Author: WB Admin

How to Choose an Estate Administrator?

Posted on by WB Admin

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Monday November 14, 2022.

When your loved one dies, you probably need assistance in settling his/her estate, loans, property, and other affairs. Whether you leave a will or not, some rules and regulations directed by the court need to be followed. Hence, it is essential to find the right person as an administrator that will handle your estate and property issues.

What is an Administrator?

An administrator is a person appointed for a deceased person in case he/she did not already have an executor to follow through with his will. The administrator is usually appointed by the court, or the family can select the person to deal with the will.

What to look for in an Administrator?

It can be very challenging for the family to select the right person that will be dealing with their family matters and the division of property. The following characteristics are considered important to be an administrator.

Objectivity

The person dealing with your family affairs and politics needs to be dynamic and logical. The person should be committed to putting your will into action and should be able to resist persuasion from certain family members.

Location

Many people would not consider this a priority, but your estate administrator being close to you highly affects how the will is put into action. The administrator should be close to you in order to know the local laws and be there in case of any emergencies.

Availability

The administrator should have a flexible schedule and ample time to tend to your affairs. Do not go for an administrator that has a lot of cases on his hands and cannot give your case the time it needs.

Willingness

Before choosing an administrator, make sure you ask them whether they are up for this duty or not. Make sure that they have time and will take full responsibility for your work. Ensuring this helps avoid any misunderstanding in the future.

Punctuality and Other Organizational Skills

The administrator should be there on time for your court meetings and other activities. They should also have promising emotional, communication, and interpersonal skills to deal with family members and the court.

Can I Change a Child Custody Agreement?

Posted on by WB Admin

On behalf of The Law Office of Wickersham and Bowers posted in Family Law on Monday November 14th, 2022.

Your life can change drastically after a divorce. The circumstances under which you are raising your children can vary considerably. Sometimes, the situation requires a change in the parenting time and child custody agreement set by the court.

To simply answer the above question, yes, the child custody agreement can be changed. It can be requested by one parent or by both parents.

You must know that once the court sets the child custody agreement, it legally bounds the parents to follow that agreement. Hence a change in that agreement should be appropriately done through court.

Requirements for Modifying the Agreements

Child custody modification is easy as long as you have solid evidence to support it. Any drastic change in your life, e.g., a long-distance move due to a job, a permanent change in your job timings, any medical condition, or due to the child’s own preference.

But make sure that the change is in the best interest of the children. 

Steps to Follow

The first step is to fill out a request form for a change in order, along with the reason for the change. If you are modifying the existing order, enter the previous case number and attach essential documents like the child custody application form, school grades, letters from the counselor, etc.

File the application form and the documents to the court, along with paying the fees. The fee is usually paid by the parent requesting the application. Once you get a hearing date, mail a copy of that document to the other parent. 

The main objective during the court should be to explain the reason for changing the timings or custody agreement and how it is best for the children.

In Case of Mutual Agreement from Both Parents

In the case of mutual agreement from both parents, the matter can also be settled without going to court. However, doing that can cause misunderstanding in the future in case one parent decides to back off on the agreement.

Hence, it is best to settle this matter through court, where parents can mutually request the change for custody.

Emancipation 101

Posted on by WB Admin

On behalf of The Law Office of Wickersham and Bowers posted in Family Law on Tuesday October 18th, 2022.

Emancipation can generally be defined as an act in which a person usually a slave or a minor is set free from the authority of another person. It can be regarded as the liberation of the bounded individual from the duty to serve and obey their owners or parents.

Emancipation minors who are eligible to be given the same rights as adults. Most states have statutes specifically designed to govern emancipation. As much as the statutes may vary from state to state, most states allow for emancipation under the court’s review. This implies that all states have laws that define when, how, and the circumstances in which a child can be emancipated from their parents.

At What Age Can One Be Emancipated 

There is no fixed age for emancipation. However, some states such as California require that you must be at least 14, to apply for emancipation while in other states such as Mississippi there is no minimum age requirement. However, a minor is normally assumed to have been emancipated when to the age of either 18 or 21, this is dependent on the state.

What Happens If the State Does Not Have Specific Laws That Govern Emancipation? 

The court may act as an arbitrator of emancipation claims if the state does not have particular laws that govern emancipation. One will need a petition to be emancipated under the judicial decree. The petition can be done by either the person seeking emancipation, the guardian of a minor, or an acquaintance. The petition is filed at a county court. It must be accompanied by evidence of the conduct of both the minor or guardian that violates the rights and responsibilities of the guardian to the child and the child to the guardian.

Implicit Vs Explicit Emancipation 

Emancipation can either be thought of as implicit or explicit. Implicit emancipation occurs when one marries, is convicted of a felony, joins the armed forces, reaches the age of majority which is majorly 18 or 21 in most states, or permanently moves away from the parents. Implicit emancipation does not require a court order to be valid. Explicit emancipation cannot occur without a court order from a judge. It involves the liberating entity’s declaration before witnesses and a public officer that they intend to set the bound individual free.

What is Spousal Lifetime Assess Trust

Posted on by WB Admin

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Tuesday October 18, 2022.

The Spousal Lifetime Assess Trust (SLAT) is a common strategy for tax savings that is used by married couples. The spousal lifetime access trust is an irreversible trust that is created by one spouse to benefit another spouse. The donor spouse makes a gift to the SLAT by using their gift tax exemption and then the spouse who will benefit is named as the beneficiary.

The SLAT offers married couples a way to take advantage of the federal lifetime gift and estate tax exclusion whilst keeping restricted access. It is possible for either one spouse to fund the SLAT for another spouse or each spouse may opt to fund the SLAT.

SLAT 101

It is vital to remember that the trust is irrevocable and this means that when contributing spouse transfers assets to the SLAT, they are forever parting with the use of those assets and any income from it.

However, the contributing spouse can only gain benefits from the funds and property given to the trust if the benefactor of the trust is still legally wedded to the donor. This is subject to the terms of the SLAT, the spouse who is to benefit from the SLAT could receive distributions of income from the SLAT, which allows the benefactor spouse together with the donor spouse indirectly, to access the assets if they needed to.

Advantages and disadvantages of SLAT

An advantage of SLAT is that it enables the contributing spouse to donate up to their available exemption amount without gift tax. If the contributing spouse dies, the value of the assets in SLAT will not be subjected to federal estate tax since it is excluded from the contributing spouse’s gross estate because the SLAT is funded with a gift made during the contributing spouse’s lifetime.

The downside to a SLAT is that if the benefactor of the trust dies, then that would mean that the donor of the trust will no longer have indirect access to the SLAT. The donor of the trust will have no choice but to terminate the trust. They can either choose to distribute it or continue it for the donor’s children or perhaps other family members.

Tax Strategies for Charitable Giving

Posted on by WB Admin

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Tuesday September 13, 2022.

It takes much thought and planning to decide where to contribute your hard-earned money. A wise charitable giving plan takes into account your giving style, timing, and content. 

Your giving strategy and the timing of your donations can optimize their impact on your favorite charity while lowering your tax burden. The following two strategies can help reduce your tax burden. 

It’s Not Just Cash

Direct charitable giving may be more advantageous than selling non-cash assets like a mutual fund or stock shares and donating the after-tax proceeds. If you’ve had the assets for more than a year, you’ll receive two important advantages. In most cases, you’ll be able to deduct the full fair market value from your taxes — neither you nor the charity will owe any taxes on the gain. As a result, you will be able to donate up to 20% more to the charity than you would have given if you had sold the asset and donated the after-tax revenues.

You can also acquire more of the same stock after donating any that has dramatically increased in value, thereby “resetting” the cost basis to a more significant sum.

While stock awards can generate a sizable income, they can also have unanticipated tax repercussions after they are exercised or vested. As a clever strategy to lower your tax exposure, think about using vested shares from prior years or other long-term appreciated assets for charitable giving.

Consider a QCD

A qualified charitable distribution, or QCD, is another tactic that can lower your taxable income. These are contributions paid to your preferred charity straight from your IRA. The gift amount isn’t considered as a charitable deduction, but it doesn’t count as taxable income either. It essentially reduces your taxable income by the amount donated to charity, even if you weren’t otherwise itemizing deductions.

If your required minimum distribution (RMD) for the year has not yet been satisfied, QCDs can count toward it. Reducing your taxable income can also be beneficial when figuring out how much Medicare premiums will cost you. Make sure to speak with your accountant first because there are a few rigorous criteria you must follow in order to take advantage of this method.

Invalidating a Prenup

Posted on by WB Admin

On behalf of The Law Office of Wickersham and Bowers posted in Family Law on Tuesday September 13th, 2022.

Prenuptial agreements are typically created with participation from both spouses and can be very advantageous for all parties. Prenuptial agreements can occasionally be made in bad faith, with one spouse solely considering their own interests. 

What is a Prenup?

An engaged couple may enter into a prenuptial agreement or prenup before they get married. The agreement specifies each party’s assets and property. When deciding who receives what assets in the event of a divorce, the couple will consult the prenuptial agreement. 

What Makes a Prenup Invalid?

A court may invalidate the terms of an agreement if it finds that something illegal occurred during the filing or creation of the document.

Here are four reasons a judge may invalidate your prenup:

Failure to disclose assets:  One spouse’s failure to reveal the full extent of their assets prior to signing the prenuptial agreement is a frequent reason why prenuptial agreements are declared illegal. If neither spouse waives their right to review, the other must be informed of all assets and obligations for the disclosure to be deemed valid. The financial details cannot be purposely hidden, such as a prospective spouse transferring assets or giving them as gifts.

Signing without representation: Some states demand that both parties’ legal representatives be present when the agreement is signed. Without a lawyer present at the signing, the agreement can be wholly void unless one party explicitly relinquishes their right to legal counsel.

Coercion: A prenuptial agreement that was signed under duress or under the influence of a future spouse may be void. Threats or physical force used to compel someone to sign a document are referred to as duress and coercion. Duress and coercion include demanding someone sign a prenuptial agreement before they walk down the aisle and denying them the chance to evaluate the terms or obtain independent legal counsel. 

Improperly filed paperwork: A prenup should always be handled by an attorney that is well-versed in the process. A poorly drafted agreement or improperly filed paperwork can be all it takes for a judge to invalidate the document.

Please contact our office today for a consultation if you need help drafting a prenuptial agreement. 

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