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DO I NEED A TRUST? We are often asked whether a Revocable Living Trust is needed if the property is owned as tenants by the entirety or joint tenancy. If property is owned as tenants by the entirety or as joint tenants and there is a death of one of the owners, the title to the property will then be in the name of the survivor. Thus, owning property in joint tenancy or as tenants by the entirety could initially have a similar effect as if the property was held in revocable living trusts and the survivors are the designated beneficiaries. While the initial results could be the same, the difference is when the survivor passes away. No one can predict when a person will die or when something would happen to the surviving co-owners. Unless the survivor transfers his or her interest, the property would be probated upon the death of the last surviving co-owner. It will then be necessary to incur both the costs and the delay of the probate for that surviving co-owner. Some of the reasons for a revocable living trust are: 1) avoidance of
the time and expense of probate, especially for the surviving party; 2)
the revocable trust provides some measure of privacy in the transfer of
property. This is because there is typically no probate involved with
a revocable living trust; and 3) flexibility in the planning of one’s
estate. The property in the trust can be made subject to conditions and
terms. ***************************************************************** PROBLEMS INVOLVING CO-OWNERSHIP
It is also possible to resolve issues involving co-owners in a partition action. A partition action is a lawsuit to resolve differences among co-owners. The Court will decide if the property can be divided or if the property should be sold. In a partition action, adjustments can be made for prior advances of costs and expenses. An effort should be made to resolve disputes informally before filing a partition lawsuit because of the additional costs. It is often in everyone's best interest to avoid those fees and costs. The assistance of an experienced professional can often assist in the resolution of such problems.
Those who travel frequently know that there are increased and changing
security measures. A helpful site that
The Section 529 plans are not only a means of contributing for your child's college expenses. They can also provide an opportunity to do some creative estate planning. The person who owns the account has the right to change the beneficiary and select the investment strategy for the account assets. For example, if you were the account owner of a Section 529 plan, you could set up the account for your children. When your children have completed their education, you can roll the remaining funds plus any new contributions you make into an account for your grandchildren. There is also a specific provision under Section 529 which allows the owner of the account to take 5-years worth of exemptions in one year’s contribution. This allows for the removal of a sizeable amount of money very quickly from a person’s estate. One can contribute as much as $55,000 in a lump sum to a child's Section 529 account without gift tax consequences. The amount of this contribution can double to $110,000 if your spouse joins in the gift. There is a limitation. Once you make such a gift, you are precluded from making any further gifts to this 529 account for five years. Under current law, qualified withdrawals from the plan are exempt from federal income tax. This will expire on December, 2010 unless Congress extends the provision. ***************************************************************** TIPS FOR LANDLORDS
We occasionally encounter the situation where a landlord has a tenant who caused damage or did not pay the rent, but the Landlord is required by law to return the security deposit to the defaulting tenant. The landlord could have avoided this. Hawaii law permits the landlord to retain some or all of the security deposit if the landlord complies with state law. Hawaii Revised Statutes ' 521-44(c) provides as follows: In plain language, this means if the landlord has any reasons for keeping all or any part of the security deposit, the landlord must: 1) provide written notice to the tenant within fourteen (14) days after the lease is terminated, 2) explain in writing the reasons for the retention of any monies, and 3) provide receipts or estimate of repair for the amount being retained. If the landlord doesn't do this, the landlord must return the security deposit and face the prospect of suing the tenant for the amount in a separate action. The landlord will then have to consider the practicality of the costs for such a legal effort against the amount of the loss caused by the tenant. *****************************************************************
As I write this column, I am scheduled to undergo major open heart surgery tomorrow. The good news is that if you are reading this column, I survived and the surgery was a total success. The time period from diagnosis to surgery was very quick less than a week. Thus, many people did not know that I had the surgery until after it had been completed. Events like this reaffirm how quickly life can change. They also reveal the importance of the support we receive from others. I am very appreciative and grateful for the excellent medical care provided to me by the doctors and the nurses at Queen's Hospital, the unwavering support and encouragement of my staff, my family, friends and clients. Almost all the doctors who were involved in the surgery were concerned that I was an attorney. I secretly suspect that many were eager to operate on an attorney. There were also jokes about whether there was really a heart in there and whether there was any feelings in that heart. Thanks to each and every one of you for your support and encouragement. I look forward to many more years.
We have a new e-mail address. Effective immediately, each employee of
our firm
Abandoned vehicles: Call the city at 733-2530. Animal nuisance: Better Business Bureau of Hawaii: For the latest scams or to check a
company/charity’s record or to file Consumer protection: For consumer-related complaints/questions - call
state Office of Consumer Credit ratings: To have your name excluded from lists of names “prescreened”
and sold by credit bureaus - Environmental concern line (city): To report illegal dumping or pollution;
to volunteer for environmental Junk Mail: To stop unwanted junk mail, write to Mail Preference Service,
c/o Direct Marketing Association, Basic questions on Landlord/Tenant problems? Call the state Office of
Consumer Protection at Mediation: The Mediation Center of the Pacific (formerly known as the
Neighborhood Justice Center of Noise Complaints: Call police at 911 or Health Department’s noise and radiation branch at 586-4700. Overgrown trees: For state roads - call the Department of Transportation at 831-6703. Potholes: Rats and other pests: Call the states Vector Control Branch at 831-6767. Sanitation Complaints: Call the state Sanitation Branch at 586-8000. Sidewalk, overgrown lots, other housing code violations: Call the city at 527-6308. Street light outages: Street signs that are damaged/missing/faded: Call the city at 523-4029. Telemarketing calls: To reduce solicitations, write to Telephone Preference
Service, P.O. Box 9014,
REAL ESTATE JOKES
“A housewarming is the final call for those who haven’t sent a wedding present.” “The house was more covered with mortgages than with paint.” “Housebroke---What you are after buying a house.” “This house has every new convenience except low payments.” “They have an all electric home. Everything in it is charged.” “A typical home has a TV set that is adjusted better than the kids.” “Our new house has one down payment and 240 darn payments.” “Homesickness - What you feel every month when the mortgage is due.” “The sellers told me their house was near the water. It was in the basement.” “I have a temporary mortgage. What do you mean temporary? Until they foreclose.” “Realtor sign – We have “lots” to be thankful for.” “I listed a maintenance free house. In the last 25 years there
hasn’t been any maintenance.” “Houses today don’t have enough closet space. Sure they do. They’re just called guest bedrooms.” “This country is great. It’s the only place where you can borrow money for a down payment, get a 1st and 2nd mortgage and call yourself a homeowner.” “What is worse than watching a home inspector do his inspection?” Watching a father-in-law do HIS inspection. “What is worse than finding out your home has radon gas?” Finding out your HUSBAND has it too. “Why do most termites eat the wood at the foundation?” Their LEGS are too short to reach the roof. “What is the difference between a CELLAR and a SELLER?” Cellars are for wine and sellers WHINE if they don’t get their price.
Attorney: Publisher/Editor: Secretaries: Cora Anderson Printer: Phone: (808) 523-7544
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Copyright © 2009 by Harold Chu. All rights reserved. The information you obtained at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. |
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