Sanford Law Group

The main difference between legal and business considerations for those negotiating a commercial real estate deal is protection from the law versus money issues. Legal considerations affect include having a legal arrangement in place that can stand up in court if the need arises. Business considerations are primarily focused on the fiscal sensibility of the deal and whether it is good for business. Real estate attorneys can help you with both aspects of purchasing commercial property.

Attorneys can help with a variety of issues throughout a real estate transaction, including making complex closing documents easier to understand, explaining the risks involved in a transaction, explaining your rights as a buyer or seller, performing due diligence, and ensuring a clear property title. You can handle some of these things without an attorney, but doing so is time-consuming and puts you at risk should problems arise at the closing or further into the future.

Title insurance is highly advisable because it protects you from a financial loss related to the ownership of the property if a problem with the property’s title should arise. When title problems become evident, it puts your stake in the transaction at risk, which means you could lose your down payment and any equity you have. It should be noted, title claims could happen for many years after your purchase, not just during the closing, so even after you think you’re in the clear a problem could arise.

A title review is important because of the power held by a property’s title. A review helps avoid problems and delays. Determining if there is a problem with a title can be challenging without knowing exactly how to run a check on one. Assuming everything is fine with a title can lead to problems being revealed at the last minute, which will delay a real estate transaction or cause it to fall through entirely.

The most common methods for holding title to real property include: Joint tenancy Tenancy in common Tenants by entirety Sole ownership Community property Choosing the manner in which the title is held is an important decision based on the property, a person’s specific family situation, who is the desired beneficiary of the property when the owner dies, how the property is used (residence, business, etc.), and what other protections are needed within in the property’s title.

Probate includes proving the validity of a will, inventorying and appraising a property, satisfying debts and taxes, and distributing property. In most cases, the estate’s executor and/or attorneys file paperwork and handle the bulk of the probate process. It typically takes a few months to a year. Assets subject to probate include: -Bank and brokerage accounts in the decedent’s name -Real estate owned individually or as tenants in common -All vehicles -Personal possessions such as jewelry, art, and collectibles

Probate times can vary dramatically, but it typically takes about three to four months in North Carolina, though some estates take much longer. Creditors of the estate have 90 days from the date of publication of the notice of probate to file their claims against the estate. In general, the more valuable and complex the estate the longer the probate process will take. The competency of the executor also plays a role in how long the probate process takes.

Tax law affects wills and trusts because it might be necessary to pay taxes on an estate when it is settled. North Carolina does not have estate or inheritance taxes, which are taxes some states levy on the owners of property in the state where they lived or the beneficiaries who inherit property from someone who lived there. However, an estate could be subject to taxes levied by another state even if you are in North Carolina or could be subject to federal estate taxes based on the estate’s value.

For a will to be valid, it must be shown that it was created without any undue influence. Undue influence, in the case of wills, is a pressure that a person might impose on another that overcomes their will and affects how they determine their assets should be distributed after their death. The person asserting influence must be shown to take advantage of the testator by substituting what he or she wanted in place of what the will’s creator actually wanted.

Yes, the surviving party can avoid probate when the right of survivorship in a joint tenancy is used. This saves a great deal of money and time. But it should be noted joint tenancy with the right of survivorship means tenants have no right to name a beneficiary and even if they have, that beneficiary has no legal right to the property. Joint tenancy with right of survivorship tends to be restrictive and it might be able to cause tax complications.

A living trust has relatively little effect on a person’s income taxes during his or her lifetime because there are no tax savings attributable to earnings of the revocable trust. The creator of the trust retains control over the assets and is able to revoke the trust if desired, and is therefore taxed on all the income. It should be noted, tax laws concerning trusts, trust income, and what occurs after a trust creator passes vary a great deal based on how the trust was established, so it is important to work closely with an attorney to ensure you and your loved ones receive the greatest benefit.

No. Irrevocable trusts do not officially go into effect until a person has died, so that means they cannot be changed after you die. Whoever has been named in your trust documents as beneficiaries to inherit your assets become beneficiaries upon your death. They own whatever assets were placed into the trust and distribution of those assets is according to the terms set in place when the trust was created.

Yes, in some cases, but it depends on a person’s specific circumstances. Living trusts detail how a person’s assets are distributed at the time of death. It also helps a person’s family avoid probate. Living trusts might also include a Power of Attorney and Advance Healthcare Directives, which are most often given spouses and children. For a single person, a living trust can help avoid the state taking ownership of the estate after death and ensure that assets are distributed according to the creator’s directives.

The difference between a will and a trust depends on the type of trust in question, but in general, wills go into effect only after a person dies, but trust takes effect the moment it is created. A will is a document that provides directions for who receives a person’s property at the time of his or her death and appoints a legal representative to ensure those directives occur. Trusts provide additional protection for assets and for beneficiaries.