by Bill Miller | Jun 7, 2018 | Business
There are different types of business entities, each with their own disadvantages and advantages. A limited liability company might be the best structure for some companies, while others benefit more from a partnership. The same holds true for incorporation your business: is it the right move for your company at this time? Let’s take a look at some of the advantages and disadvantages of incorporating a business.
Incorporating Your Business Might Be a Good Thing.
Corporations are considered to be an entity, separate from the shareholders. Corporations can be sued, can sue others, can enter into agreements. There are some other distinct advantages to incorporating a business:
Longevity. If one shareholder leaves or sells out, the corporation still stands. The corporation does not end when an owner dies, like most sole proprietorships.
Liability. Shareholders enjoy limited liability, especially compared to other business types of business entities. However, officers of a corporation may be held personally liable for actions taken as an officer.
Taxes. Some corporations may meet the requirements to elect S Corporation status. The corporation, then, would be taxed like a partnership. This may result in lower taxes for the owners.
Residency. Unlike some other states, Alabama does not have a residency requirement. An entrepreneur living in Michigan, then, could incorporate a business in Alabama.
But There Are Some Disadvantages.
Of course, the corporate structure is not perfect for everyone:
- Start Up Costs. Forming a corporation is more expensive and time consuming than forming other types of business organizations.
- More paperwork. More documents are required to start a corporation compared to other entities. In addition, corporations face more regulations that require them to file paperwork.
- Taxes. An incorporation may result in higher taxes. Some income is taxed twice, once for the corporation and once for the shareholder.
We Can Help with Business Concerns.
The attorneys at Miller Estate and Elder Law know how to help you make informed decisions about your business. For a free consultation, contact us at 256-251-2137 or use our convenient Contact Form. Our offices are located in Anniston and Birmingham. We also assist many clients in the Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
by Bill Miller | Jun 6, 2018 | Elder Law, Medicaid, Medicaid Planning
Applying for Medicaid is tricky, and timing is important. In fact, Medicaid planning is best started years before you actually need to apply for benefits. How your property is owned, and when it was titled, makes a big difference. One way to plan ahead for Medicaid is by using a life estate deed.
What is a Life Estate Deed?
A deed is a legal document used to transfer property interests. Just as there are different types of real estate transfers, there are different types of deeds: general warranty deeds, statutory warranty deeds, quitclaim deeds, and life estate deeds.
A life estate deed is often used in estate planning. It’s also useful for Medicaid planning. Some of the benefits offered when using a life estate deed include:
- As life tenant, the property owner continues living at the property until death or incapacity.
- At the death of the life tenant, the property immediately passes to the other owners, known as remaindermen or remainder beneficiaries.
- Property passed by life estate deed is not included in probate estate. (However, it is still included in taxable estate.)
Medicaid Eligibility and Your Life Estate Deed
The Medicaid application process involves determining eligibility based, in part, on available income and resources. If an applicant owns property outright, it typically will be considered a resource. In some cases, people are denied Medicaid eligibility because their income or resources exceed the limits.
However, Alabama Medicaid guidelines do not consider property held under a life estate deed to be a resource – unless the property was transferred within the five year review period going back from the date of the application.
How might this play out? Well, if Maggie applies for Medicaid. She does not own her home outright, but has signed a life estate deed naming her children as the remainder beneficiaries. Her other resources put her well below the resource limit. Medicaid ignores the property that’s held under the life estate deed and approves her application. Several years later, Maggie passes away and the remainder beneficiaries take possession of the property. There are tax consequences of using a life estate deed that need to be considered before proceeding.
Learn More About Life Estate Deeds and Medicaid.
Even if you haven’t started Medicaid planning before you need to apply, you can still benefit from the advice you’ll receive from the attorneys at Adams & Miller, P.C.
Don’t let Medicaid eligibility issues give you an unpleasant surprise. Know where you stand now, and how to plan for the future. Talk to an Alabama attorney with experience and training to handle your concerns. Contact Miller Estate and Elder Law at 256-251-2137 to schedule an appointment. We help clients in Anniston, Talladega, Birmingham, Gadsden and surrounding communities.
by Bill Miller | Jun 5, 2018 | Veterans Benefits
After serving this country, veterans should not have to struggle to get the care they need. No, the care they deserve. If you or a loved one is a disabled veteran, a little-known veteran’s benefit called Aid & Attendance benefits for veterans may defray the costs of expensive nursing care. However, as with any government process, applying for veterans’ benefits can be complex, time-consuming, and frustrating.
Aid & Attendance Benefits for Veterans Eligibility
To receive Aid & Attendance benefits, an applicant must be:
- A wartime veteran or the spouse of a wartime veteran;
- At least age 65 or permanently and totally disabled;
- Suffering from certain medical conditions;
- Within the financial requirements; and
- In need of assistance with at least two activities of daily living, be completely bedridden, have severely impaired vision, or be a resident of a nursing facility.
Eligible applicants must meet the following requirements:
- The veteran served at least 90 days of activity military duty, with at least one wartime day. He or she must not have received a dishonorable discharge.
- The veteran or spouse proves they need the attendance of another person to help with their daily living activities as defined by the Veterans Administration.
- Although asset and income limits have not been specified by the VA, the veteran or surviving spouse must prove financial need. The VA caseworker reviews the applicant’s financial data and makes a determination on eligibility.
Applications, Denials, and Appeals.
The application process is difficult, especially for someone already dealing with disabilities. An incorrect application may lead to denial of benefits. Applicants who are denied benefits cannot reapply for a year. While it is possible to appeal a denial, that process is even more complicated than applying. It’s best to use an experienced attorney every step of the way.
If you or a loved one served in the armed forces, check out all the benefits available to veterans. We assist veterans with applications for the Aid & Attendance Benefits for Veterans at no charge.
For a free consultation, contact us at 256-251-2137 or use our convenient Contact Form. We have offices in Anniston and Birmingham, but also assist clients in the Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
by Bill Miller | Jun 4, 2018 | Probate
Emma would like to see her Grandmother Ruth’s estate settled quickly in keeping with her grandmother’s wishes. However, probate is a mystery to her – she has never been involved in an estate before. Emma and her family first have to find out who can probate Ruth’s estate.
In General
Probate is the administration of a deceased person’s estate. Administration includes figuring out where their stuff should go and paying any valid claims against the estate. An executor, personal representative, or administrator handles the probate of an estate.
Any of the following people may probate the estate if qualified:
- The personal representative or executor named in the Will,
- Anyone who will receive property through the Will,
- Any person who has a financial interest in the estate, or
- The person who actually has possession of the Will.
The court holds a hearing to determine who is qualified to be the executor or administrator. For example, the person who serves:
- Must be at least 19 years of age.
- Cannot have been convicted of an ‘infamous’ crime.
- Must be competent to serve as executor.
For Ruth’s estate, Emma would like to be in charge. She is 28 years of age, has not been convicted of any crime, and is a competent person. Emma may be qualified to serve as personal representative.
When There Is a Will
Typically, the person who signed the Will (the testator) named an executor and a successor executor. The executor named in the Will is the first choice to serve as executor of the estate. However, if that person is unable or unwilling to serve, the successor executor is usually appointed executor of the estate.
Unfortunately, Ruth did not leave a valid Alabama Will. She had handwritten a Will, but was alone when she signed it. Alabama does not recognize holographic Wills unless the signing is witnessed and attested to by at least two people. In the eyes of the court, Ruth died without a Will (intestate).
When There Is No Will
An estate must be probated even when an individual does not leave a Will spelling out their wishes. After all, their stuff still needs to go somewhere.
Anyone with a financial interest in the estate can ask to be appointed administrator. However, they must do so within 40 days of the testator’s death.
Courts typically name an administrator in the following order of importance:
- Surviving spouse
- Other relatives, like parents, children, or siblings.
- If no living relatives are qualified to serve, the estate’s largest creditor may serve.
- If no Alabama creditors are available, then appointment varies depending on the size of the county in which the decedent lived. Counties with population over 400,000 probate the estate. In smaller counties, though, any willing, qualified person may be appointed administrator.
One important qualification applies when the decedent died intestate: the administrator must be a resident of the state of Alabama.
Ruth died intestate, because her Will was not valid under Alabama law. She was not survived by a spouse or children. Emma and her siblings were the only people eligible to serve as administrator. However, Emma was the only Alabama resident. Chances are good that Emma will be appointed administrator of her grandmother’s estate.
Do You Have Questions About Probate and Estate Administration?
The attorneys at Miller Estate and Elder Law. assist their clients with probate and estate planning. For a free consultation, contact us at 256-251-2137 or use our convenient Contact Form. We have offices in Anniston and Alabama, but also help clients in Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
You might also be interested in:
When There’s No Will: Alabama Intestacy Law
How to Help Your Adult Children with Their Estate Planning
by Bill Miller | Jun 3, 2018 | Estate Planning
When something is durable, it’s built to last. Tough. Resistant to pressure. Strong. Just the qualities you want in an important legal document like a durable general power of attorney.
A Powerful Legal Document.
A power of attorney is a legal instrument where one person authorizes another person (the agent) to act on their behalf. Sometimes the authorization is very broad. Some are very limited while others apply only to a specific occasion. There are even documents with the specific purpose of authorizing someone to make medical decisions for you. Whether a power of attorney is general or durable is an extremely important distinction.
When is it Durable?
Authorization to act granted by a general power of attorney ends when the principal, the person who signed the power of attorney, becomes incapacitated, disabled, or unable to communicate.
A durable power of attorney, however, remains in effect regardless of the principal’s capacity, or ability to make decisions.
Consequences of Signing a Power of Attorney That is Not Durable.
Let’s say Margie, a 55-year old woman, signs a general power of attorney as part of her estate plan. She authorizes her husband, George, to act on her behalf. The powers given to George take effect immediately and cover pretty much every financial decision Margie might have to make.
Unfortunately, the next year Margie receives serious brain injuries in an auto accident. She is no longer able to communicate in any meaningful way. Fortunately, her advanced directive for healthcare authorizes George to make medical decisions for her. He begins the heavy task of working out their finances. In the process, he learns that the power of attorney is no longer in effect because it is not a durable. George is forced to hire an attorney and start a conservatorship proceeding.
Make Sure You’ve Signed the Right Power of Attorney.
If you have not reviewed your estate plan for a while, or you’ve never taken that important step of making your plans, it’s time.
Schedule a consultation with one of our attorneys and find out where you stand. Our phone number is 256-251-2137, or you may use the Contact Form on our website. We have offices in Anniston and Birmingham, but also assist clients in communities like Hoover, Vestavia Hills, Irondale, and Calera.
