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Bankruptcy isn’t the end of the world. It may even be good for you. Before you file a bankruptcy case, it's crucial to weigh all your options. Although bankruptcy can relieve financial stress, it also has consequences, so you shouldn't take it lightly. Here are some pros and cons to consider. Pro #1 – Bankruptcy Stops Collection Calls and Lawsuits Filers often find that one major benefit of filing for bankruptcy is the mental and emotional relief it brings, not to mention the financial fresh start. Getting behind on debts, bills, and other financial obligations can be extremely mentally and emotionally taxing. It can cause stress, impact your self-esteem, and even affect your relationships and your performance at work. Once people fall seriously behind on their debt — with at least one account 120 days overdue, for example — their financial troubles tend to get worse. Balances in collections and the percentage of people with court judgments grew. As soon as you file your Chapter 7 bankruptcy, this stops all collection actions from phone calls to wage garnishments. While the Chapter 7 bankruptcy process can take several months, many filers find that the automatic stay brings mental relief since they no longer have to deal with their creditors individually. Con #1 – Impact on Your Credit Score Credit bureaus and scoring experts often say bankruptcy is the single worst thing you can do to your scores. Foreclosures, repossessions, charge-offs, collections — nothing else can drive your scores down as fast and far as bankruptcy. But that’s not the whole story. Most people struggle so long with their debt that their credit is already battered by the time they file for bankruptcy. And once they do, their scores typically rise, not fall. If the debt is erased — which is known in bankruptcy court as a “discharge” — scores go up even more. Using data from Equifax credit bureau, researchers at the Federal Reserve Bank of Philadelphia found that filers’ Equifax credit scores plunged in the 18 months before filing bankruptcy and rose steadily afterward. It can be difficult to get credit right after a bankruptcy. However, studies have shown that people who have completed bankruptcy are more likely to be granted new credit lines within 18 months than are people who fell 120 days or more overdue at the same time but didn’t file. Your credit limits after bankruptcy are likely to be low, however, and your access to credit — like your credit scores — won’t recover completely until a Chapter 7 bankruptcy drops off your credit reports after 10 years. Bankruptcy will also go on your public record. This means that if you apply for certain jobs, volunteer positions, or public offices, your bankruptcy will show up in a public records search. In rare cases, it may prevent you from getting a job or participating in something. Pro #2 – Freedom From Many Common Debts Chapter 7 bankruptcy wipes out many kinds of debt, including: Credit card debt Medical bills Personal loans Civil judgments (except for fraud) Past-due rent Past-due utility bills Business debts Some older tax debts Some debts, including child support and recent tax debt, can’t be erased in bankruptcy. Student loan debt can be, but it’s very rare. But if your most troublesome debt can’t be discharged, erasing other debts could give you the room you need to repay what remains. Con #2 – You Could Lose Some of Your Assets Though it’s rare in Chapter 7 cases, you could stand to lose property, including your home, vehicle, or other valuables that aren’t fully protected by exemptions provided by Bankruptcy law. However, if you’re already at risk of losing your home or vehicle, bankruptcy might still be the best option for you and provide a way to keep them. Financial Factors to Consider When Filing Bankruptcy You’ll want to look at the types of debt and the amount of debt you have. If you have more than $10,000 in the types of debt listed above and you can’t keep up with the minimum payments on your debt each month, then filing bankruptcy may be worth it for you. This is especially true if a creditor or debt collector is threatening to sue or garnish your wages. If you have less than $10,000 in debt and/or you’re able to pay at least the minimum payment on your monthly credit card bills and other debts, it might not be worth it to file bankruptcy at this time. That’s also true if you have a lot of debt that can’t be discharged like student loan debt, back child support or alimony payments, or recent tax debts. You may want to consider other options for dealing with your debt such as debt consolidation or a repayment plan negotiated with a credit counselling agency. If you feel like you’re in a hole you can’t dig out of . . . . . . then bankruptcy is something you should consider. You can continue trying to chip away at debts you may never be able to repay, prolonging the damage to your credit scores and diverting money you could use to support yourself in retirement. Or you can recognize an impossible situation, deal with it and move on. You Need a Bankruptcy Attorney Talk with one of our experienced bankruptcy attorneys. Filing bankruptcy is not among the DIY projects you should take on. It’s easy to make a mistake in the complicated paperwork, and an error could cause your case to be dismissed. If that happens, you end up with no relief — but still have credit scores tanked by the bankruptcy filing. Contact us today for a free initial consultation.

Utilities If you are behind in your utility payments and file for bankruptcy, you can discharge the outstanding bills in Chapter 7 bankruptcy and repay outstanding bills through your repayment plan if you file for Chapter 13 bankruptcy. Public utilities such as the electric company, cannot refuse or cut off service because you have filed for bankruptcy. However, the utility can require a deposit for future service and you do have to pay bills which arise after bankruptcy is filed. Employment An employer or government agency can not discriminate against you because you filed for bankruptcy. Government agencies and private entities involved in student loan programs also can not discriminate against you based on a bankruptcy filing. Driver’s License If you lost your license solely because you couldn’t pay court-ordered damages caused in an accident, bankruptcy will allow you to get your license back. We understand the stress and sleepless nights that arise from difficult financial times. Our bankruptcy attorneys are ready to get you some relief and back on the path to good credit. Contact us today for a free initial consultation.

Two of your most important possessions are your home and car. Its natural to be concerned about them when considering a bankruptcy. There are lots of ways to protect these assets but its not a guarantee that you’ll be able to keep them. It is important to understand that some of your creditors may have a “security interest” in your home, car or other personal property (such as items purchased with a retailer credit card). This means that you put your property up as collateral for the loan (mortgage on your home, lien on the title to your car). A bankruptcy discharges your personal responsibility to pay the loan off. What remains, even in bankruptcy, is the lien that your creditor has on your assets. The lien secures the repayment obligation on the loan. The creditor is still entitled to take the property securing, sell it and keep the sale proceeds. The good news is that in most cases you will not lose your home or car during your bankruptcy case provided three things happen: 1. The equity in the property (fair market value less loan balance) must be fully exempt (see this article to understand exemptions). 2. Even if your property is not fully exempt, you will be able to keep it, if you pay its non-exempt value to creditors. 3. if you want to keep the item, you must continue making payments on the loan. In a chapter 13 case, you can catch up on back payments over time and get current on the loan. We understand the stress and sleepless nights that arise from difficult financial times. Our bankruptcy attorneys are ready to get you some relief and back on the path to good credit. Contact us today for a free initial consultation.

Attempts to ban books in schools has been in the news lately and Pennsylvania is no exception with nearly 500 books banned in the last two years. While school districts have the power to select and, in some cases, remove books from public schools, there are important limitations on a school’s ability to ban books. What is a Book Ban? A book ban occurs when a school official removes or restricts student access to a book that was previously available. This is typically due to the content of the book and often arises through a parent or community challenge. What Books are Being Targeted? The reasons for books being targeted vary widely. In some instances, challenges focus on “sexual content” or “implied depictions of sexual acts” or language that some find offensive. Others target books based on ideas that some find controversial such as references to race, racism or LGBTQ+ themes. Most often, people promoting a book ban claim they are “protecting” students from harmful ideas or information. School Board’s Authority to Remove Books School boards have the authority to remove books, provided that they comply with federal and state law, including the First Amendment. Students have a First Amendment right to read and receive information and schools cannot target certain viewpoints to be prohibited. Boards have the broadest discretion over books assigned as a part of the curriculum, with responsibility to adopt a course of study that is adapted to the “age, development and needs of the pupils” in the school. Federal courts have largely affirmed the discretion of school boards under the First Amendment to make these choices. The Supreme Court has recognized that school boards have a “duty to inculcate community values” and may make curricular decisions to reflect those values. This discretion is not limitless, and school boards may not impose, for example, “an identifiable religious creed” or “otherwise impair permanently the student’s ability to investigate matters that arise in the natural course of intellectual inquiry,” but their discretion is broad. Courts have found that legitimate pedagogical concerns include regulating student access to books for being “pervasively vulgar,” for containing sexually explicit content or “factual inaccuracies,” or for “educational unsuitability. Boards Have Less Discretion Over Library Books Pennsylvania school boards have less discretion in restricting noncurricular materials in schools, such as library books. The Supreme Court has held that “the special characteristics of the school library” create additional First Amendment protections for students. The U.S. Supreme Court, when addressing the discretion a school board has over library content, stated that a school board “may not, consistently with the spirit of the First Amendment, contract the spectrum of available knowledge” by proscribing a narrow view of “community values” that limit the books available in a school library where the “opportunity at self-education and individual enrichment … is wholly optional.” The Supreme Court has held that school boards may not remove books from a school library “simply because they dislike the ideas contained in those books” or in an effort “to prescribe what must be orthodox in politics, nationalism, religion, or other matters of opinion.” In practice, this means that school boards may not remove a library book because it is “too concerned with racial matters and too controversial.” School boards also may not remove a book simply because it depicts gay or lesbian relationships. Further, school boards may not remove or restrict a library book based on an unfounded “concern that the books might promote disobedience and disrespect for authority” or because a book deals with “witchcraft”— a common complaint against the Harry Potter series. Get Involved The First Amendment requires school districts to have “established, regular, and facially unbiased procedures” governing the removal of noncurricular books. As a parent, you should become familiar with your district’s policies for book removal. Check to see that your school district has a policy and is following its approved policy. Whatever your opinion, its important for all interested persons – both parents and students – to have the opportunity for their opinions to be heard and considered. Contact Fiffik Law Group

By: Alexandra Menosky, Esquire If you have an LLC or corporation, this deadline applies to you. Eligible business entities have until March 15, 2023 to file Form 2553 with the Internal Revenue Service to elect “S” tax designation for the 2023 tax year. There are tax benefits associated with the “S” tax designation that may be beneficial for business owners. What is the “S” Tax Designation? The “S” stands for Small Business Corporation and is a type of tax designation. An eligible business entity can elect to be treated as a S-Corporation by the Internal Revenue Service (IRS) by filing Form 2553 Under Section 1362 of the Internal Revenue Code within two months and fifteen days of the beginning of the tax year. The S-Corporation designation allows a business to pass income, losses, and deductions from the business directly to the owners for federal tax purposes. It is important that business owners are aware that there are default tax designations with the IRS. A single member LLC has a default tax designation as a sole proprietorship and a multi-member LLC has a default tax designation as a partnership. With the S-Corporation tax designation, profits paid as distributions to LLC members are not subject to certain self-employment taxes. A corporation’s default tax status with the IRS results in one tax on the corporate income and then another tax when profits are paid as dividends. For a corporation, the S-Corporation tax designation avoids this double taxation, and corporate profits are taxed at the individual’s rate. Who is Eligible? Single Member Domestic LLCs; Multi-Member Domestic LLCs; and Domestic Corporations with no more than 100 domestic shareholders and one class of stock (no preferred stock). How can a Business Elect S-Corporation Status? Eligible business owners should complete and file Form 2553 with the IRS. All shareholders or members are required to consent to the S-Corporation election and sign and date Form 2553. Fiffik Law Group, PC provides a full range of services to business owners, including filing the S-Corporation election form. Contact our experienced business attorneys today.

Hair straighteners and relaxer products contain numerous harmful chemicals including phthalates and formaldehyde which may disrupt the hormones that regulate cell growth. Frequent exposure to these chemicals can increase the risk of developing uterine, endometrial and ovarian cancer. We are investigating these cases on behalf of patients who were diagnosed with Uterine/Endometrial or Ovarian cancer with frequent use (at least 4 times a year) of a hair straightener/relaxer for at least two (2) years. A recent study by the National Institute of Health (NIH) found that women who use chemical hair straightener or relaxer treatments have an increased risk of developing uterine cancer. Women who used these products more than four times per year were more than two and a half times (2.5x) more likely to develop uterine cancer than those who didn’t use hair relaxers as often. A prior report from the same study also found that frequent users were two times more likely to develop ovarian cancer. The Products: Hair Relaxers Keratin Brazilian Blow Out Brands: (include but not limited to) Optimum Dark & Lovely Crème of Nature African Pride Just for Me – targeted to children ORS Olive Oil Hair Relaxer Motions Hair Straightener and Relaxer products have been utilized since the 1970s to straighten hair from its natural state. These products are widely available in salons, beauty supply, grocery and drug stores. Cosmetic companies have heavily marketed these products to reinforce straight hair as a beauty standard everyone should strive for. We stand ready to hold these cosmetic companies responsible for their harmful products. In the event you receive any calls regarding these products, we welcome the opportunity to work with you and your clients. If you believe the criteria listed below applies to you, please fill out and send in our questionnaire and you will be promptly contacted to discuss next steps. Criteria

Pennsylvania offers real estate tax relief to certain property owners via a homestead exclusion. The homestead exclusion reduces the assessed values of homestead properties, thereby reducing the property tax on these homes. You must apply for the exclusion. It will not be granted to you automatically. The deadline to apply is March 1, so now is the time to take action to reduce your taxes. If you purchased a home, condo or townhome in 2022, this applies to you. Who is Eligible for the Homestead Exclusion? Generally, most owner-occupied homes are eligible for property tax reduction. Only a primary residence is eligible for property tax relief. “Owner” Includes any of the following: A joint tenant or tenant in common. A person who is purchasing real property under a contract. A partial owner. A person who owns real property as a result of being a beneficiary of a will or trust or as a result of intestate succession. A person who owns or is purchasing a dwelling on leased land. A person in possession under a life estate. A grantor who has placed the real property in a revocable (i.e. “living”) trust. A unit owner of a condominium How Much Will I Save? The homestead exclusion entitles homeowners real property tax relief of up to one half of the median assessed value of homesteads in the taxing jurisdiction (county, school district, city, borough, or township). If the median assessed value of homesteads in a school district is $40,000, for example, the school district may provide for each homestead property an exclusion in tax assessment of up to one-half of that median, or $20,000. The actual exclusion allowed will be set by the school district. All homestead properties in the school district will receive the same size exclusion, which will reduce each taxpayer's school real property tax bill. A homestead property formerly valued for tax purposes at $50,000 would be taxed as if its value were only $30,000 ($50,000 minus the $20,000 exclusion), effectively reducing its school real property tax bill by 40 percent. How Long does the Exclusion Last? Once you are approved for the homestead exclusion, you remain approved until you change your residence or sell the property. It does not expire. Situations Requiring New Homestead Exclusion Application Property Sales: Once a property that had a homestead exclusion is sold, the exclusion is removed at the end of the year. The new owner must file a new application. Name Changes: If there is a name change to a deed, you must file a new application. Example: If you transfer your deed to your maiden name (for example following a divorce), the homestead exclusion will be removed at the end of the year. Irrevocable Trusts: If you transfer your home to an irrevocable trust, you will no longer be eligible for the homestead exclusion. How to Apply Homeowners should contact their county assessment office for a copy of their county’s homestead and farmstead application form. Fiffik Law Group, PC provides a full range of services to residential and commercial property owners, including assessment appeals. Contact our experienced real estate attorneys today.

Disputes between neighbors involving trees are unfortunately quite common. Fear that a neighbor’s tree will fall onto your house during a windstorm may be reasonably well justified; alternatively, otherwise minor tree issues can cause simmering mistrust or anger between neighbors to boil over. Here’s a brief review of your rights relating to a tree or roots that cross the property line. If your neighbor’s tree is not shown to be a hazard Most trees along property lines are not a hazard. By hazardous, we’re referring to trees that have visible outward signs of being damaged, dead or dying. Think of rotting trees, ones with obvious insect infestations. This could also include trees that were damaged by a windstorm or other weather event. As a property owner, you have a duty to take reasonable care of trees on your property. That means regularly inspecting them for disease or other conditions that may render them hazardous. If you fail in this duty, you could be deemed to be negligent in the event your tree (or its branches) fall into your neighbor’s yard. If your neighbor’s tree (or branches) falls onto your property and is not shown to have been a hazard, the neighbor will not be deemed negligent. It would be your obligation to clean up your neighbor’s healthy but fallen tree. In addition, you must give your neighbor the opportunity to claim their wood! If your neighbor’s tree falls onto your property, call an arborist to inspect the tree and advise if it was defective and if the neighbor should have been aware of its condition. If your neighbor’s tree or shrubs overhang into your yard You may cut branches of a tree or shrub located on your neighbor’s property to the extent they encroach (or overhang) into your property. In doing so, you are not liable for damage caused to the tree. In addition, you can seek reimbursement for the expense from your neighbor. This was the holding in the 1993 Pennsylvania Superior Court case of Jones v. Wagner, which involved a claim for damages to trees which were cut by a neighboring property owner. While their neighbors were on vacation, Wagner trimmed the branches of 26 Hemlock trees to the extent that the branches hung over the property line. In response, Jones filed suit seeking the replacement value of each of the 26 trees that Wagner trimmed back, a combined figure of approximately $31,000 (1993 Dollars). In rejecting the damage claim, the Court wrote as follows: … we conclude that Pennsylvania law affords a full panoply of remedies to a landowner whose property is encroached by overhanging branches or tree limbs. First, an aggrieved landowner is entitled to exercise a self-help remedy by either trimming or lopping off the branches to the extent his property is encroached. Second, if the landowner has incurred reasonable expenses in the course of exercising a self-help remedy, he may recoup those expenses from the trespasser. Third, he may, on a trespass theory, seek equitable relief compelling the trespassing neighbor to remove the trees to the extent of the encroachment and seek appropriate incidental and consequential damages. We emphasize that Pennsylvania law requires no showing of physical harm or damage to the land before a possessor of land can enforce his right to freely enjoy unencumbered and exclusive use of property he rightfully possesses. Since appellees in this case were only exercising their right to trim the branches and limbs of appellants’ encroaching trees, they may not be held liable in damages for doing so. From a practical standpoint, there is the law and then there are the realities of living in peace next to your neighbor. We always suggest that you talk to your neighbor about overhanging branches before taking any action. Ask your neighbor to remove them. If they are unwilling or unable to do so, ask them if they mind if you trim them back. Unless there is a significant expense to you, we do not normally suggest sending your neighbor an invoice for the work. If your neighbor’s tree is a hazard If the hazard tree is along your property line, but is your neighbor’s tree, notify them immediately and request they remove or otherwise address the hazard. If they refuse to do so, you can hire an arborist to remove the portion of the tree that overhangs your property. You can then require your neighbor to reimburse you for the cost. If all or any portion of a hazard tree falls on your property, and your neighbor was aware of or should have known that it was dangerous, your neighbor is responsible for any damage that you suffered, including your cost of removal. If the dead or dying tree is directly on the property line In this case, you jointly own the tree with your neighbor and you are empowered to both share the cost of the tree’s removal. Tree Roots In subsequent cases the Pennsylvania Supreme Court has held that invading tree roots from the neighbor’s tree also constitute a trespass. And, as with the Wagner decision mentioned above, this type of trespass presents the trespassed neighbor with self-help and other remedies. This has specific application to situations where roots from a neighbor’s tree extend over a property line. In Pennsylvania there is now clear authority for the invaded property owner to retain a contractor to remove the roots and charge the cost of removal against the neighbor. Can your neighbor’s roots under your property give rise to an easement on your property? In 2003, the Pennsylvania Commonwealth Court was asked to determine if tree roots or branches could create an easement by prescription. In Koresko v. Farely, the plaintiff sought injunctive relief to prevent a neighbor from installing a water line which required cutting the root system of trees located on plaintiff’s property. They argued that because the roots had encroached for more than 21 years, an easement by prescription (similar to adverse possession) was created on the neighbor’s property where the tree roots extended – and that cutting of the roots would thus constitute an unreasonable interference with that easement. However, the Commonwealth Court held that roots cannot create an easement by prescription. It thus follows that tree roots and branches create continuing trespasses as they grow – and that the duration of their presence is not relevant. The trespassing branches or roots causing the trespass onto the neighbor’s property may thus be abated at any time, regardless of how long the trees have been there. Fiffik Law Group, PC provides a full range of services to residential and commercial property owners, including disputes over boundary lines. Contact our experienced real estate attorneys today.

People who plan to remarry or who already are in a second marriage can face complex estate planning challenges. The individuals usually bring their own assets into the marriage. They may also have children from prior marriages whose inheritances they wish to protect. Sometimes the residence that one spouse owns is becomes the new marital home, presenting another potential complication. Many “blended families” truly blend, but tension between adult stepchildren and a parent’s new spouse is not uncommon. Without good planning, the tensions worsen or emerge for the first time following the death of a parent. Some tensions erupt into lawsuits. If you are like most people, you probably want to promote family harmony, protect your children, and provide for your spouse if you are the first to pass away. Many of the planning techniques that work well in first marriages are inappropriate for remarriages. Read More: Second Marriage? 10 Estate Planning Questions to Ask Here’s a Sampling of What We Routinely Hear from Remarried Couples What is my spouse entitled to if they outlive me? In Pennsylvania, without a Will, the surviving spouse is entitled to one-half the deceased spouse’s probate estate. Probate assets are those assets titled to in a single person’s name that are not controlled by a beneficiary form or other transfer-on-death designation. Even if you have a Will or Trust, the surviving spouse is entitled to an “elective share” of a deceased spouse’s assets. Can’t I just leave everything to my spouse, who I trust implicitly and who has promised to pass on whatever remains to my own children? You can but it might not work out the way you hope for a variety of reasons. One might be that your spouse is unable (due to age, health, disability) or unwilling to revise their estate plan to effectuate your wishes. Perhaps they are no longer able to manage their assets and someone with power of attorney takes control and changes the “plan”. We do not recommend leaving your estate outright to your spouse without conditions as this will not guarantee that your assets will be distributed as you wish. Once your spouse inherits your assets, they are under no legal obligation to leave anything to your children. Even if your spouse truly intends to pass on your assets to your children, circumstances beyond their control may arise that prevent that from happening. Your spouse may remarry, changing the dynamic entirely. My spouse has a will that earmarks certain assets for my children. Isn’t that sufficient? No, because a Will can be changed at any time, so long as the Will-maker is competent. There would be nothing to prevent your spouse from changing the Will and naming as beneficiary their own children, or even a new spouse. Moreover, a Will has no control over what your spouse can do during their lifetime with the assets that have been inherited from you. Consider These Real-Life Situations After you are gone, your spouse develops dementia and makes poor financial decisions, squandering the assets. Or your spouse’s children may be able to convince your spouse to make them joint owners or the sole beneficiary of the assets and to cut out your children. If your spouse’s children have a durable power of attorney for their parent, they then use their authority to take control of the assets, possibly diverting the assets to themselves. One of your spouse’s children experiences financial difficulties. Being human, your spouse finds it difficult to say no, and gives that child some or all of the assets that were supposed to end up with your children. If you become disabled, your spouse may end up being your caregiver for months, possibly even years. Following your passing, your spouse’s children may convince your spouse that keeping your assets is rightful payback for all that care. What are the possible solutions? • Update your estate planning documents. This is the most basic and necessary thing you should do. At a bare minimum, you should have a new Will, power of attorney and healthcare directive. We also highly recommend that you create a digital asset inventory and digital will. • Consider a pre-nuptial agreement, or if you’ve already married, a post-nuptial agreement in which both of you waive your right to an elective share and other surviving spouse rights. This is important if your goal is to ensure that at some point, your individual savings are inherited by your children after you are both gone. • If you have a 401k, 403(b), pension or IRA that you want your children to inherit, your spouse will need not only to sign a pre- or post-nuptial agreement, but also sign a waiver of their rights on the beneficiary forms associated with those accounts. • Create a trust. When you pass away, your assets are held in trust for your spouse. Your spouse can draw on the income. If you wish, you can also include provisions that allow your spouse to access the principal for certain purposes. Anything that remains in the trust upon your spouse’s death then passes to your own children. Is a Trust right for you? Watch one of our educational videos. • Depending on your financial condition and your health, consider purchasing life insurance on your life, naming as beneficiary your spouse and/or your children from your first marriage, and leaving some of the proceeds to each. Another possibility if you purchase life insurance is to set up a trust for the insurance that will distribute a specific amount that you choose to your spouse for the balance of his/her life, with the remainder going to your children upon his/her death. • Review your beneficiary designations. Assets that already have a named beneficiary may need to be updated if you’re remarrying. • You should also consider other assets, such as bank accounts or real estate, should be titled. Adding your new spouse to your home as a joint tenant with right of survivorship may seem like the right move for keeping things simple in your estate plan. But doing so means that if something happens to you, your spouse will automatically assume full ownership of the home. They could then do with it as they wish, regardless of what you might have specified in a Will or trust. Marriage is complicated. Second marriages are even more so, especially if each of you has children from prior relationships. The experienced estate planning and trust attorneys at Fiffik Law Group can answer your questions make suggestions and prepare all of the documents needed to achieve your estate plans. Contact us for a free consult today.

The do-it-yourself ethos is one we heartily applaud. Most services provided by attorneys are not cheap, so the notion of taking care of certain things on your own to save a few bucks is appealing. But sometimes the DIY route can wind up costing you a lot more in the end. Here are 5 reasons why you should put down your DIY pen—and pick up the phone. #1 You Don’t Know What You Don’t Know We humans are not as good as we think at identifying the gaps in our knowledge. In other words, you don’t know what you don’t know. In fact, you will never know what you don’t know. There will always be gaps in your knowledge, places where you are clueless as to your ignorance. It’s one thing to take on a seemingly straightforward home improvement project – like removing a wall. Demo work may look fun when you're watching home makeover shows, but in real life, there’s wiring, gas lines, and pipes behind that drywall—and one wrong move can turn an easy job into a pricey, protracted one. This is especially true when it comes to virtually all aspects of estate planning. There are probate, death tax, divorce, life changes, income tax, asset protection and control issues to deal with. Moreover, we’re talking about your hard-earned life savings and caring for your family. These are big, important things. Even if you think your situation is not complicated, it’s best to leave the planning to the pros. #2 Putting Someone’s Name on an Account or Deed For people looking to avoid the costs and delays of probate, this is a frequently used technique. It may seem like a simple solution, but it has many pitfalls. You are giving ownership of the asset to that joint account or deed owner from the time you make the joint designation. That means the asset is exposed to creditors of or judgments entered against the co-owner. You can no longer do with the asset as you desire without the co-owner’s consent. What happens if the co-owner gets divorced? Is sued for a debt? Your assets in that account are at risk. If the co-owner passes away during your lifetime, you’ll literally pay inheritance tax on your own money. The money saved by avoiding probate may be completely eclipsed by increased capital gains tax in the case of real estate. There are better ways to avoid the costs and delays of probate. Read More: Risks of Adding Someone to your Deed #3 Beneficiary Form Boo-Boos If many of your accounts can be transferred at death by beneficiary forms, you many think “mission accomplished” on your DIY estate plan. It is true that beneficiary designations are part of an effective estate planning strategy. But we’ve seen all too many beneficiary form boo-boos that lead to big problems and expense. The most obvious problem is not completing or partially completing the beneficiary forms. If you do not complete the forms or if your designated beneficiary predeceases you and you have no contingency plan, your assets are going to pass according to your financial institution’s default rules. That usually means the assets will pass to your estate and necessitate a probate proceeding to convey these assets to your family. Naming minors as beneficiaries is another frequent problem. Minors are not legally competent to receive bequests in their own name. It will be necessary to have a court proceeding to name someone as guardian or trustee to hold the money left to a minor until they are at least 18 years old. These proceedings are expensive, time consuming and you will have given up your right to name the person to serve as guardian. Retirement accounts present particular challenges. If these are paid to your estate due to a defective beneficiary form designation, income tax will be payable on the assets right away vs. being deferred for a number of years. You also lose the right to limit a beneficiary’s access to the money for up to ten years. Finally if you’re like most people, you’ve not looked at your beneficiary forms for a long time. Life brings changes and it’s very common that people forget to update beneficiary designations to keep up with those changes. A predeceased child, a beneficiary who becomes incapacitated or has substance abuse problems are among the many reasons why constantly reviewing beneficiary forms is crucial. #4 Special Needs Beneficiaries DIY planning is especially not a good fit if you have a special needs person in your family as a beneficiary. These family members often have government benefits that have a resource eligibility component. This means that their eligibility for those benefits is conditioned upon the amount of assets that they own. By naming a special needs person as a beneficiary, you may cause them to own more assets than they can own and remain eligible for benefits. They’ll need to spend down the assets you leave them and go through the reapplication process for benefits. That’s a waste of your assets and causes a lot of disruption in the life of your special needs family member and whomever is helping them. There are better ways to include them in your estate plan without disrupting their eligibility for government benefits. #5 Second Marriages People who plan to remarry or who already are in a second marriage can face complex estate planning challenges. The individuals usually bring their own assets into the marriage. They may also have children from prior marriages whose inheritances they wish to protect. The DIY options simply are not a good fit for these situations. There is no beneficiary form that will require your surviving spouse to convey your assets to your children. The survivor between you and your spouse will ultimately get to decide who gets your life savings after your spouse dies. And if your spouse becomes incapacitated, maybe it’s their children who make those decisions. Read More: Second Marriage: 10 Questions to Ask The experienced estate planning attorneys at Fiffik Law Group can help you achieve your estate planning goals. Taking care of your family in a tax and cost-efficient manner is something we’ve helped thousands of clients accomplish. We can help you too. Contact us to schedule a one-on-one consult with one of our attorneys.

A 50th wedding anniversary is a rare milestone deserving of a celebration. Fiffik Law Group Attorney Rebecca Kuna’s clients spent months planning a luxury cruise anniversary trip, only for a careless airline to turn it into a nightmare. Attorney Kuna’s clients were an elderly married couple in their 70s. The wife uses a wheelchair, so they relied on the airline to meet them at the gate of their first flight to transport them to the gate of their connecting flight. The comedy of errors leading to the disastrous week ahead began here; the airline failed to meet the couple at their gate with a wheelchair, causing them to miss their connecting flight. After the couple realized they had missed their flight, the airline reluctantly booked them on the next flight out, which was several hours later. Even if everything had been on time and gone smoothly (which it did not) the couple would barely land in time for them to board their cruise ship on time. There was also the issue of their checked luggage – even though their luggage would not be on the same plane as them, they were assured by the airline that their luggage would be waiting for them as soon as they arrived since both planes were going to the same place. However, when they finally arrived at their destination, their luggage was nowhere to be found. The couple did not have time to waste hunting for their missing bags since they had a cruise ship to catch. The unsympathetic airline brushed them off and assured them that their luggage would be sent to the cruise ship’s first destination. I am sure you can guess where this is going… When the couple arrived on their cruise ship to the first destination, their luggage was still was not there. Now, this couple, just trying to enjoy a well-deserved wedding anniversary trip, was left stranded on the cruise ship with nothing but the clothes on their backs and minimal personal items. With no bathing suits, they were unable to enjoy the pool or the ocean like the other guests. And for the entire cruise, they had to wear the same clothes all day and night (socks, underwear, everything) and wash them the best they could in the sink. It was a nightmare. When the couple finally made it home after their anniversary trip from hell, they contacted the airline for reimbursement – it was the least they could do after what they put them through. After numerous calls and emails over the course of several weeks, the defeated couple received no response. But just before they gave up, they used their LegalShield membership to contact Fiffik Law Group and enlisted the expert aid of Attorney Kuna. Attorney Kuna sent official letters to the airline requesting rectification for the whole ordeal. After the second letter, she received a response. “Without attorney involvement, you’re going to get the runaround,” Attorney Kuna said. “They never would have gotten an answer without LegalShield.” At first, the airline insisted that they could only reimburse for incidentals – for example, the cost of a toothbrush if they had to buy a new one. However, after persistent communication, Attorney Kuna finally got in contact with someone who she was able to appeal to on a human level. “I just could not let this go," Attorney Kuna said. “I said, ‘Imagine if these were your grandparents.’” Ultimately, the airline reimbursed the couple $3,000 for their cruise and gave them two $750 vouches to fly. The couple was extremely grateful to Attorney Kuna, and they are already planning their anniversary trip re-do. “It’s such a blessing to do a job like this because you can actually make a difference,” Attorney Kuna said. Fiffik Law Group’s mission is to provide access to justice for all. Without Attorney Kuna and their LegalShield membership, this couple would not have gotten justice from their situation. If you find yourself in a similar situation, contact us for a free initial consultation. Let us be your advocate. Learn more about LegalShield here.

Guardianship, sometimes referred to as conservatorship, is a legal process intended to obtain legal authority to make decisions for another person. The person seeking to have a guardian appointed is called the “petitioner”. The “guardian”, who can be different than the petitioner, is appointed by the court to make decisions for the object of the guardianship proceeding. The person (either an adult or child) who is the object of the proceeding is called the protected person. Because establishing guardianship may remove considerable rights from an individual, it should only be considered after alternatives to guardianship have proven ineffective or are unavailable. Situations Where Guardianship Might be Needed A guardianship may be needed over a child if there is no parent available or capable of caring for a child. A guardian over the child’s estate (assets titled to the child) may be needed if the child inherits assets (via a Will or as beneficiary of an account). Children are not able to have assets titled in their own name. This protects the assets until the child reaches the age of majority (18 in Pennsylvania). A guardianship may be needed over an adult if the adult has a cognitive or physical condition that is incapacitating, meaning the person is unable to care for themselves due to mental illness, mental deficiency, disease or medical condition (such as dementia, Alzheimer’s). Types of Guardianship A petitioner may seek appointment of the following types of guardians: Guardian of the Person, to make personal, residential, and medical decisions for an incapacitated person; or Guardian of the Estate, to make and implement financial decisions and manage income and property (many other states use the term “conservator” for a guardian appointed only for financial matters); or BOTH, Guardian of the Person and Guardian of the Estate; or Plenary Guardianship (full) or Limited Guardianship. In the case of limited guardianships, the court must specify the areas over which the guardian has authority and the areas over which the protected person retains authority. How Long Does a Guardianship Last? A guardianship over an adult lasts until the adult regains the ability to care for themselves or until they pass away. The protected person or the guardian can ask the court to end the guardianship if they feel it is no longer needed. A guardianship over a child lasts until they turn 18. If the child will not graduate from high school until age 19, the child and guardian can consent to the guardianship continuing until graduation or reaching age 19, whichever occurs first. Alternatives to Guardianship and Limited Guardianship Because guardianship deprives an individual of their legal rights and restricts their right to autonomy and self-determination, a guardianship order should be considered a last resort. A court must determine that there is no suitable less restrictive alternative before adjudicating a person incapacitated and appointing a guardian. Generally, guardianship should be as limited as reasonably possible to address the needs of the protected person. The court should allow the person to retain decision-making responsibility in areas where they are able to make and communicate decisions. Of course, it may become necessary to remove all of an individual’s rights and grant total responsibility to a guardian. A petitioner and court should explore and exhaust possible alternatives to guardianship before committing to the drastic act of depriving an individual of all rights. Consult with a Guardianship Lawyer Today If you have questions about legal guardianship in Pennsylvania, we recommend consulting with a lawyer experienced in guardianship proceedings and elder law. At Fiffik Law Group, our skilled lawyers have helped many clients in the area navigate the guardianship process. Whether you are pursuing becoming a guardian or objecting to a guardian, we can help. Contact us today to schedule your initial consultation. Read More: