Wednesday, November 26, 2014

Why You Absolutely Must Perform a Land Title Search When Buying Property

If you’ve ever bought a new property, you’re familiar with all of the paperwork involved. In days past, closing on a property could seem like it takes forever. If you have to close on one property that you’re selling before closing on another that you’re buying, the whole process can turn out to be an all-day affair. Technology is changing some of this, and closing on a property is becoming much easier.

But that doesn’t mean that the need for the information behind the paperwork has gone away, the process of gathering it is just becoming more efficient.



If you talk to a real estate professional, they would assure you that they’re not interested in wasting anybody’s time, but that the paperwork behind real estate transactions is very important and protects you as a buyer. One such important piece of paperwork is a land title search that must be done before buying a property.

A land title search will tell you if anyone else has any claims against the property before you buy it. When you perform a land title search before purchasing a property, you will uncover any liens against the property will become your responsibility once you take ownership of it. You don’t want the purchase of your dream home to become a nightmare because a previous owner had a judgment against them for unpaid back taxes.

It’s not necessarily that rare that things like this are uncovered during a land title search, either. In fact, almost one-third of land title searches uncover some type of problem with the property. What might be discovered? Any item that hasn’t been paid by the previous property owner could be a potential problem for the new owners.

Things like unpaid contractor bills, back taxes, fees from the local government and other types of civil judgments against the property will be revealed. Even something as seemingly inconsequential as an error or typo in a previous deed can mean problems for the new owners. 


It’s not always the case that the current owner is being deliberately deceitful, either. In fact, the current owner might not have any idea that there are current liens on the property. If a complete title search wasn’t performed when that person bought the property, something might have slipped through. By doing a complete and proper title search this time around, you can make sure that all issues are resolved before you buy the property.

A real estate practitioner can help do this search for you and make sure that all of your bases are covered. They will search through public records, court records, plans and dealings directories as well as many other places. The entire process is automated and takes only a couple of clicks for the real estate practitioner to search many places at once.

A land title search is simple to do and can save you headaches and frustration later on. Be sure to have one done when buying a property.


Monday, November 24, 2014

Estate Planning Is the Most Important Financial Planning You Will Ever Do

A lot of individuals assume estate planning is simply about minimizing the estate tax. There actually are many other critical parts to estate planning. Regardless of whether your estate is going to owe tax or not, for the majority of people, estate planning is still  essential and ought to be planned and maintained. 

A Few Reasons to Create an Estate Plan


  • Select a guardianship for dependents
  • Have monetary security for your loved ones
  • Reduce estate and income taxes
  • Pass on real estate to specified beneficiaries
  • Streamline management of your estate
  • Keep the details confidential and avoid probate


What Resources are Required?



Estate planning may be easy or complicated, being dependent on your circumstance and wishes. For many people a simple estate plan is the only thing that's needed and can deliver considerable benefits. A visit to your estate planner usually involves reviewing the following information and discussing your plan specifics.

  • Go over existing wills or trust instruments
  • Catalog of all possessions, investments, financial obligations, etc.
  • Be aware of how each property is titled
  • Establish who will be left your estate
  • Outline any special requirements of the beneficiaries
  • Select the individual to handle your affairs
  • Consider giving to specific charities
  • The amount of health-related treatment you desire
  • Precisely what memorial arrangements you desire

Process Involved



There are primarily 3 steps associated with setting up your estate plan: planning, documents, and execution. Every phase consists of different tasks that may necessitate the services of a CPA, legal professional, fiduciary, insurance professional, and investment specialist.

Design includes speaking with experts to detail your wishes and objectives and to obtain an understanding of the level of planning required. Documentation needed requires a legal practitioner to prepare legal instruments including a will, trust, durable power of attorney, and medical power of attorney. 

Execution entails entitling property and inheritor designations to correctly fund your plan of action, keeping track of changes, implementing your instructions, satisfying requirements, and compliance.

Professional Estate Administration


Managing an estate must commence before you pass away by detailing what you wish to take place following death or incapacitation. The following individuals are normally involved with the administering of an estate to execute your directions.

  • A personal agent to prepare memorial service plans and execute your will.
  • A fiduciary(s) to administer any trusts and take care of associated assets.
  • A legal professional to help the personal rep with the probate procedure.
  • A Certified Public Accountant(CPA), like the ones at Padgett Business Services, to put together estate and tax returns and offer financial guidance.


Income Taxes Involved


There are 5 different taxes that could directly affect your estate: income tax, gift tax, estate tax, generation skipping tax, and state inheritance tax.

  • Income tax involves earnings, regardless if it is obtained by an individual, a trust, or an estate. Recognizing when a trust or estate needs to disperse income may substantially minimize taxes. 
  • Gift tax relates to the value of an estate, or rights to this kind of asset, or rights to such asset, transferred while you are alive. Figuring out the best ways to use annual and lifetime exemption amounts and appraisal discounts may substantially decrease the gift and estate taxes. 
  • Inheritance tax applies to the worth of every property in your taxable estate at the time of your passing. Also simple preparation can save considerable amounts of Federal and State taxes. 
  • Generation skipping taxation relates to the value of all property passed on to more than 1 generation below you. This obligation is in addition to the estate tax. 
  • State estate or estate tax concerns the citizens of those states that tax the assets of the beneficiaries on the value of the asset passed on at death. Family mechanics and inheritance tax statutes are constantly fluctuating, we can help you keep pace.

Preparation is the secret to managing your affairs, managing resources, and reaching financial security. A visit to your estate planner should result in an education on what the process is and what it will do for you and your surviving family. The following is a check list that you should keep with you when you visit your estate planner. It's your responsibility to make sure you are being taken care of and all your planning is complete.

  • Minimize estate, gift, and income taxes 
  • Offer an orderly transference of assets.
  • Designate guardianships for children
  • Find out ways to make use of life insurance.
  • Comprehend complex probate laws
  • Discharge your desires and wants.
  • Recognize how titles impact estate transference
  • Assist with management of your estate.
  • Know the best ways to make the most of a will, trust, POA, etc.
  • Help shield family from creditors.
  • Retain more of your resources for your family
  • Provide for unique needs of dependents.
  • Handle the continuing needs of your Family.


Friday, November 21, 2014

The Effects of Obamacare and What has Changed

When the Affordable Care Act, more popularly known as Obamacare, was passed in Congress, many thought the problems of a large uninsured portion of the population would be solved. Unfortunately, theory does not always translate into practice. Although more people today are insured, problems with reimbursement rates and disgruntled citizens who refuse to apply, still present obstacles for doctors and hospitals. 

More people are insured, which means less people in emergency rooms


Before, many would simply wait until they were too sick to work, and then go to the ER. Unfortunately, that usually meant they would end up being hospitalized. But Dr. Ira Potter, who practices in one of the poorest regions of Kentucky, told the Louisville Courier-Journal that now his low-income patients are receiving subsidies for insurance, or have been moved to Medicaid. With help from the government, he said, they can now afford to pay for a physician.

Reimbursements are low—meaning many doctors won’t take Obamacare


Dr. Bob Russo, radiologist and president of the Connecticut State Medical Society, told National Public Radio that low rates and administrative headaches that come along with the program could make it a “financial loser”. He pointed out that if doctors can’t be convinced that they're not losing money doing their job, there will be problems. “And they haven't been able to convince people of that," he said.

The problem is not just in Connecticut; numerous companies have cut their reimbursement rates for plans that fall under Obamacare. When Blue Shield of California was designing the new health plans it would offer under Obamacare, the insurer asked doctors and hospitals in its network to accept rates as much as 30 percent lower than what it previously paid.

Only 60 percent of the doctors and 75 of the hospitals that participate in the Blue Shield of California’s group plans chose to participate in plans purchased through the state’s insurance exchange. Some of the state’s most prestigious hospitals, including Cedars-Sinai Medical Center in Los Angeles and University of California medical centers, dropped out altogether.

Hospital charity care is being tied to Obamacare signups


To a number of people, Obamacare carries a whiff of socialism. The end result is that for many hospitals in rural areas, many will still go uninsured and risk getting sick despite the fact that they would be eligible for insurance coverage. William Parsons, 40, told a reporter that he has no health insurance and doesn't intend to apply. "Goin' to the doctor just isn't something I like to do. ... No good comes of going."

Parsons is not an exception. Many hospitals are now reevaluating their charity care policies and demanding that those who would normally be eligible at least attempt to sign up for subsidized insurance. According to a high risk pregnancy specialist, Dr. Gilbert Webb, even insurance for one time procedures like pregnancies are affected. As an example, Southern New Hampshire Medical Center in Nashua now states that applicants who do not purchase federally-mandated health insurance when they are eligible to do so will not receive charitable care.

Katherine Arbuckle, senior vice president and chief financial officer at Ascension Health based in St. Louis, told the Washington Post that the question is whether a patient can pay or simply doesn’t want to. “How do you treat those who decline [coverage]? Do they get free services when others have paid?” she asked.

In reality, Obamacare is still in the shakedown phase. In order to ensure that the program is as effective as possible, it needs to be tweaked in certain areas in order to ensure that the most vulnerable populations are covered. Combined with better education about the program, Obamacare should prove to be more successful in years to come.

Information Credit: Vitals

Thursday, November 20, 2014

First Time Financing: Real Estate Tips for Finding a Home

Very few purchases are as large and important as that of a home, and the first time you go through the financing process you'll be introduced to a variety of essential lending concepts. Gaining equity through home ownership is an essential way of building a healthy financial portfolio, and home ownership is also an emotionally rewarding experience. Consider the following tips when starting your search for your new home.

Search Tips for Your First Home


Finding a house to buy is quite a different search from finding apartments to rent, and you'll need to consider a wide array of amenities when searching for your first home. One of the most important differences is calculating how much of a mortgage payment you could handle with a home versus how much rent you could pay for an apartment.
You'll need to list your debts and income to determine the maximum payment you could afford while paying a mortgage. Most financial experts suggest paying no more than one-third of your income on rent, but that number may change for a mortgage. Remember that home ownership comes with costs that include:
  • Home owner's association (HOA) fees
  • Landscaping costs 
  • Mortgage insurance 
  • Property taxes 
  • Utilities 
  • Yearly maintenance
You'll need to add these additional costs into your estimated mortgage payment to get the most accurate picture of how much mortgage you can afford. Home ownership comes with some distinct benefits, but it's also a significant financial commitment.

Getting Financing Early in the Search


Getting a feel for the different types of homes available in the area you'd like to live takes time, and it's fine to perform some early searches before you're absolutely ready to start the search. However, once you're serious about buying a new home, your number one priority is obtaining financing.

Two terms you'll need to learn include "prequalified" and "preapproved". Each is useful, but only one will help you when it comes to making an offer on a new home. Getting prequalified is pretty simple, and all it takes is giving a bank your basic financial information to get an idea of how much mortgage you can afford. It's a helpful number, but it won't help you land the home of your dreams.

Preapproval, on the other hand, is a process that requires much more information be given to the bank in order to see if you have the creditworthiness to get mortgage approval. The reason getting preapproved is so important is because sellers like to see that you're serious about buying a home. Preapproval tells then that you're looking to buy and aren't just window shopping for a new home.

Preparing Financially and Domestically


Saving the down payment and making sure you have enough income to sustain a mortgage payment is important for buying a home. However, it's also important that you have savings above and beyond your down payment. Wall2Wall Media suggests you might want to have some domestic tasks taken care of like buying furniture and appliances for your new home first.

The reason you need some savings above and beyond what you'll spend to obtain your mortgage, is because there are always little things that go wrong or unexpected purchases that come along with buying a home. As long as you have a modest amount of savings to cover those costs, you won't have to deal with costly credit cards or loans to cover those last-minute expenses.

Additionally, purchasing essential appliances like a washer and dryer and the refrigerator in advance of your move-in date should help you avoid having to shop for these items at the last minute when it might be tempting to buy them with a credit card or make a hasty purchase without shopping around first.

The name of the game in getting financing for a home is preparing well in advance for each step. Don't rush into the process, and you'll be sure to get the home of your dreams, or that Apartment for rent in Liberty Village before you know it.



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