Condos vs. Co-Ops. vs. HOAs: Pros and Cons

Shared Ownership Housing: What's the Difference?

Condos, HOAs, and Co-Ops

Part II

Last week, we defined the differences between a Cooperative (Co-Op), a Condominium (Condo), and a Homeowner's Association (HOA).  This week, we'll compare and contrast each housing model, as well as discuss the pros and cons.

Condo vs. HOA

Similarities:

• Both are real estate purchases;
• Both can be a part of a Land Trust;
• Both are financed through Traditional Mortgages;
• Owners are responsible for paying property tax;
• Both are run by an elected Board of Directors, comprised of members of the Association;
• Both involve monthly fees to pay for insurance, maintenance, and upkeep of common areas.
• Both generally utilize "special assessments" to charge owners for unanticipated expenses.
• Both often include amenities not commonly found in single unit communities, such as pools, playgrounds, tennis courts, etc.
• Both are administered according to "the documents," which contain covenants, restrictions, rules, and guidelines for unit use.
• Both generally regulate the outer appearance of a unit.
• Both generally allow the Board to levy fines for noncompliance with any aspect of the documents.

Differences:

• With a condo, one generally owns "from the drywall in."  With an HOA, one typically owns the building, utility hook ups, land beneath the building, and the air space above.
• Generally, owner maintenance responsibilities are greater in an HOA than in a condo.
• Generally, monthly fees are lower in an HOA than in a condo;
• In an HOA, the unit owner is responsible for insuring the building itself, as well as the content, structure, etc.  In a condo, owners are generally only responsible for insuring the unit itself and its contents, rather than any structural elements.  Condo policies are usually cheaper than homeowner's policies, but the difference in cost is generally offset by the difference in fees.
• In an HOA, you generally own your parking space(s), regardless of whether they are attached to the actual building.  In a condo, parking spaces are generally defined as "limited common elements," whose use is exclusive to an individual unit.  However, in a condo, the Board generally has the power to reassign or change parking assignments, whereas in an HOA, they generally do not..  
• Both are generally subject to State Statute.  However, most States have more stringent statutes for HOAs than they do for condominiums.  
• With an HOA, any "yard" area generally is part of the owned land.  In a condo, all green space is considered part of the common elements.  (Although most HOAs regulate how the green space may be used, and what type of fixtures or amenities are allowed in a yard.)
• HOAs generally give an owner greater flexibility about what can be done to a particular unit.
• In an HOA, owners have no vested interest in common grounds; in a condo, all owners also have a vested interest in all common grounds and common elements.

Condo vs. Co-Op

Similarities:

• The Association owns the land, buildings, air space, common elements, structural elements, and generally, the utility hook ups;
• Maintenance of anything outside the unit is generally the responsibility of The association, and is managed by the Board of Directors.
• Owners are not responsible for insuring anything outside of their individual unit.
• Both are administered by elected Boards, comprised of members of the Association.

 Differences:

• With a co-op, you are not buying a piece of real estate; you are buying a share in a corporation.  It is considered "intangible personal property" for tax purposes.  With a condo, you are buying a piece of real estate.
• Condos are financed with traditional mortgages; co-ops must be financed through other forms of loan.
• Although both are administered by Boards, Co-op owners have a greater say in how things are done.  Almost everything that is done in a co-op requires a membership vote, while this is not true in a condo.  Because of this, Co-op Association Meetings are more widely attended than Condo Association Meetings, and co-ops generally have a more active membership.
• Statistically, co-ops have the highest percentage of owner-occupied units across all forms of shared ownership housing.
• Condos may me residential, commercial, or even mixed-use; traditionally, co-ops are residential only.
• In a co-op, you are purchasing a right to lease a particular unit, whereas in a condo, you are purchasing an actual unit.
• Co-ops generally consist of one or more apartment buildings, or they consist of land for pre-fabricated homes.  There is a wider variety of home type available in condominium complexes (garden style apartments, townhomes, apartment buildings, pre-fab units, etc.) than there is in co-op complexes.
• Monthly fees are generally highest in a co-op, as they include monthly rent as well as insurance, maintenance, upkeep, and taxes.
• Owners are responsible for paying for their own property taxes in a condo, whereas co-op fees include all property taxes.
• A condo unit may be a part of a land trust; because a co-op is not considered real estate, it cannot be placed into a land trust.  It may be a part of other types of trust arrangements.
• Condos often include more amenities than do co-ops.

Pros and Cons of Condos

Pros:

• Condominiums are good for people on fixed incomes, as the monthly fees are generally set; it is rare for a condominium to need to levy a large special assessment to cover costs of operation.
• Condos are fantastic for folks who do not want to be responsible for maintenance and upkeep.
• Application processes are governed by State Statute, and although one needs to apply to purchase a condo, there is little its Board can reject you for, other than financial issues.
• Condos are great vehicles for investors.  Most Boards do not require tenant screening, and are usually easy to operate as rentals.
• Condos generally make great vacation homes, as the Association monitors things while the unit is unoccupied, and handles any maintenance issues that may arise.
• Condos usually include all necessary services, such as trash pick-up, landscaping, etc.

Cons:

• The Board of Directors has the power to make a lot of changes without input from the membership.
• Insurance costs may be higher, as you are paying for both the overall condo plans, as well as a plan for your individual unit.
• Condos tend to fine owners for rules violations more than other forms of shared housing.
• An owner has less input as to outer appearance of his/her home and grounds.
• If a Condominium Association decides to disband, an owner may suffer an extreme financial loss.  Often, it only requires an 80% membership vote to dissolve the condominium.  Developers have been known to buy up units in order to swing a vote.  If the condo dissolves, you will generally receive below market value for your unit and share of common grounds.

Pros and Cons of Homeowner's Associations

Pros:

• Owning a building within an HOA is considered owning a piece of real estate.  The owner owns both the building and the land, as well as the air space and grounds.
• HOAs offer greater flexibility with what can be done to green space.  Although many prescribe guidelines for plantings, the owner has greater choice of what s/he can install.
• HOAs more often include a yard that is yours, as opposed to belonging to everyone in the Association.
• HOAs often provide amenities not found in typical single-family communities.
• HOAs are governed by an elected Board of Directors.  However, this Board has the least power amongst the three types of shared ownership housing.
• HOAs are good investment properties.  The monthly fees can be passed on to the tenants, and the Board will apprise the owner of any irregularities happening within the unit.  Boards usually have few screening requirements for tenants.
• If an HOA decides to disband, the owner will still be left with a valuable piece of land, as well as any improvements s/he has made.

Cons:

• HOAs have the highest maintenance and insurance obligations of the three types of shared ownership housing.
• HOA owners have no vested interest in any common elements or community amenities.
• HOAs often offer more rules and restrictions than they do owner support.
• Legally, HOAs are allowed to do little screening of potential members.  Because of this, their budgets may not be sound as those in condos and co-ops.  Statistically, HOAs employ special assessments to fund things more often than do co-ops or condos.
• HOAs are often described as having all the disadvantages of living in a single family unit, while having all the disadvantages of living in a condo.  Rules as to property use and appearance are very stringent.
• HOAs often utilize fines for minor rules infractions.

Pros and Cons of Cooperatives

Pros:

• Co-ops generally have the lowest buy-in obligations of any of the forms of shared ownership housing.
• Although owners do not build equity in a traditional sense, shares in a co-op may appreciate at greater rates than will a condo or HOA unit.
• Co-ops have the highest amount of owner input of the three shared housing types.  Co-op owners generally know their neighbors and have a sense of community not necessarily found in other forms of housing.
• Co-op Boards are allowed to do more stringent screening of both owners and tenants than are HOAs or Condo Boards.
• Co-ops are great for people on fixed incomes, as the monthly fees include everything, including tax and insurance.  A co-op resident only needs to insure the contents of their unit, similar to buying a renter's policy.  The co-op itself insures everything else.
• Co-ops handle all maintenance, insurance, and tax obligations.

Cons:

• You are buying shares in a corporation, rather than an actual piece of real property.  
• Co-ops have the highest monthly fees of all types of shared ownership housing.
• You cannot finance a co-op with a traditional mortgage, nor may you get an equity loan on the appreciated value of your shares.
• Co-ops require stringent background checks for both members and tenants.  They may deny ownership or tenancy for just about anything not specifically prohibited in the Fair Housing Act.
• Co-op shares do not pass to heirs like other forms of property.  Instead, they are treated similar to shares of stock.  They are subject to securities regulations. It can be more difficult for estate planning purposes.  Joint ownership of shares is also harder to set up than joint ownership of traditional properties.
• Co-ops are not the best vehicles for investments.  Because of the screening processes, they are harder to rent.  The Association pretty much has free reign to reject potential tenants.  
• A land trust and a co-op are not compatible.  Like with other forms of stock, they can be placed in certain types of trusts.  But because they are not considered real property, the Land Trust model cannot apply.

Which Type of Property is Best for Investors?

There is no clear-cut answer as to which type of shared ownership housing is best for investors.  The most important distinction here is that a co-op is not considered an investment in Real Estate.  If you are building an investment portfolio that includes stocks, bonds, and lands, a co-op, condo, or HOA can be a good investment.  All will appreciate at different rates, and according to different variables.  Years ago, co-op shares generally appreciated more quickly than an investment in a condo or HOA, but since the "Real Estate Boom," that is no longer true.  Many infill developments are appreciating very quickly.  And units in an HOA or Condo Association are easier to "flip." Generally, buying a co-op as an investment property is less desirable than purchasing in a condo or HOA for this reason.

Again, when you buy a co-op unit, you are buying a piece of intangible personal property, rather than a piece of real estate.  Thus, the tax ramifications are different, and should be thoroughly discussed with an accountant or attorney.  A co-op may help balance your tax obligations, or it may increase them.

We believe strongly in the Land Trust model for Real Estate Investors.  A co-op is incompatible with this model.  If you are building a portfolio based on the Land Trust model, you may want to stick to condos and HOAs.

Which Type of Housing is Best for Owner-Occupiers?

If you are looking for property to live in, either as your primary home or as a vacation property, any of the three types can be best, depending on your individual needs and desires.  We have provided the pros and cons of each housing model.  You will need to weigh these against your own considerations. This will also depend on where you are looking to purchase.  The New York City area has a higher percentage of co-op units than anywhere else in the US.  Co-ops in New York are generally cheaper than condos or co-ops, and they often appreciate faster.  Often, their rents are more reasonable than rental housing, but the ongoing costs are about the same. That is not necessarily true in other parts of the country.

If you are looking to buy into a shared housing community, but you have little available to put down, a co-op might be the best choice for you.  If you are looking to finance through traditional mortgages, an HOA or condo will be a better choice.  

Summary

In this two-part article, we examined three different types of shared ownership housing: condominiums, Homeowner's Associations, and Cooperatives.  We defined each model, looked at the similarities and differences, and discussed the pros and cons.  We also discussed considerations for property investors.

Here at the Law Offices of Heath D Harte, we believe the most important consideration is how an individual property will meet your individual needs.  And in order to determine that, you need to know the ins and outs of each model.  All three models have benefits and drawbacks.

Our own real estate portfolio tends to rely on condos and HOAs, rather than co-ops.  This is because we are property investors, we use the Land Trust model whenever possible, and we like to renovate and flip.  We tend to focus on real property rather than shares in a corporation when building our own investment portfolio.  We also focus on properties in more suburban areas, where co-ops are not as common.  However, your own investments may differ, and a co-op may be a valuable addition.

The most important consideration here may be what is contained in the community's documents. These documents need to be reviewed with a fine-tooth comb before any purchase is finalized, as they dictate how you may renovate, use, and sell your property.  Having these documents review by your attorney is beneficial.  Your attorney can advise you as to how the purchase will fit into your overall estate plan.

As always, we are here to help.  We have an extensive real estate law practice, and we understand the nuances of both the models and the documents.    Whether you are looking for an investment or a home for yourself, we are here to advise and help.

Shared Ownership Housing: Condos, HOAs, and Co-Ops

Shared Ownership Housing: What's the Difference?

Condos, HOAs, and Co-Ops
Part I

Condominiums, Homeowners Associations, and Cooperatives are all forms of shared real estate ownership.  From a living standpoint, these three entities may appear to be the same.  But from a legal standpoint, there are significant differences between condos, co-ops, and HOAs.  Today, we're continuing our series on Real Estate Law by discussing these differences.  It is important to understand the differences BEFORE investing in any one of these forms of property ownership.

What is Shared Ownership Housing?

There are many types of real property available today.  There are apartments, single family detached houses, townhouses, duplexes, condominiums, cooperatives, cabins, mobile homes, and prefabricated units.  With the exception of the single family detached house, many forms of housing today involve some form of shared ownership. And today, you'll find many detached houses are also a part of an association, especially in newer developments. As you enter many subdivisions, you will see signs that say "a deed restricted community,"  indicating some form of shared ownership housing is in effect.  

In a typical subdivision, there are streets and sidewalks.  There may also be parks or other types of green space, playgrounds, pools, trails, or tennis courts.  These may be open to the general public, or their use may be restricted to those that live in that community.  If the use is restricted at all, chances are, the subdivision employs some sort of shared ownership.  Those elements are owned, paid for, and maintained by those who share in their use.

Conversely, if amenities are for public use, chances are they are owned and maintained by the local government, funded through local taxes.  Even though they might require a "resident pass," they are publicly owned.  If the City oversees the amenities, chances are they are NOT a part of a shared ownership community.

Shared ownership housing is typically controlled by a Board of Directors.  There are documents that define who owns what, and there are bylaws and regulations by which all owners must abide.  There are generally monthly or quarterly fees that all owners must pay.  These fees pay for maintenance and insurance of the shared areas.

Currently, in the United States there are three common types of shared ownership housing: Cooperatives (commonly called co-ops), Condominiums (commonly called condos), and Homeowner Associations (referred to as HOAs).  All three can be made up of a wide variety of property types. They may be residential or commercial in nature.  But there are some significant legal differences amongst the three types of property.  It is important to know the differences BEFORE you buy in.

What is a Homeowners Association (HOA)?

A Homeowners Association (HOA) is an entity made up of homeowners within a defined area.  This area is defined within the Homeowners Association Documents.  These documents also contain the bylaws, covenants, restrictions, and rules by which all members must abide.  The Association itself is generally a Non-Profit Corporation.  

Each owner buys a lot (or lots) within the defined area.  That lot may or may not include building(s). If the lot is unimproved, all improvements must follow the guidelines and restrictions set in the Association documents. The individual owns, maintains, and insures everything on that lot.  And when the person buys into the Association, he pledges to uphold all guidelines and restrictions contained within the HOA documents.

The Association itself is governed by a Board of Directors, elected by the members of the Association.  This Board is responsible for upholding all of the covenants, restrictions, and regulations contained in the documents.  

Most HOAs also contain some common elements.  Those elements are owned in their entirety by the HOA.  Lot owners own no shared interest in those common elements.  They just have a right to enjoy their use, as dictated by the HOA itself, and as defined in the HOA documents.  Depending on the development, common elements may be restricted to things like roadways, sidewalks, and mailbox stations, or they may include things like swimming pools, playgrounds, and barbecues.  

All owners are responsible for paying monthly fees to the Association.  Those fees cover maintaining, improving, and insuring the common elements.  Individuals are responsible for paying to maintain, insure, and improve their own lots in addition to paying the HOA Fees.  Some HOAs include general landscaping maintenance on the individual lots; in others, lot owners are responsible for maintaining their own yards, including cutting any grass.

Although many HOAs consist only of single-family detached homes, others consist of a variety of structures.  Some townhouse communities are a part of a Homeowner's Association.  In addition, many office parks have adapted an HOA model, where an individual owns both the office building and the land on which it sits.  

Owners in an HOA own individual parcels of real property, each with its own individual parcel number.  They are responsible for individually paying all property taxes on their lots, as well as paying their share of taxes for common elements.  (Taxes on common elements are figured into the monthly HOA fees, rather than being individually assessed.)  And although they are governed according to the documents, those documents do not get recorded.

With an HOA, the Association owns all common elements in their entirety; lot owners do NOT own a share of common grounds.  And the HOA Board may restrict the usage of these common elements. If a member is derelict in paying any fees or fines, his rights to common elements may be suspended. 

HOAs are generally governed by State Statute, and the statute supersedes what is written in the HOA Documents.  An HOA is subject to all provisions of the Fair Housing Act.  Your purchase application may need to be approved by the Board of Directors, but generally can only be rejected for financial reasons, (i.e. you do not appear to have the financial resources to pay the Association fees.)

What is a Condominium (Condo)?

With a condominium, an individual owns a particular unit within a larger complex.  That unit may be a townhouse, a half duplex, an apartment, or even a mobile home.  However, one does not own the land underneath the building, or even the building itself.  (There are some exceptions to this, which will be discussed later.)  Typically in a condo, one owns "from the drywall in."  The land itself and all improvements typically are owned by the Condo Association.  The unit owner is responsible for insuring and maintaining everything within the walls of the unit; the Condo Association is responsible for insuring and maintaining everything it owns.

The specifics of what a unit owner owns and maintains, versus what the Association owns and maintains, is outlined in the Condominium Documents.  Like with an HOA, these documents also contain the Covenants, Restrictions, and Bylaws for using your property, as well as the common elements.

In some states, a condo may be platted as a "Land Condo."  In those instances, the Association only owns the land; the parcel owner owns the actual building and all improvements.  In these cases, the parcel owner has a higher maintenance and insurance obligation.  In other cases, the Condo documents push maintenance responsibility on to the owner.  It is important to read the Condo documents BEFORE finalizing a purchase, so that you understand how much of a maintenance obligation your condo requires.  

In a Condo Association, each owner actually owns a share of the common elements, including the actual building, the grounds, any shared utility connections, and any amenities, such as a pool, a playground, or green space.  All of these are actually administered by the Board of Directors.  The Association also handles maintenance of the grounds, including landscaping and mowing grass.  

With a condo, although you may not own an actual building, you DO own a piece of Real Property.  You are able to build equity, just as you are with non-shared ownership housing. Each parcel in the condominium has an individual parcel number, recorded in the property database.  Every individual owner is responsible for paying property taxes on their parcel(s).  Each also pays his/her share of the taxes on the common grounds.  The Condo Documents define each owner's share.  Some condos define shares according to unit size, with larger units having a larger share and a larger financial burden.  Others split the common grounds into equal shares, regardless of the individual unit size.  In this case, all owners have an equivalent share of all common grounds and amenities, and all pay equally.

Like with an HOA, Condos are governed by a Board of Directors, elected by the members of the Association.  Most states also have statutes specific to condos, and those statutes supersede anything contained in the Condo Documents.  

Condo Associations usually maintain all roadways, sidewalks, etc. within the community.  Many also cover things like trash collection and recycling.  And of course, Association Members are responsible for paying monthly fees to cover all of these costs.  Should unexpected issues arise, the Board may impose a "special assessment" to pay for these issues.  These are in addition to the regular fees, also called "assessments: in condo lingo.  Each parcel owner is responsible for paying his share, as outlined in the Condo documents.

Condominiums often have two types of common elements: General Common Elements (GCEs) and Limited Common Elements (LCEs.)  Limited common elements are only available to a selected group of owners, while General common elements are equally available for use by any of the members of the Association.  Things such as parking spaces, balconies, patios, and car ports are generally Limited Common Elements.  Often, the financial burden for limited common elements falls to an individual owner, rather than to the Association as a whole.  The Board may demand you maintain a limited common element, and if you fail to do so, they can perform the work themselves and bill it to the parcel owner.  If the parcel owner fails to pay, the Association may put a lien on the unit.

Condos are governed by what is in their documents.  And unlike with an HOA, these documents are recorded in the property database.  They become public record.Statutes are generally more stringent as to what these documents may restrict.  These documents also outline dispute resolution procedures for when an owner disagrees with the Board's interpretation of the documents.

Condos generally have some sort of screening process for prospective owners.  This process is usually more rigorous than with an HOA, and prospective owners may be rejected for a broader number of reasons.  Many Associations perform background and credit checks on prospective owners.  State statute and the Fair Housing Act define what a condo may or may not consider.  

What is a Cooperative (Co-Op)?

A Cooperative differs significantly from an HOA or a Condominium. Rather than owning a piece of "real property," an individual owns a share in a corporation or LLC.  This share gives the owner the right to lease a certain space in the building.  Legally, this is considered a piece of "intangible personal property," rather than an actual piece of real estate.  With a co-op, all buildings, improvements, and amenities are owned by the corporation, and you are buying shares in a corporation.  Usually larger shares mean the right to lease a larger unit, while smaller shares give you the right to lease a smaller unit.

Because you are not buying real estate in the eyes of the law, you do not build equity like you do in an HOA or Condo.  Co-op purchases generally cannot be financed with traditional mortgages either, but must be financed through other types of loans.  And because you own shares, rather than physical property, they pass to heirs a little differently as well.  Heirs inherit shares, just as if you left them 100 shares of Microsoft Corporation.  Legal structures such as "joint tenants with right of survivorship" are more difficult to set up.  And because you do not own actual property, you may not put your co-op shares into a Land Trust.  However, you can make them a part of a different type of trust arrangement.

Like with an HOA or Condo, the Co-Op is administered by an elected Board of Directors.  However, most co-ops have active membership meetings, and the individual shareholders have a far greater say in how the co-op is run.  More actions require a group vote, and generally more members are active in a Co-Op than in any other form of shared ownership housing.

Co-Ops are also governed according to the documents.  Ownership requires a pledge to abide by all of the covenants, rules, restrictions, and bylaws.  But unlike with Condos and HOAs, most states do NOT have statutes specific to Co-Ops.  Co-Op members are freer to apply rules and restrictions to any area the majority of owners agrees.  They have more flexibility as to what they can allow and prohibit.

Co-ops generally have a smaller buy-in commitment than do Condos or HOAs.  This is because you are only buying a share in the building, rather than buying an actual piece of the building.  However, they also have higher monthly obligations.  In a co-op, your monthly payment must include rent for your unit, in addition to monthly costs associated with maintenance and improvement.  .  Your monthly fee also covers your share of mortgage payments and taxes.  (Many co-ops do not own the building they are sharing outright; instead, each share also includes a share of the mortgage on the actual building.)

And although Co-op ownership is subject to the Fair Housing Act, co-ops have the most rigorous screening process of the three types of shared ownership housing.  Purchasing a co-op share almost always involves a background and credit check, as well as an interview in front of the Board and/or a Member Committee.  Because the co-ops have the most leeway, they reject far more applications than do HOAs or Condos.  Again, this is because you are buying into a partnership, rather than just buying a place to live.

Because of this, co-ops have fewer investors and more owner-occupied units than a typical HOA or Condo.  Many Co-Ops have leasing restrictions, and may require a tenant pass the same rigorous screening as an owner.  This can be highly beneficial when you are looking for a place to call home. However, this can be a huge drawback to an investor looking to diversify or expand his housing portfolio.

Co-ops are more often found in urban type areas, and can be great alternatives to renting an apartment.  However, owning a Co-Op unit greatly differs from owning a piece of real property.  But a co-op is great for a person looking for a small community in a large area,  Co-Op dwellers generally know their neighbors.  Many co-ops have amenities and social aspects not found in other communities.  And they probably involve the most "sharing" of any of the three types of shared-ownership housing.

Pros and Cons of Condos vs. Co-Ops vs. HOAs

This week, we looked at three types of shared-ownership housing: Condominiums, Homeowner's Associations, and Cooperatives.  We discussed the basics of each type of housing, as well as their legal definitions.  Part II of this article will discuss the pros and cons of each type.  We'll also discuss how co-ops, condos, and HOA units may fit into a Real Estate Investment strategy.

Here at the Law Offices of Heath D Harte, we believe that a property should fit its owner.  There are some wonderful elements of shared ownership housing, as well as some limitations.  We want all of our clients to be informed, and to find the best match for their needs.  As well as handling purchases and closings, we have helped individuals with issues that arise AFTER they are settled into their property.  We've seen people buy into shared ownership housing that was a poor fit from the start. This is why we want everyone to be informed BEFORE they buy.

We'd love to hear our readers' experiences with co-ops, condos, and HOA.  We'd love to hear the good stories and the bad.  We invite you to share via Facebook, Twitter, Google+, or by the comment section of this post.  You can also contact us with your stories through our website.  And of course, we hope you'll be back for the second part of this article.  (Subscribe to this blog using the link in the sidebar, or join us on Facebook, Google+, or Twitter to receive notifications for Part II of this post.)

Setting Up a Land Trust: Steps and Samples

Setting Up a Land Trust: Steps and Samples

Now that we understand the concept of Land Trusts, it's time to make things a little more concrete. Today we'll discuss the specific steps you need to take to develop your trust.  We'll also look at some sample templates that you can use to develop the trust.  As always, you really should consult with a qualified attorney when taking these steps.  

How To Set Up a Land Trust: Steps

Step 1: Draft A Trust Agreement

The second part of this post contains some sample trust agreements so you can see what a typical agreement looks like.  Although these samples are being provided to give you an idea of what a trust agreement contains, it is extremely important that you work with an attorney on this step.  Your attorney will know the specific verbiage needed in the state you want to establish the trust.  In fact, your attorney will help you to complete all of the steps described hereafter.  But it is important to know what the steps are so that you can bring the proper information and paperwork to your attorney. The next couple of steps talk about what you need to help your lawyer "fill in the blanks."

Step Two: Designate the Grantor and the Trustee

This is important: who is putting the land into the trust, and who will be the trustee? Now you may ask, aren't I the grantor?  Possibly.  However, investors often ask the seller to put a piece of real estate in trust when they contract to purchase.  When the property closes, the investor just amends the trust, naming himself/herself as beneficiary.  You personally may never take title to a property.  Rather, the property is moved into a trust pre-purchase, and the trust is amended upon closing.  In this case, the grantor is the current deed holder, rather than you.

The trustee is a very important decision.  Many entities can act as Trustee.  And the fees differ significantly according to who you appoint.  There are companies whose entire business revolves around being paid trustees for a Land Trust.  Banks, property managers, lawyers, and Investment Managers are other possible choices.    One of the biggest choices is will you use an institutional or a private trustee.  Institutional trustees usually have set fee structures, and these are usually higher than those charged by private trustees.  Costs are more negotiable with private trustees as well.

When meeting with your attorney to discuss developing the trust, you may want to inquire if s/he ever acts as a Trustee.  If the answer is yes, ask about his/her fee structures for doing so.  If the answer is no, ask who the attorney recommends you appoint as trustee.  If your attorney can neither suggest possible trustees nor personally acts as a Trustee, you may NOT have selected the appropriate attorney to develop your trust.  In this case, you may want to interview other attorneys before proceeding further.  (You can always contact us, The Law Offices of Heath D Harte.  We can help you with all your Land Trust needs.)

Remember, the trustee is the administrator or manager of your trust.  The trustee needs to be someone you can trust yourself, hence the name.  In addition, if you appoint a private Trustee, it should be a person with a different last name.  Your attorney will advise you whether the place you are setting up the trust requires that the Trustee be in the same State.  We cannot emphasize the importance of selecting the RIGHT Trustee enough.

Step Three: Name The Trust

Again, consult with an attorney while completing this step.  Ideally, you want to keep your name out of the trust.  However, in some jurisdictions, it is easier/preferable to use the beneficiaries' name(s) in the name of the trust.  If you are trying to keep ownership private, it is best to leave your name out of the trust's name.  A "classic" Illinois Land Trust generally uses a generic trust name.

Step Four: Determine Type: Revocable or Irrevocable

This is another crucial step, and will depend on your intents and purposes.  Most trusts are set up as irrevocable.  However, an irrevocable trust cannot be amended in any way.  You cannot change any of the terms until the trust expires or all its assets have been removed.

You may amend a revocable trust.  You may change beneficiaries, trustees, etc.  So if you think you're going to want to change anything at all, the trust must be set up to be revocable.  

We previously discussed the example of an investor asking a seller to put a property into trust before going to closing.  In this case, you would need a revocable trust.  However, in most cases, Land Trusts are set up as irrevocable.  Your attorney will advise you on what is appropriate for your specific situation.

Step 5: Name the Beneficiary

Again, this may not be as straightforward as it seems.  Depending on your intents and purposes, you may be the beneficiary, a corporation or LLC may be a beneficiary, or the beneficiary may be a number of people.   

The Chicago Land Trust Company has put together a sample list of "Beneficial Interest Designations" that show the types of beneficiaries a Land Trust may have.  It is embedded below:

As you can see, naming a beneficiary can be quite complex.  But a skilled attorney can help you match your named beneficiaries to your overall intents.

Step Six: Name the Director

Think of the Director as the CEO of the trust.  The Director is the person who dictates how the trusts' assets are handled.  Typically, the beneficiary is named as Director.  If the beneficiary is an LLC, typically the director of the LLC would act as the Director for the trust.  This is probably the most straightforward step in the process, and the one that requires the least amount of consideration.

Step Seven: Name Successor Beneficiaries

As we saw in step 5, naming beneficiaries can be quite complex.  Adding to the confusion is the question of successor beneficiaries.  Successor beneficiaries can be thought of contingencies, should a "main" beneficiary die.  For example, an aging parent might name a child as a beneficiary, to help that child avoid paying Estate Taxes and probate costs.  That child's child may be named as a successor beneficiary, should something happen to the original beneficiary before the trust expires.

With a revocable trust, successor beneficiaries may be changed at any time.  However with an irrevocable trust, successor beneficiaries must stay the same throughout the period the trust runs.  Thus, this is another area requiring careful thought and consideration.  And it is another area that warrants thorough discussion with your attorney, particularly if you are using a Land Trust to help structure your estate.

Step Eight: Name Successor Trustees

Just as with the beneficiaries, you want a "Plan B" in place, just in case something happens to the trustee.  A primary trustee might become ill, retire, or just up and quit.  You need a plan in place should that happen.  This is especially crucial if you choose a Private (rather than Institutional) trustee.

Again, with a revocable trust, things can be changed later.  It is much easier to replace a trustee after a trust has been formed.  But things are more set in stone with irrevocable trusts.  You cannot amend the trustee once the trust has been established.  Even with an institutional trustee, you need a sucessor named.  Companies go bankrupt or out of business; you do not want your trust to go up in smoke just because the trustee does.

An attorney can be especially helpful when it comes to finding and naming successor trustees.  This is absolutely a step in the process that cannot be overlooked.

Step Nine: Designate the State

Your particular needs will dictate in which state the trust is formed.  It is not necessary in all cases to establish the trust in the state the property is located.  In many cases, it is advantageous to set up your trust in a different state.  And of course, the state in which the trust is established will form the basis for the statutes upon which it is based.

If all the land in the trust is in one state, it may be best to establish the Land Trust in that state.  If there are properties from different states in the trust, the issue becomes more complex.  Many investors choose to set up trusts in Illinois with institutional trustees.  Investors also prefer to set up their trusts in states with clear statutes.  Some states require the trust be established in the state where the land is physically located.  This is another area in which your attorney is key.  A skilled Land Trust Attorney should make the recommendation to you, once you have presented him/her with the parcels to be included in the trust.

Step Ten: List the Trust Assets

Finally, it's time to list the real estate that will form the Land Trust.  Some people prefer to set up individual Land Trusts for each parcel of real property.  Others include multiple properties in their trust.  The decision to set up one vs. many Land Trusts will, of course, depend on your purposes.  If your primary purpose is tax management, you will want to confer with both an accountant and an attorney before finalizing any trust agreements.  If it is more for estate management reasons, consulting with an attorney will suffice.

Step Eleven: Finalize the Paperwork

The process is finally reaching its end.  Once you have drawn up the agreement, named the Trust, appointed a Trustee, named successors, designated beneficiaries, named successors, designated a Director, listed the supporting state statutes, and listed all the assets, you should have the Trust Agreement in hand, ready to be executed, as well as the Deed of Trust.  (The Trust Agreement should be dated BEFORE the Deed of Trust.)  Now it is time to get everything signed and notarized. (Of course, always read the documents through thoroughly BEFORE signing the final papers.)

Now that the paperwork is signed, it's time to record the documents.  ONLY the Deed of Trust gets recorded.  The Trust Agreement remains private, locked up in the file cabinets of you, your attorney, and the Trustee.

Step Twelve: Insure the Properties

This is the final step in the Land Trust process, and a step that many people overlook: insure the properties.  Placing a property in a trust does not negate insurance obligations.  You have done this much to protect yourself and your assets; don't forget this important final step.

Land Trust Agreement Samples

Next week, we will continue this post.  Check back to see several examples of Land Trust Deeds and Agreements.  Again, we cannot stress the importance of consulting with an attorney when drawing up your own trust.  And remember, here at the Law Offices of Heath D Harte we are Land Trust Experts.  Contact us if you want to discuss your Land Trust plans.

As always, please use the comments section below to ask any questions.  You may also contact us through Twitter or Facebook.

Happy Holidays from the Law Offices of Heath D Harte!

Happy Holidays to Our Readers!

The Law Offices of Heath D Harte would like to wish everyone a very Happy Holiday Season!  We thank our readers for spending the year with us.  In 2015, we published a variety of articles to help you understand legal issues and your rights. We laughed over the antics of stupid criminals. We gave you tips on how to handle issues.  We talked about Family Law, Father's Rights, Connecticut Laws, and Real Estate Law.

Below, you will find a list of the articles we published in 2015.

This will be our last blog posting in 2015.  We hope you will continue reading our articles in 2016. We look forward to helping you understand legal issues throughout 2016.

We wish you all a Happy Holiday Season and a Healthy Happy New Year!  See you in 2016!

• Shopping for Real Estate During The Holidays
• Real Estate Attorneys

What Is a "Free Consultation" with a Lawyer?

• Non-Adversarial Divorce in Connecticut
• Ignition Interlock Devices Now Required for DUI Of...
• Child Support in Connecticut, Part 1

Silly Connecticut Laws
Preparing Your Appearance For Court
The Top 10 Biggest Mistakes In Injury Claims

• Child Custody: Does it Mean Litigation?
• Mistakes in the Florida "Sex on the Beach" Case In...
• Fighting for Paternal Rights
• Geofeedia: Using Social Media Against You
• Five Considerations in Choosing a Lawyer

What Is a "Free Consultation" with a Lawyer?

What happens in my Initial Consultation?

Any good attorney offers a free initial consultation.  However, many people don't really understand what this first meeting is all about.

What is the Purpose of an Initial Consultation?

The purpose of an initial consultation is twofold.  First, you are there to meet each other.  You need to figure out if you and the attorney "click," and if you will feel comfortable working with that person. Does his style mesh with yours?  Will you be able to meet at a geographically feasible location?  Can your own schedule work with the attorney's hours?

Second, you need to let your attorney know why you are seeking legal help.  What is your specific legal issue?  Have you been served with papers?   What exactly are you looking for your attorney to do for you?  You need to be as specific as possible with both your needs and your expectations.  Both you and the lawyer need to determine whether this will be a good match.

What Do I Need to do?

You need to come prepared.  Bring any paperwork along with you.  If you have been served with papers, you need to bring those along.  If you are looking to initiate action against someone else, bring all of your notes, photos, and any other supporting information that might be helpful.  The more information you can bring, the better the lawyer can determine if you will be a good match to his/her skills.

Also, bring along a notepad and pen.  You should definitely be taking notes.  Tell the attorney if you have interviewed other lawyers or if this is the first.  If there are things you like or dislike in a lawyer, let him/her know.  Try to be as brief and succinct as possible, as you only have limited time.  This is your chance to ask about things like fee structures and retainers as well.

How Long Will my Consultation Take?

Typically, a free consultation lasts about 30 minutes and not more than an hour.  Most attorneys will cut you off at the end of an hour, which is why it's important for you to be organized and succinct.

Here at the Law Offices of Heath D Harte, we do not limit the duration of your free consultation.  We will not cut you off after an hour.  Rather,  our free consultation time is unlimited, and we give the client all the time that is appropriate to fully understand the client's circumstances and the options available to them.

Can I get Free Legal Advice During my Initial Consultation?

The point of the consultation is NOT to give free legal advice.  In fact, at this point, legal advice is usually inappropriate.  A lawyer should NOT give legal advice until he has reviewed the specifics of your individual case.  No two cases are the same.  The lawyer will discuss generalities, rather than specifics, during this initial consultation.  Again, the point is not to give you legal advice, but rather, to determine whether the attorney is equipped to handle your case, and to begin to establish a relationship.  If the attorney is not, he may refer you to another attorney who may be more suitable for your particular needs.

Does This Consultation Establish a "Legal Relationship?"

The consultation itself does NOT construe a "legal relationship."  The point is to determine whether you would like to start one.  Generally, the "legal relationship" begins when you decide to retain the attorney.  This may happen at the end of the consultation, or it may happen at a later date.

So is What I Say Confidential?

Yes.  Everything you say during this consultation is subject to attorney-client privilege.  Thus, you need to be honest and straightforward with the attorney during this initial meeting.

Does This Meeting Obligate Me to  Use That Attorney?

Not at all.  Think of this consultation as a job interview.  It is an opportunity to assess each other and decide if you want to establish a working relationship.  But just like interviewing for a job does not obligate you to take that job, interviewing a lawyer does not obligate you to hire that lawyer.

Does This Consultation Obligate the Attorney to Take My Case?

No.  Again, this is an opportunity to meet one another and to decide if you can work together.  A good attorney will tell you if s/he does not think s/he is the right person for the job.

How Should I Act?

Treat the consultation as you would any other business meeting.  Encourage a dialog.  Ask questions, and be prepared to answer them.  Do not expect office staff to babysit children.  Children are usually best left at home, even if the case involves them in some way.  Do not bring your lunch.  Do prepare ahead of time.  You only have a limited time; make the most of it.

Do ALL Attorneys Offer a Free Consultation?

Not all attorneys do.  This is an important question to ask when you first reach out to the attorney. At The Law Offices of Heath D Harte,  we DO offer free consultations. We realize the importance of a good attorney-client match.  However, other attorneys may charge for your first meeting.  Usually, if a Free Consultation is offered, it will be listed on the attorney's website.

Summary

In this article, we discussed the purpose of an initial consultation with a lawyer.  We reviewed what you should expect, as well as your role in the process.  If you are located in the Connecticut or New York area, and you would like to meet with us, please give us a call or fill out the contact form on our website.

Here at the Law Offices of Heath D Harte, we are committed to serving our clients.  Thus, we believe in the importance of a free initial consultation.  We want you to be comfortable working with us.  We believe that lawyers should be affordable.  We do not believe in "nickle and diming" our customers.  We handle many cases on a contingency basis, meaning many legal actions can be taken with no out of pocket expenses for the client.  And to us, a free consultation is a very important part of the process.

Non-Adversarial Divorce in Connecticut

Non-Adversarial Divorce in Connecticut

New Laws go Into Effect, October 1, 2015

Connecticut has approved two simplified procedures for non-adversarial divorces. Effective October 1, 2015, these processes can speed up the divorce process. They may also eliminate the need to appear in court.

What is Non-Adversarial Divorce?

When people think about divorce, a “War of the Roses” type situation often comes to mind.  This is an “adversarial divorce.” An adversarial divorce is one in which the couple is arguing about how to divide property, custody, etc. Conversely, a non-adversarial divorce is one in which the two parties can compromise, reaching an agreement without an all out war. This does not mean there are no disagreements. Rather, it means the divorcing parties, or more often their attorneys, agree to negotiate their differences.  

As of October 1, 2015, in Connecticut, it is also simplified process by which eligible parties can obtain a divorce within 35 days without having to appear before a judge, as long as you meet the criteria.  An adversarial divorce will take a minimum of three months and involves appearing in court.

What are the Criteria for a Non-Adversarial Divorce?

First, you and your spouse must reach an agreement that is fair to both parties and reflects the best interests of the children, (if any.)  Neither party may “contest” the divorce or “charge” the other with grounds, such as abandonment or adultery.  You must meet residency requirements, and you must file a joint petition in the judicial district in which one of the parties resides.  You also must attest the marriage has broken down “irretrievably.”

What are the New Processes?

The first process is a Non-Adversarial Divorce for those with Limited Assets.  This process shortens the process to a mere 35 days, as long as you meet specific criteria.  In addition, a judge may grant these divorces “on the papers,” which means you will not have to come to court.  To qualify, you must first meet criteria for a non-adversarial divorce.  In addition, you must meet the following conditions:

• Have been married eight years or less;
• Neither person is pregnant;
• No children were born or adopted before or during the marriage;
• Neither spouse has any interest or title in any real property;
• The total value of all property they own is less than $35,000;
• Neither spouse has a company sponsored pension plan;
• Neither spouse has a pending bankruptcy;
• Neither spouse is applying for or receiving Medicaid benefits;
• No other action of dissolution of marriage is pending; and
• There are no restraining or protective orders between the spouses.

What if I do not meet these criteria?

If you do NOT meet these criteria, the second new process may apply to you.  This process allows your attorney to file a motion asking for a waiver of the requisite 90-day waiting period.  To qualify, you must have reached an agreement as to all terms of your divorce.  You must also meet the conditions described above.  This still significantly decreases the time period a traditional divorce requires.

What are the Advantages of Non-Adversarial Divorce?

The advantages are many.  First of all, a non-adversarial divorce is significantly cheaper than an adversarial one.  You can save thousands of dollars by avoiding litigation.  Next, a non-adversarial divorce is a lot less stressful.  It allows you to retain more of a sense of control.  It also takes a LOT less time than a traditional divorce.  Fewer relationships are strained, and parties involved have a greater chance of remaining “friends” after the split.  But perhaps most importantly, it allows you to move on with your life much more quickly.

How do I Initiate the Process?

We recommend you start the process as you would a traditional divorce: by consulting an attorney.  During your initial consultation, stress that you are interested in a non-adversarial divorce.  Question your attorney about his track record handling divorces, and ask how successful your attorney has been in keeping previous cases non-adversarial.  Discuss any “problem areas” you anticipate, as well as areas in which you are willing to compromise.

Final Thoughts

Here at the Law Offices of Heath D Harte, we believe in non-adversarial divorces whenever possible.  Even if you do not think you and your partner will be able to work things out, we still recommend you attempt the non-adversarial route.  After all, that is why you are hiring a skilled attorney.  We often take potentially-contentious situations and turn them into workable ones.  We can negotiate compromises where in areas you did not think were possible.  We believe in keeping the battles behind closed doors, whenever possible, and out of the courtroom.  We celebrate the new Connecticut processes that make divorce quicker and less costly.

If your situation warrants, we highly recommend you attempt a non-adversarial divorce.  (Of course, not all circumstances dictate this route, and if yours do not, we will recommend you take the alternate path.) To facilitate this, we often start negotiations before we file the paperwork.  If we cannot take advantage of the new law, we will go back and negotiate a more traditional divorce.  But we always recommend you take the non-adversarial route, if at all possible.  

Child Support in Connecticut, Part 1

Child Support in Connecticut, Part 1 

If you are a single parent, and your child lives with you, you are entitled to collect Child Support, In Connecticut, this applies both to divorced parents and to parents who were never married. It applies to heterosexual couples and same-sex couples. Both parents are legally obligated to support their children.

Child support is not automatic though. In order to receive support, you must apply for it. If you receive public assistance of any kind, you can get free help from The Department of Social Services to apply for support. If you do not receive public assistance, you can still apply through DSS, but the process will not be free. Applying through DSS is also a long process. Because of this, many people prefer to file for Child Support through the Superior Court.

Here at the Law Offices of Heath D Harte, we recommend you file through the courts, rather than through DSS. If you file through DSS, they will be responsible for enforcing the judgment. They have thousands of cases, and yours may not get priority. You will not have any choice regarding who will be assigned to your case. Because of this, the remainder of this article will focus on how to file for Child Support through the court, rather than through DSS. Later articles will discuss enforcement and modifications.

Am I Entitled to Collect Child Support? 

You are entitled to collect support if you are the Custodial Parent, and if you obtain a Child Support Order through the Courts. Basically, if a child lives with you, you are entitled to collect Child Support. If the child does NOT live with you, most likely you are required to PAY Child Support, rather than collect it.

What if some of the children live with me, and some of the children live with the other parent? 

This situation is a little trickier. The answer is “it depends.” Each parent's support obligations will be calculated on a separate worksheet. The lower obligation is subtracted from the higher obligation. The parent with the lower obligation will receive the difference in the sums. 

What if we share custody? 

If you share custody, the Court will look at how the child's expenses are paid. They will also look at the amount of time the child spends with each parent. If you pay the greater share of expenses, you are entitled to Child Support.

What if I receive Public Assistance? 

The other parent is still required to pay, but you will not get the full amount ordered. You will get $50 per month, and the State will keep the rest. Once you are no longer receiving Public Assistance, you will be entitled to the full payment. What if the other parent lives in a different state? You are still entitled to collect Child Support. The Connecticut Courts have mechanisms in place to enforce interstate support agreements.

Is Child Support for Mothers only? 

No, child support is for the custodial parent, be that parent the Father or the Mother. If you are the Father, and the child lives with you, the Mother is obligated to pay support. Likewise, if you are a same-sex couple with children and you separate, the non-custodial parent is obligated to pay support.

How Do I Apply for Child Support? 

You must file with the Superior Court to apply for Child Support. Alternatively, you may file with DSS. We recommend the Court route.

Although you may represent yourself, we strongly recommend you hire an attorney to help you through the process. Your attorney help you gather the needed information and file with the Courts. S/he will help you with the required financial affidavits and Court Worksheets. Your lawyer can also help if there are later issues with collecting, or if you need to modify the order. If you are NOT the custodial parent, we also recommend you hire an attorney so that your obligations are fairly calculated.

How is Support calculated? 

Connecticut follows an “Incomes Shares” model. This means they will look at the child's expenses as if they were living with both parents, and will then divide that cost according to each respective parent's income and assets.

 Connecticut has regulations and standard worksheets they use to figure out the payment obligations. These are called “The Connecticut Child Support and Arrearage Guidelines.” They use the combined income of the mother and the father and the number of children to set the support amount. Because the worksheets are fairly complicated, we suggest you complete them with an attorney's help.

Does the State set the same amount per child in all cases? 

No. There are many deviations to the standard calculations. If a parent pays for insurance for a child, that will be taken into account during calculations. If a child has special needs, generally larger payments are required. The number of other children a parent is supporting is also considered. If a child is receiving social security assistance, payments may be reduced. If one parent has significantly higher assets, they will pay a greater share. Likewise, if a parent has little net income, they may pay a lesser share. Again, an attorney can be really helpful in looking at how your circumstances effect the basic payment worksheets. Your lawyer can help you pay or receive a fair amount.

How long does the parent have to pay? 

The parent will be ordered to pay support until the child is an adult. Generally, this is until the child turns 18 or graduates from High School, whichever is later. However, support generally goes to at least 23 for special needs children. With severely disabled children, lifetime support may be ordered.

In addition, a parent can request an educational support order. If granted, this will require support through post-secondary education. These require payment until the child has finished the educational program or turns 23, whichever comes first. Support can be ordered through a Bachelor's Degree, a training program, or an Associate's Degree, but will not be ordered through a Masters or equivalent. These orders are NOT automatic. We strongly suggest you use an attorney if you are hoping for an Educational Support Order.

Can't the Parents draw up an agreement without the Courts? 

A Child Support Agreement is not enforceable without a Court Order. Respective attorneys can negotiate an order to present to the Courts to ease the process. But an agreement made between two parents is not enforceable. We do NOT recommend “Gentleman’s Agreements” when it comes to Child Support. It is best that all Child Support Agreements go through the Courts.

We're getting divorced; can we handle Child Support in the Divorce Decree? 

If you are getting divorced, we highly recommend negotiating a support order while negotiating your divorce. Since a divorce must go through the Court eventually, the Child Support can be mandated during the divorce proceedings.

Do I have to establish paternity to get support? 

Yes, you must establish paternity in order to get Child Support. However, a good lawyer can get the Court to order paternity testing as part of the child support filings.

Can I file for support for adopted children? 

Yes, you are entitled to support for any child adopted by two parents. This means if a father legally adopts a child conceived outside the marriage, he will be required to support that child when the marriage is dissolved. If an adoptive father has custody of a child, he is entitled to support from the child's mother. Likewise, if a same sex couple has children, and they split up, the non-custodial parent must pay support.

What if I don't know where the Father (or Mother) is? 

You will need to locate the Father before you can petition for support. This is also something your attorney can help you with. You should still petition for support, even if you cannot locate the Father (or Mother.) Both the Courts and your attorney can help try to locate him (or her.)

Can a support order be changed? 

Yes, you can file for modification of a support order. The whys and hows of modifications will be addressed in a future article. (Subscribe to our blog, Twitter Feed, or Facebook Page to be notified when this article is published.)

Can the other parent just refuse to pay? 

No, the other parent cannot refuse to pay. Child Support Enforcement will be discussed in a future article. But if the other parent doesn't pay, contact your attorney. S/he will help enforce the judgment.

I don't want the other parent to know where I live; can I still file for support? 

Yes, you can obtain Child Support and still protect your privacy. In these cases, it is important to let your lawyer know your concerns. S/he can help shield your personal details throughout the process. S/he can also arrange for payments to be made in a way that will not reveal your details.

Can I file for back Child Support? 

You can, but if it's awarded may depend on the other parent's ability to pay back support. It is always best to file as soon as possible after the baby is born, or after you split as a couple. In some cases, the Child Support process can begin before the baby is actually born, and it can include expenses related to the birth. These cases usually require establishing paternity.

Does This Apply to ALL US States? 

No. Child Support laws still vary from state to state. Although many of the generalities apply, this information is specific to Connecticut.

Do I NEED to hire a Lawyer? Or can I represent myself? 

The law does not require that you have an attorney. In the United States, we still have a right to represent ourselves. But just because we CAN, it doesn't mean we should. The worksheets are extremely complicated. Connecticut judges often take individual circumstances into account when determining payments. A good attorney will help you uncover the other parent's true assets and ensure an accurate financial profile is presented to the Court. A lawyer will help you get higher payments. A lawyer will help get payment procedures mandated in the original agreement to help minimize future trips to Court. A good lawyer will negotiate payment plans based on support payouts, and may even be able to recoup your attorney fees. You will have far fewer headaches in the long run if you work with an attorney.

Summary: 

In this article, we reviewed filing for Child Support. We discussed who is entitled to receive support and how to get the support process started. In Connecticut, a parent is required to pay support, regardless of marital status. The next article in this series will discuss modifications and enforcement.

Here at the Law Offices of Heath D Harte, we strongly believe in a parent's obligation to support his or her child. We believe a custodial parent should receive full financial support from the other parent, regardless of that parent's sex. We work hard to uncover the full extent of the other parent's assets so that the child gets the financial support he or she deserves.


If you are now a single parent or you are about to become one, we'd love to help you get the Child Support your child deserves. Contact us today, and we'll get the process started. We can help you receive Child Support in Connecticut or New York. We are adept with interstate and intrastate support cases.

The Top 10 Biggest Mistakes In Injury Claims

Common Mistakes in Personal Injury Cases?

Not calling the police: 

If you do not call the police, there is no formal investigation of the accident. This applies especially to car accident claims. If the negligent party or driver denies liability later on, you may have a difficult time proving your case. By calling the police, an officer will interview all involved parties and witnesses, record their contact information, and write a ticket to the party at fault in car accident cases. 

Not getting witness contact information: 

Injury victims often fail to obtain the contact information of witnesses at the scene of the accident. If the witnesses choose to stay and speak to police, this is not a problem; however, witnesses often only stop long enough to make sure everyone is okay and then leave before the police arrive. The scene of the accident may be your only opportunity to get the contact information for any witnesses. Without this information, an insurance adjuster may deny liability and refuse to pay anything to you as an unrepresented injury claimant. 

Not fixing the property damage: 

Accepting and cashing a property damage check without first fixing the damages is another common mistake. The amount offered may end up being less than the amount it takes to fix the damage. Additionally, adjusters often send a check for less than the actual cost of the repairs and hope that you will decide not to repair the property. They can then argue that you were not really hurt and pay you little or nothing for your personal injury claim. 

Giving recorded statements without hiring an attorney: 

Allowing an adjuster to take a recorded statement without the protection and guidance of legal representation can result in serious problems. An adjuster can easily misconstrue your answers in a way that makes it appear as though you were not really hurt in the accident, or that you were partly or wholly liable for its cause. An adjustor's job is to save the insurance company money and he or she will do anything he or she can to do so. 

Signing releases: 

Injured accident victims often sign releases for property damage, only to find out that it was actually a general release that settles any and all claims. After signing such a release, a personal injury claim is no longer possible. Do not sign anything without consulting an excellent injury lawyer. 

Trying to negotiate your claim without a lawyer: 

It may not be a requirement to be represented in a personal injury claim, but that does not make it any less necessary. Insurance adjusters often set the reserves (the value of the case) much lower when a victim is not represented. Verbal settlements are enforceable in Connecticut and New York, and self-represented injury claimants often "settle" their claims verbally on accident, without really intending to settle it. Hiring an experienced personal injury lawyer can prevent this. 

Not using Med Pay: 

Med Pay is health insurance coverage for anyone in your car who is hurt in a car accident, or for you if you were hurt while a passenger is someone else's car. This insurance pays for your medical treatment with any doctor without co-pays or deductible. The amount of your coverage depends on how much you purchased in your policy. 

Not using health insurance: 

This is a mistake since many hospitals and doctors require payment soon after medical treatment is provided. If you do not pay it, the bill is often turned over to collections. Using health insurance, you will pay for your treatment as you go. This can greatly increase the total amount you will net out of your personal injury settlement. Good personal injury attorneys can often negotiate away or negotiate huge reductions in any health insurance subrogation claims. 

Not using uninsured motorist coverage: 

Uninsured Motorist (UM) coverage and Underinsured Motorist (UIM) coverage protect individuals who are hit by motorists with little to no insurance of their own. Any remaining balance after the liable party's insurance runs out will then be covered by your own insurance. Normally, your rates do not rise when you use UM or UIM coverage. You must have this coverage under your insurance policy, however, in order to obtain coverage for your damages. 

Not getting medical treatment: 

Just because you do not have health insurance does not mean that you shouldn't get medical treatment. If you do not get treated, an insurance adjuster may argue that you were not really injured and deny you coverage. Good personal injury attorneys can get you to doctors who treat on a lien. They can also get you pain management and surgeries using medical funding companies. It is also important to avoid long gaps in treatment, once more to prevent adjusters from claiming that your injuries are nonexistent or less severe than they truly are. 

Other mistakes:

Not consulting with a Lawyer:

One of the biggest mistakes you can make is trying to handle a personal injury claim on your own.  Most likely, your award will be far less than you deserve. This applies in ALL injury cases, including auto accidents, negligence claims, slip and falls, etc.   You may miss an important mistake in the claims process and end up not getting anything at all.  A skilled attorney can ease the process, lessen your stress, and maximize your awards.

Not filing in a timely manner.  

Injury claims have strict statutes of limitations.  You MUST ensure your claim is filed within the 2 year period allotted.  If you do not file EVERYTHING in a timely manner, your claim will be denied.

Consult With A Personal Injury Attorney Near You

A good attorney wants to help you win a full recovery of your personal injury damages. However, any lawyer can more easily fight for you if you do not make these mistakes when the incident occurs. An attorney can still help you, even if you have made some of these mistakes, but it is likely that any award may be smaller.  It is best to be proactive and learn not to make these mistakes before you are injured.

Of course, here at the Law Offices of Heath D. Harte, we have decades of experience.  We will skillfully assist you in avoiding these common mistakes. And we will help mitigate the damages caused if you have made any of these mistakes. We treat each client as part of the family and will support and guide you through each step of your injury claim.  

If you are in the New York or Connecticut area, we can help you with your injury claim.  Contact us now to schedule your free consultation and speak with a lawyer. You only have two years to file a personal injury claim under the statute of limitations, so contact our firm right away!

Five Considerations in Choosing a Lawyer

5 Considerations in Choosing a Lawyer

There are a slew of lawyers in every town, all of whom are telling you that they want to be YOUR lawyer. When you find yourself needing a lawyer, how do you choose? Here are some considerations to help you narrow down your choice.

 

1. Big Firm or Little Firm?

 

Some legal firms are huge. Their firms' names have 5 or 6 partners listed, and the firm employs dozens of other legal personnel, from Associate Attorneys to paralegals to legal secretaries. At the opposite end of the spectrum are firms composed of a single attorney. Which is right for you?

With a larger firm, much of your case will be handled by staff, rather than by your attorney. In fact, each piece of your case might be assigned to a different individual. When you call the firm, the receptionist will have to pull your file to see the appropriate person to whom to direct your call. You may rarely speak to “your attorney,” but usually will speak to one of the junior staff assigned to assist with your case. One attorney may handle settlement negotiations, while a different person will be assigned your case if you go to trial. One individual may prepare documents while a different person executes them. If you retain that firm again in the future, you may be working with an entirely different set of people. One lawyer will handle your divorce, different lawyer will handle your will, and another will handle that DUI.

With a smaller firm, you will get more individualized attention from your attorney. When you call the office, you will generally speak to one of two people: the lawyer himself or his assistant. Any future cases will be handled by these same individuals. You will be working with the same person through document preparation, settlement negotiations, and litigation. The same attorney will handle your divorce, custody settlements, will and preparation. If a few years later you get a DUI, you will be again working with the same attorney.
If a personal experience is important to you, you may want to consider going with a smaller firm. Your lawyer will get to know you with your first interaction, and s/he will be familiar with who you are when s/he handles future cases.

 

2. Areas of Practice

 

Some lawyers specialize, handling only cases that fall under a specific aspect of the law. There are lawyers that specialize in Condo Association Law, attorneys that specialize in Wills and Trusts, and firms that specialize in Personal Injury. Other law offices practice in many different areas of the law. Which is right for you?

Generally, the specialists are part of larger firms. Again, individuals within the firm have a specialized area of expertise. One personal injury lawyer may only handle car accidents, while a second in the firm only handles slip and fall incidents. One attorney may prepare your will, while a different attorney prepares your real estate trust.

With a smaller firm, the same attorney will handle both the will and the real estate trust. S/he will also handle your car accident and your slip and fall.

You might assume that the specialist will be cheaper in the long run, as s/he does not have to do as much research to effectively handle your case. Although it may be true that a single area lawyer can cite case law off the top of his/her head, you still want your attorney to research the latest case law that may apply. This is one area where skimping may be foolish. Chances are that firms of all sizes will need to do the same amount of research on your case.

Another consideration is the states in which the firm does business. To practice in any state, an attorney needs to pass the Bar Exam in that state. It is important to ensure your attorney can practice in the state where you need services.

Larger firms tend to have offices in multiple states. Smaller firms tend to practice in only a couple of states. If you own investment property in 6 different states, it might make sense to go with a specialized firm with offices in those states. Or, your lawyer may recommend s/he consults with such a firm should you require services in an area s/he doesn't practice.

Usually, as a client, you only need to worry about services in your own state and the adjacent ones. Most smaller firms maintain relationships with the specialized firms so that they may work together, when necessary, to meet your needs.

 

3. Convenience

 

Let's face it; we're all busy. None of us seem to have enough hours in the day. Any legal case brings enough stress along with it. You need to choose a lawyer who will work with you, on your schedule, and be convenient.

Does your lawyer insist that you come see him for every interaction, or after the initial consultation, does s/he work with you by phone, text, and e-mail as much as possible? Does your attorney work bankers hours? Or will s/he alter his/her schedule to meet with you after your work hours have finished? Are the offices easy to get to? Can you reach him/her at 1 am from your jail cell? Can s/he arrange for a bail bond if necessary?

Working with your lawyer should be as easy as possible for you. If it is not, you may have chosen the wrong attorney.

 

4. Payment

 

Lawyers are available at all price points. Many require large retainers up front. Other lawyers work on a contingency basis. Some lawyers cannot work within a budget; others will. Some lawyers require payment up front. Some lawyers offer payment plans. Some lawyers charge for travel time to court.

For some people, the price of their defense is no object. For others, money is tighter. It is important to discuss money and payment when choosing your attorney. Often, a contingency type arrangement ends up being a lot more expensive for the client. Sometimes though, contingency is the only way you can afford to pursue your case.

With the law, price and quality are not necessarily the same. Often, a too plush office is a sign your lawyer cares more about padding his wallet than about justice for you. Excellent representation is available at all price points. A good attorney should be able to quote you a ballpark range for your case. The initial consultation should be free. Ensure you choose a lawyer whose prices are in line with what you can afford. Be wary of attorneys that demand complete payment up front.

 

5. Personality

 

Last but not least, you need to choose an attorney with whom you can work. If your personalities clash, your defense will suffer. You need an attorney who you can trust and respect. Now this does not mean your attorney should become your BFF. It does mean that you should feel comfortable speaking with your lawyer. You should trust in your attorney's values and ethics. You should feel like a valued customer. You should be able to get your questions answered in a way you can understand.

That first consultation should be like an interview. If your gut tells you this is the wrong attorney, retain a different one. Likewise, you should feel comfortable with the office staff.

 

Summary

 

Choosing a lawyer can be stressful. But if you keep several things in mind, you can make an effective choice. Consider the size of the firm and how important a personal relationship is to you. If you want an attorney who recognizes your voice on the phone, you may want to consider going with a small firm. You also need to consider the practice areas, both in terms of subject and location. Your lawyer should be convenient to work with and accessible through whatever means you prefer. His work hours should also mesh with your schedule. Your ideal attorney will offer payment options and plans individualized to you. S/he should also be someone you can trust, respect, and just generally get along with. S/he should be able to meet both present and future legal needs.

Here at the Law Offices of Heath Harte, we realize you have a large choice of attorneys from which to choose. We are a small firm, and we believe in individualized, convenient services for all of our customers. We can handle a variety of legal issues, from personal injury, to criminal, to family, to wills and trusts. We offer convenient payment options and convenient payment plans. We believe in getting to know you as a person so we can better handle all of your legal needs. We hope, if you're located in the New York-Connecticut area, that you will consider us when choosing a lawyer. We invite you to our offices for a free consultation so that you can see if we can successfully work together. And we truly believe in law with a personal touch. If you are outside of the Westchester-New York-Fairfield-Greenwich-Stamford area, we hope you will be able to find a firm with the characteristics of our own.