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What Happens When You Don’t Fund Your Trust?

After you work with your estate planning attorney to draft a carefully tailored estate plan, it is usually your responsibility to “fund” the trust.

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What does funding the trust mean?

Funding the trust is simply transferring assets into your trust.

If you have a trust, you will want to put your assets into the trust, by retitling bank accounts, re-designating beneficiaries of life insurance, etc. We walk our clients through the process, but we usually recommend that the clients make the transfers themselves.

If clients fail to make the transfers or fail to title them correctly, the assets will not be a part of the trust.

This means that the assets outside of the trust will still need to go through the probate court. Any assets in your name alone will require probate administration.

Probate administration is costly and can be time consuming. Avoiding probate is one of the main reasons people love using trusts. To fail to fund your trust is unfortunate, in that you will have taken the time to draft your trust, paid for your trust, and then your assets will still have to accrue the costs of probate.

Further, if the assets are not in your trust, they will not follow your wishes that you set out in the trust.

If you are overwhelmed by funding your trust, work with your attorney.

We help our clients understand the funding process and know exactly what they need to do to complete the funding. However, if our clients do not wish to fund their own trusts, we offer funding services.

It is essential to know that your trust is a living document that requires care during your life to get the full benefits of your trust. You need to ensure it is updated to reflect your wishes and assets, and that it is fully funded.

Once you have gone through the process of funding it initially, additional assets are easy to transfer in as you will know what to do and will only need to perform transfers as your assets increase.

Let us know if you have questions about your estate plan or funding your trust.

Contact us today to help you get the right documents in place or to update your current estate plan. We will plan so that you don’t have to worry about your future.

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Rivian stock tanks as it announces $1.3B ‘green bond’ offering [Video]

Rivian (RIVN) shares are sliding today as the EV-maker announced plans for a “green” debt offering.

Rivian says it intends to sell $1.3 billion worth of “green” convertible senior notes due in 2029, with the option to grant an additional $200 million worth of convertible notes to the original purchasers.

In line with Rivian’s ethos as a company (it’s a Climate Pledge signatory and was the first to say it won’t use deep-sea mining for batteries), it intends to use the capital it raises for “green” or environmental purposes.

“Rivian intends to use the net proceeds from the offering to finance, refinance, make direct investments in, in whole or in part, one or more new or recently completed… current and/or future eligible green projects,” the company said in a statement. Rivian said these projects could include activities tied to clean transportation, renewable energy, circular economy (ie, recycling batteries/metals), energy efficiency, and pollution prevention.

Rivian said the green-note offering meets the eligibility requirements as determined by the International Capital Markets Association’s “Green Bond Principles” guidelines.

In its most recent earnings report, Rivian barely reached its production goal for the year but reported an adjusted EBITDA loss of $5.22 billion. With the company forecasting another adjusted EBITDA loss of $4.3 billion for 2023, it’s not surprising that it’s seeking additional sources of funding. Rivian reported it had cash on hand of $12.01 billion at the end of the fourth quarter and expects capital expenditures to reach $2 billion for the year. Rivian is also in the midst of developing its next factory in Georgia, where its next-generation R2 vehicles will be built. Rivian says production of that vehicle will start in 2026.

Indianapolis - Circa August 2022: Rivian R1T Pickup Truck display at a dealership.  Rivian offers the R1T in Explore, Adventure and Launch models.

Indianapolis – Circa August 2022: Rivian R1T Pickup Truck display at a dealership. Rivian offers the R1T in Explore, Adventure and Launch models.

With a long lead time until its next vehicle, Rivian’s cash situation is a key focus for analysts and investors.

“We’re forecasting 2023 cash burn of $5.5B helped by working cap. RIVN guided to a 40% improvement in FCF in 2024 driven by their target of positive gross margins. We est. RIVN will need to raise financing by the end of 2024,” Wells Fargo analyst Colin Langan wrote in a note the day after Rivian’s latest earnings release predicting today’s announcement of a capital raise. Langan currently has an Equal Weight rating on the stock with an $18 price target.

With questions still remaining about how many vehicles the company can churn out in 2023, Rivian’s recent stock volatility may be a regular occurrence without more evidence of production gains and cash preservation initiatives.

Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.

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Where Do Healthcare Breaches Come From?

While we have seen an increase in healthcare data breaches stemming from vendor vulnerabilities, there can be a variety of sources.

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Recent breaches have demonstrated various sources of data breaches.

One source is from vendors and vendor tools.

We have seen a large uptick in vendor cyber attacks, as cybercriminals have found it easier to hack vendors than the healthcare entities directly. Many vendors have less security measures in place than healthcare entities.

A second source of breaches is employees.

Employees wrongly accessing patient charts is a large source of healthcare breaches. Employees can also be a source of vulnerability if they click on phishing links or ransomware.

A third source is analytical tools.

Analytical tools may be used to capture information and perform data analysis on behalf of healthcare entities. However, they may be used by various websites and could violate HIPAA in their collection of protected health information.

How can you protect your practice from the above risks?

First, make sure all of your security is up to date. Protect your own data as much as possible through encryption, firewalls, and more.

You then want to make sure you require adequate protection from vendors through your contracts and business associate agreements. You should also routinely audit vendors and inquire about their security measures.

Finally, you should train your employees routinely and comprehensively on their duties and on potential risks. We often recommend utilizing fake phishing emails as training devices.

We also help our clients ensure that they are protected through their agreements and we provide thorough employee training.

If you have questions or need help with your healthcare contracts, employee training, or security, contact Rickard & Associates today.

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Do you need help updating your Business Associate Agreement or negotiating contracts with third-party vendors? We can help. To contact us about your Business Associate Agreement, your vendor contracts or your other legal needs, call us today.

3 Things You Should Know About Irrevocable Trusts

A trust is an estate planning tool that allows a person to control their assets during their lifetime and make provisions for incapacity and death.

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One thing you should know about irrevocable trusts is that, unlike revocable or living trusts, irrevocable trusts cannot be changed or amended. They are set in stone.

A second thing that you should know about irrevocable trusts is that they have significant advantages, and also unique disadvantages.

Irrevocable trusts are often used as a person advances in age. Once they know that their circumstances are unlikely to change, we sometimes recommend the use of an irrevocable trust for their estate plan.

Why would someone want an estate plan that they cannot change?

Irrevocable trusts offer many advantages. These include:

  • Reduction of estate tax complications and reduction of taxes,
  • protection against creditors,
  • They can utilize special features to build wealth for future generations,
  • They can prevent loss of assets if long-term care is necessary,
  • and more.

However, there are many drawbacks of an irrevocable trust as well. Some of these include:

  • They cannot be changed, so no revisions will be allowed
  • They are very costly
  • A tax return will need to be added each year.
  • There is some loss of control.

The third thing that you should know about irrevocable trusts is that many of the drawbacks can be remedied by careful drafting.

We help our clients decide if an irrevocable living trust is right for them. If it is we find ways to draft around potential issues and downsides, such as putting in language allowing the grantor to replace the trustee if they are not acting appropriately.

Let us know if you have questions as to whether an irrevocable living trust is right for you or your loved ones.

Contact us today to help you get the right documents in place or to update your current estate plan. We will plan so that you don’t have to worry about your future.

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Contact us today with all your legal needs!

Cheaters beware: ChatGPT maker releases AI detection tool – Business News

Matt O’Brien And Jocelyn Gecker, The Associated Press – | Stories: 409116

The makers of ChatGPT are trying to curb its reputation as a freewheeling cheating machine with a new tool that can help teachers detect if a student or artificial intelligence has written homework.

The new AI Text Classifier launched Tuesday by OpenAI follows a weeks-long discussion at schools and colleges over fears that ChatGPT’s ability to write just about anything on command could fuel academic dishonesty and hinder learning.

OpenAI cautions that its new tool – like others already available – is not foolproof. The method for detecting AI-written text “is imperfect and it will be wrong sometimes,” said Jan Leike, head of OpenAI’s alignment team tasked with making its systems safer.

“Because of that, it shouldn’t be solely relied upon when making decisions,” Leike said.

Teenagers and college students were among the millions of people who began experimenting with ChatGPT after it was launched Nov. 30 as a free application on OpenAI’s website. And while many found ways to use it creatively and harmlessly, the ease with which it could answer take-home test questions and assist with other assignments sparked a panic among some educators.

By the time schools opened for the new year, New York City, Los Angeles and other big public school districts began to block their use in classrooms and on school devices.

The Seattle Public Schools district initially blocked ChatGPT on all school devices in December but then opened access to educators who wanted to use it as a teaching tool, said Tim Robinson, the district spokesman.

“We can’t afford to ignore it,” Robinson said.

The district is also discussing possibly expanding the use of ChatGPT into classrooms to let teachers use it to train students to be better critical thinkers and to let students use the application as a “personal tutor” or to help generate new ideas when working on an assignment , Robinson said.

School districts around the country say they are seeing the conversation around ChatGPT evolve quickly.

“The initial reaction was ‘OMG, how are we going to stem the tide of all the cheating that will happen with ChatGPT,'” said Devin Page, a technology specialist with the Calvert County Public School District in Maryland. Now there is a growing realizing that “this is the future” and blocking it is not the solution, he said.

“I think we would be naïve if we were not aware of the dangers this tool poses, but we would also fail to serve our students if we banned them and us from using it for all its potential power,” said Page, who thinks districts like his own will eventually unblock ChatGPT, especially once the company’s detection service is in place.

OpenAI stressed the limitations of its detection tool in a blog post Tuesday, but said that in addition to deterring plagiarism, it could help detect automated disinformation campaigns and other misuses of AI to mimic humans.

The longer a passage of text, the better the tool is at detecting if an AI or human wrote something. Type in any text — a college admissions essay, or a literary analysis of Ralph Ellison’s “Invisible Man” — and the tool will label it as either “very unlikely, unlikely, unclear if it is, possibly, or likely” AI -generated.

But much like ChatGPT itself, which was trained on a huge trove of digitized books, newspapers and online writings but often confidently spits out falsehoods or nonsense, it’s not easy to interpret how it comes up with a result.

“We don’t fundamentally know what kind of pattern it pays attention to, or how it works internally,” Leike said. “There’s really not much we could say at this point about how the classifier actually works.”

Higher education institutions around the world have also begun debating the responsible use of AI technology. Sciences Po, one of France’s most prestigious universities, prohibited its use last week and warned that anyone found surreptitiously using ChatGPT and other AI tools to produce written or oral work could be banned from Sciences Po and other institutions.

In response to the backlash, OpenAI said it has been working for several weeks to craft new guidelines to help educators.

“Like many other technologies, it may be that one district decides that it’s inappropriate for use in their classrooms,” said OpenAI policy researcher Lama Ahmad. “We don’t really push them one way or another. We just want to give them the information they need to be able to make the right decisions for them.”

It’s an unusually public role for the research-oriented San Francisco startup, now backed by billions of dollars in investment from its partner Microsoft and facing growing interest from the public and governments.

France’s digital economy minister Jean-Noël Barrot recently met in California with OpenAI executives, including CEO Sam Altman, and a week later told an audience at the World Economic Forum in Davos, Switzerland that he was optimistic about the technology. But the government minister — a former professor at the Massachusetts Institute of Technology and the French business school HEC in Paris — said there are also difficult ethical questions that will need to be addressed.

“So if you’re in the law faculty, there is room for concern because obviously ChatGPT, among other tools, will be able to deliver exams that are relatively impressive,” he said. “If you are in the economics faculty, then you’re fine because ChatGPT will have a hard time finding or delivering something that is expected when you are in a graduate-level economics faculty.”

He said it will be increasingly important for users to understand the basics of how these systems work so they know what biases might exist.

How Can I Protect My Children in Estate Planning?

Many of our clients have concerns related to their children when planning estates. Concerns can range from making sure they are taken care of financially, choosing appropriate guardians, and more.

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Some of our clients biggest concerns are:

  1. I don’t want my child to blow all the money they inherit right away. We always tell clients the best way to ruin a great kid is by giving them tons of money. We work with clients to put a plan in place to help their children. One way we do this is to stagger their disbursements from a trust at certain ages. We usually allow the child to ask the trustee for money at any time for certain purposes. For example, if a child wanted money to pay for college, they would usually be able to get money from the trust for educational expenses. We work with our clients to alleviate their concerns regarding each of their children.
  2. I want to make sure my child will be cared for if something happens to me. This is almost always the primary concern of parents of young children. It is essential to draft documents and choose who would be the guardian of minor children, should something happen to the parents. We help our clients walk through this process to make sure they are comfortable with the language and guardians. We also help clients set up documents to keep assets in trust for minor children, should something happen to parents.
  3. I want to make sure my children will be taken care of if I die and my partner remarries. While this situation can be difficult to navigate, it is very important to consider and discuss while both parents are alive and well. Draft documents now so that you and your spouse know the plan and have documents in place to protect the children, should a parent retire after the death of a spouse.
  4. My children are no longer minors, but I want to be able to participate in their healthcare decisions if something happens to them. This is a major concern of parents with children away at college. As soon as your children turn 18, it is important to draft healthcare powers of attorney and even financial documents so that parents can still be aware of and involved in their care, should the child become injured or incapacitated.
  5. I want to make sure that my child is still able to do the things that are important to us, if something happens to me. For example, a client takes her child on vacation every year to the same location. If something happened to her, she wanted the appointed guardian to still take her child to their vacation spot each year. We were able to put language in her trust regarding the vacation and discuss this wish with her trustee. We also helped her draft a letter with helpful instructions.

Our clients all have unique concerns regarding their children. We help them tailor their estate plans to protect their children and protect against the concerns they have.

Estate planning requires thoughtful drafting to meet the needs of each individual.

Contact us today to help you get the right documents in place or to update your current estate plan. We will plan so that you don’t have to worry about your future.

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Are You Prepared for Russian Ransomware?

Recently, a health network in Pennsylvania was hacked by a Russian ransomware gang called BlackCat.

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BlackCat attacked a physician practice in Pennsylvania, but did not disrupt healthcare operations.

A ransomware payment was demanded, but refused by the healthcare system.

Sensitive information was accessed and the health system revealed the attack itself.

Is your practice prepared for a potential attack?

Does your staff know how to respond to a demand for ransomware? Is your healthcare data secure.

If not, now is the time to prepare.

Ransomware attacks continue to plague the healthcare system.

You need to make sure that your data is secure and your practice is protected against vulnerabilities.

How can you protect your practice against vulnerabilities?

Test your systems.

Know what security you have in place and make sure it is all up to date.

Look for any vulnerable areas and find out how best to patch them.

Make sure your policies, procedures and plans are accurate for your systems. They need to be truly representative of what actions you will take to protect your practice.

Train your employees on your policies and procedures.

All employees should be familiar with your breach readiness and response plans. Knowing how to act in the event of a breach can save your practice.

Your backups need to be secure to ensure that your data is safe.

If you need help updating your practice and protecting your systems and data, call us today.

If you have questions or need help with your healthcare practice, employee training, or security, contact Rickard & Associates today.

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We publish vital information on health law topics and news every Wednesday and Friday. To get this important information delivered directly to your mailbox, subscribe today!

Do you need help updating your Business Associate Agreement or negotiating contracts with third-party vendors? We can help. To contact us about your Business Associate Agreement, your vendor contracts or your other legal needs, call us today.

Nike sues Lululemon over alleged footwear patent infringement – Business News

Nike sues Lululemon

Glen Korstrom / Business in Vancouver – | Stories: 409129

Multiple media outlets are reporting that global sportswear giant Nike Inc. (NYSE:NKE) is again suing Vancouver-based leisurewear retailer Lululemon (Nasdaq:LULU) for alleged patent infringements.

Reuters reported that Nike today filed documents in Manhattan federal court that said it has suffered economic harm and irreparable injury from Lululemon’s sale of its Blissfeel, Chargefeel Low, Chargefeel Mid and Strongfeel footwear.

Nike has not yet released a public statement on the legal conflict.

Lululemon sent BIV an email to say, “Nike’s claims are unjustified, and we look forward to proving our case in court.”

Reuters said Nike’s lawsuit seeks unspecified damages, and that it alleges that the Oregon-based company’s three patents on issue concern textile and other elements, including one addressing how the footwear will perform when force is applied.

This is the second consecutive January in which Nike has taken court action against Lululemon. Media reports in January 2022 noted that Nike filed documents in the US District Court in Manhattan that accused Lululemon of infringing six patents because its Mirror technology, which lets users target specific levels of exertion, as well as compete with others, and record personal performance, infringe on Nike intellectual property.

Lululemon in July 2020 spent US$500 million to buy Mirror – a New-York-based, in-home fitness company.

Mirror’s marquee product is a device that appears to be a standard mirror, unless it is turned on.

Users activate their Mirror to enjoy augmented reality. A fitness instructor could appear – wearing Lululemon clothing, and ready to guide the user through a workout.

The Mirror could also show videos that include Lululemon representatives, or community events.

Nike is said to be seeking triple damages among other remedies for Lululemon’s alleged willful infringement of patents related to its Mirror product.