Your state statutes and case law should be consulted on this issue.

Some states may permit the execution of a will even though the person is under guardianship if the person is lucid at the time of will signing. Insane delusion may not be a ground for disallowance of the will if the delusion failed to materially affect the terms of the will.

Generally, the testator must have mental capacity to comprehend the nature, the extent, and the state of affairs of his property. The central idea is that the testator must have a general, meaningful understanding of the nature, state, and the scope of his property but does not need to have in his mind a detailed itemization of every asset; nor does he need to know the exact value of his property.
A perfect memory is not required as an element of a testamentary capacity. The testator must know and understand his relationship to persons who might reasonably be expected to become the objects of his bounty from which he must be able to make a rational selection.

He must understand the scope and general effect of the provisions of his will in relation to his relatives and beneficiaries.

Finally, the testator must be able to contemplate these elements together for a sufficient length of time, without prompting, to form a rational judgment in relation to them.]]> Fri, 21 Dec 2012 09:25:48 -0600 http://www.wi-bizlaw.com/blog/index.php?number=88#comment http://www.wi-bizlaw.com/blog/index.php?number=87

There are multiple ways to challenge a will by a will contest.

Generally, your state will have a statute that dictates the proper way to execute a will in order to be valid.

For example, the Legislature's public policy may require that the will be signed:
a) by the person, b) by the person with the assistance of another person with the testator's consent or c) in the testator's name by another person at the testator's direction and in the testator's conscious presence.

Secondly, the Legislature may insist that the will be signed by at least 2 witnesses who signed within a reasonable time after any of the following:

1) the signing of the will in the conscious presence of the witness 2) the testator's implicit or explicit acknowledgement of the testator's signature on the will, in the conscious presence of the witness. 3) the testator's implicit or explicit acknowledgement of the will, in the conscious presence of the witness.

Furthermore, the 2 witnesses may be permitted to observe the signing or acknowledgement at different times. Paying particular attention to these details can result in the Court's validation of the will.

Look at your state's statutes for requisites for execution of wills.]]> Fri, 30 Nov 2012 13:26:22 -0600 http://www.wi-bizlaw.com/blog/index.php?number=87#comment http://www.wi-bizlaw.com/blog/index.php?number=85
There is a new loan program called HARP 2.0. After years of many homeowners being unable to refinance out of their onerous home loan products, there are now some amazingly wonderful features available under HARP 2.0. However, there are some limitations that will mean that many homeowners will not qualify for this product. In addition, there are some dangers that must be considered by some homeowners before they refinance a purchase money loan.
HARP 2.0 LIMITATIONS In order to be eligible for HARP 2.0 Fannie Mae or Freddie Mac must be the owner or guarantee the note. As you can imagine that will disqualify a large number of homeowners. In addition, the loan must have been purchased by Fannie or Freddie on or before June 1, 2009.
You may have no idea who owns your loan.
To find out if Fannie or Freddie owns the loan is very simple. Go to http://www.fanniemae.com/loanlookup/ or https://ww3.freddiemac.com/corporate/ and enter in the address of the property in question.
There is one other limitation to this program that will have the effect of disqualifying many homeowners. Under HARP 2.0, the homeowner must have had no late payments in the last six months and no more than one late payment in the last 12 months.
If the borrower is one of the lucky few borrowers whose loans are owned by Fannie or Freddie and whom are current on their loan, then the next step is to see if they meet the other borrower qualifications.
There are a number of very interesting loan features in HARP 2.0. The most important feature is that there is no longer a loan to value requirement. That’s right. If a borrower refinances their home under HARP 2.0 and if they obtain a fixed rate loan than there is no maximum loan to value. None. There is a loan amount limitation. HARP 2.0 requires that the loan amount be conforming. A conforming loan is one that falls at or below the maximum loan amount allowed by the FHFA. This amount varies by area but in general the conforming amount is $417,000. However in certain high cost areas as determined by the FHFA the maximum loan amount is $625,000. To see the maximum loan amount for your area go to http://themortgagereports.com/loan-limits/ and enter in your property location.
This loan program can be obtained on not only owner occupied properties but also on second homes and investment properties. For the first time in a long time there is something on the table for investors. This program is also available for “high balance” loans although this feature is limited to owner occupied properties.
After years of having to jump through very tough lending guidelines, in this program the FICO scores required are a mere 620 for owner occupied, 660 for “high balance” loans and 680 for second homes and investment properties.
Even bankruptcy does not stop a borrower from qualifying. A borrower will meet the loan qualifications after only 24 months following a discharge in a Chapter 13. It does take 48 months from a Chapter 7 discharge.
If the borrower has lost a home through short sale or deed in lieu of foreclosure they will be eligible for this program after 2 years – but they will be limited to only 80% of loan to value. The allowable debt to income ratio is 50% under most programs.
A borrower does not need to use a mortgage broker to obtain a loan through this program. Borrowers can apply through their current servicer if their servicer is participating in HARP 2.0. If they are not participating, a borrower can call any of the five major banks to apply with any of them.

Credit is given to Pamela Simmons of the law firm of Simmons & Purdy located in Soquel, California who brought this to our attention by a recent article for an ABA pro bono committee. This blog is a distillation of the article.]]> Thu, 07 Jun 2012 08:50:52 -0500 http://www.wi-bizlaw.com/blog/index.php?number=85#comment http://www.wi-bizlaw.com/blog/index.php?number=84 A new Wisconsin law (2011 Act 143) permits a landlord to dispose a tenant's abandoned property in an easier way for apartments.

Provided there is no lease clause to the contrary, landlords can dispose of a tenant’s personal abandoned property immediately, at the landlord’s discretion, as long as the landlord provides written notice of this intent at the time of entering into a rental or renewal lease agreement.

There is an exception for prescription medicine or prescription medical equipment left behind by a tenant. Those items must still be held by the landlord for seven days from the date of discovery.

The second exception is for certain vehicles.

Prior to disposing of a tenant’s abandoned manufactured or mobile home or any titled vehicle, a landlord must give notice of the intent to dispose of the property, via personal service, certified or regular mail, to the tenant and any secured party of which the landlord has actual notice.

These new rules do not apply to tenant of a self-storage unit or space within a self-storage facility under s. 704.90 Wisconsin Statutes.

]]> Wed, 11 Apr 2012 13:53:20 -0500 http://www.wi-bizlaw.com/blog/index.php?number=84#comment http://www.wi-bizlaw.com/blog/index.php?number=83 You may be motivated by a number of considerations: legacy creation, family involvement, tax reduction and/or planning. What options are out there?
You can go several routes: private foundation, donor advised funds, and supporting organization are several options.
A private foundation is controlled by a trustee or a board of directors.
A donor advised fund is owned by a public charity.
A supporting organization is a public charity that is not required to pass the public support test and it too has a board of directors or trustees.
The complexity, cost and your control vary depending on which vehicle you choose. We recommend that you discuss these options with your advisers in great detail.]]> Thu, 17 Nov 2011 11:25:05 -0600 http://www.wi-bizlaw.com/blog/index.php?number=83#comment http://www.wi-bizlaw.com/blog/index.php?number=82

The answer may very well be review of your life insurance policies. Did you buy them and just put them in the drawer?

Well, they will just fester with problems if policy management is ignored. We mean thorough financial analysis of the policy performance relative to the original assumptions.

We mean a thorough look at market alternatives. Remember that insurance markets are shifting, new product offerings occur and your policies may perform inconsistently.

If you are unfamiliar with personalized mortality curves, stochastic modeling and expense deviation testing, you are out of your league in attempts to manage the policies.

Ask yourself this question: Can you manage your policies in an actuarial defensible manner? Like a financial planner manages your stock portfolio.

You want protection against policy disasters and surprises.

Policies sold in the 1980s assumed high crediting rates. They were not sustainable.

Such policies may be earning half of their initial projections. The reputation of an agent or company will not save the policies.

Yes, all types of life insurance can be useful. But these assets can not be bought, and put on the shelf and ignored. Better late than never, manage your insurance!

]]> Fri, 23 Sep 2011 15:03:01 -0500 http://www.wi-bizlaw.com/blog/index.php?number=82#comment http://www.wi-bizlaw.com/blog/index.php?number=81

Read the paper today. Another story of an industrial executive who faces six figure penalties from OSHA for violations of the workplace safety codes.

A little foresight pays big dividends for you. Gather a team of the following: safety lawyer, safety specialist and your worker's compensation representative and let them canvass your workplace to make recommendations for improvements. Worker downtime from unsafe conditions not only hurts the employees, it affects your company's overall performance capabilities and disrupts production schedules.

An ounce of prevention is worth...[you complete the rest of the story.]

]]> Fri, 08 Jul 2011 13:36:17 -0500 http://www.wi-bizlaw.com/blog/index.php?number=81#comment http://www.wi-bizlaw.com/blog/index.php?number=80

Not anymore. As the baby boomers age and their children spread out away from their parents, there is growing lack of communication about the health of the baby boomer’s parents, the health of baby boomers and the general ability of all generations to take care of them. The result is more guardianships, more disputes over property, and a lack of agreement on the control of people’s health decisions.

As we can decipher from the Brooke Astor litigation in New York, a grandchild may squeal on a son or daughter who may be neglecting their parent. Assorted criminal and civil claims spawn from such neglect.

Powers of attorney may be helpful, provided each generation knows what to expect.

It is unrealistic for the grandparent to preserve total freedom. It is unrealistic for the baby boomer to expect that life will continue unimpeded when a loved one needs attention and constant vigilance.

The litigation does not necessarily end at the death of a loved one. Expectations play a part. A surprise or two in the grandparent’s estate plan may throw a ringer in other generations’ inheritances. Is there an entitlement notion among members? How may families really discuss these issues? How many let them fester?

We are seeing the forms of communication differ among generations…grandparents use letters, baby boomers e-mail and the grandchildren twitter. This reflects more than superficial differences. There was a time when multiple generations lived under one roof. The distance between generations is expanding, opening the opportunity for discord.

]]> Tue, 31 May 2011 16:33:12 -0500 http://www.wi-bizlaw.com/blog/index.php?number=80#comment http://www.wi-bizlaw.com/blog/index.php?number=79
Most charitable organizations want to raise money for their prize ambitions. They sometimes think that it takes little effort to permit the donors to take a charitable deduction on tax returns.

Some even guess without consultation that all they have to do is create a non-profit corporation with their local state authorities.

Others might fail to create by-laws and articles of incorporation.

Setting up a charitable organization from the outset properly saves time and money and public embarrassment in the long run.

The IRS approves or disapproves applications for Section 501 (c)(3) status. There is a lengthy application process. The Service expects thorough documentation of the articles, by-laws, board policies, and financial statements.

A team of professionals, including an accountant and attorney, and a board that consists of community members that are not related to the creator of the organization is suggested. Boardsource: http://www.boardsource.org is a good source of material on the subject of board policies. The Non-profit Institute of the UW Parkside campus, http://www.kenoshaunitedway.org/PDF/NonProfit_Institute.pdf, is a good resource as well.

It is common for the creator of the organization to spend months, attempting to reach the Holy Grail...a good road map before the start can often be the difference between success and failure.]]> Tue, 26 Apr 2011 15:06:22 -0500 http://www.wi-bizlaw.com/blog/index.php?number=79#comment http://www.wi-bizlaw.com/blog/index.php?number=78 Mon, 28 Feb 2011 19:59:59 -0600 http://www.wi-bizlaw.com/blog/index.php?number=78#comment http://www.wi-bizlaw.com/blog/index.php?number=77

Its corporate rate on net income for 2011-2014 is 9.5%. Wisconsin is 7.9 % (plus recycling surcharge of 3% of gross TAX liability, max $9,800). Illinois’ net loss carryover is 12 years, whereas Wisconsin’s is 15 years.

Illinois Sales and use taxes are between 6.25% -9.75% whereas Wisconsin’s is 5.0-5.6%.]]> Mon, 07 Feb 2011 14:33:58 -0600 http://www.wi-bizlaw.com/blog/index.php?number=77#comment http://www.wi-bizlaw.com/blog/index.php?number=76
The Internet Crime Complaint Center (IC3) is a partnership between the Federal Bureau of Investigation (FBI), the National White Collar Crime Center (NW3C), and the Bureau of Justice Assistance (BJA).

IC3's mission is to serve as a vehicle to receive, develop, and refer criminal complaints regarding the rapidly expanding arena of cyber crime. The IC3 gives the victims of cyber crime a convenient and easy-to-use reporting mechanism that alerts authorities of suspected criminal or civil violations. For law enforcement and regulatory agencies at the federal, state, local and international level, IC3 provides a central referral mechanism for complaints involving Internet related crimes.

Craigslist has these suggestions:

“You can sidestep would-be scammers by following these common-sense rules: • DEAL LOCALLY WITH FOLKS YOU CAN MEET IN PERSON - follow this one simple rule and you will avoid 99% of the scam attempts on craigslist. • NEVER WIRE FUNDS VIA WESTERN UNION, MONEYGRAM or any other wire service - anyone who asks you to do so is a scammer. • FAKE CASHIER CHECKS & MONEY ORDERS ARE COMMON and BANKS WILL CASH THEM AND THEN HOLD YOU RESPONSIBLE when the fake is discovered weeks later. • CRAIGSLIST IS NOT INVOLVED IN ANY TRANSACTION, and does not handle payments, guarantee transactions, provide escrow services, or offer "buyer protection" or "seller certification" • NEVER GIVE OUT FINANCIAL INFORMATION (bank account number, social security number, eBay/PayPal info, etc.) • AVOID DEALS INVOLVING SHIPPING OR ESCROW SERVICES and know that ONLY A SCAMMER WILL "GUARANTEE" YOUR TRANSACTION. “

Recognizing scams

Great deal of scams involve one or more of the following:
• contact from someone far away, often in another country
• Western Union, Money Gram, cashier's check, money order, shipping, escrow service, or a "guarantee"
• inability or refusal to meet you before consummating transaction

Phishing Scams - How to Report Them

What should you do when you get a "phishing" email or end up on a scam website?

Report the scam or track down the scammers yourself and work to help shut down their scam-collecting ways, at least temporarily.

Act Quickly!

Your information may not be used if you move with speed.

Change Your Password

Check your history of transactions to determine if there are any fraudulent ones.

Contact the Company
Call or email the fraud department involved and inform them that your account might be compromised.

Call Your Bank and Credit Card Companies
You should determine if any fraudulent transactions have occurred and to arrange for new accounts.

What else should be done?

If you entered your Social Security Number, Date of Birth, Address, etc into any form, you are a potential victim of identity theft.

Contact the Credit Bureau Fraud Department of : Equifax, Experian and TransUnion.

File a Police Report.

Talk to state agencies.

Document, document, document.

Holiday E-Greeting Cards can contain scams:

Tips to Avoid E-card Scams

E-greeting cards have become a popular way to reach out to friends and family at holiday time and on special occasions. Regrettably, cybercriminals also take advantage of the growing popularity of e-cards by duping consumers into downloading malware. You can safeguard yourself, your friends, and your family against e-card scams by following the tips below.
1. Don't open attachments: Most legitimate e-cards are links to the company's website that allow you to go directly to your card. Avoid attachments and don't download anything from a source you don't recognize.
2. When in doubt, delete: If something looks a little strange or “phishy,” such as the name of the sender or vague subject lines, just delete the card. It's better to do that than run the risk of getting a virus.
3. Know where you’re going online: Use security software that detects sites that push online scams, adware installations, attachments filled with viruses and other download that could harm your system.
4. Know what to look for: While most e-card scams actually look legitimate, there are usually some telltale signs to look for. Watch out for misspelled words or names, not knowing who sent you the card, a disguised name (such as Your Friend, A Secret Admirer, etc.), or an odd URL.
5. Always read the fine print before accepting any terms: Make sure you actually read the fine print before agreeing to anything. Some e-card scams list in their terms that they can send e-mail to everyone in your address book. Make sure you know what you are agreeing to.

Links:

Wisconsin Department of Agriculture, Trade and Consumer Protection, Office of Privacy Protection,

link: http://privacy.wi.gov/-information on identity theft and fraud.

click herehttp://www.craigslist.org/about/scams

Internet Crime Complaint Center:

Internet Crime Complaint Centerhttp://www.ic3.gov/default.aspx

How to file a complaint with Federal Trade Commission: http://ftc.gov/multimedia/video/scam-watch/file-a-complaint.shtm or How to file a complaintwww.ftc.gov/complaint.

Fight Identity Theft:

Fight Identity Thefthttp://fightidentitytheft.com/identity_theft_victim.htmlv

Slam the Online Scam: Slam the Online Scamhttp://www.slamtheonlinescam.com/

Anti-Phishing Working Group Phishing Archive http://www.antiphishing.org/phishing_archive/phishing_archive.html

FTC Consumer Alert: 12 Scams Most Likely To Arrive Via Bulk Email FTC

Consumer Alerthttp://www.ftc.gov/opa/1998/07/dozen.shtm

FTC Consumer Alert: How Not to Get Hooked by a ‘Phishing’ Scam

How Not to Get Hooked by a Phishing Scamhttp://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt127.shtm

Recognize and avoid fraudulent email to Microsoft customers http://www.microsoft.com/protect/yourself/phishing/msemail.mspx

United States Secret Service Advance Fee Fraud Advisory http://www.secretservice.gov/faq.shtml#faq13

US-CERT Cyber Security Tip ST04-007: Reducing Spam http://www.us-cert.gov/cas/tips/ST04-007.html

US-CERT Cyber Security Tip ST04-010: Using Caution with Email Attachments http://www.us-cert.gov/cas/tips/ST04-010.html

US-CERT Technical Cyber Security Alert TA05-189A: Targeted Trojan Targeted Trojan Email Attacks http://www.us-cert.gov/cas/techalerts/TA05-189A.html

6 Tips to avoid senior scams:

6 Tips to avoid senior scamshttp://seniorliving.about.com/od/manageyourmoney/ss/6tipsavoidscams.htm

How to avoid Medicare scams:

How to avoid Medicare scamshttp://seniorliving.about.com/od/medicarebenefits/a/medicarescam.htm

5 tips for avoiding foreclosure fraud:

5 tips for avoiding foreclosure fraudhttp://www.federalreserve.gov/pubs/foreclosurescamtips/default.htm

]]> Sat, 18 Dec 2010 12:13:29 -0600 http://www.wi-bizlaw.com/blog/index.php?number=76#comment http://www.wi-bizlaw.com/blog/index.php?number=75

Contractors often place signs on their advertisements indicating they are bonded or insured.

Under Wisconsin’s safe place law and perhaps other states, there are many risks that an owner of a place of business bears in situations where the business owner contracts with a contractor to renovate or construct an addition to his premises.

We will briefly explore this area of insurance of contractors.

An insurance company can issue a performance bond, a surety bond, to a contractor that guarantees satisfactory completion of a project. Generally, because of the cost of such bond, this is not done in small private projects. It is more prevalent in public projects.

These bonds pay when a contractor goes bankrupt so that the owner receives money for his loss up to the limit of a performance bond.
It is not prevalent that a small business owner will be able to negotiate that the contractor will buy a performance bond for his project. Thus, it is important for the owner to do due diligence on the financial soundness of the contractor because of the risk that the contractor may become insolvent during the project and fail to complete it.

Then there is the question of general liability insurance of the contractor. Again, the owner needs to delve deeply into the subject.

First of all, there are typically liability limits on the coverage.

Are these limits adequate for the scope of the project? For example, is a limit of $100,000 per occurrence and $200,000 aggregate sufficient for your project?

What coverage is included in the policy?

Coverage may include
• Medical Payment per Person • Fire Legal Liability • Property in Your Care, Custody or Control • Personal and Advertising Injury • Products and Completed Operations • Personal Property: On Premises (Excluding theft) • Personal Property off Premises (Excluding theft).

Each of these coverages may have a different limit. The policy may have Optional Coverage’s for Special Risks such as:

• Building • Increased Personal Property: On and off premises • Theft • Money and Securities • Valuable Papers and Records • Accounts Receivable • Employee Dishonesty

Does the contractor have worker’s compensation insurance? Most states require such coverage. However, the contractor may be exempted due to the number of employees he hires.

As an owner, in some states, you may be able to buy insurance during the construction or renovation of a property yourself. This may reduce your costs of multiple policies of contractor and subcontractors.

This is not typical. Instead, usually, the general contractor and sub-contractors own their own insurance policy with any provider of their choosing.

The advantages of the owner buying the insurance may include more stringent safety and loss control procedures provided you are a sophisticated safety specialist or employ such a person. • You may also improve your risk against claims. The disadvantages include more administrative costs, and risks that the contractors’ employees may claim non-project injuries. You may also experience gaps in insurance coverage for events you did not contemplate.

Should an injury arises to an invitee to your property, you may be liable under the safe place law of your state or under the theory of employer’s vicarious liability of an independent contractor.

Watch out for these events:
a. The contractor injures an invitee b. The contractor conducts an ultra-hazardous activity c. You hold out the contractor as your employee or agent.

It pays to know the local laws on safety as well as the federal laws to thoroughly assess your exposure to risk. A team of professionals including a lawyer versed in this field and a safety specialist can prevent a catastrophic loss to you.

National Safety Council:http://www.nsc.org/products_training/Pages/Home.aspx

OSHA: http://www.osha.gov/SLTC/index.html

Wisconsin Safe Place Law:http://terrenceberres.com/boyle.html]]> Sat, 16 Oct 2010 11:25:52 -0500 http://www.wi-bizlaw.com/blog/index.php?number=75#comment http://www.wi-bizlaw.com/blog/index.php?number=74 THERE ARE MANY RISKS ASSOCIATED WITH EXISTING CONDOMINIUMS; WE LIKE TO ADDRESS THREE OFTEN OVERLOOKED ONES.

I. MOLD

Health care professionals have issued warnings concerning the dangers of certain kinds of mold, fungi and spores that often grow when surfaces are exposed to water. This happens where there is dampness or other water incursion. The presence of airborne mold spores in large numbers can cause allergic reactions, asthma episodes, infections, and other respiratory problems for people. Seller and Buyer agree that they are not trained or sufficiently knowledgeable to know whether any such conditions (the presence of mold, fungi or spores) exist. Buyer has the right and assumes the responsibility to have the property inspected and tested as part of buyer’s inspection and testing contingencies.

Any water-damaged sheet rock may need to be removed up to at least a foot above the high-water mark. This will also allow the wall cavities to drain and dry properly. Wet insulation, in the ceiling or walls, should be removed and replaced or it may become a breeding ground for mold. Damp or wet carpets pads and other similar items also can become a medium for potentially dangerous mold growth. Depending on the length of time from the initial water damage, the amount of water involved, the cleanliness of the water and the type of materials affected, it may be necessary to remove carpets, pads and any other wet items (especially clothing and other soft goods) from the premises for proper drying, cleaning and treatment.

RESPONSE TO MOLD

If you can see mold or smell mold you should remove it. Removal may be accomplished by cleaning (e.g. wash with bleach and water) or by removal of the materials on which the mold is growing.

Unfortunately it can be difficult to determine what the appropriate actions are without some testing with a mold remediation specialist. Black mold growing on cellulose-based materials may or may not be toxic mold. A homeowner removing materials covered with toxic mold may threaten the health of his or her family if toxic spores are released into the home during removal.

Proper removal of the mold-contaminated material is only the first step when the mold is toxic. A certified mold remediation specialist will follow the removal with the decontamination of the structure and furnishings affected.

Property owners need to treat every mold situation individually and make clean-up decisions responsibly. The EPA, the Wisconsin Department of Health and Family Services and your local health department all have helpful information to get you on the right course. Contact your local health department. Additional resources about mold are provided below.

It is important to remember that standard inspections performed by certified state inspectors do not test for mold.
Recent Wisconsin laws require carbon monoxide alarms in new condominium projects. Buyers beware on the purchase of an older condominium unit.

II. CARBON MONOXIDE POISONING


Carbon monoxide is dangerous! Carbon monoxide (CO) is a colorless, odorless gas produced by incompletely burning fuel containing carbon. Carbon monoxide poisoning can cause brain damage and death. You can’t see it, smell it, or taste it; but carbon monoxide can kill. CO can be formed, for example, by open flames, or fuel burning space heaters, water heaters, furnaces, boilers, and clothes dryers.

Carbon monoxide is the leading cause of accidental poisoning deaths in the United States.

The federal Centers for Disease Control estimates CO poisoning annually claims nearly 500 lives, and causes more than 15,000 visits to hospital emergency rooms.

Common household fuel-burning appliances produce Carbon monoxide. When not properly vented, carbon monoxide from these appliances can build up in a room or building, displacing oxygen.

Early symptoms of carbon monoxide poisoning such as headaches, nausea, and fatigue, are often mistaken for something other than CO because the deadly gas goes undetected as it builds up in a building. Prolonged exposure can lead to brain damage and death.

What is a carbon monoxide?

It is a gas that is slightly lighter than air. It is highly toxic to humans in higher dozes.

What is a carbon monoxide alarm?

A carbon monoxide alarm is a device that will detect the presence of carbon monoxide (CO) and create a noise which gives people in the area a chance to safely leave the building.

CO alarms by themselves are not smoke detectors and vice versa. However, there are combination smoke/CO alarms. CO alarms are usually plugged into a wall electrical outlet or wired directly into a building’s electrical system.
It is important to remember that Wisconsin law and perhaps other states did not require CO alarms for condominiums in the year the unit you are looking to buy was built.

III. INADEQUATE RESERVES

The state of reserves of a condominium association is dependent on the caliber and acumen of the board of the association. As part of the documentation presented to the prospective buyer, you will likely receive financial paperwork that reflects the reserves for contingencies that face the association.

Tower condominiums face different future costs that other projects. The use of rental equipment to address maintenance issues is quite different for this application. Caulking and preventive maintenance can be a substantial expense later.

Older condominiums can face deteriorated shingle issues. Others are exposed to trees that fall on roofs.

Swimming pools may pose deferred servicing issues. Tennis courts can result in $30,000+ upgrades.

Private roads need to be resurfaced. As a condominium owner, you do not have complete control over the contingency funds. Some condominium boards skimp on reserves and when an emergency hits, you face a surprise assessment.

You may not be able to assess the appropriate reserve without an inspector who has a keen on these deferred maintenance items. What appears to be a tremendous bargain of an old condominium unit can turn out to be a mistake!

ADDITIONAL RESOURCES ABOUT MOLD

Environmental Protection Agency: _Centers for Disease Control:

http://www.cdc.gov/nceh/asthma/factsheets/molds/default.htm

Wisconsin state government on mold: http://www.dhs.wisconsin.gov/eh/DisasterHealthSafety/flooding.htm#Future

How A House Works · Combating Mold & Mildew, Family Handyman, March 2000 – An article about what mold and mildew are, how they affect the health of you and your house and, finally, how you can prevent their growth and get rid of the stuff.

http://familyhandyman.com/200003/how a house works/main.html

How to Remove mold:
http://www.familyhandyman.com/DIY-Projects/Home-Safety/Healthy-Home/how-to-remove-mold

Milwaukee Lead/Asbestos Information Center, at
http://www.mlaic.com/.

Additional Resources on Carbon Monoxide:

U.S. Consumer Product Safety Commission:
http://www.cpsc.gov/cpscpub/pubs/466.html U.S. EPA:
http://www.epa.gov/iaq/co.html

A Guide to Prevent Carbon Monoxide Poisoning:
http://www.carbon-monoxide-poisoning.com/silent-killer.html

Additional Resources on inadequate reserves:

Financial News: Homeowners, Beware Association Costs

http://finance.blogrange.com/finance-news/homeowners-beware-association-costs-investors-business-daily/
Condo Association Management Blog: Reserve Studies-Everything Condominium Associates Should Know
http://www.condoassociation.com/blog/tabid/19257/bid/8228/Reserve-Studies-Everything-Condo-Assocations-Should-Know.aspx

Investors.com: Homeowners, Beware Association Costs:

http://www.investors.com/NewsAndAnalysis/Article.aspx?id=546656

]]> Sat, 02 Oct 2010 10:29:08 -0500 http://www.wi-bizlaw.com/blog/index.php?number=74#comment http://www.wi-bizlaw.com/blog/index.php?number=73 These accounts become more restrictive at the end of 2010.
Coverdell accounts provide tax-free growth and withdrawals as long as they are used for qualified education expenses.

However, unless the Federal Congress acts before January 1, 2011, the annual contribution limit of $2,000 will drop to $500. More importantly, there will be a further restrictions that the money can only be used for college tuition and fee expenses, required books, supplies and room and board and not for expenses for education at the level of kindergarten through 12th grade.

See Coverdell Fade-out:Coverdell Fade-out.

Now is the time to make qualified purchases.

Unfortunately, you can not exceed withdrawals for costs beyond this year.
One Option if the $ is to be used for college: move the money into a 529 saving plan. Such a plan has higher contribution limits and maybe lower fees.
See Marte's Twitter
http://online.wsj.com/article/SB128363895177734593.html?mod=rss_Money.]]> Tue, 07 Sep 2010 13:53:23 -0500 http://www.wi-bizlaw.com/blog/index.php?number=73#comment http://www.wi-bizlaw.com/blog/index.php?number=72
The East Coast of America may be 3 years ahead of any wind power use on the Great Lakes. Wind power provides a reduction in water use that conventional power sources need.

The key tax advantage of wind power is the production tax credit for 10 years. Yet Congress failed to extend them despite breaks for nuclear, coal and natural gas energy credits.

Wisconsin lags behind due to a siting problem. The current maze of state and local laws fails to provide a stable, uniform framework for increased development. Iowa’s siting system must be way ahead of Wisconsin. It is getting 15% of its energy from wind power already.

Leaders in the cause are Dr. Jevon McFadden of the Public Service Commission's Wind Siting Council and Michael J. Vickerman at RenewWisconsin.

We need to remember that electricity from wind is inflation proof. The price of energy is determined for 20 years; this provides a hedge against fuel price volatility. US has world class resources.

Renewable Electrical Standards (RES) should be a standard throughout the Midwest. RES should be a national standard so that 25% of the nation’s electricity comes from wind by 2025.
Small Wind Turban Systems, less that 100 kW are a great resource, see Focus on Energy.
Because of the maze of regulations, manufacturers in US are not risking production when there is uncertainty re wind power demand over the long term.

We need national targets for each year to increase wind power use or consider some penalty on other energy sources for research in the field. Support a national renewable electrical standard.]]> Wed, 11 Aug 2010 08:34:57 -0500 http://www.wi-bizlaw.com/blog/index.php?number=72#comment http://www.wi-bizlaw.com/blog/index.php?number=71
This is a plan for small business owners and sole proprietors who have no employees, combining salary deferral and profit-sharing components, that allows you to make after-tax (Roth) contributions and let them grow to where they may be withdrawn tax free.

The no employee rule (referred to in the last paragraph) excludes:
1) employees who are under age 21, 2) employees who are not credited with 1,000 hours in any year, 3) union employees or 4) employees who are non-resident aliens with no U.S. income.

The pension tax rules may treat your business as combined with other commonly controlled or affiliated businesses for purposes of applying those rules. You should consult an experienced pension professional to determine how these rules apply to you.

Why should you look into this plan?
It combines the best qualities of the 401(k) plan, with the prized tax-free earning capability of the Roth IRA, usually reserved only for those earning less than the tax code Adjusted Gross Income limit. Because the plan is designed for an individual, it is released from the restrictive umbrella of ERISA rules, and allows plan assets to be self-directed into almost unlimited options like private equity, real estate, and more alternative investments unlike your typical 401(k).

Examples of some investments it can hold include rental property, LLCs, mutual funds and stock brokerage accounts.
Advantages include:
1) ability to obtain non-recourse loans on real estate investments and not pay Unrelated Debt Financed Income (UDFI) Tax. 2) purchase life insurance (which is not permissible with an IRA). 3) take a limited personal loan (which is not permissible with an IRA). 4) No income limits to contribute to the Solo Roth 401k (not so with regular Roth) 5) The solo Roth 401k component grows tax free 6) Larger contribution limits than a typical retirement plan. 7) Investment in S Corporation stock is permitted.

It pays to think about the option if you are a sole-proprietor! Let your retirement funds grow faster with this little known plan. Resources: Pensco Trusthttp://www.penscotrust.com Entrust http://www.theentrustgroup.com Equity Trusthttp://www.trustetc.com Sterling Trusthttp://www.sterling-trust.com

]]> Tue, 06 Jul 2010 08:21:48 -0500 http://www.wi-bizlaw.com/blog/index.php?number=71#comment http://www.wi-bizlaw.com/blog/index.php?number=70
If small charities wish to grow, they should adopt the required policies that provide more transparency and accountability.

Donors are more likely to contribute to an organization they know is professionally managed and that wisely spends money.
Consider these points:
1) Conflict of interest policy: the board and the public are better served when conflict of interest events are disclosed.

2) Whistleblower policy: the public feels more comfortable in donating to a charity when there is a procedure that a whistleblower can disclose embezzlement or personnel harassment.

3) Record retention policy: Keeping records of past board policies and actions permits accountability in later years and a record on whether actions were transparent.

4) A policy with respect to operations in foreign countries should be enacted so that donations made in America do not get in the hands of terrorists.

Big public charities are under much scrutiny due to the ability of donors to use a website: www.guidestar.com.
That website permits a review of the charity’s Form 990 that discloses much useful data for a contributor.
Form 990 contains the salaries of key personnel. The IRS & the public can determine if the salaries are in line with similar positions.

It is becoming increasingly difficult for a big public charity to hide their abuses. State and federal regulators increasingly look at this form to spot abuses.

Is a spouse of a board member receiving free benefits?

Is the charity paying for the country club or health club dues of a board member or executive?

More and more accountability will be expected in the future.

Small charities can use the resources available from Boardsource for examples of useful policies and manuals to conduct their operations in a professional manner.

Governmental groups such as UW Parkside’s Center for Community Partnerships click here and the Helen Bader Foundation at Helen Bader Foundation are resources.

]]> Sat, 26 Jun 2010 10:36:26 -0500 http://www.wi-bizlaw.com/blog/index.php?number=70#comment http://www.wi-bizlaw.com/blog/index.php?number=69

Nouriel Roubini is a professor of economics at New York University’s Stern School of Business. He predicted the severe financial crisis.

He debunks the business school thesis that markets are efficient and incorporate all known information into prices. This is called the Efficient Market Hypothesis. Now there are rigorous studies including one by Yale Economist Robert Schiller that refute the hypothesis.

He also pokes holes at the notion that the housing bubble explains the current economic crisis. He indicates that that was just the beginning. Changes in corporate governance, compensation schemes, and government monetary policy play a part.
He explains many of the abbreviations used in the financial market such as CMOs, CDOs, CLOs, and NINJA loans (No Income, No Job and no Assets).

The current legislation before Congress will not cure our system deficiencies because it does not go far enough.]]> Mon, 07 Jun 2010 08:34:46 -0500 http://www.wi-bizlaw.com/blog/index.php?number=69#comment http://www.wi-bizlaw.com/blog/index.php?number=68 In 2008, Penn Life agreed to pay a record forfeiture of $925,000 and to offer a restitution program to up to 2,200 purchasers, mostly Wisconsin senior citizens, who were sold more than $55 million in annuity products from 2000 to 2007.
Under the settlement agreement, Penn Life was ordered not to sell annuities in Wisconsin for four years, comply with Wisconsin law regarding suitability and sales practices, and supervise its insurance agents to ensure compliance with the law.

Penn Life also agreed the State of Wisconsin may revoke its license to do business in Wisconsin if it is determined to have materially violated this settlement agreement.
Other states see the need to regulate the sale of annuities to seniors. See Florida Statute Section 627.4554 and its Annuity Suitability Questionnaire, Publication DFS-H1-1980.
See California’s insurance code at section 785-789.10.
The Office of the Commissioner of Insurance, Wisconsin has publications that every family should be familiar with:
Guide to Annuities, link: click herehttp://oci.wi.gov/pub_list/pi-016.htm, [Explains how much to buy and how to buy].
Understanding Annuities, link: click herehttp://oci.wi.gov/pub_list/pi-214.htm.
When salespeople churn or twist to generate undue fees and commissions, complaints should be made to the state insurance department, securities office, and the home office of the insurer and any other regulatory body that governs the practice. Certain annuities have unsuitable factors for seniors. Find out what your state is doing about annuities that are unsuitable for elders.
Spread the word. Read the policy! Complain to the Issuing Company, the Financial Institution, State Regulatory Agencies and consider suit or a class action where appropriate.
When an elder is a victim of financial exploitation, states have permitted an action for elder abuse. When annuities are harmful, consider the options to restore an elder’s life savings. Another useful resource is Safeguard Our Seniors: link: click herehttp://flseniors.net/SOSResources.htm]]> Thu, 13 May 2010 17:16:04 -0500 http://www.wi-bizlaw.com/blog/index.php?number=68#comment http://www.wi-bizlaw.com/blog/index.php?number=67
One aspect of a new and improved federal regulatory scheme is the seizure of 401(k) retirement plans and the subsequent government-administered disbursement of the funds.
In Chapter 3 of the Annual Report on the Middle Class released in February by Vice President Biden and the White House Task Force on the Middle Class, the Obama administration calls for enhancing the “retirement options” for the middle class by imposing “new regulations to improve the transparency and adequacy of 401(k) retirement savings.” The plan, as sketched in the 43-page document, calls for the creation of something called “Guaranteed Retirement Accounts” (GRAs). Biden slyly shifts the onus for the idea through weasel words typical of the federal government: “Some have suggested the creation of Guaranteed Retirement Accounts (GRAs), which would give workers a simple way to invest a portion of their retirement savings in an account that was free of inflation and market risk, and in some versions under discussion, would guarantee a specified real return above the rate of inflation.” These accounts would be “free of inflation and market risk” because they would be under the direct and absolute control of the federal bureaucracy. There would be no risk because the funds would no longer be moored to the free market and subject to the fluctuations thereof. Rather, the retirement funds of every hard-working American dependent on a 401(k) for their retirement security would be nationalized and made subject to the whims and will of the executive branch. The current administration is practiced in the erection of such straw men to deflect their own socialistic and absolutist intent. The record is clear, however, and since the day of his inauguration, Barack Obama and his congressional co-conspirators have consistently and unapologetically set out to systematically nationalize the economy of the United States: first the banks; then the insurance companies; then the auto industry; then healthcare; and now the piece de resistance, the private savings accounts of millions of middle-class Americans. This is an unlawful usurpation of power unprecedented in the annals of American political history. Coinciding with the publication of the report described above, the Obama White House, together with the Departments of Labor and Treasury, issued a so-called “Request for Information” calling for a detailed analysis of the pros and cons of the “annuitization” of individual 401(k)s. The scheme was set forth in a set of “Proposed Rules” published on February 2, 2010 in the Federal Register. The document reads in part, “While defined contribution plans have some strengths relative to defined benefit plans, participants in defined contribution plans bear the investment risk because there is no promise by the employer as to the adequacy of the account balance that will be available or the income stream that can be provided after retirement.” And furthermore, “The Agencies are considering whether it would be appropriate for them to take future steps for them to facilitate access to, and use of, lifetime income or other arrangements designed to provide designed to provide a stream of income after retirement.” The upshot of that clunky prose is that the Obama administration believes that employers cannot be relied upon to adequately manage the 401(k) retirement accounts it provides for their employees, therefore the federal government will relieve them of that responsibility and take sole discretionary control of those funds, thus eliminating the risk of mismanagement. In other words, the Obama administration is planning to divert the “stream of income after retirement” and channel it right through Washington, D.C. Under the section of the Proposed Rules marked “Background,” the document declares that it is the intent of the agencies considering these changes to further “their efforts to promote retirement security for American workers.” And, to “provide wages that support families, and rise with time and productivity.” Since January 2010, it seems that the only thing rising with time is the likelihood that the economic wealth and might of our once enviable Republic will be methodically eradicated through the exercise by the executive branch of unconstitutional authority over every financial aspect of our nation’s people. While the time for commenting on these Proposed Rules has passed (May 3, 2010 was the deadline), there is yet time for concerned citizens to contact their elected representatives and voice their opposition to President Obama’s proposed seizure of their 401(k) retirement accounts. In response to the White House’s pronouncements, many Republicans in the House of Representatives, including GOP leader John Boehner (R-Ohio), have joined together to defend against the federal assault on the financial freedom of the middle class. Boehner and a cadre of colleagues known as the “House GOP Savings Recovery Solutions Group” (an organization founded by Boehner to, “help Americans protect and rebuild their hard-earned savings as quickly as possible while making sure the federal government does not hinder the process”) have written a memo to the secretaries of Labor and Treasury, imploring them to “take no action” to nationalize the retirement security of millions of Americans, representing trillions of dollars. The text of the letter is reprinted below: Dear Secretaries Solis and Geithner: As members of the Republican Savings Solutions Group, we write today to express our strong opposition to any proposal to eliminate or federalize private-sector defined contribution pension plans, such as 401(k)s, or impose burdensome new requirements upon the businesses, large and small, who choose to offer these plans to their employees. In the Annual Report of the White House Task Force on the Middle Class, Vice President Biden discussed at length the creation of so-called “Guaranteed Retirement Accounts, (GRAs)” which would provide for protection from “inflation and market risk” and potentially “guarantee a specified real return above the rate of inflation” — presumably at taxpayer expense. In the Report, the Vice President recommended “further study of these issues.” The Vice President’s comments are troubling, insofar as they come on the heels of testimony before Congress from supporters of GRAs proposing to eliminate the favorable tax treatment currently afforded to 401(k) plans, and instead use those dollars to fund government-invested GRAs into which all employees would be required to contribute a portion of their salary — again, with a government subsidy. These advocates would, essentially, dismantle the present private-sector 401(k) system, replacing it instead with a government-run investment plan, the size and scope of which remain to be seen. This despite data showing that 90 percent of households have a favorable opinion of the existing 401(k)/IRA system.
In light of these facts, we write today to express our opposition in the strongest terms to any effort to “nationalize” the private 401(k) system, or any proposal that would dismantle or disfavor the private 401(k) system in favor of a government-run retirement security regime.
Similarly, and more recently, the Departments of Labor and Treasury have jointly issued a “Request for Information” regarding the “annuitization” of 401(k) plans through “Lifetime Income Options.” While we appreciate the Departments’ seeking guidance and information from all parties and stakeholders in advance of regulatory activity, we strongly urge that the Departments not proceed with any regulation in this area before they have carefully and thoroughly considered all of the information received.
More specifically, we urge that the Departments take no action to mandate that plan sponsors — often, small businesses — include a “lifetime income” or “annuitization” option if they choose to offer a 401(k) plan to their employees, or that beneficiaries take some or all of their retirement savings in such an option. Data shows that 70 percent of Americans oppose the concept of a mandated annuity or government payout of their 401(k) plan. On a more fundamental level, Congress should not be in the business of choosing “winners” and “losers” among retirement security stakeholders. Instead, we urge the Departments to make it easier for employers to include retirement income solutions in their savings plans and to help workers learn more about the value of their retirement savings as a source of retirement income. Finally, to the extent new mandates and bureaucratic red tape from Washington push small employers out of the business of offering these plans to their employees, we would submit such an effort weakens, rather than strengthens retirement security.
We appreciate your consideration of our views in these important matters and stand ready to work with you and the Administration to promote secure and adequate retirement savings for all Americans.
Sincerely, House Republican Leader John Boehner (R-OH)
Rep. John Kline (R-MN) 
Rep. Dave Camp (R-MI) 
Rep. Sam Johnson (R-TX) 
Rep. Dean Heller (R-NV) 
Rep. Brett Guthrie (R-KY) 
Rep. Michele Bachmann (R-MN) 
Rep. Pat Tiberi (R-OH) 
Rep. Bob Latta (R-OH) 
Rep. Erik Paulsen (R-MN) 
Rep. Lynn Jenkins (R-KS) 
Rep. Ed Royce (R-CA) 
Rep. Buck McKeon (R-CA) While the goal of Boehner’s group is noble and laudable, the tactics it uses to resist the administration’s attack on middle-class savings seems somehow to justify them, as well. If Congressman Boehner and his allies are genuinely committed to helping “Americans protect and rebuild their hard-earned savings,” then their interest, as well as that of our Republic and the citizens thereof, would be best served by a bold and relentless campaign to drive all branches of the national government to retreat to a place within the borders of their constitutional authority.]]> Thu, 06 May 2010 08:24:49 -0500 http://www.wi-bizlaw.com/blog/index.php?number=67#comment http://www.wi-bizlaw.com/blog/index.php?number=66
Usually, their motivation is altruistic with a side benefit of State or Federal Tax advantages. Although the use of common law easements dates back to 1893 the recent push to use conservation easements has been encouraged by the state legislatures enactment of conservation statutes. What the public needs to know is that these unique easements are quite different from traditional easements.
Most of the state statutes have recognized in some fashion the Uniform Conservation Easement Act (UCEA) that was approved by the National Conference of Commissioners on Uniform State Laws in 1981, so the states have adopted either that act in whole or in part.
Wisconsin Law defines a Conservation Easement as:
“a holders nonpossessory interest in real property imposing any limitation or affirmative obligation the purpose of which includes retaining or protecting natural, scenic or open space values of real property, assuring the availability of real property for agricultural forest recreational or open space use protecting natural resources maintaining or enhancing air or water quality preserving a burial site as defined in S.157.70 (1)(b), or preserving the historical, architectural, archeological or cultural aspects of real property.” This is almost a direct quote from the Uniform Conservation Easement Act. The legislatures enactment of this statute represents the foundation for a conservation easement. (see section 700.40 (1)(a) Wis.Stat).
FEDERAL AND STATE LAW THAT RELATES TO THE CONSERVATION EASEMENT
The reader is alerted to the fact that the Federal Law with respect to certain taxes on this subject is not necessarily the law as it applies currently. The future tax treatment of conservation easements cannot be stated at this time because it is not clear whether the congress will extend the generous tax benefits in effect through 2010 and thereafter.
Accordingly, is highly recommended that you consult an attorney before employing a conservation easement.
In the past income tax deductions or donated conservation easements were allowed in an amount equal to the fair market value of the donated easement. Although these favorable provisions expired at the end of 2009, efforts are being made to make them current again. You should consider looking at a link. http://www.landtrustalliance.org/poicy/advocates" for current information. What we can say with respect to meeting the definition of a federal income tax deduction in the past is a 3-part test.
1. There must be a qualified real property interest
2. The donation must be made to a qualified organization
3. The easement must advance specific conservation purposes

Qualifying conservation purposes are 1. Outdoor recreational or education of the public
2. Protection of natural habitat
3. Preservation of open space
4. Historic preservation
Each of these purposes has specific definitions that would need to be met.
However, there are several additional requirements to determine the deductibility of a donation. The easement must be enforceable in perpetuity, all uses that are inconsistent with the conservation must be prohibited and the donors must possess the intent to make a charitable donation.
EVALUATION OF THE CONSERVATION EASEMENT TRANSACTION
In addition to meeting all the State and Federal regulations, a donor must obtain an appraisal that is the value of the easement forming the baseline for tax benefits.
The IRS has set forth several acceptable methods for evaluation. The IRS Law requires that a qualified appraisal be prepared and that the donee organization must acknowledge receipt of the property.
Again, measuring the benefits provided by the Federal Income Tax incentives are in flux at this time. A current income deductibility has reverted to the law that existed prior to 2006. As of today’s date, you should consult with a real estate professional familiar with this area to determine what key differences apply to current conservation easement donations.
You must also remember that a conservation easement donation will reduce basis in the land subject to the easement.
In many states there are also state tax benefits again these laws usually relate to state income tax credits, state income tax deductions, property tax credits, and low property assessments for property tax purposes. These state incentives are relatively new with less than half of the states appearing to provide them. Like all tax benefits there have been concerns for abuse in the use of the conservation easement.
Initially, drafters of the law believed that limiting the donee to a government or qualified charitable organization will provide good oversight. However, there have been abuses which both the Federal and State authorities have had to respond to. They have been quick to detect and uncover abuses and use audits or state certifications as a common tool for this purpose.
In summary, landowners continue to find that an easement is an ideal tool to achieve their personal goal of protection of property for posterity due to their love for the property itself.
Because of city sprawl, farmland extinction, open space loss and degradation of the land landowners will continue to use a conservation easement. Although tax benefits are an important consideration as a motivator the primary motivation seems to be personal attachment to the land playing a role along with the altruistic desire to conserve the land for environmental and other reasons. The public can continue to protect America’s soil, mountainsides and coasts to the use of this conservation easement.]]> Mon, 03 May 2010 11:59:36 -0500 http://www.wi-bizlaw.com/blog/index.php?number=66#comment http://www.wi-bizlaw.com/blog/index.php?number=65 This involves questions of the owner’s personal and professional direction and identity.

What are the owner’s financial resources after the transition?

Will such resources be independent of the day to day business operations? If not, business downturns will impact the owner’s retirement income.

# 2 The owner’s family adjustment.

How will the family’s role change? How will the power relationships change?

How will you negotiate family harmony as these roles and relationships change?

We suggest the use of mediation, family counseling or family councils. It is common that the owner possesses a strong will and is reluctant to pass authority down to a child. Much discussion between generations is needed here.

#3 The company’s adjustment.

How will the company sustain itself?
Consider a strategic plan. Hire a strategic planner to determine new possible goals as well as a review of the past goals of the company.

# 4 The management's transformation.

By this is meant, will the management of the business consist of just family or a combination of family members and non-relatives?

How will this new leadership be scored on its performance?

#5 The ownership transformation.

How will this new ownership be transferred effectively?

Who will be the new owners? Will they be partially trusts or outsiders?

#6 The owner’s estate plan.

What will be the changes in the owner's estate planning?

How can you ensure that the succession plan for the business occurs appropriately?

This brief discussion of the transfer of a business relates really to the non-tax aspects of such a change. Of course, the tax aspects of these changes must also be addressed.
One of the weakest points of business owners is their failure to address the transfer of ownership at their retirement.
This creates a crisis for the business. It pays to do planning ahead.
Ensure a proper transition. Pass the business from one generation to the next with forethought and proper guidance.

]]> Fri, 02 Apr 2010 10:39:46 -0500 http://www.wi-bizlaw.com/blog/index.php?number=65#comment http://www.wi-bizlaw.com/blog/index.php?number=64

When you send money to people you do not know or give personal information, you raise the prospect of becoming a victim of telemarketing fraud.

How to reduce the risk of telemarketing fraud:

* Avoid purchases from unknown companies.
* Ask for written information about any offer or charity.
* Check out unfamiliar companies with BBB, State Attorney General and the National Fraud Information center.
* Obtain the name, business identity, phone #, address, & business license # of salesperson before you do business and then verify such accuracy.
* Find out what % of the $ is paid in commissions and actually goes to charity before you give.
* Ask yourself: What guarantee do I really have that this person will use my money in the manner agreed upon?
* Pay for services only after they are delivered.
* Refrain from permitting a con artist sending a messenger to your home to pick up your $.
* Always take your time.
* Refrain from payment for a "free prize.¨
* Know your limits-refrain from giving out your financial information.
* Discuss big investments with trusted friend, attorney or financial advisor.
* If you fail to understand the offer, leave it alone.
* Refrain from disclosure of personal information to unknown persons.
* Report fraud to the authorities.
Go to the FBI's website for more information www.fbi.gov.]]> Tue, 23 Feb 2010 10:35:42 -0600 http://www.wi-bizlaw.com/blog/index.php?number=64#comment http://www.wi-bizlaw.com/blog/index.php?number=63

Fourteen states have laws that legalize medical marijuana.Legal Medical Marijuana.

Two States reportedly passed laws that do not legalize its use, although they are favorable towards it. Wisconsin has 2 bills pending that relate to such use.

Many workplace issues arise from the use of medical marijuana. It is important that owners of businesses, HR workers and the general public think about them now!

For example, if an employer refuses to hire a prospective worker because of such use, will there be viable action? If the prospective worker flunks a test because of marijuana use, is there a remedy for the worker?

Will the employer be able to successfully defend a claim of a federal nature but not a state claim?

Will companies need to adjust their zero tolerance programs?

How does the employer establish the legitimacy of such use?

Generally, companies will need to update their HR policies, make sure that personnel know the policies, apply the policies uniformly and keep employees' records confidential.

]]> Fri, 05 Feb 2010 15:19:22 -0600 http://www.wi-bizlaw.com/blog/index.php?number=63#comment http://www.wi-bizlaw.com/blog/index.php?number=62

A major source of financing has largely vanished: commercial mortgage-backed securities are largely gone.

Lending companies are demanding tougher terms such as lower loan-to-value ratios.
Lower property values exacerbate the issue.

What are some options?

A. Seek modifications in the terms of the exisitng loans.
B. Pay off the existing loan at a discount.
C. Know the tax implications of your actions, especiallly if a real estate mortgage investment conduit is involved.
D. Consider reorganizing the debt through Chapter 11 Bankruptcy.

]]> Fri, 22 Jan 2010 16:43:13 -0600 http://www.wi-bizlaw.com/blog/index.php?number=62#comment http://www.wi-bizlaw.com/blog/index.php?number=61 Individuals and companies need to know how credit reporting agencies deal with complaints.
This website also contains suggestions on letters to credit report agencies.click herehttp://ago.mo.gov/publications/creditrepair2.htm]]> Mon, 30 Nov 2009 12:18:34 -0600 http://www.wi-bizlaw.com/blog/index.php?number=61#comment http://www.wi-bizlaw.com/blog/index.php?number=60

In 2010 and 2011, taxpayers have unique opportunities to convert an IRA into Roth IRAs.
For example, a taxpayer could establish separate accounts by asset classes in December 2009.

Then, convert all accounts to Roth IRAs in January 2010.
Then, instruct your tax preparer to extend the filing of your tax return by April 15, 2010 and make the estimated tax payments on the Roth conversions.

On or before October 15, 2011, the taxpayer would recharcterize poor performing accounts as IRAs and keep the well performing accounts as Roth IRAs and file the tax return.
You will want to seek advice from your attorney or accountant before taking such a leap.

]]> Fri, 20 Nov 2009 10:47:27 -0600 http://www.wi-bizlaw.com/blog/index.php?number=60#comment http://www.wi-bizlaw.com/blog/index.php?number=59

NY Philanthropist Brooke Astor suffered from Alzheimer’s disease in her late years, Ms. Astor was known as a great contributor to the NY Library.

According to the financial papers, her son, Mr. Anthony Marshall, was convicted of defrauding her when she did not have the capacity to consent to his actions. The trial took months before it came to its end.

What step can we take to avoid this elder abuse?

First, we can create a financial power of attorney that is effective when we lack capacity. It is very important to select an agent who is trustworthy.
Secondly, we could create an irrevocable trust and place money in the trust for causes or people that we want to provide money. The trustee can be a reliable person or a trust company.

Unfortunately, Alzheimer’s disease cripples the mind. It is a risk of elders. It does not cost, it pays to plan ahead to fulfill our wishes for how we want our treasure to be disbursed.

]]> Tue, 13 Oct 2009 10:37:52 -0500 http://www.wi-bizlaw.com/blog/index.php?number=59#comment http://www.wi-bizlaw.com/blog/index.php?number=58 Star Direct Inc. Case, Wisconsin Supreme Court supports a company's efforts to protect its business against a former employee.

Companies often insist that employees sign non-compete contracts. Some of these contracts have "customer clauses", "business clauses" and "confidentiality clauses". The Court in a 38 page opinion discusses them in great detail.

Justice Gableman emphasizes that existing employees must be paid consideration to sign such an agreement. Here the company paid the employee $30,000. Route salespeople are often the subject of such agreements.

Although these restrictive covenant agreements are suspect as restraints of trade and are disfavored at law, the Court looks to the interests both the employer and former employee have on a case to case basis.

Employer and employee need to understand their rights before they sign such agreements! ]]> Tue, 21 Jul 2009 15:02:54 -0500 http://www.wi-bizlaw.com/blog/index.php?number=58#comment http://www.wi-bizlaw.com/blog/index.php?number=57 http://www.elderlawanswers.com/resources/article.asp?id=7735§ion=4]]> Thu, 18 Jun 2009 17:38:54 -0500 http://www.wi-bizlaw.com/blog/index.php?number=57#comment http://www.wi-bizlaw.com/blog/index.php?number=56 TNEV allows registered users to verify up to 10 employee names and SSNs at one time - without having to speak to a Social Security representative. The new automated phone service is replacing the current telephone number employer verification process, which requires Social Security representatives to verify numbers for employers and which will not be available after fall 2009. The new TNEV service is very similar to the online Social Security Number Verification Service (SSNVS). Registration for TNEV cannot be completed over the phone, however. Both TNEV and SSNVS registration must be done online through Social Security's Business Services Online website. After an employer completes the online registration, Social Security will mail a one-time activation code to the employer. The activation code must be entered online, and employers will then be able to access TNEV (24/7), or SSNVS during the times listed below. Online services availability Monday – Friday: 5 AM – 1 AM ET Saturday: 5 AM – 11 PM ET Sunday: 8 AM – 11:30 PM ET So remember: Employers must be registered in order to access TNEV and/or SSNVS.http://www.ssa.gov/bso/bsowelcome.htm]]> Fri, 29 May 2009 16:29:57 -0500 http://www.wi-bizlaw.com/blog/index.php?number=56#comment http://www.wi-bizlaw.com/blog/index.php?number=55 The “Right to Cure Law” provides timetables and steps to help solve disputes and misunderstandings between consumers and contractors related to residential construction and remodeling, before going to court or arbitration. People who feel they have a claim concerning defective workmanship or materials need to provide written notice to contractors or suppliers before any legal action may be filed. The contractors and suppliers have the opportunity and the responsibility to respond to claims. For more information, "http://commerce. wi.gov/SB/SB-Div Publications.html. "]]> Fri, 22 May 2009 16:41:58 -0500 http://www.wi-bizlaw.com/blog/index.php?number=55#comment http://www.wi-bizlaw.com/blog/index.php?number=54 7 days a week, without reservations, you can obtain a private # and dialing code. You will get a long distance number at www.FreeConferenceCalling.com. Let us know your experience with it.]]> Mon, 04 May 2009 17:39:51 -0500 http://www.wi-bizlaw.com/blog/index.php?number=54#comment http://www.wi-bizlaw.com/blog/index.php?number=53 So, bringing the screen up even further than you would think so that you can hold your head even more straight ahead would be beneficial as we tend to look into the computer screen to do whatever it is that we are working on. Our bodies tend to fall in towards it so trying to remind us to just sit up straight and to pull the shoulders back is certainly beneficial. The one exercise could be added would be a rowing exercise to bring the shoulder blades back. It would make their shoulder girdle – as we call it – more stable and certainly help waylay the negative effects of having to look at a computer screen all day. Q: When you see such outpatients, what do you do for them? Dr. Hill: Well, we try to figure out ways to change their desk situation because obviously going back to that same task 8 hours a day is not going to help them it is going to further their malaise instead of correct it. In chiropractic, we try to loosen any type of joint that might be tight and that may also be forcing them to find positions that just are not comfortable anymore. Certainly, working on the upper back and the neck and strictly the area between the shoulder and the shoulder blades so that they can have better posture. Q: Now after people get home from work sometimes they do raking and shoveling that create back problems. What kind of treatments do you give for those types of conditions? Dr. Hill: Raking and shoveling have a lot of rotation moves in them. Those things typically affect our lower back and in my experience, it is usually a disk that is injured or not as strong as it should be. In my office traction or lengthening of the back to stretch the ligaments that hold the vertebrae together is what we find gives the most relief to that. I try to encourage my patients to shovel or rake with both sides of their body so they don’t overload one side – like we have a tendency to do- being either right or left hand dominant. Q: Do you have any suggestions for getting better sleep? Dr. Hill: Yes, a sleep posture becomes very important most people are side sleepers, which is ok. The pillow or pillows should fill in nicely the space between the mattress and your neck so that it does not push your head up or let your head sink down toward the mattress. So looking to see how straight your head, neck and spine stay is very beneficial. Also, side sleepers tend to draw that top leg up and let the knee drop down towards the mattress and that position puts a lot of rotation on the lower back. So sometimes putting a pillow right in front of us, so that the knee can rest on that pillow or putting the pillow right between the legs so that the pillow separates the legs will make for a much better night sleep. We typically will change positions in the night subconsciously by being slightly uncomfortable. If we are totally uncomfortable, it will wake us up and then we will reposition ourselves so people will go from their side to their back to the other side subconsciously throughout the night just by having slight discomfort. It is when we experience more than moderate discomfort that the pain will actually wake us up and we will not have good continuous sleep. Q: Does your office sell any particular pillow devices or pillows? Dr. Hill: Yes, we do. We have the water pillow, which we have found revolutionized fitting pillows for people because the water pillow fits everybody or almost everybody because of its variability. You put in a little bit of water in the pillow. It’s not like a waterbed for your head but it is a pillow that has a portion of the inside of it that can be filled with water. That allows varying amounts of support for varying sizes of people. We all have different heights and lengths of neck and breadths of shoulders so trying to fit that exact pillow to the exact body type has pretty much gone to the wayside. It is so unique that everybody finds that the water pillow fits them and if it doesn’t fit them immediately, they can either add a little bit of water or take some out to make it much more comfortable. Q: So, what kind of foot problems do you see? Dr. Hill: Most of the problems start with the arch starting to fall as we wear shoes without arch support in them. Most shoes do not come with arch support. Over the course of time, most of our feet will have some type of falling of that arch just from the lack of support and initially that can lead to pain directly along the bottom of the foot, along with what is called the plantar fascia. When that gets inflamed and sore it is called plantar fascitis. If that stays there too long or the tension on the plantar fascia stays too long, it starts to form a heel spur and that spur can then become inflamed and that creates a lot of discomfort for people as that condition lingers. If it is there for years, it starts to drop what is called the metatarsals and the dropped metatarsal makes the bone just beyond it try to lift up. This is what leads to hammer toe. So maladies of the feet typically start from the arch not being supported. In my office, we try to get people to wear arch supports and they are available in many places and they are good because most shoes come with no arch support. So getting anything in there to support that the arch can stop problems from occurring and can reverse problems and we all need that at some point in our life. Q: Any other general advice you recommend Doctor? Dr. Hill: Exercise, even if you only have time for 10 minutes two or three or four times a week is beneficial, not only for cardiovascular system, but just keeping your entire skeletal system a little bit better in shape. Pay a little more attention to posture. Most of us work with our head in front of us all day trying to see what it is that we are doing and so by trying to lift the head and bring the shoulders back during those times where you are able to you can stop that slow progression of a stoop with age. Dr. Sharon Hill, D.C. can be reached at 262-633-4016. Her office address is 2710 Wright Avenue, Racine WI.]]> Mon, 27 Apr 2009 10:01:50 -0500 http://www.wi-bizlaw.com/blog/index.php?number=53#comment http://www.wi-bizlaw.com/blog/index.php?number=52 Grants and loans will be made available through HUD’s Office of Affordable Housing Preservation (OAHP) for eligible property owners to make energy and green retrofit investments in the property, to ensure the maintenance and preservation of the property, the continued operation and maintenance of energy efficiency technologies, and the timely expenditure of funds. Physical and financial analyses of the properties will be conducted to determine the size of each grant and loan. Incentives will be made available to participating owners. The terms of the grants or loans will include continued affordability agreements. Grant and loan funds must be spent by the receiving property owner within two years. Full detail of how to apply, and grant and loan terms, will be published in a Housing Notice within 60 days of the Recovery Act being signed into law (by April 17, 2009). The Catalog of Federal Domestic Assistance (CFDA) number for this program is 14.318. Program Description Grants and loans will be made available through HUD’s Office of Affordable Housing Preservation (OAHP) for eligible property owners to make energy and green retrofit investments in the property, to ensure the maintenance and preservation of the property, the continued operation and maintenance of energy efficiency technologies, and the timely expenditure of funds. Physical and financial analyses of the properties will be conducted to determine the size of each grant and loan. Incentives will be made available to participating owners. The terms of the grants or loans will include continued affordability agreements. Grant and loan funds must be spent by the receiving property owner within two years. Full detail of how to apply, and grant and loan terms, will be published in a Housing Notice within 60 days of the Recovery Act being signed into law (by April 17, 2009). The Catalog of Federal Domestic Assistance (CFDA) number for this program is 14.318. Process for Making Awards Full detail of how to apply, and grant and loan terms, will be published in a Housing Notice within 60 days of the bill being signed into law (by April 17, 2009). Eligible Applicants Owners of properties receiving project-based assistance pursuant to section 202 of the Housing Act of 1959 (12 U.S.C. 17012), section 811 of the Cranston- Gonzalez National Affordable Housing Act (42 U.S.C. 8013, or Section 8 of the United States Housing Act of 1937, as amended (42 U.S.C. 1437f). Funding Amounts Total Funding: $250 Million]]> Thu, 19 Mar 2009 17:09:45 -0500 http://www.wi-bizlaw.com/blog/index.php?number=52#comment http://www.wi-bizlaw.com/blog/index.php?number=51 These work-at-home schemes are designed by criminals to gain the trust of job seekers in order to take advantage of working relationships to further illegal activity. Most victims do not even realize they are engaging in criminal behavior until it is too late. In many of the reported scams, victims are often hired to “process payments,” “transfer funds,” or “reship products.” However, these scams exploit unwitting employees by having them cash fraudulent checks, transfer illegally obtained funds for the criminals, or receive stolen merchandise and ship it to the criminals. Other scams entice victims to sign up to be a “mystery shopper,” receiving fraudulent checks with instructions to cash the checks and wire the funds to “test” a company’s services. Victims are told they will be compensated with a portion of the merchandise or funds. Job scams also often provide criminals the opportunity to commit identity theft when victims provide their personal information, sometimes even bank account information, to their potential “employer.” The criminal/employer can then use the victim’s information to open credit cards, post on-line auctions, register websites, etc., in the victim’s name to commit additional crimes. “Don’t get duped by these criminals offering easy money. Remain skeptical of unsolicited job offers that sound too good to be true and report any scams you might encounter,” said Richard Kolko, FBI National Press Office. To receive the latest information about cyber scams, please go to the FBI website and sign up for e-mail alerts by clicking on one of the red envelopes. If you have received a scam e-mail, please notify the IC3 by filing a complaint at www.ic3.gov. For more information on e-scams, please visit the FBI's New E-Scams and Warnings webpage at www.fbi.gov or www.lookstoogoodtobetrue.com.]]> Fri, 27 Feb 2009 09:23:37 -0600 http://www.wi-bizlaw.com/blog/index.php?number=51#comment http://www.wi-bizlaw.com/blog/index.php?number=50 The UPS Store. We interviewed him recently on the advantages of UPS. Paul Lynch: From the standpoint of business owners, we are able to package unusual things. That is done professionally, where packaging, shipping and contents are all guaranteed against breakage. JBS: What is the benefit of your mail boxes to businesses? Lynch: They provide a street address to accept packages from the US Postal Service, UPS and Fed Ex. The boxes are secured for the owner's protection. JBS: What promotional items can owners buy from your store? Lynch: We produce 48" x 12" banners, in color to promote your business. You can bring in your promotional material in powerpoint or adobe format to us.]]> Thu, 12 Feb 2009 11:44:28 -0600 http://www.wi-bizlaw.com/blog/index.php?number=50#comment http://www.wi-bizlaw.com/blog/index.php?number=49 Bob had an epiphany about word choice from his experience. He now teaches executives, coaches and parents about the right word choice to make an impact on the behavior of others. Check out his website:Rememmbertheice]]> Tue, 20 Jan 2009 08:54:11 -0600 http://www.wi-bizlaw.com/blog/index.php?number=49#comment http://www.wi-bizlaw.com/blog/index.php?number=48
In this age where credit is hard to get, even for corporations, the owners of business need to scrutinize any personal guaranty requested by a bank. Some forms of guaranties may permit the bank to recover again you personally without first suing and obtaining a judgment against the corporation that incurred the debt and signed the underlying note.]]> Tue, 23 Dec 2008 13:28:28 -0600 http://www.wi-bizlaw.com/blog/index.php?number=48#comment http://www.wi-bizlaw.com/blog/index.php?number=47 Leopold Café, next to the Iconic Taj Hotel, had suffered shocking violence. Within 24 hours of the ending of commando action the café opened as the owners and the Manager said, “we cannot give to the terrorists the satisfaction that they have succeeded”. A nine year old girl heard of the attacks and was terrified, suffering from shock and fever. Her father brought her to Leopold Café to light a candle. A small crowd gathered beaming and smiling. She lit the candle and smiled. The people from the crowd patted her on the back. She went home free of shock and fear, with a smile on her face. This is the answer to terrorism but it requires resilience of mind and spiritual strength. This is the mood all over India at this time. [This is a writing of Swami Veda Bharati, Vedic Scholar & International Teacher]]]> Wed, 03 Dec 2008 08:55:37 -0600 http://www.wi-bizlaw.com/blog/index.php?number=47#comment http://www.wi-bizlaw.com/blog/index.php?number=46 Wisconsin charges a real estate transfer fee when real estate is transferred. Recently, Ms. Chou wanted to transfer an interest in real estate to a LLC for a ˝ interest in the LLC. The real estate had an existing mortgage on it for 9 Million +. Ms. Chou reportedly paid the tax on cash she received in the transaction but not on the value of the LLC she received. The State later assessed her on the value of the interest received PLUS a penalty of 25% because the value on the transfer return was understated by 25% or more. Ouch! [For more details see Fourth Street Villas, LLC, et al. Petitioners, v. WI Department of Revenue, Tax Appeals Commission, Docket No. 07-T-48.]]]> Wed, 03 Dec 2008 08:50:13 -0600 http://www.wi-bizlaw.com/blog/index.php?number=46#comment http://www.wi-bizlaw.com/blog/index.php?number=45 Thank you to Barbara Greco of Barbara Greco Interior Design, LLC. for her insight on design and your business. 1. What are the current design trends in the Midwest? As far as color we are seeing orange, but not the bright orange that we saw in the 70's, a more mellow, rusty, orange. We are also seeing brown and blue. Furnishings are blue mixed with brown. Style is a more contemporary and streamlined look. 2. What do you see as trouble spots for a corporation when addressing leased spots and redesign? The waiting area is the non-discript so it can be designed in the best way to compliment the company. The employee work area can have many space design issues to get around. The best way to get around these issues is implementing a modular design so that the work area is streamlined and neat. 3. What importance does design have in the profitability of a company? Design sets the tone and is the first impression. When you have a well designed space it is more productive and profitable.]]> Fri, 21 Nov 2008 09:25:23 -0600 http://www.wi-bizlaw.com/blog/index.php?number=45#comment http://www.wi-bizlaw.com/blog/index.php?number=44 I hear the same complaint over and over: ˇ§I canˇ¦t work any harder, but I am not making enough to do what I want with my businessˇ¨ Itˇ¦s true, sometimes you canˇ¦t work any harder, and additional employees arenˇ¦t the answer. It isnˇ¦t enough to work hard. We need to work SMART. Working smarter means really looking at your Profit and Loss, and seeing where the money goes. If you need help deciphering your Profit and Loss statement, give us a call. Sandy and I are glad to sit down with you for a half-hour for a very quick ˇ§lessonˇ¨. Some of the biggest opportunities to save money are by taking a look at those recurring, monthly expenses that we all have in our businesses. Because we spend roughly the same amount of money on them month after month, we can save not only for this month but for all future months when we can control these expenses. I have been talking to business people and reading books and articles by the ˇ§Great Minds of Businessˇ¨ because I know if I can help by sharing (and translating) the ideas of others, then I am helping your business work for you. Here are some general areas to examine within your business, combined with ideas from people in business and the academic experts: Communications: The cost of telephone systems, pagers, cell phones, web hosting, and internet connections have all dropped drastically with increased technology and competition. „h Re-evaluate your needs: do you need all those phone features? Can you drop a few lines? Is it necessary to have both a pager and a cell phone? Do you honestly need that Smartphone or I-Phone? „h Donˇ¦t be afraid or embarrassed to talk prices to a vendor. Ask your existing vendor to re-price your package. Ask for the same incentives as the new customers! We all know it is more economical to keep a customer that getting a new one. You might also be able to save by paying for these features a year in advance; ask your vendor to see if this applies. „h Examine your internet bill, cell bill, and land line bill in detail. I know of one employer who provided ˇ§push to talkˇ¨ cells for his employees to use on the job. By spending fifteen minutes looking at his most recent bill, he discovered that not only were people using their push to talk cell phones to talk to a co-worker across the room, but two people were consistently using the phones after quitting time. „h One business expert cut both her phone bill and web hosting bill in half, by signing up for a free incoming fax line at www.efax.com. She could then drop an entire phone line. „h Another person disabled two websites that werenˇ¦t paying back, an really looked hard at the use of Google Adwords and internet Yellow Pages. While there are a number of ˇ§freeˇ¨ internet providers, be wary of changing your e-mail too often or having a ˇ§Plain Janeˇ¨ email address because it makes you harder to find and your customers will always keep your old card with the old email address! Insurance Workers compensation, health, professional liability, errors and omissions, directors and officers, liability, building, auto and personal umbrella ˇV these are only a few of the insurance needs you and your business may have. Some of the great ideas I have discovered this past month include: „h Meet with your agent and review your coverage. Are you over or under covered? Personally, I was shocked when I discovered that my former agent had only my home office covered for contents damages or embezzlement! While in my case my insurance bill went up after insuring the "real" office, I had protection from devastating possible expenses. „h Do you have multiple agents covering multiple policies? See if there any savings by going to fewer vendors or combining policies. You might be able to change dollar limits or increase your deductible, but if you do this, you need to keep the long term in mind. There are good reasons to carry adequate insurance. „h Pay as you go for workman's compensation. The Hartford recently introduced a new pay-as-you go program (it even integrates with Quickbooks!) that allows you to pay workman's compensation after every payroll, instead of trying to come up with mega dollars every quarter. Rates are the same for all workmanˇ¦s compensation policies in Wisconsin, and using a pay-as-you-go may mean you don't have to tap into a loan or line of credit and pay interest simply to keep your required insurance up to date. Advertising Instead of spending money on costly advertising, try two other things first: „h Leveraging your customer or client base for referrals. Ask your customers or clients directly for referrals. I know most of us are shy about doing this, but try it anyway. Offer some kind of bonus, such as a gift certificate or an hour free of work for each new referral who becomes a client. Word of mouth advertising has been proven extremely effective! One CPA I met at a convention two years ago telling his clients that the client with the most referrals during tax season would get "a chance at a million dollars." The prize in this case was actually a 10Uery ticket and was a big let-down for the "winner," so make the prize worth something. Remember, however, that the IRS has a limit on "client gifts" of $25 per customer per year. „h Public relations exposure. To get publicity, send out press releases on some of the latest industry products or trends to local newspapers, news stations, and radio. Do some research on what shows would cover tips on your topic and make sure the host knows you are an expert on the topic? Being mentioned in an article or on the news will build credibility, exposure, and will add recognition for your business. Contractors can get together to make repairs for a homeowner in dire straits; retailers can have silent auctions for a hot item with the proceeds going to charity. Work with established charities in the beginning; they are often well-connected with the media and soon you will be getting free exposure. „h If you do need to advertise, be sure to spend the money on media that brings the biggest return. Find a method to track the method of advertising to determine the dollar value of the new projects or sales versus the cost of the ad. Some experts have suggested using coupons, or mention Bill sent you to tie the new revenue to the specific advertisement. Office Supplies and Printing The office supply closet seems to be one of those black holes in many companies; supplies disappear so fast you wonder what happened. . „h One of our solutions is to digitize as much as possible so that paper, pens, paperclips, and other supplies are needed less often. „h Another idea I came across was to create a campaign to help people get used to reviewing document in the computer without printing. An example message of the campaign would be to use your print preview button every time to help avoid printing mistakes (saving paper and trees). „h When you need to print larger quantities of a document. always print less than what you think you'll need. You'll no doubt find a typo or want to change the wording before the document inventory is used up. Vistaprint.com is very small-business friendly; for example you can print very small quantities of letterhead or promotional items. Vistaprint also offers every customer 250 free business cards with or without a purchase. „h Office Max and Office Depot both have campaigns that give you a substantial percentage off purchases. The cost of this membership is free, so it is not like joining Sam's Club. Quill.com offers free shipping for orders over $45, and it is much easier for me to have the UPS man bring 5 cases of computer paper to the office than it is for me to spend time and gas to pick up from a store. Postage Saving on postage is easy! Remember that a trip to the post office uses time and gas, and takes you away from being ˇ§on the job." „h Email it instead if you can and if not use a flat-rate Priority or regular post instead of overnight or FedEx or UPS. I receive so many things that people elect to overnight to me (simply to impress me, maybe?) that are just not a necessary expense - I know we can save a lot-in this area. „h Printing your own postage saves time and gas. and the Postal Service gives a discount for Priority and Express items that are printed on the computer. Endicia.com and Stamps.com both have great monthly fees and an easy to use program that integrates with your address book or QuickBooks. The Post Office will also pick up large packages or mass mailings for free. Find out more at usps.com. Rent and Utilities The need for office space has changed dramatically in the last ten years. Many of us work at home, telecommute, or have gone green and reduced paperwork so much that we need a lot less space to work. If you have too much office space. you might consider subleasing if your rental contract allows it. or even swapping to a smaller space if your landlord is willing. If you are leasing, it might be time to consider purchasing a building so that your rental money goes into an asset instead of an expense. You may also be able to relocate to another part of town and save big on rent. There may be some real deals in our area with all the new commercial building going on; if you keep your eyes open; you also may be able to buy a residence and have it rezoned. Talk to a realtor for more information and remember not to be shy about asking for price cuts on rentals. Landlords will often take less in rent than have the space be empty. To save big on utilities, there are many green ideas available: „h Changing all your light bulbs to CFLs, keeping computers turned off and unplugged when not in use (or using an energy saving "smart" power strip). „h Remove cell and other electronic chargers from the plug when your item is charged to prevent the constant drain of energy. Unplug the "instant-on" TV when away on vacation. „h Get employees on board with these changes by put a program in place in the name of saving the earth, and challenge them to see what ideas they can come up with to green up your workplace. Autos and Gasoline „h Plan your errands using Mapquest.com. This website will give you the shortest route to your various destinations, which saves gas. By combining multiple errands into one trip, studies have shown an „h increase in vehicle efficiency and Mapquest.com will figure that out for you for free. plus print out either a list or a map to make it even easier. „h Assess your vehicle needs. Do you need to drive that huge "duelie" or would a regular or compact pickup do the job? Should you lease that Lexus? or would you be just as happy with the savings from buying a used Honda? Remember that children do fit into vehicles with better gas mileage than a minivan! „h If you need a spiffy vehicle to impress a client, consider renting one for a day or a week. „h Make sure your vehicles are well maintained so they operate efficiently. I asked Jared Pinkalla, who owns Pinkalla Auto Solutions about some of the benefits of regular maintenance, and he said that a well-maintained vehicle was not only safer (lower insurance premiums), but usually needed fewer expensive major repairs over the life of the vehicle. Pinkalla Auto has also offered 10% off labor to "our family," and all you need to do is call for an appointment at (262) 554-1170 and mention you are part of the family to get the discount and the benefits! „h Don't waste deductions. Keep a mileage log - the current deduction rate is 68.5 cents per mile ˇV but you won't get the deduction without a written mileage log. We have free mileage logs to help you so ask for one if you need. Keep track of little trips to the bank and post office too. Keep business meal receipts, with the client name, topic of discussion and date written on the back. Little deductions add up quickly. Every business is different. and I am sure you have ideas too. Don't hesitate to call and share them! However, the real key to controlling expenses begins with an examination of your monthly Profit and Loss Statement, and Sandy and I are very willing to help you get the most out of this very important report. Call if you need help with that, and we will get you up to speed in no time. As always, we are here to help. Stay Brave Char Eleene Mano, CPA, LLC 4810 Northwestern Avenue Racine, WI 53406 262-554-0321]]> Tue, 11 Nov 2008 10:04:32 -0600 http://www.wi-bizlaw.com/blog/index.php?number=44#comment http://www.wi-bizlaw.com/blog/index.php?number=43 We are talking with Benita Heddle, a floral designer at the Downtown Racine flower shop, Flowers by Walter. JBS: “Benita, What makes a business stand out in terms of how they decorate?” Benita: “I think for Christmas or any occasion whether it be a Thanksgiving event or just the fall in terms of holiday decorations. It is important to have a theme in the room, house or in the office. You can tie that in with either a color theme or a particular type of flower. If the theme is consistent and its something unique then generally you’ll find that it will stand out and catch the eye, its not something that you see everyday so and when it has a unique touch that also sets it apart from all the other decorations that you see.” JBS: “What is the trend in tree dressing at this time?” Benita: “In terms of the trend in tree dressing, I’m going to give you a different scoop on that every year. I suppose it changes in America but from an Australian perspective, which is where I am from, tree dressing is similar to decorating. You stick with a theme, personally, I think something contemporary and unique not your usual reds and greens. If you stick with colors then you might have a blue and silver theme but it does not always have to be everything in that color. One color with some accents in another color tends to stand out. It can be anything from live dressings to artificial or a combination of the two. It just depends on your theme. It is a trend back home in Australia, which I am going to try to bring to Racine, Wisconsin.” JBS: “How can a business prolong the life of a tree?” Benita: “I think the most important thing is to find out what type of tree or plant it is. You can do research on the Internet to find out the exact details of what the plant requires. Whether it is an indoor or outdoor plant will depend on how much water and how much natural sunlight it will require. I think that the better understanding you have of the plant then that will help you care for it. Then you will be diligent with the instructions you find.” If you would like to talk to Benita for decorating advice, you can reach her at; Flowers By Walter 503 6th Street Racine, WI 262-633-7707]]> Tue, 11 Nov 2008 08:59:36 -0600 http://www.wi-bizlaw.com/blog/index.php?number=43#comment http://www.wi-bizlaw.com/blog/index.php?number=40 First, are you spending less than your company’s earnings, thereby opening up the opportunity to invest in outside operations? Secondly, when you use excess earnings to acquire outside interests, are they invested in operations that are counter-cyclical to your operations? Third, if you own a C Corporation that throws off significant cash flow, are you talking to your tax advisor about the election of an S Corporation status? Do you know the 10-year rule on the embedded capital gains in the C Corporation? Will you be able to avoid a level of taxation of distributions of cash flow? An election is not fitting for all situations. Always consult your tax professional before making such an election. 4. Are you considering the sale of a portion of the company to an Employee Stock Ownership Trust after conversion to an S corporation? 5. Are you considering a sale of a minority interest to outsiders or key employees? 6. Are you consulting on the achievement of maximum financial results? 7. Does the company have excess account receivables or inventory? Appropriate advice and counsel from a team of professionals will build value in your business.]]> Mon, 13 Oct 2008 13:06:15 -0500 http://www.wi-bizlaw.com/blog/index.php?number=40#comment http://www.wi-bizlaw.com/blog/index.php?number=39 Pat Fogarty,CPA Pat Fogarty, a prominent CPA in Racine, Wisconsin lists his top three mistakes that businesses make in regards to their records. 1. Keeping no records or bringing in a box of receipts for the CPA to straighten out is the biggest mistake that businesses make with regard to their records. This is a nightmare for the accountant and costly. The client receives the bill and is upset at the cost, not considering all the time and money that was spent chasing down the missing records and/or sorting through receipts. Also, Mr. Fogarty warns that if you keep no records you are totally liable to what the IRS says you owe! 2. Not making a careful distinction on business and personal expenses. In regards to checking account and credit card usage there must be a definite line between personal and business expenses. 3. Errors in depreciation calculation is the third biggest mistake businesses make with regard to their records. Depreciation reduces the value of an asset as a result of wear and tear, age, or obsolescence and is a non cash expense. Most assets lose their value over time (in other words, they depreciate). Mr. Fogarty also warns of the temptation to trade in an owned business vehicle for a leased business vehicle. It is not a smart decision because the transaction becomes a sale of the owned vehicle and triggers a tax on the gain.]]> Wed, 24 Sep 2008 12:34:09 -0500 http://www.wi-bizlaw.com/blog/index.php?number=39#comment http://www.wi-bizlaw.com/blog/index.php?number=38 You are in a panic. What you thought was a trade secret is in question. 1. Keep it simple. Focus on a functional identification and protection system. 2. The company needs to police the trade secret system periodically. 3. Even if you have no agreement with the former employee about trade secrets, consider state statutory remedies and common law relief with such theories as breach of duty of loyalty and fiduciary responsibility, & computer fraud and abuse act. 4. There is a very state specific area. If you are a national company, you need to review the appropriate state law. 5. Do not seek relief from the former employee immediately. Review with an attorney whether or not you properly identified the trade secret, restricted access to it and other protocols. Will there by irreparable harm to the company? The defense to a company claim will look at the shelf life of the trade secret. Is this a secret that can be reversed- engineered with a product already on the market? 6. Can you demonstrate: a) uniqueness of the information? b) the money and resources you invested in the trade secret? c) the success in the market or in the design to prove its status? d) does the trade secret give a competitive advantage in the workplace? A company’s creation of a trade secret is just a start. Proper protection of the trade secret takes thorough thought and implementation over time. Protect your business by periodic review of this asset protection.]]> Fri, 19 Sep 2008 12:20:54 -0500 http://www.wi-bizlaw.com/blog/index.php?number=38#comment http://www.wi-bizlaw.com/blog/index.php?number=36 Clarion Hotel 5311 S. Howell Avenue 7:30 pm/Doors Open at 6 pm 262-797-6722 $25 advance/$30 door/ $35 VIP]]> Mon, 04 Aug 2008 11:16:16 -0500 http://www.wi-bizlaw.com/blog/index.php?number=36#comment http://www.wi-bizlaw.com/blog/index.php?number=35 Doors open at 4 pm 2700 9th Street Sclader building Winthrop Harbor IL 847-477-1596]]> Mon, 04 Aug 2008 11:09:27 -0500 http://www.wi-bizlaw.com/blog/index.php?number=35#comment