NEW LAWS
Hawaii Corrects its Version of Megan's Law
On May 17, 1996, the federal government enacted "Megan's Law".
This law required states and the federal government to register any one
convicted of sex crimes against children. The federal law required that
information about registered sex offenders be available to the public.
The criteria for implementing the law was left to individual states.
In 2001, the Hawaii Supreme Court found Hawaii's law requiring the registration
of sex offenders unconstitutional. Up until that time, the web site containing
information pertaining to registered sex offenders was a heavily visited
site.
Effective July 1, 2002, to address the constitutional concerns that caused
the original Hawaii law to be declared unconstitutional, the sex offender
will be given a day in court to challenge whether he or she belongs on
this public register.
A sex offender's name and current address, change of address, work affiliations
and criminal offense summary will again be posted on the internet, along
with a recent photograph.
The site is not up yet. The State must first establish procedures to give
the convicted sex offender a day in court.
Penalties for Highway Racing
A new law attempts to address the highway racing that has recently become
prevalent. A driver who receives a third conviction within five years
lose the right to drive for three years and forfeits the vehicle. The
vehicle must be owned by the driver as well as be the same vehicle used
in all three convictions. The presiding judge will also have the discretion
as to whether to forfeit the vehicle.
Previously, the fine was $500 and six months in jail.
The first conviction under this new law provides for a maximum fine of
$2,000 and up to one year in prison for exceeding the posted speed limit
by 35 miles per hour or more. A second conviction can mean a one year
license suspension if the convictions occurs within five year of the first
conviction.
Pay your student loans!
Hawaii licensing authority can now deny, suspend, or revoke, or refuse
to renew or reinstate a professional or vocational license issued by the
State for any person who has defaulted or breached any obligation under
a student loan, student loan repayment contract, or scholarship contract
administered by the State or the federal government.
Identity Theft
To deter the growing number of persons who use electronic technology to
steal a person's identity, the State of Hawaii established the crime of
identity theft as a felony.
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Should I Bother With Renter's Insurance?
If you rent, should you get renter's insurance? Renter's insurance offers
the following benefits:
* Protects you against theft of or damage to your personal property.
* Covers some or all of your personal liability.
* Sometimes pay for temporary housing, if your rented home is damaged.
With renter's insurance, you decide how much total dollar value of your
property you want to insure. You should note that some policies will pay
you enough to cover the value of various items at the time of loss, while
others will cover replacement costs. For example, if you bought a computer
for $2,500 a few years ago, it's probably worth $250.00 now. If it is
suddenly ruined by water dripping onto it from an apartment above you,
one policy may pay you enough to buy a new computer with similar capabilities.
Another policy will only pay you its present value.
Renter's insurance can cost as little as $100 per year. Compared with
the losses you might incur, it certainly is worth looking into.
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A tip from our friends at Candon Consulting Group, LLC:
Are you paying more GET than necessary? The sublease credit has been
available since 1998 but is often overlooked. Section 237-16.5 of Hawaii
Revised Statutes reduces the pyramiding of general excise tax on rental
income from real property that is subleased. This section allows a lessee
who leases real property from a lessor a deduction from rental income
received when subleasing the same real property to a sublessee. This means
that if you lease property and sublease some or all of that property to
a sublessee, you are entitled to reduce the amount of rental income reported
on your general excise tax return. The maximum amount of the deduction
for 2002 is 62.5% of the amount of rent you as lessee pay to the lessor.
The percentage increases to 75% in 2003 and tops out in 2004 at 87.5%.
In calculating the deduction, an allocation of the rental income paid
to the lessor is required when less than 100% of the property is subleased.
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HUMOR
We always encourage our clients to think ahead. The following true report
of an incident in Michigan is an example of what happens when you fail
to do so.
A guy buys a brand new Lincoln Navigator for $42,500. His monthly payments
are $560. He and a friend go duck hunting
in winter. All the lakes are frozen. They go out on the lake with their
guns, a dog, and the new vehicle. They drive out onto the lake ice and
get ready. They want something for the decoys to float on - a hole large
enough to look like something a wandering duck would fly down and land
on. It, however, is going to take a little more effort than an ice hole
drill. They pull out a stick of dynamite with a short, 40-second fuse.
The two guys decide that they want to place the stick of dynamite on the
ice at a location far from where they are standing and the new Navigator.
Since they didn't want to take the risk of slipping on the ice when they
run from the burning fuse and possibly go up in smoke with the resulting
blast, they light the 40-second fuse and throw the dynamite.
The dog was a highly trained Black Lab used for retrieving, especially
things thrown by the owner. The dog takes off and captures the stick of
dynamite with the burning 40-second fuse about the time it hits the ice.
The two men yell, scream, and wave their arms. The dog, cheered on, keeps
coming. One of the guys grabs the shotgun and shoots the dog. The shotgun
is loaded with #8 buckshot, hardly big enough to stop a Black Lab. The
dog stops for a moment, slightly confused, but continues on. Another shot
and this time the dog becomes really confused and terrified. The dog takes
off to find cover, under the brand new Navigator. BOOM! Dog and Navigator
are blown to bits and sink to the bottom of the lake in a very large hole,
leaving the two men standing there with this "I can't believe this
happened" look on their faces.
The insurance company advised them that sinking a vehicle in a lake by
illegal use of explosives is not covered under their policy. The owner
of the Navigator still had yet to make the first of those $560 a month
payments!
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From the Desk of Harold Chu...
Every year, there are new laws enacted by our legislature. We have discussed
the recent new laws that pertain to real property and some of the more
interesting ones which may affect you. We summarized the new laws in layman's
terms. If you wish to have a copy of the actual bill, please contact us
and we will secure a copy for you.
Renters do not typically think of getting insurance, but we have recently
seen situations where renter's insurance would have been helpful. We suggest
you do some comparison shopping to see what renter's insurance is available
and compare premium rates.
Our friends at Candon Consulting alerted us to a tax credit available
for lessees who sublease all or part of their real property. You may wish
to check to see if the tax credit is applicable to you.
Many people view estate planning with fear. This is in part due to the
fact that the concepts are foreign to most people. We have explained basic
concepts of estate planning in simple language.
This newsletter also includes a copy of our Client's Guide. It addresses
some of the more commonly asked questions. A copy of the Client's Guide
will also be part of our Website.
We will soon be entering the holiday season with Halloween, Thanksgiving,
Christmas and New Year. The last three months of the year are generally
quite hectic.
Filings with State agencies tend to be slower during the latter part of
November and December. If you have matters which need to be taken care
of before the end of the year, we encourage you to consider taking care
of them as soon as possible.
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Three old sisters - 92, 94, and 96 years old respectively, all lived
together.
One day the eldest sister drew a bath. She put one foot in the water,
paused, then called downstairs to her sister, "Am I getting in the
tub or out of the tub?"
The middle sister started up the stairs to help out, then paused and called
back downstairs, "Am I going up the stairs or coming down the stairs?"
The youngest sister, who was sitting at the kitchen table having tea,
said, "I guess I'll have to help. I hope I never get that forgetful!"
and she knocked on wood as she said it. She got up then paused and called,
"I'll come up and help as soon as I see who's at the door!"
*****
Sitting behind a couple of nuns at the football game, three men decided
to badger the nuns in an effort to get them to move. In a very loud voice,
the first guy said, "I think I'm going to move to Utah, there are
only 100 Catholics living there." The second guy spoke up and said,
"I want to go to Montana, there are only 50 Catholics living there."
The third guy spoke up and said, "I want to go to Idaho, there are
only 25 Catholics living there." One of the nuns turned around, looked
at the men, and calmly said, "Why don't you all go to hell, there
aren't any there."
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BASICS OF ESTATE PLANNING
The following is a basic explanation of some of the fundamentals of estate
planning.
Wills. A will designates who will receive your property. It can also name
a guardian for your children and a personal representative for your estate
and create certain types of trusts. Without a will, state law may determine
how your assets are distributed. A will gives you control of that decision.
Trusts. A trust is a legal entity that is created usually for the benefit
of the creator and designated beneficiaries. The advisability of a trust
depends on your personal situation. Assets placed in a trust typically
avoid the time and expense of probate. The terms of a trust are generally
not made public. This has the benefit of privacy and shielding your heirs
from donation requests and solicitors for questionable investment schemes.
Trusts can be used to help reduce or avoid estate taxes. Trusts can be
quite flexible and can limit or place conditions on access to your assets.
Life Insurance. Proceeds from a life insurance policy can be used to
help pay taxes and final expenses, and potentially provide financial support
for your family. Structured properly the proceeds can bypass probate and
go directly to your beneficiaries.
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SOME CATCHY SIGNS:
On an electrician's truck: "Let us remove your shorts."
On a maternity room door: "Push. Push. Push."
On a fence: "Salesmen welcome! Dog food is expensive."
In a veterinarian's waiting room: "Be back in 5 minutes, Sit! Stay!"
At the electric company: "We would be de-lighted if you send in
your bill. However, if you don't, you will be."
At a Chicago radiator shop: "Best place in town to take a leak."
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A GLANCE AT LABELS SHOW THE FAR REACHING INFLUENCE OF ATTORNEYS:
On a bar of a Dial soap: "Directions: Use like regular soap."
On some Swanson frozen dinners: "Serving suggestion: Defrost."
On Marks & Spencer Bread Pudding: "Product will be hot after
heating."
On packaging for a Rowenta iron: "Do not iron clothes on body."
On Nytol Sleep Aid: "Warning: May cause drowsiness."
On most brands of Christmas lights: "For indoor or outdoor use only."
On Sainsbury's peanuts: "Warning: contains nuts."
On an American Airlines packet of nuts: "Instructions: Open packet,
eat nuts."
On a child's superman costume: "Wearing of this garment does not
enable you to fly."
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Before you criticize someone, you should walk a mile in their shoes.
That way, when you criticize them, you're a mile away and you have their
shoes.
===
Some days you are the bug; some days you are the windshield.
===
Generally speaking, you aren't learning much when your lips are moving.
Attorney:
Harold Chu
hchulaw@lava.net
Publisher/Editor:
Cora Anderson
canders@lava.net
Secretaries:
Cora Anderson
canders@lava.net
Printer:
NewTech Imaging
Phone: (808) 523-7544
Fax:: (808) 526-1231
E-mail: hchulaw@lava.net
http://www.attorneyhawaii.com
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