What Does Per Stirpes Mean?

What Does Per Stirpes Mean?

by | Apr 30, 2025 | 2025, Article, Estate Planning

If you have ever completed a beneficiary designation for a life insurance policy or retirement account, you may have encountered the term “per stirpes” and wondered what exactly it meant. Per stirpes is a Latin phrase that means “by branch” or “by roots.” In estate planning—like in wills, trusts, or beneficiary designations – it is used to explain how your assets should be passed on if the person you chose as your beneficiary dies before you. When considering whether you wish to incorporate the term “per stirpes” into your estate planning, it is important that you understand the effect the term has on the distribution of your assets upon death.

Wisconsin statute. § 854.04 defines the term “per stirpes”, as well as other phrases that may be used to incorporate the same distribution pattern. If your will, trust or beneficiary designation calls for property to be distributed to the descendants of a designated person “by representation,” “by right of representation,” or “per stirpes,” this will be the order of distribution:

  1. Your estate is divided into equal shares for each of your deceased beneficiary’s children.
  2. If any of those children have passed away but left children of their own, those children receive their parent’s share.
  3. This process continues down the family line until everything is distributed.

In many cases, incorporating the term “per stirpes” into your will, trust or beneficiary designation can be an efficient way to designate contingent beneficiaries. However, you need to carefully consider whether this distribution pattern follows your intentions.

If the person you designate as primary beneficiary passes away before you, do you want the property to go directly to their descendants or would you prefer the property be distributed to their spouse? Would you want the assets reallocated among the other surviving primary beneficiaries? Are the descendants of the primary beneficiary capable of managing the property, or would they need assistance managing any inheritance they receive?

These are important questions you should discuss with an experienced estate planning attorney, who can help you prepare to the best plan for your family and goals.

Legal Separation V. Divorce

Legal Separation V. Divorce

by | Apr 9, 2025 | 2025, Article, Family Law

Clients often ask what the difference is between a legal separation and a divorce. While the court process for both is similar, the legal consequences of each are significantly different. Below are some of the differences between these two judgments:

  1. Legal Definition and Consequences of Divorce: Divorce is defined as the dissolution of the marriage relationship. Once a judgment of divorce is entered, parties are free to remarry another individual after six months.
  1. Legal Definition and Consequences of Legal Separation: Legal separation does not terminate a marriage. Legally separated couples may reconcile without having to remarry.
  1. Grounds for Divorce and Legal Separation: The grounds for legal separation are that the marriage is “broken.”  Both parties must state that the marriage is broken for a court to grant legal separation. For a divorce, the court must find that the marriage is “irretrievably broken.”
  1. Property Division: Upon judgment of annulment, divorce, or legal separation, the court shall divide the parties’ property and transfer the title accordingly. Property acquired by a spouse by gift remains the separate property of that spouse and is usually not subject to division upon divorce.
  1. Jurisdictional Requirements: For legal separation, a court has personal jurisdiction over an individual after that person has been a resident for at least 30 days in the Wisconsin county in which the action is brought. For divorce, the court must have personal jurisdiction over one spouse, who must have lived in Wisconsin for six months and in the county of filing for 30 days.

There are several reasons why someone might choose to remain legally married, even if they are separated.

  • The marriage may remain intact to continue to receive health insurance benefits from the other spouse. However, some policies may make exceptions for separated couples.
  • The parties may choose to stay married for tax or citizenship reasons.
  • Religious beliefs may prohibit spouses from seeking a divorce, but not a legal separation.
  • Spouses may hope that there is a chance that they will be able to reconcile their marriage and get back together.
  • A legal separation severs the financial relationship between the parties, where they can no longer create marital debt or create marital property.

There are also reasons why a party may proceed with a divorce instead of a separation.

  • They would like to marry someone else and end their current marriage.
  • The chance of reconciliation is very low, and it may be more appealing to eliminate the stress and uncertainty by obtaining a final divorce.
  • If there are other complicating factors involved such as substance abuse or violence, it may be in the party’s best interest to file for a divorce to end the marriage.

Even if the parties are legally separated, they may convert that legal separation into a divorce by filing a motion with the court. Choosing which path to take requires some thoughtful analysis and a determination of what goals each spouse has, and whether or not they are truly interested in ending their marriage at this point, or keeping the door open for possible reconciliation.

If you have any questions on these topics our  skilled family law attorneys would be happy to meet with you.

Permanent Partial Disability and How it Could Affect You.

Permanent Partial Disability and How it Could Affect You.

by | Mar 17, 2025 | 2025, Article, Worker's Compensation

When thinking about workers’ compensation injuries, workers understandably focus on the immediate necessities of (1) getting medical expenses paid and (2) wage replacement for missed work. Medical expenses and wage replacement, also known as, temporary total disability (TTD) or temporary partial disability (TPD) make up two out of the three main workers’ compensation benefits. However, workers need to make sure they are taking advantage of the third main benefit afforded under Wisconsin Workers’ Compensation law: permanent partial disability (PPD).

Because workers’ compensation is a no-fault system, there is no payment for pain and suffering, as there is in normal fault-based claims like auto accidents or slips and falls. That said, Wisconsin’s Workers’ Compensation law does allow for payment for permanent functional loss or impairment caused by a work injury. When an injured worker’s doctor decides that the worker has reached an “end of healing” or “healing plateau,” the doctor may assign a percentage of permanent disability to the affected body part. This rating takes into account the permanent losses the employee will have such as, range of motion, loss of endurance, weakness, pain, and other elements.

This percent of functional disability is determined by the worker’s treating physician. Wisconsin PPD ratings are not required to follow the American Medical Association (AMA) Disability Guidelines. The ratings are left up to the discretion of the treating physician with some guidance from the AMA. Also, there are certain scheduled injuries and surgeries that will qualify a worker for a minimum percentage, e.g. total knee or total shoulder replacement would equal 50% minimum.
In terms of calculating the PPD benefit, the PPD percentage assigned is multiplied by the number of weeks the total body part is “worth” if the body part was completely lost. For example, a shoulder is “worth” 500 weeks, this means if a worker’s entire shoulder was amputated, he or she would be entitled to 500 weeks of PPD. If a doctor assigns the worker, for example, 12% PPD to the injured shoulder, that worker is entitled to 60 weeks of PPD payments (.12 x 500). For injuries occurring after January 1, 2025, the PPD weekly rate is $446. To illustrate, the 12% PPD for a shoulder injury, occurring after January 1, 2025 is worth $26,760 (.12 x 500 x $446).

While PPD benefits are not huge sums of money, especially compared to personal injury awards, these are claims that injured workers need to make sure they are asking their treating physicians about once an end of healing is reached. Even a few percentage points of permanency can provide the injured worker needed compensation during a very stressful period.

If you have been injured at work and have questions, or your work compensation claim has been denied by the insurance company, please reach out to our experienced Workers’ Compensation Attorneys for assistance.

What Landlords Should Know About the Wisconsin Consumer Act

What Landlords Should Know About the Wisconsin Consumer Act

by | Jan 6, 2025 | 2025, Article, Real Estate

Residential landlords in Wisconsin now face liability under the Wisconsin Consumer Act (WCA) following the Wisconsin Court of Appeals’ decision in Koble Invs. v. Marquardt, 412 Wis. 2d 1, 7 N.W.3d 915 (Ct. App. 2024).

The WCA aims to:

  • simplify, clarify and modernize the law governing consumer transactions
  • protect customers against unfair, deceptive, false, misleading and unconscionable practices by merchants.

In the Koble case, the Court found that the landlord violated the WCA by serving a five day eviction notice during the COVID-19 moratorium. Specifically, the landlord attempted to “enforce a right with knowledge or reason to know that the right does not exist” in violation of Wis. Stat. § 427.104. Penalties for WCA violations can be severe, including the payment of attorney’s fees.

Additionally, the Koble Investments decision found the landlord violated Wis. Stat. § 704.44, which voids rental agreements that contain certain lease provisions.

Including any of the following provisions in a residential lease will make the lease void and unenforceable:

(1) Allows a landlord to do any of the following because a tenant has contacted an entity for law enforcement services, health services, or safety services:

(a) Increase rent.

(b) Decrease services.

(c) Bring an action for possession of the premises.

(d) Refuse to renew a rental agreement.

(2) Authorizes the eviction or exclusion of a tenant from the premises, other than by judicial eviction procedures as provided under chapter 799.

(3) Provides for an acceleration of rent payments in the event of tenant default or breach of obligations under the rental agreement, or otherwise waives the landlord’s obligation to mitigate damages as provided in Wis. Stat. §. 704.29.

(4) Requires payment by the tenant of attorney fees or costs incurred by the landlord in any legal action or dispute arising under the rental agreement. This subsection does not prevent a landlord or tenant from recovering costs or attorney fees under a court order under chapter 799 or 814.

(5) Authorizes the landlord or an agent of the landlord to confess judgment against the tenant in any action arising under the rental agreement.

(6) States that the landlord is not liable for property damage or personal injury caused by negligent acts or omissions of the landlord. This subsection does not affect ordinary maintenance obligations of a tenant under Wis. Stat. §. 704.07 or assumed by a tenant under a rental agreement or other written agreement between the landlord and the tenant.

(7) Imposes liability on a tenant for any of the following:

(a) Personal injury arising from causes clearly beyond the tenant’s control.

(b) Property damage caused by natural disasters or by persons other than the tenant or the tenant’s guests or invitees. This paragraph does not affect ordinary maintenance obligations of a tenant or assumed by a tenant under a rental agreement or other written agreement between the landlord and the tenant.

(8) Waives any statutory or other legal obligation on the part of the landlord to deliver the premises in a fit or habitable condition or to maintain the premises during the tenant’s tenancy.

(9) Allows the landlord to terminate the tenancy of a tenant based solely on the commission of a crime in or on the rental property if the tenant, or someone who lawfully resides with the tenant, is the victim, as defined in Wis. Stat. §. 950.02 (4), of that crime.

(10) Allows the landlord to terminate the tenancy of a tenant for a crime committed in relation to the rental property and the rental agreement does not include the notice required under Wis. Stat. §. 704.14.

The landlord in the Koble case violated § 704.44(10) because the rental agreement allowed the landlord to terminate the lease for a crime committed in relation to the rental property without providing the proper notice.

NOTICE OF DOMESTIC ABUSE PROTECTIONS

(1) As provided in section 106.50 (5m) (dm) of the Wisconsin statutes, a tenant has a defense to an eviction action if the tenant can prove that the landlord knew, or should have known, the tenant is a victim of domestic abuse, sexual assault, or stalking and that the eviction action is based on conduct related to domestic abuse, sexual assault, or stalking committed by either of the following:

(a) A person who was not the tenant’s invited guest.

(b) A person who was the tenant’s invited guest, but the tenant has done either of the following:

  1. Sought an injunction barring the person from the premises.
  2. Provided a written statement to the landlord stating that the person will no longer be an invited guest of the tenant and the tenant has not subsequently invited the person to be the tenant’s guest.

(2) A tenant who is a victim of domestic abuse, sexual assault, or stalking may have the right to terminate the rental agreement in certain limited situations, as provided in section 704.16 of the Wisconsin statutes. If the tenant has safety concerns, the tenant should contact a local victim service provider or law enforcement agency.

(3) A tenant is advised that this notice is only a summary of the tenant’s rights and the specific language of the statutes governs in all instances.

The Court ordered Koble Investments to repay the tenant for all payments that were made under the unenforceable lease as a result of Koble’s violation.

KEY TAKEAWAYS

  • Landlords must not attempt to enforce a right against tenant when they know or should know the right does not exist.
  • Residential leases must comply with Wis. Stat. § 704.44.

Landlords should regularly review their residential leases to ensure compliance with Wisconsin statutes. If you are a landlord and you have any questions, the team of knowledgeable attorneys at Anderson O’Brien, LLP would be happy to assist you in ensuring your leases comply with Wisconsin law.

Understanding Medical Payments Coverage

Understanding Medical Payments Coverage

by | Dec 26, 2024 | 2024, Article, Personal Injury

Medical payments coverage through your automobile insurance is often an overlooked and sometimes misunderstood coverage. Reasonably, consumers are more interested how much coverage they have for liability (if they are at fault), underinsured/uninsured (if someone else is at fault but not sufficiently insured), or collision/comprehensive (how much it will cost to get their vehicle repaired). In terms of premium dollars allocated, medical payments coverage ranks low.

It is important to understand your medical payments coverage because if you are in an accident, regardless of fault, it is often the first “pot of money” that pays for medical treatment. Medical payments coverage is what is known as “no fault” coverage, it pays for medical expenses incurred because of an accident regardless of whether you or someone else is at fault.

  1. What dollar amount you are covered for; the most common medical payments limit is $10,000 per person. However, coverages can range from as low as $1,000 (not recommended) all the way up to $100,000.
  2. You should check your policy to see whether your medical payments coverage is primary or secondary/excess. Most medical payments coverage is primary; that is, medical payments would pay and be used up before normal health insurance starts paying. However, there are some insurers that have their medical payments coverage as excess or secondary. In this scenario, the accident-related treatment would have to be first submitted to normal health insurance, and medical payments coverage would pay what remains, such as any deductible, co-pay, coinsurance, and/or if the treatment was denied by health insurance.
  3. You will want to know by when the coverage must be used. Some policies are written that the coverage must be used within one year of the accident; some policies say use within three years of the accident; and, even some are written that if treatment is started within one year of the accident, then they will cover it for three years from the accident date.
  4. if you receive a settlement or judgment from the at-fault party or their insurer, your insurer, that paid medical expenses on your behalf, may have the right to subrogation/reimbursement for the payments made. Fortunately, all medical payments coverage insurance in Wisconsin is subject to the Made Whole and Common Fund doctrines, which can be used to reduce the amount that has to be paid back to your insurance company out of any settlement/judgment.

As you can see, medical payments coverage is not a simple issue of have it vs. don’t have it. Depending on how much coverage you purchased and how the policy is written will determine how the coverage is utilized after an accident. Of course, contacting and retaining a skilled attorney can help you strategize how to effectively use medical payments coverage to minimize your out-of-pocket expenses after an accident. If you are in a vehicle accident, don’t be a vitcim twice, make an appointment for a free consultation with one of our skilled personal injury attorneys.

Corporate Transparency Filing Deadlines

Corporate Transparency Filing Deadlines

by | Nov 15, 2024 | 2024, Article, Business

Congress passed the Corporate Transparency Act in 2021.  The Corporate Transparency Act and its requirements took effect on January 1, 2024. Under this Act, certain business entities are required to file a Beneficial Ownership Information Report (a “BOIR”) with the U.S. Department of the Treasury. Specifically, such business entities must file BOIRs, including the information for each beneficial owner, with the Financial Crimes Enforcement Network (FinCEN).

When do I need to file?

The deadline is quickly approaching for any business entity that is required to file a BOIR (a “reporting company”). Required reporting companies formed before January 1, 2024 have a filing deadline of December 31, 2024. For any required reporting company formed on or after January 1, 2024 through December 31, 2024, the filing deadline is ninety (90) days after the effective creation or registration date.  The deadline for any required reporting company formed on or after January 1, 2025 is thirty (30) days after the effective creation or registration date.

After the initial filing, a reporting company must file an updated BOIR within thirty (30) days of any change to the beneficial owners. Examples include, if the company is sold, if one owner sells ownership interest to a new owner, if a beneficial owner has a change of address, or if the management of the entity changes.

Who is a beneficial owner?

A beneficial owner includes:

1. An individual who owns or controls at least twenty-five percent (25%) of the company (such as members, shareholders, or owners of parent companies), or

2. An individual who has substantial control over the company (such as senior officers, managers, or important decision makers). In some cases, an individual may be included under both requirements.

Please note that the company applicant must also be included in the BOIR if the entity was formed after January 1, 2024. If the reporting company was formed prior to January 1, 2024, the BOIR does not require the company applicant information. The company applicant is the person who formed the reporting company, such as by filing the Articles of Organization or Articles of Incorporation.

For more information on beneficial owners, the Small Entity Compliance Guide is located at: https://www.fincen.gov/boi/small-entity-compliance-guide

What happens if I do not file?

If your business entity is required to file a BOIR and you fail to complete the BOIR by the deadline or file false or fraudulent information in the BOIR and do not correct such information, you may be subject to civil or criminal penalties including fines and imprisonment.

How do I file?

Instructions for BOIR filings, instructions for obtaining optional FinCEN numbers, and the BOI E-Filing System are located at: https://boiefiling.fincen.gov/

If you have questions regarding whether your business entity is required to file a BOIR, who is considered a beneficial owner of your business entity, or if you need assistance with filing your BOIR(s), please contact the business attorneys at Anderson O’Brien, LLP.

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