Tuesday, February 07, 2012 Mortgage Relief Deal Under Discussion
Mortgage Relief Deal Under Discussion
If Florida chooses to opt in, there could be some guaranteed relief ahead for Florida homeowners struggling to pay their mortgage. Check out the article by clicking here.
Tuesday, February 07, 2012 Top 3 Real Estate Tips for Small Businesses
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Top 3 Real Estate Tips for Small Businesses
For the vast majority of small businesses, the company’s first and only real estate transaction is entering into a lease for commercial space. Whether you are considering office, manufacturing or retail space, the following three tips will help you navigate the negotiation process so you can avoid any unpleasant surprises or costly mistakes.
“Base Rent” is Not the Only Rent You Will Pay
Most prospective tenants focus their negotiation efforts on the “base rent,” the fixed monthly amount you will pay under the lease agreement. You may have negotiated a terrific deal on the base rent, but the transaction may not be the best value once other charges are factored in. For example, the majority of commercial lease agreements are “triple net,” meaning that the tenant also must pay for insurance, taxes and other operating expenses. When negotiating “triple net,” ensure you aren’t being charged for expenses that do not benefit your space, and that you are paying an amount that is in proportion to the space you utilize in the building. Another provision to watch for is “percentage rent,” in which a tenant pays a percentage of revenue in excess of a specific amount. This may not be a bad thing, as it provides the landlord with an incentive to help ensure your company is successful.
There’s No Such Thing as a “Form Lease”
Most commercial property owners and managers offer prospective tenants a pre-printed lease containing your name and various terms. They often present these documents and adamantly explain that it is the landlord’s “typical form lease.” This, however, does not mean you cannot negotiate. Review every provision in the agreement, bearing in mind that all terms are open for discussion and negotiation. Pay particular attention to the specific needs of your business that are not addressed in the “form lease.”
Note the Notice Requirements
Your lease agreement may contain many provisions that require you to send notification to the landlord under various circumstances. For example, if you wish to renew or terminate your lease at the end of the term, you will likely owe a notice to the landlord to that effect, and it may be due much earlier than you think – sometimes up to a year or more. Prepare a summary of the key notice requirements contained in your lease agreement, along with the due dates, and add key dates to your calendar to ensure you comply with all notice requirements and do not forfeit any rights under your lease agreement.
Saturday, October 29, 2011 Top 10 Life Insurance Mistakes
Top 10 Life Insurance Mistakes
Here is a list of the top ten mistakes people make with regard to their life insurance policies:
1. The Insured’s Estate Has Been Named Beneficiary. This would require a probate proceeding, when one of the goals of life insurance is to avoid the hassle of probate. With named beneficiaries (i.e., not the estate of the insured), the life insurance proceeds pass outside probate.
2. The Policy Has No Named Contingent Beneficiaries. If the primary beneficiary predeceases the insured, the next default beneficiary is usually the estate – and that means probate is necessary.
3. Minors Or Other Impaired Persons Have Been Named Beneficiaries. If young children are in line for life insurance money, it usually means a court has to supervise the process and administration of the funds. That can be avoided with proper planning. If someone is receiving Social Security Supplemental Income benefits (SSI), the benefits will cease if life insurance proceeds are payable directly to him or her. Proper planning can avoid such an unfortunate result.
4. The Beneficiary Language Is Wrong Or Unclear. Estate planning attorneys run into circumstances all the time where the beneficiary designation does not match the insured’s intentions.
5. Family Needs Are Not Adequately Addressed. It used to be that a million dollar insurance policy felt like it was enough to take care of family needs in the event of the breadwinner’s death. For many, that is not nearly enough anymore.
6. The Wrong Ownership Was Chosen For The Problem To Be Solved. Most people choose to own their life insurance policies personally. That can be a mistake in certain business situations, or where there are family estate tax issues.
7. The Ownership Chosen Creates An Income Tax Problem. Sometimes having a policy owned by a third party can create an unintended income tax problem.
8. Section 101(J) Requirements Have Been Neglected For A Business Policy. In 2006, Congress created new rules for business-related life policies. Careful guidance is needed to be sure business policies are structured properly.
9. Buy-Sell Funding Policies Have Not Been Properly Reviewed. Business owners sometimes use life insurance to help make sure the business will continue after an owner’s death. Even where a plan has been put in place, failure to update it can have disastrous consequences for the owners and their families.
10. Policies Have Not Been Reviewed After Divorce (Or Other Life Event). People sometimes forget to remove an ex-spouse as beneficiary under a life insurance policy. They also sometimes forget that their divorce papers require them to use existing life insurance policies in certain ways.
If you have not done so recently, we strongly recommend that you review your existing life insurance policies with your insurance representative, and/or call our office at (813) 265-0004 and we will be happy to set up an appointment to review your policies for one or more of these mistakes.
Sunday, October 02, 2011 New Florida Power of Attorney Law
Effective October 1st, 2011, there is a new Power of Attorney statute in Florida. There are significant and important changes. The “durable family power of attorney” is a vital part of your estate planning arsenal, so be sure you consult with an attorney who is aware of these changes in the law. The new law is summarized below.
The new law conforms Florida’s power of attorney law under Chapter 709, Florida Statutes, to the Uniform Power of Attorney Act adopted by the National Conference of Commissioners on Uniform State Laws, with some modifications to achieve greater consistency among state laws.
The revised power of attorney law applies only to powers of attorney created by an individual. Powers of attorney validly executed under Florida law before October 1, 2011 will remain valid. If the power of attorney is durable (a power of attorney that is not terminated by the principal’s incapacity) or springing (a power of attorney that does not take effect until the principal loses capacity), it will remain durable or springing under the new law. To be effective in Florida, powers created on or after October 1, 2011 must be exercisable as of the time they are executed. The meaning and effectiveness of a power of attorney are governed by ch. 709, part II, F.S. A power of attorney executed in another state that does not comply with the execution requirement of this part (ch. 709, part II, F.S.) is valid in Florida only if the execution of the power of attorney complied with the law of the state of execution.
Powers of attorney that are executed after October 1, 2011 may not create springing powers, with an exception for military powers. Qualified agents as defined in the bill are entitled to reasonable compensation. The revised power of attorney law provides requirements for written notice with special notice for financial institutions, and special rules for banking and investment transactions; provides default duties for the agent; creates co-agents and successor agents; prohibits blanket or default powers granted to an agent; prescribes requirements for the rejection by a third person of a power of attorney; prescribes requirements for an agent’s liability under a power of attorney; and provides grounds for judicial relief and dealing with conflicts of interest.
Let us know if we can help with your estate plan or planning for your parent(s) or loved one.
Tuesday, September 27, 2011 Is ignorance of the law an excuse?
Should the criminal KNOW he or she is breaking the law and intend to do so? Or is the act of breaking the law what counts? This is an old debate in the law, but this study shows that “mens rea” (criminal intent) is increasingly not a factor.
As Federal Crime List Grows, Threshold of Guilt Declines
Monday, September 26, 2011 Know Your Rights About Medical Records
Did you know that you have the right to a copy of all of your medical records? Read about it here.
Saturday, September 17, 2011 An Attorney’s Tips on Preventing Identity Theft
A corporate attorney sent the following out to the employees in his company:
1. When you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the ‘For’ line. Instead, just put the last four numbers. The credit card company knows the rest of the number, and anyone who might be handling your check as it passes through all the check processing channels won’t have access to it.
2. Put your work phone # on your checks instead of your home phone. If you have a P.O. Box use that instead of your home address. If you do not have a P.O. Box, use your work address. Never have your SS# printed on your checks. You can add it if it is necessary, but if you have it printed anyone can get it.
3. Place the contents of your wallet on a photocopy machine. Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel. Keep the photocopy in a safe place.
4. Carry a photocopy of your passport when you travel either here or abroad.
We’ve all heard horror stories about fraud that’s committed on us in stealing a name, address, Social Security number, credit cards.
The corporate attorney who sent his employees the memo was motivated because he had recently had his wallet stolen. Within a week, the thieves ordered an expensive monthly cell phone package, applied for a VISA credit card, had a credit line approved to buy a Gateway computer, received a PIN number from DMV to change his driving record information online, and more.
Here is some critical information to limit the damage in case this happens to you or someone you know:
5. We have been told we should cancel our credit cards immediately. But the key is having the toll free numbers and your card
numbers handy so you know whom to call. Keep those where you can find them.
6. File a police report immediately in the jurisdiction where your credit cards, etc., were stolen. This proves to credit providers you were diligent, and this is a first step toward an investigation (if there ever is one).
But here’s what is perhaps most important of all:
7. Call the 3 national credit reporting organizations immediately to place a fraud alert on your name and also call the Social Security fraud line number. I had never heard of doing that until advised by a bank that called to tell me an application for credit was made over the internet in my name.
The alert means any company that checks your credit knows your information was stolen, and they have to contact you by phone to authorize new credit.
By the time the corporate attorney was advised to do this, almost two weeks after the theft, all the damage had been done. There are records of all the credit checks initiated by the thieves’ purchases, none of which the attorney knew about before placing the alert. Since then, no additional damage has been done, and the thieves threw his wallet away (someone turned it in). It seems to have stopped them dead in their tracks.
Now, here are the numbers you always need to contact about your wallet, if it has been stolen:
1.) Equifax: 1-800-525-6285
2.) Experian (formerly TRW): 1-888-397-3742
3.) Trans Union : 1-800-680 7289
4.) Social Security Administration (fraud line): 1-800-269-0271
Please share these tips with everyone you know so we can all prevent identity theft or at least know which steps to take to resolve identity theft.
Saturday, August 14, 2010 Bad Facts Make for Bad Law
The Florida Supreme Court recently issued an opinion in the Olmstead case that does not bode well for small business owners in Florida. The result in the case was appropriate based on the circumstances – a couple of small business owners scammed thousands of consumers out of millions of dollars. But the rule of law that emerges means that single member owners of limited liability companies are now exposed to the claims of creditors, whereas they were not so exposed prior to this ruling.
Our firm has for years recommended the “single-member LLC” as a preferred vehicle for small business owners because of the many benefits afforded by this form of entity. However, the Olmstead decision now casts a dark shadow on this choice of entity. Fortunately, there are alternatives available with proper planning. If you or someone you know has a single member (or even a few member) Florida limited liability company, we recommend that you contact us for an appointment to discuss alternatives, or contact another experienced practitioner in this area of the law.
FURTHER READING ON THIS TOPIC:
The Olmstead opinion
Tampa Tribune article
Friday, August 06, 2010 Update on the Estate Tax
What’s going on with Federal Taxes? Here’s a recent article that will get you up to speed, with all the political angles included!
Tuesday, August 03, 2010 Florida Statute Helps with Estate Plans in 2010
On May 27, 2010, Governor Charlie Christ signed new Florida Statute 733.1051 into law, which, among other “fixes” to the estate planning laws in Florida, addresses a potential problem in the estate plans of Floridians created by the fact that there is no federal estate tax in effect in 2010. The law is retroactive back to January 1, 2010, and provides a judicial option for the beneficiaries of Floridians’ estates who die in 2010 and have an estate plan that relies on federal estate tax laws to fund AB Trusts or other types of estate plans. Under the new law, the beneficiaries may seek a judicial modification of the estate plan for the deceased Florida resident. The law does not apply to estate plans that clearly anticipate no federal estate tax in 2010, and will become null and void at the earlier of such time in 2010 as the federal estate tax is reinstated or January 1, 2011.
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