“Eminent domain” is the power of the federal, state, or local governments (and, in some limited circumstances, private parties, such as utilities and railroads) to take, or to authorize the taking of, private property for a public use without the owner’s consent and upon payment of just compensation.
That right to compensation is rooted in the federal and state Constitutions.
Miscellaneous
E Mail Is Binding
In law as in society at large, signing contracts on paper in ink (and maybe in triplicate) now seems so 20th century. If your reflex is still to regard e mail communications as only informal give and take, think again. A recent case demonstrates that if the necessary terms for an agreement are present in e mails, a binding agreement will result. If you don’t want that outcome, you are well advised to make it clear in the e mail itself that no party will be bound until a final agreement is signed by all parties.
Eric signed an agreement to buy a truck stop. The agreement included a financing contingency and required Eric to make a large refundable deposit that would be held in escrow. When Eric could not secure the necessary financing, he terminated the purchase and sale agreement and asked for his deposit back. The owner declined, saying that Eric had broken the agreement in bad faith.
What Is A REIT?
If investing in real estate appeals to you but you are not so well heeled that you can go shopping for investment properties like they were appliances, you may want to give some thought to investing in one or more real estate investment trusts (REIT). As you would with shares of common stocks, you can buy and sell different REITs, and having REITS in your portfolio of investments could be a good way to add some diversification. Another attraction for REITs is that you can invest in them with relatively small amounts of money, as compared with the sums required to buy the real estate itself.
Weather The Storm
Superstorm Sandy and, before that, Hurricane Katrina were just two of many dramatic reminders that millions of us are vulnerable to destructive storms that cause injuries, deaths, and property damage on a scale that is often hard to comprehend. But even a comparatively minor storm that doesn’t dominate the headlines can wreak havoc with those unfortunate enough to be in its path. Here are some tips for preparing yourself and your family for dealing with a damaging storm and its aftermath.
Stock Up
The moment when you are in the crosshairs of an approaching storm is no time to be scurrying around town for necessities. While skies are still clear, here are some things you should do:
Identifying Hidden Financial Risks Creates Sales Demand
The world changes; clients’ circumstances change; motivations and interests change. As these changes occur—often gradually—“hidden” risks emerge that can significantly deteriorate future wealth if left unattended. By “hidden” risks, we mean exposures of which the client or potential client is likely to be unaware. Identifying hidden risks in an education-based marketing program delivers an important service to your marketplace and, with this knowledge, provides you with a gateway to meaningful conversations about the added value you can deliver to prospective clients.
Key Takeaways:
- From the past several years, people understand the devastating impact of unmanaged financial risks.
- A client’s changing circumstances, needs, and aspirations open holes that allow hidden risks to creep in.
- Identifying the variety and impact of these hidden risks provides the opportunity for thoughtful and informed risk-management discussions.
- Presenting these hidden-risk categories as an education topic offers the practitioner a platform to secure new clients, particularly those that have hidden risks but have been lulled into thinking that “everything is fine with their plan” by their current advisor.
Planning for Blended Families: Part II – 3-Step Counseling Strategy for Blended Families
It is vital for each member of the advisory team to understand the roles of the other members in meeting their client’s needs. Therefore, in this issue of The Wealth Counselor, we will focus on how the estate planning attorney uses the initial interview in a blended-family situation.
Blended-family clients often require advanced planning strategies and products but are also likely to have relationship conflicts brewing that can complicate matters. Therefore, the attorney must have a counseling strategy that will obtain all the information needed to devise an effective financial or estate plan. Some of what the attorney does in these situations will sound familiar. Other things may not because they tie in to the uniquely confidential legal relationship that only exists between attorney and client or doctor and patient.
Employees Are Responsible For Beneficiary Designations
The Federal Employees’ Group Life Insurance Act of 1954 (FEGLIA) establishes an $824 billion program providing low cost life insurance for hundreds of thousands of federal employees. FEGLIA allows an employee to name a beneficiary of life insurance proceeds, and specifies an “order of precedence” providing that the employee’s death benefits accrue first to that beneficiary ahead of other potential recipients.
In 1996, when he was one of those federal employees who could participate in the FEGLIA program, Warren named Judy, his wife at the time, as the named beneficiary on his life insurance policy. In 1998, the couple divorced. In 2002, Warren married Jacqueline. Warren died suddenly in 2008, without ever having changed the named beneficiary from Judy to Jacqueline. As a result, the ex wife Judy filed a claim for the $125,000 in life insurance proceeds, and was paid them.
Protect Your Plastic
As new technologies change the way we pay for things, criminals are managing to keep pace as they devise ways to separate you from your money. Doing what you can to protect yourself is one part understanding the technology and at least equal portions of vigilance and common sense. Still, we can all benefit from some reminders.
“Phishing” refers to out of the blue e mails, text messages, or phone calls from superficially legitimate sources, often couched in urgent tones, asking for your credit card or debit card information. The thieves then set up counterfeit cards and run up charges on your accounts. Don’t take the bait. You might think that these appeals are too brazen to work, but obviously they work often enough to be a tool in the con artists’ toolbox. Follow this rule: Never give out your payment card information in response to an unsolicited communication, no matter its apparent source.
Home Owner’s Association Can Regulate Common Area
Kirk owned a home in a residential community that was overseen by a homeowners association. His property abutted one of a handful of lakes in the community. Legally, the lakes were regarded as common areas controlled by the association. When Kirk bought his home many years ago, the only recorded document imposing restrictions on his use of the property was a two page document with general restrictions for all homeowners in the community. The only mention of the lakes was an irrelevant limit on how far a boat pier could extend into a lake.
The association amended its rules to prohibit the use of pontoon boats having more than two pontoons on the lake next to Kirk’s property. As it happened, Kirk had planned to use just such a vessel, called a “tritoon boat,” on that lake. When the association expressed its determination to enforce its regulation, litigation ensued.
Identifying Hidden Financial Risks Creates Sales Demand
The world changes; clients’ circumstances change; motivations and interests change. As these changes occur—often gradually—“hidden” risks emerge that can significantly deteriorate future wealth if left unattended. By “hidden” risks, we mean exposures of which the client or potential client is likely to be unaware. Identifying hidden risks in an education-based marketing program delivers an important service to your marketplace and, with this knowledge, provides you with a gateway to meaningful conversations about the added value you can deliver to prospective clients.
Key Takeaways:
- From the past several years, people understand the devastating impact of unmanaged financial risks.
- A client’s changing circumstances, needs, and aspirations open holes that allow hidden risks to creep in.
- Identifying the variety and impact of these hidden risks provides the opportunity for thoughtful and informed risk-management discussions.
- Presenting these hidden-risk categories as an education topic offers the practitioner a platform to secure new clients, particularly those that have hidden risks but have been lulled into thinking that “everything is fine with their plan” by their current advisor.