The Estate’s Responsibilities to Creditors and the Basics of Transferring the Estate

Dealing with and planning for death is never an easy thing. However, it is important to plan ahead and understand the basics of transferring the estate. When considering your estate or the estate of a loved one, a few important things you should know include:

I. The State Law that Governs Wills and the Transfer of the Estate
First, it is important to understand which state law applies. Generally, the state law that applies is the state where the decedent legally executed the will or, if there was no will, the state where the decedent was domiciled at the time of death. Accordingly, Arizona law applies when there is a valid will that was created in Arizona or when the decedent dies without a will while domiciled in Arizona. The term ‘decedent’ refers to the person who died. ‘Domicile’ is determined according to the location of the decedent’s residence, where the decedent paid taxes, received mail, where he/she was registered to vote, etc.

II. The Administration of the Estate
It is also to understand the basics surrounding the administration of the estate. In Arizona, the court will either appoint a Personal Representative, or will recognize the one named as such in the will. The Personal Representative’s responsibilities include accounting for and protecting all assets in the estate, notifying creditors, and distributing the estate. The Personal Representative may receive ‘reasonable compensation’ in AZ, but it is not a percentage of the estate according to the will or state law.

III. The Order of Priority
Another important concept to understand is the order of priority in distributing the estate. Priority exists for times when the amount of the estate is insufficient to distribute to satisfy all expenses, debts, and intents from the will. The order of priority is generally as follows:

Administration of the Estate - These include administration fees, attorney fees, and any other fees necessary for the safeguard and distribution of the estate.

Statutory Allowances - When the amount in the estate is insufficient to pay out all the allowances, Arizona laws create priority among the statutory allowances. The only thing that has priority over these allowances and exemptions are the expenses to administer the estate. If there is no money remaining after one of the items, the others will not receive anything. The allowance include a Homestead Allowance of eighteen thousand dollars, a Family allowance limited to twelve thousand dollars-either paid in a lump sum or by monthly installments over a 12-month period, and an Exempt Property Allowance of seven thousand dollars.

Creditors - These are the creditors of the decedent, subject to A.R.S. §§14-3801, 14-6102, and §14-6103.

Heirs and Devisees - These are the people who are inheriting property from the decedent according to the will or state laws.

IV. The Estate’s Responsibilities to Creditors
It is also important to understand the Estate’s Responsibilities to Creditors. Upon the death of the decedent, the decedent’s debts are still valid and due to the creditors according to the order of priority already discussed. According to Arizona Revised Statutes § 14-3801, the personal representative must notify all known creditors of the decedent’s death, the appointment of the personal representative, and how to collect on the debt owed. For Unknown Creditors, the personal representative must publish notice once a week for three successive weeks in a newspaper of general circulation in the county announcing the appointment. The creditors must then present a claim within four months of the first published notice.

Seek Counsel from an Experienced Attorney

Dealing with and planning for death is never an easy thing. However, it is important to understand and plan for the disposition of property to loved ones upon such an event. Our attorneys at Gunderson, Denton, and Peterson PC can assist you with your estate planning needs.

Published By:

Gunderson, Denton & Peterson, P.C.
Brad Denton
Mesa Arizona Estate Planning Attorneys
1930 N. Arboleda, Suite 201
Mesa, Arizona 85213
Office: 480-655-7440
Fax: 480-655-7099
Re-Publsihed from: The Estate’s Responsibilities to Creditors and the Basics of Transferring the Estate

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What Do Franchisors Have To Disclose To Franchisees?

Mesa Arizona Business Attorney Article On Franchise Disclosure

Franchise Law Disclosure Requirements

The requirements of the Federal Trade Commission’s Franchise Rule

The franchise industry is large and growing larger. The U.S. Census Bureau recently collected franchising data for certain industries and found that in those industries 10.5% of businesses were franchises and $1.3 trillion of the $7.7 trillion total sales were from franchises.[i] There is a lot of money in the franchise market, and it can be very lucrative for an individual with a successful business to franchise that business. However, in order to comply with the law and ensure long-term profitability, a franchisor needs to abide by the franchise rules and regulations set forth by the Federal Trade Commission - specifically the Franchise rule. The Federal Trade Commission has brought cases against hundreds of companies based on the Franchise Rules. A Franchise Lawyer in Chandler Arizona can help navigate the complex rules.

A key part of the Federal Trade Commission’s Franchise Rule is the Franchise Disclosure Document (FDD). The FDD is a legal document given to potential franchisees by the franchisor to disclose information on many areas of the franchise business. Use of the FDD was mandated by recent changes to the Franchise Rule, and it replaces the previously used Uniformed Offering Franchising Circular (UFOC). A franchisor is required to provide this document at least 14 days before a sale is made, as his Arizona franchise lawyer can tell him. The Federal Trade Commission’s regulations require certain specific information to be included in the FDD. The Franchise Rule contains 23 Items that must be included in the FDD. The following is a brief description of six of the Items:

-Item 2: Business Experience - The FDD must have the business experience over the previous five years of key individuals in the franchisor’s business. Key individuals usually include the franchisor's directors, trustees, general partners, and principal officers.

-Item 5: Initial Fees - Any money that must be paid by the franchisee to the franchisor before the franchisee’s business opens must be disclosed. If the fee is not set, the possible range of the fee or a formula to determine the fee must be given.

-Item 12: Territory - The Franchisor’s FDD must specify whether the franchise is for a specific geographic location. The Franchise Rule contains specific language that must be included if the franchisor is not granting an exclusive territory. If the territory is exclusive, remedies must be given in case there is an intrusion into that territory, as stated in the franchise agreement negotiated by the Arizona business franchise lawyer. Any restrictions on the franchisor from soliciting or accepting orders from consumers inside the franchisee's territory must be specified.

-Item 17: Renewal, Termination, Transfer, and Dispute Resolution - A table must be added to the FDD that outlines the franchise relationship. A brief description of required contract provisions must be included in the table.

- Item 21: Financial Statements - The franchisor must include a balance sheet and statements of operations, stockholders equity, and cash flows. These statements should be audited by an independent auditor and be completed according to GAAP (generally accepted accounting principles). There are specific exceptions for start-up franchisors, but even then audited financial statements should be provided as soon as practicable.

- Item 23: Receipts - The Franchisor’s FDD must have two copies of a detachable acknowledgement of receipt. The Franchise Rule contains specific language that must be used in the acknowledgement of receipt.

This is just a small sample of what must be included in the FDD. As can be seen, franchise law and the requirements for the Franchise Disclosure Document are evolving and complex. Having an experienced Mesa franchise lawyer is essential if you are franchising your business or looking to buy a franchise. Attorneys at Gunderson, Denton & Peterson, PC are experienced in working with franchisors and franchisees on their franchising issues. Attorneys from the firm are available to meet with you to review and analyze the Franchise Disclosure Document or address any other franchise or business issue.

[i] www.census.gov/newsroom/releases/archives/economic_census/cb10-141.html

Published By:
Gunderson, Denton & Peterson, P.C.
By Brad Denton
1930 N. Arboleda, Suite 201
Mesa, Arizona 85213
Office: 480-655-7440
Fax: 480-655-7099
Re-Published from: What Do Franchisors Have To Disclose To Franchisees?

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Complications Of Decision-Making in an LLC

Although there are many benefits that a Limited Liability Corporation (LLC) entity may provide for your company, there is inherent potential for problems with decision-making. To avoid problems with decision-making in your LLC, it is important to be fully aware of governing laws and how they will affect your business.

How to Avoid Problems with Decision-Making in your LLC
Unlike other business entities, owners of an LLC have almost unlimited discretion to decide the roles of owners and management, specifically regarding decision-making. Owners (usually referred to as “members” in an LLC) may choose to manage the business personally, thereby keeping the decision-making power. However, they may also choose to delegate the decision-making authority to managers, those they select to run the business. In this scenario, the owners typically only vote on major decisions, such as amending the Operating Agreement or Articles of Organization, or admitting a new owner. If there are no specifics in the Articles of Organization, the default prescribed by state law is for the LLC to be member-managed.

Decision-Making problems with a Manager-Managed LLC
Creating Manager-Managed LLC with multiple owners is much like establishing a corporation with the Managers as the Board of Directors and owners as the shareholders. Typically, only major decisions, such as amending the Operating Agreement or Articles of Organization, or admitting a new Owner require votes from the owners. The managers make day-to-day operation decisions. This creates an obvious problem if a member disagrees with the decisions that the managers are making. Unfortunately, in a Manager-Managed LLC, the members usually must file a derivative suit in order to overthrow a decision, similar to shareholders against the board of directors in a corporation.

Decision-Making problems with a Member-Managed LLC
Choosing a Member-Managed LLC may create problems with decision-making as well. In a Member-Managed LLC, each member has equal rights, a majority of the votes wins, and each member is responsible for the day-to-day operations. The default rules give each member equal voting and decision-making rights, irrespective of ownership percentage. You can imagine the problems that may arise when there are multiple owners and major decisions to be made under the default rules. This problem may be avoided by allocating rules about voting and decision-making in the Operating Agreement and Articles of Incorporation.

Solutions to Decision-Making Problems in an LLC
Solutions to avoiding these decision-making problems include defining the decision-making powers and roles carefully in both the Operating Agreement and the Articles of Organization at the creation of the LLC. You may choose to be Member-Managed LLC, you may elect the members as managers, or you may define voting rights and decision-making rights differently. Creating an LLC Operating Agreement specific to your company’s unique needs and circumstances will provide effect long-term protection to your business strategies and results. Our Arizona business lawyers at Gunderson, Denton & Peterson can further ensure that you create your LLC in the way most advantageous to you and your specific goals with the company.

Published By:

Gunderson, Denton & Peterson, P.C.
By Brad Denton
1930 N. Arboleda, Suite 201
Mesa, Arizona 85213
Office: 480-655-7440
Fax: 480-655-7099
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Queries Organizations May And May Not Ask Possible Staff During An Employment Interview

Employment anti-discrimination laws prohibit employers from asking interview questions that discriminate illegally. Title VII of the Civil Rights Act of 1964 prohibits employment discrimination on the basis of race, color, religion, sex, disability, age or national origin. The EEOC (U.S. Equal Employment Opportunity Commission), created by the Civil Rights Act of 1964, enforces these laws. This protection against discrimination extends to hiring, firing, promoting, setting wages, testing, training, and all other terms of employment. Accordingly, certain questions asked during interviewing may be discriminatory, and consequently, the interviewing employer may be vulnerable to discrimination suits. To interview effectively, employers should know these discriminating questions and possible alternatives to avoid such liability.

Questions to Avoid
Employment anti-discrimination laws prohibit employers from asking direct questions about race, color, sex, religion, national origin, birthplace, age, disability, and marital or family status. Some examples of questions employers should not ask are:

Race, Color, Religion, National Origin:
Are you a U.S. Citizen? Where did you grow up? Will you need personal time for particular religious holidays?

Age:
When did you graduate from high school? Are you comfortable working with co-workers older/younger than you? How long do you plan to work before you retire?

Gender & Family Status:
How many children do yo have? How old are your children? What arrangements are you able to make for childcare while you are at work? Do you have plans to have children soon? What does your spouse do for a living? Are you comfortable working for a female boss?

Disability:
Do you have any visual, speech, or hearing disabilities? Are you planning to have a family and when? Have you ever filed a workers' compensation claim? Have you had any serious illnesses in the past year? How many days of work did you miss last year due to illness?

Possible Legal Alternative Questions:
Rather than asking directly about race, color, religion, national origin, age, gender, family status or disability, the focus of the questions should be on behaviors, skills and experience needed for the position. The questions should be used to discover and predict job-related performance of the potential employee, rather than discovering personal information. Some examples of possible legal alternative questions are:

Race, Color, Religion, National Origin:
Are you authorized to work in the United States? Do you have any language abilities that will benefit you in this job? Are you part of any professional or trade groups or other organizations that you consider relevant to your ability to perform this job? Are you available to work on Saturdays or Sundays?

Age:
Are you over the age of 18? Can you provide proof of age after employment?

Gender & Family Status:
Would you be willing to relocate if necessary? Do you have any restrictions in your ability to travel? Do you have any responsibilities or commitments that will prevent you from meeting your specified work schedules?

Disability:
Are you able to lift 40 lbs and carry it 100 yards, as that is part of the job? Are you able to perform the essential functions of this job with reasonable accommodations?

Employers should know what questions may and may not be asked according to employment laws. Rather that direct questions regarding race, color, religion, national origin, age, gender, family status, or disability, the questions should focus on skills, behavior and experience needed for the position. Our Arizona employment attorneys at Gunderson, Denton & Peterson, PC can assist you with employment and other business related matters.

Published By:
Gunderson, Denton & Peterson, P.C.
1930 N. Arboleda, Suite 201
Mesa, Arizona 85213
Office: 480-655-7440
Fax: 480-655-7099
Re-Published from: http://gundersondenton.com/employment/questions-employers-potential-clients-interview/
Brad Denton

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Despite the Lessons Presented from Arizona’s SB 1070, Georgia Passed its own Version, HB87

Despite the lessons presented from Arizona’s SB 1070, Georgia passed its own immigration reform bill, the Illegal Immigration Enforcement Act, HB 87. Although moral and political issues are at the forefront, the detrimental impacts on Georgia’s economy may exceed the negative affects of Arizona’s SB1070.

Similar to Arizona’s SB 1070, Georgia’s HB 87 makes it a crime to knowingly harbor or transport undocumented immigrants, imposes harsh penalties for providing false papers to undocumented immigrants, orders law enforcement to check the immigration status of anyone they “reasonably suspect” to be in the country illegally, and expands the requirement for employers to use the federal E-verify system, which checks the work eligibility of employees.

Many criticize Georgia for not learning the lessons Arizona’s SB 1070 has presented us, and further predict that the Georgia immigration bill will bring similar detrimental impacts, just as Arizona’s SB 1070 has. After passing SB 1070 in April of 2010, Arizona lost an estimated $141 million dollars from cancelled conferences, $250 million in lost economic output, a projected $86 million in lost wages, 2,800 jobs over the next two to three years, and more than $1 million the state spent in legal fees defending the law.

Modeled after Arizona’s SB 1070, Georgia’s HB 87 provided a similar outcry of opposition. Costly litigation ensued. Several provisions were found unconstitutional. Many argued that Georgia would subject itself to the same negative financial effects that befell Arizona after enacting SB 1070. The major financial concern is the negative impact on Georgia’s agricultural industry due to the reduction in migrant workers (both documented and not). Notwithstanding arguments of moral and ethical issues, and projected negative affects to the agricultural industry in Georgia, Governor Nathan Deal signed the bill into law on May 13, 2011, with an effective date of July 1, 2011. The E-Verify requirement for employers went into effect on January 1, 2012.

Although it is too soon to see all the damage the HB 87 will cause in Georgia, there are already strong indicators of detrimental effects. The Center for American Progress released a report stating that Georgia’s economic losses will be at least as serious as what Arizona suffered, and projects the losses to continue to grow over the coming years. The study predicts four key detriments:

* Farmers will likely replace the absence of migrant workers with mechanized processes. As a result, $800 million per year could be lost.

* Due to resource discrepancies between larger and smaller farmers, the loss of migrant laborers will affect smaller farmers more severely.

* Loss in the state’s agricultural sector will have negative financial impacts across all industries. This will lead to an increased unemployment rate statewide.

* Changes in Georgia’s agricultural industry will have negative affects across the country, including higher food prices and possible issues with food safety.

Despite the effects from Arizona’s SB 1070 and other legislative history, Georgia farmers and Americans around the country may shortly see the harm of lessons taught, but not learned. Although moral and political issues are at the forefront of immigration reform, the detrimental impacts on the economy may prove the biggest impacts of Georgia’s Illegal Immigration Enforcement Act, HB 87.

While politicians continue to attempt to pass immigration reform, qualified Phoenix Immigration Lawyers remain the best source to learn what options are available now for both employers and workers who wish to protect their interests and secure their lawful status in the United States.

1) In Georgia, Politics Trump Common Sense on Immigration; Leaving “Wisdom, Justice and Moderation” Behind, 4/15/2011. Immigration Policy Center, American Immigration Council.
2) How Georgia’s Anti-Immigration Law Could Hurt the State’s (and the Nation’s) Economy, Center for American Progress, Tom Baxter, October, 2011.

Published By:
Gunderson, Denton & Peterson, P.C.
1930 N. Arboleda, Suite 201
Mesa, Arizona 85213
Office: 480-655-7440
Fax: 480-655-7099
http://blog.arizonaimmigrationlawyeraz.com/lessons-presented-arizonas-sb-1070-georgia-passed-version-hb87/

For more on Arizona immigration law see:

Family Based Immigration Lawyers

Comprehensive Immigration Reform Act of 2011 Introduced: An Attempt to Fix a Broken Immigration System

Arizona Estate Planning: What are the risks of establishing your own program?

By using internet resources and guides, countless people bypass law firms to set-up their own wills, powers of attorney and various other estate planning files. The pros and cons of making your own legal papers without professional help differ by particular person. For those who have complicated family or legal instances affecting children from different spouses or significant wealth, specialist help is really important. For young, single men and women with somewhat simple needs, a small number of investments and no complicating elements there’s room for difference.

Typically even in quite easy circumstances, folks get some things wrong when they prepare their own forms. Folks frequently get a false sense of security from establishing their own legal papers, where answering one question improperly or overlooking something such as appointing a guardian for children or not anticipating a inheritor; future needs and challenges can cause major troubles down the road.

Experienced Mesa estate planning lawyers are aware of the things to ask, and know what to do with the responses.

Without an estate planning legal representatives aid, you may not know the technical but significant terms of important forms. As a result, you could unintentionally give someone more power than you want to at the wrong time when making a “durable power of attorney” document, for instance. That report basically gives someone else the ability to manage your money. If that individual isn’t reliable, he or she could steal from you. If the report isn’t done effectively or does not have certain required language then it is probably not valid.

One more danger is when it comes to transferring your house to your meant recipients after you die, a self-written will might consist of omissions or statements that lead to unintentional results. Without an estate planning attorney, a person might not prepare for contingencies like being pre-deceased by children, divorce or separation, or the births of new kids, unknown creditors of beneficiaries, etc.

In the event you don’t think you can pay for a complex estate plan right now, begin with what you can afford. Then, let your planning develop and extend as your desires change and your financial situation improves. Don’t try to do this yourself to save some money. An expert Phoenix Arizona estate planning attorney is able to present critical advice and relief that your specific plan fulfills your specific preferences.

* This blog is written by a third party and nothing in this blog should be taken to constitute professional advice or a formal recommendation and we exclude all representations, warranties, legal liability or responsibility relating to its content. The information in this blog is for general information purposes only.

How do I Acquire An Existing Arizona Organization?

Developing a sales contract which may maximize your return on investment and limit responsibility

Large risks do occur when establishing a company. According to the Small Business Administration, only 50 % of new organizations survive past 5 years. One method to lessen the risk of being a business owner is to obtain an existing company with proven net income or profits. Though buying a current enterprise cuts down risk, it comes with a large price. To guard an investment, a purchaser ought to be sure that he gets everything that he bargained for. You can accomplish this by making sure a detailed sales agreement is made.

When acquiring an organization there are various concerns that ought to be addressed. A Phoenix business attorney can help you by asking the key questions and centering on the areas which will have the greatest impact on the business’s future achievements. As an example, what sections of the business should you invest in? Is it better to buy the existing organization entity or should a new entity be established just to buy the assets? The style that the business is obtained could have a great affect on a companies future responsibilities. The reply to these questions is determined by the particular conditions surrounding each business purchase.

When selecting an organization, there is regularly a concern that the former owner will open a new rivalling organization. In order to resolve this potential, a lawyer can make a Covenant not to Compete. This covenant needs to be an important part of the sales agreement as it will prevent the previous owner from being a rival for a determined time period, upping your probabilities for success.

Selecting a company without a comprehensive sales settlement exposes both you and your company to financial risk. Through the help of an expert Mesa Arizona business attorney, you could reduce your risks and increase your potential earnings by having a favorable sales agreement that covers the important concerns.