Andrew Ewalt's Law Blog

Increased Cost For Recording Real Estate Transactions

The Connecticut Legislature has just increased the cost to submit documents in the town clerks office for recording documents.  Starting on October 1, 2005 (the effective date had been July 1, 2005 but was changed to October) an additional surcharge of $30.00 will be imposed in addition to the regular filing fees.

Please keep in mind that this will substantially increase the cost to file with the town clerk. Those of you anticipating closing on real estate should keep this in mind. If you have recently sold real estate and are expecting a release of a mortgage please know that if it is not filed by October 1, 2005 you will pay the $30.00 surcharge in addition to your filing fee. 

The U.S. Supreme Court Says The Government Can Take Your Home!

Can the government take your home? The answer to this startling question seems to be yes.  In a groundbreaking U.S. Supreme Court decision Thursday justices ruled that City Hall (in this case New London Connecticut) may take a citizens property through a process known as eminent domain as long as the property taken will be used for “higher economic purposes”.  The higher economic purposes in this case are hotel and convention center development.

The question all citizens must ask themselves is whether this is right or wrong.  Does economic development and progress automatically mean that the government should have a right to take your property? Justice John Paul Stevens speaking for the majority opinion seems to think they do stating. "Promoting economic development is a traditional and long accepted function of government." On the other hand does this decision now favor rich corporations, as Justice Sandra Day O’Connor seems to feel from her dissenting opinion. 

I would love to know your comments on this topic. Are you pro or con?  Do you think it is okay for the government to take your home or property for economic development?  Do you think big corporations will benefit from this decision at the expense of citizens?

Let me know what you think

Bad News For Recipients Of Gifts

Bad news: There is a new danger for individuals who are the recipients of gifts in the state of Connecticut. 

Connecticut has created new debtor liability owed to the state when any gift has been made within 3 years of the giftors application for Title 19 (Medicaid).  As a result the state can sue the recipients of the gifts under Section 6 of Public Act 05-209.

The Governor is expected to sign the Act soon (if it has not already been signed).

Once again Connecticut seniors (facing long term care) and their families are the targets of the state.  Unfortunately, it is not yet known what the outcome will be. 

I will keep you posted as more information becomes available. 

 

Employee Beware...Your Blog Can Get You Fired

According to a recent article in USA Today http://www.usatoday.com/money/workplace/2005-06-14-worker-blogs-usat_x.htm your blog can get you fired.  A number of major companies are firing and disciplining employees for what they say about work on their blogs.

The law is very cloudy in this area because blogging is so new.  Employers most likely will continue to have the right to fire or discipline employees in this area much like they have been doing with regard to company emails.  The biggest problem for employees is that companies often do not have policies on blogging so there may not be any clear guidelines for employees. 

Ultimately, it seems to me that common sense should prevail. If you don’t want your boss to know what you think of him or the company then don’t blog about it...and if you do then accept the consequences.

A Great Organization: CuzWeCare

I have been very fortunate this past year to serve on the board of a wonderful organization dedicated to bringing comfort to cancer patients, dialysis patients and many other individuals receiving treatments for debilitating conditions.

CuzWeCare, founded by Fay and John Von Deck www.cuzwecare.org was formed in 2004 when it was realized that there are many communities of caring people who wish to help those in need and would like to provide patients with some type of comfort and with the thought that someone is thinking about them.

CuzWeCare, provides hand made pillows, fleece pillow cases, blankets, knitted "chemo" caps and many other products free of charge to those who need them.

I am proud to be associated with CuzWeCare and the wonderful volunteers who have helped make their mission plan a reality. Please consider how you might be able to assist CuzWeCare.  Please visit their website www.cuzwecare.org. Let me know what you think.

Connecticut’s New Unified Estate and Gift Tax?

I learned today that Connecticut’s House passed the unified estate and gift tax bill. This bill is expected to pass the Senate and be signed in law by Governor Rell.

Here are some features of the bill:

• The estate tax is de-coupled from the federal system and the exemption will be $2 million
• The succession tax is repealed effective January 1, 2005 (It will be interesting to see how this will effect the probate courts)
• The gift tax is repealed effective January 1, 2005, up to an amount of aggregate lifetime gifts of $2 million (on or after 1/1/05)
• Connecticut taxable gifts” (cumulative taxable gifts made on or after January 1, 2005) are brought back into the estate; and a credit is allowed for gift taxes paid for gifts made on or after January 1, 2005.
• The rate table is intended to replace the revenue lost under the former state death tax credit.  However, the table results in a cliff in the rates; in other words, tax on an estate of $2 million is 0;  tax on an estate of $2,000,001 is $101,600.10.  Lifetime gifts of $2 million will result in a tax liability of over $100,000 if so much as $1 is left in the taxable estate.
• The bill provides for an independent QTIP election (which will now be unnecessary until 2009, when the federal exemption exceeds the state).

• We are back to a nine-month filing deadline.  But ALL estates (regardless of whether or not they are taxable) will be required to file returns.  This provision is effective from passage and should not require retroactive filings in non-taxable estates.

In the coming weeks I will keep you up to date on the final passage of the bill, any important changes and what all this will mean for Connecticut estates.

Preventing Identity Theft: Get A Free Credit Report

Recently the Federal Trade Commission ruled that under the Fair and Accurate Credit Transactions Act all consumers (that is you and me and everyone) upon request can obtain a free copy of their credit reports every 12 months.

These free reports must be offered from a centralized source. These sources include a website, a toll-free telephone number and a postal address.

Unfortunately, for Connecticut residents the program is rolling out region-by region with residents of the West and Midwest now eligible to request their free annual credit reports.  However, over the next 6 months, the availability will being rolling eastward with Connecticut becoming eligible on or before September 1, 2005.   

To request your free credit report try one of these 3 sources:

Web:   www.annualcreditreport.com

Toll Free Phone:  1-877-322-8228

Mailing Annual Credit Report Request Form to: Annual Credit Report Request Service, PO Box 105281, Atlanta, GA, 30348-5281.