Articles

A living trust can be a valuable part of your estate plan – but only if you properly transfer your assets into it. There are various ways to accomplish this, depending on the type of asset.

• Your Home. You (or you and your spouse, if you’re married) can use a deed to transfer your home into the trust. The deed is then taken to the Washtenaw County Register of Deeds for recording as a public record.
• Contents of Your Home. Through an attachment to your living trust, you can place in your trust the contents of your home, whether there now or acquired later.
• Brokerage Accounts. Your broker will have a form you can sign to transfer your accounts to your trust.
• Individual Securities. Typically, you’ll need to work through the transfer agent named on the stock certificate. You usually have a choice: You can put securities in the name of your trust, or you can add a Transfer on Death (TOD) designation. With a TOD designation, the securities will be transferred to the trust when you (or you and your spouse) have died.
• Bank Accounts. You can put bank accounts in the name of your trust, or you can sign a Pay on Death (POD) designation similar to the TOD designation used for securities.

The attorneys at the Ann Arbor firm of Hamilton, Judge, Schroer & Steingold can draft a living trust for you, and can also help you transfer assets into your trust.

There are many similarities between corporations and limited liability companies (LLCs). For example, both types of business limit the personal liability of the owners. But there are differences as well – especially when it comes to terminology.

• What an Owner is Called. In a corporation, an owner is called a shareholder. In an LLC, an owner is called a member.
• What an Owner Owns. In a corporation, an owner owns shares of stock. In an LLC, an owner owns a membership interest.
• The Document that Creates the Entity. For a corporation, it’s called the Articles of Incorporation. For an LLC, it’s called the Articles of Organization.
• The Document that Covers Internal Procedures. For a corporation, it’s called the bylaws. For an LLC, it’s called the operating agreement.

The attorneys at the Ann Arbor firm of Hamilton, Judge, Schroer & Steingold can explain the other differences between corporations and LLCs, and help you decide which is best for you.

Your business may use contracts regularly or occasionally in dealing with customers, clients, suppliers, employees or independent workers. Here are some basic concepts to keep in mind.

• Contract Requirements. A contract requires a meeting of the minds and consideration (an exchange of things of value). First example: Joe offers to paint Betty’s house for $1,500 and Betty accepts the offer. Second example: ProtoCorp pays $100 to its employee Charlie in return for his promise not to compete with ProtoCorp in Washtenaw County for one year after his employment ends.
• Written or Oral. In many cases, an oral contract is binding. The main exception is a contract for the sale of real estate. Still, to avoid legal problems, any important business contract should be in writing.
• One Document or Several. A written contract may be a single document that both parties sign, but that’s not always so. For example, you may send a letter making an offer to another person or business. If the other person or business accepts in writing, you have a contract.
• Breach of Contract. If a party breaches a contract – that is, doesn’t honor its commitment – the other party can seek damages (monetary compensation). In some cases, a judge may require the breaching party carry out its commitment. This is called specific performance.

The attorneys at the Ann Arbor firm of Hamilton, Judge, Schroer & Steingold frequently draft or review business contracts, and represent clients in resolving contractual disputes.

Whether you sell your home through a real estate agent (as most sellers do) or sell it yourself, the process is basically the same. There are the four main stages.

• Disclosure Forms. You’ll need to complete a seller’s disclosure statement and a lead-based disclosure form for potential buyers to view. If you present a full picture of your home’s condition, a buyer will find it hard to later claim that you intentionally hid a problem, such as a leaky basement.
• Sales Contract. Likely, you’ll use the sales contract form created by the Ann Arbor Area Board of Realtors. The buyer will probably want to make the sale contingent on getting a mortgage loan, and having a contractor’s inspection. That’s fine, but strive for an early deadline for the contingencies to be removed. If the sale is going to fall through, you’d like to know that as soon as possible.
• Title Insurance Commitment. The title insurance commitment gives you a heads-up on any title problems that need to be resolved before closing.
• Closing Papers. Ask to see the closing documents in advance. Verify that the HUD Settlement Statement contains accurate numbers. Also, carefully read the seller’s affidavit to make sure you know that the facts you’re attesting to are correct.

The attorneys at the Ann Arbor firm of Hamilton, Judge, Schroer & Steingold can review the documents in your home sale to determine if your interests are protected.