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Klenk Law

Tag: Irrevocable Trust

Can my future son-in-law claim my daughter’s inheritance if no prenup is signed?

Posted on Wed Oct 21, 2015, on Estate Planning

From our “Ask a Question” mailbag: What if my future son-in-law refuses to sign a prenuptial agreement? Can he claim a share of what I leave my daughter?

If your daughter marries her fiancé without a prenuptial agreement, and commingles with her husband’s assets what she inherits from you, then—in a divorce—she may lose a share or all of her inheritance. Further, if she dies after receiving the inheritance, she may give all of her inheritance to her husband who is free to then leave those assets as he sees fit at his death.

How do I protect my dad from criminal telemarketers in Atlantic County?

Posted on Tue Oct 20, 2015, on Elder Financial Scams

From our “Ask a Question” mailbag: My father has reached the age where he has become trusting to a fault. He was called by an unscrupulous telemarketer and fleeced out of several thousand dollars. I am worried that his number will now be passed around to other criminals and he will write more checks. How do I protect my dad from criminal telemarketers?

Your suspicions are right—once your dad’s recognized as a potential “mark” among the criminal community, he could become a target for scammers who pretend to be calling him on your behalf, asking for payments toward funeral expenses, emergency medical bills, or sweepstakes prize processing fees. According to the FBI, your father likely shares traits that were common among his generation — raised to be polite and trusting, and often reluctant to hang up the phone even if they suspect a scam.

Which kind of trust is the best to avoid probate in New Jersey?

Posted on Sun Oct 18, 2015, on Trusts

From our “Ask a Question” mailbag: There seem to be many different types of trusts. Which one is the best to avoid probate?

Trusts are very flexible estate planning tools. They can be used to avoid creditors, shelter assets from divorce, reduce taxes, and to avoid probate. To avoid probate in New Jersey, you could use a Revocable Living Trust or you could use any number of different Irrevocable Trusts.

How do I protect my collection of Curt Schilling memorabilia from my new wife?

Posted on Fri Oct 16, 2015, on Trusts

From our “Ask a Question” mailbag: I have a collection of Curt Schilling memorabilia that I have been gathering since he started pitching for the Phillies in 1992. It is worth some money, but is mostly something that my son and I have shared together and is near to our hearts. I am remarrying soon and I am worried that — should I die — this collection will become a problem between my wife and my son. I would give the collection to my son now, but he has no place to keep it yet. Any suggestions?

You are right to worry about the impact a second marriage can have on the children from your first marriage. No matter how well they get along, after you die there are going to be opportunities for conflict between your second wife and your children.

Philadelphia Revocable vs. Irrevocable Trusts – What You Need to Know

Posted on Fri Sep 11, 2015, on Trusts

From our “Ask a Question” mailbag: I am worried about having someone sue me in the future and would like to shelter my assets from creditors. I have read about Irrevocable Trusts and Revocable Trusts, do they both help avoid creditors and lawsuits?

A Revocable Living Trust is a wonderful tool with many uses, but it does nothing to help you avoid your creditors. Because a Revocable Living Trust is “Revocable.” That means you can take the assets back into your name at any time. Because you can take the assets back, any future creditor you have or any future lawsuit judgement against you can be enforced against the trust.

What is a Spendthrift Trust in Gloucester County, New Jersey?

Posted on Mon Sep 7, 2015, on Trusts

From our “Ask a Question” mailbag: I was told that I should make the Irrevocable Trusts I am setting up for my children “Spendthrift” Trusts. What does that mean, and what is the advantage of a Spendthrift Trust?

A Spendthrift Trust refers to an Irrevocable Trust created for a beneficiary that does not give the beneficiary the right to assign his or her interest in the trust to a third person, so that the trust assets are not subject to the beneficiary’s liabilities or creditor claims.

Trust Options to Protect Against Future Creditor Claims

Posted on Wed Sep 2, 2015, on Revocable Trusts and Living Trusts

From our “Ask a Question” mailbag: I have been diagnosed with the early stages of Alzheimer’s and need to create a way to have my son assist me as the disease progresses. Can a Revocable Living Trust help my son assist me with my diminished capacity and against any creditors that may arise in the future?

You are wise to start planning now to address your Alzheimer’s. Most people put off this planning, and that rarely ends well.

Creating a Revocable Living Trust that names both you and your son as co-trustees, each able to act independently, is a good system to help prepare for the future.

What good is an Irrevocable Life Insurance Trust for me in New Jersey?

Posted on Fri Aug 14, 2015, on Revocable Trusts and Living Trusts

From our “Ask a Question” mailbag: < strong>My estate is worth about $4,000,000, which includes a $1,000,000 life insurance policy. At my death, my estate passes to my two children. Now that the Federal Estate Tax Exemption is at $5,000,000.00, what good is an Irrevocable Life Insurance Trust for me?

In rough terms, as long as your estate stays under $5,000,000.00 (adjusted for inflation) at your death your estate will not owe any Federal Estate Tax, but you are a resident of Camden County, New Jersey, so you are forgetting about the New Jersey Inheritance Tax and the New Jersey Estate Tax. If your assets pass to your children, the New Jersey Inheritance Tax will be zero, but the New Jersey Estate Tax taxes all assets over $675,000.00.

Do lifetime transfers avoid estate tax in Delaware County, PA?

Posted on Fri May 8, 2015, on Estate Planning

From our “Ask a Question” mailbox: My father wants to transfer a rental property he owns in Delaware County into my name. If he does, will this gift avoid Pennsylvania Inheritance Tax?

As a Delaware County resident, at your father’s death, all assets he leaves you at death (except life insurance) will be subject to the Pennsylvania Inheritance Tax at the 4.5% children’s rate.

The Importance of Periodically Reviewing Your Pennsylvania Estate Plan

Posted on Mon Jan 12, 2015, on Estate Planning

Periodically reviewing your Pennsylvania estate plan is critical. Significant life events including marriages, children and moving can dramatically affect how your assets are distributed. Other issues such as changes in state and federal laws can also affect your intended estate plan. In addition to your plan failing, old and unreviseddocuments can delay probate, and in some cases end up in litigation. These are some of the many reasons reasons to periodically review your estate plan to ensure it still reflects your intentions.

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