Advance Directives and Why You Need One

You've probably heard of advance directives, but are unsure of what they actually do and how they can help you. The truth is that these are a great way to plan ahead for your future, but they do require a bit of work upfront first. This is a good thing though, since it will save you time and energy later. It's better to have the work done before you actually need to do it so in a time of emergency everything is already sorted out beforehand.

The first thing to be aware of is the medical power of attorney, also called a healthcare proxy. This person is lawfully able to make medical decisions for you in the event that you are unable to. This includes when you are suffering from dementia and when you are not conscious. This is a big shoe to fit into, so to speak, so it is important that you select someone that you trust completely. Sometimes, you may want to select a backup healthcare proxy in the event that something happens to your original choice for POA. This doesn't happen often, but when it does you will want to be prepared. So having another person you trust on deck allows you to not worry about constantly updating your POA paperwork.

You also need to know that your POA will not be able to make decisions that override your decisions. This is to benefit you, of course. If you were to wake up out of a coma, you would then be able to once again make your own decisions and not have to worry about your POA making a decision that you do not want them to.

Some states do not actually honor other states' advance directives. Some do. So it will require a little research, either on your own or with your attorney, to make sure that if you are moving from New York to California, for example, that your advance directive will hold up under the scrutiny of the legal system. The easiest solution to this problem is to have an advance directive made up for each state that you will be residing in. So if you do move into a California retirement home, make sure that you set up an advance directive as soon as possible once you are a resident there.

A final consideration for the State of California is that if you are in a skilled nursing facility and want to set up an advance directive, you must have a patient advocate sign the paperwork as a witness. Again, this is to protect you and your rights.

Basically, the State of California wants to ensure that the patient is of sound mind and that they are not being taken advantage of. This is why an advocate must sign-they look out for their patients' best interests.

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How to Choose the Right Business Structure

By reviewing the pros and cons of these four common business structures, you can determine which one will benefit you most.

Defining Legal Terms - By The People

Rene goes over what types of questions they can help answer at By The People. A legal document preparation company.

See more at http://www.bythepeopleca.com

Criminal Records: Do You Qualify for Expungement?

Expungement is not the same thing as sealing. The terms are very close in meaning with subtle differences. However, an expungement means that the criminal record is erased as if they crime never happened. Sealing simply hides the record and make it no longer public information. This is important because each state has different laws that apply to each of these terms.

Is A QDRO Always Required In A Divorce?

For many divorcing couples, retirement plans make up the majority of the marital estate. While some couples can agree to simply "each keep their own" in the asset division, for many other spouses a division of one of the accounts is necessary to ensure a fair distribution of marital assets.

When division of a retirement asset is required in a divorce, many people are unsure how to proceed. They may have heard the term Qualified Domestic Relations Order (QDRO), but have no idea if or how it applies to their situation. This lack of knowledge often leads to errors that can end up costing them more money in the long run.

This is why it is important to understand early on what type of retirement accounts exist. Once you know what type of accounts are in play, you can assess whether a QDRO - or a different, similar order - is required. You will also better understand the most effective way to distribute the assets in the final property division settlement.

Individual Retirement Account (IRA) - Since IRAs are not subject to ERISA, a QDRO is not required to divide this type of account. Pursuant to 26 U.S.C.A. §408(d)(6), a transfer from an IRA can be made to a spouse or former pursuant to a decree of divorce or a written instrument incident to a divorce. This written instrument can be either a separation agreement or divorce decree. In most cases, a letter of instruction and copy of the Final Judgment/Settlement Agreement should be enough to transfer money from the IRA.

Non-Qualified Plans - There are numerous types of retirement assets that cannot be divided in a divorce. Non-qualified plans fall outside the purview of ERISA and are not subject to division via QDRO (or usually any other means). These plans usually have names that include words like Supplemental, Excess Benefit, SERP or even Non-Qualified, and are offered to key, high-ranking employees as a means of providing additional retirement benefits beyond those allowed under ERISA. The language of many of these plans specifically preclude payments to anyone other than the employee, and no court order can change this.

Non-ERISA and Government Retirement Plans - ERISA specifically excludes any federal government retirement plans. While these accounts are divisible, it is done with a document other than a true QDRO. While the name QDRO may be used generically to refer to any order related to retirement account division, government plans each have their own mechanisms for division and it is important to understand each. You can learn more about these plans at www.tsp.gov and www.opm.gov. Rules governing state and local government plans vary by state, so it is important to familiarize yourself with the rules specific to your jurisdiction.

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Personal Finance Tips - How to Set Up a Financial Power of Attorney To Help Handle Your Affairs

If you have a good deal of money or assets it is probably a good idea that when you are planning your estate that you also consider setting up a financial power of attorney. What this is, is a document that will give another person the legal power or right to handle all of your financial affairs. To do this you don't even have to go to court. You just need to be of sound mind when you set up this type of an arrangement.

You being the principal in this document will then choose someone called the agent who will handle your affairs should there come a time in which for whatever reason, you can't. They can also be asked to handle your affairs if you are going to be gone and won't be able to take care of your affairs while you are away.

When you sit down to figure this out you are going to need to decide upon just how much authority that you are going to allow the agent to have. You may decide to give them general powers to handle all of it or you may just give him power to just take care of certain kinds of transactions like your stocks and bonds. They can even be asked to take care of financial issues while you are away on an extended vacation if need be.

You also need to figure out just how long you want their authority to last. It can be durable or it can be nondurable. A nondurable agent will lose their authority the minute you should become incapacitated in any way. So if you want to have them to continue on should you not be able to take care of things if you were incapacitated then you would want to make sure that you made them a durable agent.

You also need to figure out when the power of attorney will take effect. Understand that it will go into effect immediately as soon as the document is signed unless you set down a date in the document when it will take effect. Some documents with durable agents will not kick in until you might be declared incompetent or incapacitated by a doctor. You will also need to make sure there is a stipulation in the document that dictates when the power of attorney is ended, for instance you might stipulate that once a doctor says you are going to be OK and will be recovering, then the power of the agent will end.

Once you have your document written up you will need to have it signed by all parties involved and most states will require that you have the document notarized in front of two witnesses. If you don't want to do all of this yourself, you can always pay an attorney to write up your document for you.

When you decide to write up this kind of a document, the person that you pick needs to be someone you really believe that you know and trust well enough to honestly take care of your affairs for you whenever you might not be able to. Also remember that anything is possible so you might want to also name a second agent in case something should happen to the first one. Also make sure that if you would like to pay this person for performing their agent duties to state this in your document, otherwise they don't get paid for doing this.

Once you have your document written up and signed you should give a copy of it to your agent, a copy for yourself and you should also make sure that any agencies or businesses you do business with have copies as well and that would be banks, brokers, IRS or SSI.

Note: You can revoke your power of attorney at any time during your arrangement with them as long as you are mentally stable and you make sure that you send them a letter in writing stating you are going to revoke the document.

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Executor Of Will, Probate And Much More-You Need To Be Attentive About All These Legal Terms

There are many legal terms that are known to us, but only by name. We do not understand the proper meaning of them. The reason may be; everywhere they are explained in a hard legal language. In the lack of this knowledge one can struck into drastic situations. In today's world forgery and fraud related crimes cases are increasing like nothing. To avoid them we have to be attentive about our property and belongings. The money, assets and property belong to us and we have to take care of them. By understanding these terms you are giving value to your property. And, I will feel happy if I can help you in understanding these terms. If you really feel it difficult to understand these terms in a legal way, then here, I'm interested to explain all these terms in a very simple and common language.

Let's start with "Will".

-Will: You must be aware that will is a legal document. In it the distribution of the property of a person is explained. The distribution of all belongings is done according to owner's wish. The age category for applying a will is 18 or above 18 years.

-Testament: A testament is also a legal document. It also includes the distribution of owner's property. And, it also follows the owner's wish.

Then what makes a difference?

A "will" is a document which includes the distribution of owner's real property. Whereas, a "testament" is a document which includes the distribution of owner's personal property.

You might not understand that, what is the difference between a real property and a personal property?

There are two categories in property. One is Real and the other is Personal. A real property can be replaced by the term real estate. That means land or the things permanently attached with land that can be a house or a building, the things under the land, anything which can't be separated from the land. And, the personal property can be of two types. One is Tangible and the other is Intangible. Tangible personal property is something you can touch. And, it includes jewelry, home accessories like: sofa, bed, locker and other items. The intangible personal property is a non-materialistic property. That includes patents, copyrights, bonds and stocks etc.

-Testator: The owner of the property and the person who is going to sign the will and testament is called testator. He must be mentally stable at the time of creating and signing the will and testament. He must be at least 18 years old at the time of signing the will and testament.

-Beneficiaries: The people who are going to be the owners of the testator's real and personal property are called the beneficiaries. A beneficiary has to be 18 or above 18 years. If a beneficiary is less than 18 years old then he and his part of property will be under the care of a care taker.

-Executor: An Executor is a person who is responsible for the distribution of the property. This distribution must be according to the will and testament. The person who is going to be the executor can also refuse to be so. And, if he accepts it then the court dispatches a document which is called "letters testamentary". It is issued to legally allow the person to be the executor.

Note: Don't get confused between the executor of the will and the beneficiaries. In a simple language, an executor is the care taker of will and the beneficiaries are the (would be) owner of the property.

-Probate: It is a legal process, which is held at the probate courts. Some matters are cleared in this process, like who is going to be the executor of the will, who are going to be the legal beneficiaries etc.

Keep these terms in mind. Don't get cheated and do value your property, this is really very important.

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Incorporation - Is It Right For My Business?

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

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

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

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

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Understanding a Power of Attorney for Finances

Carolyn Rosenblatt discusses a Power of Attorney for Finances. This important document may be necessary to help care for your elderly parents. It can prevent financial elder abuse.

What Is Estate Planning and Is It Useful?

Estate planning creates a plan for distribution of your assets after you die. Most of us are familiar with a common product of estate planning: the will. Featured in TV shows and in everyday conversations, sometimes, the discussion surrounding this popular topic is not favorable.

We've seen people contesting wills, challenging their family members, feeling cheated by the administrators of wills and by the law and we've seen them arguing through lawyers about what wills mean how they should be executed. Other forms of estate planning exist to reduce the amount of conflict surrounding decisions.

Health care decisions can be included in estate planning; a health care proxy exists so that a chosen person can act out the desires of an incapacitated person still under medical care.

When it comes to the distribution of their wealth and medical decisions, multiple measures exist to enable the dead and the severely injured a means of executing their own desires. However, even in the case where no formal plans are made, heirs do receive some forethought in terms of the law.

The law of intestacy communicates that even if no measures are taken to distribute assets by a deceased party, those assets will still go to the deceased person's heirs. The law of intestacy has the most staying power in situations where it is least likely to be challenged by those wanting more. For insurance, according to Attorney Sean W. Scott of Virtual Law Office, this law works with a small number of assets and a with a small number of heirs.

In each of these cases, one can imagine there would be less conflict involved. With less to fight over, less fights can ensue. The same is likely true with less beneficiaries; as heirs likely know one another well when smaller in number, less family tension can arise. Less instances of certain heirs feeling more worthy than others to certain possessions may exist. The likelihood that an individual or set of siblings would usurp others' belongings may be reduced. And general confusion arising from miscommunication and a lack of cemented durable relationships may possibly decrease with a smaller set of heirs. None of these suggestions are set in stone, yet corresponding data would be a more than interesting dinner topic.

Scott emphasizes the financial advantages of estate planning, sharing that taking certain precautions can save money for heirs receiving portions of estates. As lawyers stay on the job, working to settle issues between family members or between the state and family members, their tabs continue running. Evaluating the multiple options may familiarize you with the best decisions for your situation, reducing stress and increasing savings for your loved ones after you pass.

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What Is A Limited Power of Attorney?

A limited power of attorney is used for a very specific purpose that can be clearly defined when a power of attorney is needed. The agent or attorney-in-fact that is appointed does not have control over the person's entire life, only the specified authority granted to them in the form. In these cases, these types of attorneys are usually used for financial transactions and the sales of real estate or personal property such as motor vehicles. Again, this appointment has no control or influence over any other aspect of the person's life. They can only make decisions in a limited area and within limited parameters.

With a limited attorney, it can be given to a person or organization for a specific dealing. The person or organization has the authority to do what is specified in the power of attorney until it expires or it is revoked. The authority granted to the agent or attorney-in-fact can lasts as long as needed or includes a specific date that it will expire. Most anything a person can do themselves can also be done through an agent or attorney-in-fact appointed in a limited power of attorney.

There are a number of reasons that a limited attorney may be used. However, these are not the only reasons and there are many more, as long as they are not disallowed by state law. Some of the power or authority granted to an agent or attorney-in-fact can include:

* Any and all banking transactions

* Safety deposit box entry

* US security transactions

* Debt collections

* Real estate sales

* Real estate management

* Real estate purchases

* Borrowing money

* Management of a business

* Government issues

* Financial decision making

* Gift giving and real estate planning

* Buying and selling vehicles

* Buying and selling of other property, such as jewelry, furniture or electronics

* The signing of paychecks

* Moving dealings

* Shipping and storing items and goods

* Custodial care of children

* Child medical care

A limited power of attorney is used when a person can not take care of the business themselves. For example, when the person will be out of the country, or there are other commitments or health reasons that stop them from being able to complete the task themselves.

Giving someone power of attorney status is different from state to state, however it usually entails filling out a form and signing off on the document. The limited power of attorney form can also be revoked at any time and for any reason as well. The person still has complete control over their life and the status of the limited power of attorney appointment.

Choosing an agent or attorney-in-fact for a limited power of attorney should still be considered carefully to make sure that they will carry out the person's wishes correctly and will act in the best interest of the person.

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Advantages of an LLC | What is an LLC?

Are you wondering what the advantages of an LLC are? Wondering what is an LLC, an S-Corp, Partnership or Sole Proprietorship? Learn why you might consider the advantages of an LLC as your choice for choosing the entity of your company structure.

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

Who Is This Article For?

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

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

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

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

Forms of Business Entities

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

For most new businesses, your options are:

• Sole proprietorship


• Partnership


• Corporation (S-corporation or C-corporation)


• Limited Liability Company

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

Sole Proprietorship

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

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

Advantages of a Sole Proprietorship

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

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


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


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

Disadvantages of a Sole Proprietorship

Here are the disadvantages of operating as a sole proprietorship:

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


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

Partnerships

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

Advantages of a Partnership

Frankly, in most situations there are none.

Disadvantages of a Partnership

Here are the primary disadvantages of a partnership:

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


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


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

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

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

Corporations

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

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

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

Advantages of a Corporation

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

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


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


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

Disadvantages of a Corporation

Here are the main disadvantages of a corporation:

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


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


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


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

Limited Liability Companies (LLCs)

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

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

Advantages of an LLC

• No Personal Liability (See discussion under corporations)


• More Professional Image (see discussion under corporations)


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

Disadvantages of an LLC

• More Complicated to Form (See discussion under corporations)


• Requires Separate Bookkeeping (See discussion under corporations)


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


• Annual Filing Requirements. (See discussion under corporations)

Summary

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

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

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

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

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3 Reasons to Incorporate Your Business

Nina Kaufman on when it makes sense to incorporate your startup company.

How to Form an LLC - A Simple, Straightforward Guide

Forming an LLC (Limited Liability Company) is not as complicated as most people think. While each state has its own unique list of steps and requirements, you'll find that they have the important things in common. So whether you're establishing your LLC in business-friendly Delaware or in rural Wyoming, it's likely that you'll need to go through the following steps if you want to form an LLC:

1. Choose a business name.

It helps to have a short list of possible business names to choose from before you register your LLC. Some of the business names you want may already be taken, or they might violate a trademark. Don't worry too much about this, though. Most states have a searchable database online where you can see if the business name you want is already being used. Also, remember that your business name must be followed with a designator identifying it as an LLC. Some valid ones include "Limited Liability Company", "Limited Company", "Ltd. Liability Co." and the acronym "LLC".

Once you've selected a valid name for your LLC, don't worry about registering it. Usually, it will automatically be registered once you complete the second step.

2. File your Articles of Organization.

Simply put, your LLC's Articles of Organization is a document containing basic business information such as your business name, address, purpose, and the names of the owners. This is often a ready-made form that you can get from your Secretary of State's office. While you're at this step, it also helps to ask them about the fees and requirements involved in setting up an LLC. This will help you plan for the later steps.

As you file your Articles of Organization, you will be required to pay a filing fee. This is usually inexpensive, but if you want the filing to be expedited you will have to pay a few hundred dollars more. Keep in mind that some states have additional fee requirements. For example, LLC owners in California are also asked to pay $800 in business tax on filing, to be repaid annually.

3. Create an Operating Agreement.

Though operating agreements are not required in all states, it's handy to have them from the start - especially if the LLC will be owned by more than one person. Your LLC's operating agreement should contain information about the role of each owner, how profits and losses will be shared, as well as the operating rules and bylaws of the business.

4. Submit other miscellaneous requirements.

Since business laws vary from state to state, there are probably specific requirements you need to submit depending on where you're establishing your LLC and what kind of LLC you have. For example, if you're starting a business that sells and distributes liquor, you'd need a specific liquor license for that. Other requirements may include zoning permits, publishing a classified ad announcing your LLC, and practice permits for specific professions.

As you can see, it's really simple to set up your own LLC. All you need to do is to follow the steps above while being aware of the unique documents and fees required by your state.

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Why You Need a Durable Power of Attorney Now!

Planning for unfortunate events such as serious illness or injury is rarely on anyone's list of favorite pastimes. Sometimes, though, enduring the small discomfort that may accompany preparing for the unexpected will avoid untold anguish on the part of your family and friends. This is certainly the case with the Durable Power of Attorney, an often simple document that becomes so very important if sickness or injury renders you unable to take care of your own affairs.

Power of Attorney Defined

A Power of Attorney is a document in which you (as the "Principal") allow someone else (the "Agent" or "Attorney-in-fact") to act legally on your behalf. The Power of Attorney may be limited to very specific actions that the Agent is authorized to take on your behalf. On the other hand it may give the Agent very broad powers. In either event, the Agent you appoint in the Power of Attorney should be someone that you trust without reservation. That could be a family member, an advisor, a trustworthy friend or a bank or similar institution.

The "Durable" Power of Attorney

The significance of having a "Durable" Power of Attorney is best understood if you know what can happen with the plain old garden variety of Power of Attorney.

If you sign a Power of Attorney that is not "durable," the document remains effective only while you are alive and competent to handle your own affairs. If you become incompetent or die, the Power of Attorney is automatically revoked by law and your Agent is no longer able to act on your behalf. This prevents a Power of Attorney from becoming irrevocable inadvertently, and, until recent times, it was the only way a Power of Attorney could be prepared.

The non-durable Power of Attorney has limited usefulness for family and estate planning purposes, though, because the Power of Attorney is often most needed when you have become incapacitated! That is when you really need someone else that is able to make legal decisions or take other actions on your behalf.

All fifty states now permit the use of a "durable" Power of Attorney that is not revoked simply because the Principal becomes incapacitated or mentally incompetent. This makes the Durable Power of Attorney a far more reliable document, particularly for family and estate planning purposes, since you may now authorize your Agent to act on your behalf even after illness, injury or other cause has rendered you unable to manage your own affairs. Even with a Durable Power of Attorney, however, the Principal's death causes an immediate revocation of the document and termination of the powers that are given to the Agent.

A Matter of Convenience

The Durable Power of Attorney is often used as a matter of convenience.

Suppose, for example, you have your home listed for sale. You have also planned a long awaited trip to visit Aunt Trixie in Deadwood, South Dakota, and you are concerned that an interested buyer may come along while you are on the road. A Durable Power of Attorney would be handy here to appoint someone you trust to act in your absence to negotiate the sale and sign any documents that are needed to make the deal binding.

The Durable Power of Attorney could be prepared so that it is effective only until the date you plan to return from your trip, and it might describe specific terms that your Agent must include in the sale, such as the minimum sale price that is acceptable to you.

A Matter of Protecting Loved Ones

What happens if, from illness, injury or another cause, you become physically or mentally incapacitated to the point that you are no longer able to handle your own legal affairs?

Let's suppose again that while you are incapacitated it becomes necessary to mortgage your home to pay your medical bills. Who will sign the mortgage? Even if your home is jointly owned with your spouse, he cannot obtain a mortgage without your signature.

In those circumstances it would be necessary to request the local probate court to appoint a guardian for you that has the power to handle your legal affairs. In many states, this type of guardian is referred to as a "conservator". Included in the conservator's powers might be the power to borrow money and sign a mortgage on your behalf making it possible to obtain the funds needed to pay the medical bills.

However, you may have heard that it is advantageous to avoid probate whenever possible, particularly if there is a good alternative available. The delay and expense associated with probate proceedings and the fact that they are conducted in the probate court, a public forum, make that good advice in most circumstances. And there is a better alternative than probate, but it requires you to act before the incapacity arises - you need to sign a Durable Power of Attorney.

When used in this estate planning context, the Durable Power of Attorney is generally worded very broadly to give your Agent the power to step into your legal shoes in almost any circumstance. In effect, you tell your Agent "You can do anything I can do."

Now, if you have prepared the Durable Power of Attorney and then become incapacitated, no one has to go through a probate proceeding to appoint a guardian or conservator to act for you - you have already given your Agent the power to do so. As you can see, the Durable Power of Attorney can save precious time and expense in critical situations and avoid having your personal affairs become the subject of a public proceeding.

Appointing a Successor Agent

It is often a good idea to appoint one or more successor Agents. The Agent you appoint in your Durable Power of Attorney may die or for some other reason become unable or unwilling to act as your Agent. In that case, you may be left without someone to act for you when you most need that assistance.

Appointing successors to your first choice of Agent helps insure that someone is always available to handle your affairs. Of course, each successor that you appoint should be someone that has your complete trust.

Revoking a Power of Attorney

As long as you are competent, you have the power to revoke your Durable Power of Attorney. To do so, send written notice to your Agent notifying him or her that the document has been revoked. Once the Agent has notice of your revocation, the Agent may take no further action under the Durable Power of Attorney. However, your revocation will not undo any permissible actions that the Agent has taken prior to being notified that the Power of Attorney has been terminated.

You must also notify third parties with whom your Agent has been dealing that the Durable Power of Attorney has been revoked. For example, if the Agent has been dealing with a stockbroker, you must notify the stockbroker as soon as possible. Do this in writing, as well, and do it immediately. Third parties who do not receive notice of the revocation are entitled to, and probably will, continue to rely on the Durable Power of Attorney.

Making the Durable Power of Attorney Effective upon Incapacity.

It is possible to have a Durable Power of Attorney that only becomes effective if and when you become incapacitated. This document is referred as a "springing" Durable Power of Attorney because it "springs to life" on the occurrence of a future event - your incapacity. The document should include a detailed definition of "disability" to make clear the circumstances in which your Agent may act on your behalf.

Knowing that your Agent is unable to exercise his or her powers until you are actually unable to do so yourself may make using the Durable Power of Attorney more comfortable for you. Unfortunately, even with a good definition of incapacity in the springing Durable Power of Attorney, your Agent may find that third parties are simply not willing to make the judgment that you are indeed disabled. If they are wrong, they may be held liable to you for any damages that you sustain as a result of the error in judgment. You may therefore find the springing document cannot be relied upon in all circumstances.

Don't Procrastinate!

Estate planning is easy to put off. But don't! Advance planning, such as executing a Durable Power of Attorney, may make a horrible circumstance for you and your family just a bit more bearable.

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3 Positive Points of Starting an LLC

When you start a business you will have to sift through the variety of options that are available to you in terms of running a full scale operation. Even if you're the only person working within the framework of a company, you will still need to file paperwork with your state and city governments, and you will need to have a good plan of action. Sure, you could just go into business and wait for the penalties to pile up and then form a legitimate business, or you could look into the proper way to go about starting an LLC. The latter is far better in many people's views, and will definitely save you headaches later on. Consider the following positive points of starting an LLC.

Multiple Owners or One Owner - Whether you have a great deal of investors that want to be part owners or you are alone in the process you will find that an LLC allows you to run your company with a great deal of freedom. Not only that, you will be able to include others in a management or even ownership capacity later on as long as you have an operation document that will showcase your ideas moving forward.

Liability - The best part of starting an LLC is that you will not be liable for a great variety of issues that will come up. For instance, let's assume that you have a client that is hell bent on suing you, and so they sue the business that you own and you have to go to court. If you file your paperwork properly, and you lose the case, you will only be liable for the money that is held within your business, and nothing else! That means if you own a home, a boat, a car or just about anything that is not part of the business proper, you could stand to lose nothing on a personal level. This is a great thing because you can protect your assets and not worry about what some might do to try and get your money.

Taxes - Dealing with taxes can be quite easy because they flow into personal income taxes in many ways. You will find that you will have to deal with your taxes in a manner that is a bit more simple than starting a larger company or a different option in terms of business. While it's not a matter of not paying your fair share, it's really a matter of ease when tax time comes around.

The above 3 positive points when starting an LLC are just 3 items that many find to be great. There are a number of other integral points to consider and each one seems to make the formation of this type of company a bit better than others. Only you can decide what path your business takes, but when it comes to starting something away from the traditional route of 40 hour work weeks, this is definitely one of the more attractive options. You'll find that it's easier than others, and it can bring amazing profits in time.

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Benefits of an LLC For Rental Property Owners

Rental property owners are entrepreneurs. And as entrepreneurs, their primary goal is to maximize profit. One of the most basic steps in maximizing profit is to minimize costs and other liabilities. Recently, the up and coming trend of protecting one's personal assets from the liabilities of a rental business is to set up an LLC over the rental properties. With this LLC, the rental property owner's personal property, like home, car and other assets, are protected from the unpredictable demands of owning rental property. There are also other benefits of an LLC for rental property owners.

Personal property protection

First of, what is an LLC? LLC stands for Limited Liability Company. Without the LLC, business owners are liable for damages and other losses from their business even with their own personal assets.

To illustrate, a sole-proprietor will have to pay for anything and everything that deals with his business out of his own pockets. He can never interpose that his business is bankrupt when he still maintains a personal bank account, his own car and his own home. His personal assets will have to answer for the deficiency. Corporate shareholders do not have this problem because they are protected by the law on corporations that shareholders are only liable for losses out of their corporate shares, hence, their personal property is protected and remains untouched by any corporate liability. The downside of forming a corporation though is that the process itself is meticulous and profits will have to be shared with a handful of shareholders.

LLC combines the ease of being a sole-proprietor with the potential of earning huge profits all by yourself and the protection to personal assets that corporations offer. Personal property protection is the most basic and primary of the benefits of an LLC for rental property owners.

Tax advantages

Another of the benefits of an LLC for rental property owners is the tax advantages. Has even better tax treatment than when in a corporation. A corporate shareholder in essence will have to pay taxes twice. First, when the corporation itself pays its taxes, and second when the shareholder has to pay his own tax from the income derived from the corporation. An LLC is not taxed as a separate entity. The property owner will only have to pay his taxes once, upon his receipt of the income from the rental property. Also, the net loss in the LLC can be declared as a personal deduction for the property owner!

Be a professional by name

Real estate laws require one to spend a certain number of hours in real estate activities to be called as professionals in the real estate industry. But being in an LLC, these requirements are cut in as much as half!

An LLC may be obtained for separate properties

Another of the great benefits of an LLC for rental property owners is that a different or separate LLC may be obtained for each and every property. Why is this beneficial? Because when an investment is sued covered by an LLC, all the properties belonging to that LLC will stand liable for the suit. Covering separate properties with separate LLCs will only make the specific property or investment liable for the claim it is sued for.

These are only the basic benefits of an LLC for rental property owners. And these are already enough to convince any serious business-minded property owner, what would a more detailed study of the benefits do? Start protecting your own personal property and increasing your profits all in the same time. Get an LLC now!

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Power of Attorney - What Are the Options?

Business or personal matters often require giving power of attorney (abbreviated as POA) privileges to chosen individuals. POA authorizes the chosen individual to decide matters relating to finance or healthcare for another person who are not capable of deciding anything on his/her own.

Before giving such privileges to any person, you need to know how it works, as well as the rights given to that person. The person nominated for the purpose must be competent in making decisions, some of which may go against the wishes of other members of the family.

Law makes it obligatory to give POA only to persons who are at least eighteen years old. It is extremely important to select a person capable of taking difficult decisions relating to finance and health.

People can choose between different kinds of rights and responsibilities that they can transfer through a Power of Attorney form, depending on their needs. Every POA involves two persons, the 'Principal' and the 'Attorney-in-Fact.' The former is the individual who defines the contract, and the latter is an individual who executes the duties specified therein.

The most usual kind of contract is the Durable Power of Attorney. It's a legal document, authorizing the attorney-in-fact to take decisions concerning the finances and health, as stipulated by the Principal. This kind of POA remains in force till the Principal dies or revokes this act.

The other frequently made document is called the Non-Durable Power of Attorney. The attorney-in-fact to is authorized to take decisions for certain transactions, which are specified in the act. This kind of POA is usually made when the Principal needs to undergo surgery or another medical treatment that could make them unable for taking decisions. This POA is valid for a particular transaction, and automatically expires after the operation took place.

A Healthcare Power of Attorney is required while authorizing an individual for taking medical decisions for the Principal. It essentially involves discussing the types of treatments to which the principal may be subjected to.

The Limited Power of Attorney is generally given to another person for selling or transferring some Real Estate or property in the possession of the Principal. The privilege expires after the completion of the transaction.

Most do not feel comfortable discussing such topics. However, the kind of treatment to be followed should be discussed in advance, in case anything unexpected happens. For instance, if someone doesn't want to be kept on a life support system, when the brain is declared dead, he/she should specifically mention it in his/her healthcare POA. Else, the medical personnel is obliged to obey the state laws and continue with the regular medical treatment.

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Over 100 Legal Document Services at By the People

Rene of By the People in Fairfield CA gives a short overview of their services and the number of legal documents they can help with. For questions, call Rene or Tammy at 707-428-9871 and you can visit their website at http://www.bythepeopleca.com

Understanding the Difference Between a Will and a Living Trust

When planning for the future of your children as you get older, there are a few options on how to pass on your assets such as property, life insurance, stocks, etc. The two major ways of stating and distributing your assets after your passing is with a living trust or will. When you hear the words trust fund or wills, it refers to estate planning. Although there are different trusts out there, the main one I will focus on is a living trust.

Will

A will is a document that is created to help distribute assets and properties to a beneficiary after one passes away. With a will, it will be submitted through a probate process, which is a court process. In this process, the courts will validate the will and ensure that all the instructions are followed properly while also repaying any creditors. The downfall to a will is that it becomes public so anyone can see the distribution of your assets to your selected beneficiaries. On top of not having privacy, it could take several months to even years for the court to sort everything out!

Living Trust

A living trust is a legal document that states three parties: Grantor/Trustor, Trustee, and Beneficiaries. The grantor/trustor is the individual or couple who establishes/creates the trust. The trustee is the person nominated to be in control of the trusts assets. In many cases, the trustee is the same as the grantor/trustor. Beneficiaries are those at the receiving end who will benefit from the trust. A trust is beneficial to most people who have property worth $100,000+ and/or those who have large amounts of assets. In certain states, properties at $100,000+ can be subject to legal fees in the probate process. With a living trust, it bypasses the whole probate process and all assets can be immediately accessed by the beneficiaries. As opposed to a will, a living trust is private so it does not go through a probate process, therefore it is NOT a public record. Things that can be listed in a living trust include: stocks, bonds, real estate, life insurance, personal property, etc.

A trust is beneficial for estate planning for those who have large amounts of assets. By establishing a specific living trust known as an A-B Trust, an individual can reduce the amount of taxes paid significantly. For example, in 2012, the current estate tax is $5.12M with a cap at 35% over the $5.12M. In an A-B Trust with a couple passing their assets to their one kid, they would designate half the fund to the surviving spouse and the other half to the kid. The surviving spouse and the kid will then each receive a tax break of $5.12M giving a sheltered total of $10.24M from estate taxes. When the surviving spouse passes, then his/her half is giving to the kid who is then subject to another $5.12M tax break. Unlike a trust, a will however will be only have a tax break of $5.12M.

Conclusion

When comparing the differences of having a last will versus a living trust, it shows that the trust comes out on top. A trust will help to give privacy, immediate access to assets from beneficiaries, AND tax breaks. For those who are near the age of deciding what to pass on to their children or know someone in that situation, help them understand the difference of the two and sway them toward a living trust if feasible!

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FAQs - Know More About DUI Record Expungement and Get Your Life Back on Track

Most states in the US allow DUI record expungement. Expunging your DUI arrest or conviction record eliminates all the consequences it has in your life and helps getting your life back on track. To help you in regards to expungement, this article answers some of the most frequently asked questions.

DUI record expungement - Frequently Asked Questions:

1. What does expunging your DUI record mean?

DUI expungement is a legal process through which your DUI arrest or conviction record is completely physically destroyed.

2. Are you eligible for an expungement?

You are eligible to expunge your DUI record:

- if a certain amount of time has passed since your arrest or conviction.

- if you have completed all the terms and conditions of probation.

- if you have no new pending charges.

- if you have paid all the fines, completed jail time, community service, rehab and fulfilled all the conditions imposed by the court.

3. What will you benefit from expungement?

Once you are notified that your DUI records are expunged, you are, thereafter, to be relieved of all the disabilities resulting from your DUI arrest or conviction.

It means you do not have to disclose your conviction or arrest to your prospective private employer or when applying for a home mortgage loan or under any other circumstances.

4. How much does expungement cost?

Hiring an attorney to expunge your DUI records costs around $400 to $4000 depending on many factors like the nature of your charges i.e., misdemeanor or felony, number of charges and experience of your DUI expungement attorney. In addition to this, court and filing fees can cost $100 to $400.

5. Do you need an attorney for expunging your DUI record?

You can expunge your DUI record with or without the help of an attorney. A DUI expungement attorney ensures that your records get expunged on time. So if you can afford an attorney fee you can hire one. Otherwise you must make sure every phase in the expungement process is completed on time and correctly.

6. Will they need your presence at the court?

If you have hired an attorney, he/she will take care of all the matters on your behalf. But if you have not, you must represent yourself in the court.

7. How long does the DUI expungement process take?

If you want to expunge your misdemeanor record, it will take roughly 2 to 6 weeks from the time the application is filed.

Or if you want to expunge your felony record or want to reduce it to a misdemeanor it usually takes 4 to 6 weeks from the time the application is filed.

8. What expungement will not do for you?

Your expunged DUI arrest or conviction can still be used to increase your penalties and punishments if you get another DUI in the future.

Now that you know the answers for some of the most frequently asked questions, so you can take steps to expunge your existing or older DUI conviction and arrest record and get your life back on track.

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Making a Will - What You Should Know About Creating a Will

A will is an important document for any person to have. This document simply provides directions on how your property will be handled when you pass on. Many times, when people die without a will in place, a lot of misunderstandings can arise within the family and the community at large. It is therefore important to specify how one's property or estate will be handled to avoid these misunderstandings.

A will writing service is important to help you come up with your will. It is possible for you to write your will without any help but if you are not familiar with this process, you need guidance so that you can write a will correctly.

The first thing you need to do is identify a good will writing service that has the requisite experience and reputation to ease the process of making a will. There are a number of benefits that you will get when you work with a will writing service. Some of these benefits include:

• Correct Structure

Certain things are required when you are drawing up your will. You must indicate that you are of the right age and of sound mind. You must also indicate that this is your last will and testament. You still are able to amend your will at any time you wish to.

These services will also help you to understand technical terms used when writing a will. A man writing a will is called a testator while a woman is called a testatrix. The will has to be signed by the testatrix or the testator and signed by two other witnesses.

• Tax Implications

Certain assets or estates can have tax implications. If you leave your estate to someone else other than your spouse, they might be required to pay taxes on it. It is important to know this in advance and plan for it accordingly.

• Will Execution

Another important aspect to consider is the executor of the will. This is the person who will carry out the terms of the will should you pass on. The person who helps you write the will can also be the executor if they have that capacity. If not, you should name the person or company to carry out this function.

Making a will should not be a problem for you. With the right people to help you, this process will be easy. It will allow you to rest well knowing that your estate will be handled correctly when you pass on.

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Use a Power of Attorney and a Medical Directive to Appoint Someone You Trust to Act on Your Behalf

Many begin arranging their estate plans when they retire. But they should also arrange for what happens when they become unable to make decisions but are still living.

Dementia and other afflictions leading to mental disabilities destroy our ability to act for ourselves - such as handling our financial and medical decisions. If you haven't formally assigned someone to make those decisions for you, someone else will - and may not make the kind of decisions you'd like.

But you can only choose someone to act for you when you're mentally competent. So, below, I discuss the type of powers of attorney you can assign to anyone to act for you.

When you assign a power of attorney to someone, he can then act on your behalf. That person does not have to be a lawyer. It can be anyone who's of legal age and who you trust to handle decisions as you would want them handled.

Most often, you'll need to validate this assignment with a signed - and possibly notarized - written document since hospitals, banks and the IRS generally want proof when someone else is acting for you.

According to the wording of your assignment, you can limit the area and time for which you assign the power of attorney. You may assign one person a power of attorney to handle your financial affairs, and another person to handle your heath-related decisions.

You can assign someone to begin acting for you under his power of attorney at any time. But since we're concerned with the circumstance of you becoming mentally incompetent to act, let's review some different types of powers of attorney you can choose from.

A Limited Power of Attorney means someone you choose can act for you to handle some restricted area of your life such as paying bills, handling financial decision, or investing. You'd have to specify those areas clearly.

A General Power of Attorney is not restricted to any single area. So whoever you chose can act for you in all respects.

Any power of attorney will cease when you become mentally incompetent unless you specify otherwise. Two types of powers of attorney remain in effect under your incompetence - which is the point of this article.

A Durable Power of Attorney keeps your assignment valid even when you become incapacitated. So be sure to make your assignment 'durable' if that's your intention.

A Springing Power of Attorney comes into effect only when you become incapacitated - and not before. Of course, for this power of attorney to come into effect some 'proof' that you are sufficiently incapacitated will be required. This may require a doctor's letter and some court action if necessary.

It might happen that someone you to whom you assign a power of attorney may be unscrupulous and will waste or steal your assets. This can happen if you're elderly and slowing down about things. So, if you're unsure of how someone will handle your affairs, you may want to grant him power of attorney while you're in good mental health to see how he performs. That's not a bad idea, in any case, since you can discuss with him what you think of his decisions to help frame his future ones.

Unless you make a power of attorney irrevocable, you can revoke it simply be telling that person his assignment is revoked. But be sure to notify others that the power was revoked, too.

Health Care-Related Power of Attorney When you become incapacitated, you may want some one to make health-related decisions for you. You do this with a Medical Durable Power of Attorney. This is also called a Health Care Proxy. It takes effect only when you require medical treatment and your physician determines that you can't communicate your wishes concerning treatment.

Again, you must execute this document when you're competent. Your health care proxy ensures your instructions will be carried out. Some states differ on what decisions can be included in a health care proxy. So check the rules in your state.

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Irrevocable Vs Revocable Trust

Establishing a living trust is critical to the ability to protect your assets and beneficiaries when you die. But many people don't know that there are two types of trusts - irrevocable trusts and revocable trusts. With irrevocable trusts, the grantor's assets are moved out of the estate. In a revocable trust, assets stay in the grantor's estate. There are advantages to each type depending on the grantor's specific circumstances. Here is a rundown on the differences between the two types of trusts.

Irrevocable Trust

Most people are unaware of the advantages that this type of trust provides:

• Asset Protection - Moves assets out of the grantor's hands, keeping it safe from lawsuits or creditors. A trustee has the power to make decisions with or without the input of the grantor.
• No Estate Taxes - Many people are attracted to these trusts because they are protected from federal estate taxes.
• No Capital Gains Taxes - A skilled lawyer will be able to move assets into irrevocable trusts so as to avoid capital gains taxes. This cannot occur with revocable trust.

Before placing assets into this type of trust, make sure that the grantor will never need them. While it is possible to retrieve assets, it is very difficult and time consuming.

Revocable Trust

Most people have an idea of what this type of trust is. Grantors without complicated tax issues that want to still maintain control over their assets, often choose to have a this trust.

• Mental Disability - Individuals who fear that they will one day be incapacitated, may want to designate a trustee to handle their assets which can include extensive instructions that the trustee must carry out. This is called a Disability Trustee.
• To Protect Beneficiaries and Property - Keeps your property and assets out of probate. This ensures that your documents stay private and out of the public record. If privacy is important to you, consider a Revocable Living Trust as opposed to a Last Will and Testament which becomes a matter of public record that can be seen by anyone.
• To Avoid Probate - Assets at the time of a person's death will pass directly to the beneficiaries named in the trust agreement and avoid probate.
• For Flexibility - These types of trusts can be changed. If you have a second thought about a particular item or beneficiary, you can modify the document through a trust amendment. If you don't like the trust as a whole, then you can revoke the entire document.

Word of Caution: These trusts offer not creditor protection. If the asset holder is sued, the items in the trust are fair game. Upon your death, those assets will be subject to federal and state estate taxes.

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