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Making sure that your credit report is accurate and up to date is very important for your financial well being. The credit bureaus can sell your credit report information to businesses or individuals such as insurance companies, employers, landlords, and possible creditors.

It can take time to fix your credit report, so verifying the information on your report can save some headaches later on. If you find inaccurate or incomplete information on your credit report, the Fair Credit Reporting Act requires that both the credit bureau and the company that provides the information to the credit bureau are responsible for correcting it.

Taking action to repair your credit is the first move in the right direction. If you are like most people, you may be unsure how to begin. Many people take the “free” route and attempt to repair their own credit. While this works for some, the drawbacks of going solo can be larger than you realize. Below are a few reasons why a credit lawyer may be beneficial to you and your credit score.

1. General knowledge. Do you know your rights under the Fair Credit Reporting Act (FRCA)? Do you know how to draft a dispute letter once you do? Unless you have a strong urge to immerse yourself in the long and arduous task of learning federal law in your spare time, navigating the important first steps to credit repair can be confusing. A lot of background knowledge is required before a single dispute letter can be drafted.

Hiring a credit lawyer to help you navigate the laws may be your best option. Attorneys with experience in credit repair have a thorough understanding of the current credit and consumer protection laws. They also know how to apply these laws to help you assert your consumer rights.

2. Tracking paperwork and correspondence. Unless you are an organizational guru who loves categorization and filing, tracking correspondence between yourself and the credit bureau can be an overwhelming and draining experience. You can also expect to spend time and money at the post office; any letters to the credit bureau must be sent through USPS with a return receipt requested. You also need to find a way to track emails, phone calls, and other forms of contact.

Law firms have established methods when it comes to keeping records and tracking correspondence. Having an attorney serving as your go-between also saves you the effort of deciding how to categorize a brief phone call or a message on your answering machine.

3. Sacrificing your time. Learning federal credit laws and wading through paperwork is a full-time job, and you probably already have one of those. You can’t drop everything to look up legal terms and run to the post office during business hours. You don’t have several hours each week to devote to your credit file and the expertise it takes to repair it. This is why many people hire a credit lawyer. Even if they have the expertise to fix their own credit, they may not have the resources or time. As a result, they cannot pursue their credit repair as aggressively as they should, and the process becomes lengthier.

Author Bio: Credit Repair: Ann Hudson is an advocate for consumers understanding their credit and their credit rights, and works as a consultant for Lexington Law. Call 1-800-768-2305 or visit Credit Repair Services for a free credit consultation.
Category: Legal
Keywords: credit repair,credit lawyer,credit reporting,lawyer,attorney

I guess the scariest nightmare for all of us would be to find us in jail. This four-letter word is strong and daunting enough to send shudders through our spine every time we hear it. Well, being law-abiding citizens, we are quite conscious of our laws and regulations and we try our best to keep up with it. But, the most common rule which is quite often broken is drinking while driving. Drunk driving is turning into a very common aspect of our lives and with teenagers hell-bent on altering the rules, the parents have nothing else to do but worry. Getting a ticket for speeding or related issues is worse but having to face a case for that can have severe implications in your life and can entirely endanger your current situation. In case you are led into such a dire situation in Georgia, find an experienced Georgia DUI Attorney who has great expertise in fighting for such cases.

The worst aspect of you facing a GA DUI is that there is a high percentage of chance that you will end up in jail. Even if there are not such serious repercussions as mentioned above, you may still have your driving license confiscated or be embarrassed to have a breath test machine attached to your car. Having a criminal record attached your profile would hardly make your professional, personal or social life any comfortable and will definitely act as a social stigma at the various instances of life. If you are one of the unfortunate person facing DUI charges, it is not an easy pain and definitely you will be under great anxiety and stress. Instead of worrying yourself to death on the situation, turn for help to Georgia DUI Attorney or the qualified drunk driving attorneys GA, who will surely find a away to take you out of this mess unscathed.

Always remember that, the case is going to change your life in a way the direction of which cannot be determined at this point in life. Hence, you have all the right to equip yourself with the needed information and details which will see you through safely. The Georgia DUI Law clearly states that driving any vehicle when you were seriously incapable of operating the same, is a serious offense, wherein the impairment could have been from drugs or alcohol. Georgia DUI penalties can be quite extreme and harsh and include several options of license suspensions, vehicle forfeiture, treatment and education, ignition interlock devices and jail. The strength or weakness of your case can be attributed to the percentage of alcohol in your body found at the time when you were caught and hence, the main evidence of the case starts from that point.

Georgia DUI Attorneys take great consideration of your case and will definitely see to it as to how they can effectively save you from the far-reaching consequences. All the DUI cases in Georgia reach the criminal court and are taken as a serious allegation, with the proceedings following Georgia Rules of Criminal Procedure and the Rules of Evidence.

It is strictly advised that if you are one of the unfortunates ones repenting your alcoholic action on a night out and are waiting for your case in the court, the best way out would be to seek the knowledge and guidance of the Georgia DUI attorneys, who will definitely see to it that they can save you from such a disgrace in the ideal way possible.

Author Bio: Drunk driving cases have become a very common issue in recent times and the author investigates on the same and also on the role of Georgia DUI Attorneys who try to resolve the case with due diligence.
Category: Legal
Keywords: driving, drunk, case

In the modern world of today, life is not as simple as it once was and hence, the complications of life call for several emergencies which we never would have anticipated. Minor incidents in our daily life are now leading to major situations in which we need help and guidance so as to come out of it unscathed. The layman is not aware of various rules and laws and minor cases which completely turn into major instances in his normal life. To help you in important situations at the federal office is the domain of MSPB lawyers who have all the knowledge, skill and expertise to help you wriggle out of the situations for which you demand justice.

MSPB is the short form for the Merit Systems Protection Board and MSPB attorneys are fully well-versed with the accurate knowledge in this department. In short, the Merit Systems Protection Board of America listens to petitions and complaints from the federal employees which concern various aspects of employment, disciplinary actions, performance-related and whistle blowing actions too. The dedicated and adequately experienced MSPB attorneys across the nation help these needed employees through their appeals and present them before MSPB. In order to go deep into the subject, we definitely need to know what MSPB really indicates. The U.S Merit Systems Protection Board is an independent quasi-judicial department which is the sentinel of merit systems and is the executive branch of the respective field. Delivering judgment for employee petitions is the reason why the Board has been organized. The employee pleas can vary over a wide area of categories which has been mentioned as follows:

1)Serious consequences on which the Board can pass their judgment deciding upon matters of removals, suspensions of 15 days or more and even about demotions and reductions.

2)Certain cases about administrative acts like a person’s rights or gains under the Retirement System are also handled by them.

3)Complaints or petitions which are governed under the Uniformed Services Employment, Whistleblower Protection Act.

4)Cases which are directly studied by the office of Special Counsel.

There are various other scenarios which are also governed by MSPB. One part which is not handled by MSPB is the discrimination cases, which is usually cleared and considered by the Equal Employment Opportunities Commission. Also, MSPB does not interfere in any matters concerning the employment, benefits or examination which is being usually dealt with the Office or Personnel Management (OPM). Also, it is good to know that one another aspect which MSPB will not react to or consider is the prohibition or violation of personnel practices which is dealt by the Office of Special Counsel.

The role of MSPB attorneys is to help federal employees in their concerns and complaints relating to employment matters and fight for their justice and rights. MSPB attorneys have an in-depth knowledge and expertise in their subject and they are well-aware of the rules and regulations related to MSPB, which will greatly help their clients to glide safely through any hassles and difficulties related to MSPB matters.

Author Bio: Rashmi Menon takes considerable interest in the workings of MSPB and MSPB attorneys
Category: Legal
Keywords: legal, employee, petitions

The bail bonds system isn’t really talked of particularly fondly by most people, which is pretty understandable. Even the best bail bond agency knows that very few people ever want to have to deal with the bail bonding system; all they can do is try to make the process as easy as possible for the person that comes to them. Often, the people that actually go through the system, and co-sign a bail bond with a highly professional bail bond agency, will come out with a glowing report of the system. Unfortunately, this doesn’t stop people who have never dealt with the process taking cheap shots and generally trying to be derogatory about the industry. The fact is that the bail bond industry has changed a great deal, and is no longer run by unprofessional or untrustworthy people. In order to be successful in business, or rather, just to stay afloat, in the bail surety industry, you need to offer an excellent service. If you don’t, you’re going to get thrown out very quickly, and your reputation will be tarnished forever.

So there’s a lot of bitter people out there, and a lot of people who simply talk negatively about anything that involves the jail system. However, that doesn’t mean you should listen to these people. Most successful bail bond agencies are now very transparent, and are completely open about the work they do with their customers. Overall, if you choose wisely and don’t rush into things, you’re almost certainly going to be dealing with a professional business that will try very hard to help you. One of the things that are most important is that you don’t just pick the first bondsman you find in the phone book. You’ll want to choose a larger business that has a team of people dedicated to different aspects of the business. Much of the negative talk about the industry is created because people choose very low-level operations and end up being disappointed with the service they receive. You’re also in very safe hands when it comes to something like collateral. Remember, bail bond agencies deal with huge amounts of money on a daily basis, and everything they do is tracked and recorded, so (depending on who you choose) your money will almost always be in a safe place.

If your worried about choosing a bail agency, look online. The internet has become a great place for finding information about a particular company, and it’s especially useful if you’re looking for reviews of the agencies you are considering. If you go through the whole process smoothly with a high quality bail bondsman, your friend or family member will be back with you in just a few hours, but it relies on a high level of communication and patience. With a good agency, you’ll be told everything you need to know so that everything goes smoothly.

Author Bio: Ryan Wells is a Florida Bail Agent who can service Asheville Bail Bonds and can also provide Nationwide bail bonds service.
Category: Legal
Keywords: bail bonds, bondsman, bonding company, surety, bail system, immigration bonds, federal bonds

Immigration Bail Bonds can cost between 15-20% of the full bail bond amount. That could be double the amount for normal state or county bail bonds, which is 10%, but there is obviously more risk involved for the bail bond agency. There is also a great deal more work (normally) for the bail bond agency when they are dealing with an immigrant. You have to understand the different legal processes they have to go through and the extra effort that it takes to go through those processes when an immigrant is involved. Obviously it’s not perfect for the customer, but it’s not as bad as it could be.

One of the biggest problems that immigration bail bonds bring with them is communication. Often there are language difficulties, or it’s simply a matter of culture. The bail bonds industry is something that isn’t replicated all over the world, and often it can seem completely alien to someone who hasn’t grown up with the concept. That means it often takes extra time to explain the bail bonds process to someone who is not a US citizen. There are also obvious identification problems and issues with collateral. It’s important that both sides remain fairly calm and patient throughout the process, no matter how hard things get. A break down in communication can mean a lot more work for the agency, but further frustration will be caused if this break down spirals into more arguments and issues between client and agency. Without both sides remaining calm, it could take far longer than it should to bail someone out of jail, and that’s detrimental to everyone. The best thing to do is remain calm and relaxed, and remember that the situation isn’t perfect for anyone.

When you think of immigration bail bonds, you probably think of an extremely tricky process that takes hours on end. If you banish this notion, you’ll soon find things much easier. Once you’ve given all of the information you need to, you can often just wait for the bail bond agency to do the bulk of the work, so you need not spend hours on end working with them to sort out every little kink. If you choose a good bail bond agency, then they will be able to handle the process with minimal fuss and hassle.

Immigration bonds are a particularly tricky area of the industry, and many agencies don’t even deal with them. You should choose an agency that has a specialist team of people to hand immigration bail bonds and will be able to help you through the process, rather than treating it like a normal case, which it definitely is not. If you find such an agency, the immigration bail bonds process can be pretty painless, and shouldn’t take too long, just remember to remain patient and keep your cool at all times; becoming frustrated won’t help matters, it will only make them worse.

Author Bio: Immigration Bond Immigration Bonds
Category: Legal
Keywords: immigration bonds, immigration bond, immigration bail bonds, immigration bail bond, INS, Deportation

It was a sad weekend as Congress passed a health care reform bill. The way it came about as the will of the American people was ignored and the awful consequences are enough to scare and stir up the most passive Christian. Further intrusion of government into our lives, loss of liberty, escalating insurance and health care costs, decreasing quality of health care itself, and an easier means of killing those who have no power to defend themselves are only the tip of the iceberg in terms of those consequences.

Scared and angry are the two words that come to mind when I think of the typical Christian’s reaction to this bill and where our government is taking us. In fact, some are panicked and others are ready to explode. And then there are calls from Christian leaders to fight in various ways. What lies ahead has been called a “brutal battle” and appeals for money to help “fight the good fight” are common.

Certainly Christians are to be salt and light. We are to influence our culture with the gospel in every area. It is legitimate to be involved in the social, civil, and political happenings of our day. Yet, I am very concerned that confusion abounds among Christians and we’re getting some things mixed-up.

More than one Christian conservative has referred to any number of political battles as “fighting the good fight.” To do so is to confuse one battle for another and actually cheapen the gospel in the process. Paul defines the “good fight” in 1 Tim. 6:12 as the “good fight of faith.” He is talking about overcoming trials and temptations that would assault our faith in Christ. He is talking about “[laying] hold of eternal life;” persevering in the faith. Later he said he had “fought the good fight” and defined it as “[keeping] the faith” and was ready to receive his heavenly reward (2 Tim. 4:7-8). The health care battle may be relatively important at some level, but it is not ultimate and it is not the “good fight.” Realizing this truth will help us keep things in proper perspective, diminish some of that fear and anger, and honor God.

Of course, we have to understand that neither fear nor anger honors God. Fear doesn’t come from God (Rom. 8:15; 2 Tim. 1:7) and anger doesn’t produce the righteousness of God (Jas. 1:20; Col. 3:8; Eph. 4:31). We’re not being good witnesses when we express either of those things before others. We must talk to others about what’s going on in our world with the quiet confidence that becomes one who knows God is in charge no matter what happens and that His kingdom is ultimate.

Further, we need to think about what our real battle and calling is. Our battle is not to make America better. Our battle is to advance the kingdom of God. When Paul was under arrest by the Roman government, he didn’t concern himself with the injustice of his situation; he concerned himself with advancing God’s kingdom (Acts 28:31). If we understand why we exist as kingdom citizens, our focus will be Christ and not better lives for ourselves. As we spread the message of the kingdom, the gospel, America may or may not become a better place. But, we will have peace in fulfilling the purpose for which we were created and saved. Any action we take on health care reform or any other political, civil, or social issue must be connected to the gospel; God’s kingdom. And, no matter what happens to us in this earthly kingdom of America, no one can keep us from being part of God’s kingdom and doing the things that we are called to do as kingdom citizens. My health insurance cost may increase. But the real issue is whether or not I represent God well in that circumstance and where my true satisfaction is; in Christ or in a better standard of living. Fighting carnally for earthly things does not put the power of the gospel on display. Resting in Christ and pointing others to Him does.

Now think about this: what does it say about one’s walk with God to be stirred up about your political opponents but not stirred up about people dying and going to Hell? What are the implications of acting in a way that causes lost people to hate us; to fight earthly battles with ugly rhetoric with people who need to be saved; to foster hatred in our own hearts for lost people that we should love enough to point them to Christ; to put so much attention on what we want here and now? Yes Christians are concerned with injustice and the loss of liberty for everyone. But, are we confused about our motive when we fight carnal battles? Do people see us concerned about them or ourselves?

With reference to health care and other political issues, Christian leaders are asking point blank: “Will you fight back?” The Lord Jesus said, “My kingdom is not of this world. If my kingdom were of this world, my servants would fight, so that I should not be delivered to the Jews; but now my kingdom is not from here” (Jn. 18:36). What does that mean for us?

Finally, how can you overcome fear and anger on this issue? Well, where is your hope? God says that He has established a kingdom that cannot be destroyed that will ultimately break into pieces all other kingdoms including America (Dan. 2:44). Wow! Now that’s a kingdom whose battles I want to fight.

Author Bio: Dr. Paul Dean invites you to discover more about yourself, God, and others . . . and develop a Christian worldview. Dr. Dean is a pastor, cultural commentator, and author. Receive a FREE commentary and learn more at www.trueworldview.com
Category: Legal
Keywords: advice,people,government,anger,fear,peace

Professional land surveyors must follow a strict code of ethics. This ethics code is set by each state’s State Board of Land Surveying. Many professional surveying societies also outline their own code of ethics. Although they vary by group, generally the guidelines outlined are approximately the same.

Land surveyor ethics are needed because land surveying can include an often surprising mix of art along with the science. It is sometimes difficult to know exactly how to survey a piece of property. Plus, a land surveyor is often hired by only one of the parties involved, while the survey results may affect several different parties For these reasons, every land surveyor should approach their work with fairness towards all parties involved. Land surveyors must remain neutral, making the best assessment possible given the evidence, without bending the survey to favor one side or the other.

When dealing with clients, surveyors must disclose any potential conflicts of interests, such as involvement with any parties involved in the survey situation, before accepting any surveying job. Surveyors should also not receive payment from multiple parties for any one project without the knowledge of all parties involved. Even after the completion of the project, a surveyor must keep any personal information received from individual clients completely confidential, even from the other parties involved in the survey.

An ethical surveyor should seek compensation that matches the level of technical complexity and time spent on the project. No surveyor should accept an assignment that is beyond their level of professional competence. Assignments should only be accepted if the expertise and resources of the surveyor allows them to be completed promptly and professionally. Most of the parties seeking a survey have never contacted a surveyor before, and therefore may not know what these services are worth. They should not be taken advantage of. If asked, they should explain how the compensation figure was determined.

Ethical surveyors will not sign any certificates, reports, or plans unless they were prepared under their personal supervision. If the surveyor hires employees, the surveyor must be professionally responsible for their actions. A surveyor should not seek to undermine the reputation or endanger the business prospects of any other surveyor, particularly when advertising their services. A land surveyor should not misrepresent their own qualification, particularly to sign on for a specific project that is outside the scope of the land surveyor’s qualifications.

Because the field of land surveying is constantly changing, many ethics statements include continuing education as one of their components. In fact, this is so important within the industry that it is often included in the requirements for state licensing as a professional land surveyor.

Like with all sets of ethical standards, a good principle is to treat other surveyors and clients the way you would like to be treated. A surveyor must also remember that their actions reflect not only upon themselves, but also upon the entire land surveying industry. Most people do not deal multiple times with land surveyors during the course of their lifetime, so the interaction that they do have with one surveyor can shape their opinion of the entire industry.

Author Bio: We at Point to Point Land Surveyors pride ourselves on accuracy, customer service and quality work delivered on time, guaranteed. Telecommunication land surveys are a specialty.
Category: Legal
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When it comes to knives, guns, and other weapons, there is always plenty of controversy surrounding their use, and subsequently, over legislation governing their use. What length of knife can be carried on you for various purposes? What type of weapons can be carried legally across borders? What types of permits are needed for these actions? Many of these issues boil down to whether ordinary citizens are free to carry any knives that they wish, or whether knife carrying should be heavily regulated.

As you might expect, multiple organizations have formed on both sides of this line. For those who collect or use knives, the American Knife & Tool Institute is the largest such organization. The American Knife and Tool Institute is a non-profit group representing the knife industry, including manufacturers, retailers, custom knife makers, and those who carry or collect knives. Whether you carry utility knives when hunting, keep a pocketknife in your pocket for everyday needs, or simply collect knives in your home, the American Knife & Tool Institute is an organization formed to support your right to do so freely.

The AKTI works to support sensible legislation when it comes to knifes. Their mission is to provide education on safe knife carrying and use, and to support legislation in line with their goals. Founded in 1997, AKTI is a unified voice to represent those in the knife-making and knife-using community. Its purpose is to educate the American public about the various types of knives and related tools that exist, and how to carry and use them properly. Besides education about knife types and the safe and responsible use of knives, the American Knife and Tool Institute also works to encourage knife legislation supporting its goals.

The American Knife and Tool Institute Executive Committee is comprised of industry leaders who meet to provide direction to the Institute programs. AKTI is most well known for its involvement in knife-related legislation throughout the United States, as well as on the federal level. The current and pending legislation monitored by the American Knife and Tool Institute ranges from customs definitions which govern which types of knives can be legally carried across borders to the length of knife that is legal to carry in your pocket. The AKTI website is constantly updated with knife-related legislation and other news events around the country, in addition to the contact information for relevant government officials and knife-rights support groups in your area.

The American Knife and Tool Institute is just one of the many ways for knife owners and enthusiasts to get involved at a grassroots level. It enjoys the support of the National Rifle Association, United States Sportsmen’s Alliance, Wildlife Forever, Whitetails Unlimited, and many related outdoorsmen’s clubs. If you routinely carry knives or use them when hunting, fishing, or engaging in other outdoor activities, consider supporting your rights through the AKTI and other organizations. Even if you don’t belong to such an organization, always carry and use your knives responsibly to set a good example.

Author Bio: Sharpen ‘Em has a full range of knife sharpeners to keep your knives in perfect condition. Also check for current specials on a chefs choice electric knife sharpener
Category: Legal
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Recently, reports have been circulating about skin damage and nerve damage as a result of the use of cold therapy devices. These products are defective and the public should generally be aware of the dangers associated with them. If cold therapy devices are used too long, or at too cold of a temperature, it can result in serious injuries such as nerve damage, chronic pain, or frost bite. With little or no instruction or warnings, patients may subject the skin and underlying nerves to very cold temperatures for extended periods of time. Because ice therapy can desensitize the affected area, serious injuries can occur without the patient’s immediate knowledge. Case studies have documented this injury pattern.

Cold therapy devices prescribed by doctors are essentially a small ice cooler which a patient can fill with ice and water, and use with an attached device to chill an area of the body. Inside the cooler a small motor circulates the extremely chilled water through a plastic bladder that is placed on a patient’s affected area. The circulated ice water super chills the desired area of the body, usually the feet, knees, or shoulders, and can have disastrous consequences due to the defective nature of this product.

Why Cold Therapy Ice Machines are Defective
Some of these cold therapy devices are contain a defective design. Their super cooling abilities can cause serious freeze injuries to both the skin and nerves of the area where the product is used. The devices are defective because there is no regulation of the temperature on how cold the device will make the patient’s skin. There is also very little instruction or warning that is provided with the device as to how long a patient can super chill the area of the body without a frostbite type injury. These devices are particularly dangerous, as once an area of a patient’s body is super-chilled, the patient is unable to feel the frostbite injury occurring, which can lead to even greater injury.

Known Injuries
The types of injury resulting from these cryotherapy or cold therapy devices are essentially frostbite. This type of injury is characterized by decreased blood flow and heat delivery to body tissues resulting in disastrous ice formation. These skin injuries can be classified as deep or superficial depending on the depth of injury and length of cold exposure. These injuries can involve the skin and tissue, while more serious injuries extend into the muscle and involve the nerves and even bone. These injuries can cause permanent nerve damage and chronic pain, although fortunately are rarely life-threatening.

If cold therapy devices are used too long, or at too cold of a temperature, it can result in serious injuries such as nerve damage, chronic pain, or frost bite. With little or no instruction or warnings, patients may subject the skin and underlying nerves to very cold temperatures for extended periods of time. Because ice therapy can desensitize the affected area, serious injuries can occur without the patient’s immediate knowledge. Case studies have documented this injury pattern.

Author Bio: About the author: JB Demerath is a nationwide products liability lawyer accepting new cold therapy lawsuits. His personal injury law firm, OMD is investigating and accepting cases related to frostbite caused by cold therapy ice machines. http://www.txinjurylawfirm.com/cryotherapy-lawsuits
Category: Legal
Keywords: ice therapy, cold therapy, frost bite, injury, nerve damage, products liability

Under IRC Sections 2503(e) (concerning gift taxes) and 2611(b)(1) (concerning generation skipping transfer (“GST”) taxes) (hereafter the “IRC exclusion provisions”) all “qualified transfers” for tuition or medical expenses are excluded from both gift and GST taxes – if they are paid directly to the educational institution or to the medical care provider. High net worth individuals commonly use IRC Section 2503(c) as a wealth transfer strategy. By paying their grandchildren’s and great-grandchildren’s tuition and medical bills, they are removing assets from their estate, both gift and GST tax free. Moreover, there are no limitations as to the amount that can be paid for such expenses. However, this strategy only works while the grandparents are alive.

For those grandparents who wish to pay for their descendants’ education and medical bills while transferring significant assets out of their estates, a health and education exclusion trust, or “HEET”, should be established. The grandparents can set up an inter vivos HEET using their $13,000 / $26,000 annual gift tax exclusion (for 2010), their $1,000,000 / $2,000,000 gift tax exemption, or by naming the HEET as the remainder beneficiary of a zeroed-out grantor retained annuity trust or a zeroed-out charitable lead annuity trust (see below). Alternatively, a testamentary HEET can be established in the grandparent’s Will or Living Trust and funded at death. An inter vivos HEET can be an irrevocable life insurance trust (“ILIT”) drafted as a HEET. Assets used to fund a testamentary HEET (unless an ILIT is used) would be subject to estate taxes, but not the GST tax. However, by creating and funding an inter vivos HEET, the after-tax income and appreciation on the assets gifted to the HEET are removed from the grandparents’ estate.

Generation-Skipping Tax:

A key benefit of a HEET is that it gets around the onerous GST tax. The GST tax is 45% on the amount of a grandparent’s gift (inter vivos or testamentary) to grandchildren (or more remote descendants) that exceeds (in 2009) $3,500,000, or $7,000,000 for married grandparents. To avoid the GST tax, the HEET must pay the educational or medical expenses directly to the provider, and the HEET must have a charity as a co-beneficiary. If the grandchildren (or more remote descendants) are the only beneficiaries of the HEET, transfers to it would be subject to the GST tax. Thus, a HEET is best suited for grandparents who have estates in excess of the $3,500,000 / $7,000,000 GST exemption and who have charitable goals.

A generation skipping transfer can occur in one of three ways: 1) a direct skip; 2) a taxable distribution; and 3) a taxable termination. The GST tax is calculated by multiplying the highest estate tax rate by the amount of the direct skip, taxable distribution, or taxable termination.

A transfer made directly to a skip person (i.e., grandchild), either during lifetime or at death, is a “direct skip.” A transfer made to a trust in which all beneficiaries are “skip persons” is also a direct skip. However, because a HEET has a non-skip beneficiary (the charity), a transfer to a HEET is not a direct skip.

Transfers to trusts that have both skip and non-skip persons as beneficiaries do not pay the GST tax upon the funding of the trust. Instead, a GST tax is paid by the trustee when distributions are made to beneficiaries who are skip persons. However, because of the IRC exclusion provisions, distributions made from a HEET directly to providers of education and health care on behalf of a skip person are not subject to GST tax.

A taxable termination occurs when a trust loses its last non-skip person and, therefore, only skip persons remain as beneficiaries. Since a HEET will always have a non-skip person beneficiary – the charity – a taxable termination will never occur, nor the GST tax consequent to it. But, the charity’s interest must be significant. Otherwise it will be ignored as being used “primarily to postpone or avoid” the GST tax. IRC Section 2652(c)(2).

Proper Structure:

To obtain the benefits of a HEET, careful drafting is required. First, the HEET should be established in a jurisdiction that allows for perpetual trusts. Second, to avoid GST taxes, the trustee must administer the HEET so that the distributions to the non-charitable beneficiaries constitute “qualified transfers” within the meaning of the IRC exclusion provisions (see below). Third, to maximize creditor protection, distributions to the non-charitable beneficiaries should be entirely discretionary, and an independent trustee or co-trustee should be named (see below). Fourth, to be assured that the HEET never loses its last non-skip person (thereby creating a taxable termination for GST tax purposes), the charitable beneficiary’s interest must be significant. Finally, if the charity’s interest is treated as a separate share, the HEET could be separated into two trusts – one exclusively for the charity and the other exclusively for the non-charitable beneficiaries – for GST tax purposes. IRC Section 2654(b).The effect of this division would be an eventual taxable termination with respect to most of the assets of the HEET. Perhaps the best way to assure that the charity’s interest is both significant and not separate, is to give the trustee the discretion to make payments of income and principal to the charity, but with a definite “floor.” Such uncertainty as to what the charity will receive should avoid the application of the separate share rule, while the floor assures the charity’s interest is significant.

Significant Interest:

How significant must the charitable interest be for the IRS to respect the charity as a bona fide perpetual “non-skip person” beneficiary? The more meaningful the charity’s interest, the greater the likelihood the IRS will respect it. But, the larger the payout to charity, the less property is available for the non-charitable beneficiaries. Unfortunately, there is little guidance in this area. Some practitioners believe a 10% unitrust amount must be paid annually to the charity. Others believe that a 4% – 6% annual unitrust amount is significant and cannot be ignored as de minimis. Still others believe that 10% – 50% of the HEET’s income should be paid to the charity annually, plus a percentage of trust principal. Perhaps guidance can be found under several Internal Revenue Code sections where a 5% or greater economic interest is deemed to be significant: IRC Section 4942 (minimum distribution amount for private foundations); IRC Section 664 (minimum distribution amount for charitable remainder trusts); IRC Section 2041(b)(2) (lapse of power of appointment); and IRC Section 147 (private activity bonds). Until the IRS provides guidance on this issue, uncertainty will remain.

Charitable Deduction:

There is no up-front income or gift-tax charitable deduction available when a grantor establishes an inter vivos HEET. Nor is there an estate tax charitable deduction available for assets funding a testamentary HEET. An inter vivos HEET should probably be drafted as a “grantor trust” so that, when the HEET makes distributions to charity, the grantor will be entitled to an annual charitable income tax deduction for same. Since the grantor of the HEET pays the tax on the HEET’s income, a grantor HEET also benefits the beneficiaries, because the growth of the HEET’s corpus is not diminished by income taxes.

A testamentary HEET, an inter vivos non-grantor HEET, and an inter vivos grantor HEET after the grantor’s death, will all be taxed as complex trusts and will file their own Form 1041. In such case, the trust itself will deduct distributions of income to the charitable beneficiary. IRC Section 642(c). And unlike individuals whose charitable contribution deductions are limited by a 50% of AGI ceiling (at best), a trust can deduct its charitable contributions up to 100% of trust income.

Qualified Transfers:

Among those distributions that constitute a “qualified transfer” are tuition payments for full or part-time students to both domestic and foreign institutions. However, the costs of books and room and board do not qualify. To cover room and board, books and other college expenses, the grandparents may also want to fund IRC Section 529 plans. Qualifying medical expenses include expenses paid on behalf of a beneficiary to any person who provides services for the “diagnosis, cure, mitigation, treatment or prevention of disease or for the purpose of affecting any structure or function of the body or for transportation primarily for and essential to medical care.” Treas. Reg. Section 25.2503-6(b)(3). Covered are payments for hospital services, nursing care, medical laboratory, surgical, dental and other diagnostic services, x-rays, medicine and drugs (whether or not requiring a prescription), artificial teeth and limbs, and ambulance. Not covered are payments for elective surgery. Finally, the HEET can be used to provide medical and long-term care insurance for its beneficiaries.

Creditor Protection:

To maximize creditor protection, the trustee of the HEET should be given broad discretion to make distributions among a class of beneficiaries. While a beneficiary may be a trustee, for optimal protection of assets, it is preferable to assign all distribution powers to an independent trustee or co-trustee. The grantor and/or the beneficiaries can be given the power to remove and replace the independent trustee without adverse estate tax consequences, as long as any successor trustee so appointed is not “related or subordinate” (within the meaning of IRC Section 672(d)) to the grantor or beneficiary exercising the removal power.

Applications:

A HEET is most commonly used as part of the grantor’s testamentary plan for assets in excess of the GST exemption. For example, after the decedent’s GST exemption is allocated to a Dynasty Trust, a portion of the remaining estate could be allocated to a HEET. Those who want to make a large bequest to charity might divide the charitable portion of their estate between a family foundation and a HEET. The family foundation could also serve as the charitable beneficiary of the HEET. Of course, the advantage of a direct bequest to charity over a HEET is that estate taxes have to be paid on the assets passing to the HEET.

Another planning opportunity is to name a HEET the remainder beneficiary of a grantor retained annuity trust (“GRAT”). Because of the estate tax inclusion period (“ETIP”) rules, GST exemption cannot effectively be allocated to a GRAT until the end of the GRAT term. Thus, if the GRAT increases in value as planned, that appreciation would be partially subject to GST taxes if the remainder beneficiaries were skip persons. However, by making a HEET the GRAT’s remainder beneficiary, the need for GST exemption is obviated.

Similar to the situation with a GRAT, a HEET can also be used in conjunction with a charitable lead annuity trust (“CLAT”). With a CLAT, charity receives an annuity for a fixed term of years, and the donor’s heirs receive the assets remaining in the CLAT at the end of the fixed term. Only the present value of the CLAT’s remainder interest is subject to transfer taxes. However, it is possible to set the annuity and term to arrive at a tax-free transfer. This is referred to as a “zeroed-out” CLAT (just as GRATs can be zeroed-out). But, while the rules for allocating GST exemption to a CLAT differ from the ETIP rules for a GRAT, they still prevent a grantor from allocating GST exemption based on the value of the remainder interest at the time the CLAT was created. As with the GRAT situation, a HEET remainder beneficiary does away with the GST exemption concern.

In summary, affluent individuals who want to secure their descendants’ education and health care, who have otherwise exhausted their GST exemption, and who have an interest in charity should examine the many uses and benefits of a HEET.

THIS ARTICLE MAY NOT BE USED FOR PENALTY PROTECTION.

Author Bio: Julius Giarmarco, J.D., LL.M, chairs the Trusts and Estates Practice Group of Giarmarco, Mullins & Horton, P.C., in Troy, Michigan. For more articles on estate and business succession planning, please visit the author’s website, http://www.disinherit-irs.com, and click on “Advisor Resources”.
Category: Legal
Keywords: estate planning,health education exclusion trust,grantor trust,inter vivos heet