I have recently received many questions regarding the Investors Visa commonly known as EB-5. This program has a very checkered history. However, it now is a highly viable alternative for the investor who would like to become a United States Permanent Resident (Green Card)

The Regular program became far too difficult for many investors to navigate.  Seeing this difficulty the United States Government in an effort to encourage immigration through the EB-5 category created a Regional Center program in 1990. This program sets aside 3, 000 visas each year for people who invest at least $500,000 in approved Regional Centers.

The onerous active management requirement of the regular EB-5 program is not part of the Regional Centers program.

The requirement of creating ten jobs is also not part of the Regional Centers program. The program says that it is sufficient if ten or more jobs are created indirectly as a result of the investment.

Regional Centers are defined as “any economic unit, public or private, which is involved with the promotion of economic growth, including increased export sales, improved regional productively, job creation, or increased domestic capital investment.”

The required amount of the investment is reduced to $500,000 if a Regional Center is located in a so called “targeted employment area”. This can be either in a rural or high unemployment area.

Congress gave USCIS (formerly Immigration and Naturalization Service) discretion to “give priority” to EB-5 petitions filed through a Regional Center. Once Permanent Resident status is granted, minimal involvement with the investment is permitted. This gives you the freedom to work in any business, go to school, or enjoy retirement.

I have had many questions recently regarding the expungement of a criminal record. We have prepared a Special Report on Expungement that will be available as a free download on our website www.deKirby.net. But in the mean time here are answers to some of my most recent questions.

What happens after my record is expunged? You will receive a court order setting aside your conviction and dismissing your case. Criminal record databases will be updated to reflect that your conviction was set aside and your case was dismissed.

Can employers consider a conviction that has been expunged (dismissed)? In most cases the answer is NO!  Once your cases is expunged (dismissed), it is no longer considered a conviction and California Labor Code 432.7(a) prohibits employers from asking an applicant to disclose information concerning an arrest or detention that did not result in conviction, or information concerning a referral to, and participation in, any pretrial or posttrial diversion program, nor shall any employer seek from any source whatsoever, or utilize, as a factor in determining any condition of employment including hiring. An employer who intentionally violates this section can be liable for a misdemeanor, plus fines, and attorney’s fees. This section does not apply to criminal justice agencies, health facilities, and has a few other narrow exceptions.

What will show-up when someone does a background check?  That depends on the kind of background check that is done.  A “hard” search involves you authorizing a government agency to release your records and you providing fingerprints.  This type of search will show that there was a court case, a charge of whatever you were charged with, and a dismissal with no finding of guilt and no conviction.   A “soft” search, which is done by most employers, utilizes a private sector company to search for convictions.  This type of search will in most cases show nothing at all, in some cases it will show that there was a court case, a charge of whatever you were charged with, and a dismissal with no finding of guilt and no conviction. 

If you have more questions on Expungement please order our Special Report today.

The best friends we are speaking of here are our pets. The animals in our lives are our best friends, and they are part of our families. Tragically, thousands of pets are euthanized every year when the owner dies and there is no planning in place.

There are numerous planning methods available to pet owners who wants to ensure that their pets are cared for after their death. Provisions can be placed in an honorary trust or a power of attorney for the care and feeding of your pet.

Your best friends with four legs, fins, feathers or fur can be remembered in a will that provides for their care after their owners pass away.

What a person can do to provide for a pet depends on state law. But generally, you can prepare for a pet in three ways:

• A special power of attorney. This authorizes someone to spend your money to care for your pet if you become ill or disabled. The authority expires when you die.
• A will. Your will names a caretaker for your pet and provides financial resources for its care. However, you must be careful that the payments are not taxable to your chosen caretaker.
• A trust. This appoints a trustee (person or organization) and directs how to invest trust assets and to whom they should be distributed. You would bequeath the pet to the trustee, in trust, to deliver it to the appointee. Trust income taxes will be due by the person receiving the income. If the pet’s expenses are paid by the trust, it owes the taxes. The trust terms can be part of your will or in a separate document effective during your lifetime.

When the pet dies, the remainder is given to charity or any beneficiary of your choice. A trust should say where assets go after the pet dies. The Internal Revenue Service has ruled that this charitable bequest is not deductible because when it is given is indefinite as the pet’s date of death is unknown.

A Lifetime Trust is and extremely valuable benefit that only you can give to your heirs. By holding assets in a trust for the lifetime of the beneficiary, you ensure that the inheritance is protected from lawsuits, spouses upon divorce and estate taxes when the beneficiary dies.

Yes, inheritances are separate property in case of divorce! But the reality is that many beneficiaries commingle the inheritance placing it at risk in the divorce.

 Yes, a beneficiary could take the inheritance and establish an asset protection trust. But, the reality is they will not do it and if they are wise enough to do it the cost could be $20,000 to $40,000! And will it work?

 The Beneficiary can control the assets by becoming a Trustee at the age you choose. They can grow into this responsibility by being Co-Trustee for a given period before becoming sole Trustee.

 This trust can be designed to be totally discretionary meaning the Trustee has absolute discretion in payment to the Beneficiary or based on the standards of health, education, maintenance and support.

 The message is clear, a Lifetime Trust is a wonderful gift only you can give! And it lasts the lifetime of the one you love!

What is the future of one of the most controversial taxes? Consider a few things:

• Our government is running record deficits.
• Over the next 50 years we will see largest transfer of wealth in our planet’s history.
• Over the next 50 years we will see our senior population grow exponentially.
• State budgets are stretched to the breaking point with the loss of estate tax revenues.
• History tells us that our government turns to estate tax to solve fiscal challenges.
• America’s current foreign policy, whether or not you agree with it, is expensive.
• The Democratic Party controls Congress for the foreseeable future.
• Pundits place a Democratic President in our future.
• Influential business leaders like Warren Buffet argue against repealing the Estate Tax.

So, what do you think? Whether we like the Estate Tax or not is irrelevant. The right question to ask ourselves is whether it will be a reality in our future. In light our country’s current situation, and the lessons of history, I believe it will be. The best we can do is to plan accordingly.

It is important to remember that any Estate Tax is only a small component of the reason we should plan our estates. The transfer or our financial and spiritual wealth to whom we want, when we want and in the manner that is in the best interest of our heirs is the real meaning of Estate Planning. Yes, it is nice to reduce Uncle Sam’s cut, but that should not be the sole motivation to plan for our family’s protection.

One last thing to remember is that Estate Tax, no matter the exemption, is VOLUNTARY! With proper planning, the estate tax can be avoided altogether. Remember that when you consider consulting your Personal Family Lawyer™!

If you are a parent with minor kids at home, you need a Kids Protection Plan™. Why? Because if something happens to you, you do not want Child Protective Services, as great as they are, to be caring for your kids.

Without proper planning in place, if the unthinkable happened, the police would have no alternative but to hand your kids  over to CPS. Your death would be devastating enough. Being looked after by strangers, even if only for a short time, is likely to deeply traumatic. 

Without proper planning you children would be another victim of our crowded court system. A judge, despite not knowing you, your children or your wishes, will have to make a decision that will drastically impact your children’s life. Is that what you want?

For more information go to http://www.kidsprotectionplan.com/

The ancient proverb told us that “Where there is a Will there is a way.” But the wisdom of this proverb was written before the advent of Probate. Now you will hear lawyers say “Where there is a Will there is a PROBATE!

PROBATE is a boon to lawyers, but a curse to the family both financially and emotionally. The average cost of PROBATE in California is 5% of the gross estate. That’s right gross rather than net.

For example, a residence in probate that has a value $1,000,000 and a mortgage of $800,000 will experience an estimated probate cost of $50,000. This is that much less available to the family to help provide for the loss they have just experienced.

If the cost were not enough it is estimated that the average probate lasts between 12 and 16 months. Not only are the assets diminished they are unavailable for an inordinate period of time when they may be most needed.

This can all be avoided by proper planning with a Personal Family Lawyer. Yes proper planning has a cost, but the spiritual and financial savings are tremendous. It is the one gift that only you can give your heirs.   

 Benjamin Franklin told us that we faced two inevitabilities and they were death and taxes! Well  as far as I know he was right about death. BUT in his day they did not have Estate Taxes.

Estate Taxes are voluntary! That is right, it is up to you whether you want to pay them. With proper planning your attorney can show you how to give your financial legacy how you wish, to whom you wish and the way you wish. It will be up to you if you want to pay Uncle Sam his share.

We have a moving target for estate taxes over the next three years. In 2008 it will be sums over 2 Million, then in 2009 it will go to 3.5 million only to vanish in 2010. But before you can take a deep breath it will be back down to 1 million in 2011. Your Personal Family Lawyer has strategies to plan with this unknown in mind!

For a history of the of  the most controversial if all taxes go to www.deKirby.net and hit articles.

Well of course your wife is not an alien! But the way the IRS sees it she may as well be!

We have in Estate Planning the Unlimited Marital Deduction which means you can at death leave as much as you like to your spouse and pay no taxes. BUT this is not true if your spouse is not a United State Citizen.

The IRS fears that your surviving spouse will go back home and take her inheritance and never pay any taxes. A US Citizen on the other hand will be easily subject to the IRS tax man at death.

For more on this important subject go to deKirby.net “Articles.”

Welcome to the Law Offices of Vaughan de Kirby, APC blog.

Our law firm is about protecting the legacy of your family. A legacy is something so much more than your financial wealth. It is the values that you bring to this earth. It is the experiences and memories that make up your life.

Many believe that life is a series of lessons for each of us. Share and preserve those lessons for your children and grandchildren. I lost my father at a very young age and so wish I knew how he felt about life and what it meant to him to have a young son.

We plan for the financial wellbeing of our clients and their families. When we complete this critical planning we then work to preserve in a specially designed audio file called Priceless Conversations the family’s spiritual legacy for this generation and the next.

If you are unable to do this planning with us make certain that you carefully preserve the thoughts, values and love that only you can express. When you are no longer here to share these conversations they will be priceless.

We all wish you and your family a wonderful Thanksgiving!