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Answers by Attorney Lubna K. Jahangiri

Can you use a business line of credit for personal use?: The business is incorporated.
Thank you.

  • Lubna’s answer: Commingling personal and business funds will destroy personal liability protection. Under certain circumstances, If you borrow money from the business, you may want to pass a board resolution permitting such lending by the corp and then sign a promissory note to your corporation. Talk to a business lawyer before you endanger your personal liability protection.

Purchase business as individual or a corporation: My husband and I are purchasing a small business (restaurant). We will change the name and use of the business after purchasing. We have previously registered a corporation for general business purposes. Should we put the corporation as the buyer, or me as an individual? What are the benefits and drawbacks for each?

  • Lubna’s answer: This question is not appropriate for this forum. There are many pros and cons of each approach. You can also explore other entities through which to conduct your business which are less cumbersome to maintain.

CA LLC ownership transfer? How can it be dissolved?: How can ownership in a CA LLC be transferred to another person or another business? Can I give some of my ownership as a gift to a family member? If there are 2 members does the one with the majority ownership have the authority to dissolve it or do we both have to agree?

  • Lubna’s answer: Some LLCs have transfer restrictions. They should be spelled out in your operating agreement. In general, an interest in an LLC may be transferred. There are some formalities that you have to observe such as entering the transfer in a ledger, issuing a membership certificate, if applicable and documenting the transfer. Interest in an LLC is a security with some exceptions, and securities laws must be followed. Disclosures need to be given and claim of an exemption should be filed with the Dept of Business Oversight (as most small LLC interest transfers would qualify for an exemption from registration requirements) Even though the process is not complicated, I doubt that you would be able to identify all the issues involved. I suggest that you hire a lawyer to do it right so you can avoid later problems. It will not cost much.

Answers by Attorney Ivette M. Santaella

Can a Trustee capture bank account assets listed in the trustors trust but did not fund the trust with said assets?: Trustor opened a Revocable Trust. Listed all current assets at that time in the Trust. Only funded the Trust with a piece Mortgage free Real Estate. At the time the trust was filed, Bank Accounts were only in Trustors name. Before trustors death Trustor added another person to the Bank Accounts that were listed. Can the trustee require the living joint account holder access to the funds

  • Ivette’s answer: Hello, If the asset was not placed in the trust, it is not a trust asset. You may want to consult with an attorney to obtain a Heggstad petition wherein you go to court to have the Judge place the asset in in the trust.

How can my mothers sister ask for everything she has if I am the only child and my mother is in the nursing home with dementia? : My mother was admitted to the nursing home with dementia, I have been taking care of her and I am the only child, her sister ask for guardianship while she had my mom on her side, now she is trying to get conservatorship and hasn't done the care taking to begin with, she has petition the court to get all of my moms assets, in Alabama who would usually get these? There is a will but my mom is still living?

  • Ivette’s answer: Hello, It is recommended that you consult with a local attorney who specializes in conservatorships to help you file your petition as to why you should be your mother’s conservator.

Can a commissioner give my sister a restraining order that includes my brother and my niece and my elderly mother that is 80 ye: Years old and does not want to be on the restraining order and my sister has abused the durable power of attourney and stolen over 450,000.00 from my mother and harrased me too the point that because I called aps on her for financial abuse she lied made up stuff to the commissioner to get a restraining order but really useing the restraining order so that I can't see my mother that they have drugged and taken financial advantage of

  • Ivette’s answer: Hello, What is the basis of the restraining order? I would recommend that if you have solid proof that your sister is abusing her authority as your Mom’s agent that you confer with a local attorney.

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