Why did they receive the 1099? Good question – whenever debt is forgiven, it is considered income for purposes of taxes. Here’s an example: Mr. Smith has a $10,000 debt, he files bankruptcy and the $10,000 debt is forgiven, he is now $10,000 better off than he was before he filed bankruptcy, so the IRS considers this to be income. Doesn’t sound right does it? You don’t actually get the $10,000 – so why should you be taxed on it? Well, fortunately the IRS agrees with you.

IRS Form 982 - Reduction of Tax Attributes Due to Discharge of Indebtedness, applies to many situations where your debt may be reduced by a discharge, however you should talk with your CPA or Tax Specialist before filing this form with your taxes.

So, if you find yourself in the situation where you received a 1099 after a bankruptcy, make sure that you get the proper form and talk with your accountant.

*- This information is purely for educational purposes only and is accurate at the time that it is written, but it could change so talk with a professional before taking any action based on this article. Also, this article or any other information on this website is purely for educational or commercial purposes and does not create an attorney client relationship in any way. The Shepard Law Office PLC is a debt relief agency in Michigan helping people file bankruptcy under the bankruptcy code. If you are looking for a Michigan bankruptcy lawyer, this is the right place for you.

With the following two DUI cases, this article shows you how a Michigan DUI lawyer protects people from the system

Approximately 9 months ago I was approached by a young lady who was arrested and charged for OWI. She explained to me how she had 2 glasses of wine with a friend and drove home. While driving home she was pulled over for speeding and asked had she been drinking. She, of course, told the truth and stated that she had a couple glasses of wine. However, she was not drunk. The officer was already convinced that she was drunk (or, at least, he was going to be arrested for DUI) and had her perform field sobriety tests.

After performing the tests (which she passed) the officer asked her to take a preliminary breath test. She did take the test but he wouldn’t show her the results. She was arrested and taken back to the police department and charged with drunk driving.

Now, most attorneys (who do not specialize in criminal defense / DUI defense) would tell their client that they will get them some sort of deal and the case would be over. However after reviewing the police report and accompanying documents, there were numerous “little issues.”

To make a long story short, after reviewing the case in more detail and holding an evidentiary hearing, the criminal charge was dismissed and this young lady doesn’t have an alcohol offense on her record.

People ask me, “do you think what you are doing is right?”

Absolutely.

I wholeheartedly believe that she wasn’t drunk that night; I believe that the officer was just after another arrest. I don’t fault the officer; I believe that he is so accustomed to dealing with drunk drivers that even when an innocent person is in front of him, he assumes the worst. That is why I do what I do. The system is made to protect the people but someone has to protect the people from the system. Hiring a Michigan criminal defense lawyer or Michigan DUI attorney will make big difference.

In another DUI case, a man was arrested for his 3rd DUI. This sounds pretty bad but consider the fact that he was 45 years old and hadn’t been arrested for anything in over 20 years. He was with a friend and did have a couple too many. Not to the point of falling over drunk, but enough where he should have considered another way home.

The evidence against him was strong however after talking with the city attorney about the matter, we were able to get the charge reduced from the Felony to a Misdemeanor, and he will be on probation but he won’t be going to jail.

Again, is that the right thing to do?

Absolutely.

In this case, he was guilty of the crime but the punishment didn’t fit the crime. He would have gone to jail where he wouldn’t be able to work and support his family. He did have a rough youth but he had put that behind him, he deserved a second chance. Again hiring a Michigan criminal defense attorney or Michigan drunk driving attorney will make big difference.

According to Mlive.com, Jennifer Lynne Moore, 47, of Coloma, is charged with one count each of felony operating a motor vehicle while intoxicated with occupants less than 16 years of age and misdemeanor second-offense operating a motor vehicle while intoxicated, Kalamazoo County Prosecutor Jeff Fink said.

Jennifer Lynne Moore was charged with DUI in Michigan, child endangerment and operating a motor vehicle while intoxicated with an occupant under the age of 16. Her blood alcohol content was .16%, more than 10 times the limit for a school bus operator.

Have you been arrested for a Michigan DUI and are looking for qualified Michigan DUI Attorney to handle your case?

DUI lawyer Michigan | DUI attorney Michigan | drunk driving attorney Michigan

The first case was a trial in front of a Southfield District Court Jury. After all the evidence was heard and closing arguments were made, the jury came back with a Not Guilty verdict… in less than 30 minutes. Ms. Wegerski proved to the jury that the theory the prosecutor presented had holes in it, and if you can’t prove the case beyond a reasonable doubt, then the defendant cannot be found guilty.

Ms. Wegerski’s second win was this week, after preparing for a jury trial the case was dismissed by the prosecutor prior to picking a jury. Although Ms. Wegerski was well prepared to pick the jury and proceed with the case, she and her client were very pleased with the result.

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By:

Kristin K. Vanpraet

Shepard Law Office

What is probate?

Probate is the legal process that takes place after someone dies.   When a person dies, with or without a Will, the probate court must oversee the distribution of that person’s estate.

If a person dies leaving a Will, then the court will decide the validity of that Will (which is usually a routine matter) and interprets the instructions left by the deceased person.  The Will should appoint a Personal Representative, sometimes referred to as an Executor, to handle the leg work of distributing the estate according to the instructions of the will.   If the Will does not appoint a personal representative or if the person appointed is unable or unwilling to serve, the court will appoint someone.

Contrary to some belief, executing a Will does not avoid probate.  The only estate plan that will avoid probate is a well executed trust.

If a person dies without a Will this is known as dying “intestate”.  When a person dies intestate, the court must authorize the distribution of the estate through the laws of intestacy.  This means that whatever wishes a person had, if not put into the form of a valid Will, may not necessarily be accomplished.

What is the probate process?

In general, after a person’s death, the person named in the deceased person’s Will as Personal Representative or, if there is no will, the person appointed by the probate judge files papers in the local probate court.

The Personal Representative proves the validity of  the  will and files with the probate court a list of property, a list of debts, and a list of who is to inherit.  Once this is completed, all relatives, those named in the will and creditors are officially notified of the death.

The Personal Representative must find, acquire and deal with the assets during the probate process, which commonly takes a few months to a year. At a minimum, the process will take four (4) months as this is the amount of time the estate must be left open for creditor’s claims.  Depending on the provisions of the will and the amount of debts, the Personal Representative may have to decide whether or not to sell real estate or other property to pay them.

Eventually, once the debts and taxes have been paid, the court will grant the Personal Representative permission to divide the rest among the people or organizations named in the Will. Finally, all property will be transferred to its new owners.

Intestate Distribution:

Michigan distributes in the following manner:

If there is a living spouse, the living spouses share is distributed in one of the following ways according to 700.2102:

(a) The living spouse will get the entire intestate estate if descendant or parent of the deceased person are still living.
(b) If the deceased person has living descendants and they are also descendants of the living spouse, then the living spouse receives the first $150,000*, plus 1/2 of any balance of the intestate estate.

(c) If the deceased person has no descendants, but has a living parent then the living spouse receives the first $150,000*, plus 3/4 of any balance of the intestate estate.
(d)If the deceased person has living descendants with the living spouse and the living spouse has one or more descendants who are not descendants of the deceased person then the living spouse receives the first $150,000*, plus 1/2 of any balance of the intestate estate,

(e) If 1 or more, but not all, of the deceased person’s living descendants are not descendants of the living spouse then the living spouse receives the first $150,000*, plus 1/2 of any balance of the intestate estate,
(f) If none of the deceased person’s living descendants are descendants of the living spouse, the living spouse will receive the first $100,000.00*, plus 1/2 of any balance of the intestate estate,

*The amounts shall be adjusted each year for cost of living.  For 2009 $150,000 = $201,000 and $100,000 = $134,000.

According to 700.2103, If a person dies without leaving a living spouse or if any part of the intestate estate that does not pass to the deceased person’s living spouse under 700.2102, the intestate estate passes in the following order to the those who survive the deceased person: 
(a) The deceased person’s descendants by representation.

(b) If there is no living descendant, the deceased person’s parents equally if both are living or to the still living parent.
(c) If there is no living descendant or parent, the descendants of the deceased person’s parents or of either of them by representation.

d) If there is no living descendant, parent, or descendant of a parent, but the deceased person is survived by 1 or more grandparents or descendants of grandparents, 1/2 of the estate passes to the deceased person’s paternal grandparents equally if both survive, or to the living paternal grandparent, or to the descendants of the deceased person’s paternal grandparents or either of them if both are deceased, the descendants taking by representation; and the other 1/2 passes to the deceased person’s maternal relatives in the same manner. If there is no living grandparent or descendant of a grandparent on either the paternal or the maternal side, the entire estate passes to the deceased person’s relatives on the other side in the same manner as the 1/2.

Drivers License Appeals in Michigan

By Mara J. Wegerski JD

Shepard Law Office PLC

If you have lost your license there is a way to get it back! Michigan has set up an appeals process through the Driver’s License Appeal Division (DLAD) of the Department of Motor Vehicles. This process differs depending on why you actually lost your license, but can be used by any person who does not currently have a license or has tried to have their license re-instated and has been denied.

If you have lost your license due to an alcohol related offense there are several steps that must be taken prior to filing a DLAD appeal. First the person must successfully complete an alcohol evaluation and demonstrate that they have stopping using alcohol, completed alcohol therapy, show that they have regularly attended an alcohol support groups, provide letters from family and friends demonstrating a change in that person’s lifestyle and how being alcohol-free has impacted their life. Finally the person requesting the appeal must show a genuine need to get their license back.

If you have lost your license due to a driving on a suspended or revoked license ticket or some other traffic offense related citation you will be notified of a date when you will be eligible to get your license back. You may appeal to DLAD prior to this date; however only under exigent circumstances will your appeal be granted.

If you have lost your license and need to get it back please do not attempt to do so on your own! There are many minor details that are required to ensure that your appeal is successful!

DUI lawyer Troy MI | DUI attorney Troy MI

Attorney & Counselor

Shepard Law Office PLC

There is no such thing as a criminal expungement in Michigan. In Michigan the proper term is a “Motion to Set Aside a Conviction”. With this said, who is eligible for an “expungement of your criminal records in Michigan”?

1. Only have one criminal conviction on your record (the one you want set aside).
2. Five years have passed since the last action was taken on the matter. This means that if you were on probation, five years have passed since you were taken off probation, not the date of conviction.
3. Does not fall under one of the crimes that specifically listed as non-dismissible crime - this includes sexual offenses and drunk driving.

If you meet all the requirements then a notice would be filed with the court where the conviction occurred. You would submit fingerprints, then the Attorney General, Prosecutor and the Michigan State Police would be contacted, approximately 90 days later a hearing would be held.

Eligibility does not guarantee the motion will be approved, preparing for the hearing is as important as meeting the eligibility requirements, the hearing is the only opportunity where either you or your attorney will have the opportunity to explain to the judge not only that you are eligible but why the motion should be granted.

If the motion is granted, what affect does this have on the application?

1. The conviction is removed from your public record, a non-public copy is maintained for law enforcement.
2. When you are asked on a job application if you have ever been convicted of a crime, you can answer “no” truthfully.
3. If the prior conviction was for a felon, certain privileges that you were barred from doing are lifted.

In conclusion, if you want to expunge your criminal record in Michigan, filing a motion to set aside the conviction may be an option for you.

Attorney & Counselor at Law

Shepard Law Office PLC

Myth 1: If you do not have an estate worth more the 3.5 Million which triggers tax issues; you do not need a living trust.

Avoiding taxes is just one of many reasons to have a living trust, and may not be the the most important reason to you.  Having a living trust also gives you many advantages, some of which include:

1.    It avoids probate. If you die with any type of property or money, and have no estate plan or only a will, your estate will have to be probated.  By establishing a living trust, anything owned by your trust will pass outside of probate, thus avoiding the hassles of probate.

2.    It allows you to maintain control of your money. By establishing a living trust, you can place conditions on beneficiaries and maintain control of how your money and property is distributed, not just to who but also when and how.  For example, if you want your child to receive his or her inheritance only after completing medical school, you can make that condition part of the trust.  The trustee you appoint will hold the child’s inheritance in the trust until the child has completed medical school.  This is just one example of the control a living trust allows you to maintain after your death.

3.    It maintains privacy. Because a living trust does not have to go through the probate system, the terms of your estate will remain private.  When an estate is probated in court, there is a public record – of all property and assets, a trust avoids probate and thus, no public court record.

4.    It will protect your interests if you become disabled. Unlike a will which becomes effective only when a person passes away, a trust can become effective immediately. Why would you want to do this? Statistically is more likely that you may become disabled or have limited ability at some time in your life before passing away. With a trust in place you can make sure that all your bills are paid for if you are not able to do it yourself.

Myth 2: If you put your property into a trust, you no longer own or control that property, the trust does.

When you create a revocable trust, as the trustee of that trust, you always control the property and money in the trust. The property may be titled to the trust but you still have ownership. You will always have the ability to buy, sell, and control the property however you want. You also have the ability to revoke the trust at any time.
In conclusion, a living trust does not need to be complicated; it can be as simple or as complex as you wish it to be. However all trusts should be prepared specifically for you by a professional estate planning attorney because everyone has needs and desires. An estate planning attorney will help you decide what options are best for you.

Attorney & Counselor at Law

Shepard Law Office PLC

There are many of ways an Operating While Intoxicated (OWI) conviction can restrict and potentially ruin your life. One way many do not think of is access to Canada.

When you approach the border to Canada you are subjected to a quick license check. This check shows your criminal history to the Border Patrol. There is a long list of offenses that will keep you out of Canada and one of them is drunk driving – this includes convictions or pleas for Operating While Intoxicated, Operating Under the Influence of Intoxicating Liquor or any illegal substance as well as Operating While Impaired.

If you need to go to Canada for any reason, and you have one of these offenses, you need to request permission from them by applying for criminal rehabilitation. This process is similar to an expungement in the US legal system.

In order to apply for rehabilitation you cannot be on probation or parole for any reason.

The application itself requires letters from the Courts where you have been convicted, several sets of fingerprints along with a laundry list of other documents. You want to make sure that you have all the required paperwork prior to submitting your application process as it may take up to a year for a decision to come down.

Obviously, the way to avoid this problem is not to get an OWI, however, if you do seek legal assistance. There are more restrictions than you think!

drink driving attorney Michigan | drink driving lawyer Michigan

By: Kristin K. Vanpraet

Attorney & Counselor at Law

Shepard Law Office PLC

Many of my clients tell me they have put their child’s name on their bank accounts. They usually have done this for one or both of the following reasons: First, they want their child to be able help them pay their bills and look out for their finances. The second is they want to avoid probate.

Consequences:

While doing this may do what they want it to, I usually advise against it. Many people don’t know that putting your child (or any other person) on your account has the following downsides:

1. The money in that account now legally belongs to your child as well as to you.
2. The money in that account is now counted as an asset for that child.

What does this mean? It means that your child may spend that money without having to be held responsible to you. Because their name is on the account, it is their money. Additionally, any of their creditors can get hold of the money in that account. If your child defaults on a loan or is loses a lawsuit and a court orders them to pay money, money in your account may be taken to pay the money they owe..

A Better Solution:

Management of Finances - A better way to give your child the authority to help you financially is to make a Durable Power of Attorney. This document will give them legal authority to act on your behalf, but your assets do not become theirs. Additionally, by legally accepting this authority, they will have a responsibility to act in your best interests. If they abuse their position, they can be held accountable.

Probate - To avoid probate, most financial institutions will let you to make your accounts transferable on death. This means that when you die, the account will automatically transfer to the person you have named.

Conclusion:

While you want your children to have the ability to assist you, and you don’t want your family to have to go through probate, putting their name on your account is not the answer. The methods suggested above are much safer techniques to use to accomplish your goals. They let your children to assist you and still protect your assets.