Your business loan could mess up your estate plan
If you own a business and you plan to leave it to one of your children when you die, be aware that taking out a business loan or line of credit could affect your estate plan. The reason: Many wills that provide that a child will inherit business assets don’t specify whether the child will […]
$100 million Starbucks verdict shows danger of ‘tip pools’
A recent $100 million verdict against Starbucks for the way it required employees to participate in “tip pools” should jolt employers with all the force of a Venti extra-shot Caramel Macchiato. Tip-pool lawsuits have been filed recently not only against restaurants, but also against hotels, transportation companies, delivery services, casinos and sports facilities. Recently, many […]
Meet the typical homebuyer
The typical homebuyer today is 39 years old, has a household income of $74,000, searches for eight weeks, sees 10 homes, and makes a down payment of 9%, according to research conducted by Bankrate.com. Married couples constitute 62% of homebuyers, with single women accounting for 20%, single men 9% and unmarried couples 7%. (The remaining […]
Why it’s not always smart to put your house in your child’s name
Some people decide to do some “homemade” estate planning and put their house in a child’s name. They figure this will avoid probate and get the house out of their estate for tax purposes. This might be a good idea in some cases. But remember, if you give your house to your child now, any […]
Down market prompts new types of sales for buyers
The down market in real estate has created a boomlet in two obscure types of property sales: the “short sale” and the “house swap.” A short sale is an alternative to foreclosure. If a property owner is unable to make mortgage payments, but the lender doesn’t want to go through the legal hassle of foreclosure, […]
Be careful when selling or leasing mineral rights
Congratulations – there’s oil, coal, gas, salt, gemstones, or some other valuable material under your property. But how exactly do you sell someone the right to develop it? Most sales of real estate are sales “in fee simple” – which means the buyer owns the surface of the land, the earth underneath it, and the […]
Second owner of building could sue builder for defects
The second owner of a building could sue the builder for construction defects that led to the development of mold, the Iowa Supreme Court has ruled. The case involved a home that was built in 1995. In 2000, the original owners sold it to another family. The second family then discovered water damage and mold. […]
Can a condominium ban smoking inside units?
There’s a growing trend among condominium owners to ban smoking – not just in common areas, but inside individual units and in outdoor areas as well. Bans on smoking in common areas have been around for years. But a ban on smoking in individual units is a relatively new idea – and there are many […]
‘Family LLC’ saves a family $14million
A family-owned limited liability company saved a family $14 million in taxes, in the latest ruling from the U.S Tax Court on this technique. With a family LLC, parents create a company and fund it with valuable assets. Then they give their children ownership interests in the LLC. Giving these interests triggers less gift tax […]
Do you want your trust to benefit your heirs’ surviving spouses?
An heir to the Johnson & Johnson fortune created a trust to benefit four children. The trust was set up so that it would provide money to charity for a period of years, then be distributed to the four children and their spouses. By the time the distribution came around, one of the children (named […]