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Business owners, particularly in the food service industry may want to review their employee work eligibility status.
A recent article in the Wall Street Journal titled Immigration Crackdown Widens With Criminal Probe and Arrests at Restaurant Chains highlights recent government investigations and in one case criminal prosecution relating to hiring illegal immigrants.
As the article notes the government’s focus previously had been on just arresting and deporting illegal immigrants, but now the government is focusing on prosecuting the business owners.
A recent story in QSR Magazine titled Who’s Working in Your Kitchen? reported “Recent government crackdowns on Chipotle and Pei Wei that forced both concepts to at least temporarily close locations have reminded restaurant operators that the government is taking illegal immigration very seriously.”
Illinois business owners can use the E-Verify system. One advantage of using the system is that it creates a “rebuttable presumption” that the employer has complied with immigration laws. However, Illinois state government is not a fan of the E-Verify system. In fact,Illinois attempted to block private employers from using the E-Verify system, but lost a lawsuit brought by the Department of Homeland Security.
Even though the Illinois state government failed in its attempt to prevent private business owners from using E-Verify, Illinois has placed significant restrictions on its use. Therefore, an Illinois employer should review those restrictions carefully before using the E-Verify system. Illinois employers are required to complete I-9 forms for each of their employees.
It is these I-9 records that the government is auditing and which are being used as the basis for prosecutions.
To avoid being the federal government’s next target business owners may want to review their personnel files to make sure that they are in compliance.
Disclaimer This is a passive blog and the materials contained herein are provided for informational purposes only. Nothing contained in this blog should be interpreted as a solicitation of business and none of the information contained herein constitutes legal advice. The law is subject to change without notice, and the local laws of your residence may be different from the general information displayed on this blog. You should not rely on the information provided on this blog without first consulting an attorney. Contacting this website does not establish and attorney/client relationship between you and its publisher Christopher W. Matern. An attorney/client relationship can only be established with Christopher Matern by engaging in direct person-to-person contact with Christopher Matern. Christopher Matern does not intend to practice law in any jurisdiction in which he is not licensed.
Friday, April 22, 2011
Sunday, April 17, 2011
Will Your Trust Work
Will your Trust work the way you intend it. Many people have created Revocable Trusts, which are also known as Living Trusts. They have done so for a number of reasons (avoiding probate, avoiding court guardianship, tax planning). But if your Trust is not funded it may not work the way you want.
A recent post on an trust and estate planning e-mail list illustrates what happens if a trust is not properly funded.
This was the answer posted to those questions.
The reply to that answer illustrates the terrible consequences that can occur from not properly funding the Trust.
So how do you fund a Trust to avoid this terrible result. A Trust is funded by transferring assets to the Trust. The procedure for legally transferring assets to a Trust depends upon the type of asset.
For a bank account or a stock brokerage account, the name of person who owns the account needs to be changed to the name of the current trustee as trustee of the trust identified by its proper name. For example, if John Smith has a Revocable/Living Trust and he is the current trustee then account needs to be changed from John Smith to John Smith as Trustee of the John Smith Trust (what ever the Trust designates as the proper name of the Trust).
For real estate, a Deed needs to be prepared transferring the real estate to the Trust. For example, John Smith would need to Deed his property from John Smith to John Smith as trustee of the John Smith Trust. This Deed would need to be recorded in the County where the real estate was located with the County Recorder of Deeds. Also, you may need to obtain an endorsement to your title insurance policy to cover the trust. Whether this needs to be done will depend upon the specific language in your title insurance policy.
You can transfer personal property such as airplanes, automobiles and boats by transferring the title with the Secretary of State to the Trustee (John Smith as Trustee of the John Smith Trust). Unless this property is of significant value most people deal with this property through their Pour Over Will.
A Pour Over Will is a Will that includes a provision stating that any property that I own, which I have not specifically provided for at my death is to be transferred to to my Trust.
A Pour Over Will will not be effective if the property is held in joint tenancy or if a payable on death beneficiary has been named. Property that it is held in joint tenancy automatically passes to the surviving joint tenant. It is not part of a person’s estate. Therefore, the Pour Over Will would not be effective to transfer the joint tenancy property. Likewise an account that has a payable on death beneficiary designation like a bank account, life insurance policy, stock brokerage account, pension plan will also pass directly to the beneficiary. It too will not be included in your probate estate.
So, it is a good idea to check the beneficiary designations on your accounts to make sure that they list the people that you intend to receive the money. The same is true for any accounts that you hold in joint tenancy.
If you have gone through the effort and expense of creating a Recovable/Living Trust you should make sure that it is properly funded.
Disclaimer This is a passive blog and the materials contained herein are provided for informational purposes only. Nothing contained in this blog should be interpreted as a solicitation of business and none of the information contained herein constitutes legal advice. The law is subject to change without notice, and the local laws of your residence may be different from the general information displayed on this blog. You should not rely on the information provided on this blog without first consulting an attorney. Contacting this website does not establish and attorney/client relationship between you and its publisher Christopher W. Matern. An attorney/client relationship can only be established with Christopher Matern by engaging in direct person-to-person contact with Christopher Matern. Christopher Matern does not intend to practice law in any jurisdiction in which he is not licensed.
A recent post on an trust and estate planning e-mail list illustrates what happens if a trust is not properly funded.
Dear Listmates:
Can a revocable trust be properly funded by simply attaching a schedule to the trust document that states that the settlor “hereby sells, transfers, and conveys” to himself the property listed therein? The listed property includes real estate and bank accounts. The real estate is identified by address and tax ID. The bank accounts are identified simply by bank name and address. The schedule containing the listed property is signed by the settler and one witness but is not notarized. The main trust document, to which the schedule is attached, is notarized.
This was the answer posted to those questions.
The short answer is no.
The reply to that answer illustrates the terrible consequences that can occur from not properly funding the Trust.
The settlor [the person who set up the Trust] passed away. If this trust is not upheld, then the settlor's estate will pass to the very persons he intended to disinherit.
So how do you fund a Trust to avoid this terrible result. A Trust is funded by transferring assets to the Trust. The procedure for legally transferring assets to a Trust depends upon the type of asset.
For a bank account or a stock brokerage account, the name of person who owns the account needs to be changed to the name of the current trustee as trustee of the trust identified by its proper name. For example, if John Smith has a Revocable/Living Trust and he is the current trustee then account needs to be changed from John Smith to John Smith as Trustee of the John Smith Trust (what ever the Trust designates as the proper name of the Trust).
For real estate, a Deed needs to be prepared transferring the real estate to the Trust. For example, John Smith would need to Deed his property from John Smith to John Smith as trustee of the John Smith Trust. This Deed would need to be recorded in the County where the real estate was located with the County Recorder of Deeds. Also, you may need to obtain an endorsement to your title insurance policy to cover the trust. Whether this needs to be done will depend upon the specific language in your title insurance policy.
You can transfer personal property such as airplanes, automobiles and boats by transferring the title with the Secretary of State to the Trustee (John Smith as Trustee of the John Smith Trust). Unless this property is of significant value most people deal with this property through their Pour Over Will.
A Pour Over Will is a Will that includes a provision stating that any property that I own, which I have not specifically provided for at my death is to be transferred to to my Trust.
A Pour Over Will will not be effective if the property is held in joint tenancy or if a payable on death beneficiary has been named. Property that it is held in joint tenancy automatically passes to the surviving joint tenant. It is not part of a person’s estate. Therefore, the Pour Over Will would not be effective to transfer the joint tenancy property. Likewise an account that has a payable on death beneficiary designation like a bank account, life insurance policy, stock brokerage account, pension plan will also pass directly to the beneficiary. It too will not be included in your probate estate.
So, it is a good idea to check the beneficiary designations on your accounts to make sure that they list the people that you intend to receive the money. The same is true for any accounts that you hold in joint tenancy.
If you have gone through the effort and expense of creating a Recovable/Living Trust you should make sure that it is properly funded.
Disclaimer This is a passive blog and the materials contained herein are provided for informational purposes only. Nothing contained in this blog should be interpreted as a solicitation of business and none of the information contained herein constitutes legal advice. The law is subject to change without notice, and the local laws of your residence may be different from the general information displayed on this blog. You should not rely on the information provided on this blog without first consulting an attorney. Contacting this website does not establish and attorney/client relationship between you and its publisher Christopher W. Matern. An attorney/client relationship can only be established with Christopher Matern by engaging in direct person-to-person contact with Christopher Matern. Christopher Matern does not intend to practice law in any jurisdiction in which he is not licensed.
Wednesday, April 13, 2011
Buy/Sell Agreements - Planning Ahead
For small businesses with two or more owners, a buy/sell agreement can help prevent challenging situations from becoming unbearable.
When one of the business owners dies, becomes disabled, divorces or just says “I have had enough - I am out of here” that can be challenge for the remaining owner or owners just to keep the business operating. That challenge can be unbearable if there is no arrangement in place to deal with those situations.
One of my fellow lawyer bloggers wrote an excellent article on buy/sell agreements. The article raises a number of questions that business owners should think about. Just thinking about these questions should provide a mental picture. That picture may be as sobering as Ebenzer Scrooge’s glimpse of “Christmas yet to come.” Fortunately, like Scrooge there is an opportunity to do something about it.
When one of the business owners dies, becomes disabled, divorces or just says “I have had enough - I am out of here” that can be challenge for the remaining owner or owners just to keep the business operating. That challenge can be unbearable if there is no arrangement in place to deal with those situations.
One of my fellow lawyer bloggers wrote an excellent article on buy/sell agreements. The article raises a number of questions that business owners should think about. Just thinking about these questions should provide a mental picture. That picture may be as sobering as Ebenzer Scrooge’s glimpse of “Christmas yet to come.” Fortunately, like Scrooge there is an opportunity to do something about it.
Disclaimer This is a passive blog and the materials contained herein are provided for informational purposes only. Nothing contained in this blog should be interpreted as a solicitation of business and none of the information contained herein constitutes legal advice. The law is subject to change without notice, and the local laws of your residence may be different from the general information displayed on this blog. You should not rely on the information provided on this blog without first consulting an attorney. Contacting this website does not establish and attorney/client relationship between you and its publisher Christopher W. Matern. An attorney/client relationship can only be established with Christopher Matern by engaging in direct person-to-person contact with Christopher Matern. Christopher Matern does not intend to practice law in any jurisdiction in which he is not licensed.
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