Loftin | Bedell, P.C.Loftin | Bedell, P.C.2024-02-14T17:33:54Zhttps://www.loftinbedell.com/feed/atom/WordPress/wp-content/uploads/sites/1602987/2020/12/cropped-favicon-32x32.pngOn Behalf of Loftin | Bedell, P.C.https://www.loftinbedell.com/?p=518352023-10-17T08:50:17Z2023-10-20T08:50:01ZA trust is a legal document that people use alongside their will. A trust works by having a grantor give a trustee assets. The trustee is then responsible for distributing the assets as instructed.
Revocable trusts are the most common. The grantor can alter this trust to include or remove assets and beneficiaries. Once the grantor passes away, the trust becomes irrevocable. There are many different kinds of trust. The language in these trusts can give grantors and beneficiaries certain advantages. Here’s what you should know:
Blind trust
There’s often at least a little bit of conflict when discussing who should benefit from a high-net-worth estate. A grantor can make a blind trust that benefits individuals without the perception of favoritism. A blind trust hides detailed information about the monetary value of the trust and who should benefit from it.
Pet trust
Many people realize they will outlive their pets. A pet trust can be made to help fund the care of their pets. Funds in a pet trust may only be used for food, clothing, grooming, shelter, medication and veterinary visits.
Charitable trust
Many people fund charities, private groups and research programs during their life. A charitable trust can be made to continue funding these organizations. Funds in a charitable trust may disperse at regular intervals or at a fraction of the value of a trust.
Spendthrift trust
Many people struggle to adapt to a large inheritance. A grantor who understands that a beneficiary may irresponsibly use assets in a trust may consider making a spendthrift trust. Assets in a spendthrift trust disperse incrementally. The special wording in a spendthrift trust can help prevent issues of overspending or risky investments. You may need to learn about your legal options when considering how to manage your assets in a trust.
]]>On Behalf of Loftin | Bedell, P.C.https://www.loftinbedell.com/?p=518242023-09-29T09:40:57Z2023-10-04T09:40:40ZSome sell fraudulent living trusts, promoting them as an ideal solution to elders, helping them prevent probate and save money. These schemes usually approach seniors with impairments, making them vulnerable targets of these illegitimate products.
Salespeople usually claim to be trust specialists and advertise their products as living trust kits. These products look legitimate at first. Later, they may cause problems and expensive fees because of poorly drafted agreements and inappropriate features. Elders and their family members could help avoid these schemes by spotting the following red flags:
After asking only a few questions, the sales representative used high-pressure tactics to seal the deal. Ideally, attorneys specializing in estate planning take time to consult and determine what tools can match their client's requirements. If not, the arrangement might be unfavorable or fail to meet their client's needs.
The salesperson refuses to disclose exact details about any penalties or fees. These options can be more costly than other estate planning tools, potentially leading to losses instead of benefits.
The salesperson also offers other services for high fees, such as asset liquidation or conversion. The company could be promoting them to charge you more than they already have.
Consumers who face these warning signs should be vigilant and avoid buying these offers upfront. Instead, take time to check the firm's legitimacy or seek estate planning services from more credible providers.
Saying no could save your estate
There is no problem with seeking estate planning options if you obtain them from reliable sources. Failing to do due diligence on a provider could lead to severe repercussions, such as losing money or having losses on the estate. Suspicions of fraud are a good enough reason to say no and turn down the offer.]]>On Behalf of Loftin | Bedell, P.C.https://www.loftinbedell.com/?p=518212023-08-22T08:41:44Z2023-08-25T08:41:31ZIt’s not uncommon for a business owner to want to sublet a rented property. After all, subletting a rental unit comes with a number of benefits such as maximization of the usable space. Done right, a sublease can be a win-win arrangement for the original tenant and the sublessee. But should you let the tenant sublease their rented property?
As a landlord, here is what you need to know about subletting a commercial property in California.
It is not against the law
Subletting a rented property, commercial or residential, is not illegal in California, as far as the law is concerned. However, the tenant must follow the lease agreement as well as state and municipal regulations while doing so. If a lease agreement expressly prohibits subletting, then a tenant who does so may be deemed to have violated the contract. As such, you may take appropriate action against them. And if you allow the tenant to sublet a rented property, you will need to set the rules for doing so. This may include the power to veto whom your tenant may sublet the property to as well as the kind of business the sublessee can operate on the property.
So, when can you reject a tenant’s request to sublease?
There are a number of valid reasons why you may refuse a tenant’s quest to sublet a rented property. For instance, if the prospective subtenant intends to operate a business that is not well-suited for the property, you may cite this as the reason for the denial. The same applies if they intend to run an illegal business on the property. Late rent payments by the original tenant may also justify a refusal. As a commercial property landlord, you have a duty to protect your investment. Understanding how California landlord-tenant laws work can help you safeguard your rights and interests when a tenant is planning to sublease a rented property. ]]>On Behalf of Loftin | Bedell, P.C.https://www.loftinbedell.com/?p=518202023-08-04T11:43:05Z2023-08-09T11:42:52ZA will is one of the most important legal documents you can ever sign. And when you set aside time to draft one, you hope and trust that it will be implemented to the letter when you die.
However, it is not uncommon a will to become the subject of a costly legal battle. If this happens, your wishes may be derailed and your estate might be negatively affected. But how do you know someone is likely to dispute your will?Here are common reasons why your will might be disputed:
1. Your will is not properly executed
A will is a legal document. Thus, for your will to become enforceable, it must be properly executed per California laws. This means that you must be at least 18 at the time of signing the document. It also means that your will must be properly witnessed and signed by two non-interested parties. Finally, you must have the testamentary capacity to sign the document. A will that falls short of these among other validity requirements will, most likely, be disputed.
2. Your will heavily favors one party
If your will favors one heir more than others or excludes some expected heirs, there may be allegations that you were subject to “undue influence” by the favored party.Someone cannot manipulate, coerce or trick you into creating or modifying your will. If this happens, the resulting document would not be enforceable on grounds of undue influence. Of course, proving undue influence can be a daunting task, especially because this often happens behind closed doors.
Protecting your interests
The best way to protect against these two issues is to have experienced legal assistance when you create your will. That makes certain that your will is properly executed and can reassure the court that you were not coerced into anything. ]]>On Behalf of Loftin | Bedell, P.C.https://www.loftinbedell.com/?p=518132023-07-13T08:45:27Z2023-07-18T08:45:09ZIncreasingly, people are using living trusts rather than their wills to pass on the bulk of their assets to their family and other beneficiaries. The primary advantage of a living trust for most people is that assets in it typically don’t have to go through probate. As we noted in a recent post, this allows assets to pass directly to the beneficiaries.This can save time and expense for surviving loved ones. It also helps maintain privacy since there are fewer court documents. Among the assets that people most commonly place in their living trusts are homes and other real estate, cars, boats and bank accounts. The person who sets up a revocable living trust is typically the trustee while they’re still alive. That means they have control over the assets and can add and remove assets from the trust throughout their life.What if you own a business? Can you place that in a trust? If you can, is it a good idea to do so? That depends on a number of factors that are unique to your business and your needs and goals. One of these factors is the type of business you own.
Sole proprietorships
If your business is a sole proprietorship, placing it in a living trust can help it continue to run after you’re gone without the probate court having to get involved. Of course, you’ll still need to determine who will be responsible for it and ultimately whether you want it to continue or be sold. This is typically the easiest business structure to place in a living trust.
Partnerships
Unless your partnership agreement prohibits transferring your share of the business to a living trust, you likely have the option to do this. You’ll need to determine that. It’s also best to discuss your intentions with your partner(s).
Limited liability companies
If you have an LLC, you’ll want to look at what the operating agreement says. You’ll probably need to get the approval of a majority of the owners. If you do transfer your share of an LLC into a living trust, you’ll still continue to have your voting authority. However, the ownership (as with all assets in a living trust) is the trust itself.These are just a few things to consider if you’re a business owner considering including your company (or your share of it) in a living trust. One of your first steps should be getting experienced legal guidance based on your unique situation.]]>On Behalf of Loftin | Bedell, P.C.https://www.loftinbedell.com/?p=518112023-07-04T07:12:41Z2023-07-07T07:12:19ZThe commercial-landlord relationship can differ from a residential one due to its complexities. While you may have invested in commercial real estate (CRE) due to its benefits, you may conflict with your tenants.Below are four causes of such disputes:
1. Late payment of rent
A tenant may fail to make monthly rent payments or respond to your warnings, resulting in disputes. While it's understandable a business may be struggling, the owner should do their best to avoid breaching the rental agreement they signed.
2. Property damage
Undeniably, you want your commercial property to be in good condition to protect its value. Thus, a tenant damaging it can lead to conflicts. It's crucial to have a maintenance clause in your agreement that discusses when a tenant may be liable for a repair. This can encourage them to be cautious with their actions. And should damage occur, they will know what's expected of them, reducing the chances of disputes.
3. Property maintenance
Your tenants may conflict with you if they believe you are not maintaining the property as required. The property's condition plays an integral part in attracting their clients. Thus, they may have an issue when it's not well-maintained despite paying service fees. If your tenants complain about maintenance, you should follow up with the appropriate team promptly, as such an issue can result in the loss of tenants.
4. Renewal disagreements
If you are leasing your commercial property to tenants, you may be in dispute with them during renewal. Raising the rent and including new terms they deem unfavorable are examples of factors that can contribute to this conflict.If you have a dispute with a California tenant, you should get legal help to resolve the matter sooner. ]]>On Behalf of Loftin | Bedell, P.C.https://www.loftinbedell.com/?p=518102023-06-20T06:29:53Z2023-06-24T06:29:36ZAcross California, depending on what area you’re in, you may see multiple electric vehicle (EV) charging stations in parking lots of commercial structures where people grocery shop, go to the movies and bank. You’ll see them on the properties of commercial office buildings, universities, hotels, hospitals and more.
Over the next decade-plus, we’ll be seeing many more – and commercial real estate developers, owners and investors will need to give them a lot of thought. That’s because last year the California Air Resources Board approved regulations that put California on track to end the sale of gas and diesel-powered vehicles by 2035.
A million new charging stations
Approximately 1 million new charging stations will need to be installed to handle all of these new EVs. Some will go in gas stations and other businesses like convenience stores that currently sell gas. Further, all kinds of commercial real estate throughout the state will need to have these stations.This will require determining how much space will need to be allocated both in new structures and existing ones and the best place to locate them. In addition to commercial retail and office properties, more will need to be installed for multi-family buildings.
All areas will need access to charging stations
While more EV stations are currently found in wealthy areas than low-income urban and rural communities, the people who live and work in those communities will need greater access to convenient charging stations as more people have EVs.This won’t be inexpensive. Builders and owners will need to pass it along to their tenants. The California Energy Commission (CEC) is offering millions of dollars in incentives to help those who need help with the costs. The CEC commissioner says, “These funds will help fill the gap in areas where we know charging is needed the most to bring the benefits of clean transportation to all Californians.”A lot of different parties (including state agencies) are still learning how to navigate the upcoming changes. Twelve years isn’t a particularly long time when it comes to commercial real estate development. By having experienced legal guidance, you can more successfully keep up with these and other changes in state regulations.]]>On Behalf of Loftin | Bedell, P.C.https://www.loftinbedell.com/?p=518092023-06-13T16:51:26Z2023-06-16T16:50:59ZWhen investing in a commercial property, there are things you should do to ensure you are making the right investment. One of the things you should do is to conduct a title search. This process entails recovering documents that show the history of the commercial property you want to buy.
A title search is often done to pave the way for title insurance. However, there are other benefits of conducting a title search before investing in a commercial property. Below are some you should know:
Helps discover property liens
A lien is a legal claim against a property that can be used as security to repay a debt. For example, liens can allow the holder to access a commercial property if there is an outstanding debt. This can include unpaid taxes.
Reveals any mechanics liens
If any unpaid renovations were done to the building, a title search would reveal this information. In addition, the search will outline whether there are liens against the property and the individual they are owed to.
Outlines encroachments
Encroachments can make it hard to define property lines and create title concerns when you want to sell the property. Additionally, encroachments can create liability issues and compromise your relationship with other property owners.
Reveals deed restrictions
Deed restrictions on commercial properties are like zoning ordinances because they limit the type of business that can be practiced on the property. This is usually done to maintain some form of uniformity and protect the value of the property or the interests of neighboring businesses. So, if you are thinking of investing in a commercial property, you should consider reviewing any deed restrictions that might limit property use. Conducting a title search is important before investing in a commercial property. A comprehensive title search will provide you with peace of mind and minimize potential risks.]]>On Behalf of Loftin | Bedell, P.C.https://www.loftinbedell.com/?p=518082023-06-06T11:41:47Z2023-06-09T11:40:17ZA living trust is a legal document that allows individuals to transfer their assets into a trust during their lifetime, with the aim of managing and distributing those assets upon their death. While not everyone needs a living trust, there are certain situations where it can be a valuable estate planning tool.
Here are some scenarios in which establishing a living trust may be beneficial:
Avoiding probate
One common reason to establish a living trust is to avoid probate. This process occurs to distribute a deceased person’s assets to their beneficiaries. It can be time-consuming, expensive and public. Placing assets in a living trust can be transferred to beneficiaries without going through probate, ensuring a smoother and more private wealth transition.
Continued asset management
Another consideration is the desire for continued asset management. A living trust allows individuals to appoint themselves as trustees, giving them control over the assets placed in the trust. In incapacitation, a successor trustee can step in and manage the assets on the individual's behalf. This can be especially beneficial for individuals who want to ensure their financial affairs are properly handled if they cannot do so themselves.
Multiple state property ownership
For those who own property in multiple states, a living trust can help avoid ancillary probate. Ancillary probate is the secondary process in each state where the property is owned. By transferring property to a living trust, individuals can potentially bypass the need for ancillary probate, simplifying the distribution of assets across different jurisdictions.
Providing for minors or special needs individuals
A living trust can be an effective tool if an individual wants to provide for the long-term care of a minor or someone with special needs. Living trusts can be created to ensure the beneficiary has ongoing financial support. Establishing a living trust depends on an individual's unique circumstances and goals. Knowing your options and rights will help determine if a living trust is necessary.]]>On Behalf of Loftin | Bedell, P.C.https://www.loftinbedell.com/?p=518032023-05-08T10:05:50Z2023-05-11T10:05:17ZSavvy California real estate investors and developers keep abreast of news that could affect the commercial and residential real estate markets alike. Shifts in one market may serve as harbingers for shifts in the other, so taking a broad view when digesting information concerning trends, regulatory changes and world events that could impact California specifically is often key to success.
Recently, one of the most pressing issues affecting the commercial real estate market specifically involves lending practices. Essentially, many lenders are tightening their financing criteria, even as the market has begun to struggle nationally as a result of high debt loads, rising interest rates and vacancies in a number of sectors.
What does this mean for the market in California?
While imposing choosier lending practices may make sense for banks and other lending institutions during a period of economic and marketplace uncertainty, it is also important to balance the need to keep the market as robust as possible. If lending activity dries up, the fallout from that trend will be inevitable as opposed to growing fears of hardship that are still “only” likely to occur in the months to come.One of the things that will be most important for California real estate investors and developers to keep in mind as the market evolves is that California real estate is not a monolith. The fallout from recent bank challenges is going to manifest differently in Silicon Valley than it will in Orange County, for example. As a result of how dynamic and diverse California markets tend to be, seeking professional guidance can be helpful as those who are interested in continuing to pursue their real estate goals take thoughtful next steps forward. ]]>