Client Alerts

 

Captive Insurance Companies – If You Haven’t Heard About Them Yet, You Will Soon

"Captive" insurance companies have been around for years and years, but passage of the North Carolina Captive Insurance Act now means that captive insurance companies can be domiciled in North Carolina. And indeed, the North Carolina Department of Insurance is promoting North Carolina as a "no red tape" state for housing captive insurance companies. Initially, captive insurance companies were usually formed outside of the United States, often in the Caribbean countries. Slowly but surely, how ...
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North Carolina Court Rules That North Carolina Fiduciary Income Tax Law Is Unconstitutional – at Least as It Relates to Some Out-of-State Trusts

Recently, the Wake County, North Carolina Superior Court, in an unpublished decision by the Business Court, ruled that N.C.G.S. 105-160.2 was unconstitutional "as it applied" to one of the North Carolina beneficiaries of an out-of-state trust.  Kimberly Rice Kaestner 1992 Family Trust vs. North Carolina Department of Revenue, 12 CVS 8740 (April 23, 2015). A.     Background. North Carolina assesses income tax on the income of an out-of-state trust holding assets for the benefit of one or mo ...
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NC Court of Appeals Expands Guarantors’ Defenses to Payment

A February 2015 opinion of the North Carolina Court of Appeals has again brought to the forefront the issue of whether a guarantor can assert a defense to payment under a guaranty following a foreclosure sale of real property that was previously thought to be available only to a borrower. N.C.G.S. § 45-21.36 provides that when a foreclosing creditor purchases real property at a foreclosure sale and subsequently sues to collect the deficiency, certain obligors may (1) as a defense to payment, s ...
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CONSTRUCTION CLIENT ALERT: North Carolina’s Business Court Enjoins Lien Filing Service Company

You may or may not have heard of Lienguard, Inc., a company that advertises that it files commercial mechanics liens, notices, public and federal bond claims as well as municipal liens throughout the United States. Lienguard was charging a flat fee of $495 for the preparation and filing of a mechanics lien in North Carolina. The North Carolina State Bar took issue with Lienguard's conduct and brought a suit alleging that Lienguard's conduct constituted the unauthorized practice of law. Last m ...
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U.S. Supreme Court Decides Important Case regarding Creditor Rights to IRAs

If your friend inherits an individual retirement account from her mother and later files for bankruptcy protection, is the IRA exempt from payment of creditor claims in her bankruptcy proceeding?  As is often the case, the answer is "it depends." In the case of Clark v. Rameker (decided on June 12, 2014), the U.S. Supreme Court settled an issue that had been debated for a long time. Heidi Heffron-Clark was named as the sole beneficiary of her deceased mother's IRA having a date of death balanc ...
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NCDOR Issues New Directive on Sales Tax of Service Contracts

The North Carolina Department Of Revenue Issues New Directive Outlining When Service Contracts Will Be Subject to North Carolina Sales and Use Tax. Beginning January 2014, sales of "service contracts" will now be subject to North Carolina sales and use tax.  The term "service contract" is defined as a "warranty agreement, a maintenance agreement, a repair contract or a similar agreement or contract by which the seller agrees to maintain or repair tangible personal property."  N.C.G.S. 105-1 ...
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NCDOR Announces Employers Must Collect New Employee Withholding Forms

The North Carolina Department of Revenue Announces That Employers Must Collect New Forms NC-4, Employee's Withholding Allowance Certificate, for 2014.  As we have heard on the news, beginning in January 2014, the North Carolina personal income tax rate drops to 5.8%.  Previously, the North Carolina individual income tax rates were "graduated" and ranged from 6% to 7.75%.  That is the good news. The bad news is that the NC Department of Revenue issued a release on November 12, 2013, advi ...
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For media inquiries, please contact: Erin Molinaro | ekm@crlaw.com