Structured settlement

What Is a Structured Settlement?

 

Sometimes when a plaintiff settles a case for a large sum of money, the defendant, the plaintiff's attorney, or a financial planner consulted in association with the settlement, will propose paying the settlement in installments over time rather than in a single lump sum. When a settlement is paid in this manner it is called a "structured settlement". Often the structured settlement will be created through the purchase of one or more annuities, which guarantee the future payments.
A structured settlement can provide for payment in pretty much any schedule the parties choose. For example, the settlement may be paid in annual installments over a number of years, or it may be paid in periodic lump sums every few years.

Benefits of a Structured Settlement

One significant advantage of a structured settlement is tax avoidance. With appropriate set-up, a structured settlement may significantly reduce the plaintiff's tax obligations as a result of the settlement, and may in some cases be tax-free.
A structured settlement can protect a plaintiff from having settlement funds dissipated, when they are necessary to pay for future care or needs. Sometimes a structured settlement can help protect a plaintiff from himself - some people simply aren't good with money, or can't say no to relatives who want to "share the wealth", and even a large settlement can be rapidly exhausted. Minors may benefit from a structured settlement as well, such as a settlement which provides for certain costs during their youth, an additional disbursement to pay for college or other educational expenses, and then one or more disbursements in adulthood. An injured person who has long-term special needs may benefit from having periodic lump sums with which to purchase medical equipment or modified vehicles.
In some situations, it will be better for a severely disabled plaintiff to set up a special needs trust, rather than entering into a lump sum or structured settlement. Any plaintiff who is receiving, or expects to receive, Medicaid or other public assistance, or the guardian or conservator entering into a settlement on behalf of a disabled ward, should consult with a disabilities financial planner about their situation before choosing any particular settlement option or structure.

Potential Disadvantages of Structured Settlements

Some people who enter into structured settlements feel trapped by the periodic payments. They may wish to purchase a new home, or other expensive item, yet be unable to muster the resources because they can't borrow against future payments under their settlement.
Some people will do better by accepting a lump sum settlement, and investing it themselves. Many standard investments will give a greater long-term return than the annuities used in structured settlements.

Selling a Structured Settlement

If you have a structured settlement, you may have been approached by a company interested in purchasing your settlement, or may be curious about selling your settlement in return for a lump sum buyout. About two thirds of states have enacted laws which restict the sale of structured settlements, and tax-free structured settlements are also subject to federal restrictions on their sale to a third party. Also, some insurance companies will not assign or transfer annuities to third parties, to discourage the sale of structured settlements. As a consequence, depending upon where you live and the terms of your annuities, it may not be possible for you to sell your settlement.
Keep in mind that companies which buy structured settlements intend to profit from their purchase, and sometimes their offers may seem quite low. You may benefit from approaching more than one company in relation to the sale of your settlement, to make sure that you obtain the highest payoff. You also want to be sure that the company which wants to buy your settlement is established, well-funded, and reputable - you don't want a fly-by-night outfit to obtain the rights to your annuities but to disappear or go bankrupt before paying you the buyout money. You may have to go to court to get a judge to approve the buyout. It is usually a good idea to consult with a lawyer before entering into an agreement to sell your settlement.

Special Considerations

Any person entering into a structured settlement should be on guard for potential exploitation in relation to the settlement:

Excessive Commissions - Annuities can be highly profitable for insurance companies, and they often carry very large commissions. It is important to ensure that the commissions charged in setting up a structured settlement don't consume an inappropriate percentage of its principal.

Overstated Value - Sometimes, after negotiating a particular settlement figure, the defense will overstate the value of a structured settlement. As a result the plaintiff, in accepting the settlement, in fact obtains a significantly lower dollar value than was agreed upon. Some defendants have nominally paid the full amount of the settlement, knowing that they would later obtain significant rebates from the annuity companies they used. Plaintiffs should consider compariing the fees and commissions charged for similar settlement packages by a variety of insurance companies, to make sure that they are in fact getting full value. A plaintiff may wish to make it a condition of the settlement that the defendant will actually pay the full value of the settlement in setting up the structured settlement, and that any rebates received by the defendant for annuities included in the settlement be payable to the plaintiff.

Self-Dealing - There have been cases where the plaintiff's lawyer is also in the insurance business, and sets up a structured settlement on behalf of a client without disclosing that the attorney is purchasing the annuities from his own business, or is pocketing a large commission on the annuities. Similarly, there have been situations where the plaintiff's attorney has referred the client to a particular financial planner to set up a structured settlement, without disclosing that the financial planner will be paying the attorney a referral fee in relation to the client's account. Make sure that you know what financial interest, if any, your lawyer has in relation to any financial services sold or recommended by the lawyer.

Life Expectancy - It is unfortunate, but many people who receive large personal injury or workers' compensation settlements will have a shortened life expectancy as a result of their injuries. It is important to consider life expectancy in association with any structured settlement, and to consider whether it is appropriate to enter into an annuity where payments will cease upon death. Sometimes it will make sense to insist upon an annuity that pays a minimum number of payments, or one that will pay a balance into the plaintiff's estate, such that the value of the settlement is not lost to an insurance company upon the plaintiff's untimely death.

Using Multiple Insurance Companies - For larger settlements, it often makes sense to purchase annuities for a structured settlement from several different companies, dividing the settlement between those companies. This can provide you with protection in the event that a company that issued annuities for your settlement package goes into bankruptcy - even in the event that one of the companies defaults in part or in full on your settlement payments, you would still receive full payment from the other companies.

Additional Resources

• Selling Your Structured Settlement - The costs and benefits of selling a structured settlement.
• Cash Payment For Your Structured Settlement - What should you consider before selling your structured settlement?

17 Great Business Ideas for 2012

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Intro

Think you need a long time to plan a new business idea? Not quite. As the founders of Startup Weekend can tell you, it doesn't take as long as you might think. The organization conducts 54-hour events where developers, designers, marketers and startup enthusiasts come together to share ideas, form teams, build products and create startups.

"Filing an LLC, pitching to an investor, and creating a 20-page business plan is absolutely the wrong way to go about launching a startup," said Marc Nager, who, along with his co-founders, Clint Nelsen and Franck Nouyrigat, has written the book "Startup Weekend: How to Take a Company From Concept to Creation in 54 Hours" (Wiley, 2011).

Nager told BusinessNewsDaily that the first step toward starting a business is having an idea.

"The first steps are finding a team and validating your idea. Without these two things, you just have dreamers. The definition of a startup is entrepreneurs with an idea in search of a business model. Once you have a team and confirmation that you are solving a real problem and creating real value, then the longer road of building your business begins. The process of actually starting can happen in a matter of days."

Here are a few great business ideas for 2012 that might get your entrepreneurial juices flowing. 
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Home day care

In most places, you don't need a license to run a babysitting service from home if you keep your child headcount below a certain number. With more parents needing to work, offering a home-based child care situation can be a great way to start a business and stay home with your own kids, too.
Dreamstime.com

Yard work

Got rake, will travel? Most landscapers will cut grass, but they don't necessarily do the stuff that most homeowners don't have time to do themselves, such as weeding, planting, leaf raking, snow shoveling, hanging or removing holiday decorations. With little more than some work gloves and a ladder, you could be in business in no time.
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Errand service

In some ways, the recession has made people busier than ever. Between working long hours, cooking more at home and juggling responsibilities, there's a lot that gets left undone. A service that runs errands (including dropping off dry cleaning, paying bills, etc.) requires just a car and cell phone. Start small, do a good job and word of mouth will spread quickly.
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Computer maintenance

Got a tech background? With the proliferation of tablets, smartphones and laptops for every member of the family, there are lots of opportunities to provide private computer services such as anti-virus software installation, desktop cleanups, software downloads and printer hookups.
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Cleaning service

Are you one of those people that love to clean? If so, you may be sitting on a gold mine. Cleaning people who work for themselves can make $30 to $40 per hour. Recession or not, there are plenty of people still looking for a little domestic assistance.
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Energy efficiency consultant

Homeowners and businesses are looking for any way they can to cut costs, but figuring out how to lower energy expenses isn't as easy as you might think. Anyone who has a background in utilities or construction and can advise homeowners or businesses on how to better insulate, install smart meters, reduce water usage, etc., has a valuable service to offer.
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Recycler

Your laptop could be a gold mine. Steel, copper and computer components are all worth more than ever. But, your average homeowner doesn't always know where or how to recycle the stuff they've got. A good local advertising campaign and a pickup truck are all you'd need to start buying or simply offering to remove scrap metal, old computers, electronics, ink cartridges and other recyclable materials. You'll be making a profit and doing the Earth a favor, too.
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Pet sitter

Recession or not, pets are people, too (or so many a pet owner believes). If you love animals, are reliable, organized and trustworthy, there's no shortage of work for you. The more satisfied customers you have, the more quickly your business will grow. Nothing soothes an antsy pet owner more than a good recommendation from another animal lover.

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Organizer

If there's one thing to be learned from the glut of reality shows dealing with hoarding, it's that Americans have too much stuff. And, many junk collectors don't have the time or skills required to organize it all. If you like to organize and create order out of chaos, then starting an organizing business could be for you.

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Virtual assistant

Virtual assistants are all the rage. All you need to get started is a laptop and a good website. A social media presence doesn't hurt, either. If you've got a background in administrative work but want to work for yourself, this might be a perfect opportunity for you. Virtual assistants work remotely and do all the things a business owner or manager doesn't have time to do, such as open and answer emails, follow up with customers, invoice customers or pay bills. All of these tasks and more can all be done from your own home via the cloud.
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Remote bookkeeper

During the recession, many companies cut their employee headcount to the bare minimum. Very few businesses, however, can live without a bookkeeper. But, that doesn't mean they have to have one on staff. If you've got a background in accounting or bookkeeping, you can offer remote bookkeeping services and, in many cases, do most of the work from home.
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Translator

Most businesses can't afford to keep a translator on staff, even though they may need one from time to time. As America becomes increasingly multilingual, everyone from doctors to insurance companies find themselves in need of foreign language speakers to help interact with their customers. If you can speak a foreign language, are organized and can come up with a good marketing plan, you may find you have more work than you can handle.
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Cost cutter

Ever notice how your phone bill seems to creep up ever so slowly and before you know it, you're paying $50 more a month than you agreed to? So does everyone else. The problem is, few people have time to go over their bills with a fine-tooth comb and call and argue with the provider. A cost cutter does this for businesses and can help them save thousands. Cost cutters need an eye for detail and a good sales pitch. Once you've proven your worth to a client, word of mouth will spread quickly.
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Social media consultant

If you're one of those Gen Y types to whom using social media comes as naturally as breathing, you may have a career as a social media consultant . There's no doubt that social media presents an unprecedented marketing opportunity for businesses, but only if they know how to use it. If you can help existing businesses integrate social media into their other marketing campaigns, you should have no trouble making a go of it.

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Copywriter

Anyone with a website will tell you they have one constant need: new content. Search engines favor websites with new, relevant and constantly updated content and most businesses don't have time to devote to generating copy all day. If you've got a background in writing, English or journalism, you might find there's a lot of demand for your services. Between Web content, blog entries and press releases, there's lots of writing to be done.
CreditL: Dreamstime.com

Health insurance consultant

Health care reform means that most businesses will have to offer health insurance in the near future. The problem is that many companies can't afford a full- time human resources person, and dealing with the complicated nuances of health insurance is more than most administrative assistants have time to deal with. That's why more and more companies will be looking for outside services to help them wade through the minutia of health plans and premiums. If you have a background in human resources or insurance, healthcare reform could present big opportunities for you. You don't need to be licensed if you're not selling insurance. A health insurance consultant can simply help wade through the details.
Dreamstime.com

Elder assistant

You don't need to be a nurse to aid the elderly. Many older folks would like to keep living on their own, but need a little assistance with daily chores, bill paying, grocery shopping, etc. With just a little outside help and a daily visit from a friendly caregiver, many can maintain their independence. Families are also happy to find a responsible, reliable person in whom they can trust.

Credit: Laptop image via Shutterstock

Small Business Resource Center

If you're thinking about starting your own business, there are lots of decisions to be made. What kind of accounting software will you use? Will you do your own payroll our outsource it? BusinessNewsDaily's Small Business Resource Center will help you sort through the choices. Visit it here. 

 

Setting Up A Legal Structure For Your Investing Business

Here's my 7 Step Process to Setting Up a Legal Structure for Your Real Estate Investing Business...(It’s secretly simple!)

When I first began learning about real estate investing, I thought for certain I was “putting the cart before the horse” by setting up a corporate structure for my company when I had no revenue or company assets to protect at the time. I quickly learned (from Jeff Watson; an expert short-sale lawyer and resource of mine), that you really can’t do this step too early in your real estate business or in any business venture of your own for that matter. If you are working hard to get it – work hard to protect it!

The main reason for initially setting up a business structure is to set clear parameters that you and your business are operating as two separate entities in the eyes of the IRS. There are many entity structures to choose from (since I am not an attorney nor an accountant, I can’t professionally advise); but I can tell you that I personally set up an LLC.

The 2 Greatest Pieces Of Information I Discovered When I Wanted To Set Up My LLC Was That:

1) You do not need an attorney to do this

2) It does not cost a ton of money or time

These steps today are customized for people wanting to incorporate in the State of Michigan; however, other states have similar processes and you can use these steps as a guideline. I recommend you start with your state’s Secretary of State website since you can usually find quick links to “starting a business”. Even quicker, simply Google “incorporating in (name of your state)” to start.

Here Are The 7 Simple Steps To Get A Legal Structure Set Up For Your Real Estate Investing Business In The State Of Michigan:

1.) Verify Business Name is Available:
Go to the State of Michigan’s Department of Energy, Labor & Economic Growth (DELEG) website and search the Corporation Division Name Division to be sure your desired business name is not currently being used:
http://www2.dleg.state.mi.us/CORPORATIONS/htmldb/f?p=210:1:3618253801012695048

2.) Download Forms:
Go to this link on the State of MI DELEG website and download the following forms:
http://www.dleg.state.mi.us/dms/results.asp?docowner=BCSC&doccat=LLC

Form 900 – Mich ELF Cover Sheet Form 901 – Mich ELF Application Form 700 – Articles of Organization 3.) Pay Registration Fee: Use form 901 - a one page fax-sheet used to get your credit card on file with the state so you can pay for the $50 LLC registration fee via credit card (I opted to do this because I didn’t want to mail payment via a check, which obviously takes longer). This fee can vary widely by state of course. 4.) Verification: You will know that your credit card is correctly on file with the State because they will fax you back a form with your “new assigned Mich-ELF Filer Number”. 5.) Complete Articles of Organization: Complete form 700 – the Articles of Organization. This is where you write in the desired name of your LLC, the address, and name yourself as the registered agent. 6.) Fax Articles of Organization: Fax the completed form 700 to the State of MI (the # to fax to is on the document); and use form 900 as a cover sheet. You must use form 900 as a cover sheet because that is where you will include that new Mich-ELF Filer Number the State assigned you and this will bill the credit card associated with that ELF number for the processing of your LLC. 7.) Confirm Status: In my experience, within 24 hours, you can confirm the status of your LLC by going to: http://www.dleg.state.mi.us/bcs_corp/sr_corp.asp. Type in your entity name to see the filing status, or you can always call the State office to be sure your request has been processed. Once completed, CONGRATS! You have taken the first steps to setting up a legal structure for your business!

60 User Interface Design Tools A Web Designer Must Have

The success of web applications and websites depends in how well designed the User Interface is. Designing a good user interface however is a very challenging process. A designer’s concepts and design decisions always affect the end users of the web site, application or generally any user interface or service he has designed. That is why, the dream of every designer is to deliver high quality, enjoyable and valuable experiences for the users. To achieve this goal, it is necessary that a web designer have a collection of web user interface resources and building blocks in his arsenal. There is a variety of User Interface resources that allows you as designer to access, redefine, and create a well crafted User Interface. In this article I am presenting a collection of User Interface Design tools that a web designer can use to realize his design goals. Let us explore these things and further our own craft. Be fascinated!

User Interface Design Tools

1. ForeUI

ForeUI is an easy-to-use UI prototyping tool, designed to create mockup / wireframe / prototypes for any application or website you have in mind. With ForeUI, your prototype project will be skinnable. Easily change the look and feel of your prototype by simply switching the UI theme.

2. LivePipe UI

LivePipe UI is a suite of high quality widgets and controls for web 2.0 applications built using the Prototype JavaScript Framework. Each control is well tested, highly extensible, fully documented and degrades gracefully for non JavaScript enabled browsers where possible.

3. DesignerVista

Design Professional Quality GUI Mockups using tremendous number of native controls, widgets, clip art, icons, etc. available right in the application. Practically anything you might want to put on a GUI screen is already available, and in high quality art in DesignerVista

4. Napkee

Napkee lets you export Balsamiq Mockups to HTML/CSS/JS and Adobe Flex 3 at a click of a button.

5. iPhone Mockup

iPhone Mockup lets you create user interface for an iPhone app in a drag and drop system.

6. Eclipse Stencil for OmniGraffle

This stencil enables you to easily prototype Eclipse (wizard) dialogs with OmniGraffle.

7. Gliffy

Gliffy free wireframe software makes it easy to create website wireframes and to share web mockups with anyone.

8. Small GUI Pack

Small Graphical User Interface Elements Pack.

9. Wireframe Magnets (DIY Kit)

This DIY magnet template is based on the Konigi wireframe stencils and includes 3 sheets of elements that might be useful in whiteboard prototyping.

10. Flex 3 Stencil

Includes all Flex components from Flex 3 Style Guide: panels, data grid, buttons, fields, links, toggle, menu, scrolls, accordion, tabs, list, data picker, tool tip, errors etc.

11. Facebook Applications

A pretty sizable collection of Facebook related elements to use in creating wireframes for Facebook applications.

12. Patternry

Patternry is a user interface design pattern library aimed to help solve common interface design problems.

13. User Interface Design Patterns

User Interface Design patterns are recurring solutions that solve common design problems. Design patterns are standard reference points for the experienced user interface designer.

14. Pattern Tap

Pattern Tap is here to satisfy and encourage the inspiration needs of interface design peers and peeps. It aspires to be the one stop pattern shop for your next inspiration need.

15. User Interface Design Framework

A free User Interface Design tool for Web Designers.

16. Lumzy

Lumzy is a quick mockup and creation and prototyping tool.

17. Android Asset Studio

The launcher icon generator will create icons that you can use in your Android application, from a variety of source images. To begin, simply enter the input details below. Output will be shown below.

18. Mephobox

Great resource for finding design pattern inspiration. You can browse by user or website, or check out collections based on individual design elements.

19. Mobility UI Design Elements

A free set of UI design elements.

20. Mockingbird

Mockingbird is an online tool that makes it easy for you to create, link together, preview, and share mockups of your website or application.

21. Serena Prototype Composer

Serena Prototype Composer makes it possible to simulate how an application will look and function before any code is ever written.

22. Fivesecondtest

Fivesecondtest helps you fine tune your landing pages and calls to action by analyzing the most prominent elements of your design.

23. Android UI Elements Set

Free set of classic Android OS UI elements.

24. Massive Web UI and Button Set

This set contains all of the following elements in three distinct styles: glossy, satin/light gradient, and one-color. The satin/light gradient set is available in 7 different colors (which you’ll find all of in the psd file), all of these for free.

25. Best Practice UX Forms Stencil

This forms contain different button layouts, a progress indicator, captcha code input field, labels and more.

26. The Pencil Project

The Pencil Project’s unique mission is to build a free and opensource tool for making diagrams and GUI prototyping that everyone can use.

27. Mocklinkr

Use mocklinkr to convey your static mockups as a linked-up and clickable website to impress your clients.

28. MockFlow

MockFlow helps to design interactive UI mockups for Desktop Software, Rich Internet Apps and Web sites.

29. OSX Leopard GUI Set

The package includes fully editable vector Photoshop sources and a customizable Fireworks PNG file, the original fonts that were utilized for the making of the GUI are also included.

30. iPad GUI Set

Everything you need for your iPad app layout in layered, vector PSD files.

31. iPlotz

iPlotz allows you to rapidly create clickable, navigable mockups and wireframes for prototyping websites and software applications.

32. ALL In One Web Elements Kit

Complete set of web elements you may find very useful for your upcoming project. A huge set of various web elements, easy to modify trough layer styles.

33. Javascript Kit

One of the original javascript snippet libraries on the Internet

34. Concept Feedback

Post your designs and concepts and get free feedback from the design community.

35. Webappers

Lots of jquery components including a very good collection of image editing snippets.

36. DHTMLX

DHTMLX is a JavaScript library that provides essential functionality for building cross-browser, Ajax-based user interfaces. Develop impressive web applications faster with a set of ready-to-use UI widgets.

37.HTML Goodies

Jquery resource with excellent step-by-step documentation.

38. Dojo

Dojo saves you time, delivers powerful performance, and scales with your development process. It’s the toolkit experienced developers turn to for building superior desktop and mobile web experiences.

39. Code Sucks

Javascript snippets with extremely detailed write ups about how they work.

40. Echo 3

Echo behaves as a user interface toolkit–like Swing or Eclipse SWT. AJAX technology is employed to deliver a user experience to web clients that approaches that of desktop-based applications.

41. Snipplr

A good resource with lots of newer scripts and jQuery techniques.

42. Midori

Midori is an ultra-lightweight JavaScript framework that gets the job done without getting in your way.

43. roScripts (beta)

Scripts, Snippets and Resources that can be voted on by users.

44. Scripty 2

Script2 is a powerful flexible Javascript framework to help you write your own delicious and user interfaces. .

45. Snippet Library

A library of user-submitted and reviewed snippets and code tutorials from a variety of programming languages.

46. ZK

ZK includes over 200 ajax components, all ready to go.

47. jQTouch

A jQuery plugin for mobile iPhone application development.

48. Hot Gloo

The Online Wireframe Application.

49. qTip2

A jQuery upgrade for the qTip tooltip plugin. Easily make stylish tooltips for your site.

50. WebResources Depot

Included in their large directory of design resources is a number of very useful scripts and snippets.

51. Fillerati

A unique alternative to Lorem Ipsum. Generate blocks of real text for your mockup. Select to receive your text from a variety of public domain works.

52. Open Source Scripts

Providing Javascript snippets and code.

53. HTML Assets

This is a collection of free Javascript code snippets. It has scripts setting the default focus on page elements (useful for HTML forms), scripts to auto-jump to the next form field when the current form field is full, and scripts to display the current date and time, reload the web page, print the web page, view the page source, close the browser window, and go back to the browser’s previous web page.

54. Mini Ajax

A collection of extremely elegant snippets.

55. Webcodr.com

A few very useful snippets for your website.

56. Editable Grid

EditableGrid is an open source Javascript library aimed at turning HTML tables into advanced editable components. It focuses on simplicity: only a few lines of code are required to get your first table up and running.

57. Cacoo

Cacoo is a user friendly online drawing tool that allows you to create a variety of diagrams such as site maps, wire frames, UML and network charts. It can be used free of charge.

58. Slidenote

SlideNote is a customizable, flexible jQuery plugin that makes it easy to display sliding notifications on your website or in your web application. It’s also available as a WordPress plugin.

59. Denim

DENIM is a system that helps web site designers in the early stages of design. DENIM supports sketching input, allows design at different refinement levels, and unifies the levels through zooming.

60. Placehold.it

A quick and simple image placeholder service.
If you have a plan for selling products and services I’ll recommend you are using a WordPress landing page theme or some WordPress ecommerce themes. Also don’t miss these best wordpress themes if you’re looking for a great theme for your website.