Why Probate is Better Than Foreclosure

If you are trying to make a profit in the business of foreclosures, you have probably found out how hard it is. It seems as if the market is flooded with people who are working to get a piece of that market. In many areas, this task is almost impossible, even for the most hard-working.

When you work in foreclosures, you often have to deal with sellers who are desperately unhappy. They do not really want to sell to you, and may view you as a vulture, preying upon their misery in a time when they are losing property they may still want.

The people in foreclosure are often losing their homes, the very roof over their heads. Can we blame them if they sometimes get irritated or downright nasty during the proceedings?

In probate, the situation is very different. The sellers in probate are usually eager to sell, and the house in question is probably not their primary residence. You are dealing with people who are motivated to sell and to be cooperative, not highly stressed people just trying to “get through” a bad time in their lives. It makes a huge difference in the way they will deal with you.

Many heirs are actually very eager to sell to you so they can quickly settle the estate. A friend of mine recently lost his mother and he inherited her house. During the next few weeks, he was required to travel back and forth, about 50 miles each way, to deal with the various legalities and hassles of property ownership.

My friend confided in me that if someone would just offer him a reasonable price for the house, he would probably take it. He even said that he would not dicker too much over the offer, because he would just want to complete the deal quickly and easily and liquidate the asset.

When someone you love dies, you not only inherit all of their property, but also all of their problems too. No one who is going through the grieving process for a loved one wants to take on a very large project at the same time. If you can offer these people a simple and fast solution of “What to do with Mother’s house,” they will take it, so probate is ideal.

Also, often after the estate goes through probate, several siblings or relatives will inherit jointly, which can cause all types of problems. Maybe the siblings live in different places or do not get along. Getting rid of property you own but do not live close to is sometimes difficult.

In most of these types of cases, none of the parties involved want the property, so they don’t want to buy each other out. Instead, they just want to split the money from the sale of the property. This fact is especially true if there are outstanding debts against the property, and also if they are going to have to pay a lot of inheritance tax on it, but can’t actually get at any cash. This is where you can step in to supply the heirs with a solution to what can be a difficult problem.

Another factor can come into play with this situation. Many senior citizens, 65 years or older, defer their property taxes until after their death in what is called a “senior deferral.” Once the senior citizen passes away, these taxes come due.

If the heirs to the estate inherit the property, they also inherit the past due taxes. Most people just want to get these taxes paid as quickly as possible, so that they can pay them and any other outstanding debts to the estate, and then see what is left over. They are eager to sell and resolve the matter, and pay off the hefty tax bill.

In conclusion, probate is better that foreclosure. The market is easier to work in because fewer people are buying in the probate market, and the sellers are more eager to sell to you. It’s much better to buy from people who are looking at you as a hero rather than a vulture swooping down to pick over their carcass and rob them of their home.

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Fixed Asset Management

Fixed Asset Management

Fixed asset management is an accounting process that seeks to track fixed assets for the purposes of financial accounting, preventive maintenance, and theft deterrence. This applies to all industries because doing so makes the workplace more productive.

Without fixed asset management, the equipment and resources of the company are not used both effectively and efficiently. Think of it like a car. If you do not have the oil changed, it will break down. The net effect is being able to save money instead of spending it on repairs which could have been avoided in the first place.

This is why companies take various steps to manage these closely. For instance, machines that are used undergo regular maintenance. If anything needs to be replaced or replenished, this is ordered well in advance so there will not be any disruptions at the workplace.

If the machines are already obsolete and there are newer models that can do a better job, management must consider the costs of buying new or maintaining the old one. In recent times, new equipment is purchased to avoid being left behind the competitors.

Management also has to coordinate with the various departments in the company to see how each one is doing. This is done on a monthly basis to determine whether the company is achieving growth. If it is not, find out why and then do something about it.

For large companies that need to ship goods nationwide, management has to check on their logistical support. Will it be cheaper to maintain their own set of trucks or should they outsource this to someone else?

If the company is experiencing some hard times because of a few subsidiary companies that are not pulling their weight, management has to decide whether to sell subsidiaries or find a way to improve them. Should there be an opportunity to gain something, then they also have to consider if this will be beneficial to their portfolio. Will such a sale put them at a competitive disadvantage? What capability will they lose through such a sale?

Companies also let their auditing teams conduct an inventory to take into account their fixed assets. Sometimes, they may need outside help to do it and there are a number of established companies that have the manpower to do exactly that. They can even suggest to management improvements that need to be done and may well be worth the expense of hiring seasoned professionals.

In order for management to see how well the company is doing, the asset management data has to be put on paper. These days, this means computerizing everything so everyone in management will be able to give their input and agree to a suitable plan.

Fixed asset management is what every company needs to survive in the 21st century. This will serve as a guide whenever money has to be used to buy things or whether the funds of a certain project have to be diverted elsewhere.

Before any decision is made, they have to ask themselves a series of questions. For instance, will this be good for the business long term? How much can we make? How much do we stand to lose? Is this the latest technology around? Is this the best thing in the market today?

These are just some of the questions that companies have to ask themselves in order to practice effective fixed asset management.

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DVD Review: Planet Earth – The Complete BBC Series

Planet Earth – The Complete BBC Series
DVD ~ David Attenborough
Price: $54.99

5.0 out of 5 stars
Totally wonderful, one of a kind. The BBC edition is terrific.

I first saw the series on the TV in the USA, and was so stunned by the photography, that I instantly wanted to own the DVDs. Even my parents stopped talking and sat there staring with their mouths open, it was so gorgeous.

So, once I had decide to by the DVD, I went to Amazon, read the reviews, and was thrilled when I found out that the BBC had its own edition, with world-famous British naturalist David Attenborough’s as the commentator, rather than Sigourney Weaver for the American Tv edition.

Well the difference is like night and day. I love Attenborough’s excellent, engaging commentary, his enthusiasm and passion for his subject, compared to Weaver’s flat monotone.

I know Attenborough can seem to get a bit carried away, but there is nothing like an expert who really knows what he is talking about versus someone reading from a script Or even worse, trying to make jokes about what she sees, and totally misses the point of what is happening on screen. Some of the comements were crass, tasteless, and diffeintely not educational.

The BBC edition is a real keeper, but if you any reason you can’t find it, get the DVD no matter what. This will be a great gift for children so they can have a record of animals and habitats that might not be around for much longer!

The DVDs are a real visual feast, totally fascinating. The shows are organized by habit, to help us understand the kinds of creatures that can live in each.

The footage of the Himalayas and the snow leopards is the only film of its kind in the world and was totally incredible.

The birds in Papua New Guinea performing their ritual mating dances is a show stopper. I wanted to show one of my friends that one segment. He not only played it back 10 times, he insisted on watching the whole episode even though he had to run to work!

The ocean episode is totally fascinating, and I believe are the deepest photos ever taken, using a robotic submersible. It makes you realize that man has gone to the moon, but still doesn’t know much about the things living on the sea floor. The vampire octopus really has to be seen to be believed.

This is one of those landmark TV programs from the BBC that anyone will be hard put to surpass. Own a bit of history, and get it now before global warming renders our polar bears and other arctic creatures extinct.

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A Probate Glossary

There are many confusing terms and commonly used phrases that are related to the probate process and estate planning in general. Here are some definitions to help the layperson understand the sometimes complex process of probate.

AB Trust- This is a trust designed to take advantage of the personal estate tax exemption. It also allows the surviving spouse use of the assets, no matter what, for the remainder of his or her life.

Administrator- This person is appointed by the court to manage and oversee the court process for the estate of a deceased person or “decedent” who has died without leaving a will.

Attorney-in-Fact- This person is designated to act as an agent for the executor of the will.

Basic Will- The basic will is designed to give everything to the spouse, if living, or the children who are 18 or above.

Beneficiary- The beneficiary is the person who receives property or other assets from a will, insurance policy, or contract.

Durable Power of Attorney for Health Care- This is a written document that gives someone the power to make medical decisions for another person in case that person becomes incapacitated in some way.

Durable Power of Attorney for Property- This is a written document that gives someone the power to make property and financial related decisions for a person who has become incapacitated in some way.

Estate- The property and assets of an individual, including all real estate, bank accounts, life insurance policies, stocks and bonds and personal property.

Executor- The person or persons named in the will who will manage the estate of the decedent. He or she will inventory all properties, pay of debts and taxes, then distribute any remaining assets to the beneficiaries and heirs.

Fiduciary- The trustee who is identified in a trust, or an institution or person who is legally responsible for the distribution, management, or investment of funds.

Grantor- The person who gives assets to another, usually by way of a trust.

Inter Vivos Trust- A trust created while a person is still living that holds property in trust for the benefit of someone.

Intestate- When someone dies without a will.

Joint Tenancy with Right of Survivorship- This term refers to co-owning property. When one owner dies, the other owner is legally entitled to take possession of the property, no matter what the will says.

Living Trust- This is a trust that is established during a person’s lifetime that is used to place property. Because the basic living trust does not effectively use the personal estate tax exemption if the estate is large, then it is often recommended for married couple to set up AB Trusts.

Living Will- The document that outlines a person’s wished in regards to life-sustaining treatment should he or she become terminally ill or in a vegetative state.

Marital Deduction- A deduction set up by the government that allows one spouse to leave his or her estate directly to his or her spouse upon death without having to pay gift or estate taxes.

Pour-Over Will- Everything is distributed into a trust by this type of will.

Power of Appointment- A “general” power of appointment gives a person the unlimited power to distribute a decedent’s property. A “limited” power of appointment gives restrictions to the person on who may receive the property.

Probate- The process in court of reviewing, legitimizing, and processing claims against a will, or in the case of no will, settling the estate according to inheritance laws.

QTIP Trust- A trust that is set up that allows a person to leave his or her assets to his or her spouse for their use during their lifetimes, but still be able to control where the assets go upon the spouse’s death.

Trust- A written document that provides for property being held by someone for someone else.

Trustee- The person named in a trust who manages and distributes the property for and to the beneficiary.

Will- A legal document that states how property and assets will be distributed upon a person’s death.

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What is Probate?

The word “probate” is taken from the Latin word, “probere,” which means “to prove.”  Probate is the legal process whereby a will is proven valid or invalid, and the total assets of the deceased person are counted, appraised, and inventoried.

Probate court also makes sure that all taxes and debts against the estate are paid, and then the remaining assets are divided among the heirs and beneficiaries.

If a person has all of his property is his or her name, these are known as his or her “assets.”  Assets include real estate, tangible property, such as jewelry, cars, etc, and intangible property, such as bank accounts, and stocks or bonds.

Most of the time, a person’s spouse and children would inherit his or her assets after he or she dies.  However, first they must prove that they are legal heirs by submitting marriage and birth or adoption records.

Before the heirs can take control of the assets, the assets must be authenticated by the courts.  To accomplish this, the heirs must submit the person’s death certificate and documentation that all of the assets belong to the deceased.

The probate court will then appoint a personal representative to administer the probate case.  He or she will inventory, appraise, and authenticate the assets.

There are special situations that arise that are exceptions to this process.  For example, certain assets belonging to the deceased may not go through the probate court.  For instance, if the deceased appointed someone as beneficiary when opening a bank account, the funds from the bank account would be transfered to the beneficiary into the beneficiary’s account directly upon the bank holder’s death, without going through the probate court.

The process is different if the deceased prepared a document where he or she clearly spelled out how much and too whom the assets should be given.  The deceased may have named a personal representative, but if he or she did not, the court would then appoint and “executor” and a guardian for any children involved who may need help managing any assets.

This document is called a “will” and should have been notarized and signed by two or more witnesses.  If a person dies after writing a valid will, then he or she is considered to have died “testate,” which means “to make a will.”  The person writing the will is known as the “testator.”  Conversely, if someone dies without leaving a will, then he or she is known to have died “intestate,” and the beneficiaries would have to be determined appropriately.

Because the law requires that the heirs or beneficiaries prove the validity of the will, the will has to go through the probate court process.  Only then will the probate court begin the process of paying any outstanding debts and taxes against the estate, and then divide the remaining assets to the heirs and beneficiaries, according to the directions of the will.

The court issues a formal order to transfer the property directly to the heirs and beneficiaries according to existing inheritance laws.

How long does the probate process take, you might wonder.  The completion of the process depends upon a number of things, such as the size of the estate, worth of the assets, validity of the will, the appointment of the executor or personal representative in case there is no will, and locating and notifying all of the beneficiaries.

If the paperwork is not too complex, then the process will generally take less than a year.

However, if the will is contested or anything untoward happens in the process, probate can take many years to complete.

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What is Estate Planning?

Estate Planning is Estate planning is a process to consider alternatives for, to think through, and to set up legally effective arrangements that would meet your specific wishes if something happens to you or those you care about. Good estate planning is more than just a simple will.

Good estate planning also typically minimizes potential taxes and fees, and sets up contingency planning to make sure your wishes regarding health care treatment are followed.

On the financial side, a good estate plan coordinates what would happen with your home, your investments, your business, your life insurance, your employee benefits (such as a 401K plan), and other property in the event you became disabled or if you die.

On the personal side, a good estate plan  should include directions to carry out your wishes regarding health care matters. Thus, in the event that you ever are unable to give direction yourself, the person you select as your legal representative  would do that for you. You would give them the authority to act upon your previously determined instructions, such as when you would want them to authorize heroic measures, and when you would prefer they act on a Do Not Resuscitate order.

You should have an estate plan if:

(1) you are the parent of minor children

(2) you have property that you care about

(3) you care about your health care treatment.

If you do not have minor children, do not care about your property, and have no concerns about your health care treatment, then you do not need an estate plan.

But if you meet any of these categories above, you really should have an estate plan.

There are many websites and books available on effective estate planning.

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Preventing Foreclosure: It IS Possible

Foreclosure is a word that has come to strike terror into the hearts of many these days, with the economy taking a rapid downward turn and recession on everyone’s lips.

Foreclosure may sound like the worst thing in the world to have happen to you, but there ARE steps you can take to prevent foreclosure.

The first steps is to educate yourself, so you know your rights. Read your documentation from the bank that should stipulate what happens in the event of missed payment/s.

Never ever ignore letters or calls from the bank. In fact, if you think you might be late with a payment for ANY reason, even if it is just a day or two, be responsible and tell them rather than have them set in motion a whole chain of events which might snowball into something much worse.

Everyone is going through some very difficult financial times at the minute. But the bank really does NOT want to render you homeless, not if there is any hope of you being able to keep up some sort of regular payments.

Preventing foreclosure is not easy, but it is possible if you’re prepared to work at it.

Dealing with your mortgage company or bank will be easy if you are reasonable, responsible, and pro-active. You know there is a problem, and you want to work together with them to find a solution.

It is never too late, even if you have received a foreclosure notice, if you keep calm and are willing to stick to a plan to get you through the lean times.

One thing that you should definitely consider doing is consulting with a HUD counselor, who will give you all sorts of free information. DO NOT use any of the paid services on line. They are a waste of money that you don’t have.
http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm has a map so you can start locating a counselor in your area.

Here a this website you might also want to read the information in the money section on why you need a budget, and how to create one. Do you really need all those cable channels every month? How much can you save if you brown bag lunch every day and give up takeaway?

A credit counselor will also help-there is a lot of free advice on the internet which you can learn to apply to your own situation without spending a small fortune.

Once you look at your foreclosure situation and general financial situation, you should be able to draw up a workable plan to get yourself out of financial trouble with the bank so you will no longer be in danger of foreclosure.

Again, the bank does not want to see you out on the street, and if you were a terrible customer or risk, they would never have given you the mortgage in the first place. The bank’s job is to make sure that if a customer is having difficulty keeping up with their monthly mortgage payments, to make all attempts to try and help that customer resolve the matter at hand.

The HUD counselor should be able to explain the most important aspects of your situation to you, in such a way that your bank will be happy to work with you on whatever plan you’ve come up with to get out of arrears and all of your payments back on track to prevent foreclosure.

For more information, visit:

http://www.hud.gov/foreclosure/index.cfm
for step by step practical advice and resources.

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