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William F. Bernard

William Bernard’s Answers

246 total


  • I gifted real estate to a irrevocable trust and my children are the benificiaries.

    I heard that if you gift the property to a irrevocable trust. You should not control property and you should give control away to the trustee of irrevocable trust. If the IRS finds out I still control the trust they could include the assets in t...

    William’s Answer

    While a grantor may technically be allowed to serve as the trustee of an irrevocable trust he creates under certain specific scenarios, it is not always good idea. That is because if the grantor has any discretion with trust asset distributions, it could lead to inclusion of the trust assets in his estate for tax, Medicaid and other purposes, which could frustrate the trust’s objectives.
    Tax Implications for Beneficiaries:
    The fact you receive money from an irrevocable trust isn’t sufficient to determine whether you are responsible for reporting the payments on your state and federal tax returns. Instead, it depends on the terms of the trust. If the grantor requires all trust income distributed to beneficiaries, you will be responsible for paying tax on your share, regardless of when you receive the money. On the other hand, if the money you receive represents a portion of the trust principal, or income the trust has already paid taxes on, you receive the distribution without any tax consequences.
    Trust Tax Implications:
    An irrevocable trust is treated as a separate taxpayer and must file a federal income tax return on Form 1041 each year. The trustee is responsible for reporting all income the trust earns, even if the terms of the trust require beneficiaries to receive all of that income. However, if the trustee has no obligation to distribute earnings to beneficiaries and accumulates income within the trust, she must pay tax on those earnings using money from the trust. Then, when the trust distributes income to you and other beneficiaries, the trustee reports those earnings on the 1041 but takes a deduction, known as an income distribution deduction, for all payments to beneficiaries. This is done so that income tax is paid only once by beneficiaries.
    Depending upon the TYPE if Irrevocable Trust you have, you may lose its asset protection quality if not properly administered. I would seek out an attorney immediately.

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  • My 86 year old blind grandmothers cargivers are refusing to vacate the premisis. I posted a prior question

    And the attorney asked if the employment contract stated a period of employment and the anwser is no. It was $200 worth of free rent the first month in exchange for him taking her to the doctor and doing the grocery shopping. After the first month...

    William’s Answer

    No real question here--if this is an eviction issue, you should consult with a real estate attorney who may be able to begin the eviction process. As to the "exchange" process you are using, I would not have implemented such a procedure. You should pay the caregiver in accordance with CA law whether he/she resides on the premises or not.

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  • Is this legally prosecutable?

    We have terminated our nanny due to risky behavior. She have worked a week out of the month. We have paid her in advance for a month's service. So she wrote us a check back for the 3 weeks she didn't work. But we later found out she have put a...

    William’s Answer

    All things being equal and assuming proper documentation of payments to the Nanny exists, small claims court would be your best option.

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  • Do I have a case? Can I sue my Employer?

    My manager was associated with a doctor to prescribe creams. My manager asked me for my insurance card and I gave it to him. My manager was fired because he was submitting claims to the insurance for high dollar amounts. I didn't know what he was ...

    William’s Answer

    Candidly, your "question" makes little sense. There needs to be stated a concise reason for your termination in order to evaluate a potential claim. Merely handing over insurance information does not sound like a reasonable explanation for termination, but standing alone, it is not a basis for an actionable claim.

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  • Should I press charges if I was held at gun point and handcuffed?

    police said they had heard what sounded like a gun shot from my building. I walk out of my apartment and a dozen cops are pointing their guns at me. I am handcuffed and detained with no explanation as I begged them to tell me what's going on. The...

    William’s Answer

    The landmark 1968 United States Supreme Court case Terry v. Ohio remains one of the most commonly cited cases in the area of Fourth Amendment search and seizure law. The Fourth Amendment of the U.S. Constitution prohibits unreasonable searches and seizures. 1 The Terry court examined what type of conduct is considered reasonable within this context. This case holds that it is reasonable for an officer to stop an individual absent probable cause to arrest, as long as he/she can point to "specific articulable facts" that justify the intrusion. An officer's good faith and/or inarticulate hunches simply aren't enough. 2 Reasonable belief vs. reasonable suspicion In order to reach its decision, the Terry court basically distinguished between two standards that are necessarily involved with any stop, detention, and/or arrest: reasonable belief and reasonable suspicion. In essence, a reasonable belief is probable cause. Probable cause means that a reasonable and cautious officer would believe that criminal activity is or was taking place. This is the level of proof that is required to arrest and even to conduct a prolonged investigation. A reasonable suspicion is a lesser standard. Only a reasonable suspicion is necessary in order to stop an individual who an officer suspects may be involved in criminal activity. To put this in practical terms, this means that an officer only needs a reasonable suspicion that a driver is violating the law in order to stop his/her car. It isn't necessary that the officer initially suspects that the driver is, for example, guilty of DUI, but only that the driver has committed a traffic violation or infraction. If you believe these conditions were not present, see a lawyer for a free consult to determine if you're claim is actionable.

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  • Potential employer, Eplus, Mark (sales manager and operations) asked me how am I getting by with no job etc.?

    i am working on a mba and I am married with a wife in accounting. I was very upset with the question as employer can't be nosy into your financial worth and background. they are just supposed just see if you are an appropriate candidate for the job.

    William’s Answer

    Sounds like employer is really asking about YOUR past employment history. In any case I see nothing in your comments that can be responded to more directly.

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  • Wife supercedes by what exact documents when it comes to husbands medical,financial,with daughter,stepdaughters?

    daughter,stepdaughters may try to take over fathers medical information.wife is more than competent at handling.Wife wants prevention of problems.

    William’s Answer

    Is husband competent to sign an advanced health care directive and Living Will/Power of Attorney for Health Care and Durable POA for assets? If so, see a lawyer and complete execution as soon as possible. I would have a trust package prepared, which would include all these documents including a pour-over will.

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  • Can my employer deduct money from my bonus for a company loss?

    I am paid commission, and we get monthly bonuses based on different factors. A few months ago I damaged a sofa while trying to clean it. The company had to pay $6,000.00 to replace the sofa, and as such my monthly bonus was deducted to pay a part ...

    William’s Answer

    Your actions must have amounted to willful misconduct and not simple negligence for a deduction to be proper.

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  • Am I entitled to unpaid sales commissions closed prior to my leaving the company?

    When I started at the company we signed a Employment Contract that had the following language in it: If for any reason you are terminated or decide to discontinue your employment with ____, you will not be entitled to any additional commissions af...

    William’s Answer

    See a lawyer regarding a potential Breach of Contract claim.

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  • I was injured on the job because my employer failed to correct a well-documented safety issue. Can I sue my employer?

    My employer owns a fleet of over 10 tour-related vehicles, including 3 modified H-1 Hummers for off-road tours. My job is to drive and conduct tours. All vehicles must have friction tape applied to the steps for safe entry/exit. At the time of my ...

    William’s Answer

    Worker's Compensation insurance is required by law for your employer for job-related injuries.

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