Of Interest
“NONBINDING AND UNFORCEABLE LETTERS OF INTENT”? NONSENSE AND DON’T COUNT ON IT! BEWARE! THERE IS NO SUCH THING ANYMORE AS A NONBINDING AND UNENFORCEABLE LETTER OF INTENT
Agents and principals have relied upon “nonbinding letters of intent,” assuming that the negotiations that lead to a “definitive and enforceable agreement” will bind the parties. Don’t count on it. No, this isn’t the “Twilight Zone” or Orwellian; there are real cases out there on this! Put otherwise, although language such as “nonbinding” and “unenforceable” may be in these so-called “letters of intent,” Courts have ignored those words and permit the parties to enfor...
Domestic Asset Protection Trusts: Strong Protection Against Creditors
Special Attention for Virginia, Delaware, Florida, Nevada, and Other State Residents A Domestic Asset Protection Trust (“DAPT”) allows individuals to transfer assets into an irrevocable trust while still retaining a beneficial interest. When properly structured, a DAPT can shield assets from future creditor claims, support long-term estate planning goals, and maintain privacy—all while giving the settlor limited access to trust benefits. Understanding the Limits. While DAPTs can be ...
Family Trusts: What They Can — and Can’t — Do for Asset Protection
A family trust can be an excellent tool for organizing and protecting wealth. At its core, a family trust is a legal document where a party/parties transfer assets to a trustee for their benefit, who, in turn, holds and manages these assets (and other assets to be transferred thereafter) for the benefit of named beneficiaries. Many set up family trusts to keep their estates out of probate, protect their assets from the reach of third-party creditors and other claimants, simplify the transfer o...
DISTRICT OF COLUMBIA EMPLOYERS MUST DISCLOSE WAGES AND BENEFITS TO APPLICANTS FOR POSITIONS WITH A COMPANY LOCATED IN THE DISTRICT
Recently enacted amendments to the DC Wage Transparency Act* require all employers located in the District, regardless of size, to provide “minimum and maximum projected salary or hourly pay in all job listings and position descriptions.” The District of Columbia Agency, responsible for enforcing this Act, takes the position that this information be made available to the public in marketing materials and disclosed to all applicants who apply for positions with the company, including any cur...
Closing Your Location? WARN Before You Get Slammed with Federal and State Fines!
Is your business planning to conduct a layoff or plant closing? If so, you probably know that federal and local laws may require you to give prior notice to your employees. But did you also know that state law may impose stricter notice requirements and require severance payments. The Worker Adjustment and Retraining Notification (WARN) Act is a federal law that requires employers to provide 60 days’ prior written notice before conducting a mass layoff or plant closing. Several states have en...
THE FAMILY LIMITED PARTNERSHIP: PROTECTING FOR THE “2026 SNAPBACK”
Not to mention the estate planning benefits along the way! THE PERFECT TIME TO IMPLEMENT YOUR STRATEGY IS NOW! For those unfamiliar with family limited partnerships (“FLP”), in short, it is an entity in which typically the older generation funds with cash, investments, brokerage accounts, publicly-traded stocks, real estate assets, and just about any other property to implement, principally, two strategies: first, to take full advantage of the sunsetting provision of the estate tax th...
BUSINESS WITHOUT A “NON-COMPETITION” AGREEMENT?
NON-COMPETES LIKELY TO BE GONE WITH THE WIND? THIS CAN ROCK YOUR BUSINESS WORLD! Recently, the Federal Trade Commission (“FTC”) proposed a new federal rule which would ban the use of non-compete clauses by employers and would apply to not only employees but also independent contractors. So what exactly would the rule cover? According to the FTC, the proposed rule would make it specifically illegal for an employer to: Enter into or attempt to enter into a non-compete...
Contract Disputes and Liquidated Damages Provisions – Be Careful – The Safeguard You Expect to Protect You Can Backfire!
Are you party to a commercial construction contract or … for that matter, any contract with a liquidated damages provision? If so, a recent court decision gathers attention in other courts and can lead you to unknown surprises – making you regret how you viewed the standard “liquidated damages provision.” Well, what are “liquidated damages anyway”? The purpose of a liquidated damages provision in a contract is to establish – ahead of time – the compensation that would be owed...
Risks to Avoid When Raising Investment Dollars
Raising dollars for your business venture? Be wary – the government has rules on almost every kind of business/enterprise fundraising. If you aren’t careful, your investors can sue to get their money back based upon your not following proper procedures. The easiest way to avoid burdensome securities regulation is to forego securities altogether and instead treat investments as loans; however, this is often unrealistic. Because the definition of “security” is so broad, your inve...
Short Term Rentals – Owner Beware and Owner “Be-Smart”
The short term rental (STR) industry has taken off in the past couple of years and has generally been resilient in the face of economic struggles. Government regulation of this ever-growing industry has generally focused on zoning and tax issues, without seeming to fully address situations related to liability. One of the biggest problems arising out of this area is how to treat the relationship between owner and renter, as how that relationship is treated directly determines any liability the ...