ATTORNEYS AT LAW 1009 W 7TH AVENUE ANCHORAGE, ALASKA 99501 TELEPHONE: (907) 279-4529 FAX: (907) 279-9223
REVERSE MORTGAGES HELP SENIORS MEET FINANCIAL NEEDS
The Alaska legislature has recently passed a bill which may make it easier for Alaska's seniors to live in financial security by borrowing on the equity already built up in their homes. The act, known as HCS CSSB 221(FIN), was approved by the Governor on May 28 and will be effective as of August 26, 1998. The new law allows those lending money in Alaska to give a special type of loan, called a reverse mortgage, or a negatively amortizing loan, to those who have built up equity in their homes.
This is especially good news for seniors, who may have built up home equity but who do not have liquid funds available to survive. The reverse mortgage concept allows a lender to loan funds using the home equity as security for the loan. The borrower receives a monthly check from the lender which can be used to pay off living expenses. The borrower need not repay the loan until death or until the home is sold, as long as the home continues to be the primary residence of the borrower. Under the new law, a lender cannot evict the owner of the property as long as the property tax, hazard or fire insurance premiums are paid, the property is kept in reasonable repair, and the owner has not vacated for over a year.
If the loan cannot be completely repaid from the equity in the home when the borrower dies, and the mortgage holder attempts to obtain a deficiency judgment, this cannot be used against the estate or any heir of the former owner to compel payment. If there is equity in the property and a borrower dies, the estate or an heir has the right of first refusal and can pay off the loan balance in full, or, if there is no equity in the property, can acquire it by paying a sum up to 95 percent of the value of the property as determined by an independent licensed real estate appraiser.
The reverse mortgage loan is good news for seniors who have equity but no cash. They can continue to live in the home they have lived in for years and live out their lives with financial security.
GETTING A DIVORCE? WHAT IS A QDRO?
If you are in the process of obtaining a divorce or a dissolution resolving your divorce may involve having a judge approve of a legal document called a "QDRO." A QDRO (sometimes pronounced "quadro" stands for "qualified domestic relations order."
During a marriage one or both spouses may earn retirement benefits. In Alaska, retirement benefits earned during a marriage until the date of separation normally are considered to be marital property, capable of being divided by the court in a divorce proceeding. However, retirement funds normally can not be distributed to non-participants in the plan. This is why Congress created the QDRO concept: to allow former spouses to collect their share of the marital portion of retirement benefits.
A QDRO is an order which requires a retirement plan to distribute benefits to what is called an "alternate payee." QDRO's must be prepared carefully so that they comply both with the Federal laws and with the specific language of the individual plan in which the retirement funds are located. There are many different retirement plans, including ERISA qualified plans, Government plans, Keogh Plans, SEP's and IRA's.
Thank you for your support and referrals. We have come to know many people since the firm began in 1993. In this newsletter we share more about our firm with you.
Walt Arden became an attorney in 1973, after graduating third in his class from San Francisco Law School. Since 1983, he has practiced in Alaska in the areas of family law, adoption, criminal and probate law. He received the American Jurisprudence Award for Contracts and Criminal Practice.
Steven Pradell is pleased to celebrate his 8th year cancer free! Steve is the author of Winning the War Against Life Threatening Diseases, (New Horizon, 1994). His new book, The Alaska Family Law Handbook, is being printed and will soon be available.
Leslie Haynes is the voice you hear when you call. Leslie is a secretary and legal assistant.
Teresa Mata is a paralegal and handles collections at the firm.
Jon Wegner, a file clerk and computer guru at the office.
Laura Borck is a law clerk who may become a veterinarian one day.
David Grinder is a law clerk who just graduated from Chugach High School. After taking time off, David desires to become an attorney.
ACCUSED OF COMMITTING A CRIME? KNOW YOUR RIGHTS!
If you have been charged with committing a crime you have legal rights which are guaranteed by the U.S. and Alaska Constitutions. These include the following:
The right to remain silent, your right not to say anything. Your silence cannot be used against you at trial.
The right to be considered innocent until and unless you are proven guilty.
The right to have a lawyer help you and the right to keep statements you make to your lawyer confidential.
The right to a speedy trial, a hearing at which your guilt or innocence is decided.
The right to change a judge assigned to your case.
The right to listen to and look at the people who testify against you and to ask questions.
The right to call your own witnesses at trial.
The right to a bail hearing while you are awaiting trial.
The right to plead not guilty, guilty or no contest to the charges.
The right to a preliminary hearing or a grand jury hearing if you have been charged with a felony.
WHAT TO DO IF YOU ARE IN AN AUTO ACCIDENT
If you are in an auto accident, to protect yourself and insure that your legal rights will not be adversely affected, make sure you do the following:
Stop. A hit and run offense is a crime.
Call the police.
Exchange information with the other driver(s)-name, address, phone number, license plate, driver's license number, insurance information, etc.
Get the names, numbers and addresses of all witnesses.
Do not admit that you are at fault.
If possible, call your lawyer before you give any statements to anyone.
Don't refuse to take a breath test if an officer requests it. Failure to take the test is a crime.
Take pictures of the accident scene.
Don't move your car if possible until police tell you to.
If you might be injured, see a doctor right away.
Don't wait too long to pursue your potential claim. The statute of limitations may prevent you from suing if you wait too long.
YOUR REFERRALS ARE APPRECIATED.
SMALL STEPS ARE KEY TO WINNING CUSTODY
Parents lose custody cases for the darndest reasons. In close cases, little things can mean the difference between a favorable report and adverse ruling. Judges, Custody Investigators and/or Guardians ad Litem make decisions about custody based upon limited facts, by viewing families as if they are under a microscope, hoping to discover clues which will show which parent is best suited to care for the children. During this process, it is easy to make mistakes which appear to be minimal but which can greatly impact the results of a custody investigation. This article explores some simple steps which can be taken to increase the chances that a court, Custody Investigator and/or Guardian ad litem will be less likely to find fault with you.
First, always, to the greatest extent possible, show respect to the court, the custody investigator, the attorneys, your spouse and to any Guardian ad litem. Being perceived as having a bad attitude can be detrimental to your case.
Showing respect can be manifested in many ways. Dress neatly with clean clothing and proper personal hygiene. Dress and groom the children, too. Show up on time for your appointments and court dates. Try not to argue or show anger when you are in court, or in the custody investigator's office. (Of course, if you are not represented by an attorney, you should make legal arguments to a judge.) If you cannot make an appointment or attend a court date, provide as much notice as possible and the reason you are unable to attend and ask that the event be set for a different time.
Obey all court orders to the greatest extent possible. If you disobey a court order or fail to follow the recommendation of a Custody Investigator or Guardian ad litem, you had better have a very good reason for doing so.
When deciding to take action concerning your children, always ask yourself how you would explain why you did what you did to a judge. Ask your lawyer before you take any action if you are uncertain as to the possible consequences and ramifications of your behavior.
Don't do or say anything in front of your children or your spouse or ex-spouse which could embarrass you if they found their way to the ear of the judge. Children are like sponges: they soak up everything you say and do and mimic it. If you swear in front of the kids, they will probably swear in front of others. If you say bad things about the other parent, a child will remember what you said and tell a custody investigator when asked.
When the children are around, avoid excessive use of alcohol, stay away from illegal drugs, drive with your seat belt on and keep the kids belted and in appropriate child protective seats. Go the speed limit. Don't risk getting a DWI during your custody or divorce proceeding. Even if the kids aren't around, the other side will find out when you're in jail and you'll have a hard time telling the court that you don't have an alcohol problem.
Avoid hitting and spanking the children if possible. These forms of corporal punishment aren't always acceptable to everyone. Try time outs and other non-contact methods of discipline.
Be an active parent. Visit the children as often as possible if you don't have primary physical custody. Walk the talk by keeping your word. If you make a promise to your kids, spouse, the Custody Investigator or the court, follow through with it. Go to school functions. Spend time with the kids. Call them. Praise them. A parent who desires custody must do so by both words and actions. Simply asking for custody is not enough.
Many of the above steps are simple and not time consuming. Some are more involved. All are designed to help you put your best foot forward and, in the long run, become a better parent. You'll be rewarded for that, in ways that go far beyond what any judge ultimately decides.
©1998 By Pradell and Associates. This newsletter is not intended to provide legal or tax advice. Those seeking such advise should consult with a lawyer or tax advisor.