July 2017 - Jim A Lyon Law Firm

Techniques for Avoiding Probate

When individuals die without having an adequate estate plan in place, their estates will proceed through the probate process. Probate has the disadvantage of sometimes lasting for a long period of time. Fortunately, there are some methods that individuals can use to avoid the probate process. A skilled attorney will be able to help an individual determine the various methods necessary to avoid the probate process. Designate Beneficiaries in Retirement Accounts There are some assets that a person has that will pass on after his or her death in accordance with terms other than those found in a will. Many other estate planning devices allow individuals to name beneficiaries, including retirement accounts. Despite the power of these documents, many individuals do not list beneficiaries for bank accounts or retirement plans. By making sure to designate beneficiaries for retirement accounts, individuals can make sure that these assets avoid the probate process. The biggest obstacle presented by this method is making sure that the proper beneficiaries are listed because these roles may sometimes change due to death, divorce, or other major life events. Gifting Avoids the Probate Process By giving away property prior to death, a person can avoid the probate process. [...]

gstealth132017-08-06T00:37:06+00:00Tags: estate planning, oklahoma city probate attorney, probate|

Benefits of Estate Planning

A large number of individuals think that only the very rich need to focus on estate planning. This is just one of several popular misconceptions about estate planning. In reality, all types of individuals can benefit from making a plan for their assets after their passing. To make sure that your assets are properly distributed after your death, it often proves essential to obtain the assistance of skilled legal representation. It is also beneficial for individuals to understand the numerous benefits that can be created by estate planning. The Particular Benefits of Estate Planning There are some particular benefits of estate planning, which include the following: Avoid Probate: The probate process can result in a person’s estate being delayed as well as additional fees being incurred. Through the use of proper estate planning, however, individuals can entirely avoid this process. Blended Families: In situations in which a person is part of a blended family, estate plans can make sure that all children are treated in the same manner. Without a plan, there is the potential that children might be treated differently based on the child’s recognized guardians or parents. Funeral Plans: Details about a person’s funeral plans can be articulated [...]

gstealth132017-08-06T00:30:00+00:00Tags: estate plan, estate planning, probate attorney oklahoma city|

The Difference Between Debt Consolidation and Bankruptcy

While many people are familiar with the bankruptcy process, debt consolidation is also a unique process. Debt consolidation involves combining debts into one, more manageable debt. Not only does debt consolidation simplify the repayment process for individuals, it also reduces monthly payment and interest rates. Many individuals confuse debt consolidation with debt settlement, which involves a person paying an amount lower than the total amount that is owed. Bankruptcy, however, follows a distinct process from debt consolidation. In Chapter 7 bankruptcy a person sells property to creditors to pay off debts, while in Chapter 13 bankruptcy a repayment or reorganization will be arranged with creditors. Deciding on bankruptcy or debt consolidation depends on a person’s financial goals. Advantages to Filing for Bankruptcy One of the largest advantages of filing bankruptcy is that it offers greater protection against creditors because an “automatic stay” is placed that prevents creditors from obtaining money. An automatic stay also prevents foreclosure, repossession, and shutting off utilities due to nonpayment. Bankruptcy also offers the advantage of clearing a person’s debts, which means that the process lifts financial difficulties from a person. After eliminating these debts, a person can then begin to rebuild their credit and move [...]

gstealth132017-07-14T12:45:16+00:00Tags: debt consolidation, oklahoma city attorney bankruptcy|

SCOTUS Ready to Settle Bankruptcy Issue

The Supreme Court recently granted certiorari to review a case that will require the Court to decide the question of whether bankruptcy courts should apply federal or state law when deciding how to recharacterize a debt claim as a capital contribution. The manner in which this case is decided will have a significant influence on how bankruptcy cases proceed. The Role of Recharacterization Recharacterization presents an important role to lenders and investors in companies facing financial difficulties. Current bankruptcy law allows secured creditors to receive top priority while equity interests have a lower priority and are frequently wiped out during bankruptcy. Applicable federal law currently results in the recharacterization of debt to equity, while state law does not always result in this type of recharacterization. The Circuit Split on Recharacterization of Debt Many circuits follow the federal rule in recharacterization of debts and apply a variety of multi-factor tests when determining whether to recharacterize debt as equity. The Third, Fourth, Sixth, Tenth, and Eleventh Circuit Courts hold the perspective that debt should often be recharacterized as equity, while the Fifth and Ninth Circuit apply state law. As a result, Oklahoma is part of the Tenth Circuit Court which characterizes debt [...]

gstealth132017-07-09T13:16:32+00:00Tags: bankruptcy, debt, recharacterization of debt, supreme court|