Glossary of Legal and Financial Terms

PROBATE

• Death and Guardianship
• To be avoided by TOD, trusts, DPA

GUARDIANSHIP

• Guardian controls the person (Ward)
• Probate court

CONSERVATORSHIP

• Guardian controls the person’s property
• Probate court

DURABLE POWER OF ATTORNEY

• Must say “Durable” in title and text to survive incompetency

– For Medical Care

– For pulling the plug (Mobar.org)

– For Financial matters

LIFE INSURANCE

• Term

– Expires after a set certain number of years

– No guaranteed insurability after expiration

– No cash value

•  Whole life (or permanent)

– Guaranteed insurability for life (premium may increase)

– Builds cash value that you can receive w /0 dying and adds to death benefit

 

Ownership of Property 

TENANTS BY THE ENTIRETY

• Husband and wife only; on death of one, interest automatically passes to survivor
• Creditors of one cannot reach asset
• This is the default for spouses if do not specify ownership type

– Do not let banks or investment houses categorize you as joint tenants

JOINT TENANTS (with Right of Survivorship)

• Decedent’s interest passes automatically to survivor(s)
• Creditor can force sale and liquidation of property and pay non-debtor their share

TENANTS IN COMMON

• Interest passes to decedents of deceased
• Default if do not elect joint tenants

JOINT AND SEVERAL LIABILITY

• ·All parties individually liable for the entire debt (Creditor can go after just one)
  Each part can seek contribution from other persons liable on the obligation

DEEDS

• Warranty

– Guarantees ownership

• Quitclaim

– Conveys whatever interest, if any (Brooklyn Bridge)

•  Special warranty

– Quitclaim whatever interest, if any, but warranty that you have not deeded this interest, if any, to anyone else

 

Business Entities

CORPORATION

• Formed under state law through the Secretary of State
• Limits shareholder’s liability to the amount of the investment (to company assets)
• Has shareholders, board of directors, and officers
• Must report annually to the Secretary of State
• C-corps pay tax at corporate level and then if issue dividends the shareholder pays
  again as dividend income
  • S-corps pass profit and loss, and thus tax, to shareholders

LIMITED LIABILITY COMPANY

• For smaller businesses
• Members (called this instead of shareholders) are owners
• May appoint managers
• No annual reporting
• Limits members’ liability to the amount of the investment (to company assets)

PARTNERSHIP

• Each party jointly and severally liable for all obligations of partnership even if the other partner committed the partnership to the obligation without other partners knowledge
• Taxes pass though like S-Corp
• Unwise

 

Court Structure in Missouri

CIRCUIT COURT

• All Counties in a Circuit (some transgress more than one county).
• Platte is the 6^th Circuit, Clay the 7th Circuit and Jackson the 16^th Circuit

PROBATE COURT

• A special court with dedicated judge for probate matters, but the judge might hear other matters too

SMALL CLAIMS COURT

• Do not need lawyers
• Disputes under $5,000 and under

NON-PARTISAN COURT PLAN

• Judges not elected, but appointed by Governor from a list of three attorneys narrowed by a five person local committee of two attorneys who reside in county elected by the local Bar Association and two citizens who reside in county appointed by governor and chief judge of the court of appeals in that district

– Only Platte, Clay, Jackson, Greene, St. Louis Counties and St. Louis City

– Other counties elect judges

– Query: will elected judge remain impartial or favor their supporters

 

TRAFFIC POINT SYSTEM

8 points in 18 months = 30 day suspension
12 points in 12 months = 1 year suspension

2 points for each moving violation for municipal and county tickets
3 points for each moving violation for Highway Patrol tickets

2 additional points for accidents

o points for non-moving violations and speeding 5 mph and under

• SR-22 Insurance

– Required to receive your license returned after suspension

• DUI I DWI

– Ticket for city

– First offense; approx. $400 in fines, probation 2 years, alcohol school

– Administrative revocation

– 90 days for first time

– 60 can be with hardship

– Hardship license: to and from work and other essentials

Lawsuits

ALLEGE

• To claim that something is true

ANSWER

• The document filed with the court by the defendant responding to the plaintiffs allegations and stating the defenses to the Petition

DAMAGES

• The second element in every lawsuit (the first being liability). The loss, in money, that a plaintiff claims he or she should be awarded.

DEFENDANT

• The person or company against whom a lawsuit is filed

DEPOSITION

• Sworn testimony given in the course of a lawsuit prior to the trial. A court reporter transcribes the testimony. Any plaintiff, defendant, or witness may be deposed. It allows one side to discover what the other side intends to say. Just like court testimony, except it is in an attorney’s office and no judge is present.

INTERROGATORIES

• Written questions submitted by one side to the other, sometimes filed with the court, which must be answered under oath. Interrogatories usually ask specific questions on the facts of the case

JUDGMENT

• The final decision of the court to end a lawsuit

LEGAL ASSISTANT/PARALEGAL

• A person on an attorney’s staff who assists the attorney under his or her supervision in document preparation and information-gathering. Like a nurse in medicine.

LIABILITY

• Legal responsibility, like negligence or breach of contract. The first element in every lawsuit that must be proved against a defendant before the plaintiff is entitled to a judgment.

MOTION

• A paper, filed with the court, which asks the court to make a ruling (Order) during a lawsuit. The motion may ask for final judgment or for intermediary rulings preliminary to trial.

ORDER

• A ruling by the judge on any issue brought up by the parties.

PETITION

• The document filed with the court stating the plaintiffs claim for liability and
  damages

PLAINTIFF

• The person who asks the court to award him/her a remedy (e.g. money damages, an
  injunction, a declaration of rights, or responsibilities)

PLEADINGS

• All the papers filed with the clerk of the court during the lawsuit, usually prepared
  by attorneys.

STATUTE OF LIMITATIONS

• The law which puts an absolute time limit on filing a Complaint (Petition). There are different statutes of limitations for different areas of law. For example, in a case involving bodily injury from negligence occurring in Missouri, this date is 5 years after the date of your injury. There are some exceptions to this law which may allow the filing more than two years after the injury. Always consult an attorney immediately if you believe that you have a claim, and are uncertain as to the statute of limitations for your claim. Your claim is barred after the statute of limitations runs.

SUMMARY JUDGMENT

• Trials are for the judge or jury to unveil the facts. When the facts are not in dispute, but the law is, no trial is needed. The parties stipulate to the facts and then the judge applies the law and may grants a summary judgment without a trial.

 

 

This publication is for informational purposes only, nothing contained within
should be construed as legal advice, nor do any of the foregoing explanations have
any legal binding precedent. This information is provided by the Quitmeier Law
Firm in an effort to assist clients and potential clients in better understanding
common legal and financial terms. The choice of a lawyer is an important
decision and should not be based upon advertisements alone.