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Home | | Fall 2004 RICHARDSON & TYLER, LLP
WELCOME!Richardson and Tyler, LLP is pleased to bring you the third edition of our quarterly newsletter. This newsletter is to share new matters of general interest with our clients. It is not intended to provide legal advice. Please speak to an attorney before applying this information to your specific situation. If you would prefer to be taken off our mailing list, please email richardsonandtyler@rtlegal.com and let us know.
AnnouncementsFirst Time Homebuyers Seminar Richardson and Tyler, in conjunction with Countrywide Home Loans and Re/Max First Realty, Inc., is now offering a free first time homebuyers seminar. Topics covered include:
The next seminar is scheduled to take place at 7pm on Wednesday, October 13, 2004 in Waltham, Massachusetts. Please R.S.V.P. to David Flashenburg at (617) 523-0800 or via email at dflashenburg@rtlegal.com if you would like to attend. The first 10 respondents that attend the seminar will receive free credit reports courtesy of Countrywide Home Loans. If you are interested in hosting a free seminar for the benefit of your employees and/or clients, please contact Attorney David Flashenburg.
Wills & Estate PlanningDoes your will say what you really meant to say? The probate court recently interpreted the word “issue”, when the heirs could not agree on its meaning (Weller v. Tagge, et al.). The term "issue" when used in a will, trust, or other estate planning device, typically means "all lineal descendants" of a person... The question was whether the term meant children of a marriage, or all children born whether or not of a marriage. The court ruled that all children will take, unless you limit the broad definition of "issue" in your will, trust or estate planning document. If you are concerned that this decision may affect your will, or if you would like us to review your estate plan, please feel free to contact any of our attorneys.
Family LawUntil Death Do Us Part . . . Once you are divorced, how long should alimony payments continue?? Usually the answer is within the separation agreement. It can be:
In a recent case, the agreement provided that the husband’s alimony payments would stop when the wife died. When the husband died first, the wife sought continuation of payments from his estate!! It took a ruling by the Supreme Judicial Court to resolve this “ambiguity”, in favor of the deceased husband. It’s now the law that, unless otherwise provided, once you die, you’re “off the hook”. What’s the lesson? There is no substitute for careful review of a separation agreement by competent counsel. Many matters that appear “obvious” on first reading may come back to haunt you later…
Business & TaxationTrust Holding Companies Reexamined – Again Many “S” corporations, which are subject to the “Sting Tax” on corporations having revenues of $6,000,000 or more, had utilized business trust holding companies to avoid that tax. By an Act effective March 5, 2003, the Commonwealth of Massachusetts closed this loophole. In most cases the trust/corporation arrangement should be undone. First, there is no sense paying fees and taxes upon two entities, but potentially more harmful is the treatment of losses. The trust is treated as an individual for Massachusetts tax purposes and the federal deduction for prior net operating losses is not permitted for Massachusetts tax purposes and will be lost if the trust/corporation arrangement is not collapsed. Richardson and Tyler’s Ed Polubinski terminated a number of these arrangements in December of 2003. A number of businesses have not terminated this arrangement. If you have or know of such an arrangement, it should be carefully examined as the consequences of keeping such an arrangement can be disastrous. Termination should be carefully done so as to avoid tax on the transaction. Ed says “It’s not something you want to try at home.”
Corporate LawResident Agents The new Massachusetts Business Corporation Act requires each domestic corporation and each foreign corporation authorized to transact business in Massachusetts to continuously maintain a registered office and a registered agent at that office. For many corporations this is a new requirement. While the new statute became effective on July 1, 2004, Richardson and Tyler’s Ed Polubinski has had discussions with the Corporation’s Division and apparently corporations have until the filing of their annual reports to comply with the requirement. Any annual report filed prior to the appointment of a resident agent and office will be rejected. There is, however, no authority in the statute and regulations for the Corporations Division’s “grace period”, so all corporations who have not filed should file at once.
Consumer LoansIs Your High Interest Loan Illegal? Most states have laws regulating loans and lending practices. These laws, termed “usury laws,” are meant to discourage “loan sharking” practices, and therefore, often carry harsh penalties for offenders. The Massachusetts usury law makes it illegal to enter into a loan agreement of any type (mortgage, personal loan, car loan, etc.) that requires the borrower to pay more than 20% of the principal amount of the loan in any 12-month period. Tip: Don’t just look at the nominal “interest”. Interest, prepaid interest, prepayment “penalties”, and other loan fees may also be counted when calculating actual “interest” that you are charged. Unfortunately for consumers, lenders may avoid this regulation by registering the loan with the Attorney General’s office. Once registered, the loan is not subject to the 20% rule. However, some lenders, including even large companies, fail to register, so a loan may be voidable and you may be entitled to compensation. If you think that you are party to a loan that violates the usury statute, please contact one of our attorneys to learn more.
R & T in the CommunityRichardson and Tyler partner Paul Cullinane was recently appointed to serve on the Conservation Commission in Manchester-By-The-Sea. The Conservation Commission is charged with the enforcement of the Wetlands Protection Act and the preservation of the Town’s natural environment. Paul grew up in Manchester and was previously elected to the Board of Selectmen there. He has also recently joined the Turning 22 Committee at Melmark New England, a special needs school in Woburn attended by his son. This committee will deal with the issues involving special needs individuals reaching the age of 22 and facilitating their entry into the working world following the end of their Chapter 766 educational plans. These materials are offered for information purposes only. Do not act or rely upon any of the resources and information available in or from this site without seeking professional legal advice. This material may be considered advertising under the rules of the Supreme Judicial Court of Massachusetts. If you wish to receive our quarterly news letter via email, please click here and type "email newsletter" in the message area and click on the "submit comment" tab. | |
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