Attorney Shannon Wynn: Check your beneficiaries lately?

 Wynn at Law LLC always encourages estate planning clients to check who they’ve elected as beneficiaries of their accounts and policies. Not all assets are distributed by or through a will. Some accounts, such as retirement funds and life insurance policies, let owners name beneficiaries for that particular asset.

Here are a couple of examples where missing or ‘wrong’ beneficiary listings can be a hang up for your decedents.

No named beneficiary. These days with paperless documents, most insurance agents can’t click OK on your policy if the beneficiary field is left blank. Older policies – not the case. You may have left it blank because you were in a rush, didn’t see it, or thought you would fill it in later. Now is later. Without a named beneficiary, an account will need to go to probate court, where a judge will decide who gets the money.

Former spouse named as beneficiary. Face it, surviving a deceased spouse or divorcing a living one involves tons of legal paperwork and decisions. One many people forget during this life change is to go back and designate another beneficiary. Ex-spouse doesn’t mean ex-beneficiary… a view that was recently upheld by the Supreme Court. Named beneficiaries get the proceeds, no matter how estranged the relationship. Imagine the family chaos following your passing if the ex got the money you wished for your current spouse or your children.

It’s a good idea to review three things: Old pensions in which you are vested, 401(k) plans still sitting at former employers, and every life insurance policy still in force with your name on it. By the way, that includes annuities, which are life insurance contracts. Wynn at Law LLC likes to have clients review beneficiary information after every life change such as retirement, the births of children or grandchildren, marriage or divorce. You want your money to go where you want it to go.

*The content and material in this original post is for informational purposes only and does not constitute legal advice.  

Photo by Robert Churchill., used with permission.

Attorney Shannon Wynn: Skipping the real estate inspection can be costly

Wynn at Law, LLC knows the cost of a real estate inspection may seem a little bit steep with all the other closing expenses to bear, but it's well worth it in the end. The cost will vary based on the size of the house, but between $300 and $500 is a good estimate in Walworth County. If these inspections aren't done, issues with the house might crop up later and end up costing thousands in repairs.

Many buyers of spec homes or brand-new construction especially feel the urge to skip the inspection. What really can go wrong with a new house? A lot. If a builder or seller offers a discounted price or cash back for skipping the home inspection, walk. A home inspection takes a couple hours: That's hardly an inconvenience to the seller. There is no reason to persuade buyers against it... unless there are critical issues with the home. For example, the homeowner may have been a “Do It Yourselfer” who did improvements him/herself to cut costs, or a builder could have cut corners to finish on schedule.

If you're really set on purchasing a home, you absolutely need to take measures to ensure it's safe. Safety is the primary reason three out of four home buyers have an inspection before finalizing the purchase according to the National Association of Realtors. The fact that three out of four buyers will have an inspection is a good reason sellers should have one, too, before they even list the property. This way, you can spend time remedying any issues that need to be immediately fixed for the next owners of your home. An inspection also gives you back-up in case the buyer's inspection turns up something entirely unexpected.

Here are three tips:

·         Hire a home inspector that has many years of experience and the proper certifications and licenses.

·         You also want an inspector that is thorough and will go into the attic, through the basement, and on the roof.

·         Go along. Some inspectors are happy with you following them around asking questions, while others want to do a thorough search first, and then a walk through with you. You are paying for his or her time, so ask for the tour from the inspector's view.

Real estate transactions are exciting for both buyer and seller. When you're caught up in that excitement – and the probability that there is also another buying or selling transaction in which you're involved – it can make you forget to take the necessary precautions. The inspection is one such precaution. Buyer or seller, it's your safety net.

 

*The content and material in this original post is for informational purposes only and does not constitute legal advice.  

Photo by Ian Allenden, used with permission.

 

Attorney Shannon Wynn: Home builder contracts should reflect your interests

Touring builders' model homes can be intoxicating. They're so flawless with very feature you've imagined into your dream home. Wynn at Law LLC knows the exhilaration because we've been on the same tours of spec properties. Before you rush into the builder's agreement – which undoubtedly will reflect their best interests first – here are some areas you want to make sure are developed to your liking in the contract.

·         The building: Permits are required. Labor has to be furnished. Maybe pieces are subcontracted out. Obviously materials and plans are parts of the construction. Make certain the contract specifies the work that needs to be executed from the lot up to the last closet hinge. Remember lien waivers, too… see our previous article on them.

·         The timeline: Disputes with builders usually heat up over the deadline. Your move-in date means the world to you and your lender. What matters to the builder is accommodating inspections (delays), weather (delays), employee issues (delays) and arrival of materials (delays). A firm contract specifies a start date, move-in date, and provisions for reasonable extensions.

·         The payment terms: Another potential source of disputes (delays) is the payment. Typically there is a down payment and payments at regular intervals. A clear contract specifies the dates, amounts, and the form of payment they'll accept as well as where they'll accept it.

·         The warranties: In a sale of an existing home, defects are identified outright. In a new home construction, builders instead offer a warranty. That warranty usually spells out what is NOT covered (exclusions) rather than what IS covered (inclusions). Wynn at Law LLC reviews the home warranty promise and helps you get the most of it.

If you make the decision to build, rather than buy, your dream home, hiring a real estate attorney will ensure a contract favors your family, not the developer, and protects your investment. Usually, a builder presents a standard contract for your approval. If the contract appears overly simple or unnecessarily complex, there’s an excellent chance that the contract does not serve your best interests. Don’t be afraid to let us negotiate! Your home is on the line.

 

*The content and material in this original post is for informational purposes only and does not constitute legal advice.  

Photo by Andrea De Martin, used with permission.
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Attorney Shannon Wynn: Transfer on Death Deeds eliminate probate

When any of Wynn at Law LLC's clients own real property in Wisconsin, we look at a Transfer on Death Deed (commonly called a TOD Deed or a TODD) to see if it is a suitable fit for their estate plan. It can sometimes wipe out the need to go to probate court, which is a time and cost saver.

As our earlier article pointed out, if you have $50,000 or more in probate assets, probate court comes into play when distributing assets. Probate assets are all assets NOT automatically transferred to another person when the owner passes. Life insurance proceeds, for example, skip probate because a beneficiary is identified. So, if assets can avoid probate, why not place a TODD on an asset like a vacation home to transfer it directly to beneficiaries, such as the kids?

The answer in some cases is that if you need to protect assets – for or from your children – you might not want to transfer them on your death. For the minor kids, you might want to transfer the asset to a trustee for their benefit until they're older. In the case of adult children who may have creditor problems or a looming divorce, you might again want a trustee instead of transferring the property to them directly. Otherwise, a TODD making assets 'unprobatable' is an alternative for every Wynn at Law LLC client because the property doesn't need to be owned free-and-clear. You can have a mortgage, a second mortgage, even a line of credit against the property and still use the TODD to pass it on… and skip probate.

Let's say you had a car and some bank assets totaling $49,995 and a $89,000 getaway cabin up north. All in, the assets would require probate, but if a TODD was placed on the cabin, the cabin passes to your heirs (they still get the debt if it was mortgaged, by the way) and the rest of the estate would avoid probate because it's under the $50,000 limit.

Your accountant, or your beneficiary’s, will point out that there may be tax benefits to this strategy as well, because the transfer isn't considered a 'gift' subject to gift tax. The TODD may also reduce or eliminate capital gains taxes if and when the property is sold by the beneficiary.

Even if you have the Transfer on Death Deed, you can still choose to sell a property while you're living: It's yours! The TODD designation does not give the beneficiary 'ownership' of the property while you're alive… if the document is drafted properly. Call an attorney.

 

*The content and material in this original post is for informational purposes only and does not constitute legal advice.  

Photo by Ekaterina Kondratova, used with permission.

Attorney Shannon Wynn: Flipping real estate advice for buyers, sellers, and speculators

 

Wynn at Law LLC has noticed a recent resurgence of real estate 'flipping.' Late-night cable and radio stations are again saturated with ads touting the wild income potential of acquiring and liquidating the same piece of property within the shortest possible time frame. Flipping is legal – as long as it's done on the up and up.

Before the housing collapse a decade ago, some curbs were put in place to deter flipping. The FHA sets the rules by which most lenders follow: Having 3.5 percent as a down payment for example. In 2005, the FHA required additional inspections and safeguards taken on mortgages applied for on properties that have been owned for less than 180 days, and outright forbidding the approval of mortgages on properties owned for less than 90 days. Those rules were relaxed in 2010 following the real estate market bust wiping out $7 trillion in property value.

More importantly, that lost value represented the largest investment loss for many families… and did not involve as many people flipping houses. With that in mind, most lenders still adhere to the 90-day guideline.

If you're buying a flipped home, there are still numerous loopholes and unregulated areas that an unethical or inattentive flipper can exploit when flipping a house. It still remains up to the buyer and his or her attorney to perform all the necessary due diligence before buying. If the property is to be purchased with an FHA-backed loan, a flipped home may require more time to purchase because of the additional documentation required of the seller.

If you're interested in flipping, avoid the late-night infomercials blaring about how you can flip a home without putting in a dime of your own. Banks have extremely tight restrictions to watch for fraud. It's best to have cash on hand for this highly speculative form of investment: Cash you're able to part with (and potentially not recoup) for at least 90 days. A quickly-flipped home requires documentation on renovations, as well as additional appraisals, to justify a much higher resale price if the deal involves an FHA-insured loan. The average flipping time from purchase to resale is just over 106 days, according to market monitor RealtyTrac. Know this as well: Some properties have to become rentals before the flipper is able to get from the market what he or she thinks is the 'value' of the property. Are you prepared, legally, to become a landlord?

In the case of flipping, it's the old adage at play whether you're buying a flipped home or flipping one yourself… If it sounds too good to be true, it probably is. Get an attorney.

 

*The content and material in this original post is for informational purposes only and does not constitute legal advice.  

Photo by Victor Zastolskiy, used with permission.

Attorney Shannon Wynn: The power of advanced directives

There are dozens of intersections in life that call for an attorney's insight. Wynn at Law LLC gladly steps in to advise clients who have reached those intersections, like bankruptcy or buying a home. One of the most emotionally taxing of the intersections is how to handle the decisions at the end of a life, whether it's sudden or the result of a long-term illness. Planning ahead, before you reach this inevitable intersection, can make the situation more bearable, or at least manageable.

In one of our earlier articles, we talked about the Last Will and Testament -- a crucial part of estate planning after someone passes. A Living Will is a legal document that sets out a person's healthcare wishes in the event they cannot articulate the wishes. A Healthcare Power of Attorney (POA) is a separate alternative. The Living Will has your instructions -- what you will and will not permit. The POA designates an 'agent' to make the decisions. Usually, the agent is a spouse, but can be a close friend. No matter who you choose, you have to let that agent know your wishes clearly.

The POA is even more powerful when it goes beyond healthcare decisions to include financial decisions as well. This Durable POA ensures the person making the healthcare calls has the money to pay for the procedures. The signer gets to choose how limited in scope the POA is: For example, it can be limited to using bank accounts only and not things like selling the house.

Where Wynn at Law LLC adds value with such a POA is that the document and our Firm can be – if needed – the go-between if things get charged up among family members or family and caregivers. Things like resuscitation, painkillers, tube feeding, and organ donation can be powderkeg issues when they're not backed up by a Living Will or a POA.

'Why would you create a Durable POA over creating a Living Will?' is a common question. The answer is simple: The POA agent can represent your thoughts on things for which you didn't foresee in drafting a Living Will. You can't plan for everything in writing in a Living Will, and the bills don't stop just because a person is hospitalized. When you and your family come upon this intersection in life, these estate planning tools help keep the focus on the care you would have chosen and nobody has to guess.

*The content and material in this original post is for informational purposes only and does not constitute legal advice.  

Photo by Viktor Levi, used with permission.

Attorney Shannon Wynn: Flood damage and selling a property

The record-setting flooding we saw in Walworth, Racine, and Kenosha counties brings to mind an important disclosure topic for real estate transactions… but first, our thoughts and hearts at Wynn at Law, LLC go out to everyone impacted by the flooding. We hope things return to normal for all of you as quickly as possible.

In some of our earlier articles we’ve talked about real estate disclosures. Flood damage is one of those things that must be disclosed by the seller before the transaction. Specifically, the form asks if the property owner was ‘aware’ of ‘any’ past flooding. It’s difficult for anyone to not be ‘aware’ of the current flooding, the worst in history. The issue is the word ‘any.’ If a seller knew of flooding back in 2008, it has to be disclosed. If the sellers know the property flooded in 1973 – another historic flood event in our area – even if the homeowner didn’t live there, it has to be disclosed.

Past transactions on the real estate can identify flooding disclosures that happened before the current one.

Sellers should fully explain the circumstances behind any flooding damage and give as much accurate detail as possible. If it only happened once, say so. If it only happened in the record-smashing deluge we just went through, say so. Most importantly, in the disclosure, you can be very specific about the cleanup and repairs you made, as well as any steps you took to (hopefully) prevent the next massive downpour from causing the same damage this downpour created.

If a property was on the market before the rivers overflowed, the previous disclosure from before the flood might be inaccurate. In that case, the disclosure should be amended.

Both the buyer’s and seller’s attorney (and their real estate agents, too) have legal responsibilities related to the disclosure form. As fiduciaries, they are bound to advise their clients with entire openness. This requirement applies even if the seller just doesn’t want to disclose the current flooding because, ‘It was once in a lifetime and will never happen again and this will sabotage my sale or selling price.’

Does a buyer have to abort plans to buy a house just because it is or was ever in a flood? Of course not. Flooding in an extraordinary event like the one we’ve just seen does not mean the property will flood in every storm. If this storm tells us anything, it’s that even extraordinary records can fall.

 

*The content and material in this original post is for informational purposes only and does not constitute legal advice.  

Photo by Scott Stevens, used with permission.

Attorney Shannon Wynn: What exactly is ‘probate'?

Wynn at Law LLC provides estate planning services – wills are one example. ‘Probate’ is a commonly used term in estate planning, especially these days when many clients have an estate worth more than $50,000. First, a bit on probate… then why $50,000 is an important number.

Probate is a court process whereby a will is legally ‘proven’ as the true last testament of the deceased. Essentially, the document is reviewed and validated. It came to be a more common process in the 16^th century when greedy relatives (or non-relatives) began making phony claims on a dead person’s property. It comes from the same Latin roots as ‘probation.’ In probation, a person has to prove he can live within the law… in probate, a document has to be proven to be authentic and created within the law. Probation and probate have nothing else in common other than the root word, meaning proof.

The ruling of a probate court is the first step in resolving all claims and distributing the deceased person's property in a will. The court officially designates an executor to carry out the will’s instructions. Usually, the executor is named already when the person made out the will. If a will is contested, it happens in probate court.

What else happens in probate?

·         Creditors must be notified and legal notices published.

·         Homes/property/other possessions may have to be sold off to pay those debts, or otherwise make distributions evenly to the beneficiaries.

·         If there is a lawsuit over the death, or the deceased was party to pending lawsuits, those are noted and settled (if possible).

·         Estate taxes, gift taxes or inheritance taxes must be considered if the estate exceeds certain thresholds. Working with an estate planner can minimize these.

Some assets, like life insurance, are not counted because they are transferred directly to the beneficiaries and avoid probate. Death benefits are not included in an estate. Living Trusts – usually created to hold large assets – also are excluded from probate. Joint tenants (e.g. husband and wife) are allowed the joint property in a ‘right of survivorship’ if one dies, and this, too, avoids probate. Bank or investment accounts designated Transfer on Death (TOD) avoid probate as well. Real Estate can also be re-titled to avoid to probate, through tools such as a Transfer on Death Deed (TODD).

Here’s where the $50,000 comes into play. For estates in Wisconsin, after all those subtractions, the small estate threshold is $50,000. If the estate is valued below that and there is a will, probate is avoided. If there is no will, or if the estate is more than $50,000, probate is required. Most probate proceedings in Wisconsin aren’t very onerous. They are informal, with no squabbles between beneficiaries and few creditors. This is little more than an application to the court, followed by a summary judgment. A more formal proceeding requires the court to help distribute assets.

Wynn at Law LLC works with clients to secure their assets in a will or trusts to hold up in probate, or avoid it all together.

*The content and material in this original post is for informational purposes only and does not constitute legal advice.  

Photo by Marzky Ragma Jr., used with permission.

Attorney Shannon Wynn: Medical bills a threat to financial independence

We are frequently seeing clients with ‘surprise’ medical bills when Wynn at Law,LLC counsels people through bankruptcy proceedings. Catastrophic medical bills are, unfortunately, one of the more common reasons for Chapter 7. Usually those clients didn’t have insurance coverage. The surprise medical bills to which this article refers are bills health insurance did not cover.

For example, you schedule an in-network procedure. You’re assured your insurance is covering the cost. But a few weeks later, an OUT-of-network bill arrives. The Jan. 2017 Journal of the American Medical Association (JAMA) pointed out the problem. “The average anesthesiologist, emergency physician, pathologist, and radiologist charge more than four times what Medicare pays for similar services, often leaving privately insured consumers stuck with surprise medical bills that are much higher than they anticipated.”

Wisconsin, by the way, is among the states with the highest out-of-network markups according to the study.

As a patient, you don’t get to select the specialists like the anesthesiologists – who charge six times what insurance customarily pays based on the Medicare rate. But you do get the specialist’s invoice once your insurer carves out how much it will pay. States and Congress will sort out how customers avoid surprise billings. Maybe the solution is in Healthcare Reform… might be in state laws capping out-of-network charges… either way, it doesn’t change the immediate danger it puts your financial independence in.

Wynn at Law, LLC works with clients to try to avoid a bankruptcy filing if they can. Sometimes, it’s as simple as talking with the insurance company and the out-of-network provider about the crushing surprise bill.

Our team here at Wynn at Law LLC hope you had an enjoyable and safe Independence Day, and we want you to know that we’re by your side if your financial independence is put in jeopardy.

*The content and material in this original post is for informational purposes only and does not constitute legal advice.

Photo by Sean Prior, used with permission.

Attorney Shannon Wynn: Avoid these five small-business-crushing scams

Consumers aren’t the only victims of fraud. Wynn at Law, LLC hears about thousands of small business scams every year. A reward of our business is being able to work with entrepreneurs to get a business off and running (see related article). It doesn’t take much more than a single scam to derail that dream.

These days it’s fairly simple to pop up an official-looking website and professional – but fake – letterhead. Aside from the possible remuneration from and legal ramifications for the scammers, if they’re caught, once the business owner parts with the money for a scam, the money is gone.

Wisconsin’s Better Business Bureau notes, “We continually see various scams against small businesses and they seem to be increasing each year.” Some of the common small business scams reported to the BBB include:

1.       Phony invoices. Businesses receive fake invoices demanding payment for product or services they never ordered or received. Often, if you look closely, you’ll see fine print that identifies the bill as an actual solicitation for business. Generally, the amount is small enough to not raise a red flag. Make sure that the business billing you is a business with whom you are familiar. If not, question it. Wynn at Law LLC’s best small business clients limit the employees authorized to place orders or pay invoices.

2.       Directory scams. A problem that has plagued businesses large and small for decades involves deceptive sales for directories. Scammers call claiming they want to update the company’s information for an online directory… when they could be using the info to set up your business for identity theft. Otherwise, they may also try to upsell your listing in a directory that’s irrelevant to you or your customers, or doesn’t exist at all. Do not give out information about your business to anyone, unless you know for what the information will be used.

3.       Charity pitches. Even new businesses are routinely asked to donate funds to needy causes. While many requests are legitimate, every year small businesses become victims of fraudulent or deceptive charitable solicitation schemes. If the charity isn’t on give.org, don’t give.

4.       Coupon books. Small business operators are often approached to participate in coupon book promotions. They seem like an inexpensive way to advertise your start-up. Problems occur if the promoters change the terms of the coupons to make them more attractive to buyers, when the books are oversold or when books are primarily distributed outside our area.

The fifth scam is among the most prolific – with terrifying outcomes. Internet & phone scams are a common nightmare. Watch out for ransomware, phishing, URL hustles, and spoofing scams. Scammers play on fear, convenience and lack of technical knowledge. Installing a protective software program like Norton or McAfee is a good start. A ‘firewall’ is recommended because it keeps your inside information inside… which includes your customers’ information. These days, you’re flirting with disaster by clicking on any links in unsolicited emails. One recent tip we heard was to shut off the preview pane on email inboxes to avoid emails a spam filter missed.

*The content and material in this original post is for informational purposes only and does not constitute legal advice.

 Photo by Brian Jackson, used with permission.

Attorney Shannon Wynn: ‘By-Owner’ real estate sellers need protection

One article earlier in the Wynn at Law, LLC archives mentioned our current real estate market cycle as being a seller’s market. There’s not much supply, and plenty of demand. Even in a hot seller’s market, there’s a temptation to increase the net price received for the property by offering it For Sale By Owner, or FSBO. (Real estate pros pronounce it ‘fizzboh.’)

Professional realtors have a home-selling advantage by having access to the realty company’s ad money, marketing and presentation resources, and buyers. However, the cost of that advantage is about six percent of the sale. So, FSBO sellers take over the job of the listing agent hoping to pocket that six percent. Many solo sellers do hire professionals to appraise, stage, photograph, video, drone, design flyers, and help them with the paperwork. Some don’t, and just bank on it selling easily because of the market.

Even a realtor-oriented source like Realty Times concedes that a part of a hot market will go FSBO. That website’s tip – and ours – for those sellers is to get a lawyer: “If you have opted to do a realtor-free FSBO transaction this is definitely the time to call an attorney.”

Every real estate transaction requires a deed. It has to be accurate. It has to be on-time. Anyone can access the records at the register of deeds office to pull that off. As much fun as that sounds, can he or she also assure that deed is legally sound? No. Realtor transactions always have an attorney: The title company and lenders insist upon it for that very reason.

Something else to consider: Another way a good attorney has your back when you go solo is by being your surrogate if negotiations get sticky.

Getting a lawyer involved early – as soon as you decide to go it alone – gives the owner an edge by being ready for closing. It provides the peace of mind that comes from having trained eyes look for other factors impacting the closing… before the closing. (See our previous article)

 

*The content and material in this original post is for informational purposes only and does not constitute legal advice.

 

 Photo by Andy Dean, used with permission.

Attorney Shannon Wynn: When building a home, get lien waivers

A casual conversation with one of the many area realtors with whom Wynn at Law LLC works revealed an interesting take on the current real estate market in Walworth County. It’s a seller’s market right now (see related article). The demand outpaces the supply. That scenario is great for sellers, and it’s also great for those wishing to build rather than buy a home.

There are plenty of subdivisions in development in the area. Visitors from Chicagoland are usually struck by the amount of larger parcels available for country living, too. When you buy one and start to build – or if you’ve already broken ground – an important pair of words for your venture are: Lien Waiver.

A lien waiver is a legal document you have your contractors and subcontractors sign. It says – I’m paraphrasing – the contractor has been paid in full and releases any future claim on the property. What this document does is protect you from the contractor coming back to say such-and-such wasn’t paid for, or they neglected to invoice you for X component.

Wynn at Law LLC works with both, contractors and property owners, and we know most of our area contractors act entirely above-the-board when working on residential or commercial projects. Sometimes, legitimate expenses for which you weren’t invoiced get lost, forgotten, or delayed. Other times, a contractor might struggle financially and return to bill you. Protecting yourself and your property from unexpected claims once the work is complete is a wise peace-of-mind move.

Roofing. HVAC. Foundations. Plumbing. The dwelling itself.  Each of those are put together on your behalf by skilled tradesmen who are owed for their work. When a builder or contractor slaps a lien on the property because of amounts unpaid, they have been to a court clerk to get that lien. That doesn’t mean they are 100 percent entitled to the amount they claim to be owed, only that they have presented evidence that something wasn’t paid in total for the work they performed. A lien waiver signed as you deliver the final check on the final invoice protects you. This goes for home repairs, additions, remodels, as well as new construction.

There are waivers you can get during the project for work performed ‘to date’ as well… feel free to talk to us about those. And don’t be uncomfortable bringing up the subject of lien waivers: This is nothing new to any contractor. Be wary of one who won’t sign it.

 

*The content and material in this original post is for informational purposes only and does not constitute legal advice.

 

 Photo by Leena Robinson, used with permission.

Attorney Shannon Wynn: Minding summer’s attractive nuisances

 

Warmer weather has at last arrived. School’s winding down. That means more kids out and about. When a kid spots something in your yard and says, ‘Wow, that looks like fun,’ there is probably the potential for litigation. Wynn at Law LLC’s team isn’t the downer you’ll neglect to invite to your neighborhood party, but we do help clients stay clear of ‘attractive nuisance’ trouble. I’m talking about a pool. A trampoline. A ladder. A junked fridge. Kids are drawn like magnets to them and other adventures.

When adventure turns into trespass, misadventure and injury and it ends up in court, the property owner is under fire… not the trespasser.

Defining an attractive nuisance is lengthy but pretty cut-and-dried. It’s anything artificial on your property you know that can cause harm, especially to people too young or inexperienced to understand the risk, and you fail to take reasonable measures to eliminate the danger. It’s a mouthful. But so is defending your attractive nuisance in a court case.

Here’s a link to an interesting piece from the American Bar on home/property owner risks, and here are three common nuisances with some remedies that will help keep summer fun, safe, and litigation free.

·         Pools – even the small splash pools – are the leader in litigation. Property owners sometimes prevail in swimming pool injury cases, when they can show a trespassing child got into pool areas despite the owners' reasonable measures (high fences, locked gates) to keep them out.

·         Home construction projects draw in little boys like moths to a flame. Loose lumber scraps in the yard or dumpster are like gold to them. Newly dug foundation holes are an invite to treasure hunt. You should wall or fence off these areas well. Courts sometimes side with or exempt builders and construction companies in attractive nuisance cases: Their very businesses require them to maintain a temporarily hazard. However, the property owner should see the risk as incentive to minimize dangers to children.

·         Play structures are designed for kids, but are a risk to them as well. A fenced yard helps keep out younger or less experienced kids when it comes to skateboard jumps, trampolines, jungle gyms, and tree forts.

See the common theme here?  Fences. There’s an old saying that good fences make for good neighbors. The minor expense of a fence also makes good sense for protecting you from litigation.

 

 

*The content and material in this original post is for informational purposes only and does not constitute legal advice.

 

 Photo by Scott Stevens, used with permission.

Attorney Shannon Wynn: Being neighborly while protecting your rights

When you buy a property, one of the things Wynn at Law, LLC looks at closely is whether or not the property has easements. The most common easement is the right to travel over your land, like you'd give to the power company. This is known as a 'right of way.' Property owners commonly grant easements for the placement of utility poles, utility/cable/phone trenches, water lines, or sewer lines. If an easement is in place, the legal title to the property still remains in your name as the owner. The person or company granted the easement owns the right of way.

Seems pretty cut and dried. Everything is, until it isn't. With the amount of lake property, hunting land, and farmable acreage in Walworth county, there sometimes is access given to neighbors to have right of way to the water, woods, or fields. This isn't the same right of way you give WE Energies. This usually is considered 'permissive use' – best kept in writing with an attorney – or can be an actual easement. An actual easement by a neighbor over your property can devalue the property you're buying… and if you're a seller, it could scare off buyers who don't want neighbors on their land the same way you allow.

Easements are difficult to reverse, and you probably wouldn’t want to reverse it when you're talking about a utility company easement. We look at them to give you a little foresight just in case there is a conflict down the road. Permissive use, on the other hand, can be reversed. You can just revoke the permission, again, in writing.

Wynn at Law, LLC helps you walk that fine line between being neighborly and exposing your property and yourself to potential litigation. Easements do open the landowner up to some liability and some trespass you may not foresee. It's best to work with a neighbor on an airtight agreement on what you're granting, for which use, and when. Putting it in writing with signatures from all parties is the best way to protect your largest investment even when the situation for which you grant permission seems harmless at first. Verbal agreements do not stand up in court.

*The content and material in this original post is for informational purposes only and does not constitute legal advice.

 

Photo by John Panella, used with permission.

Attorney Shannon Wynn: Who needs estate planning? Everyone!

Wynn at Law, LLC clients sometimes have a shocked look when we bring up estate planning. “We're not dying!” “We're not old!” The best time to set in motion an estate plan is when you're neither old nor dying. No crystal ball or family tree can predict how or when you'll age, get injured, or pass on.

Estate planning is sometimes overlooked because a client doesn't think they have an estate. The fact is, everyone has an estate. Your estate is everything you own, including your car, home, other real estate, bank accounts, investments, life insurance, furniture, and personal possessions.

If you don't have a plan for these, the state has one for you

Wynn at Law, LLC works with you to ensure your wishes are carried out for whom you want to receive something of yours and when they are to receive it. Sounds like a will, right? A Last Will and Testament is part of the plan for when you pass on, but only scratches the surface of what estate planning entails. A thorough plan includes what happens if you're living, too.

You don't want the courts divvying up what's yours, but it will. Without an estate plan, the courts can choose how your assets are used to care for you through a conservatorship or guardianship. Those two, long, technical terms are the complicated way of saying you don't have a say in a process that's going to be open to the public and difficult to end even when you recover. An estate plan includes:  

·         Instructions for your care if you're suddenly disabled

·         Establishing a guardian for minor children if you can't care for them

·         Protecting property and assets from loved ones who might be irresponsible with money or their spouses, current or estranged.

While speaking of disability or death can be a morbid topic, it is a topic that can help you protect your being, your assets and your legacy. That is worth the peace of mind. 

 

*The content and material in this original post is for informational purposes only and does not constitute legal advice.

 

 Photo by, used with permission.

Attorney Shannon Wynn: Make an equitable real estate offer with these five tips

Wynn at Law, LLC is honored to be part of more successful real estate offers than we can count since the 2008 recession. Every one of them had five components in common that made for 'clean' bids and negotiations without animosity.

1) Know what you're buying. This means getting your property inspected and making sure that your offer is based on what the inspector says. Making an offer with the inspections waived is a huge gamble with one of your largest investments… it can be done, but it takes a perfect storm of knowing the property extremely well, a bargain on the market as-is, and a knowledgeable attorney in your corner. A tip: Walk through the house with an inspector before your offer.

2) Know what it's worth. Real estate 'comps' show what similar homes have sold for in the area. A good agent will produce them for you. You can also sleuth for them on your own through public records. You'll know what the owner paid when. You can also find permits issued for renovations the current owner made so you'll know the work was locally inspected.

3) Know your seller. Is the bank selling the property? Or is the owner distressed? Or is the family selling on behalf of a decedent? Each selling situation has its own nuances. For example, the bank is less emotionally attached to a number than a long-time owner.

4) Know your own finances. Offer c-a-s-h. This is true whether it is your cash, or a lender's money. From the bank’s perspective in a foreclosure or distressed property, by placing a cash offer they view you as not subject to financing. Regardless of whether it's bank-owned or family-owned property, the seller's been previously dealing with offers that involve financing.

5) Know your real estate attorney. Wynn at Law LLC knows the real estate in southeast Wisconsin, most of the agents and many of the local lenders. As we mentioned in a previous article, the sooner in the home-buying process our firm is involved, the more we can assist in a smooth, legally sound transaction.

The fair comes in August

Remember our article on honesty? If you're low-balling an offer just for the sake of doing it, think twice. This tactic can burn your bridges with local realty professionals and homeowners alike. 'Fair' isn't really a real estate term. It's a subjective concept: What's fair to the seller or the buyer or the bank are not likely to be the same. Wynn at Law LLC sees the best offers as being equitable, rather than fair. From our experience, the only 'fair' upon which there is objective agreement is the one at the fairgrounds in August.

*The content and material in this original post is for informational purposes only and does not constitute legal advice.

 Photo by Andy Dean, used with permission.

Attorney Shannon Wynn: Don’t cash out your IRA to avoid bankruptcy

Bankruptcy filing – or the prospect of it – usually puts Wynn at Law LLC clients in full-out panic mode. One of the most alarming, last-ditch, hail-Mary ideas coming from this desperation is to cash out a retirement plan to avoid bankruptcy court. In some cases, people can ‘borrow’ against their company retirement plan, usually a 401(k). This is as dangerous as cashing out to cover the financial struggle.

Don’t. Touch. This. Money.

Retirement money is tax-exempt until you touch it. If you touch it too early, you’ll be subject to taxes and penalties. Here’s a primer on a few of those consequences:

·         If you put the money in after paying taxes on it – like in a Roth IRA – you’ll pay tax on the earnings and a 10 percent penalty if the IRA is less than five years old and the owner is younger than age 59 ½.

·         If you put the money in tax free – like in a regular IRA or a 401(k) – the entire distribution is subject to income tax at your current rate, plus the 10 percent IRS penalty if the owner is younger than age 59 ½.

A tax specialist or accountant will give you clearer instruction on your particular situation’s consequences. Wynn at Law LLC is concerned about those immediate consequences, and the long-term ones. It’s your retirement income you’re putting in jeopardy. You’re mortgaging your entire future! If you leverage this nest egg to avoid bankruptcy filing today, you may have just kicked the can down the road, facing potential bankruptcy in your retirement years.

In almost every case, your qualified retirement plan is EXEMPT from your bankruptcy filing anyway. You get to keep the plan, your creditors don’t. But this goes back to a message from an earlier Wynn at Law LLC article on honesty: You have to disclose that your own a retirement account. It’s still going to be your retirement nest egg, they can’t touch it, but you can’t hide it.

 

 

*The content and material in this original post is for informational purposes only and does not constitute legal advice.

 Photo by Barbara Reddoch, used with permission.