Source: http://www.thewangiplaw.com/faq/
Timestamp: 2017-06-22 23:58:22
Document Index: 410087494

Matched Legal Cases: ['§ 8', '§ 1125', '§ 8', '§ 8', '§ 1057', '§ 1072', '§ 1125', '§ 1125', '§ 706', '§ 220506', 'art 656']

F.A.Q. | Wang IP Law Group, P.C.
Welcome to Wang IP Law Group, P.C.’s F.A.Q. page. Please click the practice area(s) of your concern for common questions regarding the services we offer.
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Patent Frequently Asked Questions:
1. What kinds of inventions can be protected?
Answer: An invention must, in general, fulfill the following conditions to be protected by a patent. It must be of practical use; it must show an element of novelty, that is, some new characteristic which is not known in the body of existing knowledge in its technical field, known as “prior art.”
The invention must show an inventive step which could not be deduced by a person with average knowledge of the technical field. Finally, its subject matter must be accepted as “patentable” under law. In many countries, scientific theories, mathematical methods, plant or animal varieties, discoveries of natural substances, commercial methods, or methods for medical treatment are generally not patentable.
2. What protection does a patent offer?
Answer: Patent protection means that the invention cannot be commercially made, used, distributed or sold without the patent owner’s consent. These patent rights are usually enforced in a court, which, in most systems, holds the authority to stop patent infringement. Conversely, a court can also declare a patent invalid upon a successful challenge by a third party.
Answer: A patent owner has the right to decide who may – or may not – use the patented invention for the period in which the invention is protected. The patent owner may give permission to or license other parties to use the invention on mutually agreed terms. The owner may also sell the right to the invention to someone else, who will then become the new owner of the patent. Once a patent expires, the protection ends, and an invention enters the public domain. That is, the owner no longer holds exclusive rights to the invention, which becomes available to commercial exploitation by others.
4. What role does USPTO play in the filing of my patent?
Answer: There are different pathways offered by the USPTO in obtaining a patent. This depends on the type of patent you would like to file for such as a utility, design, or plant patent. To get a general understanding of the specific steps involved in the patent process, please click here.
The Office cannot act or advise concerning the business transactions or arrangements that are involved in the development and marketing of an invention. The Office, however, will publish for a fee, at the request of a patent owner, a notice in the Official Gazette that the patent is available for licensing or sale. In addition, the Office of Independent Inventor Programs (OIIP) was established in March 1999 in order to meet the special needs of independent inventors. The OIIP establishes new mechanisms to better disseminate information about the patent and trademark processes and to foster regular communication between the USPTO and independent inventors.
5. Are there any state government agencies that can help me in developing and marketing of my invention?
Answer: Yes. In nearly all states there are state planning and development agencies or departments of commerce and industry which seek new product and new process ideas to assist manufacturers and communities in the state. If you do not know the names or addresses of your state organizations you can obtain this information by writing to the governor of your state.
6. Will the USPTO advise me as to whether a certain patent promotion organization is reliable and trustworthy?
Answer: No. The Office has no control over such organizations. The Office will publish complaints regarding invention promoters and replies from the invention promoters. The Office will not undertake any investigation of the invention promoters.
7. If two or more persons work together to make an invention, to whom will the patent be granted?
Answer: If each had a share in the ideas forming the invention as defined in the claims – even if only as to one claim, they are joint inventors and a patent will be issued to them jointly on the basis of a proper patent application. If, on the other hand, one of these persons has provided all of the ideas of the invention, and the other has only followed instructions in making it, the person who contributed the ideas is the sole inventor and the patent application and patent shall be in his/her name alone.
8. If a first person furnishes all of the ideas to make an invention and a second person employs the first person or furnishes the money for building and testing the invention, should the patent application be filed by the first and second persons jointly?
Answer: The application must be signed by the true inventor, and filed in the USPTO, in the inventor’s name. This is the person who furnishes the ideas (e.g. the first person in the above fact pattern), not the employer or the person who furnishes the money.
9. How can a patent be obtained worldwide?
Answer: At present, no world patents or international patents exist. In general, an application for a patent must be filed, and a patent shall be granted and enforced, in each country in which you seek patent protection for your invention, in accordance with the law of that country. In some regions, a regional patent office, for example, the European Patent Office (EPO), accepts regional patent applications, or grants patents, which have the same effect as applications filed, or patents granted, in the member States of that region. Further, any resident or national of a Contracting State of the Patent Cooperation Treaty (PCT) may file an international application under the PCT. A single international patent application has the same effect as national applications filed in each designated Contracting State of the PCT. However, under the PCT system, in order to obtain patent protection in the designated States, a patent shall be granted by each designated State to the claimed invention contained in the international application. Further information concerning the PCT is available. Procedural and substantive requirements for the grant of patents as well as the amount of fees required are different from one country/region to the other. It is therefore recommend that you consult a practicing lawyer who is specialized in intellectual property or the intellectual property offices of those countries in which you are interested to get protection.
10. What do I have to do to apply for a European patent?
Answer: Requests for the grant of a European patent must be filed on the form prescribed by the European Patent Office (EPO Form 1001). This should be accompanied (where applicable – i.e. where the applicant is not the inventor or is not the sole inventor) by a “Designation of the inventor” form (EPO Form 1002). An “Authorisation” (EPO Form 1003) may also be required (see “Representation” below).
Cost of a European Patent Application:
Filing fee: EUR 200 (for paper filings – fee code 001) or EUR 115 (for online filings);
Additional fee for the 36th and each subsequent page if applicable EUR 14 Search fee:
EUR 1 165 (fee code 002) Where appropriate, claims fees: EUR 225 (fee code 015) per
claim for the 16th to 50th claim and EUR 555 for the 51st and each subsequent claim up
to a limit of 50. The above fees are due within one month of filing the European
Further fees are due if you decide that you wish to pursue the application after receiving
the European search report.
Where to file: Filing offices are located in Munich, Berlin and The Hague. You may also
file by fax or online.
The EPO’s postal addresses and fax numbers can be found on their Contact page.
11. How long does the grant procedure take?
Answer: The European patent grant procedure takes about three to five years from the date your application is filed. It is made up of two main stages. The first comprises a formalities examination, the preparation of the search report and the preliminary opinion on whether the claimed invention and the application meet the requirements of the EPC. The second involves substantive examination.
12. Should I file a national, European or international application?
Answer: The European and national patent grant procedures exist in parallel. When seeking patent protection in one or more EPC contracting states, you can choose either to follow the national procedure in each state or to take the European route, which confers protection in all the contracting states that you designate in a single procedure.
If you decide that you want a European patent, you have the choice between the direct
European route and the Euro-PCT route. With the direct European route, the entire
procedure is governed by the EPC alone. With the Euro-PCT route, the first phase of
the grant procedure (the international phase) is subject to the PCT (Patent Cooperation Treaty), while the regional phase before the EPO as designated or elected Office is
governed primarily by the EPC.
*Questions and answers selected from articles published by the USPTO. To read the entire article, please visit the USPTO website.
** This information was provided by WIPO and EPO. Click to access the WIPO website
and the EPO website
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Trademark Frequently Asked Questions:
13. What is a trademark or service mark?
Answer: A trademark is a word, name, symbol, or device that is used in trade with goods to indicate the source of the goods and to distinguish them from the goods of others. A service mark is the same as a trademark except that it identifies and distinguishes the source of a service rather than a product.
The terms trademark and mark are commonly used to refer to both trademarks and service marks. Trademark rights may be used to prevent others from using a confusingly similar mark, but not to prevent others from making the same goods or from selling the same goods or services under a clearly different mark. Trademarks which are used in interstate or foreign commerce may be registered with the USPTO.
14. What is a collective mark?
Answer: A collective mark is any word, phrase, symbol or design, or a combination thereof owned by a cooperative, an association, or other collective group or organization and used by its members to indicate the source of the goods or services.
15. What is a certification mark?
Answer: A certification mark is any word, phrase, symbol or design, or a combination thereof owned by one party who certifies the goods and services of others when they meet certain standards. The owner of the mark exercises control over the use of the mark; however, because the sole purpose of a certification mark is to indicate that certain standards have been met, use of the mark is by others.
16. What is trademark dilution?
Answer: Dilution occurs when someone uses a mark in a manner that blurs or tarnishes the mark. Trademark dilution diminishes the capacity of the mark to identify and distinguish goods or services, regardless of the presence or absence of: competition with other parties, or likelihood of confusion, mistake, or deception. Dilution is different from trademark infringement because trademark infringement always involves a probability of customer confusion. Dilution, however, can occur even if customers wouldn’t be misled.
17. Why register a trademark?
Answer: There are many reasons to register a trademark. Registering provides greater protection of your mark. It protects the name or logo of your mark and you receive exclusive nationwide ownership of the mark to use it how you see fit. Registration also decreases the likelihood of an outside party claiming that your trademark infringes upon their trademark. Registration also provides notice to others that this trademark already exists. Therefore another party who adopts a similar mark cannot clam ignorance of your mark because it is published in the USPTO’s public database. Registration also makes the mark “incontestable” if the mark is in question. This means that the trademark owner has conclusive evidence of the validity of the mark and his exclusive right to use the mark.
Deterring others from registering with the same or similar mark is another benefit of registration. Since the trademark is registered with the USPTO and maintained on a public database, others are now alerted that you, as the trademark owner, own the exclusive right to use the mark. The USPTO will also refuse registration of any trademarks it believes to cause confusion to your trademark.
Greater remedies are available for trademark owners as well. Registration allows the trademark owner to obtain three times the amount of recovery and attorneys’ fees than for an owner who did not register his mark. Recovery is easier as well since registration grants the trademark owner the presumption of being the valid owner of the mark. Upon registration, the trademark owner also has an automatic right to sue in a federal court.
18. How long does it take for a trademark application to be approved?
Answer: Once the application is filed with the USPTO, it usually takes 10 to 18 months for your mark to be registered. However, for purposes of protecting your trademark, the filing date is more important than the registration date.
19. How long do trademarks last?
Answer: The term of a federal trademark registration is ten years, with ten-year renewal terms. However, registration rights can last indefinitely if the owner continues to use the mark to identify goods or services and timely files all post registration maintenance documents. You must file a “Declaration of Use under Section 8” between the fifth and sixth year following registration. In addition, you must file a combined “Declaration of Use and Application for Renewal under Sections 8 and 9” between the ninth and tenth year after registration, and every 10 years thereafter. If these documents are not timely filed, your registration will be cancelled and cannot be revived or reinstated.
20. Are trademark rights transferable?
Answer: Yes. A registered mark may be assigned and a mark for which an application to register has been filed may be assignable. Certain exceptions exist concerning the assignment of Intent-to-Use applications. Assignments may be recorded in the USPTO for a fee.
21. Are internet domain names trademarks?
Answer: The process for registering domain names is an altogether separate one from trademark registration. Nevertheless, many countries have reached the conclusion that there is a strong need for taking precautionary measures to prevent conflicts between marks and domain names. The system for domain names registration generally operates on a first-come first-serve basis and anybody is entitled to obtain any domain name without proof of commercial use.
22. What are the benefits of federal trademark registration?
Answer: Owning a federal trademark registration on the Principal Register provides several advantages, including public notice of your claim of ownership of the mark; a legal presumption of your ownership of the mark and your exclusive right to use the mark in connection with the goods or services listed in the registration; the ability to bring an action concerning the mark in federal court; the use of the U.S. registration as a basis to obtain registration in foreign countries; the ability to record the U.S. registration with the U.S. Customs and Border Protection (CBP) Service to prevent importation of infringing foreign goods; the right to use the federal registration symbol ®; and listing of your trademark in the United States Patent and Trademark Office’s online databases.
23. What types of trademarks can be registered??
Answer:Beginning with the least distinctive and ending with the most distinctive, a trademark can be categorized as (1) generic, (2) descriptive, (3) suggestive, (4) arbitrary, or (5) fanciful. A generic mark is never distinctive and never entitled to registration as a trademark, while suggestive, arbitrary, and fanciful marks are usually entitled to trademark protection because the law deems them to be inherently distinctive. Descriptive marks can sometimes be registered on the Principal Register as a trademark if they have achieved “secondary meaning.”
24. What is a generic mark?
Answer:Generic marks are not distinctive and the United States Patent and Trademark Office (USPTO) will not register generic marks because they simply identify the goods themselves—indicating nothing distinctive—and registration of a generic mark would be tantamount to monopolizing the use of a word.
25. What is a descriptive mark?
Answer: A descriptive mark immediately conveys knowledge of the ingredients, qualities, or characteristics of the goods or services with which the mark is used. The registration of descriptive marks is more complex because it also requires an explanation of the two sections of the Federal Trademark Register, namely, the Principal Register and the Supplemental Register. There are two broad categories of descriptive marks: (1) merely descriptive marks which have not acquired secondary meaning, and (2) descriptive marks which have acquired secondary meaning. Generally speaking, most descriptive marks can be registered on the Supplemental Register, but not all descriptive marks can be registered on the Principal Register. A descriptive mark can only be registered on the Principal Register if it has acquired secondary meaning by consumers—sometime called acquired distinctiveness. Secondary meaning does not come automatically, but is usually acquired after a business has become established and consumers recognize the mark.
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Trade Dress Frequently Asked Questions:
26. What is Trade Dress?
Answer: Trade dress is the design and appearance of a product together with the elements making up the overall image that serves to identify the product presented to the consumer. Yankee Candle Co., Inc. v. Bridgewater Candle Co., LLC, 259 F.3d 25, 38 (1st Cir. 2001). In other words, trade dress is a product’s “look and feel.” Trade dress may include features such as size, shape, color or color combinations, texture, graphics, or even particular sales techniques. Two Pesos, Inc. v. Taco Cabana, Inc., 505 U.S. 763, 765 n.1 (1992).
Trade dress is a broad concept, encompassing both product packaging and product design/configurations. Wal-Mart Stores, Inc. v. Samara Bros., Inc., 529 U.S. 205, 209-10 (2000). Book and magazine covers; the appearance of a teddy bear toy; a Rubik’s cube puzzle, the appearance of a lamp; the overall design of a sports shoe; the appearance of a video game console; a combination of features of a folding table, the appearance of a water meter; the decor, menu and style of a restaurant, and the distinctive performance style of a rock music group are among the things courts have held to constitute trade dress. 1 J.T. McCarthy, Trademarks and Unfair Competition § 8.01[2] at 8-8 to -9 (3rd. ed. 1996) (citing cases). Trade dress is not all encompassing, however. A marketing approach or theme, for example, generally does not constitute trade dress. See Woodsmith Pub. Co. v. Meredith, 904 F.2d 1244, 1248 (8th Cir. 1990); Revlon, Inc. v. Jerell, Inc., 713 F. Supp. 93, 97 (S.D.N.Y. 1989). Nor does the method or style of doing business. Prufrock Ltd. v. Lasater, 781 F.2d 129, 131-32 (8th Cir. 1986).
27. What Trade Dress is Protectable?
Answer: It is well established that trade dress can be protected under federal law. Traffix Devices, Inc. v. Mktg. Displays, Inc., 532 U.S. 23, 28 (2001). See 15 U.S.C. § 1125(a). For trade dress to be protected, however, it must be both non-functional and distinctive. Wal-Mart Stores, Inc., 529 U.S. at 210; Two Pesos, 505 U.S. at 775.
In general terms, a product feature is functional, and not protectable, “if it is essential to the use or purpose of the article or if it affects the cost or quality of the article.” Qualitex v. Jacobson Prods. Co., 514 U.S. 159, 165 (1995). Having a utility patent on a product is strong evidence that the patented features are functional and thus not protectable trade dress. Traffix Devices, Inc., 532 U.S. at 29.
Trade dress will meet the distinctive requirement if it either: 1) is inherently distinctive; or 2) has acquired distinctiveness through secondary meaning. Two Pesos, 505 U.S. at 769. Generally, distinctiveness of product design trade dress will not be considered inherent and can only be obtained through secondary meaning. Wal-Mart Stores, Inc., 529 U.S. at 214-16. Distinctiveness of product packaging trade dress, on the other hand, may be either inherent or acquired. Id. at 214-15.
Trade dress is inherently distinctive if its intrinsic nature serves to identify a particular source. Wal-Mart Stores, Inc., 529 U.S. at 210. In other words, inherently distinctively trade dress is that which has a design, shape or combination of elements so unique, unusual or unexpected that it will automatically be perceived by customers as an indicia of origin. McCarthy, § 8.02[4] at 8-23. Courts have held such items as a ouzo bottle, ice cream bar wrapping and the appearance of car sales brochures, reminder letters and reports to be inherently distinctive. See Paddington Corp. v. Attiki Importers & Distrib., Inc., 996 F.2d 577, 584 (2d. Cir. 1993); AmBrit Inc. v. Kraft Inc., 812 F.2d 1531, 1537 (11th Cir. 1986); Computer Care v. Service Sys. Enterprises, Inc., 982 F.2d 1063, 1069 (7th Cir. 1992).
Trade dress that has acquired distinctiveness through secondary meaning is trade dress that the public has begun to associate with a single source or producer, even if the actual producer is unknown, rather than just the product itself. Wal-Mart Stores, Inc., 529 U.S. at 211. In many instances, the only practical way to develop secondary meaning in trade dress is by advertising a product’s features claimed as trade dress in such a way that the feature and source become readily associated. McCarthy, § 8.01[2] at 8-16
28. How Can I Protect My Trade Dress?
Answer: Trade Dress may be registered with the USPTO if it satisfies the federal standards of trademark or service mark protection. Aromatique, Inc. v. Gold Seal, Inc., 28 F.3d 863, 868 (8th Cir. 1994). See Wal-Mart Stores, Inc., 529 U.S. at 209. Registration constitutes “prima facie evidence of the validity of the registered mark . . . , of the registrant’s ownership of the mark, and of the registrant’s exclusive right to use the registered mark . . .” 15 U.S.C. § 1057(b). Additionally, registration gives notice that the trade dress is claimed by the producer. Id. § 1072. Trade dress infringement is grounds for a civil action, regardless of whether trade dress is registered or not. 15 U.S.C. § 1125(a). If the trade dress is unregistered, however, the burden to show that the trade dress is protectable is on the producer. Id. § 1125(a)(3).
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29. What is a logo?
Answer: A logo is a graphic mark or emblem commonly used by commercial enterprises, organizations and even individuals to aid and promote instant public recognition. Logos are either purely graphic, such as symbols and/or icons, or are composed of the name of the organization, a logotype or word mark.
30. As a business owner, do I need a logo?
Answer: From a business perspective, a logo helps you to stand out above your competitors. A logo makes you memorable to current customers and can attract future customers. When properly designed, it gives your business a professional look. Your logo can convey that you are a credible, trustworthy, and experienced business.
31. How do I register my logo?
Final version of the logo: The first thing you need is the final version of the mark you want to register. This is important because if the appearance of the mark significantly changes after your trademark application is filed, the USPTO will not permit you to amend your application to reflect the revised mark.
Black and White or Color: Within the determination of the final version of your mark, you should also decide whether you want to register your logo in black and white or color. There are advantages and disadvantages to both. Registering your logo in color may be visually more appealing and provide greater strength of protection for your logo against infringement. Registering your mark in black and white, however, allows for you to freely change the color even after registration. If you have registered your logo in color and now want to change the color of the logo, you will have to seek to amend the trademark application and/or registration so that the logo matches the manner in which you are actually using it for business purposes. If the change of color is so drastic that the USPTO considers it a “material alteration,” then the amendment will be denied.
Logo search: Before you register you should perform a design search to see if your logo resembles an already existing registered design. It is advisable that an intellectual property attorney perform a logo search even if you have performed one yourself. A basic search may produced your desired results, however, an experienced attorney can use a variety of methods to ensure that your logo is registrable.
Registration: If you enlist the help of an attorney to register your logo, you will need to supply the necessary information of the logo to the attorney, including a drawing of the mark, the names and addresses of company principals, types of services affiliated with the mark, and any and all previous dates of use of the mark. You or an attorney will then fill out the trademark application form provided by the USPTO with this information. After paying all required fees, your mark will then be processed by the USPTO for registration.
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32. Why file for copyright registration?
Answer: Registration with the Copyright Office allows the copyright owner to establish a public record of your copyright ownership, file for an infringement action, and allow for the recovery of attorneys’ fees and statutory damages in a successful infringement action. Registration also acts as prima facie evidence of the validity of the copyright and you can record your registration with U.S. Customs in order to protect against possible infringing imports.
33. What is a copyright?
Answer: Copyright is a form of protection provided to the authors of original works of authorship. This includes:
In general, it gives the owner of copyright the exclusive right to reproduce, prepare derivative works, distribute copies, perform publicly, or to display publicly the copyrighted work.
34. What does a copyright protect?
Answer: The copyright protects the form of expression rather than the subject matter of the writing. For example, a description of a machine could be copyrighted, but this would only prevent others from copying the description; it would not prevent others from writing a description of their own or from making and using the machine. Copyrights are registered by the Copyright Office of the Library of Congress.
35. How is a copyright different from a patent or a trademark?
Answer: Copyright protects original works of authorship, while a patent protects inventions or discoveries. Ideas and discoveries are not protected by the copyright law, although the way in which they are expressed may be. A trademark protects words, phrases, symbols, or designs identifying the source of the goods or services of one party and distinguishing them from those of others.
36. When is my work protected?
Answer: Your work is under copyright protection the moment it is created and fixed in a tangible form that it is perceptible either directly or with the aid of a machine or device. In other words, protection begins as soon as the work is to be seen or used by the public.
37. Why should I register my work if copyright protection is automatic?
Answer: Registration is recommended for a number of reasons. Many choose to register their works because they wish to have the facts of their copyright on the public record and have a certificate of registration. Registered works may be eligible for statutory damages and attorney’s fees in successful litigation. Finally, if registration occurs within 5 years of publication, it is considered prima facie evidence in a court of law. See Circular 1, Copyright Basics, section “Copyright Registration” and Circular 38b, Highlights of Copyright Amendments Contained in the Uruguay Round Agreements Act (URAA), on non-U.S. works.
38. How long does copyright last?
Answer: The term of copyright for a particular work depends on several factors, including whether it has been published, and, if so, the date of first publication. As a general rule, for works created after January 1, 1978, copyright protection lasts for the life of the author plus an additional 70 years. For an anonymous work, a pseudonymous work, or a work made for hire, the copyright lasts for 95 years from the year of first publication or 120 years from the year of its creation, whichever expires first.
39. Can I copyright my website?
Answer: The original authorship appearing on a website may be protected by copyright. This includes writings, artwork, photographs, and other forms of authorship protected by copyright. Procedures for registering the contents of a website may be found in Circular 66, Copyright Registration for Online Works.
40. Can I copyright my domain name?
Answer: Copyright law does not protect domain names. The Internet Corporation for Assigned Names and Numbers (ICANN), a nonprofit organization that has assumed the responsibility for domain name system management, administers the assignation of domain names through accredited registers.
41. How do I copyright a name, title, slogan, or logo?
Answer: Copyright does not protect names, titles, slogans, or short phrases. In some cases, these things may be protected as trademarks. However, copyright protection may be available for logo artwork that contains sufficient authorship. In some circumstances, an artistic logo may also be protected as a trademark.
42. Does my work have to be published to be protected?
Answer: Publication is not necessary for copyright protection.
43. Why should I register my work with the U.S. Copyright Office?
Answer: You must register your copyright with the U.S. Copyright Office before you are legally permitted to bring a lawsuit to enforce it. You can register a copyright at any time, but filing promptly may pay off in the long run. “Timely registration” that is, registration within three months of the work’s publication date or before any copyright infringement actually begins, makes it much easier to sue and recover money from an infringer. Specifically, timely registration creates a legal presumption that your copyright is valid, and allows you to recover up to $150,000 (and possibly lawyer’s fees) without having to prove any actual monetary harm.
44. How do I register a copyright?
Answer: You can register your copyright by filing a simple application and depositing one or two samples of the work (depending on what it is) with the U.S. Copyright Office. There are two ways to file a copyright application: (1) file online (using the Copyright Office’s electronic eCO system); or (2) file a traditional printed copyright form (Forms PA, TX, VA, SR, etc.), each of which is specific to the type of work (for example, Form TX is only for text works).
45. How do I enforce my copyright or stop someone from using my copyrighted material?
Answer: In some circumstances, the mere threat of a lawsuit for copyright infringement is sufficient to stop the infringer. The delivery of a cease and desist letter informing the infringer of your copyright and right to enforcement may be enough to prevent any further damage.
In other cases where a cease and desist letter is not sufficient, you are you are entitled to file a lawsuit in federal court asking the court to issue a restraining order or injunction to prevent further violations and/or ask the court to award money damages if appropriate, and in some circumstances, award attorney fees.
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Internet & New Media Frequently Asked Questions
46. How does a business obtain a domain name?
Answer: To obtain a domain name, search to see if the domain name is protected as a trademark or trade name, and if not, then use a domain name registration authority to search for an available domain name, fill in an application, and pay a fee to own the available domain that you have applied for. To obtain a domain name that ends in .com or .org or .edu, fill out an application to an Internet Corporation for Assigned Names and Numbers (ICANN) approved registrar, such as Network Solutions.
47. Does a business need to search to see if a desired domain name is protected by a trademark or used as a trade name before obtaining the domain name?
Answer: Yes. Another business entity or individual may be using the same word or phrase or almost identical word or phrase as a trademark or trade name even though the domain name is available. These businesses or individuals may choose not to obtain an online trademark registration and register its trademarks as a domain name but still desire to protect their trademarks.Furthermore, the business or individual who owns the trademark may file a court action to try to prevent you from using the domain name on the grounds of online trademark infringement. One example is that the trademark owner can obtain a court order to prevent you from using a chosen domain name. The trademark owner must show either that consumers will be confused as to the the true owner of the domain name or consumers will unfairly be attracted to your website because the owner’s mark is well-known or famous on the Internet. IAdditionally, a trademark owner can also initiate domain name arbitration under the Internet Corporation for Assigned Names and Numbers (ICANN) Uniform Domain-Name Dispute-Resolution Policy (UDRP) to prevent others from using domain names that are similar to their trademarks.
48. Can a website owner protect its domain name?
Answer: Yes. It is advisable to immediately obtain an online trademark application for a domain name in the countries where you or your company conducts business or plans to conduct business in the future, including outside the U.S. A website owner must take into consideration the policies of ICANN if the domain name ends, for example, in .com or .org or .edu. The site owner should also search for the trademark on its Whois record to ensure that the registration authority correctly lists the owner of the domain name along with its most recent email, telephone and correspondence contact information. Finally, if the registration authority charges maintenance or renewal fees, then the site owner should make note of when maintenance or renewal fees are due and make inquiries to the registration authority.
49. Can an individual or business own an Internet domain name that is the same as an existing trademark?
Answer: Yes, an individual or business can own an Internet domain name that is the same or similar to an already existing trademark. This conflict can be the source of confusion and trouble for website owners and trademark owners alike. The general rule is that the first one to purchase the domain name and use it for a legitimate purpose is the owner of the domain name and has the rights to that name.
50. What is “cybersquatting” and what can I do to prevent it?
Answer: “Cybersquatting” is defined as the registering, trafficking in, or using a domain name with the intent to profit in bad faith from the goodwill of a trademark belonging to someone else. In other words, an individual or business who registers a trademark online as a domain name without the intention of actually using that domain name or building a website is “cybersquatting.” Instead, the “cybersquatter” acquires the domain name in hopes of reselling it back to an individual or business (usually the trademark owner of the name) for a profit.The prevalence of cybersquatting has led to the enactment of laws and regulations to prevent individuals and businesses from acquiring domain names in bad faith for profit. Specifically, trademark and service mark owners sue under the provisions of the Anticybersquatting Consumer Protection Act (ACPA). If the individual or business is cybersquatting in another country, you can fight the cybersquatter using an international arbitration system created by the Internet Corporation of Assigned Names and Numbers (ICANN). In general, the ICANN arbitration system is considered by some trademark experts to be faster and less expensive than suing under the ACPA.
51. What must a trademark or service mark owner show to win a case against a cybersquatter?
Answer: To win a case against a cybersquatter, a trademark or service mark owner must prove two main elements.
The Defendant had a bad faith intent to profit from that mark, including a defendant name which is protected as a mark; and
The Defendant registered, trafficked in, or used a domain name that:
is a trademark, word, or name protected by reason of 18 U.S.C. § 706 (the Red Cross, the American National Red Cross or the Geneva cross) or 36 U.S.C. § 220506
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52. What is a domain name?
Answer: A domain name is a name associated with a particular computer online. In the domain name www.chillingeffects.org, .org is the top-level domain (“TLD”), chillingeffects is the second-level domain name, and www is a subdomain. Domain names are looked up on name servers in the DNS hierarchy to resolve them to numerical IP addresses.A domain name registration, like a telephone directory listing, is simply a service by which the domain registry agrees to list your domain name and the corresponding IP address in its domain zone file (such as the .com zone file). The routers that forward data bits around the Internet must consult these zone files to know which machine you’re using. If the registry removes the domain name from the zone file, then routers (and users) will not be able to address mail or see your website if they use your domain name. They can, however, still reach you by using your IP address.There are over 250 top level domains (like .com, .us and .uk). Each has its own procedures for handling registrations and trademark disputes.
53. What is the policy for registering a domain name?
Answer: In .com, .org and .net, which are “open” to any kind of registrant, the policy is first-come, first-served, as long as you have registered and used the domain name in good faith or have legitimate interests in the domain name. However, you have no right to violate trademark law, or ignore your Registration Agreement, or engage in cybersquatting just because you registered the name first.Furthermore, in the newer domains such as .biz and .name, there are additional registration requirements that must be met because some of these domains are restricted. Trademark owners may also have advance registration rights. Check individual registry requirements.
54. Do I have trademark rights as the owner of a domain name?
Answer: You may actually have trademark rights superior to those of your accuser. You may have such trademark rights because you have a registered trademark; you have a pending “intent to use” trademark application, of which the filing date predates the use of the mark by your accuser; you have a pending “use based” trademark application and your date of first use predates the first use of the mark by your accuser; or you have “common law” rights to the trademark.In the U.S., the person who establishes priority in a mark gains the ultimate right to use it. According to the Lanham Act, determining who owns a mark involves establishing who first used it to identify his/her goods. That means, in the United States, you do not need to register a mark to establish rights to it. However, registering a mark means that the registrant is presumed to be the owner of the mark for the goods and services specified in the application.
55. Where do I look to find the owner of a domain name?
Answer: The quickest way is to use the global lookup tools such as Geektools, SamSpade, or uWhois multi-registrar WHOIS services. These are not authoritative directories, however, because they merely link to the databases of other directory services.To verify actual registration data of a particular domain name, use the Whois tool hosted by the registry for the top-level domain in question. UniNett keeps a list of links to all top level domain registries
*Questions and answers selected from articles published by the chillingeffects.org. To read the entire article, please visit chilling effects.org website.
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Fashion Law Frequently Asked Questions
56. What is fashion?
Answer: Fashion is a broad term to define the prevailing custom, usage or style during a particular time period. Fashion describes the make or form of something for a variety of creative fields, ranging from apparel, technology, and even food and beverage. Fashion is innovative, inspiring, and influential. Fashion allows for an open channel of communication between the creators and the consumers to determine what designs or goods will become integrated into society.
57. What is fashion law?
Answer: Fashion law is a rapidly growing, specialized area of law that incorporates a variety of legal fields. In particular, fashion law incorporates intellectual property, domestic and international business law, customs, licensing, employment and labor law and more.
58. What is a fashion trademark?
Answer: The iconic interlocking “C” design of Chanel, the famous horse and stagecoach of Hermes, and unforgettable vertical, interlocking lettering of Yves Saint Laurent are all examples of fashion trademarks. Our society is flooded with fashion trademarks in which they create long-lasting impressions in the minds of consumers.
By registering their trademarks, fashion designers and companies have protected their intellectual property rights for enhanced marketability of their designs or goods. Fashion trademarks are one of the most helpful marketing tools designers can use to promote their products. Brand names, logos designs, and slogans are all registrable as fashion trademarks. Fashion trademarks protect designers from the production of similar, infringing products while also enabling consumers to distinguish the product from counterfeit goods.
59. Why register a fashion trademark?
Answer: There are many reasons to register your fashion trademark. Registering provides greater protection of your brand. It protects the name or logo of your mark and you receive exclusive nationwide ownership of the mark to use it how you see fit. Registration also decreases the likelihood of an outside party claiming that your fashion trademark infringes upon their mark. Registration also provides notice to others that this trademark already exists. Therefore another party who adopts a similar mark cannot clam ignorance of your fashion trademark because it is published in the USPTO’s public database. Registration also makes the fashion trademark “incontestable” if it is in question. This means that the trademark owner has conclusive evidence of the validity of the mark and his exclusive right to use the mark.
Deterring others from registering with the same or similar mark is another benefit of registration. Since the fashion trademark is registered with the USPTO and maintained on a public database, others are now alerted that you are the exclusive right to use the fashion trademark. The USPTO will also refuse registration of any subsequent fashion trademarks it believes to cause confusion to your trademark.
60. Is a fashion trademark necessary?
Answer: Not necessarily but under current US law, it is entirely legal to copy fashion designs. It is illegal, however, to copy the fashion trademark, brand, or logo. An example of this is that it is legal to design a purse that is a replica of Chanel’s famous pleated leather flap bag with the chain strap but illegal to produce them with the interlocking C design. Trademarks have now become the most trusted and easiest way to protect a designer’s ideas and distinguish themselves from others in the marketplace.
61. How long does it take for an application for a fashion trademark to be approved?
Answer: Once the application is filed with the USPTO, it usually takes 10 to 18 months for your mark to be registered. However, for purposes of protecting your trademark, the filing date is more important than the registration date so the sooner you file the better!
62. How long do fashion trademarks last?
Answer:The term of a federal trademark registration is 10 years, with 10-year renewal terms. However, registration rights can last indefinitely if the owner continues to use the mark to identify goods or services and timely files all post registration maintenance documents. You must file a “Declaration of Use under Section 8” between the 5th and 6th year following registration. In addition, you must file a combined “Declaration of Use and Application for Renewal under Sections 8 and 9” between the 9th and 10th year after registration, and every 10 years thereafter. If these documents are not timely filed, your registration will be cancelled and cannot be revived or reinstated.
63. Are fashion trademark rights transferable?
Answer: Yes. A registered fashion trademark may be assigned and a mark for which an application to register has been filed may be assignable. Certain exceptions exist concerning the assignment of Intent-to-Use applications. Assignments may be recorded in the USPTO for a fee.
64. Do I need an attorney to file my fashion trademark?
Answer: No, but registering for a trademark can be an arduous and pain-staking process. A thorough trademark search includes a search through the complex three-tiered trademark system of common law, state and federal trademark rights in the U.S. Although the United States Patent & Trademark Office (USPTO) provides an online searchable database for public use, clients often find it difficult to personally navigate this system. Wang IP Law Group, P.C. quickly conducts various in-house computerized searches along with utilizing other screening tools for a complete trademark search.
65. Is registration for a fashion trademark expensive?
Answer: Registering for a fashion trademark is much more affordable that you may think. At Wang IP Law Group, P.C., we provide services for Fashion Trademark at a cost that allows clients to protect their brand through registration while simultaneously maximizing the marketability of their company. Our goal is always to provide the best quality of services with cost-effective pricing to allow for the greatest profitability for your fashion business.
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66. What is a lease agreement?
Answer: A lease is for a definite period of time—generally one year. Unless you break the terms of the lease, the owner of your apartment or house (your landlord) cannot change the agreement or raise your rent—unless the lease says otherwise. The owner also cannot ask you to move until the lease period is up.
67. What is a month-to-month rental agreement?
Answer: A month-to-month rental agreement is not for a set period of time. It continues until you decide to move or the owner asks you to leave. If you pay your rent monthly, you must give the owner 30 days written notice that you are moving. An owner who wants to raise your rent must inform you in writing 30 days ahead of time if the increase is 10 percent or less, and 60 days ahead of time if the increase is more than 10 percent. An owner who wants you to move must give you a written 30-day notice if you have lived in the rental property for one year or less. If you have lived in the rental property for more than a year, you must receive a 60-day written notice to vacate. (However, you and the owner may agree in writing to a shorter notice.) Or, if you live in subsidized or rent-controlled property, you may be entitled to a different notice.
68. Must rental agreements be in writing?
Answer: No. Leases and month-to-month agreements may be oral or written. However, a lease for more than one year generally must be in writing to be binding.
Written agreement. If you have a written agreement, read it carefully and make sure that you understand it. Sometimes a month-to-month agreement or lease mentions additional Rules and Regulations. Do not sign the agreement until you read the extra rules. Also, make sure that any blank spaces in the agreement are filled in or crossed out before you sign it. Ask for a copy that has both your signature and your landlord’s signature on it.
69. What happens if I violate the terms of agreement?
Answer: If you break the rules (by not paying the rent, for example, or by using the apartment for illegal purposes or creating a nuisance), the owner can give you a 3-day notice to pay your rent or move out, to stop your illegal behavior or move out, or to simply move out.
70. Can I change a written agreement?
Answer: With the owner’s agreement, you can make changes by crossing out items you and the owner consent to remove, and writing in any additions before you sign. If you have not had a chance to inspect whether the apartment is in good repair as stated in the agreement, write ‘Subject to Inspection’ next to that paragraph. Sometimes, rental agreements may be outdated because the law has changed, in which case you are not bound by any illegal or outdated rules in the agreement you sign.
71. Do I owe any money besides rent?
Answer: The owner has the right to ask for certain payments, and you have the right to a receipt or written agreement that explains the charges and how to obtain a refund. According to California law, the amount of deposits cannot exceed the cost of two months rent for an unfurnished place, or three months rent for a furnished place. While all deposits are considered security deposits by the law, the owner might ask for payments such as the following:
Last month’s rent in advance: If you give proper notice before moving out, you will not have to pay rent during the last month.
Security deposit: This deposit can be used to pay for damage that occurred while you were a tenant. If there was no damage, you should receive a refund of the security deposit. You should ask the landlord to inspect the property before you move out so you can repair any damage and get your security deposit refunded, but this does not apply if you receive a 3-day notice for non-payment of rent or breach of the lease. The owner must return your security deposit, or any remaining balance after repairs or cleaning, no later than three weeks after you move, or tell you in writing why you will not be refunded. If the deposit was used, the owner must account for how it was spent.
Cleaning fee or deposit: Even if your lease states that the cleaning fee or deposit is nonrefundable, that is illegal. If you keep the property clean, you should receive a refund of this fee, as with a security deposit.
Credit check fee: This payment is charged when the landlord passes the cost of doing a credit check to you.
If the owner does not notify you of these other payments, or if you believe the owner is not entitled to keep the deposits, you can sue in small claims court and win back part or all of your deposits. You should keep a record of all the payments you make to landlord, including your rent. Retain receipts, proof of mailing, and any other proof of payment. It is recommended that you pay with money orders or checks, and the landlord cannot make you pay rent in cash unless you have paid before with a bad check.
72. What are the tenant’s responsibilities?
Answer: The tenant’s responsibilities include the following:
keeping the rental unit clean,
disposing of trash in a sanitary manner,
operate electrical, gas, and plumbing fixtures properly,
avoiding the damage or removal of any part of the rental unit, its facilities, or equipment,
and using the rental unit as a home to live, sleep, cook, and dine only in the intended areas.
Other responsibilities can be found in the materials from the California Department of Consumer Affairs.
73. What are the landlord/owner’s responsibilities?
Answer: The landlord’s responsibility is to ensure the following:
the outside walls, windows, and doors protects tenants against water or weather,
the plumbing and gas fittings work properly,
there is hot and cold running water, appropriate fixtures, an approved sewage system, and an uncontaminated water supply,
there is a working heater,
there is adequate lighting and electrical wiring that meets safety standards,
the premises and common areas must be clean and free from pests,
there are adequate garbage containers,
and the floors, stairways, and railings are not broken.
The landlord is responsible for promptly repairing problems related to the items listed above, and comply with the standards in effect when installed in addition to current building and house code standards. If the landlord does not fix the problem after the tenant gives notice, the tenant may pay for the repair and deduct the cost from the rent, but only if the cost is not more than one month’s rent. Also, the landlord must give reasonable notice to the tenant before entering the rental unit except in cases of emergency, among other responsibilities that can be found in the materials from the California Department of Consumer Affairs.
74. What are the tenant’s rights?
Answer: You may rent your apartment to someone else unless your agreement states otherwise. This is called subleasing. If the agreement forbids subleasing, check with the owner and seek approval in writing. Be sure that your subtenant is responsible. If a subtenant causes damage or does not pay the rent, you will have to pay.Some communities have rent-control laws that give you certain protections against rent increases. Such laws usually say when and how much your rent can be raised. Many local governments have rent board agencies that can help you with issues involving local rent laws and ordinances.You also have the right to a decent place to live. The law says that your rental apartment must be livable. If the apartment is not livable—through no fault of your own—you can move. You may not have to pay rent after you move, even though you have a lease. You may also sue the landlord for any rent that you overpaid while living in untenantable conditions.By law, for a place to be unlivable or untenantable, the problem must be substantial and may include:
75. What are the landlord/owner’s rights?
Answer: The owner has a right to expect you to follow the rules of your rental agreement. You should, for example, pay your rent on time and keep the apartment or house clean. And you should avoid bothering other tenants with noisy parties or a television set turned up full blast.Also, use the apartment or house only as it is meant to be used. For example, don’t run a dry-cleaning business out of a residential apartment.The owner also has the right to expect you to fix anything you damage. If you break a lamp in a furnished apartment, for instance, you should repair or replace it.If you don’t follow the rules, the owner may have a good reason to ask you to move. And if you do not move, the owner can sue to evict you.Also, although no one can refuse to rent to people with children, the owner can limit the number of people living in the apartment.The owner also has the right to sell the building. If the building is sold, your lease will not change. The owner must either transfer your deposits to the new owner or refund them. If the deposits are transferred, the owner must tell you in writing and give you the new owner’s name, address and phone number.
76. What can I do if the property remains unlivable?
Answer: If the apartment is still unlivable and you have already contacted the owner multiple times to fix the problem, you may report the owner to a housing or building inspection department. The department can give the owner a written notice to correct the issue in 60 days, after which if there is no improvement, you may sue the owner.
If under unlivable conditions you want to make or pay for repairs, you may be able to deduct that amount from your rent, but you cannot deduct more than the cost of one month’s rent for any one repair nor deduct repair costs more than twice a year. Another step to take is to stop paying rent until repairs are made, but this might open you to a suit against you from the owner. Talk to a lawyer first before taking this step, and consider putting your rent money into an escrow account so you can pay rent after the repairs, or if you have to move. Make sure that in either of these events, you write to the owner first and explain your plans, and give him or her a reasonable period of time to make the repairs.
If other tenants have complaints, it may be possible to meet with them and discuss the issue, and nominate someone to meet with the owner. You and the group of tenants could hold a rent strike, which are only legal under certain conditions. It is best to seek legal advice or hire a lawyer for these circumstances involving untenantability.
77. Who should make repairs in my home?
Answer: Unless instructed otherwise by your lease or landlord, you should be responsible for repairs to damage made by you, your family, or your friend. If you ask the owner or manager to make the repair, you should be prepared to pay for it. The owner is responsible for the repairs of damage not caused by you. You should inspect the property with the owner or manager, and possibly a friend as an added witness, before moving in and ask for repairs or improvements at that time. It is advised that you document any issues with the property with initialed and dated photographs; keeping such evidence will help ensure the return of your security deposit later. Date, sign, and keep a copy of any request for repairs, which are better made in writing.
78. Can the owner come into my home without asking me?
Answer: The owner is only permitted to come into your home without permission in emergencies. For other reasons to enter your home, such as showing the place to prospective tenants, the owner must give you a 24-hour written notice and can only come during normal business hours. The owner must give you a 48-hour notice for a pre-vacancy inspection of your unit.
79. What happens when my lease runs out?
Answer: Your lease may have instructions for what to do when the lease runs out. There may be an automatic-renewal clause, which means that the lease will be renewed for the same period of time as the original agreement. Thus, if you are planning to move, you must inform the owner before the lease ends. Likewise, the owner must ask you to move before the lease ends. Automatic-renewal clauses and extension provisions are voidable if they are not printed in at least eight-point, boldface type.
If there is no automatic-renewal clause, but if the owner accepts your rent after the lease ends, the agreement is automatically renewed on a month-to-month basis. You will have to move out if the owner does not continue accepting rent in this situation.
80. What is an unlawful detainer case?
Answer: An unlawful detainer case is a court proceeding through which a legal eviction can be obtained. After you receive either a 3-day, 30-day, 60-day or 90-day notice to quit and that time has passed, the owner will send you a complaint. This is a document stating that you are being sued. You have five days—including weekends—to reply to the complaint. You also will receive a summons, which tells you when and where to respond. You must reply to the complaint in writing, using the proper court forms. If you do not, the case probably will be decided in the owner’s favor. If you are unsure how to reply, contact an attorney immediately.
81. Can the owner lock me out of my rented property?
Answer: By law, an owner who wants you to move cannot lock you out of your apartment or house—or remove your belongings or any doors or windows. Nor can an owner legally turn off the gas, electricity, heat or water. If any of these things happen, you can take the owner to court.
82. What can I do if I lose an eviction suit?
Answer:If you lose, you will have to move and you may get a judgment against you to pay the owner’s costs of going to court, including attorney fees and back due rent. You also are allowed to appeal. This means you can ask a higher court to rehear your case. But you will still have to move, unless the court grants a stay or delay until the case is finally decided.If you do not appeal, you will have to move. Otherwise, the owner can get a writ of possession. This is a paper that orders the sheriff to move you out. The sheriff will post a notice to vacate (by a certain date) on your door and you will have to move out by then. If you do not, the sheriff can lock your stuff in the house and force you to leave.If you move out but leave your belongings behind, the owner must give you 15 days (18 days if the notice comes by mail) to retrieve them. If you fail to claim your things during that time, the landlord may treat them as abandoned property and go through a process of disposing them. If your possessions are worth less than $300, the landlord may keep them or throw them out. If they are worth more than $300, the landlord must have a public sale.
83. How can I find out if a unit is rent-controlled?
Answer: Most units in California are not rent-controlled, but if the unit is located in a city with rent control, there may be local protections for tenants. To find out if a unit is rent-controlled, inquire with the city or county offices, local legal aid, self-help center, or your public law library. Click here to find out if the rental property is located in a rent-controlled city; however, the property itself may not be covered by rent control laws. A lawyer or other source of legal aid can help you find out if the property is rent-controlled.
84. What should I do if my tenant seems to have moved out?
Answer: It is known as “abandonment” if the landlord has good reason to believe the tenant has moved out without informing the landlord, and rent is 14 or more consecutive days late. As the landlord, you can send the tenant a signed and dated Notice of Belief of Abandonment that states that it is this type of notice, what date the landlord is ending the rental agreement, the name of the tenant, and the address of the rental unit. The date must be at least 15 days after the landlord serves the notice in person or 18 days after it is served by mail, and the tenant has that period of time to send the landlord a response saying he or she has not abandoned the property, or to pay the amount of rent owed.
If the tenant does not respond to the notice, the landlord can move out the tenant’s belongings and rent the property to someone else without having to file an unlawful detainer case. As the landlord, you should take caution in proceeding with a Notice of Belief of Abandonment, ensuring that there is good reason to believe the tenant has moved, that the rent was overdue at least 14 days and that the tenant was given the correct amount of time to respond, or else you could be sued for “wrongful eviction”.
85. Can a tenant sue a landlord for trying to evict him or her?
Answer: A tenant cannot file a countersuit against the landlord in an unlawful detainer case, because it is a legal procedure that streamlines the process for landlords to recover possession of their property. However, if the tenant move out before the unlawful detainer case goes to trial, the landlord should either dismiss the case or ask the court to change it to a regular civil case for damages if the tenant owes the landlord money. The tenant can countersue in a regular civil case for damages, but waives this right if he or she does not file a cross-complaint right away.
Alternatively, the tenant may be able to file a separate lawsuit against the landlord for personal injury or damage to the tenant’s personal property if the unlawful detainer case is not changed to a regular civil case for damages.
The tenant can file a lawsuit against the landlord for “wrongful eviction” and seek punitive damages in addition to the damages actually suffered if the landlord tries to evict him or her illegally by locking the tenant out without a court order. The landlord may have to pay a penalty on top of a reimbursement to the tenant for the costs incurred from being locked out.
86. What if I lived at the property but my name is not listed on the court papers as a tenant?
Answer: If you are a resident at the property but not listed as a tenant, you can choose to be involved in the lawsuit or not. You have the right to join the lawsuit by filing the Prejudgment Claim of Right to Possession that was served with the court papers on the tenants named in the unlawful detainer case within 10 days of the date the tenants were served. In addition, you must file an answer within 5 days of filing the Prejudgement Claim. To tell the court why you have a legal right to remain on the property, you will have to be involved in the suit.
If you do not have a legal right to stay on the property, you can avoid having the eviction show up on your credit record by waiting until the landlord gets a court order for possession against the named tenants before moving out. However, if you are a tenant in a foreclosed property, you may join an eviction case without it showing up on your credit record, in which case the 10-day limit to file the Prejudgment Claim does not apply to you. Instead, you can file this form at any time before the final judgment, or challenge the eviction after the judgment.
87. What happens when the tenant works for the landlord?
Answer: If the tenant works for the landlord and lives on the property without paying rent as a condition of employment, the landlord can file an unlawful detainer case without first serving notice once the tenant stops working for the landlord, regardless of whether the tenant quits or is laid off.
88. What happens if there is a foreclosure on the rental unit?
Answer: If there is a foreclosure on the unit, the owner must honor the existing lease. However, in month-to-month tenancies, or if the people occupants of the property are former owners who are being foreclosed on, the new owner can evict the tenants or former owners, or offer them a new rental agreement. The new owner must give tenants at least 90 days’ notice before starting the eviction if the existing tenants are not previous owners. Previous owners are entitled only to a 3-day notice before eviction.
Some California cities may still confer rights upon tenants to stay in their buildings; for example, cities with rent control or eviction laws prohibit new owners from using foreclosure as a reason for eviction. A lawyer or legal aid office may provide you with more information.
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Business & Investment Based Immigration Frequently Asked Questions
General Employment Visas:
89. What steps must an employer take to sponsor a foreign national for full-time, permanent employment in the U.S.?
Answer: The employer will need to first determine which category of employment-based visas the foreign national is eligible for (EB-1, EB-2, EB-3 or EB-4). Next, the employer then must determine whether a labor certification from the Department of Labor is required for the particular class. If one is required, the employer must have the certification approved prior to filing a petition with the U.S. Citizenship and Immigration Services office to obtain a visa for the worker.
90. What is the PERM process?
Answer: PERM is the process employers must use to apply for permanent labor certification from the Department of Labor (DOL) for foreign nationals they seek to hire for permanent, full-time employment in the U.S. As part of the PERM process, regulations were passed that require employers to conform to specific standards in the certification process, including in their recruitment efforts. Title 20 of the CFR, Part 656 contains a complete list of the PERM regulations.
91. What is a Form I-9 and do I need to fill one out?
Answer: Form I-9 is used for verifying the identity and employment authorization of individuals hired for employment in the United States. All U.S. employers must ensure proper completion of Form I-9 for each individual they hire for employment in the United States, including citizens and non-citizens. Both employees and employers (or authorized representatives of the employer) must complete the form.
On the form, an employee must attest to his or her employment authorization. The employee must also present his or her employer with acceptable documents evidencing identity and employment authorization. The employer must examine the employment eligibility and identity document(s) an employee presents to determine whether the document(s) reasonably appear to be genuine and to relate to the employee and record the document information on the Form I-9. Employers must retain Form I-9 for a designated period and make it available for inspection by authorized government officers.
92. What type of work may foreign nationals perform on temporary work visas?
Answer: There are a number of types of temporary work visas available. They include those for priority workers in specialty occupations, foreign nurses, temporary/seasonal agricultural and non-agricultural workers, trainees, intracompany transferees, those with extraordinary abilities in art, sciences, education and business and participants in international cultural exchange programs, among others. The U.S. government limits the number of non-immigrant visas that can be issued for some of these categories.
93. What is the government organization that oversees an individual’s immigration status?
Answer: The United States Citizenship and Immigration Services (USCIS) bureau of the Department of Homeland Security (DHS) is the main organization charged with overseeing immigration. Many of the USCIS’s duties were formerly handled by the Immigration and Naturalization Service (INS). The Department of Labor and the U.S. Department of State are also involved in some stages of employment-based immigration.
94. What steps need to be taken to employ foreign nationals for temporary work?
Answer: Employers should first contact the U.S. Department of Labor to apply for labor certification under the program that fits the type of work the prospective employee will perform. If the DOL provides the employer with a labor certification, the next step is to submit a petition to the USCIS for the temporary worker. Upon approval of the petition, the temporary worker can apply for a non-immigrant visa at the U.S. embassy or consul in his or her home country.
95. How long do employment based visas take to process?
Answer: Employment based immigrant visa cases take additional time because they are in numerically limited visa categories. The length of time varies from case to case and cannot be predicted for individual cases with any accuracy. Some cases are delayed because applicants do not follow instructions carefully. Some visa applications require further administrative processing, which takes additional time after the consular officer interviews the applicant.
Specialty Visas:
96. Who qualifies for an EB-5 Visa?
Answer:Permanent resident status based on EB-5 eligibility might be available to investors who have invested – or are actively in the process of investing – at least $1,000,000 (or $500,000 in a high unemployment or rural area) into a new commercial enterprise that they have established. An applicant seeking status as an immigrant investor must demonstrate that his/her investment will benefit the United States economy and create full-time employment for no fewer than ten qualified individuals, or maintain the number of existing employees in a “troubled business.”
If it is determined that the investment criteria is met and properly documented, an investor may be granted conditional permanent residence status for a period of two years. At the end of the conditional period a permanent green card may be issued. An investor may apply for U.S. citizenship five years after the initial grant of conditional permanent residence.
97. For EB1 Visas, what are the restrictions on types of businesses in which investment must be made?
Answer: For these visas, the investment must be considered a new commercial enterprise that was invested in after the year 1990, and distinctly different from the alternative, passive investments (such as the purchase of property).
98. What is a H-1B Visa?
Answer: This is a type of employment visa to work in a specialty occupation. Requires a higher education degree or its equivalent. Includes fashion models of distinguished merit and ability and government-to-government research and development, or co-production projects administered by the Department of Defense.
99. What is the difference between an L-1A and L-1B Visa?
Answer: The L-1A non-immigrant classification enables a U.S. employer to transfer an executive or manager from one of its affiliated foreign offices to one of its offices in the United States. This classification also enables a foreign company which does not yet have an affiliated U.S. office to send an executive or manager to the United States with the purpose of establishing one.
Whereas, the L-1B non-immigrant classification enables a U.S. employer to transfer a professional employee with specialized knowledge relating to the organization’s interests from one of its affiliated foreign offices to one of its offices in the United States. This classification also enables a foreign company which does not yet have an affiliated U.S. office to send a specialized knowledge employee to the United States to help establish one.
To qualify for either L-1 classification in this category, the employer must:
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100. What is estate planning?
Answer: Estate planning is a process that plans for the future in addressing your needs with regard to your assets, should you ever become unable to care for yourself. The process involves people, including your family and other relevant individuals, and your assets, including their forms of ownership and title. Financial, tax, medical and business planning may also be part of estate planning. Estate planning determines the following:
How and by whom your assets will be managed during your lifetime in the event that you become unable to manage them yourself
When and under what circumstances should your assets be distributed during your lifetime
How health care decisions will be made and how and by whom your personal care will be managed during your lifetime if you become unable to care for yourself
101. Do I need estate planning?
Answer: Regardless of the size of your estate, you do need estate planning as preparation for the future in case you ever become unable to manage your assets, health care and personal care decisions yourself. Choosing your beneficiaries and who will manage your estate, pay your last debts and distribute your assets after your death should be your aim if you have a small estate. If you have a large estate, additional planning will include discussing with your lawyer different options for preserving your assets for your beneficiaries, and to reduce or postpone the estate tax which might otherwise be payable after your death.
Estate planning allows you to have more control over who will inherit your assets. Without it, a judge will appoint someone to manage your assets and personal care, and the distribution of your assets will follow a set of rules called intestate succession. Your relatives, and possibly the relatives of your spouse will have priority in inheritance ahead of the state, but estate planning ensures that those who inherit will be of your choosing.
102. How do I begin estate planning?
Answer: Estate planning entails first a deliberation of several questions concerning your assets and beneficiaries, after which a consultation with a qualified lawyer will help you form an estate plan. The pertinent questions to answer are the following:
What are my assets and their approximate value?
When and to whom do I want to turn over my assets?
Who should manage my assets if I am unable to either during my lifetime or after my death?
Who should be responsible for the care of my minor children if I become unable to take care of them myself?
Who should make decisions on my behalf regarding my care and welfare if I become unable to care for myself?
What do I want done with my remains and where would them laid to rest after I die?
With the answers to these questions, a lawyer can provide advice and services regarding taxes, title to assets, and estate management, among other concerns.
103. What does my estate include?
Answer: All of your assets are included in your estate. Your assets may consist of those held solely in your name or jointly with others, bank accounts, real estate, stocks and bonds, furniture, cars, jewelry, life insurance proceeds, retirement accounts and payments due to you, for example a tax refund, outstanding loan or inheritance.
After you have deducted your debts, such as a car loan or mortgage, the value of your estate is equal to the “fair market value” of all your various property. The value of your estate helps in determining whether your estate will be subject to estate taxes after your death, and whether your beneficiaries could later be subject to capital gains taxes. Estate planning thus also includes preparing sufficient resources to pay these taxes.
104. Can I name alternative beneficiaries?
Answer: Yes, you can name alternative beneficiaries, especially in the event that you survive your primary beneficiary. Additionally, if a beneficiary is too young or disabled to handle an inheritance, setting up a trust for his or her benefit under your will or living trust is also an option to consider. Make sure you correctly identify those chosen individuals and charitable organizations in your will or trust, since many organizations have similar names, which may be the case with family members as well. A lawyer can help you clarify and accurately identify your beneficiaries during the estate planning process.
105. Who should be my executor or trustee?
Answer: Your executor or trustee can be anyone of your choosing, as he or she does not need any special training for this role. Keep in mind that an executor or trustee should be organized, responsible, prudent and honest, in order for them to optimally carry out your written instructions. Both roles have almost exactly the same function, but the executor of a will is subject to direct court supervision while the trustee of a living trust is not. Another difference is that a trustee may assume responsibilities under the trust while you are living if you become unwilling or unable to continue these duties yourself.
Your spouse or domestic partner, an adult child, another relative, a family friend, a business associate or a professional fiduciary such as a bank could all be candidates to serve as your executor or trustee. Discussing who to appoint with your estate planning lawyer will help address the issues in this decision.
106. How should I provide for my minor children?
Answer: You can provide for your minor children by nominating a guardian in your will to supervise and care for your child and manage the child’s assets until he or she is 18 years old. California law states that a child under age 18 is a minor child, and would not be legally qualified to care for himself or herself if both parents were to die. A minor child is also not legally qualified to manage his or her own property.
Another option is to transfer assets to a custodian account under the California Uniform Transfers to Minors Act to be held for the child until he or she reaches 18, 21, or 25 years of age. Alternatively, you could set up a trust to be held, administered, and distributed for the child’s benefit until the child is even older.
107. Will my beneficiaries’ inheritance be taxed?
Answer: Assets left to your spouse or a charitable organization will not be taxed. As of January 1, 2013, the federal estate tax exemption was made permanent at $5 million, to be adjusted for inflation each year. Under current law for deaths in 2014, you can give or leave up to $5.34 million without owing federal gift and estate tax. Estate taxes can be saved on estates that approach or exceed these amounts by proper estate planning before your death. California does not have an estate tax nor an inheritance tax.
In addition, gifts that are not more than the annual exclusion amount of $14,000 in 2013 or 2014 are not subject to gift tax. This gift amount can be given to any number of different recipients. Tuition and medical bill payments are not taxed either, if they are made directly to the educational institution or medical provider.
While these may be the provisions in place now, tax laws often change. Estate planning should include evaluation of income, capital gains, property and generation-skipping taxes besides estate and gift taxes. You should consult a lawyer for legal advice about taxes and current tax law during your estate planning.
108. Does the way in which I hold title make a difference?
Answer: How you hold title to your assets, and the nature of those assets, does make a difference in the estate planning process. Your estate planning lawyer will advise you before you take title or change title to an asset, and you should ensure that you understand the tax and other consequences of any proposed change. The different kinds of assets are listed below.
Community property and separate property. If you are married or a registered domestic partner, assets earned by either you or your spouse or domestic partner while married or in the partnership, and while a resident of California, are community property. Earned income in domestic partnerships may not be treated as community property for federal income tax purposes. You may continue to own certain separate property as well, which includes property you owned before the marriage or domestic partnership, and gifts or inheritance received during the marriage or partnership. To convert separate property to community property and vice versa, you need a written agreement conformed with California law and signed by both spouses, but these conversions have major tax and other consequences you should understand before making changes.
Tenants-in-common. If you own property as tenants in common and one co-tenant dies, that co-tenant’s interest in the property passes to the beneficiary named named in his or her will. This applies whether the co-tenants are married, in a domestic partnership, or single.
Joint tenancy with right of survivorship. Co-owners of a property can also hold title as joint tenants with right of survivorship. If one tenant were to die under this arrangement, the property would pass to the surviving joint tenant without impact from the deceased person’s will. This applies to co-owners whether they are married or not.
Community property with right of survivorship. If your spouse or domestic partner were to die and you both hold title to property as community property with right of survivorship, the property would pass to you without impact from the deceased person’s will.
Furthermore, married couples and registered domestic partners can also jointly hold title to property as community property. Under this arrangement, if one spouse or partner were to die, his or her interest would be distributed according to the instructions in his or her will.
109. What is probate?
Answer: Probate is a court-supervised process for transferring a deceased person’s assets to the beneficiaries listed in his or her will. Typically, the executor named in your will would start the process after your death by filing a petition in court and seeking appointment. Your executor would then take charge of your assets, pay your debts and, after receiving court approval, distribute the rest of your estate to your beneficiaries. If you were to die intestate (without a will), a relative or other interested person could start the process. In such an instance, the court would appoint an administrator to handle your estate. A probate case can take between 9 months to 1 ½ years, sometimes longer.
110. What is a will?
Answer: A will is a traditional legal document which names individuals or charitable organizations who will receive your assets after your death, either by gift or in a trust. Wills nominate an executor who will be appointed and supervised by the probate court to manage your estate; pay your debts, expenses and taxes; and distribute your estate according to the instructions in your will. Your will can also nominate guardians for your minor children.
Most assets in your name, alone, at your death will be subject to your will. Some exceptions include securities accounts and bank accounts that have designated beneficiaries, life insurance policies, IRAs and other tax-deferred retirement plans, and some annuities. Such assets would pass directly to the beneficiaries and would not be included in your will. In addition, certain co-owned assets would pass directly to the surviving co-owner regardless of any instructions in your will.
111. Are there various kinds of wills?
Answer: There are three different ways to make a will in California:
A handwritten or holographic will. This will must be completely in your own handwriting. You must date and sign the will. Your handwriting has to be legible, and the will must clearly state what you are leaving and to whom. A handwritten will does not have to be notarized or witnessed. However, any typed material in a handwritten will may invalidate the will. Unlike a handwritten will, a typed will must be signed by two witnesses.
A statutory will. California law provides for a “fill-in-the-blanks” will form. This will form is designed for people with relatively small estates. If there is anything you do not understand or if you are making any provisions that are complicated or unusual, it would be best to seek the advise of a qualified lawyer.
A will prepared by a lawyer. An estate planning lawyer can ensure your will conforms with California law. The lawyer can make suggestions and help you understand the many ways that assets can be transferred to or for the benefit of your beneficiaries. A lawyer can also help you develop a complete estate plan and offer alternative plans that can save taxes. This kind of planning can be extremely helpful and economical in the long run. A lawyer will also either personally supervise the signing of your will or will give you detailed instructions on the rules for its execution by you and your two witnesses.
112. What is a revocable living trust?
Answer: It is a legal document that can, in some cases, partially substitute for a will. With a revocable living trust (also known as a revocable inter vivos trust or grantor trust), your assets are put into the trust, administered for your benefit during your lifetime and transferred to your beneficiaries when you die. With a trust, this transfer occurs all without the need for court involvement.
Most people name themselves as the trustee in charge of managing their living trust’s assets. By naming yourself as trustee, you can remain in control of the assets during your lifetime. In addition, you can revoke or change any terms of the trust at any time as long as you are still competent.
113. What other kinds of trusts are there?
Answer: There are two other types of trusts:
Testamentary trusts– are trusts that are based on instructions in your will; such trusts are not established until after the probate process. They do not address the management of your assets during your lifetime. They can, however, provide for young children and others who would need someone to manage their assets after your death.
Irrevocable trusts– are trusts that cannot be amended or revoked once they have been created. These are generally tax-sensitive documents. Some examples include irrevocable life insurance trusts, irrevocable trusts for children, and charitable trusts.
114. How do I know if a trust is right for me?
Answer: It can help ensure that your assets will be managed according to your wishes even if you become unable to manage them yourself.
In setting up your living trust, you may serve as its trustee initially or you may choose someone else to do so. You can name a trustee to take over the trust’s management for your benefit if you ever become unable or unwilling to manage it yourself. And at your death, the trustee would then gather your assets, pay any debts, claims and taxes, and distribute your assets according to your instructions. Unlike a will, however, this can all be done without court supervision or approval.
However, because living trusts are not under direct court supervision, a trustee who does not act in your best interests may, in some cases, be able to take advantage of you. In addition, the cost of preparing a living trust could, in some cases, be higher than the cost of preparing a will, depending on the particular estate plan. The difference in cost may not be significant if the estate plan is complex.
115. What is trust administration?
Answer: Trust administration is the process by which a trust is carried out following the death of the settlor, or creator of the trust, to comply with the terms of the trust. A trust is often established when the settlor wants to avoid a long and expensive process to settle his or her affairs. A properly funded living trust should avoid probate and the specific terms of the living trust should still be easily carried out. Absent problems with the trust, the administration of a trust will typically avoid a court probate proceeding, thus saving time and money. A trust administration can also ensure that assets of the deceased spouse will be set aside for his or her intended beneficiaries. If there is no trust administration, the surviving spouse may be able to benefit individuals that the deceased spouse did not intend to benefit. Although probate may be avoided, administration of a trust is still required. In fact, a typical trust must be processed in much the same way a probate estate is processed, although it will typically avoid court involvement.
116. What are the steps of trust administration?
Inventory of assets of the trust. First, the trustee is to gather and inventory all assets of the trust, including whether there were assets outside the trust which were supposed to be inside the trust. After all the assets are accounted for, valuations must be assigned to those assets. Valuations are used to determine whether a federal estate tax return will need to be filed. Tax issues regarding the estate are varied and complex and therefore, it is best to consult with an experienced attorney in this matter.
Debts and expenses paid. All final debts and expenses of the settlor must be paid before the trust is distributed to the beneficiaries. In some cases, creditors will require formal notice. Again, complications or questions may arise in giving notice to creditors so it is important that the trustee fully understands the terms for giving notice.
Notice to beneficiaries. Next, the trustee must contact the beneficiaries of the trust and with the settlor’s heirs at law. California law requires that the beneficiaries and heirs receive notice of the trust. Additionally, all beneficiaries are entitled to be kept informed about the administration process. The trustee must also provide annual accountings to the beneficiaries of the financial activity of the trust, unless the trust specifically provides otherwise.
Distribution of assets. The trustee then must distribute the assets of the trust according to the terms of the trust. The trust may instruct that the trustee transfer the assets immediately to the named beneficiaries or that the assets be held for a period of time. This period of time can include up to the beneficiary’s entire lifetime for that beneficiary’s use or for a beneficiary’s special needs. Since the distribution provisions are created by the individual settlor of the trust, the terms for distribution can vary greatly and be open to interpretation. If the distribution provisions of a trust become too ambiguous or confusing, a trustee should consult with an attorney to help interpret the term(s) in question.
117. What is the role of the trustee?
Answer: The trustee performs a critical role in trust administration. In accepting the position, the trustee accepts the following responsibilities and assumes control of the following trust assets:
Reviews, understands and commits to give full consideration to duties and terms of the trust;
Familiarizes him or herself of special requirements and relationships of beneficiaries in order to meet the special needs of the beneficiaries and of trust;
Reviews assets to determine if they are appropriate for both short and long term needs of beneficiaries;
Employs professional help to administer the trust, if necessary;
Establishes a tax identification number, a bank account, the books of account, and any bonds for the trust;
Reviews all leases and contracts relating to trust assets;
Determines the income tax basis and holding period of each asset in accordance to the trust provisions and the investment plan;
Provides for appropriate safeguards and supervision for the trust; and
Arranges for court formalities through the trust’s attorney, if necessary.
118. If I have a living trust, do I still need a will?
Answer: Yes. Your will affects any assets that are titled in your name at your death and are not in your living trust or some other form of ownership with a right of survivorship. If you have a living trust, your will would typically contain a pour over provision. Such a provision simply states that all such assets should be transferred to the trustee of your living trust after your death.
119. What is the difference between a will and a revocable living trust?
Answer: Both wills and revocable living trusts:
Name beneficiaries for your property;
Leave property to young children; and
Wills, however, accomplish the following:
Name guardians for children;
Name property managers for children’s property;
Instruct how taxes and debts should be paid;
Requires a witness; and
Simpler to make.
Trusts, on the other hand, accomplish the following:
Keep privacy after death;
Requires a notary public;
Requires transfer of property;
Protect the estate from court challenges; and
Avoid a conservatorship.
120. Are there other ways of leaving property?
Answer: Certain assets can be transferred directly to the named beneficiaries as other ways of leaving property. These beneficiary designations should be well coordinated with the rest of your estate planning, as they can have significant tax benefits, and consequences for your beneficiaries. Such assets include:
121. What happens if I become unable to care for myself?
Answer: There are several ways to make arrangements ahead of time to control what will happen to the care of you and your estate if you become unable to care for yourself through setting up power of attorneys. In the event that you have not made prior arrangements, a court could appoint a court-supervised conservator to manage your care and your affairs. Conservatorships can be more expensive, inconvenient, and time-consuming than the appointment of attorneys-in-fact under powers of attorney. You should still record your selection of conservators in case a conservatorship is necessary, even if you appoint attorneys-in-fact.
A power of attorney is a written legal document that gives another person the right and authority to act on your behalf. Unless you have a durable power of attorney, that authority will end if you become incapacitated, and can be limited to special circumstances as well. In the case of your becoming incapacitated, your legal agent or attorney-in-fact could manage your affairs for you. In contrast, a springing power of attorney would only be effective at a specified future date or event, for example if and when you become incapacitated. Be certain that you understand all the terms before signing a power of attorney, and that your agent is competent and trustworthy for handling your assets and life savings. If you have set up a living trust, you might also set up a durable power of attorney for dealing with property management, limited financial transactions, and assets that may not have been transferred to your living trust.
Another option is to authorize your agent to pay your bills, which is often safer than adding someone else’s name to your bank account, or to authorize your agent to manage almost all of your affairs. Your agent cannot take anything of yours as a “gift” without your specific written authorization, and these powers of attorney will expire upon your death.
You can also designate someone to make health care decisions for you if you become unable to do so for yourself with an advance health care directive. The health care directive is legal document that not only names your health care agent but also contain your wishes with respect to health care issues such as life-sustaining treatment, and arrangements for after your death such the disposition of remains and your funeral. Copies of the directive should be given to your health care agent, alternate agent, doctor, health plan representatives, family, and taken with you if you are admitted to a hospital or nursing home. Provided that you are still competent, you can revoke the directive at any time.
122. Who should help me with my estate planning documents?
Answer: You can do your own estate planning with documents or books from a stationery store, bookstore, or the State Bar, and you should review these forms yourself and ask for professional help if you have any questions.
Only a qualified lawyer should prepare wills and trusts. Other professionals and business representatives may become involved in your estate planning as it regards their respective area of expertise, such as certified public accountants, life insurance salespersons, bank trust officers, financial planners, personnel managers and pension consultants, but legal documents and advice for your estate planning should be sought from qualified professionals only, many of whom must be licensed by the state.
In seeking professional help, ascertain whether an advisor might have a financial incentive, like an annuity or life insurance policy, that could result in biased advice. Beware of promoters or others posing as providers of estate or trust planning services who sell questionable financial products and ultimately obtain your private financial information for their own gain.
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Probate Administration & Litigation Frequently Asked Questions
123. What is probate?
124. When can a will be contested?
Answer: There are a number of circumstances under which an individual may choose to contest a will:
If the person who signed the will did not possess “testamentary capacity” i.e. the mental capacity to understand the process and purpose of executing a will
125. What type of assets are typically non-probate assets?
Answer: Non-probate assets can be transferred without oversight by the probate court. Some examples of non-probate assets are proceeds from life insurance policies, an IRA account, a 401(k) account or any other taxed deferred retirement plan account with a named beneficiary.
126. Can an executor or trustee be removed?
Answer: Situations in which an executor or trustee can be removed include:
127. Isn’t estate planning just for the rich? If my estate is not worth much, do I still need an estate plan?
Answer: Estate planning is not just about money and assets. It is about making decisions that will protect you and your family in the event of many “what if” situations. Even if you believe your estate would be negative after all debts are added up, a properly prepared estate can provide valuable protections. They also provide a way to notify your family of your wishes and take away some of the stress of making difficult decisions on your behalf.
128. What is the executor’s job?
Answer: An executor manages the assets of your estate. In the Will, you name a primary and secondary executor. To qualify as an executor in California, the individual must be a resident of the state, 18 years old, competent, not a convicted felon and be able to assume the responsibilities of the role. If the named executor is not a resident of California then they may hire an agent who is located in the state to handle their responsibilities. The executor has many responsibilities to the estate, including but not limited to the following: filing a petition to probate the Will, locating and managing the assets of the estate, fining tax returns and paying any state and federal taxes, paying any existing medical bills and other debts (burial?) of the estate, distributing any specific bequests, and distributing the remainder of the estate to beneficiaries.
129. What is the guardian’s job?
Answer: A guardian is an adult who is given the care of a minor child. A primary and secondary guardian may be named in the Will and instructions for the guardian’s care of the minor child and details regarding access to any testamentary trust for minor children may be included. You may also wish to create co-guardians. In general, a guardian has the authority to make decisions regarding the following:
The health, care and well-being of the child;
Where the child will live based on the needs and resources available;
Arranging for the child’s education;
Caring for the property of the child in a reasonable manner;
Providing consent for medical care, dental care, legal matters, and any other services that the child as a minor is unable to handle on their own; and
Engaging in any legal protection that might be needed for the child.
130. What is the trustee’s job?
Answer: In the case of a Testamentary Trust for Minor Children, the trustee is an individual that you have named in the Will to administer this trust. The trustee has legal title to the property in the trust and manages it for the benefit of the minor children. For example, the trustee will be responsible for providing funds to the guardian for the care of the minor child. You may want to name the same individual as both the trustee and guardian. Some Testators choose to make an entity the trustee or to have co-trustees.
131. Can I purchase estate planning for my grown children?
Answer: No. When an attorney provides legal guidance to a client and creates an estate plan for that individual, an attorney/client relationship is formed. That relationship must be between the attorney and your adult child because it is a privileged relationship. The adult child must contact the attorney to initiate and proceed in obtaining legal services.
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Trusts & Trust Administration Frequently Asked Questions
132. What is a trust?
Answer: A trust is a legal arrangement that involves three parties: trustmaker, trustee and beneficiary. Under a trust, the trustmaker will transfer ownership of certain assets to the trustee, who will manage the assets for the benefit of the beneficiary. Trusts are traditionally used for minimizing estate taxes and can offer many additional benefits as part of an estate plan. Trusts can also help avoid the time and court fees associated with probate, or the legal process of settling an estate after the validity of a person’s will is proven upon death.
133. What is the difference between a trust and a will?
Answer: While trusts and wills share some characteristics, each serve several different purposes. Setting up a trust does not replace a will, but doing so can help expedite and reduce additional costs or confusion associated with the distribution of your assets upon death. Information on the similarities and differences between trusts and wills is listed below.
Both wills and trusts:
Are revisable as circumstances change
Wills accomplish the following:
Trusts accomplish the following:
134. What kinds of trusts are available?
Answer: There are two basic types of trusts: Living Trusts and Testamentary Trusts.
A Living Trust puts your assets into the trust, administers them for your benefit during your lifetime and transfers them to your beneficiaries when you die. This transfer occurs all without the need for court involvement. Additionally, a living trust allows you to name yourself as a trustee and maintain control of your assets during your lifetime. In your trust agreement, you will also name a successor trustee (a person or institution) who will take over as the trustee and manage the trust’s assets if you should ever become unable to do so. Your successor trustee would also take over the management and distribution of your assets when you die.
A Testamentary Trust is based on instructions in your will; such trusts are not established until after the probate process. A testamentary trust will outline all of your wishes and specifications regarding the distribution of your assets, but the trust will not become active until after death (when the will goes into effect). Testamentary trusts do not address the management of your assets during your lifetime. They can, however, provide your children and others who would need someone to manage their assets after your death. A testamentary trust also transfers control and ownership of your assets to the trust itself and typically cannot be changed or amended without the beneficiary’s consent.
135. What is the difference between a revocable and irrevocable trust?
Answer: A revocable trust allows an individual to maintain control of their assets and “revoke” or change the terms of the trust at any time, as their wishes and circumstances change. Appreciated assets listed in a revocable trust remain under ownership of the trustmaker and therefore remain part of the trustmaker’s taxable estate.
An irrevocable trust is a trust that cannot be amended once they have been creative. Irrevocable trusts transfer control and ownership of the assets from the individual to the trust itself, where changes typically cannot be made without the beneficiary’s consent. Testamentary trusts must be irrevocable, since they become active after the individual’s death. Appreciated assets in an irrevocable trust are exempt from estate taxes.
136. Do I need a living trust?
Answer: Not everyone needs a living trust. If you do not have significant assets and a simple estate plan, or if you are a young married couple without children and significant assets intending to leave your assets to each other when one of you dies, a living trust is not necessary. If you want court supervision over the administration of your estate, you should not have a living trust. People who should have a living trust are those with significant assets, especially in real estate.
If you do have significant assets, a trust can help ensure that your assets will be managed according to your wishes even if you become unable to manage them yourself. In setting up your living trust, you may serve as its trustee initially or you may choose someone else to do so. You can name a trustee to take over the trust’s management for your benefit if you ever become unable or unwilling to manage it yourself. And at your death, the trustee would then gather your assets, pay any debts, claims and taxes, and distribute your assets according to your instructions, potentially saving your beneficiaries time and money.
A living trust is helpful at your death because it can save your beneficiaries time and money, as it is handled by the trustee under your directions without the involvement of the court. Furthermore, since the trust is not supervised by the probate court, your assets and their values, and your beneficiaries’ identities, will not be made a public record. If you don’t have a living trust, your estate would be subject to probate, which is a process supervised by the court and can cost more money and time than a living trust.
137. How could a living trust be helpful if I become incapacitated?
Answer: A living trust ensures that your selected successor trustee will manage the trust’s assets for you in the event that you become incapacitated. If your assets were not in a living trust, someone else would manage them according to whether your assets were separate or community property.
Assets acquired by you or your spouse or domestic partner while married or in the partnership and living in California are community property. Your spouse or domestic partner, if competent, could manage your community property. Earned income is not treated as community property for tax purposes in domestic partnerships.
Assets you owned prior to your marriage or registration of your partnership or received as a gift or inheritance during the marriage or partnership are separate property. An agent or attorney-in-fact under a power of attorney would manage your separate property if you become incapacitated, but if you do not have planning in place for such an agent, your separate property would be managed through a conservatorship under the supervision of a probate court, which are public and may be costly and less flexible than a living trust.
138. How are my assets put into my living trust?
Answer: Your assets are put into your living trust by funding the trust, meaning that your assets must be transferred to the trustee of your living trust after your trust has been signed. Your real estate with the prepared deeds should be transferred, as well as the property you own in another state, depending on that state’s law. Items to be transferred also include your bank accounts, stock and bond accounts or certificates, but a lawyer can also help you transfer other assets like changing the beneficiary designations on life insurance to the trust. As for a qualified plan like a 401(k) or an IRA, major income tax implications arise and the counsel of a qualified professional is advised. Furthermore, a living trust can hold both separate and community property, so that married couples and registered domestic partners can manage and distribute their assets through one document.
139. Will a living trust help reduce estate taxes?
Answer: A living trust does not help to reduce estate taxes any more than will can, since both documents may contain provisions that can postpone, reduce, or eliminate estate taxes to the same effect. For appreciated assets to be exempt from estate taxes, they must be put into an irrevocable trust.
140. Will I have to file an income tax return for my living trust?
Answer: You do not have to file an income tax return for your living trust during your lifetime, but after you die, the income taxation of the living trust is similar to a probate. Your Social Security number is the taxpayer identification number for accounts held in the trust, and you may report all income and deductions related to the trust’s assets on your individual income tax returns.
141. What is trust administration?
Answer: Trust administration is the process by which a trust is carried out following the death of the settlor, or creator of the trust, to comply with the terms of the trust. A trust is often established when the settlor wants to avoid a long and expensive process to settle his or her affairs. A properly funded living trust should avoid probate and the specific terms of the living trust should still be easily carried out. Absent problems with the trust, the administration of a trust will typically avoid a court probate proceeding, thus saving time and money.
A trust administration can also ensure that assets of the deceased spouse will be set aside for his or her intended beneficiaries. If there is no trust administration, the surviving spouse may be able to benefit individuals that the deceased spouse did not intend to benefit. Although probate may be avoided, administration of a trust is still required. In fact, a typical trust must be processed in much the same way a probate estate is processed, although it will typically avoid court involvement.
142. What are the steps of trust administration?
Answer: Inventory of assets of the trust- First, the trustee is to gather and inventory all assets of the trust, including whether there were assets outside the trust which were supposed to be inside the trust. After all the assets are accounted for, valuations must be assigned to those assets. Valuations are used to determine whether a federal estate tax return will need to be filed. Tax issues regarding the estate are varied and complex and therefore, it is best to consult with an experienced attorney in this matter.
Debts and expenses paid- All final debts and expenses of the settlor must be paid before the trust is distributed to the beneficiaries. In some cases, creditors will require formal notice. Again, complications or questions may arise in giving notice to creditors so it is important that the trustee fully understands the terms for giving notice.
Notice to beneficiaries- Next, the trustee must contact the beneficiaries of the trust and with the settlor’s heirs at law. California law requires that the beneficiaries and heirs receive notice of the trust. Additionally, all beneficiaries are entitled to be kept informed about the administration process. The trustee must also provide annual accountings to the beneficiaries of the financial activity of the trust, unless the trust specifically provides otherwise.
Distribution of assets- The trustee then must distribute the assets of the trust according to the terms of the trust. The trust may instruct that the trustee transfer the assets immediately to the named beneficiaries or that the assets be held for a period of time. This period of time can include up to the beneficiary’s entire lifetime for that beneficiary’s use or for a beneficiary’s special needs. Since the distribution provisions are created by the individual settlor of the trust, the terms for distribution can vary greatly and be open to interpretation. If the distribution provisions of a trust become too ambiguous or confusing, a trustee should consult with an attorney to help interpret the term(s) in question.
143. What is the role of the trustee?
144. If I have a living trust, do I still need a will?
145. Who should help me draft my trust?
Answer: You should seek a qualified estate planning attorney to assist you in drafting your trust. Although many parties involved in your estate planning, including your business representation, it is imperative to seek a qualified lawyer to do so, as a living trust is a legal document.
*Some of the questions and answers have been selected from articles published by the State Bar of California. To read the entire article, please visit their Pamphlets page.
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146. What is a will?
147. Are there various kinds of wills?
148. What if I do not have a will?
Answer: If you do not have a will, your remaining assets will be distributed first to your spouse; if you are unmarried and not registered in a domestic relationship, then these assets will go to your children, grandchildren, or other kin. Note that friends may not receive any of your estate if there is no will found. Thus, in cases where there are no living relatives found, the State of California automatically becomes the beneficiary.
149. I already have a will. What are my next steps?
Make a list of your assets and debts to assist your family and other relatives when you are no longer around to sort through your financial records. Set up an arrangement, or have the contact information for, a trusted attorney to make property-management decisions on your behalf if you are unable to do so. Work with someone who will manage your assets to the bests of your interests.
Make and circulate a list of your professional advisors. Providing the contact list of the professionals you work with will make it easier for your family members and professional advisors to communicate and work together, so that the tasks and overall process becomes more efficient and the correct people will be contacted.
Sign a durable power of attorney for asset management. The power of attorney document will contain the appointment of the attorney-in-fact, who is required to manage your property and assets only in your best interest on your behalf if you become unable to do so yourself.
Prepare an advance health care directive / durable power of attorney for health care. These are options to consider for when you are unable to make health care decisions for yourself. The directive is a document that names an attorney-in-fact to make health care decisions and arrangements after your death on your behalf.
150. What if my assets pass to a trust after my death?
Answer: Trusts created under a will are called testamentary trusts. Your assets can pass to a trust after your death as stipulated by a provision in your will. Testamentary trusts can be beneficiaries of life insurance policies and retirement plans. If you have a living trust, then your will is often referred to as a pour over will, which includes instructions to transfer all remaining assets that were not transferred to your living trust during your lifetime to the living trust when you die. Under the California Uniform Transfers to Minors Act, you can provide for transfers of small gifts to beneficiaries who are minors to a custodian.
151. Can I change or revoke my will?
Answer: Yes, you can change or revoke your will. A codicil is a legal document that is an amendment to your will, and it must be drafted and executed with the same procedure that applies to wills in order to change your will. Alternatively, you can establish a new will and thus revoke your old will. A new will should be established with the advice of a lawyer if you get married or divorced, or if you establish a registered domestic partnership or terminate one.
You should review your will every so often in case you do want to make alterations, and an updated will shall ensure your estate will be distributed according to your wishes upon your death. A review of your will is especially appropriate when there are any major changes in your family, such as births or deaths, when the value of your assets increases or decreases significantly, when you want to change the appointment of your proposed guardian or executor or testamentary trustee, and if you have moved into or out of a different state.
152. How are the provisions of a will carried out?
Answer: The provisions of a will are carried out through probate, a court-supervised process that begins when the executor files a petition in court after your death and seeks official appointment as executor. After starting the probate, the executor takes over your assets, pays your debts, and with court approval distributes the rest of your estate according to your will.
The advantage of probates is that the probate court has a relatively streamlined and well-regulated process for resolving disputes about the distribution of the estate. Also, having the probate court’s supervision of the executor’s management of your estate serves to safeguard the interests of your beneficiaries.
Keep in mind that probates are public, and thus your estate plan and the value of your assets will become a public record. A probate may be more expensive than going through a living trust because of lawyer’s fees and executor’s commissions, which are based on a statutory fee schedule. Additionally, a probate usually takes a longer time to administer than a living trust. You should go over these considerations with an estate planning lawyer when you decide if and how to proceed with your will. Alternatively, there are simpler processes for transferring assets to a spouse or a registered domestic partner, or for dealing with estates valued at under $100,000.
153. Who should know about my will?
Answer: Only you and your lawyer who wrote the will needs to know the content of your will. However, the executor of your will, and other close friends or relatives should be able to locate should the need arise. It is advised that you keep your original will in a safe place, such as a safe deposit box or a locked, fireproof box in your home or office.
154. How can a lawyer help?
Answer: Lawyers who are certified specialists are, by the standard set by the State Bar, certified in estate planning. Lawyers can also help with the preparing of the will, and aid your understanding of circumstances and of the complexities of the documentation and planning that goes into the will.
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155. What are the benefits of mediation?
Answer: Mediation settlement discussions are private and confidential in a comfortable and informal setting. In mediation, all aspects of your settlement discussions including concerns, statements, etc. are confidential. Mediation allows for a safe space for individuals to consider options and alternatives as well as reaching creative solutions without the fear that they may be used against you in court or elsewhere. Additionally, the process of mediation provides the following added benefits:
– The parties maintain control over their individual and family’s future
– Allows for focused and creative solutions and outcomes
– Less stressful and less animosity
-Court approved and enforceable without either party having to go to court
-More efficient and expeditious than going to court
156. What is the role of a mediator?
Answer: Mediation is process where a specially trianed neutral facilitator (the attorney mediator) helps the parties identify their conflict and unresolved issues and assists them in resolving their conflict and differences in a peaceful and creative way.
157. Does divorce mediation really work?
Answer: Divorce mediation does work effectively because each party is positioned to directly hear one another’s concerns, and with the assistance of the mediator, the parties are able to accommodate each other’s concerns without necessarily compromising their own interests.
158. Who should NOT mediate?
Answer: Parties should NOT mediate if the following are a concern:
– Concealment of Assets
– Unequal Bargaining Positions
– Emotional Intimidation
159. How long does mediation take?
Answer: Mediations can be concluded in one day or over a period of several weeks or months. The length of the mediation process depends on:
– Complexity of the matter and issues to be resolved
– Emotional state of the parties
– Availability of necessary information
– Amount of information to be gathered and/or analyzed
160. How much does mediation cost?
Answer: Most mediations involve an hourly per session fee. In certain cases, couples may be asked to provide a retainer for the process of mediation. The number of sessions required to gather information and negotiate an agreement will vary from couple to couple. Thus, the cost of mediation will also vary. Mediation, however, will be less costly than litigation and the adversarial process.
161. How do I choose between Mediation or Collaborative Law?
Answer: As long as the parties are motivated to save money, stay out of court and avoid the stress and cost of litigation and the adversarial process, mediation or collaborative process is an option. The parties must be willing to work openly and honestly to reach an amicable and satisfactory resolution without having to go to court. If both parties are committed to a non-adversarial process, then they should choose between Mediation or Collaborative Law based upon their each unique needs. Mediation involves one attorney mediator for both parties where the parties communicate directly to each other with the mediator present. Fees are associated with one mediator attorney.
In collaborative law, each party retains an attorney. Negotiations take place in 4-way meetings with both parties and their attorneys. Fees are incurred by each party for their respective attorney.
162. What is the difference between mediation and litigation?
Answer: Litigation is time consuming, emotionally draining, expensive and unpredictable. With litigation, you are never certain of an outcome until a judge or jury decides who is right and who is wrong. Mediation is becoming a more popular method to remedy some of the shortcomings of litigation. Mediation employs a neutral third party who does not judge the case but helps facilitate discussion, limit the issues, and put them in perspective to resolve the dispute. Mediation is less expensive, more confidential, and highly effective in resolving conflicts peacefully rather than litigious court battles. Mediation involves only one lawyer as a neutral mediator. The process is peaceful and amicable while keeping all information confidential. The parties communicate and brainstorm in order to resolve any disputes, including what is best for their children (if any). Ultimately the parties will decide how long the process will take until every issue is resolved. Litigation requires that each party retain a lawyer. The process is litigious and adversarial, where all information is submitted to court and becomes part of the public record. Lawyers and judges will make decisions for the parties and their children while judges, experts or custody evaluators decide what is best for children. Court proceedings, disputes and lengthy negotiations can take several years.
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