As people age, they often open joint bank accounts in their name as well as that of a close friend or family member. This allows the friend/family member to have access to the account to write checks and use funds to pay bills or other expenses of the older person. The person setting up this account often does this because he/she thinks it is a cheaper alternative to a power of attorney. However, establishing such a bank account can have unintended consequences.
Articles written by
Michael Giusto
Beware of Zoning Changes: Protecting Your Non-conforming Use
Local zoning codes established by a town, village, or city control and establish what you can do with your property, as well as the size and boundaries of structures. Those codes can change over time, resulting in potential problems for property owners. This is increasingly an issue for many owners as localities look to prohibit certain uses of property because of growing concerns of conservation, exposure risks, etc. However, owners are often protected from a change that makes a pre-existing use illegal because they are considered to have a “prior non-conforming use.”
Minimizing Taxes When Inheriting Stock in an S Corporation
Generally, the property you inherit from a decedent receives a “step-up” (increase) in basis equal to the fair market value of the property at the time of death. The step-up is potentially valuable as it allows the beneficiary to avoid paying capital gains tax on any appreciation in the value of the asset prior to the decedent’s death upon the future sale of the inherited property. However, when it comes to inheriting shares of stock in an S corporation, beneficiaries can be hit with a significant tax bill if they are not careful about selling property owned by the corporation.
NY Court Limits Effectiveness of Blanket Additional Insured Riders for Construction Companies
Construction companies and contractors are required to maintain insurance not only for their benefit, but for the benefit of the owner of the property where they are providing services as “additional insureds.” Many companies use what is known as a “blanket additional insured rider” to provide the required coverage to the property owners. However, a recent court decision has significantly limited the effectiveness of blanket riders.
Estate Planning Musts for Liquor License Owners
Individuals who hold a liquor license face a number of restrictions on their business operations. In the context of estate and business succession planning, these limitations add an extra burden when passing the business on to heirs due to additional restrictions which may come into play after the death of a license holder. If owners do not plan appropriately, their estate may face legal difficulties and high costs which could reduce their assets.
Do’s and Don’ts for Avoiding Personal Liability for Corporate Debts
Many companies choose to do business through a corporation or other limited liability entity (like an LLC). The reason is because a corporation is its own separate “person,” so shareholders or members are not liable for the company’s obligations or debts. This is true whether the corporation has a single shareholder or hundreds of shareholders. However, to take advantage of this benefit, the corporation’s affairs must actually be kept “separate” from the personal affairs of its shareholders.
Avoiding Liability as a Trustee – Part 2
Trustees are given great responsibility under the law. As we discussed in our last post, trustees are held to a very high standard of care in exercising their duties and acting in the best interests of the beneficiaries. They must take care that they don’t breach their fiduciary duties. Below are some of the most common areas to result in liability.
Avoiding Liability as a Trustee – Part 1
Trustees have the important responsibility of protecting property for beneficiaries. However, the position carries a great deal of responsibility and potential legal liability for trustees who don’t understand the rules. That’s because trustees are fiduciaries, which means they are held to a very high standard of care in exercising their duties and acting in the best interests of the beneficiaries. In order to avoid liability, they must understand their role and potential problem areas.
Filling in the Gaps in an Adversary’s Email Production
It is not exactly news that the majority of business communications today are handled electronically by email. However, in the context of litigation, this can add new complications and twists to an age-old problem: How to obtain evidence from an opposing party who is motivated to avoid producing communications and willing to disregard their obligations under the relevant rules.
How to Maximize Your Estate with a Retirement Asset Trust
For years, the government and financial experts have encouraged individuals to save more money for retirement. One of the best ways to save is to use tax beneficial accounts, including 401k, 403(b) or traditional IRAs. These accounts allow assets to grow tax deferred until the funds are withdrawn, which is not required until an individual reaches age 70 and a half. As a result, many people will die with significant assets in these tax protected accounts, which can pose challenges for proper estate planning. However, retirement asset trusts can provide a solution.