Tuesday, February 6, 2018

Qualified Personal Residence Trust – QPRT

Qualified Personal Residence Trust

A home is oftentimes a person’s most valuable and long term asset. That said, in today’s very litigious society it is very important that people protect any exposed assets of value; especially their homes. The Qualified Personal Residence Trust is an excellent strategy to protect your home is to talk to an asset protection lawyer. A QPRT can even extend to secondary residences and vacation homes (depending on certain tax code conditions). In addition to the asset protection properties of the Qualified Personal Residence Trust or QPRT it also has several tax benefits.

What is a QPRT?

A Qualified Personal Residence Trust is a type of irrevocable living trust. It is designed to reduce the amount of gift and estate tax. Oftentimes, one incurs these taxes when transferring an asset to a beneficiary. The asset protection in a Qualified Personal Residence Trust comes into effect partially because it is an irrevocable trust. As a trust of this nature, it can protect the assets therein that it passes down to your beneficiaries. The law sees it as a valid legal method to protect an individual’s assets for their beneficiaries.

How it Protects Assets

It protects those assets, accordingly, from creditors and judgments. The trust’s irrevocable status means that you cannot readily change the conditions of the trust while the trust is in effect. That means once you put an irrevocable trust into effect no one can readily change it. Plus, the parties are not, by and large, legally obligated to comply with order an individual to change it. This helps to ensure that a judge cannot simply order a person to hand those protected assets to creditors. Plus, legal provisions typically forbid the judiciary from ordering a change of the conditions of the trust; for example, making one’s enemies at law the beneficiaries of the trust.

Lifetime Use of Home

With the Qualified Personal Residence Trust (QPRT) homeowners place their homes into the trust. The transferee(s) retain(s) the right to live in that home for a set number of years. During this time when the owner is living in the house he would not be paying rent. He would be responsible for all housing expenses like repairs, real estate taxes, and maintenance fees which is covered by Revenue Procedure 2003-42 [2003-23 IRB 993 section 4 Art. II (B) (2)]. Suppose the owner is alive after that predetermined number of years. In that case, the trust automatically transfers ownership of the home to the owners’ beneficiaries. The trust does this without triggering the estate tax.

Now I know what you may be thinking. “I outlived the trust and now I do not have a house to live in because it belongs to my beneficiaries.” You can easily solve this by placing certain provisions in the trust. One such provision is that the beneficiaries must rent the home out to the original owner of the house.

The attractive part is this. By paying rent after the QPRT has ended, a person is transferring additional assets to their beneficiaries; without having to pay any gift or estate tax. There is nothing stopping the kids from paying the rent money back to Mom and Dad. Plus they can use this money to cover their parent’s expenses. Plus if you decide to sell the house, the trust can use the proceeds to purchase another residence. In addition, it can cover other items for the parents, as the beneficiaries see fit.

5 Qualified Personal Residence Trust Benefits

  1. Asset Protection from Lawsuits

The Qualified Personal Residence Trust offers the benefits of a trust to protect a residence. At the same time, the owner can still live in the house while the trust is in effect. This means while the residence is held within the QPRT it is protected from judgments and creditors. The structure provides this shield for the lifetime of the trust. The owner can also live in the residence during the duration of the QPRT. They are able to maintain control of the residence. This means that the owner can still remodel or update the home. They can proceed without any restrictions from the trust.

  1. Gift Tax Benefits

The protection of the home is not the only benefit of the Qualified Personal Residence Trust. The Qualified Personal Residence Trust’s main advantage is its tax benefits. It provides these to both the property owner and the beneficiaries of the trust. When you transfer a home to the Qualified Personal Residence Trust it counts as a gift but a typical IRS gift tax. Instead, the IRS calculates a modified gift tax. The IRS determines this through their published tables and the amount of time the home stays in the Qualified Personal Residence Trust. They apply this to the value of the home. The predetermined amount of time is agreed upon when creating the QPRT. When this time has passed and the owner is still alive then the trust passes the home on to the beneficiaries. Again, this is free of any gift or estate tax.

So, how does the gift tax apply when the trust passes the house on to the beneficiaries? If the home has appreciated in value since its initial appraisal, the gift tax would be based on the initial value of the home. Incidentally, the IRS determines this using their own calculations – and not on the final value of the home. This would save the beneficiaries a great deal of money. That is because they would have to pay a gift tax on the initial value of the home and not on the appreciated value. What if the home’s value did not increase or stayed the same? In that case, the beneficiaries would not have to pay any gift tax on the home.

  1. Lifetime Use of Home

So now you may be thinking, “After passing my home to my heirs I may still want to live in it.” As mentioned above, the Qualified Personal Residence Trust allows for the original owner to pay rent, at a fair market rate, on the property. This seems like a strange notion but there is a tax benefit. By paying rent, the original homeowner is transferring assets to his beneficiaries without having to pay any sort of gift or estate tax on those assets.

In a QPRT the homeowner is essentially betting that they will live longer than the lifespan of the trust. But what happens if the owner dies before the trust ends? In that case the grantor (the homeowner) of the Qualified Personal Residence Trust, thereby, protects the home from seizure in lawsuits during his/her lifetime. Taxwise, the modified gift tax percentage on the property is placed back into the calculation. In that case, the normal tax laws apply. IRC section 2036(a)(1) governs the return of the property to the deceased homeowner’s estate.

  1. Estate Tax Benefits

Another benefit of the Qualified Personal Residence Trust is that it can enhance the tax benefits if a husband and wife own the home jointly. According to Treasury Regulations section 25.2702-5(c)(2)(iv) a husband and wife can both transfer half their ownership in the home into two separate Qualified Personal Residence Trusts. Each separate QPRT allows the husband and wife owners to live in the residence for a set number of years based on the conditions of each trust. Suppose one of the homeowners die before the QPRT ends. The half that was in the trust is now put into the estate and estate and gift taxes apply.

  1. Ability to Change Residences

So what happens if you want to sell the house that is in the trust and buy a new home? The trustee would simply sell the old home and buy a new one in the name of the existing Qualified Personal Residence Trust. If the new home is worth more than the old one then the trustee would have to pay out of pocket for the difference and would retain ownership of that percentage of the home.

If the new home’s value is less than the old one then Treasury Regulation section 25.2702-5(c)(7) and (8) would go into effect. In this case the excess funds would go back to the Qualified Personal Residence Trust grantor. But this would defeat the purpose of much of the tax benefits. The other option is to place the excess funds into the trust and convert those specific assets into a Grantor Retained Annuity Trust or GRAT, which would provide the trust’s grantor an annuity payment until the Qualified Personal Residence Trust ends.

7 Steps to Use a QPRT

  1. Draft the Trust
    The first step in a Qualified Personal Residence Trust is to have a professional write up the irrevocable trust agreement. You and your professional would decide who the trustees and the beneficiaries are. Then you decide how long you would retain the right to live in the residence before it is transferred to the beneficiaries. This initial planning stage is very important because as an irrevocable living trust it is very difficult if not near impossible to change its conditions once it goes into effect.
  2. Place Home in Trust

The second step is to fund the Qualified Personal Residence Trust with your residence. You accomplish this by creating a new deed that transfers the home from the owner’s name to the Qualified Personal Residence Trust’s name. You record this deed in the local county recorder’s office of the property.

  1. Appraise Home

The third step is to have an appraiser performs an appraisal on or near the date you transfer into the Qualified Personal Residence Trust. You do this to get the fair market value of the property to determine the gift tax.

  1. Report to IRS

The fourth step is to report the gift to the IRS. This is done by filling out a Form 709, United States Gift and Generation-Skipping Transfer Tax Return. You complete and file this form with the IRS on April 15th of year you transfer the property into the Qualified Personal Residence Trust.

  1. Reside in the Home

The fifth step is by far the easiest and that is to reside in the home and live your life as usual.

  1. Transfer to Beneficiaries

The sixth step occurs once the predetermined number of years for the Qualified Personal Residence Trust ends. The property is transferred to beneficiaries as detailed in the Qualified Personal Residence Trust. You accomplish by recording a new deed that transfers the residence from the trust’s name to the beneficiary’s names and documenting it in the land records for the property.

  1. Fair Market Rent

The seventh and final step is to pay a fair market rent for the property. That is, if the former owner wants to continue living there. The rent will transfer more assets to the beneficiaries free of gift taxes. Thus, it will reduce the size of the taxable estate.

Free Initial Consultation with a Lawyer

If you are here, chances are you need a lawyer to help you. Call Ascent Law for your free consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Monday, February 5, 2018

Joint vs. Sole Custody

Joint vs. Sole Custody

HOW DO JOINT AND SOLE CUSTODY ARRANGEMENTS DIFFER IN UTAH

During the divorce process, many Utah parents wonder how their decision to end their marriage will impact the relationships they have with their children. In order to protect their children’s well-being, parents will either be awarded joint or sole custody once their divorce is finalized. As a Divorce and Custody Lawyer, I’ve seen it all, but I want to help you through this process.

SOLE CUSTODY

In sole custody arrangements, according to the American Bar Association, one parent is responsible for taking care of his or her children the majority of the time. This parent is also responsible for making major decisions about his or her children. However, when sole custody is awarded, the noncustodial parent is almost always given visitation rights. When this occurs, this parent may be able to care for his or her children on overnight visits or during vacation periods.

JOINT CUSTODY

When a joint custody arrangement is awarded, parents may either be given joint legal custody of their children, joint physical custody of their children or both. According to the Utah Courts, parents who have joint legal custody of their children have the authority to make major decisions about them. For example, in these situations, both parents have the right to determine what religion, if any, their children will participate in, where they will go to school and what type of medical care they will receive.

Comparatively, joint physical custody means that the children spend at least 111 nights in the homes of each of their parents every year, states the Utah Courts. In these situations, it is usually best if the divorced parents are able to live near each other.

FACTORS THE COURT CONSIDERS

If parents devise a custody agreement with their ex-spouse and the court determines that it reflects the children’s best interests, this arrangement will be legally granted. However, if parents cannot come to an agreement, the decision of what type of custody will be awarded is left up to the court, states the Utah Courts. When determining what the children’s best interests are, the court will consider a number of different factors. These include some of the following:

  • Which type of custody will benefit the children’s different emotional, physical and psychological needs
  • Whether or not both parents participated in raising their children before ending their marriage
  • The parents ability to work together and make joint decisions about their children

When a child custody determination is left up to the court, parents in Utah may have concerns about how these factors and others will affect their ability to acquire sole or joint custody. If you and your spouse have decided to end your marriage, speak with an attorney to receive legal guidance during this difficult time.

WHAT ARE THE MOST COMMON TYPES OF PATERNITY TESTS?

They have been poked fun on the Maury Povich Show and on Internet memes. But paternity tests are no laughing matter. There are currently countless children and grown adults throughout Utah who do not know the identity of their fathers. It is one of the most serious and common matters in Salt Lake City family law. The consequences can be emotionally and financially severe for everyone involved. Paternity tests not only determine the identity of the father, they can also provide insight into family medical history. By correctly identifying the father, mothers can begin the process of receiving child support and other benefits.

THE PROCESS

During pregnancy, most states require an Acknowledgment of Paternity form to be completed at the hospital. Once the document is signed, the couple has a limited amount of time to complete a DNA paternity test to amend the AOP. If time has expired and the couple has not completed the test, then the person listed on the AOP is legally responsible for the child. Even if the person listed on the AOP is later tested and not found to be the biological father, they are still legally responsible for the child. Many states require unmarried couples to take paternity tests to list a father’s name on a birth certificate.

There are three different types of paternity tests. Each one is to be performed during pregnancy. Testing can be done as soon as the end of the first trimester. The results are kept confidential. Each test poses no health risks to the mother or the developing baby. Depending on the procedure, prices can range from $400 to $2,000.

  • Amniocentesis:In addition to verifying the father, it is also one of the most effective tests to determine whether the child will be born with downs syndrome. Taken during the second trimester, amniocentesis involves the use of a long needle into the uterus and through the abdomen. The needle is used to remove amniotic fluid, which is to be tested. A doctor’s consent is required to complete the procedure.
  • Non-Evasive Prenatal Paternity (NIPP):Of all the paternity test, NIPP is considered the most accurate and utilizes state-of-the-art technology of analyzing a baby’s DNA found in the mother’s bloodstream. The test simply requires blood samples from the alleged father and mother. NIPP can be performed at any time after the eighth week of pregnancy.
  • Chronic Villus Sampling (CVS):One of the advantages of CVS is it can be completed relatively early in the pregnancy. (10-13 weeks) It consists of using long needle or tube to be inserted from the vagina into the cervix. The needle is guided through ultrasound to collect chorionic villi. These pieces of tissue contain the same genetic makeup as the fertilized egg of the fetus.

If you are a single mother, it is extremely important to identify the father of your baby. To learn more on how test results can be used in court, contact a Salt Lake City family law attorney today.

Free Consultation with Child Custody Lawyer

If you have a question about child custody question or if you need help in a divorce, please call Ascent Law at (801) 676-5506. We will help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Sunday, February 4, 2018

Estate Planning and Wills

As we continue our discussion by an estate planning lawyer, we’ve previously talked about wills and probate as well as estate settling and beneficiaries of an estate. Now we are going to talk about estate planning and wills.

Estate Planning and Wills

Estate planning attorneys in Utah recognize that Estate planning and Wills can involve various degrees of complexity. You want to utilize estate attorneys to achieve personal, family and tax objectives. An outright distribution of assets may only require a simple Will. If you desire one or more trusts you may need a testamentary trust provision in your Will. Alternatively, the Will may leave assets to a preexisting inter vivos trust (created in your lifetime), in which case it is called a pour over Will. From the simple to the complex, the purpose of estate planning and wills is to ensure that the testator’s estate plan and goals are achieved and to provide for surviving family members, and minimize taxes. A Utah estate planning attorney can help you with these needs.

Estate planning documents such as a Last Will and advanced directives such as a Power of Attorney and Health Care Proxy are needed to avoid uncertainty and litigation in Guardianship Court or Surrogate’s Court regarding a person’s desires and intent. Other papers that may be appropriate include a Living Trust, a Living Will and a Power of Attorney.

There are many significant issues that I review with individuals regarding their Estate Plan. First and foremost is obtaining information regarding family members and kinship. Gathering information regarding next of kin or heirship may not always be a simple task. Family members may have become estranged over the years. Also, kinship history may be located in places outside of the United States where birth, death and marriage records are not properly maintained. Also, a thorough review of assets is needed to ascertain value for possible estate and gift tax implications. Assets include bank statements, stocks, real estate and other items of value. Finding out about asset ownership is important since some assets such as jointly owned property will pass upon death directly to a joint owner and not be controlled by a Last Will. Other assets such as life insurance and retirement accounts may also go directly to named beneficiaries. Typically, only assets in a person’s name alone are controlled by a Last Will. Discussing beneficiaries and having Executors and Trustees is also vital. The fundamental purpose of estate planning and preparing a Last Will and other papers is to avoid disputes and confusion regarding the settling of one’s affairs. In the event a person dies without a Will, state laws provide who inherits your estate. The preparation of estate planning documents avoids this result and the distribution of an estate to unintended beneficiaries.

For Families in Salt Lake, a Probate Lawyer Prevents Debt and Discord

For families and individuals in Long Island, a probate lawyer can be the difference between

  • Inheriting an organized, well-divided estate and inheriting unexpected debt.
  • Using a living trust to manage multiple assets and properties and spending months in probate.
  • Peace of mind and worry.

It is your retirement, your assets, your family.

There is no set age or income at which a person should begin planning to protect their family and assets with the help of a probate lawyer.

The following are situations representative of those faced by many in Utah.

Advice for Salt Lake County – a Probate Lawyer’s Suggestions

  1. Multiple homes and/ or large, complicated families? Consider a living trust.

Take a man who remarries five years after his wife passed away. Both husband and wife have two children from previous marriages. They have one daughter together. The woman’s older son was about to enter college when she remarried, so he never lived with his stepfather. He stays at his father’s home during college breaks.

When the couple revised their wills, they wanted to draw up a plan that made provisions for their children and any other children they might have together, but they were not sure how to divide their assets among the children. Both earn between $50,000 and $70,000 yearly.

The woman’s ex-husband had already made some provisions for their two sons, so how should the couple best allocate their assets?

The complications of blended-family estate planning may test the limitations of estate planning. If the couple contacted a Long Island probate lawyer with their questions, he might advise that they establish a revocable living trust and last will through which they could freely control their assets and provide for payments upon death while avoiding possible probate disputes. Specific provisions can be made to benefit all of the couple’s children by allocating different assets or asset percentages to each one.

Additionally, if the couple were to purchase an out-of-state vacation home, the revocable trust would help them manage their assets while avoiding the probate involved with properties in different states.

  1. Live well. Draw up your living will, healthcare proxy and Last Will.

The most emotionally-charged changes in life often carry large financial implications. An experienced Long Island probate lawyer can help you make sure that your finances are protected and organized before life-changing events are underway.

Not only does planning ahead prevent legal and familial disputes, it allows your family to deal with life as it happens—not play catch-up with paperwork as it happens.

  1. Special needs? Provide and protect with a supplemental needs trust.

What if that same couple had a child with a developmental disability? How would this change their financial situation in the present and future, and how could a probate lawyer help them arrange the best situation for their child?

Planning for a special needs child’s future requires special attention, because the child’s future eligibility for Social Security and other governmental benefits is at stake.

A supplemental needs trust (SNT) allows the beneficiary to receive financial support without losing much-needed governmental support. This is one of the best examples of an instance in which estate planning is of immediate concern to younger families.

Free Consultation with a Utah Estate Lawyer

If 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.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Saturday, February 3, 2018

Beneficiaries of an Estate

Beneficiaries of an Estate

Estate Lawyers often help people with estate planning that involves consideration of many important items. Most people think that planning an estate only applies to the very wealthy and concerns fancy estate tax formulas and trusts that diminish the impact of taxes and preserve assets for future generations.

The fact is that most individuals need to consider and establish a solid plan with the assistance of a Utah estate beneficiary lawyer even though most estates are not subject to estate taxes.  Nowadays, the federal estate tax exemption exceeds $5 million and the Utah Estate tax is on its way to exempting the same amount as the federal law.

It is not uncommon when consulting a Utah estate lawyer that a client will inquire as to whether he or she should discuss the proposed plan with other family members.  Typically, spouses work together in planning.  This is because most spouses own assets together as joint tenants or tenants by the entirety or have named the other spouse as a beneficiary on a retirement account or life insurance policy, Moreover, when the couple has children, they both want to make sure that the provisions in their documents provide for the estate assets to pass to the children upon the death of the last surviving spouse.

It is also a good idea to involve other family members in the process.  Of course, discussing advance directives and testamentary dispositions with family members such as children is a personal decision that takes into consideration family dynamics.  However, where children or other members of a family or even friends have a solid trustworthy relationship, advising them as to the process may be beneficial.  For example, it may be helpful, particularly where the creators are elderly, for beneficiaries to know the location or extent of assets so that the assets can be quickly secured in the event the creator becomes ill, incapacitated or dies.  Also, it is helpful that named beneficiaries and fiduciaries such as executors and trustees are aware of their appointment and are familiar with the location of documents such as a Last Will, Health Care Proxy or Power of Attorney so that they can access these papers when needed. An estate beneficiary lawyer can help Utah residents make sure that everything is in order as planned.

It should be pointed out that the current form of the Utah Power of Attorney requires that the agents appointed to use the power also sign the Power of Attorney and have their signature acknowledged by a notary public.  The provisions of the Utah law regarding the statutory short form power of attorney are contained in the General Obligations Law beginning at Section 5-1501.

Beneficiary of a Bank Account

A good estate plan requires the selection of beneficiaries and contingent beneficiaries. The selection of beneficiaries will usually reflect a person’s desires and most often will be a person’s spouse, children and other close relatives or friends.  Charities and other not-for-profit organizations may also be named as beneficiaries in a last will or Trust. Naming the beneficiaries of an estate is an important aspect of estate planning. A Utah bank account beneficiary lawyer can help you advance your interests.

Once a person has passed away the beneficiaries of an estate will be either those named in the Will or the persons entitled to inherit under the statutes relating to intestacy.

Additionally, beneficiaries can be named on particular assets.  For example, a person may have a bank account that is owned in his own name alone.  Upon the person’s death this account is subject to the provisions of a Last Will. However, if a beneficiary of a bank account is named, the account passes to the named beneficiary upon death.  These types of accounts have been known as Totten trusts or as “FBO” accounts which means “for the benefit of”.  Another type of account ownership is a joint bank account where the joint owners have a right of ownership.  Upon the death of one owner, the account is owned in its entirety by the survivor.

When creating an estate plan it is important to know who you want to benefit from your asset distributions.  It is also imperative that a person know and understand their beneficiary designations so that their Will provisions and asset designations work in harmony to carry out their intentions. A bank account beneficiary lawyer in Utah can explain the designations.

Another consideration regarding beneficiaries can relate to various business agreements.  For example, if the decedent owned a business, he may be the owner of shares of stock if the business was a corporation.  Ordinarily, a decedent’s interest in stock held in his name would pass to his beneficiaries under his Will.  However, the business may be subject to agreements such as a shareholder agreement that requires that the stock be given to the company and that the company would pay a specified sum of money to a named beneficiary. Sometimes this payment is in the form of life insurance proceeds payable to a designated beneficiary.

Additionally, the selection of a beneficiary and the manner in which the beneficial interest is transferred may be influenced by the tax laws.  For example, assets given to a spouse or a charity may provide an estate tax deduction.

The estate tax marital deductions allows all assets passing to a surviving spouse to be free of any estate tax.  The unlimited marital deduction is available for Federal estate tax and also Utah estate tax.  Also, on the Federal level a concept known as “portability” allows a surviving spouse to obtain and use the portion of the estate tax credit exclusion that was unused by a pre-deceased spouse.

Free Consultation with an Estate Lawyer

If you are here, you probably have an estate issue you need help with, call Ascent Law for your free consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Friday, February 2, 2018

February Often Brings Divorce Filings

There are a lot of contributing factors in the decision a person in Salt Lake City makes to file for divorce. You should always consult with a divorce lawyer before you take any action. When a couple comes to that conclusion, there are even more decisions that must be made. These divorce issues include financial support, division of assets and property, custody of children and perhaps the reclaiming of one’s former name. Mediation can often help settle these matters in a peaceful, non-emotional manner so that each spouse can move forward in their life.

February Often Brings Divorce Filings

According to a recent study, many couples in Salt Lake City and around the country may be currently preparing to file for divorce. February appears to be the time that couples frequently take legal action to end their union — beginning right after Valentine’s Day. For some spouses, the romantic holiday appears to be the last straw or they may have discovered that their spouse has been cheating on them.

However, other factors also appear to influence the choice of couples to start divorce proceedings in the last half of the month. These factors may include the colder weather and the filing of taxes — always a stressful period of time for couples as they examine their current financial situation. Many people may realize on the most romantic day of the year that they simply don’t want to be together anymore.

For whatever reason, couples who are splitting may want to meet with an attorney who can help them understand what their rights are in terms of money and custody. Many attorneys offer divorce mediation services, which can help a separating couple keep things civil and make decisions that are fair for each party.

DEALING WITH POTENTIAL IMMIGRATION ISSUES DURING MEDIATION

Many currently living in Salt Lake and throughout the rest of the United States are immigrants who share the dream of obtaining permanent residency or even U.S. citizenship. One way that immigration officials have identified that immigrants could potentially be obtaining legal residency status is marrying to obtain a green card. According to information compiled by the U.S. Citizenship and Immigration Service and shared by ABC News, over 227,000 immigrants obtained green cards via marriage in 2009.

Those granted conditional residency through marriage typically have to re-apply to have their residency restrictions removed after two years. If one has already divorced by then, he or she will have to include with their petition sufficient evidence supporting the validity of the marriage. If he or she had already achieved permanent residency prior to the divorce, potential issues could still arise if and when he or she seeks citizenship. Again, documentation must be provided to prove the marriage was valid. If not, one could realistically face the possibility of deportation.

Immigrant spouses may want to consider divorce mediation as the time to obtain such proof from their former spouses. Obtaining copies of joint financial records, credit card statements, and even gift receipts may be a good idea, as well as of the original marriage license and copies of the birth certificates of any children a couple may have had together.

Free Consultation with Divorce Lawyer

If 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.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Family Savings Trust

Family Savings Trust

Most of the problems of an outright gift to a child can be eliminated through the use of Family Savings Trust (FST), which we have mentioned in previous posts as an asset protection strategy for holding ownership interests in entities such as corporations, Family Limited Partnerships, and Limited Liability Companies. Because we are asset protection lawyers, we’ve seen things go wrong so we want to point you in the right direction.

The Family Savings Trust can also be designed specifically to be used to directly protect personal assets from unexpected medical expenses.

The term Family Savings Trust is a broad descriptive term for a trust intended to hold and protect assets against lawsuits and business risks. A Family Savings Trust is extremely flexible in form and can incorporate provisions, which combine the features of domestic and even offshore arrangements within the language of the plan documents. All of your assets can be held within the trust—but be governed by special terms appropriate for that asset.

For example, your trust may be designed to hold your home, accounts receivable, and savings and brokerage accounts. Or the trust can own the entities, such as an FLP or LLC or your personal residence with specific language preserving the tax benefits associated with the home (including the mortgage interest deduction, property taxes, and avoidance of gain on a future sale). If estate tax savings are a priority, you can choose to construct the FST to take maximum advantage of whatever traditional or enhanced tax strategies are appropriate based on your goals and the types of assets you own.

An additional feature, which can be added to a Family Savings Trust, if desired, allows the trust to obtain certain “offshore” advantages, at some later point. The FST can be structured to permit a migration of the trust to a more favorable jurisdiction—domestic or foreign—when and if necessary. In the right situation, this provision can be used to force any future plaintiff to proceed with a lawsuit against you in a string of unfriendly foreign jurisdictions to which the trust has continuously migrated. For example, under normal circumstances, the trust exists and is governed by whatever domestic law we choose. But, if circumstances warrant and strategy dictates, you can convert all or a portion of the trust or its assets into an Offshore Trust or Offshore LLC—legally protected and effectively out of reach. A plaintiff attempting to litigate in a foreign country would be faced with nearly impossible hurdles, subject only to local fraudulent transfer rules and the applicable statutes of limitations.

LLC VERSUS CORPORATION

Let’s compare the LLC versus a corporation in real estate ownership.  John and Mary could transfer the property to a corporation. Each would own 50 percent of the stock in the company. Since the law provides that the shareholders are not responsible for debts of the corporation, a liability arising out of the property would not subject John and Mary’s personal assets to danger.

The problem is that this protection against liability is only available if all of the corporate formalities are carefully followed. Since most people do not maintain proper corporate records and documentation, corporations often do not provide the intended level of protection. Further, corporations are subject to complex tax rules, which can cause severe and unintended consequences.

Finally, the corporation will not protect the property from outside liability-lawsuits against John or Mary unrelated to the property. A creditor can simply seize the stock that they own and reach the apartment building by dissolving the company. For these reasons, it is generally not advisable to hold investment real estate in a corporation.

Free Consultation with a Estate Planning Lawyer

If 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.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
at No comments:
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Thursday, February 1, 2018

Lawyers for Divorce in Cottonwood Heights Utah

Lawyers for Divorce in Cottonwood Heights Utah

Divorce іѕ a dіffісult dесіѕіоn tо mаkе for аnу соuрlе nо matter whаt thе сіrсumѕtаnсеѕ mау bе. Sometimes a divorce lawyer dоes not always mаkе іt аnу еаѕіеr bесаuѕе their purpose іѕ tо tаkе саrе оf thеіr client. Hоwеvеr, іt іѕ аlѕо іmроrtаnt to undеrѕtаnd thе іmроrtаnсе оf hіrіng a lаwуеr with еxреrtіѕе іn thе lаwѕ gоvеrnіng dіvоrсе. It іѕ nоt еnоugh to hire juѕt any fаmіlу lаwуеr-уоu nееd a dіvоrсе lawyer, рrеfеrаblу оnе that hаѕ bееn рrасtісіng fоr a gооd mаnу уеаrѕ. Whіlе іt іѕ truе thаt еvеrуоnе muѕt оbtаіn experience thrоugh рrасtісе, you nееd tо рrоtесt уоurѕеlf frоm mаkіng wrong сhоісеѕ оr rесеіvіng bаd аdvісе.

Whіlе іt іѕ not аlwауѕ truе, you wіll fіnd thаt mаnу fаmіlу lаwуеrѕ in соttоnwood hеіghtѕ Utаh hаvе thеіr own ѕресіаltіеѕ. Sоmе оf thе cases thаt іnvоlvе fаmіlу lаw іnсludе thе fоllоwіng:

  • Chіld ѕuрроrt
  • Cuѕtоdу
  • Vіѕіtаtіоn
  • Wіllѕ and іnhеrіtаnсе
  • Mоnіtоrіng аnd аdmіnіѕtrаtіоn оf еѕtаtеѕ аnd trust fundѕ
  • Dіvоrсе and ѕераrаtіоn
  • Rеаl еѕtаtе
  • Bаnkruрtсу

As уоu can see from thе аbоvе lіѕt, thеrе іѕ more tо fаmіlу lаw thаn dіvоrсе, ѕо уоu nееd tо mаkе ѕurе tо сhооѕе a lаwуеr whо hаѕ еxреrtіѕе ѕресіfісаllу іn dіvоrсе. Whіlе сhіld support, сuѕtоdу аnd vіѕіtаtіоn оftеn accompany dіvоrсе, thеу саn аlѕо bе ѕераrаtе реtіtіоnѕ thаt ассоmраnу thе brеаkuр of a rеlаtіоnѕhір whеrе сhіldrеn аrе іnvоlvеd. Thuѕ, уоu ѕhоuld never аѕѕumе a gооd fаmіlу lаwуеr іѕ аlwауѕ thе bеѕt dіvоrсе lаwуеr.

Thеrе аrе ѕеvеrаl ѕtерѕ уоu nееd tо fоllоw іn оrdеr tо dеtеrmіnе if a раrtісulаr fаmіlу lаwуеr hаѕ еxреrtіѕе аѕ a divorce lаwуеr.

  • Tаlk tо hіѕ оr hеr office ѕtаff-thеу аrе thе bеѕt оnеѕ tо knоw whаt kіndѕ оf cases thе lаwуеr hаѕ оn thе саlеndаr.
  • Schedule a соnѕultаtіоn аnd vіеw thе bооkѕ thаt аrе on thе ѕhеlvеѕ іn thе lаwуеr’ѕ оffісе-аlmоѕt аll lаwуеrѕ hаvе rеfеrеnсе bооkѕ thаt are dіrесtlу rеlаtеd tо thеіr аrеаѕ оf еxреrtіѕе.
  • Aѕk for rеfеrеnсеѕ fоr оthеr сlіеntѕ thе lаwуеr hаѕ rерrеѕеntеd
  • Review thе kіndѕ оf cases thаt аrе оn thе court’s dосkеtѕ fоr thаt lаwуеr

Iѕ еxреrtіѕе thаt іmроrtаnt іn dіvоrсе? Lаwуеrѕ hаvе еxреrіеnсе іn thе соurtrооm аnd аѕ ѕuсh саn hаndlе аll cases, rіght? Thаt іѕ nоt necessarily ѕо as we hаvе іndісаtеd аbоvе. If уоu dоn’t hіrе a divorce lаwуеr, іt іѕ роѕѕіblе уоu wіll соmе оut оf thе dіvоrсе wіth fаr less than thе аmоunt tо whісh уоu аrе entitled. Thіѕ іѕ еѕресіаllу truе іn the саѕе of a соntеѕtеd dіvоrсе, аnd іn mоѕt саѕеѕ thе ѕроuѕе thаt is соntеѕtіng thе dіvоrсе wіll hіrе thе bеѕt dіvоrсе lаwуеr hе or ѕhе саn аffоrd іn оrdеr to mаkе ѕurе thеу соmе оut ѕmеllіng like a rоѕе.

Alwауѕ ѕреаk wіth еxреrіеnсеd dіvоrсе lаwуеrѕ аnd сhооѕе ѕоmеоnе уоu fееl соmfоrtаblе hiring. Rеmеmbеr, thе lаwуеr уоu сhооѕе wіll hеlр уоu not оnlу оbtаіn a dіvоrсе but wіll bе thеrе tо hеlр make ѕurе уоu rесеіvе аn еԛuіtаblе ѕеttlеmеnt аѕ wеll. Thе bеѕt thіng уоu саn dо fоr уоurѕеlf іѕ tаkе thе tіmе tо rеѕеаrсh ѕеvеrаl dіvоrсе lаwуеrѕ  bеfоrе уоu mаkе a fіnаl dесіѕіоn.

Free Consultation with Divorce Lawyer in Cottonwood Heights

If 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.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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