AEGómez, PC

What you need to know about an Examination Under Oath (EUO)

Fri, 28 Aug 2020 01:16:00 GMT

Almost every insurance policy has a provision requiring you to appear for an Examination Under Oath (“EUO”). This is one of your many post-loss duties.

An EUO is a formal proceeding conducted by an attorney hired by the policyholder’s insurance company in front of a before a court under oath. Like a deposition, the statements you make under oath at an EUO are admissible in a court of law. You do, however, have the right to have an property damage attorney present but the policyholder’s property damage attorney may not ask questions and may not raise objections. This is the primary difference between an EUO and a deposition.

An EUO under a property damage insurance policy is known as a condition precedent. This simply means that you must comply with the terms in order to obtain coverage for the loss. Note that if you refuse to comply with any condition precedent, your insurance company may deny your claim even if the loss Is otherwise covered.

In addition, your insurance company may take the EUO of anyone who qualifies as an insured under the insurance policy. This includes other members of your household, or in the context of a commercial property damage insurance policy, this potentially includes other partners. Your insurance company also has the right to examine you separately. For example, if you and your spouse are both insureds under the policy, you cannot sit in on each other’s EUO.

Furthermore, your insurance company may request that you produce documents pertinent to the claim either before or at the time of the EUO. If you fail to comply with their requests, they can use it as a basis to deny your claim.

The scope of a EUO is broad. It’s purpose is to allow your insurance company the opportunity to gather information from you regarding the facts, circumstances, and amount of a loss. Often times, however, it is frequently used as a means to justify denying your claim. So it is imperative to consider consulting with an experienced insurance property damage attorney before agreeing or refusing to be examined under oath.

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To Appraise Or Not Appraise

Sun, 16 Aug 2020 22:48:00 GMT

When there is a disagreement with your homeowners insurer concerning your claim, there are many ways to resolve it — adjustment, mediation, arbitration, appraisal, or litigation. All have their good and bad points. The focus of this article is to determine the issues concerning appraisal. In other words, do we appraise or not appraise. Below are the appraisal process pros and cons.

The vast majority of homeowner insurance policies include an appraisal provision — an alternative dispute resolution process that resolves issues regarding the amount of loss.

How Does the Process Work?

If a policyholder and insurance company can’t agree on the value of the loss, usually either can demand that the damages be determined by appraisal. Here is how the process generally works:

Is the Dispute Eligible for Appraisal?

If your dispute concerns how much your property is worth, then yes, it is eligible for appraisal. But if it involves coverage issues, then no. The appraisal panel also will not resolve, among other issues:

Danger of electing an Appraisal?

You should know that by electing that process, it can often be more harmful then helpful. By electing appraisal, once an umpire rules on your matter, no matter how unfavorable or unjust their decision is, it is the final word in your matter. However, if mediate or litigate your matter, you are provided greater negotiation opportunities as well as the opportunity to not accept an offer or even set aside a bad ruling.

So, unless you need to resolve your situation quickly, there are more risk to the homeowner than there is benefit in going down the path of appraisal – which is why insurance companies prefer the appraisal process, as it is typically more advantageous to their objectives then to the homeowner.

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Daily Field Reports — shift liability and minimize litigation

Fri, 26 Aug 2016 19:25:00 GMT

Just want to talk briefly cover a topic that is very important in mostly all construction projects, but very often overlooked — daily field reports.

In medium to large projects, I highly recommended that you create and keep daily field reports. A well-drafted daily field report is your best ally when confronted with possible litigation, specifically delay claims and other project related issues. In fact, daily field reports can, practically speaking, minimize litigation; here’s how. Imagine a construction project gone bad — defective workmanship, delays of several months, and the numerous subcontractors and sub-subcontractors arguing as to who’s at fault. The owner(s) and general contractors don’t understand why. Who’s to blame? The HVAC guy? The drywall guy? The list goes on and on.

In this scenario, let’s say you’re the plumbing subcontractor. If you prepared and kept your daily field reports, it may help clarify the issues. Here’s how — imagine an entry in your daily field report like this: “3 master plumbers and 5 apprentices on-site. master input and output connections installed. Drywall tradesman not on site; walls remain unfinished.”

This type of entry reveals that the drywall tradesman has unfinished business. If this somehow affects your work on the project, any delay claim against you will be difficult to prove. Why? Here’s another reason why daily field reports are handy — courts like to rely on them. Think about it; a daily field report is completed daily. That’s your best recollection of the day’s events. What’s better, your recollection on the day of, or months, if not years, later? Courts understand that and that’s why they rely on these reports to sort out any “recollection” issues between the general contractors, subcontractors and other tradesmen.

If you have any additional questions on how a well drafted daily field report can help your business and make your projects run smoother, let me know.

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Indemnification Clauses — Construction Contracts

Thu, 10 Dec 2015 17:58:00 GMT

Indemnification Clauses — Construction Contracts.

What to look for when negotiating a Construction Contract.

Indemnification, in short, is where you agree to bear the entirety of the loss of a third party who has filed a claim against you. The obligation to indemnify is created by contract, and is found in virtually every meaningful construction contract.

Practically speaking, indemnification works like this — let’s say a Plaintiff sues us for money damages. You and I have a contract, however, where you agree to indemnify me for any loss I may have to pay that third party. If it turns out that I have to pay that Plaintiff anything, I can then turn to you and demand, pursuant to our contract, that you pay me the monies I paid. This scenario is the one I want you to look out for.

Typically, though, Indemnification causes require one party to indemnify the other for their own negligence. Using the example above, if the indemnification clause was written fairly, you would only be responsible to indemnify me if you were the responsible party.

A sample indemnification clause in a construction contract may read as follows: “Contractor agrees to indemnify and hold harmless Owner for all claims or losses sustained in relation to Contractor’s performance under this agreement. Contractor also agrees to obtain sufficient insurance to protect against all such loss, hereby waives all rights to subrogation against Owner, and will deliver a copy of said policy within seven (7) days of execution of this agreement that lists Owner as a secondary insured.”

Under that scenario, Contractor will be responsible to Owner for Contractor’s performance, and not any of Owner’s actions or inactions.

So to summarize indemnification, there are two types of clauses; one makes you responsible for your and my actions, while another only makes you responsible for only your negligence. To be an effective negotiator, you’ll need to identify and recognize both. Failing to do that can adversely impact your business.

I hope this gives you a better understanding of indemnification provisions in construction contracts. If you have additional comments, concerns or questions, please consult a construction lawyer in your area. Next time, I’ll address “No Damages for Delay”. Stay tuned.

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Attorney Fee Provisions in Construction Contracts

Mon, 14 Sep 2015 20:50:00 GMT

As promised, the next installment in my series about the construction contract involves the attorney fee provision. Like most other provisions, a well crafted one can be a very powerful tool to resolve disputes; one drafted poorly, however, can be a frustrating experience. At first glance, you’ll need to look out for provisions where one party, in this case you, bears the sole responsibility to pay for attorney fees.

But what if the contract is silent on the issue? Virginia, like most states, follows the so-called “American Rule”. In short, this “rule” states that all parties to a lawsuit will pay their own attorney fees unless a contractual provision or statute provides otherwise. As such, you need to be very mindful of provisions that shift the entire responsibility to you.

A sample attorney fee clause may read as follows: “In any proceeding by which one party either seeks to enforce its rights under this Agreement or seeks a declaration of any rights or obligations under this Agreement, the prevailing party shall be awarded its reasonable attorneys’ fees, and costs and expenses incurred.”

These provisions can also take the form of an indemnity (you make the prevailing party whole for any loss caused by your negligence), straightforward fees provision (each party pays for their own attorney fees), or any combination. These provisions can be one way (e. g. the general contractor can collect the fees if it prevails, but the subcontractor cannot) or “prevailing party” (e. g. whoever wins in court gets its fees).

I hope by now you have picked up on something that most don’t — who gets attorney fees when the parties settle out of court or before trial? The answer is one that never brings a smile to my clients’ faces — no one. Why not? They ask. Well, let’s go back to our sample clause above — the “prevailing party” is entitled to attorney fees. If both parties negotiate and come to an amicable resolution, who is the “prevailing party”? The answer is nobody.

Thus, unless you are going to take your breach of contract claim or construction defect claim to judgment, these clauses, many times, are legally impotent and without any practical application. That’s not to say they should be ignored, because they shouldn’t. A well written attorney fee clause can even be used to deter the trial itself. They can be instrumental in settling the dispute or claim. A party knowing there is a well-written attorney fee provision in place may be more inclined to settle, especially if they know they have a weak position, because they don’t want to pay for your attorney fees as well!

But should your opponent make that tactical error and proceed to trial, a properly drafted attorney fee clause in a construction contract, as I mentioned at the onset, can be a very powerful tool. Imagine a day where, via a judgment, you collect your full damages and your attorney fees. Glorious day, indeed!

I hope this gives you a better understanding of attorney fee provisions in construction contract. If you have additional comments, concerns or questions, please consult a construction lawyer in your area. Next time, I’ll address indemnification clauses. They’re kind of like attorney fee provisions, but they’re not. I’ll explain the details on my next post. Stay tuned.

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Construction Contract provisions — “Pay-if-paid” clauses v. “Pay-when-paid” clauses

Tue, 25 Aug 2015 02:19:00 GMT

For those of you construction professionals that insist and take pride in taking an “all-inclusive” interest in your company; I applaud you. You should take pride in what you do, your work, your clients and developing those relationships. It is, after all, your business. It is, after all, how you pay your bills and provide for your family. Pretty important, huh. I’m not trying to minimize this, rather, I’m trying to emphasize how important your business is to you, your family, your employees and their families.

Being that as it is, why would you ever negotiate, enter into and sign a construction contact without knowing what you have obligated you and your company to? Would you ever agree to buy a house without knowing whether the foundation in sound? Would you ever buy a car without knowing how many miles it has? Of course not! Then don’t sign a construction contract without knowing what you’re getting yourself into.

In my years of construction litigation, I’ve heard ever excuse for signing a contract without looking at it first — “I’ve dealt with him before and he’s a good guy”; “I wouldn’t have understood that ‘legalese’ anyways”; “I was too busy”; “It was just a small job. It was no big deal”; and, “I was just a small sub on the project.” Does any of this sound familiar? I hope not, but if it does, I’ll give you tips on what to look for when negotiating your next construction contract.

Over the next several weeks, I am going to publish a series of articles designed to, identify, address and, hopefully, demystify many of the clauses contained within many construction contracts. This week, I’m going to start with “Pay-if-paid” clauses v. “Pay-when-paid”.

As its name implies, with a “Pay-if-paid” clause, you will get paid when someone else gets paid. For example, If you are the sub on a particular project; very typically, you will not get paid until and unless the GC gets paid first. While these types of contracts are not terribly common, you don’t want to find out the hard way — i.e., your request for a progress payment is denied on the basis that the Owner didn’t pay the GC, or your retainage is held for the same reason.

A “pay-if-paid” provision makes payment to a lower tier subcontractor or supplier conditioned on the GC receiving payment from a higher tier party, namely the project owner. In reality, a “pay-if-paid” provision limits the GC’s liability and shifts the risk of the project owner’s non-payment to the subcontractor. A typical “Pay-if-paid” clause reads as follows:

“Receipt of payment by the Contractor from the Owner for the Subcontract Work is a condition precedent to payment by the Contractor to the Subcontractor. The Subcontractor hereby acknowledges that it relies on the credit of the Owner, not the Contractor for payment of Subcontract Work. Progress payments received from the Owner for the Subcontractor for satisfactory performance of the Subcontract Work shall be made no later than seven (7) days after receipt by the Contractor of payment from the Owner for the Subcontract Work.”

On the other hand, a “pay-when-paid” clause requires payment to the subcontractor when the GC gets paid. The obligation to pay under the “pay-when-paid” provision is triggered upon receipt of payment from the project owner. Courts in Virginia have interpreted “pay-when-paid” clauses to mean that the contractor’s obligation to make payment is suspended for a reasonable amount of time for the contractor to receive payment from the project owner. This type of provision essentially creates a timing mechanism to make payment, and does not expressly shift the risk of the project owner’s non-payment to the subcontractor. A typical “Pay-when-paid” clause reads as follows:

I hope this helps. If you have additional comments, concerns or questions, please feel free to reach out to me or consult a construction lawyer in your area. Next time, I’ll address attorney fee provisions in construction contracts. Stay tuned.

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Starting your own business? — Great! Before you do, though, take a look at this. (Part 2 of 2)

Mon, 13 Jul 2015 02:16:00 GMT

Business Entities in Virginia

How to choose the right one for you and what to do before you open your business

Part 2 of 2

What to do after formation

As promised last week, here’s the next installment. Now you have formed your business — you have analyzed what entity is best for you, you have assessed the legal liability, you have filed the appropriate state documents — now what?

Apply for an Employer Identification Number (EIN) from the IRS.

Apply for a County/City business license (if required by your locality).

Open a commercial bank account.

Prepare your core contracts and agreements — Always remember that good contracts prevent problems!

What professions require additional licensing?

The Commonwealth of Virginia may require additional licensing requirements.

Title 54.1 of the Virginia Code provides additional guidance regarding what addition professions require licenses and permits. For additional information, please go to http://law.lis.virginia.gov/vacode/title54.1/

Finally, always be very aware of local business licensing and requirements. Those are the ones that can bite you if you’re not prepared.

Local Business Licensing

Town of Wytheville

Municipal Ordinance Section 7-19 provides that “[I]t shall be unlawful and shall constitute a misdemeanor for any person to conduct a business, or to engage in a profession, trade or occupation within the municipality, without first procuring a license as required under the provisions of this article.” Simply put, if you have an office in Wytheville, you’re going to pay a tax. If you have offices in multiple locations, your tax will be pro-rated to what revenue was earned in the Town of Wytheville.

Carroll County

A business license is not actually required in Carroll County. New business owners need to register their business name with the Commissioner of Revenue by completing a New Business Registration form (Form CC-1) found on Carroll County’s website at: http://carrollcountyva.org/docs/cor/business_form.pdf or by going to Commissioner of Revenue Carroll County Governmental Center 605-7 Pine Street, Hillsville, VA 24343 — (276)730-3080.

Grayson County

A business license is not required for Grayson County BUT please see rules for the Towns of Independence and Fries, as licensing requirements may differ. Businesses need to register with the Commissioner of the Revenue in Grayson County at:
PO Box 126, Independence, VA 24348. Phone: (276) 773-2381 Fax: (276) 773-0444

City of Galax

Business Licenses:

Commissioner of Revenue
Room 109 of the Municipal Building 111 E. Grayson Street
Galax, VA 24333
276-236-2131 (phone)

Town of Fries

Business Licenses:

A business license is not required in Fries, although businesses do need to register with the Town Hall located at:
105 West Main Street
Fries, VA 24330

Phone: (276) 744-2231

Town of Independence

Business Licenses:

A business license must be purchased in Independence before a business can be opened. A business must list before May 15th each year and pay before July 15th each year. Contact the billing clerk in Independence for more information at: 136 East Main Street, Independence, Virginia 24348 Phone: (276)773-3703 Independence, Virginia 24348 Phone: (276)773-3703

Town of Hillsville

Business Licenses:

Business License applications are available at Town Hall, located at: 410 North Main Street
Hillsville, VA 24343 Phone: (276)728-2128

Applicants should have estimated gross receipts for their business upon application.

As you can see, there is plenty to consider. Failing to file the appropriate tax and licensing documentation can lead to serious tax and legal liability. Please note that the information above is not meant to be legal advice. As such, I highly recommend you consult a legal professional for advice on what documents are necessary and when they should be filed.

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Starting your own business? — Great! Before you do, though, take a look at this. (Part 1 of 2)

Tue, 23 Jun 2015 02:15:00 GMT

Business Entities in Virginia

How to choose the right one for you and what to do before you open your business

Part 1 of 2

4 Primary Forms of Business Entities in Virginia:

Sole Proprietorship;

Partnership;

Limited Liability Company; and,

Corporation

Things to consider when choosing:

Structure of ownership (number of owners, classes, possible expansion);

Long term plans (sale, expansion, investments, inheritance);

Tax advantages – S corp. election (wages vs. dividends); and,

Protection of personal assets – limited liability

Two Bad Choices:

Sole Proprietorship and Partnership

Both expose the owners to unlimited personal liability and lack flexibility – limits on investment/expansion possibilities, exit strategies. They also have a disadvantage for tax planning (no S corp). Simply put, these are a very dangerous way to operate a business.

Limited Liability Company

An LLC is an unincorporated association of one or more members organized and operated under the rules of the Virginia Limited Liability Act. An LLC can be formed for any lawful type of business and offers limited liability protection for all of its owners (called “Members”).

Limited Liability Company Organization – three key parts:

1. File Articles of Organization with the State Corporation Commission

2. Execute an Operating Agreement

3. Pick your tax status

Articles of Organization for LLC’s

Must contain certain information required by the LLC Act – principal office address, registered agent and office, name (see §13.1-1011 of the Virginia Code).

In addition, the name must contain the words “limited liability company,” “limited company,” or the abbreviations “LLC” or “LC”. The name of the LLC must be different from the name of any other Virginia LLC; and, approval of your name by the SCC is NOT trademark clearance!

Other aspects of a limited liability company:

Can be owned by one or more individuals or entities. No limit on members.

May be managed by the members or by managers (who may or may not be members themselves)

Members control the LLC in proportion to their ownership stake unless otherwise agreed to in the Operating Agreement and an LLC can be in existence forever.

In addition, the owner has no personal liability for the debts and obligations of the LLC (similar to corporation). LLC’s with more than one member can choose to be taxed as a partnership or an S corp. With only one member, can choose to be taxed as a sole proprietor (disregarded as a separate entity) or as an S corp. Yes, LLC’s can be taxed as an S Corp!

Advantages of an LLC:

Limited liability for the owners;

Complete flexibility in setting up the Operating Agreement;

Less formalities than a corporation; and,

Tax benefits.

Disadvantages of an LLC:

There really are no major disadvantages. The initial cost to set up ($100 filing fee) and maintain ($50 per year)

Corporations

Corporations are a separate legal entity, created pursuant to the laws of Virginia, which is treated for all purposes as a separate person. A corporation may engage in any lawful business.

Corporate Organization

Corporations are formed by filing articles of incorporation with the State Corporation Commission. §13.1-619 of the Virginia Code specifies the information that must be included.

Corporation should have by-laws custom designed for the specific business and situation. By-laws contain the rules the corporation must follow. Corporations must have at least one Director and one officer (can be the same person) unless otherwise agreed to.

In addition, there are certain record-keeping and meeting requirements that must be followed.

Corporate name must include the word “corporation,” “incorporated,” “company,” or “limited” (or an abbreviation of these – corp., co., inc.).

For tax purposes, there are two types of corporations – C Corp. and S Corp.

C Corp. – is any corporation that is not an S corp. Any person or entity may own shares in a C Corp. Corp. is taxed on its income and shareholders are taxed on their dividends. Often called “double taxation” because the same money can be taxed twice (once at the corp. level and then again at the shareholder level)

S Corp. – is a corporation that has elected to be treated for federal tax purposes under Subchapter S of the Internal Revenue Code which allows pass-through treatment of income for tax purposes (no double taxation). S Corp’s can have a max of 100 shareholders, all of whom must be individuals.

Other Aspects of Corporations

Shareholders have ultimate control of a corporation. Board of Directors and officers generally have day to day business control. Corporations may be in existence forever unless otherwise agreed to or unless it is dissolved by law or shareholder agreement. Shareholders/owners are NOT liable for the debts or obligations of the corporation. However, shareholders must beware of treating the corp. as an alter ego that could lose the limitation of liability.

Shares of a corporation are freely transferable unless limited by the by-laws, etc.

C Corp’s have the ability to issue different classes of stock with different rights. S Corp’s may have only one class of stock with identical rights.

Advantages of a Corporation

Major advantage is limited liability protection for owners while still permitting the owners participation in the business. Also, corporations are well-accepted forms of business with established laws and precedents governing their operation; may have better perception of the corporation by customers, vendors, others.

Disadvantages of a Corporation

Not many but there are formalities required to keep the corporate form (annual report required to be filed) and retain the limited liability protection and upfront costs to set up the corporation (filing fee due to the State Corporation Commission is $75.00, annual renewal fee is $100 per year).

Other Forms of Business Entities

Non-stock corporations – primarily used for charities, trade groups, clubs, other non-profits

Limited partnerships – primarily used for real estate investing

Professional corporations and professional LLC’s – used, and required to be used, by certain professions – lawyers, doctors, etc. – that require special licensing and regulation by Virginia.

Now you have formed your business — you have analyzed what entity is best for you, you have assessed the legal liability, you have filed the appropriate state documents — now what? In Part 2 of 2, I’ll go over the various licensing documents that need to filed and in what municipality and/or county.

As you can see, there is plenty to consider. Choosing the wrong entity can lead to serious tax and legal liability. Please note that the information above is not meant to be legal advice. As such, I highly recommend you consult a legal professional for advice on what entry is best for you.

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Don’t think you need a will? — Think again.

Sat, 13 Jun 2015 02:08:00 GMT

What is a will?

A will is a signed writing in which a person (often referred to as the “testator”) directs what is to be done with his or her property after death. Each state has its own very specific laws as to what is necessary for a will to be valid in that state.

Who may make a will?

Any mentally competent person who is at least eighteen years old may make a will. However, later proof of any fraud, duress, or undue influence by another person on the testator may cause the will to be invalid.

Who should have a will and why?

Every mentally competent adult should have a will.

Here are a few of the reasons:

You can direct how you want your property divided at your death.

You can name the person you want to handle your estate (called the “executor” or “personal representative”).

You can reduce the expenses of administering your estate.

You can save taxes.

You can nominate a guardian for your minor children.

You may provide for a trust for the support and education of your children without the necessity of costly court proceedings and choose the person you want to handle the trust.

Must a will be witnessed/notarized?

In Virginia, the signing of a will must generally be witnessed by two competent persons, who also must sign the will in front of the testator. (An exception to the witness requirement is made if the testator writes out the entire will in his or her own handwriting and signs and dates it.)

Although the law does not require a will to be notarized, it is a highly recommended practice followed by most lawyers. If the will includes a notarized “Self-Proving Affidavit”, the will is presumed to be properly executed and is accepted by the court without testimony from the witnesses. Often times, a notary can be found at your attorney’s office or the bank where you have your accounts.

How long is a will valid?

Your will is valid until you revoke it, generally either by physical destruction (tearing or burning it up) or by signing a superseding will or written revocation. However, if you get married or have a child after signing a will, the law may provide for certain distributions to your spouse or the child from your estate regardless of the provisions of your will, and if you get divorced after signing a will, the law may consider the will partially revoked with respect to your ex-spouse. Also, if you are married, your spouse may have rights in your estate even if you sign your will after your marriage, regardless of what is provided in your will.

May a will be changed?

The short answer is, yes. Your will does not take effect until you die; therefore, it can be changed at any time during your life as long as you are mentally competent. Traditionally, wills were changed by an amending instrument called a “codicil,” but with the development of modern word processing technology, it is often better and just as easy to sign an entirely new will when you wish to make a change.

What happens if you don’t have a will?

If you don’t have a will, a state statute directs who will receive your property, regardless of your wishes. In Virginia, if you are married, your estate generally passes entirely to your surviving spouse; however, if you have surviving children or their descendants who are not also the children or their descendants of your surviving spouse, your children and the descendants of any deceased child divide two-thirds of your estate, and your spouse takes the other one-third.

Is joint ownership a substitute for a will?

No. While joint ownership between spouses is often appropriate, in some cases, joint ownership of assets between spouses with very large estates may result in unnecessary estate taxes at the death of the survivor. Joint ownership between parent and child or other individuals who are not married to each other, or even between spouses when one spouse is not a U.S. citizen, may cause unexpected and unnecessary gift taxes and, in the case of a parent and child, may also foster disputes among family members. Even where joint ownership is appropriate, it is not a good substitute for a will because typically not all assets are held jointly.

Is a living trust a substitute for a will?

A funded revocable (“living”) trust can be a valuable and important part of the estate plan for many people, but it does not eliminate the need for a will. If you have a living trust, you will still need a will to dispose of those assets that have not been placed in the trust.

Who should draft your will?

A person who drafts a will must be familiar with the law in order to avoid the many pitfalls and to comply with the formalities necessary to assure the will’s validity. Only a practicing lawyer is professionally qualified to give you advice regarding your will, to prepare your will, and to supervise its signing.

Planning your financial affairs is a very personal and individual matter. You should decide for yourself the general purposes you wish to accomplish, then consult with your lawyer and any other advisors (accountant, financial planner, life insurance agent) to plan properly how to accomplish your goals.

Take these four practical steps to save time and help assure a sound result:

Inventory your assets. List in reasonable detail all of your property, real and personal; life insurance policies; and retirement plans, with your best assessment of their values. Determine current title on each asset and the current beneficiary designation so that your advisor may review and advise changes consistent with the plan.

Inventory your liabilities. List all debts and obligations, including principal amounts, payees, and essential terms.

List your family members and any other persons or organizations whom you wish to benefit from your estate. Decide who might be an appropriate executor, trustee, or guardian for your minor children.

Decide what you want to accomplish. Determine what your objectives are and to whom you wish your assets distributed. Then meet with your lawyer and other advisors to work out the details and prepare the necessary documents. Be sure to carry your working papers, list of assets and liabilities, and life insurance policies with you. Many estate planning lawyers have forms that will help you to organize this information before an initial meeting.

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