Getting divorced is generally acknowledged as a difficult endeavor emotionally, but its impact of your finances can also present challenges, especially in the often-overlooked area of retirement benefits such as Social Security. To protect yourself, you’ll want to become well versed in the following ways that divorce can impact your Social Security benefits:
In any case, you do not have to wait until your ex-spouse files for benefits before you file a spousal claim, as long as you are both at least 62 years old. How Should Divorcing Couples Divide Rental Properties?During the course of their marriage, many couples decide to invest in real estate, purchasing rental properties and earning incomes off of them. But these real estate holdings can make the property division process more difficult if these couples decide to get divorce. The following are some of the key considerations to make when dividing shared rental properties between divorcing spouses:
Free Consultation with a Utah Divorce AttorneyIf you have a question about divorce law or if you need to start or defend against a divorce case in Utah call Ascent Law at (801) 676-5506. We will fight for you today.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Will Domestic Violence Affect Child Custody in Utah? Disposing Property After Divorce via Michael Anderson https://www.ascentlawfirm.com/how-divorce-affects-social-security/
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There are some situations in which only one spouse will take part in the divorce proceedings. This could be for a variety of reasons — one spouse may live in a different state, for example, or simply be resistant to the divorce occurring. When only one spouse participates in court, the process is called an ex parte divorce. The divorce will still be valid, so long as you meet certain requirements. First, you must meet the residency requirements of a divorce. You must file your divorce within the state or county that you permanently live, or where you have been present for a certain period of time according to state law. This time period could be anywhere from six weeks to a full year. Under an ex parte divorce, you have an exception to the normal rule of jurisdiction. This means that the divorce court can have power over a person’s legal rights even if they lack a relationship with the state in question. Next, you must give notice to your spouse of your intent to file divorce. A person working as a “process server,” typically a local law enforcement officer, delivers this notice. If you do not know where your spouse is currently located, you may have to look into other options to ensure that they get notice of the divorce action. Once the process has been completed, courts are required to honor divorces that were obtained even in another state. How to Negotiate a Fair Alimony ArrangementLike any other aspect of your divorce, you can negotiate an alimony arrangement outside of the courtroom. Doing so allows you to have more control over your future, while also avoiding the expensive, time-consuming process associated with litigation. Each spouse in a divorce must provide certain financial disclosures at the outset of the divorce, even if it’s obvious which spouse will be making the alimony payments. To determine an appropriate amount of alimony, you will need to consider the following:
Free Consultation with Divorce Lawyer in UtahIf you have a question about divorce law or if you need to start or defend against a divorce case in Utah call Ascent Law at (801) 676-5506. We will fight for you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Tax Incentives for a Charitable Remainder Trust Will Domestic Violence Affect Child Custody in Utah? How to Pay Off High Interest Credit Card Debt Reasons Parents Lose Custody of Their Children via Michael Anderson https://www.ascentlawfirm.com/negotiating-divorce-in-utah/ The Securities and Exchange Commission (SEC) today voted to propose rule amendments to improve investor protection and enhance transparency in the municipal securities market. Rule 15c2-12 under the Securities Exchange Act of 1934 requires brokers, dealers, and municipal securities dealers that are acting as underwriters in primary offerings of municipal securities subject to the Rule, to reasonably determine, among other things, that the issuer or obligated person has agreed to provide to the Municipal Securities Rulemaking Board (MSRB) timely notice of certain events. The amendments proposed by the SEC today would add two new event notices: – Incurrence of a financial obligation of the issuer or obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the issuer or obligated person, any of which affect security holders, if material; and – Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of the financial obligation of the issuer or obligated person, any of which reflect financial difficulties. “Today the SEC took steps to empower investors by improving their access to current information about the financial obligations incurred by municipal issuers and conduit borrowers,” said SEC Acting Chairman Michael S. Piwowar. These proposed amendments would provide timely access to important information regarding certain financial obligations incurred by issuers and obligated persons that could impact such entities’ liquidity and overall creditworthiness. The public comment period will remain open for 60 days following publication of the proposing release in the Federal Register. Utah SEC Open MeetingAction The Commission will consider whether to propose amendments designed to better inform investors and other market participants about the current financial condition of issuers of municipal securities and obligated persons. Specifically, the proposed amendments would facilitate timely access to important information regarding certain financial obligations incurred by issuers and obligated persons, which could impact an issuer’s or obligated person’s liquidity and overall creditworthiness and create risks for existing security holders. Highlights The proposed amendments to Exchange Act Rule 15c2-12 would amend the list of event notices that a broker, dealer, or municipal securities dealer acting as an underwriter in a primary offering of municipal securities subject to the Rule must reasonably determine that an issuer or obligated person has undertaken, in a written agreement for the benefit of holders of municipal securities, to provide to the Municipal Securities Rulemaking Board within ten business days of the event’s occurrence. Specifically, the proposed amendments would add two new events to the list included in the Rule:
The proposed amendments also would set forth a definition for the term “financial obligation.” Background Adopted in 1989, Rule 15c2-12 is designed to address fraud and manipulation in the municipal securities market by prohibiting the underwriting of municipal securities and subsequent recommendation of those municipal securities by brokers, dealers, and municipal securities dealers for which adequate information is not available. What’s Next The Commission will seek public comment on the proposed amendments to Rule 15c2-12 for 60 days following publication in the Federal Register. SEC STAFF ISSUES GUIDANCE UPDATE AND INVESTOR BULLETIN ON ROBO-ADVISERSThe Securities and Exchange Commission today published information and guidance for investors and the financial services industry on the fast-growing use of robo-advisers, which are registered investment advisers that use computer algorithms to provide investment advisory services online with often limited human interaction. Because of the unique issues raised by robo-advisers, the Commission’s Division of Investment Management issued guidance for investment advisers with suggestions on meeting disclosure, suitability and compliance obligations under the Investment Advisers Act of 1940. A second publication, an Investor Bulletin issued by the SEC’s Office of Investor Education and Advocacy, provides individual investors with information they may need to make informed decisions if they consider using robo-advisers. The Investor Bulletin describes a number of issues investors should consider, including:
“As technology continues to improve and make profound changes to the financial services industry, it’s important for regulators to assess its impact on U.S. markets and give thoughtful guidance to market participants,” said SEC Acting Chairman Michael Piwowar. “ This information is designed to help investors tap into the opportunities that fintech innovation can provide while ensuring fairness and investor protection.” Investors can use the SEC’s Investment Adviser Public Disclosure (IAPD) database, which is available on Investor.gov, to research the background, including registration or license status and disciplinary history, of any individual or firm recommending an investment, including robo-advisers, which are typically registered as investment advisers with either the SEC or one or more state securities authorities. Robo-advisers, as registered investment advisers, are subject to the substantive and fiduciary obligations of the Advisers Act. The Guidance Update notes that there may be a variety of means for a robo-adviser to meet its obligations to clients under the Advisers Act, and that not all of the issues addressed in the Guidance Update will be applicable to every robo-adviser. Rochelle Kauffman Plesset, and Robert Shapiro from the Division of Investment Management contributed substantially to preparing the Guidance Update, with significant assistance from the Division of Investment Management’s Risk and Examinations Office and the Office of Compliance Inspections and Examinations. Owen Donley, Jill Felker, and Holly Pal from the Office of Investor Education and Advocacy contributed substantially to preparing the Investor Bulletin. Free Initial Consultation with SEC Lawyer in UtahWhen you need help from a Securities Lawyer or have SEC issues, call Ascent Law for your free consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Do I need a family lawyer to get divorced? I Got A New Job, Can I Still File Bankruptcy? SEC Charges Executives with Stealing Tax Incentives for a Charitable Remainder Trust Will Domestic Violence Affect Child Custody in Utah? via Michael Anderson https://www.ascentlawfirm.com/utah-sec-lawyer/ When two parents divorce, there are a number of decisions they must make. These include dividing their assets, setting up spousal support and deciding with whom their children will live. This is common from what I’ve seen as a Child Custody Lawyer. In the best situations, parents will mutually agree to a child custody arrangement that is in the best interest of their children. However, occasionally one will believe the other is unfit to parent and should not have custody of their children. This is particularly common in situations involving domestic violence. Under Utah law, when parents cannot agree to an arrangement on child custody, they will petition the court for assistance in deciding. Courts endeavor to serve the best interests of a child and take a variety of factors into consideration to determine what is best for the child. These factors include the parents’ respective willingness to offer support and care, the child’s relationship with each of the parents and the parents’ fitness as parents. This last category can be severely affected by a parent’s history of domestic violence. Utah takes allegations of domestic violence very seriously. In fact, the state has a statute that requires courts to consider the effects of it when making custody determinations. Even if a child was not abused or the domestic violence occurred only once, it can strongly reflect on a parent’s ability to provide a safe and nurturing environment for a child. If a court believes the parent has a propensity for abuse, that parent may not obtain full or partial custody of the child. Uncontested Divorce in Utah: First LookWhen a marriage dissolves, there are a number of situations that may arise. Occasionally, both spouses will not both agree to the divorce or on some aspect of the divorce, such as property division. In those cases, the case would proceed as a contested divorce. Alternatively, sometimes both parties will agree on all terms of the divorce. Under those circumstances, there is no need for the parties to have a trial, as the divorce is uncontested. Uncontested divorces are much less expensive, time-consuming and stressful. Divorce trials often require couples to share private and sometimes embarrassing details of their marriage in a public forum. Rather than coming to an agreement about the terms of the divorce, the couple leaves these decisions to a judge who does not know them and can often make an imprecise determination as to what is in the best interest of the couple and any children they may have. To qualify for an uncontested divorce, a couple must reach a number of agreements. They must agree to the ground of the divorce, the division of assets and debts, custody of any child, as well as alimony and support payments. An uncontested divorce does not mean that the spouses will not have attorneys, though they are not required to. Many hire attorneys to help them advocate for their rights and assist in the process. Experienced attorneys are skilled in negotiating the terms of a divorce, including property division, alimony, child support and custody. When divorcing spouses hire attorneys for these negotiations, they are often more quickly able to reach an agreement and can avoid landing in court for a divorce trial. Free Consultation with Child Custody LawyerIf you have a question about child custody question or if you have domestic violence issues that need to be brought up in your case, please call Ascent Law at (801) 676-5506. We will help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Do I need a family lawyer to get divorced? Things a Divorce Lawyer Can’t Fix Discharging Student Loans in Bankruptcy Tax Incentives for a Charitable Remainder Trust via Michael Anderson https://www.ascentlawfirm.com/will-domestic-violence-affect-child-custody-in-utah/ When you feel that you’re ready to make a substantial gift to a charity, you may want to consider a charitable trust, which is a special type of trust. In addition to providing a benefit to your favorite charity, it also allows you to donate generously while giving you and your heirs tax benefits. I can tell you as a Probate Lawyer, that if you don’t plan now, you could end up in probate later. However, if you don’t think that the time is right for you to make such a large donation, then it probably isn’t time for you to consider a charitable trust, either. Charitable trusts are irrevocable. When you consider starting such a trust, you need to keep this in mind. Once you start the trust and it comes into operation, you cannot take back what you have given. How a Charitable Trust WorksA charitable remainder trust is the most common type of charitable trust. To set up a charitable remainder trust, you must first set up a trust and transfer to that trust all the property that you want to donate to charity. The charity that you choose must be approved by the Internal Revenue Service, which generally means that the charity must be exempt from taxes. The charity will serve as the trustee of the charitable remainder trust and will be charged with the duty of investing, protecting and managing the trust funds. The charity will pay you, or someone you have named, a portion of the income that the trust funds accumulates. These payments will last for a set number of years, or for the remainder of your life, depending upon how you drew the documents up. The trust will end at the time of your death and the property that you donated will go to the charity. Three Tax Advantages for a Charitable TrustIn addition to assisting your charity of choice, a charitable remainder trust also gives you three primary tax benefits. First, after you have set up and donated to a charitable trust, you are allowed to take an income tax deduction and spread it over five years, for the value of your gift to charity. However, you do not get to deduct dollar for dollar the amount that you initially gave. Instead, the IRS calculates your total deduction as the amount you originally gave minus what you can expect to receive as a return through interest payments. For example, if you gave $200,000 but are expecting to get back $100,000 in interest over the course of your life, your total deduction would have to be $100,000. Second, because the property that you gave to the trust will go to the charity outright upon your death, the property will not be included in your estate for the purposes of determining your estate tax. Third, and last, a charitable trust allows you to turn property that isn’t producing income into cash without paying a tax on any profits gained. For example, if Lee held 5000 shares of stock that had appreciated in value from $10/share to $100/share in the years that he held it, he could not sell off the stock without paying a capital gains tax on it. However, if Lee donates the stock to a charitable trust, the trust can sell the stock and not pay a tax on the sale. Lee’s charity can sell the $500,000 worth of stock, invest the money in a mutual fund, and pay Lee the interest from this fund for the rest of his life, all without capital gains tax. If Lee had decided to sell the $500,000 worth of shares by himself, he would have had to pay a capital gains tax on the proceeds. Two Types of Income from a Charitable TrustWhen you first set up a charitable trust, you will have a choice between two different ways of receiving an income from the fund. Annuity PaymentsFirst, you can opt for a fixed annuity. Under this option, you elect to receive a fixed dollar amount from the trust each year. Even if the trust has a bad year and ends up losing money, you will still receive the same amount of money you did in the years before. Once you set up how much you want the trust to pay you yearly, you cannot go back and change it. There are a few considerations to take into account when determining how much to set annuity payments at. First, if you set it too low, you will never receive the full benefit of setting up a charitable trust, although your income tax deduction will be greater. Second, if you set the annuity too high, you may end up depleting the principal of the trust, thus leaving the charity with nothing at your death. Also, with annuities that are too high, your income tax deduction is lessened. Lastly, a charity is less likely to agree to be the trustee of a trust where annuity payments are too high because it may end up with nothing at the termination of the trust, having had to pay the entire principal in annuity payments. Percentage PaymentsAnother, more common, option for payments is to set your annual payment as a percentage of the current value of the trust fund. No matter how much the trust made or lost in a year, you will still receive the same percentage share each year. As an example, Tony’s trust documents indicate that he will receive 5% of the value of the trust each year. So, at the end of every year, the trust will be re-appraised to find its current value and will pay 5% of that value to Tony. This payment option is better suited to handling changing market conditions such as inflation. If the value of the dollar increases, your annual payments will reflect this change by also increasing. However, the Internal Revenue Service has ruled that a trust beneficiary must receive at least 5% of the value of the trust each year. Here is an example that will hopefully clarify all of this information:Suppose Rex is trying to figure out what to do with a bunch of stock he bought 10 years ago for $200,000. The stock is currently worth $4 million, but Rex sees little income from the stock as the dividends are small. One option for Rex would be to sell the stock off and invest the money in some sort of fund that would pay a larger income. However, if Rex decided to sell the stock, he would owe $570,000 in capital gains tax. Another option Rex has is to set up a charitable trust with his favorite museum. He would donate the stock to the trust which would be able to sell the stock for a $3.8 million profit because of its tax exempt status. In addition, Rex would be able to claim an income tax deduction, spread over a period of five years, for his charitable donation. The charity would then be in charge of investing and managing the $3.8 million. In addition, the trust document that Rex drew up requires the trust to pay Rex 7% of the value of the trust annually for the remainder of Rex’s life. During the first year the trust is in operation, Rex would receive $266,000. This amount will most likely change depending upon how well the trust succeeds in investing and managing the money. If the trust does well, Rex will be paid more each year. Free Consultation with a Utah Estate LawyerIf you are here, you probably have an estate issue you need help with, call Ascent Law for your free estate law consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Dismissal After Passing Chapter 7 Means Test Do I need a family lawyer to get divorced? via Michael Anderson https://www.ascentlawfirm.com/tax-incentives-for-a-charitable-remainder-trust/ Divorce law falls under the umbrella of family law. Very few people are able to effectuate a divorce without the assistance of a lawyer, as this is rarely possible or practical. The best way to protect your rights and your relationship with your children is to seek out the assistance of an attorney who handles family law on a daily basis. An experienced lawyer knows the ins and outs of the process, and can explain each step of the way to you while fighting to protect your interests. Getting a divorce is more than signing a piece of paper that splits you from your spouse. You may think that there are no bones of contention between you and your spouse, but what often occurs as you move toward final separation is extreme emotion takes over and causes a serious roadblock. Certainly, parties who have legal representation meet these roadblocks too. But the difference is that a skilled divorce attorney knows how to defuse many of these situations and can guide you on which battles are best fought and how to fight them. The right family law attorney will handle your divorce with the proper mix of compassion and aggression in a cost-effective manner. In the process of your divorce, you can expect to deal with the following issues:
How Does the Child’s Preference Affect Custody Proceedings?When parents divorce, asking children to choose which parent they want to live with can be traumatic for all involved. In some cases, however, children are sufficiently mature to express a reasoned preference. In such cases, the child’s preference can be an important factor in shaping the custody arrangement. Utah courts determine child custody based on a number of factors intended to protect the interests of the child. A child’s preference is not binding on the court, but judges have discretion to consider it. They often give it significant weight if the child can articulate cogent reasons for the choice. Issues to consider when a child expresses a custody preference include:
Temporary Spousal Support During Your DivorceWhile you are going through a divorce in Utah, temporary maintenance may be awarded to ensure that a lower earning spouse has an adequate standard of living during the time it takes to finalize the dissolution of the marriage. Sometimes, as a divorce lawyer, I see people don’t even think about this. Temporary maintenance (also called spousal support or alimony) is the term used in many states, but the law uses different terms such as temporary alimony or temporary spousal support. In Utah, the law provides a formula for assessing the amount of temporary maintenance to be paid. By law, temporary maintenance is mandatory when the income of one spouse is two-thirds or less than the income of the other spouse. Temporary maintenance guidelines only apply when this requirement is met. If the formula kicks in, the higher earning spouse will be expected to pay temporary maintenance. There is a maximum cap for utilizing the formula on the income of the payor. Under the guidelines, to determine an appropriate amount of temporary maintenance, the court selects the lesser figure that is arrived at by the following calculations:
Free Consultation with Divorce Lawyer in UtahIf you have a question about divorce law or if you need to start or defend against a divorce case in Utah call Ascent Law at (801) 676-5506. We will fight for you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Financial Planning After Divorce An Employee is Hurt During a Workplace Emergency, Can the Employer be held liable? How to Screw Up Your Bankruptcy Discharge Financial Planning for Beginners via Michael Anderson https://www.ascentlawfirm.com/do-i-need-a-family-lawyer-to-get-divorced/ When a couple divorces, they are occasionally on uneven ground financially. This may be due to their unequal earning potential or because one has foregone their career aspirations to care for the couple’s children. Under some circumstances, one of the spouses may be required to support the other one financially. This support can be temporary in nature, long-term or even permanent. Under Utah law, a spouse may seek spousal support to address any number of situations. For some, the need for support is temporary in nature and should last only a few months. For others, however, alimony is required in the long term due to inability to financially provide for his or herself in a manner to which the spouse is accustomed. Temporary maintenance is sometimes ordered to be paid for a spouse who needs support while the divorce is being finalized. Generally this support is meant to be for only a few months and the obligation terminates once the divorce is final. Once this happens, a judge may decide if the support should continue and may then order the other to pay permanent alimony. Permanent alimony, on the other hand, is designed to continue, usually on a monthly basis, without stopping unless and until the supported spouse gets remarried. To decide if permanent alimony is warranted, a judge will look at a number of factors. These factors may include the length of marriage, the spouses’ ages, each of their present and future earning potential and the contributions each spouse made during the course of the marriage. Not every judge will order alimony, but the longer a couple is married, the more likely a judge is to order alimony payments. How Does Infidelity Affect Divorce?For many couples, infidelity is an unforgivable act of betrayal. It can negatively affect a marriage to the point where divorce is the only option. Each year, a large number of couples end their marriage because one person is unfaithful. Utah State recently adopted a no-fault divorce law. As a result, Utahers who wish to end their marriage for any reason, including infidelity, may cite that their marriage as irretrievably broken down. While you may be angry with your spouse for cheating, the court system has no interest in why your marriage failed. Divorce is not a criminal proceeding. As a result, the courts do not punish spouses for being unfaithful. If your spouse cheats on you, do you get the house? Does cheating affect equitable distribution? You may be surprised to know that equitable distribution is not affected by infidelity. Cheating can devastate an entire family, emotionally harm your children, and end your marriage, but the court is only concerned with obtaining a fair resolution to your marital dissolution. The court views marriage as an economic partnership. As a result, it divides the assets of a marriage equally between each partner. The only time infidelity can affect equitable distribution, and as a result a divorce proceeding, is if the cheating spouse diverted funds from the marriage to further his or her extra-marital relationship. The court may require the return of the funds used outside the marriage. A skilled and aggressive attorney can fight to determine the amount of those funds and help you retrieve them. Free Consultation with Divorce Lawyer in UtahIf you have a question about divorce law or if you need to start or defend against a divorce case in Utah call Ascent Law at (801) 676-5506. We will help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Trust Is Crucial In Attorney Client Relationships Financial Planning After Divorce via Michael Anderson https://www.ascentlawfirm.com/types-of-alimony-in-utah/ A trust can be created during a person’s lifetime and survive the person’s death. A trust can also be created by a will and formed after death. We’ve provided a basic overview of trustshere. Once assets are put into the trust they belong to the trust itself, not the trustee, and remain subject to the rules and instructions of the trust contract. Most basically, a trust is a right in property, which is held in a fiduciary relationship by one party for the benefit of another. The trustee is the one who holds title to the trust property, and the beneficiary is the person who receives the benefits of the trust. While there are a number of different types of trusts, the basic types are revocable and irrevocable. Revocable TrustsWe talk more in depth on revocable trusts on this page. Revocable trusts are created during the lifetime of the trustmaker and can be altered, changed, modified or revoked entirely. Often called a living trust, these are trusts in which the trustmaker transfers the title of a property to a trust, serves as the initial trustee, and has the ability to remove the property from the trust during his or her lifetime. Revocable trusts are extremely helpful in avoiding probate. If ownership of assets is transferred to a revocable trust during the lifetime of the trustmaker so that it is owned by the trust at the time of the trustmaker’s death, the assets will not be subject to probate. Although useful to avoid probate, a revocable trust is not an asset protection technique as assets transferred to the trust during the trustmaker’s lifetime will remain available to the trustmaker’s creditors. It does make it more somewhat more difficult for creditors to access these assets since the creditor must petition a court for an order to enable the creditor to get to the assets held in the trust. Typically, a revocable trust evolves into an irrevocable trust upon the death of the trustmaker. Irrevocable TrustAn irrevocable trust is one which cannot be altered, changed, modified or revoked after its creation. Once a property is transferred to an irrevocable trust, no one, including the trustmaker, can take the property out of the trust. It is possible to purchase survivorship life insurance, the benefits of which can be held by an irrevocable trust. This type of survivorship life insurance can be used for estate tax planning purposes in large estates, however, survivorship life insurance held in an irrevocable trust can have serious negative consequences. Asset Protection TrustAn asset protection trust is a type of trust that is designed to protect a person’s assets from claims of future creditors. These types of trusts are often set up in countries outside of the United States, although the assets do not always need to be transferred to the foreign jurisdiction. The purpose of an asset protection trust is to insulate assets from creditor attack. These trusts are normally structured so that they are irrevocable for a term of years and so that the trustmaker is not a current beneficiary. An asset protection trust is normally structured so that the undistributed assets of the trust are returned to the trustmaker upon termination of the trust provided there is no current risk of creditor attack, thus permitting the trustmaker to regain complete control over the formerly protected assets. Charitable TrustCharitable trusts are trusts which benefit a particular charity or the public in general. Typically charitable trusts are established as part of an estate plan to lower or avoid imposition of estate and gift tax. A charitable remainder trust (CRT) funded during the grantor’s lifetime can be a financial planning tool, providing the trustmaker with valuable lifetime benefits. In addition to the financial benefits, there is the intangible benefit of rewarding the trustmaker’s altruism as charities usually immediately honor the donors who have named the charity as the beneficiary of a CRT. Constructive TrustA constructive trust is an implied trust. An implied trust is established by a court and is determined from certain facts and circumstances. The court may decide that, even though there was never a formal declaration of a trust, there was an intention on the part of the property owner that the property be used for a particular purpose or go to a particular person. While a person may take legal title to property, equitable considerations sometimes require that the equitable title of such property really belongs to someone else. Special Needs TrustA special needs trust is one which is set up for a person who receives government benefits so as not to disqualify the beneficiary from such government benefits. This is completely legal and permitted under the Social Security rules provided that the disabled beneficiary cannot control the amount or the frequency of trust distributions and cannot revoke the trust. Ordinarily when a person is receiving government benefits, an inheritance or receipt of a gift could reduce or eliminate the person’s eligibility for such benefits. By establishing a trust, which provides for luxuries or other benefits which otherwise could not be obtained by the beneficiary, the beneficiary can obtain the benefits from the trust without defeating his or her eligibility for government benefits. Usually, a special needs trust has a provision which terminates the trust in the event that it could be used to make the beneficiary ineligible for government benefits. Special needs has a specific legal definition and is defined as the requisites for maintaining the comfort and happiness of a disabled person, when such requisites are not being provided by any public or private agency. Special needs can include medical and dental expenses, equipment, education, treatment, rehabilitation, eye glasses, transportation (including vehicle purchase), maintenance, insurance (including payment of premiums of insurance on the life of the beneficiary), essential dietary needs, spending money, electronic and computer equipment, vacations, athletic contests, movies, trips, money with which to purchase gifts, payments for a companion, and other items to enhance self-esteem. The list is quite extensive. Parents of a disabled child can establish a special needs trust as part of their general estate plan and not worry that their child will be prevented from receiving benefits when they are not there to care for the child. Disabled persons who expect an inheritance or other large sum of money may establish a special needs trust themselves, provided that another person or entity is named as trustee. Spendthrift TrustA trust that is established for a beneficiary which does not allow the beneficiary to sell or pledge away interests in the trust is known as a spendthrift trust. It is protected from the beneficiaries’ creditors, until such time as the trust property is distributed out of the trust and given to the beneficiaries. Tax By-Pass TrustA tax by-pass trust is a type of trust that is created to allow one spouse to leave money to the other, while limiting the amount of federal estate tax that would be payable on the death of the second spouse. While assets can pass to a spouse tax-free, when the surviving spouse dies, the remaining assets over and above the exempt limit would be taxable to the children of the couple, potentially at a rate of 55 percent. A tax by-pass trust avoids this situation and saves the children perhaps hundreds of thousands of dollars in federal taxes, depending upon the value of the estate. Totten TrustA Totten trust is one that is created during the lifetime of the grantor by depositing money into an account at a financial institution in his or her name as the trustee for another. This is a type of revocable trust in which the gift is not completed until the grantor’s death or an unequivocal act reflecting the gift during the grantor’s lifetime. An individual or an entity can be named as the beneficiary. Upon death, Totten trust assets avoid probate. A totten trust is used primarily with accounts and securities in financial institutions such as savings accounts, bank accounts, and certificates of deposit. A Totten trust cannot be used with real property. A Totten Trust provides a safer method to pass assets on to family than using joint ownership. To create a totten trust, the title on the account should include identifying language, such as “In Trust For,” “Payable on Death To,” “As Trustee For,” or the identifying initials for each, “IFF,” “POD,” “ATF.” If this language is not included, the beneficiary may not be identifiable. A Totten trust has been called a “poor man’s” trust because a written trust document is typically not involved and it often costs the trustmaker nothing to establish. Create a Trust TodayForming a trust is a great way to protect your family’s assets and to make sure loved ones are secure. You may decide that the complexity required for such a trust would benefit from the advice of an estate planning lawyer. Get ahead of the curve and get some peace of mind for your family by calling Free Consultation with a Utah Estate Planning AttorneyIf you are here, you probably have an estate issue you need help with, call Ascent Law for your free estate law consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
How to Deal with an Angry Spouse During Divorce Exercise, Eat Healthy, and File Bankruptcy Financial Planning After Divorce via Michael Anderson https://www.ascentlawfirm.com/types-of-trusts/ After a divorce, it can take some time to adjust to your new financial situation. There is less money coming in, but still plenty of expenses to monitor. To that end, it’s important to sit down and closely analyze how a divorce will affect you financially before it is actually made official. Here are some financial planning considerations to keep in mind as you prepare for life after divorce:
Tips for Keeping Your Divorce Relatively InexpensiveIn addition to being stressful for a variety of reasons, divorce can be an expensive process. Between the legal fees, property division, debt responsibilities and other costs, it’s possible you will come away from your divorce with some work to do in terms of rebuilding your financial health and stability. However, there are some tactics you can use to help keep costs down in the divorce process. The following are just a few of them:
Seeking an Annulment in UtahWe’ve written about the difference between getting an annulment or divorce as well as an annulment in Utah. Though annulments have the effect of ending a marriage, they are different in various ways from divorce. Divorce dissolves a marriage, while an annulment declares it void. Marriage is a legal contract. Just like any other contract, there are certain requires that the contract must meet in order for it to be considered valid. If one of the spouses can show that there was some material issue with the marriage contract, he or she may be successful in annulling the marriage. Under Utah law, there are five grounds for annulment. The first is that one or both of the spouses was under the age of 18 at the time of the marriage. In order to legally enter into a contract, a person must be an adult (18 years old) at the time. If he or she is not, the contract is not necessarily void, but it is voidable. A marriage can be annulled if one or both of the spouses was unable to consent due to mental incapacity. This can include any circumstances where one or both of the spouses is unable to give legal consent, such as if one were drunk at the time of the wedding, for example. If one of the spouses can prove that they were mental incapacitated at the time of the wedding, the marriage might be voided. In the same vein as mental incapacitation, if one of the spouses has been mentally ill for at least five years, the other may seek an annulment. Sexual intercourse is considered part of the legal agreement of a marriage. If one of the spouses is physically unable to partake in sexual intercourse, the marriage may be annulled. Finally, if a spouse can prove that the marriage was obtained through duress, coercion or fraud, it may be voided. For instance, if one of the spouses was threatened in order to obtain the marriage, this marriage would voidable. Free Consultation with a Utah Divorce AttorneyIf you have a question about divorce law or if you need to start or defend against a divorce case in Utah call Ascent Law at (801) 676-5506. We will help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Lawyer for Excessive Use of Margin Does the Utah Anti-Deficiency Law Protect Me? Imputing Income for Divorce in Utah Will a Chapter 13 Plan Look Better on My Credit Report Than Chapter 7? How to Deal With an Angry Spouse During Divorce via Michael Anderson https://www.ascentlawfirm.com/financial-planning-after-divorce/ This question comes up from time to time because I’m an estate planning lawyer. Let’s say that during your lifetime, you create a will and a living trust. How do they work together? Even if you create a living trust, any assets not included the trust can be fully controlled and distributed the way you want after your death. This is why people choose to create a pour-over will. Read on to learn about pour-over wills and their legal effects. What Is a Pour-Over Will?A pour-over will is a type of will used with a living trust that “pours” all of the assets belonging to the testator into a trust that he or she had set up before death. The terms in a pour-over will allows any assets that the testator failed to transfer into a trust during his or her life to be passed into the trust at the testator’s death. The purpose of pour-over wills is to guarantee the assets that weren’t included in the trust will be transferred. Those assets will then be distributed to the beneficiaries of the trust. How Does a Pour-Over Will Work?Having a valid pour-over will saves you time because you don’t have to constantly change your trust to add or replace trust assets. You only need to have some sort of valuable assets in the trust, and your pour-over will pick up any assets or property that are not included in your trust upon your death. In order to validly execute a will, you must meet the following elements: (1) the testator’s testamentary capacity; (2) the will is in writing; (3) the testator’s signature on the will; and (4) two witnesses of will execution. For pour-over wills, the trusts to be “poured over” should mention the will and execute prior to or contemporaneously with the will. Make sure to check your state’s law because some states may have additional requirements to will formalities. Upon your death, the executor of your estate will start working on your estate. Executors have to go through probate and get permission from the probate court before proceeding on with their duties. Generally, an executor’s main duties are gathering the assets and paying outstanding debts and loans. The truth is, a pour-over will is an essential part of estate planning. For a pour-over will, the executor will need to take all of your assets that pass under the will and put them in the living trust you created. Once the assets are put in the trust, the trustee you named in your trust will collect the trust assets and distribute them to the named beneficiaries. Advantages of a Pour-Over WillSo, why do people create a pour-over will instead of other types of wills? Here’s a list of some benefits of using a pour-over will:
Disadvantage of a Pour-Over WillAs with other types of wills, pour-over wills require probate. While the assets left in the trust may be distributed immediately, any assets or property going through the will to the trust must go through the probate process. Depending on the case, the probate process can take a long time before the assets can be distributed. Free Consultation with a Utah Estate Planning LawyerIf you are here, you probably have an estate matter you need help with, call Ascent Law for your free estate law consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
6 Ways to Protect Yourself During a Utah Divorce Lawyer for Excessive Use of Margin Estate Planning for Blended Families Lien Stripping in Chapter 13 Bankruptcy Different Types of Liability in a Restaurant or Bar How to Deal with an Angry Spouse During Divorce via Michael Anderson https://www.ascentlawfirm.com/pour-over-will/ |
Probate LawyerProbate Lawyer in West Jordan Utah. If you need probate lawyer, trust attorney, inheritance counsel, living trust, last will and testament, call 801-676-5506 now for a free consultation. Archives
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