Articles

Congress makes major changes to mortgages

Sweeping changes to the way home mortgages are structured and approved have been passed by Congress and signed into law by President Obama. The changes are included in the recent financial regulatory reform law. Although the main goal of the law is to change the way Wall Street banks are regulated, a large section of it is aimed at mortgage reform. Here’s a brief summary of the most important changes: One of the key goals is

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What is a ‘trust protector,’ and do you need one?

A new idea for people who set up long-term trusts is that of the “trust protector.” A trust protector is different from a trustee. A trustee’s job is to administer the trust on a day-to-day basis according to how it is written. A trust protector’s job is to “protect” the trust by making very occasional changes to its rules as needed to further its goals. The idea is to keep a long-term trust serving the purposes

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Bank pays $64,000 for not honoring a power of attorney

Clarence Smith Sr., a Florida resident, decided he no longer wanted to have to manage his finances. He signed a power of attorney document authorizing his son to handle his affairs. Clarence owned a bank account jointly with a female friend from his retirement community. His son became suspicious about some withdrawals from the account and contacted the bank. He asked the bank to transfer $64,000 from the joint account into an account owned solely by

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If you’re hiring home help, beware of the ‘nanny tax’

If you or an elderly relative is hiring someone to provide care in their home, you should be aware that the “nanny tax” may apply. Generally, the tax applies if you hire someone and pay them $1,700 or more a year. Here’s what’s involved: You must pay the employer’s share of Social Security and Medicare taxes for the employee. That’s 6.2% of wages for Social Security and 1.45% for Medicare.

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Sometimes it can be smart to turn down a bequest

Here’s something you probably never thought about: Just because someone leaves you money or other assets in a will, that doesn’t mean you have to take it. You can also just say, “No, thanks.” (Actually, you have to do more than that. You have to sign an official document called a “disclaimer.”) Why on earth would someone turn down a bequest? Well, it turns out that in some cases, doing so can save a family money

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It might be time to update your health care proxy

A health care proxy states who you want to make medical decisions for you if you’re not able to make them yourself. A living will provides a roadmap as to how you want those decisions to be made. It’s a very good idea to create these documents, and to review them on a regular basis. Here are some things to consider: Has your state recently adopted a “standard” health care proxy form? Some states have adopted

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Property’s boundary was the ‘tree line’ – despite the deed

A Minnesota man sold part of his property, then planted trees along what he thought was the boundary line. He and his neighbors treated the trees as the boundary line for 23 years, until a new neighbor looked up the deed and discovered that the actual property line was six feet over the “tree line” onto the man’s side. The two went to court, but the court sided with the man.

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Your hobby might be a ‘business’ and subject to zoning rules

Many cities and towns have zoning rules that limit people’s ability to operate a business on their property. But sometimes it can be difficult to tell whether a homeowner’s activity is a business or a hobby. If there’s any doubt, you might want to talk with an attorney. For instance, a New Jersey woman had a four-acre home on which she bred German Shepherd show dogs. She obtained a permit to build a storage building on

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Condo board is limited in dealing with owner’s offensive behavior

A condominium owner might have behaved in an extremely offensive manner to his neighbors and to the condo manager, but the condo board can’t sue him for creating a nuisance, according to a Massachusetts court. Over a period of five years, the owner did almost everything he could to offend his neighbors and the building manager. He cursed at them and left them vulgar and derogatory voice-mails, posted offensive messages on signs in the laundry room,

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Homeowners must be allowed to rent to college students

A New Jersey town might have been upset about rowdy college students in rental properties near the school, but it didn’t have a right to deal with the problem by passing new zoning rules that limited rentals, says a New Jersey appeals court. The town of Ewing, N.J. had tried to limit “Animal House”-type rentals by adopting rules for rental properties that required a minimum amount of space per renter and that required one parking space

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