John L. Gorman III, Attorney at Law

04/07/2020

Why is God doing this to us?

We are all trying to figure this out, but I know that everything works for the good for those who love God (Rom 8:28). He is using the Virus to clarify what is most important to us. We have all become worldly, and a bit “agnostic.” Bodily health has become all-consuming to us. Agnostics think this life is all we get, and so dying is to be avoided at all costs. We should not be naïve: most of our media and government executives do not believe in God as we know Him; they suffer a hysterical fear of death, and they spread this fear to others.

A noble and rational person would give his or her life for justice, beauty, honor, love, and above all for faith (as do the martyrs). They know that it is better to die for love than to live without it. God’s gift of faith, hope, and charity frees us from living in fear of death. I beg you to make every effort, my dear people, to keep your faith and your peace during this epidemic. God is permitting the virus to deepen our faith. Let nothing trouble you, for you are in the hands of God.

from a blog by my friend Fr. Joseph Illo.

04/05/2020

My Law Office Is Still Open!

My sympathies go out to anyone suffering from the virus, and my prayers go out to them and all the persons who were working to help people with the virus.

My office remains open. We are handling most matters by telephone, email, or even face time. If you need to contact me, call my office (209-548-4000) and talk to me. If necessary we can set up procedures to get documents signed and so forth that still provide protection for everyone.

I’m here to help you if you need me.

03/27/2020

01/22/2020

A New Way Tor Transfer Property at Death.

In 2016, the California State Legislature enacted a series of codes creating a new method of transferring property at death, called the Revocable Transfer on Death Deed (TOD). Prior to this, the three ways of transferring property at death were by will, by joint tenancy, or by revocable living trust. The TOD represents a inexpensive way to transfer property. However, it does not apply to all situations, and it has its limitations.

Information about the TOD.

1. A transfer on death deed only applies to:
a. A single-family home or condominium unit,
b. A single-family residence on agricultural property of 40 acres or less, or
c. A residence with no more than four residential dwelling units.

2. The TOD may not work in situations where there are multiple owners to a property.

3. A TOD must be recorded within 60 days of the date it was signed or it is ineffective.

4. The transferor or owner can revoke a TOD deed in any of three ways:
a. The owner can record a formal notice of revocation;
b. A new TOD deed may be recorded; or
c. The real property can be sold or transferred to someone else prior to the transferor's death.

5. Upon death of the transferor, the beneficiary must file a Change in Ownership Statement with the county assessor within 150 days of date of death in accord with Revenue and Taxation Code section 480(b).

6. Although the TOD must be recorded within 60 days or less from the date it is it signed and before the owner's death, the interest in the real estate only transfers when the owner dies. Accordingly, the beneficiary identified on the TOD deed does not have any rights to the real property when the owner is alive. Furthermore, creditors of a named beneficiary cannot place any liens on the property. Of course, while the owner is living, the owner has the right to sell or encumber the property and it is also subject to involuntary liens that may be recorded by creditors of the owner which would transfer with the property to the beneficiary upon the owner's death.

7. Real property subject to a TOD deed remains subject to the claims of the transferor's creditors. The beneficiary of a TOD deed is personally liable to the transferor's estate and the transferor's creditors, up to the value of the property that passes to the named beneficiary. The personal representative of the transferor's estate may demand restitution from a TOD deed beneficiary. This demand may occur as late as three years after the decedent's death.

8. Property transferred by a TOD IS STILL SUBJECT to claims of the State Department of Health Care Services (Medi-Cal or Medicaid) to the extent authorized by law.*

* If you have followed my earlier articles you would know that property transferred at death by means of a living trust is NOT subject to claims of the State Department of Health Care Services.

09/23/2019

Trustee's Duties when a Settlor Dies.

Notice to Beneficiaries

Note: this is a general summary of the law and does not cover all circumstances. It should not be taken as legal advice but is simply intended to make you aware, in general, of some of the duties to which trustees are subject. If you are the trustee of a trust, you should seek competent legal advice about your particular situation. For full text of the law discussed here, see the California Probate Code §16060 et seq.

The trustee is required to keep beneficiaries reasonably informed (PC 16060)

On the request of a beneficiary, the trustee shall provide the “terms of the trust” to the beneficiary (PC 16060.7.)

§16069 says the notice and terms of trust are not required while the trust is revocable, or if the trustee and beneficiary are the same person.

“Terms of Trust” means anything that affects the distribution of the trust after it becomes irrevocable, but not during the life of the settlors. If the trust has been amended and completely restated, “Terms of the Trust” means only the new, restated trust. "Terms of the Trust" also includes any document irrevocably exercising a power of appointment over the trust or over any portion of the trust which has become irrevocable. (PC 16060.5)

On the reasonable request by a beneficiary, the trustee shall report to the beneficiary by providing requested information to the beneficiary relating to the administration of the Trust relevant to the beneficiary’s interest. (PC 16061)

A trustee shall provide a true and complete copy of the terms of the irrevocable trust, or irrevocable portion of the trust, to any heir or beneficiary that requests it. (PC 16061.5)

A trustee shall serve a notification by the trustee as described in this section in the following events:
(1) When a revocable trust or any portion thereof becomes irrevocable
(2) Whenever there is a change of trustee of an irrevocable trust
(3) Whenever a power of appointment retained by a settlor is effective or lapses
(PC 10616.7)

The Notification must Be Served To:
Each beneficiary named
Each heir of the deceased Settlor
The trustee need not provide a copy of the notification by trustee to any beneficiary or heir (1) known to the trustee but who cannot be located by the trustee after reasonable diligence or (2) unknown to the trustee.
(PC 16061.7.)

06/20/2019

You know those robocalls from scammers that you keep getting on your phones? The Federal communications Commissions (FCC) gets them too! Read all about it and get tips from them at:

https://blog.ssa.gov/the-federal-communications-commission-helps-consumers-avoid-scam-calls/?utm_medium=email&utm_source=govdelivery

04/16/2019

What is an LLC?

The term LLC stands for limited liability company. An LLC is a business entity that blends elements of partnership and corporate structures. The LLC’s main advantage over a partnership is that, like the owners (shareholders) of a corporation, the liability of the owners (members) of an LLC for debts and obligations of the LLC is limited to their financial investment in the company itself: Usually, their personal assets outside the company are not at risk.

Like a general partnership, members of an LLC have the right to participate in management of the LLC. Profits are usually not taxed at the level of the entity, but are passed through to the individual members who report their earnings or losses on their own tax returns.

An LLC’s profits and liabilities can be shared among the members as they agree, although it is wise to consult a tax professional about these arrangements.

An LLC must file formal Articles of Organization and obtain an entity number from the California Secretary of State. Statements of Information must also be filed regularly. Almost every registered California LLC and foreign LLC must pay a minimum annual franchise tax of $800.

I can help you form and organize your LLC, as well as corporations and partnerships. With my thirty years experience, I can craft agreements and give you advice to help avoid later conflicts and problems. Call me at (209) 548-4000 or email to [email protected]. Visit my website at johnlgormaniii.net

03/29/2019

Thank you everyone for your love and support for thirty years! ( No, I'm not done yet!).

03/05/2019

How Your Cell Phone Not Only Tracks You but Actually Records and Shares What you do Every Day.

By Craig Ball I give dozens of talks each year on electronic evidence where I discuss geolocation data and its transformative potential as evidence in criminal prosecutions and civil litigation. S…

01/31/2019

IF ITS TOO GOOD TO BE TRUE, YOU'RE PROBABLY RIGHT!

OR

HOW A PONZI SCHEME WORKS.

[This blog was taken from an article by TAMAR FRANKEL
31 JAN 2019

at https://verdict.justia.com/2019/01/31/ponzi-schemes-how-they-work-and-what-we-can-learn]

A Ponzi scheme—named for Charles Ponzi, who defrauded investors in the 1920s—is an investment fraud that pays profits to earlier investors using funds obtained from more recent investors. They have been practiced in the United States, Russia, India, Albania, and other countries as well. In 1994, a Ponzi plot reported by Diana B. Henriques of the New York Times defrauded institutional investors of $450 million. Between 1995 and 2002, US investors lost about $125 million to Ponzi schemes, and in 2002, the Boston Globe reported a Ponzi scheme involving eight banks that lost nearly $1 billion.

How do Ponzi schemes work?

Ponzi schemes share a very simple basic design. Investors are offered unsecured notes carrying a very high rate of return. The promised interest of many schemes may be 10%, as compared to the going rate of 5–10% per year. Bernard Madoff’s notorious scheme—the largest Ponzi scheme in world history and largest financial fraud in US history—was an exception, however, offering a rate that was not unusually high but instead very stable. Madoff’s scheme was estimated to be worth $64.8 billion in 2008.

In addition to offering a high interest rate, Ponzi schemes promise very low risk. Sometimes this promise is supported by collateral, such as real estate mortgages, insurance, or government or bank obligations—whether or not such collateral actually exists.

Inevitably, Ponzi schemes come to an end, usually within about two or three years, because they run out of new investors. If only new investors are added to a scheme, the number of new investors required by 11 months into a scheme exceeds the world population; schemes often survive this milestone because many investors re-invest in the scheme. Some Ponzi schemes have lasted as long as eleven years, such as one operated by a tax consultant who was able to get his “clients” to repeatedly re-invest and roll-over their original investments, significantly reducing the repayment due to early investors. The Madoff scheme most likely lasted even longer, but it is unclear whether it started as a legitimate brokerage business and only later evolved into the scheme.

Gaining the attention and trust of “marks.”

The con artists who operate Ponzi schemes draw the attention of their victims by offering incredibly high returns. Usually, after investors give a small amount and are paid, they re-invest more money. These promised returns, so out of line with what the market offers, draw the attention of any investor, even the most skeptical.

A Ponzi scheme—named for Charles Ponzi, who defrauded investors in the 1920s—is an investment fraud that pays profits to earlier investors using funds obtained from more recent investors. They have be...