Foresight Legal – America's Online Law Firm

What is a power of attorney? And do I need one?  A Power of Attorney for Financial Affairs gives your designated agent(s) the authority to make legally binding financial decisions and transactions on your behalf, usually when you cannot manage your own affairs due to incapacity.  If you own any financial assets in your own name alone, without a joint tenant or an authorized signer, then yes, you need to designate a power of attorney.  Without one, no one is legally authorized to access those accounts to make management or withdrawal decisions on your behalf in the event you become incapacitated.

Another reason to designate a Power of Attorney?  IRAs and 401k’s.  These are considered individually owned assets and you cannot access your spouse’s IRA or 401k (to make management or withdrawal decisions) without being authorized to do so under a Power of Attorney. Similarly, your spouse cannot access your IRA or 401k in the event you were to become incapacitated without a Power of Attorney in effect.

There are risks to designating a Power of Attorney, so you need to pick carefully.  An experienced Estate Law attorney can help you make the right decision and walk you through the process.  The knowledgeable attorneys at Foresight Legal Group will make sure that the person you designate to have access to your financial accounts and records is the best person for the job.

Contact the Foresight Legal Group for more information on Power of Attorneys and to see if designating one is right for you.

Are you considering starting your own business?  Great!  The Federal Reserve announced yesterday that they will be keeping short-term interest rates low (sending the stock market into a panic), continuing to make it possible for entrepreneurs just like you to potentially get a small business loan!  It is time for you to take that great idea you’ve been mulling over and make some money off of it!

There are several important steps you must take when you are considering starting your own business.  While hiring an attorney is not necessary, it’s probably wise.  You will face a number of legal issues and you will probably feel that much more comfortable knowing that an experienced start-up attorney has your back.  Also, having a knowledgeable business formation attorney on your team will save you time and energy.  There are forms every new business must complete, and the smallest error means a delay for you in getting your new business up and running.  Avoid this potential nuisance with the help of Foresight Legal.

Ready to get started?  Great!  First step is writing up a business plan.  Be detailed and thorough, as your potential lenders will be reviewing it carefully.  The experienced attorneys at Foresight Legal can go over your business plan with you before you meet with banks about obtaining a small business loan.

So get to work on that business plan!  We will be back with information on how to choose the right legal structure for your business… A very important decision.  Be sure to check our blog regularly for small business updates!

Gossip websites and magazines are abuzz with speculation that the gorgeous Scarlett Johansson and the equally handsome Ryan Reynolds are rekindling their romance, just one month after their divorce was finalized.  Scar Jo and Ryan were married for three years, before they split over what sources claimed were Scarlett’s reluctance to start a family.  However, after her short rebound to Sean Penn fizzed, it seems like Scar Jo has realized what is important to her and that the grass is not always greener.  There have been intimate dinners and lots of texting between the two… Stay tuned to see if the famous celebrity rekindles their relationship, like many other divorced couples have done and continue to do.

What we will refer to as the ‘Re-Marry Your Ex’ Phenomenon occurs more often than you might realize.  Many celebrities have remarried their famous exes — Elizabeth Taylor and Richard Burton, Eminem and Kim Burton, Marie Osmond and Brian Blosil — and psychiatrists believe that many non-famous men and women rekindle about 10% of the time.  Additionally, these reunited couples have a 72% success rate in their second marriage to each other.

So why do couples divorce if they are just going to get back together?  Good question.  Often one, or both, spouses believe that the grass will be greener on the other side.  Generally, it isn’t.  Also, being married isn’t always easy… Sometimes people assume the difficulties are tied to their partner, which is often not the case.  Additionally, as we have talked about before, many married couples fight over finances and other issues that can be addressed and resolved before the wedding day with the use of a prenup.

Studies show that many divorced men and women pine for their exes, even if they don’t get back together.  Foresight Legal, your online law firm, encourages you to avoid this potential sadness by being proactive and engaging in pre-wedding legal counseling.  One of the experienced attorneys at Foresight Legal will assist you in making the best decisions for your marriage; whether it be a pre-nup, post-nup, or just good old-fashioned advice!

Call or email Foresight Legal today!

Sometimes clients tell me they’ve either loaned money to their children or their children have loaned money to them. As an attorney, I lean toward having these commitments reduced to writing so everyone is clear and there are no surprises. Of course, the decision to put the agreement in writing is ultimately left up to the clients, but there are several issues to consider with any family loan.

First, regardless of whether its written down, family members should still be charged interest. If you charge below the rate, or make an interest-free loan, the IRS may impute the difference as interest earned and consider it taxable income. In some cases, the IRS could characterize the entire loan as a gift, subject to gift tax.

An acceptable interest rate for the IRS is the “Applicable Federal Rate” or AFR. You can check out those rates by following this link. The imputed interest rules don’t apply to loans of less than $10,000.  You can read much more about related-party transactions and the below-market interest rules in IRS Publication 550 at the IRS website.

Second, the promissory note should include all of the following elements:

• The loan amount.
• A definite payment date or dates.
• A stated rate of interest.
• Collateral or security.

Third, you might consider taking the awkward moments out of a family loan by having a third party administer it. For a $99 fee, Virgin Money formalizes the agreement you and takes care of the paperwork. For $199 plus $9 per payment, they’ll also electronically collect payments from the borrower’s bank account and credit yours. For $14.95, LoanBack will generate a promissory note and pay schedule, but won’t help you collect.

Fourth, from an estate planning standpoint, it is much better to put these agreements in writing to provide a paper trail for the executor or trustee to piece together who owes what and to whom.

Hope this helps.

With unanimous votes in the State Assembly and State Senate last week, the California Legislature sent Gov. Arnold Schwarzenegger a bill designed to protect companion animals after their owners’ death.

“Pets are an important part of the American family,” Sen. Leland Yee said in a statement. “SB 685 will make pet trusts enforceable and assure that the wishes of pet owners are respected.”

“Wills and trusts are the means for people to bestow their possessions and savings as they see fit,” Yee said. “Under SB 685, a pet owner will be assured that their pet will be properly cared for after their passing while also ensuring that kin are not burdened with undue pressure.”

The bill will ensure those pets designated within the trust are protected and cared for as the owner intended and are not sent unnecessarily into the shelter system. Funds left over after the animal’s life may be donated, using the trust’s instructions, to animal related charities.

Tom Martin is an estate planning attorney in downtown Long Beach. Call Tom today to schedule your complimentary consultation on how you can protect your pet’s future: (562) 219-3290.

I was puttering around Google the other day and noticed there’s a new free service that allows you to organize your medical records online. Here’s a tour of what it can do.

In working with injured or disabled clients, I know that gathering medical records can be time consuming and frustrating. In essence, medical records are “land locked” in different medical institutions with different proprietary data systems and different terminology.

Google Health provides an alternative. In their own words:

“Google Health puts you in charge of your health information. It’s safe, secure, and free.

• Organize your health information all in one place
• Gather your medical records from doctors, hospitals, and pharmacies
• Keep your doctors up-to-date about your health
• Be more informed about important health issues”

I know some of you are asking yourself (as did I) how secure can this service be? Especially when it comes to something as personal as health issues. Google states: “So is it safe? Yes! We believe that your health information belongs to you, and you should decide how much you share and whom you share it with. We will never sell your data. We store your information securely and privately.”

Try it out. Let me know what you think!