Thursday, June 30, 2011

The Minnesota Government Shutdown

As you may know in Minnesota, the Republican led Legislature and the Democrat-Farmer-Labor Governor have not been able to agree on a 2-year budget.  The deadline is today, June 30, 2011 for an agreement to be made.  If it is not made by this deadline Minnesota is facing a government shutdown. 

According to the Business Insider, the impasse centers around how to close a $5 billion two-year budget deficit.  The Governor's position has been to increase taxes on the wealthiest 2% and the Legislature's plan has been to balance the budget entirely with cuts.  Although both sides have been meeting, no agreement appears on the horizon.  MinnPost.com takes a look at this problem and the problems facing the other states.

Wednesday, June 22, 2011

If I have a Will, does my family avoid probate?

Not necessarily.  Probate is a court proceeding that manages and settles your estate.  If there is property to be administered or taxes to be paid, the existence of a Will does not necessarily avoid probate nor does it increase the expense of the probate process.  A Will is basically a road map or set of instructions for the court.  However, if all of your property is held jointly or in trust probate may not be necessary after your death.  Probate is not necessarily a process to avoid. 

Thursday, June 16, 2011

Don't be surprised by a Homeowner's Association

Did you know that if you fail to pay a homeowner’s association (“HOA”) monthly dues the amount owing becomes a lien on your property.  As a lien, the HOA has the right to foreclose in the same manner as a mortgage.  The HOA does not need court approval to start the foreclosure. The HOA lien is superior to all other liens except:

1.         any document recorded against the property before the HOA declaration was recorded (this is the document creating the HOA);

2.         liens for real estate taxes; and

3.         a recorded first mortgage. 

So, if you fail to pay even 1 month of dues the HOA has the right to commence a foreclosure be serving papers and proceeding to a sheriff’s sale.  Also, similar to a mortgage, the unit owner is personally liable to the HOA for payment of the dues.  This means the HOA can also bring a court action for recovery of the money - they can sue you.  The HOA can choose to foreclose, bring a lawsuit or both.  Also, just because the HOA picks only one method of recovery does not mean it is barred from pursuing the other method at a later date. 

Thursday, June 2, 2011

Only Good Things Happen When Parties Agree

In Minnesota only about 2 percent of all cases filed proceed to trial.  The remainder are settled between the parties, by default judgment or adjudicated by the court prior to trial.  From my experience, the best resolution is when the parties come to an agreement.  Although one may not be overly happy with a settlement agreement, it takes away the uncertainty of a decision being made by a jury or judge.  When a lawsuit is initiated an early mediation can help bring the parties to an agreement to settle the matter.