Madison digital estate planning service sold to Swiss firm

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Entrustet, a Madison digital estate planning services company, has been acquired by DSwiss Ltd. of Zurich Switzerland for an undisclosed amount.

The combination of the two companies, both founded in 2008, will make DSwiss’ SecureSafe product the premier service for high-security data storage, the companies said.

The acquisition extends DSwiss’ reach into the U.S. and “shows our business partners, investors and other competitors that we plan to stay at the top of this market,” said Christian Schwarzer, chief executive officer of DSwiss.

Entrustet was formed by Jesse Davis and Nate Lustig, twenty-something entrepreneurs with a vision for how their company could compete in the “digital afterlife” industry. Entrustet allows users to create a list of online accounts and computer files and decide whether they should be deleted or transferred to an heir when they pass away. The company has partnered with hundreds of attorneys to help them create digital estate plans for their clients.

In 2010, Davis and Lustig received a $40,000 grant and free office space from the Chilean government to temporarily move their company to Santiago, Chile for six months. To apply for the program, they created a video where they cooked Chilean dishes and discussed how they were eager to mesh Chilean and Midwestern culture.

DSwiss specializes in high-security Internet services and the long-term preservation of digital assets. Its SecureSafe product provides a secure, online service for password and document storage.





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© 2012, Journal Sentinel Inc. All rights reserved.

Article source: http://www.jsonline.com/business/madison-digital-estate-planning-service-sold-to-swiss-firm-i352b0j-147936785.html

Former Black Eyed Peas business manager files for bankruptcy

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Sean Larkin at far right
A music industry business manager who has acknowledged failing to file income-tax returns for the Black Eyed Peas and other clients has filed for bankruptcy.

In a petition Sunday seeking Chapter 7 protection in the U.S. Bankruptcy Court in Los Angeles, a lawyer for Sean Larkin estimated his debts at between $500,000 and $1 million.

The Peas stopped working with Larkin, 41, after learning he had not filed state and federal returns for years. He is being sued by the group’s guitarist and another client, a television executive, for breach of contract. The lawsuits accuse Larkin of hiding letters from the IRS and state tax authorities demanding payment of back taxes.

In a deposition this year in the executive’s case, Larkin admitted that he hadn’t filed the returns and testified that he was “overwhelmed by work flow” after the Peas hit it big.

Larkin’s 5% cut of the Peas’ income — a stream of revenue from touring, merchandise, music sales and endorsement deals — should have made him a multimillionaire, but court filings and the bankruptcy papers indicate the business manager is broke.

In the bankruptcy filing, Larkin’s lawyer estimated his assets at less than $500,000 and wrote that he owed money on his Sherman Oaks condominium and on a Ford minivan. He also owes more than $1 million in taxes, public records show.

Larkin’s lawyer did not immediately return a message seeking comment.

ALSO:

Loyal black Lab refuses to leave side of dog fatally hit by car

Bay Area sailing community reeling after deadly racing accident

Porn actor’s cause of death could be determined Tuesday, official says  

– Harriet Ryan

Photo: Michael Jurkovac, will.i.am, Fred Goldring and Sean Larkin at the 35th Annual Creative Arts Emmy Awards in 2008. Credit: Marc Bryan-Brown

Article source: http://latimesblogs.latimes.com/lanow/2012/04/black-eyed-peas-former-business-manager-bankruptcy.html

Using Testamentary Powers Of Appointment To Create Incomplete Gifts – The IRS …

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In Chief Counsel Memorandum 201208026, the IRS has indicated its hostility to the use of testamentary powers of appointment to avoid gift tax through the creation of incomplete gifts in many circumstances.

Facts. Two donors transferred property to a trust. Their adult child is the sole trustee. The trust beneficiaries are the donors’ children, other lineal descendants, and their spouses. The trust is irrevocable, and the donors have no power over income or principal. However, they do have testamentary limited powers of appointment. The trustee has absolute and unreviewable discretion to administer the trust for the beneficiaries or a charitable organization.

The Issue. Whether the retained testamentary powers of appointment resulted in incomplete gifts. More particularly, did the grantors depart with sufficient dominion and control over the transferred property to constitute a completed gift?

Treas. Regs. § 25.2511-2(b) provides the general rule as to what is a complete (or incomplete gift). It provides:

As to any property, or part thereof or interest therein, of which the donor has so parted with dominion and control as to leave in him no power to change its disposition, whether for his own benefit or for the benefit of another, the gift is complete. But if upon a transfer of property (whether in trust or otherwise) the donor reserves any power over its disposition, the gift may be wholly incomplete, or may be partially complete and partially incomplete, depending upon all te facts in the particular case.

Who Cares? Before diving into the issue, the question is who is affected? Using a power of appointment to create an incomplete gift is a popular planning device that allows a transfer of assets to an irrevocable trust without incurring a current gift tax. It is heavily used in asset protection trust planning – that is, to move assets into a trust that is protected against the donor’s creditors. This protection may arise from general creditor protection principles as an irrevocable transfer that does not otherwise run afoul of fraudulent conveyance concerns. Or perhaps it involves a transfer to a creditor protection trust in a state or foreign jurisdiction that provides explicit creditor protection for the grantor, even if the grantor retains a discretionary term interest in the trust. Anyone who has used a testamentary power of appointment to avoid a current gift on such transfers has cause for concern, since what was thought to be a nontaxable transfer may now be a taxable gift.

IRS Methodology. The CCM analyzed the income and remainder interests separately. The CCM concluded that the powers of appointment only affect the remainder interests. They have no impact on what beneficiaries will receive distributions during the term interest nor which beneficiaries will receive distributions. Therefore, the portion of the gift relating to the term interest is complete.

What About Treas. Regs. §25.2511-2(b)? A major source of authority that a retained testamentary power of appointment creates an incomplete gift is Treas. Regs. §25.2511-2(b). That Regulation provides:

…if a donor transfers property to another in trust to pay the income to the donor or accumulate it in the discretion of the trustee, and the donor retains a testamentary power to appoint the remainder among his descendants, no portion of the transfer is a completed gift. On the other hand, if the donor had not retained the testamentary power of appointment, but instead provided that the remainder should go to X or his heirs, the entire transfer would be a completed gift.

This language is clear, at least if the donor as the only term income beneficiary. However, in the CCM, the donors had no retained interest in the term interest. Presumably, this was enough to distinguish away the Regulation, although the Chief Counsel Memorandum did not discuss the application (or nonapplication) of the Regulation.

But is failing to have a retained discretionary income interest in the grantor enough of a fact change to warrant the rejection of the Regulation’s incomplete gift finding? On the one hand, one can argue yes. Looking at the term interest, if the donor is the sole discretionary income beneficiary, at the time of the gift it can be said with certainty that nothing will be going out to third parties during its term, so there should be no gift. While accumulated income will eventually go to the remaindermen, the remainder interest is clearly incomplete per the testamentary power of appointment. If the grantor is not the beneficiary of the term interest, then a different result like the CCM may be called for. Thus, there is an argument that the identity of the term interest beneficiaries is relevant to this analysis. However, it would seem that these matters go more towards the value of what is given away (i.e., the AMOUNT of the gift) rather then retained dominion and control (i.e., whether the gift is complete) since in either situation the grantor is not making the decisions on distributions during the term interest.

On the other hand, the Regulation provides that if there was no testamentary power of appointment, there is still a gift of the “entire transfer.” The retained interest of the donor is ignored – but again, it may enter into the value of the gift. Since in that situation there is a gift of the “entire transfer,” one can craft an argument that it is not the retained interest of the grantor that is relevant to a complete or incomplete gift – instead it is ONLY the presence or absence of the testamentary power of appointment that dictates whether there is a completed gift. Stated another way, the retained donor interest did not avoid a gift of that portion of the trust when there was no testamentary power of appointment, so it appears to be irrelevant to the completed gift analysis.

This retained interest of the grantor factor is relevant not just for the facts of the Chief Counsel Memorandum, but as to many asset protection trusts when the donor retains a discretionary interest in income and/or principal during the term interest, along with other beneficiaries. Since there are now other beneficiaries that share the term interest with the donor, is that enough to create a completed gift notwithstanding a testamentary power of appointment? These facts fall inbetween the Regulation where the donor is the only term interest beneficiary, and the CCM where third parties are the only term interest beneficiaries. Which analysis controls – the incomplete gift conclusion of the Regulation or the complete gift conclusion of the Chief Counsel Memorandum?

The Real Kick in the Teeth – Section 2702. While the term interest may constitute a gift under the IRS analysis, the CCM advises that the gift of the remainder interest is incomplete. This means that the taxable gift is only of the portion of the value of the transferred property allocable to the term interest – right? Well, if the trust beneficiaries are family members of the donor, then, according to the Chief Counsel Memorandum, 100% of the value of the transferred property is taxable – ugh!. The Memorandum provides:

Generally, under § 2702(a)(2), the value of any retained interest which is not a qualified interest shall be treated as being zero. Section 25.2702-2(a)(4) provides that an interest in trust includes a power with respect to a trust if the existence of the power would cause any portion of a transfer to be treated as an incomplete gift. Accordingly, under § 25.2702-2(a)(4), the Donors’ retained testamentary powers are interests, and the value of their retained interests is zero. Therefore, the value of the Donors’ gift is the full value of the transferred property.

What We Know. The CCM raises a lot of questions. Whether the analysis is correct under its facts, and whether the holding will also apply when the grantor also has a retained discretionary interest during the term period may require a court determination.

What we do know is that relying on a testamentary power of appointment to create an incomplete gift is more risky than it was before, except if the only term beneficiary is the grantor. Planners should include some other method to bolster the incomplete gift status. Possibilities of additional methods include a lifetime limited power of appointment in the donor or a retained power to veto trust distributions – but such powers should be squared with creditor protection objectives and relevant state law, and grantor trust rules if those are an issue.

Chief Counsel Memorandum 201208026

Article source: http://www.jdsupra.com/post/documentViewer.aspx?fid=0e78f54d-aa77-4e69-9693-d9e5d4031425

St. Mark A.M.E. Church in Cranford to host free estate planning seminar – Cranford Chronicle

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CRANFORD — St. Mark A.M.E. Church announces the “Family Love Letter” a free mini-estate planning seminar to be held 10 a.m. to noon, Saturday, May 19, at the church, located at 34 High St. in Cranford.

This practical workshop is aimed at helping people centralize their financial, legal and personal information so family and friends know how to handle their end-of-life issues.
Facilitated by Marilyn Romoser of AXA Advisors, the seminar includes the Family Love Letter workbook to help attendees organize the details of their wills, social security information, insurance policies, mortgage and banking accounts, computer passwords, contacts to advisors and more.

The seminar will address estate planning documents, the importance of powers of attorney (medical and general), and other details on the content and use of the Family Love Letter.

“We decided to offer this program because we recognize that many people are challenged when a loved one passes or is incapacitated and unable to make their own decisions,” said Rev. Stephen Bryant, pastor of St. Mark. “The Family Love Letter is a sensitive and practical way for us to help not only our members, but members of the community to offer their families one of the greatest gifts of all—the comfort of knowing end-of-life wishes and how to address financial matters in a time of great emotional stress.

To register or for more information about the Family Love Letter seminar, call: St. Mark A.M.E at: 908-276-3449. Registration is required by phone or RSVP at: http://www.stmarkschurch.evenbrite.com/.

Light refreshments will be provided. Unfortunately, childcare is not available.

Article source: http://www.nj.com/cranford/index.ssf/2012/04/st_mark_ame_church_in_cranford.html

Biz Brain: What happens if my friend buys luxury goods with his credit card … – The Star-Ledger

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Q. A friend of mine has filed for bankruptcy. I was shocked to learn that his attorney told him to go out and charge whatever he wanted to on his various credit cards prior to the hearing on his bankruptcy application. In other words, run up as much debt as you want/can because you won’t have to pay for it. Is there no law against this? Shouldn’t his ability to charge be hampered as soon as the papers are filed? This is his third bankruptcy in 20 years. Why should he get the huge flat screen, clothes, furniture, trips and more, while I pay my bills and can’t afford to do/get what he does?
— Gary

A. Shame on your friend, and on your friend’s attorney.

It sounds like your friend has filed a Chapter 7 bankruptcy, in which he’s seeking a discharge of his debts in exchange for exposing his assets to analysis and possible liquidation by a Chapter 7 trustee for the benefit of creditors, said Ilissa Churgin Hook, a bankruptcy attorney with Yablonsky Assoc. in Wayne.

“Normally, creditors receive notice of a bankruptcy filing from the Clerk of the Bankruptcy Court within a few days to a week after the filing,” Hook said. “Most creditors will immediately shut down the credit cards/credits lines, thus hampering your friend’s ability to use his credit cards after the filing of the bankruptcy case.”

As for the advice given by the attorney, Hook said she strongly disagrees.

She said the bankruptcy code provides, generally speaking, for a fresh start for honest debtors who lack the ability to pay their debts.

“While it is generally acceptable for a debtor to charge necessities such as food and gas on a credit card in the months leading up to a bankruptcy filing, the charging of luxury items and/or the taking of cash advances within a short period of time prior to a bankruptcy filing can be suspect, and even lead to a successful objection to the debtor’s discharge by a creditor or the Chapter 7 trustee,” she said.

Creditors and the Chapter 7 trustee have the right to object to a debtor’s discharge if the debtor acted in a fraudulent manner in using or obtaining credit.

If your friend received items such as a flat screen television or a vacation as gifts from a third party, that should not hamper his ability to otherwise receive a discharge of his debts, she said. Charging those items is something different.

Hook said as of the 2005 amendments to the bankruptcy code, a debtor can only receive a Chapter 7 discharge every eight years. If your friend previously received a discharge pursuant to Chapter 13 of the bankruptcy code (in which he would have been required to repay certain debts pursuant to a court approved payment plan, he must, with a few limited exceptions, wait six years prior to receiving a Chapter 7 discharge.

“The 2005 amendments have made it more difficult for repeat or serial filers to wipe out their debts,” she said.

— Karin Price Mueller

E-mail your questions to askbiz@starledger.com.

Article source: http://www.nj.com/business/index.ssf/2012/04/biz_brain_what_happens_if_my_f.html

Transactions for April 15, 2012

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  • Reading Eagle Internet Services
  • Reading Eagle Press
  • Reading Eagle Company

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Editor’s note: Some of the transactions do not include a transfer price because no money was exchanged for the property. All deeds are recorded in the Berks County recorder of deeds Office and are a matter of public information. There is a delay between when the deeds are filed and their publication. Transactions are based on a file created by the recorder of deeds. For questions, call 610-478-3380 or send email to recorder@countyofberks.com.

Albany Township

Michael T. Short and Gail D. Short to Kristian M. Pensyl, Stony Run Valley Road Lot 1, $72,900.

Alsace Township

Sheriff of Berks County to Effie Arakas, 1012A Summit Road, $3,500.

Delores M. Miller, Gloria Folk and Gloria Faust Folk to Delores M. Miller, Skyline Drive.

Amity Township

Granville Charles Carey, G. Charles Carey, Helen B. Carey to G. Charles Carey, 15 Weavertown Lane.

Michael P. Starkey to James C. Honicker and Mara E. Honicker, 58 Horseshoe Drive Unit 5, $122,010.

Dianna Rulli and Stefan Patriak to Dianna Rulli, 59 Shore Ave.

Heritage-High Meadow LP to NVR Inc. and Ryan Homes, 22 Meadowside Drive, $69,500.

Doris J. Weller and Paul R. Weller II to Paul R. Weller II and Kathy A. Weller, 935 Old Swede Road.

Heritage-High Meadow LP to NVR Inc. and Ryan Homes, 244 Green Meadow Drive, $65,500.

Bern Township

Forino Co. LP and John G. Smith to Keri A. Keiski, 520 W. Reeser St., $218,990.

Bethel Township

Earl G. Ebling and Joanne L. Ebling to the Earl and Joann Ebling Irrevocable Trust, 761 Airport Road Timberland Tract.

Earl G. Ebling and Joanne L. Ebling to the Earl and Joann Ebling Irrevocable Trust, 761 Airport Road.

Earl G. Ebling and Joanne L. Ebling to the Earl and Joann Ebling Irrevocable Trust, 761 Airport Road Timberland Tract.

Earl G. Ebling and Joanne L. Ebling to the Earl and Joann Ebling Irrevocable Trust, 761 Airport Road Timberland Tract.

Earl G. Ebling and Joanne L. Ebling to the Earl and Joann Ebling Irrevocable Trust, 761 Airport Road Tract 1 and 2.

Earl G. Ebling and Joanne L. Ebling to the Earl and Joann Ebling Irrevocable Trust, 761 Airport Road Tract.

Earl G. Ebling and Joanne L. Ebling to the Earl and Joann Ebling Irrevocable Trust, 761 Airport Road Blue Mountain Timberland.

Earl G. Ebling and Joanne L. Ebling to the Earl and Joann Ebling Irrevocable Trust, 761 Airport Road Tract 1 and 2.

William Nathan Bering and Debra Jo Bering to Joseph R. Hurst, 240 Camp Strauss Road, $130,000.

Karen A. Blatt to Americas Best Security Inc., 155 Myer Drive, $70,060.

Birdsboro

Fulton Bank N.A. to Jennifer Letizia, 436 W. First St., $73,000.

Boyertown

John H. Griffith, Tina M. Griffith and Tina M. Bradley to Michael W. Baker Jr. and Chelsea S. Bradley, 723 E. Fourth St., $143,000.

Michael L. Thomas, Woodrow W. Rhoads, Woodrow William Rhoads and Woodrow Rhoads to Kyle E. Gery, 35-37 S. Reading Ave., $192,000.

Caernarvon Township

James M. Shaw and Donna L. Shaw to James M. Shaw, 1435 Elverson Road.

Centre Township

Rudolph C. Richards and Rudolph Richards to Lewis Schoffstall, 1463 Railroad Road, $80,000.

James S. McGonigle, Debra L. Frain and Debra L McGonigle to James S. McGonigle and Debra L. McGonigle, 226 Eagleview Drive.

Dwayne A. Oxenreider and Robin L. Oxenreider to Dwayne A. Oxenreider, 600 Garfield Road.

Paul A. Vasko and Ashley N. Koch to Todd L. Swoyer, 313 Drake Road, $210,000.

Colebrookdale Township

Jennifer M. Scofield and Jennifer Heasley to Thomas Paulk and Katherine Paulk, 384 Mill St., $179,900.

Cumru Township

John Rea to Ashley L Delong and Ryan E Delong 911 Philadelphia Avenue, $160,000.

Susan M. Baker to John S. Maniaci and Susan B. Maniaci, 6 Ashfield Court.

Mehmet Arslan to Mehmet and Natalie R. Arslan, 15 Muirfield Drive.

Deutsche Bank National Trust Co. and American Home Mortgage Servicing to Michael Brossman, 530 Hunters Road, $62,100.

Evelyn A. Brightbill and Donna R. Engle to Dumitru A. Rus, 1806 Old Lancaster Pike, $55,000.

Earl Township

David A. Potteiger to Chad Kohler and Brittany Horning, 170 Toll House Road, $105,000.

Exeter Township

Florence M. McCalicher to Stephen E. Raught, 4631 Pheasant Run North, $139,900.

Patricia A. Care to Ricky L. Care and Patricia A. Care, 194 Alice Drive.

Patrick R. Farrell to Patrick R. and Bernadette M. Farrell, 4215 D St. Lawrence Ave.

Mary Lou Zientek and Barry T. Zientek to Barry T. Zientek, Michael J. Zientek, Dianne L. Dachowski and Marilee A. Noesges, 96 Wessex Court.

Sylvia V. Slater and Ann Marie Lessig to Kristin L. Dibler and Dallas P. Delong, 6 Ravens Court, $139,900.

Stanley J. Dwojak Jr. and Wendy M. Barrett to Kristine Desousa Koehler, 203 Rose Lane, $186,500.

Joseph E. Dolan and Janet M. Dolan to Peter J. Dolan and Kristin Dolan, 5290 Oley Turnpike Road.

Fleetwood

Donna L. Deloretta to Michael J. Deloretta and Donna L. Deloretta, 36 Brookfield Drive.

Jack K. Schaeffer and Mary A. Schaeffer to Jack K. Schaeffer, 906 Pleasant Hill Road.

Greenwich Township

Brian Seaman to Glenn A. Hollenbach and Jacqueline A. Hollenbach, Wessner Road right of way, $500.

Brian Seaman to Brian Seaman, 749 Wessner Road.

Glenn A. and Jacqueline A. Hollenbach to Glenn A. and Jacqueline A. Hollenbach, 785 Wessner Road.

Sheriff of Berks County to Metlife Home Loans and Metlife Bank N.A., 1362 Krumsville Road, $2,200.

Hamburg

Margaret E. Moyer to Dale G. Gassert, 220 S. Third St., $50,500.

The Harry V.B. Miller and Elizabeth Miller McHose Family Trust to Philip A. Fink and Carol R. Fink, 300 N. Fourth St., $225,000.

Hereford Township

Ann Herman and Henry R. Herman to Debbie Herman, Paul Herman and Tina Aldridge, 41 St. Peter Road.

Edna I. Wisser to William A. Miller, 2019 Corning Road.

Kenhorst

Sharon R. Kaufman and Scott A. Kaufman to Roberto B. Correas and Brenda Correas, 1363 Wingate Ave., $136,000.

Matthew B. Stefan to Corey M. Keller, 1439 Lacrosse Ave., $101,000.

Kutztown

Michele L. Zimmerman to Daniel F. Aruscavage and Pamela J. Aruscavage, 213 Wentz St., $165,000.

Ronald L. Zimmerman, Lorie K. Zimmerman, Jeffery S. Zimmerman and Amanda S. Zimmerman to Jeffery S. Zimmerman and Amanda S. Zimmerman, 705 Luella Drive.

Laureldale

James P. Bradbury and Andrew S. George to Mario Caloiero, 1009 Bellevue Ave., $67,500.

Janel M. Spiegel to Christopher W. McIlvee, 3449 Earl St., $136,700.

Kyle B. Benjamin to Kyle B. Benjamin and Alyssa J. Benjamin, 414 Emerson Ave.

Leesport

Christopher T. and April J. Kostzewa to April J. Kostzewa, 840 Leesport Ave.

Jonathan M. Schappell and Corinne M. Lord to Jonathan M.and Corinne M. Schappell, 1028 Crest Road.

Kenneth A. Adam and Nancy A. Adam to Ryan S. Adam and the Kenneth A. Adam Nancy A. Adam Irrevocable Asset Protection Trust, 425 Degler Ave.

Lower Alsace Township

Carl A. Furillo and Jon M. Furillo to Carl A. Furillo, Jon M. Furillo and Vicki A. Furillo, 1415 Carsonia Ave.

Maidencreek Township

Rosario J. Ciatto and the Rosario J. Ciatto and Janet L. Ciatto Revocable Living Trust to Kevin C. Bower, 440 Appian Way, $193,000.

Regine Ghoubrial and Edward Waibel to Matthew Todd Klinger and Gwendolyn Klinger, 321 Monaco Lane, $240,000.

Marion Township

Lisa A. Ruch to Travis J. Oxenreider, 76 Main St., $99,900.

Mohnton

David A. Ficken and Maureen Ficken to Daniel Millan and Migdalia Millan, 301 Main St., $226,000.

Steven M. Gehret to Timothy S. Jones, 42 Maple St. 7D, $71,900.

Stanley J. Ball and Miriam A. Ball to Stanley J. Ball, 133 S. Church St.

Mount Penn

Susquehanna Bank to Thomas Franckowiak and Maureen E. Franckowiak, 2515 Perkiomen Ave., $30,000.

Grace H. Bard and Authur P. Bard to John A. Bard, 24 S. 23rd St.

Muhlenberg Township

Kenneth R. Lerch, Kenneth R. Lerch Sr., Kenneth R. Lerch Jr., Mary Lou Lerch and Mary Louise Lerch to Michael Apsokardu, 617 Hain Ave., $43,000.

Marsco Properties LLC to Adrian Aziz and Casandra E. Bradshaw, 1004 Leanne St., $196,000.

Gregg S. Heim to Gregg Scott Heim and Kathy Sue Heim, 1603 Frush Valley Road.

Loberk Inc. to Bob Eason and Ann Eason, 2741 Fifth Street Highway, $110,000.

Samuel S. Smeltz to Trevor Hughes, 1035 Leanne St., $160,000.

Faye F. Cochran, Marcia M. Reinert, Cynthia C. Vesper and Virginia E. Christ to James F. Cochran Jr. and Faye F. Cochran. Raymond Street Lot 407, $7,000.

Hannah Louise Dehart to Kim L. Boarder, 1140 Laurelee Ave.

North Heidelberg Township

Jesse R. May and Lisa R. May to Steven Coffin, 36 School Lane, $325,000.

Oley Township

Steven Reed and June Reed to Brandon M. Kemp, 97 Bertolet Mill Road, $194,900.

Oley Township to Oley Township Municipal Authority, Reiff Road.

Ontelaunee Township

Heath and Danielle Royer to Heath Royer, 24 Katylyn Lane.

Penn Township

Lynne A. Reynolds to Dale A. Reynolds, 4668 Irish Creek Road.

Pike Township

Lawrence and Kathi Kreisler to Lawrence and Kathi Kreisler, 3282 Cabin Trail.

Carl P. Weise Jr. to Joseph M. Frees and Alison E. Frees, 124 Goat Hill Road, $295,000.

Reading

Miguela Santana to Emilio Zayas, 1114 Cotton St., $17,500.

Earl G. Ebling and Joanne L. Ebling to Tara A. Ebling, 1516 Darien St.

Kenneth L. Weaver Jr., Robert L. Weaver and Kenneth L. Weaver Sr. to John Rea, 1233 N. 10th St., $28,500.

Fannie Mae (Federal National Mortgage Association), United States of America and McCabe Weisberg Conway PC to Maria Elena Arteaga, 412 N. 13th St., $25,500.

Jose A. Aguilu, Milagros Aguilu and Leopoldo Ortega to Carlos J. Velazco and Ixsary Fontanez, 407 Upland Ave., $82,500.

Gabriel Antonio Perdomo to Claudia Selene Perdomo Nova, 523 Buttonwood St.

Jose Oscar Camacho Jr. and Sonia N. Camacho to Sonia N. Camacho, 322 Linden St.

All Weather General Construction LP and Hector A. Polanco to Agripina Semidey, 937 Cotton St., $55,000.

Jaime A. Olivo and Esperanza Olivo to Melba Villafane, 427 Buttonwood St., $5,000.

Jairo Cuesta, Jario A. Cuesta, Carmen Cuesta and Carmen A. Cuesta to Jario Cuesta, 103 Amity St. , 1537 Perkiomen Ave. and 1425 Perkiomen Ave.

Cayetano Rivera to Marino Bueno-Perez, 428 S. 12th St., $18,000.

Ronda K. Wolfe to Ronda K. Wolfe and Gary Pfautz, 2307 Hoffer Ave.

Teresa Staley to T. E. H. Realty 39 LLC, 463 N. 12th St., $25,000.

TD Bank N.A. to Jose M. Leonardo, 1260 Spruce St., $14,000.

Fannie Mae (Federal National Mortgage Association) and Phelan Hallinan Schmieg to Shailyn Perez, 459 Birch St., $15,100.

Wesley Pace and Michael Yoder to Miguel Gomes, 907 Franklin St., $30,000.

Myrtle J. Speicher and Madeline A. Ludwig to Madeline A. Ludwig, 614 N. Third St.

Carol Rae Bentz, Janice Florence Graul and Frank Hixson to J. Guadalupe Cervantes, 1527 Palm St., $85,000.

Mi Casa Pa LLC to Richard A. Fleming Jr., 826 Centre Ave., $109,000.

Fulton Bank N.A. to T. E. H. Realty 42 LLC, 136 N. Fourth St., $32,000.

Richard C. Adam, Marguerite O. Adam and Kenneth L. Adam to David A. Rorke, 1423 N. 14th St., $50,000.

Matthew Stauffer to Maria Cacilda Belen Reyes and Dicire Polanco, 308 Madison Ave., $7,500.

Betty L. Rosenberg to Luis A. Agosto, 436 Fern Ave., $69,900.

Chester S. Selmer to the Chester S. Selmer Revocable Living Trust and Chester S. Selmer, 835 Greenway Terrace.

Chester S. Selmer to the Chester S. Selmer Revocable Living Trust and Chester S. Selmer, 845 Greenway Terrace.

NVEZ LLC to Steven A. Dawson, 230 Exeter St., $54,000.

BMJ Properties LLC to T. E. H. Realty 41 LLC, 105 Schiller St., $23,500.

Norman S. Esser to Nathan Walker, 1029 N. 11th St., $59,900.

Fannie Mae (Federal National Mortgage Association) and McCabe Weisberg Conway PC to Rafael Martinez, 305 S. Fourth St., $29,650.

KAB Loan Services LLC to Myrna Lugo Garcia, 1055 Union St., $30,000.

Mario Vazquez to Carlos Romeo Mendez-Garcia, 300 N. Ninth St., $3,000.

Mary Beth Hennigan to Nova Bank, 215 Reed St.

Giordano Holdings Realty Services LLC to Rafael Munoz-Gonzalez, 808 Bingaman St., $7,000.

Fannie Mae (Federal National Mortgage Association) and Phelan Hallinan Schmieg to Giordano Holdings and Realty Services, 1024 Perry St., $19,100.

Giordano Holdings Realty Services LLC to Jose M. Arias-Cruz and Nicole A. Miller, 624 Birch St. $17,900.

Miguel A. Roque Jr. to Jessie Enterprises Inc., 430 Spring Garden St.

Miguel A. Roque Jr. to Jessie Enterprises Inc., 428 Spring Garden St.

Miguel A. Roque Jr. to Jessie Enterprises Inc., 733 McIlvain St.

Miguel A. Roque Jr. to Jessie Enterprises Inc., 729 McIlvain St.

Miguel A. Roque Jr. to Jessie Enterprises Inc., 434 Spring Garden St.

Arthur C. Scholz and Mary E. Scholz to R J Properties Inc., 520 S. Ninth St., $17,500.

Hippocrates Deligiannis to Angel A. Linares and Leydiana Cabrera, 363 W. Greenwich St., $16,000.

Gene A. Moyer and Loretta M. Moyer to Luis M. Oliveras and Argentina Fabre, 731 Moss St., $24,000.

Richmond Township

Leonard J. Fritz to Leonard J. Fritz, 58 Breezypark Drive.

Robeson Township

Michelle M. Lush to Bruce M. Reazor, 14 Cedar Commons Lane, $121,800.

Robert H. Holber, Theresa C. Lampe and William E. Lampe to Redstone Valley LLC, Route 10 Lot 5 Hidden Ridge Subdivision, $100,000.

Scott A. Chaloupka and Kristen M.H. Gilkeson to Scott A. Chaloupka, 681 Cold Run Road.

Deutsche Bank National Trust Co. and Onewest Bank FSB to Dustin M. Reese and Michelle Rathman-Reese, 392 Old River Road, $65,000.

Robesonia

Jennifer L. Davies and Jennifer L. Barth to Michael J. Domalski and Lisa L. Domalski, 104 N. Robeson St., $129,900.

Rockland Township

John V. Kraus and Alene W. Kraus to Matthew G. Silcox and Krystal R. Parmer, 24 Hertzog School Road, $259,900.

Terry L. Fegley, Patricia A. Fegley, Randy L. Fegley and Troy R. Fegley to Terry L. Fegley and Patricia A. Fegley, Five Points Road.

Michael T. Babb, Mary E. Reedy and Mary E .Babb to Mary E. Reedy, 14 Black Bear Run.

William R. Miller and Joan C. Miller to Keith A. Delong and Tracey B. Delong, 20 Cardinal Road, $305,000.

Ruscombmanor Township

Bruce D. Lessig to Kevin L. Spatz, Shawn L. Spatz and Bruce D. Lessig, 90 Lake Road.

Scott A. Moyer and Sheryl L. Moyer to Beneficial Consumer Discount Co. and Beneficial Mortgage Co. of Pennsylvania, 152 Fry Road.

Shillington

Danielle E. Ahrens-O’Brien and Danielle E. Ahrens to Danielle E. Ahrens-O’Brien, 109 S. Wyomissing Ave.

Chris M. Keller and Charmaine M. Keller to Chad M. Heckman, 29 Pennsylvania Ave., $98,500.

Sinking Spring

Kristine M. Bashore and David C. Rosenker to Kristine M. Bashore, 20 Winding Brook Drive.

Stephen M. Lago and Ann Marie Lago to Edward M. Waibel and Regine Ghoubrial-Waibel, 27 Winding Brook Drive, $425,000.

Todd M. and Beverly A. Witkowski to Beverly A. Witkowski, 56 Cacoosing Ave.

Beverly A. Weisman and Beverly A. Witkowski to Beverly A. Weisman, 56 Cacoosing Ave.

Stephen J. Hartman and Rebecca N. Hartman to Stephen J. Hartman, 736 Maria Ave.

Donald J. Millisock and Yvonne L. Millisock to Travis Kostello and Patricia Kostello, 107 Mull Ave., $114,000.

South Heidelberg Township

Richard L. Guida to Paul F. Lobban and Victoria D. Lobban, 8 Wilbur Drive, $222,000.

Michael J. Wagaman to Devin L. Geist and Desiree L. Myers, 97 Butternut Court, $169,000.

Spring Township

Michael J. Campagnoli and Robin J. Campagnoli to Frandy Heredia and Diosely Heredia, 119 Lucinda Lane, $268,000.

Heather Lane Realty LLC to Virginia R. Devaney and James R. Dolan, 174 Heather Lane, $129,500.

Grande Land LP and Grande Management Corp. to Michael Wagaman, 518 Rosemont Court, $217,200.

Clarence E. Levan Jr. and Nadia M. Levan to Gregory L. Souder and Vicki L. Souder, 2527 Girard Ave., $138,000.

Rhouse 516 LLC to Edward E. Conner and Patricia M. Auchey, 106 Wheatfield Road, $75,000.

Martin P. Chapple and Beth A. Chapple to John H. Whalen II, 2169 Cleveland Ave., $86,350.

Joseph R. Hopp to Anthony Calvaresi Jr. and Melissa Calvaresi, 223 Chapel Hill Road, $200,000.

Chris L. Herbein and Terry A. Herbein to Christopher Herbein and Terry A. Herbein, 2404 Garden Lane.

Sheriff of Berks County and Sheriff of Berks County to Wells Fargo Bank N.A., 910 Blue Gate Lane, $2,700.

Andrew T. Kuebler to Andrew T. Kuebler and Tara L. Kuebler, 629 Calco Ave.

St. Lawrence

Michael A. Houston and Deann C. Houston and Michael A. Housten and Deann C. Housten to Jared R. Burkey and Jacquelynn R. Miller, 321 Levan St., $205,000.

Tulpehocken Township

Michael S. Forry and Linda S. Forry to Michael S. Forry, 14 Potteiger Road.

Darin L. Grumbine and Andrea L. Grumbine to Darin L. Grumbine, 11 Chestnut St.

Doris E. Zimmerman and Levi W. Zimmerman to Benjamin R. Schueller, Route 419 Lot 3 Zimmerman Farm Subdivision, $550,000.

Union Township

Claudia J. Bahorik and Sylvia S. Corbett to Claudia J. Bahorik, Mullen Hollow Road.

KAB Loan Services LLC to John F. Tobinus, 210 Union St., $63,000.

Alan D. Pietrewicz Jr., Samantha Pietrewicz and Samantha Lyons to Michael G. Lyons and Judith E. Lyons, 319-321 Yocum Road, $200,000.

Washington Township

Rotose Partnership LP and RBMF Inc. to Maria Dimatteo and Anthony Dimatteo, 9 Joy Circle, $363,441.

Wernersville

Gunhild Siegfried to Anita Siegfried, 54 Wilson Ave.

Windsor Township

Forino Co. LP and John G. Smith to Kevin K. Nester and Lisa A. Nester, 310 Oval Drive, $219,004.

Greth Development Group Inc. to Ali J. Grusha, 63 Helene Court Unit 5-24, $190,000.

Womelsdorf

Arlene K. Stump and Amy L. Field to Brantley H. Brown and Virginia L. Brown, 129 E. High St., $130,000.

Wyomissing

The William H. Reifsnyder and Peggy Ann Reifsnyder Revocable Living Trust, William H. Reifsnyder and Peggy Ann Reifsnyder to Daniel A. Phelps and Judith N. Phelps, 2017 Meadow Glen, $227,500.

Alaa Yousef and Elsayed Elmarzouky to Martha Good Confalone, 1436 Garfield Ave., $220,000.

Article source: http://readingeagle.com/article.aspx?id=379574

Estate planning for pets

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Sunday Morning Chat is a feature of informal conversations on current topics.

Attorneys Elizabeth Carrie and Robert Kass are co-authors of a book on estate planning for pet owners called Who Will Care When You’re Not There? The two will speak on the topic May 9 at the Bloomfield Township Public Library:

Q: In planning for your death, how much money do you typically need to set aside for your pet’s care?

Carrie: Here’s a lawyerly answer for you — it depends. For an old dog with health issues like mine, I budgeted $15,000 (about three times the average annual vet and food expense). If you have a pet like a parrot with lifespan of 80 years, you will likely have lower expenses, but a longer time period for which to plan. The best way to do it is to sit down and prepare a budget based on what you currently spend, increase that amount for inflation, and build in a cushion for increased medical expenses in your pet’s final years.

Q: Who are the key players in planning for your pet’s welfare?

Carrie: There are three key players: the caregiver (guardian) with whom your pet will live; the money person, who will manage and disburse the funds you set aside for your pet’s care; and the “watchdog” (your pet’s veterinarian is a good choice for this role), who will make sure the people to whom you have entrusted with your pet’s care are doing right by your pet and carrying out your wishes. Depending upon how much money you have set aside for your pet’s care, the guardian and money person could be the same person. But if it is a significant amount of money, we recommend having different people in those roles, particularly if you intend to leave any funds remaining after your pet’s death to its guardian.

Q: How do you select the right guardian?

Carrie: The process is similar to selecting a guardian for minor children. You want to look for someone who both gets along with and cares about your pet and is responsible. You also want to make sure the guardian has really thought about the responsibility he or she is taking on and the impact this would have on his or her life. Setting up a week-long “trial run” of having your pet stay with that person can serve as a good reality check.

Q: Are there any safeguards in place if the guardian reneges on the commitment?

Carrie: It’s important to have a backup person. Situations can change. Despite your guardian’s best intentions, taking care of your pet may be too much for him or her; the guardian may predecease your pet; or may marry someone or have a child with allergies. If there is no one else available, you can look into rescue shelters and animal sanctuaries.

Q: What are some of the typical pitfalls people should avoid when planning for their pet’s welfare?

Carrie: Planning only for the owner’s death. Would someone know to check on your pet if you were in an accident on the way home from work? We had a client who unexpectedly disappeared. Her two cats went without food and water for days and were in an extreme state of distress by the time someone finally checked on them. The second is budgeting based only on your pet’s early years. My dog, Lexy, was one of the most expensive “free” dogs in history. Over our 11-plus years together, I spent over $30,000 on her care, most of it in the last five years. If I had based my budgeted amount on the early years, there would not have been enough money for the last years of her life.

— By Jay M. Grossman

Article source: http://www.hometownlife.com/article/20120415/NEWS02/204150307

The play-by-play of Warren Sapp’s 59-page bankruptcy filing

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The driver of the bright blue Mercedes convertible racing east on Interstate 4 honked his horn and blinked his lights and shouted at the big rig blocking his way.

“Why should I get stuck behind that truck?” Warren Sapp roared.

That morning in February 1998, with a frightened writer from Sports Illustrated sitting shotgun, the just-turned-25-year-old football star for the Tampa Bay Bucs was a month from signing a six-year contract worth $36 million and change. He was two years from being the top defensive player in the National Football League. Five years from winning the Super Bowl. Six years from signing a second deal of more than $36 million with the Oakland Raiders.

And 14 years from declaring bankruptcy.

Smiling face of the franchise. Surly shunner of fans. One of the best defensive linemen in the history of the sport. Motormouth lout. Now add to this portrait of Sapp the revealing contents of his recent 59-page Chapter 7 filing. His creditors include his ex-wife, the four other women with whom he has had children, the Internal Revenue Service, banks and attorneys all over the country, and friends who loaned him money.

He has a checking account with $826.04 in it. He has a savings account with $339.31 in it. His current debts tally up to $6.7 million. No small task for a man who signed three NFL contracts totaling $77 million and who won’t turn 40 until December.

How did he do it? The filing tells the tale.

• • •

Sapp has an 18,000-square-foot mansion in the hoity-toity Orlando area neighborhood of Windermere. That’s where his ex-wife lives. He also has a 33rd-floor luxury condo in Hollywood Beach. That’s where he lives and where his attorney, Chad Pugatch of Fort Lauderdale, had an appraiser go make a list of his stuff.

Even the four local bankruptcy attorneys the Tampa Bay Times asked to review the filing chuckled a little at the detailed itemization of the detritus of the ex-athlete’s existence. Lion statue. Lion rug. Fancy Swiss de Grisogono watch. Louis Vuitton suitcase with wheels. PlayStation video games. Xbox video games. A television with a 58-inch screen. An estimated 240 pairs of Jordan Brand sneakers and sandals, most of them still in their boxes, many of them stacked on the top of his dining room table. Architectural Digest meets Foot Locker.

But the attorneys who looked at the filing quickly focused instead on its more critical points.

Sapp filed Chapter 7, the most drastic bankruptcy alternative that requires the sale of assets to pay off debts. He did this, they say, because he’s trying to say that his debts are mostly business debts, not consumer debts. If that’s true, it doesn’t matter that he still brings in large chunks of cash — $45,000 a month to be an analyst for the NFL Network, appearance fees, money from a publisher for a forthcoming book titled Sapp Attack. What he gets on a monthly basis fluctuates, but it’s still the kind of hefty income that typically would disqualify somebody from Chapter 7 candidacy — according to the filing, an average of $115,881 a month.

“Warren filed because of business debts,” said Pugatch, his attorney. “There’s no question in my mind he qualifies for Chapter 7.”

Sapp lists no credit card debt, for instance, a common form of consumer debt, and he also has no car debt. He shows no cars at all. He and Pugatch have labeled as a business debt the $90,685 he owes National Car Rental, the co-debtor being Nine-Nine LLC, described in the filing as an “artist management” business.

Some of the lawyers the Times talked to think he’ll be able stay in Chapter 7. Some don’t. He can’t file Chapter 13, which allows for repayment over time, because he has too much debt. He might end up having to file Chapter 11, some of them say, and the terms of that repayment plan would probably be less advantageous.

It’s ultimately up to the court to decide.

All the attorneys, though, zeroed in on the bottom of Page 41 and the top of Page 42 in the filing. Here, they said, is the reason Sapp had no choice but to file bankruptcy, and why he had to do it now.

PNC Bank took $33,333 straight out of his NFL Network paycheck in December, then again in January, then again in February, then again in March, and it would have happened again in April had he not filed on March 30. That’s what’s on the filing because it calls for this sort of activity over the last 90 days. Sapp says it has been going on for 11 months. The remainder of what he owes PNC Bank: $822,805.

Said St. Petersburg bankruptcy lawyer Marshall Reissman: “I can hear him screaming to his lawyer, ‘Enough is enough!’ “

What happened here?

The payments to PNC Bank stem from a loan he got to try to build affordable housing in Fort Pierce in St. Lucie County. Sapp had two business partners in a company called Urban Solutions Group that was formed in 2006 — South Florida developer Steve Smoke and former Florida State and NFL player Devin Bush — and their endeavor started in earnest in 2008. It was an admitted failure.

“They gave us a loan so we could purchase more lots,” Bush said. “The real estate market started going into the tank.”

PNC sued Urban Solutions and won a judgment in 2010 for $988,691.99. The beginning of the end. Warren Sapp’s Waterloo.

“Were it not for the judgment and the other debts created by that deal,” Pugatch said, “he would certainly not be facing what he’s facing right now.”

“This,” Sapp said of bankruptcy, “was the only way I could get out.”

• • •

Sapp grew up in Central Florida in a speck of a place called Plymouth in a tiny wooden yellow house on an unpaved road. The road now bears his name. As a boy, though, he was raised by a single mother who worked as an elementary school teacher’s aide. He barely knew his biological father.

Every planner or adviser says the same thing. Divorces are killers for financial futures.

Sapp is divorced. He married the former Jamiko Vaughn in 1998. They split in 2003. They have two children. He owes her alimony and child support. In the 90 days before he filed, he made four payments to his ex-wife — $16,000, $25,000, $25,000 and $9,000. That left him owing $876,000. His payments to her are so high in large part because they were set at a time when he was at the apex of his gaudy NFL earnings.

Many professional athletes argue in divorce hearings for lower payments because their salaries are outsized but also fleeting. Sapp tried to make this argument almost 10 years ago. His “income is front-loaded,” his attorney wrote in 2003. “During the relatively brief time he is able to play professional sports, he will make an income disproportionate to the income he is capable of earning for the rest of his life.”

Sapp also has four other children with four other women. He has a 14-year-old son. He has a 14-year-old daughter. He has a 12-year-old daughter. He has an 11-year-old son. He has a 10-year-old daughter. He has a 3-year-old son.

The filing outlines his resulting obligations.

He owes Akilah Akins of Los Angeles $4,000 a month.

He owes Angela Sanders of Wichita, Kan., $2,500 a month.

He owes Sarah Matt Lamothe-Kindred of Hiram, Ga., $2,500 a month.

He also owes the New Jersey Family Support Center $6,495 a month. That’s an intermediary for payments for a child he fathered with former Temple basketball player Chantel Adkins.

Before the bankruptcy, Pugatch said, he was up to date with at least these four payments. According to the filing, his combined monthly alimony and support payments, to his ex-wife and the other women who care for his children, are $75,495.

“The purpose of the filing is to enable him to meet his obligations,” Pugatch said. “He did not do this to avoid support obligations. He did this so he could be in position to pay.”

He has no choice.

A good number of Sapp’s debts are almost certainly going to go away because of this bankruptcy — more on that in a bit — but these dollar amounts are listed in the filing as unsecured priority claims. In plain English? No wiggle room. He could go to court later and try to adjust what he owes due to changes in what he makes. What he owes already, though, he won’t get out of.

“Those debts will not be discharged,” St. Petersburg bankruptcy lawyer Ian Leavengood said. “They don’t go away.”

• • •

Next? Taxes.

He owes $68,738 in property taxes on the Windermere mansion. Unsecured priority claim. It’ll stick.

He owes $89,775 from his 2010 income taxes. Ditto.

But the huge tax number in the filing, an IRS bill for $853,003 from 2006, two years after he signed that second $36 million contact? That’s listed differently, as an unsecured nonpriority claim, and Sapp and his attorney also checked the amount as “contingent,” “unliquidated” and “disputed.”

They’re fighting it. And they have a chance.

The amount is “ripe for discharge,” Leavengood said. Taxes are one of Tampa bankruptcy attorney Darrin Mish’s specialties, and his prediction? “He won’t have to pay a dollar to the IRS for that $853,000.”

“It might look like he simply didn’t pay his taxes,” Pugatch said. “But those taxes are disputed.”

He thinks he can make them go away.

“Certain taxes if they’re old enough qualify,” he said. “From the information we have, we think there’s an opportunity to do that.”

• • •

It’s not the only thing Sapp’s probably going to be able to get out of.

More unsecured nonpriority claims? The money he owes attorneys in North Carolina, Alabama, New York and Florida. The money he owes a speech therapy practice in Orlando. The money he owes people listed as friends, including $28,000 to George Chien, a senior vice president at Sony.

All these people are most likely out of luck. Could Sapp pay them back? Yes. Will he be forced to? No.

Also exempt, and this is important, are his considerable annuities. He has an NFL annuity. He has an NFL pension. They’re worth almost $1 million. He has life insurance policies worth approximately $3 million. He has a prepaid college fund, too, although it has in it only $103,861, relatively meager given his six kids. All of this is untouchable.

“Those are protected from creditors,” said Helen Huntley, a former Times business writer who’s now a financial adviser in St. Petersburg. “He basically has his retirement income.” And will keep it.

“His exemptions are very strong,” Tampa bankruptcy lawyer Stan Galewski said.

Questions remain. Will he get to stay in Chapter 7? Will he get to free himself of that ’06 tax bill? Will there be an auction of his stuff? “Who wouldn’t want a decanter that belonged to Warren Sapp?” Huntley said. Could the court make him autograph some of the items on the appraisal report to try to boost what they might fetch? Will the court take any money he makes off his book? And what’s the status of his gig with the NFL Network? His contract is up in August and reportedly won’t be renewed.

The so-called meeting of creditors — a court hearing pretty much — is scheduled for May 8 in Fort Lauderdale. The bankruptcy could take as little as two months. It could take the better part of a year.

In the meantime, he’ll live on what could be the remainder of his NFL Network earnings and maybe additional appearance fees, Pugatch said. “He’ll do whatever he can to make a living.” The process should be finished by early 2013. Just in time for him to be eligible for pro football’s hall of fame.

“I don’t know who’s going to pay what and when,” said Reissman, the St. Petersburg bankruptcy lawyer. “Nobody has that kind of crystal ball. It’s like asking what the final score of the Super Bowl is going to be 30 seconds after the kickoff. This is just the kickoff.”

But of this much Reissman is certain: “He’s not going to miss any meals.”

The other attorneys who talked to the Times agree.

“I think he comes out smelling like a rose except he’s still got really high support payments,” Mish said.

“He’ll walk out of this very strong, I’d suspect,” Galewski said.

Added Leavengood: “I think there’s going to be minimal cost consequence to him.”

Sounds like Sapp knows this. The other day on Twitter, where he has more than 800,000 followers, one person chided him for his bankruptcy and his lion-skin rug. Sapp was unrepentant in his response. He called himself “a king.”

News researcher Natalie Watson and sports columnist Gary Shelton contributed to this report. Michael Kruse can be reached at mkruse@tampabay.com or (727) 893-8751. Follow him on Twitter at @michaelkruse.

Article source: http://www.tampabay.com/sports/football/bucs/the-play-by-play-of-warren-sapps-59-page-bankruptcy-filing/1225135

When Bad Things Happen to Good Physicians …

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When Bad Things Happen to Good Physicians …

By: Brian T. Hinson, CFP®, CPA*, ChFC®, PFS
Friday, April 13, 2012

Filed under: 
Accounting/Economics | Practice Management

It happens, and often when you least expect it — things change abruptly and cause you to depend more heavily on your financial resources and previous financial planning. Estate/asset protection is critical for almost all physicians, especially as their net worth increases over time. Protecting your assets in these circumstances requires that you have already put into place coordinated legal and financial planning strategies.

Photo: Brian T. Hinson, CFP®, CPA*, ChFC®, PFS

It happens, and often when you least expect it — things change abruptly and cause you to depend more heavily on your financial resources and previous financial planning. Here are two examples of undesirable, yet all too common, life events, along with strategies available for you to deal with them.

Unjust liability claims

Estate/asset protection is critical for almost all physicians, especially as their net worth increases over time. Unfortunately, our litigious society often sees high-end physicians as “deep pocket” targets for unwarranted claims and lawsuits. Protecting your assets in these circumstances requires that you have already put into place coordinated legal and financial planning strategies. These plans would include, but extend well beyond, your current personal risk management insurance protections such as professional liability insurance coverage, business continuation insurance coverage, personal disability income protections coverage, buy/sell insurance practice coverage and family needs life insurance coverage.

Additional strategies to fill the exposure gaps include the utilization of various types of trusts, often including both revocable and irrevocable trusts. How these trusts are structured and funded will greatly affect their ability to help protect your assets in the event of unjust litigation. The additional considerations of selecting trustees, providing appropriate distribution standards and the duration of the trusts all play critical roles in their effectiveness toward helping meet your objectives. Even the legal structure of your medical or specialty practice (solo practitioner, ensemble partner, hospital employee, etc.) has a direct bearing on the amount of personal liability exposure you retain and the effective ways to help protect your assets. Seeking out professional expertise in these areas is of utmost importance.

Divorce

It is painfully sad, but divorce happens in our society. Saving your assets when you cannot save your marriage is a critical step in continuing your life after a divorce. High-net-worth physicians often have additional, special issues needing to be appropriately addressed at this time.

There may be a need for significant modifications to your asset allocation to provide the liquidity required for child support and/or alimony maintenance payments. In addition to having your remaining investment portfolio allocations rebalanced after the spousal asset division, you will need to have your risk tolerance recalibrated based upon your diminished portfolio value. Depending upon the housing situation after a divorce, capital may need to be raised for the purchase of a new residence. While pride and ego often enter the settlement negotiations, it is counterproductive to fight in court over property beyond the true market value of the assets in question. Objective financial assessments must be made to ensure this does not occur, as it can be very damaging to both parties.

There may also be a requirement for changes to life insurance policies, such as altering policy beneficiaries to an irrevocable status. Additionally, settlements often require the purchase of additional insurance coverage to provide the required child support and/or alimony in the event of your premature death. While divorce attorneys will help with the required court discoveries and legal filings, financial counseling is equally important to preserve a fair share of hard-earned assets.

Brian T. Hinson is the owner and managing partner of First Financial Group of Huntsville, LLC, and is a registered representative of Lincoln Financial Advisors Corp. Securities and investment advisory services are offered through Lincoln Financial Advisors, Corp., a broker-dealer (member SIPC) and registered investment advisor, 400 Meridian Street, Suite 100, Huntsville, AL 35801, offering insurance through Lincoln affiliates and other fine companies. This information should not be construed as legal or tax advice. You may want to consult a legal or tax advisor regarding this material as it relates to your personal circumstances. *Licensed, not practicing CRN201201-2063337.

MDNews March/April, 2012 North Alabama

1 comment for “When Bad Things Happen to Good Physicians …”

  1. Gravatar of Ike Devji. J.D.Ike Devji. J.D.

    Great points Brian, we work with 1000′s of doctors nationally on Asset Protection planning and are also seeing two major sources of exposure continually overlooked:
    1. Employee Lawsuits
    2. Financial liability including personal guarantees on both commercial and personal real estate obligations.

    Doctors simply aren’t making what they used to and the number of factors reducing their wealth and increasingly their liability makes having a plan that allows to protect everything they have worked for and from which to safely reinvest it more important than ever before.

Article source: http://www.mdnews.com/news/2012_04/05843_marchapril2012_badthings

Estate planning you can count on

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Article source: http://www.goerie.com/article/20120413/NEWS02/304139962/Estate-planning-you-can-count-on