Asterita & Associates, LLCAsterita & Associates, LLC Attorneys At Law2024-03-07T22:36:30Zhttps://www.bonfiglioasteritalaw.com/feed/atom/WordPress/wp-content/uploads/sites/1403554/2022/08/cropped-site-identity-32x32.jpgOn Behalf of Asterita & Associates, LLChttps://www.bonfiglioasteritalaw.com/?p=521242024-03-07T22:36:30Z2024-03-07T22:36:30ZWhen a will is drafted, the testator can name an executor. The executor is responsible for distributing assets to beneficiaries and settling the estate. An executor can be anyone of legal age. Many testators name their spouse or a sibling as their executor. These people often know the testator's best interests and can settle the estate in good faith.
Typically, there’s a lot more that’s required from an executor, this includes:
Collecting death certificates
Submitting the will to probate court
Paying taxes and debts
Contacting interested parties
Collecting insurance benefits
Locating assets and investments
Locating beneficiaries
The executor has time to perform their duties during probate. Probate can last for several months, which gives creditors time to file a claim. A complicated estate can take up to a year to settle. Here’s what happens when an executor fails in their duties:
What if the executor fails in their duties?
Executors have what’s known as a fiduciary duty. A fiduciary duty is an executor's responsibility to always act in the testator’s and beneficiary’s best interests. An executor’s fiduciary duties include putting the interests of the estate before them, acting honestly and fair, keeping information private, ensuring no damages are done to the estate and fulfilling everything instructed by the will. An executor may breach their fiduciary duty if they, for instance, take assets for personal gain, allow a home to fall to ruin or reveal the value of an estate to others. When an executor breaches their fiduciary duty, they may be legally liable.
What makes a good executor?
To ensure that the role of executor is fulfilled, it can help to pick the right person. This person may be someone highly trusted, close and willing to perform a heavy role. An executor may also seek legal help to ensure their duties are fulfilled.
]]>On Behalf of Asterita & Associates, LLChttps://www.bonfiglioasteritalaw.com/?p=520442024-02-23T19:33:34Z2024-02-23T19:33:34ZCredit card debt has recently been making headlines for hitting historic highs. The commutative total of debt held by Americans reached a staggering $1 trillion. Not only is this the highest level credit card debt has reached in American history, but it underscores how frequently people use credit cards even for their everyday purchases.What this also means is that many people constantly have revolving credit card debt. Even if they pay the card off at the end of the month, some of that debt remains and they may have debt cycling on multiple cards. Inevitably, this means that people will pass away with remaining credit card debt that has not yet been taken care of. Who is in charge of doing so?
The estate executor
Technically, the person who is in charge of doing this is the estate executor – also known as the estate administrator. They should inventory the debts that the estate has while looking at the assets. They can then use the financial assets to pay off the debts and settle those accounts.But in this sense, it is the estate that pays the debts. Beneficiaries and family members are sometimes concerned that they are going to be responsible for paying this off, as if they have inherited that debt. But this isn’t how it works, debt isn’t inherited, and the only impact they would see is a reduction in the total value of the estate.The financial side of this process can become complicated, and handling debt is just one thing to consider. All involved need to be well aware of their legal options.]]>On Behalf of Asterita & Associates, LLChttps://www.bonfiglioasteritalaw.com/?p=520382024-02-12T15:43:30Z2024-02-12T15:43:30ZThe mortgage closing process, also known as settlement or escrow in some regions, is the final step in the home-buying journey. It occurs when a property's purchase is officially completed, ownership is transferred from the seller to the buyer and a new mortgage becomes effective.
For many buyers, especially first-timers, closing can be both exciting and daunting due to its complexity and the amount of paperwork involved. Understanding what to expect can help demystify the process, making it less stressful and more efficient.
Dotting the Is and crossing the Ts at a house closing
Before closing, buyers typically conduct a final walk-through of the property. This is an opportunity to ensure that the home is in the agreed-upon condition, that necessary repairs have been made and that the property is empty unless otherwise agreed upon.During the closing process, a final review and signing of various legal and financial documents will take place. If you’re about to participate in a closing, you’ll likely be signing the following key documents at that time:
The closing disclosure: This document outlines the details of your mortgage, including the interest rate, monthly payments and closing costs. You should receive this form at least three business days before closing to review for accuracy.
The mortgage note: This legal document binds you to the agreed-upon terms of the mortgage loan, including your obligation to repay the borrowed amount plus interest.
The deed of trust: Also known as a security instrument, this document gives the lender a claim against the house if you fail to meet the terms of the mortgage note.
The certificate of occupancy: For new construction, this document is necessary to prove the home is habitable and meets local building codes.
You should also be prepared to pay closing costs during the closing process, which typically range from 2% to 5% of the purchase price. These costs cover various fees, including loan origination fees, appraisal fees, title searches, title insurance and taxes. Finally, the closing process will end with the transfer of the property's title from the seller to the buyer, officially making you the homeowner. ]]>On Behalf of Asterita & Associates, LLChttps://www.bonfiglioasteritalaw.com/?p=520292024-01-31T01:55:23Z2024-01-31T01:55:23ZResidential leases are legally binding agreements that set the terms under which one party agrees to rent property from another. These contracts form the foundation of relationships between landlords and tenants. As such, understanding their key terms and broader necessary considerations is important for both parties to a lease. While a poorly drafted and/or uninformed lease can inspire confusion and disputes, a well-drafted lease can help to prevent escalating tensions and help to ensure a mutually beneficial rental experience.
Notable primary concerns
When it comes to a thoughtful lease, several terms should be clarified without room for questions or doubt. For example, a lease term specifies the duration of the rental agreement. It can be short-term (such as a month-to-month lease) or long-term (typically a year). Understanding the start and end dates of the lease and the terms of renewal can help to ensure that everyone’s expectations are aligned. Clearly defined rent details are also important. They should include not only the amount of rent owed but also when and how it should be paid. The lease should specify the due date, acceptable payment methods and the procedure and penalties for late payments. Sometimes, leases also include terms about rent increases, which are especially important in longer-term agreements.Additionally, if a lease requires a security deposit to cover potential damage to the property, it should state the amount of the deposit, the conditions under which it will be retained or refunded and the timeline for its return after the lease ends.
Notable secondary concerns
While not a primary concern, a lease should outline who is responsible for maintenance and repairs. Typically, landlords handle major repairs and maintenance, while tenants may be responsible for minor issues and everyday upkeep. Similarly, it’s important to specify which utilities (electricity, water, gas, internet and so on) are included in the rent and which are the tenant's responsibility. Additionally, a lease should lay out any specific rules or regulations governing the property. These can include policies on pets, noise levels, alterations to the property and guest policies. Clarifying these rules helps prevent conflicts during a tenancy.Finally, understanding the conditions under which the lease can be terminated by either party is important. The lease should outline the notice period required to end the lease and the conditions under which eviction can occur.Ultimately, a clear and comprehensive lease agreement can lay a strong foundation for a positive landlord-tenant relationship in which both parties are aware of their rights and responsibilities.]]>On Behalf of Asterita & Associates, LLChttps://www.bonfiglioasteritalaw.com/?p=520272024-01-25T19:18:58Z2024-01-25T19:18:58ZWith a residential lease, the tenant may just have to pay rent every month. In some cases, utilities are also included. But this isn’t a given, and many renters have to cover these costs themselves.
With commercial leases, however, rent and utilities are just the beginning. Depending on the type of lease being used, there could be many other costs involved. It’s important for commercial renters to understand exactly what these costs look like and what they are obligated to cover.
What type of lease is it?
If you are thinking of signing a commercial lease, the first question is just to ask what type of lease you’re dealing with. It could be a single-net lease, a double-net lease or a triple-net lease, for example.With a single-net lease, you would be responsible for the property taxes, along with the rent and potentially the utilities, as noted above. With a double-net lease, you would also have to cover the cost of insurance on the property.If you are using a triple-net lease, however, the obligations take another step. You would also have to cover real estate taxes and maintenance costs. You may also have to cover building insurance, not just insurance for the property itself.
Legal obligations
The way that a lease is structured has a big impact on the viability of that property for your business. Rent itself may be lower if you’re covering additional costs, like insurance, so it’s very important to look into the details, to understand your legal obligations and to know what steps to take if there’s ever a dispute.]]>On Behalf of Asterita & Associates, LLChttps://www.bonfiglioasteritalaw.com/?p=520242024-01-11T17:06:57Z2024-01-11T17:06:57ZMaking an estate plan is a great first step. Most people have never done it. Just writing a will puts you ahead of the majority, and you will be more prepared for what the future holds.
However, you do not want to neglect the estate plan after you make it. This usually isn’t something that you can just forget about, trusting the document to address everything if you pass away. It needs to be updated to ensure that it is current. When should you do this?
When beneficiaries change
First of all, beneficiaries may change through marriage, divorce, birth or death. If a beneficiary passes away or you want to remove them from the estate plan for another reason – such as if they got divorced from one of your children – then you need to update the plan. You may also want to update that plan when grandchildren are born.
When finances change
Much of estate planning does focus on the financial picture, passing tangible assets or monetary assets to the next generation. If there are significant changes, then the estate plan should be updated to match. Examples of these changes include selling a business, selling a house, getting an inheritance from your parents, winning the lottery, retiring from your career and much more.
When your health changes
Finally, if you are given a serious medical diagnosis, then it’s important to update the estate plan. Perhaps you’ve been diagnosed with Alzheimer’s and you want to make these updates quickly while you still have testamentary capacity. Or perhaps you want to use a medical power of attorney or a living will to make healthcare decisions in advance.For all of this and more, there are estate planning tools you can utilize. Take the time to carefully consider what steps to take and when to update your plan.]]>On Behalf of Asterita & Associates, LLChttps://www.bonfiglioasteritalaw.com/?p=520222023-12-28T14:48:46Z2023-12-28T14:48:46ZCAM fees cover certain maintenance costs
Common area maintenance (CAM) fees are a popular inclusion in commercial leases. If tenants share access to certain amenities, like a centralized bathroom or a large parking lot at a strip mall, CAM fees help a landlord pay to maintain those spaces.
When a tenant only occupies one unit in a building with multiple other tenants, CAM fees are a standard inclusion in the lease agreement. Sometimes, the lease sets a CAM fee as a flat rate per month based on the landlord's average operating expenses. Other times, they hold the tenants accountable for a percentage of maintenance expenses as they accrue them.
There are benefits and drawbacks to both arrangements. Sometimes, commercial tenants can negotiate better terms for their CAM fees because they intend to use the space less or have fewer visitors than other tenants.
Business owners often need to review a lease carefully so that they budget for costs like CAM fees. They may also need to prepare for the possibility of fluctuating monthly expenses when unusual maintenance or repair costs arise. In these ways, understanding the purpose of CAM fees and clarifying tenant obligations may benefit those negotiating the terms of a commercial lease.]]>On Behalf of Asterita & Associates, LLChttps://www.bonfiglioasteritalaw.com/?p=520202023-12-14T16:11:16Z2023-12-14T16:11:16ZThere’s a lot to know when estate planning. Unfortunately, it’s easy to be confused by information spread online.
To help avoid mistakes, it can help to learn the truth about a few common estate planning myths:
Myth 1: Heirs and beneficiaries are the same thing
Fact: When estate planning, two common terms used for someone who will inherit from an estate are “heir” and “beneficiary.” While these terms are often used interchangeably, they are not always used correctly. An heir is the next of kin who stands to inherit from an estate by a matter of law if there is no legal will. A beneficiary is a family member, friend, colleague or charity that is chosen by the testator to gain from an estate. Knowing these two differences can be important when clarifying the intent of a will.
Myth 2: Each will must be saved after revisions
Fact: It’s often recommended that wills be updated every three to five years. When a will is revised, the old one should be revoked in some manner. Typically, the best way to revoke an old will is by physically destroying it, which can be done by burning, tearing or shredding it.
Myth 3: You can’t pick your executor
Fact: An executor of the estate is someone responsible for distributing and handling an estate after the testator has passed away. The testator can name a beneficiary in their will. Many people name spouses, children or siblings as executors. Without a valid will, the state will name an executor.
Myth 4: You only need one witness when signing a will
To help ensure that a will is valid, the testator must have two witnesses sign the will. The witnesses must also not have anything to gain from the estate. Without both signatures - and the testator’s signature - the will may not be considered valid. It can be hard to know whether the information you find online is true. You may need to reach out for legal help if you have any questions about estate planning. ]]>On Behalf of Asterita & Associates, LLChttps://www.bonfiglioasteritalaw.com/?p=520152023-11-30T06:27:24Z2023-11-30T06:27:24ZEstablishing a fair market value
A company is worth more than just the current resale value of its equipment. People need to know what an organization is worth to negotiate a sale price. There are many different approaches to business valuation that look at factors ranging from the value of current contracts to the impact of a company's reputation on consumer behavior. Learning about different means of business valuation can help business owners choose the right option and ask an appropriate price for the business that they own.
Addressing transition support needs
Someone taking over a business will inevitably experience some challenges. Those challenges may range from conflict with certain employees to difficulty adjusting to a different industry or market. One of the best ways to ensure that the company remains successful and solvent when a new owner takes over is to offer transitional support as the former owner.
Many owners and executives will offer anywhere from one to six months of transition support, sometimes more. During that transition, they may continue working full-time at the business, communicating with clients and training their replacement to ensure that the company remains viable after their exit.
Identifying and eliminating liabilities
Whenever possible, it is best to list the company for sale in optimal condition. Doing so may require making updates to the facilities or repairs to machinery. Business owners may also want to address financial liabilities by paying off certain loans. Other times, the biggest liability may be the risk of workers leaving when ownership changes hands. Some owners even negotiate contracts with their workers and clients to minimize the disruption to the business when the new owner takes control.
Having a rational, measured approach to the sale of a business can help optimize profits for the owner and make the business opportunity as enticing as possible for prospective buyers.]]>On Behalf of Asterita & Associates, LLChttps://www.bonfiglioasteritalaw.com/?p=520132023-11-29T14:27:26Z2023-11-29T14:27:26ZThe end-of-year holiday season brings families together to share their hopes and dreams of the future. It is a time of joy and togetherness that most remember fondly until the next family celebration.
You may not realize this, but the holidays are an ideal time to take on those estate planning tasks you may have been putting off. Here are three good reasons to make estate planning topics part of your holiday conversations.
Learning opportunities
When families reunite, they often talk about the future and what they hope to achieve. Pay attention, and you could have a candid opportunity to learn what inspires passion in your loved ones. With this knowledge, you can shape your estate plan to help the dreams your heirs may have come true.It is also an ideal time to refresh your knowledge of the trusts and wills laws in New York (or New Jersey), which can change rapidly.
Contemplative moods
Many enter a reflective mood during the holidays, contemplating their past decisions and how they want to live life from now on. When your loved ones are open and reflective, they may better understand your estate planning decisions.This may help to prevent misunderstandings about your will or advance medical directives among your family members.
Yearly reminder
Using the holidays to address estate matters helps you create an association between the end of the year and estate planning. The holiday season can remind you that it is time to go over your documents and ensure they meet your needs.If you find any irregularities, you can schedule an update with your representative, ensuring you enter the new year with your estate plan in tip-top condition.]]>