Posts Tagged ‘financial planning’

Rise Of The Pre-Nuptial Agreement

November 5th, 2010

Rich husbands and wives will be able to cling onto their fortunes in the event that they divorce after a panel of the country’s most senior judges upheld the validity of pre-nuptial agreements. They have historically not been considered legal in England and Wales.

A pre-nuptial agreement is a contract entered into prior to marriage or civil union and includes provisions for the division of property and spousal support in the event of the breakup of the marriage. It can mean that a partner who has been adulterous or has failed conditions in their guardianship is awarded none of their partner’s assets or money.

While many lawyers welcomed the long-sought clarification on the laws others warned that the judgement could establish a “rich man’s charter” for the protection of wealth of the richer partner. The ruling at the UK’s Supreme Court came after German paper company heiress Katrin Radmacher’s ex-husband failed in his bid to be awarded a greater chunk of her 100 million fortune.

The UK now adheres to the same rules as the US and Europe, where there have been a series of bizarre high profile pre-nupt cases. In 2008 a newspaper investigation discovered that some of the stranger clauses in pre-nuptial agreements included the right to conduct regular drug tests on the spouse with financial penalties if they failed, a $100,000 bonus every time a partner was unfaithful and even a 120 lbs limit on a wife’s weight.

Unsurprisingly Hollywood presents us with the most elaborate agreements. According to reports Catherine Zeta Jones and Michael Douglas have agreed that she would be entitled to $1 million for every year they spend together should they ever divorce.

Whatever your view on these agreements they are set to become much more common after the success of the Radmacher ruling. The Law Commission will issue a report in 2012 detailing a change in the divorce law to encompass pre-nupts.

If you need advice or representation on any aspect of family law, contact Family law solicitor Manchester and Macclesfield solicitors Hague Lambert now.


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Regulators Clamp Down On Incorrect Wills

October 2nd, 2010

Over the last year or so it seems there has been an increase in reports of wills which are not legally binding, and cases where changes in wills are not upheld, as well as there being hundreds of cases where the money or assets left in a will is stolen or under played, meaning the true beneficiaries miss out on money which is legally theirs.

Now the Scottish government are creating new legislation which will offer those making wills more protection, and this has prompted suggestions that the governments in England & Wales should also review their wills legislation to ensure those making wills are more thoroughly protected. As a reaction to this the Legal Services Board of England and Wales (LSB) have decided that they will begin to review the current process.

These problems appear to have arisen as a direct consequence of will writing firms or professionals being used rather than the traditional solicitors, and as solicitors are governed in a way that will writers are not, more mistakes (whether deliberate or accidental) have been made.

Solicitors obviously have a wealth of experience, knowledge and qualifications, but they also have in place a professional indemnity scheme so that any clients are protected.

However if you use another type of will writer this may not be the case, and there are unscrupulous firms who will take advantage of this lack of regulation for either financial or professional gain.

One recent investigation into wills reported cases where the fees for a will were quoted as exceptionally low, but then once the person passes their loved ones must pay higher fees to gain access to the will, meaning they have an unexpected bill at a difficult time. There were also reports of funds being stolen, wills being lost and charities being told they were left mch less money than they actually were.

Scotland’s new regulations are expected to come into force next year, with a full investigation from the LSB expected in England and Wales over the coming months.

Looking for a Manchester will writing service? Hague lambert are a professional friendly team of Manchester family law solicitors who work across the Manchester area and can help with your will.


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The Voluntary Tax That You Don’t Have To Pay

September 9th, 2010

Estate taxes can ambush families. Many unsuspecting, middle-class folks get shot from behind with estate taxes. Knowing the tips and tricks of estate taxes is like giving you a bazooka against the tax man.

The estate tax is often called the “voluntary tax,” because if you plan for it the chances are good you will never pay a dime in estate taxes. The rich don’t lose all their money when a family member dies. Why should your family lose a dime? There is a number of ways you can attack the estate tax problem. Your attack will be progressive, depending upon how large your estate tax is.

Estate planning attorneys and all their books always start by discussing “gifting.” If you have a billion dollar estate you can gift all day long. But, for Mom and Pop American, charity and gifting starts at home. If you’re not in the billion dollar category, then you’re not going to worry much about estate planning.

The first thing you need to do is create a living revocable trust that has estate tax avoidance built into it. Your trust is going to have to have special provisions that let you get twice (2X) as much estate value to your family without paying any estate tax. You can have one trust that divides into two pieces when the first spouse to die actually dies, or you can have two separate trusts with two separate trust documents. If you have the two trust with two documents, then you had better pay attention to what asset value each trust holds. The assets should be roughly equalized between the two trusts. If you are a single person, you can’t do the two trust trick and get the double estate tax value down to your family.

If there is an insurance policy purchased by the trust for the estate, it can easily be taken out using an ILIT (Irrevocable Life Insurance Trust). If a policy was purchased and transferred to the trust, the insured must live for three years before it can be completely and effectively remove from the estate. The value of the deceases life insurance is calculated into the value of the estate, which is why it’s smart to take it out.

Even if you have set up the revocable living trust property, and have removed the life insurance policy from the living trust, you might still see some problems in the amount of money stilled owed through the estate tax. If this is the case, you might benefit from gifting. Many estate planning experts will set up the trust so that you can give away your property yet still maintain full contro over it. By retaining control of the property you also retain the benefits of that property, ie: the income. Limited Liability Companies (LLCs), family limited partnerships, and corporations can all achieve such estate tax benefits from gifting.

Looking for a estates and trusts or living revocable trust forms and information? Learn the 6 mistakes people make in their estate planning.


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Indianapolis Bankruptcy Attorney Corey Scott Provides Solutions For Everyday People

December 31st, 2009

There are many people that are suffering as a result of the current financial condition of the country. Many of these people have been accustomed to be financially secure, yet now they are filled with dread that the economy is causing their ruin. Indianapolis attorney Corey Scott is providing everyday day middle class citizens with options that may help them survive.

Attorneys like Corey Scott are professionally trained to know how to rescue those people that are struggling to survive. Reputable bankruptcy attorneys know the importance of being able to see a light at the end of the tunnel without having to fear that it is an oncoming train. They understand that it is not just the major corporations that are struggling in the current economy.

The trickledown effect causes us all to feel the pain that the financial institutions and the auto manufacturers are crying about. Bankruptcy attorneys are in the business of providing solutions to the everyday Joe, not just sending rescue crews to the sinking titanic’s of the financial industry. Attorneys like Indianapolis bankruptcy attorney Corey Scott are focusing on providing the average Middle American with ways to survive the economic pitfalls.

It is this desire to help everyday people that make attorneys like Corey Scott and others valuable. These attorneys have the background to deal with financial regulations and are familiar with the legal precedents that may affect a particular situation. They evaluate each case separately and deal hands on with the clients to explain to the client what their options are. While they look at preceding cases to help understand the perimeters of the law they do so with the needs of each client as their primary focus.

Bankruptcy is not the only way to get out of a financial problem; there are other methods available as well. These attorneys are versed at all of the options and understand what course of action will work best for each type of case. Reputable bankruptcy attorneys do not just look to process through clients like customers at a deli counter.

There are laws and regulations that can be utilized by the middle-class in order to escape the crushing wave of financial ruin, that many everyday people are becoming victim to. If you are in concern of being overcome by the financial tidal wave that is brewing as a result of the instability of the economy, then you owe it to yourself to consider consulting a reputable bankruptcy attorney, such as bankruptcy attorney Corey Scott.

Indianapolis bankruptcy attorney Corey Scott is providing lifelines to those that feel they are drowning at the deep end of the financial pool. More info on http://www.coreyscottlaw.com


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