| Legal Ideas and Information - July 2003 |
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Use of Family Limited Partnerships in Estate Planning
Family limited partnerships can be useful vehicles for accomplishing certain estate planning and asset protection planning goals. Historically, they were often used as an alternative to a corporation for purposes of holding real estate or as an operating vehicle for a family business because they offer limited liability protection of the same type afforded by a corporation and they are pass-through entities for tax purposes (meaning that it is the individual owners rather than the entity itself which is responsible for paying taxes on the profits and losses of the entity). However, in 1993 the IRS issued a revenue ruling which recognized the idea that valuation discounts might be available in certain circumstances when calculating the value of transferred interests in a family business entity for estate or gift tax purposes. Since that time, family limited partnerships (and recently family limited liability companies) have become the form of business entity which is most commonly used to take advantage of valuation discounts applicable to the calculation of estate and gift taxes on family real estate or business assets. Construction Defect Law: Effective April 2003
You think you have a construction defect and you want to sue now? New law requires notice process. On April 25, 2003, Governor Owens signed House Bill 03-1161 changing construction defect law. This article summarizes the new notice requirements before a lawsuit can be filed for defects in residential property. The article does not address how the law affects commercial properties or the limitations on what can be recovered from a lawsuit for defects. The term "home" will be used to describe the residential property and it encompasses single family homes, townhouses or condominiums. This article is not meant to be a "how to" guide on filing a notice of claim and readers are advised to seek legal counsel. CLUE Report Comprehensive Loss Underwriting Exchange Report
What is a C.L.U.E. Report? C.L.U.E. stands for Comprehensive Loss Underwriting Exchange. It is a comprehensive database of personal property information relating mainly to insurance claims on private property. C.L.U.E. was developed by, and is currently operated by, ChoicePoint Asset Co., a Georgia firm. What type of information is found on a C.L.U.E. report? The typical C.L.U.E. report contains information about either an insured or a property. This includes general information about the insured such as name, birth date, and sex, as well as current and previous addresses. The key information on the report is the claims history of the individual or the property. This publication is intended to provide accurate and authoritative information on the subject matter covered. It is distributed with the understanding that the publisher and distributor are not rendering legal, accounting or other professional service, and assume no liability in connection with its use. Copyright © 2003. This is an advertisement. |
IN THIS ISSUE
Liability Insurance: Proper Coverage is Critical
No matter how careful you are, don't underestimate the importance of professional liability insurance. People sue even when they don't have much of a case, and the financial drain can be crippling. Here are two actual cases and tips on how to prevent these nightmares from happening to you. Case 1: Three months after a closing, Kate received this letter from her buyer clients: "Remember when you recommended an engineer to look at those cracks in the basement? Well, they're getting worse, and we think you should have insisted on us hiring an engineer to look at the defect." Kate immediately went to the buyers' home to examine the cracks. The cracks had definitely expanded, so Kate arranged for an engineer. The buyers seemed satisfied. A year later, Kate and her broker, Dan, were now in litigation, with the buyers claiming that Kate had a "duty to insist on an engineer." Legally, Kate had no such duty, and the case ultimately would be settled. But in the meantime, there were court costs, depositions, and attorneys' fees. Dan's defense costs were covered by his insurer, because he filed a claim as soon as he learned about the case. Kate's coverage was denied, however, because she hadn't filed a claim when she received the initial letter. Kate had feared filing a claim would cause her premiums to increase. Was she right to worry? No. If your state has an endorsed or mandatory insurance program, you should be able to file a claim without fear of a premium increase. Generally, the carrier must insure all licensees in the state regardless of claims history×¢ut check your carrier's practices and the terms of its policy. Case 2: Aaron, a broker, listed his best friend's grossly overpriced property. Since it was probably worth $300,000, a listing at $625,000 was crazy, but, Aaron told himself, who knows? Meet The Attorneys
Miriam Abrams Goodman Ms. Goodman received her Juris Doctor from the University of Colorado School of Law in 1986. Her practice emphasizes Estate Planning and Probate.
Janeen R. Hill Ms. Hill received her Juris Doctor from the University of Colorado School of Law, in 1987. Her practice emphasizes Bankruptcy, Foreclosure and Eviction. |
