Top 10 Everyday Legal Tips

Being an attorney, I get asked legal questions every day, since pretty much everyone has an issue with the law at some point in their lives. Entrepreneur.com put together a list of 10 everyday legal tips. This list covers the questions I hear the most, so nice job! Hopefully this list will save me from giving free legal consultations at every party I attend. You can check out a portion of the list below, or head over to Entrepreneur.com for the full text.

1. Make a will.

Things can get messy if you don't, and you won't be around to sort it all out. You should decide now who will inherit from you, and who won't, and name a guardian for your children, among other things. Additional estate planning documents are often made at the same time as a will: a trust (if needed), powers of attorney and a living will (saying whether you want them to pull the plug). Estate planning allows you to control what happens to you and your assets, and it can save your family from having to make some difficult - and often contentious - decisions.

2. Sign a prenup.

You don't have to be rich or famous. If you own a business or have children from a previous marriage, or simply want to keep some of your property separate, give it some thought. A prenuptial agreement can spell out what happens in the event of divorce or death. But don't write it up on your own. Make sure you and your soon-to-be spouse each consult with an attorney. Be upfront and disclose everything. An invalid prenup will get thrown out by the court.

3. Know your rights.

If you are pulled over by the police, be cooperative and polite. You'll probably be asked for identification, registration and proof of insurance, and you should comply. If the officer asks you questions about where you were, where you're going or whether you've had anything to drink, you do not have to answer. If they ask to search your vehicle

7 Ways Moms Can Boost Their Financial Security

As Mother’s Day quickly approaches, I thought it’d be a great time to share this article from Klipinger.com with the fantastic moms and women out there. Take your finances into your own hands and take the advice.

1. Schedule a money date with your spouse and talk things out. Many women want their spouses to talk about money issues more, so try starting that conversation yourself! Write out your financial goals together and see whether or not you’re on the same page.

2. If you aren’t saving for retirement already, start. Small amounts set aside now will compound and grow over the years. The earlier you start, the more time your savings have to grow. If you are working, sign up for your company’s retirement plan. Aim to contribute at least enough to qualify for your employer’s match. It’s free money! In 2010 you can contribute up to $16,500 to a 401(k) or other employer-based retirement account, or $22,000 if you’ll be 50 or older by year’s end.

Never cash out your company plan if you switch jobs. Instead, roll the money over to an IRA or new employer plan so that you continue saving and do not get hit with tax penalties.

3. No company or employer plan? Then set up your own retirement account, such as an IRA. If you’re a stay-at-home mom, you can have an IRA so long as your spouse is employed. In 2010 he can contribute up to $5,000 to an account for you ($6,000 if you’re 50 or older) in addition to his own $5,000 contributions. This doubles the tax breaks to you as a couple!

4. Life insurance is always advised. Once you have children it should become a priority so your children do not suffer financially if you’re not around any longer. The rule of thumb? Coverage should equal eight to ten times your annual household income, including any benefits covered by your employer. Buying term life insurance is said to keep things simple and inexpensive. Several hundred thousand dollars’ worth is just a few hundred dollars per year.

Already have life insurance? Remember, you’ll need to re-evaluate your coverage periodically to ensure it still meets your current life circumstances. For instance, you may need more coverage if you have another child but less when the children are grown and out of the house.

5. Write a will. When you don’t have a will, your state’s one-size-fits-all estate plan kicks in and you might not agree with it. The state will also choose the guardian of your children. With a will, you can make these decisions, divide your property and even design trusts for your children for specific purposes. Review your will after the birth of additional children.

6. Make sure you specify a guardian. If you don’t choose a guardian for your children officially, then the choice you informally made with a friend or family member won’t stand up legally. Avoid any hassle or expensive court battle by naming a guardian in your will.

7. Review your beneficiary designations on insurance policies, IRAs, 401(k)s, and other retirement plans such as pension and profit sharing plans at various life stages. The assets in these accounts go directly to whomever you have named as a beneficiary; these are not covered by your will. If you handle these issues now, you won’t have devastating consequences if something was to happen.

Read the full article here.

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Will Or Trust? Understanding The Differences

Earlier today I came across this new Associated Press article on the differences between a will and a trust. Candice Choi, the article’s author, points out that after Michael Jackson death, questions about his will have sparked thousands of questions about wills and trusts in general. Choi provide several helpful answers to some of these common questions, and I highly recommend anyone confused about Wills check it out.

One of the big mysteries in the chaotic days following Michael Jackson's death was whether he left behind a will.

After initially stating the entertainer likely died without one, the superstar's family reversed course and produced a 7-year-old will this week.

The five-page document filed in court simply transferred Jackson's estate into a family trust, leaving a slew of questions unanswered about the King of Pop's finances.

The setup is common in California and numerous other states, where trusts are used in place of wills partly as a way to avoid court proceedings and keep financial matters private. There are other reasons to set up a trust rather than a will.

A will generally spells out a one-time distribution of assets, while a trust can stipulate that assets are distributed over time. So if you have young children, a trust could see that they get their inheritance in installments upon certain milestones, such as a birthday, graduating college or marriage.

Once the document you pick is drawn up, be sure to let family members or those named in the trust or will know where to find it. Anybody who has possession of your will — often your attorney — is obliged to file it in court upon your death.

It's common to leave copies of trusts with your attorney or designated trustees, said Akers, who is also chairman of the real property, trust and estate law division at the American Bar Association.