Sunday, March 8, 2020

Can I Lose Custody Of My Child For Adultery In Utah?

Can I Lose Custody Of My Child For Adultery In Utah

Yes. It’s possible.

If you discover your spouse has been cheating on you and you want to know how it will impact your child’s custody, keep reading. You’ve come to the right place. These days, an extra-marital affair is a fairly common occurrence, and many couples choose to “work it out” when the affair is revealed to the other spouse. If that is not the case for your situation and there are children involved, the situation can escalate quickly. Going through a divorce can be a trying time, and adding the emotions of a cheating spouse can compound the extremes of the experience.

The first thing to know is that proving a spouse is committing or has committed acts of infidelity can be difficult. Unfaithful spouses are notorious for covering their tracks and destroying evidence of their extra-marital relationship, even before their spouses suspect there was an extra-marital relationship at all. Finding concrete evidence of a cheating spouse can be a difficult chore all in itself, but proving that the extra-marital relationship was the cause of the divorce can be an even more difficult task. Oftentimes, courts view adultery as a symptom of an underlying issue in the marriage instead of the cause of the issue. Adultery could be the result of poor or miscommunication between spouses. If you do happen to have the ability to prove that adultery was the cause of your divorce, the impact of that evidence on the divorce case could be minimal at best.

Adultery and Child Custody

Adultery is technically a crime in many states, but it is considered an ancient law and is rarely enforced. Generally, adultery has a minimal impact on the outcome of a divorce case. As a general rule, courts consider parenting and marriage as separate situations. A spouse could be an amazing parent while being a lousy spouse, and so, just because your spouse cheated on you don’t necessarily mean that the court will automatically decide in your favor when it comes to your children’s custody or financial support. As long as the cheating spouse has not carried on the extra-marital affair in front of the children, adultery also does not play a role in determining, which parent is given custodial rights to the children. However, in some states, when it is known in the divorce that one spouse committed adultery, this can affect the faithful spouse’s obligation to pay alimony to the unfaithful spouse, even if the unfaithful spouse can show a real financial need for the alimony. Also, in many states, the obligation to pay alimony is immediately rescinded, when the spouse receiving the alimony begins residing with another partner or person.

There are a few different causes for adultery to have a direct impact on the outcome of a divorce case.

• One way is that the cheating spouse used family finances and resources to support the extra-marital relationship. The reason is that those resources are considered the family’s and should be used with the family’s best interest at heart. In this instance, you would most likely be due more of the financial distribution.

• Another way adultery can impact your child custody case is if your cheating spouse allowed your children to witness the extra-marital relationship. Doing so would mean that your spouse did not use clear judgment to keep your children’s best interests at heart, and he or she could lose custody privileges or even lose complete custody.

One of the most significant ways adultery impacts child custody is through settlements. When your spouse cheated on you, he or she most likely stirred up a lot of anger and resentment in you and you will most likely be eager to get retribution. And the extra-marital affair also probably brought shame and guilt upon your spouse. The emotions associated with a relationship involving adultery coupled with the cheating spouse’s desire to leave the marital relationship can have a direct impact on divorce negotiations outside of court. Oftentimes, these emotional factors are the driving force behind the 85% (or more) of divorce cases involving adultery that are settled outside of court. Settling your divorce involving adultery outside of court will give you the upper hand in divorce negotiations, and will speed the process. Not only that, but a settlement is often significantly less costly than an in-court divorce that could drag out for months and sometimes years. The demise of many relationship and marriage comes about, when one person in the relationship finds out that their spouse has been cheating on them and committing adultery. Most people assume, when adultery is the cause of marriage termination, that the faithful spouse holds all the advantages in the divorce settlement. This is not necessarily true. Whether or not adultery even has an impact on the divorce proceedings and decree is different from state to state. Some states place little to no weight on adultery, when considering the outcome of a divorce. Other states show even up to heavy favoritism towards the faithful spouse, when determining the separation of assets and custody in a divorce. Nowadays, adultery is not the marriage-ender it historically was. More couples are “trying to work it out.” Historically, men have been granted much more of a pass to commit adultery than women. When women committed adultery, it was usually punished more seriously. Even today in some countries, like Saudi Arabia and Iran, women who commit adultery can be put to death. In the U.S., a handful of states still legally consider adultery a crime, but the law is rarely, if ever, prosecuted.

In most cases of divorce, where adultery has been committed by one of the persons in the relationship, adultery almost never plays a role in determining the separation of assets. Only when the cheating spouse has used shared assets from the marriage to finance the extra-marital affair does the adultery affect the distribution of assets. For example: If a cheating husband sold stock that was in the wife’s name to support his mistress, then the court would likely take this into account, when distributing assets. Adultery does not really affect the distribution of assets or the custody of children in a divorce case. Adultery does have an impact, however, in the settlement negotiations during a divorce. The great majority of divorce cases will settle (more than 85%), before going to trial. The emotional turmoil of divorce can cause people to behave erratically anyway. With the discovery of adultery, the emotions on both sides of the negotiation table are a ticking time bomb of chaotic distress. The faithful spouse is typically (and understandably) deeply hurt, angry, and seeking retribution. The unfaithful spouse is usually left feeling more guilty and angry at his or herself. In most states, adultery does not play a role in the distribution of assets. Adultery also does not play a role in determining the custody of children. In many situations, adultery is the main contributing factor in leading a couple to divorce. Adultery is also a main influence in the emotional state of each spouse, when they come to the divorce settlement negotiations.

Whether a spouse committed adultery before the divorce will not be a huge factor when courts decide on child custody matters. Although state laws could vary widely, all courts are legally liable for deciding child custody issues with the best interests of the child in mind. This basically means that a mediator or judge will focus on encouraging and fostering the emotional development, happiness, mental health and security of the kid. Basic factors courts use for determining the best interests of a child include both parents’ physical and mental well being, the wishes of the kid, and the capability of the parents to provide a stable living environment. Although some states might enable courts to award more funds to the spouse who has been cheated on, the duty to create the best child-centered custody arrangement would supersede any proof of adultery.

But just because no specific law instructs judges to consider extramarital affairs when figuring out child custody orders, there is still a possibility that it can have an implicit effect on child custody decisions. This is mainly because the attorneys, mediators and judges that negotiate child custody arrangements are just humans, and knowing that a spouse cheated can produce a subconscious prejudice that may come through during decision-making. In addition, even if judges are instructed not to consider adultery when overseeing a divorce proceeding, he or she might be less prone to make favorable decisions to the spouse who has committed adultery. An extramarital affair could likewise affect custody arrangements if proceedings are ongoing and may be likely to continue following the divorce case. For example, when making custody decisions in the best interests of the child, a judge would consider with whom and where the kid should live with. Not that adultery will be automatically damaging to the cheating spouse, but the person the cheating spouse was cheating with can have an indirect impact on custody arrangements. For instance, what if they decide to live together? Would it be in the best interest of the child then to live with the cheating parent? Things like that. With that said, divorce, especially when children and adultery are involved could be extremely complicated. So, it is best that you seek help from an experienced attorney to help you obtain the best possible results for your case.
Divorce can be a traumatic process under the best of circumstances, but when a marriage ends over one spouse’s infidelity, the split can be even more difficult to navigate and that’s especially true when a couple has children. One of the most challenging aspects of divorce for families is figuring out who gets custody of the kids, and wives or husbands who’ve been cheated on might feel as if they’re entitled to be the primary caregiver (or even like their soon-to-be ex can no longer be trusted). If the extra-marital affair turns into a long-term relationship, for example, or if either parent wants to start dating again, they can agree that neither party will introduce the kids to a significant other without first meeting certain guidelines: They might have to get permission from their ex-spouse, take their child to talk to a therapist about the change, or mandate a waiting period (such as neither parent bringing a new love interest around the kids for six months post-divorce, etc.).

Past conduct of a parent is not considered when dealing with custody or access issues if that conduct or behavior does not impact their effectiveness as a parent. However, this can be interpreted broadly in instances of infidelity and abuse. That means simply having an affair is not grounds on which people lose custody or access to their children. However, if you or your spouse committed adultery and are planning to build a relationship with this third person, it may impact custody and access to children of your original relationship. If your new spouse or partner intends to move in immediately after your separation and you want your children to live with you as well, this may pose a problem. For children of any age, it can be confusing and upsetting to see mom and dad together one day and then suddenly; mom or dad is sharing a bed, being affectionate with another person, or creating a new family structure. To expose a child to this type of trauma would be considered insensitive by most judges and not in the child’s best interests. What this behavior communicates to the court is that you as a parent are unable to put your child’s needs ahead of your own desires. Instead, be smart, be respectful of your children’s experience of the separation, have some patience and give it time before you start introducing a new partner to your children.

Be sure that this person is around for the long run and understands that your priority is to be a parent first and a partner second. Failure to take these steps may mean an uphill battle in seeking custody of your children, which can damage them in the long run. Abuse of a child, family member, or romantic partner is an important factor in custody and access cases. It is the exception to section 24(3) of the Children’s Law Reform Act and any past abusive behavior by a parent will be considered by a judge when determining a child’s best interests. Abuse can be physical and/or emotional, and both forms are recognized by the court. When considering custody issues, judges will take into account the parents’ ability to collaborate and co-parent. In situations of joint custody, parties must be able to discuss all major decisions regarding the children and this can be problematic where there is a substantiated history of abuse by one spouse against the other. No judge would force a survivor of domestic abuse to interact with their abuser and would also be hesitant to expose a child to such parental interactions. As such, a parent’s abusive behavior towards the other parent can hurt their chances at gaining shared custody of the children, even if the abusive behavior was never directed at the children in question. As always in family law, the best interests of the children are paramount and that means every action you take within the family context can be considered in relation to their well-being for the purposes of custody and access.

How judge decide who should get custody

Judges must decide custody based on the best interests of the child. The best interests of the child law require courts to focus on the child’s needs and not the parent’s needs. The law requires courts to give custody to the parent who can meet the child’s needs best.

Judges look at many things to see what is in your child’s best interest:

• Will your child have a safe place to live?
• Will your child be well-fed and clothed?
• Will your child be supervised enough?
• Will your child get enough emotional support?
• Which parent has been taking care of your child?
• Does either parent abuse your child?
• Does either parent abuse drugs or alcohol?
• Does either parent expose your child to domestic violence?

In summary, your cheating spouse will likely not have to pay more money in alimony or child support because of his or her affair. And his or her affair will probably have little bearing on child custody. But, your spouse will most likely be eager to settle the divorce outside of court quickly.If your spouse has had an extra-marital affair, we recommend you seek experienced legal counsel with a specialty in divorce law.

Child Custody Attorney Free Consultation

When you need to fight for custody of your kids, please call Ascent Law LLC (801) 676-5506 for your Free Consultation. 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

Source: https://www.ascentlawfirm.com/can-i-lose-custody-of-my-child-for-adultery-in-utah/

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Should You Plead Guilty To A DUI?

Should You Plead Guilty To A DUI

DUI stands for Driving Under the Influence. Because the way definition is phrased, there is a great deal of local interpretation as to what “under the influence” really means. Drivers are often arrested because of a cop’s suspicion. This can happen even if the individual passed a Breathalyzer test. The police may try to make examples out of sober drivers in order to deter future incidents of actual drunk driving.

It is not against the law to drink moderately and then drive home once sober. Nevertheless, drivers may face accusations of DUI and suffer severe penalties. Some drivers have been locked up in jail, had their license suspended or have been forced to pay high fees to both lawyers and the state. A conviction will make your car insurance rates soar and may even affect your future employment.

This is why it’s important for accused drivers to consult with a qualified DUI attorney to discuss their legal options. Do not be content with the attorney provided for you by the state. Do not assume that the charges you’re facing fit the crime committed. The most experienced lawyers do charge a fee but statistically, get better results. An experienced attorney can plead not guilty and fight for your rights if you were wrongfully charged. Even if you were guilty of drunk driving, he or she can help you get a fair and balanced sentence.

After pleading guilty to a DUI in Utah, you will likely have several questions running through your mind. Although you should discuss the pros and cons of pleading guilty to a DUI in Utah with your attorney, here is a look at a few of the most common Utah DUI FAQs asked by people who are considering such a plea.

Do I have to tell my employer about my DUI?

State law does not require you to tell your employer, but your company contract may require you to provide notification of your arrest and conviction. This is most commonly encountered with jobs were operating a motor vehicle is required.

Will I lose my job after pleading guilty to a DUI in Utah?

Whether or not you lose your job is entirely dependent upon your employer.

Can my family or friends find out about my guilty plea?

While you are not legally obligated to tell your friends and family that you have been convicted of a DUI, it is a good idea to share this information with someone. This way, you will have someone to talk to who can provide the emotional support you may need at a difficult time. In addition, it is important to note that your case records can be made available to the public. As such, it will not be difficult for those you know to discover the information on their own.

What kind of penalties will I be facing after pleading guilty to a DUI in Utah?

The penalties you face will largely depend upon the type of agreement your attorney has negotiated on your behalf. In addition, certain aggravating factors can affect the types of penalties you face. Having a BAC of.15 or higher, having a child in your car at the time of the arrest, or being a driver who is under the age of 21, all will have an impact on the types of penalties you face. Jail time, fines, and mandatory alcohol treatment are all possible penalties that may be levied.

If you have recently been charged with an alcohol-related offense, you may be going through a lot of different emotions including shame, fear, and maybe even some panic. If you are like most people who are caught driving impaired or over the legal limit of alcohol in your bloodstream, you likely did not intend to drive impaired, or perhaps not even realized you were over the limit.

Perhaps after the fact, you’ve had the chance to think back over the events that preceded your drunk driving charge and you’ve now accepted that indeed, you did have a few drinks too many. And perhaps you’re now considering pleading “Guilty” to the charge and just getting it over with.
This is an understandable choice. Many people who are charged with a DUI end up deciding that defending against the charge will be too costly and time-consuming.

In some jurisdictions such as the Province of Ontario in Canada, it appears that the system is set up to encourage you to plead guilty to the alcohol-related driving offense. If you do plead guilty in that Province and are sentenced within 90 days of the offense date, you may have the opportunity to apply for early reinstatement of your driver’s license. You could apply after 90 days of your court-ordered suspension have expired as long as you have paid your fine and have enrolled in the Back On Track remedial program.

However, if you plead not guilty but subsequently are found guilty by the Court, this option is not available to you. You must wait the full year of suspension before you can apply for your license.

Is it away for the Province Of Ontario to encourage you to plead guilty and avoid a time-consuming trial? It could be. And it just might be a strong reason for you to make a decision to plead guilty rather than defend against the charges.

Should you still obtain legal counsel even if you are planning on pleading guilty? Yes, you should!

A lawyer can be of immense help to you in navigating the court system and has experience in understanding the nuances and formal procedures that are required in criminal court. As well, they may be able to assist you in obtaining a lesser sentence than what the State or Crown Attorney is recommending the Judge give you. A lawyer acting on your behalf could help persuade a judge that a lesser sentence is appropriate in your particular situation and for the circumstances that lead up to your arrest and charge.
DUI penalties can be severe and life-changing. Even if you are planning on pleading guilty, a lawyer may find something amiss in the case against you that perhaps there may be a good chance you could be found not guilty.
As with any serious allegation against you including a drinking and driving charge, getting the advice of a lawyer is highly recommended.

Why not plead guilty to a DUI and just take the penalties? You can be done with this entire thing in a few months, right?

Actually, pleading guilty to DUI charges is rarely a smart move. It’s understandable that you may have been drinking, perhaps a lot, and just want to face the music and be done with it. But you have to understand that you have a right to a trial by law. If you plead guilty, you are not just saying “I am guilty”; you are also accepting the penalties.

Hire a DUI Lawyer

You need a lawyer, especially if you are planning to plead not guilty. Hopefully, you are not pleading guilty and forgoing a lawyer.
In order to hire a good lawyer, you need to know their experience in and out of court. While plea bargains are rare, your lawyer may try to get one. You can find many experienced DUI lawyers in your area by looking online or through local law firms.

It’s important to let your DUI lawyer take control of this case. Yes, you are the one facing fines, jail time, and license suspensions, but your lawyer is the one with experience in DUI court. Be involved and find out what is going on, but also let your lawyer prepare a strong defense.

Tell Your DUI Lawyer Everything

You want to be completely honest with your lawyer. This is essential. If you, for example, hide the fact you have other charges, it can severely hurt his or her ability to defend you. If you did drink in excess, your lawyer needs to know. If you did say things to the officer, your lawyer must know. And you should also explain what exactly happened in the arrest.

A DUI defense is often about how valid the breath and blood tests were. You can also question what the arresting officer did or how he or she acted. This again should be left to your lawyer.

There are many ways to lessen penalties if not have them thrown out completely. You will likely be facing a judge, who often has handled court cases like yours dozens if not hundreds of times. It will be hard to have the charges thrown out, but it is very possible. At the least, a strong DUI defense can cast doubt on the charges against you.

An officer might perform the breathalyzer wrong; he or she might have treated you inappropriately; you may have never been read your rights – these all can lessen penalties. When it’s between no jail time and weeks in jail, hundreds of dollars in fines or no fine, and a one-year license suspension or a slap on the wrist, it’s easy to see why you should reconsider pleading guilty.

Speaking with a drunk driving attorney, once you have been released from the city or county lock up, can mean the difference between a rushed and unsuccessful defense and a dismissal of all of the charges against you. The penalties of a DWI conviction can have long term and devastating effects upon your professional, personal and financial future. So the sooner you deal with the allegations the better.

An experienced DUI lawyer can review the details of your arrest and evaluate the validity of the evidence that law enforcement officials claim to have against you. Did you blow higher than 0.05% on your breathalyzer? Perhaps you did. But was the breathalyzer test administered in a timely manner in order to accurately reflect your blood alcohol content at the time you were actually driving? Did you perform poorly during the field sobriety testing? Perhaps you did. But did the officer make any inquiries pertaining to any physical limitations, handicaps or conditions that might hinder your performance of the tests?

You may be under the impression that your DWI charges are simply yours to accept, but nothing could be farther from the truth. Many elements must be considered before you decide to just throw in the towel and accept the penalties. First-time offenders convicted of driving while intoxicated, as an example in the State of New Jersey, will face a suspension of their driving privileges, fines, fees to the state, surcharges to the DMV, incarceration and an obligation to complete a course in Alcohol Education and Rehabilitation.

In total, you could be facing more than $3,800 in fees and fines. The various “fees” various states have imposed on DWI charges generate millions of dollars in revenue and taxes on an annual basis. On top of that, there are the financial penalties that will be imposed by your insurance company or the expenses that you will be obliged to pay for drug and alcohol counseling, the installation of an ignition interlock device (if it’s mandated) or probationary supervision.

The details and processing of a DUI can be incredibly complex and confusing. Facing the courts without the aid of a legal professional is virtually the same as submitting a guilty plea or pleading no contest to the charges. The prosecutors are not interested in pursuing the validity of your evidence or ensuring that it was not obtained by the means of an illegal search and seizure – their job is to win cases. The job of the drunk driving attorney is to question all evidence.

DUI Lawyer Free Consultation

When you need help with DUI charges in Utah, please call Ascent Law LLC 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

Source: https://www.ascentlawfirm.com/should-you-plead-guilty-to-a-dui/

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Saturday, March 7, 2020

Can I Sell My House To Stop Foreclosure?

Can I Sell My House To Stop Foreclosure?

Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.

Formally, a mortgage lender (mortgagee), or other lien holder, obtains a termination of a mortgage borrower (mortgagor)’s equitable right of redemption, either by court order or by operation of law (after following a specific statutory procedure).

Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the equitable right of redemption if the borrower repays the debt. While this equitable right exists, it is a cloud on title and the lender cannot be sure that they can repossess the property.

Therefore, through the process of foreclosure, the lender seeks to immediately terminate the equitable right of redemption and take both legal and equitable title to the property in fee simple. Other lien holders can also foreclose the owner’s right of redemption for other debts, such as for overdue taxes, unpaid contractors’ bills or overdue homeowner association dues or assessments.

Selling a Foreclosed Home: What You Can Do

Selling a foreclosed home is an option many homeowners who have defaulted on their loan don’t know much about. Foreclosure is a long and heartbreaking process for a homeowner. But, it’s not hopeless. When looking for a solution to defaulting on their mortgage payments, many owners float this question: “Can I sell my home if it is in foreclosure?” The short answer is yes.

Up until the home is sold at auction, you can rescue your home by selling it and paying the lender everything you owe, including back payments and penalties. And in some states, you are allowed a “statutory right of redemption.” This is essentially a take-back period after the foreclosure—from 30 days to as much as two years in some places —in which you can repurchase your home.

How does foreclosure work?

A foreclosure starts when the homeowner is issued a notice of default after your fourth missed payment. The whole process can take from six months to one year or more, depending on the negotiations between you and your lender.

Selling a foreclosed home after foreclosure has begun

You can sell your home up until it is sold at auction or the bank takes possession of your house. During this period of time, the home is considered to be in “pre-foreclosure” and you can try to settle your debts with the lender.

One way to avoid foreclosure is to sell your home (with the help of an experienced agent) and net enough to pay off everything you owe the lender, including back mortgage payments, penalties, and fees. You won’t own your house anymore, but you won’t have the house foreclosed upon, which would do serious damage to your credit.

If you decide to sell, tell your lender that you plan to list the property for sale with the intention of paying off the mortgage. Ask the lender to postpone a foreclosure auction or sale and give you a chance to find a buyer.

Of course, making the decision to sell sooner than later will take some of the pressure off the deal and allow you more time to get the best price for the property. Make sure you ask the lender how long you have before the property will go on the auction block. It all depends on which state you live in. In some states, a lender can auction off a property in less than a month; in others, lenders can’t auction off a home for more than a year.

Hire a real estate agent

When time is of the essence, hiring a real estate agent should be your first priority so you can figure out how much your home is worth. A good agent can run a market analysis to help you anticipate how much money your home will fetch and if it’s enough to pay off the mortgage.
A real estate agent can also negotiate with lenders to reduce the amount they’ll take in a short sale to rescue the property from foreclosure.

Short sale to the rescue

Lenders hate foreclosures because, even for them, they are legal, financial, and PR headaches. That’s why some lenders agree to a short sale, where you sell your home for less than everything you owe.
Agreeing to a short sale is a desperate action for a lender to take. Lenders don’t want to lose money on mortgages, but they also don’t want to spend their time foreclosing on, owning, and selling property.

So, after you spend a lot of time filling out paperwork and explaining how you got into this financial predicament, you might be able to persuade your lender to work with you on a short sale. Short sales avoid foreclosure and the huge hit your credit score can take as the result of a foreclosure.

The worst thing you can do when you fall into mortgage arrears is attempt to hide from your lender.

Lenders will find you or start foreclosure proceedings if they can’t. It’s much better to call your lender, explain your financial problem, and beg for mercy and a little more time to catch up on your payments or to refinance.

If that isn’t feasible, here are other ways to rescue your home:

• Restructure the loan: Some lenders will restructure your monthly payments and allow you to repay missed payments over time. They might also allow you to reduce your interest rate.

• Ask for forbearance: Your lender might agree to reduce or suspend your payments temporarily to give you time to sort out short-term financial difficulties (e.g., waiting for your new job to start).

• Search for money: Make sure you’ve liquidated everything you can before losing your home. Can you raise money by selling a car and taking public transportation? Pawning jewels? Cleaning out closets and selling items on eBay or Craigslist? Also, consider asking your parents or other flush family members and friends for a loan or gift. Make sure you draw up papers so everyone is clear about the details of the loan and repayment schedule.

• Find new ways to save: Go over your monthly budget with a magnifying glass and see where you can save money, and brainstorm about how you can earn more. Maybe you can find a temporary second job, or earn money on weekends by baby-sitting or walking dogs. This is the time for everyone to pitch in and pinch their wallets.

• Foreclosure Workout. Up until the time your home is scheduled for auction, most lenders would rather work out a compromise that would allow you to get back on track with your mortgage than take your home in a foreclosure.

• Short Sale. After your lender files an NOD but before they schedule an auction, if you get an offer from a buyer, you lender must consider it. If they foreclose on your home, the lender is going to simply turn around and try to resell it; if you present them with a reasonable short sale offer, they may see it as saving them the time, effort and trouble of finding a qualified buyer in a soft market. So, if your home is on the market, continue to aggressively seek a buyer for it, even after your lender initiates the foreclosure process. Read our guide on how to Sell Your Home Fast When Foreclosure Looms for action steps you can take to unload your home fast, then make your best pitch as to why your lender should agree to the short sale.

• Bankruptcy. Bankruptcy stops foreclosure dead in its tracks. Once you file a bankruptcy petition, federal law prohibits any debt collectors, including your mortgage lender, from continuing collection activities. Foreclosure is considered a collection activity, and so the day your lender becomes aware that you have filed for bankruptcy, the foreclosure process will effectively be frozen. But here’s the rub; once you get to court, the bankruptcy trustee’s role is simply to play referee or mediator between you and your creditors. Bankruptcy really just buys you more time to replace your lost job or recover financially from a temporary disability; it doesn’t let you off the hook for your debts. The law requires your mortgage company and other creditors to work in good faith with you to formulate a reasonable repayment plan so you can get back on track. Consult with a bankruptcy attorney regarding whether filing for bankruptcy is a good strategy for you.

• Deed in Lieu. A deed in lieu of foreclosure is exactly what it sounds like. The homeowner facing foreclosure signs the deed to the home back over to the bank — voluntarily. These sounds like it would be a great option, but actually has the same impact on a homeowner’s credit that foreclosure does. Lenders are very reluctant to agree to take a home back through a deed in lieu of foreclosure for a number of reasons: They fear the homeowner will sue later alleging they didn’t understand what was happening, the lender must pay any second or third mortgages or home equity lines of credit (HELOCs) off before executing a deed in lieu, and the lender wants to be certain that the borrower’s financial distress is real. Allowing the foreclosure process to proceed is one way the lender can be sure the borrower is not faking poverty.

As such, a deed in lieu of foreclosure is virtually never granted unless: foreclosure is imminent; the owner has had their home on the market for several months and been unable to sell it; there are few or no junior loans or liens the lender will have to pay off; the seller can document their financial hardship; and the seller initiates the process and documents the voluntary nature of their request for a deed in lieu. Even when all these factors are present, many lenders will not agree to a deed in lieu, but it is worth a try!

• Assumption/Lease-Option. Most loans these days are no longer assumable. The average mortgage now contains a “due on sale” clause by which the borrower agrees to pay the loan off entirely if and when they transfer the property. However, if you are facing foreclosure, you might be able to persuade your lender to modify your loan, delete this clause and allow another buyer to assume your loan. The lender may want to assess the new buyer’s qualifications, but it can be a win-win-win option for all. You might be able to negotiate a down payment from the buyer which you can use to pay off your outstanding past due mortgage balance.

In a lease-option scenario, the buyer becomes your tenant, and you continue owning the property until the buyer has saved enough down payment money, improved their credit sufficiently or sold their other home. In some situations, the buyer will make a one-time, lump option payment upfront, paying you to obtain the option to purchase your home. You can apply the option payment to bringing your mortgage current. Then, the buyer will make lease payments monthly which you, the seller, then apply to your mortgage. To successfully use a lease-option to stop the foreclosure process, you must negotiate lease payments that cover most or all of your mortgage payment, property tax and insurance obligations — enough that you can make up any difference and still pay to live somewhere else.

Foreclosure Lawyer Free Consultation

When you need legal help with a foreclosure in Utah, please call Ascent Law LLC 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
<span itemprop=”addressLocality”>West Jordan, Utah
84088 United States
Telephone: (801) 676-5506

Source: https://www.ascentlawfirm.com/can-i-sell-my-house-to-stop-foreclosure/

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How Do I Set Up An Estate Plan?

How Do I Set Up An Estate Plan

Estate planning is the preparation of tasks that serve to manage an individual’s asset base in the event of their incapacitation or death. The planning includes the bequest of assets to heirs and the settlement of estate taxes. Most estate plans are set up with the help of an attorney experienced in estate law. Estate planning involves planning for how an individual’s assets will be preserved, managed, and distributed after death. It also takes into account the management of an individual’s properties and financial obligations in the event that they become incapacitated. Assets that could make up an individual’s estate include houses, cars, stocks, paintings, life insurance, pensions, and debt. Individuals have various reasons for planning an estate, such as preserving family wealth, providing for surviving spouse and children, funding children and/or grandchildren’s education, or leaving their legacy behind to a charitable cause.

The most basic step in estate planning involves writing a will. Other major estate planning tasks include:

• Limiting estate taxes by setting up trust accounts in the name of beneficiaries
• Establishing a guardian for living dependents
• Naming an executor of the estate to oversee the terms of the will
• Creating/updating beneficiaries on plans such as life insurance, IRAs and 401(k)s
• Setting up funeral arrangements
• Establishing annual gifting to qualified charitable and non-profit organizations to reduce the taxable estate
• Setting up a durable power of attorney (POA) to direct other assets and investments

The sum total of a person’s belongings, property, money, and assets is generally referred to as their estate. In particular, there should be plans regarding how the estate will be divided and distributed to recipients when the estate owner passes away. Individuals, families, and couples who want to think ahead for the future will create typically an estate plan so that different pieces of their net wealth can be managed as part of a unified whole.

Is an Estate Plan Different from a Will?

A will is a legal document created when an individual is alive. This document specifies who should inherit any assets or material objects upon their death. Usually, a comprehensive estate plan will include a will as part of the entire plan. However, an estate plan is also likely to include other financial management instruments, such as a trust or multiple trusts that can take effect while the person is still alive. Ultimately, an estate plan can be more varied and unique to each individual based on their assets and needs. So an estate plan is far more comprehensive, if the individual requires it.

How To Create an Estate Plan

Creating an estate plan will involve identifying tallying up all the different pieces of a person’s individual wealth. This may include property owned, stocks, holdings, cash, savings, insurance policies, and health issues. People with disabilities or disabled beneficiaries may need to create specific estate plans to meet their needs. Many people draft a will to begin the overall process of creating an estate plan. This is typically the main legal instrument that contains their instructions and preferences for the distribution of their estate. Next, it is necessary to consider any assets they want to leave in trust and establish a trust for those assets. Trusts are established by a grantor (the estate owner), who assigns trustees and beneficiaries, as well as guidelines for the trust, and then moves wealth and gifts into the trust. The trustee is the person tasked with managing the property, while the beneficiary is the person who will ultimately receive the property. Trusts can sometimes be useful for transferring property to recipients before the estate owner passes away. This can have several benefits depending on the type of property and the type of trust involved. For instance, certain taxes can be avoided, and trust property transfers can make the overall estate distribution process simpler when the person passes away.

An estate plan will need a power of attorney to be designated in the event that the owners of the estate are no longer able to manage their affairs. A power of attorney allows the estate owner to designate another person (an “agent”), who can make legal decisions on their behalf. Also, a set of health care instructions should be included as part of the estate plan. The person creating the estate plan must decide if they want the same person or persons managing their health care and financial matters, or if they would like to designate different parties. Next, the person creating their estate plan will need to establish insurance policies, especially estate planning life insurance. Life insurance often covers the payment of debt or estate tax after the person passes away.

Calculating potential taxes that the federal government could collect after death is necessary to select the right policy that will cover all expenses, including funeral expenses. It is also a good idea to insure any businesses or business ventures. Finally, an estate planning lawyer can advise you on how to store the documents of your estate plan so that they are safe and accessible to those who need them.

Some Factors To Consider When Creating an Estate Plan

When creating an estate plan, it is useful to broadly consider various factors that might affect the distribution of your estate. Each estate is different, as each person will own different assets and property, and will have differing amounts of financial savings.

Some factors that you should consider when creating your estate plan may include:
• Who Will Receive Your Property: You should consider who you want the beneficiaries to be when you pass away. Beneficiaries are the persons who will receive portions of property and assets. In most cases, this will include close family members like a spouse, children, and siblings. It can also include friends, more distant relatives, and even business associates. These should be stated clearly (usually in the will document) so as to avoid any disputes or conflicts;

• The Type of Property Involved: You should look closely at all the different types of property, assets, and bank account funds you own. This can influence the way that your estate property is divided up. For instance, you may want a certain family member to receive real property (such as a home), while you may want other family members to receive your stocks and security assets. This all depends entirely on your personal preferences and desires; and

• The Local State Law Regarding Wills, Trusts, and Estates: Estate planning laws will vary by state. These may have effects on the way you can distribute and allocate your estate property. If you have any questions regarding the specific estate laws in your area, you should contact an attorney.

• Creating a Will or Trust: You might want to draft your will or trust by yourself. You can certainly do so if your estate is simple. However, many people’s estate plans are more complicated than they could imagine. For this reason, you would benefit from consulting with an attorney. For example, if you have a disabled heir, you don’t want to leave them assets through a will. Instead, you should create a special needs trust. If your estate is large, you might be able to lower your estate taxes using different trusts. A lawyer can explain the differences between a will and a trust. They are very similar, but a trust can help you avoid probate, which might be time-consuming and expensive.

• Identify your assets: Everything you own belongs to your estate. You should sit down and identify everything that you own. Consider the following common assets:

1. real estate
2. financial accounts
3. automobiles
4. personal property, such as clothing, jewelry, books, art, etc.
5. life insurance policies
6. retirement or pension accounts.
7. digital assets, such as digital photographs, unpublished manuscripts, eBooks, etc.

• Plan to protect your heirs from your debt: Debt can include anything from medical bills to a mortgage. If you may be leaving any debt behind, there are a few things you can do to make sure that your heirs are not harassed by creditors. These include:

1. Buying enough life insurance to cover your debt.
2. Naming a person as your beneficiary instead of an estate.
3. Getting loan protection insurance.
4. Paying off your debt while you are living.

• Nominate an executor: Your executor will be responsible for collecting and safekeeping your estate after you die. They file your will with the probate court and then pay any debts you have with your estate assets. Once all debts are paid, they distribute your property according to your wishes. If you decide to create a trust, then you will name a trustee. Choose someone you trust and someone your heirs will trust. For example, if you have three children, you might not want to name any of them. This will reduce squabbling. Instead, you could name a good friend. Name one or more alternates in case your original choice declines to serve or dies before you. Some states place restrictions on who may serve as your executor, so talk about this choice with your lawyer.

• Name your beneficiaries: You can leave property to whoever you like. Make sure to name alternates in case your beneficiary dies before you. For example, you might want to give your diamond ring to your daughter, but if she dies before you, then you can leave it to her daughter (your granddaughter). You can also give property to groups of people. This might be easiest with money, which can be easily divided. If you leave a house to two people, they may have to sell it. You probably won’t name a beneficiary for every specific piece of property. This is why your will has a residuary clause. Your residuary is everything you own that you haven’t specifically bequeathed to someone. Name one or more beneficiaries to your residuary estate. In community property states, your spouse may have a claim to part of your estate, even if they are not your beneficiary.

• Choose guardians for young children: You can name your guardians in a will. Choose people you trust and who agree to become guardians in case you die. You should also name back-up guardians in case the original ones decline to serve. Always talk it over with the potential guardian. Many people have legitimate reasons why they can’t serve, and you should know ahead of time.

• Planning for Estate Taxes: Federal or state taxes applied on an estate can considerably reduce its value before asset distribution is made to beneficiaries. Death can result in large liabilities for the family, necessitating generational transfer strategies that can reduce, eliminate, or postpone tax payments. During the estate planning process, there are significant steps that individuals and married couples can take to reduce the impact of these taxes. For instance, married couples can set up an AB trust that divides into two after the death of the first spouse. Or a grandfather may encourage his grandchildren to seek college or advanced degrees and, therefore, transfer assets to an entity for the purpose of current or future education funding. That may be a much more tax-efficient move as opposed to dying, having those assets transferred, and finally having the same assets fund college when the beneficiaries are of college age. The latter may trigger multiple tax events that can severely limit the amount of funding available to the kids. Another strategy an estate planner can take to minimize the estate’s tax liability after death is by giving to charitable organizations while alive. The gifts reduce the financial size of the estate since they are excluded from the taxable estate, thus, lowering the estate tax bill. As a result, the individual has a lower effective cost of giving, which provides additional incentive to make those gifts. And of course, an individual may wish to make charitable contributions to a variety of causes.

Estate planners can work with the donor in order to reduce taxable income as a result of those contributions or formulate strategies that maximize the effect of those donations. Estate freezing is also a strategy that can be taken to limit death taxes. It involves an individual locking in the current value and thus, tax liability, of his or her property, while attributing the value of future growth of that capital property to another person. Any increase that occurs in the value of the assets in the future is transferred to the benefit of another person, such as a spouse, child, or grandchild. This method involves freezing the value of an asset at its value on the date of transfer. Accordingly, the amount of potential capital gain at death is also frozen, allowing the estate planner to estimate his or her potential tax liability on death and better plan for the payment of income taxes.

Life Insurance And Estate Planning

Life insurance serves as a source to pay death taxes, pay expenses, fund business buy-sell agreements, and fund retirement plans. If sufficient insurance proceeds are available and the policies are properly structured, any income tax arising on the deemed dispositions of assets following the death of an individual can be paid without resorting to the sale of assets. Proceeds from life insurance that are received by the beneficiaries upon the death of the insured are generally income tax-free. Estate planning is an ongoing process and should be started as soon as one has any measurable asset base. As life progresses and goals shift, the estate plan should shift in line with new goals. Lack of adequate estate planning can cause undue financial burdens to loved ones (estate taxes can run higher than 40%), so at the very least a will should be set up even if the taxable estate is not large.

Organize Your Files

Your executor will remember you more fondly if you organize your estate-planning paperwork and financial records, and store them in a safe yet accessible place. Keep the original documents in your lawyer’s vault or in a bank safe-deposit box or home safe. Be aware that if your spouse or someone else is not the co-owner of your safe-deposit box, your executor may have to file a petition with the court for permission to open it. Pull together any of the documents your executor will need, such as the deed to your burial plot; insurance policies; statements from your bank, brokerage house, and mutual-fund accounts; and pension and other employee-benefit information. Maintain an up-to-date list of your assets, the names and telephone numbers of your legal and financial advisers, and an inventory of the items in your safe-deposit box. Store such documents at home in a locked, waterproof, and fireproof metal box, file cabinet, or safe. And finally, review your estate plan at least every five years. Make sure all of your documents still reflect your desires, and that your beneficiaries and financial and health care proxies are still willing and able to serve.

Set Up An Estate Plan Free Consultation

When you need to set up your estate plan, please call Ascent Law LLC 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

Source: https://www.ascentlawfirm.com/how-do-i-set-up-an-estate-plan/

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Friday, March 6, 2020

What Is Legal Separation?

What Is Legal Separation?

A legal separation is a written court order (or an agreement that has been converted into a court order of legal separation) that is filed with the court which addresses the rights and responsibilities of a married couple while they are living apart. Issues that can be addressed in a separation agreement include division of assets and debts, child custody and support, visitation schedules, alimony, etc.. In many ways, getting a legal separation is much like getting a divorce. So why would someone go through the separation process instead of getting a divorce? Some of the advantages of legally separating include:

• Being able to retain your marital status for religious reasons.
• Allowing a couple some times to live apart and see if divorce is actually what they want. As compared to an informal trial separation, a separation agreement establishes how everything will be handled while the couple is apart.
• Being able to continue insurance benefits on your spouse’s coverage. If you are considering getting a separation to retain coverage, be sure to check the policy to see if it addresses what happens if a couple legally separates.
• Retaining certain military benefits.
• Continuing to remain married in order to meet the ten year requirement to qualify for certain social security benefits of a spouse.
• Protecting your financial interests while apart, as assets and debts acquired during a legally recognized separation may be considered separate property. This can be important in states that require a period of separation before a divorce is granted.
• Possible tax benefits by continuing to file taxes jointly.
• If the couple does decide that getting a divorce is the best decision, the separation agreement can be converted to a divorce agreement.
While a legal separation can protect you before getting a divorce, it can also set precedence for the actual divorce. If your divorce case were to go to court, a judge would assume that if you were fine with the arrangements of the separation agreement, then there is no basis to make any big changes with the divorce. Therefore, you should treat the separation agreement the same way you would a divorce, and don’t agree to anything that you can’t live with. This is why it is so important to have your lawyer look over the agreement and discuss the implications of it with you.

Divorce has a heaviness to it that can be intimidating to some people who are unhappy with the condition of their marriage. To completely and permanently end a marriage (and any benefits the marriage may afford) causes many couples to hesitate, even if they no longer want to be together. If you are finding yourself in this situation, you should know that there is a “comfortable in-between” called legal separation. In Utah, legal separation is a legal action that enacts certain elements of a divorce, but does not end the marriage. This can be a benefit for couples who rely on some of the benefits of being legally married. Some people enjoy tax cuts for being married, others rely on their spouse for health insurance, and others may need to be married to stay in the country.

A divorce would have removed all of that and more, but a legal separation does not. Another benefit of legal separation is that it can give a couple room to decide. Sometimes couples just need space and time apart before they can work on the health of their marriage or decide to move forward with a full divorce. Just as legal separation looks like marriage in some ways, it also takes on aspects of a full divorce and should be approached just as you would with a divorce. In particular, you and your spouse not ex-spouse since you haven’t divorced, remember will need to make decisions and come to agreements on many important aspects of your day-to-day lives, just as if you were divorcing. To ensure that your interests are protected, both spouses should seek out legal representation by a divorce attorney.
Legally separated couples will need to consider:

• Parenting plans
• Child support
• Property division
• Spousal support (alimony)
It is within this process that legal separation can become complicated, as if it was a complete divorce. Legal separation involves many of the same technical and legal aspects as divorce – it is not a quick or easy solution, but one that may provide some couples with the best of both worlds (married and divorced). Before committing to legal separation, it’s best to know the advantages and disadvantages of the arrangement. Many married couples view legal separation as a step before divorce, a sort of mediating time that can help them decide whether divorce or reconciliation is the best decision for their relationship. Depending on your situation, filing for legal separation may not make sense, while for others; it’s a better option than divorce.

Disadvantages of Legal Separation

Because of the nature of legal separation, we’ll start with its disadvantages. The three main disadvantages of legal separation include:
• Legal separations are just as complex as divorces
• Legal separations cause just as much stress as divorces
• Legal separations may be unnecessary for your relationship
Though these are all related, each disadvantage touches on a specific aspect of your marriage and pending separation. Here’s how they work.
• Legal separations are just as complex as divorces: A legal separation often requires just as much time, paperwork and legal counsel to complete as a divorce. Like divorces, legal separations involve division of property, including debts and assets. Couples who file for legal separation must go through the same process of division as those getting divorced. That means that for those couples who end up divorcing after the separation, they must go through the process twice. And those who reconcile end up feeling like they already endured the divorce process. Additionally, legal separations involve litigation and trial proceedings just as divorces do. If you and your spouse can’t agree on issues about child support, custody and division of assets, then you’ll be forced to finalize the issues in court. This can be just as taxing as divorce litigation.

Consider this: because of the cost and time involved in a legal separation, couples can usually forgo the hassle by doing an informal separation, or if they feel reconciliation is not an option, moving straight to filing for divorce.

• Legal separations cause just as much stress as divorces: A legal separation may seem like a good test to see if a couple should stay married or divorced, but in reality, it’s a test that many couples fail not because of the relationship itself, but because of the stress involved in the separation process. Because legal separation is just as complicated as divorce, the stress cause by the proceedings could be the final straw for a couple, placing an extra burden on an otherwise delicate relationship. If you’re viewing legal separation as a way to determine the outcome of your relationship, try using an informal separation instead. It’ll give you the same amount of space without the extra hassle of filing for separation.
• Legal separations may be unnecessary for your relationship: Many couples who first ask about legal separation think that it’s a necessary part of figuring out the direction of their marriage. They may think that the formal structure of the separation is like that of a divorce, but without the final dissolution of marriage. Unfortunately, this is often not the case. By employing an informal separation, couples can achieve many of the same goals giving each other more space and deciding if being apart is ultimately the best decision without the cost and commitment of a legal separation. A legal separation may seem like the only way to decide the future of your marriage, but handling the separation informally, even if at first, can be a better way to quickly gauge the status of your marriage.

Benefits of Legal Separation

Even with the disadvantages, there are still legitimate reasons to seek a legal separation. Couples who would like to avoid divorce because of personal, religious or cultural reasons can become legally separated and still adhere to their personal beliefs. Many couples also use separation as a way to skirt healthcare policies. In most cases, divorced spouses may stay on the other spouse’s healthcare plan for a certain amount of time, usually six months or less. But in the case of legal separation, this can be prolonged, depending on a number of factors. Because separation often involves the same amount of stress, cost and time as a divorce does, it’s not always a viable alternative to divorce. Couples who see reconciliation as a likely result of their separation can put an informal arrangement in place, while couples on the opposite end of the spectrum can look more closely at divorce. But for those couples who believe a legal separation is the next best step in their marriage, a family law attorney can help make the process and transition as smooth as possible.

Having a legal separation agreement is financially beneficial step you can take if you are having marital problems and have decided to separate in a state that recognizes legal separation. Have an attorney draw up the legal separation agreement before both spouses sign it, and it should be smooth sailing from there, if you and your spouse easily come to terms. In states that don’t recognize legal separation, speak with a local family law attorney about your options, if all you want is a legal separation. In some states, it is possible to draw up a separation agreement signed by both spouses that would be legal and binding. In some states, the divorce process must begin before the court will recognize any agreement you and your spouse come to. The bottom line is, you want a legal separation agreement that will protect you during a separation in case your spouse fails to live up to their obligations as outlined in the agreement. You want an agreement that will hold up in court should you have to go to court to have it enforced. Along with the peace of mind, there are financial benefits of a legal separation agreement that will protect you as well.

• Tax Advantage When Paying Spousal Support: If you are paying spousal support, those payments can be claimed as a deduction at tax time if the payments are part of the legal separation agreement. If you are merely separated with no legal agreement, any monies given to your spouse cannot be deducted at tax time.

• You Retain Certain Marital Benefits: A legal separation agreement means retaining certain benefits you held during the marriage. Let’s say you are a spouse who is covered under your spouse’s health insurance plan. With a legal separation agreement, it can be written into the agreement that those benefits continue during the period of separation. There is also the benefit of being able to continue to file income taxes as married instead of single. And, if you’ve been married less than 10 years, you can legally separate but remain married until the 10-year requirement is met. This means being able to take advantage of drawing from your spouse’s social security at age 62.

• Who Pays What Is Clearly Outlined: If you and your spouse own a home, who pays for what will be outlined in the legal separation agreement as well as who will live in the home. When maintaining a home there are issues such as mortgage payments, utilities, lawn care and maintenance that need to be considered. In a legal separation agreement who is responsible for what portion of the upkeep of the home is outlined.

• Clearly Stated Boundaries About Joint Accounts: Most couples have joint checking, savings, and credit accounts. A legal separation agreement would define whether or not both spouses still have access to any joint accounts. It may stipulate that all joint bank accounts be closed and each spouse open accounts in their own names. It may also stipulate which spouses pay what monies on any joint credit accounts held by the couple. All issues pertaining to how money is spent and who is responsible for what is outlined so that both spouses will be protected.

• Boundaries for Debt Incurred During the Separation: Most importantly, a legal separation agreement will protect you from being responsible for any debt your spouse acquires during the period of separation if you live in an equitable distribution state. If you live in a community property state, you don’t get this protection under a legal separation agreement.

Legal separation has many benefits and advantages, including providing parameters for co-parenting, child support, and spousal support while maintaining the status of being married. Legal separation also leaves the door open for reconciling or resuming the marriage. Legal separation, which is a contractually defined and court-honored agreement between a couple that has chosen to live apart but opted to remain legally married, is also often pursued when the parties want to stay married for religious reasons, when they want the advantage of documentation of spousal support payments (for income tax reasons), when they want to maintain various insurance coverages, or when they do not want to wait for the state’s statutory period for termination of marital status.

Legal Separation Lawyer Free Consultation

When you need a legal separation in Utah, please call Ascent Law LLC 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

Source: https://www.ascentlawfirm.com/what-is-legal-separation/

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What Are The Benefits Of A Nonprofit?

What Are The Benefits Of A Nonprofit?

A nonprofit organization can be incorporated or unincorporated. A nonprofit corporation is an organization with a specific not-for-profit mission that uses incorporation as its business structure. On the other hand, a nonprofit that chooses not to incorporate is simply an unincorporated organization.

Nonprofit organizations work for the public good rather than for a profit like private businesses. Non-profits enjoy the benefits of tax-exempt status and the protection of directors, officers, and members from personal liability.

Benefits of a Nonprofit

Because the mission of a nonprofit is to work toward the public good, the organization is eligible for benefits that are not applicable to for-profit organizations.

Nonprofits Get Can Get Tax-Exempt Status

An incorporated or unincorporated nonprofit association can qualify for tax-exempt status if it meets certain conditions. The federal government offers a variety of different types of tax exemptions for nonprofits. The most popular kind is called a 501(c)(3). Under this code, the nonprofit is exempt from paying federal income taxes and contributions made to the nonprofit are tax-deductible for the donors. To qualify, the nonprofit must engage in religious, charitable, scientific, educational, or literary endeavors for the benefit of the public.

Nonprofits can also apply for tax-exempt status under other tax codes. The possibilities for nonprofit associations include foundations, social welfare organizations, and professional and trade associations. In most states, if a nonprofit qualifies for a federal tax exemption it will also automatically qualified for a state tax exemption.

Get Funding from Private and Public Organizations

Another benefit for a nonprofit is that it is eligible for public and private grants and can receive contributions from individuals. If the nonprofit is a 501(c)(3), the donation is tax deductible for the individual or organization that made the contribution.

Some Nonprofits Have Limited Liability

Like a corporation, an incorporated nonprofit limits personal liability. The directors, officers, and members of a nonprofit corporation receive protection from personal liability for the legal obligations of the nonprofit. For example, if a legal judgment exceeds what the nonprofit can pay, the claimant will not be able to collect the remainder from the organization’s directors, officers, or members.

In certain circumstances, limited liability will not provide protection when a director or officer:
• Personally commits a tort;
• Personally guarantees a loan or business debt that is defaulted on by the nonprofit;
• Co-mingles personal funds with nonprofit funds; or
• Engages in fraudulent or reckless behavior that causes harm.
Under these circumstances, an officer or a director may be held personally liable.

Forming a Nonprofit Corporation

Like a corporation, a nonprofit must file paperwork with the appropriate state agency. Each state’s rules vary, but in general, a corporation must file a document called “articles of incorporation.” A nonprofit must undertake the additional step of applying for tax-exempt status with state and federal governments. After incorporation, the nonprofit must create the corporation’s bylaws, select a board of directors, and hold board meetings. Each state has rules that determine the minimum number of directors allowed and eligibility requirements for the directors.

A nonprofit must follow the guidelines set up for corporations. It must keep corporate records, prepare minutes of meetings, and have a separate bank account. A nonprofit corporation may not distribute profits to its members.

The board of directors will typically make collaborative decisions regarding the operation of the nonprofit organization. The board will define the mission and the policies of the nonprofit, create budgets and oversee finances, and hire an executive director. If the nonprofit has an executive director, the director will carry out the daily functions of the nonprofit under the management of the board. The executive director’s job is also to advise and report information to the board about activities and programs, and to monitor finances.

Dissolving a Nonprofit Corporation In Utah

If the directors of a nonprofit wish to terminate the organization, the nonprofit must pay off all debts and distribute any remaining assets to another tax-exempt nonprofit corporation.

Nonprofit Lawyer Free Consuultation

When you need legal help in Utah with a Nonprofit corporation, or to get tax exempt status with a 501(c)(3) entity, please call Ascent Law LLC 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
<span itemprop=”addressLocality”>West Jordan, Utah
84088 United States
Telephone: (801) 676-5506

Source: https://www.ascentlawfirm.com/what-are-the-benefits-of-a-nonprofit/

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