Friday, June 26, 2009
President Obama Signs the Helping Families Save Their Homes Act
By: Chris Fisher
One of the most overlooked problems in the current foreclosure crisis has been the eviction of renters in good standing from properties in foreclosure even if not through their own fault. In an effort to prevent this the “Helping Families Save Their Homes Act of 2009” was signed by President Obama on May 20th. President Obama stated that “Because many responsible renters are being unfairly evicted from homes that go through foreclosure because the owners haven't been paying their mortgages, it requires banks to honor existing leases, or provide at least 90 days notice for renters on month-to-month leases.” This legislation will require that in the event of foreclosure, existing leases for renters will be honored and in cases of month-to-month leases, tenants are now required to be given a minimum of 90 days notice before eviction. Similar protections are also put in place for section 8 tenants.
“These landmark pieces of legislation will protect hardworking Americans, crack down on those who seek to take advantage of them, and ensure that the problems that led us into this crisis never happen again" said Obama who believes The “Helping Families Save Their Homes Act of 2009” will bring some much-needed help to many homeowners who are trying desperately to save their homes.
For more information regarding the "Helping Families Save Their Homes Act" Click Here to view the Official White House Press Release.
Friday, june 19, 2009
Change In Florida Law Could Allow Private Insurers To Withdraw Sinkhole Coverage On Policy Renewals
By: Brett Henson
Florida legislators are contemplating changes to the policy requirements for homeowner's insurance carriers that provide sinkhole coverage. Under the current law, authorized insurers in Florida are required to provide coverage for catastrophic ground cover collapse, and an additional premium for sinkhole losses on attached structures and personal property Fl. Stat. § 627.706(1). Florida homeowners have the option of purchasing policies from private insurers or the state-run Citizens Property Insurance Corporation. The proposed changes would allow private insurers to automatically drop sinkhole coverage upon renewal of the policy, unless the homeowner requests otherwise. This practice is already in place for homeowners insured by Citizens. Proponents of the bill include Senators Mike Fasano and John Legg, from New Port Richey, FL. According to Fasano and Legg, the prevalence of sinkhole damage to properties in Hernando and Pasco counties has contributed to the exodus of private insurers, such as State Farm. The Senators argue that allowing private insurers to exclude sinkhole coverage in policy renewals would encourage private insurers to continue to write policies in the state. Critics of the bill argue that it will leave consumers exposed to property loss resulting from sinkholes, and that such coverage should be necessary rather than optional.
The attorneys at Yesner & Boss, P.L., are prepared to handle claims relating to sinkholes. Insurance proceeds resulting from sinkhole damage can provide leverage in negotiating with banks for the payoff of a mortgage. Further, if you have received an initial payout under the policy for sinkhole damage, you may be entitled to accrued interest from the date of loss if the claim was processed for less than the readjusted amount. If you are facing foreclosure, or have sinkhole damage at your property, contact our office for a free consultation.
Thursday, june 04, 2009
Lifetime Transfers Of Gifts And The Advantages Of Making Transfers Prior To DeathBy: Jeff Thibault
Transferring property during one's lifetime can be extremely beneficial in several ways including facilitating the client's goals, protecting assets, minimizing tax liability, and avoiding the uncertainty and expenses of probate proceedings. Transfers of assets during one's lifetime can be a tricky subject but can be used extremely advantageous to a client's benefit as well as those to whom the property is transferred. The attorneys at Yesner & Boss, P.L. are well versed in state and federal estate, gift, and generation skipping transfer taxes which allow us to advise clients regarding the benefits and differences of various techniques of transferring assets including lifetime transfers.
Transfers of property during one's life are referred to as inter vivos (during life) transfers whereas transfers that take effect at one's death as provided by one's will or by state intestate (inheritance) laws are referred to as testamentary transfers. One of the greatest benefits of lifetime transfers is the significant tax savings possible as opposed to transfers taking effect at death which will be subject to estate tax.
One of the benefits of making transfers which are subject to gift tax rather than estate tax is the actual nature of each of the taxes themselves. Gift tax is "tax exclusive" which means that the gift tax base does not include the tax payable whereas estate tax is "tax inclusive" meaning that the estate tax base includes the tax payable. The difference between these two taxes is best shown by an example. In the situation where a parennt wants to trannsfer $1 million to their child and the tax rate is say 50%, if the parent transferred that $1 million at death to their child $500,000 would go to estate taxes and $500,000 would be left for the child. If however the parent gifted the same $1 million to the child before their death they would pay 50% of $1 million, or $500,000 to transfer the entire $1 million. Therefore upon death it would cost $500,000 to transfer $500,000 to the child, but by gift it would cost $500,000 to transfer $1 million.