Where you can go wrong with a do-it-yourself will

  It is possible to write a will all by yourself - type up on a piece of paper detailed instructions on the distribution of your worldly goods after your death, without the help of an attorney. But if you are planning anything complicated, this might have all the authority of a grocery list that has been notarized.
  "I've seen a lot of wills that aren't executed properly," said Danielle Mayoras, an estate planner and the co-author of "Trial & Heirs: Famous Fortune Fights!" "I'm not saying you have to pay top dollar (for a lawyer), but people often leave simple things out."
And when there are mistakes, it is possible that the survivors of the deceased will end up in court, spending thousands of dollars to contest a will.
  Another complication is that each state has its own rules. "There isn't a pat answer I can give anyone, that 'here's what it takes to write your own will,'" said Bill McLoughlin, an estate planning attorney and business law professor at Otterbein University in Westerville, Ohio. "Some states recognize oral wills; some don't. In some states, you have to have the will signed at the end and witnessed by two disinterested parties. But some states require three signatures. "

  Even if no one contests your will, the courts still have to follow the letter of the law. Many courts will not validate provisions if the will is not properly executed (with the proper notarization and number of witnesses). Courts will also balk at provisions that do not make sense. Even uncontested wills can remain in expensive probate limbo, said McLoughlin.
  Because of the disparate nature of do-it-yourself projects, there are no aggregate statistics on how many people across the country file their own wills each year. But in 2012, Rocket Lawyer, one of the two most popular online legal sites, had 913,000 users draft wills. LegalZoom.com Inc, the other top site, logged 100,000 wills in 2011.
  Estate planners, not surprisingly, say that DIY legal software programs and online sites are inadequate for consumers' needs. "It would be like me doing a tune-up on my car when I'm not a mechanic," said Mark Doyle, an estate planner in Irvine, California.
  But even the online sites tout the value of bringing in a lawyer when things get more complex than directly handing down all your assets to your only living relative.
  Rocket Lawyer will introduce consumers to local attorneys at discounted rates. Robert Perez, a lawyer in Magnolia, Texas, who lists his services on the website, said that consumers should have an attorney review any do-it-yourself will, "just to be on the safe side."

  Chas Rampenthal, the general counsel for LegalZoom, said that the site has a plan where customers can pay a tiered pricing of $11.99 to $14.99 a month, allowing unlimited monthly consultations for a lawyer to review a will.

Here is what can go wrong, and how to avoid it:

1. Naming an executor

Designating a trusted individual to carry out your last wishes is a complicated choice. Whom you choose "is the real linchpin to the proper closing of your estate," said Rampenthal. Do not simply pick someone who cares about you, but someone who either has some financial acumen or knowledge of the law - or better yet, both.

2. Leaving stuff to pets

"If you want to make sure that your pet is taken care of, then don't leave your pet money in your will," warns Rampenthal, who explains that in the eyes of the law, the consumer is then leaving property to property. "Instead, you need to provide for your pet's care through a human." He adds that the individual should be sure to leave the named caretaker with all of the information he or she will need to care for the pet.

3. Putting conditions on heirs to receive payouts

This can lead to problems in court. "Often the conditions aren't spelled out with sufficient clarity," said Rampenthal. Sometimes the courts find the conditions illegal or impractical to enforce. For instance, said Rampenthal, if a parent wants their child to lose 20 pounds or graduate from college before receiving money, "someone has to stick around and make sure that the condition is enforced, and that can mean paying an executor additional fees for a long time."

4. Designating unusual end-of-life decisions

The main problem here, said Perez, is that some consumers confuse wills with living wills. If you put in your will, for instance, that you do not wish to be placed on life support in the event of a medical emergency, that document is not likely to be read until after you die, or possibly when you are in a lengthy coma. By then, it is too late.

5. Designating guardians for children

The failure to fill out a legal document designating a guardian for your children is a common error, say experts, as is not having a backup, in case the first guardian gets sick or dies.

6. Failure to coordinate beneficiary designations

You may have a life insurance policy or retirement account that has a beneficiary named as part of the process. If you have something different listed in the will, what is on the account takes precedence, said McLoughlin. So you may put in your will that you want your best friend's son, whom you always regarded as "family," to receive the funds from your 401(k). But if you die without having designated a beneficiary on the actual account, or have named somebody other than your best friend's son, the money likely will not get to him. The funds will go to the named beneficiary first, and then will follow a hierarchy through your blood relatives.

7. Funeral instructions

This is similar to the living will confusion: Most wills are not found or submitted to probate until after the funeral has taken place, said Rampenthal. If you are going to put your funeral instructions in a will, Rampenthal advises that you alert your executor - the person you name to handle the details of the will.

8. Dealing with blended families

"It probably won't be contentious if the family gets along," said Doyle, but if you know your kids from your second marriage don't think much of your kids from the first, you may want to consider taking inventory and being very clear about who gets what of your belongings.
"People will fight over scarves and jewelry, even though there's no value to them. It isn't the money so much as the principle over it," Doyle said.

Source: http://www.reuters.com/article/2013/01/17/us-retirement-wills-idUSBRE90G0WI20130117

22 Things Happy People Do Differently

There are two types of people in the world: those who choose to be happy, and those who choose to be unhappy. Contrary to popular belief, happiness doesn’t come from fame, fortune, other people, or material possessions. Rather, it comes from within.

 The richest person in the world could be miserable while a homeless person could be right outside, smiling and content with their life. Happy people are happy because they make themselves happy. They maintain a positive outlook on life and remain at peace with themselves.

The question is: how do they do that?

It’s quite simple. Happy people have good habits that enhance their lives. They do things differently. Ask any happy person, and they will tell you that they …

1. Don’t hold grudges.

Happy people understand that it’s better to forgive and forget than to let their negative feelings crowd out their positive feelings. Holding a grudge has a lot of detrimental effects on your wellbeing, including increased depression, anxiety, and stress. Why let anyone who has wronged you have power over you? If you let go of all your grudges, you’ll gain a clear conscience and enough energy to enjoy the good things in life.

2. Treat everyone with kindness.

Did you know that it has been scientifically proven that being kind makes you happier? Every time you perform a selfless act, your brain produces serotonin, a hormone that eases tension and lifts your spirits. Not only that, but treating people with love, dignity, and respect also allows you to build stronger relationships.

3. See problems as challenges.

The word “problem” is never part of a happy person’s vocabulary. A problem is viewed as a drawback, a struggle, or an unstable situation while a challenge is viewed as something positive like an opportunity, a task, or a dare. Whenever you face an obstacle, try looking at it as a challenge.

4. Express gratitude for what they already have.

There’s a popular saying that goes something like this: “The happiest people don’t have the best of everything; they just make the best of everything they have.” You will have a deeper sense of contentment if you count your blessings instead of yearning for what you don’t have.

5. Dream big.

People who get into the habit of dreaming big are more likely to accomplish their goals than those who don’t. If you dare to dream big, your mind will put itself in a focused and positive state.

6. Don’t sweat the small stuff.

Happy people ask themselves, “Will this problem matter a year from now?” They understand that life’s too short to get worked up over trivial situations. Letting things roll off your back will definitely put you at ease to enjoy the more important things in life.

7. Speak well of others.

Being nice feels better than being mean. As fun as gossiping is, it usually leaves you feeling guilty and resentful. Saying nice things about other people encourages you to think positive, non-judgmental thoughts.

8. Never make excuses.

Happy people don’t make excuses or blame others for their own failures in life. Instead, they own up to their mistakes and, by doing so, they proactively try to change for the better.

9. Get absorbed into the present.

Happy people don’t dwell on the past or worry about the future. They savor the present. They let themselves get immersed in whatever they’re doing at the moment. Stop and smell the roses.

10. Wake up at the same time every morning.

Have you noticed that a lot of successful people tend to be early risers? Waking up at the same time every morning stabilizes your circadian rhythm, increases productivity, and puts you in a calm and centered state.

11. Avoid social comparison.

Everyone works at his own pace, so why compare yourself to others? If you think you’re better than someone else, you gain an unhealthy sense of superiority. If you think someone else is better than you, you end up feeling bad about yourself. You’ll be happier if you focus on your own progress and praise others on theirs.

12. Choose friends wisely.

Misery loves company. That’s why it’s important to surround yourself with optimistic people who will encourage you to achieve your goals. The more positive energy you have around you, the better you will feel about yourself.

13. Never seek approval from others.

Happy people don’t care what others think of them. They follow their own hearts without letting naysayers discourage them. They understand that it’s impossible to please everyone. Listen to what people have to say, but never seek anyone’s approval but your own.

14. Take the time to listen.

Talk less; listen more. Listening keeps your mind open to others’ wisdoms and outlooks on the world. The more intensely you listen, the quieter your mind gets, and the more content you feel.

15. Nurture social relationships.

A lonely person is a miserable person. Happy people understand how important it is to have strong, healthy relationships. Always take the time to see and talk to your family, friends, or significant other.

16. Meditate.

Meditating silences your mind and helps you find inner peace. You don’t have to be a zen master to pull it off. Happy people know how to silence their minds anywhere and anytime they need to calm their nerves.

17. Eat well.

Junk food makes you sluggish, and it’s difficult to be happy when you’re in that kind of state. Everything you eat directly affects your body’s ability to produce hormones, which will dictate your moods, energy, and mental focus. Be sure to eat foods that will keep your mind and body in good shape.

18. Exercise.

Studies have shown that exercise raises happiness levels just as much as Zoloft does. Exercising also boosts your self-esteem and gives you a higher sense of self-accomplishment.

19. Live minimally.

Happy people rarely keep clutter around the house because they know that extra belongings weigh them down and make them feel overwhelmed and stressed out. Some studies have concluded that Europeans are a lot happier than Americans are, which is interesting because they live in smaller homes, drive simpler cars, and own fewer items.

20. Tell the truth.

Lying stresses you out, corrodes your self-esteem, and makes you unlikeable. The truth will set you free. Being honest improves your mental health and builds others’ trust in you. Always be truthful, and never apologize for it.

21. Establish personal control.

Happy people have the ability to choose their own destinies. They don’t let others tell them how they should live their lives. Being in complete control of one’s own life brings positive feelings and a great sense of self-worth.

22. Accept what cannot be changed.

Once you accept the fact that life is not fair, you’ll be more at peace with yourself. Instead of obsessing over how unfair life is, just focus on what you can control and change it for the better.

Source: 22 Things Happy People Do Differently

C-CORPORATION vs S-CORPORATION vs LLC - Which entity to choose?

Which entity to choose?

It is all confusing. Which entity to choose? LLC or Corporation? Which tax status? Sub-S? LLC with an 8832? How do you document percent ownership among partners? Who has decision-making power, voting rights? Who gets what in dissolution? What about taxes? It is critical to have a business lawyer advise you specifically on each topic, after taking into account your exact legal and tax position.
What should you do first?  Start a business relationship with an experienced business lawyer. If you are considering starting a business, your first decision should be to start a relationship with a knowledgeable business formation and incorporation attorney.  Law Offices of Inna Fershteyn will be happy to assist you.  But before we begin, lets first pick the entity we are going to use to start our business.

Law Offices of Inna Fershteyn has put together a chart to help our clients choose what entity may be more appropriate for them.
  

DIFFERENCE BETWEEN CORPORATION & LLC

 

There are many important differences between the corporation and LLC.

First, the entities are taxed differently. An LLC is a pass-through tax entity. This means that the income to the entity is not taxed at the entity level; however, the entity does complete a tax return. The income or loss as shown on this return is "passed through" the business entity to the individual shareholders or interest holders, and is reported on their individual tax returns.    

With a standard corporation, the corporation is a separately taxable entity. Corporations are treated as a separate legal taxable entity for income tax purposes. Therefore, corporations pay tax on their earnings. If corporate earnings are distributed to shareholders in the form of dividends, the corporation does not receive the reasonable business expense deduction, and dividend income is taxed as regular income to the shareholders.

Second, LLC's are less rigid in their structure than corporations, so you have more flexibility in adapting the LLC to your unique business.  The Operating Agreement of a LLC can be structured in a limitless amount of ways.  Law Offices of Inna Fershteyn will be happy to assist you with negotiating and drafting an LLC Operating Agreement for your business. 

Third difference is corporate formalities:  A corporation is a formal entity where officers and directors are required.  An LLC, on the other hand, can be "member managed" and run in a less formal way.  For small, start-up businesses, less formality means you can focus on making money rather than administrative work.

What is a difference between an S-Corporation and a C-Corporation?

All corporations start as a "C" corporations and are required to pay income tax on taxable income generated by the corporation. A C corporation becomes a S corporation by completing and filing federal form 2553 with the IRS. An S corporation's net income or loss is "passed-through" to the shareholders and are included in their personal tax returns. Because income is NOT taxed at the corporate level, there is no double taxation as with C corporations. Subchapter S corporations, as they are also called, are restricted to having no more than 100 shareholders.

What is a difference between an S-Corporation and an LLC?

While the S corporation's special tax status eliminates double taxation, it lacks the flexibility of an LLC in allocating income to the owners. An LLC may offer several classes of membership interests while an ‘S’ corporation may only have one class of stock.

Any number of individuals or entities may own interests in an LLC. However, ownership interest in an ‘S’ corporation is limited to no more than 100 shareholders. Also, ‘S’ corporations cannot be owned by ‘C’ corporations, other S corporations, many trusts, LLCs, partnerships, or nonresident aliens. Also, LLCs are allowed to have subsidiaries without restriction.

Comparison Chart of C-Corporation, S-Corporation and LLC:

DESCRIPTION	C-CORPORATION	S-CORPORATION	LLC (Limited Liability Company)
Type of Ownership	Stock, there maybe different classes.	Stock, but only one class. But can have voting and non-voting.	Membership Interests. There may be different classes of membership.
Eligible Owners	No restrictions.	100 shareholder limit. No non-individual and no non-resident alien shareholders.	No restrictions.
Management	Managed by director(s) and officer(s).	Directors and officers.	Managed by all members or designated manager(s).
Allocations of Ownership	No. Dividends must be paid based upon stock ownership.	Income, gain, and loss pass through to the shareholders based on percentage of shares owned.	Permitted if the allocations have substantial economic effect.
Transfer of Ownership	Shares freely transferred.	Shares can be transferred only to eligible S corporation shareholders.	There maybe restrictions under certain state laws.
Liabilities and Basis	Not increased.	Not increased.	Increased.
Tax Upon Sale	Potential double taxation. Corporation is taxed on sale of assets, shareholders taxed on dividends or capital gains tax.	Single tax at member level. Potential built-in gains tax if corp. had appreciated property at time of S corp. election.	Single tax at member level upon sale of appreciated assets. Generally, no tax on distribution of appreciated assets.
Fringe Benefits	Shareholders - Employees are eligible for most.	2% shareholders are ineligible for certain ones.	Members are ineligible for certain ones.
Pass Through of Losses	Losses not passed through.	Losses passed through to shareholders, subject to certain restrictions.	Losses passed through to members, subject to certain restrictions.
Fiscal Year	May use any fiscal year. Personal Service Corps must use a calendar year, subject to certain exceptions.	Must use calendar year, subject to certain exceptions.	Must use tax year of members having a majority interest in the LLC, or the tax year of all principal member if there is no majority member.
Liability of Owner	There is limited liability for shareholders, officers, and directors.	There is limited liability for shareholders, officers, and directors.	There is limited liability for owner(s) and manager(s).
Duration	Indefinitely.	Indefinitely	Dissolves at the time specified in the Operating Agreement or upon the loss of a member unless other members agree to continue.

Justice, English style

LONDON — A sensational trial that featured a leading politician, his extramarital affair, a speeding ticket, his now-divorced wife and her decision to wreak her revenge ended on Monday with a judge sending both of them to prison.  More ...