The primary role of a business attorney involves providing advice and other legal services that affect various aspects of a business. In general, business attorneys ensure that companies are in compliance with various business regulations and that all operations in a company are aboveboard. Business attorneys typically assist with matters, such as conflict resolution, corporate law issues, business formation, compliance, intellectual property, mergers and acquisitions, and many other types of legal issues that come up when running a business. One important thing to keep in mind about business attorneys is that they do not specialize in handling the same legal issues as employment lawyers. Remember, business attorneys are concerned with business operations and the overall structure of a business. Employment, lawyers, on the other hand, deals with issues like employment discrimination and employment contract disputes. Types of Cases Business Attorneys HandleGenerally speaking, business attorneys typically possess a broad range of skills and are thus equipped to handle various types of business-related matters. Some examples of common legal issues that business attorneys may encounter on a daily basis include: Many of the aforementioned issues and tasks that business attorneys handle on a daily basis may also depend on the size of the business and its industry. For instance, a small business attorney may be hired to handle every aspect of a small business or startup company. This may include anything from structuring the company to reviewing compliance issues on a regular basis. On the other hand, business attorneys who work for large corporations may specialize in certain areas of the business. For instance, there may be an entire in-house team of legal professionals who only handle compliance matters, or the corporation may choose to only hire outside counsel for litigation purposes. Finally, business attorneys’ wide range of knowledge concerning legal issues that affect businesses, may also make them a good candidate to serve as an expert in a lawsuit. For example, if the court or a party needs more information about a particular type of business practice, an experienced business attorney can be hired and consulted as an expert witness. Major Types of International BusinessSome of the major types of international business are: When Does International Law Apply?International law governs relations between different nations, and business is one of the most important types of relations between nations. International law consists of a blend of different treaties, organizations, and agreements among countries. International law is created from a combination of: How Can an Lawyer Help Me in an International Business Dispute?When a legal dispute arises between parties from different countries, there are can be many difficult issues. If you have an international business dispute, there are local business attorneys who specialize in international law. Contact such an attorney to learn more about your rights, defenses, and the complicated issues that may arise. Business law is a section of code that is involved in protecting liberties and rights, maintaining orders, resolving disputes, and establishing standards for the business concerns and their dealings with government agencies and individuals. Every state defines its own set of regulations and laws for business organizations. Similarly, it is also the responsibility of the business concerns to know the existing rules and regulations applicable to them. Importance of Business LawBusiness law plays a vital role in regulating business practices in a country. Here are some points that prove why business law is so relevant: Functions of Business LawEvery business concern, either large-scale or small-scale, is bound to comply with their respective legal regulations. Here are some significant functions of business law that can help you in understanding it better. When Do Start-Up Businesses Need to Hire a Lawyer?You may not need to hire a lawyer as soon as you think when starting a business. Once you have a great idea for your start-up business, do you need to hire a lawyer to help you get started? Not necessarily. A lot of the initial steps related to choosing and forming your business entity you can do on your own. However, once you get to later stages with your business—for example when you start hiring employees or entering into more complicated agreements; you may need the assistance of a lawyer. Remember, though, if you are uncertain about something at any stage in the process, deciding to hire a lawyer can save you money by helping you avoid mistakes or getting into a situation with unintended (and possibly costly) consequences. Deciding on Your Business StructureYou will need to decide what type of ownership structure makes sense for your new business. Most states have information on their secretary of state (SOS) website about the different types of business entities you can choose from—solo proprietor, LLC, corporation, and partnership. There are also many online and other resources available to help you understand your choices. Figuring out what type of ownership structure best suits your needs will depend on the type of business you have, the number of owners, and your financing. Although many entrepreneurs make this decision on their own, you may have questions about liability, tax, ownership, or other things that you should discuss with a lawyer or an accountant before you decide. How to Hire a Business LawyerThe nature and objectives of your business will determine the legal expertise that is most valuable to you. For example, if you own a technology company, then you might be satisfied with a corporate attorney or firm that specializes primarily in intellectual property rights and licensing, even if they have little expertise in other areas of corporate law. If you run a more generic manufacturing or service business, then you might merely need a contracts expert to assist you with client negotiations, drafting and finalizing agreements, maintaining proper corporate records, and so forth. To better define your company’s legal objectives, you can ask yourself the following: Attorneys For International BusinessesWhen you need help with international business law, please call Ascent Law LLC 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
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Cannabis Conviction Expungement Lawyer Getting A Divorce Should I Get My Own Accountant? Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/international-business-lawyer/
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When you’re swept away by love and filled with the promise of a life partner, the mere thought of breaking up feels silly. After all, it’s forever and ever, amen, right? Unfortunately, not always. It’s not a rosy statistic to share but 50% of marriages in the United States sadly end in divorce. When faced with healing a broken heart and determining the next chapter of life, dealing with money matters just makes the whole process that much more stressful. In addition to finding your footing as a newly single person, you also have to consider how bills will be paid moving forward. To add to the financial stress of divorce, some revengeful ex-spouses can wreak havoc in the courtroom, costing more than a pretty penny. Legally Establish The SeparationOnce the decision to divorce is made, it’s time to put the separation in writing and in motion as soon as possible. This signals the start of your new life on your own, but it serves a purpose financially. Having this note on your financial files helps protect any money you make after that date. So, if you’re separated from your partners for six months before divorce proceedings begin, all of that income is solely yours. If you don’t make the separation legally binding, then that cash could be subject to being split down the middle. This date also applies to decisions involving child support and alimony. Get A Copy Of Your Credit Report And Monitor ActivityRegardless of whether you commingled your incomes and shared accounts during the marriage, by being legally bound you were exposed you to your partner’s actions. Even if your spouse was (and is) a trustworthy person, it doesn’t mean mistakes weren’t made. “Anything that they did to hurt their credit score could have damaged yours as well.” This makes it essential to request a copy of your credit reports as soon as possible, and go through them with a fine-toothed comb. “Check your report for errors and continuously monitor to make sure the other person’s actions don’t affect your future.” Separate DebtCredit card companies do not care about divorce. You’re still liable for any debt your spouse racks up on jointly held accounts. It’s best to leave marriages with no debt, or only the debt that’s yours. If you have the money to pay off your joint credit cards, do so and then close the accounts. “If you don’t have the funds, you can always divide the debt in half and transfer to individually held cards and then cancel the joint ones.” You want to avoid keeping joint cards, even with a verbal agreement to pay, because if your partner ghosts you, you’ll be left to pay the balance. Move Half Of Joint Bank Balances To A Separate Account“As soon as possible, to open up a new bank account, and transfer 50 percent of the available funds to your new account” You should also ensure that any income from employment or other applicable direct deposits are amended to be deposited into your new account. Comb Through Your AssetsWhen separating assets, some couples become overly nit-picky about who is owed what. Emotions can be heightened even more in situations where a marriage ended due to infidelity or some sort of grave disruption of trust. Though it’s not always the case, men tend to believe they’re going to get all of the assets, whereas women are often scared they won’t receive any. As much as possible, try to set aside any feelings of guilt or retribution. Doing so will help you keep a clear, logical head and allow you to speak up for and defend what is yours. Getting a thorough and accurate understanding of what you’re entitled to require going through all of your assets line by line. “Usually the assets are split down the middle, but there may be assets excluded, such as inheritances or premarital assets.” Conduct A Cash Flow AnalysisThe day-to-day divorce details can be all consuming. But as you’re negotiating who gets what, also look ahead and do some prep work for the solo life. Doing some hands-on budget cash flow analysis will give you a sense of control over your finances. “If there is a shortfall, you can start whittling away at the discretionary items. If there is a surplus, then breathe a big sigh of relief.” Don’t forget to account for recurring expenses that you once split with your partner. The last things you want are any major financial shocks once you’re out on your own. Pay attention to big-ticket expenses like health insurance, car leases, digital media subscriptions and others. Expenses can add up quickly when you’re suddenly responsible for footing the entire bill. Don’t Relinquish Control Of Assets Or InvestmentsDivorces never take place overnight. And if our ex-other-half decides to drag his or her feet, it can be delayed by months or even years. That’s why protecting your investments and assets (including real estate, investments, or any other assets that you are entitled to should start as soon as the separation is in motion. Create A Game Plan For TaxesIt’s important to understand what you’re agreeing to before signing on the dotted line, otherwise, the split of assets could be less equitable than it first appears. “If one spouse were to take the principal residence, and another spouse were to take control over the retirement assets, there will be different tax implications towards the receipt of each asset, and the tax implications could be substantially different resulting in one spouse losing much of that value to a future tax burden. Alimony is no longer tax-deductible for the person paying it, and the payments are not considered taxable income to the recipient. This may seem like a good deal to the person receiving alimony because the alimony they receive is no longer taxable, but it’s very likely that they will receive less money because it’s now being taxed from the payer.” The Benefits of Forensic Accounting in Divorce CasesIn a divorce scenario, a forensic accountant may be interested in various types of documentation, both business and personal, that can reveal financial information about a spouse. This can include such things as tax returns, accounting records and financial statements, bank statements, cancelled checks, credit card statements, appointment books, sales invoices, business contracts, financial projections, mortgage applications and other documentation. Easier Budgeting and Greater Control Over MoneyThe end of a marriage can mean the end of fights over money. There is no more struggle over which categories get priority in the budget; no more evenings spent cajoling or pleading with a spouse to rein in spending. On the other side of divorce, there can be some freedom from these financial disputes. People who previously had spendthrift spouses may find they are now able to build up savings and contribute more to retirement funds. What’s more, they can shift money to their own personal goals, whether that is paying off debt, traveling more or something else. Early Access to a Retirement Fund, Penalty-FreeA divorce is one of the few times a person can pull money out of a retirement account early and not pay an early withdrawal penalty. When an agreement known as a qualified domestic relations order is reached as part of a divorce, it allows for an early withdrawal from the account. This money is exempt from the typical 10% penalty assessed to those younger than age 59 1/2, although income tax still needs to be paid if the money is not rolled into an IRA. Cashing out part of a retirement account can be a risky move, but it gives the newly divorced some options they may not otherwise have. Potentially Better Investment ReturnsDivorce could mean better investment returns, at least for women. Men usually take a more aggressive approach to investments and take more risks. It’s possible divorced women who are managing their own portfolio may have weathered the current tumultuous year better than those with husbands calling the investment shots. In a market depressed by a global pandemic, those with a conservative approach and sensible asset allocations may not have had cause for panic or selling investments in a down market. Becoming a Financial VictimThe biggest mistake divorcing spouses can make is being in the dark about finances. If your spouse has always handled all of the financial decisions in your household and you don’t have any information about you and your spouse’s income and assets, your spouse will have an unfair advantage over you when it comes time to settle the financial issues in your divorce. If you suspect your spouse is planning a divorce, get as much information as you can now. Make copies of important financial records such as account statements (e.g., savings, brokerage, and retirement) and all other data that relates to your marital lifestyle (checking accounts, charge card statements, tax returns). If you believe your spouse may liquidate (sell or transfer to cash) assets or retile marital assets without your consent, notify the holder of the asset or property in writing and get a restraining order from the court. Not Considering MediationIf you and your spouse can work together to reach a fair settlement on most or all of the issues in your divorce (e.g., child custody, child support, alimony, and property division), choosing mediation to resolve your divorce case may save thousands of dollars in legal fees and emotional aggravation. The mediation process involves a neutral third-party mediator (an experienced family law attorney trained in mediation) that meets with the divorcing couples and helps them reach an agreement on the issues in their divorce. Mediation is completely voluntary; the mediator will not act as a judge, or insist on any particular outcome or agreement. Mediation also provides divorcing couples a lot of flexibility, in terms of making their own decisions about what works best for their family, compared with the traditional adversarial legal process, which involves a court trial where a judge makes all the decisions. Mediation, however, is not appropriate for all couples. For example, if one spouse is hiding assets or income, and refuses to come clean, you may have to head to court where a judge can order your spouse to comply. Or, if one spouse is unwilling to compromise, mediation probably won’t work. Hiring a Combative Lawyer to Punish Your SpouseThis is a very bad idea for two reasons. First, except in extremely egregious cases, most courts won’t punish your spouse financially for being a bad person. Second, hiring an attorney to punish your spouse will cost you because your attorney will need to increase the number of hours spent on your case. Increased attorney hours means higher divorce costs, and higher divorce costs means there will be fewer assets and cash left for you and your family. Try to take the emotion out of your divorce, and treat your case as a business arrangement. The best revenge is to live well after the divorce is over. Failing to Recognize Your Common Enemy; the I.R.S.Work together with a divorce financial planner or tax accountant to minimize the total taxes you and your spouse will pay during separation and after divorce; you can share the money you save. Don’t forget that both spouses are liable for taxes due as a result of audits on joint returns, so it’s usually in your best interest to work together and minimize possible liabilities. If you’re facing complicated tax issues in your divorce, it’s best to consult with an experienced family law attorney and an accountant. Not Producing an Accurate BudgetDivorcing spouses usually underestimate living expenses when they produce their initial budget for temporary alimony (also referred to as “maintenance”), and later find that they aren’t able to cover all of their bills. Use a financial professional to help you produce an accurate and complete budget. Disregarding the Impact of Taxes in a Divorce SettlementIt’s important to remember that after the divorce is final, you may get taxed on the marital assets you received through your settlement. Say your spouse handles all the investments and offers to split them 50/50. Sounds good, right? The only way to know if you’re getting a fair deal is to determine the value of the investments on an after-tax basis, then decide if you like the deal. Again, you should speak with a tax professional about the impact of any proposed property division before you agree to it. Failure to Evaluate Settlement ProposalsIf you’re trying to decide whether your spouse’s proposed divorce settlement is fair and workable, you should try to figure out how the settlement will impact your finances in the years ahead. There are many factors to consider, including assets, incomes, living expenses, inflation, alimony, child support, taxes, retirement plans, investments, medical expenses and health insurance costs, and child-related expenses such as education. There are specialized divorce computer models that produce comprehensive and realistic analyses of your post-divorce lifestyle. You should speak with a local divorce attorney or financial planner that specializes in divorce for help analyzing any proposed financial settlement. Being Emotionally Attached to Assets in Divorce NegotiationsThe marital residence, the pension you earned, a painting purchased during your marriage – these assets often bring an emotionally charged debate to divorce negotiations, which can impair good decision-making. Often, divorcing spouses that are attached to the family home don’t realize that they can’t really afford. Yet, they fight tooth and nail to keep it, sometimes at the expense of retirement planning. However, the real estate market crash has made it abundantly clear that homes have a very low return on investment and, in some cases, have a negative return; many houses today are still underwater, and couples have had to walk away from their homes and the hard-earned money they invested. In addition, a home is a major cash expense (e.g., mortgage payments, property taxes, repairs, and utilities). Let go of any emotional attachments you may have. During your divorce and settlement negotiations, your main focus should always be on how to maximize your finances by making sure you’ll have enough cash for living expenses after your divorce and in retirement. Beware of Settlement Offers That Look Too GoodBoth spouses and children must make compromises in their life styles post-divorce. A settlement that does not give one spouse enough money to live on is likely to go into default in the future. Be fair, but verify the numbers. Get payments up front whenever possible, even if you get less in total. Try to secure all payments with assets and insurance. It may be worth speaking to a family law attorney who can review a settlement offer and make sure your rights are fully protected. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, 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
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Step Up Basis In Estate Planning Tax Attorney For Utah Sales Tax Cannabis Conviction Expungement Lawyer Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/getting-a-divorce-should-i-get-my-own-accountant/ Estate planning is the preparation of tasks that serve to manage an individual’s asset base in the event of their incapacitation or death. The planning includes the bequest of assets to heirs and the settlement of estate taxes. Most estate plans are set up with the help of an attorney experienced in estate law. Estate planning involves planning for how an individual’s assets will be preserved, managed, and distributed after death. It also takes into account the management of an individual’s properties and financial obligations in the event that they become incapacitated. Assets that could make up an individual’s estate include houses, cars, stocks, paintings, life insurance, pensions, and debt. Individuals have various reasons for planning an estate, such as preserving family wealth, providing for surviving spouse and children, funding children and/or grandchildren’s education, or leaving their legacy behind to a charitable cause. The most basic step in estate planning involves writing a will. Other major estate planning tasks include: The sum total of a person’s belongings, property, money, and assets is generally referred to as their estate. In particular, there should be plans regarding how the estate will be divided and distributed to recipients when the estate owner passes away. Individuals, families, and couples who want to think ahead for the future will create typically an estate plan so that different pieces of their net wealth can be managed as part of a unified whole. A will is a legal document created when an individual is alive. This document specifies who should inherit any assets or material objects upon their death. Usually, a comprehensive estate plan will include a will as part of the entire plan. However, an estate plan is also likely to include other financial management instruments, such as a trust or multiple trusts that can take effect while the person is still alive. Ultimately, an estate plan can be more varied and unique to each individual based on their assets and needs. So an estate plan is far more comprehensive, if the individual requires it. How To Create an Estate PlanCreating an estate plan will involve identifying tallying up all the different pieces of a person’s individual wealth. This may include property owned, stocks, holdings, cash, savings, insurance policies, and health issues. People with disabilities or disabled beneficiaries may need to create specific estate plans to meet their needs. Many people draft a will to begin the overall process of creating an estate plan. This is typically the main legal instrument that contains their instructions and preferences for the distribution of their estate. Next, it is necessary to consider any assets they want to leave in trust and establish a trust for those assets. Trusts are established by a grantor (the estate owner), who assigns trustees and beneficiaries, as well as guidelines for the trust, and then moves wealth and gifts into the trust. The trustee is the person tasked with managing the property, while the beneficiary is the person who will ultimately receive the property. Trusts can sometimes be useful for transferring property to recipients before the estate owner passes away. This can have several benefits depending on the type of property and the type of trust involved. For instance, certain taxes can be avoided, and trust property transfers can make the overall estate distribution process simpler when the person passes away. An estate plan will need a power of attorney to be designated in the event that the owners of the estate are no longer able to manage their affairs. A power of attorney allows the estate owner to designate another person (an “agent”), who can make legal decisions on their behalf. Also, a set of health care instructions should be included as part of the estate plan. The person creating the estate plan must decide if they want the same person or persons managing their health care and financial matters, or if they would like to designate different parties. Next, the person creating their estate plan will need to establish insurance policies, especially estate planning life insurance. Life insurance often covers the payment of debt or estate tax after the person passes away. Calculating potential taxes that the federal government could collect after death is necessary to select the right policy that will cover all expenses, including funeral expenses. It is also a good idea to insure any businesses or business ventures. Finally, an estate planning lawyer can advise you on how to store the documents of your estate plan so that they are safe and accessible to those who need them. Some Factors To Consider When Creating an Estate PlanWhen creating an estate plan, it is useful to broadly consider various factors that might affect the distribution of your estate. Each estate is different, as each person will own different assets and property, and will have differing amounts of financial savings. Some factors that you should consider when creating your estate plan may include: • Name your beneficiaries: You can leave property to whoever you like. Make sure to name alternates in case your beneficiary dies before you. For example, you might want to give your diamond ring to your daughter, but if she dies before you, then you can leave it to her daughter (your granddaughter). You can also give property to groups of people. This might be easiest with money, which can be easily divided. If you leave a house to two people, they may have to sell it. You probably won’t name a beneficiary for every specific piece of property. This is why your will has a residuary clause. Your residuary is everything you own that you haven’t specifically bequeathed to someone. Name one or more beneficiaries to your residuary estate. In community property states, your spouse may have a claim to part of your estate, even if they are not your beneficiary. • Choose guardians for young children: You can name your guardians in a will. Choose people you trust and who agree to become guardians in case you die. You should also name back-up guardians in case the original ones decline to serve. Always talk it over with the potential guardian. Many people have legitimate reasons why they can’t serve, and you should know ahead of time. • Planning for Estate Taxes: Federal or state taxes applied on an estate can considerably reduce its value before asset distribution is made to beneficiaries. Death can result in large liabilities for the family, necessitating generational transfer strategies that can reduce, eliminate, or postpone tax payments. During the estate planning process, there are significant steps that individuals and married couples can take to reduce the impact of these taxes. For instance, married couples can set up an AB trust that divides into two after the death of the first spouse. Or a grandfather may encourage his grandchildren to seek college or advanced degrees and, therefore, transfer assets to an entity for the purpose of current or future education funding. That may be a much more tax-efficient move as opposed to dying, having those assets transferred, and finally having the same assets fund college when the beneficiaries are of college age. The latter may trigger multiple tax events that can severely limit the amount of funding available to the kids. Another strategy an estate planner can take to minimize the estate’s tax liability after death is by giving to charitable organizations while alive. The gifts reduce the financial size of the estate since they are excluded from the taxable estate, thus, lowering the estate tax bill. Estate Plan LawyerWhen you need legal help with estate in Utah, please call Ascent Law LLC 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
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Step Up Basis In Estate Planning Tax Attorney For Utah Sales Tax Cannabis Conviction Expungement Lawyer Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/brilliant-estate-plans/ Expungement (also called “expunction”) is a court-ordered process in which the legal record of an arrest or a criminal conviction is sealed, or erased in the eyes of the law. When a conviction is expunged, the process may also be referred to as setting aside a criminal conviction. The availability of expungement, and the procedure for getting an arrest or conviction expunged, will vary according to several factors, including the state or county in which the arrest or conviction occurred. In some jurisdictions, it’s not possible to get an expungement. An expungement ordinarily means that an arrest or convictions sealed, or erased from a person’s criminal record for most purposes. After the expungement process is complete, an arrest or a criminal conviction ordinarily does not need to be disclosed by the person who was arrested or convicted. For example, when filling out an application for a job or apartment, an applicant whose arrest or conviction has been expunged doesn’t need to disclose that arrest or conviction. In most cases, no record of an expunged arrest or conviction will appear if a potential employer, educational institution, or other company conducts a public records inspection or background search of an individual’s criminal record. An expunged arrest or conviction is not necessarily completely erased, in the literal sense of the word. An expungement will ordinarily be an accessible part of a person’s criminal record, viewable by certain government agencies, including law enforcement and the criminal courts. This limited accessibility is sometimes referred to as a criminal record being under seal. In some legal proceedings, such as during sentencing for any crimes committed after an expungement, or in immigration/deportation proceedings, an expunged conviction that is “under seal” may still be considered as proof of a prior conviction. Factors Determining Eligibility for ExpungementWhether you may get a criminal record expunged depends on a number of factors, including the jurisdiction; the nature of the crime or charge; the amount of time that has passed since the arrest or conviction; and your criminal history. Some states don’t allow for the expungement of criminal convictions at all. Having your criminal records sealed is similar to having them expunged, but much less “hidden.” If your records are sealed, then it means they are not available to the public; this would include private investigators, credits, and employers. However, these records still exist in the context of the criminal justice system. For example, the sealed convictions will still be considered prior offenses if you are arrested in the future. Eligibility for ExpungementSince an expungement can offer a fresh start of sorts, one of the most important actions that people who have been arrested or convicted can take is to investigate their jurisdiction’s expungement procedures. Start by checking with your county’s criminal court, or even the law enforcement agency that handled your arrest. Specifically, ask the following questions about eligibility for expungement and the procedure that’s involved: • What does the expungement process involve? Expungement doesn’t necessarily require hiring an attorney. Many courts have forms available, with titles along the lines of “Motion for Expungement.” Getting a Certificate of Actual InnocenceA Certificate of Actual Innocence is perhaps the most powerful form of expungement. This certificate does more than seal a prior record; it proves that a record should never have existed at all. Drug Crimes and Juvenile OffensesIn many jurisdictions, people who have been arrested or convicted for drug crimes and juvenile offenders may have an easier path to expungement. The Implication Of Weed ChargesMost people find themselves in a position where they have less than one pound of marijuana. Relative to other drug charges, the penalties can seem relatively light. This is especially true if you are a first time offender and happened to find yourself in the wrong place at the wrong time. When you have a small amount of marijuana or paraphernalia in your possession, the central area of concern may be other areas besides fines or jail time. Utah Marijuana LawsFor the most part, marijuana possession and sale are illegal in Utah. Lawmakers have yet to compromise on expected amendments to the medical marijuana law after its Dec. 6, 2018 enactment date. However, the law will allow those with a physician’s recommendation to purchase marijuana from a licensed dispensary (or grow their own medicine if they live more than 100 miles from the nearest dispensary). State law allows patients suffering from epileptic disorders to use cannabidiol (CBD) in limited concentrations for medical treatment (prior to the broader 2018 medical marijuana law). As far as recreational use is concerned, conviction for selling pot in the state constitutes a felony punishable by up to 15 years in prison, depending on the amount and location of the sale, and the criminal history of the seller. While state marijuana laws regulate pot within the state, marijuana possession, sale, and trafficking remain illegal under federal law by way of the Controlled Substance Act. Utah Misdemeanor Crimes by Class and Sentences• Misdemeanors in Utah are punishable by up to 364 days in county or local jail, and are designated as class A, B, or C. Class A MisdemeanorsA class A misdemeanor is the most serious type of misdemeanor in Utah, punishable by up to 364 days in jail and a fine of as much as $2,500. Theft of services or property worth between $500 and $1,500 is a class A misdemeanor. Class B MisdemeanorsUnder Utah’s laws, class B misdemeanors are punishable by up to six months in jail and a fine of up to $1,000. For example, an adult who knowingly furnishes alcohol to a minor can be convicted of a class B misdemeanor in Utah. Class C MisdemeanorsA conviction in Utah for a class C misdemeanor can result in up to 90 days in jail and a fine of up to $750. Class C misdemeanors are the least serious misdemeanor crimes under Utah’s laws. Driving on a suspended license, for instance, is typically a class C misdemeanor. Unclassified MisdemeanorsIf a statute designates an offense as a misdemeanor but fails to classify or specify a punishment for it, the crime is punishable as an infraction. Potential punishments include: Statutes of LimitationsA statute of limitations is a time period, set by lawmakers, during which the state must begin criminal prosecution. The statute of limitations begins to “run” when the crime is committed. Most misdemeanors in Utah have a statute of limitations of two years. The laws relating to expungement are highly variable and different jurisdictions may have different requirements that need to be met before an expungement can be granted. It’s a good idea to contact a criminal defense attorney who can advise you about the requirements to have your prior conviction expunged, taking into account local rules and the facts of your case. Utah Marijuana Possession LawsThe requirements to charge an individual with marijuana possession and other drug crimes are listed under Utah’s Controlled Substances Act. A combination of state and federal laws makes it illegal to not only possess a certain amount of marijuana but also to possess any drug paraphernalia needed to use marijuana. Marijuana possession, sometimes referred to as simple possession, is an offense that arises out of possession of marijuana for personal use. This contrast with an offense for possession with intent to distribute (PWID), a crime that focuses on the offender manufacturing and distributing drugs. The possession of marijuana is also referred to by terms like “actual possession” and “constructive possession,” depending on how law enforcement located the drugs. If an offender actually possessed marijuana when they were arrested, it means that they had it on their person or in an item that they were carrying. If an offender constructively possessed marijuana, it implies that they had knowledge of and control over the drugs found by law enforcement. For example, if you hid drugs in the trunk of your car or in a safe in your home, you will likely be charged with possession if law enforcement finds it, even if you did not have the drugs on your person. Penalties for First Offense Marijuana PossessionTo reiterate, the penalties for marijuana possession are directly correlated to the amount of marijuana that you are discovered with. If the weight of the drugs in your possession is over a certain limit, you risk being charged with a felony instead of a misdemeanor, even if this was the first time you were arrested for possession. If you are found with less than 100 pounds of marijuana, you will likely receive a class B misdemeanor charge. The penalties for a class B misdemeanor are a maximum of six months in jail and up to $1,000 in criminal fines. If you receive a class B misdemeanor conviction for marijuana possession, you may be given the option to perform compensatory service instead of paying a fine. The hours you will have to work typically depend on the amount of your criminal fine. If you were granted the option of compensatory service, you could volunteer with: Facing Marijuana Possession Charges In UtahUtah law states that it is illegal for a person to knowingly and intentionally possess any controlled substance unless it is through a lawful medical prescription. Marijuana is classified as a Schedule I controlled substance, and use of medical marijuana is still criminalized in Utah. Drug possession can also include what is called “constructive possession,” which usually happens when a person has an illegal substance in a car or home, and other people in the car or home know about it and do not specifically disclaim it. In these cases, a person can be charged with marijuana possession even if he or she never bought, used, or actually possessed the drug. Although classified as a Schedule I drug, marijuana is treated differently than other drugs in this category. Rather than automatically being classified as a felony, possession of marijuana may be charged as a misdemeanor if the amount is less than one pound and not intended for sale or distribution. This does not mean, however, that the potential consequences of a marijuana possession charge are not severe. Along with stiff criminal penalties, there are various collateral consequences that may result from the conviction going onto your criminal record, such as: Expungement LawyerWhen you need an expungement, please call Ascent Law, LLC for your free consultation (801) 676-5506. We want to help you.
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What Are The Three Types Of Bankruptcies Divorce Attorney Salt Lake City Salt Lake City Trust Attorneys Step Up Basis In Estate Planning Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/cannabis-conviction-expungement-lawyer/ A step-up in basis is the readjustment of the value of an appreciated asset for tax purposes upon inheritance. The higher market value of the asset at the time of inheritance is considered for tax purposes. When an asset is passed on to a beneficiary, its value is typically more than what it was when the original owner acquired it. The asset receives a step-up in basis so that the beneficiary’s capital gains tax is minimized. A step-up in basis is applied to the cost basis of property transferred at death. Tax basis is the amount of a taxpayer’s investment in property for tax purposes, typically used to calculate figure depreciation, amortization, and other property dispositions. A step-up in basis reflects the changed value of an inherited asset. For example, an investor purchasing shares at $2 and leaving them to an heir when the shares are $15 means the shares receive a step-up in basis, making the cost basis for the shares the current market price of $15. Any capital gains tax paid in the future will be based on the $15 cost basis, not on the original purchase price of $2. The step-up in basis rule changes tax liability for inherited assets in comparison to other assets. For example, Sarah bought a loft in 2000 for $300,000. When Paul inherited the loft after Sarah’s death, the loft was worth $500,000. When Paul sold the loft, his tax basis was $500,000. He paid taxes on the difference between the selling price and his stepped-up basis of $500,000. If there wasn’t a step-up in basis then Paul would have to pay taxes on the difference between the selling price and the initial buying price of $300,000. Step-Up in Basis for Community Property StatesResidents of community property states may take advantage of the double step-up in basis rule. For example, Allan and Jo Ann bought a home in 1977 for $350,000. They had a revocable living trust established and deeded the house to the trust. When Allan died in 2006, the house stayed in the trust, and Jo Ann received the step-up in basis for the home’s market value of $500,000. When Jo Ann passed away in 2015, the couple’s daughter Stephanie inherited the home. The home’s market value of $700,000 became her cost basis. Stephanie inherited a home that stepped up in basis twice and avoided paying a large amount of taxes because of the double step-up rule. Step-Up in Basis as a Tax LoopholeThe step-up in basis tax provision has often been criticized as a tax loophole for the ultra-rich and wealthy. They take advantage of it to eliminate or reduce their tax burden. For example, they can escape capital gains tax on stocks by placing their holdings in a trust fund for their heirs. In a typical case, a millionaire might invest in assets, such as real estate and stocks that are expected to appreciate and provide them with a consistent rate of return during their lifetime. The investor’s heirs will enjoy the benefits of the investment after their death because they will be taxed on the stepped-up cost basis, instead of the original cost, thereby allowing them to evade taxes worth millions of dollars. Example of a Step-Up in BasisA person inheriting mutual funds receives a step-up in basis for the funds’ value. The price of the shares on the day the owner dies becomes the heir’s cost basis. The heir provides the mutual fund company proof of identity along with a death certificate, probate court order or other documentation. The company either transfers the shares to an account in the heir’s name or sells the shares and sends the proceeds to the heir. In the above example, if there wasn’t a step-up in basis then the beneficiary would have to pay taxes on the difference between the selling price of $750,000 and the initial buying price of $300,000, or $450,000. The step-up in basis tax provision has often been criticized as a tax loophole for the ultra-rich and wealthy as they could take advantage of it to eliminate or reduce their tax burden. For example, they can escape capital gains tax on stocks by placing their holdings in a trust fund for their heirs. Over the years, economists have proposed eliminating step-up in basis and have suggested that it could be replaced with lower capital gains taxes, but, as of yet, these changes have not been implemented. While creating your family’s estate plan, you may find yourself weighing the pros and cons of various strategies. The priorities for each family are different. Some are focused on the care of their family members after they are gone. Others are primarily concerned with who should receive specific assets. Different priorities could include minimizing taxes, protecting wealth from creditors, or encouraging beneficiaries to pursue certain activities, such as educational pursuits. Regardless of your family’s chosen priorities, your estate-planning attorney can create a plan that helps accomplish your goals. Assets That Qualify for the Stepped Up BasisNot all assets are eligible for the step-up in basis upon your death. Following are several examples of assets that do qualify: Assets That May Not Be Eligible for a Step-Up in BasisFollowing are examples of assets that will not receive a step-up in basis upon the owner’s death: Wills, Living Wills, and TrustsA will can help make the transition after a loss as painless as possible for your loved ones. Your property will be transferred quickly and many tax burdens can be avoided. Wills typically describe the estate, name individuals who will receive specific property, and dictate any special instructions you may have. Depending on your wishes and the size of your estate, your will could be anywhere from a single page to a lengthy document. While a will allows you to express your financial wishes once you’re gone, a living will expresses your health care preferences while you’re still alive. With a living will, you’ll be able to designate the medical treatment you wish to receive, should you become unable to communicate your wishes due to illness or incapacitation. A health care power of attorney, on the other hand, allows you to designate a person who can make medical or end-of-life decisions on your behalf. Trusts are another estate planning tool you can use to manage your property and avoid tax burdens. A trust can either be created during a person’s lifetime, or after death, by a will. There are a number of different types of trusts serving a wide range of functions. An asset protection trust, for example, is designed to protect a person’s assets from future creditors. A charitable trust, on the other hand, is used to benefit a particular charity or cause. Estate Planning LawyersAn estate planning attorney can help you in a number of different ways. If you’re interested in creating a will or setting up a trust, an estate planning attorney can draft the necessary documents and help lay the legal groundwork for your plan. That way, your loved ones will be able to avoid the costly and time-consuming probate process. In addition, if you’d like to express your wishes regarding medical treatment, an estate planning attorney can help you draft a living will or a health care power of attorney. If a loved one dies without a will, on the other hand, probate could be necessary. Probate is the court-supervised process of sorting out a person’s affairs. If that’s the case, it may be important for you to find an experienced probate attorney. An estate planning attorney will be able to guide you through the probate process and represent your interests in court. There are a lot of steps that go into creating a complete Estate Plan. Common Estate Planning Mistakes to AvoidTake caution when developing your Estate Plan. There are many mistakes that could result in delays, inaccuracies or other misunderstandings. Some of the common mistakes people make along the way include: How Much Does an Estate Plan Cost?The cost of creating an Estate Plan can widely vary, depending on a number of factors. If you go the traditional route and work face-to-face with an attorney, your cost will be much higher. Newer methods of Estate Planning include innovative and creative platforms like Trust & Will, where you can get a legal Estate Plan at a fraction of the cost. In some cases, you do not need an attorney to create your Estate Plan. If you have a very complicated estate, you may opt to go the traditional face-to-face route. But many people have simple, straight-forward needs. They may find a service like Trust & Will is ideal for their Estate Planning needs. It can save time and money while still offering a superior product that touches on all the important things you want to take care of with your Estate Plan. Though there are many parts to a complete Estate Plan, tackling them one at a time is the best way to draft a plan that’s conclusive, comprehensive, thorough and that protects everyone in your life you love. Estate Planning LawWhen you need help with probate law, estate planning or asset protection in Utah, please call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.
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What Is General Solicitation Private Placement? What Are The Three Types Of Bankruptcies? Breach of Contract Attorney Salt Lake City Utah Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/step-up-basis-in-estate-planning/ The #1 tip for divorce is to hire a competent and experienced divorce attorney to represent you. The rest of the tips are worthless without proper representation in your case. Divorce is a difficult time in anyone’s life and it can also be a very expensive time, especially if you don’t understand the process and can’t afford an attorney to represent you. Divorce is a complex legal process. It’s best to know what the process entails and what to expect as it unfolds. The more informed you are, the fewer surprises there will be. And of course, those surprises can be what end up costing you more money. But, there are ways to save money and there are (believe it or not!) alternatives to hiring a lawyer to represent you in all aspects of a divorce. Divorce In UtahThere are a number of grounds for divorce in Utah, which include: How to File For Divorce In UtahTo divorce in Utah, at least one spouse must live in a Utah for at least three months, with no breaks in that residency prior to filing for divorce. In Cases of Child Custody; with a few exceptions, when child custody is a concern the child must normally reside in Utah with one parent, for at least six months prior to the divorce filing. In Utah, the divorce process begins when one spouse (the petitioner) or his or her lawyer uses the state’s Online Court Assistance Program (OCAP) to prepare the divorce petition, along with additional filing documents. The system is user-friendly, with instructions that are easy to follow. Utah’s court system warns against using documents obtained elsewhere, as they may not be acceptable. If you are confused about which documents are required or are unsure about any factors surrounding your divorce, then it is best to consult with a lawyer. Many lawyers offer free initial consultations, which can help you decide how best to proceed. After completing the required documents, the petitioners should hand-deliver or mail the documents to the county clerk’s office. If you have retained an attorney, he or she will handle this step for you and will guide you in additional interactions with the court. After filing, the petitioner must serve the other spouse (called the respondent) with the summons, petition for divorce, and other associated documents within 120 days of filing. Respondents living in Utah have 21 days to sign the Acceptance of Service and give it to the petitioner or his or her representative to file with the court or file it with the court themselves. Respondents living outside Utah have 30 days to complete this process. How Long Does A Divorce Take In Utah?In Utah, there is a divorce waiting period of 30 days between the date of filing and the date the judge signs the final divorce decree. Parties may request the court to waive the waiting period. Note that complicated divorces may take far longer than 30 days to complete. Divorce can be devastating; however, uncontested divorces are often less devastating to your finances and sanity than contested ones. Your divorce does not have to become a soap opera. Instead, Utah’s uncontested divorce process allows spouses to reach an agreement on their own and avoid the stress and anxiety associated with attending a trial before a judge. The uncontested process can be relatively quick, and certainly less expensive than taking a divorce to trial. Uncontested divorces are an option available to divorcing Utah couples with or without children. These types of divorces are generally less expensive and faster than traditional divorces because you avoid the expense of attorneys, custody evaluations and hiring experts for trial. If you and your spouse are able to agree on all issues regarding your divorce, including child custody, visitation and support, then an uncontested divorce is a real option. However, if you and your spouse cannot reach an agreement on any issue in your divorce, then your divorce becomes contested and you will be required to attend a trial where a judge will decide the remaining issues in your divorce case. Completing Your DivorceUtah has a mandatory 30-day waiting period to complete a divorce. Under extraordinary circumstances, the 90-day waiting period may be waived. However, before a divorce will be granted to parents of minor children, both spouses must complete the Divorce Education Course. Utah does not require that you attend a court hearing before a judge will finalize your uncontested divorce. Instead, if all your paperwork is filed correctly and the judge finds that your agreement is reasonable and/or in the best interests of your children, then the judge will sign the Findings and Decree of Divorce. Note that the date the judge signs your Decree, is when your divorce becomes final. Getting a quick divorce can save you and your partner both emotional and financial anguish. However, when children are involved, it can be difficult since there will be the issues of child support and custody battles to work out. To succeed in dissolving the marriage quickly, these details must be solved in the fairest way for both parties. The cheapest way to get a divorce with a child involves both you and your spouse to remain cordial, and be ready to compromise on several issues. Property division and child custody, which are the main battle fronts in most divorce proceedings. To get a cheap divorce, you can start the process online and minimize the number of professional services you contract. In order to get the cheapest divorce possible, you must make sure that both you and your spouse are willing to work together and your divorce is uncontested. Marital Property and Separate PropertyIn a divorce, the distribution of property depends on which property belongs to the marriage is known as marital property and which property belongs to each of the two spouses is called separate property. Generally, marital property is property acquired or earned during the marriage, including earned income. Property used for the benefit of the marriage, even if it started out as separate property, may also be considered marital property. Separate property includes anything that belonged to one spouse before marriage and was kept separate throughout the marriage. It could also include property given only to one spouse during the marriage, like a gift made to the husband alone or an inheritance that the wife received from a member of her family. The most common types of property divided at divorce are real property like the family home, personal property like jewelry and clothing, and intangible financial assets like income, dividends, and benefits. All of the marital property must be divided between the spouses when the marriage ends, and marital debts must also be divided. The spouse who owns separate property gets to keep that property–it can’t be awarded to the other spouse. Equitable Division of PropertyRather than rely on a hard and fast set of rules when splitting property between spouses, judges in Utah have discretion to consider a variety of factors unique to each marriage. Despite the court’s relative freedom to decide what is fair, it should always consider the length of the marriage and how the spouses acquired the marital property. It should also look at the conditions each spouse will face alone after the divorce, such as medical needs, and childcare costs. Each spouse’s level of education and earning potential are also relevant. Judges may divide property unequally after taking these factors, and others, into account. In Utah, courts consider alimony as part of the equitable division of marital property. Alimony is a payment from one spouse to the other to help the recipient spouse maintain a lifestyle as close as possible to the standard of living the parties enjoyed during the marriage and specifically, at the time they separated. If it is more equitable, the court might base alimony on the standard of living at the time of trial. The court also has the option to base alimony on the standard of living at the time of marriage if the marriage was short and there are no children. To determine the amount of alimony due, the court may consider either spouse’s fault in the deterioration of the marriage. The court also evaluates the recipient spouse’s financial resources, earning capacity, and whether that spouse worked in a business owned or operated by the obligated spouse (the one who has to pay). Additionally, the court looks at the obligated spouse’s ability to pay, the length of the marriage, who has custody of the children, and whether the obligated spouse’s earning capacity increased because the recipient spouse contributed to education or training during marriage. If one spouse is at the threshold of a major change in income because of the collective efforts of both spouses, that change also will be a factor in how the court divides the marital property and in the alimony award. Conversely, for a short marriage, the court could attempt to put the spouses back where they started as newlyweds, in terms of financial resources. Generally, alimony payments can last only as long as the number of years the marriage existed. Tips For Divorce LawyerWhen you need a divorce attorneys, please call Ascent Law LLC 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
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Are Online Divorces Legitimate? Top DUI Lawyer In Salt Lake City Required Bankruptcy Disclosures Under Cod 342 and 527 Real Estate Purchase Contract Utah What Is General Solicitation Private Placement? What Are The Three Types Of Bankruptcies? Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/tips-for-divorce/ Bankruptcy is a process a business goes through in federal court. It is designed to help your business eliminate or repay its debt under the guidance and protection of the bankruptcy court. Business bankruptcies are usually described as either liquidations or reorganizations depending on the type of bankruptcy you take. Bankruptcy is the legal proceeding involving a person or business that is unable to repay outstanding debts. The bankruptcy process begins with a petition filed by the debtor, which is most common, or on behalf of creditors, which is less common. All of the debtor’s assets are measured and evaluated, and the assets may be used to repay a portion of outstanding debt. Bankruptcy offers an individual or business a chance to start fresh by forgiving debts that simply cannot be paid while offering creditors a chance to obtain some measure of repayment based on the individual’s or business’s assets available for liquidation. In theory, the ability to file for bankruptcy can benefit an overall economy by giving persons and businesses a second chance to gain access to consumer credit and by providing creditors with a measure of debt repayment. Upon the successful completion of bankruptcy proceedings, the debtor is relieved of the debt obligations incurred prior to filing for bankruptcy. All bankruptcy cases in the United States are handled through federal courts. Any decisions over federal bankruptcy cases are made by a bankruptcy judge, including whether a debtor is eligible to file or whether he should be discharged of his debts. Administration over bankruptcy cases is often handled by a trustee, an officer appointed by the United States Trustee Program of the Department of Justice, to represent the debtor’s estate in the proceeding. There is usually very little direct contact between the debtor and the judge unless there is some objection made in the case by a creditor. Types of Bankruptcy FilingsBankruptcy filings fall under one of several chapters of the Bankruptcy Code: Chapter 7, which involves liquidation of assets; Chapter 11, which deals with company or individual reorganizations, and Chapter 13, which is debt repayment with lowered debt covenants or specific payment plans. Bankruptcy filing specifications vary among states, leading to higher or lower filing fees depending on how easily a person or company can complete the process. Chapter 7 BankruptcyIndividuals or businesses with few or no assets file Chapter 7 bankruptcy. The chapter allows individuals to dispose of their unsecured debts, such as credit cards and medical bills. Individuals with non-exempt assets, such as family heirlooms (collections with high valuations, such as coin or stamp collections), second homes, cash, stocks, or bonds, must liquidate the property to repay some or all of their unsecured debts. So, a person filing Chapter 7 bankruptcy is basically selling off his or her assets to clear debt. Consumers who have no valuable assets and only exempt property, such as household goods, clothing, tools for their trades, and a personal vehicle up to a certain value, repay no part of their unsecured debt. If you are ready to start a new business or explore other career options, Chapter 7 could fit the bill. Chapter 7 business bankruptcy allows you to eliminate most (if not all) of your unsecured debts, including medical bills, personal loans, payday loans, cash advance loans and credit card debt. Once you file for Chapter 7 bankruptcy, it typically takes about six months to receive your discharge. In this type of business bankruptcy, the company goes out of business. Chapter 7 discharge does not relieve certain debts, including mortgages and car loans, and it can also result in the loss of property if your equity is non-exempt. If you plan to reorganize and start your existing business anew, this is not the right type of business bankruptcy to file. Chapter 7 bankruptcy will appear on your credit report for 10 years, and you won’t be able to file Chapter 7 and receive debt discharge again within eight years. Chapter 11 BankruptcyBusinesses often file Chapter 11 bankruptcy, the goal of which is to reorganize and once again become profitable. Filing Chapter 11 bankruptcy allows a company to create plans for profitability, cut costs, and finds new ways to increase revenue. Preferred stockholders may still receive payments, though common stockholders will not. For example, a housekeeping business filing Chapter 11 bankruptcy might increase its rates slightly and offer more services to become profitable. Chapter 11 bankruptcy allows a business to continue conducting its business activities without interruption while working on a debt repayment plan under the court’s supervision. In rare cases, individuals can file Chapter 11 bankruptcy. Filing business bankruptcy under Chapter 11 can help you avoid having to close your company – although filing Chapter 7 instead always remains an option. Public companies often choose Chapter 11 because it allows them a chance to become profitable again and to provide value to their shareholders. When you obtain debt relief through a Chapter 11 claim, an automatic stay is put in place, meaning creditors cannot attempt to collect repayment during the term of the stay. Meanwhile, you’re able to create a reorganization plan to pay back debts and regain profitability, usually by renegotiating leases, contracts and other binding agreements. Creditors are often receptive to reorganization under a Chapter 11 business bankruptcy plan, since the payment they receive is more favorable than it would have been under Chapter 7. Since winning a Chapter 11 business bankruptcy discharge does not require selling your assets, if you believe you can make changes that will result in profitability, Chapter 11 could be your best bet. Chapter 11 business bankruptcy is very complex, takes a long time to move through the courts and is expensive (i.e. higher filing fees and court costs). The repayment plan can be for long periods of time and can stretch to 20 years or more. And after all that, it won’t necessarily succeed. Chapter 13 BankruptcyIndividuals who make too much money to qualify for Chapter 7 bankruptcy may file under Chapter 13, also known as a wage earners plan. The chapter allows individuals and businesses with consistent income to create workable debt repayment plans. The repayment plans are commonly in installments over the course of a three- to five-year period. In exchange for repaying their creditors, the courts allow these debtors to keep all of their property including non-exempt property. Many sole proprietors have personal assets combined with their business assets. In Chapter 13, you can avoid losing your personal assets versus Chapter 7 business bankruptcy, where some (but not all) of your personal property is exempt from being sold. Chapter 13 also allows more debt to be discharged than Chapter 11, and you can even apply for a Hardship Discharge to have your debts dismissed. It is also typically a faster and cheaper process than Chapter 11. It can take up to five years to repay your debts under a Chapter 13 business bankruptcy plan. Your debts are paid with your disposable income, so whatever extra cash you have is committed to debt repayment. If you obtain debt relief by filing business bankruptcy under Chapter 13, you’re barred from filing a Chapter 7 claim for six years. Chapter 13 cases remain on your credit report for 10 years. Steps to File for BankruptcyIt starts with compiling all your financial records – debts, assets, income, expenses – and listing them. This not only gives you a better understanding of your situation, but also gives anyone helping you (and eventually the court) a better understanding. The next step is to receive credit counseling within 180 days before filing your case. This is required step. You must obtain counseling from an approved provider listed on the Utah Courts website. Most counseling agencies offer this service online or over the phone. The courts want you to do this to make sure you have exhausted all possibilities of finding a different way to handle your problem. It’s important to understand that credit counseling is required. You will receive a certificate of completion from the course and this must be part of the paperwork when you declare bankruptcy, or your filing will be rejected. Next, you file the petition for bankruptcy. If you haven’t done so at this point, this might be where you realize you need to find a bankruptcy lawyer. Legal counsel is not a requirement for individuals filing for either Chapter 7 or Chapter 13 bankruptcy, but you are taking a serious risk if you choose to represent yourself. For one thing, you may not understand federal or state bankruptcy laws or be aware which laws apply to your case, especially regarding what debts can or can’t be discharged. Judges are not permitted to offer advice and neither is the court employees involved in a case. There also are many forms to complete and some important differences between Chapter 7 and Chapter 13 that you should be aware of when making decisions. Finally, if you don’t know and follow the proper procedures and rules in court, it could affect the outcome of your case. When your petition is accepted, your case is assigned to a court trustee, who sets up a meeting with your creditors. You must attend the meeting, but the creditors do not have to be there. This is an opportunity for them to ask you or the court trustee questions about your case. If you cannot afford to hire an attorney, you may have options for free legal services. If you need help finding a lawyer or locating free legal services, check with the American Bar Association for resources and information. Bankruptcy Terms to KnowThroughout bankruptcy proceedings, you’ll likely come across some legal terms particular to bankruptcy proceedings that you’ll need to know. Here are some of the most common and important ones: • Bankruptcy trustee: This is the person or corporation, appointed by the bankruptcy court, to act on behalf of the creditors. He or she reviews the debtor’s petition, liquidates property under Chapter 7 filings, and distributes the proceeds to creditors. In Chapter 13 filings, the trustee also oversees the debtor’s repayment plan, receives payments from the debtor and disburses the money to creditors. • You get your own Trustee: The Department of Justice and the Bankruptcy Court will appoint a trustee in your case. This trustee will be responsible for overseeing your specific case and ensuring that all of the documentation is filed. The trustee is not in favor of either the consumer or creditors, but is an officer of the court instead. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, 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
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Are Online Divorces Legitimate? Estate Planning Attorneys Utah What Is General Solicitation Private Placement? Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/what-are-the-three-types-of-bankruptcies/ General Solicitation is the act of marketing a capital raise publicly. Rule 506(b) of Regulation D prohibits using general solicitation to market securities. General solicitation is undefined in the statutes or rules, and the Securities and Exchange Commission (SEC) takes a case by case approach. A typical example of general solicitation is telling potential investors in a newspaper the terms of an offering and inviting them to purchase securities. Rule 502(c) prohibits• Any advertisement, article, notice or other communication published in any newspaper, magazine, or similar media or broadcast over television and radio; and When will a general solicitation ruin your ability to rely on Rule 506(b)? General Solicitation Restrictions for Private Placement IssuersOn August 6, 2015, the Securities and Exchange Commission (the SEC) issued a number of Compliance and Disclosure Interpretations (CDIs) related to the issue of general solicitation (or general advertising) as it pertains to issuers seeking to raise capital in private placements in a Rule 506 transaction. As this blog has discussed elsewhere, Rule 506 under the Securities Act of 1933 allows companies to raise unlimited amounts of capital without having to register the securities with the SEC. Under Rule 506(b), these securities may only be sold to accredited investors (a category generally restricted to high net worth individuals and large institutional investors such as investment banks, pension funds, insurance companies, etc.) and to a limited number (no more than 35) sophisticated non-accredited investors. Traditionally, this limit on investor participation has been bolstered by a complete ban on the use of general solicitation by issuers (or their agents, such as registered BDs acting as placement agent) offering Rule 506 securities to investors. This restriction on general solicitation is found in Rule 502(c) (To avoid any confusion, Rule 502(c) will henceforth be referred to simply as Rule 502 to differentiate it from Rule 506(c)). The rule does not define the term general solicitation or general advertising, though it does offer a non-exhaustive list of what would be considered to be so, including the use of any advertisement, article, notice or other communication published in any newspaper, magazine, or similar media or broadcast over television or radio. The JOBS (Jumpstart Our Business Startups) Act amended Rule 506 by adding a new Section 506(c), which did away with this restriction on general advertising for issuers relying on this new Section 506(c), while also imposing more stringent requirements on who could actually invest (i.e. all of the actual purchasers must be accredited investors; even the most sophisticated non-accredited investors are barred from participation) as well as the steps an issuer or its agent had to take to ensure that such investors are, in fact, accredited. One reason for this amendment was that the prior complete ban on general solicitation for all Rule 506 private placements was seen as a barrier to the ability of some companies, particularly startups and smaller companies, to raise the capital they needed. This amendment has, therefore, largely been welcomed. At the same time, however, there has been some concern that, given that companies now could engage in general solicitation (so long as they complied with the other requirements of Rule 506(c)), the SEC would begin to take a stricter enforcement approach regarding what they would consider to be general solicitation for companies choosing to raise capital under the “old” Rule 506(b). (Note that “old” here is merely used to differentiate Rule 506(b) from Rule 506(c); the availability of Rule 506(b) has not been eliminated by the new amendment.) The eleven CDIs issued by the SEC on August 6th were, in part, an effort to respond to these concerns. This blog post will discuss and analyze each of these eleven CDIs in turn. On the SEC website, these appear in the Securities Act Rules and Interpretations Section as Questions 256.23 through 256.33, and will be numbered accordingly here. Here, the SEC states explicitly that the use of an unrestricted, publicly accessible website to offer or sell securities would constitute general solicitation or advertising. Therefore, a company relying on the “old” Rule 506(b) to offer securities would be barred from doing so on a publicly accessible website. This is hardly surprising, though it is nice to have it stated so explicitly. Here, the SEC addresses what kinds of information a company can widely disseminate without violating the Rule 502 ban on general solicitation. This can be an issue because the SEC takes a very broad view of what constitutes an offer to sell securities. Information which is designed or which can have the effect of arousing investor interest in a company, even if no actual mention of any securities being offered or sold is included, may in some instances be considered to be “general solicitation or advertising.” An example might be a press release that includes rosy projections about future potential growth or future earnings. The idea is that, if the company is considering raising capital in the near term, widely distributed communications that have (or appear to have) the intent of ginning up interest may be deemed to be general solicitation, which again would preclude the company from relying on the registration exemption under Rule 506(b). As the SEC puts it, information which “condition[s] the public mind or arouse[s] public interest” in a securities offering (even where the offering is not mentioned or alluded to) would result in a violation of the general solicitation ban. Conversely, information that does not condition or arouse the public’s interest would be acceptable. Thus, disseminating purely factual business information about the company would not violate the restriction on general solicitation. What is a factual business information?As with many securities-related issues, the SEC’s answer stresses that its determination of what constitutes factual business information is dependent on the specific circumstances in each instance. In general, however, factual business information means information about the issuer itself, its general financial condition, the products and/or services it offers, and the advertising of those products and services in the normal course of business. This definition largely tracks the definition of factual business information found within Rule 169, although it should be noted here that this Rule does not apply directly to Rule 506 transactions and thus should be viewed strictly as a general guideline. Where a company must be careful is when information it is providing includes what are often called forward-looking statements, such as projections or predictions about future performance, and in particular any forecasts or opinions about the future value of the company’s securities. Companies which are contemplating making use of Rule 506(b) to raise capital in the near-term must be aware that the information they send out may be more closely scrutinized with respect to whether these efforts constitute general solicitation or advertising in connection with their intended offering. Although, as the SEC says, each situation is fact and circumstance-specific, one thing to consider is whether the company is acting in a way similar to or different from its own past practices. For example, if a company has not previously been in the habit of releasing quarterly sales results in the past, and then begins to do so shortly before attempting to raise capital in a private placement, this change in behavior may be flagged and scrutinized by the SEC. In general, companies which are considering using Rule 506(b) to raise capital should whenever possible consult with legal counsel to ensure that they do not inadvertently include information extending beyond what the SEC here refers to as factual business information. This question discusses one way to demonstrate the absence of general solicitation, namely where an offer to purchase securities is made to a person or persons with whom the issuer, or a person acting on its behalf (such as a registered broker-dealer acting as a placement agent) has a pre-existing, substantive relationship. For example, if a company is engaging in a later-stage financing round, offering securities to persons who have invested in prior rounds would generally not be considered general solicitation. Similarly, if the issuer is offering the securities through an intermediary such as a registered broker-dealer (BD), the issuer can piggyback onto the pre-existing, substantive relationship that the BD has with its clients, and thus the offering of securities to these persons would also not constitute general solicitation. This question asks whether there are situations where an issuer or its agent can provide information about a securities offering to persons with whom it does not have a pre-existing, substantive relationship without that information being deemed to constitute general solicitation. The short answer is yes; the more precise answer is yes, but only in certain instances. In their answer to this question, the SEC acknowledges the “long-standing practice” where issuers or their agents are introduced to prospective investors who constitute an informal, personal network of individuals experienced with investing in private placements. The universe of early-stage investors, particularly those individuals who regularly serve as so-called angel investors, tends to be small and somewhat tight-knit (particularly in areas like technology). Angel investors often introduce companies they like to others in their groups. Making offers of securities to these individuals would not, per se, constitute general solicitation or advertising. In a sense, the issuer would be relying on the assumption that all of the investors in this network have the necessary financial experience and sophistication. Thus, an individual investor’s membership in this informal network serves to convey to the issuer (or its agent) the information that the issuer would normally attain by virtue of a pre-existing, substantive relationship with that investor. Caution should be exercised before relying on this SEC guidance too heavily; as the SEC itself notes, the greater the number of people with whom an issuer does not already have a pre-existing, substantive relationship, the more likely it will be that the SEC will find that there has been general solicitation. There is, of course, no predetermined number; as with everything else, the determination will depend on the specific facts and circumstances of each case. This question asks straightforwardly whether someone other than a registered BD is able to form a pre-existing, substantive relationship with a prospective offeree (of securities), thus avoiding the general solicitation trap. According to the SEC, investment advisers who are registered with the SEC may also be able to establish such a relationship because they owe a fiduciary duty to its clients to provide only suitable investment advice (BDs owe similar duties to their clients.) The theory is that, in order to fulfill this fiduciary duty, the investment adviser would need to reasonably determine that its client is financially sophisticated and experienced enough to invest in the issuer’s securities. (Remember that a reasonable determination of an investor’s sophistication is the primary impetus behind the requirement of a pre-existing, substantive relationship in the first place.) This question asks for a definition of what pre-existing means in the context of a pre-existing, substantive relationship. Here, thankfully, the term is rather self-explanatory. For an issuer itself, this means that the issuer formed its relationship with the prospective offeree before the commencement of its offer to sell securities. If the relationship was formed through an intermediary such as a BD or investment adviser, this means that the relationship was formed before the BD or investment adviser became involved in the offering. This question deals with a related follow-up: Is there a minimum waiting period required for an issuer (or its intermediary) to establish a pre-existing, substantive relationship with a potential investor before it can commence an offering of securities? In short, the answer is no; so long as the relationship was established before the offering, offering securities to that potential investor will not constitute general solicitation. This is a departure from the previously endorsed waiting period of 30 days between the self-accreditation of a prospective investor and the ability of an agent to make an offer to such person. In practice, of course, it would be prudent to impose at least some nominal waiting period, but there is no technical requirement for any particular length of time to pass between the establishment of the pre-existing, substantive relationship and the offering of securities. The SEC also mentions a specific, limited accommodation it will allow for certain private funds that offer investments on a semi-continuous (e.g. quarterly or annual) basis, but as this accommodation is not applicable to most companies raising capital. This question asks for a definition of what constitutes a substantive relationship for the purposes of demonstrating the absence of general solicitation. Here, the SEC is kind enough to oblige by offering an actual definition: A substantive relationship is one in which the issuer (or a person acting on its behalf) has sufficient information to evaluate, and does, in fact, evaluate, a prospective offeree’s financial circumstances and sophistication, in determining his or her status as an accredited or sophisticated investor. The SEC also specifically cautions here that mere self-certification is insufficient, in and of itself, to establish a substantive relationship. This question asks whether anyone other than BDs and investment advisers can form a pre-existing, substantive relationship with a potential investor in order to demonstrate the absence of general solicitation. The short answer here, again, is yes. What should be kept in mind is that it is the nature of the relationship which broker-dealers and investment advisers have with their clients, rather than the mere fact of the relationship itself, which allows them to demonstrate the existence of such a relationship. Thus, as the SEC puts it, there may be facts and circumstances in which a third party, other than a registered broker-dealer [or registered investment adviser] could establish a pre-existing, substantive relationship. Practically speaking, it’s possible but difficult. Unless the third party (such as the issuer itself) has either a pre-existing business relationship or some kind of recognized legal duty to its offerees, the SEC cautions that it will be more difficult to establish a pre-existing, substantive relationship. For this reason, if the issuer will not be using an intermediary such as a registered BD or investment adviser, it may wish, for pragmatic reasons, to consider offering securities under Rule 506(c), rather than Rule 506(b), thus avoiding the general solicitation issue. Finally, Question 256.33 asks whether the holding of a “demo day” or “venture fair” will necessarily constitute general solicitation. The short answer is no; whether such an event constitutes general solicitation depends, as usual, on the specific facts and circumstances. Here, the two primary considerations are 1) what is being presented; and 2) who is the audience. First, if the presentation does not involve anything that would be considered an “offer” of securities, there is no general solicitation issue. (Keep in mind, of course, the SEC’s broad interpretation of “offer” discussed above with respect to “factual business information.”) Second, if the presentation does involve an “offer” of securities, whether the event constitutes general solicitation will depend on who is invited to the event. If the only people attending are those with whom the issuer (either itself or through its intermediary) already enjoys a pre-existing, substantial relationship (or to whom it is being introduced through the sort of informal, experienced investor networks discussed above in Question 256.27), then the event will not constitute a general solicitation. (Keep in mind, however, that if materials related to the offering are distributed at such an event, and find their way to a wider public audience later, there may be a general solicitation issue.) Thus, if an issuer is considering holding an event such as a demo day or venture fair, and intends to rely on the “old” Rule 506(b) for its private placement, it must first determine whether its activities will be deemed by the SEC to constitute an “offer” of securities; if so, it must carefully restrict access to this event to those with whom it has a pre-existing, substantive relationship. Utah Private Placement LawyerWhen you need legal help with a securities law matter in Utah, please call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.
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DSO Questionnaire In Bankruptcy Are Online Divorces Legitimate? Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/what-is-general-solicitation-private-placement/ Online divorces can be just as legitimate and just as good of an idea as filing in-person at the courthouse, if your state allows it. Most states allow at least some of the divorce papers to be filed online, as well as the download of printable divorce forms from your state or county court’s website. If your divorce is uncontested, filing online may be the way to go. Getting divorced online is a common way for couples to end their marriage. Many companies provide divorce forms online. These websites prepare forms for you based on the information you provide. Some have attorneys or paralegals review the papers. Others are the do-it-yourself type where you fill out the forms yourself. Some states allow you to file for divorce online. These states have specific requirements for online divorce filing, so check your state’s court site to see whether your state allows e-filing for divorce. Divorce requirements can vary from county to county, so you may be able to e-file your papers in certain counties but not in others. If you’re unsure if your county and state allow filing a divorce online, call the clerk’s office in your county. Even if you use an attorney for divorce, the attorney may be required to file for divorce online in your state. If you’re filing an uncontested divorce, third-party sites that specialize in filing online divorces can help. Your divorce is uncontested if you and your spouse have settled the major issues such as custody, visitation, child support, spousal support, division of property and division of debt. Contested divorces can be difficult and can require a trial. While you may want to get divorced quickly, you shouldn’t do so where there are unresolved issues between you and your spouse. It’s great to have sites that can prepare a divorce, but you have to live with your divorce agreement that will be difficult to change later on. Using an attorney for a contested divorce is the right thing to do and the only thing that makes sense. Additionally, you can obtain documents for an online divorce but the document company does not act as your attorney. You may want to have an attorney review your documents, especially if your case involves a lot of property or involves expensive property. In these instances, filing for divorce without an attorney is probably not a good idea. How to Get a Divorce OnlineYour First Step is to call Ascent Law LLC right now. We do all the online divorce work for you. To get a divorce online, you need to do the following: Uncontested online divorce services can be fast and easy, but not all divorces lend themselves to this process. There may be certain factors or situations which would add a level of complication to the divorce. You should consider an online divorce if your marriage meets any of the following criteria: With pandemic quarantines, many divorce attorneys and mediators are working online and offering services via video-conferencing. In addition, several states have not required parties who have an agreement on all issues to appear in court in most cases while other states usual did want one or both there for the final hearing. Again, Covid has changed the landscape and with the courts closed in so many states, the process has been simplified to allow online filing and final hearings without appearing in court or by appearing via video conference. All in all, the vast majority of couples can process their divorce completely online without ever setting foot in a courtroom and the technology only continues to get better! If you are processing all of your paperwork yourself through an online service, and submitting any type of agreement to the court, it is always a good practice to have an attorney review it first. These are legal documents that will have an impact on your life, and that of your children, for many years to come, so it makes sense to make sure that agreement is what you want it to be. You can likely meet with that attorney online and just pay for the hour or two it takes them to review and discuss with you. Just answer as attorneys-on-call and via chat that can answer basic legal questions for a small fee. Benefits of downloading your divorce papers online, and filing them online, include: Where can I get divorce papers online?Call Ascent Law to get started. If you have hired an attorney or mediator to process your divorce, they will provide divorce papers for you; all while charging you a high hourly rate. You can get divorce papers often for free for yourself, by contacting your local courts. Many states provide online divorce papers for free or for a low price online. Whether you print free divorce papers from your the local court house’s online website, your attorney emails them to you, and you print at home, or an online divorce services provides them, these are typically going to be the same, official divorce documents that you would get in-person from your local court house. There should be no problem with the state recognizing your divorce papers if you print free divorce papers you get online, as long as if they are from a reputable source. Utah Online Divorce LawyerWhen you need legal help with an online divorce in Utah, please call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.
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How Do You Tell My Spouse I Want A Divorce? How To Get A Lawyer When A Detective Is Trying To Contact You? Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/are-online-divorces-legitimate/ Having a solid asset protection strategy is an important part of financial planning for any wealthy individual. Claims of fraudulent transfer pose the greatest possible threat to asset protection structures. Fraudulent transfer of assets, also known as fraudulent conveyance occurs when a person makes a transfer of assets with the explicit intent to delay or defraud creditors. The law governing fraudulent transfer of assets in the United States is the Uniform Fraudulent Transfer Act (UFTA). In 2014 the Uniform Law commission developed its viable replacement, the Uniform Voidable Transactions Act (UVTA). The new act more accurately represents its civil nature. This is very different from fraudulent conversion, which is taking someone else’s property. Constructive fraud occurs when a debtor unloads assets for less than a reasonably equivalent value. This would include selling assets to friends or relatives for far less than they are worth or gifting them away. Debtors and creditors will commonly argue about what is considered a reasonably equivalent value for contested assets. Asset protection structures, including trusts and limited liability companies, are subject to the laws of the jurisdiction where they are held. There are a number of reasons why it is preferable to use an offshore jurisdiction over a domestic jurisdiction for asset protection planning. The most important reason for using an offshore jurisdiction has to do with fraudulent transfer claims. It is because that most of the leading offshore jurisdictions that specialize in asset protection do not recognize foreign judgments. Creditors are required to travel to the jurisdiction where the asset protection structure is held and have their case tried by the local courts. This means airfare, hotel rooms, and legal fees. Creditors are usually discouraged from making claims of fraudulent transfer in offshore jurisdictions because the cost and time required are very high. If a creditor does try to bring a claim of fraudulent transfer in an offshore jurisdiction, the odds are not in their favor. Offshore jurisdictions tend to have much higher burdens of proof than domestic jurisdictions. The burden of proof for claims of fraudulent transfer lies firmly on the shoulders of the creditor in offshore jurisdictions. Creditors must prove beyond a reasonable doubt that the debtor intended to defraud them, specifically, as opposed to any other creditor, when transferring their assets. They must also prove that making the transfer rendered the debtor insolvent. Offshore StatutesStatutes of limitations in offshore jurisdictions are generally much shorter than statutes of limitations in domestic jurisdictions. In some favorable jurisdiction, the statute of limitations that helps you avoid fraudulent transfer claims is as short as one to two years. Once the statute of limitations has passed, a creditor is no longer able to make a claim against a transfer of assets held in an offshore asset protection structure. In addition to asset protection structures, jurisdiction matters on timing state to state as well. The timing of a fraudulent conveyance in Utah might be different than the statute of limitations in New York. How To Avoid Fraudulent TransferIndividuals looking to protect themselves from fraudulent transfer claims should take the following steps: Consequences for Fraudulent TransferThere is a big difference between fraud and fraudulent transfer. Fraud is a criminal offense. Fraudulent transfer, on the other hand, is a civil matter. Fraud occurs when an individual intentionally uses deception for the purpose of personal gain. Fraud is subject to the penalties of criminal courts. Penalties for fraud can include fines and imprisonment. In contrast, civil courts hear cases regarding fraudulent transfer of assets. Creditors can reach unprotected assets if a transfer is deemed fraudulent. In the majority of cases, only assets which creditors are seeking to claim are denied protection, unless one holds them in an effective asset protection structure. The remainder of the assets will remain untouched. This includes including any assets included in the transfer over the value of the creditor’s claim. According to the American Bar Association, “only the portion of a fraudulent transfer that is necessary to satisfy a creditor’s claims is avoidable under the UFTA.” A claim of fraudulent transfer is not generally going to send anybody to jail. However, they are quite costly for the unprepared in terms of lost assets. In terms of “how to avoid fraudulent transfer,” the best way that a person can defend against having a fraudulent transfer made against them is to avoid the basis for that claim. Engage in asset protection planning well before anticipated creditors appear on the horizon. This is far and away the most effective way to avoid such a claim. This asset protection plan should center around the use of offshore asset protection tools such as offshore trusts and LLCs. Assets transferred into a properly established asset protection structure years in advance of a claim will likely have passed the statute of limitations. Creditors are unable to make effective claims against transfers of assets on which the statute of limitations has expired. How To Avoid A Fraudulent ConveyanceTo avoid fraudulent conveyance, simply transfer your assets into a protective structure well before you need protection. The problem is that many people wait until it is too late to enact an asset protection plan. There are ways to protect yourself after the fact. But you are in a better position by acting before the need arises. When you properly protect your assets, creditors have a difficult case to prove fraudulent intent. It is important to note that fraudulent conveyance / transfer is a civil issue. It is not a criminal matter and in almost all cases you cannot go to jail for it. Establish your entire asset protection plan and create the tools and vehicles you will use. Place your assets into these containers and then legal tools secure your assets. You can set up your asset protection plan so you can activate it when you are in a legal battle. This is the key to properly creating an asset protection strategy. You do it when you don’t have to. Set up all of your tools and move your assets legally. Thus, you activate your asset protection plan and your wealth is protected when legal storms arise. You can activate your asset protection plan all the way into a legal battle, if needed. With an offshore trust, for example, you move your assets out of reach of the U.S. legal system. The best way to avoid fraudulent conveyance rulings, however, is to you set up your asset protection before you need it. There are some things that you can do after legal action has started. It is just a lot more pleasant experience in the courtroom if you had acted beforehand. Avoid Fraudulent Conveyance Legal ActionsA judge would be hard pressed to legally force you to dissolve a legal entity that you have established. He can evaluate the following “badges of fraud.” If a judge challenges part of your asset protection planning as a fraudulent conveyance and the other side wins, it is really not all that painful. A court can only try to put you back into the same financial condition you were before you enacted your asset protection plan. A Civil Matter, Not CriminalIt is important to note that the terms “fraudulent transfer” and “fraudulent conveyance” are often misunderstood. Many people mistakenly confuse these two technical legal terms with the civil tort of common law fraud or even with criminal fraud. It is not either. However, as a result of this misconception, some people become fearful that asset protection planning could make them liable for damages in tortuous fraud or even charged with criminal fraud. It is just the opposite. The assets are yours and you have the right to protect them if it is in your best interest. Fraudulent Conveyance Court RulingsSeveral state court decisions, as well as most federal courts have held that fraudulent conveyances to avoid creditors’ claims are not tortuous fraud and are not criminal fraud. Thus, a creditor who tries to assert that part of your asset protection planning involved some sort of fraudulent conveyance does not have the legal capacity to charge you with the crime of fraud and cannot seek additional civil damages based on the common law theories of fraud, deceit, or misrepresentation. “There is nothing whatever wrong with respondents pursuing their own interest. Indeed, the fact that it is entirely proper and entirely predictable is the very premise of the point we are making. That, this new remedy will promote unregulated competition among the creditors of a struggling debtor.” A fair and proper reading of the opinion suggests, clearly, that the transfer of freely alienable property by a debtor is lawful and the creditors, likewise, are free to pursue their legal rights. The Badges of FraudThe following are badges of fraud used by courts to determine whether or not the transfer should be deemed a civil fraudulent conveyance: What Is An Asset Protection Plan?In summary, just as any creditor can try to attack the creation of an asset protection plan, any debtor has the right to establish one. The creditor may suggest that certain transfers of your assets to other people or entities or investing money in exempt asset vehicles (such as annuities) constitute a fraudulent transfer or fraudulent conversion. They can claim that you made the conveyances with the intent, or effect, to hinder, avoid, or delay creditor collection. Someone can challenge just about any asset protection conveyance as “fraudulent” for a time period between six months to four years dependent on state specific statutes. The time limit is called statute of limitations on fraudulent conveyance. This is the case even if the challenging creditor had no claim when you activated your asset protection planning. Why You Need Specific And Valid Asset Protection TechniquesUnder some circumstances, assets can be protected without having to give up all ownership interests. For example, assets may be placed in a joint tenancy, tenancy-by-the-entirety or be owned through a limited partnership or placed in a retirement plan. Joint TenancyThese techniques have shortcomings, however. Holding real estate or other assets as joint tenants with right of survivorship still would allow a creditor to force partition and sale of the debtor’s interest. The only benefit would be if the debtor dies before the creditor perfects his claim. Then it is too late for the creditor to enforce his claim against the debtor’s interest. Limited PartnershipsLimited partnerships, if properly drafted, can offer some protection for assets owned by the partnership. For example, if the debt is unrelated to the partnership’s activities, the creditor will only be entitled to the income allocated to the debtor’s partnership interest, if the general partner decides to distribute the income. Further, the creditor will not gain any interest in the asset itself or any other rights in the partnership. However, if the lawsuit is related to the activities of the limited partnership, then creditors can reach all partnership assets and all assets of the general partners. In such instances, limited partners risk the loss of their investments in the partnership. Retirement PlansRetirement plans may also offer significant asset protection. The U.S. Supreme Court has ruled ERISA-qualified plans are protected against creditors. Regular IRAs have no federal protection, but are protected in some states by statute. However, there is still some question whether Roth IRAs are similarly protected. Revocable or living trusts offer no asset protection to the creator of a trust since the creator still has control over the assets and can be required to use them to pay legitimate debts. In most states, irrevocable trusts are not much better if the creator retains an interest as a beneficiary since that interest can still be reached. In addition, in almost every state, the trust is subject to a legal doctrine known as the Rule against Perpetuities. This may limit the creator’s ability to protect the assets for unlimited future generations or to take advantage of generation-skipping transfer tax exceptions. Additionally, the trust’s investments are limited by Securities and Exchange Commission (SEC) regulations, so certain foreign investments are not accessible to the domestic trust. Domestic trust assets are easy for lawyers to discover and attack as fraudulent. The burden of proof is typically fairly easy to meet, and the transfer need only have been fraudulent as to any creditor, even one not part of the lawsuit. Once the transfer is proven fraudulent, the entire amount of property in the trust is set aside and available for all current creditors. There is not great expense or risk to attacking domestic trusts. Usually, it is done on a contingency fee by the creditor’s attorney. Finally, there are long statutes of limitations to attack a fraudulent domestic transfer; six years or more is typical. Fraudulent Transfers LawyerWhen you need a Utah Fraudulent Transfers Lawyer, please call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.
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8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
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