Berman & Asbel, LLP

January 2016 Archives

Different trusts have different tax rules

Trust mechanisms vary, but experts say that choosing the right structure is essential to mitigating and managing tax obligations. Pennsylvania families that create trusts to give their members financial support or make it easier to plan their estates may find that including specific provisions can also help ensure that these tools serve their intended purpose.

Some advantages of a revocable living trust

People in Pennsylvania who are working on an estate plan may find that a living revocable trust is a useful document to have. A living revocable trust can add additional FDIC protection and can provide greater privacy than a publicly probated will. The details of a trust only become publicly available if someone challenges the document leading to litigation.

Avoiding financial pitfalls in divorce

Divorces can be difficult experiences to undergo for Pennsylvania couples, but they are often necessary in order for people to extricate themselves from situations that aren't right for them. However, doing so in a way that preserves financial stability can sometimes be harder than it seems, and even small mistakes can put unnecessary obstacles in the way. Though this may be concerning to some, there are ways of conducting the divorce that can skirt around these and other pitfalls.

Pennsylvania lottery winners using LLCs and trusts for privacy

Pennsylvanians should be aware of the regulations that apply to using an LLC or Trust to hold lottery earnings. The Powerball drawings are a widely popular topic, but many misconceptions about what winners can actually do with their money remain. The winner of the Powerball does not usually receive the $1.4 billion prize in a single lump sum. However, if the winner insists on a lump sum payment, it will be the much lower figure of $868 million. Once a payment has been made, the winner must also subtract state and income taxes, with the highest federal tax rate being 39.6 percent.

Trust options in Pennsylvania

Today, creating a trust can be a complex endeavor. Instead of assigning one person as the trustee or two people as co-trustees, it may be necessary to have entire groups of people overseeing the execution of an irrevocable trust. For instance, there may be a need to have a trustee protector who determines whether or not a remove or replace a trustee. This person may also be able to move a trust, which could impact its governing law.

Reducing friction between divorced parents

Divorced parents in Pennsylvania often find it difficult to forget about their past disputes and instead focus on what is best for their children. Young children can react badly when their parents split up, and this is particularly true of contentious divorces that can drag on and lead to lingering resentment. While most divorced parents understand that mature attitudes and effective co-parenting strategies are crucial for the emotional health of their children, they sometimes find it very difficult to behave appropriately when the very sight of one another can raise stress levels.

Holiday negotiation strategies for divorcing spouses

The holiday season is often an exciting and joyous time for Pennsylvania families, but it is also a period of unrelenting pressure. Minor squabbles between spouses or children can quickly erupt into major arguments, and divorcing parents trying to keep the atmosphere festive for all concerned must sometimes stifle strongly held views about holiday visitation arrangements. Dealing with such emotionally charged situations can be difficult, but there are steps that help to keep the peace.

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