Iowa Law Blog : Iowa Lawyer & Attorney : Sullivan & Ward Law Firm : Iowa Law Blog

With the tough real estate market now, home sellers are looking for any advantage to maximize their equity from their real estate.  One option that many are pursuing is trying to sell the home on their own without the services of a Realtor.  Typically, Realtor fees for residential sales are around 6% to 7%.  By attempting to sell on your own, with your own hard work, you can avoid that expense as that fee is normally charged to the seller.

A Realtor does provide several benefits.  A Realtor can help determine what a fair price to ask.  Entry on the all-important multiple listing service (MLS) brings the largest set of eyes to your house, which can only be achieved through a Realtor that subscribes to the MLS.  Also, a Realtor can take care of arrangements for interested buyers to view the home.  A Realtor can also walk you along the selling process from beginning to end.

But, if you already have a buyer or think you are capable of selling your house without a Realtor, it isn't necessary that you get a Realtor to help you out.  A real estate attorney can help you out on the key steps in selling your house for a fee typically much less than the 6% fee.

Some of the critical points that a seller needs to be aware of in selling their home include: proper disclosure information to potential purchasers, binding purchase agreement, updating abstract, and the conveyance documents (deed, groundwater hazard statement and declaration of value).

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Ever wanted to get married but didn't want to attend the marriage ceremony? Think about moving to Montana where a double proxy wedding is permissible. The New York Times recently posted an article stating that Montana is the only state that allows a double-proxy wedding - that is - allowing a stranger (or acquaintance) stand up for both the bride and groom and enter into a civil marriage contract. Thus, the presence of neither the bride or groom is required.

This is common when both parties are in the military and stationed in different parts of the country. And it takes about all but a minute. The cost to the real bride and groom: $900, $50 apiece to the proxies, $100 to the judge, $150 to the lawyer (and witness); $53 for court fees; $14 for two certified copies of the marriage certificate; and the rest to a Pennsylvania couple who run a business facilitating proxy marriages.

Last year, the Montana State Legislature amended the law to require that one party in a double-proxy marriage be either a Montana resident or a member of the armed forces on active duty; however, the article noted that these Montana marriages are recognized in every state but Iowa.

Now if there could only be divorce by proxy. . . .

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Did you ever want to know how much your neighbor or a family member had when they died?  Were they the "millionaire next door"?  Did so-and-so blow through all that money? Well, in Iowa, as in many states, a complete listing of a deceased person's assets are listed in the public court records.  The Report and Inventory, as it is called in Iowa, is a filing that the personal representative (either the executor or the administrator) is obligated to file with the court which breaks down the assets into real estate, stocks, bank accounts, life insurance, miscellaneous property, and annuities (retirement).  The itemized assets also show the value as of the date of death.

To get this information, all you need to do is go down to the courthouse and look up the file number for the deceased individual, have the courthouse personnel pull the file, and then review the information.  Pretty easy to review someone's financial life!

For most people, keeping financial information confidential is very important.  Now, you might say, "what do I care, I'm dead?'"  True, but as far as your family members are concerned, your financial information soon becomes their financial information.

If your estate does not go through the probate process, then this listing of a report and inventory is not necessary.  To avoid probate in Iowa (& most other states) you can use a revocable trust plan.  A properly created trust, that is properly funded,skips the probate process and helps maintain your privacy.

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The Money Team at the Des Moines Register recently posted an answer to the following question:

Q: “I am about to get divorced after 25 years of being a wife and stay-at-home mom with no involvement in finances. I’ll get the house and a decent retirement fund, but I don’t even know where to start. Any advice?”

This is an extremely common question when individuals, after a long-term marriage, divorce. The Money Team gives sound advice: Look at a few basic financial areas: cash flow, short-term savings, retirement planning and asset protection. Understanding what money is coming in and going out can make a bigger difference in your lifestyle than what you received in the divorce.

I suggest that anyone going through a divorce take a look at this article. Scheduling an appointment with a financial planner as well as an attorney versed in Wills, Trusts and other testamentary instruments is also advisable especially if you had little involvement in family finances during the marriage. You may need some guidance to get through the rough beginning but a clear understanding of finances can make the long road easier.

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Honesty may be the best policy for a successful marriage. But when it comes to divorce, couples are becoming increasingly devious in concealing their wealth from each other reports the Pennsylvania Family Law Blog. One fifth of couples who divorced last year tried to conceal their assets or income from their spouse - a figure which has doubled since 2006 - a report has found.

The study - by the accounting firm Grant Thornton, which surveyed 100 family lawyers - found that husbands were much more dishonest when a marriage crumbled. In cases where assets had been hidden, 88 per cent involved men concealing wealth from their wives. Just two per cent involved women hiding assets. In the remainder of cases, both partners tried to conceal wealth from one another.

Family law experts say a spate of expensive, high-profile divorce cases, such as that of Sir Paul McCartney and his wife, Heather Mills McCartney, is spurring couples to hide their wealth from each other. Andrea McLaren, the head of Grant Thornton’s matrimonial practice, said: ‘The number of couples hiding assets from one another has increased by 100 per cent since last year, which is staggering. Supposedly, men are seeing terrifying huge divorce settlements which are compelling them to hide assets.

In Iowa, you must, unless waived by court order, disclose all assets on an affidavit of financial status. While the affidavit is signed under oath, it does not guaranty full disclosure. Make sure you keep track of all marital and nonmarital assets during a marriage: this does not mean you are necessarily eyeing a divorce, but it is helpful when your spouse gets sick or passes away and is unable to carrying on his/her financial affairs.

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Surely celebrities take their estate planning seriously, don't they?  Millions of dollars, easy access to legal advisers.  Well, not Heath Ledger, who recently passed away from an accidental prescription drug overdose.  Unfortunately, after executing his will in 2003 leaving his estate to his sister and parents, he failed to make any updates to his will after the birth of his child in 2005.  When news of his will was made public in a New York filing, Heath's father was quick to note that they would take care of Heath's young daughter (Matilda Rose) and his ex-fiance.

However, recent reports confirm that if there is money involved and poor planning, legal battles will ensue.  It is being reported out of Australia that Heath's uncles are now getting involved in a fight over the inheritance from Heath's estate.  Apparently, brotherly love between Heath's father and Heath's uncles is strained as a result of some alleged improprieties by Heath's father concerning the mismanagement of Heath's grandfather's estate.

This is a simple reminder that it doesn't matter whether you're famous or not, your estate plan is important and should not be overlooked as part of your periodic life review.  Especially as you marry or have young children, it becomes even more significant to get your plan updated and reviewed.

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Medicaid benefit eligibility is based upon the resources and income that an individual has in their own name.  If some has has limited assets and limited income, the Medicaid program covers medical bills and long-term care for older or disabled individuals.  (I'll cover the specifics another day.)

It used to be that the day before someone needed to go to the nursing home, they would transfer their assets to their children or grandchildren and then apply for Medicaid benefits.  The government got wise to this idea and changed the application process to include a list of any transfers of assets for the three prior years.  Specifically, any transfers made for less than fair market value (e.g. gifts).

Now, the law looks at transfers in the past five years in order to determine eligibility.  Again, sales don't affect eligibility, but only transfers for less than fair market value.  But transfers in the past five years will impact one's Medicaid eligibility.

The Medicaid eligibility rules and exceptions involved in the Medicaid planning process are complex and involved.  Be sure to work with a knowledgeable advisor.

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The Oregon Divorce Blog recently published a good post about what NOT to do during divorce. It points out that many pitfalls and traps await parties who are unfamiliar with the process noting that people often make bad decisions under stress, or without the guidance of an experienced lawyer and fail to educate themselves.

I agree, that by avoiding the following 10 pitfalls, you may get a better result. During your divorce, you should NOT:

1. Lie to your lawyer.

2. Lie to the court.

3. Involve the kids in the process.

4. Hide or fail to produce documents.

5. Refuse to cooperate with a court appointed expert.

6. Settle without analyzing your case.

7. Fail to try to resolve the case outside of court.

8. Take out your stress in unhealthy ways.

9. Be economically irrational in negotiations.

10. Be your own lawyer if your case is contested and your spouse is represented.

To read an explanation as to why you should avoid these pitfalls, click on the above-link.

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