Limitations of Virginia Estate Planning Laws

The internet has empowered us with information about everything. Access to information regarding trust and will has made it easier for people to plan their estate and create an appropriate will. However, it has been noted that the number of people opting for an estate plan and trust has decreased. A survey conducted by an organization revealed that more than half of the 2,400 people surveyed have not executed a will or drawn an estate plan. A will or an estate plan is one of the essential documents, and any trust and estates attorney near me will second on that. With a properly created estate plan and trust, one can ensure their hard-earned wealth and assets will be handled as per the provision even after their demise.

While it is true that an estate plan can do a lot of things, it has certain limitations.  When planning an estate and trust, one must consult an estate planning attorney to understand what they can achieve and its limitations.

Pass the ownership in real estate: There are certain terminologies in the real estate property or deed that don’t permit one to include them in the will’s provisions. If a deed states that any property ownership is “joint tenants with right of survivorship,” the remaining interest passes on to the surviving tenants. You can’t overrule this provision with a will.

Override designated beneficiaries: At the time of opening a saving or investment account, one is asked to name someone as a “pay on death” beneficiary. As per the rule, the interest passes on the pay to the death beneficiary upon your death. Similarly, one has to choose someone as a beneficiary when purchasing a life insurance policy. The person named as the beneficiary on the policy automatically gets the assets upon your death. Provisions in your estate plan that contradicts these agreements nullifies.

Evade Debts to Creditors: According to the Virginia Law, an executor of the will must clear all the debts and settle creditors before fulfilling any other bequests. One should consult an estate attorney in case one has to sell off their personal property to pay the creditors. One can’t use the will to evade debts and creditors. However, the executor has the right to contest any claims made by the creditors because they are unsupported.

Naming a guardian for minor children: According to Virginia’s statute on testamentary guardians, you can appoint someone as a guardian of your minor children who will look after them after your demise. However, you can’t hand over your child’s custody to the guardian if the other parent is alive. The statute further states that one can pass on the child’s custody only if the other parent has been deemed unfit to carry on parental rights through the legal process.

Keep the estate matters private: There are times when the estate matters have to be made public. When a will goes through the probate process, every matter related to the estate and finances is made public. The executor of the will is required to prepare an inventory of all the real estate and other assets you possess.…

Understanding the Benefits and Limitations of Limited Partnership

Business partnerships are of many types. Most business partners opt for a limited partnership. There should be at least one general partner and one or more partners in limited liability capacity for a limited partnership. The general partner brings financial and management experience to the limited partnership. Limited partners in a partnership only contribute financial resources to the business. Limited partnership businesses are governed by state laws. Besides this, several state laws have enacted uniform partnership laws to regulate limited partnerships. If you are considering entering into a limited partnership, you should be aware that disputes and conflicts amongst partners are inevitable. Conflict or disagreements over business decisions can lead to falling out of the partnership. Thus, you should consult a business dispute lawyer Virginia Beach before entering into a partnership. 

In this blog, we will look into all the aspects of limited partnership so that you can make an informed decision. 

  1. The creation of a Limited Partnership requires the formal creation of the business entity.

Informally, general partnerships can be formed by distributing accountabilities, investments, and profits and losses equally. On the other hand, limited partnerships need more documented formality, including a declaration of partnership that specifies the general and exclusive partners. The applicable state department, usually the secretaries of the state’s office, must receive this declaration. Limited partners can also sign limited liability partnership articles to define further and allocate explicit partnership responsibilities and advantages.

  • Management Roles

Each general partner has an equal claim to handle financial affairs in a general partnership, and the members must work together successfully to accomplish consented business goals. Only the general partners of a limited partnership run the firm, formulating strategic plans and executing corporate duties and goals. Limited partners are not included in the management of the business and contribute solely via financial investment. A limited associate who later becomes active in the business’s direction or operation risks losing their limited legal responsibility and may be required to perform extra fiduciary obligations. Limited partnerships are susceptible to split up due to internal disagreement. Before entering into any partnership, one should hire a partnership dispute lawyer Virginia Beach who can walk you through the process and its merits and demerits.

  • Exposure to Liability

A partner’s legal culpability in a limited partnership may stem from that person’s real influence over business transactions. Due to their power over everyday business judgments and other restricted partnership operations, a sole proprietor is susceptible to limitless personal responsibility. The personal wealth of the partner, as well as any joint assets, is in danger. In a limited partnership with multiple general partners, general partners share responsibility for the actions of their fellow general partners.

General partners have joint as well as several responsibilities, which means they are fully culpable not just for their personal actions, as well as for the actions of all the other general partners. Equity holders, as the title suggests, have limited civil responsibility and are primarily liable for their invested capital to their limited company. A limited partner who proactively runs the firm or agrees to personal assurance for business loans, like a managing partner, may be held personally responsible.…

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a legal procedure giving a fresh start to people who are overburdened with certain types of debt. We can help you understand your options and pursue bankruptcy protection. Under the Chapter 7 bankruptcy procedure, we file for protection from the bankruptcy court, and a trustee administers your non-exempt assets. At that point, the court has the authority to discharge (permanently eliminate) certain types of unsecured debt, such as:

•    Credit card debts
•    Medical bills
•    Payday loans
•    Deficiency judgments

You may have heard Chapter 7 bankruptcy referred to as liquidation. What that means is that in certain cases, the court can sell some of your non-exempt property in order to partially repay your creditors. However, many types of property are exempt, so most people don’t lose anything. We will formulate a plan for you so that you will keep as many of your assets as possible. We will carefully review your personal circumstances to determine what the likely consequences of Chapter 7 bankruptcy will be so you can make an informed decision. If you choose to file Chapter 7, we will guide you through the process. For further information about Chapter 7 Bankruptcy, please schedule a free consultation by calling us at (805) 642-6405.

We value our client’s opinions and strive to give them exemplary service. If you have had a good experience at HIGSON CHENEY MANSFIELD, PC, please take the time to leave us a review.…