By Associate Attorney Danielle Nodar
By creating a will or trust, a testator or settlor may make gifts to beneficiaries that are distributed at death. Often, the gift-giver will attach strings to these gifts in the form of certain conditions that the beneficiary must meet in order to receive the gift. Many conditions have been upheld by courts, but if a condition is considered too restrictive over certain aspects of a beneficiary’s life, the condition has been invalidated. There are two types of conditions: conditions precedent and conditions subsequent. Conditions precedent are conditions that must be met before the gift can be distributed to the beneficiary. Some examples of conditions precedent that have been upheld include gifts that are conditioned on a beneficiary finishing college or reaching a certain age before receiving the gift. Conditions subsequent, which are conditions that must be met after the gift is distributed, are often more difficult to uphold if the assets have already been transferred to the beneficiary and too much time has passed. For example, if a beneficiary receives a gift of land with the condition that it is never used for commercial purposes, it may be difficult to enforce fifty years after the gift is received; thus, this condition is more likely to be invalidated. Courts try to honor a testator’s or settlor’s wishes as much as possible, but a condition that encourages a beneficiary to break the law or is against public policy will be invalidated, and the gift will pass to that person as if the condition did not exist. Traditionally, gifts that have been invalidated due to public policy grounds are gifts that encourage harmful or discriminatory acts or hurt society in general. One common condition that is often challenged are conditions related to marriage, particularly conditions that a beneficiary receive a gift only if he or she marries someone of a certain faith. Depending on how the condition is written, these requirements have been upheld by courts, but the court decisions are very specific to the facts of each case and the phrasing of each gift. If a condition is too restrictive on the beneficiary’s right to marry anyone or if it encourages the divorce of a beneficiary, it is likely to be a violation of public policy. Whenever a condition is placed on a gift made in a will or trust, the condition must be clearly written, because if a beneficiary does not inherit due to failing to meet the condition, they may file a lawsuit to challenge the validity of a gift. A lawsuit will cause an unnecessary delay in other assets being distributed to beneficiaries, and the expense of a lawsuit will be paid out of your estate or trust. Also, when considering how to make a gift, certain conditions are easier to administer in a trust versus a will, as gifts in a will are usually distributed shortly after the decedent’s death and are subject to court scrutiny. When considering where and how to leave your assets, particularly if you want to exert some control over how the beneficiary receives the gift, it is important to consult with an experienced estate planning attorney. Please call Jesson & Rains if you are interested in more information on making gifts in your will or trust. While You Build, We Protect®
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By Associate Attorney Danielle Nodar
You may know that Jesson & Rains, PLLC offers a variety of legal services including estate planning, probate administration, business law and litigation, and construction contracts and litigation. But you may not know that they are also licensed in other states as well. Kelly Jesson, Edward Jesson, and Danielle Nodar are licensed to practice law in both North Carolina and Florida. Katheryn Currie is licensed to practice law in both North Carolina and Alabama. Hopefully, Ed and Katheryn will be licensed in South Carolina by the end of the year! By maintaining our licensure and good standing in multiple states, we are able to provide legal services to our clients that may reside in North Carolina but have businesses or real estate located in another state. For example, if you own real estate in Florida and need to retitle it, our attorneys can draft and record your Florida real estate deed. As our practice has become more virtual over the last few years, we are also able to assist our clients who reside out-of-state with drafting documents that must be from the client’s resident state, such as wills and powers of attorneys. If you have questions about how we can assist you with your legal needs in or outside of North Carolina, Florida, or Alabama, please let us know! By Attorney Edward Jesson
Delays in construction are often unavoidable. This rang especially true over the last few years while the world has been dealing with the COVID-19 pandemic. Contractors have had to deal with material shortages, price increases, and difficulty finding labor, among many other issues. However, legal issues tend to arise when those delays start costing people involved in the project money. The first thing to look at when evaluating whether you may have a claim for delay damages is the construction contract. Most contracts address delays, though the level of specificity will vary greatly. Generally speaking, the parties will be bound to whatever the contract says with regards to delay damages. Assuming that delay damages are recoverable, the burden is on the party claiming those damages to show: (1) what caused the delay; (2) that the person or entity claiming the damages was in no way responsible for the delay; and, (3) that the damages requested were, in fact, caused by the delay. Under North Carolina law, delay damages can, for the most part, be quite easily categorized. For example, there are excusable and non excusable delays. Generally, excusable delays will be delays caused by circumstances outside of the contractor’s control—COVID-19 being a great example. An example of a non excusable delay is failure to properly schedule and coordinate the work. In most instances, parties will not be able to make a claim for excusable delays and may be able to make a claim for non-excusable delays. There are also compensable and non compensable delays. A compensable delay would be a delay caused by circumstances within the control of the owner but not the contractor making the delay claim. For example, failure of the owner to provide materials which were required to be purchased by the owner which causes a delay in construction could be considered compensable delay—one that would entitle the contractor to additional time to complete the project or, under certain circumstances, monetary damages. Non compensable delays are, under most circumstances, going to be delays that do not allow anyone claim for monetary damages. Of course, in order to make a claim for monetary damages from a delay you have to show that you have suffered actual financial damages. Examples of monetary delay damages could be an owner’s lost profits from not being able to open a business on time, or increased material costs due to a delay from the contractor. Examples of monetary damages for a contractor may include the costs of idle equipment and labor, extended project overhead, and potentially lost profits from jobs that the contractor could not take due to delays caused by the project owner. There are many other aspects to delay damages under North Carolina law—many of which can be costly to owners and contractors alike. The good news is that many of these risks can be mitigated using effective contractual language. If you are curious whether your business is protected or if you have a delay issue, don’t hesitate to give the attorneys at Jesson & Rains a call. By Associate Attorney Katy Currie
Recently, the news has been filled with the fight over Lisa Marie Presley’s trust after her sudden and unexpected death in January 2023. The issue is who should serve as trustee, and the reason why this is not clear is because, in 2016, Lisa Marie Presley amended her trust. This amendment removed her mother, Priscilla Presley, and Barry Siegel, the Presley family's business manager, as co-trustees and named her children, Riley and Benjamin Keough, as co-trustees instead. Benjamin passed in 2020, leaving Riley as the sole trustee. Priscilla Presley argues that the 2016 amendment is invalid because she never received a copy of the amendment. In North Carolina, the creator of a revocable trust may revoke or amend the trust so long as they follow the procedure as it is stated in the trust document itself. If the trust states, for example, that the revocation document must be notarized, then it must be notarized. Under North Carolina law, if the method for amending the revocable trust is not stated within the trust document itself, the creator of the trust must amend their trust (1) with a later will or codicil that expressly refers to the trust or specifically devises property that would otherwise have passed according to the terms of the trust or (2) by any other written document delivered to the trustee, manifesting clear and convincing evidence of their intent to amend or revoke the trust. So, in Lisa Marie Presley’s case, if she had lived in North Carolina, her mother would have a legitimate argument that the amendment was invalid if Priscilla Pressley was serving as the trustee in 2016. Other estate planning documents must be amended or revoked carefully. Similar to a trust, if an agent is currently serving under a power of attorney and the principal amends or revokes it, the principal must serve the agent with a copy of the revocation. If a power of attorney document is recorded at the county Register of Deeds, a revocation of that document must also be recorded to put the world on notice that it is no longer valid. Wills and health care documents are automatically revoked when a new document is executed; however, it is best practice to let anyone and everyone who has a copy of the document know and ask them to destroy it. Even though a later executed will revokes a prior will, if the prior will is filed or probated at the courthouse mistakenly after someone passes away, it is a lot of work for the executor to undo. The death of a family member can, unfortunately, bring out the ugly side of some people. To ensure that your wishes are followed, you must carefully comply with the law when it comes to amending or revoking your documents. If you have additional questions or are in need of assistance, reach out to Jesson & Rains! By Associate Attorney Katy Currie
Valentine’s Day is a holiday to celebrate the endless love we have for the loves of our life. What better present to give your Valentine this year than ensuring your estate planning is done? There are many important aspects of sitting down and planning for your future through your estate planning documents, and unfortunately, there are countless issues that could arise without proper estate planning. Without a will you lose the control you have over who inherits what when you pass away, and this could have huge implications on your loved ones. You are deemed to have died “intestate” if you die without a will. North Carolina has an Intestate Succession Act which is the default law that kicks in if you should pass away without a will. It names which of your surviving family members are considered your legal heirs in North Carolina. The most common misconception surrounding intestate succession is that your spouse will inherit everything if you pass away without a will. This is not always the case if you have probate property and are survived by children or parents in addition to a spouse. For example, if you do not have a will and are survived by a spouse and one child (or grandchildren if that child is deceased), or a spouse and a living parent if you have no children or grandchildren, in addition to receiving the $60,000 spousal allowance, your surviving spouse takes the first $60,000 of your personal property, ½ of your real property, and ½ of whatever remains of your personal property while the child/grandchildren/parent inherits the remainder. If you are survived by multiple children or grandchildren, that number is cut to 1/3. Additionally, in North Carolina, a will is the only way to name a guardian for your minor children in the event both parents pass away. You can also create a testamentary trust within your will, which will name a trustee who can be the money manager for inheriting children until they reach a certain age (later than the default age of 18). So, while enjoying a nice romantic dinner to celebrate and show your love for your Valentine, it is also an opportunity to discuss planning for your future while you have some alone, intimate time together. If you approach the conversation with care and thoughtfulness, it could help you break the ice for those difficult, but important, decisions for your estate plan which will have a positive impact on your Valentine for years to come. If you would like to take the next step and work on your estate plan, give Jesson & Rains a call! By Associate Attorney Danielle Nodar
Branding your business helps set it apart from your competitors and keeps it present in the minds of consumers. To protect that brand, a business can obtain a trademark that essentially puts the world on notice that you are the owner of the specific mark. A trademark is a “word, phrase, symbol and/or design” that identifies and distinguishes the goods or services of the owner of the mark from another party. Examples of these marks include brand names, slogans, tag lines, logos, and design elements (think, Tiffany blue boxes). To get a federal registered trademark, the mark must be used in commerce, so normally the owner of the mark is a business. An application can be filed before the mark is used in commerce if the owner intends to use it in commerce, but the United States Patent and Trademark Office (“USPTO”) will not register the trademark until the applicant shows that it is actually being used. A benefit of a trademark is that they do not expire, so long as the mark continues to be used in commerce and the owner files periodic documentation with the USPTO. The trademark application process is fairly simple, so oftentimes non-lawyer business owners will attempt it themselves, but actually obtaining the registered trademark can be tricky. Applications can be denied for a variety of reasons, such as the mark being “merely descriptive” of the goods or services it applies to, or a mark being considered too similar to an existing trademark in a similar industry (a “likelihood of confusion” according to the USPTO). The strongest trademarks are “fanciful and arbitrary,” meaning they are words that have no relation to the good or service sold (like Apple computers), and the second strongest trademarks are “suggestive” meaning they suggest the good or service without literally describing it (think, Facebook). Unfortunately, most people name their businesses something that describes their goods and services for marketing purposes (for example, “Northwest Construction”), so trademark registration may not possible. Exceptions to this rule are well-known businesses or those that have been in business for many years. A business can have a common law trademark (indicated by the ™ symbol instead of the ® symbol) without registering it with the USPTO just by using the mark in commerce, but there are benefits to federally registering. Inclusion in the national database deters others from using similar marks in similar industries. Also, there is a legal presumption that registrant was the first to use it, meaning that in a dispute with another business, it would be presumed to be the winner. Damages would also be presumed. A drawback to a common law trademark is that it is limited in geographic area, so you could have a competitor business open up with the same name in an entirely different state, as long as you did not share customers. If a competitor opens in your geographic area, and you sue them for common law trademark infringement, you would have to prove that they did damage to your mark and that you were the first to use the mark. If you’re thinking of protecting an element of your brand with a trademark, give Jesson & Rains a call! |
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