Law Blog

If you could make sure that all your money, property, and other important belongings were given to exactly the right people, wouldn’t you do it?  The question seems like a no-brainer but the reality is that the majority of Americans do not do this!

A 2008 study found that 58% of Americans do not have a will.  I find this number to be shocking.  I know that death and dying is an unwelcome topic, however dying without a will is a really bad idea.  This holds true whether you are worth millions or a lot less.  Wills, trusts, and other estate planning tools give you the power to decide how to distribute your estate.

When an individual dies without a will (or when they have an incomplete will), their estate goes through intestacy, which basically means the state decides how your estate will be distributed.  This is especially risky if you have step or adopted children as some state’s do not allow an adopted or stepchild to inherit in intestacy, or those non-biological children inherit less.

A recent article I read outlines the top 9 excuses for people gave for not making any type of estate plan:

(1)I don’t see a need for an estate plan

(2)I don’t plan on dying

(3)I don’t plan on dying – at least not soon

(4)I don’t want to pay for it

(5)I don’t want to spend the time

(6)I don’t want to talk about my family

(7)I don’t want to talk about my money

(8)I don’t want to ruin my kids

(9)I don’t trust my kids

As you can see, some of these excuses are just avoiding the inevitable.  One of the beauties of estate planning is that you have the ability to change the majority of your plan as situations change.  Without an estate plan, you are putting your finances and property at the mercy of a judge who has no idea what you and your family are like.

A recent LegalMatch study found that the majority of people interested in preparing for their future were more interested in overall estate planning than drafting a single will or trust.  These findings make sense in that those individuals that are thinking about wills and estate planning are really trying to maximize the benefits and thus are creating more complicated schemes than just a will or trust; and those individuals who are not are in the majority and doing nothing to plan.   In addition to the ability to specifically provide for your family and loved ones, there are tremendous tax benefits to creating a will and/or trust.

It is not necessarily that I think everyone needs to embrace their own death.  Rather, I am advocating for embracing the lives you will leave on your death.  Estate planning is such a powerful tool and for all the time that people spend worrying about money and their families in their lives they should take a little time and worry about them after they die too.

Like most Americans, I’m not rich.  And neither are my parents, nor were my grandparents, or my great grandparents.  In fact, I’m pretty sure I might be the descendent of thieves and gangsters.  At least that’s what I tell people because it sounds a lot cooler than saying I come from a line of farmers.

Anyway, like a lot of people in my economic bracket, no one in my family has ever experienced the joy of property ownership.  We were born renters and will likely die renters –  hopefully not me though (this law stuff better pay off).  And also like most people not coming from inherited wealth, previous generations of my family didn’t have the best education in the world, if any, as I’m sure most countries with a dictatorship government probably don’t want their citizens developing a mind of their own.

What happens when you put all of this together?  You get a long line of people with only, at best, a tenuous understanding of their rights.  Not to mention an innate distrust of authority or that authority’s ability to protect them.

It’s no surprise then why so many people in this country have no idea what their rights are as tenants.  Though it’s likely that a lot of people have a natural sense of what is right and what is wrong, for some reason when it comes to an injustice being perpetrated against them as a renter, these people are more inclined to let those things slide for fear of rocking the boat and suffering some incredibly painful consequence from their almighty landlord.

Get hit by a car and chances are you’ll likely want the driver who hit you brought before justice and sued in civil court.  But if the heat in your apartment is broken or your plumbing is backed up and your shower lacks water pressure, then for some reason you can live with it.  Aside from the obvious disparity between getting dinged by a car versus having to take cold showers (I’ll try to make more equal comparisons in the future), the distinction doesn’t make much sense, huh?

Now the terms in least agreements vary from property to property, so you might not always have a legitimate dispute (though that’s not to say it’s not possible to sue for almost anything these days).  In general, all states in the country generally have some law or statute in place ensuring that tenants are allowed the right to reside in a property free from health and safety hazards, as well as being of livable standards.  Note that the latter condition is very broad and open to much interpretation.  Depending on the state, it can sometimes favor the tenant or the landlord.

Recent case statistics from LegalMatch indicate that citizens from poorer states, such as Maryland, file, on average, over 70 percent less claims alleging tenant rights violations than people from wealthier states, such as California.  From an optimist’s point of view one might think that there are less renter rights violations in those states.  However, from a more realistic perspective, such violations are probably just as prevalent everywhere you go in the country.

So the lesson here is that you shouldn’t be afraid to rock the boat.  You have rights as a renter and should exercise them.  And if you really need it, sit down with a good tenant’s rights attorney.

Preparing and contemplating ones own death is not a welcome thought or process.  However, what was previously a practice that simply involved drafting a will has morphed into a much more complicated process that not only plans for death but also for life.

Estate planning today rarely involves the composition of just a will but also creates trusts, guardians, powers of attorney, gifts, funeral arrangements, organ donations, and other estate planning techniques. Modern-day estate planning is not the dreaded process that it has been branded over the years mainly because it is no longer just about bequeathing property and assets to loved ones and can carry many benefits that an individual can enjoy while sill alive.

A recent LegalMatch study revealed a range of questions regarding estate planning, and how the high level of overall inquiries in this intricate legal field seems to be on the rise.  Part of this rise in interest can be attributed to the range of fields that estate planning incorporates- general estate planning, tax law, family law, complicated health care directives, and many others depending on individual circumstances.

I agree with a recent article published that catalogued some of the major trends in estate planning:

1.) Fewer estates will be taxable

2.) Careful planning to avoid probate court during incapacity is on the rise.

3.) There is an increasing concern over the wrong people gaining control over an individual’s assets.

4.) The arrangements or terms controlling the distribution of an inheritance are becoming increasingly detailed

5.) The amount gifted to charity is increasing steadily

6.) Having long-term health insurance is becoming more common

7.) Using a specialist in the estate planning process is on the rise

As the trends reveal, people are becoming increasingly aware of the need to plan for any and all possible future events. There are a tremendous amount of benefits from consulting an estate planning lawyer to planning for an individual’s specific needs and also to take advantage of the tax benefits associated with the creation of trusts and other planning tools.

You’ve always paid your mortgage on time but now you find yourself unemployed.  You’ve tapped out your savings. You haven’t paid your mortgage in 3-months and discovered a Notice of Default in your mail.  Not only are you put on notice of a default, but since this notice is also recorded with your County Recorder’s office, there are others on the lookout, too.

Take the experience of Charleen Trana a 78 year-old widow living in her San Fernando home of 50 years, worth at least $350,000.  (Dreams Foreclosed: The Rampant Theft of American’s Homes Through Equity Stripping Foreclosure “Rescue” Scams) Because her disabled son was having difficulty maintaining jobs, Trana took out a $100,000 mortgage on her home to help him.  However, when Trana’s health began to fail, her costs skyrocketed.  She fell behind in her mortgage payments. Trana received a notice of default, but that wasn’t all that she received.  Some very nice men approached her days later and offered to rescue her home from foreclosure. Desperate, Trana signed her property deed over to these men for a small sum down.  She also signed inch-thick documents with the promise that these rescuers would not only pay off her mortgage but, in exchange for rent, Trana could continue to live in her home.  But, there was a catch; the rescuers failed to pay-off the mortgage, leaving Trana on the hook both for the mortgage and the rent while they held the deed (and equity) to her home! 

Trana’s story is not atypical.  Indeed, the Federal Trade Commission (FTC) just announced a new crackdown in foreclosure equity stripping schemes.  (Federal and State Agencies Crack Down on Mortgage Modification and Foreclosure Rescue Scams)  One of these schemes concerns loan modification scams.  Firms involved in these scams use on-line ads, spam, and direct mail targeted to homeowners in financial distress, promising high success rates at modifying their mortgages and saving their homes.

While LegalMatch does not specifically track foreclosure equity scams, we have had an explosion of customers contact us during the past year either because a foreclosure had been filed against them or because there was a foreclosure judgment. 

RECENT EXPLOSION OF LEGALMATCH CUSTOMERS SEEKING ASSISTANCE WITH FORECLOSURES

If you suspect that you’ve been approached by a rescuer, contact your local District Attorney and report the individual(s) to the FTC.  If you’ve been a victim of a loan modification or a foreclosure equity scam, you may either be able to file criminal charges or bring a lawsuit against the rescuer for damages.  LegalMatch has many experienced real estate attorneys who can assist you in determining the best course of legal action.  Whatever you do, don’t sign your property deed over until you’ve consulted your local agency or licensed attorney to ensure that you aren’t a victim of a foreclosure equity scam!

Federal Trade Commission Home Equity Scams

National Consumer Law Center

U.S. Dept. of Housing and Urban Development Guide to Avoiding Foreclosures

Almost everyone knows what Prenuptial Agreements do: they are premarital agreements for the division of property following a divorce. What no one really knows is how many of them exist. Data from Legalmatch.com client intake reports, however, shows that these agreements are most popular for the following age brackets: 

AGE                % CLIENTS SEEKING PRENUPS

18-25               11%
26-32               23%
33-39               21%
40-46               18%
47-53               14%
54-60               6%
61-67               2%
68 and above    1%

The median age for a first marriage in the United States is 26. Most second marriages (i.e. where at least one of the spouses has been married before) occur after the age of 35. Although most experts think prenuptial agreements are most common for second marriages, LegalMatch’s numbers show that a large number of people younger than 35 are getting prenuptial agreements.

Nothing wrong with that, and most divorce attorneys think it’s a wise idea for people to officially designate what is and is not separate property prior to their marriage, whether it’s their first, second, or 16th. If folks going through a second marriage are doing it, that probably means it would have been a wise idea the first time around as well.