IS IT TIME YOU APPEALED YOUR REAL ESTATE TAXES?
This month many Michigan property owners will receive Notices of Property Tax Assesment from the Assessor. Real estate taxes are supposed to be linked to a property's value. There may be a big difference between what the Assessor says a property is worth and what the property might actually sell for.
Michigan real estate values have significantly declined. Assessors may attempt to appease taxpayers by not raising their taxes when Assessors should substantially reduce taxes. Such reductions decrease needed tax revenue and are unlikely to occur voluntarily. As a result, the number of taxpayers seeking property tax appeals has greatly increased. A record number of appeals will be filed this year.
The property tax appeal process is straightforward. Property owners should carefully review the Notices of Assessment and consider a valuation appeal if the property is worth less than twice the taxable value.
The Notices include the deadline for appearing before the local Board of Review which meets in mid-March. The Board of Review makes a determination by early June. Appeals from the Board of Review are made to the Michigan Tax Tribunal for commercial property by May 31st and residential or agricultural property by July 31st.
We have successfully represented a number of clients on tax appeals and work with local appraisers who are willing to assist in preparing valuations for the board of review and tax tribunal on a very cost effective basis.
As noted appraiser Bob Vertalka, MAI has commented - "Not only should you look at the "taxable value" but the "assessed value". If the assessed value is greater than twice the market value of the property, this will allow the assessor to keep increasing the value of your property in the future by the inflation rate until the property reaches the assessed value. Furthermore a new purchaser may be stunned by the taxes he or she may be required to pay if there were a transfer. Boards of review have taken a mistaken position in the past that "don't concern yourself with the assessed value" only to find the property owner damaged in the future. With falling property values, now may be the time to have both the taxable value and the assessed value properly set."
I expect the increased volume of appeals this year to require additional planning and scheduling. Feel free to contact me to discuss your property taxes.
We appreciate your business and referrals!
 Byron "Pat" Gallagher, Jr. 2408 Lake Lansing Road
Lansing, Michigan 48912
Direct Dial: 517-853-1515
Toll Free: 888-220-1273
Detroit: 313-963-4600
Fax: 517-853-1501
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| WHAT IS BANKRUPTCY?
Bankruptcy is a legal proceeding in which a person who cannot pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law.
What Can Bankruptcy Do for Me?
Bankruptcy may make it possible for you to:
- Eliminate the legal obligation to pay most or all of your debts. This called a "discharge" of debts. It is designed to give you a fresh financial start.
- Stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed payments. (Bankruptcy does not, however, automatically eliminate mortgages or other liens on your property without payment.)
- Prevent repossession of a car or other property, or force the creditor to return property even after it has been repossessed.
- Stop wage garnishment, debt collection harassment, and similar creditor actions to collect a debt.
- Restore or prevent termination of utility service.
- Allow you to challenge the claims of creditors who have committed fraud or who are otherwise trying to collect more than you really owe.
What Bankruptcy Cannot Do
Bankruptcy cannot, however, cure every financial problem. Nor is it the right step for every individual. In bankruptcy, it is usually not possible to:
- Eliminate certain rights of "secured" creditors. A "secured" creditor has taken a mortgage or other lien on property as collateral for the loan. Common examples are car loans and home mortgages. You can force secured creditors to take payments over time in the bankruptcy process and bankruptcy can eliminate your obligation to pay any additional money if your property is taken. Nevertheless, you generally cannot keep the collateral unless you continue to pay the debt.
- Discharge types of debts singled out by the bankruptcy law for special treatment, such as child support, alimony, and certain other debts related to divorce, some student loans, court restitution orders, fraud, criminal fines and some taxes.
- Protect cosigners on your debts. When a relative or friend has cosigned a loan, and the consumer discharges the loan in bankruptcy, the cosigner may still have to repay all or part of the loan.
- Discharge debts that arise after bankruptcy has been filed.
What Different Types of Bankruptcy Cases Should I Consider?
There are four types of bankruptcy cases provided under the law:
- Chapter 7 is known as "straight" bankruptcy or liquidation." It requires a debtor to give up property that exceeds certain limits called "exemptions", so the property can be sold to pay creditors.
- Chapter 11, known as "reorganization", is used by businesses and a few individual debtors whose debts are very large.
- Chapter 12 is reserved for family farmers.
- Chapter 13 is called "debt adjustment". It requires a debtor to file a plan to pay debts (or parts of debts) from current income.
Most people filing bankruptcy will want to file under either chapter 7 or chapter 13. Either type of case may be filed individually or by a married couple filing jointly.
What Will Happen To My Home and Car if I File Bankruptcy?
In most cases you will not lose your home or car during your bankruptcy case as long as your equity in the property is fully exempt.
However, some of your creditors may have a "security interest" in your home, automobile or other personal property. This means that you gave that creditor a mortgage on the home or put your other property up as collateral for the debt. Bankruptcy does not make these security interests go away. If you don't make your payments on that debt, the creditor may be able to take and sell the home or the property, during or after the bankruptcy case.
There are several ways that you can keep collateral or mortgaged property after you file bankruptcy. You can agree to keep making your payments on the debt until it is paid in full. Or you can pay the creditor the amount that the property you want to keep is worth. In some cases involving fraud or other improper conduct by the creditor, you may be able to challenge the debt.
Can I Own Anything After Bankruptcy?
Yes! Many people believe they cannot own anything for a period of time after filing for bankruptcy. This is not true. You can keep your exempt property and anything you obtain after the bankruptcy is filed. However, if you receive an inheritance, a property settlement, or life insurance benefits within 180 days after filing for bankruptcy, that money or property may have to be paid to your creditors if the property or money is not exempt.
Will Bankruptcy Eliminate Out All My Debts?
Yes, with some exceptions.
Bankruptcy will NOT normally elminate:
- money owed for child support or alimony fines, and some taxes;
- debts not listed on your bankruptcy petition;
- loans you got by knowingly giving false information to a creditor, who reasonably relied on it in making you the loan;
- debts resulting from "willful and malicious " harm;
- student loans owed to a school or government body, except if: the loan first became due more than 7 years before the bankruptcy was filed or the court decides that payment would be an undue hardship;
- mortgages and other liens which are not paid in the bankruptcy case (but bankruptcy will wipe out your obligation to pay any additional money if the property is sold by the creditor).
Please feel free to email Jennifer M. Endl at jme@thegallagherlawfirm.com with any questions relating to bankruptcy. |
How Often Should I Review My Estate Planning Documents?
Although there is no exact answer, you should review your estate plan periodically to see if it requires updating. The following 10 simple questions have been designed to assist you in determining whether its time for an estate plan review.
Since your estate plan was last reviewed.If you answer "yes" to any of these questions, you should strongly consider a review of your estate plan to maximize its effectiveness:
1. Are you five years older?
2. Have you married, divorced, separated or been widowed?
3. Have you had additional children?
4. Have you become a grandparent?
5. Have you received an inheritance or likely to receive one soon?
6. Do you anticipate any creditor problems involving yourself, your spouse, or children?
7. Do you anticipate anyone challenging your estate plan?
The documents making up your estate plan. If you answer "no" to any of these questions, consider a review of your estate plan and your intentions:
8. If you have a living trust, have all of your assets been transferred or titled to the trust?
9. Do you have a healthcare power of attorney that expresses your wishes regarding the use of life sustaining treatment?
10. Do you have a durable power of attorney to be used in case of your incapacity?
This simple 10 question quiz has been designed to assist you in determining whether your estate plan needs a review. Not all estate plans consist of the same planning techniques, but an estate plan review with a qualified professional can provide peace of mind that your planning goals and objectives are in order. If you have not implemented your estate plan or have put off that much needed review, stop procrastinating and contact Craig Gerard at (517) 853-1510 or csg@thegallagherlawfirm.com today for a consultation to get your plan on track. |
Real Estate Title and Boundry Disputes
Title and boundary disputes involve disagreements about who has title to a piece of property and the amount of area the property covers. Title and boundary disputes are becoming less common as better records are kept and property lines are more clearly defined. However, title and boundary disputes still arise quite frequently as neighbors and lien-holders attempt to assert their property rights.
What does it mean to have "title" to real estate?
Having title to a piece of property is generally akin to owning the property. Title is typically transferred by conveying a deed. Every buyer, lessee, easement grantee, or mortgagee of real estate must determine that his or her grantor owns and is able to convey the degree of title expected.
What is "chain of title?"
Chain of title refers to the history of passing of title ownership to real property from the present owner back to the original owner. A record of title documents is typically maintained by the country register of deeds. Chains of title include notations of deeds, judgments of distribution from estates, certificates of death of a joint tenant, foreclosures, judgments of quiet title, and other recorded transfers of title to real property. Before purchasing property, the purchaser will usually hire a title companies or abstractors to search out the chain of title and provide a report so that a purchaser will be assured the title is clear of any claims.
What is title insurance?
In many real estate transactions, insurance companies issue title insurance based upon the chain of title to the property when it is transferred. Essentially title insurance is a guarantee of a thorough search of the public records of your deed to make sure no one else has a superior interest in the property. The title insurance company will defend your title if there is a "cloud" or another interest recorded on your title that they did not find.
What is a subdivision plat map?
Many people own subdivision parcels. In a subdivision, the initial developer created a map, called a plat map, dividing a larger parcel into roads and many small parcels. In order for plats to become legally valid, a local governing body, such as the township, must normally review the dedication of the plat and approve it. If a portion of the platted subdivision was dedicated for public use but was never developed or used for the intended purpose, adjoining property owners may seek to obtain that portion of the plat by filing an action to "vacate" in circuit court.
How do I find my property's boundary lines?
The property description in the deed includes the boundary lines of real property. In addition, a property owner may obtain a property survey to determine a property's boundaries. A surveyor draws a map that shows the property limits as well as where the house, garage, and other features, such as boundary fences or walls, driveways and barns and sheds, are located. It also reveals easements such as power poles, sewer manholes, catch basins, drainage ditches, telephone and cable TV boxes. This information is especially important when the homeowner or a neighbor undertakes to build any improvements.
What is an easement?
An easement is the right of another person to use your land for a specific reason. You can grant someone an easement through a document, like a deed. Easements affecting your land that have been expressly granted are recorded in the county recorder's office.
If your neighbor has been using a portion of land that is within your boundary lines for a certain period of time, he may have a "prescriptive" easement. Even though you did not expressly grant him the right to use your property, he may have developed a right if he used it long enough.
Do I Need a Real Estate Attorney for my Title or Boundary Line Dispute?
Title and boundaries are very essential issues, which may affect your rights as a property owner. Title and boundaries may come in many forms such as driveway disputes, fence dispute, or questions regarding chain of title or priority of liens. A real estate attorney can help you determine the extent of your rights to your property. Additionally, a real estate attorney can help you defend any attack on your boundary rights and your title to your property.
Please contact Peter C. Brown at 517-853-1518 or by email at pcb@thegallagherlawfirm.com to discuss your real estate or boundry concerns. | |
