Why Is It Important To Do Estate Planning If I Have More Liabilites Than Assets?

Video Summary

“Why is it important to do estate planning if I have more liabilities than assets?” This is a question that I am commonly asked by perspective clients. A lot of times people have the misconception that, “If I don’t really have very many assets, or no assets at all, or if I owe more than what I’m worth, why would I need to go see an estate planning attorney?” Well, the answer is very simple, because estate planning involves much more than just a last will and testament, which will dispose of your assets that you own at the time of your death. There are many documents which are utilized to assist you during your lifetime to help with things such as incapacity, whether it be due to a motor vehicle accident or whether it be due to the aging process. Incapacity happens much more frequent than people realize. This is why it’s very important to come see an estate planning attorney to talk about those different options.

As stated previously, the last will and testament, in my professional opinion, is the least important estate planning document, because it only comes into play after you’ve passed away, whereas other documents, such as a durable power of attorney, or a healthcare surrogate, or actually a living will, are the most important documents, because they deal with decisions that need to be made while you’re alive. With that being said, I would love for you come see me here at the Law Offices of Waller & Mitchell so that we can discuss all of your estate planning needs and which documents may be appropriate for your specific individuized situation. Please give me a call at 727-847-2288.

Read more
No Comments

What Is A Guardianship Of Minor Property?

Video Summary

What is a guardianship of minor property. Well, guardianship for minor property is necessary any time a person under the age of 18 years old receives over $15,000. Well, one might ask, “How would a person under 18 years of age receive over $15,000?” The most common situations generally involve either an inheritance from a loved one or an injury settlement related to, generally, automobile accidents. Now, obviously, there are many other situations in which a child can receive over $15,000, but those are generally the most typical types of situations. A lot of times children will receive monies under insurance policies. Well, those monies, even though they don’t go through a probate proceeding, are still going to be subject to a guardianship of minor property.

A guardianship of minor property is not an option. Some people will ask, “Well, if my child is 15 years old, can I not just leave the life insurance proceeds with the life insurance company for the next three years until they reach the age of majority, and then they can take it out themselves?” Generally, the answer is going to be “No.” The life insurance company does not want to continue to hold those funds. They want to pay out the claim and they want to close the case.

With respect to that, it’s important to associate yourself with an attorney that specializes in this area of the law. I specialize in this area of the law at the law firm of Waller & Mitchell. If you or anyone you know has a child under the age of 18, and they’ve received an inheritance or a settlement as a result of an injury, please have them give me a call at the law offices of Waller & Mitchell at 727-847-2288 so I can help assist them with this matter.

Read more
No Comments

What Does A Title Company Do?

 

Video Summary

 

What does a title company do? Well, a title company issues title insurance. In incident to or as a result of issuing title insurance they must prepare all the necessary documents to convey title. Title insurance is where the title has been examined by looking at the records, and then once they’ve examined it they determine if there’s any liens or any encumbrances such as easements, or restrictions, or judgments. Most people are very concerned about getting a clear title. Clear title means, to most people, that there are no judgment liens against the property or other kinds of liens.

The title company, through their underwriter, has the title examined. Once they have the title examined they issue what they call a title commitment. It says that we will insure the title to so and so, which is usually someone who is buying the property under a contract. If Mr. and Mrs. Jones are buying a piece of property or have a contract to purchase it for say $100,000, the title commitment would read, “To John Jones and Mary Jones.” It would show that it would be issued for $100,000. It would commit to issue a title insurance policy free of any particular liens against the property. The first page would indicate the amount and then they would show the legal description. The second page is called Schedule B1 on the commitment. It would outline what would be necessary in order to have the title insurance issued. First off it would say that you got to pay the money. Secondly it’s going to say that you need a deed from the present owner to whoever is purchasing it, to Mr. and Mrs. Jones.

Then the other requirements may require that the existing mortgage be paid off out of the, from the closing before they could issue a title policy. It would also say that we may need to give them an [Estopple 00:02:26], or a statement from a Homeowner’s Association or Associations to see if there’s any unpaid Association dues. If there’s any judgments outstanding they would say that these judgments need to be paid for us to issue a title policy. If the property is in the name of a descendant, the title commitment under Schedule B1 would call for a probate proceeding. Schedule B1 are all the requirements that must be fulfilled in order to issue a title policy.

Then you turn to Schedule B2. That’s a schedule of encumbrances that you will receive the policy, such as various restrictive covenants, particularly if you’re buying a condominium and will have the entire condominium. If you’re buying through a Homeowner’s Association it’ll say what the restrictive covenants are and reference them as where they’re recorded in the public records. Usually a closing, as far as a residential closing, where someone’s buying a house, they’ll delete what they call Tute Standard Exceptions. One is rights of claims of parties in possession because the buyers will be getting the keys at closing. The other one that is deleted often is if you delete the unrecorded liens. In Florida, anybody provides material or services to a particular property has 90 days in which to file their claim of lien. It will insure against unrecorded liens that have occurred in the last 90 days.

Once all the requirements have been satisfied and everything’s been signed, the title company then takes the money from the closing that they get from the buyer, then they pay off the mortgages, they pay whatever they need to to satisfy all the requirements under schedule B1 of the title insurance. Then they will issue the title policy. The title policy then insures the buyer, Mr. and Mrs. Jones who purchased the property, that they have what they call “marketable title” to the property, meaning that there are no outstanding liens against the property or there’s no encumbrances, or easements, or restrictions unless they were shown in the schedule which was referred to in the commitment as Schedule B2.

What does a title company do? A title company issues title insurance. They usually also, are usually the closing agent, meaning that they’re the ones that handle the money and prepare all the documents necessary in order to have the title insured. They’re authorized to do that. I’m a title agent. I’m an attorney title agent, so I issue title insurance. If you come to my closing in my office, and I try to be at the closings, I try and explain any of the exceptions, or try and talk to you about your title insurance policy and show exactly what the exceptions are such as restrictive covenants. If you’re selling your real estate, and I compete with other title companies as far as price is concerned, and believe that we provide good quality service, timely service, and you also get the benefit of me throwing [kabitzing 00:06:10] as far as what the law is, or explaining certain things at the closing table.

If you sell your property and you need a title agent, or you want me to close a transaction, you merely need to tell your realtor that you would like to see how much it would cost for the Law Office of Waller and Mitchell to be your title insurance agent, and close your transaction. You don’t necessarily need to pay me an attorney fee, but I’ll just close the transaction as a title agent and closing agent for the title insurance premium. When you sell your house, well give me a call at 727-847-2288 and I’ll be glad to write the title insurance for you, and also answer any questions. Thank you for calling.

Read more
No Comments

Do Contractors Have An Obligation To Complete Their Work Within A Certain Time Period?

 

Video Summary


Do contractors have a liability or an obligation to complete their work within a certain time period? We direct you to whatever contract you entered into with the contractor. Most contracts are fairly open-ended … although, the answer to it is, the contract would dictate it. They cannot just drag it on forever. If that’s the case, where they’re not doing it in a timely fashion, or, you haven’t seen them, or they haven’t showed up for 30 days, it could be considered that they have abandoned the job.

You can then notify them that they have a certain amount of time in which to complete the job, or else you’re going to terminate their services and retain the services of someone else to complete the job. That way you would hold them responsible for whatever the cost would be that you had to pay over and above the contract amount. When they’re supposed to perform is dictated by a contract.

My experience has been it’s very difficult to get a contractor to agree to a certain time period, and have them put in there … or, furthermore, even if you do have a time period, or a time when they’re supposed to have it done subject to rain delays and acts of God or hurricanes, or whatever, there’s no penalty if they run over. You don’t want to have to fire them or whatever as far as that’s concerned so you almost get in a desperate situation.

In my career it’s been very few times that I’ve been able to put in a contract between an individual and a contractor that there’s penalty, of, say, $100 a day for every day that they don’t have the job done, that they agree to pay. I have had some contractors say, “Well, if … I’ll tell you what. We’ll give you that penalty clause in there that’s $100 day for every day past this, but, you also have to give us a bonus for $100 day for every day that we get it done before the deadline.”

It’s very difficult to negotiate a penalty. Most contracts should or do have some sort of time period. If you’re dealing with work orders or something, or an insurance company is hiring the contractor, that’s difficult, because you can’t, then, terminate them or fire them because you’re not the one that contracted them to do the services.

If they’ve abandoned the job or haven’t shown up for thirty days, I think that you probably have reason to demand or terminate their contract for … abandoned the job and hire a new contractor. Of course there’s economics of all involved with that. It may cost you more to get it done, and the contractor may not be solvent, or, you may not want to spend the money on a lawyer to try and recover the additional costs.

If you have some questions, I don’t know that I can answer them for you, as far as when do they have to have it done? Give me a call at 727-847-2288.

Read more
No Comments

What Is The Difference Between A Guardianship And An Adoption?

 

Video Summary


What is the difference between a guardianship and an adoption? Well, there are completely different procedures involved. Let’s talk about an adoption. An adoption usually involves a minor child and that means whenever you adopt someone, that they become like your natural born child and you have to give notice to the natural parents or get their consent, as far as that’s concerned. There is basically a boorish child services that provide a range for adoptions particularly when the parental rights had been terminated through a court proceeding.

An adoption is where you cut off all the rights of the natural person or natural parents and then the child becomes like the natural children of whoever the people are or the persons who adopt them. They no longer inherit or have a right to inherit from their natural parents. Their natural parents have no right whatsoever. All their parental rights have been terminated. That doesn’t mean that the adopting parents may not in particularly if they know about it or if it’s a family adoption that they may not still keep them, let them see their natural born child or contact, but that’s done on a case by case basis. That’s where you completely terminate the parental rights of someone.

Turning to a guardianship, in a guardianship, just breakdown the word as far as guard or guardian, that means someone that’s put in the position to protect a particular person. Guardianship’s can be for minors, since they are not of age and don’t have the ability to contract, particularly if the minor has inherited a lot of money or has received a lot of money.

The guardian, number one doesn’t adopt this person and then become their child, but they are charged with possibly making decisions as far as what they call a ward or the person who is subject to the guardianship and make decisions about their welfare. You know, what kind of medical treatment and make decisions if it’s a child, as far as schooling, [inaudible 02:48], and basically raising the child. If it’s an elderly person, as far as where they would stay, whether they need to be have assisted living, whether they need to be in a skilled nursing facility. You have the guardian of the person who makes those decisions.

As with the minor, you also have the guarding of property. The guarding of property is a person who’s responsible for the money that the minor is … If you have a minor who has money or if you have an older person who has become incapacitated, they are charged with taking care of that persons money. They must have an accounting. Guardianship’s are supervised by the court, so that you have to prepare an annual accounting. With older folks, you have to file a plan as far as where they’re going to be. You have to have all the expenses and everything else approved by the court. It’s not an inexpensive proceeding and it’s usually followed by an incompetency proceeding.

A guardianship has to do with taking care of somebody, both as the guardian of the person and also as the guardian of the property, taking care of their money and accounting for it, and using it for the person or who’s called the ward. Usually requires they bond so that if you don’t use it, they have someone to look to. Guardianship’s and adoptions are completely different procedures. The adoptions are usually with minor children whenever the parental rights have been discontinued or there’s some family matter where they want to have the child be adopted by some other member of the family.

If you have any questions, we don’t handle adoptions here, however, we do handle guardianship’s. If you have some questions about guardianship’s, you can give us a call. It’s 727-847-2288.

Read more
No Comments