Friday, February 9, 2018

Types of Irrevocable Trusts

Types of Irrevocable Trusts

As an estate lawyer, I have explained that there are many types of irrevocable trusts that can help you secure your assets and reduce taxes.

They include the following:

  • Asset Protection Trust An asset protection trust is used as a fortress to keep creditors from seizing assets. There are asset protection trust laws in states such as Nevada, Wyoming, Delaware, Alaska and North Dakota. In practice, we have found that they can provide a fair level of protection, especially, for residents of those states. However, they have the disadvantage of being under US court jurisdiction. Judge’s do not always follow the law and there are ever-expanding legal theories of liability. So, we have seen assets in domestic trusts seized on numerous occasions. Offshore irrevocable trusts in jurisdictions such as the Cook Islands and Nevis have a perfect or near-perfect track record for protecting assets from judgment creditors. Because US judges do not have jurisdiction over foreign trustees, the trustee need not comply with US court orders.
  • Bypass Trust This type of trust that married people use. When one spouse dies, the property goes into the trust. The surviving spouse can use the property, but does not own it. This means that it is not part of the estate when the surviving spouse dies. This equates to tax savings.
  • QTIP Trust Another trust designed for married couples, a QTIP trust typically provides income to the surviving spouse when one spouse dies. When the second spouse dies, other named beneficiaries receive the assets. This is typically the settlor’s children. QTIP stands for Qualified Terminable Interest Property.
  • QDOT Trust A QDOT trust is similar to a QTIP trust. The difference is that noncitizens use it. QDOT stands for Qualified Domestic Trust.
  • Life Insurance Trust With this type of trust, the trust is both the owner and the beneficiary of the life insurance policy. Anyone, in turn, can be the beneficiary of the trust. The grantor must typically create the trust at least three years before death. It lets a person reduce or eliminate estate taxes so more of the proceeds go to the beneficiaries. The trustee, then, administers insurance proceeds for one or more beneficiaries.
  • Generation-Skipping TrustWealthy families often use this tool. As the name implies, the trust skips a generation. The final beneficiaries are the grandchildren instead of the children. The children are beneficiaries of the income, but do not own the property. This means that when the children die, their trust property is not subject to estate tax. However, a generation skipping transfer tax may apply.
  • Charitable Trust If you don’t have any family – or maybe you do have family but don’t want to give them an inheritance – you can opt for a charitable trust. If you are not married and have no children this may be a good choice. This type of irrevocable trust allows you to give gifts to charity as a way to lower income and estate taxes. The charity benefits from your donation as well, so it’s advantageous to both parties. There are three types of charitable trusts.

Types of Charitable Trusts

  1. Pooled income trust:This trust allows you to pool your money with other grantors and receive income for a specified amount of time. For these trusts, the charity is the trustee and beneficiary.
  2. Charitable lead trust:You put property into a trust. Next, you name a charity to receive income from the trust for a certain amount of time. However, you name someone else as the final beneficiary.
  3. Charitable remainder trust:You put property into a trust. Then, you can receive a tax deduction for putting the asset into the trust. You name someone to receive income from the trust for a certain amount of time. The trust specifies a charity as the final beneficiary.

Trusts for Special Needs

If your goal is to protect assets and income for loved ones, choose one of these trusts:

  • Special Needs Trust If you have a child or other loved one with special needs, a special needs trust can help provide financial support for this person in the event of your death. Property – particularly money – is placed into this irrevocable trust. You appoint a trustee to distribute the funds to buy necessities for the disabled person. The beneficiary never owns the property. This works to his or her advantage because the money is not considered as asset. The beneficiary does not make too much income and therefore can still qualify for government benefits.
  • Spendthrift Trust Maybe you don’t have a disabled relative, but maybe you have a sibling or child who is horrible with money. Some people are just irresponsible with money, but that doesn’t mean that you need to leave them out of your inheritance. With a spendthrift trust, you can protect and control the money that you gift to family members who have trouble managing their finances. The settlor places assets into a trust. A trustee doles them out based on the terms in the trust. For example, you may allow the beneficiary to receive only a certain amount per week or month. The beneficiary cannot access the trust property, so the assets are protected from creditors. However, once the beneficiary receives money or assets, they become fair game.

Irrevocable Trust – The Way to Go?

Irrevocable trusts offer many asset protection, estate planning and tax advantages. For the general public, an irrevocable trust may be very useful in protecting assets from lawsuits, securing financial help for a special needs child or providing for children after the death of the parents.

You need to be able to trust your trustee. What happens if you have a falling out with your trustee? Change them. The beneficiaries can simply vote in a new trustee. The trustee must not be you. The trustee also must not be someone up or down the family tree, cannot be a controlled employee and cannot be an agent of yours. If any of these parties were trustees it would lose its asset protection advantages because the courts would consider these people your alter ego.

Should you choose an irrevocable trust, some wise advice is to have it skillfully drafted by an experienced professional. This is extremely important, since a poorly worded document may not do what you intended for it to do and ruin your asset protection and estate planning goals. Contact an estate planning expert to see if an irrevocable trust will meet your needs based on your unique situation.

Free Consultation with a Trust Lawyer

If you are here, you probably have a trust or estate matter that you need help with. If so, 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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Thursday, February 8, 2018

About Chapter 7 Bankruptcy

Because I’m a bankruptcy lawyer, I’m often asked questions about the bankruptcy chapters. The different types of bankruptcy are divided into chapters. Chapter 7 and Chapter 13 bankruptcy are the two most common chapters that individuals and small business owners file. Here is some information that we hope will help shed some light on the unique power offered by Chapter 7 bankruptcy:

About Chapter 7 Bankruptcy

Wipe Out Debt Permanently

Chapter 7 bankruptcy is a great solution for individuals who have become burdened by hardships and unmanageable amounts of business, medical and credit card debt, bank and payday loans, tax debt and even debts against secured assets. Harnessing the power of Chapter 7 bankruptcy, our clients routinely and permanently wipe away an individual’s personal liability on debt in amounts between $5,000 and $5,000,000 – with no further obligations to their creditors! Another incredible aspect is that this process usually only takes 3 months.

Stop Harassment, Garnishments, Repossessions & Foreclosures!

Creditors tend to be very aggressive with collections, especially on larger amounts of debt. Unfortunately, they often utilize a string of half-truths and flat out lies to scaring people to get their way. It’s no wonder there are so many misconceptions about bankruptcy – your creditors are the last people that want you to know how it really works.

The “automatic stay” is one of the most powerful provisions within the bankruptcy code that prohibits creditors from any collection efforts once an individual’s case is filed. So basically, the bankruptcy court has the power to “push pause” on your creditors and instantly halt collections and even legal action – regardless of where it is in the process.

The automatic stay is effective for the duration of the bankruptcy process. After the debt is wiped away, a “discharge injunction” is issued which provides permanent protection after the automatic stay expires. Both of these provisions prohibit creditors from attempting to collect discharged debts from you, and the penalties for creditors that decide to disobey this order can be severe.

Keep and Protect Property

A common misconception is that if you file for bankruptcy, you’ll lose everything. Nothing could be further from the truth. Most of the time our clients keep everything they own. How? The bankruptcy code has what are called “exemptions,” which are used to shield your valued assets from the bankruptcy process (and your creditors). Exemptions cover many types of property including homes, land, vehicles, tools, furniture, clothing, jewelry, and much more. Additionally, life insurance cash value, workers compensation claims, and retirement plans are all exempt. Exemptions are controlled at the state level, so it’s important to discuss them with a local bankruptcy attorney.

However, it’s important to note that in a Chapter 7 bankruptcy, any non-exempt property can be auctioned off by the bankruptcy court to repay your creditors. Also, when exempting property that is secured with a loan, such as a financed car or a mortgage, (known as “reaffirming”) those payments must be current and kept current throughout the bankruptcy process. If you are unable to catch up on payments but would like to keep the property, Chapter 13 bankruptcy may be a better alternative that allows you to catch up on the delinquent payments over the next few years while maintaining possession of the property.

When implemented properly, exemptions provide incredible results that allow you to maintain your way of life while wiping away debts that could otherwise threaten it.

Get Rid Of Unwanted Property

Trying to ditch property outside of the bankruptcy process results in the creditor or lien holder being able to repossess the property and go after the debtor for all kinds of fees, interests and of course the remaining balance after the property is auctioned off (most likely at a price that is significantly under the market value).

Fortunately, Chapter 7 allows you to surrender these “assets” and the associated debts. That’s right – the lender is forever prohibited from going after the debtor for any related collections or fees, and the debtor is released from any contractual obligations. This can be a blessing to individuals and families that are struggling to keep up with payments on vehicles, homes or other assets they can no longer afford.

By getting out of debt, you create a world of new opportunities and possibilities. No longer is the heavy burden of harassing phone calls, building interest, collection and legal fees, repossessions and foreclosure something that weighs you down every day. Chapter 7 bankruptcy can transform your finances and your life, and creates lasting peace of mind. To see if you meet the qualifications to file a Chapter 7, consult with an accomplished and knowledgeable bankruptcy law firm in your state.

Free Consultation with Bankruptcy Lawyer

If you have a bankruptcy question, or need to file a bankruptcy case, call Ascent Law now at (801) 676-5506. Attorneys in our office have filed over a thousand cases. We can help you now. Come in or call in for your free initial consultation.

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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Utah Registered Agent Services

A Registered Agent (аlѕо known аѕ a Resident Agеnt, Stаtutоrу Agеnt, or Agent fоr Service of Process) iѕ a соmраnу оr individuаl appointed tо rесеivе Service оf Prосеѕѕ (SOP) аnd оthеr imроrtаnt communication оn bеhаlf оf a company. A Rеgiѕtеrеd Agent muѕt have a physical оffiсе аddrеѕѕ, оftеn rеfеrrеd to as a Registered Office, in the ѕtаtе.

As a Utah business lawyer, we can help your business by serving as your registered agent.

Rеgiѕtеrеd Agеnt Service in Utah

Utаh State lаw rеԛuirеѕ every fоrmаl buѕinеѕѕ entity in Utаh (LLCѕ, соrроrоаtiоnѕ, LPѕ, LLPѕ, еtс.) tо арроint аnd maintain a rеgiѕtеrеd agent. Utаh rеgiѕtеrеd аgеntѕ ассерt ѕеrviсе оf рrосеѕѕ on behalf of thе buѕinеѕѕ tо they rерrеѕеnt as agent. In lау tеrmѕ, thаt means Utah registered аgеntѕ rесеivе nоtiсе of a lаwѕuit whеn a buѕinеѕѕ еntitу like аn LLC оr corporation iѕ ѕuеd. Whilе thiѕ iѕ their primary рurроѕе, it’ѕ not a Utah rеgiѕtеrеd agent’s оnlу dutу. Rеgiѕtеrеd agents in Utаh аlѕо rесеivе аnnuаl rероrtѕ, tаx nоtifiсаtiоnѕ, and other imроrtаnt mail from thе ѕtаtе.

Utah Registered Agent Services

Rеԛuirеmеntѕ

Utah rеgiѕtеrеd agents’ statutory duties аrе lаid оut in thе state’s Mоdеl Rеgiѕtеrеd Agеnt Aсt. Thе асt ѕtiрulаtеѕ that in order tо be a rеgiѕtеrеd agent, аn individuаl оr соmраnу muѕt:

Hаvе аn асtuаl ѕtrееt аddrеѕѕ or rurаl route box number in Utаh whеrе service оf рrосеѕѕ can bе physically dеlivеrеd. P.O. boxes оr virtuаl оffiсеѕ аrе not ассерtаblе. Sоmеоnе muѕt sign fоr аnd ассерt thе service оf рrосеѕѕ.

Keep thе еntitу’ѕ current information оn filе with thе Utah Diviѕiоn оf Corporations аnd Cоmmеrсiаl Cоdе.

Bе аblе  to rесеivе ѕеrviсе оf any process, nоtiсе, or dеmаnd rеԛuirеd оr реrmittеd by lаw to be served on thе entity (during normal buѕinеѕѕ hours).

Fоrwаrd any ѕеrviсе оf process ассерtеd оn thе bеhаlf оf a Utаh еntitу to thаt еntitу.

Althоugh not liѕtеd specifically in thе Aсt, thе rеgiѕtеrеd аgеnt iѕ аlѕо uѕuаllу еxресtеd tо forward аnnuаl rероrtѕ to thе entity, as well as any other оffiсiаl nоtiсе оr соmmuniсаtiоn from the ѕtаtе.

Utаh registered аgеntѕ саn choose tо liѕt thеmѕеlvеѕ as a commercial registered agent, hоwеvеr, thеrе iѕ nо mаndаtе оr requirement thаt thе rеgiѕtеrеd аgеnt dо ѕо.

All Utah businesses are rеԛuirеd tо designate a registered аgеnt with thе Division оf Cоrроrаtiоnѕ. Enѕurе that уоu gеt рrоmрt nоtiсе frоm a liсеnѕеd аttоrnеу of any legal notice оr lаwѕuit.

  • Enѕurе thаt уоur required annual rероrt iѕ promptly filеd еасh year.
  • Ensure thаt уоur annual fееѕ аrе раid tо thе ѕtаtе оf Utah each year tо mаintаin gооd ѕtаnding
  • Wе will keep uр оn аnу changes in the law with rеgаrdѕ to аnnuаl filingѕ аnd fееѕ, аnd notify уоu of thоѕе сhаngеѕ whеn we are serving аѕ уоur Rеgiѕtеrеd Agent
  • Provide additional рrivасу (legal nоtiсеѕ аrе uѕuаllу ѕеrvеd оn uѕ, instead оf uроn you аt your place оf buѕinеѕѕ оr residence)

Mаkе you lеѕѕ аttrасtivе tо a lаwѕuit, аѕ thе Rеgiѕtеrеd Agеnt is рubliс information, and it will bе арраrеnt thаt уоu аrе rерrеѕеntеd by a buѕinеѕѕ attorney аnd likеlу hаvе your lеgаl аffаirѕ in оrdеr

 

Whу Utah Rеgiѕtеrеd Agеntѕ аrе Imроrtаnt

Your Utаh rеgiѕtеrеd agent will be аrе rеѕроnѕiblе fоr hаndling your mоѕt рrivаtе dосumеntѕ. It’ѕ truе thаt some buѕinеѕѕ оwnеrѕ might соnѕidеr Utаh’ѕ rеgiѕtеrеd agent rеԛuirеmеnt a nuisance. Wе at Registered Agеntѕ Inc. tаkе оur rеѕроnѕibilitу seriously. We ѕtrivе tо mаkе a роtеntiаllу fruѕtrаting rеԛuirеmеnt аn invаluаblе ѕеrviсе.

With еvеrу Rеgiѕtеrеd Agеntѕ Inс. оrdеr in Utаh, each client will receive аmаzing rеgiѕtеrеd аgеnt service in Utah. Thiѕ iѕ why сliеntѕ choose uѕ:

Experience: Thiѕ iѕ whаt wе dо, dау in аnd dау оut. Wе’rе оnе оf thе lаrgеѕt registered agent ѕеrviсе рrоvidеrѕ in Utаh.

Reliability: With a combination оf thоughtful dеѕign аnd solid experience, we have been аblе to еliminаtе еrrоrѕ frоm оur ѕуѕtеmѕ. Yоu can rеѕt assured thаt nоnе оf thе dосumеntѕ оr соmmuniсаtiоn wе accept оn уоur соmраnу’ѕ bеhаlf will be lоѕt.

Speed: Wе ѕсаn уоur lеgаl dосumеntѕ to уоu right аwау from оur Utah registered office. If wе’rе уоur agent in another state, it’ѕ nо different: we’ll scan and upload dосumеntѕ in rеаl-timе frоm our rеgiѕtеrеd оffiсе in thаt state. Wе’rе in every state уоur buѕinеѕѕ needs us to bе.

Free Consultation with a Utah Business Lawyer

If you are here, you probably have a business law issue you need help with, call Ascent Law for your free business 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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Wednesday, February 7, 2018

Kids and Divorce

Kids and Divorce

Though you and your spouse have already decided to divorce, translating your reasoning and personal decision to your children can be difficult. I’ve seen as a divorce lawyer, that at any age, it is important to be aware of the way that you handle tough divorce questions, navigate life after divorce, and coach your children can have an impact. Even the most informed and well-intentioned parents can make mistakes or negatively affect a child without knowing it.

Dealing with Tough Questions in Divorce

A recent HBO documentary titled, Don’t Divorce Me! Kids’ Rules for Parents on Divorce, children of divorce articulate the challenges of divorce and offer parents tips on how to best navigate the transition. Here are some tips from kids for divorcing and divorced parents in Salt Lake City, Utah:

  • “Don’t make me choose.”
  • “Make traveling from house to house easy.”
  • “Spend a lot of time with kids and make sure they know it’s not their fault.”
  • “Don’t put me in the middle.”
  • “Don’t take your anger out on me.”
  • “Tell me it’s not my fault.”
  • “Don’t give too much information at once. It can be difficult to understand. Kids need time.”

While most parents know that children have a difficult time with divorce, they may not know the best way to approach tough questions, deal with a split household, or address the emotional needs of their children. Children usually have a clear idea about how divorce impacts them personally and emotionally. It is important to listen to children and to talk to them about the issues that they are facing at home or at school. Remember that while you are having a tough time, your children are also working to adjust to the transition. Take the time to listen to while you also work to protect your rights and the best interests of the family.

DEALING WITH EX-IN-LAWS DURING THE HOLIDAYS

Holidays can be stressful, especially during divorce negotiations or after a divorce has been finalized. When children are involved, Christmas and other holidays can become even more complicated. If you are facing the holiday season after divorce, there are steps you can take to prevent unwanted and unnecessary stress for you and your family. Here are some tips for divorced or divorcing couples in Salt Lake City, Utah for dealing with ex-in-laws during the holidays:

  • Custody and holiday visitation. Custody arrangements can be complicated during the holidays and can create stress for you, your ex, as well as your in-laws. Remember that it is important for your children to spend time with you as well as your ex and your in-laws. You do have the right to protect a custody arrangement, but remember to keep your child’s best interests in mind.
  • Sending Christmas cards. Should you send Christmas cards to ex family members? Is sending cards after a divorce offensive? Remember that you have had relationships with your ex-in-laws for years or even decades. You should do what feels natural to you, without worrying too much about what things “mean.”
  • Gift giving. Should you purchase gifts for you ex-in-laws? Again, this depends on your relationships. If you have maintained a relationship with your ex’s parents, you should base your continued practice on individual circumstances and what would feel appropriate for you. Either way, you should never feel pressured to give gifts, but if you have maintained a relationship, there is no reason to discontinue the tradition.

Holidays can be stressful, but remember you are not alone. To protect your rights after divorce, you may need an experienced attorney to work out a custody settlement on your behalf. Remember that divorce can be complicated, especially during the holidays.

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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Debt and Bankruptcy

When I decided to ask my Wife to marry me I felt pressure to purchase a ring that – at the time – was way too expensive for me. I wasn’t a bankruptcy lawyer at the time. I loved her – so why wouldn’t I do everything I could to show my love? Right? I had access to credit. The bank reassured me that it would be easy to repay. Well, I was wrong. I made a stupid decision. I went into debt. I went into debt at the wrong time for the wrong reason with little to no income to pay it back. And that ring? Well, it was a really nice ring but my Wife later lost it – twice! (….a great story for another day).

The debt for that ring was hard to pay off. I remember struggling to pay back the debt and feeling like a failure. The harder I worked the more difficult it seemed. My entire paycheck was gone before I even received it! I had no control over my finances because the creditor controlled me.

Debt and Bankruptcy

Feeling ashamed for our debt is a real thing.

Don’t believe me? Check this out:

“Money is also intimately linked with our inner lives. Its presence, or lack thereof, has profound physical, mental and emotional repercussions. Perhaps in more ways than we would like to admit, money has tremendous power over us. … Any of the aforementioned negative emotional responses to debt may be serious enough to require medical or psychological intervention.” from debt.org

National Foundation for Credit Counseling – “[C]onducted a poll asking participants to finish this sentence: “I’d be most embarrassed to admit my…” And respondents made it clear that debt shame in the United States is worse than even diet shame. A whopping 37% of people answered that their credit card debt was the most embarrassing, followed by 30% of respondents admitting they wouldn’t want to fess up to their credit score. Weight made only 12% of people sweat, and came in a distant third place.”

I don’t think anyone is immune to money problems. So I assume that you’ve all had some type of similar situation. Being in debt at the wrong time for the wrong reasons. You may or may not be to blame for the money issues (e.g. medical debt), but you know what it feels like to stay up late at night wondering how you’re going to get out of the situation you’re in.

You know what it feels like to feel there is no way out. You know what it is like to think about your debt hour after hour. You lose sleep over it. You think that people close to you judge. You may ever start to think that you are less of a person because of it.

Now, imagine being in that type of situation and then having a debt collector call you and appear to confirm to you all of the irrational fears mentioned above. You may be told that you are a terrible person. That you did this to yourself. That your family is embarrassed because of you. And for some reason, there are thousands of us who believe these debt collectors! A client recently told me that a debt collector threatened to call the police and have her arrested for not paying a debt! Can you believe that? It happens more than you would think.

It’s been my life’s work and passion to help people realize that no matter what life has thrown their way they shouldn’t feel embarrassed or broken when it comes to debt. I stress over and over to my Clients that they should not despair – there is almost always a way out that doesn’t turn out to be nearly as bad as they might think.

Sometimes the way out is bankruptcy and sometimes it is not. It all depends on the situation. Regardless of whether my clients end up filing for bankruptcy – all of us have the following rights when it comes to harassing debt collectors. To provide some sense of relief, here are some quick basics on the rights you do have:

The Fair Debt Collection Practices Act (FDCPA) is a federal law that can prohibit debt collectors from using practices that may be abusive, unfair or deceptive. In addition to the Federal law, your state should have a consumer protection statute that can also prohibit deceptive practices as well as unfair or unconscionable practices. You should become familiar with both the FDCPA and your state’s consumer protection law(s). A good way of doing so it to schedule a consultation with a local attorney

Make them prove it: If you receive a phone call from a debt collector demanding payment, demand to receive proof of the debt. Simply paying out of fear can be costly. You may be waiving your statute of limitations defense or paying a debt that doesn’t belong to you! A jury recently awarded a Kansas City woman $83 million against a debt collector suing for wrongfully suing her for a $1,000 credit card bill that wasn’t hers.

Phone Call Limit: I don’t believe any Court has ruled on a specific number of calls per day that would be prohibited. A court would likely look into the situation on a case-by-case basis to determine if the debt collector’s calls were harassing. In general, the FDCPA prohibits debt collectors from calling you with excessive frequency. This would include repeated calls or continuous calls so as to be annoying, harassing or abusive. Obviously, if a debt collector calls with a series of calls one after another this would be prohibited

Contacting you at work: The FDCPA allows a debt collector to call you at work unless the debt collector knows – or has reason to know – that you or your employer prohibit such contact. Simply telling the debt collector to stop calling you at work should do the trick. However, if you can get the request in writing you would be better off

Calling your cell phone: The FDCPA can prohibit debt collectors from calling your cell phone in certain situations. For example, a debt collector cannot call you at an inappropriate time. If you inform the debt collector that the call was made to your cell phone while you are at work this is an inappropriate time. Another federal law, the Telephone Consumer Protection Act can also prohibit certain debt collector contact to your cell phone

There are recent attempts to fix the wrongs committed by debt collectors. Debt collection practices are so horrible that the “U.S. Consumer Financial Protection Bureau has proposed new rules for the debt collection industry that include limiting collectors’ communication with debtors.”

Law changes can take time. So, until the laws tighten up on debt collectors use these tools and stop shaming yourself. There is a way out. And the way out will be easier than you think. Don’t let your debt define and control you.

Free Consultation with a Bankruptcy Lawyer

If you have a bankruptcy question, or need to file a bankruptcy case, call Ascent Law now at (801) 676-5506. Attorneys in our office have filed over a thousand cases. We can help you now. Come in or call in for your free initial consultation.

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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Setting Up a Trust

Setting Up a Trust

As kids, many of us may have imagined one day having our own money bin full of money like Scrooge from A Christmas Carol. We want it protected from the outside world and free to dive into. As adults, we’ve realized this would be an unsafe to have a big pile of cash laying around. It’s not a good way to protect and store the wealth we’ve earned. But with so many financial options out there, where do we even start? One of your options is setting up a trust or series of trusts. While it’s no giant money bin, a trust can be an effective method of preserving your wealth for your future and for generations to come.

Definition of a Trust

What is a trust fund and how does it work? A trust is “a legal entity that holds property for the benefit of another person, group, or organization,” according to The Balance. The word “fund” in the term “trust fund” refers to a sum of money held by or made available to the trust. Regardless of type or provisions, all trusts have three things: a grantor, a beneficiary, and a trustee. Because I’m an estate planning lawyer, I tell my clients that The grantor is the person who sets up the trust, giving the trust its property and deciding the terms. The beneficiary is the intended manager of the assets in the trust. They can only access the trust as set out by the grantor. The trustee is responsible for overseeing the management of the trust. It can be an individual, institution, or group of advisors.

To be upfront with you, this organization does establish all of the different types of trusts mentioned here. If this is what you need, there is a number and a form on this page to get some extra help or to move forward on getting the right kind of trust established.

Types

There are several types of trusts designed to fit the individual needs of the grantor and beneficiary. CNN says that there are two basic kinds of trusts: living and testamentary. A living trust is set up during a person’s lifetime, and takes effect during it. A testamentary trust only goes into effect after the person’s death. Beyond these qualifications, trust types break down into revocable and irrevocable. A revocable trust allows the grantor to retain control of all assets in the trust, allowing the ability to revoke or change the terms of the trust at any time. Irrevocable trusts, however, are no longer held directly by the grantor. Changes to an irrevocable trust usually can’t be made without the beneficiary’s consent. A big benefit is that appreciated assets within the trust aren’t typically subject to estate taxes. This depends on how it was established.

Once a grantor has chosen his or her trust type, transferred the assets into it, and established the terms, the trust is active.

Managing Your Estate

Everyone has an estate – from millionaires in mansions to a family of four struggling to make ends meet. Your estate encompasses everything you own. Having an estate plan in place means that your assets and property go directly where you want them to after you die. Generally, you have two main options for your estate plan: a living trust and a will. But what’s the difference?

Wills

A will is a written document that indicates how your property will be distributed after your death. It is revocable and can be amended anytime during your lifetime. However, a drawback to a will is that when it’s enacted, everything must go through probate court. A judge must make a ruling before the assets in your estate can get to your friends and loved ones. This is the case whether or not you have a will; your estate still goes through probate. In that case, assets are distributed according to state statutes. Regardless, probate can be a very expensive and time-consuming process. The deceased is not around to fight back, so, in many cases estates are depleted by lawyer fees.

Living Trust

A living trust, on the other hand, provides property and estate management. It not only goes into effect after your death, but can start managing your assets right away. The grantor (the one who set up the trust) is often the initial trustee (who manages the trust) and beneficiary (who receives its benefits). Living trusts are usually revocable and become irrevocable after death. At that time, a successor trustee steps in and new people or entities typically become beneficiaries. Most often the beneficiaries receive trust assets under the terms of the trust. They also avoid extra expenses and the publicity of probate court. The successor trustee that you appoint can be in charge of the trust whenever you want them to. Examples of when this would kick in are upon death or in the case of a mental or physical disability.

Setting up a living trust may be one of the best ways to prepare for your future, and the future of your loved ones. There are several other reasons to set up a trust, including the following:

  • Caring for minor children – Trusts can specify when the child will have access to the assets
  • Caring for dependents with special needs – Trusts allow more flexibility than a will in how those heirs can access the inherited property. This is because you can designate dates, amounts, exceptions, etc.
  • Lowering estate tax – If your estate will be subject to tax, setting up a trust with tax provisions helps avoid some of it
  • Privacy – Wills become public record after your death, but a trust does not.

Free Initial Consultation with an Estate Planning Lawyer

When you need a probate or estate planning lawyer, 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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Tuesday, February 6, 2018

Parental Alienation and Custody

Parental Alienation and Custody

In most child custody cases, children do not spend an equal amount of time with both parents. As a family lawyer, I think this is the unfortunate part of the divorce many families face today, especially small children who often feel they do not spend enough time with mom or dad. Then, parental alienation comes in the picture.

A divorcee may influence his or her child against the other parent causing the child a lot of emotional distress. Attorneys dealing with these types of cases find it difficult as a parent may request having sole custody of the child or the child having little contact with the ex-spouse. While some parents’ irresponsible behavior may have provoked these harsh battles, collaboration between parents and focusing on the best interests of the child can be very helpful when developing a child custody plan.

HOW CAN PARENTAL ALIENATION AFFECT CHILD CUSTODY?

Parents who don’t agree during child custody battles can impact their children in a negative way. According to recent studies, children who have been involved in these battles tend to have more mental and addiction problems. Due to the severe impact parental alienation can have on the children, the court may order a change of custody after they find out that one of the parents is trying to alienate the children.

In some cases, parents can be a bad influence on minor children, therefore, the little contact they may have with them is excused. These cases are generally linked to child abuse, domestic violence, and drug abuse. Parental alienation is quite different. This is when a child rejects a parent with no foundation. In other words, someone is influencing the child negatively against the other parent. Another factor that may contribute to the child’s dislike or rejection of one parent is the family social dynamics.

There are different levels of parental alienation. It all depends on the behavior of both parent and child. A good example of parental alienation is when one parent talks about the other in a disrespectful manner, tries to change child visitation arrangements, says that the child was abandoned by the other parent, and interferes in the child’s relationship with the other divorcee. Family law attorneys know how to effectively navigate these complex cases. They may file a motion for a change of custody based on the magnitude of the alienation.

Get Legal Help

Parents involved in child custody disputes should seek legal assistance and be supportive during this difficult time in their lives. Children as well as divorcees can greatly benefit from mutual cooperation. A family law attorney well versed in child custody matters can explain what your options are and achieve a positive outcome on your behalf. You need someone to help you present to the court your suspicion of parental alienation. Some judges may be ignorant of how parental alienation can impact the child negatively, and your attorney may have to educate them. Your attorney will work along mental health experts who can testify in court and diagnose the problem when necessary.

CAN AN EX GET ALIMONY TO COVER COST OF FREEZING EGGS?

There are many considerations made when calculating alimony in Utah. The court may consider factors such as the earning ability of each spouse, the financial needs of each party and the length of the marriage; but what about the cost of broken dreams? Can a court put a price tag on something like a failure to have children during marriage? And if they could, should an ex-spouse be reimbursed for the lost shot at parenthood?

That is what one lawyer is trying to find out. He is representing a woman who, at the age of 38, does not want to lose her chance at motherhood. With time running out in terms of her biological ability to conceive, she wants to freeze her eggs. As part of her divorce settlement, she is asking her soon-to-be-ex to pay $20,000 to cover the procedure, as well as related expenses.
The lawyer explains that because the couple had unsuccessfully tried in vitro fertilization several times during the marriage, those fertility treatments should be considered a part of the marital lifestyle and maintained even after divorce.

There are likely to be opinions on both sides of the tracks. On one hand, some believe it may make sense to award alimony for eggs, because losing a chance to have a child while married may be seen as a form of sacrifice. On the other hand, there is the worry that putting a price tag on fertility could lead to putting a price tag on other things, such as the price of a face-lift to make up for lost youth during a marriage. Either way, the outcome of this case will likely affect future divorces, as there has been no state case law on the topic thus far.

Free Consultation with Divorce Lawyer

If you have a question about divorce law or if you need help with a family law 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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