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What is Probate?

Probate is the legal process that takes place after a person’s death, during which legal documents (such as wills and trusts) are reviewed and enforced. A person’s will generally must be validated by the court, after which the person’s assets are distributed to the heirs accordingly. If there is no will, then the probate court will decide how to distribute the assets, which may not be consistent with the deceased’s actual wishes. Continue reading...

How is a Will Implemented After my Death?

After a person’s death, their will is typically reviewed by probate court which will enforce the terms of the will and ensure the assets are distributed according to the wishes of the deceased. Any disputes or contest to the distribution of assets will likely be heard by probate court, and can be costly if dragged out over long stretches of time. What is the Difference Between a Will and a Trust? Do I Need a Will? Continue reading...

Do I Need a Will?

Yes, generally speaking any person that has assets and liabilities needs a will. In the absence of a will, a deceased person’s assets will be distributed by a court, which may not handle the assets as the deceased would have desired. Not having a will also subjects a person’s estate to legal disputes from heirs, creditors, and sometimes non-family members seeking to make a claim. The court costs to settling an estate without a will can be very high and taxing to the deceased’s immediate family and loved ones. Continue reading...

Should I Notarize my Will?

In general, a will must be signed in the presence of two witnesses, each of whom must also sign your will. Whether or not a notarized will is accepted by the court depends on the rules of the state in which you live. You should cross-reference the rules of your state and comply to them, or simply consult an estate planning attorney for the best approach. How is a Will Implemented After my Death? Do I Need Professional Help to Prepare a Will? What is Probate? Continue reading...

Can I Use Standard Online Wills?

While online will templates may be useful for those with straightforward estate plans, they lack customization and legal guidance. To avoid the risk of creating a contested or unenforceable will, individuals should only use templates from trusted sources and consult an estate planning attorney for complex estate plans, significant assets, or unusual circumstances. Ultimately, a well-crafted will provides peace of mind and security for loved ones, and individuals should take the time to make informed decisions when creating a will. Continue reading...

What is Pari-Passu?

“Pari-passu” is a Latin phrase meaning “equal footing,” typically in reference to treatment of creditors or beneficiaries when assets are distributed. Some examples of pari-passu in practice would be bankruptcy proceedings when credits are given ‘equal access’ to assets of the company, or in a probate hearing when assets are divided equally amongst beneficiaries. Continue reading...

Do I Need Professional Help to Prepare a Will?

Whether you need professional help depends on the size of your estate and the complexity of your wishes for how to distribute your assets. Generally speaking, however, it makes sense to hire legal help to create your last will and any related trusts, as often times the cost to doing so is less than the cost of probate court and duress to your heirs in settling the estate themselves. What is a Living Will? What is the Difference Between a Will and a Trust? How Much Does it Cost to Prepare a Will? Continue reading...

What is Bankruptcy Court?

Bankruptcy court is a special judicial proceeding which determines how a debtor can settle accounts and move on. Bankruptcy courts are always federal, and not state, courts. They were established in the Constitution and given structure by the Bankruptcy Reform Act of 1978. They give debtors a means of moving beyond debts that cannot be fully repaid. There are several kinds of bankruptcy filings (found here — ‘chapter 7-15’, some for individuals, some for businesses, some involving foreign entities or persons operating in the US. Some are for absolution and the dissolution of a business entity, and other filings are requests for partial debt forgiveness and reorganization of the entity. Continue reading...

What is a Profit?

In its simplest form, a profit is the revenue or income gained from an entity after all expenses/overhead is accounted for. In business, a company deals with a number of expenses - operating expenses (the cost of doing business), fixed costs (overhead), salaries and benefits, legal fees, and so on. If a company’s revenues exceed all of these costs combined, the company is considered profitable. A profit is also known as a company’s bottom line, net earnings, or net profit. Continue reading...

What are Profitability Ratios?

Profitability ratios are useful analytical tools to evaluate a company’s ability to generate profits relative to all costs and expenses. A company that has high profitability ratios relative to competitors/peers, or a company that has demonstrated to improve their profitability ratios over time, is generally viewed as a healthy and attractive company from an ownership perspective. Some examples of profitability ratios are profit margin, return on assets, and return on equity. Continue reading...

What is an Operating Profit?

Operating profit is a company’s profit from its business operations, and can be calculated by taking gross profits minus operating expenses. Operating profit is synonymous to operating income, and represents a company’s profitability from its core operations, which excludes earnings from other investments or interests and also does not factor the impact of taxes or interest. Continue reading...

What is Profit Margin?

Profit margin is a profitability ratio that measures, as a percentage, how much a company keeps per sale. Profit margin can be calculated by dividing net income by sales. A higher profit margin means a company keeps high percentage of each dollar sold as profit. For example, a 50% profit margin means that for every dollar earned, a company retains $0.50. It is often helpful for an analyst to look at how a company’s profit margins have changed over time, to measure whether it is becoming more efficient in the sales of goods. Continue reading...

What is Accounting Profit?

Profit is a term that is synonymous with earnings and net income, and it is basically what is left of revenues after expenses. All of these are basically computed the same way: gross revenue minus the cost of goods sold, business expenses, and taxes. Some variations on each of these will choose to look at the numbers before certain expenses, such as taxes. For example, “gross” accounting profit could be defined as revenue minus cost of goods sold, while “operating” profits would also subtract the costs of business expenses and operations, and “net” profits would also subtract taxes. Continue reading...

What is a Private Placement?

Investing in a private placement opportunity is done off-exchange, and usually involves a small number of investors who are either institutions or accredited private investors. There are many possibilities when it comes to the types of private placement investments that can be made, but the nature of the offering is that it is not public, it is made to a small number of institutional level or individual accredited investors (see Regulation D, Rule 505 and 506), and the offering is not registered with the SEC. Continue reading...

What is Private Equity?

In the world of finance, private equity is a relatively new industry whereby private companies finance other businesses through direct investment, often in exchange for equity in the company and in some cases, decision-making capabilities. Private equity companies generally use capital of the principals or of high net worth investors to strategically invest in growing companies that need growth capital or seed capital to expand operations. Continue reading...

Should I invest in private placements?

Different opportunities to invest in private placements may present themselves to wealthy individuals over time. Unless the opportunity comes from someone that you know and trust, and you have the ability to research the opportunity, it is probably something you should avoid. Private Placements are sometimes complex deals that cost people a lot of money. You should definitely have your guard up if one is pitched to you. In general, the company or partnership seeking the private placement will not have to register with the SEC or report their books accurately on a public record. Continue reading...

What is Net Operating Profit After Tax?

Net Operating Profit After Tax (NOPAT) is a way to measure profits that excludes the impact of debt financing (via tax benefits and costs). The easiest way to think about Net Operating Profit After Tax is as a company’s profit if it were unleveraged, i.e., if it had no debt. There are costs associated with debt but also tax benefits, so there’s some give and take. The reason an analyst might use NOPAT is to gain a more accurate look at the operating efficiency of a leveraged companies, since it excludes the tax savings many companies get because of existing debt. Continue reading...

What is a Money Purchase/Profit Sharing Plan?

Money Purchase plans and Profit Sharing plans are two types of Defined Contribution plans that can be used at a business, together if desired. Both of these are Defined Contribution plans, which means that only the terms of the contributions to the plan are defined in the plan document. This is different than Defined Benefit plans, which specifically define the benefit due to an employee at retirement, which is generally a monthly pension payment. If an employer wants to use both a Money Purchase plan and a Profit Sharing plan, it is possible, but since both of them are Defined Contribution plans, they will be limited in aggregate to the allowable defined contribution limits for employer contributions. Continue reading...

AI Robots: Instructions

With AI Robots, you can view bought and sold trades with potential profit and stop loss in real-time. Receive timely alerts with each trade. Here are the steps: Step 1. Review AI Robots' past performance for free. Step 2. Select an AI Robot you might be interested in based on their customization and statistics. Step 3. Subscribe and follow one AI Robot and get a monthly $60 credit to purchase other products.   Step 4. Subscribe and follow two or more AI Robots and get a monthly $120 credit to purchase other products.  Step 5. Sign up for 1-on-1 sessions or webcasts. Continue reading...