Tag Archives: metro boston

Thoughts on Charitable Giving

20 Mar

MetroBoston Publication Date March 20, 2013
By Attorney George Warshaw

I was speaking with Mark at the U.C. about this column. He asked me to write about how charitable giving may be used with an estate plan.

Interesting question.

Money you leave by will, trust or otherwise to an IRS tax qualified charity is not included in your estate at death. If your estate is worth $1,250,000 and you leave $250,000 to a qualified charity, your estate is then valued at $1,000,000.

More interesting is what you can do with your charitable estate.

If you want to leave all or a chunk to charity, and possibly avoid even the Massachusetts estate tax problem, you could establish a private tax qualified foundation in which your friends and family participate in making donations to causes that are important to you.

Once or twice a year friends and family get together, remember you in their thoughts and hearts, and do something good with your money and memory. They could use it where it’s needed most – and certainly more efficiently than our spendthrift government.

It’s also a good way of keeping your family together and doing something positive “as a family” with a great result.

There are also Charitable Funds, like Fidelity runs, where they decide how your money is used, or you can direct it yourself in your will or trust.

Say you want to help children or pets. I’ll use the MSPCA and Tenacity, my personal favorites, as examples.

MSPCA, www.mspca.org. You can leave a specific amount of money in your will or trust (a “bequest” in legal talk) or you can target a specific program.

For example, “I give and devise to MSPCA $________ [or _____% of my net estate] for its “Pet Care Assistance Program for the medical care of sick or injured animals.”

Tenacity, www.tenacity.org. Tenacity changes the lives of inner Boston city kids. They learn to play tennis but only after the student and family make a multi-year learning commitment. The kids receive structure, discipline and educational assistance from elementary school through high school. Tennis is the motivator to enroll.

Aside from a bequest, you can give all or a portion of the residue of your estate (i.e. after payment of all debts and bequests.)

For example, “I leave the rest and residue of my estate (or a percentage) to Tenacity to sponsor as many children as possible in its “Middle School Academy.”

Plan it in advance with the charity or just surprise them in your will!

And don’t forget Tenacity and the MSPCA in your planning – helping children and pets is a good thing to do. © 2013 George Warshaw.

George Warshaw is a well-known attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions. Contact him at metro@warshawlaw.com.

The Home Inspection Trap

7 Mar

MetroBoston Publication Date February 27, 2013
By Attorney George Warshaw

Professional home inspectors often unearth defects easily overlooked by the untrained eye. Don’t pass on a home inspection before buying a house or condo just because it looks good or is newly built or renovated.

The inspection is usually conducted after the offer is accepted but before the purchase and sale agreement is signed. Nearly all preprinted offers contain “an inspection contingency” giving the buyer the right to cancel the purchase based on the results of the inspection.

Be careful how it’s worded – there may be a trap.

Many of these preprinted forms only give the buyer the right to cancel if there are “serious structural or mechanical defects,” whatever that means, or put a limit on the amount of repairs required that permit you to cancel; i.e., “negotiate.”

That’s not good enough in my view.

Don’t hesitate to cross it out and simply make your offer subject to an inspection that is satisfactory to you. It’s your offer – and your right to control how it’s worded. 

Be a smart buyer. Get an inspection before buying, and make it satisfactory to you – and if you’re selling, consider hiring an inspector to flush out your problems before you put your home on the market. © 2013 George Warshaw.

George Warshaw is a well-known attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions. Contact him at metro@warshawlaw.com.

 

 

When a Phone Call is Not Enough

7 Mar

MetroBoston Publication Date February 20, 2013
By Attorney George Warshaw

Ms. M, a nice young girl, found an affordable South End Condo. It was her first real estate purchase. Mom even liked it.

Her offer was accepted and she paid a $1,000 deposit. .

The offer contained the usual mortgage clause. She had to submit a written application for a loan by a certain date.  If after making a diligent effort she didn’t get a commitment for financing by a later date she could cancel and get her money back.

Ms. M called a mortgage broker who gave her bad news. The condo didn’t qualify under Fannie Mae guidelines. A minimum percentage of condos had to sold or under agreement to owner-occupants. Since hers was the very first sale in a new development, the building didn’t qualify.

Ms. M asked for her deposit back. The seller refused claiming “a phone call was not enough.”

The offer required she submit a written application for a mortgage and make a diligent effort to obtain a loan. She never submitted a written application and never called any banks that might possibly give her a loan.

Is Ms. M entitled to her money back?

No, the court ruled. A phone call is not a written application and a diligent effort requires more than a phone call. © 2013 George Warshaw.

George Warshaw is a well-known attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions. Contact him at metro@warshawlaw.com.

Marriage and Real Estate

5 Feb

MetroBoston Publication Date February 5, 2013
By Attorney George Warshaw

State law provides married couples a special form of home ownership protection. It’s referred to as a “tenancy by the entirety.” It’s like a joint tenancy but for married couples.

It’s created by simply stating in the deed, “I grant to Dick and Jane, husband and wife (or being a married couple), as tenants by the entirety, the following property . . . .”

What’s special about it?

Real estate acquired under the heading “tenants by the entirety” is similar to a joint tenancy in one sense: if one person dies the other inherits it automatically. A probate court is not required to pass title to the survivor.

Marital property held this way has two special features: first, a creditor of only one spouse cannot seize and sell the marital home so long as it is the principal residence of the other spouse; and second, neither spouse can eliminate the right of the other to inherit the property by merely giving a deed to a child or an outsider.  

There are several exceptions that may make a visit to a lawyer worthwhile. If you acquired your martial home before February 11, 1980 or were originally deeded your home as joint tenants or tenants in common, consult a real estate lawyer to upgrade your ownership. © 2013 George Warshaw.

George Warshaw is a well-known attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions. Contact him at metro@warshawlaw.com.

 

 

Where is Grandma’s Will?

11 Jan

Metro®Boston, Publication Date: January 4, 2012
By Attorney George Warshaw

Over family gatherings during the holidays, the topic often turns to one’s parent’s or grandparent’s will.

“It’s in the safe deposit  box, I think.”

“It’s in her sock drawer with her old letters from Dad.”

“It’s not where I saw it last. OMG! Maybe the lawyer has it?”

While a safe deposit box seems like a good idea to put the will, if your name isn’t on the box you will need authority from a court to open the box.

There’s another place you can store a will that is cheap and easy.

Try the Registry of Probate. The fee varies with the county but it’s not a lot.

In our office, we hold the original will for 12 months in case someone wants to make any changes or updates. We then file the will with the Probate Court.

Since most changes or corrections are made in the first year, it’s not likely to change for several years and the will can be easily retrieved for updating.

If the person later dies, the Probate Court checks its storage records when an estate is later filed.

So if you want to find it when you need it, consider using the Probate Court instead of a safe deposit box or Grandma’s sock drawer!

© 2011 George Warshaw.

George Warshaw is a real estate attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at metro@warshawlaw.com.

Legal Advice: Laws, and court decisions interpreting them, change frequently and this article is not updated as laws change. The content and information contained in this article is neither intended as legal advice nor shall establish an attorney-client relationship.

Before making any legal decision, consult an attorney to see how the foregoing may apply to your circumstances.