Monthly Archives: September 2016

Tasks a Business Lawyer in Sanford NC Can Handle for Small Businesses

A business lawyer in Sanford NC can assist small businesses in a number of meaningful tasks.  This early assistance allows a small business owner to start off on the right foot.  Some of the key ways that a business lawyer in Sanford NC can assist include:

Choose a Business Entity Type

There are various types of businesses that the business owner may want to consider.  Each different type has different effects on liability and on the tax structure of the business.  Forming a corporation is often much more complex in nature than forming a sole proprietorship, partnership or limited liability corporation.  A business lawyer can help prepare articles of incorporation and assist with instructing business owners of how the corporation must be managed to maintain its separate identity.

Filing a Trademark, Patent or Other Intellectual Property

Intellectual property filings are best handled by a professional.  Patent applications are complex and thorough.  Some people wait years after filing for a patent before they are ultimately approved.  When a business selects its name and trademark, it must ensure that it does not infringe on someone else’s intellectual property.  Additionally, a business owner will not want to devote time and money in support of a name that it will later need to abandon.

Creating Contracts

Businesses may need contracts for a variety of reasons, including contracts with vendors, buy-sell agreements for business members or shareholders, non-disclosure agreements when third parties are consulted about something new in the business and employment contracts.  Businesses may also need contracts to purchase or sell assets and real estate.

Litigation

Businesses may be subject to lawsuits from employees, partners, customers or others.  If the business is sued, a business lawyer may assist with protecting the legal interests of the business.

Trusts and Estates Attorney in Sanford NC Explains Grantor Retained Annuity Trust

A trusts and estates attorney in Sanford NC can explain the possibility of using more complex types of trusts.  One such trust that a trusts and estates attorney in Sanford NC may recommend is that of a grantor retained annuity trust.

A grantor retained annuity trust is a special type of trust that allows the grantor to receive income from the tax while minimizing tax liability.  The grantor receives annuity payments from the trust for the number of years specified in the trust.  This income is derived from the interest from the assets that comprise the trust.

A grantor retained annuity trust is not for everyone.  It makes the most sense to use this type of trust when the grantor’s estate would exceed the federal exclusion amount.  This type of trust serves as a freeze transaction and is optimized in a low interest rate environment.  The value of the gift is ultimately reduced to that of the remainder interest after the annuity income transfers.

The grantor pays the income tax that is generated from the income of the trust, similarly as if the asset would be in the name of the grantor.  Therefore, the beneficiary does not have to pay any income tax for the gift.  There are certain ways to maximize the use of this type of trust as a wealth transfer tool. This includes incorporating rapid appreciation during the term of the trust, optimizing gift tax valuation discounts and using cascading grantor retained annuity trusts or sequential trusts.  This is accomplished when a person establishes an initial trust for a certain term.  When the income is received from this trust, a second trust is established with those funds.  Then, the income from both trusts are established to form a third trust.  In this manner, both the assets and the income may eventually be transferred to heirs without gift tax implications.

Essential Roles of a Probate Attorney in Broadway NC

A probate attorney in Broadway NC serve many important roles.  The most significant one is the assistive role with the estate’s personal representative.  A probate attorney in Broadway NC helps with the probate process from start to finish.  Some of the essential roles he or she performs include:

Locating Assets

A probate lawyer can review the will, trust and other documents in order to identify probate assets and non-probate assets.  This can help ensure that money and other assets are not accidentally forfeited or forgotten.

Evaluating Assets

A significant process involved in probate is determining the value of various assets.  A probate lawyer has contacts with professional appraisers and can seek a professional appraisal to support the documents that the personal representative submits to the court.

Requesting Court Permission

Once the values of certain assets are known, the beneficiaries may prefer to have the monetary value of the asset rather than the asset itself.  He or she may request the court’s permission to sell certain assets including real estate and may assist with the contracts associated with these sales.

Retitling Assets

A probate attorney may also help with retitling real estate and other assets to effectuate the legal transfer.

Preparing Tax Documents

The probate lawyer may also assist with determining whether estate taxes or inheritance taxes will be due.  He or she can determine where these funds will derive from.  Additionally, he or she may address any income tax issues.

Payment of Bills

A probate attorney may also advise on the payment of final bills after creditors have been notified of the testator’s death.

Preparing Documents for the Court

A probate attorney may assist with preparing the various accountings and other documents required by the probate court.  He or she can also ensure that filing deadlines are met.

Creative Provisions a Real Estate Attorney in Broadway NC Can Add to a Purchase Agreement

A real estate attorney in Broadway NC is intimately familiar with how competitive the housing market can be.  Sometimes the difference between whether or not a sale goes through is how sweet the provisions are for the seller.  A real estate attorney in Broadway NC may add the following provisions to your sales agreement:

No Inspection Clause

While many people want to perform a home inspection before a purchase is made and this is generally advised, these inspections can sometimes be a way to stall the deal or ask for a price reduction.  If you have a reason not to request an inspection, such as already having a home warranty, planning to purchase the lot for the land or stripping the home down to its studs for a complete overhaul, you may decide to do without this clause.

Rent-Back Agreement

Sometimes a seller wants to be assured that the sell goes through before actually looking for another home.  If he or she plans to buy the next home, the seller may be concerned about having to carry two mortgages at once.  Agreeing to rent the home back to the seller gives the seller the needed equity in the home to enter his or her own purchase contract while also allowing him or her to only have to move once.

Easement

In some instances, a seller may need to access adjacent land.  For example, if he or she maintains a business on a separate building on the land or maintains framing land, granting an easement to the seller can provide additional time for him or her to secure new land for these business purposes.  The easement may contain a specific expiration date so that the travel through the land is not indefinite.