BPE Law Gold River California Business Law Blog | BPE Law2024-02-29T05:37:11Zhttps://www.bpelawblog.com/feed/atom/WordPressOn Behalf of BPE Lawhttps://www.bpelawblog.com/?p=471182024-02-23T05:37:38Z2024-02-29T05:37:11ZZoning regulations
Local zoning ordinances in California impose limits on how people use private property. Finding a building or a vacant parcel with the right zoning is often of the utmost importance. Otherwise, a dental practice may need to undertake a very lengthy procedure to obtain a zoning variance or change the current zoning at a property. Both options can take months to accomplish and have no guarantee of success.
Whether buying is practical or not
Another key consideration that affects both legal and financial matters is whether the dental practice intends to rent a space or purchase it. Rental properties are often easier to come by but impose many more restrictions on property use.
There's always the possibility that the landlord might sell the property eventually, forcing the practice to relocate or renegotiate the lease for the space. The lease itself may include many surprises, as they are vastly different from residential leases. Those operating a dental practice have to check leases carefully to ensure they understand the terms of the agreement.
Purchasing properties can also be a complex process for a business. Securing financing can be a challenge, and finding the ideal location, especially if someone intends to build a new structure, can also be difficult. A prospective buyer also needs to perform due diligence before committing to an offer.
There are certain other practical considerations that may affect the process of selecting a location. Those concerns include the number of other nearby dental practices offering similar services and the proximity to existing facilities. For all of these reasons and more, having support when looking into expanding a dental practice can help owners in business managers more effectively navigate what is often a complex process.]]>On Behalf of BPE Lawhttps://www.bpelawblog.com/?p=471162024-02-08T06:07:08Z2024-02-13T06:06:54ZWhat’s the difference between easements in gross and easements appurtenant?
When evaluating the impact of an easement on the value or useability of a piece of property, it can be helpful to start by determining whether or not it is an easement in gross or an easement appurtenant.
An easement in gross is tied to a particular person or entity, regardless of who owns the property that is affected. Easements in gross typically cannot be transferred or inherited (unless that ability was part of the agreement that created the easement in the first place). They also do not automatically transfer when the property is sold. In other words, an easement in gross only encumbers your land so long as you own it.
An easement appurtenant, however, is a permanent encumbrance on the property and is tied to the land, so they transfer with the land when the property changes hands. For example, if your neighbor up the hill has an easement that allows them to build and use an access road to the main highway through the edge of your property, an easement appurtenant will grant all future owners of your neighbor’s home that same right.
Here’s the thing: It is not uncommon for people to disagree about whether an easement is an easement in gross or an easement appurtenant. Since an easement appurtenant can be imposed out of necessity or through implication, it is possible to end up in an unexpected dispute over someone’s accustomed right of access.
If you’re concerned about an easement, it may be time to seek legal assistance so that you can evaluate your situation in more personalized detail.]]>On Behalf of BPE Lawhttps://www.bpelawblog.com/?p=471112024-01-11T07:05:23Z2024-01-16T14:54:27ZHow does the law work?
If a seriously ill or injured patient has no advance directive or health care agent, a hospital must choose a surrogate from a list of those who appear to be closest to the patient. This typically includes spouses, long-term partners, parents, siblings and adult children or grandchildren. If there’s been a close friend at the patient’s side throughout their hospitalization, they may be on the list as well.
According to the law, “The patient’s surrogate shall be an adult who has demonstrated special care and concern for the patient, is familiar with the patient’s personal values and beliefs to the extent known, and is reasonably available and willing to serve.”
Why the law may not work as intended
Of course, hospital authorities and even the medical team treating the patient may have no idea of how close these “next of kin” or friends actually are to a patient and whether they know what they would want. A relative could be at their bedside only because they’re the only one in the area. A neighbor a patient barely knows may have brought them to the hospital and visited regularly.
You can avoid this scenario by creating an advance directive and giving a trusted person (related or not) power of attorney to be your health care agent. Give your regular medical provider and your designated agent copies of these documents. Keep them on your phone or elsewhere with you when you’re traveling in case you end up in the hospital far from home.
You may not think you’re ready to put a full estate plan (even a will) in place yet. However, documents like these can protect you and your rights while you’re still around.]]>On Behalf of BPE Lawhttps://www.bpelawblog.com/?p=471082023-12-29T10:06:05Z2024-01-03T10:05:32Zcomprehensive estate plan is the key to making sure your wishes are known and that your loved ones have the ability to follow them.
How can you pass down assets?
For passing down assets, crafting a will is a fundamental step for anyone who doesn’t prefer to utilize a trust for this purpose. A will is a legal document that outlines how you want your assets to be distributed after your death. Without a will or trust in place, state laws will dictate the distribution of your assets, which might not reflect your wishes.
You may also want to consider establishing a trust to provide you with even more control. Trusts offer various benefits, including potentially reducing estate taxes and providing for your beneficiaries in a manner that aligns with your specific intentions. Certain kinds of trusts can also protect your assets from creditors and better ensure privacy because they aren’t part of the public record.
How can you make your healthcare wishes known?
When making medical decisions, having an advance directive is crucial. This includes creating a living will and designating a healthcare power of attorney. A living will outline your wishes for medical treatment if you cannot communicate them yourself. A healthcare power of attorney appoints someone to make healthcare decisions on your behalf in the event of incapacitation. These tools help to ensure that your medical preferences are respected, even when you can’t articulate them.
What financial planning should you take care of?
Taking care of finances is also an important concern when it comes to estate protection. This encompasses a range of activities, from ensuring your estate has sufficient liquidity to cover debts and taxes to strategically planning for the potential impact of estate and inheritance taxes. Financial planning might also involve setting up payable-on-death accounts, which allow the funds to bypass the probate process and directly transfer to a named beneficiary.
Finally, you’ll want to keep in mind that estate planning is not a one-time event but an ongoing process. Reviewing and updating your estate plan regularly is essential, especially after significant life events like marriage, divorce, the birth of a child or significant changes in your financial situation.]]>On Behalf of BPE Lawhttps://www.bpelawblog.com/?p=471062023-12-22T08:23:20Z2023-12-27T08:22:49ZPowers of attorney (POAs) go into effect when you become unable to make decisions for yourself. You must choose individuals whom you know will abide by your wishes and act responsibly. The same person can be your financial and health care POA, or you can choose someone different for each area.
Power of attorney for health care
This gives someone the legal ability to make health care decisions for you. They work closely with your medical team to ensure they’re complying with your wishes. The person you name should understand what you want and be willing to be firm when relaying decisions to the medical team.
An important estate plan component that goes hand-in-hand with the health care POA is the advance directive. This document is a written account of the medical treatments you’re willing to accept and those you aren’t willing to in order to prolong your life.
Power of attorney for finances
This is known by other names as well, such as springing durable POA. It gives someone the legal ability to take care money matters for you. This includes paying bills, selling or purchasing assets and taking care of anything else related to finances that you choose. The power to take care of these matters ends when you pass away because those duties transfer to the executor of the estate.
Remember that POAs are only one component in the estate plan. You also have to consider other facets, including the will and trusts that are used to pass down assets to your loved ones. Having experienced estate planning guidance can help you make the best choices for you and ensure that they’re codified in accordance with California law.]]>On Behalf of BPE Lawhttps://www.bpelawblog.com/?p=471022023-11-23T04:54:06Z2023-11-29T04:53:26ZWording contingencies very carefully
Although sellers prefer offers with fewer contingencies, they are still important for buyer protection. The inclusion of an appraisal or financing contingency, possibly both, is one of the most important protections for a buyer making an offer.
Sometimes, buyers hoping to remain competitive while protecting themselves with a contingency specify if they are willing to cover some of the difference. Some buyers, for example, might retain $10,000 in cash that could go toward covering the difference in a low appraisal scenario.
However, it will be of the utmost importance to word such clauses very carefully and to ensure that covering the appraisal gap will not leave the buyer with more debt than they can handle or fewer resources than they need when moving into a new home. Buyers must be careful to retain enough funds to cover the difference between their offer and what the lender will finance.
Tracking the market carefully
The best way to protect oneself from an appraisal gap is to avoid offering more for a property than it is technically worth. Many buyers need the support of not just a buyer's agent but also an attorney to most effectively protect themselves and their resources when purchasing real property.
When prices have gone up significantly in recent years, as is currently the case, the risk for an appraisal gap is higher than it would be in regard to a more stable market. As a result, having the right protections in place can make all the difference for those buying in a competitive market.]]>On Behalf of BPE Lawhttps://www.bpelawblog.com/?p=471002023-10-27T11:13:54Z2023-11-01T11:13:27ZMyth: Only successful companies benefit from complex structures
It is quite common for people to assume that sole proprietorships and informal partnerships are sufficient for their own protection unless a company starts doing millions of dollars in business each year. The truth is that registered partnerships and limited liability companies (LLCs), as well as more complex corporate structures, are often useful from the first days of business operations. The sooner that someone takes the time to create a formal business entity, the easier it will be to protect themselves as thoroughly as possible against liability.
Myth: LLCs and corporations provide total liability protection
A surprising number of people wrongfully assume that someone who creates a formal business entity will have total protection from any personal liability related to the company's debts or a lawsuit brought against the organization. However, LLCs and corporations only serve to limit liability, not to eliminate it. Small mistakes when starting a company could lead to plaintiffs and creditors asking the courts to pierce the corporate veil. They could still potentially hold a business owner personally accountable for issues related to the company.
Myth: How someone starts the business dictates how it operates forever
Some people mistakenly believe that someone who begins operating a company as a sole proprietorship must continue to do so indefinitely or dissolve the company to start over if they want to change its structure. It is actually possible to change the form or type of business that someone runs as the company grows and expands. Doing so is often a challenge, but it is possible with the right support.
Of course, it is usually best to give careful consideration to the type of business that one wants to run and to follow the right business formation process in accordance with that decision. This is just one of the reasons why seeking legal guidance when forming new small business can make a big difference in the future operations of the company in question.]]>On Behalf of BPE Lawhttps://www.bpelawblog.com/?p=470982023-10-26T05:35:30Z2023-10-31T05:35:16ZCreate trusts
Trusts are some of the most customizable and useful estate planning tools. There is an assortment of different types of trusts available that can help testators achieve a range of different goals. From trusts designed to provide ongoing support for a loved one with special needs to trusts that help preserve certain assets for specific beneficiaries while giving others access to those resources. Assets moved into a trust generally do not have to pass through probate court as part of someone's estate.
Arrange to transfer assets ahead of time
Many financial institutions allow people to attach transfer-on-death designations to their accounts. Such designations allow a selected beneficiary to present paperwork, including a death certificate, and then take direct control over checking accounts or other financial reports. It is also possible to make advance arrangements for real property to transfer, possibly by executing a deed. Adding someone to title as a joint tenant with rights of survivorship would allow them to assume control over the testator's interest in the property without its value contributing to the value of their estate.
Make planned gifts
Another way that people keep their assets out of probate court and keep the total value of their estate low is by planning gifts to loved ones during their golden years. Making annual gifts to children or grandchildren might allow someone to witness them enjoying their inheritance. Additionally, those gifts will diminish what assets pass through probate court after someone's death.
Many people find that a combination of strategies may be necessary to keep as much of their property as possible out of probate court while better ensuring their comfort during their golden years. Seeking legal guidance is a good way to get started.]]>On Behalf of BPE Lawhttps://www.bpelawblog.com/?p=470962023-09-26T10:30:56Z2023-09-29T10:30:01Zsome key things to cover once you get started.
Clearly define the relationship
Incorrect classification of an employee as an independent contractor can get you into serious trouble with the Internal Revenue Service and create issues with your workers’ compensation insurance – so you want no ambiguities here.
Make sure that your agreement clearly defines the worker as an independent contractor and not an employee. It can also be wise to specify that the contractor is responsible for their own taxes so that there is no confusion. You also need to define what services or deliverables you expect to receive in exchange for payment. Be clear that the contractor is free to go about their business in their own way, so long as they provide what they’re being paid to provide within the expected timeframe.
Be very detailed about the financials
Generally speaking, independent contractors are expected to provide their own equipment, supplies, internet access and so on – while employees are not. Including this in your agreement not only eliminates any possibility of a dispute over the issue later, but also helps show that the worker is properly classified. You should also include language that makes it clear that, since they are not employees, the worker will have no access to all of the typical employee benefits, such as medical coverage, workers’ compensation or overtime.
Finally, the agreement should spell out exactly how the contractor will be paid, and when. If they’re paid by the project or piece (which isn’t uncommon), make that clear, and address any conditions that must be met (such as meeting project specifications) before payment will be disbursed.
Drafting effective contracts for your outsourced workers can be difficult to do on your own. Seeking experienced legal guidance can make sure that you don’t make any critical mistakes.]]>On Behalf of BPE Lawhttps://www.bpelawblog.com/?p=470932023-08-28T05:43:44Z2023-08-31T05:43:13Zunderwater or upside down mortgage occurs when someone owes more than the property is worth if they were to list it for sale on the current market.
People may end up with huge monthly payments and worried about whether they can ever recoup what they’ve invested in their property. Someone who is upside down on their mortgage may have to think about getting out of that situation, which may either involve a mortgage foreclosure or a short sale.
Short sales require a lot of planning
Lenders generally do not like to allow someone to sell a property for less than they invested in its purchase. However, when the alternative is a foreclosure scenario in which the company will likely expend quite a bit of money to regain possession of the property and could potentially lose money on the resulting sale, a short sale may be the preferable solution. It can also be a better solution for the homeowner, as they can control the timing and are less at risk of a sudden loss of their housing.
Short sales have less of a credit impact
A foreclosure is one of the most damaging records that could show up on someone's credit report. It indicates that they committed to a secured financial instrument and then failed to make payments as required by their contract. A foreclosure can have a long-term impact on someone's eligibility for home financing or other lines of credit for years after they fall behind. A short sale can potentially also leave blemishes on the credit report, but it will drag down someone's score less and will be less likely to outright eliminate someone's eligibility for financing in the future.
Those who can no longer continue making their mortgage payments or who worry about how being upside down on their home financing will affect their future may need to communicate with their lender about the possibility of a short sale. Exploring a short sale as an alternative to foreclosure could help those who bought a property, only to have the home value drop significantly afterward.]]>