When undertaking estate planning, you naturally want your assets to be distributed according to your wishes after your demise. One of the estate planning tools you can use to achieve this is a trust.
Trusts are legal arrangements where the asset holder transfers their assets to a third party called a trustee. The trustee does not take ownership of the assets but manages them on behalf of the designated beneficiaries. The most common types are revocable trusts and irrevocable trusts.
What Are Revocable Trusts?
A revocable trust allows the grantor to retain control over the assets in the trust. In this arrangement, the grantor can add, remove, or modify assets and beneficiaries at will. They may or may not consult the trustees while doing so.
Generally, assets under revocable trusts do not undergo the probate process when the grantor passes away. This saves the beneficiaries time and money. Regarding taxation, revocable trusts are considered part of the trustor’s estate. As such, they have to pay income taxes on the trust’s earnings. Another downside is that they are not shielded from creditors if the grantor has debts.
What Are Irrevocable Trusts?
Irrevocable trusts are a type of trust agreement that can only be modified with beneficiary or court approval. The assets in an irrevocable trust are not considered property of the grantor. Ownership lies with the trust itself, which in turn serves for the benefit of the designated beneficiaries.
Due to their ownership structure, irrevocable trusts are typically used when grantors want to reduce their estate taxes. They also protect the trust’s assets from creditors. Further, the trust’s assets can’t be attached in any lawsuits touching the grantor, as they are not considered the grantor’s property.
Get Informed Advice
Personal goals differ, and the above types of trust can be ideal for different people. Our team of estate planning and probate attorneys can help you determine the right trust for you and assist you in setting it up. Call O’Brien Law Firm in Southaven, MS, today to learn more about our services.
If you are in debt, financial difficulties may exacerbate your debt problems and leave you with no choice but to file for bankruptcy. In the heat of the moment, you may be tempted to file for emergency bankruptcy to get immediate reprieve. While an emergency bankruptcy filing may help, it is often a complex process with demanding requirements.
What Is an Emergency Bankruptcy Filing?
Emergency bankruptcy is a type of bankruptcy that allows for immediate reprieve from debts. It differs from normal bankruptcy filings in that the debtor only has to file the minimum required files to get the court to grant a stay order halting collections from creditors. In normal bankruptcy filings, one has to follow the entire process laid out in law, which can take months.
Requirements for an Emergency Bankruptcy Filing
Although the exact number of documents may vary depending on the specific court, below are the minimum documents you need to present when filing for emergency bankruptcy:
Notably, the above documents will help you get creditors off your back. However, you still need to provide additional documents and information on your finances within the specified period to avoid invalidation of your filing.
Looking for an Experienced Attorney?
At O’Brien Law Firm in Southaven, MS, we can help you file for emergency bankruptcy. Call us today to book a free consultation with our bankruptcy lawyers.
