How Does a Lady Bird Deed Help My Heirs Avoid Probate?
Video Summary
How does a lady bird deed help my heirs avoid probate?
Well first let’s define what a lady bird deed is. That is a name that an author of a treatise gave to a life estate deed. A life estate deed means that you convey your property to your children or to anyone. However, you reserve to yourself a life estate, meaning that you own the property, or you get to use the property during your lifetime.
Now what is known as a lady bird deed has additional powers besides being able to use the property during your lifetime. Those powers include, which are reserved to you with your life estate is the ability to sell the property without the joinder of these remaindermen. So that is the definition of a lady bird deed when we’re talking about it.
So how does it avoid any kind of probate when a person passes away? Well, you signed the deed and you conveyed it to whomever, your children or your heirs and reserved a life estate. And you have certain rights to convey or transfer the property during your lifetime. But if you do not sell or convey it during your lifetime upon your death all they need is a death certificate and they will own the property, “they” being whomever you have conveyed the property to. And the deed, they will own it, and all they need to do is record the death certificate and they will automatically own the property.
So that’s how your heirs will avoid any probate proceeding if you sign a lady bird deed conveying the property to them during your lifetime.
If you would like to discuss this further well give me a call at 727-847-2288. Thank you.
When I Buy a Business, Am I Buying the Debts?
Video Summary
When I buy a business am I buying the debts? Well that all depends on whether or not you are buying the business entity, such as the stock in a corporation or if you are buying the assets. Most of the business sales contracts that I review are a sale of the business assets, so you are not agreeing to pay any of the debts. You simply contract to buy the good will, which is the name of the business, the phone number, the trade name, as well as the business assets; such as the fixtures, equipment and also inventory. Usually with the accounts receivable, if you have those in a business, stay with the seller and so it’s up to him to collect those monies. In an ordinary business transaction you do not assume the debts of the seller.
That is all specified in a contract for the sale and purchase of a business. One of the big assets of a business is a lease, so you certainly need to be sure that you assume and the lease is assigned to you at the time of closing so you do not wind up with a business and not have the lease put into your name. So you would be assuming that obligation.
You also may be assuming obligations if certain equipment is financed; that’s another obligation you would have. However, as far as vendors are concerned, such as your suppliers, then you are not assuming that debt. Although it is a good idea to verify that the vendors will continue to supply you with the product or whatever it is; even if the former owner of the property failed to pay them. That would be an impact on you, but you do not have to pay the debts of the former owner when you only buy the assets.
The utilities are something else that you need to be careful of; also sales tax. You need to make sure that there is no outstanding sales tax that could be a lien against the equipment, as well as tangible property tax.
Now you do assume all the debts of the business if you simply purchase the stock in a corporation. Then you get all the assets and all the liabilities. You need to be careful when you sign the contract to address all these issues.
So if you would like to have me represent you or prepare a contract for the sale of a business well give me a call at 727-847-2288.
- Published in LLC's and Corporations, Videos
Does a Final Judgement of Divorce Convey Real Property?
Video Summary
Does a final judgment of divorce convey real property? It can convey real property; however you have to have express language that the judgment serves as a conveyance. In particular when we have these final judgments that are done by the parties rarely do they provide for the judgment to serve as a conveyance of the property to the one particular spouse who’s supposed to receive it.
Some of the final judgments I see prepared by divorce counsel they say that the other party is to execute a deed conveying the real property. So the proper language that needs to be incorporated in a final judgment of a divorce is that the judgment serves as a conveyance to real property from one spouse to the other. So if you want the final judgment to convey real property to one spouse, to the other you need to pay particular attention to the wording in the final judgment.
There is language that can be used in deeds whereby a spouse conveys their interest to the other spouse. If there’s a mortgage on the property ordinarily they would require documentary stamps. However, if it is their homestead property and it is being conveyed pursuant to a marital settlement agreement and divorce proceeding then the Department of Revenue does not require the documentary stamp be placed on the conveyance.
If, however, we have more property than just the home then other property that is conveyed from one spouse to the other, pursuant to a marital settlement agreement, would require documentary stamps on the transfer based upon one-half of the unpaid balance of the mortgage that encumbers it. If there’s no mortgage on the property then there would not be any documentary stamps.
So if you are getting divorced and you want the final judgment of divorce to convey the real property from one spouse to the other you need to pay particular attention to the judgment that is entered. And it is a great idea to provide for that so that there is not a problem with judgments attaching to the spouse who is supposed to convey the property, their interest after their divorced or preexisting judgments.
So if you need some help with that well give me a call at 727-847-2288.
- Published in Real Estate, Videos
Can I Omit a Beneficiary from My Will?
Video Summary
Can I omit a beneficiary from my will? Yes you may omit anyone you like from your will, except for a spouse. If you omit a spouse from your will, well they have a right to take what they call an elective share and they are entitled to 30 percent of whatever you have under your will as well as trusts. So you don’t want to omit your spouse unless you a prenuptial agreement or a marital settlement agreement wherein the spouse is waiving the interest in the property.
Another time that you have a problem is as far as omitting or conveying property to whomever you would like is if you have your homestead property and at the time you pass away you are married or have minor children, the Florida statute and Florida constitution restrict you who can leave it to. If you are survived by a spouse well then you can only leave it to the spouse; you can’t provide that she has a life estate and it goes to somebody else after her death; you can leave it outright to her. So it’s an invalid devise, so with homestead property.
If you are survived by minor children then you cannot devise the property to anyone. If you have a spouse also she’s entitled to a life estate or she makes an election to a one-half interest and the children are entitled to the other one-half. And that is all the children, not just the minor children.
So usually you can omit any beneficiary, children, whomever you want, adult children, that is, whoever you want in your will. However, if you are survived by a spouse you can’t omit your spouse unless you have a prenuptial agreement without her having rights to take her share of the estate. So if you would like to prepare a will I’d be happy to meet with you.
My phone number is 727-847-2288.
What Are the Benefits of a Health Care Savings Account?
Video Summary
What are the benefits of a health care savings account? Well this question is probably better asked to your human resources person where you are employed. It’s an alternative to providing health insurance or can be a blended arrangement whereby your employer puts a certain amount of money into your account every month. Therefore, you can use that money for any health care needs you want.
After a certain amount, which is usually a fairly high deductible, then your health insurance would kick in as far as that’s concerned. But you can use this for dental or prescription drugs, anything you’d like as far as your discretionary.
It’s particularly beneficial to people who are very healthy and don’t go to see the doctor very often, other than an occasional physical and don’t get sick, because the money builds up in that account. And so you can use it for cosmetic surgery or dental work or whatever you would like. It’s not particularly beneficial to people who have prescription drugs that are particularly expensive; usually the money that’s deposited isn’t sufficient to cover the amount that the employee has to pay.
So it’s something that your employer does for you or to you in conjunction with providing health insurance for you. So you probably don’t need to call and talk to me about this but that’s my take on a health care savings account. You probably need to talk to the human resources department where you are employed and ask them to give you more information about it. And it’s an alternative to your medical insurance or deductible.
So good luck with that! You can always call me about your legal needs. It’s 727-847-2288.
- Published in Estate Planning, Videos