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Equine Leasing

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Leasing is a wonderful opportunity for a potential new owner to expose themselves to multiple horses before buying. It can be a rewarding experience for both the leaser/lessee and the horse. Planning ahead in a lease agreement will ensure a smooth transition for everyone involved.

Why lease your horse to someone else?

There are a variety of reasons that owners choose to lease their beloved animal to someone. Often it promotes a sale in the future, the owner is away and would like to keep the horse’s training current, defray costs for later personal use, or as simple as the owner is not ready to sell his/her horse. A person wanting to lease their horse should be upfront and make sure the leasing individual has full disclosure of their intentions for future consideration.

Why lease a horse for yourself?

There are a myriad of reasons for someone to choose to lease a horse; affordability, change in discipline, or ability in the rider and horse. Usually there is a specific reason a person chooses to lease; full disclosure should be given to the owner to assure a cooperative understanding between the two parties. Many leases just require taking over all expenses of the owner. In some cases it is recommended to have a full vet check before leasing a horse from an outside party.

The trainer’s role.

In many cases a trainer will be involved. Their expertise can prove to be invaluable when looking to find a horse to lease or leasing to a potential leaser. They know other trainers, are familiar with the rider’s ability, and often times they will be currently working with the horse in training for current events, or the horse may return to them for future training. It is important to involve your trainer with your decision to move forward; whether leasing the horse to someone or leasing for yourself. Many training pitfalls can be avoided in the future by involving them.

So let’s lease!

Leasing a horse is much like buying a horse except there are not as many people willing to do so; especially from an owner standpoint. It is more than handing off a lead rope a waving goodbye. A formal agreement is imperative between the two parties, this is the lease agreement. Many considerations to this document are important so in the future there are no ramifications for either party involved. It is advantageous to consult an attorney with equine leasing agreements. The amount is nominal and in the end can prove to benefit both parties.

Verbal agreements.

Verbal agreements should never be entered into, someone will not be happy and it can be very detrimental in the long run. The liability issues can be astronomical to both parties involved.

Written agreements.

It’s always best to have your agreement in writing. Considerations in a lease should include but not limited too are; length of contract, minor or major vet care, farrier, show schedules, training schedules, nutritional diet and supplements and insurance. All of these things must be agreed upon as well as a ceiling cap for medical treatment, termination of contract due to one party failing to adhere to lease agreement, or in a mare lease, breeding rights and embryo retrieval.

Sometimes a very loving owner can offer too much input and cause friction between themselves, the lessee and the trainer. Everyone usually means the best, but in this triangle it is just too easy for feelings of intrusion, confusion or miscommunication to happen. It is important to discuss the expectations of involvement with all parties before completing the agreement. Often the parties are just trying to make the transition smoother, but it can feel controlling. Put the parties’ expectations into writing and no one will have hurt feelings in the end.

This may sound like an overwhelming amount of information, that is why you need an equine attorney specializing in all aspects of horse ownership including leasing, that will ensure a smooth transition between all parties involved and a successful leasing experience. I do this, but there are a couple others in the area that do so as well. Find someone you are comfortable to work with and understands the issues.

The post Equine Leasing appeared first on RB Legal - Rebecca Bell.

Why You Should Keep Your Small Business Attorney on Retainer

October 31, 2024
When something in your business happens, you need to be able to address it quickly. You might not have time to call an attorney, set up an initial consultation, determine if you like them, and then move forward on your project. In business, you need to make things happen. That’s what having an attorney on retainer can do for you. What can an attorney on retainer offer? Having an attorney on retainer offers access to all the services the attorney offers, right when you need them. It’s basically like having an attorney on call. The retainer arrangement can be structured to fit your needs, from the duration of the arrangement to the scope and the cost. Services typically offered in a retainer arrangement include:  Drafting contracts, programs, policies, or other documents Negotiating contracts or financing deals Handling all of the legal details of your business, from attending board meetings to conducting follow-up meetings with stakeholders Consistent access to the attorney for advice Freedom to schedule attorney services as much or as little as needed – and it can vary from month to month Who can benefit from having an attorney on retainer? Retainers are most useful for businesses or individuals who need a lot of legal work over a spread out period of time, or need constant legal work but do not have the resources to hire a lawyer full time. Businesses or individuals who find themselves constantly with questions about the law can also benefit from an attorney on retainer. Have a question? Check in with your attorney. Need a document updated? Let your attorney know. Someone presented you with a contract but you're not sure if it's in your best interest? Ask your attorney for their opinion. With an attorney on retainer, you have the benefit of in-house counsel without the expense. You also have peace of mind knowing that if something comes up you have the resources to handle it - and you can get back to your business faster. Contact any member of our team at rb Legal, LLC to learn about how we can provide you sound, legal advice whenever you need it.

How Often Should I Update My Will or Trust?

October 31, 2024
Estate planning is one of those tasks that people generally avoid. It takes some mental fortitude to think about and plan for unknown events. Most every client tell us they feel a sense of relief once their plan is in place. As with anything, the more you do something, the easier it gets. Reviewing and revising your estate plan is important, especially in light of the following events. Legal Matters Depending on your circumstances, you may need both a will and a trust. A will is a set of instructions that are followed when you pass. A trust is a document that creates a protection around things that you own. It becomes effective the moment you sign it and it is useful in estates where there are probate assets, where you have inheritance going to children and you want restrictions, and in tax savings situations. When the tax laws change, it can affect your estate. This may mean that if you don't update your estate plan, you may find that the additional tax burdens fall on a loved one. You may want to take another look at your estate plan if you haven't reviewed it in the past 5 years or so. Impending Windfalls This should be an easy one for most people, especially considering it's a memorable event. If you're about to get a large sum of money, you will need to consider who will receive that money and how. If you're planning to give it to your children, you may want to do so before the assets appreciate (or before they appreciate even more) to escape the gift tax placed on amounts over a certain level (the specific amount adjusts for inflation periodically.) Major Losses Even if your property isn't directly affected during a recession, the interest rates and the declining asset values may impact you more than you think. In some cases, it may work to your advantage, so it's worth seeing what a qualified attorney can do to restructure your finances. This can either be done through documented gifts or through transfers within a family. If you're worried about transferring because it reduces your overall net worth, there are trusts available that can ensure a sustainable income specifically for you in the future. Changes in Relationships You'll need to be quick in changing your estate plan should you want to add or remove someone. Typically there's more than meets the eye when it comes to wills and marriage or more especially unmarried relationships of long duration. Retirement assets, savings bonds and life insurance can hall have an impact on your estate. Joint checking accounts and major purchases can affect the amount you assume someone will get and the amount they actually receive. Divorce especially makes for a complicated situation with estate planning (even with prenups), so it's best to get professional legal advice in this case. Creating an estate plan can be an intimidating and even uncomfortable process, but it doesn’t have to be. We help guide you through the tough questions and even involve key members of your family, if you’d like, in the discussions. For more information on how we can help, call any member of our team at your convenience.

ESTATE PLANNING 102: What is a Trust?

October 31, 2024
You have probably heard of this thing called a “trust.” You may even have a trust. But do you know what a trust is? Merriam-Webster defines a trust as “an arrangement in which someone's property or money is legally held or managed by someone else or by an organization (such as a bank) for usually a set period of time.” A trust is a legal entity created for a specific purpose. It is created by a legal document, called a trust agreement. The trust’s purpose can be something simple like holding property for a specific person or more complex like managing assets for your minor children or a business. It’s a Bucket. A trust is like a bucket. A bucket is used to hold water, rocks, or ice cream. A trust is used to hold money, real estate, and other property. Here’s how it works. One person uses a trust agreement to create the bucket, and then puts his or her property into the bucket. Another person then holds the bucket and follows the instructions in the trust agreement about what to do with the things inside the bucket, such as investing, maintaining, or selling the property. When the trust agreement instructs, that person takes the things out of the bucket and gives it to the person or persons specified in the agreement. The person who creates the trust bucket and puts property into the bucket is called the trustor, the settlor, or the grantor. The person who holds the bucket is the trustee. The person who gets the property from the bucket is called the beneficiary. Sometimes one person can be the trustor, the trustee and a beneficiary. But most often different people or organizations will play the different roles. It’s a Tool. Trusts are useful tools in many different contexts. Individuals use them in estate planning as a means of transferring property from one generation to another without requiring the involvement of a probate court. Businesses use trusts to perform various kinds of business transactions. Non-profits and Foundations use trusts as a means of managing their assets. It’s Beneficial. In the estate planning context, trusts provide several benefits. Three of the most important benefits are privacy, continuity, and control. Privacy . When a trust is used to transfer property after someone dies, the terms of the trust can remain private. If a will was used instead, the terms of the will would be made public through the probate court proceedings. You may not want your nosy neighbor to know the extent or value of your Facebook stock, or that after you died, you gave it to the non-nosy neighbor two houses over. A trust can help keep that information out of the public record. Smooth Transition . You may have assets that need continual management and attention. And you may care for children and others that rely on your financial support. A trust has a trustee or successor trustee in place to manage those assets and to financially provide for those beneficiaries. With a trust, someone is already there and a plan is in already in place in the event that you become incapacitated or die. Control . When a will is used to transfer property at death, the property is divided as specified in the will and then distributed all at once to the people indicated. With a trust, you have much more control over when and how the property is divided and distributed. For example, perhaps you have one child who is not very responsible with money. You know that if she received her inheritance all at once, she would spend it all on fast cars or entertaining friends. Or perhaps you have a child with anxiety who would be overwhelmed by receiving all his inheritance at once. A trust is a way to make sure that your child only gets what he or she can handle, a little at a time. In that way, a trust offers more control than a will does over the process of transferring property at your death. Is a Trust Right For You? With all its benefits, a trust is not necessarily the right tool for everyone. A trust is more expensive to create and maintain than other estate planning options. In the end, however, it is roughly equivalent to the cost of a probate. An attorney specializing in estate planning can discuss your needs and options and help you decide if the trust bucket is the right tool for your estate plan. If you have questions on this, please feel free to call our office and speak to Rebecca or Alexia or set up a complimentary consultation.
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