 90 percent of the families that did not implement their estate plans thought that the plans did not meet their individual wants, objectives or goals. This is evidence that the estate and trust lawyer failed to uncover the major or deep issues concerning the client.

The survey also revealed that most of these affluent families were seeking a lawyer who would help in thinking through major trust and estate issues. In addition, they also sought someone who would help them to clearly understand the important facts and details. In the instances where the clients failed to get to the implementation stage of their estate plans, it is evident that their trust and estate lawyer failed to meet their needs.

It is clear that the clients were unhappy with the process of setting up an estate plan. The main reason is believed to be that the lawyer was unable to clearly relate the need for the complex strategy being used. Intricate strategies can often seem easy to some, and complete nonsense to others. The confusion contributed to the dissatisfaction with the whole process. This, in the end, led to the client not following through with the estate plan. Many of the clients didn’t feel that their overall objective, goals, and desires were being met.

Finally, other clients explained that they failed to implement their estate plans due to feeling uncomfortable about making such a major decision. This is perhaps due to the above-mentioned factors or even the generalized feeling that they were not in control in any part of their estate planning. One out of six clients also added that they spoke to other professionals who advised against the use of estate plans designed by trusts and estates lawyers .

The Answer

In a world where an estate plan is essential. There needs to be a way to help those that have yet to establish their eternal wishes legally. At The Law Offices of BJ Richardson, our staff is dedicated to making those complicated tactics, needed in some cases, as easy to understand as humanly possible. We will walk you through the whole process step by step.

Call today for your free thirty-minute initial consultation.

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Business Planning For The Survival And Recovery Of The Business

Fri, 01 Apr 2016 19:07:00 GMT

Business planning is crucial for both the growth and survival of the business. Some of the most successful entrepreneurs in the world will tell you, “If it is not written, it is not real.” Most successful businesses in the world have had business plans even before they started. Business plans are crucial in addressing all the central components of doing business. Ideally, business plans must be made before starting the business.

What are the main reasons for having a business plan?

Essentially all new businesses might require funding at some stage. A business plan is one of the best tools to get you financing from investors around the world. The plan for your business is what will speak to your financiers. You might require additional financing for your new business at some stage. Business planning will be used by banks and other financial bodies willing to fund you, to study the viability of the business. It should indicate the expected returns after a certain period and how you will achieve it.

The second use of a business plan is to determine if all required components of starting a business have been considered. Most entrepreneurs end up regretting later when they miss out on crucial matters.

A business plan addresses all the central components of starting a business. It is a must for all entrepreneurs to consider what they are offering, how they are offering it and to whom they are offering it. Even if you have everything in your head, having it written down in clear ways is crucial for clarity reasons. Keeping a business plan in your mind has the following effects:

Most businesses that work without business plans are sometimes forced to have one when a significant change in the economy takes place. Even businesses with plans are sometimes forced to revise them to suit the current economic situations. Every plan must have the answers to the following questions:

The plan will act as a vehicle for communicating with the business managers, staff members, and the investors. Business planning helps identify and solve problems early before they get worse. Plans capture the big picture of the company making them better prepared for any opportunities or crisis in future.

Three main elements every business plan must have, include strategies, financial projections, and actions. Analyze your market, what your competitor does and your marketing strategy. What is the impact of your business on the economy, community, technology and regulatory factors? Do a feasibility study to learn the weaknesses, strengths, and opportunities of the business.

Business planning can be modified with time, based on what you have learned. Such planning will guide you through all your vision as you aim to get to the top and reap the financial benefits of proper planning.

When planning a business adventure, the most important aspect to get right is the legal entity.

This is where you need to seek the counsel of a business law attorney . An attorney can guide you through the complex issues of incorporation, LLC, or whatever entity works best for your particular business. Don’t skimp on this part of your business plan. It could mean the difference between a long profitable business adventure, or ending up losing everything you worked so hard to build.

Call the Law Offices of Bj Richardson today to discuss your business law planning needs.

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A Tax Law Attorney – Springfield, MO

Tue, 01 Mar 2016 19:03:00 GMT

Tax Law Attorneys

A tax law attorney is an accredited professional who is trained and experienced in dealing with legal matters relating to taxation law. Such an attorney can be of great help to an individual and even to a business organization. A tax lawyer can help you as an individual with; filing personal income tax returns, getting tax reliefs, legal representation in a court of law, and other consultation needs that you may have. For a business, a tax lawyer can come in handy when it comes to filing error-free tax returns, calculating tax deductions, handling tax audits, tax reliefs, handling tax issues related to contracting and international business, plus legal representation in a court of law. All this makes tax attorneys a very important part of our day to day life and using their services is unavoidable.

Tax attorneys are able to help save a lot of time and money that would otherwise be spent trying to maneuver the complex and confusing web of tax law. It is, however, very important to choose a tax lawyer that fits your exact needs and one that will be able to properly represent your case. In order to choose the best one, you’ll first need to know the different types of tax lawyers that exist today and their specific roles and areas of specialization.

The different types of tax lawyers are based on the different categories of tax law that exist today. The main types of such attorneys are; tax planning, property tax, corporate tax, civilian tax, tax controversy and bankruptcy tax attorneys. Tax planning attorneys are able to help both individuals and businesses in tax plan formulation, structuring, and review. This helps to put financial issues in order to ensure full tax compliance. Property tax lawyers have a specialty in property taxation law. They help in property tax negotiation, property tax audits and filing property income tax. They are also able to represent property owners in court cases.

Corporate tax lawyers are specialized in taxation laws related to business operations such as licensing and transaction laws. A civilian tax attorney, on the other hand, is specialized in taxation laws related to personal tax such as income tax. They are usually hired for consultation purposes. Tax controversy lawyers are best equipped in dealing with court cases relating to tax controversies, such as tax evasion, for both individuals and businesses. They have a better understanding of how tax regulatory bodies work which gives them an edge in handling such court cases. The last type of tax attorneys is a bankruptcy tax attorney. This type of lawyer helps with filing for bankruptcy and negotiation of tax payments after the declaration of bankruptcy.

All these types of tax lawyers can come together to form a law firm. Such kinds of law firms can either be CPA firms or Hybrid firms. A CPA firm is basically a tax law firm that is made up of tax attorneys and trained accountants. A Hybrid firm is one that is made up of tax lawyers, CPA accountants, taxation law experts and agents from tax regulatory bodies. These two types of firms differ mostly in terms of cost of services and in the number of services offered.

Choosing a specific type of tax attorney is very important because it helps to narrow down your choice to your specific requirements. These different types of tax attorneys are better versed in their technical fields of taxation law and are also usually up to date with changes in the law that may play to your advantage.

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Inheritance Tax: Some Basics And How It Is Levied

Mon, 01 Feb 2016 19:47:00 GMT

Inheritance Tax

Inheritance tax is one of the many forms of taxation that are levied by governments today. Also referred to as death duty in some countries and states. It is imposed on the beneficiaries or heirs of a deceased person’s estate. Taxable inheritance includes all property, real estate, stock, personal possessions, gifts and liquid assets such as cash, securities, insurance, trusts , annuities, and investments, that have been passed on by a deceased person to a family member or a friend. Different states and countries have different laws governing payment of inheritance tax but certain aspects of such laws are similar all around.

Commonality

Commonality is especially seen in IHT exemptions laws. Beneficiaries can be exempted from tax payment in the case of gifts, charitable donations, trusts , life insurance and estate left to spouses. Although exemptions are universally accepted, the intricate details on the procedures to be followed and the requirements to be met for tax exemption differ a lot from place to place. Exemptions are however very important because they can help you to reduce the tax burden on your beneficiaries plus they also allow you to pass on the family business to your children without causing the business to go bankrupt.

Limits

Inheritance tax is only chargeable on property values that are above specific set amounts in most states or countries. In the UK it is only levied on property valued above £325,000 while in most U.S states, the threshold for inheritance taxation stands at $5.35million in 2015. The European average is any property value above £ 1.8 million. The U.S, U.K and other European countries’ IHT rates are at 40% of the total value of the inherited estate which is relatively low compared to the world’s highest IHT rate seen in Japan, currently at 57%. These rates are usually subject to yearly review by taxation authorities or by government instituted boards of the individual states and countries.

Relationships

In most countries, IHT rates depend on the relationship between the beneficiary and the deceased. Immediate family members such as spouses or children are taxed using lower rates compared to the rates charged on friends and distant relatives. Only a few countries levy a flat rate for inherited property such as India and China, where 1% of the estate value is charged on the heir irrespective of their relationship with the decedent. The estate value that is used to calculate IHT levies is usually modified to exclude personal debts and outstanding loans of the deceased.

Gifts

Taxes payable for inherited trusts and gifts are usually calculated from all lifetime gifts and trusts of the deceased in most places except in a few states where it is limited to a certain period of time in the life of the deceased. Gifts or donations given or received before the set span of time are not subject to taxation. Such timeline laws are put in place mainly to prevent inheritance tax evasion whereby one gives out their estate as a gift or as a donation before they die.

What We’ve Learned

Using an experienced inheritance attorney, you can easily reduce the amount of tax that your heirs will be required to pay. An attorney will help you write a will that makes proper use of the nil-rate band allowance to reduce, in advance, the tax liability you’ll leave behind. A lawyer will also be in the best position to give you relevant, accurate and up-to-date information on inheritance tax laws.

Call Today

As you can tell this is a complex topic, and we have only scratched the surface. The Law Office of BJ Richardson can help shed light on all your questions and concerns. Call today for your free 30-minute consultation today.

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Establishing The Different Types Of Power Of Attorney That Exist Today

Tue, 05 Jan 2016 19:32:00 GMT

Power of attorney

Conferring Power of Attorney privileges is one of the most important elements of estate planning. This is because it allows a person to authorize another person, that they trust, to act or make decisions on their behalf. In the event that they become incapacitated or are not in a position to act on their own. A principal, also called a grantor, is the person conferring authority, while an agent is the trustee of the principal. Usually a person above 18 years of age. In some cases, the agent can be an attorney-in-fact.

Legally binding agreement

Power of attorney is a legally binding agreement, It is documented and signed by both the principal and the agent. It gives an agent the right to make decisions relating to the principal’s health and financial matters. POA documentation shows the specific sets standards of the agreement and the extent of authority and power that is conveyed to an agent. It also shows in detail, the limitations of the transferred authority and powers. This documentation is only valid after it has been filed with the relevant country or state authorities. After filing, it is subject to review or cancellation by the granter, either orally or in written form, at any time that they deem necessary.

Delicate endeavor

Although it is one of the best ways to safeguard one’s interests, establishing power of attorney is a very delicate endeavor which requires proper understanding of how it works and the different types of POA that exist today. As a principal, it is very important to ensure that the agent that you designate is skilled and capable of effectively executing the power and authority that you confer with them. The agent should be a like-minded person whom you know well, trust and can be relied on to remain loyal and make decisions in your interest.

Different types

There are different types of power of attorney that can be used to confer authorities depending on the prerogatives that are to be conveyed or the applications. They include; Durable, Non-durable, Limited, Health Care and Springing POA. They can either be witnessed or unwitnessed, written or in some unique cases, oral. Durable POA gives the agent or attorney-in-fact the authority to make decisions or take actions based on specific directives given by the grantor. The authority is usually conferred in situations that are likely to last for a foreseeable future. It is the most common type used today in situations such as payment of tax, debts, or the collection of income.

Non-durable POA

Non-durable POA gives the agent authority over only specific types of decisions or financial transactions. Powers are effective only for a short period of time after which they are revoked. This is used in situations such as; when a principal is undergoing treatment or surgery, or when a principal needs some expert help with a situation.

Limited POA

Limited POA is used where a granter authorizes an agent to transfer ownership or sell personal property on their behalf. The permissions are only valid for the transactional period. Health Care and Springing POA fall under the health matters bracket differing only in terms of their uses whereby the former involves assigning authority to an agent to make crucial medical decisions such as the acceptable surgeries or treatment procedures. The latter on the other hand, confers authority to an agent allowing them to release the principal’s medical records or to disclose their medical state.

In conclusion

In conclusion, it is advisable to have an expert legal mind present when you’re establishing power of attorney, mainly because it helps you prevent errors in documentation or filing and also help with its effective execution.

Call today for your free 30-minute consultation.

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A Detailed Look At The Administration Of Death Tax

Thu, 12 Mar 2015 18:59:00 GMT

Simply put, death tax is the tax levied by a government on the privilege of transferring and receiving an estate . It is usually charged on the Net value of the estate that is transferred from a decedent to an heir. Taxable estate includes all the probate property, tangible and intangible, owned by the decedent plus all other interests such as joint ownership assets, insurance proceeds, annuities, and any other non-probate property.

Death tax, also called estate tax, is usually confused with inheritance tax which is actually a distinct form of taxation although closely related to death tax. The difference is seen mainly in their administration. Estate tax is imposed on the total value of the estate transferred to beneficiaries regardless of how the decedent would want it to be distributed. Inheritance tax, on the other hand, is imposed on all the individual beneficiaries using rates that graduate depending on their relationship with the deceased person and also depending on the amount received.

The exact estate tax amount is relatively easy to calculate compared to inheritance tax. This is because valuing for estate tax only requires one to determine the Gross estate value and the value of deductibles. This makes administration of estate taxation a lot easier for the government and taxation authorities because it can still be collected irrespective of any unsettled distribution wrangles among the heirs. The total value of a taxable estate is referred to as the Gross taxable amount in taxation terms and is calculated using the prevailing market values. The Net taxable estate is the gross taxable estate minus exemptions, estate administration expenses, loans, debts, mortgages, and other liabilities. In some cases, the lifetime taxable gifts may be added to the Net taxable estate.

Estate tax exemptions can include publicly traded securities, the estate left to a surviving spouse, lifetime gifts, estates valued below certain values, cash, joint tenancies and many others. Such exemptions are a very important part of death taxation laws because of several reasons. First and foremost, they bring justice and fairness to death taxation. Secondly, they create ease of administration and also reduce the costs of administration especially on large estates. The third and final reason is because death tax exemptions prevent tax evasion and reduce the number of tax payment defaults. Exemptions are also beneficial to the heirs of an estate because they reduce the value of their tax liability leaving them with substantial amounts of capital to invest in and generate more income.

The law requires an income tax return for an inherited estate and a final income tax return for the decedent to be filed with taxation authorities by the heirs, surviving spouses, executor or the fiduciary. This should be done within a specific time frame from the date of death of the original estate owner. This time frame varies from country to country and from state to state and defaulting can attract penalties. The Income tax return form is supposed to include an inventory of all property transferred their value, location, source and a list of persons responsible for payment of the death tax. The deceased’s final income tax return usually shows the income generated after their death such as unpaid salaries and bank interests earned.

In conclusion, estate tax is a government’s way of gaining revenue and instituting control. It is also in some sense, a way of encouraging more production efforts and accumulation of wealth by those with estate plans because they would want their beneficiaries to be left with a substantial inheritance after death tax is charged.

Estate planning is an extremely important step in making sure the assets that are accumulated over a person’s lifetime are managed in such a way as to limit the tax exposure, and to ensure it is dispersed according to your wishes.

Schedule your free thirty-minute consultation today.

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The Law Offices of BJ Richardson

Your Relationship With the Law

There is no perfect justice, just as there is no absolute in ethics. But there is perfect injustice, and we know it when we see it. ﻿

"There is no perfect justice, just as there is no absolute in ethics. But there is perfect injustice, and we know it when we see it."

- Alan Dershowitz

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A Tax Law Attorney – Springfield, MO

Inheritance Tax: Some Basics And How It Is Levied

Establishing The Different Types Of Power Of Attorney That Exist Today

A Detailed Look At The Administration Of Death Tax

There is no perfect justice, just as there is no absolute in ethics. But there is perfect injustice, and we know it when we see it.