Many clients call after an accident has just occurred and are quite upset that another individual has injured them, damaged their car, and caused inconvenience. Many want to “sue their pants off,” to punish the at-fault driver. Remember, filing your claim isn’t about revenge, it’s about making sure that you get back what you lost, and are paid for your inconvenience. Filing a lawsuit immediately will mean more costs, time, and emotional expenditure on your part, which means less money for you. This process can be avoided by careful planning with the client, and skilled negotiation on the part of the attorney. Negotiation will almost always be the first choice of resolution, and will shorten the time of litigation significantly.

1. Keep an Emergency Kit in Your Glove Compartment. Drivers should carry a cell phone, as well as pen and paper for taking notes, a disposable camera to take photos of the vehicles at the scene, and a card with information about medical allergies or conditions that may require special attention if there are serious injuries. Also, keep a list of contact numbers for law enforcement agencies handy.
2. Keep Safety First. Drivers involved in minor accidents with no serious injuries should move cars to the side of the road and out of the way of oncoming traffic. Leaving cars parked in the middle of the road or busy intersection can result in additional accidents and injuries. If a car cannot be moved, drivers and passengers should remain in the cars with seatbelts fastened for everyone’s safety until help arrives. Make sure to turn on hazard lights and set out cones, flares or warning triangles if possible.

3. Exchange Information. After the accident, exchange the following information: name, address, phone number, insurance company, policy number, driver license number and license plate number for the driver and the owner of each vehicle. If the driver’s name is different from the name of the insured, establish what the relationship is and take down the name and address for each individual. Also make a written description of each car, including year, make, model and color — and the exact location of the collision and how it happened. Finally, be polite but don’t tell the other drivers or the police that the accident was your fault, even if you think it was.

4. Photograph and Document the Accident. Use your camera to document the damage to all the vehicles. Keep in mind that you want your photos to show the overall context of the accident so that you can make your case to a claims adjuster. If there were witnesses, try to get their contact information; they may be able to help you if the other drivers dispute your version of what happened.

5. File An Accident Report. Although law enforcement officers in many locations may not respond to accidents unless there are injuries, drivers should file a state vehicle accident report, which is available at police stations and often on the Department of Motor Vehicles Web site as a downloadable file. A police report often helps insurance companies speed up the claims process.

The whole insurance process will be easier following your accident if you know the details of your coverage. For example, don’t wait until after an accident to find out that your policy doesn’t automatically cover costs for towing or a replacement rental car. Generally, for only a dollar or two extra each month, you can add coverage for rental car reimbursement, which provides a rental car for little or no money while your car is in the repair shop or if it is stolen. Check your policy for specifics.

The final question in dealing with an accident is usually who will pay for the damages? If the accident was minor, you and the other drivers may decide to handle the damages yourselves without the involvement of an insurance company. But this isn’t always the best idea, for several reasons.

While the other driver may agree to pay for the damage to your car on the day of the accident, he may see the repair bills and decide it’s too high. At this point, time has passed and your insurance company will have more difficulty piecing together the evidence if you file a claim.

Also, keep in mind that you have no way of knowing whether another driver will change his mind and report the accident to his insurance company. He may even claim injuries that weren’t apparent at the scene of the accident. This means that your insurance company may end up paying him a hefty settlement, or worse yet, you could be dragged into a lawsuit. So make sure that your company has your version of what happened and check your policy — if the damages paid out by your insurance company are below a certain amount, the accident may not be considered chargeable. And you will avoid the penalty of a premium hike.

Auto accidents take a tremendous toll on everyone involved, both financially and emotionally. If you’re one of the lucky ones who have thus far avoided a serious accident, hopefully you will be able to keep it that way. The chances are high, though, that at some point you will be involved in a minor accident. Just keep your head and make safety your primary concern. With a little prior preparation and forethought the negative fallout from an auto accident can be greatly mitigated.

A person’s physical health, mental wellbeing and that of their family can be destroyed by a drunk driver. Even if this driver faces the criminal charge of felony DUI, what are the rights of the victim? A basic tenet of tort law is that a person who has been injured due to the negligent or criminal action of another person has a right to compensation for their injury. While trying to protect their rights DUI victims need to consider two important elements of the DUI tort.

Gather Information

The first element of a DUI tort is whether the driver was actually drunk and thus negligent. While it is a difficult and emotional task, you need to try to remember as much of the actual accident as possible. Since you were obviously shocked, traumatized and possibly unconscious in the course of the accident, how do you know the driver was drunk? It is very unlikely that they staggered over to witnesses and asked for a beer. Did you or anyone else notice them driving erratically prior to the accident? Were the police present at the scene of the accident?

The police should have written a report about the accident and you have a right to obtain a copy of this document from the police station. This report is very important as it contains information about the other driver, insurance, etc.; it will note if the other driver was charged for DUI. Did they take a breathalyzer test or refuse one? Was a blood alcohol test taken and what was the result? The police accident report may also include facts that you had forgotten during your trauma.

Another important element of the DUI tort are the damages or personal injuries the victim sustained. You need to gather information about your personal injury. It is always vital to see a physician as soon as possible after any accident. The hospital reports and the records of the physician will be important in proving the extent of your personal injuries, i.e. damages. You need to note what toll your injuries have taken on your family and also how much time you lost from your job.

Secure Your Rights

A DUI tort victim has the right to payment for medical care and rehabilitation. You also have the right to recover damages for any loss of pay you incurred due to your injuries. Your family has the right to compensation for what is known as “loss of consortium,” which is loss of the joy being able to interact with you as they did before the accident. Also, many states have a victims’ compensation statute.

You may feel overwhelmed after you have gathered all this information. How do you proceed to secure the compensation that is due you? You should not go through this procedure alone. You should talk to a DUI-victims’ rights attorney with experience in DUI victims’ cases. This attorney will know your rights and be able to gain you compensation for your personal injuries. If you have been the victim of a DUI accident the attorneys at Hudson and Associates can help you to secure your rights.

A trust is a legal arrangement through which one person (or an institution, such as a bank or law firm), called a “trustee,” holds legal title to property for another person, called a “beneficiary.” The rules or instructions under which the trustee operates are set out in the trust instrument. Trusts have one set of beneficiaries during their lives and another set — often their children — who begin to benefit only after the first group has died. The first are often called “life beneficiaries” and the second “remaindermen.”

Uses of Trusts

There can be several advantages to establishing a trust, depending on your situation. Best-known is the advantage of avoiding probate. In a trust that terminates with the death of the donor, any property in the trust prior to the donor’s death passes immediately to the beneficiaries by the terms of the trust without requiring probate. This can save time and money for the beneficiaries. Certain trusts can also result in tax advantages both for the donor and the beneficiary. These are often referred to as “credit shelter” or “life insurance” trusts. Other trusts may be used to protect property from creditors or to help the donor qualify for Medicaid. Unlike wills, trusts are private documents and only those individuals with a direct interest in the trust need know of trust assets and distribution. Provided they are well-drafted, another advantage of trusts is their continuing effectiveness even if the donor dies or becomes incapacitated.

Why should you have a will? Here are some reasons:

First, with a will you can direct where and to whom your estate (what you own) will go after your death. If you died intestate (without a will), your estate would be distributed according to your state’s law. Such distribution may or may not accord with your wishes.

Many people try to avoid probate and the need for a will by holding all of their property jointly with their children. This can work, but often people spend unnecessary effort trying to make sure all the joint accounts remain equally distributed among their children. These efforts can be defeated by a long-term illness of the parent or the death of a child. A will can be a much simpler means of effecting one’s wishes about how assets should be distributed.

The second reason to have a will is to make the administration of your estate run smoothly. Often the probate process can be completed more quickly and at less expense to your estate if there is a will. With a clear expression of your wishes, there are unlikely to be any costly, time-consuming disputes over who gets what.

Third, only with a will can you choose the person to administer your estate and distribute it according to your instructions. This person is called your “executor” (or “executrix” if you appoint a woman) or “personal representative,” depending on your state’s statute. If you do not have a will naming him or her, the court will make the choice for you. Usually the court appoints the first person to ask for the post, whoever that may be.

Fourth, for larger estates, a well-planned will can help reduce estate taxes.

Fifth, and most important, through a will you can appoint who will take your place as guardian of your minor children should both you and their other parent both pass away.

The help of an experienced attorney will be quite beneficial in creating a will to ensure that your wishes are carried out. If you have any questions or would like to schedule a consultation, do not hesitate to contact us.

For most people, the durable power of attorney is the most important estate planning instrument available–even more useful than a will. A power of attorney allows a person you appoint — your “attorney-in-fact” — to act in your place for financial purposes when and if you ever become incapacitated.

In that case, the person you choose will be able to step in and take care of your financial affairs. Without a durable power of attorney, no one can represent you unless a court appoints a conservator or guardian. That court process takes time, costs money, and the judge may not choose the person you would prefer. In addition, under a guardianship or conservatorship, your representative may have to seek court permission to take planning steps that she could implement immediately under a simple durable power of attorney.

A power of attorney may be limited or general. A limited power of attorney may give someone the right to sign a deed to property on a day when you are out of town. Or it may allow someone to sign checks for you. A general power is comprehensive and gives your attorney-in-fact all the powers and rights that you have yourself.

A power of attorney may also be either current or “springing.” Most powers of attorney take effect immediately upon their execution, even if the understanding is that they will not be used until and unless the grantor becomes incapacitated. However, the document can also be written so that it does not become effective until such incapacity occurs. In such cases, it is very important that the standard for determining incapacity and triggering the power of attorney be clearly laid out in the document itself.

However, attorneys report that their clients are experiencing increasing difficulty in getting banks or other financial institutions to recognize the authority of an agent under a durable power of attorney. A certain amount of caution on the part of financial institutions is understandable: When someone steps forward claiming to represent the account holder, the financial institution wants to verify that the attorney-in-fact indeed has the authority to act for the principal. Still, some institutions go overboard, for example requiring that the attorney-in-fact indemnify them against any loss. Many banks or other financial institutions have their own standard power of attorney forms. To avoid problems, you may want to execute such forms offered by the institutions with which you have accounts. In addition, many attorneys counsel their clients to create living trusts in part to avoid this sort of problem with powers of attorney.

While you should seriously consider executing a durable power of attorney, if you do not have someone you trust to appoint it may be more appropriate to have the probate court looking over the shoulder of the person who is handling your affairs through a guardianship or conservatorship. In that case, you may execute a limited durable power of attorney simply nominating the person you want to serve as your conservator or guardian. Most states require the court to respect your nomination “except for good cause or disqualification.”

When we continue, we will go into Wills and their place in the estate planning process. In the meantime, feel free to leave a comment, or if you have questions or want to consult an attorney, do not hesitate to contact us.

The knowledge that we will eventually die is one of the things that seems to distinguish humans from other living beings. At the same time, no one likes to dwell on the prospect of his or her own death. But if you postpone planning for your demise until it is too late, you run the risk that your intended beneficiaries — those you love the most — may not receive what you would want them to receive whether due to extra administration costs, unnecessary taxes or squabbling among your heirs.

This is why estate planning is so important, no matter how small your estate may be. It allows you, while you are still living, to ensure that your property will go to the people you want, in the way you want, and when you want. It permits you to save as much as possible on taxes, court costs and attorneys’ fees; and it affords the comfort that your loved ones can mourn your loss without being simultaneously burdened with unnecessary red tape and financial confusion.

All estate plans should include, at minimum, two important estate planning instruments: a durable power of attorney and a will. The first is for managing your property during your life, in case you are ever unable to do so yourself. The second is for the management and distribution of your property after death. In addition, more and more, Americans also are using revocable (or “living”) trusts to avoid probate and to manage their estates both during their lives and after they’re gone.
We will get into more about how these instruments differ in coming posts, but in the meantime, if you have any questions or want to schedule a consultation, do not hesitate to contact us.

1. Did you receive or make alimony payments in 2011? You may deduct from income the amount of alimony or separate maintenance you paid, and you must include in income the amount of alimony or separate maintenance you received. The IRS does not limit what you report as alimony to only amounts that you designate as alimony. Non-cash property settlements, whether in a lump sum or installments, do not qualify as alimony. Voluntary payments (i.e., payments not required by a divorce decree or separation instrument) do not qualify as alimony. Review topic 452 on the IRS.gov website.

2. Did you make or receive child support payments? Child support is never deductible. If your decree of divorce or separate maintenance provides for alimony and child support, and you pay less than the total required, the payments apply first to child support. Any remaining amount is considered alimony.

3. Did you move? If yes, you need to report your new address to the IRS. If you didn’t do so for 2011 be sure to update your tax withholding status with your employer for the new year.

4. Part of your divorce cost may be tax deductible. You cannot deduct legal fees and court costs for getting a divorce. But you may be able to deduct legal fees paid for tax advice in connection with a divorce and legal fees to get alimony. In addition, you may be able to deduct fees you pay to appraisers, actuaries, and accountants for services in determining your correct tax or in helping to get alimony. Talk with your accountant or CPA about this issue and be sure to bring all of your receipts and documentation with you to your appointment when you have your taxes completed.

5. Did you and your spouse sell property as part of your divorce? If so, you must report your share of the gain or loss on your income tax return for the year of the sale. This is determined by your state law governing ownership of property. For information see IRS Publication 544.

Here is a top ten list of do’s and don’ts for before, during and after a divorce. They seem simple enough, but a gentle reminder never hurts.

The Do’s:
1. If you have children make sure they know they are not the reason for the divorce.
2. Always show respect towards your spouse in front of your children.
3. If you’ve moved into a new place make your children feel that your new home is also their home, including making them responsible for whatever chores they were previously responsible for.
4. Remember that your children have a social life. They have soccer, birthday parties and friends. It is important that their social life be as normal as possible.
5. If you are going to use an attorney, choose one that is experienced in family law. A good divorce lawyer will know what is reasonable and what is not. Keep in mind though that the proverbial “shark” is usually not the best choice.
6. Be straightforward with your attorney. For your divorce attorney to do their job effectively you have to be open and honest, especially about your financial matters.
7. Be practical and flexible. Finding the middle ground often results in a quicker and easier conclusion in divorce cases.
8. Document everything that you might think will be important. Also, keep a journal of important dates and events.
9. Use common sense when deciding what to fight for and at what cost should you fight for it.
10. Get professional help if you need it to cope with the emotions of your divorce.

The Don’ts
1. The Internet is not the place to air your dirty laundry. Don’t give in to the temptation to “tell all” on Facebook or Twitter.
2. Though they may have good intentions, don’t listen to your friends who try to tell you what to do. That is your attorney’s job…. that’s what you’re paying them for.
3. Don’t pay your child support or spousal support late.
4. Your children should not know the details of your divorce… regardless of their age.
5. If you are in a new relationship don’t expect your children to fall head over heels for that person just because you have.
6. If you feel the need to talk trash about your spouse don’t do it when there is even a remote possibility your children will hear you.
7. Don’t question the children regarding the activities of your (ex) spouse.
8. You can’t change what has already ready happened so don’t rehash the things in the past.
9. Your children are not messengers. Aside from putting them right in the middle, you are also relying upon the child to get the message to your spouse correctly and in the manner you meant it.
10. Don’t stop the children from seeing the other parent because he or she owes you money.

If you use these guidelines, you will find that you will behave in a mature and rational way. Not only can you be proud that you took the high road but you will find that more things will be better for you and your children in the end. Easier said than done but give it your best try, you’ll be happier in the end.