News from Law Office of Angela Barker LLC

Angela Barker & Associates, LLC
A Family Law, Wills & Trusts and Real Estate Newsletter	October 2008

In This Issue

Family Court Expands Access to All Victims of Domestic Violence

Do You Know the Difference Between Inheritance Taxes and Estate Taxes

Fixed-rate Mortgages Now the Way to Go!

Family Court Expands Access to all Victims of Domestic Violence

Until recently victims of domestic violence who are not or were never married to each other, or had a child in common could not seek Orders of Protection in New York's family courts. However that has now changed. New York State has recently expanded its definition of "member of the same family or household" to include individuals involved in an "intimate relationship" which includes, but is not limited, to whether the relationship is sexual in nature; the frequency of interaction between the persons; and the duration of the relationship. This recent change is a good thing. Now cohabiting and dating partners can seek the protection against violence in family court instead of having to go to criminal court. Family court is undoubtedly a less intimidating institution than criminal court.

	Dear Reader: With each passing day the economy seems to be worsening. Stress and anxiety about economic well- being often lead to family strife and discord. Already existing problems between spouses are magnified when there is a sudden decrease in household income. In addition you may feel the need to sacrifice long-term financial goals for the immediate need to maintain your current lifestyle in the face of reduced income. But before you run to court to file for a divorce, or start to meddle with your carefully drafted estate plan, step back and seek the advice of an experienced professional. It is important to make decisions that will affect you and your family's well- being in a careful, well-reasoned manner. At the Law Office of Angela Barker LLC, we are committed to help ease the transition through the various life stages: Whether it be a change in the family structure as a result of a death, marriage, divorce, or separation. We are there for you as you buy or sell your home, and we assist our clients in planning for their or their loved ones' golden years and help them pass their savings on to the next generation. People are our business. For the benefit of our clients and the communities we serve, we have developed this newsletter as a legal and consumer resource. Enjoy.

Do You Know the Difference Between Inheritance Taxes and Estate Taxes
	Many people use the terms inheritance tax and estate tax interchangeably . However inheritance and estate taxes are very different. The main difference between the inheritance tax and the estate tax lies with who is responsible for paying the taxes owed. Estate Taxes Estate taxes are the responsibility of the Executor or the Administrator of the estate. The federal government and state governments impose this tax according to established guidelines. Inheritance Tax There is no federal inheritance tax. Each state determines the inheritance tax rate for that state and some states do not have inheritance taxes. The person who "inherits" money or assets under the will is responsible for paying any inheritance taxes owed. The amount of tax the individual pays depends on her relationship with the deceased.. For example a sibling, spouse or child of the deceased will pay a lower inheritance tax rate than a more distant relative such as a cousin or an aunt. It is important that you understand the impact inheritance and estate taxes may have on the value of your estate when you are drafting your estate planning documents.
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Fixed-rate Mortgages Now the Way to Go!
	I was having lunch the other day near my office and a seemingly bright, young woman summed up the mortgage mess in one sentence. She turned to her friend and said "If people didn't buy what they could not afford we wouldn't be in this mess." That woman's explanation for the mortgage mess is a little simplistic at best but it does have a grain of truth. But many who purchased homes did not fully understand the consequences of their adjustable-rate mortgages. An adjustable-rate mortgage (ARM) is a mortgage loan "where the interest rate on the note is periodically adjusted." This mean that the monthly payments you make on the mortgage may change over time. Typically, as interest rates increase your monthly payments also increase but as interest rates decrease your payments will also decrease. In these uncertain economic times it is imperative that if you are a first time home buyer you obtain a fixed rate mortgage. A "fixed rate mortgage (FRM) is a mortgage loan where the interest rate on the note remains the same through the term of the loan." Your monthly payments will not change. This will give you added protection and security during these enconomic uncertain times.
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