tag:blogger.com,1999:blog-86578301427892049322024-03-13T13:51:52.611-07:00LEGAL REPORTSA Discussion of Legal News and IdeasRobert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.comBlogger42125tag:blogger.com,1999:blog-8657830142789204932.post-6055224634529975472019-04-19T16:07:00.004-07:002019-04-19T16:09:59.414-07:00WANT A TRUST? YOU WILL ALSO NEED A WILL. <br />
<div style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em; text-align: justify;">
<span style="background-color: white;"><span style="color: #1d2129; font-family: "helvetica" , "arial" , sans-serif;"><span style="white-space: pre-wrap;"> </span></span></span></div>
<div style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em; text-align: justify;">
<span style="font-family: "helvetica" , "arial" , sans-serif;"><span style="background-color: white; white-space: pre-wrap;">I often get this question: Do I need a <i>trust </i>or a <i>will</i>? The answer is that if you have a <i>trust</i>, you also need a <i>will</i>. </span></span></div>
<div style="text-align: justify;">
<span style="color: #1d2129; font-family: "helvetica" , "arial" , sans-serif;"><span style="background-color: white; white-space: pre-wrap;"><br /></span></span></div>
<div style="text-align: justify;">
<a href="https://moneycrashers-sparkchargemedia.netdna-ssl.com/wp-content/uploads/2012/09/will-1068x600.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><span style="background-color: white;"><span style="color: black;"><img alt="Image result for trust/will" border="0" height="112" src="https://moneycrashers-sparkchargemedia.netdna-ssl.com/wp-content/uploads/2012/09/will-1068x600.jpg" width="200" /></span></span></a><span style="background-color: white;"><span style="color: #1d2129; font-family: "helvetica" , "arial" , sans-serif;"><span style="white-space: pre-wrap;">I saw this article from the blog </span></span><a href="https://www.fatherly.com/love-money/estate-planning-create-trust/" style="font-family: helvetica, arial, sans-serif; white-space: pre-wrap;">Fatherly </a><span style="color: #1d2129; font-family: "helvetica" , "arial" , sans-serif;"><span style="white-space: pre-wrap;">and realized that even those holding themselves out as experts have no idea about the interplay between a <i>trust </i>and <i>will</i>. The headline reads: Estate Planning? Consider a Trust Instead of a Will. The article makes the reader think that it is an either-or proposition. Nothing can be further from the truth. It is almost always legal malpractice to create a <i>trust </i>and not also create a <i>will</i>. </span></span></span></div>
<div style="text-align: justify;">
<span style="background-color: white; font-family: "helvetica" , "arial" , sans-serif; white-space: pre-wrap;"><br /></span></div>
<div style="text-align: justify;">
<span style="color: #1d2129; font-family: "helvetica" , "arial" , sans-serif;"><span style="background-color: white; white-space: pre-wrap;">The issue is <i>trust </i>"funding." Funding a <i>trust </i>means that you put assets into the name of the trust (e.g. your home is title in the name of "The John and Jane Doe Revocable Living Trust"). It is true that if all your assets are in <i>trust</i>, when you die your <i>trust </i>beneficiaries will likely never use your <i>will</i>. However, unless you have a full time attorney on staff, something ALWAYS gets left out of the <i>trust </i>(frequently everything gets left out). In other words, you have a <i>trust</i>, but it's empty of assets. </span></span></div>
<div style="text-align: justify;">
<span style="background-color: white; font-family: "helvetica" , "arial" , sans-serif; white-space: pre-wrap;"><br /></span></div>
<div style="text-align: justify;">
<span style="background-color: white;"><span style="color: #1d2129; font-family: "helvetica" , "arial" , sans-serif;"><span style="white-space: pre-wrap;">When assets are left out of your <i>trust</i>, you need a <i>will </i>to "pour over" assets into your <i>trust</i>. If you don't have a <i>will</i>, and something is left out of the <i>trust</i>, the asset pass to your </span></span><span style="font-family: "helvetica" , "arial" , sans-serif; white-space: pre-wrap;">intestate </span><span style="font-family: "helvetica" , "arial" , sans-serif; white-space: pre-wrap;">heirs, as directed by the state of Arizona. Why does this matter? You could end up giving your money to someone you do not wish to receive the money. </span></span></div>
<div style="text-align: justify;">
<span style="background-color: white; font-family: "helvetica" , "arial" , sans-serif; white-space: pre-wrap;"><br /></span></div>
<div style="text-align: justify;">
<span style="background-color: white; font-family: "helvetica" , "arial" , sans-serif; white-space: pre-wrap;">In other words, if you want a trust, get a will too. </span></div>
Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-4219392848245489692017-10-27T10:16:00.000-07:002017-10-27T10:16:12.232-07:00TAX REFORM IS COMING—SHOULD I DELAY MY ESTATE PLAN?<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%;">I recently heard this
question: “given that Congress is going to enact tax reform, should I delay establishing
my estate plan?” The questioner reasoned
that once Congress acts he would need to change his estate plan anyways. The short answer to this question is
“no.” Get your estate plan now. </span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://2.bp.blogspot.com/-bHRLsjp9NdQ/WfNpuw0BubI/AAAAAAAAglA/XQVPuMNxgzoKXuQsuYkQZ-OSTi-Nw4bmgCLcBGAs/s1600/Boy%2Bin%2BSunset.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="303" data-original-width="396" height="152" src="https://2.bp.blogspot.com/-bHRLsjp9NdQ/WfNpuw0BubI/AAAAAAAAglA/XQVPuMNxgzoKXuQsuYkQZ-OSTi-Nw4bmgCLcBGAs/s200/Boy%2Bin%2BSunset.jpg" width="200" /></a></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman", serif; font-size: 13pt; line-height: 115%; text-indent: 0.5in;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman", serif; font-size: 13pt; line-height: 115%; text-indent: 0.5in;">Firstly,
the tax most individuals worry about—so called “death taxes”—are not likely to
change to cause more tax. Congress is considering making the tax less onerous
rather than more onerous. </span><a href="https://www.huffingtonpost.com/entry/tax-reform-estate-tax_us_59f0b291e4b0d094a5b68c4c" style="text-indent: 0.5in;"><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%;">https://www.huffingtonpost.com/entry/tax-reform-estate-tax_us_59f0b291e4b0d094a5b68c4c</span></a><span style="font-family: "Times New Roman", serif; font-size: 13pt; line-height: 115%; text-indent: 0.5in;">. </span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman", serif; font-size: 13pt; line-height: 115%; text-indent: 0.5in;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman", serif; font-size: 13pt; line-height: 115%; text-indent: 0.5in;">Secondly,
death taxes affect virtually no one. Roughly
.2% of deaths in 2017 will result in a federal estate tax. It is estimated that of the 2.7 million
people who will die in the United States in 2017, only 5,500 will pay any sort
of death tax. The reason is that your
estate must be roughly $5.5 million before any federal estate tax kicks
in. </span><a href="http://www.taxpolicycenter.org/briefing-book/how-many-people-pay-estate-tax" style="text-indent: 0.5in;"><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%;">http://www.taxpolicycenter.org/briefing-book/how-many-people-pay-estate-tax</span></a><span style="font-family: "Times New Roman", serif; font-size: 13pt; line-height: 115%; text-indent: 0.5in;">. Moreover, even if you currently have over 5.5
million in assets, at the time of your death, after 20 years of retirement, you
will not have those assets. The money
will be spent on your living expenses. </span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman", serif; font-size: 13pt; text-indent: 0.5in;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman", serif; font-size: 13pt; text-indent: 0.5in;">Lastly,
and most importantly, tax planning is only a small portion of your estate
plan.</span><span style="font-family: "Times New Roman", serif; font-size: 13pt; text-indent: 0.5in;"> </span><span style="font-family: "Times New Roman", serif; font-size: 13pt; text-indent: 0.5in;">The most important part of the
average estate plan involves the following:</span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .5in;">
<span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoListParagraphCxSpFirst" style="margin-left: .75in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%;">Determining
who will care for your minor children. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%;">Avoiding
confusion created when a person is a spouse in a blended family and/or has kids
from a prior relationship. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">3.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%;">Avoiding
the delay and costs associated with a probate. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">4.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%;">Determining
who will represent your estate at your death. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">5.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%;">Determining
how you will divide your assets at death. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">6.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%;">Determining
who will care for your finances when you are incapacitated. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">7.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%;">Avoiding
confusion that can be created when you fail to create an estate plan. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">8.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%;">Determining
how to pay your debts at death. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">9.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%;">Keeping
the “family peace” by having a well ordered estate that clearly communicates
how you want your estate divided and who you want to provide for at death. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="margin-left: .75in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">10.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%;">Creating
that peace of mind that comes with good planning. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="text-align: justify;">
<span style="background: white; color: #252525; font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="background: white; color: #252525; font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%;">Of course, I am writing about Arizona law, this general
information may not be right for your specific matter, and is not legal advice.
I’d be happy to talk to you, so give me a call at Davis Miles McGuire Gardner,
480-733-6800, or reach me at </span><a href="mailto:rsewell@davismiles.com"><span style="background: white; color: #325088; font-family: "Times New Roman", serif; font-size: 13pt; line-height: 115%; text-decoration-line: none;">rsewell@davismiles.com</span></a><span style="background: white; color: #252525; font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%;">.</span><span style="font-family: "Times New Roman","serif"; font-size: 13.0pt; line-height: 115%;"><o:p></o:p></span></div>
Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-937632235622043082017-10-11T16:24:00.001-07:002017-10-11T16:25:58.722-07:00CAN MY TEXT MESSAGES BE A WILL?<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">A
recent case in Australia answered the question of whether a text message can
create a will. The Court ruled that a
decedent’s text messages, some of which were unsent, could constitute a
will. </span><a href="http://www.telegraph.co.uk/news/2017/10/11/dead-mans-unsent-text-message-accepted-will/"><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">http://www.telegraph.co.uk/news/2017/10/11/dead-mans-unsent-text-message-accepted-will/</span></a><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">. Think
about how much confusion (not to mention fraud) this could create if this was
the law in Arizona. </span><br />
<div class="separator" style="clear: both; text-align: center;">
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;"></span><a href="https://4.bp.blogspot.com/-MRIn6BsJOM0/Wd6oDocXeeI/AAAAAAAAgds/dqSj82ev1EYdhJcVulCYx0jeD7IPPXUdgCLcBGAs/s1600/Text%2BMessage.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="528" data-original-width="601" height="280" src="https://4.bp.blogspot.com/-MRIn6BsJOM0/Wd6oDocXeeI/AAAAAAAAgds/dqSj82ev1EYdhJcVulCYx0jeD7IPPXUdgCLcBGAs/s320/Text%2BMessage.png" width="320" /></a></div>
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;"> <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">Courts
would be called upon to discern between fake text messages and real ones. Experts would be called on to decipher
whether the text messages were created before the death or after. Courts would need to decide whether the text
messages were supposed to revoke existing estate plans or just amend an
existing estate plan. Courts would need
to decide whether the text was just a note for a possible future will or an
actual will. The list can go on and on. Thankfully, this is not the law in Arizona. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">To
create a will in Arizona is simple. It
requires doing one of the two options below:
<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .75in; text-align: justify;">
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="margin-left: .75in; text-align: justify;">
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">Holographic Will:
A testator, over the age of 18, can create a holographic will so long as
he/she writes the will, in his/her own hand, and it is signed by the
testator. There is no need for the will
to be witnessed or notarized. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .75in; text-align: justify;">
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="margin-left: .75in; text-align: justify;">
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">Standard Will: A standard will is a bit more
complicated. These types of wills must have
the following: <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpFirst" style="margin-left: 1.25in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">A.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">It must be in
writing; <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.25in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">B.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">Signed by the
testator or signed by someone else in his/her conscious presence for the
testator; and<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="margin-left: 1.25in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">C.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">Witnessed by two
witnesses who witnessed the testator’s signature on the will.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="margin-left: 1.25in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">If
you have not complied with each requirement, you have not created a will in
Arizona. You will die “intestate,” meaning without a will. Please note that under the Standard Will, I
recommend that a testator have his/her signature notarized. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">Despite
the simplicity of creating a will in Arizona, I recommend that you hire an
attorney to create your will or estate plan.
It is one thing to create a will that the courts will review and attempt
to decipher. It is yet another, and much
harder, to create a will that actually conveys your property without confusion
and without unnecessary litigation. <o:p></o:p></span></div>
Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-43097765676669987432017-09-19T16:30:00.002-07:002017-09-19T16:45:07.397-07:00PROTECT YOURSELF FROM THEFT: CHOOSE THE RIGHT PERSON AS POWER OF ATTORNEY<div style="text-align: justify;">
<span style="font-family: "times" , "times new roman" , serif;">Bad
estate planning decisions happen all the time, even when you have a great
attorney. One common mistake: Choosing the wrong person to be your power of
attorney. A recent case in the news was a great reminder. <a href="http://www.channel3000.com/news/crime/power-of-attorney-charged-with-taking-using-mans-money-for-personal-use/607446161">http://www.channel3000.com/news/crime/power-of-attorney-charged-with-taking-using-mans-money-for-personal-use/607446161</a>. </span><br />
<div class="separator" style="clear: both; text-align: center;">
<span style="font-family: "times" , "times new roman" , serif;"><a href="https://3.bp.blogspot.com/--Ug7e41jnrQ/WcGr9C-k6KI/AAAAAAAAgSY/f8RKzZiZTOs_8EmE6CdG4fk-SmBS6eDYwCLcBGAs/s1600/poa.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="201" data-original-width="300" height="134" src="https://3.bp.blogspot.com/--Ug7e41jnrQ/WcGr9C-k6KI/AAAAAAAAgSY/f8RKzZiZTOs_8EmE6CdG4fk-SmBS6eDYwCLcBGAs/s200/poa.png" width="200" /></a></span></div>
<span style="font-family: "times" , "times new roman" , serif;"> <o:p></o:p></span></div>
<div style="text-align: justify;">
<span style="font-family: "times" , "times new roman" , serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: "times" , "times new roman" , serif;">In
that case, a Wisconsin woman became an elderly man’s power of attorney. After
time, she began to spend his money on herself. Using his power of attorney and
his money, she paid her mortgage and other bills. After she done, there was
nothing to pay his bills. What she did is a crime in Wisconsin and in Arizona.
She is now facing six felony counts.<o:p></o:p></span></div>
<div style="text-align: justify;">
<span style="font-family: "times" , "times new roman" , serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: "times" , "times new roman" , serif;">What
this woman did is not unique. It happens every day all over Arizona. However,
it is preventable in many cases. My advice is the following: Choose a power of
attorney when you don't need one—when you have a clear head—and when you are
still competent to make good decisions.
Once you need a power of attorney you may not be in a position to make
well-reasoned decisions. <o:p></o:p></span></div>
<div style="text-align: justify;">
<span style="font-family: "times" , "times new roman" , serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: "times" , "times new roman" , serif;">When
choosing a power of attorney, be honest with yourself. Does the person have good judgement? Is there
anything in his/her character that would suggest he/she is not trustworthy? If
you cannot answer these questions positively, choose a different power of
attorney. A person who has a history of
dishonest acts or bad financial decisions should not be your power of attorney.
<o:p></o:p></span></div>
<div style="text-align: justify;">
<span style="font-family: "times" , "times new roman" , serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="line-height: 115%;"><span style="font-family: "times" , "times new roman" , serif;">If you cannot find someone to trust, get a professional
fiduciary to be a power of attorney for you. The professional will pay your
household bills, manage your finances, and take care of any other issue in your
life. Most of all, a licensed and
insured professional will keep you from being victimized.</span></span></div>
Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com1tag:blogger.com,1999:blog-8657830142789204932.post-35559816628123843312017-09-18T17:06:00.003-07:002017-09-18T17:08:54.556-07:00Equifax--Be Careful of Accepting Help From Equifax<div class="separator" style="clear: both; text-align: center;">
<br /></div>
I was asked to comment on the Equifax credit dispute. Be careful of accepting the free credit monitoring service.<br />
<div class="separator" style="clear: both; text-align: center;">
<iframe allowfullscreen="" class="YOUTUBE-iframe-video" data-thumbnail-src="https://i.ytimg.com/vi/Qkk5852MP2s/0.jpg" frameborder="0" height="266" src="https://www.youtube.com/embed/Qkk5852MP2s?feature=player_embedded" width="320"></iframe></div>
<br />Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-52105899466508634892017-08-18T10:23:00.002-07:002017-08-18T10:23:20.301-07:00I was asked to comment on arbitration on Channel 3. <div class="separator" style="clear: both; text-align: center;">
<iframe width="320" height="266" class="YOUTUBE-iframe-video" data-thumbnail-src="https://i.ytimg.com/vi/qdOpePwiWks/0.jpg" src="https://www.youtube.com/embed/qdOpePwiWks?feature=player_embedded" frameborder="0" allowfullscreen></iframe></div>
<br />Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-37436860644615603042015-12-01T13:43:00.001-07:002015-12-01T15:43:42.871-07:00FOUR ESTATE PLANNING TOOLS EVERYONE NEEDS <div class="MsoNormal" style="text-align: justify;">
<b>WARNING:</b> At some point in your life the unexpected will
happen. If that “unexpected” is
sickness, becoming mentally incompetent, or dying, you will need certain legal
tools to get you through that period. As
you are guaranteed to either get sick, become mentally incompetent, or die, or
all of them, my advice to you is obtain the following four documents:</div>
<div class="MsoNormal" style="text-align: justify;">
<b style="text-indent: -0.25in;"><br /></b></div>
<div class="MsoNormal" style="text-align: justify;">
<b style="text-indent: -0.25in;"> Will:</b><span style="text-indent: -0.25in;"> A Will directs how you want your
property distributed on death. It also may describe, among other things, who is
to manage your Estate (e.g. personal representative or executor), who you want
to take care of your children, and instructions about the payment of debts.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">It does not avoid probate.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">It is a “one way ticket” to probate.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<b style="text-indent: -0.25in;"><br /></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="text-indent: -0.25in;"><span style="font-size: xx-small;"> </span></span><b style="text-indent: -0.25in;">Durable and General Power of Attorney:</b><span style="text-indent: -0.25in;"> A
power of attorney gives someone the power to act on your behalf for legal
matters.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">A durable power of attorney
springs to life if you are not medically competent to act for yourself. A
general power of attorney gives someone broad authority to act on your behalf
and should be carefully drafted to give authority in every legal area that you
will need.</span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;">
<o:p></o:p></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;">
<b><br /></b></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;">
<b> Healthcare Power of Attorney:</b> A
healthcare power of attorney gives someone authority to make medical decisions
on your behalf should you lack the ability. </div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;">
<b style="text-indent: -0.25in;"><br /></b></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;">
<b style="text-indent: -0.25in;"> Living Will:</b><span style="text-indent: -0.25in;"> A living will informs and gives direction
about what medical treatment you want should you be unable to express you
wishes. In other words, if you are
unconscious or mentally incompetent, this document will state whether you want
life sustaining treatment, heroic lifesaving measures, or simply manage the pain while you pass. </span></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;">
<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
The above documents are the
essential estate planning tools. If you
do not have the documents above, there are laws in place to compensate for your
lack of planning; however, your end of life could become more complicated and more
expensive for you and your loved ones. Here
are the legal alternatives that take the place of the above estate
planning tools: </div>
<div class="MsoNormal" style="text-align: justify;">
<o:p></o:p></div>
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr>
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 99.9pt;" valign="top" width="167"><div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<i>Missing Estate Planning Tool<o:p></o:p></i></div>
</td>
<td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 369.0pt;" valign="top" width="615"><div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<i>Explanation
of Why You Do Not Want This Result <o:p></o:p></i></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 99.9pt;" valign="top" width="167"><div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
Will<o:p></o:p></div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 369.0pt;" valign="top" width="615"><div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
If you die leaving no will, the State will decide
how to divide your assets at death. Please know that the rules for
distribution may cause you to enrich someone that you did not intend or wish to
enrich. <o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 99.9pt;" valign="top" width="167"><div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
Durable and General Power of Attorney<o:p></o:p></div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 369.0pt;" valign="top" width="615"><div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
A conservator is someone appointed by a court
that manages all your assets, if you are not competent to do so (e.g. you are
addicted to drugs, suffer from dementia, etc.). The conservatorship is frequently thousands
to administer.
The system is ripe with mismanagement, is cumbersome to administer, and
can take hours of your loved ones time to administer. <o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 99.9pt;" valign="top" width="167"><div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
Healthcare Power of Attorney<o:p></o:p></div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 369.0pt;" valign="top" width="615"><div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
A Guardian is someone appointed by a court that
manages all your healthcare needs. If
you value privacy, you will no longer have it with the guardian process as
your healthcare is the subject of the court.
Moreover, it can costs thousands to administer. <o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 99.9pt;" valign="top" width="167"><div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
Living Will<o:p></o:p></div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 369.0pt;" valign="top" width="615"><div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
If you have not planned for your end of life,
someone will plan for you. This may
mean that you are placed on life support for a prolonged period. Moreover, it
means that you may burden your loved ones with the decision to terminate or
extend life support. <o:p></o:p></div>
</td>
</tr>
</tbody></table>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-31421476373542594372015-04-01T14:31:00.001-07:002015-04-01T14:31:44.884-07:00Death and DebtThis is a terrible and misleading <a href="http://www.huffingtonpost.com/jason-alderman/debt-and-the-deceased-how_b_6986008.html" target="_blank">article </a>and I want to set the record straight regarding debts and death: <br />
<br />
1. If your loved one dies (who is not your spouse) and the loved one leaves behind debt, the survivors are NOT responsible for that debt; rather, the estate of the deceased is responsible. It is important to note that the deceased cannot avoid the debts by giving his assets to his heirs through beneficiary designation, joint tenancy, or similar device. The deceased will not escape those debts and creditors may, under the right circumstance, reach into funds transferred in that manner. <br />
<br />
2. If your spouse dies and leaves behind debt, the spouse is frequently, but not always, responsible for the debt. For example, the spouse leaves a credit card in his name but not in the spouse's name, the surviving spouse may be found responsible for the debt. A spouse should seek counsel regarding the debt from a qualified attorney because the issues are seldom clear. <br />
<br />
<br />Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-21995507595927875372015-02-25T10:04:00.002-07:002015-02-25T10:05:17.889-07:00FATAL ESTATE PLANNING MISTAKES: ACCOUNTS IN JOINT TENANCY<div class="MsoNormal" style="text-align: justify;">
<i>This is the third article in a series, Fatal Estate Planning Mistakes,
which focuses on "war stories" regarding common estate planning
mistakes, as seen by a probate and trust litigator. These stories are meant to serve as lessons
for the average reader. If the reader
sees the mistake below in his or her estate plan, please contact Robert Sewell,
Esquire, to discuss how to remedy the problem.</i></div>
<div class="separator" style="clear: both; text-align: center;">
</div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<i></i></div>
<div class="separator" style="clear: both; text-align: center;">
</div>
<a href="http://4.bp.blogspot.com/-SEZoOTo_4sM/VO3_5QU-kFI/AAAAAAAATY8/2QqAsVSUYok/s1600/042.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em; text-align: justify;"><img border="0" src="http://4.bp.blogspot.com/-SEZoOTo_4sM/VO3_5QU-kFI/AAAAAAAATY8/2QqAsVSUYok/s1600/042.jpg" height="133" width="200" /></a><o:p></o:p><br />
<div class="MsoNormal" style="text-align: justify;">
THE FATAL FLAW: Cindy is an elderly woman with a paid off
home, $50,000.00 in a checking account, $100,000.00 in a savings account and
$100,000.00 in a retirement account. She feels herself "slipping" and is
no longer able to manage the daily tasks of shopping, banking, and paying
bills. To aid Cindy in her daily tasks
she puts her daughter, Shelly, on each account as a joint tenant. Shelly is now able to transact business from
those accounts on Cindy's behalf. Cindy’s
Will grants an equal share of her entire estate, including the accounts, to
three children. Upon Cindy’s death, Shelly inherits all Cindy’s cash and all the children inherit an equal share of the house. In other words, one daughter takes
significantly more than the remaining children despite the fact that the will
grants each child an equal interest. The
reason for this result is that joint tenant accounts pass to the joint tenant
upon the death of one of the tenants. </div>
<div class="MsoNormal" style="text-align: justify;">
<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
THE REMEDY: Parents who wish their children to take over
financial operations for them should not choose joint tenancy to aid them. Parents should give the child a
power of attorney to transact the business.
There are two problems with putting a child as a joint tenant on the
account. First, joint tenancy causes the survivor to inherit all after the death of the remaining joint tenant. Accordingly, joint tenancy causes one child to inherit more than all the other children. If the parent wishes for all his/her children to inherit equally, joint tenancy force the opposite result. Second, joint tenancy exposes
the parent to the risk that the joint accounts will be used for the creditors of that
child. While there are statutes to
protect against the wrongful taking of an elderly person's joint account, this frequently
requires court intervention. </div>
<div class="MsoNormal" style="text-align: justify;">
<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<br />
<div class="MsoNormal" style="text-align: justify;">
If you are using joint tenancy,
rather than powers of attorney to aid you in your business affairs, please
consult with an attorney regarding whether this is a good option for you. <o:p></o:p></div>
Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-66107889211520123282015-02-06T11:22:00.001-07:002015-02-06T11:22:54.766-07:00FATAL ESTATE PLANNING MISTAKES<br />
<div class="MsoNormal" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em; text-align: justify;">
<img alt="Clarke will" height="320" src="http://www.sallygunning.com/images/will_1.jpg" width="201" /></div>
<br />
<div align="center" class="MsoNormal" style="text-align: center;">
<i>Wills Without Witnesses<o:p></o:p></i></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<i>This is the second article in the series,
Fatal Estate Planning Mistakes, which focuses on "war stories"
regarding common estate planning mistakes, as seen by a probate and trust
litigator. These stories are meant to
serve as a lesson for the average reader.
If the reader sees this mistake below in his or her estate plan, please
contact Robert Sewell, Esq., to discuss how to remedy the problem.<o:p></o:p></i></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="text-indent: 0.5in;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="text-indent: 0.5in;">THE FATAL FLAW:</span><span style="text-indent: 0.5in;"> </span><span style="text-indent: 0.5in;">Susie goes to the drug store and buys a
will.</span><span style="text-indent: 0.5in;"> </span><span style="text-indent: 0.5in;">She fills in the blanks on the
will.</span><span style="text-indent: 0.5in;"> </span><span style="text-indent: 0.5in;">The will calls for two witnesses
for her signature and a notary.</span><span style="text-indent: 0.5in;"> </span><span style="text-indent: 0.5in;">Susie
believes that two witnesses are optional and chooses only to have one witness
and no notary.</span><span style="text-indent: 0.5in;"> </span><span style="text-indent: 0.5in;">In the will, she gives
her entire estate to her daughter Janice and disinherits her son Victor (an
addict that will use the money on drugs).</span><span style="text-indent: 0.5in;">
</span><span style="text-indent: 0.5in;">The result is that Susie dies intestate, meaning she has no will or
estate plan, because the will was not witnessed by two witnesses.</span><span style="text-indent: 0.5in;"> </span><span style="text-indent: 0.5in;">Victor inherits equal to Janice.</span><span style="text-indent: 0.5in;"> </span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .5in;">
<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="text-indent: 0.5in;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="text-indent: 0.5in;">THE REMEDY:</span><span style="text-indent: 0.5in;"> </span><span style="text-indent: 0.5in;">Creating a will is a right given to you by
the legislature.</span><span style="text-indent: 0.5in;"> </span><span style="text-indent: 0.5in;">This seems counter-intuitive;
however, because so much fraud and deception has been involved with
transferring wealth at death, the legislature insists that for a will to be valid
it must meet certain requirements. Foremost among those requirements is that
the will be signed by the testator whose signature is witnessed by two
witnesses.</span><span style="text-indent: 0.5in;"> </span><span style="text-indent: 0.5in;">Attorneys have successfully
argued that a will which has one witness signature and was notarized can be
made to be valid in court.</span><span style="text-indent: 0.5in;"> </span><span style="text-indent: 0.5in;">However,
there is little case law to support that argument and it will be left to a
judge to evaluate the facts.</span><span style="text-indent: 0.5in;"> </span><span style="text-indent: 0.5in;">It is imperative
to get two witnesses for every will.</span><span style="text-indent: 0.5in;"> </span><span style="text-indent: 0.5in;">Further
it is best to have that will notarized.</span><span style="text-indent: 0.5in;"> </span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="text-indent: 0.5in;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="text-indent: 0.5in;">If your will
lacks two witnesses, you should have the will reviewed by a qualified attorney
to determine its validity.</span><span style="text-indent: 0.5in;"> </span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .5in;">
<o:p></o:p></div>
<br />
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-20828780422224273862015-01-30T11:07:00.001-07:002015-02-11T08:42:45.566-07:00FATAL ESTATE PLANNING MISTAKES<div class="MsoSubtitle" style="text-align: center;">
Trusts Without Pour-Over Wills<o:p></o:p></div>
<div class="MsoNormal" style="text-align: center;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<i>This is the first article in a new series, Fatal
Estate Planning Mistakes, which will focus on “war stories” regarding common estate
planning mistakes, as seen by a probate and trust litigator. These stories are meant to serve as lessons
for the average reader. If the reader
sees the mistake below in his/her estate plan, please contact Robert Sewell, Esq., to
discuss how to remedy the problem. <o:p></o:p></i></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .5in;">
<a href="http://www.davismiles.com/wp-content/uploads/2013/09/Last-Will.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="Last Will" src="http://www.davismiles.com/wp-content/uploads/2013/09/Last-Will.jpg" /></a>THE FATAL FLAW: Frank creates a trust. He titles no assets in the name of trust. He fails to create a pour-over will believing
the trust was enough. Frank disinherits three
of his six children from the trust because he supported these three
disproportionately to the other children during his lifetime. Frank dies believing all his property was in
the trust. The result is that the
disinherited children inherit equally to the other children as Frank is
“intestate,” meaning he has no estate plan.
This situation is not unique.<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .5in;">
THE REMEDY:
Individuals who wish to create a trust should also create a pour-over
will. A trust is a device that presently
allocates property, as identified by the trust maker (“trustor”), to be placed
into the trust. If the trustor does not
title his/her property in the name of the trust, the property is not in the
trust. Rather, upon the testator's
death, the property is in the “estate.” A
pour-over will directs property left outside the trust on the trustor's death
to be poured into the trust after death.
One might argue that another solution is to title everything in the name
of the trust before death; however, whether intentionally or unintentionally, most
individuals leave property out of the trust.
If you have a trust, but do not have a pour-over will, your estate plan
is incomplete. <o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .5in;">
<br /></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .5in;">
(Please
note: I see this estate planning mistake
often when individuals purchase trusts from the internet or from a certified
document preparer. If this is your
situation, please have your estate plan reviewed.)<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .5in;">
<br /></div>
<br />
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-1324841762152597292015-01-23T14:57:00.001-07:002015-01-23T14:57:58.910-07:00FIVE SIGNS YOU NEED A PROBATE AND TRUST ADMINISTRATION ATTORNEY<br />
<div class="MsoNormal" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em; text-align: justify;">
<img alt="trust" height="160" src="http://www.davismiles.com/wp-content/uploads/sites/1/2015/01/beneficiaries_nevada_probate_lawyers_drizin_law-300x240.jpg" width="200" /></div>
<br />
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">A self-represented successor
trustee or personal representative (the “Estate Manager”) often ignores warning
signs that problems are ahead. There are
a number of signs a Estate Manager is will experience problems and possibly
litigation. Here are five signs the Estate
Manager is in trouble and an attorney should be hired: <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: 'Times New Roman', serif; line-height: 115%; text-indent: -0.25in;"><span style="font-family: 'Times New Roman'; font-stretch: normal; line-height: normal;">1. </span></span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: -0.25in;">THE ESTATE MANAGER THINKS THE TRUST
AND/OR WILL ARE A SECRET. The Trust and
Will are not a secret held only by the Estate Manager. Beneficiaries requesting a copy of the Trust
or Will, unless the document says otherwise, should receive the ENTIRE
document. If the Estate Manager makes
the decision to withhold the document, it makes the Estate Manager appear
furtive and beneficiaries lose trust.
When that happens, litigation may be forthcoming. </span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify; text-indent: 0px;">
<span style="font-size: 12pt; line-height: 115%; text-indent: -0.25in;"><span style="font-family: Times New Roman, serif;">2. </span></span><span style="text-indent: -0.25in;"><span style="font-family: Times New Roman, serif;"><span style="font-size: 12pt; line-height: 115%;">THE ESTATE MANAGER IS ACCUSED OF
WRONGDOING. A sign of possible litigation ahead is a beneficiary accusing an Estate
Manager of wrong doing. This can happen even when the Estate Manager has
committed no technical wrong (e.g. he has not stolen the money). At key moments in the administration of a
probate or trust certain things must happen.
An Estate Manager who meets deadlines, provides notice of key events,
and provides proper accounting of the estate/trust, engenders trust, can quiet </span><span style="line-height: 18.3999996185303px;">distractors</span><span style="font-size: 12pt; line-height: 115%;">, and in many cases, can stop litigation before it happens. </span></span></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: -0.25in;"><br /></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify; text-indent: 0px;">
<span style="font-size: 12pt; line-height: 115%; text-indent: -0.25in;"><span style="font-family: Times New Roman, serif;">3. </span></span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: -0.25in;">THE ESTATE MANAGER THINKS TAXES ARE A
PROBLEM ONLY FOR THOSE “RICH GUYS.” Every estate and trust, large or small, must
consider tax issues. For estates and
trusts over 5 million dollars, estate taxes (aka “death taxes”) may be
owed. However, there are other taxable
events. For example, negotiating debts
lower than the face amount owed may cause a taxable event. Significant gifting before the death may
cause a taxable event or, at minimum, reporting of the gifts. The estate/trust making money after the death
may cause a taxable event. The decedent’s last income tax return may need to be
filed. As the saying goes, the only
thing certain is “death and taxes.” </span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: -0.25in;"><br /></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<span style="font-size: 12pt; line-height: 115%; text-indent: -0.25in;"><span style="font-family: Times New Roman, serif;">4. </span></span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: -0.25in;">THE ESTATE MANAGER PAYS BENEFICIARIES BEFORE
PAYING ALL THE DEBTS. Debts are paid
before beneficiaries. This sounds
simple, but frequently it happens in reverse. An Estate Manager must keep
enough money to pay debts and taxes or a lawsuit against the Estate Manager may
be forthcoming. </span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify; text-indent: 0px;">
<span style="font-size: 12pt; line-height: 115%; text-indent: -0.25in;"><span style="font-family: Times New Roman, serif;">5. </span></span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: -0.25in;">THE ESTATE MANAGER GUESSES AT THE
MEANING OF THE ESTATE DOCUMENTS. Frequently,
an Estate Manager does not understand the estate documents so he/she guesses at
the meaning. If the documents are
unclear, an Estate Manager cannot guess at the meaning. He/She must ask the court for instructions. </span></div>
<div class="MsoListParagraphCxSpLast">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoListParagraphCxSpLast">
<span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-align: justify;">These are just 5
warnings signs that the probate or trust administration is heading for
trouble. If you see any of these signs,
either as a beneficiary or Estate Manager, you should immediately contact an
attorney. </span></div>
Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-1348203984304554012014-05-19T10:48:00.000-07:002014-05-19T10:51:15.413-07:00TEAR UP THE WILL—A LESSON REGARDING OLD WILLS<div align="center" class="MsoNormal" style="text-align: center;">
<br /></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .5in;">
Stephen was
brilliant. He graduated top of his class—he
married the prettiest girl in town—his children were all above average—and his
business ventures always succeeded. While
Stephen truly lived well, he died leaving a complicated estate. <o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .5in;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="http://2.bp.blogspot.com/-VAVY9KZQOh8/U3pCoM1QQdI/AAAAAAAAHQE/K0FtOkPK1sE/s1600/Boy+in+Sunset.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="http://2.bp.blogspot.com/-VAVY9KZQOh8/U3pCoM1QQdI/AAAAAAAAHQE/K0FtOkPK1sE/s1600/Boy+in+Sunset.jpg" height="152" width="200" /></a></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .5in;">
When Stephen
died, his children gathered for his funeral.
Afterwards, they entered his study, where Stephen kept his important
papers, and searched for his will. His
will was not found. Instead, they found
a photocopy of a will that was executed ten years previous. The will gave everything to a charity. <o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .5in;">
His children
were aghast. Did he really forget them
and refuse to leave them a legacy? After
all, he had spoken to each child about the money he was leaving for education
of his grandchildren. <o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
Luckily
for the children, they consulted a trusted attorney. The children were informed that courts are
reluctant to probate a copy of a will.
Where only a copy of a will is found, the will is presumed to be revoked
unless proven otherwise. The reason for
this rule is simple: people frequently change their mind about how to divide
their estates on death. Therefore, they
will often revoke the will by tearing it up. <o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .5in;">
According to
<a href="http://www.azleg.gov/FormatDocument.asp?inDoc=/ars/14/02507.htm&Title=14&DocType=ARS" target="_blank">A.R.S. § 14-2507</a>, a person may revoke a will, in whole or in part, by
performing “a revocatory act.” This means,
among other things, that the person who creates the will can revoke the will by
“burning, tearing, cancelling, obliterating or destroying the will or any part
of it.” In Stephen’s case, the children
will rest easy because the original will was never found. If the charity tries to probate the copy of
the will, it will need to prove that Stephen did not revoke the old will,
which is a difficult burden. </div>
<div class="MsoNormal" style="text-align: justify; text-indent: .5in;">
<br /></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .5in;">
It is quite possible that Stephen's Estate will be what's called "<a href="http://www.azleg.gov/FormatDocument.asp?inDoc=/ars/14/02101.htm&Title=14&DocType=ARS" target="_blank">intestate</a>." Accordingly, the children will likely inherit under Arizona law. <o:p></o:p></div>
Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-79178587856703955762013-11-01T10:28:00.000-07:002013-11-01T10:28:08.009-07:00HOW TO PROBATE AN ESTATE AND ADMINISTER A TRUST<div align="center" class="MsoNormal" style="text-align: center;">
(SEVEN MUST-DO STEPS)<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
Probating
an estate or trust is like working on an engine. Each individual process is not complicated;
however, the entire machine must work together for success. Here are seven must-do steps for a personal
representative/trustee to successfully complete the process. <o:p></o:p><br />
<div class="separator" style="clear: both; text-align: center;">
<a href="http://2.bp.blogspot.com/-4d5pe-vnYO4/UnPkZO1QR4I/AAAAAAAACiw/5XpMrZfjpyA/s1600/Family.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://2.bp.blogspot.com/-4d5pe-vnYO4/UnPkZO1QR4I/AAAAAAAACiw/5XpMrZfjpyA/s1600/Family.jpg" height="211" width="320" /></a></div>
</div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
1. <b><u>INVENTORY</u></b>: Make a detailed list of the assets in the
estate and/or trust. Remember, your
family and friends, the other beneficiaries and heirs, will carefully scrutinize
this list. Moreover, a court might also
be scrutinizing this list. Take care
that the list is accurate and complete. <o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
2. <b><u>APPRAISE</u></b>: After you create the inventory of assets, you
must appraise the assets. You likely
will need to hire appraisal experts to appraise the assets. Practically speaking, appraising personal
property with little value can be done in the same manner as appraising items given
to Goodwill. However, things of greater
value should be appraised by professionals.
For real property an appraisal professional for real estate should be
retained. For cars you may use Kelley
Blue Book. If it is a collection, an
expert in that collection should be retained.<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
3. <b><u>DEBTS</u></b>: Identify all the creditors to the estate
and/or trust. Make a list of creditor names,
addresses, account numbers, and how much is owed. Identify statements that prove what was
owed. Keep all this information in a
file by itself as you will need it for the accounting. <o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
4. <b><u>GET
ADVICE</u></b>: Advice from professionals
is will help to successfully complete the process. I recommend working with an attorney who has
a trusted network of advisers including a CPA, real estate sales professionals,
appraisal professionals, and investment advisers. You must determine with your attorney how you
will change the various titles to the assets, how you will handle taxes and
debts, and the legal process by which you will administer the estate or trust. Sometimes, estates are so small that a
shortened procedure for administration can be undertaken. Other times, estates and trusts are so large
and complex that a lengthy court process is necessary to fully administer.<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
5. <b><u>PREPARE
AN ACCOUNTING</u></b>: Preparing an
accurate and complete accounting is an important step in administering the estate
or trust. The beneficiaries and heirs want
to see where the money has been spent. They
want to make certain that you have accurately and completely done your
job. <o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
6. <b><u>PROPOSED
DISTRIBUTION</u></b>: Along with the
accounting you should send out a proposed distribution schedule. Under Arizona law, a person must object to a
proposed distribution in 30 days; otherwise, the devisee/beneficiary will
lose the right to contest the distribution.
Again, you should work with your attorney to make a proposed
distribution that will foreclose objections.
<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
7. <b><u>DISTRIBUTE
AND PAY</u></b>: The final steps are
distributing the estate/trust to devisees/beneficiaries and pay the debts. In this process, I recommend obtaining
receipts and releases wherein the devisees/beneficiaries release you of liability
associated with the estate and trust. <o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-font-size: 11.0pt; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US;"> This
is not an all-inclusive to-do list; however, every trust and/or estate will
need to complete the process above.</span>Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-24579656309565960442013-09-17T17:23:00.001-07:002013-09-18T14:46:57.712-07:00NEW CHANGES TO SMALL ESTATES<div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;">
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="color: #1f497d; font-family: Calibri; font-size: x-small;"><span style="color: #1f497d; font-size: 11pt; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-font-family: Calibri; mso-hansi-theme-font: minor-latin; mso-themecolor: dark2;">I first published the article below on February 4, 2012.<span style="mso-spacerun: yes;"> </span>Since that time there have been major changes to
the law on small estate affidavits.<span style="mso-spacerun: yes;">
</span>The threshold for real property small estates is now less than
$100,000.00 and personal property small estates are now less than
$75,000.00.<span style="mso-spacerun: yes;"> </span>This is good news as more
families can now qualify for the shortened procedures. Accordingly, I decided
to republish the article below with the highlighted updates:<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></div>
<div style="text-align: justify;">
</div>
<b style="mso-bidi-font-weight: normal;"></b><br />
<b style="mso-bidi-font-weight: normal;">TOO SMALL FOR PROBATE<o:p></o:p></b></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
I frequently have people ask me this question:<span style="mso-spacerun: yes;"> </span>Do I need to probate the estate when my loved one had nearly nothing?<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<a href="http://4.bp.blogspot.com/-DdE6QQ14w94/UQ_paov8S7I/AAAAAAAAAc4/177iIIPWNLI/s1600/Will.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="132" src="http://4.bp.blogspot.com/-DdE6QQ14w94/UQ_paov8S7I/AAAAAAAAAc4/177iIIPWNLI/s200/Will.jpg" width="200" /></a>The answer is—like in nearly all legal questions—it depends.<span style="mso-spacerun: yes;"> </span>When an estate is small, Arizona will allow for mini-probates accomplished by affidavit called a “Small Estate Affidavit.”<span style="mso-spacerun: yes;"> </span>To qualify for probate by Small Estate Affidavit the estate and the person signing the affidavit (“affiant”) must meet certain qualifications. There are two types of small estate affidavits:<span style="mso-spacerun: yes;"> </span>(1) Real property, and (2) Personal property.<span style="mso-spacerun: yes;"> </span></div>
<br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;">
<u>Real Property Small Estate Affidavit<o:p></o:p></u></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<o:p> </o:p>To transfer real property by Small Estate Affidavit the estate and affiant must meet these qualifications: </div>
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<o:p> </o:p></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.75in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">1.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span>The affiant must be legally entitled to the property.<o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.75in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">2.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span>The value of all real property, less liens and encumbrances, cannot exceed <span style="color: #990000;">$100,000.00.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.75in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">3.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span>There must be no probate application pending, or it must be over one year from the closing of an estate or discharge of the personal representative, or no personal representative has been appointed in the past year.<o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.75in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">4.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span>Six months must have passed from the decedent’s death.<o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.75in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">5.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span>All funeral expenses, unsecured debt, and taxes must be paid.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<o:p> </o:p></div>
<div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;">
<u>Personal Property Small Estate Affidavit</u><o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
To transfer personal property by Small Estate Affidavit the estate and affiant must meet these qualifications: <o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.75in; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -0.25in;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">1.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span>The affiant must be legally entitled to the property.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.75in; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -0.25in;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">2.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span>The value of all personal property, less liens and encumbrances, cannot exceed <span style="color: #990000;">$75,000.00.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.75in; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -0.25in;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">3.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span>There must be no probate application pending, or it must be over one year from the closing of an estate or discharge of the personal representative, or that no personal representative has been appointed in the past year. <o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.75in; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -0.25in;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">4.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span>Thirty days must have passed from the decedent’s death.<span style="mso-spacerun: yes;"> </span><o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
If you meet the above requirements, a full probate may not be necessary.<span style="mso-spacerun: yes;"> </span>The best way to determine whether you qualify to avoid probate is to discuss the estate with a qualified attorney.<span style="mso-spacerun: yes;"> </span></div>
Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-4817293142091382302013-09-17T11:22:00.002-07:002013-09-17T11:22:54.032-07:00FOUR PROBATE MISTAKES THAT LEAD TO LITIGATION<br />
<div style="text-align: justify;">
<a href="file://fileserv01/UserDocs/rsewell/My%20Documents/My%20Pictures/American%20Flag.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="133" src="file://fileserv01/UserDocs/rsewell/My%20Documents/My%20Pictures/American%20Flag.jpg" width="200" /></a>When someone dies, administering
the person's estate can be a frustrating and an aggravating process.<span style="mso-spacerun: yes;"> </span>Everyone seems to want or need something—beneficiaries—government—courts—creditors—etc.<span style="mso-spacerun: yes;"> </span>The pressure causes people to make
mistakes.<span style="mso-spacerun: yes;"> </span>In my practice, I have noticed
four common mistakes that increase heartache, administrative time, and cause unnecessary
litigation.<span style="mso-spacerun: yes;"> </span>The mistakes are as follows:<o:p></o:p></div>
<div style="text-align: right;">
</div>
<span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;"></span></span><div align="right" style="text-align: justify;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">1.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="mso-spacerun: yes;"> </span><b style="mso-bidi-font-weight: normal;"><u>Keeping Secrets.</u><span style="mso-spacerun: yes;"> </span></b>Sometimes personal representatives resent
providing information to beneficiaries. Instead, the personal representatives want
to keep estate business secret and frequently refuse to provide information.<span style="mso-spacerun: yes;"> </span>This is a mistake.<span style="mso-spacerun: yes;"> </span>Testamentary documents, the status of the
administration, as well as the expenses of the administration are not secrets.<span style="mso-spacerun: yes;"> </span>To the extent reasonable, information
regarding the estate should be made available to the beneficiaries in a timely
manner.<span style="mso-spacerun: yes;"> </span>Providing the information assures
the beneficiaries that the assets are properly managed.<span style="mso-spacerun: yes;"> </span>Moreover, secrets create suspicion while
disclosure creates trust.<o:p></o:p></div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
2.<span style="mso-tab-count: 1;"> </span><b style="mso-bidi-font-weight: normal;"><u>Comingling
Funds.</u><span style="mso-spacerun: yes;"> </span></b>Too often<b style="mso-bidi-font-weight: normal;"> </b>personal representatives put the
deceased’s money in the same account as their own accounts.<span style="mso-spacerun: yes;"> </span>Moreover, personal representatives sometimes
pay personal expenses from the estate.<span style="mso-spacerun: yes;"> </span>This
is a breach of fiduciary duty and creates problems for administration.<span style="mso-spacerun: yes;"> </span>Commingling creates an accounting nightmare
as the money must be tracked.<span style="mso-spacerun: yes;"> </span>It gives
the appearance that the personal representative has stolen the money.<span style="mso-spacerun: yes;"> </span>Lastly, even if the personal representative had
no mal-intent, the appearance of impropriety may invite a lawsuit from the
beneficiaries.<o:p> </o:p></div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
3.<span style="mso-tab-count: 1;"> </span><b style="mso-bidi-font-weight: normal;"><u>Avoiding
the Estate Business</u>.<span style="mso-spacerun: yes;"> </span></b>Avoidance
of the estate business is common place and creates problems down the road.<span style="mso-spacerun: yes;"> </span>Prompt attention to financial and legal
issues of the estate is imperative as deadlines to perform the work frequently
loom.<span style="mso-spacerun: yes;"> </span>Failing to adhere to the deadlines
often increases the cost and complexity of the administration.<span style="mso-spacerun: yes;"> </span><o:p> </o:p></div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
4.<span style="mso-tab-count: 1;"> </span><b style="mso-bidi-font-weight: normal;"><u>Following the Deceased’s Oral Instructions.</u><span style="mso-spacerun: yes;"> </span></b>A personal representative cannot guess at
what the deceased wanted to happen with the property.<b style="mso-bidi-font-weight: normal;"><span style="mso-spacerun: yes;"> </span></b>I often hear clients say
that "Mom told me before she died that she wanted me to have the
house."<span style="mso-spacerun: yes;"> </span>While I understand that mom
may have said that, it has absolutely no bearing on who receives the property
at death.<span style="mso-spacerun: yes;"> </span>If the testator wants to
control assets after death, he/she must make a valid written testamentary
document.<span style="mso-spacerun: yes;"> </span>Without such, the state
intestacy statutes will determine who receives the property.<span style="mso-spacerun: yes;"> </span>Absent agreement from all the
heirs/beneficiaries, a personal representative cannot use oral instructions
from a parent to decide who receives the estate property.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><o:p> </o:p></div>
<div style="text-align: justify;">
</div>
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
If
you recognize any of the actions above in yourself or others, you should
contact an attorney to discuss the matter.<span style="mso-spacerun: yes;">
</span>Probate of an estate is hard work, but does not need to cause
heartache.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-69192333472753179252013-04-12T10:42:00.000-07:002014-02-04T13:32:36.504-07:00PUBLIC CORRUPTION, REALLY?<div style="text-align: justify;">
<span style="mso-tab-count: 1;"> </span>Socrates
was famously charged, convicted, and sentenced to death for the crime of “public
corruption.” Specifically, he was charged with corrupting the youth of Athens.<span style="mso-spacerun: yes;"> </span>It was believed by the jury that Socrates had
encouraged students to follow his chosen path, which was in conflict with the
Athenian form of democracy and the powers at be.<span style="mso-spacerun: yes;"> </span>In other words, Socrates ruffled the wrong
people’s feathers.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
Attorneys can
also ruffle people’s feathers in the aggressive pursuit of a client’s cause and
will often pay a personal price doing so.<span style="mso-spacerun: yes;">
</span>Years ago I represented a small business owner that was wrongfully sued
by an individual.<span style="mso-spacerun: yes;"> </span>I pursued the matter
with my usual attention to detail and aggressive-style litigation.<span style="mso-spacerun: yes;"> </span>After a few months of litigation with David Derringer, the
plaintiff, it became clear that he was so caught up in his
self-righteousness that he would never give up on the cause.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify; text-indent: 0.5in;">
<b>After winning
the action</b> for the business owner, the <b>disgruntled Derringer sued me</b>, my
client, my client’s employees and a number of other individuals.<span style="mso-spacerun: yes;"> </span>In fact, he sued me not less than three times
— two federal court actions and one state court action.<span style="mso-spacerun: yes;"> </span>He took his matter all the way to the Ninth
Circuit Court of Appeals and the Arizona Court of Appeals.<span style="mso-spacerun: yes;"> </span>In fact, he even made a writ of certiorari to
the United States Supreme Court.<span style="mso-spacerun: yes;">
</span>Obviously, the actions were defeated because they were baseless.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="mso-tab-count: 1;"> </span>So,
how does this relate to Socrates?<span style="mso-spacerun: yes;"> </span><b>I was accused
of, among other things, public corruption.<span style="mso-spacerun: yes;">
</span>Derringer has created a website dedicated to the bogus claims of public corruption
allegedly committed by me, Robert Sewell.<span style="mso-spacerun: yes;">
</span><span style="mso-spacerun: yes;"> </span></b><o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
David Derringer,
wherever you are, I view your relentless pursuit of me as a badge of honor.<span style="mso-spacerun: yes;"> </span>I may not be Socrates, but I certainly
pursued a cause in which I believed and successfully defended against your
claims.<span style="mso-spacerun: yes;"> </span>Moreover, I will continue to
aggressively pursue my clients’ causes, even if it results in more ridiculous defamation
against my character. <o:p></o:p></div>
Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-52176647186025835882013-03-26T10:07:00.002-07:002013-03-26T10:07:51.434-07:00OFFERS OF SETTLEMENT – AN IMPROVED LITIGATION WEAPON
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="mso-bidi-font-size: 12.0pt;">I once represented a client who was sued for over $400,000.<span style="mso-spacerun: yes;"> </span>My objective analysis showed that my client actually
owed somewhere between zero and $100,000.<span style="mso-spacerun: yes;">
</span>So, my client offered in writing $100,000 to settle the case.<span style="mso-spacerun: yes;"> </span>That offer, which was rejected, put the
opposing side “on the ropes,” as case became more about beating the $100,000
offer than winning $400,000.<span style="mso-spacerun: yes;"> </span>A
settlement offer can act as a weapon in litigation and turn a losing case into
a winning case.<span style="mso-spacerun: yes;"> </span>As you see, rather than being
a sign of weakness, an early settlement offer can actually turn the tide for a
defendant in a difficult spot.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="mso-bidi-font-size: 12.0pt;">A new law supports early settlement offers
even more strongly. As of January 1, 2013, the Arizona Legislature changed
<a href="http://www.azleg.state.az.us/FormatDocument.asp?inDoc=/ars/12/00341-01.htm&Title=12&DocType=ARS" target="_blank">A.R.S. 12‑341.01</a>, regarding attorneys’ fees in a contract action, to allow
the court to consider written offers of settlement in determining the
reasonableness of attorneys’ fees for the party who is granted judgment.<span style="mso-spacerun: yes;"> </span>Under this statute, if a party that makes an
offer of settlement that is equal to or more favorable than the ultimate award,
then the offeror may be deemed the successful party and, therefore, may be
awarded attorneys’ fees.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>The exact language of the statute reads like this:
<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0.75in 0pt; text-align: justify;">
<span style="mso-bidi-font-size: 12.0pt;">In any contested action arising out of a
contract, express or implied, the court may award the successful party
reasonable attorney fees. <u>If a written settlement offer is rejected and the
judgment finally obtained is equal to or more favorable to the offeror than an
offer made in writing to settle any contested action arising out of a contract,
the offeror is deemed to be the successful party from the date of the offer and
the court may award the successful party reasonable attorney fees</u>. This
section shall not be construed as altering, prohibiting or restricting present
or future contracts or statutes that may provide for attorney fees.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="mso-bidi-font-size: 12.0pt;">In other words, settlement offers can make a losing party the
successful party.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="mso-bidi-font-size: 12.0pt;">Therefore, as a strategy, a defendant with a
difficult case should honestly analyze the case early in the action and determine
what the defendant may owe.<span style="mso-spacerun: yes;"> </span>Thereafter, the defendant should make a settlement
offer to reflect what the plaintiff may win at the end of the litigation. If
the defendant’s guess is ultimately correct, but the plaintiff rejected the
offer, the defendant can lose the case <u>but still collect attorney’s fees</u>.<span style="mso-spacerun: yes;"> </span>At the end, the defendant’s award of
attorneys’ fees could potentially be used to offset the final award. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="mso-bidi-font-size: 12.0pt;">A recent case styled <i style="mso-bidi-font-style: normal;"><u><a href="http://azcourts.gov/Portals/0/OpinionFiles/Div1/2012/1%20CA-CV%2010-0175.PDF" target="_blank">Hall v. Reed Development, Inc.</a></u>,</i> analyzes this very strategy.<span style="mso-spacerun: yes;"> </span>In that matter, the defendant made numerous
settlement offers.<span style="mso-spacerun: yes;"> </span>However, each time
the defendant offered settlement, the settlement offer was significantly less
than the attorneys’ fees plaintiff had incurred at that stage in the litigation.<span style="mso-spacerun: yes;"> </span>The court of appeals reasoned that “we
conclude that comparing the ‘judgment finally obtained’ under Section 12‑341.01(A)
to a settlement offer should involve only those reasonable fees and costs
incurred as of the date the offer was made.” The takeaway from this case is
that a defendant should make a reasonable offer of settlement early and include
the current attorneys’ fees and cost to that point.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<span style="mso-bidi-font-size: 12.0pt;"><o:p> </o:p></span><br />
<span style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US;">Therefore, in a difficult fight, make realistic offers, make them early,
and fight hard if those offers are rejected – even if you “lose” you can still
win!</span>Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-54140354546706983732013-02-04T10:18:00.001-07:002013-09-17T17:16:03.665-07:00<br />
<div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;">TOO SMALL FOR PROBATE<o:p></o:p></b></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
I frequently have people ask me
this question:<span style="mso-spacerun: yes;"> </span>Do I need to probate the
estate when my loved one had nearly nothing?<span style="mso-spacerun: yes;">
</span><o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<a href="http://4.bp.blogspot.com/-DdE6QQ14w94/UQ_paov8S7I/AAAAAAAAAc4/177iIIPWNLI/s1600/Will.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="132" src="http://4.bp.blogspot.com/-DdE6QQ14w94/UQ_paov8S7I/AAAAAAAAAc4/177iIIPWNLI/s200/Will.jpg" width="200" /></a>The answer is—like in nearly all
legal questions—it depends.<span style="mso-spacerun: yes;"> </span>When an estate
is small, Arizona will allow for mini-probates accomplished by affidavit called
a “Small Estate Affidavit.”<span style="mso-spacerun: yes;"> </span>To qualify for
probate by Small Estate Affidavit the estate and the person signing the affidavit
(“affiant”) must meet certain qualifications. There are two types of small
estate affidavits:<span style="mso-spacerun: yes;"> </span>(1) Real property,
and (2) Personal property.<span style="mso-spacerun: yes;"> </span></div>
<br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;">
<u>Real Property
Small Estate Affidavit<o:p></o:p></u></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<o:p> </o:p>To transfer real property by Small
Estate Affidavit the estate and affiant must meet these qualifications: </div>
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<o:p> </o:p></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.75in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">1.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span>The affiant must be legally entitled to the
property.<o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.75in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">2.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span>The value of all real property, less liens and
encumbrances, cannot exceed $75,000.00.<o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.75in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">3.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span>There must be no probate application pending, or
it must be over one year from the closing of an estate or discharge of the
personal representative, or no personal representative has been appointed in
the past year.<o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.75in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">4.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span>Six months must have passed from the decedent’s death.<o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.75in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -0.25in;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">5.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span>All funeral expenses, unsecured debt, and taxes
must be paid.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<o:p> </o:p></div>
<div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;">
<u>Personal Property
Small Estate Affidavit</u><o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
To transfer personal property by Small
Estate Affidavit the estate and affiant must meet these qualifications: <o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.75in; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -0.25in;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">1.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span>The affiant must be legally entitled to the
property.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.75in; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -0.25in;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">2.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span>The value of all personal property, less liens
and encumbrances, cannot exceed $50,000.00.<o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.75in; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -0.25in;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">3.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span>There must be no probate application pending, or
it must be over one year from the closing of an estate or discharge of the
personal representative, or that no personal representative has been appointed
in the past year. <o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.75in; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -0.25in;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">4.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span>Thirty days must have passed from the decedent’s
death.<span style="mso-spacerun: yes;"> </span><o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
If you meet the above
requirements, a full probate may not be necessary.<span style="mso-spacerun: yes;"> </span>The best way to determine whether you qualify
to avoid probate is to discuss the estate with a qualified attorney.<span style="mso-spacerun: yes;"> </span></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<v:shapetype coordsize="21600,21600" filled="f" id="_x0000_t75" o:preferrelative="t" o:spt="75" path="m@4@5l@4@11@9@11@9@5xe" stroked="f">
<v:stroke joinstyle="miter">
<v:formulas>
<v:f eqn="if lineDrawn pixelLineWidth 0">
<v:f eqn="sum @0 1 0">
<v:f eqn="sum 0 0 @1">
<v:f eqn="prod @2 1 2">
<v:f eqn="prod @3 21600 pixelWidth">
<v:f eqn="prod @3 21600 pixelHeight">
<v:f eqn="sum @0 0 1">
<v:f eqn="prod @6 1 2">
<v:f eqn="prod @7 21600 pixelWidth">
<v:f eqn="sum @8 21600 0">
<v:f eqn="prod @7 21600 pixelHeight">
<v:f eqn="sum @10 21600 0">
</v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:f></v:formulas>
<v:path gradientshapeok="t" o:connecttype="rect" o:extrusionok="f">
<o:lock aspectratio="t" v:ext="edit">
</o:lock></v:path></v:stroke></v:shapetype><span style="mso-tab-count: 1;"> </span><span style="mso-tab-count: 1;"> </span><o:p></o:p></div>
Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-60653984638817489752012-11-15T17:05:00.001-07:002012-11-15T17:06:37.825-07:00YOU’RE OUT!—HOW TO DISINHERIT YOUR FAMILY AFTER YOU’RE DEAD<span style="font-family: Calibri;">Every family has that special
family member who causes all the problems—the bad seed—the redheaded step
child—the sponge—etc.<span style="mso-spacerun: yes;"> </span>When mom and dad
die, this bad seed wants to argue about everything, including why he/she
receives a smaller portion of the estate than others.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>The
bad seed just cannot understand why mom or dad would give less to him/her than
the other children.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span></span><br />
<span style="font-family: Calibri;"><span style="mso-spacerun: yes;"></span><o:p></o:p></span><br />
<div style="text-align: justify;">
<span style="font-family: Calibri;">To defend against the bad seed
and to protect the other people receiving bequests from the estate, attorneys place
poisonous pills in the will or trust to disinherit the bad seed if he/she files
a lawsuit to protest the estate plan or the administration of the estate. <span style="mso-spacerun: yes;"> </span>These clauses are called “<i style="mso-bidi-font-style: normal;">in terrorem</i>” clauses.<span style="mso-spacerun: yes;"> </span>These clauses are designed to “frighten” or
cause “terror” in the bad seed so as to dissuade the bad seed from filing the
lawsuit.<span style="mso-spacerun: yes;"> </span>The reason this is so important
is that lawsuits frequently deplete the estate for every other beneficiary of
the estate.<span style="mso-spacerun: yes;"> </span></span></div>
<div style="text-align: justify;">
<span style="font-family: Calibri;"><span style="mso-spacerun: yes;"></span><o:p></o:p></span> </div>
<div style="text-align: justify;">
<span style="font-family: Calibri;">In <i style="mso-bidi-font-style: normal;"><a href="http://azcourts.gov/Portals/0/OpinionFiles/Div1/2012/1CA-CV%2011-0499-2.pdf" target="_blank">Stewart v. Stewart</a></i>, et al., a case decided on September 27, 2012,
the Arizona Court of Appeals reversed a trial court that ruled against a
particularly harsh <i style="mso-bidi-font-style: normal;">in terrorem </i>clause.
The clause was so harsh that a beneficiary who “cooperates or aids” another in
contesting the will or trust was disinherited. <span style="mso-spacerun: yes;"> </span>The trial court ruled that such a broad clause
violated the public policy of Arizona because Arizona Revised Statute <span id="goog_2096724534"></span><a href="http://www.blogger.com/">14-2517<span id="goog_2096724535"></span></a>,
along with case law interpreting it, allows for good faith attacks on wills or
trusts, even if unsuccessful.<span style="mso-spacerun: yes;"> </span></span></div>
<div style="text-align: justify;">
<span style="font-family: Calibri;"><span style="mso-spacerun: yes;"></span></span> </div>
<div style="text-align: justify;">
<span style="font-family: Calibri;"><span style="mso-spacerun: yes;"></span></span><span style="font-family: Calibri;">In reversing the decision, the
Court of Appeals reasoned that the clause only applied to beneficiaries who
“voluntarily cooperate or aid a party to contest” the will or trust.<span style="mso-spacerun: yes;"> </span>The Court of Appeals further reasoned that a
party that brings the lawsuit with probable cause and in good faith has no
reason to fear the <i style="mso-bidi-font-style: normal;">in terrorem </i>clause<i style="mso-bidi-font-style: normal;"> </i>as current Arizona law supports those
attacks.<span style="mso-spacerun: yes;"> </span>The Court explained that if a
reasonable person at the time of the challenge would have believed there was a
substantial likelihood of success for a contest or attack, then the <i style="mso-bidi-font-style: normal;">in terrorem </i>clause will have no
force.<span style="mso-spacerun: yes;"> </span></span></div>
<div style="text-align: justify;">
<span style="font-family: Calibri;"><span style="mso-spacerun: yes;"></span></span> </div>
<div style="text-align: justify;">
<span style="font-family: Calibri;"><span style="mso-spacerun: yes;"></span></span><span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">In making this decision, the Court of Appeals
provided significant support to <i style="mso-bidi-font-style: normal;">in
terrorem </i>clauses and, therefore, increased ammunition against bad
seeds.<span style="mso-spacerun: yes;"> </span>So, do you have a bad seed in
your family?<span style="mso-spacerun: yes;"> </span>If so, a properly drafted <i style="mso-bidi-font-style: normal;">in terrorem </i>clause will aid in limiting the
damage from a lawsuit after you die.</span></div>
Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-2993068188103208132012-07-27T13:07:00.001-07:002012-07-27T13:07:36.543-07:00ARIZONA SUPREME COURT HELPS BANKS VICTIMIZED BY FORECLOSURES<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">U.S. banks have become victims of the foreclosure crisis.<span style="mso-spacerun: yes;"> </span>Given today’s political environment, it is hard to think of banks as victims of anything.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>However, during this foreclosure crisis, overly-creative attorneys, misguided consumer advocates, and desperate homeowners filed numerous lawsuits against banks on the false legal theory commonly called “Show Me the Note.”<span style="mso-spacerun: yes;"> </span>In <i style="mso-bidi-font-style: normal;"><a href="http://www.azcourts.gov/Portals/0/OpinionFiles/Supreme/2012/CV110115PR.pdf" target="_blank">Hogan v. Washington Mutual Bank</a></i>, decided July 11, 2012, the Arizona Supreme Court debunked the Show Me the Note theory and concluded that banks must simply follow the current foreclosure laws as written.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">Under the Show Me the Note theory, the homeowner admits he/she is in default but still files a lawsuit claiming that the bank cannot foreclose unless it “shows possession of, or otherwise documents its right to enforce, the underlying note.”<span style="mso-spacerun: yes;"> </span>As the theory goes, the promissory note and the deed of trust “go together” and “must be construed together;” therefore, proving mutual possession of the original promissory note and the deed of trust is mandatory before foreclosure begins.<span style="mso-spacerun: yes;"> </span>Frequently, the homeowner will allege that the bank must produce the “wet ink” signature on the promissory note and not simply a photocopy.<span style="mso-spacerun: yes;"> </span>At the end, the homeowner seeks to own the home free of the bank without paying off the promissory note.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">This theory is baseless and was advanced by attorneys who did not understand the foreclosure laws or were abusing the system.<span style="mso-spacerun: yes;"> </span>However, the cases were so pervasive that the Arizona Supreme Court took up the issue.<span style="mso-spacerun: yes;"> </span>The Arizona Supreme Court explains as follows:<span style="mso-spacerun: yes;"> </span><o:p></o:p></div><br />
<div class="MsoNormal" style="margin: 0in 49.5pt 0pt 0.75in; mso-layout-grid-align: none; text-align: justify;"><span style="mso-spacerun: yes;"> </span>. . . t<span style="mso-bidi-font-size: 12.0pt;">he note and the deed of trust are . . . distinct instruments that serve different purposes. The note is a contract that evidences the loan and the obligor’s duty to repay. <i>See </i>A.R.S. § 33-801(4). The trust deed transfers an interest in real property, securing the repayment of the money owed under the note. <i>See </i>A.R.S. §§ 33-801(4), -801(8), -801(9), -805, -807(A). The dispositive question here is whether the trustee, acting pursuant to its own power of sale or on behalf of the beneficiary, had the statutory right to foreclose on the deeds of trust. <i>See Cervantes v. Countrywide Home Loans, Inc</i>., 656 F.3d 1034, 1043-44 (9th Cir. 2011)<o:p></o:p></span></div><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-layout-grid-align: none; text-align: justify;"><span style="mso-bidi-font-size: 12.0pt;"><o:p> </o:p></span><span style="mso-bidi-font-size: 12.0pt;">In other words, the Court is saying “you don’t get it.”<span style="mso-spacerun: yes;"> </span>The underlying message is that when the homeowner fails to pay on the promissory note, the deed of trust may be foreclosed, regardless of who “owns” deed of trust and regardless of whether the deed of trust and promissory note are owned by the same person.<span style="mso-spacerun: yes;"> </span>The deed of trust and promissory note are not dependent upon each other.<span style="mso-spacerun: yes;"> </span>Homeowners facing foreclosure can recover and find solutions; however, filing a Show Me the Note lawsuit will not help.<span style="mso-spacerun: yes;"> </span></span><o:p></o:p></div>Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-56120815221192126172012-07-20T12:13:00.001-07:002012-07-20T12:13:52.595-07:00THE POWER OF SEDUCTION AND A DYING MAN’S WILL<div style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">Nothing looks more suspicious,
though quite common, than the dying man who makes a deathbed will.<span style="mso-spacerun: yes;"> </span>It is the stuff of Hollywood.<span style="mso-spacerun: yes;"> </span>Picture the elderly man summoning his lawyer to
his deathbed.<span style="mso-spacerun: yes;"> </span>The lawyer drafts the will
as the invalid dictates the contents.<span style="mso-spacerun: yes;">
</span>The invalid declares that his entire estate shall pass to his wicked mistress—a
young looker and manipulative gold digger.<span style="mso-spacerun: yes;">
</span>The scarlet woman places the pen in the man’s hand and firmly demands, “sign
it.”<span style="mso-spacerun: yes;"> </span>The will is signed.<span style="mso-spacerun: yes;"> </span>The priest reads the testator’s last rites as
his soul leaves his body.<span style="mso-spacerun: yes;"> </span>His faithful
children are now destitute.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span></span></div>
<div style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="http://4.bp.blogspot.com/-Qq5aGlMitgg/UAms8UzfGYI/AAAAAAAAAcU/XYXleXCahQI/s1600/Will.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="200" src="http://4.bp.blogspot.com/-Qq5aGlMitgg/UAms8UzfGYI/AAAAAAAAAcU/XYXleXCahQI/s200/Will.jpg" width="142" /></a></div>
<div style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">Of course, a lawsuit will
follow.<span style="mso-spacerun: yes;"> </span>The faithful children accuse the
mistress of unduly influencing their father and demanding, in court, that the
judge refuse the will.<span style="mso-spacerun: yes;"> </span>After all, why would
a loving father not provide for his children at death?<span style="mso-spacerun: yes;"> </span>Had the mistress not used her seductive powers
and lies to poison the mind of their father, the children would enjoy a
profitable future.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span></span><span style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">Unfortunately for the children, a woman’s seduction
alone is not enough to invalidate a will. </span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">In the case of<i style="mso-bidi-font-style: normal;"> Parrisella v. Fotopulos, </i>111 Ariz. 4,
6, 522 P.2d 1081, 1083 (Ariz. 1974), the Arizona Supreme Court defines “undue
influence” as follows: <o:p></o:p></span></div>
<div style="text-align: justify;">
</div>
<div class="MsoNormal" style="margin: 0in 0.5in 10pt; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">Conduct by which a person unduly
influences a testator in executing a will, when that person through his power
over the mind of the testator makes the latter’s desires conform to his own,
thereby overmastering the volition of the testator.<o:p></o:p></span></div>
<div style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">The court reasoned that
a woman’s seductive power does meet this standard: <o:p></o:p></span></div>
<div style="text-align: justify;">
</div>
<div class="MsoNormal" style="margin: 0in 0.5in 10pt; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">It is settled law of this state
that [an] illicit relationship is not sufficient per se to warrant a conclusion
of undue influence.<span style="mso-spacerun: yes;"> </span>And no presumption
of undue influence arises merely from the fact that a man<span style="mso-spacerun: yes;"> </span>. . . makes a will in favor of his mistress.”<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<div style="text-align: justify;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">Id.
(citations omitted</span></i><span style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">).<span style="mso-spacerun: yes;">
</span></span><span style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">So, unlike in the
movies, in real life, the wicked mistress just might win.<o:p></o:p></span></div>
<div style="text-align: justify;">
</div>Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-49900705457013496502012-03-08T12:01:00.000-07:002012-03-08T12:09:21.376-07:00A DEAL IS NOT A DEAL UNTIL IT’S A DEAL<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">PROBATE</i></b>.<span style="mso-spacerun: yes;"> </span>The word is often synonymous with controversy and has been for hundreds of years.<span style="mso-spacerun: yes;"> </span>Probate can pit brother against brother, mother against child, cousin against uncle, etc., in ugly legal battles that last years.<span style="mso-spacerun: yes;"> </span>Charles Dickens’ famous novel “<a href="http://en.wikipedia.org/wiki/Bleak_House" target="_blank">Bleak House</a>” fictionalized such a probate battle styled <i style="mso-bidi-font-style: normal;"><a href="http://en.wikipedia.org/wiki/Jarndyce_v_Jarndyce" target="_blank">Jarndyce v. Jarndyce</a></i>, in the <a href="http://en.wikipedia.org/wiki/Court_of_Chancery" target="_blank">Court of Chancery of <country-region w:st="on"><place w:st="on">England</place></country-region></a>, a case lasting so long the legal fees exhausted the means of the entire estate. </div>
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
The case of <i style="mso-bidi-font-style: normal;"><a href="http://www.apltwo.ct.state.az.us/Decisions/CV20100149Opinion.pdf" target="_blank">In re Estate of Mary A. Riley</a></i>, 2-CA-CV2010-0149, may not be <i style="mso-bidi-font-style: normal;">Jarndyce v. Jarndyce</i>, but it illustrates the problems that can be found in probate battles.<span style="mso-spacerun: yes;"> </span><i style="mso-bidi-font-style: normal;">In re Riley</i> involves an estate with 13 potential beneficiaries who are battling over “inaccuracies” in the proposed accounting and distribution of the estate’s assets.<span style="mso-spacerun: yes;"> </span>Apparently, 4 of the 13 beneficiaries reached an agreement to which the others could not agree.<span style="mso-spacerun: yes;"> </span>The court, however, approved the compromise.<span style="mso-spacerun: yes;"> </span></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
On appeal, the Arizona Court of Appeals, Division 2, ruled that pursuant to A.R.S. § 14-3952(1) a compromise is not a compromise unless everyone agrees and signs to the terms.<span style="mso-spacerun: yes;"> </span>Quoting the Court:</div>
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin: 0in 0.75in 0pt; text-align: justify;">
Section 14-3952(1) requires the compromise to be ‘executed by all competent persons . . . having beneficial interests or having claims which will or may be affected by the compromise.’ . . . [A] compromise that has not be executed by all the persons with beneficial interests in the estate is void.<span style="mso-spacerun: yes;"> </span></div>
<div class="MsoNormal" style="margin: 0in 0.75in 0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
At the end of the day the result of the ruling means that the beneficiaries just keep fighting it out in court.<span style="mso-spacerun: yes;"> </span>I wish the parties a speedy conclusion to this matter.<span style="mso-spacerun: yes;"> </span></div>Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0tag:blogger.com,1999:blog-8657830142789204932.post-56425060672435470472011-12-20T15:19:00.001-07:002017-10-23T14:01:51.379-07:00CHANGES TO ARIZONA’S JUDGMENT RATES OF INTEREST<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
If you are an attorney that represents creditors in debt collections, whether it be large commercial notes or <span style="mso-spacerun: yes;"> </span>small private notes, your practice will be affected by recent changes to <a href="https://www.azleg.gov/ars/44/01201.htm" target="_blank">A.R.S. § 44‑1201</a>, regarding judgment rates of interest.<span style="mso-spacerun: yes;"> </span>This is how I interpret the statute:</div>
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.25in; mso-list: l0 level1 lfo1; tab-stops: list 1.25in; text-align: justify; text-indent: 0.5in;">
<b style="mso-bidi-font-weight: normal;"><span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">A.<span style="font-family: "times new roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;">Loans with a stated rate of interest:</b><span style="mso-spacerun: yes;"> </span>If plaintiff is seeking to collect on a loan, indebtedness or other similar obligation and the parties have a rate of interest contracted for in the writing, the rate of interest in that writing will apply.<span style="mso-spacerun: yes;"> </span>See A.R.S. § 44‑1201(A).</div>
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.25in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.25in; mso-list: l0 level1 lfo1; tab-stops: list 1.25in; text-align: justify; text-indent: 0.5in;">
<b style="mso-bidi-font-weight: normal;"><span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">B.<span style="font-family: "times new roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;">Loans without a stated rate of interest:</b><span style="mso-spacerun: yes;"> </span>If plaintiff is seeking to collect on a loan, indebtedness, or other similar obligation, which rate of interest is not contracted for in writing, plaintiff will apply the rate of 10% per annum to that loan.<span style="mso-spacerun: yes;"> </span>See A.R.S. § 44‑1201(A).</div>
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.25in; mso-list: l0 level1 lfo1; tab-stops: list 1.25in; text-align: justify; text-indent: 0.5in;">
<b style="mso-bidi-font-weight: normal;"><span style="mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">C.<span style="font-family: "times new roman";"> </span></span></span></b><b style="mso-bidi-font-weight: normal;">All other amounts on a judgment:</b><span style="mso-spacerun: yes;"> </span>All other amounts on a judgment, including attorneys' fees, costs, and damages not found in A or B above, will bear interest at either the rate contracted for in writing or prime rate, plus 1 percent, as identified by the Federal Reserve Statistical Release H.15, on the date of judgment.<span style="mso-spacerun: yes;"> </span>A hyperlink to this Federal Reserve rate is found <a href="http://www.federalreserve.gov/releases/H15/update/default.htm" target="_blank">here</a>.<span style="mso-spacerun: yes;"> </span>See A.R.S. § 44‑1201(B).<span style="mso-spacerun: yes;"> </span></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">
These are significant changes from the old statute.<span style="mso-spacerun: yes;"> </span>I urge you to review the statute.<span style="mso-spacerun: yes;"> </span>Also, if you interpret the statute differently, please comment to this article.<span style="mso-spacerun: yes;"> </span>The statute has caused some debate on how to interpret the words in unique cases. Moreover, each attorney I have talked with about these changes has come to a different conclusion. </div>
Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com1tag:blogger.com,1999:blog-8657830142789204932.post-74362160738103992302011-06-03T16:55:00.002-07:002011-06-03T17:00:58.575-07:00MORE FORECLOSURE TROUBLES FOR BANKS<div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;"><em>Banks Must Give 90 Days Written Notice </em><br />
<em>Before An Eviction Action</em></div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">When a bank forecloses on property, the legal issues that follow can be sticky. I frequently get questions about a bank’s obligation toward a tenant following a foreclosure.<span style="mso-spacerun: yes;"> </span>The scenario is as follows:<span style="mso-spacerun: yes;"> </span>Tenant is paying his/her rent every month.<span style="mso-spacerun: yes;"> </span>The landlord is not paying the mortgage every month.<span style="mso-spacerun: yes;"> </span>The landlord falls in default and the bank forecloses.<span style="mso-spacerun: yes;"> </span>That is when the problems start.<span style="mso-spacerun: yes;"> </span>The bank's goal is to evict the tenant as soon as possible, while the tenant wishes to stay in the property.<span style="mso-spacerun: yes;"> </span></div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">So what are the tenant's rights and the bank's obligation following a foreclosure?<span style="mso-spacerun: yes;"> </span>After a foreclosure, the tenant has the right to stay in the property 90 days following written notice from the bank informing the tenant that they will be evicted in 90 days.<span style="mso-spacerun: yes;"> </span>It is not enough that the bank simply wait 90 days to foreclose.<span style="mso-spacerun: yes;"> </span>The bank must provide written notice that the tenant has 90 days to vacate the property before an eviction action is filed.<span style="mso-spacerun: yes;"> </span></div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">This point of law was confirmed in the case of <i style="mso-bidi-font-style: normal;"><a href="http://azcourts.gov/Portals/89/opinionfiles/CV/CV100177.pdf">Bank of <state w:st="on"><place w:st="on">New York</place></state> Melon v. Patricia de Meo</a>,</i> which was decided by the Arizona Court of Appeals in May 2011.<span style="mso-spacerun: yes;"> </span>In this matter, the bank foreclosed on the landlord and one day later the bank provided a standard five-day written notice for the tenant to vacate the property.<span style="mso-spacerun: yes;"> </span>Thereafter, the bank waited 90 days prior to bringing an action for forcible detainer.<span style="mso-spacerun: yes;"> </span>The Court of Appeals ruled that the trial court erred in evicting the tenant because the bank failed to provide a 90-day written notice to vacate.</div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">The lesson to foreclosing banks is that it is not enough to provide the standard five-day notice provided in the Arizona Landlord-Tenant Act.<span style="mso-spacerun: yes;"> </span>The bank must provide a 90 day written notice.<span style="mso-spacerun: yes;"> </span>It is also not enough that a bank simply wait 90 days prior to filing the action.<span style="mso-spacerun: yes;"> </span>The lesson to a tenant is that he/she need not vacate after 90 days.<span style="mso-spacerun: yes;"> </span>A tenant must only vacate after receiving 90 days written notice of termination.<span style="mso-spacerun: yes;"> </span></div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;">If you are a tenant or bank and in need of a landlord-tenant attorney, I urge you to contact me where I can make a proper recommendation for your needs.<span style="mso-spacerun: yes;"> </span></div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><br />
</div>Robert Sewellhttp://www.blogger.com/profile/11920840980772173328noreply@blogger.com0