Matt Devitt Law, PLC

02/06/2021

7 Common Estate Planning Mistakes:

Estate planning, when done correctly and with the assistance of an experienced attorney, is a great way to help your family during difficult times, avoid the expense and time of probate, ensure your assets are disbursed to you wishes, and most importantly helping to maintain family harmony.

There are however common mistakes that are made and the goal of this post is to educate individuals of the common challenges and ways to help resolve.

Learn more: https://www.mattdevittlaw.com/post/7-common-estate-planning-mistakes

** This is not legal advice

Estate planning, when done correctly and with the assistance of an experienced attorney, is a great way to help your family during difficult times. There are however, common mistakes which estate planning attorneys frequently see.

11/08/2020

Selling or Buying Out a Tenant in Common

Tenants in common is the optimal conveyance for parties who desire common possession of the land but not the right of survivorship.

How are Tenant in Common Interests Transferred?

A tenant in common “TIC” can transfer interest in a tenancy in common to another buyer or to an heir -- via a will, lady bird deed, or trust arrangement. A co-tenant can also sell or mortgage his/her share in the property.

What to do if You Want to Sell To or Buy Out other TIC owners?

Buying out another TIC interest is similar to the process of buying a house. This would include evaluating the market price for the property and then applying this to the purchase price.

Once a purchase price is agreed upon, the brothers would then move into the process of creating a purchase agreement, then moving into the arrangement and documents for the closing process. At closing brother A’s interest will be deeded over to brother B who will not have 100% of the home.

How Can an Attorney Help?

Selling or buying out a tenant in common interest is a complex process with lots of paperwork and legal complexities. If a TIC has chosen to sell independently, an experience real estate attorney can provide you with as little or as much legal support as you need to complete your for-sale-by-owner transaction.

** This is not legal advice

Learn more:

elling or buying out a tenant in common interest is a complex process with lots of paperwork and legal complexities. If a TIC ha chosen to sell independently, an experience real estate attorney can provide you with as little or as much legal support as you need to complete your for-sale-by-owner tra...

10/19/2020

Should a Landlord Create an LLC for Rental Property?

Generally, most landlords would benefit from managing their properties under the limited liability company (LLC) business structure. An LLC combines the limited liability of a corporation with the flexibility and pass-through tax advantages of a partnership. Also, the organizational flexibility affords landlords and other professionals a great advantage over many other business forms.

If you are a current landlord who would like to learn more about the benefits of an LLC or a new landlord who is thinking of purchasing your first property, it is recommended that you contact an experience business and real-estate attorney to properly setup all aspects including the creation of LLC, Lease, operating agreement and all other details.

** This is not legal advice

learn more https://www.mattdevittlaw.com/post/should-a-landlord-create-an-llc-for-rental-property

10/04/2020

Considerations for Parents Helping Adult Children Buy a Home

Buying a first home is a milestone moment for most, however, many young people are having to delay due to the well documented challenges that Millennials face such as high debt loads and a very hot housing market. In fact, according to the results of the NAR Home Buyer and Seller Generation Trends Report 23% of buyers 37 and younger used a gift to make a down payment and 6% utilized a loan from family or friends.

What are Some of the Options for Helping Your Child?

Thankfully there are many good options for helping your adult child with the purchase of a home.

There are 4 common options to help: 1) a gift, 2) a family loan, 3) co-signing on the mortgage, and 4) buying the property outright and the doing a rent-to-own or land contract where you act as the bank.

Although there are many options, it is important to work with an experienced attorney and CPA to ensure that the solution best meets your individualized requirements.

Learn more: https://www.mattdevittlaw.com/post/considerations-for-parents-helping-adult-children-buy-a-home

** This is not legal advice

Buying a first home is a milestone moment for most, however, many young people are having to delay due to the well documented challenges that Millennials face such as high debt loads and a very hot housing market. Thankfully there are many good options for helping your adult child with the purchase....

09/27/2020

Estate Planning for Blended Families

Second marriages which bring together two families is a great thing for many reasons. Blended families do however bring added complexities and importance to estate planning.

You and your spouse may have children from a previous marriage and children of your own, as well as, property and other assets that have been accumulated over a lifetime. This leaves individuals with the challenge of determining how they can provide for their second spouse while also providing for their children from the first and second marriage. Providing for everyone is where the estate planning can get tricky.

Components of a Comprehensive Estate Plan for Blending Families:

All comprehensive estate plans should have at a minimum three components; 1) Will, 2) Financial Power of Attorney, and 3) Patient Advocate with a Living Will. However, for blended families it is almost always advisable to add the fourth component which is revocable living trust.

The trust will provide great flexibility, which will allow you to provide for your spouse, as well as, your children. A well drafted trust can also help to maintain family harmony after you have passed.
** This is not legal advice

Learn more:

Second marriages which bring together two families are a great thing for many reasons. Blended families do however bring added complexities and importance to estate planning.

09/20/2020

When is it Time to Review and Update Your Estate Plan?

Creating a comprehensive estate plan gives you the piece of mind of knowing you have taken steps to care for your family now and in the future. As time goes by, it is however important to keep your plan up to date. If your estate plan isn’t kept up to date, it may no longer accomplish the goals that you had initially considered.

While a good estate planning attorney will build flexibility into your comprehensive estate plan during the initial setup, it is still a good idea to review at a minimum every 3 years.

While it is good to review an estate plan every three years, there are many life events which may necessitate the need to review sooner.

** This is not legal advice

Learn more:

While it is good to review and update an estate plan every three years, there are many life events which may necessitate the need to review sooner. Let us use our estate planning experience to help. Call (734) 335-0713 to learn more.

09/13/2020

For Sale by Owner (FSBO) Demystified

Thinking of selling your home without the assistance of a real estate agent? While the For Sale by Owner FSBO isn’t for everyone, it can be a great way to reduce the overall cost of selling your home and making sure that you are in control throughout the process.

The internet has changed most things, and the process of buying and selling a home is certainly one of them. With online tools like Zillow and Trulia, most buyers are finding homes they like themselves, and these sites have made posting your home online simple.

While the FSBO process should be a consideration for most sellers who want to cut out large real estate commissions, you should be prepared to do a little work. The FSBO process breaks down to three general steps; 1) marketing your property, 2) selling your property, and 3) closing the sale of your property.

** This is not legal advice

Learn more:

Thinking of selling your home without the assistance of a real estate agent? While the For Sale by Owner FSBO isn’t for everyone, it can be a great way to reduce the overall cost of selling your home and making sure that you are in control throughout the process.

09/11/2020

What is a Spendthrift Trust? And when should it be part of a Comprehensive Estate Plan?

Spendthrift trust provisions have always been an important part of a well-tailored estate plan but have taken on a resurgence in the past few years given the tremendous amount of wealth that will be passing from one generation to another in the next couple of decades. Further, the Millennial generation has taken on debt loads, due to higher tuition and other challenges, that have not been experienced in the past.

The legal definition of a spendthrift provision includes a provision that restrains either the voluntary or the involuntary transfer of a trust beneficiary’s interest. Said differently a spendthrift provision puts restrictions on the beneficiary’s access to trust principal. Essentially, the beneficiary cannot access the trust principal, or promise it to anyone else. Because the beneficiary cannot access trust funds, neither can his or her creditors.

A spendthrift provision is the surest way to ensure that your wealth stays in place to assist your children and other family members rather than being sent directly to creditors.

** This is not legal advice

A spendthrift provision is the surest way to ensure that your wealth stays in place to assist your children and other family members rather than being sent directly to creditors.

08/16/2020

Purchasing a Condominium or Cooperative?

Condominiums and co-operatives are "common interest" properties that offer ownership interests that are different from those associated with traditional home ownership. Both options are gaining in popularity and can be a great fit for many individuals.

Basics of Condominiums:
Condominiums (or simply "condos") are individually owned, just like houses and mobile homes, but are part of a larger community with shared interests and amenities. Typically, there is a homeowner’s association (HOA) which fees are paid to take care of structural elements like the roof, as well as common or shared areas like landscaping and recreational areas.

Basics of Cooperatives:
Cooperatives are similar to apartments and townhouses but have a few important differences. A key difference is that "owners" do not own their unit, but instead hold shares in the corporation that owns the development.

If you have decided to purchase a condominium or become part of a cooperative there are certain transactions that should be reviewed by attorney.

While both forms of ownership are great options for many buyers, it is important to understand each document prior to signing. Matt Devitt Law, PLC is dedicated to educating buyers and helping to ensure that they make informed decision.

Learn more: https://www.mattdevittlaw.com/condominium-and-cooperative-lawyer

** This is not legal advice

Need assistance reviewing, drafting, or negotiating the purchase of a condo or co-op? Call us today (734) 335-0713 for a free consult. Purchasing a condo or co-op can be stressful. Hiring an expreienced real-estate lawyer is an important step.

08/02/2020

How Could My Family and I Benefit from a Comprehensive Estate Plan?

Estate planning is one of the most important steps any person can take to make sure that their final property and health care wishes are honored, and that loved ones are provided for in their absence.

Estate planning can provide peace of mind and provide for future generations including protection of your spouse, protection of children and grandchildren, maintaining control in the event of disability, keeping peace in the family, passing on family values, charitable planning, and planning for expeditious estate settlement.

A comprehensive estate plan can also resolve a number of legal questions that arise whenever anyone passes: What is the state of their financial affairs? What real and personal property do they own? Who gets what? Does a personal guardian need to be appointed to care for minor children? How much tax will need to be paid in order to transfer property ownership? What funeral arrangements are appropriate?

** Learn More https://www.mattdevittlaw.com/post/benefits-of-estate-planning

** This is not legal advice

07/04/2020

The Importance of a Property Transfer Affidavit

A property transfer affidavit is an important form that must be filed with the taxing authority in the local city or township anytime property is transferred in order to ensure correct assessment for tax purposes. The new owner must file within 45 days of transfer or face a penalty of $5/day (maximum of $200).

Generally, a transfer will cause the property taxes to be “uncapped,” but thankfully there are many exceptions to that rule. If you fall under one of those exceptions, it is important that you choose the correct exception on the form. If you do so, you may be able to avoid a property tax increase. The law is very rigid and it is recommend that you consult with an experienced attorney whenever you transfer property via a deed, land contract, or a lease.

** This is not legal advice

A property transfer affidavit is an important form that must be filed with the taxing authority in the local city or township anytime property is transferred in order to ensure correct assessment for tax purposes.

06/28/2020

The Basics of Easements on Real Property:

Easements are either seen as harmless items that can simply be ignored, or as crippling encumbrances on a piece of property that diminish its value. These are the extreme circumstances and easements generally fall somewhere in between. Having a basic understanding of what easements are and how they affect real estate is important to demystifying easements.

In its most basic definition, the term easement covers several different rights that can either encumber or enhance a parcel of property.

Easements often come into focus in residential real estate, and are usually discussed when marketable title is being sought during closing. A shared driveway, for instance, usually involves an easement for one or both neighbors sharing the driveway.

While easements are important to understand, many should not be seen as fatal to a marketable title. They are simply rights that property owners have exercised in the past, and when properly drafted and when the risk is understood by both parties, should not prevent the sale of property. However, easements, like other technical parts of real estate should be reviewed by an experienced attorney before purchasing the property.

Learn more: https://www.mattdevittlaw.com/post/the-basics-of-easements-on-real-property

** This is not legal advice

Easements are either seen as harmless items that can simply be ignored, or as crippling encumbrances on a piece of property that diminish its value. These are the extreme circumstances and easements generally fall somewhere in between.