You have taken the necessary steps to create an updated Estate Plan for your heirs and beneficiaries, but there is a lot of information they will need to know that is not necessarily included in a Will or Trust.  An easy solution is to write a letter of instruction to complement your Will, which can provide your heirs with guidance and spare them time and aggravation if you die or become incapacitated.

A letter of instruction is an informal, cost-free personal document, which is not legally binding but it supplements your Will with important information.

Here are ten tips on how to write a letter of instruction to your heirs:

1. Specify location of important Documents such as your Will, Insurance documents, Deed, financial statements, and birth certificate.
2. Specify the location and approximate value of important assets such as bank accounts, investments, and insurance policies.
3. Name and phone numbers of professionals such as attorney, financial advisor, accountant, and insurance agent.
4. Passwords and Pin numbers for online accounts, including credit cards.
5. Leave phone numbers to banks that may hold safety deposit boxes for you.
6. Instructions on how you want sentimental objects to be given out.
7. List of people and organizations that should be notified in the event of death.
8. Pre-paid Funeral arrangements or instructions for funeral wishes.
9. A personal note to family members. Give your heirs a personal message by telling them any last thoughts or hopes you have for their future.
10. Make copies of the letter for your attorney, executor, and leave one at your home, making it easy for your beneficiaries to access.

Once created, be sure you review and update your letter once a year to reflect any changes.

Questions regarding your Will or other Estate Planning documents, contact Charles Bratton at Rothamel Bratton. 856-857-6000.

CNN Money recently posted an article explaining the government s hope to launch a pilot program to turn government owned foreclosures into rentals properties.

The program, cited by Federal Reserve Chairman Ben Bernanke, would sell foreclosed homes currently owned by Frannie Mae and Freddie Mac in bulk to investors, who would then turn them into rentals.

With foreclosed homes selling well below market values, they have had a significant effect on the housing crisis and according to Lender Processing Services, there are close to an additional 2 million homes in the late stages of delinquency.

“I think a program like this could have a significant impact on the real estate market”, stated Real Estate Attorney and partner John Rothamel. “This initiative will remove foreclosed homes from the active inventory, which will help preserve appraised values within communities.”  In addition, “it offers an answer for the homeowners who are being displaced as a result of their foreclosure and are looking for alternate housing”.  “If rolled out effectively, Bernake’s proposal could kill two birds with one stone and begin moving the real estate market into recovery.”

As reported in the CNN Money article, the agency is not releasing details on how the rental program will work, but is saying it is “proceeding prudently but with a sense of urgency to lay the groundwork for the development of good initial transactions in early 2012.”

Read the full article posted by CNN Money here.

What can real estate investors do to protect themselves against creditors and potential plaintiffs?

As many people know, real estate is a risky venture.  Not only is the market uncertain, but the owner of an income producing property is constantly exposed to potential claims by tenants and creditors, both personal and business.  Most real estate investors will take the first step and place any investment properties into a separate entity, typically an LLC, for the purpose of protecting their personal assets from any investment-related claims.  What many investors overlook, however, is the liability this creates between the investment properties themselves.  By holding all properties in the same entity, the creditor of any one property has access to the combined equity of all the properties.

An attorney familiar with debtor-creditor laws can help to protect against this by using different entities and financing structures to isolate the liability created by each individual property.  As is typically the case, having protections in place can help to avoid large losses in the future. To learn more about protecting yourself, contact Rothamel Bratton at 856-857-6000.

If  you have a legal question, post a comment or contact us through the website and see your answer appear on our blog.

Protect You and Your Loved Ones!

Rothamel Bratton is pleased to offer TWO free public seminars next month! Click the event link to sign up directly through the website or contact Tina at the Haddonfield office to reserve your seat. 856-857-6000

Seminar one:

Audience: Public

Topic: Long Term Care and Asset Protection

Date: Feb, 1st, 2012

Where: Little Tuna, Haddonfield, NJ

Description: Anyone who is interested in learning about Long Term Care and Asset Protection as it relates to Long Term Care, this is the seminar for you. Click the link above to reserve your seat.

Cost: Free

Seminar Two:

Audience:Public

Topic: Wills and Estate Planning Workshop

Date: February 9, 2012 6:00pm

Where: The Mansion at Main Street, Voorhees, NJ

Description:You are Invited to a Free Wills and Estate Planning Workshop provided by experienced Estate Planning Attorney Charles Bratton. Some topics discussed during this workshop include how to make sure your assets pass to your family and not creditors, the State,  or IRS, know whether a Living Trust or a Will is adequate protection for you, learn how Powers of Attorney work and which ones work, how to minimize or eliminate Federal and New Jersey Estate Tax, how will New Jersey’s death tax impact your family, how to use Medicaid to pay nursing home expenses, how to protect your assets from long term care cost, and how to effectively use a trust to protect assets for your heirs.

Cost: FREE

If I am facing a foreclosure and I have been unable to obtain any relief such as a short sale of the property or a loan modification to reduce current monthly obligations on the existing mortgage, what alternatives do I have?

In this tough economic environment, we hear these issues from our clients consistently.  I advise clients that the answer is dependant upon their goals.  By this I mean that our clients typically fall into 2 distinct groups, (a) they desire to stay in the home but cannot continue to make full payments for the mortgage(s) or (b) they are willing to leave the home but are concerned about the effects of doing so on their credit, judgments that may be levied against them and generally their economic future.  As a bankruptcy specialist, I try to make clients understand that there are options.  Bankruptcy being one of those options, however, there are non-bankruptcy options including a deed in lieu of foreclosure (giving the property back to the bank but being relieved of any future obligation associated with the prior debt), loan modification (negotiation with the mortgage holder to reduce the monthly obligation  by way of reduction in interest rate, reduction in monthly payment amount but keeping the existing mortgage in place and staying in the home).  If these options fail, then it is important for clients to understand that there are two primary types of bankruptcy available to individuals – Chp 7 (liquidation) and Chp 13 (reorganization).  Depending on their income and their desires with regard to the property, each offers benefits.  The primary difference in regards to effect upon the home is that under a Chapter 7, any obligation that would be associated with the mortgage, including a judgment in foreclosure will be avoided in terms of the personal obligation, but after the 90-day stay (essentially a pause in legal proceedings) expires, the home will again be available for foreclosure but without any ability for the mortgage holder to seek personal judgment against the debtor.  With a Chapter 13, the home can be saved, the mortgage arrears paid off in the Chapter 13 and the person will retain the home.

For more information or to schedule a consultation, contact Rothamel Bratton Bankruptcy Attorney in, Haddonfield, Philadelphia, and Lawrenceville. 856-857-6000

According to Bratton, “Asset protection should not be limited to when one dies. Individuals need to think ahead and consider a time when nursing home care is required. There are alternatives to help preserve assets by setting them aside to family. Since these matters are highly personal, it is hard to generalize what may be the best options. We recommend a consultation to explore clients’ unique situation.”

Due to ever-changing laws, having a specialized attorney can be a client’s biggest asset. “Most importantly, clients need to have a plan in place sooner rather than later and should review their plan when changes in relationships or economic circumstances occur.”

Check back next week for part four and five.

In addition to re-branding and re-organizing key information, the firms new web presence puts a strong emphasis on enhanced information, user-friendly interface, and readily available resources.

“We felt it was important to communicate and share Rothamel Bratton information with our clients and professional community in the most accessible way.  We are excited about the many new ways rothamelbratton.com will allow us to communicate with you. The new resources and content makes our website more informative than ever,” remarked partner Charles Bratton.

Some of the key features of Rothamel Bratton’s new site include:

• New user-friendly Homepage: In addition to new features, the homepage has been redesigned to easily navigate practice areas, blog news, and prominent information.
• E-newsletter Signup:  Rothamel Bratton’s e-newsletter signup allows clients and partners to sign up for a monthly email newsletter. This informative monthly update keeps you in the know of our latest events, seminars, and important news and tips relating to our areas of law.
• Events and Seminar: Viewers can review dates, locations, and descriptions for upcoming events and seminars. In addition, the event links to an easy sign up page so users can reserve a seat right from the website.
• Free Articles: Download and print valuable free articles on a variety of legal topics with the click of a button. New articles will be posted monthly.
• Blog: It is targeted to the firm’s clients, potential clients, and the business professionals. Its content, posted weekly, includes news about the firm and its many events, community interest items, practice area related topics, and updates on the activities and accomplishments of Rothamel Bratton attorneys and staff.
• Request a Speaker: Rothamel Bratton is dedicated to assisting professionals in our community with over 10 years of on and offsite seminars and continuing education assistance. Upon request at rothamelbratton.com, our attorneys present educational seminars to non-profit organizations, employers, support groups, associations, special interest groups, Realtors, accountants, attorneys, and financial advisors in our community.

“The new site offers a fresh look and is an important part of the firm’s commitment to providing dedicated service to our clients,” said partner John Rothamel. “This is about building relationships with our users by providing advanced resources and making the site easy to navigate. “

About Rothamel Bratton LLC

Rothamel Bratton LLC is a New Jersey and Pennsylvania law firm providing focused expertise, innovative thinking and unprecedented service. Their professionals have a diverse background that includes the representation of thousands of homeowners purchasing and selling homes, estate planning and administration, tax planning, elder law, asset protection, disability planning, representing small to large corporations, bankruptcy, business succession planning, commercial real estate, family law, mergers and acquisitions, immigration, civil litigation, workers comp., SSI, SSD, DUI and municipal court, employment law, and estate litigation. Rothamel Bratton LLC offers four convenient locations in Haddonfield, NJ, Philadelphia, PA, Lawrenceville, NJ, and Chevy Chase, MD.

For more information about Rothamel Bratton LLC, visit rothamelbratton.com.

Part Two:

Q: As a real estate attorney, what does your office do to help navigate a buyer or seller through a real estate transaction? 

A: For most clients, a home is their largest assets. So, when it comes to buying or selling, having an attorney oversee the process is important. According to Rothamel, there are so many parties involved—the real estate agent, title agency, mortgage broker, inspectors—none of whom can provide legal advice. “We offer neutrality in a way that protects clients’ best interests. From the contract review to the settlement table, our team works with all parties, negotiating home inspection and related repairs, reviewing settlement documents and ensuring charges are fair, reasonable and accurate.” Having an attorney may not be required but it is a nice insurance policy to have someone who can quickly recognize and resolve any issues, and efficiently address hurdles that arise through a transaction. -John Rothamel, Real Estate Attorney

Check back Wednesday for Charles Bratton’s Part 3 question, Are there ways to protect assets from long term care costs if a parent or loved one may need nursing home care in the future?

Do you have a legal question you would like to see posted? If so, please leave a comment below and one our attorneys will answer you question right here!