The Divine Commodity
01/31/2010
“In the beginning the church was a fellowship of men and women centered on the living Christ. Then the church moved to Greece, where it became a philosophy. Then it moved to Rome, where it became an institution. Next, it moved to Europe, where is became a culture. And, finally, it moved to America, where it became an enterprise.” James Twitchell
True?
Vision Ministries Supports efforts in Mexico
01/24/2010
Direction?
We have been asked to assist Project AK-47 in a child rescue project in Mexico.It seems that the drug cartels are now targeting young girls to be kidnapped and eventually trained as assasins. Our first exploratory trip will be in January 2010, more to come.
Q: Should I divide my property into separate shares for my minor children?
A: During the period of time when children are minors, a common trust is often a good planning tool to use. A common trust is simply one cache which holds all of the trust property for the benefit of all minor children.
While property is in a common trust, there are no separate shares for each child. Rather, the trustee is directed to use any or all of the property for the benefit of all of the children on the basis of the individual needs of each child. This is very much as parents use their resources, in whatever quantities, equal or unequal, in raising their children.
There is no requirement that the children receive equal amounts of property while it is in the common trust. Consider a family with three children, 18, 12, and 7. If the trustee is directed to use the common trust property for the benefit of the three minor children on the basis of their respective needs the youngest child may very likely end up receiving a greater portion of the trust property over time than the two older children simply because the youngest is at least 11 years from being independent and able to seek gainful employment.
The oldest child may choose to attend college, which is expensive; but the younger two will have additional needs before they even reach college, and inflation is likely to ensure that their college costs will be significantly higher than those of the oldest child.
–Kurt V Beasley, Attorney
Q: What is the best possible way to protect my estate for my children and still provide for my spouse while deferring federal estate tax?
A: The best approach is to create a qualified terminable interest property (QTIP) trust in your living trust document.
After you are deceased, all or part of your assets passes to the QTIP trust, and the trust continues for your spouse’s lifetime. Upon your spouse’s death, the remaining trust assets pass to your children according to the terms of your trust.
–Kurt V Beasley, Attorney
Q: If my wife and I die together what can we do to ensure that our minor children will be taken care of?
A: If a catastrophe befalls you and your wife, you want your children cared for, to the extent possible, in the manner in which you would have cared for them.
You can achieve this by naming guardians in your pour-over will and by establishing a trust to manage your estate for your children. It is crucial that you give substantial thought to the selection of guardians and successor guardians who share your values and are willing to love your children and assume the role of raising them. It is equally important that you select trustees to manage your estate for their benefit and that you provide instructions for the financial care of that estate.
If you both die, the court will consider the persons you named as guardians of your children. You should nominate one or more backup guardians to serve in the event the individuals you named are not appointed, since the court will proceed through your list of nominees before considering other parties.
–Kurt V Beasley, Attorney
Q: When will my children be old enough to properly manage their inheritances?
A: The legal age of adulthood and – unless otherwise planned and provided for by the parents – the time at which a child is entitled to receive his or her inheritance is the age set out by state statute. In most states the age is 18 or 19.
Since it is often difficult to know how well a child will manage money at age 18, it may be wise to stretch out an inheritance over a period of years In a revocable living trust, you can provide a trustee with specific directions regarding how and when distributions should be made to your children.
For example, one-third of the inheritance could be distributed to a child at age 21, one-third at 23, and the remainder at age 25. In this way, if the child mishandles the first distribution, he or she has two more chances to learn to manage the money or property responsibly.
–Kurt V Beasley, Attorney
Q: Can I protect my family trust from my spouse’s remarriage?
A: The terms of the trust can provide that on your spouse’s remarriage he or she is removed as a beneficiary of the family trust.
It can also provide that on a subsequent divorce or on the death of the new spouse your spouse can again be taken care of by its terms. The appropriate language would be something like the following:
1. Distribute the income and principal to my surviving spouse and children, depending on who needs it.
2. If my surviving spouse dies or remarries, stop any distributions to my surviving spouse and distribute the income and principal among my children.
3. If my spouse becomes single again, go back to my instructions in number 1 above.
–Kurt V Beasley, Attorney
What is meant by “living probate”?
08/31/2009
Q: What is meant by “living probate”?
A: A living probate is a legal proceeding in the probate court which is designed to protect a mentally disabled person who is unable to manage his or her financial affairs.
It is possible that, prior to your death, you may become mentally disabled due to disease, stroke, or accident.
Legally referred to as a conservatorship or guardianship, a living probate is a legal proceeding in the probate court which is designed to protect a mentally disabled person who is unable to manage his or her financial affairs. It is the duty of the probate court to protect the disabled person’s assets, creditors, and personal rights and to appoint someone to manage and assume the mentally disabled person’s financial affairs.
There are disadvantages to a living probate:
• It creates expenses. Inasmuch as it is a court proceeding, a living probate often requires the services of an attorney who will prepare the necessary court documents and make court appearances. The court may require the filing of inventories and accountings, along with periodic reports, which may necessitate the hiring of an accountant. The conservator or guardian may be required to post a bond in order to qualify for service before the court. He or she may be also required to make periodic reports to the court during the period of disability and will often utilize the services of attorneys and accountants, as well as other professionals, throughout that entire period. All these factors are very expensive to the estate.
• Just like a death probate, a living probate is a public proceeding which may result in a substantial invasion of privacy and loss of personal dignity.
• A living probate often involves two attorneys, one representing the family and one attorney that is appointed by the Court to represent the person. Recently we witnessed in Court the appointment of a husband for his disabled wife. They had not planned for this untimely and difficult process. There were two attorneys involved who were required to insure that the husband was the proper person to care for his wife. There were no complications, but the husband was forced to stand in open court, expend precious monetary resources and go through this process. The husband was appointed as conservator for his wife, but the process will not stop for years to come. The husband will be required, no matter the size of the estate, to report to the Court all of the financial activity incurred on behalf of his wife on an annual basis. More cost, more unneeded oversight and more intrusion.
–Kurt V Beasley, Attorney
Q: Are assets held in a living trust protected from creditors’ claims?
A: Generally speaking, when assets are held in a revocable trust, they are not protected from the legitimate claims of the trust maker’s creditors.
This is because the maker can revoke the trust and take back the trust property at any time. The law finds that it is inequitable to allow the trust maker to have this control and full use and benefit from the trust property while denying creditors the power to compel revocation in order to satisfy their just claims.
An irrevocable trust may provide some creditor protection because the maker is not able to revoke the trust and get the property back. The maker may have a beneficial interest in the trust, such as a right to income or to principal, and that interest may be reached by the maker’s creditors.
However, if the beneficial interest is subject to the discretion of the trustee and the maker is not the sole trustee, creditors can be thwarted. Since the contribution of property to an irrevocable trust is a completed gift, the property generally is outside the reach of the maker as well as his or her creditors.
What is a living will?
08/21/2009
Q: What is a living will?
A: A living will, or advanced medical directive, is a legal document which directs your physician to discontinue life-sustaining procedures if you are in a terminal condition or a permanently unconscious state.
It is considered a final expression of your right to refuse medical treatment which should be followed by your physician. Many people execute living wills so that family members or other loved ones are not put in the position of having to decide whether to terminate or continue life-sustaining treatment when there is no hope of recovery.
The living will is now recognized in virtually all fifty states. Most states have very detailed laws setting forth the language that must be included in order for the document to be valid. As each state has different laws, it is a good idea to check with an attorney in your state to get more information on your state’s requirements.
–Kurt V Beasley, Attorney
