Planning for long term care

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Planning for long term care
As the baby boomer generation gets older, there is going to be an increased need for attorneys that specifically work in the area of estate planning for long term care.  If you or a loved one is getting to the age of 55 or older, it is time to start seriously considering an exit strategy. There are several questions you need to ask yourself:

1) Are you prepared in the event you need long term care?

2) Are you prepared in the event your spouse needs long term care? (Keeping in mind that medical facilities and nursing homes can come after you for the medical bills of your spouse- see blog posting from September 2, 2011.)

3) Do you have a succession plan for your business?

4) Will members of your family have the ability to pay off the family owned business if something were to happen to you?

5) If you don’t have a spouse, children, parents, siblings, or grandparents that are still alive, do you have a will in place that specifies who will be the executor and beneficiary of your estate?

6) Even if you do have the above family members, do you wish your estate to pass in a way different from the laws of intestacy? If so, do you have a will?

If you are unsure about the answers to any of these questions, or if you answered “no” to any of the above questions, I would be happy to discuss your specific needs in a free consultation.

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Keeping Appropriate Business Records

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 As many accountants, financial advisers, and attorneys will tell you, it is really important to keep good records throughout the year.  However, even if you keep good records throughout the year, it is important to have a book keeper, accountant or tax adviser review your records at the end of the year to make sure every thing is in order.  I can’t tell you how many clients I have had that came to me with tax issues that occurred as a result of bad book keeping, or poor oversight of the accountant or book keeper.
If you are taking deductions for travel, meals, or office supplies, it is important to keep the receipts for those items and to make a note on your receipt regarding who you were with and why.  For more information about the specifics of the tax law changes, please visit our Youtube channel, as we have a whole series coming out in 2018 on all the changes and how they will affect business owners and individuals.
If you intend on taking deductions for mileage, it is important to keep a log in which you write down the date, where you went and how many miles it was.  This process is much easier now that we can map out our travel on Google Maps or some other similar program.  You should keep this log readily available to ensure that you add all travel. 
For more information regarding this and related subjects, please check out www.tibbslawoffice.com.  For answers to common legal questions, check out the firm youtube channel at: www.youtube.com/tibbslawoffice and www.youtube.com/tibbslawofficeKentucky.
TIBBS LAW OFFICE, LLC
8845 Governors Hill Dr., Ste 450
Cincinnati, OH 45249
(513) 793-7544
tibbslawoffice.com

Getting a second divorce, from the same person

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Getting divorced for the second time…from the same person

As you might imagine this isn’t a very common problem.  Not many people get married to the same person twice.  Pamela Anderson married and divorced Rick Salomon twice.  Elizabeth Taylor married and divorced Richard Burton twice.  Richard Pryor married two of his wives two times.   For those facing this situation, there is very little information on this topic.  So I decided to provide some information.

Someone in this situation is going to have several questions, here are the (Ohio) answers to some of the questions we are asked:
1) Are the children, which were born during the first marriage, considered children of the second marriage?  Generally, yes.  Another example of this is where a couple is unmarried, has a child, then gets married, then gets divorced.  Even though the child was born before the marriage, the child is still considered “issue of the marriage.”

2) Will child support and custody be re-litigated?  Generally, yes.  At the conclusion of the first divorce, the court issued an order regarding custody and support.  When the parties remarried, that support (and custody) entry ceased being effective either because the court terminated the original order (the obligor does not have to continue to pay child support if the parties remarry) or because the court issued a new order after the remarriage.  In the second divorce, the court will issue a new child support order that will be based on the current status of the parties’ employment.  The court will also issue a new custody order that is likely to be the same as the order issued in the first divorce but may be different.

3) Will the parties re-litigate the division of property?  Generally, no; however, one of the factors that will impact this is how much time occurred between the first and second divorce.  Generally, the division of property that took place in the original divorce will still stand.  For example, if the court granted the martial residence to one of the parties, that party still gets to keep the home and that decision will not be revisited by the court.  The court will, however, divide any newly acquired property, if the parties have any.

Hopefully, this answers many of the questions you have about this topic.  

Mortgage Forgiveness Debt Relief

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Mortgage Forgiveness Debt Relief March, 2012

If you are like me, you are in the midst of the tax preparation haze.  I became an attorney with the hopes that my business would be that of the written word and I would never have to complete another math problem for so as long as I live.  As it turns out, the government has other ideas.  Each year we are forced to gather paperwork, receipts, and get out calculators, while we lament about how little we earned and how much of that we owe to the government so that it can carry on with programs that we don’t benefit from or don’t believe in.
I dislike tax preparation, not only because it is tidious, but also because it requires us to review the events of the last year, which in turn requires us to assess whether we achieved our goals.  After finishing my taxes and assessing the year, I consider 2011 to be a success for me individually, but to be fair, my expectations and living requirements were much lower than the average American. 
Due to the disappointing economy, approximately 1,334,663 foreclosures were filed in 2011 and that does not include the sizeable number of short sales that occurred.  What many Americans don’t realize is that in years past, if your house was foreclosed on, or you sold your house for significantly less than what you owed in a short sale, you were required to pay the full deficiency amount.  Due to current conditions, the lending institutions have rarely required this; however, you were still required to pay income taxes on any deficiency that was cancelled by the lending institution (because the cancellation of a debt is considered income).  In many cases, this could result in a tax bill of $50,000 or more.  Luckily, for those Americans in this sitation, Congress enacted the Mortgage Forgiveness Debt Relief Act.
Congress enacted this bill in 2007, as a result of the declining economy.  The Mortgage Forgiveness Debt Relief Act allows you to exclude certain cancelled debt on your principal residence from income.  Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a short sale or foreclosure qualifies for relief.  The relief is only in effect through 2012, so if you have considered these options or are considering these options, you need to act fast to qualify.  If you need tax preparation help, you may call my office for a referral to a local, knowledgeable, friendly accountant.
For more online resources from our firm, please subscribe to our Youtube Channel at: www.youtube/tibbslawoffice.com, www.youtube.com/tibbslawofficeKentucky or go to our website at: www.tibbslawoffice.com.
Tibbs Law Office, LLC
8845 Governors Hill Dr., Ste 450
Cincinnati, OH 45249
(513) 793-7544
www.tibbslawoffice.com

False Advertising Claims against Anheuser-Busch

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False Advertising Claims against Anheuser-Busch. In 1991, Richard Overton sued Anheuser-Busch for false and misleading advertising under Michigan State law. He also included one claim that appears to allege that he personally suffered injuries as a result of the false advertisements. A number of publications and websites parodied this lawsuit by focusing only on the Read more

Criminals need not bear the responsibility for their crimes alone when the real money is in Hollywood.

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Criminals need not bear the responsibility for their crimes alone when the real money is in Hollywood. 1996, the family of Patsy Ann Byers sued Oliver Stone, Warner Brother, and others involved in the making and distribution of the movie Natural Born Killers for an unspecified amount. They claimed that the movie caused Sarah Edmondson and Benjamin Darrus to go on a crime spree Read more

If you can’t sue the system, sue yourself.

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If you can’t sue the system, sue yourself. 1995, Robert Lee Brock sued himself for $5 million. He claimed that he had violated his own civil rights and religious beliefs by allowing himself to get drunk and commit crimes which landed him in the Indian Creek Correctional Center in Virginia, serving a 23 year sentence for grand larceny and breaking and entering. What could he possibly have to gain by suing himself? Read more

Inventory List

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Inventory List
My mom is a barber.  She hears all of the town gossip of Franklin, Ohio.  There isn’t usually much going on in Franklin, but recently, a client told her the following story:  This couple came home from work one day and their grill was gone off their deck.  They assumed that their grill had been stolen, so they accepted it and moved on with their life.  Approximately one week later, they went out to their deck to find their grill back in its original position on their deck.  They found a card on top of their deck that said something to the effect of: “Please accept our sincerest apologies, our neighbor told us that we could borrow their grill, and we thought this was theirs.  We found out later that this was not their grill, and we had borrowed the wrong grill.  Please accept these Bengals tickets as our gift to you.  We appologize for the mix-up”  This couple was excited about receiving the Bengals tickets and went to the game the following Sunday.  When they returned home from the game, their entire house was empty.  The contents of their home had all been stolen. 
Recently, I came into contact with the owner of Contents Management, a company that will come out to your home and create a complete inventory of all assets in your home.  Until recently, I was not aware that this type of business existed but apparently there are many companies that provide this service.  A home inventory would be really important for a person facing a scenario such as the one above, but it would also be helpful for anyone that needs to make a claim on their homeowners insurance policy as a result of fire, flood, or other natural disaster.  Other people that could benefit from this service are: estate planning clients, landlords, divorce clients, and small business owners.
If you are interested in having an inventory of your home or business completed, you can contact your homeowner’s insurance agent.  It may be possible for your insurance agent to add the cost of the inventory to your monthly premiums.  If your insurance agent is unwilling to provide this service, you should look up local listings for home inventory services.  If you are in the Tri-state area, you may schedule an appointment with Contents Management.  They are a professional, affordable, and confidential inventory business serving clients in the (Cincinnati) Tri-state area.
If you found this information helpful and would like more information from Tibbs Law Office, LLC, please check out: http://www.tibbslawoffice.com/.  You may also subscribe to the firm Youtube channel at: http://www.youtube.com/tibbslawoffice and www.youtube.com/tibbslawofficeKentucky. 

Legal Overhead Costs

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A few weeks ago, I met with another attorney that asked me to join her firm.  This firm was an expense sharing firm which meant that I had two options.  I could join as a partner, which would mean that I would have one flat monthly expense rate for everything the firm provided to me, or I could join as an associate, which meant that I would have to give the firm 40% of my earnings to cover the firm’s expenses associated with having me as a member of the firm. 
It was during that meeting that I discovered that a firm’s expenses are the biggest factor in deciding what rate to charge clients.  During our conversation, I learned that her firm charges $1800 for a complete estate plan.  I am not sure whether this was for a single person or a couple but regardless, $1800 is a lot of money, considering a couple’s estate plan is not much more work than an individual’s.  This attorney bragged that her paralegal could finish the estate documents for this complete estate plan in approximately 12 minutes and another attorney in the firm could complete them in 6 minutes.  During this meeting, I found out that I use the same estate planning software that this other firm uses; however, I charge much less for this particular service.
Needless to say, I decided not to join that firm.  That firm was attracted to me because I had clients; however, my clients would not be able to pay their rates, and with the added overhead expenses, I would not be profittable if I continued to charge my client’s the rates I charge them now.  I share this experience, not to brag about how much less I charge my clients for this service, but rather to ask clients to look around when they meet with their attorney. 
 If you meet with your attorney and you notice expensive artwork, extavagant furnishings, and many different sets of legal books, or if you find your attorney through expensive full page, color advertising, please understand that you are paying for those things.  It is good to have a nice office, I consider my office to be nice, but you won’t find those items in my office.  I do not want my clients to pay for those items, especially, if they are not benefiting from those items.   If you are a client that wants to see those types of material things when meeting with your attorney, then, by all means, choose an attorney that charges more money for his/her services.
For resources that will help you save money with your legal bill, subscribe to my youtube channel at: http://www.youtube.com/TibbsLawOffice, www.youtube.com/tibbslawofficeKentucky or go to http://www.TibbsLawOffice.com.

Spousal Support in Ohio

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Spousal Support in Ohio:
One of the least guiding “guidelines” in Ohio is the Ohio Spousal Support Guidelines.  This statute gives Ohioans “factors” that Ohio Courts consider when determining whether spousal support will be granted and if so, how much.  The factors the courts consider are the following:

Quoting Ohio Revised Code § 3105.18. – Award of spousal support; modification.

(A) As used in this section, “spousal support” means any payment or payments to be made to a spouse or former spouse, or to a third party for the benefit of a spouse or a former spouse, that is both for sustenance and for support of the spouse or former spouse. “Spousal support” does not include any payment made to a spouse or former spouse, or to a third party for the benefit of a spouse or former spouse, that is made as part of a division or distribution of property or a distributive award under section 3105.171 [3105.17.1] of the Revised Code.

(B) In divorce and legal separation proceedings, upon the request of either party and after the court determines the division or disbursement of property under section 3105.171 [3105.17.1] of the Revised Code, the court of common pleas may award reasonable spousal support to either party. During the pendency of any divorce, or legal separation proceeding, the court may award reasonable temporary spousal support to either party.

An award of spousal support may be allowed in real or personal property, or both, or by decreeing a sum of money, payable either in gross or by installments, from future income or otherwise, as the court considers equitable.

Any award of spousal support made under this section shall terminate upon the death of either party, unless the order containing the award expressly provides otherwise.

(C) (1) In determining whether spousal support is appropriate and reasonable, and in determining the nature, amount, and terms of payment, and duration of spousal support, which is payable either in gross or in installments, the court shall consider all of the following factors:

(a) The income of the parties, from all sources, including, but not limited to, income derived from property divided, disbursed, or distributed under section 3105.171 [3105.17.1] of the Revised Code;

(b) The relative earning abilities of the parties;

(c) The ages and the physical, mental, and emotional conditions of the parties;

(d) The retirement benefits of the parties;

(e) The duration of the marriage;

(f) The extent to which it would be inappropriate for a party, because that party will be custodian of a minor child of the marriage, to seek employment outside the home;

(g) The standard of living of the parties established during the marriage;

(h) The relative extent of education of the parties;

(i) The relative assets and liabilities of the parties, including but not limited to any court-ordered payments by the parties;

(j) The contribution of each party to the education, training, or earning ability of the other party, including, but not limited to, any party’s contribution to the acquisition of a professional degree of the other party;

(k) The time and expense necessary for the spouse who is seeking spousal support to acquire education, training, or job experience so that the spouse will be qualified to obtain appropriate employment, provided the education, training, or job experience, and employment is, in fact, sought;

(l) The tax consequences, for each party, of an award of spousal support;

(m) The lost income production capacity of either party that resulted from that party’s marital responsibilities;

(n) Any other factor that the court expressly finds to be relevant and equitable.

(2) In determining whether spousal support is reasonable and in determining the amount and terms of payment of spousal support, each party shall be considered to have contributed equally to the production of marital income.

(D) In an action brought solely for an order for legal separation under section 3105.17 of the Revised Code, any continuing order for periodic payments of money entered pursuant to this section is subject to further order of the court upon changed circumstances of either party.

(E) If a continuing order for periodic payments of money as alimony is entered in a divorce or dissolution of marriage action that is determined on or after May 2, 1986, and before January 1, 1991, or if a continuing order for periodic payments of money as spousal support is entered in a divorce or dissolution of marriage action that is determined on or after January 1, 1991, the court that enters the decree of divorce or dissolution of marriage does not have jurisdiction to modify the amount or terms of the alimony or spousal support unless the court determines that the circumstances of either party have changed and unless one of the following applies:

(1) In the case of a divorce, the decree or a separation agreement of the parties to the divorce that is incorporated into the decree contains a provision specifically authorizing the court to modify the amount or terms of alimony or spousal support.

(2) In the case of a dissolution of marriage, the separation agreement that is approved by the court and incorporated into the decree contains a provision specifically authorizing the court to modify the amount or terms of alimony or spousal support.

(F) For purposes of divisions (D) and (E) of this section, a change in the circumstances of a party includes, but is not limited to, any increase or involuntary decrease in the party’s wages, salary, bonuses, living expenses, or medical expenses.

(G) If any person required to pay alimony under an order made or modified by a court on or after December 1, 1986, and before January 1, 1991, or any person required to pay spousal support under an order made or modified by a court on or after January 1, 1991, is found in contempt of court for failure to make alimony or spousal support payments under the order, the court that makes the finding, in addition to any other penalty or remedy imposed, shall assess all court costs arising out of the contempt proceeding against the person and shall require the person to pay any reasonable attorney’s fees of any adverse party, as determined by the court, that arose in relation to the act of contempt.

(H) In divorce or legal separation proceedings, the court may award reasonable attorney’s fees to either party at any stage of the proceedings, including, but not limited to, any appeal, any proceeding arising from a motion to modify a prior order or decree, and any proceeding to enforce a prior order or decree, if it determines that the other party has the ability to pay the attorney’s fees that the court awards. When the court determines whether to award reasonable attorney’s fees to any party pursuant to this division, it shall determine whether either party will be prevented from fully litigating that party’s rights and adequately protecting that party’s interests if it does not award reasonable attorney’s fees.

Determining whether spousal support will be granted is largely within the court’s discretion but is generally predictable to an Ohio licensed attorney.  Determining how much spousal support a court might grant in any given situation is much more difficult for the parties to predict.  Ohio has created a helpful child support computation worksheet to predict how much a party will pay or receive in child support; however, no such computation worksheet exists for spousal support (at least not one that is generally accepted or used by the courts).
Arguments can and have been made that the Ohio Child Support Computation worksheet produces results that are unfair to one or both of the parties, but at least it is a starting point for determining child support.  I for one would like to see Ohio create a spousal support computation worksheet to be used in all divorce/dissolution cases.  However, until this happens, the parties are left to their own devices.  I have prepared the following guidelines that I hope will help parties determine if spousal support is warranted, and if so, how much.
In reviewing these tips, please remember that spousal support was created to help compensate one party for their contributions to the household and to make sure, where there is enough income, the state would not be left to pick up the tab for the other party and the children.  Obviously things have changed, but try to remember the spirit in which these laws were created.
* As a general rule, spousal support may be considered an option if one of the parties has disposable income, which generally means that he/she makes over $55,000 per year or more.
*In addtion, spousal support may be granted if the other party makes approximately half ($27,000 per year) or less than the other party.
* Generally, if the court finds that one party should be granted spousal support, the court will likely grant it in the amount of $500.00 per month or more depending on the parties’ income.  Courts generally don’t grant spousal support in amounts less than $500.00 per month.  (This may be because the court may think that anything less than $500.00 per month is not really helping or is not a fair assessment of one spouse’s contributions…)
* Remember that contrary to child support, spousal support is considered income for the party receiving it and is tax deductible for the party paying it.  This means that if you are on the receiving end, if you have the option, you should negotiatiate to get more money in child support and less in spousal support.  If you are on the paying end and you have the option, you should negotiate to pay more in spousal support and less in child support.
Hopefully, these tips are helpful as you assess your own situtation and prepare for a divorce or dissolution.