What is a Quiet Title Action?

Also known as an action of quiet title, a quiet title action is a lawsuit—that is brought to establish or settle the title to a property. Clarifying ownership can be a complex and frustrating process. Real property lawyers can help you understand how a quiet title action works and represent your interests in a lawsuit.

Understanding a Quiet Title Action

When one party with an interest in a property files a claim against other parties who have a claim to an interest in the property, the purpose is to determine who is the legal owner of the property named in the lawsuit. When there is disagreement about a claim to title, the action is meant to “quiet,” or remove the objection and eliminate any ambiguities in the title.

If the plaintiff wins their case and a quiet title action is settled, they will own the property in perpetuity, as will their heirs. The plaintiff will also be protected from any further claims of ownership by other entities. Depending on the complexity of the case, a quiet title action can take anywhere from eight to ten weeks or longer.

Reasons for Filing a Quiet Title Action

There are multiple scenarios in which a quiet title action may be necessary, including:

To clear up claims on the ownership of titled real property, often after the death of the owner. This is particularly common when there are questions about whether all beneficiaries have been notified of the sale of an estate. A probate attorney or wills and trusts lawyer should be able to help you if title issues arise when settling an estate.

When a mortgage lender’s interest in the property was not properly resolved after a loan was paid off.

To clear the title of an unoccupied or abandoned property, which allows outside parties to make bids to purchase it.

The conveyance of an interest in a property via a quitclaim deed, in which the former owner denies interest, but does not guarantee that the title is clear.

To convey title to a property in a case of adverse possession, which is when a party occupies property that is not legally theirs for the purposes of laying claim to it.

A quiet title action may also be used to settle tax issues with a property; boundary disputes, surveying errors, and fraudulent conveyance of the property by coercion or forged deed.

Although a quiet title action can resolve these types of issues, it does not give the new owner the same level of protection as a warranty deed. For example, if there are problems with a house, the new owner may not be able to sue the previous owner if they acquired the property through a quiet title action. In addition, a quiet title action will not clear up all issues with a title in every case. In some instances, they can only resolve specific title defects or claims.

At Carosella & Associates, our experienced estate law attorneys can assess your circumstances, determine whether a quiet title action is appropriate, and provide the quality legal representation you need to resolve title issues.

This blog was originally posted at https://carosella.com/blog/what-is-a-quiet-title-action/

Buying a Property in Foreclosure: What You Need to Know

Buying a foreclosed property is a great way to get your feet wet when it comes to real estate investing or purchasing a home. Although the low price of a property in foreclosure is often worth the effort, the process is different from traditional real estate transactions. A good real estate lawyer can help you understand the pros and cons of purchasing a foreclosure, guide you through the process and protect your interests.

What is a Foreclosure?

When a property owner defaults on a mortgage, a lender will take ownership and try to recover their investment by selling a foreclosure for less than market value. Some lenders post bank-owned properties online and the U.S. Department of Housing and Urban Development publicly lists its foreclosures as well.

Types of Distressed Sales

In addition to purchasing a foreclosed property directly from a lender, there are a few other options for getting a good deal on a home or investment property, including:

• Pre-foreclosure –Buying directly from a seller who is behind in their mortgage payments before a lender claims the property.
• Short sale – When a homeowner owes more than a property is worth and a lender forgives some of the debt.
• Public auctions – Bidders have the opportunity to make offers on foreclosed or sheriff’s sale properties.

Get Pre-Approved for a Loan

Unless you’re paying cash, it is always best to get a pre-approval letter from the bank before you make an offer on any property. Having proof of a mortgage pre-approval shows buyers that you are serious about purchasing a foreclosure. It is also important to remember that many foreclosed properties need repairs or renovations, so make sure you apply for an amount that will cover these expenses.

Many people think that foreclosures are only bought by real estate investors who pay cash. This is not always the case. There are plenty of lenders who are willing to help buyers find the right loan to purchase a foreclosure.

Check out Comparables

Running a comparative market analysis (CMA) can help you determine recent sale prices of similar properties in the area. Your attorney can assist you with finding comps and let you know what they think would be a competitive offer for the local real estate market.

Prepare to be Competitive

Because foreclosures are often snapped up by professional investors, understanding how to make a reasonable offer is essential. If a sale is particularly competitive, you may have to offer a bit more than the asking price, but your lawyer will advise you of how much is too much. If you’re buying a commercial property, some business lawyers also handle these types of real estate transactions.

Know that You are Buying in As-is Condition

Property owners who are short on cash sometimes neglect routine maintenance and repairs, so a home inspection is a must. If you’re dealing with serious issues like structural damage, termites, or extensive water damage, make sure to seriously consider repair costs and what your return on your investment may be.

Buying a Distressed Property is a Complex Process

Unlike a straightforward, traditional real estate transaction, buying a foreclosure or short sale requires the specialized knowledge of an experienced Pennsylvania real estate lawyer who is familiar with the process and the law. Your attorney can handle negotiations and deal with any title or deed issues that may arise. Having a lawyer review contracts and any real estate sales agreements is also essential.

Are you considering buying a property in foreclosure? Our experienced team at Carosella & Associates can help.

This blog was originally posted at https://carosella.com/blog/buying-a-property-in-foreclosure-what-you-need-to-know/

Should You Seek Guardianship for an Aging Parent?

As your parents age, the roles of parent and child may be reversed. Adult children often find themselves taking on responsibilities like paying bills, taking a parent to doctor’s appointments, and making sure they are eating properly. Over time, a parent’s ability to perform basic tasks may decline, especially if they suffer from dementia. Although an estate plan and legal documents like powers of attorney can enable you to help your parent make decisions, sometimes a guardianship or conservatorship may be necessary. So how do you know if you need to seek guardianship for an aging parent or a loved one with dementia? An experienced attorney can take a look at your parent’s specific circumstances and advise you of your options.

Your Parent Does Not Have Current Powers of Attorney

Powers of attorney for finances and health care are valuable tools that can protect your parent’s health, safety, and financial security. If your parent does not already have POAs in place and you are worried about what will happen if they fall ill or someone tries to take advantage of them, talk to your attorney about filing for guardianship. Even if your parent has signed a power of attorney, some transactions such as the sale of real estate and other investments may require guardianship, depending on the state. If a parent has already been deemed incapacitated by the court but does not have executed powers of attorney, guardianship may be your only option.

Decision Making Abilities are Compromised

It can be challenging to know when legal guardianship is necessary. For example, if your loved one lives alone and refuses to accept help to make their living situation safer, you may want to look into guardianship. If a parent has lost the ability to make financial decisions, declines necessary medical care, or is unable to take care of other personal matters, you can petition the court for guardianship.

Obtaining Guardianship

In Pennsylvania, a guardian for an adult is only appointed if they are deemed incapacitated by a court.  The court will hear evidence that the person does not have the mental capacity to handle some or all aspects of their life. If a judge determines that the person cannot make informed decisions for themselves, a guardian will be appointed. It is important to keep in mind that your parent has the right to an attorney and may object to the appointment of a guardian or conservator.

To become a legal guardian, you must demonstrate that you are capable of acting in your parent’s best interest. When petitioning the court for guardianship, finding a law firm that employs both family law attorneys and estate lawyers who work collaboratively can help to ensure you have qualified legal representation.

Courts prefer to appoint close family members as guardians. However,  if a case is highly contested by loved ones or an incapacitated person does not have anyone close to them who can act as a guardian, a judge may appoint a professional such as a social worker to handle their affairs.

If you are concerned about an aging parent, our team at Carosella & Associates can determine whether guardianship is appropriate and provide legal counsel you can trust.

This blog was originally posted at https://carosella.com/blog/should-you-seek-guardianship-for-an-aging-parent/

How to Provide for Pets in Your Estate Plan

For many people, pets are members of the family. Considering how to provide for your pets after you’re gone can help to ensure they are well taken care of and make a challenging time easier for your loved ones. It is important to keep in mind that under the law, pets are considered property, so you cannot leave anything directly to them. Wills and trusts lawyers can help you understand the different options that can help protect your pet in your estate plan.

Designate a Caretaker and Funds in Your Will

One of the easiest ways to name a caretaker and allocate money to take care of your pet is to include it in your will. Choose wisely when designating a primary and secondary caretaker for your pet. It is important to select someone you trust to use the funds for your pet’s care, as the manner in which they use the money is not typically monitored or enforced. Before naming a caretaker, make sure they are willing to take on the responsibility so they are not blindsided in the event of your death.

Name an Agent in a Power of Attorney

You can also include language in your general power of attorney that authorizes your agent to care for your pet, place your pet with a specified caregiver, and/or spend money to provide for your pet’s care. Putting this language in a power of attorney can help protect your pet in the event of your incapacitation.

Set up a Pet Trust

A reliable way to provide for a pet is to set up a pet trust. In this type of trust, you can name a trustee that has a legal obligation to look out for the welfare of your pet, according to your instructions. A pet trust provides accountability for the funds you leave to the caretaker and enables you to outline a caretaking plan that takes effect if you become incapacitated. The names of the trustee and caretaker, detailed instructions, and the amount of money necessary to care for the pet should be included in the trust. Setting up and administering a pet trust is more costly than simply naming someone in a power of attorney or will. If you have confidence in the person you have named as a caretaker, a trust is probably unnecessary.

Being Prepared Can Protect Your Pet

A wills and estate attorney can help you determine which option may work best for your specific circumstances. Regardless of which option you choose, keeping a card in your wallet that has information about your pet and how to contact their caretaker can help to ensure they are taken care of in case of an emergency. It is also important to make sure your pet’s caretaker knows how to access your home to retrieve your pet. If you do not have anyone who can care for your pet, the SPCA and other rescue organizations offer legacy programs that find trustworthy caretakers for pets whose owners have died.

Our estate planning law firm helps clients create plans to protect all members of the family, including beloved pets.

This blog was originally posted at https://carosella.com/blog/how-to-provide-for-pets-in-your-estate-plan/

How to Discuss Estate Planning with Your Parents

Talking about estate planning can be uncomfortable. After all, who wants to think about their own mortality or losing a loved one? Although it may be a touchy subject, it is never too early to address these issues with your parents or other loved ones. The uncertainty of the COVID-19 pandemic has led many people to consider what they want as far as medical and end-of-life decisions go, and has motivated them to make sure their affairs are in order in the event of incapacity or death. Finding an experienced attorney at an estate planning law firm can make it easier to talk with your parents and help your family create a plan that gives everyone peace of mind.

Include Your Siblings

When only one adult child in a family knows the details of their parents’ estate plan, it can lead to distrust and conflict down the road. Before you bring up estate planning with your parents, having an open and frank discussion with your siblings can help you prepare for the conversation and give the process a sense of transparency.

Do it Now

Waiting to talk about estate planning with your parents can have tragic results. Life is unpredictable, and circumstances can change in the blink of an eye. Set up a day when everyone has plenty of time to discuss all aspects of estate planning. If your parents are hesitant about it, let them know you want to discuss these issues to protect them, ensure their wishes are carried out as specified, and make things easier for the family should an unexpected illness, injury, or death occur.

Address Powers of Attorney and Advance Directives

There are several vital documents that should be included in any estate plan. Before your parents create powers of attorney and advance health care directives, they will need to decide who to name as agents to make decisions on their behalf and which types of medical treatment they do or do not want. Making these important decisions ahead of time and discussing them with the whole family can help take a lot of weight off everyone’s shoulders.

Talk Finances

If your parents already have a will, make sure it is updated, especially if they have gotten remarried or experienced other significant life changes. Even if they consider their finances private, letting their children glean an understanding of their assets and wealth overall can be helpful. This is also a good time to talk about long-term care and whether certain types of trusts may provide benefits to your parents and family.

Help them Find an Estate Planning Attorney

If your parents do not have an estate planning attorney they are already working with, encourage them to consult one. Whether they already have a plan or they are starting from scratch, a wills and trusts lawyer can take a comprehensive look at their specific situation and address any concerns or questions they may have. Wills and estate attorneys can provide legal advice that can help them understand how estate planning works and create a solid plan that protects everyone’s interests.

This blog was originally posted at https://carosella.com/blog/how-to-discuss-estate-planning-with-your-parents/

How Does Business Valuation Work? Here’s What You Need to Know

There are several methods and factors involved in determining the monetary worth of a business. Proper business valuation is important when buying or selling a business, adding shareholders, wooing investors, and applying for loans or other financing sources. Experienced business lawyers know what to look for and analyze when determining the value of a business. Understanding the various ways the valuation of a company may be determined can help you make sound decisions whether you are thinking of buying or selling a business.

Asset-Based Business Valuation

Also known as book value, asset-based business valuation totals all the investments in the company and can be determined in two ways. A going concern asset-based approach involves a review of the business’s balance sheet, lists the company’s total assets, and subtracts its total liabilities.

If you opt for a liquidation asset-based method, a value is placed on the company according to the net amount of cash that would be available if all assets were sold and all liabilities were paid. If you are selling a profitable, thriving business, you may be able to get more than book value for your company.

Market Valuation

This method determines how your business stacks up to comparable companies that have recently been sold. To a fair market value, research how much comparable businesses have sold for in the past two years and value your business at a similar amount.  Although you most likely want to price your businesses at fair market value, you can increase or decrease the cost, depending on the data that shows what buyers will pay.

Income Valuation

The income method looks at your past profits and cash flow to determine what your business is worth. Using your profit and loss statement, you can project future profits and debts. If you’re selling a small business, it is important to remember that buyers often take out a small business loan to purchase a company, so you want to demonstrate to the buyer that your business can produce enough profit to pay off the loan. Typically, the more effective your business is at paying debts, the higher its valuation will be.

How to Improve Your Small Business Valuation

Careful planning can help get your business off to a good start or improve the valuation of an established business. One key element of this is to have a business succession plan in place.

It is also vital to maintain accurate, up-to-date records, such as financial statements, profit and loss statements, and accounts payable/receivable. Having all this information organized and readily available can help buyers see the potential risks and profits buyers may face. Hiring a qualified accountant or diligently utilizing accounting software can enable you to keep track of your company’s finances.

Business valuation can be more complex when selling a sole proprietorship. While all assets in a corporation, LLC, or LLP are owned by the company and would typically be included in the sale of a business, separating business assets from personal assets in a sole proprietorship can be challenging.

Have a Professional Do Your Business Valuation

Although you can do your own business valuation, consulting an experienced professional is a must to ensure the number you put on your company is accurate. Our business lawyers in West Chester can offer valuable legal advice and help you get the most for your money whether you are buying or selling a business.

This blog was originally posted at https://carosella.com/blog/how-does-business-valuation-work-heres-what-you-need-to-know/

How To Confirm Ownership Of A Deceased Parent's Estate

Finding out that a parent has passed away is difficult, even if your relationship was strained or nonexistent. If your parent died and you have not been in recent contact with them, it can be challenging to locate all their assets and determine ownership. Probate and estate lawyers handle these types of matters frequently. If you are dealing with a deceased parent’s estate and need help confirming ownership of assets, hiring an attorney can ease the frustration you may be feeling and make the process more expedient.

Attempt to Locate a Will

Even if you do not think your parent had a will, one of the first steps to take is to try and find one. A valid will may be able to tell you much of what you need to know about the ownership of your parent’s estate. If your parent created a will, they most likely would have used an attorney from an estate planning law firm, which may have a copy of it. If you have access to your parent’s home or belongings, go through them to look for a will. If you find one and you were included as a beneficiary, the executor of the will should have contacted you and notified you of any inheritance. If necessary, you may be able to contest the will, depending on whether the probate and estate settlement process is completed.

Do Some Investigating

Regardless of whether you find a will, if you know who your parent’s attorney was, contact them to find out if they have any information about the estate and ownership of assets. You can also contact the probate court in which the estate was settled to find out which assets went through probate and who acted as the executor or personal representative. You may want to search public records of ownership, such as the county recorder’s office in the area to find deeds that were recorded for any real estate your parent may have owned.

Contact an Attorney

If it all seems too overwhelming, a family wills and trusts lawyer can do the investigating for you. Make sure to give your attorney everything you have related to your parent’s assets or estate, including the will, tax returns, account statements, any deeds or titles to property, and other financial information. There are different types of searches your lawyer can do to find vehicles, businesses, life insurance policies, annuities, retirement accounts and benefits, abandoned assets, and other assets that may be part of your parent’s estate. Your lawyer may work with a real estate attorney to search for any property your parent may have owned.

Laws of Intestacy

It is important to keep in mind that if you cannot find a will, the laws of intestacy of your state or commonwealth will apply to any assets your deceased parent-owned solely. If your parent has a living spouse, most of their assets will likely go to them. If your parent was not married or their spouse is deceased, any estate assets you find will be distributed equally among your deceased parent’s children. Even if you are able to locate and determine ownership of assets, if your parent’s estate was already settled and distributed, court litigation may be required to recover any share of assets you believe may be your rightful inheritance.

Do you need assistance with estate planning, probate or other legal matters? The experienced legal team at Carosella & Associates can help.

This blog was originally posted at https://carosella.com/blog/how-to-confirm-ownership-of-a-deceased-parents-estate/