Welcome …

Welcome to my blawg, and thank you for stopping by!  I’m Jeff Aman, the founding attorney and owner of Aman Law Firm. We enjoy the privilege of practicing law and serving the legal needs of our clients in the Tampa Bay area.  As part of my law practice, it is important to me to keep up with current trends and information relevant to my chosen practice areas.

A “blawg” is a web-log or “blog” about the law.  This blawg is a record of and expression of my personal interaction with the law and the practice of law. Honestly, my blawg is mainly a place to keep my thoughts organized and expressed. Second, I hope it serves as a helpful resource for my team at Aman Law Firm.  Third, I believe it will also serve as a resource to our clients, potential clients, colleagues and friends.

Enjoy the blawg, and if you have any questions, comments or suggestions, please don’t hesitate to contact me.  And be sure to visit my law firm’s website:  www.amanlawfirm.com.  Talk to you soon!

Blessings,

- Jeff Aman

Email: JeffA@amanlawfirm.com
Ph. (813) 265-0004
www.amanlawfirm.com

Jeff’s Top Ten Lists – Life Insurance Mistakes

Here is a list of the top ten mistakes people make with regard to their life insurance policies:

1. The Insured’s Estate Has Been Named Beneficiary.  This would require a probate proceeding, when one of the goals of life insurance is to avoid the hassle of probate.  With named beneficiaries (i.e., not the estate of the insured), the life insurance proceeds pass outside probate.
2. The Policy Has No Named Contingent Beneficiaries.  If the primary beneficiary predeceases the insured, the next default beneficiary is usually the estate – and that means probate is necessary.
3. Minors Or Other Impaired Persons Have Been Named Beneficiaries.  If young children are in line for life insurance money, it usually means a court has to supervise the process and administration of the funds.  That can be avoided with proper planning.  If someone is receiving Social Security Supplemental Income benefits (SSI), the benefits will cease if life insurance proceeds are payable directly to him or her.  Proper planning can avoid such an unfortunate result.
4. The Beneficiary Language Is Wrong Or Unclear.  Estate planning attorneys run into circumstances all the time where the beneficiary designation does not match the insured’s intentions.
5. Family Needs Are Not Adequately Addressed.  It used to be that a million dollar insurance policy felt like it was enough to take care of family needs in the event of the breadwinner’s death.  For many, that is not nearly enough anymore.
6. The Wrong Ownership Was Chosen For The Problem To Be Solved.  Most people choose to own their life insurance policies personally.  That can be a mistake in certain business situations, or where there are family estate tax issues.
7. The Ownership Chosen Creates An Income Tax Problem. Sometimes having a policy owned by a third party can create an unintended income tax problem.
8. Section 101(J) Requirements Have Been Neglected For A Business Policy.  In 2006, Congress created new rules for business-related life policies.  Careful guidance is needed to be sure business policies are structured properly.
9. Buy-Sell Funding Policies Have Not Been Properly Reviewed.  Business owners sometimes use life insurance to help make sure the business will continue after an owner’s death.  Even where a plan has been put in place, failure to update it can have disastrous consequences for the owners and their families.
10. Policies Have Not Been Reviewed After Divorce (Or Other Life Event).  People sometimes forget to remove an ex-spouse as beneficiary under a life insurance policy.  They also sometimes forget that their divorce papers require them to use existing life insurance policies in certain ways.

If you have not done so recently, we strongly recommend that you review your existing life insurance policies with your insurance representative, and/or call our office at (813) 265-0004 and we will be happy to set up an appointment to review your policies for one or more of these mistakes.  For more information, visit our website:  www.amanlawfirm.com

New Florida Power of Attorney Law

Effective October 1st, 2011, there is a new Power of Attorney statute in Florida.  There are significant and important changes.  The “durable family power of attorney” is a vital part of your estate planning arsenal, so be sure you consult with an attorney who is aware of these changes in the law.  The new law is summarized below.

The new law conforms Florida’s power of attorney law under Chapter 709, Florida Statutes, to the Uniform Power of Attorney Act adopted by the National Conference of Commissioners on Uniform State Laws, with some modifications to achieve greater consistency among state laws.

The revised power of attorney law applies only to powers of attorney created by an individual. Powers of attorney validly executed under Florida law before October 1, 2011 will remain valid. If the power of attorney is durable (a power of attorney that is not terminated by the principal’s incapacity) or springing (a power of attorney that does not take effect until the principal loses capacity), it will remain durable or springing under the new law. To be effective in Florida, powers created on or after October 1, 2011 must be exercisable as of the time they are executed. The meaning and effectiveness of a power of attorney are governed by ch. 709, part II, F.S. A power of attorney executed in another state that does not comply with the execution requirement of this part (ch. 709, part II, F.S.) is valid in Florida only if the execution of the power of attorney complied with the law of the state of execution.

Powers of attorney that are executed after October 1, 2011 may not create springing powers, with an exception for military powers. Qualified agents as defined in the bill are entitled to reasonable compensation. The revised power of attorney law provides requirements for written notice with special notice for financial institutions, and special rules for banking and investment transactions; provides default duties for the agent; creates co-agents and successor agents; prohibits blanket or default powers granted to an agent; prescribes requirements for the rejection by a third person of a power of attorney; prescribes requirements for an agent’s liability under a power of attorney; and provides grounds for judicial relief and dealing with conflicts of interest.

Let us know if we can help with your estate plan or planning for your parent(s) or loved one.

 

Is ignorance of the law an excuse?

Should the criminal KNOW he or she is breaking the law and intend to do so?  Or is the act of breaking the law what counts?  This is an old debate in the law, but this study shows that “mens rea” (criminal intent) is increasingly not a factor.

As Federal Crime List Grows, Threshold of Guilt Declines

Know your rights about medical records

Did you know that you have the right to a copy of all of your medical records?  Read about it here.

An Attorney’s Tips on Preventing Identity Theft

A corporate attorney sent the following out to the employees in his company.

1. When you are writing checks to  pay on your credit card accounts, DO NOT put the complete  account number on the ‘For’ line.  Instead, just put the last four  numbers. The credit card company knows the rest of the number, and anyone who might be handling your check as it  passes through all the check processing channels won’t have access to it.

2. Put your work phone # on your  checks instead of your home phone. If you have a P.O. Box use that instead of your home address. If you do not have a P.O. Box, use your work address.  Never have your SS# printed on your checks.  You can add it if it is necessary, but if you have it printed anyone can get it.

3. Place the contents of your wallet on a photocopy machine. Do both sides of each license, credit card, etc.  You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel. Keep the photocopy in a safe place.

4. Carry a photocopy of your passport when you travel either here or abroad.

We’ve all heard horror stories about fraud that’s committed on us in stealing a name, address, Social Security number, credit cards.

The corporate attorney who sent his employees the memo was motivated because he had recently had his wallet stolen.  Within a week, the thieves ordered an expensive monthly cell phone package, applied for a VISA credit card, had a credit line approved to buy a Gateway computer, received a PIN number from DMV to change his driving record information online, and more.

Here is some critical information to limit the damage in case this happens to you or someone you know:

5. We have been told we should cancel our credit cards immediately. But the key is having the toll free numbers and your card
numbers handy so you know whom to call. Keep those where you can find them.

6. File a police report immediately in the jurisdiction where your credit cards, etc., were stolen. This proves to credit providers you were diligent, and this is a first step toward an investigation (if there ever is one).

But here’s what is perhaps most important of all:

7. Call the 3 national credit reporting organizations immediately to place a fraud alert on your name and also call the Social Security fraud line number. I had never heard of doing that until advised by a bank that called to tell me an application for credit was made over the internet in my name.

The alert means any company that checks your credit knows your information was stolen, and they have to contact you by phone to authorize new credit.

By the time the corporate attorney was advised to do this, almost two weeks after the theft, all the damage had been done. There are records of all  the credit checks initiated by the thieves’ purchases, none of which the attorney knew about before placing the alert. Since then, no additional damage has been done, and the thieves threw his wallet away (someone turned it in). It seems to have stopped them dead in their tracks.

Now, here are the numbers you always need to contact about your wallet, if it has been stolen:

1.) Equifax: 1-800-525-6285

2.) Experian (formerly TRW):  1-888-397-3742

3.) Trans Union :  1-800-680 7289

4.) Social Security Administration (fraud line):  1-800-269-0271

Please share these tips with everyone you know so we can all prevent identity theft or at least know which steps to take to resolve identity theft.

Bad Facts Make for Bad Law

The Florida Supreme Court recently issued an opinion in the Olmstead case that does not bode well for small business owners in Florida.  The result in the case was appropriate based on the circumstances – a couple of small business owners scammed thousands of consumers out of millions of dollars. But the rule of law that emerges means that single member owners of limited liability companies are now exposed to the claims of creditors, whereas they were not so exposed prior to this ruling.

Our firm has for years recommended the “single-member LLC” as a preferred vehicle for small business owners because of the many benefits afforded by this form of entity.  However, the Olmstead decision now casts a dark shadow on this choice of entity.  Fortunately, there are alternatives available with proper planning. If you or someone you know has a single member (or even a few member) Florida limited liability company, we recommend that you contact us for an appointment to discuss alternatives, or contact another experienced practitioner in this area of the law.

FURTHER READING ON THIS TOPIC:

The Olmstead opinion

Tampa Tribune article

The Latest on Federal Taxes …

What’s going on with Federal Taxes?  Here’s a recent article that will get you up to speed, with all the political angles included!

Florida Statute Helps with Estate Plans in 2010

On May 27, 2010, Governor Charlie Christ signed new Florida Statute 733.1051 into law which, among other “fixes” to the estate planning laws in Florida, addresses a potential problem in the estate plans of Floridians created by the fact that there is no federal estate tax in effect in 2010. The law is retroactive back to January 1, 2010, and provides a judicial option for the beneficiaries of Floridians’ estates who die in 2010 and have an estate plan that relies on federal estate tax laws to fund AB Trusts or other types of estate plans.  Under the new law, the beneficiaries may seek a judicial modification of the estate plan for the deceased Florida resident. The law does not apply to estate plans that clearly anticipate no federal estate tax in 2010, and will become null and void at the earlier of such time in 2010 as the federal estate tax is reinstated or January 1, 2011.

Should I Pay My Mortgage?

This would have seemed like a strange question even 5 years ago.  But I talk to people on a regular basis who are asking that question – “Should I pay my mortgage?” – even some who have the short-term ability to do it.  Florida is one of the highest ranking states in “strategic defaults,” i.e., intentional defaults where the homeowner stops paying even though they can afford it (at least by someone else’s analysis).  In these economic times, there are a number of factors to consider.  A helpful article on the issue appeared recently in the Wall Street Journal.  The authors suggest these factors to consider:

• Am I willing to rent for at least 3 to 5 years while waiting to qualify for a home loan again?
• Can I accept a blot on my credit record for seven years, one likely to make any loan I need more expensive?
• Am I willing to take the risk that my lender will continue to dun me for the balance owed on the mortgage after the foreclosure process is completed?
• How much can I save by renting, taking into account the tax deduction I get for mortgage interest and real estate taxes?
• Do I have a moral responsibility to keep my legal financial commitments?
• What will be the effect of a foreclosure on my neighbors and community?

Click here to be directed to the full article in the WSJ.

If you need advice or assistance with a loan modification, short sale, or foreclosure defense, we at Aman Law Firm can help.  Just give our office a call and schedule a consultation.

2009 Year-End Planning

As we cruise through yet another year, there is still a window of time prior to December 31st to make some planning moves to improve your position going into 2010.  Of course, it all depends on your particular situation, but here are some possible moves to make:

1. Purchase a car. State and local excise taxes that are paid for the purchase of a vehicle are potentially tax deductible. If you itemize your tax return, you may have the ability to include these taxes as additional deductions. In addition, there are significant tax credits available for energy efficient vehicles purchased before year end.
2. Energy credit for energy conservation. Purchasing insulation for your home that may not only save you money on your heating and air conditioning bills, but will also provide you with an energy-related tax credit. Keep in mind these are credits, not deductions. This means that the credit is a direct amount of money that will be returned to you in the form of an increased refund or lower tax bill.
3. Check gains and losses. You may wish to offset your gains with losses to the extent that you have any gains in 2009. If not, you may wish to sell assets before year end and take the tax loss, which may be utilized up to any gains, and if there are no gains, then up to $3,000.00 from other income for the year, with a carry-forward of the balance. Keep in mind that assets included in retirement plans are normally not tax deductible, so gains or losses are going to be taken on non-retirement plan assets.
4. Charitable deductions. Consider donating property, goods, and other assets, such as cash donations, stocks, bonds, etc. before year end. You may also consider making a 2010 donation in 2009, thus taking advantage of the deduction a year early. Payment of pledges for future obligations may also be made before year end, and these may also be charged to your credit card. By charging them in 2009, they become charitable deductions in this year even though you may not pay the charge card in the same year.
5. IRA Withdrawals. In 2009, it is not necessary to take a minimum required distribution from a retirement plan, thus allowing you to delay taxable withdrawals until the following year. The intent of this law was to allow your fund to accumulate more money for retirement, based on the downswing in the market. However, if you need the money, and if you have other obligations you wish to make, such as gifts or bills paying, consider reviewing the amount of taxable income anticipated for the year and take out only as much as necessary to maintain a low bracket for tax payments. Always be sure to consider the possibility that social security benefits will be taxable if the threshold for income is received based on your marital status.
6. Consider the child care credit or one for dependent care. In many cases, children may be supporting their parents, and they may need to sign a multiple support agreement, whereby the credit for the parent is rotated on an annual basis between multiple children. The credit is eligible for child care expenses as well as the expenses of caring for a disabled spouse or disabled adult who is dependent while you work or look for work.

While there are many other opportunities, these are a few that you can consider before the holidays occur, so there is ample time to attend to any payments, expenditures, or tax issues before December 31.