Trusts are estate-planning tools that can replace or supplement wills, as well as help manage property during life. A trust manages the distribution of a person’s property by transferring its benefits and obligations to different people. There are many reasons to create a trust, making this property distribution technique a popular choice for many people when creating an estate plan. Creation of a TrustThe basics of trust creation are fairly simple. To create a trust, the property owner (called the “trustor,” “grantor,” or “settlor”) transfers legal ownership to a person or institution (called the “trustee”) to manage that property for the benefit of another person (called the “beneficiary”). The trustee often receives compensation for his or her management role. Trusts create a “fiduciary” relationship running from the trustee to the beneficiary, meaning that the trustee must act solely in the best interests of the beneficiary when dealing with the trust property. If a trustee does not live up to this duty, then the trustee is legally accountable to the beneficiary for any damage to his or her interests. The grantor may act as the trustee himself or herself, and retain ownership instead of transferring the property, but he or she still must act in a fiduciary capacity. A grantor may also name himself or herself as one of the beneficiaries of the trust. In any trust arrangement, however, the trust cannot become effective until the grantor transfers the property to the trustee. Example: A grantor transfers money to a bank as trustee for the grantor’s children, with the bank instructed to pay the children’s college expenses as needed; the bank carefully manages the money to ensure there are funds available for this purpose. The children do not have control of the funds and cannot use the funds for any other purposes. Testamentary and Living TrustsTrusts fall into two broad categories, “testamentary trusts” and “living trusts.” A testamentary trust transfers property into the trust only after the death of the grantor. Because a trust allows the grantor to specify conditions for receipt of benefits, as well as to spread payment of benefits over a period of time instead of making a single gift, many people prefer to include a trust in their wills to reinforce their preferences and goals after death. The testamentary trust is not automatically created at death but is commonly specified in a will and so as a will provision, the trust property must go through probate prior to commencement of the trust. Example: A parent specifies in her will that upon her death her assets should be transferred to a trustee. The trustee manages the assets for the benefit of her children until they reach an age when the parent believes they will be ready to control the assets on their own. A living trust, also sometimes called an “inter vivos” trust, starts during the life of the grantor, but may be designed to continue after his or her death. This type of trust may help avoid probate if all assets subject to probate are transferred into the trust prior to death. A living trust may be “revocable” or “irrevocable.” The grantor of a revocable living trust can change or revoke the terms of the trust any time after the trust commences. The grantor of an irrevocable trust, on the other hand, permanently relinquishes the right to make changes after the trust is created. A revocable trust typically acts as a supplement to a will, or as a way to name a person to manage the grantor’s affairs should he or she become incapacitated. Even a revocable living trust usually specifies that it is irrevocable at the death of the grantor. Transferring AssetsIrrevocable trusts transfer assets before death and thus avoid probate. However, revocable trusts are more popular as a means of avoiding the probate process. If a person transfers all of his assets to a revocable trust, he owns no assets at his death. Therefore, his assets do not have to be transferred through the probate process. Even though the grantor of the trust died, the trust did not die, so the trust assets do not have to be probated. However, trusts avoid probate only if all or most of the deceased person’s assets had been transferred to the trust while the person was alive. To allow for the possibility that some assets were not transferred, most revocable living trusts are accompanied by a “pour-over” will, which specifies that at death, all assets not owned by the trustee should be transferred to the trustee of the trust. Example: Mark sets up a revocable trust, which states that on his death, his assets should be distributed to his children in equal shares. Mark transfers his house to the trust, but does not transfer some rental real estate he owns. At Mark’s death, the trust can distribute the house outside of the probate process, but the rental real estate will have to be probated. Based on the will, the probate court will order the rental real estate be transferred to the trustee, who will then distribute it according to the terms of the trust. Successor TrusteesAlthough a grantor may name himself as trustee of a living trust during his lifetime, he should name a successor trustee to act when he is disabled or deceased. At the grantor’s death, the successor trustee must distribute the assets of the trust in accordance with the directions in the trust document. In many states, certain people must be notified at the death of the grantor. Free Consultation with a Utah Trust LawyerIf you are here, you probably have an estate issue you need help with, call Ascent Law for your free estate law consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Which Bankruptcy is Reorganization? 5 Reasons You Need a West Valley City Car Accident Attorney Which Bankruptcy is Right for Me? from http://www.ascentlawfirm.com/overview-of-trusts/
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Most car accident victims will benefit from hiring a West Valley city car accident attorney as soon as a car accident happens. If you’re questioning why a lawyer with experience in this type of law would be beneficial to you, here are a few reasons. Many people that have a car accident think it is best to handle it on their own. But you may be surprised by all the benefits a lawyer can offer you if you’ve suffered a personal injury from a car accident. A Lawyer Will Become Your VoiceFrom the time you retain a West Valley city car accident attorney until the time your claim is finished, your lawyer will be there every step of the way. Not only will they be your voice if the case goes to trial, but your lawyer will be how you will communicate with the insurance company and the driver of the other vehicle. It’s important when you get into a car accident – whether it is your fault or not, that you don’t just talk to anyone about the accident, so your own words cannot jeopardize any claims you have. It’s also important to hire a West Valley city car accident attorney to do the talking for you. Investigation ProceduresWhen a car accident happens you need to gather evidence such as police reports to prove who was at fault. If you are unable to or don’t know how to go about this, hiring a West Valley city car accident attorney is one of the best options. A lawyer will be able to handle and provide all the evidence for the claim for the insurance company or to prove in front of a judge and jury why you deserve compensation. Evaluation Of CompensationA lawyer will also be the one that will be in charge of figuring out how much compensation you should get. Emotional distress, physical bodily harm, or loss of income and more, calculating what you should get can become a long and complex process. A lawyer who deals with this type of personal injury often knows exactly how to evaluate your claim and figure out what type of compensation you should be getting for lost income or present/future health issues that revolve around the accident. They Will be Your AdvocateA majority of car accident are settled out of court. But, if you have an accident that ends up going to trial, you will need an advocate on your side who will help you with your case and speak on your behalf. Laws Differ From State to StateIf you’ve recently moved to Utah, you may not be aware of all the different laws and regulations put into place for insurance companies. These include the right to sue or not sue, or even fault vs no fault claims. if this is the case then you definitely need to consider hiring a lawyer in that state who deals with that states laws daily. Even if you have lived in Utah your entire life, there may have never been a time you were in an accident and will need an experienced professional to help you through the claim. 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
4.9 stars – based on 67 reviews
How to Divorce Proof Your Business Inside and Outside LLC Liability from http://www.ascentlawfirm.com/5-reasons-you-need-a-west-valley-city-car-accident-attorney/ It’s time to delve a bit deeper and discuss some of the financial nuances you may encounter as the division of separate and marital property proceeds during your divorce. For example, it’s likely your case will involve assets that have appreciated in value during the course of your marriage. Here’s the issue: In many states, if your separately owned property increases in value during the marriage, that increase in value may be considered marital property. What’s more, the division of this particular subset of marital property can be further complicated by the differentiation between active and passive appreciation of the assets. Did the Asset Appreciate?Let’s take this step-by-step. First, understand that an asset can increase in value in one of two ways. An asset can either
While there are many complex rules that govern division of property and asset appreciation, here are a few fundamentals, in very general terms: In community property states, where both spouses are typically considered equal owners of all marital property, the division of appreciated assets is often computed based on a series of formulas. The calculations can prove enormously complex, but here’s a short summary of the most salient points by David M. Wildstein, Esq. in his brief, Allocating Active and Passive Appreciation of a Separate Business Asset for Equitable Distribution: “If the increase in a separate asset is passive, it is not a part of the community estate as long as no community resources were used for the asset. If the asset increases due to the effort of either party, it is part of the community. The time, toil and talent of each spouse is perceived to be a community asset. To reach a fair result, community property law created the doctrine of reimbursement: ‘The fundamental purpose of the doctrine is to bring back into the community estate value which was created by community contributions, but which took the form of appreciation in the value of a separate asset.’” Utah is an Equitable Distribution StateIn equitable distribution states, it’s not as “straightforward” because none of the equitable distribution states use a formulaic approach as described above for community property states. In equitable distribution states, passive appreciation on separate property remains separate property. But, active appreciation on separate property can be considered marital property. What can qualify as active appreciation on separate property? That’s a very good question, and courts often struggle to make this determination. Typically, the judge will use a three-pronged test to evaluate active appreciation in separate property. The judge must find that:
Of course, as with other aspects of divorce proceedings, the rules governing the determination of asset appreciation can vary from state to state. In some states the burden of proof is on the spouse who claims the appreciation is passive. In other states, it’s the reverse –the burden of proof rests on the spouse who claims the appreciation is active. Clearly, asset appreciation is a complicated topic that demands thorough and thoughtful consideration. It’s essential that you seek guidance from a qualified divorce team concerning the particular circumstances of your individual case. Free Consultation with Divorce Lawyer in UtahIf you have a question about divorce law or if you need to start or defend against a divorce case in Utah call Ascent Law at (801) 676-5506. We will fight for you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Help a Loved One Make a Power of Attorney How to Divorce Proof Your Business from http://www.ascentlawfirm.com/asset-division-in-divorce/ It is hardly unusual for someone to be elected to political office after achieving success in the private sector. But red flags are raised when a newly elected official’s current investments or business interests stand to benefit from policy decisions made through that office (whether directly or through appointed officials). This is what’s called a conflict of interest, which creates a perception of impropriety regardless of actual intentions. One way to minimize such concerns is to establish a “blind trust,” in which the elected official transfers control of his or her assets to a trustee. The following information will help you understand what blind trusts are and how they’re set up, their use in both the public and private sector, how federal law addresses potential conflicts of interest with elected officials, and more. What Is a Blind Trust and When Are They Used?As its name implies, the purpose of the blind trust is to ensure that the beneficiary of the assets in question — whether it’s a C-level executive or the President of the United States — is “blind” to how these assets are being managed. They typically are formed when someone’s position of authority provides an opportunity for “self-dealing” through policy decisions or inside information. Additionally, lottery winners often set up blind trusts in order to protect their privacy. For example, a corporate executive who is compensated with shares of the company’s stock might set up a blind trust to manage these shares. This not only eases concerns over insider trading, but also allows her to avoid certain restrictions on trading securities. Similarly, an elected official with business interests in other countries may be tempted to use his office to ease trade barriers or otherwise enrich himself through policy decisions. A blind trust, at least in theory, would alleviate some of these concerns. How Blind Trusts Are Set UpAdditional state and federal regulations often apply to elected officials with potential conflicts of interest, but blind trusts are generally set up as follows:
Business interests and other non-liquid assets generally must be liquidated prior to being transferred to a blind trust. So an elected official who runs a business, for instance, would have to sell that business before the proceeds are transferred. Stocks, bonds, and other financial assets may be transferred directly to the trust. Blind Trusts in the Public SectorThe federal Ethics in Government Act of 1978 requires government officials to disclose their financial holdings unless they are placed in a qualified blind trust. They are not required to sell off their assets or transfer them to a blind trust, but many do in order to avoid scrutiny or the appearance of conflicts of interest. A qualified blind trust is defined as “any trust in which a reporting individual, his spouse, or any minor or dependent child has a beneficial interest in the principal or income” and meets these requirements:
Most states have similar laws for state government officials, which closely align with federal regulations under the Ethics in Government Act. Free Initial Consultation with a Utah Trust LawyerIf you have a question about Trusts in Utah, call Ascent Law for your free consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
from http://www.ascentlawfirm.com/what-is-a-blind-trust/ It can happen to the best of entrepreneurs. While a new business owner is putting in long hours to build a business, a marriage can fray. The next thing the owner knows, his or her spouse may be filing for divorce. This scenario is all too common. Forty percent to 50 percent of all first marriages in the U.S. end in divorce, according to a 2010 report by the National Marriage Project at the University of Virginia. The divorce rate for second marriages is even higher. For those whose marriage is in trouble or who are about to begin a divorce, a few strategies can help preserve a business. Once the divorce proceedings start, entrepreneurs won’t likely be able to implement some other legal maneuvers that, if accomplished in happier times, could keep their business from landing in a soon-to-be ex’s possession. Businesses Can Be Destroyed By DivorceIf you’re not careful in a divorce, you could find your ex is your business partner — or you could be fighting to keep your enterprise from being sold to raise cash. Or you might lose the business to your ex. That’s what happened to Tereson Dupuy, founder of FuzziBunz, an online cloth-diaper business based in Lafayette, La. Dupuy launched the company three years into her marriage after seeking better diapering options for her second child. But in 2005, close to the couple’s 10-year anniversary, the marriage unraveled. Dupuy discovered FuzziBunz would be considered a joint marital asset. Louisiana is one of a handful “community property” states, including California, which assume each divorcing spouse owns half the property accumulated during the marriage. Dupuy says the stress of the divorce drove her into a nervous collapse and within 24 hours a judge put her husband in control of the company. It took Dupuy a year and a large lump-sum payment to her ex — plus $15,000-a-month payments to her ex over many years — to regain ownership. The payments drained cash, and bankers considered her need to pay them outstanding debt, making it hard for her to borrow needed growth capital. Is your marriage headed toward a divorce?Here are seven strategies to consider if a divorce is threatened or already underway and your company is considered a joint asset.
One bright spot for entrepreneurs: It’s rare that a business ends up being sold off to satisfy a divorce settlement, Clement reports. That’s because it would deprive the business owner of the future income needed to pay support payments. Preventive Moves To Protect Your Business in DivorceTake action while your relationship is still rosy and you may greatly increase your odds of surviving a divorce with your business intact.
Here are five pre-emptive strategies that can help protect you from losing your business in a divorce.
Free Consultation with a Divorce Lawyer in Utah that Can Protect Your BusinessIf you have a question about divorce law and how to protect your business in a divorce case in Utah call Ascent Law at (801) 676-5506. We will help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Filing For Divorce While Living Abroad Attorneys in Salt Lake City Utah Help a Loved One Make a Power of Attorney from http://www.ascentlawfirm.com/how-to-divorce-proof-your-business/ Watching a loved one decline is hard enough by itself, but the process can become a nightmare if that loved one hasn’t set up powers of attorney for healthcare and/or finances. It’s imperative that family members and loved ones make decisions while they are healthy about whom they want to make decisions for them if and when they become incapacitated. There are two key areas where a person needs to establish a power of attorney in someone they trust: healthcare and finances. Power of Attorney for HealthcareThe power of attorney for healthcare is given to the person you want to make medical decisions for you in an emergency. Even though you may have set out your wishes in your healthcare declaration, such documents can never cover every circumstance, and the person who has a durable power of attorney for healthcare is the person who makes decisions not covered by your healthcare directive. Keep in mind that the person with a power of attorney for healthcare can never contradict the terms of your healthcare declaration. Depending on the state you live in, the person you grant a durable power of attorney for healthcare will typically be called your “agent,” “proxy,” or “attorney-in-fact”. The typical rights for this person include:
In granting the power of attorney, you can give a person complete authority to make all decisions, or limit them significantly to make only specific decisions. Be careful when greatly limiting such power, however, since the primary reason to have such a person is because your living will cannot cover every possibility. If you want specificity, it is better to do that in your living will, which the person with a durable power of attorney can’t override anyways. In order to create a power of attorney for healthcare, most states only require that you be an adult (typically 18) and be competent when you create the document. This document takes effect when your doctor declares that you lack the “capacity” to make your own health care decisions. The power of attorney for healthcare is generally only extinguished upon your death, revocation by you or a court, or upon divorce if the power of attorney was granted to the ex-spouse. Power of Attorney for FinancesThe power of attorney for finances is given to allow someone else to manage your finances in the event that you become incapacitated and are unable to make those decisions yourself. More precisely, the financial power of attorney is a document that grants someone legal authority to act on your behalf for financial issues. This person’s official title depends on the state you live in, but is often referred to as your agent or as an attorney-in-fact. Just as with the power of attorney for healthcare, you can set the limits of your financial agent’s power, granting as much or as little power as you think is appropriate. When deciding whether to set limits, consider the kind of tasks your agent will likely be asked to perform:
Your agent cannot do whatever he or she wants to do, but must act in your best interests. One area of potential conflict to keep in mind is in regards to paying for medical expenses. If your financial and medical agent aren’t the same person or disagree on medical care, the financial agent can make receiving medical care difficult. To create a power of attorney for finances, most states offer simple forms to fill out. Although most states don’t require that you use these forms, it is always a good idea to do so. Generally, the document must be signed, witnessed and notarized by an adult. If your agent will have to deal with real estate assets, some states require you to put the document on file in the local land records office. In addition, many banks have their own forms, and while not strictly necessary, it will make the process much easier if your bank knows who your financial agent is. Finally, the power of attorney for finances is generally only extinguished upon your death, revocation by you or a court, or upon divorce. Free Consultation with an Estate Planning Lawyer in UtahIf you are here, you probably have an estate issue you need help with, call Ascent Law for your free estate law consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Lawsuits About Real Estate Contracts Filing for Divorce While Living Abroad from http://www.ascentlawfirm.com/help-a-loved-one-make-a-power-of-attorney/ Although this article provides a basic overview of international divorce, we are by no means suggesting you should handle a foreign divorce on your own. Transnational divorce is a complex and a fairly new field of the law. You should speak with an experienced family law attorney who can guide you through this process and ensure your divorce is valid. When the Filing Spouse Lives OverseasFiling for a divorce while living abroad often presents complex legal questions. First of all, you may need to abide by local law in order to get a divorce. If so, you should contact the U.S. Embassy or Consulate in your area to obtain a list of local attorneys that can help you get the divorce process started. Check the U.S. Department of State’s website for a list of all U.S. Embassies, Consulates and Diplomatic Missions and a link to their websites. Will the United States recognize a foreign divorce decree?The short answer is yes, but only to a certain extent and not in all circumstances. Most states recognize divorce decrees from foreign countries as long as the foreign country ensures certain procedural requirements have been met (such as proper notice to the parties). To find out if a foreign divorce decree is considered valid or is recognized in your state, contact your state’s Attorney General. You could also contact an experienced family law attorney in your area. Although a United States court is likely to recognize a foreign divorce decree as having terminated your status of being “married,” foreign divorce orders may not be effective for dealing with all of the issues in your divorce. For example, if your children are U.S. citizens residing in the United States and you file for divorce while living abroad, the foreign court is not likely to issue orders regarding custody of the children, because it will not have jurisdiction (authority) to make child custody orders over U.S. citizens living in the United States. And, even if the foreign court issues orders that purport to deal with the custody of your minor children, a United States court is not required to honor such foreign custody orders. The United States court (the local state court) will have jurisdiction over the children and will issue its own custody orders. Finally, a foreign divorce decree may not be effective to divide property, such as retirement benefits, located in the United States. When the Filing Spouse Lives in the United StatesIf you are living in the United States and want to file for divorce from a spouse that’s living abroad, you’ll want to talk to an experienced attorney who can guide you through the process and make sure you are taking all necessary steps. First, you’ll need to file a petition (paperwork) for divorce in your local court, and make sure you meet state and local residency requirements. You’ll also need to have a copy of the divorce petition and a summons “served” (meaning personally delivered) on your spouse, unless your spouse agrees to waive (forgo) the process requirements. If your spouse agrees to waive personal service of process, then he or she can sign an affidavit stating they have been served, and you can file that with the local court and move on to the next phase of the divorce. If not, and your spouse insists on service of process or tries to avoid service, things will be more complicated. You may need to comply with the laws regarding service of process for the foreign country where your spouse lives. If the country where your spouse lives is a member of the Hague Service Convention, it will govern the international service of process. If not, you’ll have to figure out how service can be completed. In some countries, you may serve the summons by a letter request or “Letters Rogatory,” while in others you must have the paperwork served on a central government authority or an overseas agent who will then guarantee delivery of the papers on your spouse. In all cases, you’ll probably want to speak with an attorney here in the United States and an attorney in the foreign country who can make sure service is being handled correctly on that end. Next, the local state court will need to determine if it has jurisdiction (authority) to make orders over your spouse. This will depend, at least in part, on the extent of your spouse’s contacts with the state. Whether or not the local state court can issue orders over your spouse in the divorce proceeding will also depend on a variety of other factors, including whether or not you seek orders regarding custody of the children or division of property. Your attorney(s) will need to perform a careful analysis of the facts of your case and the laws regarding your spouse’s country of residence. Overseas Divorce in the MilitaryThe divorce process for U.S. military spouses can be a bit trickier than civilian matters, as the U.S. military has its own codes and processes that govern divorce-related matters. In this situation, you should consult a lawyer with experience in military divorce to ensure that the filing, processing, and serving of divorce papers are all handled correctly. Free Consultation with a Utah Divorce LawyerIf you have a question about divorce law or if you need to start or defend against a divorce case in Utah call Ascent Law at (801) 676-5506. We will help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Can Prenups Affect Child Support? Talking to Children About Divorce from http://www.ascentlawfirm.com/filing-for-divorce-while-living-abroad/ Not everyone can challenge a will. For instance, you cannot challenge your cousin’s will just because you believe his estate would be better off in the hands of another relative. In addition, you cannot contest a will just because you do not believe you received a fair share. According to Utah probate law, only “interested persons” may challenge a will – and even still only for valid legal reasons. The Probate Code identifies “interested persons” to include children, heirs, devisees, spouses, creditors, or any others having a property right, or claim against, the estate being administered. Therefore, those who may challenge a will generally fall into one of three main categories: (1) beneficiaries of a prior will, (2) beneficiaries of a subsequent will, and (3) intestate heirs. You Must Have Standing to Challege a WillWhile state laws vary from state to state, all states have laws that must be met before a will contest may take place. The first requirement is “standing”. A person who has “standing” to challenge a will is typically someone who is named on the face of the will (such as the beneficiary) or someone who is not the beneficiary, but who would inherit (or lose) under the will if the will was deemed invalid. Standing is the first requirement to overcome to contest a will. You must either show that you were named on the will (or should have been), or show that you would have received something of value (typically money) if the person had died without a will. Are you a Beneficiary of the Will?Beneficiaries have standing to challenge a will, whether or not they are relatives of the deceased. Beneficiaries are those who are named in a will and can include your spouse, children, grandchildren, or other relatives, but can also include friends, charitable organization (like churches, synagogues, and universities), charities, and even pets. Are You one of the Deceased Heirs?Heirs have standing to challenge a will because if a testator dies without having a will, heirs would receive a share of the estate through the laws of intestate. Heirs are the most commonly named beneficiaries to a will. Heirs are relatives who inherit under a will when a decedent dies “intestate”, or without a will. This typically includes spouses, children, parents, grandparents, and siblings. Heirs can challenge a will if they believe there were omitted or left with a disproportionate share in the will. Are you a Minor?Under some laws, minors who would like to challenge a will may do so, but only after they reach the age of majority (typically age 18). This is because minors are not legally able to initiate legal proceedings, except under the guidelines of an executor or court representative. Does the Will have a ‘No Contest’ Clause?Wills sometimes have what is known as a “no contest” clause as a condition of the will. A “no contest” clause has the effect of disinheriting someone out of a will. If a beneficiary losses a challenge under the will, the beneficiary may be left out from inheriting under the will, thus disinheriting the will. Because a “no contest” clause often forces a contesting beneficiary to make a “take it or leave it” decision or risks losing everything, “no contest” clauses are generally not enforceable and, in most states, anyone with standing can challenge a will if they have valid reasons to challenge it. Free Consultation with a Probate Lawyer in UtahIf you are here, you probably have an estate issue you need help with, call Ascent Law for your free estate law consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
from http://www.ascentlawfirm.com/who-can-challenge-a-will/ Normally, when one spouse dies passing on his/her assets in a last will and testament, the estate will be taxed heavily before the beneficiaries receive it. To avoid this steep estate tax, spouses can set up an AB trust, where each spouse leaves their property to an irrevocable trust. When it comes to estate planning, an AB trust is a trust created by married couples to maximize their federal estate tax exemptions. A lot of people believe that AB trusts only benefit those with large estates. The truth is anyone who may owe estate tax can benefit from an AB trust. How the AB Trust System WorksWhen the first spouse dies, the beneficiaries (usually the couple’s children) named in the trust receive that spouse’s property. However, this irrevocable trust is to be used for the benefit of the surviving spouse, who does not technically own the property. There is a crucial condition that the property can be used by the surviving spouse and that the surviving spouse may even spend principal in certain instances. Once the surviving spouse dies, all the property rights and benefits of the irrevocable trust pass to the surviving beneficiaries of the trust. Because the surviving spouse does not own the property, it is not subject to estate tax. Setting up an AB trust this way keeps the portion of the surviving spouse’s estate that is taxable half of what it would be without an AB trust. Surviving Spouse’s Rights Over the AssetsAs mentioned, the AB trust is left with the condition that it is to benefit the surviving spouse. This gives the surviving spouse some power over the assets, depending on the provisions of the trust. This is a part of probate law that some people struggle with. The surviving spouse’s rights and benefits include receiving all income from the trust property, including:
The surviving spouse maintains these rights until her death, at which time all of the property is distributed to the beneficiaries of the original trust, and all of the surviving spouse’s property is distributed to his or her beneficiaries. Disadvantages of an AB trustThe AB trust is irrevocable. Once one spouse dies, there cannot be any changes made to the trust. This can create some issues and has even caused friction between the surviving spouse and the named beneficiaries of the trust. As mentioned, the surviving spouse’s rights to use the property are limited. Where at one time this used to be the property he or she shared with his or her spouse, to do with as they pleased, this property is now restricted to certain uses and rights. Settling and distributing property in an AB trust can be expensive and often requires a lawyer and accountant. Furthermore, these tax laws are always changing. You’ll need to keep current, or hire a professional to keep you current, on these changes and what they mean for you and your trust. These changes may even encourage you to change or even revoke your trust. There is a lot of paperwork and bookkeeping required in an AB trust. The surviving spouse needs a tax ID number for the irrevocable trust and must file annual income tax returns on the trust. He or she must also keep records of all the AB trust property. Is an AB trust is Right for You?An AB trust is best suited for those married couples who are both over the age of 60 and do not have children from previous marriages. Often times when there are children from previous marriages conflicts arise between the surviving spouse and the deceased spouse’s children about who should share in the assets. If you think an AB trust might be for you or you have more questions, you should consult an attorney who can advise you based on your specific circumstances and your specific needs. Free Consultation with a Utah Estate Planning LawyerIf you are here, you probably have an estate issue you need help with, call Ascent Law for your free estate law consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
from http://www.ascentlawfirm.com/ab-trusts/ It seems like every child wonders when he or she can be treated like an adult. The answer usually varies depending on whether they are asking their parents or the legal system. In family law cases, emancipation of a minor (also called “divorce from parents”) refers to a court process through which a minor can become legally recognized as an independent adult. Through emancipation, a minor can take responsibility for his or her own welfare, and make the major decisions that parents typically would handle. Therefore, minors will generally need to establish their ability to independently live and support themselves before a court will grant emancipation. This section provides information on the emancipation process, from the basics of emancipation law and age restrictions to the rights and responsibilities that come with it. In addition, some states have unique minor emancipation laws, which are listed in this section. There are also resources for parents, including a guide to when and if their legal obligations to emancipated children continue. Benefits and Limitations of EmancipationThe benefits of emancipation are apparent to the minor: the ability to enter into contracts (including automobile and housing agreements), the ability to make their own education and medical decisions, and the ability to keep all of their income and determine how it is spent. For parents, they no longer need to support the child, financially or otherwise, and most child support will cease when the child is emancipated. However, emancipation does not make a minor an adult in terms of every law. Even an emancipated minor will have to wait until they reach the age of majority (usually 18) before they have the right to vote or get married. It should be noted that not every state provides the legal means for emancipation. Requirements for EmancipationEven though most emancipations are an effort to circumvent age requirements, there are still minimum ages that must be attained before a court will grant emancipation. These vary depending on the state, with some setting them as low as 14 and as high as 18 (where the age of majority is 19). There may also be notification requirements for the filing, and information that must be included in the emancipation filing, which can also vary depending on the jurisdiction. In most every case, a court will make a determination based on what it sees as the child’s best interests. Some factors would include the child’s financial and living situation, their maturity and decision-making ability, and any family history of abuse or neglect. Procedure for EmancipationIn certain circumstances, emancipation is automatic. For example, once a minor joins the armed forces or gets married, they are generally considered legally emancipated. In all other cases, the minor will have to petition the court for emancipation. The threshold of evidence a minor must show in order to be granted emancipation will vary, but normally the minor must prove financial independence, adequate living arrangements, and sufficient maturity. As noted above, the court will look to the minor’s best interest when making an emancipation ruling. Legal Assistance for EmancipationWhile it may be possible to petition the court for emancipation on your own, it never hurts to have some expertise on your side. A qualified family attorney or a local legal aid office can provide more specific guidance regarding the local requirements and emancipation procedures. Free Initial Consultation with Family Lawyer in UtahIt’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
4.9 stars – based on 67 reviews
20 Secrets to Building a Great Marriage from http://www.ascentlawfirm.com/emancipation-of-minors/ |
ABOUT USChild custodyLawyer in UT. If you need child custodylawyer, child custody, adoptionor family law attorney who does child custody, father’s rights, divorces andbankruptcy – both chapter 7 bankruptcy and chapter 13 bankruptcy law that cares about you, your family, your case, and is aggressive, call 801-676-5506now for afree consultation. Child custodyin Utah can be tough, so you need a smart child custodylawyer who can help you today. Call 801-676-5506 for the top child custodyattorney in Utah now. Archives
November 2020
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