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Is Your Business Ready For ICE?

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Last week, federal and local law enforcement raided a construction site in Tallahassee looking for immigrants who are in the country illegally. The video was stunning as law enforcement dressed in military-like uniforms pulled more than 100 workers off the job site.

Until recently, such raids of businesses were rare in Florida unless the business was blatantly abusing the immigration system. Yes, there have always been audits and other tools to ensure state and federal statutes were enforced, but large, public displays of immigration officials entering businesses are relatively new

As these types of raids increase, it’s vital that your business understands what is required of you under immigration laws and what will be needed to be done if immigration officials show up at your business unexpectedly.

Much like any crisis planning for your business, you hope you never have to use such a plan, but if you do, being prepared will make a difference in the worst-case scenario.

If your business is in Orlando, Altamonte Springs, Seminole County Winter Garden, Kissimmee or all of Central Florida, the attorneys at The Orlando Law Group can help put together the plans and policies to ensure your business stays within your legal rights, along with working to help lessen the impact if you are approached by immigration officials.

 Make sure you are handling the onboarding of employees correctly

The first step of any immigration issue is to ensure you have taken all the proper steps in onboarding any new employee.

For all businesses, this includes having any new employee fill out the form I-9, where the employee verifies they are a citizen of the United States or have the legal right to work in the United States.

The I-9 process is fairly simple, but it requires the employee to provide one or two forms of identification from a long list of documents. Indeed has a great list found here. These records must be kept on file, as they will be needed if your business is ever audited.

It is also our recommendation that any documentation with I-9 forms be kept in separate files from the rest of the employee files. This allows them to be easily accessed in case of an audit, but also does not risk other employee information being provided if not requested by a warrant.

In Florida, for many businesses, there is an additional step – using the federal E-Verify system. If your business has 25 or more employees, is a public entity or contracts with a public entity, you are required to use the system found here.

According to the Florida Department of Revenue, an employee is defined as an individual filling a permanent position who performs labor or services under the control or direction of an employer that has the power or right to control and direct the employee in the material details of how the work is to be performed in exchange for salary, wages, or other remuneration.

The term “employee” does not include:

  • An individual hired for casual labor that is to be performed entirely within a private residence
  • An independent contractor, as defined in federal laws or regulations, hired to perform a specified portion of labor or services

You can find more information on what the state of Florida requires on its E-Verify fact sheet.

ICE may still come to your door

 Despite all the efforts you make to follow the law, there is no guarantee that immigration enforcement won’t come to your business to check your immigration status. For instance, officials may have uncovered that some of the identification documents provided by the employee were fraudulent, causing a visit by law enforcement.

When that happens, it is important that you have developed a plan and have shared this plan with all employees. While it certainly will be scary – that’s part of the intention of the raid – you and your employees have rights provided under the Constitution.

There are several key terms to understand that you will need to know.

First, if they are asking to review your I-9 documentation and have the proper paperwork for an audit, you have three days to comply and provide your records to immigration. In that case, take the audit request and let them know you will deliver the records to them in the proper timeframe.

Second, if they are pushing to enter the building or your office, you must allow them to enter any area where the public is admitted.

For a restaurant, that means agents can enter the seating area or any other areas where guests are allowed to go. If you are in an office, that means they can come in the front lobby – if you allow anyone to come in that entrance.

They cannot enter private areas where the public is not allowed.

For instance, a hotel must allow immigration officials into the lobby, bar or hallways, but they do not have to be let into the laundry room or the maintenance shed or the executive offices.

One simple step to take in this regard is to put up “Employees Only” or “No Public Allowed” on those areas.

If immigration officials try to say they can enter a private area, it is important that employees stand firm, requesting to see the warrant that allows them to enter private areas.

Understand the difference between a judicial warrant and an administrative warrant

When dealing with immigration issues, not all warrants are equal, however, law enforcement has no legal obligation to clarify the types of warrants. If they say they have a warrant and you let them in, you have given them consent.

The warrant that most people think of when it comes to warrants is a judicial warrant. That’s when law enforcement appears before an impartial judge and presents evidence of a potential crime and the need for a warrant.

When law enforcement shows a judicial warrant, your business is required to let them go wherever they would like.

To make sure it is a judicial warrant, look for two things: A signature from a judge and a court listed on the top of the warrant.

If neither of those is on the paperwork, it is an administrative warrant, and the immigration officials are only allowed to be in public areas.

Administrative warrants are focused on the individual who is accused of being in the United States illegally. They are not always administered by a “neutral and detached” magistrate, as there are fifty-two immigration officer categories expressly authorized to issue arrest warrants for immigration violations, as well as “other duly authorized officers or employees of the Department of Homeland Security or the United States who are delegated the authority.”

Therefore, an administrative warrant does not allow the same access to private areas. An administrative warrant is identifiable by being issued by an immigration officer/federal agency, and/or will be found on a form I-205 or I-200.

It is not as easy to get a judicial warrant as it is an administrative warrant, but law enforcement has no obligation to explain the difference to you.

That’s why the first step when any law enforcement, including immigration officials, comes to your business that you call your attorney, who can review any documents and help instruct you on your rights.

If the immigration officials ask questions or try to push an employee, it is important that the employees are trained to say they are not authorized to speak to law enforcement or immigration officials and nothing else.

It is also important to record with video any interaction with immigration officials. Stay back from the officials, let them know you are recording and do not interfere. This is part of the documentation process. And everything should be documented in this case.

Finally, you are under no obligation to help immigration officials. So, if they ask for John Doe employee, you are not required to get the employee or share that they are there if they are in a private area of the business.

Why interfere with law enforcement actions at all?

To be clear, under no circumstances should any employee block law enforcement. Hopefully, the agents will work with the employees and follow applicable rules, although there have been instances recently where law enforcement is not been cooperative.

If they refuse or are moving toward a target because of a triggering event, the employee needs to let them proceed and allow the attorney to look at any protection or future action.

Remember, any immigration enforcement actions could result in significant legal actions against your business. The construction company that was raided by ICE is now undergoing a federal investigation into its employment practices. And, if you don’t follow the law, resulting in a wrongful detention of one of your employees, you could be subject to a lawsuit.

The attorneys at The Orlando Law Group can help your business prepare for any business law or immigration law, including ICE raids in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

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How to File a Small Claims Court Case in Florida Without a Lawyer

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We’ve all been there.

Maybe it’s when you hired a handyman to repair your fence but left with only half the panels up.

Maybe it was when you paid for a new website, but the developer stopped returning calls.

Perhaps it was when someone backed into your parked car and then drove away.

It could have been when the apartment complex didn’t fix the air conditioner or when the TV broke, but the store refused to issue a refund.

In all those cases, and so many more, you deserve compensation, even if it is just getting your money back. While you always want to consult a lawyer as a first step, Florida has a clear pathway for you to avoid paying significant legal fees by handling the case by yourself.

If you believe you are owed less than $8,000, then you could easily try to recover that amount in small claims court.

While you can handle a small claims court case by yourself, the attorneys at The Orlando Law Group can help you with any questions you might have along the way.

What is eligible for small claims court

The key for small claims court is that you believe the amount owed to you is under $8,000, not including any court costs, attorneys’ fees or interest on the settlement. There is no minimum level either. You can sue for less than $100, although the court costs will probably be more than $100 in most small claims cases!

If the monetary amount is correct, traditional small claims court cases cover eight types of cases in Florida. According to the Florida Court System, those are:

  • Auto Negligence
  • Goods Sold
  • Work Done/Materials Furnished
  • Money Lent
  • Promissory Note
  • Return of Stolen Property from Pawnbroker
  • Return of Property from a Government Agency
  • Account Stated (collection of a bad debt)

In each of these cases, a statute of limitations may apply. If you believe your case is more than a couple of years old, let The Orlando Law Group check to make sure you can still file it.

The first steps of a case

As with any legal action, it is always best to try and settle the case without a lawsuit. Keep trying to reach the person or business who you believe should be compensating you and document every correspondence.

As part of that process, let them know that you will be filing a small claims case against the person or company and provide the date.

For instance, a simple email to the company saying this would be a good start:

“Dear [Name],
On [date], I paid you $600 to repair my fence, but the work was never completed. I request a full refund by [date, at least 7–14 days from the letter]. If not, I’ll pursue legal action in small claims court.”

At the end of the time you have given to make the payment, if there is no action, you should then file your case by submitting the required forms and paperwork.

Every county court system may be a little different, and it is important to file a claim in the county where the issue arose, so please check each county court. In Orange County, you can purchase a packet of all forms needed for just $2.

The primary form is the “Statement of Claim.” This form is relatively basic. In fact, other than name, address and phone number, there is one basic question in Orange County’s form is “The above named Plaintiff(s) sue(s) the above named Defendant(s) for: (Explain your claim here).”

With that form, you’ll need to go to the courthouse and file the needed paperwork and pay the associated costs for the small claim case.  In Orange County, it is based on the amount in the claim and range from $55 to $300.

Pre-trial conference and mediation

As with any court action, you have to let the opposing party know that you have sued them. Most people are familiar with this process from TV shows and movies, where someone has been “served.”

To serve your opposing party, contact the local sheriff’s office and they will find and serve the opposing party with the notice of a lawsuit. In Orange and Seminole counties, it costs just $40 to pay the sheriff’s office to perform this service.

Once they are served and have an opportunity to respond or countersue, the courts will hold a pre-trial conference that can include a mediation process between the two parties.

The hope is that when sitting in the courthouse, you will be able to work out a compromise or simply receive the total amount owed. The courts understand it is much better and cheaper if you can solve the issue without a trial.

The trial and your victory

If you were not able to come to a resolution during the pre-trial conference or mediation, the next step is a full trial. This is traditionally just in front of a judge for a small claims case, but you can request a jury trial if you would like. Just remember, a jury trial means you will need to convince more people that you deserve to win, not just the judge.

At the trial, it is critically important to be prepared. You need to have all documents and correspondence easily available. You need to make sure any witnesses are there and that you have talked to them about what the witness saw or heard.

And during the trial, you’ll need to remain calm and precise. Respond to questions from the judge, understanding the rules. While outbursts in court make good TV, they may hurt your case in small claims court.

After the trial, either that day or by mail, the judge will render his or her decision.

When you win your case, hopefully, collection will not be difficult. If there are any issues, it is highly recommended that you file a lien against the company or person you sued. File the lien with the comptroller or clerk of your county. You can also file for a garnishment of wages and refer the bill to a collection agency.

The good news with small claims cases is that there is a lot of help for you along the way. Of course, The Orlando Law Group can help, but many county courts have divisions to help. For instance, the Orange County Clerk of the Courts has a self-help center specifically for small claims court and other legal matters you can handle yourself.

The attorneys at The Orlando Law Group helps individuals and businesses on a wide range of matters in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly. 

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Tenant reading legal notice by email while moving into a new apartment in Florida

Can Florida Landlords Email Legal Notices? What You Need to Know

Can Florida landlords email legal notices? It’s a common question—and until recently, the answer was mostly no. Under current Florida law, notices like a 3-day notice to pay rent or a 7-day notice of noncompliance must be hand-delivered, mailed, or posted at the property. That means if a landlord sends a notice by text or email—even with the best intentions—it might not be legally valid.

But a new law—Florida House Bill 615—is set to change that. It creates Florida Statute 83.505, which allows certain legal notices to be delivered by email. Not text, not DMs—email only—and only if both parties agree in writing. Until July1st, legal notices must still be delivered the traditional way: either hand-delivered, mailed, or posted on the premises, as required under Florida Statute Chapter 83.

If you’re a landlord wondering how to modernize your lease—or a tenant curious about your rights—here’s what you need to know before July 1st rolls around.

What does Florida HB 615 actually change?

This new law creates Florida Statute 83.505, which allows email delivery of legal notices—but not all types of notices, and only with a mutual written agreement. Examples of notices that may be eligible for email delivery include:

  • Lease renewal or termination notices
  • Maintenance requests or notices to enter
  • 7-day notices for non-compliance (if allowed under interpretation)

However, notices involving court filings or formal evictions will likely still require physical delivery to remain valid under Florida law.

Is a written agreement required to send notices by email?

Yes. Both the landlord and tenant must sign a lease agreement or lease addendum that:

  • Specifies email as the method of communication
  • Lists the approved email addresses
  • Includes a clear statement of consent
  • Is signed and dated by all parties

This agreement can be revoked at any time by either party, at which point the landlord or tenant must return to the original statutory delivery methods.

Example clause for lease agreements:

“Tenant agrees to receive all non-emergency communications and legal notices via email at [email address] and confirms that this method is acceptable for official notice delivery under Florida Statutes. This agreement may be revoked by either party at any time in writing.”

Are Florida landlords still required to send written physical notices?

Possibly. Even with a signed agreement permitting email, many landlords and attorneys will continue to send both email and physical copies—especially for time-sensitive matters like rent nonpayment or lease termination. This “belt and suspenders” approach reduces legal risk until the courts establish clear precedent under the new law.

What happens if a landlord sends a notice by email without a written agreement?

That notice may be considered invalid. Without an enforceable written agreement, landlords must use hand delivery, mail, or posting. Relying solely on email—or especially text—could jeopardize eviction cases or other legal actions.

How will this law affect lease disputes and evictions in Florida?

The practical impact will depend on how courts interpret and apply the law in real-world cases. If a party fails to follow proper procedure, their notice could be ruled invalid, potentially delaying evictions or other legal processes. Until more case law develops, proceed cautiously and consult an attorney before relying on email alone.

What are the risks of relying on email alone?

Even if both parties sign an email agreement, there are still legal gray areas. Some risks include:

  • Email goes to spam or is accidentally deleted
  • Outdated or incorrect email address
  • Email server issues or delivery failures
  • Tenant denies receipt of the message

Because of these potential issues, many attorneys recommend dual delivery (both physical and email) for important notices like nonpayment or lease violations.

How does this affect lease disputes and evictions?

The full legal impact of Florida Statute 83.505 won’t be clear until it is tested in court. For now:

  • If an email is sent without a valid agreement, it could invalidate the notice
  • If a tenant doesn’t check their email regularly, it may lead to delayed responses
  • If either party revokes the agreement, they must return to physical delivery

When in doubt, err on the side of caution and document everything. Maintaining printed copies of emails, screenshots of delivery confirmation, or backup hand-delivered notices can protect both parties in disputes.

Is this law only for residential leases?

No. This statute applies to both residential and commercial tenancies in Florida. Commercial landlords and tenants may also benefit from using email for certain communications—again, only if they follow the proper procedures and sign a written agreement.

Legal Insight from Jarrod Etheridge

Jarrod Etheridge, a Florida attorney experienced in landlord-tenant law, advises that this new statute will streamline certain communications but should be used carefully. “This change gives more flexibility, but only with proper documentation. A clear, written agreement is key—otherwise, you’re right back to traditional delivery,” Etheridge notes.

Need help updating your lease or understanding Florida landlord-tenant law?

Whether you’re a landlord updating lease terms or a tenant navigating your rights, we’re here to help. Contact our office to speak with an attorney who understands the evolving Florida Statutes.

📞 Call us at (407) 512-4394 or

🖥️ Fill out our online contact form to schedule a consultation.

We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Altamonte Springs and Winter Garden to assist you.

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New Florida COA Laws Passed in Tallahassee: 2025 HOA/COA Updates

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In early April, we gave an update on some of the legislation that was on track to pass during the 2025 Legislative Session.

Usually, the Florida Legislature can cause major issues for associations, as our state lawmakers add new regulations and provisions on the management of homeowners’ and condominium associations.

While the session has been extended into June, all new legislation that does not involve the budget has either been passed or is dead until next session.

For associations, only one bill passed this year with a significant impact – HB 913.

This bill contained many provisions we discussed in our April blog post, but there were a few major changes with the final bill that will be sent to Governor Ron DeSantis for his signature.

Of course, he could veto the bill, but it provided some relief to condominium owners needing relief from the cost of milestone inspections and repairs without providing any tax dollars for financially-constrained associations.

If he signs the bill into law, all of this will take effect on July 1, 2025.

The attorneys at The Orlando Law Group can help associations with any changes that might come, ensuring your association remains in compliance with any new state statutes that might be enacted this year.

The Biggest Change of All

Sometimes, just one word can make all the difference in the world to people affected by legislation.

The word of the day? Habitable.

During the legislative process, bills are constantly amended or substituted with similar bills. After our article on the tentative condominium changes, a substitute bill was filed that included this line:

“A residential condominium association must have a structural integrity reserve study completed at least every 10 years after the condominium’s creation for each building on the condominium property that is three habitable stories or higher in height, as determined by the Florida Building Code.”

The only change to the statute in that line was adding the word “habitable.”

According to the Florida Building Code, habitable means: A space in a building for living, sleeping, eating or cooking. So with this change, any three-story condominium building where the first floor does not have living units will be exempt.

For instance, the first floor may be parking spaces or storage units. If that’s the case, and there are only two floors of habitable space above the first floor, a milestone inspection is not needed.

In addition, condominium units have been given more time to complete their milestone inspections, with the deadline moved to December 31, 2025 – a year later than previously required.

Both of these changes could help thousands of associations throughout the state.

What stayed in the bill?

In our previous article, we talked about several changes that were proposed and many of them made the final cut.

Perhaps the biggest change of those that are going to the governor is the ability for condominium associations to use lines of credit for structural reserves. Before, only special assessments were allowed to build a reserve to pay for repairs.

This provides tremendous relief, as many condo owners were being forced to sell to pay for special assessments required for reserves.

As for the rest of the bill here is a recap on what was discussed earlier:

  • Requirements for association managers in licensing, including a 10-year ban from the industry if a license is revoked for any reason.
  • Requirements to include the following in every contract between a manager and an association: The community association manager shall abide by all professional standards and record keeping requirements imposed pursuant to part VIII of chapter 468, Florida Statutes.
  • Requirements to have all public documents online within 30 days of them being finalized and to include the minutes from all board meetings of the last 12 months.
  • Approval of having a board meeting by videoconference or in person. However, no board member can attend an association meeting more than twice in a calendar year.
  • Requirements that those meetings must be recorded and retained as official records of the association.
  • Requirements for an alternate budget to be considered if a proposed budget’s assessments grow by 115 percent or more from year to year.
  • Requirements to create an online account with the state for each association, along with very specific requirements for that account.
  • Requirements for firms performing structural integrity studies to disclose prior to starting work that they intend to bid on the work suggested in the study.
  • Permission, without a vote of the board, to put association funds in “certificates of deposit or in depository accounts at a community bank, savings bank, commercial bank, savings and loan association, or credit union.”

What was taken out of the final bill?

A major element of the original bill was significant steps required for condominium associations for investments of funds outside of traditional bank accounts.

The proposed changes were:

  • Requiring a majority vote of all “voting interests” to allow other investments.
  • Creating an investment committee of at least two board members and two community members.
  • Adopting rules for investing funds with very specific caveats.
  • Requiring that the committee suggest investment advisors, with no connection to the board, the association or the management company, to the board to choose the advisor.
  • Investments cannot be in any funds or stocks in which the state is prohibited from investing.
  • Rules for the investment advisor, including reporting requirements and the ability to withdraw funds within 15 days.

Usually, language like this can often come back into future sessions, and much of this is best practice language with investments, so your association should look at implementing much of this before it becomes law.

The attorneys at The Orlando Law Group can help your association prepare for any new law as we represent more than 100 communities in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

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Florida HOA ARB Violation Fines: Statute of Limitations Explained

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If you’re part of a homeowners’ association (HOA) board or work with one, you’ve likely run into this question: How long do we have to enforce an Architectural Review Board (ARB) violation? What if a homeowner installed something years ago without approval, can we still issue a fine now?

We recently encountered this exact issue, where two HOA managers (let’s call them CMCA 1 and CMCA 2) disagreed about whether a homeowner could be fined for installing unapproved privacy screening several years ago. The violation wasn’t even noticed until years later!

So, who’s right? Let’s unpack it.

Is There a Time Limit for Enforcing ARB Violations?

Yes, and no. Here’s what you need to know…

Florida law does have a five-year statute of limitations that applies to legal action based on HOA covenants and restrictions. That’s found in Section 95.11(2)(b), Florida Statutes, which basically says that any lawsuit based on a written contract (like your HOA governing documents) must be filed within five years.

So, if your HOA wants to take someone to court to force them to take something down or comply with the rules? You have five years from the time the violation was discovered or should’ve been discovered.

But there’s a twist…

What About Fines? Are They Time-Barred?

Nope! The statute of limitations only applies to lawsuits, not to administrative actions like:

  • Issuing fines
  • Suspending common area privileges
  • Placing liens for unpaid amounts

These internal enforcement options are still on the table, even if the violation is older than five years, because you’re not filing a court action. You’re just enforcing your community rules through your own processes.

That means if a homeowner put up an unapproved structure years ago and you just discovered it, you can still fine them or suspend access to amenities, as long as you follow your governing documents and provide due process.

What Does This Mean for Your HOA?

  1. Don’t confuse lawsuits with fines. Just because you can’t take them to court doesn’t mean you can’t enforce the rules in other ways.
  2. Keep good records. Document when you discovered the violation, what steps you took, and all homeowner communications.
  3. Follow the process. Send proper notice, give the homeowner a chance to be heard, and keep things fair and transparent.

Final Thought

So yes, Florida HOAs can still fine for older ARB violations, even if they can’t go to court over them anymore. Fines, suspension of privileges, and liens are administrative tools—not legal actions—so they’re not bound by the five-year limit under the statute of limitations.

Still unsure what your association should do next? It’s always wise to talk to your HOA attorney before taking enforcement action, especially in borderline cases.

The attorneys at The Orlando Law Group have helped Homeowner Associations throughout Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

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Should You Consider a Home Equity Investment in Florida?

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A new kind of financing tool is growing in popularity, allowing homeowners to tap into the equity of their home without monthly payments or interest rates.

Instead, the home equity investment or home equity contract provides a homeowner with a payout that is paid back in 10 or 30 years, or if the home is sold.

There are no payments before then. You aren’t charged interest. Instead, you are required to pay an amount dependent on the appreciation or depreciation of the value of your house.

In a previous article, we discussed why homeowners should look at these with caution, as they could negatively impact retirement or more than they are due.

However, these new tools could be helpful for some people, particularly to prevent a foreclosure or the need for bankruptcy protection by providing cash to help reduce debts and get a homeowner back on their feet.

The attorneys at The Orlando Law Group can help look at all options of a home equity investment and help advise you on your short-term and long-term obligations, along with how it fits with your current estate planning.

What is a home equity contract?

To recap the previous article, the nuts and bolts of a home equity investment are relatively simple.

Let’s say the current value of a home is now $500,000, and the homeowner decides to tap into the equity of the home.

There are a few companies, backed by venture capital, that offer to pay the homeowner a percentage of the home’s current value, say 10 percent. On the $500,000 home, they would give the homeowner $50,000 for that new pool.

When the homeowner goes to sell their home, or when the term of the investment ends, the homeowner must pay back 20 percent of the value of the home at that time. What that number may be is not known until it is time to pay back the money.

The basis for the payback is entirely dependent on what the real estate market does in that specific location. If the value of your home increases, your payment increases. If the value of your home goes down, your payment will decrease.

In Florida, it is very rare to see home values decrease for an extended period. The average home value in the Orlando area in 2020 was just $269,000, and today, it is nearly $400,000.

Just an average three percent increase over 30 years could result in a payment of more than $350,000 in exchange for $50,000.

Compare that to a home equity line of credit at today’s interest rates. While a homeowner could have a $411 monthly payment on $50,000, the total paid over 30 years would only amount to around $150,000.

A home equity investment payback can require a substantial amount of money. At the end of the contract, you may be forced to sell your home if you do not have the amount needed to pay back the agreement.

Are there places where a home equity investment makes sense?

As with most investments, there are always risks and rewards. It really depends on what your goals are.

For instance, if you were thinking about financing a large home improvement, a home equity contract could be an option to avoid paying interest, but it will take a significant amount of discipline to make sure you are not at risk.

In that case, you could take the money and pay yourself a monthly payment to eventually repay the money. Of course, we would recommend saving the money first, but if you build the amount quickly, you could spend less than other financing options.

Again, in that circumstance, you are dependent on home values. If real estate really booms, you could be in trouble, but if it busts, it could mean you pay back less!

Bankruptcy and foreclosure defense as an option

One of the advantages of a home equity investment is that there is no credit check. If there is equity in the home, the homeowner will most likely be eligible for this program.

This means there may be cash available for a homeowner to restart monthly payments to the mortgage lender and possibly pay back any missed payments. This could allow a homeowner to show good faith to the mortgage holder to refinance or rework the loan.

Likewise, the home equity contract could be a way to pay off debt that could be pushing a homeowner to seek bankruptcy protection. Without a lot of debt facing the homeowner, bankruptcy protection may not be needed.

We still caution about using these instruments as a way to clear debt. The goal for using these should be to get back on your feet financially, and when the time is right, to sell the house to clear the debt.

A homeowner does not want to use it and then get back into the same predicament of overspending and then being forced to sell the house when retirement comes.

That is why anyone thinking about entering a home equity contract needs to work with their estate planning team to determine all the implications for their future.

The attorneys at The Orlando Law Group have helped clients throughout Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and Central Florida with their estate plans and can work with a team of advisors to ensure future finances are in place.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

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The Risks and Rewards of Home Equity Investments

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Imagine being able to tap into the equity of your home without any payments or interest.

It sounds too good to be true, right?

In today’s financial marketplace, there are options for just about everything, and a growing new form of financing called home equity investments or home equity contracts does just that.

With these contracts, a company provides the homeowner a payout that is paid back in 10 or 30 years or if the home is sold. There are no payments before then. You aren’t charged interest. Instead, you are required to pay an amount dependent on the appreciation or depreciation of the value of your house.

Much like anything in the financial realm, there are pluses and minuses to HEIs, but as estate planners, we’re reluctant to see our clients commit significant sums of money that will need to be paid right when retirement starts or years after.

The attorneys at The Orlando Law Group can help look at all options of a home equity investment and help advise you on your short-term and long-term obligations, along with how it fits with your current estate planning.

How Does This Work?

The nuts and bolts of a home equity investment are relatively simple.

Let’s say the current value of a home is now $500,000, and the homeowner decides to tap into the equity of the home to pay for a new pool. After all, like Clark Griswald found out in Christmas Vacation, the days of a company bonus paying for a pool are over.

Refinancing the home can be troublesome, especially if the homeowner’s credit is not stellar. Interest rates are high, and the homeowner really can’t afford an increase in their mortgage. Likewise, a home equity line of credit includes a new monthly payment, and interest rates are even higher, putting those outside the limits of the homeowner.

Paying with the credit from the pool company? Hopefully, you noticed the extremely high interest rates before signing up.

So, a home equity investment might work for that homeowner.

There are a few companies – backed by venture capital – that offer these types of payments. Those companies pay the homeowner a percentage of your current value, say 10 percent of your home. On the $500,000 home, they would give the homeowner $50,000 for that new pool.

When the homeowner goes to sell their home, or when the term of the investment ends, the homeowner must pay back 20 percent of the value of the home at that time.

Keep in mind, it is virtually impossible to know what that number may be until it’s due!

What could the payouts be for a home equity contract?

 The basis for the payback is entirely dependent on what the real estate market does in that specific location. If the value of your home increases, your payment increases. If the value of your home goes down, your payment will decrease.

However, in Florida, it is very rare to see home values decrease for an extended period of time. In fact, the average home value in the Orlando area in 2020 was just $269,000, and today, it is nearly $400,000.

Over a 10-year period, if home values increase by 10 percent a year, the homeowner could be required to pay back more than $300,000 with a 10-year term.

With a 30-year term, you could be facing a payment of over $3 million.

Of course, the odds of an annual 10 percent increase are not likely. But just an average 3 percent increase over 30 years could result in a payment of more than $350,000 in exchange for $50,000.

Compare that to a home equity line of credit at today’s interest rates. While a homeowner could have a $411 monthly payment on $50,000, the total paid over 30 years would only amount to around $150,000.

A home equity investment can be a substantial amount, so it’s important to be wary when signing up for a home equity investment.

Are these tools legitimate?

Yes, these tools are legitimate, however, they were facing increased scrutiny from the Consumer Financial Protection Bureau under President Biden.

At issue was whether they should be treated like a consumer financing option, similar to a mortgage or a car loan, or should they be treated like a financial investment, like securities or stocks.

Remember, when a homeowner signs a mortgage, it seems the paperwork is endless, including forms about discrimination, truth in lending and much more.

Currently, none of that applies to home equity investments.

We’re watching a few cases that might help provide guidance on these types of tools.

The government under the prior administration had provided an argument to one case that home equity contracts were a form of financing and should be treated as such.

You can read about that on an archived page found here.

Since taking office, the Trump Administration has taken down all warnings about these financial instruments from the CFPB’s website and has had its briefs in cases dealing with these instruments removed as well.

What happens if a homeowner can’t pay

For many people, this won’t be an issue. It is very rare for a home to depreciate, and often, people downsize when they retire. When those people sell their homes, the payment is included in the sale price.

If that $500,000 home increases in value 10 percent every year, at the end of 30 years, the home’s value will be over $6 million. Selling the home will easily cover the payout and still leave the homeowner with millions of dollars.

If that homeowner plans on staying in the home, that means a $3 million payment would have to come from somewhere else, which could be very difficult for many people.

At that point, if the homeowner could not pay, they would be forced to sell the home or have a foreclosure filed against them.

Neither of those options is great for an individual starting retirement.

That is why anyone thinking about entering into a home equity investment needs to work with their estate planning team to determine all the implications for their future.

The attorneys at The Orlando Law Group have helped clients throughout Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and Central Florida with their estate plans and can work with a team of advisors to ensure future finances are in place.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

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What to Watch in Tallahassee with Community Association Management

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We’re about halfway through the 2025 Legislative Session in Florida and, like most years, there are several bills that could change how community associations, like Homeowners and Condominium Associations, can operate.

This industry is one of the most highly regulated of any industry in Florida, mainly because of the continual conflict between associations and home and condo owners. The legislature is responsible for setting the table for any issues that might arise.

Last year, the number of changes that happened for Homeowners Associations in Florida was substantial and many of those changes are still being implemented.

This year, the changes to association management do not look to be as significant, although there are some bills we are looking at that cover the milestone inspection and reserve requirements, the ability for virtual meetings, investment policies and, perhaps, an Homeowners’ Association Ombudsman for the entire state.

Nothing is final until Governor Ron DeSantis signs the bills into law during the summer, but similarly, nothing is entirely off the table until May, when the legislative session ends. Also, just because something is in – or not in – a bill does not mean it will be the same version when it passes.

If you want to know the details, here is a great graphic on how a bill becomes a law that is much more complicated than Schoolhouse Rock.

The attorneys at The Orlando Law Group can help associations with any changes that might come, ensuring your association remains in compliance with any new state statutes that might be enacted this year.

 CS/SB 1742: Condominium and Cooperative Associations

The main bill to watch will be CS/SB 1742.Any bill in Tallahassee with a “CS” in front of it should be taken seriously and this bill is no different.

It is a comprehensive bill covering issues facing condominium associations and has the highest likelihood of passing as it is being sponsored by the entire Regulated Industries Committee and its chair, Senator Jennifer Bradley. Plus, it has already passed its first committee in the Senate unanimously.

Here are a few things that would change if its most recent version passes:

  • Requirements for association managers in licensing, including a 10-year ban from the industry if a license is revoked for any reason.
  • Requirements to include the following in every contract between a manager and an association: The community association manager shall abide by all professional standards and record keeping requirements imposed pursuant to part VIII of chapter 468, Florida Statutes.
  • Requirements to have all public documents online within 30 days of them being finalized and to include the minutes from all board meetings of the last 12 months.
  • Approval of having a board meeting by videoconference or in person. However, no board member can attend an association meeting more than twice in a calendar year.
  • Requirements that those meetings must be recorded and retained as official records of the association.
  • Requirements to receive consent before communicating with unit and homeowners via electronic methods.
  • Requirements for an alternate budget to be considered if a proposed budget’s assessments grow by 115 percent or more from year to year.
  • Requirements to create an online account with the state for each association, along with very specific requirements for that account.
  • Requirements for firms performing structural integrity studies to disclose prior to starting work that they intend to bid on the work suggested in the study.

New investment policies may be coming

If this bill passes, there could be significant new processes for managing association funds.

The good news is that an association is permitted, without a vote of the board, to put association funds in “certificates of deposit or in depository accounts at a community bank, savings bank, commercial bank, savings and loan association, or credit union.”

If you want to do something different for investing your reserve funds, there may be new steps for you to take. They include:

  • Requiring a majority vote of all “voting interests” to allow other investments.
  • Creating an investment committee of at least two board members and two community members.
  • Adopting rules for investing funds with very specific caveats.
  • Requiring the committee must suggest investment advisors – with no connection to the board, the association or the management company – to the board to choose the advisor.
  • Investments cannot be in any funds or stocks of which the state is prohibited from investing.
  • Rules for the investment advisor, including reporting requirements and the ability to withdraw funds within 15 days.

One new aspect of investing and managing association funds is allowing a line of credit for structure reserves. These reserves were causing significant issues with associations because of the significant cost of repairs.

If this law passes, associations will be able to secure a line of credit for these expenses instead of pushing special assessments for a reserve fund.

We’ll share other bills as we continue through the rest of the 2025 Legislative Session.

The attorneys at The Orlando Law Group can help your association prepare for any new law that is passed the legislative session as we represent more than 100 communities in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

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How to Help Your Community Avoid the Media Spotlight

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Nearly everyone has seen a broadcast of a reporter standing out front of a house where a heinous crime occurred or where a high-profile criminal lives. It is fairly standard for the media to congregate around the house. They want the video of the person accused of the crime leaving the house or of police in action around the house.

In most cases, the media will move on to the next story relatively quickly, leaving your neighborhood in peace, but other times, the media could stay at a house for a week or more. How long did the media stay in front of Casey Anthony and George Zimmerman’s houses? They were there for months.

As an association, it is imperative that you work to protect the residents of the community, and provide access to emergency vehicles and residents, but also understand that the reporters are trying to do their job too and are not there to cause an issue for you and your residents.

The attorneys at The Orlando Law Group can help associations put together a plan for when the media are interested in your community to ensure you stay within your legal rights, along with working to help lessen the impact when it happens.

Why would reporters visit a neighborhood?

Keep in mind, that nearly all media in any city have access to police radios. They are listening closely for any event that might be of interest to their viewers or readers. When they hear something of interest, they actively work to find as much information as possible about those involved.

Myriad events could trigger a reporter to enter your community.

Perhaps there was a murder at the house. Maybe the homeowner is an elected official caught with a prostitute. It is not rare for homeowners to be producing narcotics or growing marijuana in the garage. The resident could be the victim of a mass shooting away from the neighborhood.

While it sounds grim, no one wants to think that could happen to their neighborhood, it is important to be ready for when it happens, because, for nearly every community, something will happen eventually.

The communities that are prepared are the ones that will be able to move through the situation with minimal disruptions.

Can an association prevent the media from entering a community?

As is the case with so many questions pertaining to the law, the answer is that it depends.

If you operate a community without a gate, much of your community is public property, like the streets and sidewalks. In this situation, there is not much you can do to prevent news trucks from parking on the street, as long as they abide by the parking laws from the city or county.

Of course, if they decide to pull a truck into your community park, you can absolutely ask them to move and they will. If you feel they are breaking parking laws, you can contact local law enforcement to help alleviate the situation. Similarly, if they are preventing access to a part of a community, you can ask them to move to allow access and they will be required to do so.

If you manage a gated community, the answer is fairly simple. It is private property throughout the community, and you do not have to let a reporter past the gates.

However, the reporters will not leave the front of the community and will, instead, set up their trucks and live shots on the street and sidewalk – which is public property. Usually, they will aim their camera to the community entrance signage, again public property and not something you can prevent from happening.

Like with a non-gated community, media cannot block access for homeowners, and they can’t utilize community property without permission, but outside of that, you have very little control.

Help the reporters do their job with minimum intrusion

Like any business, it is important to have a crisis plan in place for the worst to happen.

This plan should have contacts for the community, which the media can reach out for assistance. This is generally the association management company and the association’s attorney. All other people in the organization need to ensure the media can reach out to them for assistance and not speak on behalf of the community.

Include a place where the media can park their trucks and a place where they can broadcast live shots. Remember, these could be late at night and early in the morning with bright lights, so try to find a place that could be used that would not interrupt neighbors.

Reporters truly appreciate organizations who are helpful and kind. They will usually comply with requests to move or to shine a light differently or avoid major disruptions.

That is not the case all the time, however.

When do you need legal help?

First of all, it is important to understand the laws about access for the public for your community. The reporters will know them and if you try to make up regulations, they will generally call your bluff.

Really, however, legal and law enforcement are only needed for rare circumstances where more than just a few reporters decide to camp out in a community. In those cases, you may need to have an attorney contact the news station or call law enforcement to the neighborhood.

The reporters have a right to be on public property, but they do not have a right to prohibit the right to quiet enjoyment of innocent neighbors. If it looks like reporters will be in a community with more than just one news cycle, it is important to engage your association attorney to provide advice and direction beyond the standard crisis plan.

Also, if there is damage caused by the news media to a resident’s or the community property, there may be legal avenues available to recoup payment to repair or replace damaged property.

The attorneys at The Orlando Law Group can help your association prepare for the worst case scenario as we represent more than 100 communities in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

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What to do When ICE Shows Up at Your Community

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We have all seen the headlines about immigration raids happening throughout the United States. The federal government is making a point to showcase these raids on news media and often include agents in full tactical gear going into a community unexpectedly with guns drawn.

Beyond the news reports, there has been a substantial increase in immigration arrests. According to the Department of Homeland Security, there has been a 627% increase in Immigration and Customs Enforcement (“ICE”) arrests in the first two months of 2025 compared to the entirety of 2024.

For nearly anyone, the thought of armed law enforcement coming toward them is a frightening thought. They are intimidating on purpose and will often push the limits to catch the people they are after.

For community association managers, it is important to stay calm and understand the rights of the community when dealing with any type of law enforcement, including those from Immigration and Customs Enforcement officers.

In a nutshell, the famous lyric in Grateful Dead’s Truckin’ applies. “If they got a warrant, I guess they’re gonna to come in.”

However, there are multiple steps to take before you let any law enforcement into a community, even if they have a warrant. As such, a community must have a plan to handle law enforcement needs – and an attorney must be called immediately

The attorneys at The Orlando Law Group can help associations put together a plan for law enforcement to ensure you stay within your legal rights, along with working to help lessen the impact when it happens.

Why Not Just Comply with Law Enforcement?

Nearly all our lives we’ve been taught to comply with law enforcement, however, as an association manager, you have the legal obligation to protect the privacy of your residents.

For instance, you can’t just turn over financial information or other personal information just because you were asked. You do not have to let law enforcement into your community’s private property arbitrarily.

The Fourth Amendment of the U.S. Constitution protects individuals from unreasonable searches and seizures, and those searches performed without a warrant are presumptively unreasonable. In Florida, Article I, Section 12 of the Florida State Constitution, mirrors this protection.

So, private property owned by an association is generally off-limits to ICE officers without a judicial warrant or consent.

What steps does a community take when ICE shows up

Again, the first step for community managers is to develop and institute a plan for law enforcement, and it should be followed regardless of if it is the FBI, ICE or the local sheriff.

For non-gated neighborhoods, there is nothing you can do to prevent ICE from coming into a neighborhood as the streets and sidewalks are public property. If ICE is looking to raid a house in a non-gated community, it is on the homeowner to ask for a warrant, not the community association.

For a gated community, a condominium or an apartment building, all of the common areas, including the roads and hallways, are private property and law enforcement must take very specific steps to enter.

In those cases, an association manager needs to reach out to the community’s attorney immediately. The attorney will know all legal rights and requirements. In addition, the attorney can contact the law enforcement agency to ensure the steps being requested by law enforcement on the scene are on official business.

At that point, it is time to ask law enforcement for identification and to see any warrants that have been issued.

Understand the difference between a judicial warrant and an administrative warrant

When dealing with immigration issues, not all warrants are equal, however, law enforcement has no legal obligation to clarify the types of warrants. If they say they have a warrant and you let them in, you have given them consent.

The warrant that most people think of when it comes to warrants is judicial warrants. That’s when law enforcement appears before an impartial judge and presents evidence of a potential crime and the need for a warrant.

When law enforcement shows a judicial warrant, that is enough to allow law enforcement onto private property in the community.

We still recommend sending a copy of the warrant to an attorney for verification. That is because immigration officials also have the ability to use an administrative warrant that does not have the same powers as a judicial warrant.

Administrative warrants are focused on the individual who is accused of being in the United States illegally. They are not always administered by a “neutral and detached” magistrate as there are fifty-two immigration officer categories expressly authorized to issue arrest warrants for immigration violations, as well as “other duly authorized officers or employees of the Department of Homeland Security or the United States who are delegated the authority.”

Therefore, an administrative warrant does not allow the same access to private areas. An administrative warrant is identifiable by being issued by an immigration officer/federal agency, and/or will be found on a form I-205 or I-200.

What about management company records?

Not all ICE actions will be against residents of a community. They could be targeting a vendor who is employing undocumented individuals. They also could be looking at the employees of the management company or just a fishing expedition to find potential immigrants.

The same rules apply here, with some extra protection. In these cases, ICE will issue a “Notice of Inspection” requesting all I-9 documents from employees. Associations will have three days to compile and provide the documentation.

For other records, it depends on a warrant and consultation with an attorney. Under no circumstance, should an association provide any confidential information about vendors or residents without a judicial warrant.

Why interfere with law enforcement actions at all?

To be clear, under no circumstances should any employee block law enforcement. Hopefully, the agents will work with the community association manager and follow applicable rules.

If they refuse or are moving toward a target because of a triggering event, the association manager needs to let them proceed and allow the attorney to look at any protections.

As stated before, an association has a legal and ethical responsibility to protect the confidential information of its residents and vendors. If you don’t follow the laws, your association could have some legal liability from the resident or vendor.

The attorneys at The Orlando Law Group can help your association prepare for any law enforcement action, including ICE raids as we represent more than 100 communities in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

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The Ins and Outs of Contracting

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We enter into contracts all the time for business and personal reasons. Whether it is a purchase of a ticket to an event or the purchase of a house, almost everything we purchase involves a contract.

Think about this.

How many times have you clicked to accept the “terms and conditions” of a purchase online? Pretty much every time you buy something on the internet, right? By clicking that you accept them, you are entering into a contract with the seller of that product or service.

There is an important reason why companies always ask you to approve the terms and conditions.

It doesn’t matter whether or not you are entering into a relationship with a customer, with a vendor or an independent contractor; contracts are a fact of business. Contracts serve as legally valid agreements that protect your interests.

The attorneys at The Orlando Law Group can help any business looking to create or review their contracts to make sure they are binding and cover all of the important topics needed for business contracts.

What Makes A Contract Great?

Generally, to be legally valid, most contracts must contain two elements:

  1. All parties must agree about an offer made by one party and accepted by the other.
  2. Something of value must be exchanged for something else of value. This can include goods, cash, services, or a pledge to exchange these items.

The point when two parties agree can be a little fuzzy.

For example, many businesses will put a standard contract template before an independent contractor and expect it to be signed without any discussion. At that point – and the law is clear on this – a legal contract exists only when one party makes an offer and the other accepts all terms of that offer.

In this example, the contractor is still free to rebut any of the points in the contract and make a counteroffer, until an agreement has been reached.

Offers are rarely accepted immediately and further discussions or amendments may be required. Unless the offer has a deadline for acceptance, it can remain open.

In addition to ensuring both parties agree on the terms of an offer, the second element that ensures a contract is legally valid is that both parties exchange something of value.  This is important since it differentiates a contract from being a one-sided statement or even a gift.

“Something of value” can be as simple as a promise to perform certain services by one party while the other party agrees to pay a fee for the work performed.

Most business transactions are based on this exchange of promises. However, the act of doing the work can also satisfy the exchange of value rule. For example, if you contract with a vendor to provide you X and Y, but you decide you need to add Z to the final deliverable, the vendor can create a binding contract by actually doing Z – something which you can’t object to if you change your mind.

Include an expiration date on any offer and counteroffer

It’s good practice to include an expiration date for any offer or counteroffer during contract negotiations to ensure you have time to maneuver should you wish to change the terms or revoke the offer before a certain date.

Offers that are subject to an expiration date – known as option agreements – are typically price-driven or allow the buyer to mull the decision without fear of losing out to a competing buyer.

It’s important to understand that a seller can place a fee on option agreements. For example, if you decide to give a buyer 30 days to think over a purchase, you can charge for that. This typically occurs when the product or service is of high value or when the seller pledges not to sell that product to another customer during that 30-day option period.

Likewise, a seller can’t revoke the offer until that 30-day period ends.

The Keys to Every Good Contract!

Business contracts are comprised of several key elements. These elements are included to make sure that all of the contents of the contract are legally binding.

The key business contract elements also help to prevent misunderstandings that could occur if they were omitted.

The key elements of a business contact are:

  • The parties. The contract must clearly and specifically identify the parties to the agreement. If one of the parties is a corporation or other business entity, that must be stated. The roles of the parties must also be specified, indicating who is the seller and who is the buyer. One party is usually the business that is paying for a product or service. An owner or manager typically includes her name in the payee spot. The other party is the service company or supplier. Each party must be giving something of value in return for receiving something of value, which is legally known as mutual consideration.
  • The agreement. Legally called the consideration, the agreement could be only a sentence or two in length. It includes a general statement of what the service or product provider is expected to do for the buyer. The agreement also indicates whether other parties are expected to complete part of the work.
  • More detailed information about the deal is included in the terms section of the business contract. This section spells out exactly what services or products are expected from the company doing the work. The terms section also includes the price, details of the payment, the length of the contract and when the services or products will be delivered. Some business contracts also include special terms, such as whether the contract can be canceled for any particular reason. For example, contracts that violate public policy or are not signed voluntarily are voidable, according to “Reference for Business” online. Special terms of a business contract also can indicate whether the buying party may transfer the contract to someone else.
  • The date.The date usually appears in at least two areas: within the contract where both parties entered their names or business names and next to each party’s signatures. A date also might appear at the top of the contract, indicating when the contract was created. Businesses or lawyers who create business contracts usually include the date the transaction takes place at the top of the contract.
  • The business contract must be signed by both parties. This indicates that the buyer accepts the payment conditions, and the seller agrees to complete the work. The parties must document their consent to the terms and clauses of the contract by means of a signature. In the case of a business entity, this often requires the placement of the entity’s official seal on the contract. This is all referred to legally as the contract execution. Sometimes the contract execution will also be witnessed as indicated by the seal of a third-party notary.

Have You Developed a Form Contract?

A lot of times, people use form contracts, which have the language and terms already set. Parties usually do not negotiate when using form contracts.

Landlord/tenant agreements are a common example of when form contracts are used.

You can also use a form contract as a model when drafting a more customized contract. Pay attention to the details, define any words that could be misconstrued, or any terms that are ambiguous, be specific.

When drafting a contract, clarifying the terms and duties should be the goal. Make sure to carefully review the terms of the contract so you are aware of your responsibilities.

Some key items to come up with your form of contract are:

  • Get sample contracts of what other people do in the industry, you don’t need to re-invent a contract.
  • Make sure you have an experienced business lawyer doing the drafting, one that already has good forms to start with.
  • Make sure you make it look like a standard form pre-printed contract with typeface and font size.
  • Don’t make it so ridiculously long that the other side will throw up their hands when they see it.
  • Make sure you have clearly spelled out pricing, when payment is due, and what penalties or interest are owed if payment isn’t made.
  • Try to limit warranties when possible for products and services.
  • Include limitations on your liability if the product or service doesn’t meet expectations.
  • Include a “force majeure” clause relieving you from breach if unforeseen events occur.
  • Include a clause on how disputes will be resolved. Our preference is for confidential binding arbitration in front of one arbitrator.

While the form contract is standard, it does not prevent customization when needed. Every contract can be tailored to be more favorable to one side or the other.

You can start with your form of contract, and your clients can agree and sign or request changes be made. Working with a lawyer who is experienced with the right wording to use, can save you a lot of time and money in the long run.

Other steps to finalizing a contract

In some cases, like when you agree to the terms and conditions, signing a contract is fairly easy. After all, you can’t negotiate your service agreement with Netflix.

Here are some other issues to watch for when developing and negotiating contracts.

  • While negotiating contracts, make certain you are comfortable with your proposed duties and obligations. Make your intentions, requirements and expectations of the other party clear at the beginning of negotiations. And, as a safeguard, remember to negotiate for a remedy within the contract if there is a breach by either of the parties.
  • Many parties use legalese, legal words and language, when drafting contracts. This can make the terms and obligations of the contract confusing. Use regular language when possible, to ensure that both parties understand what the contract says and means.
  • Contract negotiations, especially important financial contracts, can be grueling. An attorney can help you with negotiations, making sure that your needs and requirements will be met. Also, a lawyer can help you with the initial and final draft and contract review, and explain to you your duties under the contract. An attorney is there to look out for your best interests throughout the entire contract process.

Don’t forget the most critical step!

Before you sign any contract, read it. Make sure you know what your stated obligations are under the contract. If you are uncertain as to your duties, and you sign the contract, you may be liable for breaching the contract.

It’s a good idea to have a lawyer review the contract terms to ensure that your needs will be met and that you will not obligate yourself unexpectedly.

Yes, even those terms and agreements need to be read. We recently experienced one of those types of contracts that had an obligation to pay a monthly fee for 12 months in the terms and conditions, several pages down.

While that could be considered a deceptive business practice, if you read the contract, you would have seen that clause.

The attorneys at The Orlando Law Group can help your business with any contract needs as we understand business and represent clients in business law and more in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

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Business Ownership Information is Not Dead for Foreign-Reporting Companies

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Over the past couple of years, businesses have been in limbo when it comes to filing their business ownership information with the federal government. Their owners have watched as courts flip-flopped over the constitutionality of requiring businesses to share their ownership information with the government.

This weekend, the U.S. Treasury Department announced a final verdict for businesses that should give some relief for those who were waiting to file.

In its announcement, the Treasury Department declared that it would not enforce any fines or punishments listed in the law for any U.S. citizen or domestic-based companies. Instead, the agency will be engaging in a rulemaking initiative to narrow the scope to foreign-reporting companies.

That means the vast majority of small businesses do not have to file their BOI paperwork, but for the 25,000 or so foreign-reporting companies registered in Florida, you still are on the hook.

The attorneys at The Orlando Law Group can help businesses determine if they are required to file their Beneficial Ownership Information and file all the required documents for you.

What is the Beneficial Ownership Information?

As a recap of the issue, privately owned small businesses, for the most part, do not have to file any sort of public disclosures in the way that companies listed on a stock exchange must do every quarter.

Unfortunately, too many criminals are using fake companies for money laundering and other crimes. It is very difficult to track criminal activity without a subpoena.

That is why, in 2021, the federal government passed the Corporate Transparency Act, hoping to provide more tools for law enforcement to find terrorists, money laundering, counterfeiting and more.

Yes, just like how we take off our shoes at the airport because of an act of terrorism, law-abiding small businesses were going to be required to file additional information with the government because of criminals.

Who was required to file Beneficial Ownership Information?

In the Corporate Transparency Act, small businesses with fewer than 20 employees and annual revenues of less than $5 million were required to file. Yes, there were some exemptions like companies in the investment and financial realms. Most organizations that file as a 501(c) with the IRS were exempt. And large businesses were exempt.

For businesses with one LLC, the issue wasn’t very problematic, but for businesses that have multiple LLCs, such as a real estate firm that owns multiple properties or a restaurant group with each location a separate entity, this could have meant filing a separate Beneficial Ownership Information for each one!

What happened if a business did not report its Beneficial Ownership Information?

Remember from our first article on this issue, the penalties for not filing were harsh. According to the federal government:

“The willful failure to report complete or updated beneficial ownership information to FinCEN, or the willful provision of or attempt to provide false or fraudulent beneficial ownership information may result in a civil or criminal penalties, including civil penalties of up to $500 for each day that the violation continues, or criminal penalties including imprisonment for up to two years and/or a fine of up to $10,000. Senior officers of an entity that fails to file a required BOI report may be held accountable for that failure.”

This was not like filing with the State of Florida, where the fine is relatively small for not filing. This was an effort of the Financial Crimes Enforcement Network division of the United States Treasury. It was scary.

What Happens Now?

It is not unexpected that the Trump Administration was going to eliminate the need for small businesses to file their BOI information. After all, one of the key aspects of their campaign was to eliminate regulations on businesses.

So, if your LLCs are based in the United States, the law still says you need to file, but there is no repercussion for not doing so. As such, we are recommending our clients to not take any action.

If you are a foreign-reporting company, you will still be waiting for the Treasury Department to make its final rule, but you should be prepared to act sometime in 2025 or 2026, as it appears once rulemaking is finished, you will be required to submit your BOI.

That means, if you are using the Cayman Islands or some other location as a headquarters for tax advantages or are just an office of a foreign-based company, you will probably need to file at some point.

We say “some point” because rulemaking is a process that takes a long time, often longer than a year. In the process, the agency will ask for comments and possibly hold public hearings, looking for thoughts on how it should adjust or implement a proposed rule.

This does give an opportunity for business owners who are affected to share why they shouldn’t be required to file. While you may not think the agency will listen, they often do.

The attorneys at The Orlando Law Group can help your businesses prepare for this requirement as we understand business and represent clients in business law and more in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

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Make Sure Your Business is Protected After a Cyberattack

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In today’s high-tech world, businesses are often at the mercy of cybercriminals. Every day, hundreds of thousands of attacks on businesses are launched to do everything from steal company secrets, demand money, find concealed data, or just be disruptive.

There is not a business that is immune to these attacks and even the most tech-savvy companies and people can find themselves on the wrong side of a cyberattack.

There are many ways to help reduce the likelihood of some sort of cyberattack, and the number of companies that offer protection is endless, but criminals will find a way around these steps eventually.

At The Orlando Law Group, our goal is to ensure you take the steps before and after a cyber-attack to reduce your legal liability to your customers and vendors. Our attorneys specialize in helping businesses with all types of legal issues facing them, including cybersecurity recovery.

What Can Happen?  

The types of business scams using technology continue to increase and evade those companies fighting cybercrime.

For instance, just a few months ago, two of Central Florida’s most trusted institutions were hit by cyber-attacks.

At the University of Central Florida, an accountant received a notice from a vendor that their bank account had changed and that all payments needed to be sent to another bank. The university complied and sent the money to the new account not realizing the vendor’s email was hacked.

Once the money was received, the cybercriminals launched a “spam bomb” designed to overwhelm the email system to delay the discovery of the attack. It worked and the issue was not fully revealed for 12 days – and after $105,000 went missing.

Right after that, the non-profit OneBlood was attacked, and all systems were shut down until the organization was to pay a ransom. The organization eventually stopped the attack, but not before switching to manual systems to send blood to more than 220 hospitals. The attack also resulted in the data of thousands of donors to be compromised.

These are not isolated cases. The same criminals who attacked OneBlood have also attacked Rite-Aid, The Florida Department of Health and many others.

What types of scams are there?

Quite frankly, the types of online scams that are being used by criminals continue to evolve and get harder and harder to spot. With the improvements in artificial intelligence and virtual reality, it can be nearly impossible to detect a scam.

Here are a few of the ways that criminals are preying on their victims.

  • AI-driven phishing emails – Phishing emails have been a way of life for users of email since the days of AOL. However, in the past, the emails were usually poorly written or just didn’t sound like the person sending them. Today, criminals are using AI to copy the voice and writing style of the person they are using. They scour social media with technology to compile the email, making it sound like you are truly talking to your customer or vendor.
  • Deepfake impersonation scams – Today’s technology can almost perfectly imitate an individual with video and/or voice. This technology fooled a tremendous number of voters with a robocall sounding like President Joe Biden during the election, but that’s just one example. There are now deepfakes of a company’s CEO being sent to employees with fraudulent requests – like making a GoFundMe donation for a coworker – that work too often.
  • QR code phishing (aka “quishing”) – Remember when we all stopped putting thumb drives in our computers? We’re getting to that point with QR codes now that they are being used for nearly all advertising and marketing. However, a legitimate-looking QR code could send you to a criminal’s website, giving access to all of your files and information connected to your smartphone. For many businesses, this is just about every file they own.
  • Fake invoice and billing scams – This type of scam has been around for a while, but has become more complicated and harder to stop. Take the UCF example. In the past, the university could have acted quickly, but with the additional step of a spam bomb, the thieves were able to get away with the money. Again, using AI can help make the request for payment sound exactly like a vendor’s regular requests.
  • Business identity theft – Identity theft is also no stranger to businesses and individuals. They made an entire movie about Frank Abagnale Jr. stealing identities and living various lives around the world long before the internet. Today, with critical records, like employer identification numbers sent freely, it’s not difficult to mimic someone’s identity. With key information, crooks can open loans, file for tax returns and much more.

These are just a few of the ways businesses can be attacked through technology. Frankly, new methods of attacks are being developed every day, making it more and more difficult to protect a business from criminals.

Are there legal ways to recover lost funds?

Unfortunately, cyber thieves are much harder to catch than the criminals of yesterday who held up banks and mugged people on the street.

In nearly all cyber crimes, criminals are very smart and can cover their tracks using technology. When someone is caught for cybercrime, it takes a substantial effort from law enforcement. Oftentimes, the criminal might be in another country – and may even be backed by an adversarial government!

For instance, in February, a cybercriminal was caught in Spain after hacking into NATO, the U.S. Army, and other high-value targets. It took more than a year and was a combined effort of the National Cryptologic Centre of the National Intelligence Centre of Spain, EUROPOL and U.S. Homeland Security Investigations.

Of course, the first step after any cyberattack is to call law enforcement to start the investigation to find the criminals, however, in most cases, local law enforcement is not equipped to find the criminals because the resources and the technology are extremely specialized and very expensive.

It’s unfortunate, but in most cases, there will be very little recovery of any data or funds stolen during a cyberattack.

Prepare for your defense – before the attack

While a personal or business loss is unfortunate, it only affects the individual or business. Businesses run into significant issues when a customer’s data or money is stolen as part of a cyberattack.

In that case, your company could be found liable and be forced to pay significant legal fees, fines and payments to customers for a breach. In some cases, the result is a class-action lawsuit against the company.

Recently, Equifax had to pay approximately $575 million because of a security breach that compromised the information of more than 150 million people in 2017. Investigators found out that Equifax could have prevented the attack by fixing a known flaw in its systems. It also failed to quickly inform its customers of the breach.

According to CSO, a website dedicated to cybersecurity issues, of the $575 million, “$300 million of that will go to a fund providing affected consumers with credit monitoring services (another $125 million will be added if the initial payment is not enough to compensate consumers), $175 million will go to 48 states, the District of Columbia and Puerto Rico, and $100 million will go to the Consumer Financial Protection Bureau.  The settlement also requires the company to obtain third-party assessments of its information security program every two years.”

You can read more about that and other high-profile cases here.

Take steps now to protect yourself

There is no sure way to prevent a lawsuit from your customers or vendors after a cyberattack, but you can take steps now to increase the likelihood of a successful defense of a lawsuit.

First, find a cybersecurity firm with a proven track record of preventing cyber-attacks. Many companies offer cybersecurity, so you must do your due diligence.

The insurance company, Brown & Brown, wrote a great article on how to pick a great cybersecurity company here. But their nine key aspects are:

  1. Primary Focus on Cybersecurity
  2. Customizable Service Offerings
  3. Desire for Long-Term Relationship
  4. Understands Every Endpoint
  5. Data-Driven Defenses
  6. Diverse Client Base
  7. No Conflicts of Interest
  8. Exceptional Customer Service
  9. Money Matters but Cost Isn’t Everything

Brown & Brown also recommends cyber insurance, which we would recommend as well as another layer of protection for when your business is attacked.

After you’ve hired a cyber security company and installed all the technology needed, it is then time to establish your protocols for what happens after a breach and how to notify customers.

If you are dealing with medical records, HIPPA then it is fairly straightforward as the United States Department of Health and Human Services has specific guidelines on what to do found here.

While non-medical companies are not required to follow these steps, they actually provide a great framework for any business to follow.

For instance, HHS guidance says:

“These individual notifications must be provided without unreasonable delay and in no case later than 60 days following the discovery of a breach and must include, to the extent possible, a brief description of the breach, a description of the types of information that were involved in the breach, the steps affected individuals should take to protect themselves from potential harm, a brief description of what the covered entity is doing to investigate the breach, mitigate the harm, and prevent further breaches.”

By following this format, you are making sure the victims of the breach – a company’s customers and vendors – can take action quickly to stop any further damage. In addition, you can offer some sort of way to help, such as providing free credit monitoring for anyone who would like it.

That said, waiting after a breach to put together a plan can be costly for a business. A company should put together the plan as soon as possible and be ready to activate the plan as soon as a breach is discovered.

The Orlando Law Group can help your business prepare for an eventual cyberattack and will be there for you when it happens to mitigate as much liability as possible for your business.

The attorneys at The Orlando Law Group help businesses and organizations in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida with all types of business law, including legal protections in a cyber-attack.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

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can power of attorney override a will?

Can a Power of Attorney Change a Will?

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When you’re not a lawyer, a lot of legal terms seem interchangeable. But knowing the ins and outs of wills, power of attorney (POA), and other concepts for wills and living wills puts you in a stronger position to defend the wishes of your loved ones—as well as your own wishes. The legal professionals at The Orlando Law Group want to empower all of our clients, and that includes helping local Florida residents like you understand the interactions between wills and power of attorney. Get the answers to frequently asked questions like ‘Can power of attorney change a will?’. 

Can a POA Sign a Will?

Someone designated with power of attorney cannot sign a will on behalf of someone else. They cannot create, sign, or revise a will without the individual’s consent and signature. However, the person given power of attorney does have some decision-making capabilities in how assets are handled and interpreted. Because of this, it’s important to create a detailed, legally sound will that thoroughly establishes what should be done with all of your assets.

Can Power of Attorney Override a Will?

Again, the direct answer to the question ‘Can power of attorney override a will?’ is ‘no’—but it can be more complex than that. If you give someone the power of attorney over your estate, they can make changes to those assets that can significantly alter how your will is carried out.

A power of attorney can also challenge a potentially invalid will, leading to part or all of the will not being enforced. This complication, however, is rare. In most circumstances, power of attorney also dissolves once an individual dies, as all of the assets and associated rights or responsibilities shift to the estate. Many people worry over the question, ‘Can a POA change a will?’ but wills have built-in protections against third-party changes.

Do I Need a Power of Attorney If I Have a Will?

These questions and answers have shown the strict division between wills and people granted power of attorney. In most circumstances regarding assets, wills overrule all other sources, and people with power of attorney have a diminishing impact on the assets. However, both concepts are very important to organizing your life and assets. “Power of attorney” is useful for protecting your assets while you’re still alive, while your will can protect your assets once you pass away. 

Someone granted power of attorney can handle these responsibilities: 

  • Make decisions for you, your health, and you’re assets if you’re incapacitated and/or medically unable to make those decisions for yourself
  • Represent you in the purchase or sale of assets that require in-person representation

You can even have multiple people granted power of attorney on your behalf, such as a finance POA and a health care POA.

Every state establishes its own rules regarding what ‘power of attorney’ entails and the process for establishing one. In Florida, only people aged 18 and older can have an agent with power of attorney (and that agent must also be 18 or older). They can handle responsibilities such as managing investments and real estate, paying bills and other debts, and looking after your business, as well as making health-related decisions. However, it is also best to establish a living will, which can detail your preferences regarding medical interventions, asset management, and other decisions. 

Contact The Orlando Law Group for All Your Legal Needs

No matter how old you are or how complex your estate is, it’s best to establish a will, living will, and power of attorney before you need them. Being proactive gives you more time to think through sensitive decisions and create a legal strategy you’re comfortable with. At The Orlando Law Group, we’re here to help. Contact us today to schedule an initial consultation or to learn more about your legal options in Florida.

Featured Image: Amnaj Khetsamtip / Shutterstock

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FL homestead law

Florida Homestead Law: Guide to Protection & Requirements

 

The Florida Homestead Law provides critical protections for homeowners, safeguarding their primary residence from specific legal actions while offering tax benefits and financial security. Whether you’re a new homeowner or have lived in Florida for years, understanding how this law works can help you secure your assets and plan for the future.

The Orlando Law Group specializes in guiding Florida residents through homestead protection. People often ask us, “Is Florida a homestead state?” We created this guide to help you learn how to benefit from the Florida Homestead Act and its protections, requirements, and common misconceptions to help you make informed decisions.

Understanding the Florida Homestead Law

The Florida Homestead Law protects homeowners by safeguarding their primary residence from specific legal claims, such as creditor actions, while providing significant property tax benefits. This protection ensures families can stay in their homes during financial hardships.

Rooted in Florida’s early statehood, the law has become one of the country’s most comprehensive homestead protection policies. It prevents the forced sale of a primary residence due to unsecured debts, offering critical financial security for qualifying homeowners.

The Florida Homestead Law also helps homeowners build long-term financial stability by protecting home equity and lowering property tax obligations. Specific residency and ownership requirements must be met to benefit from these protections.

Key Protections Under the Florida Homestead Act

The Florida Homestead Act protects homeowners significantly against creditors by shielding their primary residence from seizure due to unsecured debts like credit card bills or medical expenses. This safeguard provides peace of mind for families facing financial challenges.

However, this protection does have limits. The law does not exempt homes from obligations such as:

  • Property taxes
  • Mortgage payments
  • Contractor liens for home improvements

Understanding the protections and exceptions allows homeowners to make informed decisions when relying on the Florida Homestead Act.

Requirements for Homestead Protection in Florida

To qualify for homestead protection, the property must be your primary residence, and you must hold legal or equitable title to the home. The property must also be located within Florida.

Declaring a homestead involves filing with your county’s property appraiser and providing proof of residency and ownership, such as a driver’s license or utility bills. Homeowners must meet the residency requirement, typically residing in the home for most of the year, to maintain eligibility.

Common Misconceptions About Florida Homestead Law

Several myths exist about the Florida Homestead Law. A common misconception is that the law covers all properties owned by an individual, but it only applies to a primary residence. Another misunderstanding is that it protects against all financial liabilities when, in fact, it does not cover property taxes or mortgage payments.

Clarifying these misconceptions can help homeowners understand the true scope and benefits of homestead protection Florida offers.

How to Ensure Compliance With Homestead Requirements

Staying compliant with Florida Homestead Law requires careful attention to documentation. Homeowners should:

  • Maintain thorough records of their homestead declaration and proof of residency.
  • Ensure the property remains their primary residence.
  • Update the county property appraiser on any changes in residency or ownership.

These proactive steps help homeowners fully benefit from the protections offered under the Florida Homestead Act.

Securing Your Home With Florida Homestead Law

The Florida Homestead Law offers significant benefits, including protection from specific creditor claims and reduced property taxes. Homeowners can maximize these advantages by understanding the law’s protections, requirements, and limitations.

For personalized legal assistance, contact The Orlando Law Group today. Our experienced attorneys can help you navigate the Florida Homestead Act and ensure your home receives the protection it deserves. Schedule your consultation to safeguard your property with legal guidance.

Featured Image: BERMIX STUDIO / Shutterstock

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Non-profits are not immune to messy and costly HR lawsuits

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This month, a non-profit surgery center in Virginia settled a major lawsuit related to how it treated an employee after being accused of discriminating against the employee because of their age.

The employee, a radiologic technologist, had been out on approved medical leave as the employee took care of carpel tunnel syndrome. The recovery was not going as planned, so the employee asked to extend the medical leave.

Instead of granting the request, the non-profit decided to end the employment and hired two younger technicians to replace the employee, resulting in a lawsuit against the non-profit from the Equal Employment Opportunity Commission.

In the end, the non-profit agreed to pay the employee $50,000 and “revise its policies on the ADA and ADEA, provide training to its management on the ADA and ADEA, educate its nonmanagerial employees on its ADA and ADEA policies and make reports to the EEOC of complaints of disability or age discrimination,” the release from the EEOC stated.

Most likely, that non-profit settled because it could withstand making those changes and paying the fine. The surgery center is part of a larger network of non-profit surgery centers.

For most small non-profit organizations, this type of lawsuit or action could mean the non-profit organization would shut down after spending significant resources on legal fees and other aspects of the fight, not to mention the stress and anxiety such a lawsuit could have on a non-profit organization.

However, the chance of having lawsuits involving human resources issues can be significantly reduced by taking the proper steps before a problem arises. And, if a problem does come up, a non-profit organization can have a better defense by creating policies that oversee human resources – and following them.

The attorneys at The Orlando Law Group specialize in helping non-profit organizations in Orlando, Sanford, Winter Garden and Kissimmee with all of an organization’s essential legal needs, including what is needed for human resources and employment.

Hiring Employees? Be Prepared

For any growing organization, hiring employees is a critical decision. Yes, there are financial implications, but there are also significant legal issues that can arise from employees.

The reality is that most of the same challenges that face for-profit companies also face non-profit organizations when it comes to working with employees. As such, in those cases, what’s critical for Target and Walt Disney World with employees is just as critical for the non-profit organization reading books to children or helping house abandoned cats.

So, let’s start with the basics of employment laws and how all businesses try to protect themselves from issues with employees. Those steps happen long before an employee is ever hired.

At the heart of all employment law is having the right policies and procedures in place and making sure all employees have read the policies, understand how those policies work and agree to follow those policies.

This work needs to be done before any employee has been hired. Here are a few items that need to be created by your non-profit before bringing on any employees.

  1. An employee handbook that covers all of the policies the non-profit has created. These policies should include these and others specific to your situation.
    1. Dress code
    2. Code of conduct
    3. Processes for requesting time off
    4. Benefits, if any, available for employees
    5. Remote work
    6. Harassment
    7. Equal-opportunity
    8. Co-worker relationships
    9. Grievance procedures
    10. Whistleblowing
    11. Drugs and alcohol
    12. Conflicts of Interest
  2. An employment contract that includes all the details specific to the individual.
  3. Job descriptions for all positions in the organization.
  4. Termination procedures, including any actions to dispute the reason for termination
  5. Benefit plans

As stated before, this should be commonplace for any business that hires employees. However, non-profit organizations need to be aware of a couple of very specific items that non-profit organizations are particularly at risk of having issues arise even with policies and procedures in place.

Make sure to classify employees as exempt or hourly correctly

This is a common problem for all businesses, but for non-profits who are often on a shoestring budget, the temptation to have someone classified as exempt is great.

However, if an organization is caught falsely classifying an employee, the punishment can include significant costs, including backpay for all employees not classified correctly and additional fines.

The U.S. Department of Labor has a great checklist for determining if an employee can be classified as exempt, but the requirements truly depend on the job. And here’s what can happen if you do not properly classify employees:

  1. The Wage and Hour Division may supervise the payment of back wages.
  2. The Secretary of Labor may bring suit for back wages and an equal amount as liquidated damages.
  3. An employee may file a private suit for back pay and an equal amount as liquidated damages, plus attorney’s fees and court costs.
  4. The Secretary of Labor may obtain an injunction to restrain any person from violating the FLSA, including the unlawful withholding of proper minimum wage and overtime pay.

The statute of limitations on this is two years for an accidental misclassification or three years if it was intentional.

The rules on employees are often changing, so it is important to have a labor law and HR professional available to review your classifications of employees.

The difference between a volunteer and a paid employee.

A very similar situation to classifying employees is allowing employees to volunteer at the non-profit. Most non-profit employees enter this type of work because they care about the cause or helping their community in general. They want to give more and donate time to the organization.

Unfortunately, non-profits have to be very careful about how an employee donates their time. The laws are very clear, an employee cannot donate time to do work they are usually paid for.

Let’s say the founder of a pet kennel has a medical emergency and cannot tend to dogs during the day as they normally do. The overnight kennel manager is sympathetic to the cause and “volunteers” to stay a few extra hours to help out.

That can’t happen.

However, if the kennel specialist volunteered to register people at the kennel’s gala, that would be allowed because it is not part of their actual position and job duties.

The best step is to make those rules clear in the employee handbook.

Non-disclosure agreements are essential.

Non-disclosure agreements, commonly referred to as NDAs, are fairly standard with many businesses, but for non-profits, they can be essential to prevent the worst from happening. Perhaps the main reason is that most people don’t go to work for a for-profit company because they believe in the mission, but employees of a non-profit are almost always tied to the mission. They entered the non-profit world because they cared.

Guess what? Volunteers, community leaders and the press are also invested in the mission of the organization and when something goes wrong, the temptation to smear the board, the executive, or others is great and often gets a much larger audience.

An NDA, along with a whistleblower policy, can help keep any disgruntled employees from running to the TV news or bashing the non-profit on Facebook. If they do, a non-profit organization could have a claim against them for damages because of the impact on the non-profit organization’s reputation.

Outside compensation policies can help employees.

Face it, non-profits are not going to make most people rich, and most employees are not being hired by your non-profit because the pay is significant. Yes, they want a good paycheck, but they understand non-profits can be a sacrifice.

Having a policy on outside compensation, including what is allowed and what is not allowed, can help your employees pay their bills. For instance, you could say outside compensation is allowed as long as it is not with a vendor of the organization or as long as it is not adult entertainment, such as an OnlyFans page.

Having a policy presented when the employee starts can help avoid conflicts in the future.

No commissions or finder fees for development officials.

In many businesses, the person bringing in the revenue for the company can be paid a percentage of that revenue. It’s one of the reasons so many people go into sales, particularly commissioned sales. That’s because their pay can be increased based on what they bring in.

For non-profits, this type of pay structure for the people responsible for bringing in donations is considered unethical and is not accepted. Many more issues are considered unethical for non-profits. Here is the list according to the Association for Fundraising Professionals.

Review the list and make sure your policies and procedures keep your non-profit ethical and in line with industry standards.

Curtail bad behavior from alcohol before it starts.

For many non-profits, event revenue is one of the largest fundraising activities. And at many events, the alcohol flows freely for its guests.

It can’t be for employees.

While many would think it would be understood that employees should not be overindulging at the annual gala, you are dealing with human nature and mistakes could take place. You also may have an alcoholic as an employee without knowing.

After all, when an employee drinks too much, many other issues could arise. What happens if they confront a donor – or try to become romantic with another employee? That could result in a multitude of issues that can affect the financial stability of any non-profit organization.

A chain of command helps avoid problems.

In the governance of a non-profit organization, it is almost always clear that employees should not be communicating with board members unless approved by the executive director. However, it often happens and often causes significant issues for the non-profit organization.

For instance, trying to be helpful, a board member recommends their friend to be an employee of the non-profit. Of course, the executive director will treat the interview process for that person like all the other applicants.

In this case, the board member was right. The person will be a great employee.

Unfortunately, when there is a disagreement between the executive and the employee, the employee complains to their friend, the board member. The board member then approaches the executive asking questions without fully understanding the issue that might have started the disagreement.

Now, instead of spending time on the organization’s mission, the non-profit director is working to explain their actions to their boss, even if it was justified

In a non-profit organization’s bylaws, it is recommended the board manages the highest-paid executive and the executive manages the staff. This needs to be clearly stated in the bylaws but also shared with employees. If a board is dealing with the day-to-day management of employees, the non-profit is not operating at its full potential.

Utilizing contractors can be a solution.

More and more businesses are utilizing 1099 contractors to outsource certain tasks. This can be a solution for non-profits as well. Just like other businesses, it is important to understand the rules dealing with a contractor vs. employee status.

For instance, the contractor can’t be provided with a company email address, a sales target list, a business card or any other things that you think might be common. You also can’t dictate how the job is done or when the job is done. You can only require the job that needs to be done.

It is important not to try to replace employees with contractors. Much like the classification of exempt employees, the fines and back pay for treating contractors like employees can be significant.

The attorneys at The Orlando Law Group help all types of legal issues for non-profit organizations in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

Whether it is on this issue or one of the thousands of other issues facing non-profit organizations, The Orlando Law Group can help.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

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Cigarette Smoke is No Joke in Condominium Association Management

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The United States has done a remarkable job in lowering the number of people who smoke cigarettes. In 1965, nearly half of all Americans smoked cigarettes. Today, the number is closer to 10 percent.

The statistics are not all good, however. While there has been success with cigarettes, the use of vapes and e-cigarettes has nearly tripled over the past five years.

In addition, with the legalization of marijuana, including for medical use, smoking marijuana has significantly increased. Approximately, one in 20 residents in Florida has been approved to use medical marijuana

While there are strong laws about smoking and vaping in public places, how it is regulated in other places is pushing forward. Just a couple of years ago, Florida legislators permitted local governments to ban smoking on the beach and public parks.

Now, there is a growing movement to regulate and prohibit any type of smoking in condominium units, even on the balcony.

With little guidance on the subject in Florida statutes, condominium associations should still be able to limit or prohibit the amount of smoking or vaping in units for two main reasons:

  1. The damage to the commonly owned portions of the condominium building and,
  2. The potential medical issues posed by second-hand smoke, particularly those with asthma and other respiratory diseases.

Regardless, any rule created that prohibits any type of smoking or vaping may be challenged by residents, so it is essential that if this issue is facing your condominium, it is important to work with an attorney to help craft the language.

The attorneys at The Orlando Law Group specialize in helping Condominium Owner Associations in Orlando, Sanford, Winter Garden and Kissimmee with all of an organization’s essential legal needs.

What about individual property rights?

When someone purchases real estate, like a home or condo, the popular belief is the property is theirs and they are free to do what they want.

While that can be mostly true, there are many instances where actions inside a private home or on private property can impact neighbors or the community as a whole. In nearly all cases, the community’s association or law enforcement can step in.

Think about this. If you have a massive party with hundreds of people and speakers pounding dance music at 3 a.m., the police will show up and force you to turn the music off because of how it affects your neighbors.

Of course, if you try to paint your house bright pink and purple, the homeowners’ association can force you to repaint in a style that does not affect your neighbors’ property values.

Same thing with a condominium.

While you own it, you cannot operate a woodworking hobby with saws in the condo at 5 a.m. or hold your rock band’s practice at midnight.

Such is the case with smoking and vaping. While you own the space, an owner cannot control where the smoke travels. It will reach common areas and neighbors, affecting the value of other people’s condo units and can create some medical issues that may be life-threatening.

Start with the easiest restrictions

In Florida, the laws are very strict about smoking in workplaces, which is virtually any public area with only a few exceptions. Basically, if you are not a smoke or vape shop or a bar that does not serve food, smoking is not allowed in Florida.

In addition, as stated earlier, counties and cities can prohibit smoking on beaches and parks if they choose.

For a condominium, a workplace includes all the common areas, such as a recreation room, a hallway, a shared garage or storage area, or an outdoor kitchen. Depending on the municipality, it could include a playground or another recreational area.

Florida Statute 386.024 is remarkably short for any law but says: A person may not smoke or vape in an enclosed indoor workplace, except as otherwise provided in s. 386.2045.

Those exceptions?

(1) A private residence whenever it is not being used commercially to provide child care, adult care, or health care, or any combination thereof as defined in s. 386.203(1).

(2) A retail tobacco shop.

(3) A retail vape shop.

(4) A designated guest room at a public lodging establishment.

(5) A stand-alone bar that complies with all applicable provisions of the Beverage Law and this part.

(6) An enclosed indoor workplace, to the extent that tobacco smoking or vaping is an integral part of a smoking or vaping cessation program approved by the department, or medical or scientific research conducted therein.

(7) A customs smoking room in an airport in-transit lounge.

If your condominium association is dealing with people smoking or vaping in common areas, put signs up clearly stating it is prohibited and enforce the law. The penalties for breaking Florida’s Clean Air Act are a fine of not more than $100 for the first violation and not more than $500 for each subsequent violation.

Private Residents are Exempt, Right?

Yes, under the Florida Clean Air Act, private residents are exempt from laws that prohibit smoking or vaping.

However, restrictions placed on condominium owners are often not explicitly outlined in Florida statutes, unless prohibited. For instance, the statutes say condominium associations can restrict, like holiday lights and commercial vehicles.

But, overall, restrictions are a contract between each unit owner and the association to help protect the quality of the condominium for all residents and are developed without clear direction from Florida Statutes.

That means an association can dictate what color paint is on the door of each unit. They can restrict what is on the balcony of each condominium unit. They can restrict how many people live in a unit. They can restrict how the unit is rented – if at all. It can even restrict the age of the owner to over 55 years old.

We believe it can also restrict smoking inside of a condo unit or on the balcony with the same concept. Smoking can greatly affect the values of other units, increase maintenance costs and create a medical hazard for other unit owners.

Smoke can not be controlled

No matter how hard a property owner tries, smoke and vapor cannot be limited to one unit. In many cases, there is an air conditioning system that has connections to other units. Plus, any unit is not airtight. There are small crevices and cracks in walls, window seals and doors.

All of that means the smoke from one unit can travel to common areas and into other units.

As to smoking on the balcony, when you smoke or vape on the balcony, the wind can carry the smoke back into the building and into another unit affecting other property owners.

Some associations require additional steps rather than ban smoking or vaping, such as requiring a condominium owner to put in an air filtration system or extra weathering strips around windows and doors.

But even those cannot capture all the smoke from cigarettes and vapes, often leaving condominium associations having to outright ban smoking indoors and on the patio.

Property Damage from Smoke and Vapors is Real

A study once showed the resale value of a home or condominium occupied by a smoker decreased by nearly 30 percent. Of course, the thought that if someone wants to reduce the value of their home by that much, they should be allowed to do so.

Again, smoke and vapors do not stay in one unit. It spreads throughout the building, entering neighboring units and the hallways and common areas.

This increases the number of times the condominium association needs to change the carpet and drapery, paint the walls of the unit and flush out the HVAC systems. All of that adds costs to all owners because of the actions of one unit.

And think about what a heavy smoker living next door does to your property values if someone looks to buy your unit and smells the smoke residue in the unit, even if you don’t smoke!

That is exactly what any restrictions on unit owners by a condominium association are meant to protect.

It isn’t just the property values. It’s also thirdhand smoke.

Studies have shown that residual smoke on surfaces can cause cancer and even break DNA in humans. Children are especially susceptible to thirdhand smoke.

While it won’t be as dangerous as the thirdhand smoke in the actual unit, nicotine will settle and stay for weeks on surfaces surrounding the unit where the smoker lives.

Secondhand Smoke Can Hurt Others

Much has been written about secondhand smoke. It was the primary reason why laws like the Florida Clean Air Act were passed throughout the country decades ago.

But much of that was centered around being in an enclosed space, like an airplane or a restaurant, and workers not being able to get away from the harmful effects of smoke. As smoking declined in the United States, more people were happy to have laws that eliminated the smell of smoke.

Of course, not one law prohibits smoking by yourself in an enclosed space, but a condominium unit is not an isolated and closed space. It will travel to neighboring units and common areas.

What if your neighbor has severe asthma that can be triggered by the slightest amount of cigarette smoke or vapors from an e-cigarette? Your actions could impact the health of your neighbors.

In that case, the neighbor could file a disability claim with the federal government and could sue the condominium association for a variety of reasons, one of which is the right of quiet enjoyment of a residence.

Basically, the courts have found that owners and renters have the right to enjoy where they live without the outside threats of something lessening that ability. If one condo unit owner’s secondhand smoke is causing asthma attacks in their neighbor’s kids, they have affected their neighbors’ right of quiet enjoyment.

Medical Marijuana Users Have Rights Too

In Florida, the use of marijuana is illegal unless prescribed by a physician. In 2024, nearly 1 million Floridians had been prescribed a prescription to use marijuana for issues like sleep assistance, constant pain, cancer and much more.

If you are one of the million people with a prescription, an association can not prevent you from taking your medication. However, it still can prevent you from smoking or vaping marijuana, even in your house.

As with all the studies of cigarette smoke, the same applies to smoke from marijuana and vapes. Thankfully for those who need marijuana for medical purposes, there are a wide variety of smokeless ways to receive medicine.

A condominium association should be able to require that medical marijuana users only partake with gummies, pills, topographical creams or other non-smokable ways. As medical marijuana is relatively new, there is still little case law on this subject.

Be understanding of your unit owners

As anyone who has lived in a condominium, it often takes understanding of each other’s neighbors to co-exist. It is often a life filled with compromises to ensure everyone can enjoy their home.

Much like any other restriction for a condominium owner, the covenants regarding smoking or vaping can impact one owner to ensure the overall standard of the community is met.

If you are looking to ban smoking or vaping inside units or on a patio or balcony, take into account that smoking is often an addiction that is incredibly difficult to break. As such, look for ways the condominium association can be accommodating, such as building a covered smoking pavilion away from the building for smokers to use.

The attorneys at The Orlando Law Group help all types of condominium and homeowners associations in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

Whether it is on this issue or one of the thousands of other issues facing association management, The Orlando Law Group can help.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

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Thinking About a Raffle? Don’t Push Your Luck!

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As a non-profit organization, one of the easiest ways to raise your much-needed funds is through some sort of game of chance. It could be a casino night or a limited-entry raffle for a new car. You could offer a 50/50 contest or just a raffle for a gift basket or a pair of concert tickets.

Truly the options are endless as to the ways to raise money through games of chance.

Too often, however, non-profit organizations inadvertently break the law by requiring a purchase of a ticket, an entry fee or some other barrier to entry that is prohibited.

It is a serious issue with serious repercussions. If your organization is found to violate state laws dealing with games of chance, you could be charged with a second-degree misdemeanor for a “deceptive and unfair trade practice” with potentially 60 days in jail and a $500 fine per offense. You could also face civil penalties of up to $1,000.

If your non-profit organization is looking to hold a raffle or a sweepstakes, please reach out to The Orlando Law Group today. Our attorneys specialize in helping non-profit organizations with all types of legal issues facing non-profit organizations, like games of chance.

No one goes after these types of issues, right?

Most people would think there is no big deal in holding a raffle or a casino night to raise money for a great cause. Every day in Florida, someone is holding a charity poker tournament, a casino night, a raffle drawing or something else.

And in most cases, law enforcement does not bother them.

It does happen, however.

In fact, it has happened to people and organizations The Orlando Law Group works with.

Several years ago, a non-profit organization was holding a charity poker tournament in Downtown Orlando and the marquee outside the venue read “Casino Night Tonight.” Inside were more than 100 leaders, elected officials and donors supporting this non-profit organization.

At the time, agencies were cracking down on illegal casinos that were being operated throughout the state. The local law enforcement came into the venue and stopped the poker tournament to ensure it wasn’t gambling.

Luckily for the non-profit organization, all of the rules were followed, and a professional casino company was hired. After around 30 minutes, the all-clear was given and the festivities resumed.

If the rules were not followed and law enforcement determined the tournament was gambling, it would have been a lot worse and maybe even been on the evening news.

The Laws are fairly easy to follow

In Florida, the statutes that govern non-profit organization raffles and sweepstakes, FS 849.0935, are fairly straightforward.

It is illegal in Florida:

(a) To design, engage in, promote, or conduct any drawing in which the winner is predetermined by means of matching, instant win, or preselected sweepstakes or otherwise or in which the selection of the winners is in any way rigged;

(b) To require an entry fee, donation, substantial consideration, payment, proof of purchase, or contribution as a condition of entering the drawing or of being selected to win a prize. However, this paragraph does not prohibit an organization from suggesting a minimum donation or from including a statement of such suggested minimum donation on any printed material used in connection with the fundraising event or drawing;

(c) To condition the drawing on a minimum number of tickets having been disbursed to contributors or on a minimum amount of contributions having been received;

(d) To arbitrarily remove, disqualify, disallow, or reject any entry or to discriminate in any manner between entrants who gave contributions to the organization and those who did not give such contributions;

(e) To fail to promptly notify, at the address set forth on the entry blank, any person whose entry is selected to win of the fact that he or she won;

(f) To fail to award all prizes offered;

(g) To print, publish, or circulate literature or advertising material used in connection with the drawing which is false, deceptive, or misleading;

(h) To cancel a drawing; or

(i) To condition the acquisition or giveaway of any prize upon the receipt of voluntary donations or contributions.

Be careful with entry fees

Perhaps the most common mistake non-profit organizations make is in charging an entry fee to participate in the casino night or a raffle and charity poker tournaments are often among the biggest offenders.

For many of those types of tournaments, the marketing materials say “$100 buy-in” to participate in the tournament. Then, to entice players, the organization shows the grand prize is a trip to Las Vegas.

That is illegal in Florida.

After all, if you must spend money to win, it is technically gambling. So instead, you need to ask for a “suggested minimum donation” to play in the poker tournament. And if someone wants to play for less or even for free, you must let them. It’s the law.

The same holds for any raffle contest, no matter how small. If someone asks for a free entry, you are required to give it to them.

While that may sound like you’re going to have a raffle filled with free entries when you are trying to raise money, that rarely happens and there are steps you can take to discourage free entries.

For instance, you could offer 10 raffle tickets with a purchase instead of just one. You can make it so that someone has to use the post office to request a free ticket or entry. You can provide a free entry to receive 1,000 chips in the poker tournament, but then offer an additional 10,000 chips for $100.

The important thing is that you cannot deny free entry to anyone.

Disclosures are required

One of the other places where non-profit organizations run afoul of the law is in disclosures for raffles and sweepstakes. The non-profit organization will put the raffle drawing on its website and on social media to draw attention and raise money for the non-profit organization, but the state requires certain language.

The law is specific in that all tickets, brochures, advertising and forms must show:

(a) The rules governing the conduct and operation of the drawing.

(b) The full name of the organization and its principal place of business.

(c) The source of the funds used to award cash prizes or to purchase prizes.

(d) The date, hour, and place where the winner will be chosen and the prizes will be awarded, unless the brochures, advertisements, notices, tickets, or entry blanks are not offered to the public more than 3 days prior to the drawing.

(e) That no purchase or contribution is necessary.

While the law states that it must be “conspicuous,” it does not say where or how large it must be. And while it seems like a lot, a simple disclaimer can work. It can be something like this:

Doing Good Inc. will be conducting a hand drawing of raffle entries on January 1, 2026 at 2 p.m. at our office at 123 Any Street, Orlando. No purchase is necessary for the raffle of donated items.

Of course, since this is a legal requirement, it is critical to work with your attorney to ensure it is properly written for your unique circumstances.

One thing to note. If your non-profit organization is selling raffle tickets at an event – and only at the event – and drawing prizes that night, you will not need to list where and when the raffle will take place.

Just a reminder. Failure to follow these rules is a second-degree misdemeanor.

Large Prizes Have Unique Rules

One of the proven ways to raise money is to offer a limited number of raffle tickets for a high-value prize, like a great trip, a car lease or something like that. The size of the prize generates significant excitement for the non-profit organization and its donors, who gladly pay $100 a ticket for a one-in-200 chance at a Mercedes Benz.

If you don’t follow the law, you could end up paying $1,000 in fines to the state, in addition to being charged with a second-degree misdemeanor.

The cut-off point for this section of the law is when a non-profit organization offers a prize valued at $5,000 or more. At that level, there are very specific rules that you must follow.

First, you have to register for the contest with the state’s consumer affairs division and you need to build a page on your website with all of the rules of the contest. You will need to pay $100 to the state as a filing fee.

Then, you need to establish a trust account at a bank that will hold the amount of money that is required to pay the winners. The bank must then file a form from the state that verifies you opened the account and the amount of money in the account. You can also purchase a surety bond.

However, if you have registered with the state a similar contest for five consecutive years without any incident, the state may waive the requirements to have a trust account or a surety bond.

All of the above must be done at least seven days before the contest starts.

Finally, after you have given the prizes away, you must send to the state a certified list of all winners who received a prize of more than $25, including the value of the prize. You’re also required to keep these on file for anyone who requests them.

It can get complicated, so here’s the exact language found in Florida Statute 849.094:

Every operator of a game promotion in which the total announced value of the prizes offered is greater than $5,000 shall provide the Department of Agriculture and Consumer Services with a certified list of the names and addresses of all persons, whether from this state or from another state, who have won prizes which have a value of more than $25, the value of such prizes, and the dates when the prizes were won within 60 days after such winners have been finally determined.

The operator shall provide a copy of the list of winners, without charge, to any person who requests it. In lieu of the foregoing, the operator of a game promotion may, at his or her option, publish the same information about the winners in a Florida newspaper of general circulation within 60 days after such winners have been determined and shall provide to the Department of Agriculture and Consumer Services a certified copy of the publication containing the information about the winners.

The operator of a game promotion is not required to notify a winner by mail or by telephone when the winner is already in possession of a game card from which the winner can determine that he or she has won a designated prize. All winning entries shall be held by the operator for a period of 90 days after the close or completion of the game.

That’s a lot of work for a large prize pool, but it can be worth it depending on your non-profit organization’s needs.

Every state is different, so make sure you work with an attorney when planning any games of chance to ensure you are following state law. Florida’s full statute on charitable games of chance can be found here.

In March, The Orlando Law Group will be holding its first non-profit boot camp, where our attorneys will work closely with non-profit leaders to ensure the non-profit organization is following all the legal aspects required.

By attending, non-profits can truly give donors and the community the comfort that their non-profit is one being run with the highest standards.

The attorneys at The Orlando Law Group help non-profit organizations in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

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Non-Profits: Ensure Your Bylaws Are Strong

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If you’re a non-profit leader, you most likely have received a call from a board member sharing they have the solution to an issue you discussed at the last board meeting.

The solution is expensive, but after researching it more, it does seem like the perfect fit. It truly does solve the issue at hand, so you go ahead and sign a contract for the solution.

Everything seems to be running great until someone files a complaint against how you procured that solution.

You didn’t know there were multiple companies offering similar solutions, including one that was significantly less expensive than the one the board member offered. As such, the accusations start flying internally and on social media.

They accuse you of wasting the non-profit’s funds.

They accuse you of just pleasing a board member.

They accuse you of providing insider information to a board member.

They accuse you of not following the professional standards of non-profits.

None of this is good, especially when the media picks up on the situation, but it all could have been avoided with a great set of bylaws that were followed methodically.

If your non-profit organization does not have a great set of bylaws, or you simply want to make sure your non-profit organization’s bylaws are up to date, please reach out to The Orlando Law Group today. Our attorneys specialize in helping non-profits on all types of legal issues facing non-profits, like bylaws.

Why are bylaws important?

The bylaws of any organization are the most essential part of any organization, especially a nonprofit. They are the road map for governance, providing direction to staff and the board about how the non-profit organization operates.

Bylaws should be tailored to the organization and its needs. Yes, bylaws are required by Florida statute, but there is no instruction manual for what is included in an organization’s bylaws.

Florida statutes simply state:

The initial bylaws of a corporation shall be adopted by its board of directors. The power to alter, amend, or repeal the bylaws or adopt new bylaws shall be vested in the board of directors unless otherwise provided in the articles of incorporation or the bylaws. The bylaws may contain any provision for the regulation and management of the affairs of the corporation not inconsistent with law or the articles of incorporation.

It is clearly up to the organization what should be in your bylaws.

Steps to take when creating your non-profit organization’s bylaws

Any non-profit organization’s bylaws should reflect the organization’s goals and objectives. While it’s not a tactical document on how to reach those goals, it is a document to show the procedures and processes the organization should follow to reach those goals and objectives.

We find the best way to start the process is to create a small group of board members who are interested in how the organization is governed. These individuals usually have experience in non-profit board service and understand what usually needs to be in a non-profit organization’s bylaws.

This group should work with an attorney, who can provide guidance to ensure you follow all statutes that govern non-profit organizations. The attorney can also provide you with examples of bylaws from other organizations to set the stage.

Most of the work on changing bylaws happens in this committee. They will work with staff to see what works and what does not work in the current bylaws. They will look for places that need clarification or items that are just not irrelevant.

This group will put together a proposed set of bylaws to present to the full board, which will then accept the changes or ask for further changes.

Of course, many people do not like working through committees, but with a non-profit’s bylaws, it is important to have the full board’s commitment to the document. With their commitment, it is much easier to follow and refer to in situations where the staff may need guidance.

What should be in a non-profit organization’s bylaws

While every non-profit organization’s bylaws will be unique in some fashion, the subject matter of the bylaws is fairly standard for most non-profit organizations.

Specifically, here is what needs to be in your bylaws:

  • Name and purpose of your organization. This should include your mission and vision statements determined through strategic planning of your board of directors.
  • Election, roles, and terms of board members and officers. How this is done can vary significantly depending on the size and goals of each non-profit organization. Some organizations might want a nominating committee to provide board members, others may not.
  • Meeting guidelines. These should include how often the board meets and what constitutes a quorum. One thing to focus on here is what constitutes a quorum and to ensure it is not too difficult to reach. You want to have enough board members present for critical votes, but you don’t want a regular lack of quorums to prevent the non-profit organization from moving forward.
  • Board structure. This could include the number of board members, standing committees and their roles. Again, this can be specific to any organization, although a finance committee and an executive committee are standard. As to board size, there is no right answer. Some non-profit organizations have very large boards and others have just a few people. That is a decision of the board.
  • Compensation and indemnification of board members. Most non-profit organizations do not pay board members, but it is up to the board to determine that aspect. The indemnification part is essential if you would like to attract higher-level board members.
  • Role of the chief executive, the paid leader of the organization. This is truly essential as it is the basis for any employee review. It is also critical to let board members and staff understand what tasks they each should be doing and what processes and procedures they oversee.
  • Conflict of interest policy for board members and its staff. One of the worst scandals a non-profit organization can experience is being accused of using donor funds to enrich the board or the staff. Understanding these conflicts and having a policy about conflicts in purchasing is essential to protect the non-profit group.
  • How to amend the bylaws in the future. A bylaws document should always be able to be amended easily with the permission of the board. It is impossible to see every issue that may need a bylaw change in the future.
  • Dissolution of the organization. No one likes to think about the end of the non-profit organization, but it happens, and you want to make sure the board has thought about what must be followed if the end comes.

All of those apply to just about any 501(c) organization. If you are a 501(c)(6) organization, a membership group, like a chamber of commerce, then an outline of the membership procedures, including how members are accepted and terminated, will be needed.

Other aspects to watch when creating your bylaws

Creating bylaws can be tricky, but when the board comes together, the bylaws are more than just a governance document. It is a platform to give potential donors the security that the non-profit organization is a well-run organization.

For instance, when you talk about term limits in your bylaws, the organization should look at the overall state of the non-profit.

Often there is a debate on term limits for board members. After all, do you want to see someone who is an integral part of the board leave simply because of timing?

Maybe.

But do you have a pipeline of potential board members waiting to join the board or are you struggling to find quality board members?

Will it help your board to have as many community members as possible or do you want the board to be exclusive?

While best practices call for a non-profit to have term limits, that is an individual discussion. For many early non-profits, term limits may come later in the organization.

Another aspect is to make sure the bylaws are written at a high level.

While a non-profit wants to be specific, it should not detail the day-to-day operations of the organization. That should be developed by the paid executive.

For instance, the bylaws of the organization should not have how annual reviews of the customer service agents are performed but it should clearly state how the top-paid executive is reviewed.

When writing the bylaws, make them difficult to change, but not too difficult to change.

For instance, having a supermajority of all of the members of a chamber of commerce approve a bylaws change would be a nearly impossible task, but having a supermajority of the board approve a change is hard, but not impossible.

Finally, remember the bylaws are the rules by which the non-profit is governed. In too many cases, the bylaws are written, approved and then filed as done and not looked at again.

The bylaws should be living, breathing documents that are looked at regular basis.

Examples of how to use your bylaws

Going back to the beginning scenario where a board member proposes a solution to an issue the non-profit organization is experiencing.

When the board member suggests a product or service, the first step should be to check the bylaws for the processes and procedures when that happens.

Does the board member have a conflict of interest? For instance, is the company owned by the board member or a client of the board member?

If there is a conflict of interest, what are the procedures for handling conflicts of interest? Do the bylaws talk about disclosing conflicts or do the bylaws change the procedures for procurement if there is a conflict of interest? Or do the bylaws just say you can’t work with a board member’s company?

Then, check to see what the bylaws say about any procurement. Is there a requirement for multiple bids? Are there specific levels where you need full board authority to purchase?

If you follow all the bylaws, the non-profit organization has some protection against accusations of preferential treatment or wasting money.

Another example is with new board members, particularly when there are more people wanting to be on the board than there are board seats.

When bringing on new board members, the bylaws should have a clear process as to how new board members are approved. This often has a nominating committee that presents to the board a slate of candidates and then the board or membership approves the board members.

What happens if someone really great wants to join the board, but the bylaws say the only time a board member is added is once a year – and that just happened?

Unfortunately, the organization has to wait or go through the process of amending the bylaws to allow for specific exceptions.

But, if you don’t follow the bylaws in every case, you’re ignoring the rules of the organization. That could have serious consequences, including lawsuits or losing your non-profit status.

In March, The Orlando Law Group will be holding its first non-profit boot camp, where our attorneys will work closely with non-profit leaders to ensure the non-profit organization is following all the legal aspects required.

By attending, non-profits can truly give donors and the community the comfort that their non-profit is one being run with the highest standards.

The attorneys at The Orlando Law Group help non-profit organizations in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

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Introducing The Orlando Law Group’s Non-Profit Boot Camp!

The Orlando Law Group is here to help you. Our non-profit boot camp can help you and your organization get on the right path to ensuring the longevity and success of your nonprofit.

Each Non-Profit Boot Camp is exclusively for the top executives at just 10 non-profits, giving them the ability to truly interact with the attorneys at The Orlando Law Group.

Ask yourself these questions:

  1. Are you protected from an injury to a volunteer?
  2. What happens if someone you are trying to help gets angry?
  3. Did you correctly register your charity with the state and federal government?
  4. Have you established a set of bylaws for the organization to operate?
  5. Is your charity protected from someone who wants to steal your idea?
  6. Are your finances transparent and protected from accusations?
  7. Are you personally protected from liability?
  8. Can your non-profit continue to operate if you can’t run it?
  9. Do you have the right non-profit human resource documents and are you following them?
  10. Are you protected from volunteers or staff slandering you after leaving?

If you don’t know the answers to these questions and more, then our Non-Profit Boot Camp is for you!

The Non-Profit Boot Camp is specifically designed for small- and medium-sized organizations, particularly ones that are starting or just a few years old. It’s also tailored for organizations that are looking to expand their funding and their services or those where the founder is trying to add others to the leadership of the organization.

At the Non-Profit Boot Camp, we will cover:

  1. Best Practices for by-laws and other governing documents
  2. Choosing and developing a board of directors
  3. Personal protection for founders
  4. Protections from accidents of volunteers and others
  5. Intellectual property protection – graphics, logos, ideas
  6. Donor and Board Member Protections
  7. Planned-giving legal issues
  8. HR protections
  9. Conflict of Interest
  10. Common legal issues facing small non-profits

Simply click this link to register for the Non-Profit Boot Camp. The cost for the boot camp is just $499, giving you unprecedented access to our senior attorneys and nearly all the information you need to protect your charity and yourself.

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Nurturing Growth: The Power of Proper Onboarding

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Does 2025 include growing the number of people working at your business?

We sure hope so! After all, bringing on new employees means your company is growing and succeeding. We love to see companies expand by creating jobs and providing a career for someone who is looking – or needs – a change.

Hiring employees can be difficult, however, and not just the process of finding the right person. You want to make sure when you find the right person they have the tools, training and structure for their personal success.

That means before bringing them on as a new employee you need to ensure your policies, procedures and much more are up to date. Of course, having those will also lessen the chance of conflict while the employee is at your company – and make the transition smoother when their time at the company is finished.

The attorneys at The Orlando Law Group have a long history of helping businesses with their employment matters, particularly creating the legal documents any company should develop before bringing on an employee.

Is the new hire an employee or an independent contractor?

In today’s gig economy, the lines between an employee and an independent contractor are continually blurring and the punishment for getting this aspect of your workers wrong is substantial, including severe fines for classifying employees as independent contractors and back pay for the employee.

That’s why it is critical that before you bring on new workers, you are very clear about whether they are independent contractors or employees.

In 2024, the U.S. Department of Labor issued its final rule on how to determine if someone working for a company can be classified as an independent contractor. A background on the rule can be found here, but in a nutshell, you want to consider (among other things) “The Economic Reality Test.”

The six factors that go into that test are:

  1. Opportunity for Profit or Loss Depending on Managerial Skill. Basically, does the worker have an opportunity to earn money based on marketing their skills to a wide range of clients, or is their pay and jobs assigned by the company? An employee has their jobs assigned and work extra hours to make more money.
  2. Investments by the Worker and the Potential Employer. Do you buy the computer for your worker or do they purchase their equipment? Does the worker have their own Google account, or do you provide it? If you are investing in the worker’s equipment and tools, then the worker is an employee.
  3. Degree of Permanence of the Work Relationship. Can the worker work for multiple companies like yours? Can the worker turn down an assignment that you require? If the answer is no to either of these questions, the worker is an employee.
  4. Nature and Degree of Control. The Department of Labor has a full checklist for this factor. You are hiring an employee if you:
    1. “set the worker’s schedule;
    2. “supervise the performance of the work;
    3. “explicitly limit the worker’s ability to work for others, or place demands or restrictions on workers that do not allow them to work for others or work when they choose;
    4. “use technological means to supervise the performance of the work;
    5. “reserve the right to supervise or discipline workers; or
    6. “control economic aspects of the working relationship, such as the prices or rates for services and the marketing of the services or products provided by the worker.”
  5. Extent to Which the Work Performed is an Integral Part of the Potential Employer’s Business. The key here is not that the worker is critical to the business, but rather that what the worker does for the company is critical to the company’s success.
  6. Skill and Initiative. Of course, your worker is highly skilled, but does the worker use that skill to generate additional work for themselves, or is it focused on what you want the worker to do? If that skill is used for the position exclusively, you are hiring an employee.

To add more complexity, these are not the only factors that could determine if a worker is an employee or a contractor. That’s why it is important to have an attorney review this aspect before a worker starts at your business.

You can read more at the Department of Labor’s fact sheet here.

Does the new hire have a job description?

Hiring any employee is a critical step for your business. As such, you want to ensure you are as clear as possible about what is expected from the position and the new employee.

That means you need a job description written out for both you and the employee to have the road map for success – and you lessen the opportunity for future legal action.

According to the Society for Human Resources Management, here are the items every job description should have:

  • Job title
  • Classification: Exempt or nonexempt under the Fair Labor Standards Act.
  • Salary grade/level/family/range.
  • Title of the position the person performing this job reports to.
  • When the job description was written or last reviewed.
  • Summary and overall objectives of the job.
  • Essential functions of the job.
  • Knowledge, skills, and abilities needed for the job.
  • Supervisory responsibilities.
  • Work environment: Factors that will affect the person’s working conditions while performing the job.
  • Physical demand of the job.
  • Position type and expected hours of work.
  • Percentage of travel time expected for the position where the travel occurs and whether it is overnight.
  • Required education and experience.
  • Union eligibility.
  • Additional eligibility qualifications:
  • Affirmative action plan/equal employment opportunity (AAP/EEO) statement.
  • Other duties: Disclaimer

From an attorney’s viewpoint, the last two are extremely important. Showing that your company is an equal opportunity employer is key to showing you are following federal regulations.

The disclaimer should say the job description can and will change without notice and that it is not a comprehensive list of duties required of the employee. After all, it will take time to review the strengths and weaknesses of the new hire. The job description should change based on this review.

Did the new hire get an offer letter?

Much like the job description, the offer letter is an important part of the onboarding process because it has all the details in writing about what is included in the new employee’s compensation.

It is crucial to have this written in a document as a misunderstanding during the hiring process could cause the job search to start over and perhaps lead to litigation.

Here is what Indeed says should be in an offer letter.

  • Job title
  • Base salary
  • Start date
  • Employment contingencies, such as background checks, drug screenings, reference checks, I-9 forms, etc.
  • At-will statement
  • Description of job responsibilities
  • Manager/supervisor name and title
  • Workplace location and expected working hours
  • Additional compensation potential, such as bonuses, profit-sharing, stock options, etc.
  • Employee benefits, such as insurance coverage, 401(k), paid time off, etc.
  • Offer letter expiration date

While the offer letter is not a contract, per se, it can be used in litigation and should always be reviewed or written by an attorney.

Does the new hire require an employment contract?

In Florida, an employment contract is not required for any employee. Florida is an at-will work state, meaning a company can fire an employee at any time for any reason that is not illegal. Of course, the employee can quit for any reason without punishment too.

That said, for many positions, particularly management or highly skilled employees, an employment contract is encouraged to give both the employee and the company the confidence to work together.

When there is competition for an employee, like a physician or an engineer, the employment contract gives the employee confidence to work for your business. Likewise, it helps give the company confidence that an investment into that employee won’t be wasted by the employee leaving for a competitor.

Plus, if you own a company with a lot of intellectual property or trade secrets, you’ll want an employee contract to manage the control of your IP.

The job description and the offer letter cover the employee’s tasks at the company and those should be included in the employment contract. More importantly, however, is that the employment contract covers what happens at the end of the employee’s time at the company.

Here are a few questions to consider:

  1. What are the reasons that an employee can be terminated?
  2. If you need to terminate the employee, what will be the severance package?
  3. If the employee decides to leave early, how does the employee compensate the company for any investment in training or continuing education?
  4. What will be the punishment if trade secrets or intellectual property is shared with a competitor, basically non-disclosure language?
  5. Can the employee leave to work immediately for a competitor? The enforceability of non-compete clauses has been involved in legal proceedings, but, as of now, they are legal.
  6. Who owns the work product of the employee? This is particularly important for creative positions, like graphic designer.
  7. What would be the venue to mediate any disagreements to help prevent litigation?

Understand, that the employment contract also binds you and often makes it more difficult to fire a bad hire, but by having this contract, there should be little disagreement on the processes to end an employee’s time at your company.

The attorneys at The Orlando Law Group can help make sure your business in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida are ready to hire great employees and make their onboarding and exit much smoother.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

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Budget Busted from the Holidays? Let’s Work to Clear Those Debts

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Even before the holidays, credit card defaults were rising significantly. A June 2024 report showed that the year was on track to have the highest default rate in more than 12 years.

That takes you back to the Great Recession.

Economist Sean Snaith discussed this issue at the Seminole County Chamber’s Good Morning Seminole, specifically mentioning how inflation has risen, but wages have not followed suit.

Unfortunately, most people try to maintain their lifestyle by using credit cards without cutting expenses. While this may be a short-term fix, it is unsustainable in the long term, especially as prices continue to rise.

For many people, the holidays pushed their finances over the edge. After all, American consumers spent nearly $1 trillion in November and December, up nearly four percent from the year before.

If you are someone seeking financial relief, the attorneys at The Orlando Law Group can work with you and your debtors to help put you on the right path.

Filing for bankruptcy protection is an option

One thing to be clear: There is no shame in filing for bankruptcy protections. After all, President Donald Trump has repeatedly utilized the bankruptcy code throughout his career.

While he has not filed for personal bankruptcies, his businesses have filed for protection under the bankruptcy code six times over his career. In each circumstance, Trump was able to reduce his debts and move on to build his businesses stronger.

The important aspect of this is not about Trump’s business acumen, it is about how there shouldn’t be a stigma about filing for bankruptcy protection. Too often, things happen outside of our control, or we make a series of bad choices like most people do.

The entire purpose of the country’s bankruptcy code is to help businesses and individuals restart their lives when these things happen. There were more than a half million filings for bankruptcy protection in 2024.

If you’re at the point where you simply cannot pay your bills, it is OK to look at bankruptcy protection as a way to start over.

Here are five reasons you should look at filing for bankruptcy according to Debt.org.

  • Creditors are suing for debt payment.
  • Your home is in danger of foreclosure.
  • The only way to pay for necessities is with a credit card.
  • You’re using one credit card to pay another.
  • You consider borrowing from a 401(k) account to pay bills.

If any of those items are happening to you, please reach out to The Orlando Law Group immediately!

Will I have to return my kids’ Christmas gifts?

Unfortunately, the answer is a definitive maybe, and in some cases, it might be determined by what you bought and what type of bankruptcy protection you seek.

If you file in the first quarter of 2025, your holiday spending will certainly be reviewed.

It is simply not a good look to purchase 75-inch flat screens for every room of your house and file for bankruptcy a week later. Similarly, if you took a trip to Europe to celebrate Christmas in Paris, it looks like you were extravagantly spending this holiday season.

And many people bought new cars recently. That’s a definite red flag, particularly if it is a high-end car.

The courts may not take too kindly to that type of spending.

However, if you spent roughly the same amount on the holidays as the year prior and then lost your job or some other hardship happened, then you may get a bit of grace from the trustee. You still may need to liquidate a lot of assets, but the scooter you bought your kid might be spared.

Chapter 13 can help protect assets

If you are concerned about having to sell assets, you should look at Chapter 13. This part of the bankruptcy code is for individuals, and those who are self-employed, and have assets valued at less than $2.7 million.

In this chapter, there is no liquidation of assets. Instead, a repayment plan is developed that helps you repay many of the debts over a three- or five-year period. During that time frame, you cannot take on new debt, but you can keep your house, your car and the bike.

That plan must be agreed to by your creditors too. They will be allowed to question you with the courts’ oversight. However, they will not be allowed to chase after the debt through collections. If you are in the middle of a foreclosure, that will stop throughout the repayment plan.

As long as you stay on the plan, which is critical. A failure to make a payment can end the protections outlined in the Chapter 13 bankruptcy code.

Even worse, the trustee may convert your bankruptcy filing to seek protection from Chapter 7 of the bankruptcy code.

Chapter 7 is a fresh start without future payments

If you are looking to start over with a mostly debt-free start, Chapter 7 may be the choice you would like to make. However, understand that most of your assets will be sold with the proceeds being used to pay back debts.

There are some exemptions to the liquidations in federal court, like the ability to keep $1,875 for jewelry. For the most part, you may have to sell any of the following according to Bankrate.com:

  • Artwork
  • Collections
  • Houses
  • Investment Properties
  • Jewelry
  • Land
  • Savings and investment accounts
  • Vehicles
  • Other miscellaneous items of value

Bankrate.com provides a good look into how your assets are affected by liquidation in Chapter 7 filings. While you may need to sell your prized possessions, you won’t have much debt after the case is discharged.

Of course, there are many other ways to help manage your finances and get out of debt. You could take a consolidation loan or ask your credit card companies for a payment plan with a reduction in the principal. You can also look to sell some of your assets on your own to help pay for your debts.

Either way, the process of recovery after driving up your debts can be long and difficult. But it’s nothing to be ashamed of as it happens to so many people all the time.

The attorneys at The Orlando Law Group can help individuals and businesses in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida determine the best option for restructuring debts.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

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Want to be a Trustee? Here is what you need to know!

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One of the best ways to protect your assets after your death is the creation of a trust.

These legal entities help protect your assets and distribute them how you want them distributed. There are no questions about who gets what, and your estate can often eliminate substantial tax burdens. Everything is kept private, so there is no public record of the distributions, although there must be an annual accounting of the beneficiaries.

There are also many different types of trusts, including one for your pets!

But a key part of creating all trusts is designating the trustee, the person who controls the assets and distribution of the trust after your death. The trustee can be just about anyone you choose, but they should understand what is involved – and it is not easy.

Of course, the attorneys at The Orlando Law Group can work with you on creating a trust and work with the trustee to ensure that the trust is following the directives you put into the trust.

Here are a few roles of the trustee.

  1. Giving appropriate notice: Under the Florida Trust Code (Sections 736.0101-736.1301), the trustee must provide formal notice to the beneficiaries that the trust has been created and that they are involved. The trustee files a Notice of Trust with the county court for the jurisdiction where the grantor died and a Notice to Trust Beneficiaries. This document informs the beneficiaries about their right to account information and other trust materials. The trustee must give notice within 60 days of accepting their duties.
  2. Paying final expenses: Trustees will be responsible for using trust assets to pay for any final expenses, including burial and funeral costs. They will use funds specifically set aside in the trust to pay these bills, along with any costs of setting up the trust.
  3. Setting up the trust: Setting up the trust requires four main actions.
    1. Deposit the original will with the probate court. The trustee must locate and present your will to the county probate court within ten days of the death.
    2. Order death certificates. Death certificates are obtained from whoever is handling the final arrangements, such as a funeral home. They are used for securing payments from insurance policies and ending liabilities.
    3. Review the terms of the trust. The trustee will review the conditions and fulfill your wishes within the terms of the trust. This is when working with a trust administration attorney can be extremely valuable.
    4. Get a tax number for the trust. To pay taxes, the trustee will need to request an Employer Identification Number (EIN) from the IRS. They can then manage the trust as a business entity and conduct its financial business.
  4. Gathering and protecting trust assets: The trustee will take control of all the trust’s assets, including compelling any former trustees to release control. The trustee assumes a fiduciary duty to maintain, protect, and invest the assets impartially and prudently for the good of the beneficiaries and the trust itself. Protecting assets involves paying outstanding taxes, bills, and mortgages. The trustee will file tax returns for the trust and provide an annual accounting to beneficiaries to demonstrate their good faith management.
  5. Overseeing transfer of non-trust assets: Not everything you leave to your heirs will be part of the trust. The trustee will be charged with ensuring all property and money is successfully transferred to the intended recipients, even when it is not part of the trust. Trustees should oversee the transfer of items such as the following:
    1. Jointly-owned property. When an asset is owned jointly with another person with the right of survivorship, that property automatically transfers to the surviving owner without the need for probate.
    2. Pay-on-Death and Transfer-on-Death accounts. These financial accounts will go directly to the designated beneficiaries.
    3. Life insurance benefits, Life insurance proceeds will pass to the designated beneficiaries without probate.
    4. Retirement accounts. Like life insurance policies, IRAs and 401(K) accounts are paid directly to their beneficiaries.
  6. Resolving outstanding debts and liabilities: The trustee will identify all liabilities and claims against the estate that are part of the trust at the time of death. They will pay those that are legitimate and any that arise after the Notice of Trust publication. Understanding when a claim is legitimate and when it is not can require experienced guidance from a trust administration attorney.
  7. Distributing assets: Some trusts call for full distribution of all assets within a short period. Others are created to provide funds and investment growth over many decades to support the beneficiaries. Regardless of the terms, the trustee must make distributions at the intervals dictated by the trust conditions. They will continue to do this until the trust terms are satisfied or until they hand over duties to a new trustee.

How can I make sure I’m doing what I need to do as a trustee?

Administering a trust is very complicated, just like any part of executing an estate. According to Florida estate planning law, trustees must “administer the trust in good faith,” meeting the requirements of both the trust and the law.

Trusts are intended to avoid probate and excessive tax liabilities for the beneficiaries, but they require significant effort from the trustee.

Trustees are responsible for collecting and managing all the trust’s assets. They may need to initiate business succession plans, distribute personal assets, transfer funds among accounts, and convey titles for real estate and vehicles to their respective recipients. These actions involve contact with numerous government agencies and many hours of work.

Here are a few duties required of any trustee.

  • Duty of impartiality to follow all the trust’s terms, distributing assets to the beneficiaries equally.
  • Duty to diversify and grow the trust’s investments for the best interests of the beneficiaries. If you choose to delegate these decisions to an investment firm, you will need to select a trustworthy institution.
  • Duty of good faith to make decisions serving the best interests of the trust and its beneficiaries in situations that are not covered under the trust’s terms

The attorneys at The Orlando Law Group can help you set up a trust or act as trustee in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida, along with all aspects of estate planning.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

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Five Resolutions for Your Business in 2025

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The new year brings significant opportunities for businesses. For many, it’s time to reset and look forward, examining the company goals and seeing what steps can be taken to meet and exceed their annual goals in 2025. For others, it is a time for reflection, a look back at the previous year to see what went right and what went wrong and how to change course, if needed.

From a legal standpoint, there are certain things the new year brings a great opportunity to review. Hopefully, everything on this list is already checked off, but if you’re looking for a New Year’s Resolution for your business, here are five ideas that can be completed fairly quickly.

  1. Review your business structure and make sure you have the right documents for that structure.
  2. Check to make sure your contracts are truly being fulfilled.
  3. Resolve any outstanding disputes.
  4. Complete performance reviews for employees and contractors.
  5. Develop or finish your exit plan.

The attorneys at The Orlando Law Group can help you meet these resolutions quickly. Just like the resolution so many people make to join a gym, the first step is reaching out. We are here to help.

Resolution No. 1: Review your business structure and make sure you have the right documents for that structure

Companies often ebb and flow. They evolve. They change how they are operated and revise their missions and goals.

Too often, however, the company’s original business structure stays the same.

There are so many different types of business structures, from a Limited Liability Company to a B Corporation and so much more. Maybe it is time to create an ESOP or move from a partnership to a sole owner.

The important thing is to talk with your lawyer and accountant to ensure your company is structured in a manner that provides you the most financial benefits, along with the most legal protections.

Every company is different, making it difficult to say all the reasons why companies are structured in specific ways. That’s why it is a good time to dig in and review your company’s goals.

But here are a few questions you can ask:

  1. If you were to get sued, how damaging would it be to the owners of the business personally?
  2. How many employees will you add over the next few years?
  3. Are you looking for investment this year or did you start bringing on investors in the past year?
  4. What are the goals of each of the partners over the next few years?
  5. Are there expansion plans for your business to add new locations?
  6. What are your exit plans? (See resolution No. 5.)
  7. How have tax laws changed since you started the company?
  8. Are you thinking about starting a new line of business with a new product or service?
  9. How extensive is your use of 1099 contracted workers?
  10. Are you thinking about offering your goods and services in a different state?

The answers to these questions all impact on how your business is legally structured.

During this review, you might find the current structure is the right structure for your business. However, if you’ve been in business for a while, it would be time to review all of the documents for your business.

After all, laws and regulations change. There may be new requirements you are unaware of. There may be new paperwork required from state, local and federal governments. All of this can impact your business and, if you have outdated documents, you could be subject to fines and penalties.

It is a fairly simple step to review your structure and your company’s documents, but not doing so can have significant financial repercussions in the future.

Resolution No. 2: Check to make sure your contracts are truly being fulfilled

When you enter into a contract with a vendor or a supplier, there is always a set of terms, including the services being provided. This is the outline of how the relationship works.

Over time, it is common for those responsibilities to slip or change. Maybe billing is a bit different than what was outlined. Maybe a new service or product was added to the list, or maybe something has proven to not be productive.

None of that necessarily means that the vendor or supplier is doing a bad job or not fulfilling the terms of the contract. In many cases, changes to the terms are agreed by both parties.

However, the contract needs to reflect the current state of the relationship to prevent any sort of legal issues down the road in case the relationship starts turning for the worse.

If there have been changes to the relationship, it is a good time to rework any contracts that need to be changed to accurately reflect what is being provided and any other aspects of the contract.

Of course, if a supplier’s or vendor’s work has not been to your satisfaction, a review of your contracts could be a good opportunity to work with the company to improve their performance – or end the relationship. (See Resolution No. 4)

Just make sure to follow the terms of the contract to end the relationship in a way to avoid any legal issues. The attorneys at The Orlando Law Group can assist with that.

Resolution No. 3: Try to resolve any outstanding disputes

Having a dispute with a customer, a vendor, a supplier or anyone else can be costly. Legal fees add up, but what happens if state regulators become involved? How much business will you lose when a dispute is taken to social media? How much productivity will you lose while focusing on a dispute?

It is much better to resolve disputes as quickly as possible and do everything you can to prevent disputes from happening.

Unfortunately, that cannot be 100 percent possible, so use the new year as a way to try to make a fresh start.

Of course, that doesn’t mean you capitulate to the other side of the dispute or that you compromise your morals or integrity. What it means is that now is a good time to see if there is a compromise or a way to satisfactorily resolve ongoing disputes.

Every dispute is different and there simply may not be an option to bring about a resolution, but your business will be healthier and more productive if you can find a way to end any dispute.

Resolution No. 4: Complete performance reviews for employees and contractors

Every large corporation has a formal process for employee reviews. There’s a reason for that. Holding performance reviews can help prevent disagreements and can help employees grow.

For many small businesses, where the owner and the employees work closely together, performance reviews can often be an afterthought. After all, the thought is that since the employee/owner relationship is close, the employee would share them immediately.

Also, if the employee hasn’t said anything and is overperforming, it is human nature to think that everything is OK and that a formal performance review will only cause issues.

Unfortunately, most employees will not willingly share their feelings of being disgruntled or unfulfilled. That leads to a surprise when the employee decides to take another job paying them just a little bit more, costing the business productivity to train a new employee.

Similarly, many businesses don’t have performance reviews for their contracted workers. After all, they are bound by the terms of a contract, you should have less control over the contractor’s overall performance and the termination of a contract shouldn’t have as big of an effect on the business.

In both cases, it is always better to have a performance review to find out if there are any issues, what can be changed in the relationship to make it better and to learn the goals of the contractor or employee.

According to Harvard Business Review, here are a few things to consider when approaching the annual performance reviews for employees and contractors.

  1. Convey your positive intent
  2. Describe specifically what you have observed
  3. State the impact of the behavior or action
  4. Ask the other person to respond
  5. Put regular follow-ups on the schedule

By ensuring you have completed these reviews as the calendar turns, your business should be more productive throughout the next year.

Resolution No. 5: Develop or finish your exit plan

As a business owner, it is not easy to think about life after the business. Sure, you can dream about sitting on a beach with a cocktail during retirement, but for many business owners, their company is part of their personality and certainly a major part of their lives.

Of course, the end might not be retirement. It may be that your goal is to sell the company and start another one with the proceeds. Serial entrepreneurs do this all the time.

It may be that you want the legacy of the company to move forward, but you would like someone else to run the day-to-day operations and you might see that for the company to scale, you’ll need a much different ownership structure.

You also might think about the day when your children will run the business, and you can see them build on your foundation.

The stark reality is that it is very difficult to maintain a business after the original owner leaves or dies. Forbes wrote about a study that showed “sales dipped by 60%, on average, four years after a business owners’ death, and employment at the firms was down 17%. The survival rate of firms where the owner died two years afterward was 20% lower than at similar firms where the owner was living. At the same time the likelihood of bankruptcy rose at firms where the owner passed away.”

That doesn’t need to happen to your business if you ensure your exit plan is complete.

In your exit plan, you’ll need to think about your life goals. You’ll need to think about who will replace you. You’ll need to think about what the company would need to move forward without you. You’ll need to think about your estate plan and how your family would be compensated if you were to suddenly die.

Those are just a few of the questions you will need to ask.

Then you’ll need to set up your exit plan into a formal document and process. There are many, many ways to give your business the best opportunity for success after you leave.

The attorneys at The Orlando Law Group can help you with exit plans and all types of issues in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

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Hold Off On Your Beneficial Ownership Information – For Now

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For the past year, we’ve been working with small businesses to ensure they comply with the Corporate Transparency Act to file their Beneficial Ownership Information before the deadline.

For now, those plans can be put on hold as the courts ruled the entire act overstepped the authority of Congress and states’ rights.

“First, it represents a Federal attempt to monitor companies created under state law—a matter our federalist system has left almost exclusively to the several States. Second, the CTA ends a feature of corporate formation as designed by various States—anonymity,” the judge wrote in his ruling.

Already, most businesses in Florida had an extension to file because of the recent hurricanes, but now, we’re looking at pausing any activity related to Beneficial Ownership Information for the time being.

We discussed much of this previously, but here is a recap of the issue.

What is the Beneficial Ownership Information?

As a recap of the issue, privately owned small businesses, for the most part, do not have to file any sort of public disclosures in the way that companies listed on a stock exchange must do every quarter.

Unfortunately, too many criminals are using fake companies for money laundering and other crimes. It is very difficult to track criminal activity without a subpoena.

That is why, in 2021, the federal government passed the Corporate Transparency Act, hoping to provide more tools for law enforcement to find terrorists, money laundering, counterfeiting and more.

Yes, just like how we take off our shoes at the airport because of an act of terrorism, law-abiding small businesses will now have to file additional information with the government because of criminals.

The law applies to small businesses with fewer than 20 employees and annual revenues of less than $5 million, with some exemptions. That covered more than 35 million businesses!

The penalties for not filing were harsh. According to the federal government:

“The willful failure to report complete or updated beneficial ownership information to FinCEN, or the willful provision of or attempt to provide false or fraudulent beneficial ownership information may result in a civil or criminal penalties, including civil penalties of up to $500 for each day that the violation continues, or criminal penalties including imprisonment for up to two years and/or a fine of up to $10,000. Senior officers of an entity that fails to file a required BOI report may be held accountable for that failure.”

What happens now with Beneficial Ownership Information filings?

At this point, all filings are on hold as we wait to see what further actions the federal government might take.

The government could appeal the decision, but as this bill was passed by a Democratic Congress and the Biden administration, the new Trump administration may decide to not push the case anymore.

Of course, that is speculation, but without any further court actions, the federal government can not enforce the requirements that businesses provide their BOI and certainly can not enact any penalties for not filing.

The attorneys at The Orlando Law Group can help your businesses with all types of issues as we understand business and represent clients in business law and more in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

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The 12 Rules of Office Parties Your Lawyer Says To You

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We don’t mean to sound like The Grinch.

We just want to make sure your holiday office party doesn’t steal the holiday spirit – and ruin your new year with unexpected legal issues.

While most of us want to think of the holiday office party as fun, joyful and a great time to get to know your co-workers, many pitfalls and problems can happen. And the hangover of a poorly planned event can last for years.

The attorneys at The Orlando Law Group can certainly review your holiday party plans but follow the 12 Rules of Holiday Parties and the advice your lawyer gives to you, you should have a jolly good time!

The first rule of office parties your lawyer says to you is to take it easy on the alcohol.

Let’s face it, spiked eggnog goes with the holidays like peas in a pod. However, more issues happen at the office holiday parties with alcohol in the mix than those without it.

This year, you could limit the number of drinks to just two per person. You could also hire a professional bartender trained to spot when an individual has had enough to drink. You could also only offer beer and wine – certainly no shots1

If you want to avoid alcohol entirely, you could also have a holiday party at lunch or provide mocktails instead of cocktails.

Having an office holiday party where the wine flows faster than the cheer can cause any company serious issues after the festivities end.

The second rule of office parties your lawyer says to you is to make it optional not mandatory.

There are a lot of steps to take if your party is mandatory because, as a mandatory event, you are now required to treat it as an actual workday. That means you’ll have to pay for employee time and ensure all other workplace protections take hold too.

If you have an optional party and are careful to not discuss business, you can use that as a defense if things happen to go awry.

The third rule of office parties your lawyer says to you is to keep it religious-free. 

While many people want to have an Office Christmas Party, that can cause serious issues from Title VII which strictly prohibits religious discrimination in the workplace.

It’s best to just have a “holiday” office party as all major religions have a holiday in December – or just make it winter-themed with snowflakes, snowmen and candy canes.

The fourth rule of office parties your lawyer says to you is to stay away from mistletoe and other harassment issues.

If you allow the shenanigans of holiday office parties in the movies at your party, it will turn into a lump of coal for your business very quickly. Under no circumstances can you allow any form of sexual harassment at your company holiday party.

That means the mistletoe over the door is strictly prohibited, even though it’s not a religious symbol, and any sexual innuendoes, unwanted advancements and more will result in an employee being put on the naughty list, otherwise known as termination.

The fifth rule of office parties your lawyer says to you is to provide an opportunity for complaints at the party.

As an owner or a manager, you can try your best to prevent sexual harassment at the office party, but it still can happen. The best way to help with any sexual harassment claim from the holiday party is to make sure your staff knows how to make a complaint.

This system should be available during the party and after the party. Any complaints should be taken seriously and investigated and punishment given if the incident is found to have happened.

Just like at the office any other time, your company and your holiday party should have zero tolerance for sexual harassment.

The sixth rule of office parties your lawyer says to you is to establish a professional dress code.

Another way to try to prevent the party from getting too wild is by establishing a dress code as office attire.

While a person’s dress is no excuse for sexual harassment, reminding people to dress as they would at the office simply reinforces the holiday office party is an extension of the office, not a raging keg party.

The seventh rule of office parties your lawyer says to you is to remind managers they are role models.

Managers have been given their leadership roles for a reason. They are respected by the employees of the company and should be reminded of such before the party.

It’s particularly difficult for someone who has recently been promoted to separate from the way they interacted with co-workers in the past. Just reminding them as management they are held to a different standard can help keep a holiday office party professional.

The eighth rule of office parties your lawyer says is to pay your employees for their time.

While paying employees is not necessary for a non-mandatory party, it can help cover any issues that might arise. For instance, if a manager decides to talk about a company project or a new client, that could be interpreted as work, leaving you liable for potential fines and back pay.

However, by paying employees for their time at the holiday office party, you’re covered from any potential issues that might come up.

Plus, your employees will appreciate the small gesture and may increase attendance.

The ninth rule of office parties your lawyer says to you is to send out your harassment policies before the big event.

Yep, we’re back to those issues with sexual harassment. Trust us, this is the No. 1 issue that happens at a holiday office party, so you want to take every step possible to prevent harassment.

Just a simple email with the harassment policies shows you were proactive and any employee who fails to follow those procedures can not use the excuse they didn’t remember or didn’t know the policies.

The tenth rule of office parties your lawyer says to you is to not question why an employee isn’t there.

When you hold a holiday office party and it is voluntary, you have to make sure that it is truly voluntary. That means you can’t ask your employees why they weren’t there or why they aren’t coming.

Doing so could create the impression that the holiday office party isn’t really voluntary and that by missing the party, the employee could be viewed negatively.

If an employee says they can’t make it, just say thank you for letting me know.

The eleventh rule of office parties your lawyer says to you is to pay for a rideshare for employees.

One of the absolute worst things that can happen at a holiday office party is for an employee to get in a crash while driving under the influence. In some cases, depending on how the holiday party was structured, you could be held liable for damages.

Having a professional bartender and limiting drinks helps, but you do not know how much the employee had to drink before the event – or if there are any other substances, like marijuana, in their system.

The best protection you can provide is to make sure employees do not get behind the wheel after drinking by including in your party budget a free rideshare for any employee to get to the party and home from the party.

Again, your employees will appreciate the gesture.

The twelfth rule of office parties your lawyer says to you is to have a great time celebrating another year of success!

While we have certainly sounded like true party poopers, the most important rule may be the last one we give you.

An office holiday party is a great time to build camaraderie between co-workers. It can build morale at your company and can certainly help improve company results.

So, please, make sure you and your employees have a lot of fun!

The attorneys at The Orlando Law Group can help businesses with all types of issues in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

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Staying Prepared: LGBTQ+ Estate Planning Tips for Changing Times

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With the new administration taking office in January, LGBTQ+ couples across the country are worried their legal marriages might lose their protections that were given in the Obergefell v. Hodges decision and the 2022 Respect for Marriage Act.

Before those decisions, LGBTQ+ marriage protections were a patchwork of state laws and had no federal protections. While some states allowed LGBTQ+ marriages with full rights, others only allowed civil unions or no protections at all.

In addition, the Defense of Marriage Act passed in the 1990s gave federal benefits to only marriages between a man and a woman.

While it is unlikely all of the recent protections will be overturned, it is essential to ensure your estate plans are up to date and clearly state what happens when you die just in case the worst-case scenario happens.

The attorneys at The Orlando Law Group have a long history of working with LGBTQ+ couples before the Obergefell decision and afterward to ensure their assets and wishes are protected regardless of the laws about same-sex marriage laws.

Before Obergefell

For decades, the United States has been working on how it treats LGBTQ+ couples who want to get married.

In the 1970s, after the Stonewall Riots in New York City, there were several key steps forward and backward toward building equality in marriage on a state and federal level.

But it was bleak for couples who didn’t establish estate plans that legally directed the division of assets after death. If there wasn’t a will or trust or any other type of tool for estate planning used, the courts would decide how the assets of the deceased were split.

In many states, including Florida, that meant the surviving member of the couple had virtually no rights to any of the assets if contested by the family of the deceased. It was truly heartbreaking to see story after story of LGBTQ+ individuals watching a lifetime of shared assets being taken away because of the hate of other family members toward the deceased’s lifestyle.

Perhaps even worse was if one person of the LGBTQ+ couple was incapacitated in the hospital. The other half of the couple had no rights unless granted by blood relatives.

However, a legally binding estate plan for LGBTQ+ couples was a way to clearly state to the court the intentions of the deceased and for medical care.

What did Obergefell do?

 Adding to the confusion was that some states – like Massachusetts and Washington – legally recognized an LGBTQ+ marriage whereas some states – like Florida and Wyoming – had statutes preventing LGBTQ+ marriage.

In a straight marriage, if you are married in one state, your marriage is recognized and validated in every state.

But that was not the case with LGBTQ+ marriages. Before Obergefell, if an LGBTQ+ couple was married in Maine and moved to Tennessee, the marriage would not be recognized by the state of Tennessee.

This meant you may not be the first of kin notified in an accident. You could be legally prevented from visiting a loved one in the hospital. The issues were endless.

In 2015, the Obergefell case came to the U.S. Supreme Court. That case came about because Jim Obergefell was prevented from putting his name on his late husband’s death certificate.

Shortly after his husband’s diagnosis of ALS, they traveled to Maryland and were legally married in that state. However, they lived in Ohio, where same-sex marriage was still illegal.

The case relied on the 14th Amendment, passed to give protections to African Americans after slavery. That amendment stated:

No State shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws.

 The U.S. Supreme Court agreed and ruled that an LGBTQ+ marriage in one state was legal across the country, just like a marriage between a man and a woman.

However, the federal government still didn’t fully recognize LGBTQ+ marriages.

How did the Respect for Marriage Act impact LGBTQ+ marriages?

In the 1990s, the Defense of Marriage Act was passed and signed into law by President Bill Clinton creating legislation that codified a marriage was between a man and a woman and that LGBTQ+ marriages were not eligible for federal benefits.

Over time and through a variety of legal actions, many of the provisions of DOMA were overturned by the courts and administrative actions.

For instance, in 2013, a court decision gave LGBTQ+ married couples full tax benefits, immigration benefits and military benefits. The next year, the Justice Department gave same-sex couples benefits such as prison visits and the denial of testifying against a spouse.

After the Obergefell decision, it appeared that gay marriage was the law of the land, but after Roe v. Wade was overturned in the Dobbs case, concerns started rising that Obergefell was in line to be overturned, especially after some justices and lawmakers said they thought it should be revisited.

Without the benefits in legislation, it would be easier to reverse progress on rights for LGBTQ+ couples.

The result was the passing of the Respect of Marriage Act in 2022 with bipartisan support. This act officially overturned the Defense of Marriage Act and codified equal rights for marriages of all types by the federal government.

Can we go back to before Obergefell?

 Very quickly, the answer is yes, but it won’t be easy.

First, the court would need to overturn Obergefell to return the issue of marriage to the states, as it did with the Dobbs decision on abortion. There is a key difference between the two cases though.

In the Dobbs case, the court ruled that abortion was not an inherent right as it was not common before the 20th Century. In Obergefell, marriage was determined to be a fundamental right and LGBTQ+ marriage was allowed because of the equal protection clause.

Of course, that decision was a 5-4 decision in a court with a court that had a majority liberal makeup. Today, the court is conservative, so overturning Obergefell is a possibility.

If so, that could allow states to reenact their ban on same-sex marriages, but they would still be legal in many states – and federal benefits would still apply to any LGBTQ+ marriage.

What is unknown, however, is if you were married in Florida from 2015 to today, and Obergefell is overturned, is your marriage still legal? It’s just unclear how far a court would go in overturning the law and we wouldn’t know until the Supreme Court ruled.

There is better news on federal benefits. It takes 61 votes to pass most legislation in the U.S. Senate because of the rules on filibusters. The Respect for Marriage passed with 61 votes, with several Republicans crossing over to vote for the bill.

In the next Congress, it would take several Democrats voting to strip LGBTQ+ couples of their rights – something that would be doubtful to happen.

However, the filibuster rules could also be changed by the Republicans in charge of the Senate, who objected to the change when Democrats controlled the Senate.

It is a possibility and that’s why you need to ensure your estate planning is current and legal.

What to do to ensure an LGBTQ+ marriage is protected

 While we can hope that LGBTQ+ marriage remains the law of the land, it’s best to not let your loved ones’ future be left to hope.

No, you need to take action soon to ensure you have legal protections, such:

  1. A current will that states
    1. how assets are distributed,
    2. how children are cared for after death,
    3. any other provisions that you believe are important, and
    4. instructions for a funeral and burial.
  2. A medical directive that includes who has the right to end life support and who has visiting privileges in the hospital.
  3. Trusts that can provide income for the living partner or children.
  4. Proper titles on houses, cars and other large items.

There are several other aspects of an estate plan that should be looked at to try to ensure protection in case the Respect for Marriage Act and/or Obergefell decision are overturned. While no action is completely immune from new legislation or court rulings, having your wishes in legal documents gives the courts an instruction manual for your final wishes.

While there is nothing imminent on same-sex marriage at this time, it is a possibility change could be coming. Besides, even if same-sex marriage remains the law, estate planning is an essential step for all couples.

After all, if estate planning is not complete, the courts will be forced to guess what couples and individuals want to have after their death, regardless of who you love and marry.

The attorneys at The Orlando Law Group can help LGBTQ+ couples with estate planning, legal protections and more in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

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Only Two Months Left to File Your BOI with the Government

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Over the past year, The Orlando Law Group has been gently nudging you to ensure you file your Beneficial Ownership Information with the federal government.

The countdown clock is almost to zero for you to file this information. If you don’t, you could be subject to significant fines and possible criminal charges as this is about protecting the country from significant criminal activity.

This can be a major issue for small businesses that have fewer than 20 employees and earn less than five million in revenue.

If that describes your company, reach out to The Orlando Law Group today!

The attorneys at The Orlando Law Group can help businesses determine if they are required to file their Beneficial Ownership Information and file all the required documents for you.

We discussed much of this previously, but here is a recap of the issue.

What is the Beneficial Ownership Information?

As a recap of the issue, privately owned small businesses, for the most part, do not have to file any sort of public disclosures in the way that companies listed on a stock exchange must do every quarter.

Unfortunately, too many criminals are using fake companies for money laundering and other crimes. It is very difficult to track criminal activity without a subpoena. That is why, in 2021, the federal government passed the Corporate Transparency Act, hoping to provide more tools for law enforcement to find terrorists, money laundering, counterfeiting and more.

Yes, just like how we take off our shoes at the airport because of an act of terrorism, law-abiding small businesses will now have to file additional information with the government because of criminals.

Who is required to file Beneficial Ownership Information today?

If you are a small business with fewer than 20 employees and annual revenues of less than $5 million, you most likely will need to file.

There are 21 specific exemptions, like companies in the investment and financial realms. Most organizations who file as a 501(c) with the IRS are exempt. And large businesses are exempt.

For businesses that have multiple LLCs, such as a real estate firm that owns multiple properties or a restaurant group with each location a separate entity, this could mean filing a separate Beneficial Ownership Information for each one!

If you have to file each LLC with SunBiz or any other Secretary of State, then each LLC needs to file separate Beneficial Ownership Information.

Do I need to file a BOI if I’m a Sole Proprietor?

Really, the question is about how you are structured. Many 1099 contractors, like an Uber driver, do not have a company that has filed with the Secretary of State. Instead, they may have a business tax ID they use or provide the contracting company with a social security number. They may have a fictitious name.

Those don’t matter.

The only thing that matters to a sole proprietor is if they have filed to form a company with the Secretary of State of the state they are doing business in.

This also does not include individuals who have a professional license they acquired from the state, such as a barber or a physical therapist. If there is not a company created through the Secretary of State, then the individual does not have to file.

Of course, it’s always better to be safe than sorry, so a simple call to The Orlando Law Group can help determine if you need us to file on your behalf.

What happens if a business does not report its Beneficial Ownership Information?

Remember from our first article on this issue, the penalties for not filing are harsh. According to the federal government:

“The willful failure to report complete or updated beneficial ownership information to FinCEN, or the willful provision of or attempt to provide false or fraudulent beneficial ownership information may result in a civil or criminal penalties, including civil penalties of up to $500 for each day that the violation continues, or criminal penalties including imprisonment for up to two years and/or a fine of up to $10,000. Senior officers of an entity that fails to file a required BOI report may be held accountable for that failure.”

Keep in mind, that this is not like filing with the State of Florida, where the fine is relatively small for not filing. This is an effort of the Financial Crimes Enforcement Network division of the United States Treasury.

These are the people who spend every moment looking for criminals breaking the law to protect us.

While the federal government says, “willful failure,” that term could apply to your actions if you “forget” to file or do not realize you need to file. It is still to be determined how that will be treated.

It is certainly not something any business would want to be the test case for. Plus, pay attention to that last line of the government’s warning that says senior officers of the company can be held personally accountable for a failure to file.

The attorneys at The Orlando Law Group can help your businesses prepare for this requirement as we understand business and represent clients in business law and more in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

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Think about using your full lifetime gift exemption today

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For individuals and couples with a high net worth and a significant amount of assets, it is essential that you look at all ways to ensure your estate goes to your heirs and not to Uncle Sam.

After all, at the end of 2025, the 2017 Tax Cuts and Jobs Act, commonly known as the Trump Tax Law, will most likely expire. Along with that expiration is a significant exemption for estate taxes that could be cut in half.

Plus, depending on who is in control of the federal government after the election, the estate tax exemption could decrease even further.

Included in that is a significant reduction in the estate tax exemption, reducing the amount one can pass on to heirs by more than $7 million.

Plus, depending on who is in the White House and who controls Congress, the exemption could be much lower.

One way to help lower the tax burden, allowing your heirs to keep more of your estate is by utilizing the lifetime gift exemption in the next two years.

The attorneys at The Orlando Law Group can work with you to find ways to limit your estate’s tax liabilities, regardless of who is in office.

Why should we act now?

We’ve discussed this in other articles, but it will be very difficult to extend the estate tax exemption past 2025, which is set to sunset at that time.  That is because the exemption is not something easily overturned.

Right now, the lifetime gift exemption is $13.61 million for an individual and $27.12 million for a couple. On January 1, 2026, that number drops back to $7 million for an individual and $14 million for a couple.

Plus, Kamala Harris has said she would like to lower that even further if she wins the November election

The time to act on your estate plan and the transfer of any wealth accumulated must happen soon to ensure you are protected.

How does the lifetime gift exemption work?

The lifetime gift exemption is just like any other gift exemption, except it can only be done once.

Many people are familiar with the annual gift exemption where you can provide your children and their children with an annual gift of $18,000 per individual or $36,000 per couple.

With a lifetime gift exemption, those are no longer allowed. Instead, you are making a one-time gift of up to $27 million to your heirs from one couple.

Of course, you can just write a check, but we do not advise that even if an heir is responsible and an adult. Instead, we suggest looking at establishing a trust that includes specific distribution rules for your heirs.

For instance, a Spousal Lifetime Asset Trust, an irrevocable trust or any of the types of trusts we outline in this article.

Why should I give the full gift now?

While there may be concert concerns about relinquishing so much of your assets at one time. And, to be clear, there is no going back. It is a permanent gift, nonrevocable after it is done.

But look at this graphic from Merril Lynch that shows how much could be saved.

Plus, those assets can still build in value and interest, but the capital gains tax and any income taxes that could be paid in the future from the gift are less than the estate tax.

Of course, it’s also important to carefully decide which assets to put in the estate. Putting an asset that could significantly increase in value could create more tax burden for your heirs.

When do I need an attorney?

When you are giving this type of gift, it is important to ensure the legal documents and requirements that go with that gift are clear and concise – and legal.

The attorneys at The Orlando Law Group can work with you, your financial planner and your accountant to ensure you and your heirs will lose as little as legally possible to the IRS.

The attorneys at The Orlando Law Group can these types of issues in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

 

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Have you considered including SLATs in your estate planning?

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By the end of 2025, the rules about estate planning most likely will be considerably different. That’s because the 2017 Tax Cuts and Jobs Act, commonly known as the Trump Tax Law, will most likely expire.

Included in that is a significant reduction in the estate tax exemption, reducing the amount one can pass on to heirs by nearly $7 million.

Plus, depending on who is in the White House and who controls Congress, the exemption could be much lower.

That said, there are steps you can take now to significantly lower the tax burden on your estate when you pass away. One item you should be looking at is the creation of the Spousal Lifetime Asset Trust or SLAT.

By creating these types of trusts, you can help shield significant assets from the Internal Revenue Service while still utilizing these assets.

The attorneys at The Orlando Law Group can work with you to find ways to limit your estate’s tax liabilities, regardless of who is in office.

Why should we act now?

We’ve discussed this in other articles, but it will be very difficult to extend the estate tax exemption past 2025.  That is because the exemption is not something easily overturned. After all, the law was written with sunset provisions in place.

To overturn the exemption, a new law must be passed by Congress, a virtually impossible task considering how close the majorities are in the Senate and the House of Representatives.

Many groups are working hard to show how the Tax and Job Cuts Act of 2017 helped spur the economy and to convince Congress to eliminate the sunset provisions that were part of that act.

Still, don’t bet millions on that being successful.

The time to act on your estate plan and the transfer of any wealth accumulated must happen soon to ensure you are protected.

What is a SLAT?

Think of trusts as creating a separate bank account for your assets, although it is one that you will not have direct control over. There are very specific types of trusts, each with contractual rules on distributions, taxes, beneficiaries and more.

A SLAT is a type of trust that is designated to have a spouse as the controlling interest of the account. All types of assets can be put into the trust, from cash to insurance policies to real estate.

Once it is set up, the beneficiary spouse can have regular payouts from the SLAT that can be used for nearly anything.

The assets in the SLAT also continue to earn interest, allowing for your assets to grow and not be taxed when you pass away, creating even more transfer of wealth.

Charles Schwalb gave a great example of how SLATs work in this article.

Say Sarah and Neil have joint and separate assets totaling $35 million, which are likely to further appreciate while they’re still alive.

Were they to transfer $13.61 million each into two SLATs benefiting each other, they would be able to exclude the full $27.22 million—plus any future appreciation and income—from their taxable estates while still benefiting from those assets.

They would then have available their remaining $7.78 million in shared assets, plus their SLAT distributions, to support their ongoing income needs.

The earlier you can establish SLATs for your assets the bigger the advantage!

Can we have two SLATs for our assets?

As referenced in the article, a husband and a wife can establish a SLAT for their spouse. However, this can be extremely complicated to avoid specific IRS rules.

One of the best things to do is stagger the establishment of a SLAT. Create a SLAT this month for one spouse and then create the other one six months later.

Then, you can make them different by putting different trustees in charge of the trusts. You can set up different beneficiaries when you die, for instance, one goes to your son and the other to your daughter.

The key here is that you cannot have two trusts that are similar to each other. The IRS will cancel them out, but our attorneys can help set up unique trusts for you and your spouse.

What happens if we divorce?

No one likes to think about the unthinkable when setting up an estate plan. We like to think we will be together forever.

The reality is that when creating a SLAT, you need to take steps to protect any assets in the event of a divorce. One of the toughest aspects of divorcing with a SLAT is the tax implications.

Without taking proper steps to deal with divorce, the spouse who set up the trust continues paying income tax on interest in the SLAT. That’s even if only your ex-spouse can access the funds.

Yes, you can put the procedures into the SLAT’s documents in the event of a divorce, but that is not always easy and may need separate attorneys. And, if each spouse has a unique SLAT of equal value, there may not be an issue.

However, when dealing with a SLAT, it may make sense to draft a postnuptial agreement that clearly defines what happens to all trusts – not just your SLATs – when you divorce.

For instance, you could set up a third-party trustee who can distribute all assets of the SLAT to be divided up as marital assets.

Of course, that wipes out all the tax advantages for your children.

When do I need an attorney?

SLATs and all trusts are extremely complicated legal documents. A wrong step along the way or a poorly worded contract that doesn’t fit your unique situation can cost you and your beneficiaries millions in taxes.

Estate planning is truly a team effort with your financial planner, your accountant and your attorney. Each of those three has very specific roles and responsibilities that come with estate planning.

At The Orlando Law Group, our team of attorneys and advisors can work with your team to handle all legal aspects of your estate plan. After all, an estate plan is a set of legal documents for the courts to understand your wishes for your estate after your death.

The attorneys at The Orlando Law Group can these types of issues in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

 

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Take Advantage of the Estate Tax Exemption Today

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As we look to 2025 with a new president, one of the most pressing topics is what will happen to the Tax and Job Cuts Act of 2017 passed during President Donald Trump’s first administration. Much of that bill is expected to expire in 2026, including several aspects of estate planning.

The biggest change could cost your estate millions of dollars if you do not act now – a significant decrease in the estate tax exemption.

Before the Trump tax law was passed, families did not have to pay estate taxes on roughly the first $6.5 million in an estate. The new law increased that exemption to the 2025 level of $13.6 million.

Without any change, the exemption will go down to approximately $7 million in 2026. That simple change could cost your heirs millions of dollars.

The attorneys at The Orlando Law Group can work with you to find ways to limit your estate’s tax liabilities, regardless of who is in office.

How Does the Election Affect My Estate Tax?

The reality of the situation with the tax law is that it may not matter who is in the White House for this exemption. That is because the exemption is not something easily overturned. After all, the law was written with sunset provisions in place.

To overturn the exemption, a new law must be passed by Congress, a virtually impossible task considering how close the majorities are in the Senate and the House of Representatives.

What do each of the presidential candidates promise?

Trump has promised to make the exemption permanent.

Kamala Harris proposed following the current tax plan proposed in the American Housing and Economic Mobility Act of 2024, dropping the exemption to just $4 million.

However, that bill was introduced in Congress months ago and has yet to have one vote or committee hearing. Unless there is a major change in Congress, a similar fate would most likely happen to any large tax bills introduced with either Trump or Harris in office.

That’s why many groups are working hard to show how the Tax and Job Cuts Act of 2017 helped spur the economy and to convince Congress to eliminate the sunset provisions that were part of that act.

Still, don’t bet millions on that being successful.

The time to act on your estate plan and the transfer of any wealth accumulated must happen soon to ensure you are protected.

What Can I Do Today?

The biggest thing that needs to be done as soon as possible is to put together a full estate plan, including a will, any trusts that can be developed, charitable giving and more.

A high-income individual who will be affected by the estate tax exemption should have done this already. If not, stop reading and call The Orlando Law Group immediately.

If the will is done and the estate plan is complete, it is time to review to make sure you pay as little taxes as necessary under current and future rules.

One of the things you can do is establish legacy charity gifts in your estate plan. These are targeted gifts for your favorite non-profits who can all use your gifts to help others.

After all, do you want the Internal Revenue Service to take your money, or would you rather it go to help children, to help the homeless or help the environment? By having those gifts established in your estate plan, it will lessen the impact of taxes.

Another thing to do is develop and annual plan of gifting to your heirs. For instance, every year a couple can give $36,000 to each of their heirs. It’s not a lot of money compared to the change in estate tax exemption, but it will help lower the taxes on those gifts.

You could also set up a 529 account for your grandchildren’s college education. This fund is tax-free and can be used for a wide range of needs around higher education.

Finally, make sure you transfer assets into a trust. This creates a separate entity that is not taxed while you are alive and only taxed with funds or assets are removed from the trust.

When do I need an attorney?

Estate planning is truly a team effort with your financial planner, your accountant and your attorney. Each of those three has very specific roles and responsibilities that come with estate planning.

At The Orlando Law Group, our team of attorneys and advisors can work with your team to handle all legal aspects of your estate plan. After all, an estate plan is a set of legal documents for the courts to understand your wishes for your estate after your death.

The attorneys at The Orlando Law Group can these types of issues in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

 

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Make Sure to Include a Safety Plan in Your IEP

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Unfortunately, it seems like every day at least one school in Central Florida is locked down by law enforcement because of some threat to the school.

While disruptive to teaching and extremely scary to our students, nearly all of the threats to schools rarely are seen through.

If you are a parent of a child with an Individualized Education Program (IEP) review how the school helped your child during the threat to see if a child’s special needs are being addressed during an emergency.

Was there someone to help a child in a wheelchair when the elevators or stairs were closed?

Was an autistic child providing all the tools and devices they needed?

Who made sure a deaf student knew there was a drill?

If your child has an Individualized Educational Program or IEP, it is truly critical to ensure those needs are taken care of during an emergency.

It quite simply is a matter of life or death for some of our children.

The attorneys at The Orlando Law Group help parents throughout Central Florida work with their schools to develop an IEP and ensure the plan includes instructions on what to do during an emergency.

What is an Individualized Educational Program?

If you have a child with unique needs, you’ve almost certainly worked with your school to build an IEP. These are required by state and federal law to ensure all children receive the best education possible with the least amount of disruption.

For some children, it is as simple as giving extra time during tests or making accommodations on how homework is given.

For other children, it can be significantly more. For instance, for deaf and hard-of-hearing children, a communication plan must be part of any IEP per state law.

According to the Florida Department of Education, an IEP is a document that is designed to meet your child’s unique educational needs. It’s not a contract, but it does guarantee the necessary support and services that are agreed upon and written for your child.

At the least, the IEP must contain these pieces of information:

  • Present levels of educational performance
  • Goals
  • Special education and related services

The state also says the IEP will address the following:

  • Supports and strategies for behavior management, if behavior interferes with her learning or the learning of others
  • Language needs as related to the IEP as outlined in the communication plan
  • Communication needs as outlined in the communication plan
  • Assistive technology devices or services required
  • Necessary accommodations in the general education classroom

You’ll note that none of those bullets or on the state’s IEP checklist found here is any reference to safety, code red drills or emergencies.

It’s up to you to make sure those are included in your child’s IEP.

How do I Have Safety Measures Included?

One of the steps in the process of building a program for your child is a meeting with teachers, administrators and counselors who are all involved in the education of your child.

While educating your child will be the primary goal of the meeting, we encourage all parents to ask about how their child will be taken care of during an emergency.

This is not always a threat of a school shooting or a bomb scare, it’s also what happens if there is a gas leak, a tornado warning or many other situations that can arise.

It should also cover accidents while riding the bus, a much more common occurrence than other emergencies.

Autism Parenting Magazine wrote a tremendous article on how to ensure the safety of your child during an emergency, including a list of questions to ask during your IEP meeting.

Here are a few of them:

  • Who, specifically by name, is responsible for getting my child to safety in an emergent situation?
  • Who, specifically by name, is the backup person if the primary person is unavailable?
  • Does the staff responsible for my child need training and practice? Will they practice with my child? When, where, and how will this practice take place? Who, specifically, will be involved? Who, specifically, will be providing the training?
  • Should there be separate plans for a lockdown, an evacuation, a fire, a tornado? Who, specifically, will be responsible for teaching my child about the different types of emergency situations and how to respond appropriately?
  • How will my child access medications or medical supplies such as personal care, food, headphones, or calming items to keep him or her safe and quiet? If my child uses an assistive technology device to communicate, how/will that be transported with my child or what alternate method of communication will my child temporarily use?
  • Will a “to-go” bag be made up for my child? What will be included? Where will it be kept? Who, specifically, will bring it to my child? Is a separate bag needed for the school bus? Is a copy of my child’s emergency plan included in the kit?
  • Does there need to be separate plans for each location such as the classroom, in communal areas like the cafeteria or playground, or on the bus?
  • Where can I go to locate my child in case of an emergency evacuation?
  • What are some talking points I can use to talk with my child and some ways to practice at home?
  • Does my child know what to do if the teacher’s or supporting adult is seriously injured or dies?
  • Will all emergency plans be in place, staff trained, etc. on the first day that students arrive in the building?

The article suggests many more questions to ask, which is key to making sure your child remains safe.

When do I need an attorney?

In most cases, a school will work hard to ensure your child is safe and is educated to the best of their ability. However, you may not agree with what is being offered and believe the school is not providing the required services in your child’s IEP.

If you do not agree, simply write “Not in agreement” on your child’s IEP and additional steps will be taken. This includes the school or you bringing in experts in this realm to help build the IEP.

That’s when it is important to work with The Orlando Law Group, which specializes in helping parents find success in their child’s IEP. This includes ensuring all protocols for your child’s safety are included in your IEP.

The attorneys at The Orlando Law Group can these types of issues in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

 

 

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Child Support image

Reasons To Increase Child Support in Florida

For many parents, child support is an important part of ensuring the well-being of their children. In Florida, as in many other states, the amount of child support can be modified when circumstances change. Let’s explore what those circumstances are so you can be better informed about when a child support agreement may be modified.

Change in Financial Circumstances

One of the most common reasons an increase in child support is awarded is when a significant change in financial circumstances arises. While temporary changes in income won’t prompt a change, permanent changes will. These can come in the following forms:

  1. Increase in the paying parent’s income: Child support amounts are largely based on the income of the paying parent. A substantial, permanent increase in that income can open the door for a request for an increase in child support from the receiving parent. 
  2. Decrease in the receiving parent’s income: The purpose of child support is to ensure the child is able to receive the care they need. If the receiving parent suffers a significant decrease in income, child support may be increased to make up for the lost income.
  3. Job loss or career change: A parent losing a job or switching careers can lead to a drastic change in their financial situation. These changes in circumstance can prompt a reassessment of the child support arrangement. 
  4. Inheritance or windfall: If either parent receives a substantial inheritance or financial windfall and courts determine that it’s large enough, this change in fortunes may be grounds for increasing the amount of child support.

Additional Child Needs

Children’s needs aren’t static. They require different levels of financial support at various stages of their life. Unforeseen circumstances and other life events can also alter their financial needs. Some situations that may prompt a change include:

  1. Medical expenses: Chronic illness or other ongoing medical requirements can drastically increase the cost of raising a child. These may necessitate an increase in child support.
  2. Educational expenses: During a child’s education,  they may need additional resources for tutoring, special educational programs, or college preparation.
  3. Extracurricular activities: Participation in sports or other activities can be expensive. An increase in child support may be granted to help with those expenses.
  4. Special needs: If a child is diagnosed with a disability or special needs, the additional care and resources required may justify an increase in support.
  5. Cost of living increases: Inflation and other economic factors that increase the cost of living impact everyone. Courts account for that when determining if an increase is warranted. 

Changes in Custody Arrangements

The custody arrangement is another large factor in the amount of child support payment. When this arrangement changes, the child support order can change with it. Some reasons for a change include:

  1. Decrease in parenting time: If the paying parent receives a decrease in their parenting time, the court may order them to pay additional child support. 
  2. Change in overnight stays: In addition to overall parenting time, the number of overnight stays with each parent is also accounted for in calculating child support.
  3. Relocation impacts: If the custody arrangements are modified because a parent relocated, the additional travel expenses for the custodial parent could result in an increase in child support.

Do You Need Legal Help in Florida? Contact The Orlando Law Group

If you’re a custodial parent and any of the changes apply to you, The Orlando Law Group may be able to get you an increase in the child support payments you receive. To find out if you qualify for an increase or for any other questions you may have about your child support or custodial agreements, contact our office today. 

Image Source: New Africa / Shutterstock

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Lane V. Erickson

How to Change Name on Property Title Deeds in Florida

A property title deed is the legal document that defines who owns a piece of property and allows an owner to transfer all or a portion of property ownership to another person. Adding individuals to or removing them from a deed is a legal process that requires you to follow specialized regulations. Failure to follow the right procedures can change the validity of your deed. In most situations, it’s essential to partner with an experienced real estate lawyer to accurately change names on property title deeds in Florida. 

Why Would Someone Need To Change a Name on a Property Title Deed?

A property deed proves ownership of the property and contains important information, including the names of the owners, a legal description of the property, and any conditions or rights that come with ownership. There are several reasons you may need to change a name on a deed. 

  • Marriage or divorce
  • Death of a property owner
  • Inheritance
  • Changing your legal name for any reason
  • To correct existing errors

Laws Around Changing a Name on a Property Title Deed in Florida

Changing a property title deed in Florida requires you to follow specific real estate laws and regulations. Florida Statute Chapter 695.26 defines the requirements for changing a property title deed and officially recording the new deed. House Bill 1419 lists legal requirements that must be followed when recording deeds. Legal requirements you must follow under the statutes include: 

  • The person wishing to change the deed (grantor) must present a government-issued photo identification. 
  • The grantor(s) names and addresses must be legibly printed in the body of the deed. 
  • The deed must be signed by all current owners while in the presence of two independent witnesses and a notary.

Other Things to Keep in Mind when Changing a Name on a Property Title Deed

A property title deed is a legal document that gives individuals rights to ownership of a property or part of the property. Any changes you make are legally binding and can impact how you use your property. As such, it’s essential to keep these considerations in mind when changing a name on a property title deed. 

Reversing the Change Can Be Challenging

Adding a person’s name to a title deed gives them legal rights of ownership. If the relationship changes, you can’t automatically revert the title to its original form. You only have two courses of action to remove an individual’s name from a property title deed: Having the person voluntarily transfer the deed or filing a lawsuit. 

Changing Names on a Title Can Affect Your Taxes

Transferring property may lead to the loss of certain tax exemptions (such as the Florida homestead exemption) for the grantor. In some situations, the transfer may qualify as a taxable gift, requiring the recipient to pay additional taxes. Discussing your unique situation with an experienced real estate attorney from The Orlando Law Group can help you determine the best way to transfer your property without facing unexpected tax increases. 

Adding Names to a Deed Doesn’t Guarantee the Property will be Transferred Upon Your Death

Many people mistakenly believe adding a name to a property deed will ensure the property will be passed to that person upon the original owner’s passing. However, this isn’t always the case. If the deed doesn’t specifically include language regarding your wishes, the property may be awarded in accordance with Florida probate laws. 

Are You in Need of Legal Help in Florida? Contact The Orlando Law Group

If you’re planning to change the names on a property title deed in Florida, it’s a good idea to talk to an experienced real estate attorney from The Orlando Law Group first. Our attorneys can help you understand the details of the process, and help you obtain all the necessary documents before getting started. Contact The Orlando Law Group to learn more about the requirements for changing the name on a deed or to book your consultation.

Image Source: Lane V. Erickson / Shutterstock

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Understanding Service Animal Regulations for Airbnb Hosts in Florida

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Being a host of an AirBNB can be a rewarding business, providing a source of income for investment properties. Of course, there are always hassles with guests over myriad issues.

One thing that is difficult to argue over is service animals.

To be clear, if you are an AirBNB host and try to deny a guest accommodation for a service animal, you could be charged with a crime.

When it comes to service animals, it’s best to let guests utilize a service animal in nearly all cases otherwise you risk serious repercussions.

The Orlando Law Group can help you work through all the regulations – like service animals and other Americans with Disability Act issues – that come with being an AirBNB host.

What are the service animal rules for an AirBNB?

In Florida, any AirBNB rentals are classified as vacation rentals, which puts them under the “public accommodation” category. That means any regulations under the ADA legislation apply to AirBNB.

Federal law prohibits any business offering public accommodation from refusing any service animal from entering an establishment.

In some ways, the regulations covering service animals are relatively strict. According to ADA.gov, “a service animal is defined as a dog that has been individually trained to do work or perform tasks for an individual with a disability.  The task(s) performed by the dog must be directly related to the person’s disability.”

In Florida, the only difference is that a service animal can also be a miniature horse.

While the service animal must be a dog or a horse, there are no certifications, training or any other item that is required to call either a service animal.

How do I prevent service dogs and horses?

In a nutshell, you can’t.

If a guest shows up with a service animal, even without prior notice, you must let them stay, although you can ask two key questions to confirm the animal is a true service animal, according to ADA.gov.

First, is the service animal required because of a disability?

Second, what work or task has the animal been trained to perform?

You cannot request proof they are service animals. You can’t ask to see the animal in action. You cannot ask about the disability the animal is assisting.

However, there are a few things that a host can utilize to ask a service animal to leave. According to Florida statutes, A public accommodation may exclude or remove any animal from the premises, including a service animal, if the animal is out of control and the animal’s handler does not take effective action to control it, the animal is not housebroken, or the animal’s behavior poses a direct threat to the health and safety of others.

A properly trained service animal should not bark, should not be wild, and should not go to the restroom any place it is not supposed to.

Tampa AirBNB Host Charged with a Misdemeanor

Earlier this year, an AirBNB host in Tampa was charged with a crime after forcing a guest with a service dog out of the AirBNB. The host offered the guest a free night stay but wanted the dog to leave.

In that case, the guests contacted AirBNB customer support explaining the dog was a service animal trained to sense seizures. However, AirBNB responded that the owner was highly allergic to pet hair and that the dog needed to leave.

The result was the owner being arrested for a second-degree misdemeanor, “denial of rights of the disabled.”

According to ADA regulations, “allergies and fear of animals are not valid reasons for denying access or refusing service to an individual with a service animal.”

Luckily for the owner, his attorney found a loophole because the host lived in the AirBNB that was being rented out. Thus it was not a fully public accommodation and the ADA laws did not apply. The charges were dismissed.

That sort of arraignment is very rare with AirBNB, though. In nearly all cases, you will need to allow a service animal into your AirBNB without any pet deposit or any other restrictions.

The attorneys at The Orlando Law Group can help AirBNB hosts with these types of issues in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

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