A real dynamo when it comes to merchandising foreign currency in Mexico. Crossed the country developing strategies for rocking horses in Washington, DC. Had a brief career writing about wieners in Atlantic City, NJ.
As part of our series on Estate Planning, I wanted to make sure that we talked about funerals and planning for them. You might be surprised at what your family knows, or more likely doesn’t know, about your funeral wishes. Furthermore, it can be a very emotional decision to make if you leave it to your family, which can cause tremendous problems between family members with different views. Save your family the grief of having to make these decisions for you, and put your wishes in writing.
A second major reason for setting your wishes down in writing is cost. Planning ahead of time to secure funeral services is often far less expensive than arrangements made after a person’s death.
What happens if I don’t leave written instructions for my funeral?
If you don’t write down your funeral wishes, state law will determine who gets to make the decision for you. This alone can cause a lot of unnecessary grief, but here is the typical order that most states will follow:
Spouse
Children
Parents
Next of kin
Public administrator designated by a court
To many, this may seem like the right order, so why bother to write it down? Consider what happens if you have more than one child, your spouse predeceases you, and the children don’t agree. The dispute will likely go to court and cause serious discord within the family. Never rely on the state designating the right people; set your wishes down in writing and take the burden off of your family.
Shouldn’t I put my funeral wishes in my WILL?
No. Your WILL often won’t be read or accessible until several weeks, sometimes months, after your death. Wills should never be used to express desires and decisions that need to be dealt with soon after your death. Wills are more properly used for things like property distribution that can wait and aren’t time sensitive.
Where should I leave my written funeral instructions if I don’t do it in my estate plan?
The most common place people leave their funeral instructions is with the executor of their estate (also called Personal Representative), the person who is caring for you, and/or their attorney, with a copy sent to loved ones. It is crucial that even if you leave the official copies with an executor or attorney that you inform your loved ones to reduce the chances of a dispute arising if a loved one is sure you wanted something different. If your plans change over time, be sure to update those same people immediately.
What should I write in my funeral plan?
Most people’s funeral plans are guided by their ethnic, religious and cultural affiliations, but here are some ideas to consider when writing down your funeral plan:
Whether you wish to be cremated, buried and/or embalmed
The facility where you wish to be buried or cremated
The type of container you wish to be buried or cremated in
How your remains will be transported to the facility you select
Whether you wish to have any ceremony accompany your funeral
The details of any such ceremony
Whether you wish any pallbearers and who they will be
Whether you wish any sort of marker, such as a tombstone
What services are available from a mortuary?
Mortuaries and funeral homes typically handle almost all the details involving the disposal of a person’s remains, such as:
Retrieving and transporting the body from the place of death to the facility
Storing the body
Preparing the body for the funeral
Making any necessary funeral arrangements
Conducting the funeral ceremony
I want my funeral to be modest, what can I do to keep it cost-effective?
Funerals can be surprisingly expensive, and planning ahead can save you and your loved ones a lot of money. Determine during your life where you want to be buried, and consider paying for the services in advance if the facility will let you. This will involve quite a bit of shopping around to ensure that you are getting a good deal.
Another option that many people choose is funeral societies. The services offered by each society differ, but these societies offer valuable information on reputable funeral homes, explanation of legal rules and advice on how to make final arrangements. Generally, the society will let you predetermine what services you want at a set price. This allows you to be certain about how much your funeral will cost well in advance and plan accordingly.
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.
Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088United States
Telephone: (801) 676-5506
The truth is, if you qualify, you can file for either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. While a Chapter 13 bankruptcy reorganizes debt into a repayment plan, a Chapter 7 bankruptcy, will eliminate all of your debt (with a few exceptions). Chapter 7 bankruptcy rules determine who qualifies, how to file, and what debt is eligible for discharge. To know if you qualify and if all of your debt will be erased, you need to speak with a bankruptcy lawyer in Utah who can help you.
Qualifying for Chapter 7 Bankruptcy
Income criteria established by bankruptcy law determine which debtors may file for Chapter 7 bankruptcy. In order to qualify under income guidelines, a filer’s income must be equal to or fall below the median income in the filer’s state. Every state has different income guidelines. A filer that falls within a state’s income criteria may file for Chapter 7.
However, if the filer’s income is above the state’s median, the bankruptcy court will require the filer to take a “means test” in order to establish eligibility for Chapter 7. The means test prevents filers with the ability to repay creditors from discharging debt. The means test assesses the filer’s debt and income from the preceding six months. If the debtor has a certain amount of income leftover every month after paying creditors, the debtor will fail the means test. Although the debtor is ineligible for Chapter 7, Chapter 13 is an option. A Chapter 13 bankruptcy allows the debtor to repay creditors in a five-year repayment plan.
Who is Ineligible for Chapter 7 Bankruptcy
Under Chapter 7 bankruptcy rules, a debtor is ineligible under the following circumstances:
A previous debt was discharged within the past eight years under Chapter 7;
A previous debt was discharged within the past six years under Chapter 13;
Their income, expenses and debt would allow for a Chapter 13 filing;
The debtor attempted to defraud creditors or the bankruptcy court; or
The debtor failed to attend credit counseling.
How to File for Chapter 7
A debtor must attend credit counseling prior to filing for Chapter 7. Upon completion of credit-counseling with an agency approved by the United States Trustee, the debtor can file for bankruptcy with a local bankruptcy court. There is a cost associated with filing. Check with the Trustee’s Office to learn the exact amount. A debtor is required to provide information about income, debt, expenditures, creditor holdings of secured and unsecured debt, the sale of prior property, and a list of exempt property. Exempt property is property that Chapter 7 bankruptcy rules allow a debtor to keep. Each state has its own guidelines, but exempt property typically includes clothing, furniture, and cars.
The Bankruptcy Automatic Stay
Once a debtor files for bankruptcy, the bankruptcy court will issue an automatic stay, or an “Order for Relief.” An automatic stay protects a debtor from a creditor’s attempt to collect on a debt during the bankruptcy process. In effect, all collection activities, including any pending lawsuits, must cease. An automatic stay will prevent wage garnishment, filing of liens, and the seizure of a debtor’s property such as a house, a car, or a bank account. If the bankruptcy court dismisses a case, the automatic stay also terminates and the creditor may commence collection activities.
What Does the Trustee Do?
The bankruptcy court appoints a trustee for each bankruptcy case. The trustee is responsible for overseeing the case to ensure that the debtor files the appropriate documents. The trustee must also determine whether the sale of nonexempt property will produce enough income to pay creditors. If property is unlikely to generate substantial compensation in comparison with the time and effort needed to sell the property, the trustee will likely allow the debtor to keep the nonexempt property.
The 341 First Meeting of Creditors
After a debtor has completed and filed all of the necessary paperwork for a Chapter 7 bankruptcy, the trustee will schedule a creditors meeting. At the meeting, the trustee will review the paperwork and gather any other necessary information. If a debtor fails to attend the meeting, the trustee may make a motion to dismiss the debtor’s case. Other reasons for dismissal by the trustee may include the debtor’s failure to provide a copy of income tax returns at least seven days before the creditors meeting or the failure to file a current income tax return.
In most cases, this creditors meeting is the only time the debtor will have to go to the courthouse.
If the trustee determines that you are in possession of nonexempt property, you may have to either give up the property or supply the trustee with money in the amount of the property’s value. Sometimes, though, if the property doesn’t have much value or would be too difficult for the trustee to sell, trustees will occasionally “abandon” the property, essentially allowing you to keep it despite the fact that it is nonexempt.
Getting a Discharge of Debt in Chapter 7
A few months after the creditors meeting, the bankruptcy court will hold a discharge hearing. A debtor’s unsecured debt, debt that is unsecured by property, is discharged. Secured debt, such as a car loan or a mortgage, receives different treatment. At the beginning of the bankruptcy process, the debtor selected to do one of the following: pay the creditor for the replacement value of the property, return the property to the creditor, or “reaffirm” or agree to new contract terms with the creditor.
Under Chapter 7 bankruptcy rules, the debtor must repay some debt. The following debt remains after a bankruptcy discharge:
Child support
Tax debt, unless a debtor meets the criteria to discharge federal tax debt
Student loans, unless a bankruptcy court determines that undue hardship exists
Debt created by fraudulent means
Once a discharge of debt occurs, the creditor can no longer attempt to collect the expunged debt.
Generally speaking, creditors would rather work out a viable payment plan with their debtors than initiate legal action, which not only costs money, but can prolong the collections process. Nevertheless, it is possible to be sued for debt, especially if you fail to communicate with your creditor and miss multiple payments. You may be sued by a creditor even if you have offered to make small payments on your balance, but creditors typically do not sue debtors who are at least making a good faith effort to repay a debt.
What Should you Do If You’ve Been Sued?
Usually, the first indication that you are being sued comes when a constable or a process server hands you a summons and a complaint. The complaint describes the nature and dollar amount of the claims against you for unpaid debt, while the summons is a written notification that you are required to appear in court on a given date if you wish to defend yourself against the claim. If you simply ignore the complaint by not replying with a formal answer, your inaction may result in a default judgment against you.
We always advise people to speak with a lawyer right away and have them review the summons and complaint before you do anything else.
So, if you wish to defend against a creditor’s legal claim against you — even if you agree with the claim, but would rather work out a settlement — you should generally answer the complaint.
You and/or the cosigner of your loan or account will be listed as the defendant(s). The complaint will describe why the creditor is suing and how much money it is seeking in damages (typically the amount owed, plus interest and any applicable penalties). You will have about 20 days to answer the complaint, depending on the state in which the claim was filed. You may have to pay a filing fee to the court when submitting your answer to the complaint, but low income defendants may qualify for a waiver.
Whatever you don, don’t go it alone. It’s like doing brain surgery on yourself. The outcome will not likely be very good.
Your answer typically will include an admission or denial of the claim, any legal defenses, potential counterclaims, and your signature. If you have income that is exempt from garnishment, such as Social Security payments, it may be included in the answer, as well.
Defenses to a Lawsuit
If you plan to defend a claim against you, an attorney can help you decide which defenses make the most sense. Since many consumer contracts include a provision for settling disputes through arbitration, the lawsuit may not even be valid. Also, the claim must be filed within the statute of limitations in your state (usually two or three years, but as long as six years in some states). Additionally, some states have different statutes of limitations for debt-related lawsuits.
A creditor suing you for an unpaid debt also must be able to document ownership of the debt. Creditors frequently sell debts to other entities, which are then considered “debt collectors” for legal purposes. They must be able to produce documentation of the debt in order to sue you, a requirement that does not apply to the original creditor. Therefore, you should request verification of the debt in writing once you are contacted by a debt collector (which may be another financial institution). If it cannot provide written verification, it may not collect from you.
Also, creditors are required by law to attach a copy of the account or written contract to the complaint, or else explain in the complaint why it is not attached. If the creditor or collector cannot produce the proper documentation, you may ask the court to dismiss the lawsuit.
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.
Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088United States
Telephone: (801) 676-5506
The Financial Industry Regulatory Authority (FINRA) announced it has fined Deutsche Bank Securities Inc. $6 million for failing to provide complete and accurate trade data in an automated format in a timely manner when requested by FINRA and the Securities and Exchange Commission (SEC). As part of the settlement, Deutsche Bank has agreed to retain an independent consultant to improve its policies, systems and procedures related to blue sheet submissions.
FINRA and the SEC regularly request certain trade data, also known as “blue sheets,” to assist in the investigation of market manipulation and insider trading. Federal securities laws and FINRA rules require firms to provide this information to FINRA and other regulators electronically upon request. Blue sheets provide regulators with critical detailed information about securities transactions, including the security, trade date, price, share quantity, customer name, and whether it was a buy, sale or short sale. This information is essential to regulators’ ability to discharge their enforcement and regulatory mandates.
Cameron Funkhouser, Executive Vice President and Head of FINRA’s Office of Fraud Detection and Market Intelligence, said, “Firms are expected to provide complete, accurate and timely blue sheet data in response to regulatory requests. Incomplete and inaccurate blue sheet data compromises our ability to identify individuals engaging in insider trading schemes and other fraudulent activity. Firms must invest the resources necessary to ensure that they are providing complete and accurate blue sheet data whenever requested – without exception.”
Utah Securities Lawyer
FINRA found that from at least 2008 through at least 2015, Deutsche Bank experienced significant failures with its blue sheet systems used to compile and produce blue sheet data, including programming errors in system logic and the firm’s failure to implement enhancements to meet regulatory reporting requirements. These failures caused the firm to submit thousands of blue sheets to regulators that misreported or omitted critical information on over 1 million trades.
Additionally, FINRA found a significant number of Deutsche Bank’s blue sheet submissions did not meet regulatory deadlines. Firms typically have 10 business days to respond to a blue sheet request. Between January 2014 and August 2015, approximately 40 percent of Deutsche Bank’s blue sheets were filed past the regulatory deadline; and likewise, from July to August 2015, more than 90 percent of Deutsche Bank’s blue sheets were not submitted to FINRA on a timely basis.
In settling this matter, Deutsche Bank neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.
FINRA’s investigation was conducted by the Office of Fraud Detection and Market Intelligence, and the Department of Enforcement.
SEC: CITIGROUP PROVIDED INCOMPLETE BLUE SHEET DATA FOR 15 YEARS
The Securities and Exchange Commission announced that Citigroup Global Markets has agreed to pay a $7 million penalty and admit wrongdoing to settle charges that a computer coding error caused the firm to provide the agency with incomplete “blue sheet” information about trades it executed.
According to the SEC’s order instituting a settled administrative proceeding, the coding error occurred in the software that Citigroup used from May 1999 to April 2014 to process SEC requests for blue sheet data, including the time of trades, types of trades, volume traded, prices, and other customer identifying information. During that 15-year period, Citigroup consequently omitted 26,810 securities transactions from its responses to more than 2,300 blue sheet requests. After discovering the coding error, Citigroup failed to report the incident to the SEC or take any steps to produce the omitted data until nine months later.
“Broker-dealers have a core responsibility to promptly provide the SEC with accurate and complete trading data for us to analyze during enforcement investigations,” said Robert A. Cohen, Co-Chief of the SEC Enforcement Division’s Market Abuse Unit. “Citigroup did not live up to that responsibility for an inexcusably long period of time, and it must pay the largest penalty to date for blue sheet violations.”
KURT GOTTSCHALL NAMED ASSOCIATE REGIONAL DIRECTOR IN THE SEC’S DENVER REGIONAL OFFICE
The Securities and Exchange Commission announced that Kurt L. Gottschall has been named the Associate Regional Director for enforcement in the Denver office.
Mr. Gottschall began working as a staff attorney in the Denver office’s Division of Enforcement in 2000, before becoming a Branch Chief in 2003, and an Assistant Regional Director in 2010. Since 2012, he worked in the Asset Management Unit, which focuses on misconduct by investment advisers and investment companies. During his career with the SEC, Mr. Gottschall has investigated or supervised dozens of enforcement matters involving a variety of securities law violations, including:
Charges against an alternative fund manager for overcharging management fees and misleading investors about how it valued certain assetsthat ordered more than $6.4 million in monetary relief
An enforcement action against an Omaha investment adviser for failing to seek the most favorable mutual fund share classes in three funds that it managed
Fraud charges and an emergency asset freeze against the promoters of a $30 million Ponzi scheme
A financial fraud case against six executives of a Kansas-based insurance agency franchisor and lender
“Kurt’s deep knowledge of the securities laws, creative thinking, and extensive experience will be significant assets in his new role,” said Andrew J. Ceresney, Director of the SEC’s Enforcement Division. “The Denver office’s enforcement efforts have been immensely productive and I am sure Kurt’s leadership will only enhance their success.”
Julie Lutz, Director of the SEC’s Denver Regional Office, added, “Kurt is respected throughout the Denver Regional Office for his outstanding track record in producing significant enforcement cases, and he has been instrumental in developing the office’s Asset Management Unit into a strong vehicle for collaboration with exam staff and national unit personnel. He brings extraordinary judgment and analytical skill to leading the DRO’s talented enforcement staff.”
Mr. Gottschall said, “For the past 16 years, it has been a privilege to work with the talented, experienced, and dedicated staff of the Denver Regional Office. I am looking forward to leading the enforcement team in Denver as we continue our important mission of investor protection.”
Free Initial Consultation with a Securities Lawyer in Utah
If you need help from a Utah Securities Attorney, 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 84088United States
Telephone: (801) 676-5506
You don’t need to be a millionaire to support causes that are important to you. By including a charitable trust in your estate plan, you create a legacy of good will. This trust can even allow you to support your beneficiaries and your favorite charity from the same pool of money.
A trust is a legal structure, like a mini corporation, with a trustee who holds money or property for the benefit of someone else, called a beneficiary. A charitable trust is a type of trust created for a charitable purpose. Once formed, it can’t be terminated. This means you need to be certain about your decision because you can’t regain control of your money. This article is aimed at helping you decide if a charitable trust is right for you.
Benefits of Charitable Trusts
The benefits of a charitable trust are not just for the extremely rich and famous. It can be an important part of any estate planning program. Consider the following:
Share the Joy of Giving: Establishing a charitable trust can be a family activity where you foster the importance of giving in younger generations.
Tax Benefits: There are several tax advantages you may receive depending on your financial situation. After funding your charitable trust, you are can take an income tax deduction and spread it over five years for the value of your gift to charity. Next, the property will not be included in your estate for the purposes of determining your estate tax. Finally, you can avoid capital gains tax on sale of assets such as stock or real estate.
Receive Income from the Trust: When you set up a charitable trust, you or a beneficiary can receive an income from the trust. Generally, you choose between receiving a fixed dollar amount each year, or a percentage of the current value of the trust.
Diversify Investments: A charitable trust allows you to turn property that isn’t producing income into cash, and then reinvest it all without paying a tax on any profits gained. For example, if you have $200,000 in stock that has appreciated from $10 a share to $100 a share, you can transfer it into a charitable trust and sell it without incurring capital gains tax. Then you can reinvest the money into other income-producing opportunities.
Types of Charitable Trusts
Charitable trusts are frequently referred to as “split-interest trusts” because these trusts typically have two beneficiaries—one charitable and one non-charitable. To understand this better, let’s look at the two forms a split-interest trusts can take:
Charitable Lead Trust (CLT)
With a CLT, the charity benefits first by receiving income for a pre-determined number of years or for someone’s lifetime. After this period, the remaining assets go to a non-charitable beneficiary. For example, you can direct annual payment to your favorite charity for 20 years, and then have you grandchildren receive the remainder. When the assets are transferred, you will receive an immediate charitable deduction for the IRS-determined value of the gift.
Charitable Remainder Trust (CRT)
A CRT is the most popular form of charitable trust. This trust first makes payments to one or more non-charitable beneficiaries. This can be you or someone you select. The charity will serve as the trustee and will be responsible for investing, protecting and managing the trust funds. The charity will pay the income for the beneficiary’s lifetime, or a pre-determined number of years. At the end of the term, the charity receives the trust’s remaining assets.
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First, you need to select the type of trust that best matches your goals and decide how much you can afford to transfer. You can fund the trust with cash, stock, real estate, business interests, art or other valuable assets.
Next, you will set up the trust with a financial institution, such as a bank or investment firm. You will provide detailed instructions on how payment amounts are to be calculated and the frequency payments will be made.
At this point, you will designate the charity or causes you would like to benefit from the trust. The charity must be an IRS approved charity. Remember in a charitable remainder trust, the charity acts as the trustee and manages the trust to produce income for you or your designated beneficiary.
Free Consultation with a Utah Charitable Trust Lawyer
When you need help with the formation or the administration of a charitable trust, 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 84088United States
Telephone: (801) 676-5506
There are many facets of parenting. Two of these are the rights that parents hold regarding the ability to see and raise their children and the responsibilities they have for supporting their children and their children’s actions. Not every family is the same, so determining these rights and responsibilities can be difficult. However, there are legal processes for both the creation and termination of parental privileges and obligations. Child Custody isn’t the only right you have as a parent. As you’ll discover in this article, you could be liable for what your child does.
In this section, you’ll find information on parents’ liability for the acts of their children, the termination of parental rights, and more. Whether you need to learn the basics about parental liability, need to know how parents’ rights can be formally ended, need resources to help children deal with issues such as divorce or adoption, or just want to know the basics on child related tax deductions, use the resources below to learn more. This is why you should talk to a Divorce Lawyer in Salt Lake City Utah about what’s going on in your situation.
Parental Rights
The legal concept of parental rights generally refers to a parent’s right to make decisions regarding a child’s education, health care, and religion, among other things. If parents are separated or divorce, these rights can extend to custody and visitation. While these rights can be automatic in certain family structures, such as with married parents at the birth of the child, it may be necessary for a parent to petition a court for the rights, as in cases of disputed paternity.
Parental rights can also be terminated, either explicitly or implicitly. A father who never claims paternity, or against whom paternity is never established, has no parental rights. A father can also voluntarily relinquish parental rights. A court can also terminate rights for either parent, against his or her wishes, in cases of abuse, neglect, and abandonment, or if a parent has a long-term mental illness, alcohol or drug impairment, or incarceration period.
Parental Liability
Parents can also be legally responsible for their children’s behavior. State laws can vary, but from the time a child is around 8 years old and until he or she reaches the age of majority (18 in most states), parents could be subject to civil lawsuits or even criminal sanctions for the negligent or criminal acts of a child. In civil cases, if a child’s negligence causes an injury to another, his or her parents may be ordered to pay damages or restitution. In the criminal sense, parents could be punished for their children’s delinquency or absence from school, gun crimes, or Internet crimes.
Like parental responsibility, parental liability can also be terminated. Normally, this occurs automatically when a child reaches the age of majority and is considered an adult in the eyes of the law. However, if a parent’s legal rights are terminated for any reason, their legal liability is normally terminated as well.
Legal Help for Parents
Navigating the legal rights and responsibilities of parents can be emotionally and legally challenging, especially if a parent is trying to establish rights or terminate liability. An experienced family law attorney can help you understand the relevant law or help guide you through the legal paperwork and procedures.
Free Consultation with a Custody Lawyer in Utah
If you have a question about family law or if you need to start or defend against a divorce or custody 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 84088United States
Telephone: (801) 676-5506
A trust is an arrangement whereby property is managed by one person, called “the trustee”, for the benefit of another person, called “the beneficiary”. The trustee holds legal title to the property, and owes a fiduciary duty to the trustee. The trust is created by the grantor, who entrusts his or her property to the trustee for the benefit of the beneficiary of his or her choice. The grantor does not have to designate someone else to be the trustee, but may choose to be the trustee himself. Because the grantor may revoke the trust at any time, it is often referred to as a “revocable trust.”
A living trust, or “inter vivos” trust, is a trust that is created by the grantor during the grantor’s lifetime, rather than upon the grantor’s death.
What are the terms and conditions of a living trust?
All of the terms of the trust are set out in the trust document itself. This usually takes the form of a deed, called a “Declaration of Trust,” and is governed by local law, so be sure to consult the laws of your own state. The trustee has the legal obligation to administer the trust according to the terms of the trust and in compliance with local law. If the trustee does not administer the trust properly, he or she can be held personally liable for certain issues that arise. For example, where the trustee does not properly invest to expand the trust fund, many courts have found that trustee liable for the lost income.
Why do people create living trusts?
Living trusts are designed to avoid probate proceedings. Probate simply refers to the court-administered process of paying debts and distributing property to heirs upon one’s death. This is a very timely and costly process. Heirs can often expect to wait months before receiving anything, and by the time they do, the assets have been diminished significantly by court costs and attorney’s fees.
Other common reasons to create a living trust include reducing taxes, ensuring financial privacy, and regulating the use of assets (in case the owner becomes incapacitated).
How does a living trust avoid probate?
Probate is the process that courts use when a property owner has not designated who the property should go to after her death. All of the property transferred according to the living trust avoids probate, however. Upon the grantor’s death, the trustee transfers ownership of the property to the beneficiary, as designated in the trust document. This usually only takes a few weeks, compared to probate which can take months. There are no lawyer’s fees or court costs to pay for settling a trust, so it saves money. Once ownership of all of the property in the trust fund has been transferred to the beneficiary per the terms of the trust document, the trust ceases to exist.
What are the costs involved in creating a living trust?
Like a will, a trust is not too complicated for a person to create without a lawyer. There are many self-help books providing living trust information and computer programs that walk people through how to create a Declaration of Trust — the document that creates the trust. Of course, it is always a good idea to consult an attorney regarding questions that may arise.
There may be filing fees for filing the living trust or for transferring property deeds into a trust, but because no court proceedings are involved, like in probate, court costs are avoided. These filing fees vary per state, so be sure to check your own state’s filing fees. Some states, like Utah, even vary the amount of the fee based on how large the estate is.
The trustee is entitled to compensation for any work done to administer the living trust, and may legally take any reasonable amount from the trust fund. The trustee does have the option of waiving this fee.
How hard is it to keep a living trust?
There is quite a bit of paperwork involved. After the initial creation of the Declaration of Trust, the grantor must create and sign new deeds each time she adds an asset to the trust. For example, if the grantor decides to leave her own house to a beneficiary in the trust, the grantor must sign a deed, specifying that she owns the house as trustee of her living trust. This paperwork may seem burdensome; however, the process is much more efficient today because living trusts have grown to be so common.
Is a living trust document ever made public, like a will?
No. All documents that go through probate, including wills, become public record. Remember, though, that living trusts do not go through probate. Therefore, living trusts are never made a matter of public record.
Is property in a living trust protected from creditors?
No. Both during life and after the grantor’s death, all his assets held in the living trust are subject to lawful debts. For example, if your home is held in trust and passes to your children at your death, a creditor could demand that your children pay the debt up to the value of the home. Because of title laws, real estate ownership is always a matter of public record. This is the way in which creditors can find who inherited the real estate. Tracking down these heirs is more difficult in a trust verses a will, because a will is automatically a matter of public record. When the real estate passes to heirs via a living trust, however, the creditor must go through the process of title searching, which can be a long, tedious process and may not be worth the creditor’s time.
Probate can protect heirs from creditors who fail to file claims within the given window of time, though. During probate, known creditors must be notified of the debtor’s death. Once notified, those creditors have a deadline before which to file against the assets. If they miss the deadline, all of their claims cease to exist.
Should I still make a last will and testament if I have a living trust?
Yes. A will often contains a clause that names the recipient of all property not specifically left to a beneficiary. For example, if someone obtains ownership of a car shortly before death, and does not include the car in his last will and testament, that person may not have had the title of the car transferred to his trust, either. If he did not have a will, that car would fall to probate. However, if he had a will containing the above-mentioned clause, the car would go to the recipient named in the will.
Some jurisdictions recognize what is called a “pour-over will.” This is a type of decree that orders all of the grantor’s property to “pour” into her trust, at the time of her death. That way, all of her assets would be distributed to the beneficiaries named in the trust, and none of her assets would fall into probate. Not all states recognize this; so, be sure to check your state’s laws.
Without a last will and testament, any property that is not transferred by a living trust will be distributed to the closest relatives. This distribution will be determined by the courts according to state law. Each state has devised distribution laws, according to how a reasonable person would want their assets distributed. Even so, courts may not distribute your property the way you would want. It is best to create a will to specify how you want your property distributed after your death.
Will a living trust reduce estate taxes?
Some can. A simple living trust does not affect taxes, whatsoever. However, more complicated living trusts, which include numerous valuable assets, can substantially reduce estate taxes.
An AB trust (also referred to as “credit shelter trust”, “exemption trust,” “marital life estate trust,” and “marital bypass trust”) is designed specifically for married couples with children. Each spouse leaves the other spouse property in trust, for life, and then to the children. For example, if Husband and Wife create an AB trust, and Husband dies, Wife receives all of the property of the trust. Then, when Wife dies, her interest in all of that property passes to their children. This AB trust can potentially save up to hundreds of thousands of dollars in estate taxes.
Free Consultation with a Utah Living Trust Lawyer
When you need a living trust in Utah, call Ascent Law for your free consultation (801) 676-5506. Our living trust lawyers want to help you.
Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088United States
Telephone: (801) 676-5506
Divorce laws are different in every country and they may vary depending on regional, state or provincial laws, and even further on local customs, cultures and religion. With this complete lack of uniformity, should US courts recognize foreign divorces? What happens when a Utah resident gets divorced in a foreign country? Will Utah law recognize the overseas divorce judgment? This article touches on some of the issues that may come up when Utah courts are asked to determine the validity of a foreign divorce.
What is a foreign divorce decree?
Many countries offer their overseas citizens the opportunity to utilize their home country’s judicial system, including obtaining a divorce without either spouse’s physical presence in the country. Let’s say, for example, that Henry and Sarah were both born and married in a foreign country – call it Country A – and they have been living and working in Utah. Let’s say that Henry wants a divorce, and Country A allows Henry to file for and obtain a divorce from Sarah by submitting paperwork through the mail.
A divorce, such as Henry and Sarah’s, that is undertaken in a foreign country, where neither spouse lives at the time of the divorce, is often referred to as a “mail order” divorce by U.S. state courts and the United States immigration authorities. For many who are originally from a foreign country, a mail order divorce is appealing because of the familiarity with the judicial system and culture in their home country, and in most cases, the legal cost is significantly lower as well.
Will Utah recognize foreign divorce decrees?
It depends. Generally, divorce decrees issued in foreign countries are recognized in Utah on the basis of “comity” (civility and courtesy), but there are some requirements that must be met, such as adequate notice of the divorce. And Utah will not validate a foreign divorce if it contravenes Utah public policy, as is the case, for example, with a so called “mail order” divorce that does not require an appearance by either party.
Utah, unlike many other states in the United States, will recognize a divorce decree issued in a foreign country, which is not the domicile of either spouse, provided the following requirements are met:
both spouses must receive adequate notice
there must be some physical presence on the part of at least one spouse within the jurisdiction (authority) of the court rendering the divorce – this is usually met when the requesting spouse is in the foreign country to deal with the divorce proceedings, and
there must be some type of personal appearance or submission to the foreign court’s authority by the responding spouse (the spouse that is not seeking the divorce) – this is typically met by the responding spouse either appearing in person in the foreign court, or signing something showing that he or she agreed to allow the foreign court to make divorce-related decisions and terminate the marriage, such as a written response to the divorce.
If these requirements are not met, Utah courts will not issue a decree validating the foreign divorce.
What proof will I need to validate my foreign divorce in Utah?
You’ll need to obtain a certified copy of the foreign divorce decree from the court in the foreign country where it was issued. You should have the document authenticated for use in the United States, and make sure to get a certified English translation of the divorce decree made so the court can read it.
Can I fight against a foreign divorce decree in Utah?
Not always. You can’t challenge an overseas divorce if:
you personally appeared in the foreign court and filed an answer
you voluntarily appeared in the foreign divorce proceeding and raised the issue of jurisdiction (but you might be able to overturn the divorce if your appearance was unauthorized, fraudulent, or coerced)
you have benefited from, or taken advantage of, the benefits of the foreign decree, such as by remarrying in reliance on the overseas divorce
your “ex-spouse” got remarried in reliance on the foreign judgment, or
you’ve complied with (followed) the terms of a separation or divorce agreement that was incorporated into the foreign decree.
However, if your spouse obtained a “mail-order” or ex parte decree, (meaning without notice to you or without your appearance) you can still challenge the validity of the overseas divorce in a Utah matrimonial action, even if your ex-spouse relied on its validity to his or her prejudice, such as where he or she remarried in reliance on the foreign divorce decree.
What happens after a court recognizes my foreign divorce?
Once a foreign divorce judgment is recognized by a Utah court, it can serve as the basis for an action seeking financial relief, including the equitable distribution of marital property. The spouses to an invalid foreign divorce decree will not be able to seek post-judgment financial relief.
Obviously, the validity of a foreign divorce affects a person’s future family life. In order to avoid attacks on the validity of a foreign divorce, aspects of both Utah and foreign law should be considered. If you have questions, you should contact an experienced family law attorney in your area.
Free Consultation with Divorce Lawyer in Utah
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.
Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088United States
Telephone: (801) 676-5506
