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.
For families with special needs children, estate planning can be rather complicated. This is because the usual estate planning instruments may not address the unique needs of a special needs child and can even jeopardize their access to government benefits. Here are essential considerations when drafting an estate plan.
Determine who the child’s legal guardian will be in the event that you are incapacitated. You can also express your wishes for the child’s future and let the guardian know what to do if you are unavailable.
Government benefit programs for special needs usually have strict asset limits. This means children who have access to assets above the set limits can be disqualified from accessing critical benefits. A Special Needs Trust (SNT) is a legal arrangement where designated assets for the child are held by a trustee and not directly by the beneficiary. The primary purpose of SNTs is to prevent disqualification from government benefit schemes. As such, the assets under the trust cannot be used to pay for basic needs like food and shelter. However, trustees can use the assets to improve the beneficiary’s quality of life by providing for things like travel, recreation, equipment, and entertainment.
It is not advisable to take a life insurance policy for a special needs child. Means-tested benefits typically look at a beneficiary’s total assets to determine eligibility and would consider the surrender value of the life policy as part of the child’s assets. Instead, consider having the child as a beneficiary in a policy owned by a parent or guardian. Alternatively, name the child’s Special Needs Trust as the owner and beneficiary of the policy.
At O’Brien Law Firm in Southaven, MS, we understand the intricacies involved in legally safeguarding the future of special needs children. Our attorneys are ready to help you through the entire process and ensure your child’s well-being is protected when you are gone. Call us today to book a free consultation with one of our lawyers.
Losing a job is one of the most devastating things that can happen to anyone. Some people are able to find a job within a few months and avoid financial ruin. But what if you remain unemployed for six months or more? Worse still, what if you were already in a financial predicament before you were laid off? In such a case, you may consider filing for bankruptcy to get some relief from your creditors.
Bankruptcy procedures are primarily regulated by the U.S. Bankruptcy Code. However, most states have their laws to supplement the federal code and outline the specific guidelines to follow while filing for bankruptcy. That said, there are two main forms of bankruptcy you can file for:
The type of bankruptcy you will be able to file for when unemployed will depend on your financial situation and how much you are willing to lose. If you have little to no income, it may be much easier to file Chapter 7. However, you stand to lose some of your assets and also take a substantive hit on your credit score.
Chapter 13 has stricter requirements as it requires you to have a regular source of income to honor your repayment plan. However, it allows you to keep most of your assets, and the effect on your credit scores will be relatively minor.
Bankruptcy laws are quite complex, and it may be frustrating to navigate through the complexities while dealing with a personal financial crisis. Fortunately, our attorneys at O’Brien Law Firm in Southaven, MS, are here to help. Talk to us today!
While cohabitation has its own set of joys and challenges, it does not have the same legal protections as marriage. As such, cohabiting couples need to make extra arrangements to protect their assets in case of incapacitation or death. Below are some essential estate planning tips tailored for unmarried couples:
A will is arguably the most important element of estate planning. It typically allows you to specify who gets to inherit your property. Without a will, your state’s intestacy laws may decide for you and most likely won’t give anything to your fiancé. Having a will is especially crucial if you have children with your partner.
Owning property like houses, cars, bank accounts, and businesses jointly is a great way to ensure financial security for both partners in case of a breakup or one partner dies. Ideally, the ownership agreement should have “rights of survivorship,” which means the share of the deceased partner automatically transfers to the surviving partner. This helps prevent drawn-out and expensive estate litigation in case of death.
The second most important document in estate planning after a will is a durable power attorney. This document essentially grants your partner the authority to make decisions on your behalf if you ever become incapacitated. It covers medical decisions, investment decisions, access to bank accounts, and even filing taxes.
While it cannot substitute other estate planning documents, a cohabitation agreement helps to protect both your interests in case of a breakup. It is typically the unmarried couples’ version of a marriage agreement and outlines the rights and responsibilities of each partner in regard to finances and property ownership. Most importantly, a cohabitation agreement can address how debt and other liabilities incurred by each partner will be handled in case of a breakup.
Estate planning is a crucial step for unmarried couples looking to secure their financial security and interests. At O’Brien Law Firm in Southaven, MS, our attorneys are ready to help you throughout the process and ensure that both you and your partner are protected, even in unforeseen circumstances. Schedule a consultation with one of our lawyers today and get started with your estate planning journey.
