Monthly Archives: February 2019

How Bankruptcy can Affect Children

Many people place the interests of their children above their own. As such, it is common to have concerns about how the bankruptcy process will affect your children. Some relevant questions include whether children will lose property, what happens to a child’s bank account, and whether college loans can still be obtained for the child. While it might be surprising to learn, the bankruptcy process can affect your children in a number of ways. The following will review some of the most common ways in which bankruptcy is known to affect children. How Bankruptcy Affects the Child’s Property While items that were given as gifts to a child are still viewed as household property, property that a child purchased will not be classified this way. The risk of losing property arises in Chapter 7 when individuals navigating bankruptcy are allowed to only keep exempt property. In many cases, however, property belonging to a child is often not of interest to bankruptcy trustees unless the items are exceptionally valuable. Child Bank Accounts and Bankruptcy Money that is held in a child’s bank accounts is not considered property for a bankruptcy estate. Neither a bankruptcy trustee nor creditors are able to obtain     Read More

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Common Types of Estate Planning Errors

While there are many advantages offered by estate planning, the process involves a number of complex issues. Rushing through the estate planning process can lead to errors in important documents, which can significantly disrupt a person’s estate. The following reviews some of the most common and serious estate planning errors that people make. It is always best to rely on the skill and experience of an estate planning attorney when putting together your plans for the future. Using Boilerplate Estate Planning Documents Given the prevalence of online estate planning documents, it can be tempting simply download a cookie-cutter estate planning form online. Not all people, however, need the same type of estate plan. Estate planning is a very individualized process. By using a generic estate planning document, you are at risk of leaving important issues unaddressed or having your estate administered in an undesirable way after your passing. Instead, it is a much better idea to obtain the assistance of an experience estate planning lawyer who can make certain that your end of life plans reflect your wishes. Trying to Avoid the Probate Process Sometimes in attempting to avoid probate, people make gifts to loved ones during their lifetime. The     Read More

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Estate Planning After Divorce

Changes in tax law that were passed at the end of 2017 resulted in a large number of people attempting to finalize their divorces before these laws became effective at the beginning of January, 2019. One substantial change is that under these new tax laws, alimony is no longer deductible by the payor and is no longer taxable for the receiver. These changes have had a substantial impact on both sides of alimony payments following a divorce. There are also, however, a number of other changes that people performing estate planning following a divorce should consider. The following reviews some of the most important changes in the law that will impact your estate planning and your divorce. Updating Health Care Power of Attorney A healthcare power of attorney document allows a person to appoint another person to make healthcare decisions for him or her in case of a coma or other incapacity. If you want to avoid having your former spouse make these types of decisions on your behalf, you need to accurately update your estate planning documents to reflect these changes. You should make sure that you still have a power of attorney document, however. In many cases, people     Read More

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Bankruptcy and Divorce

Divorce is almost always an emotionally challenging process. Many people discover that every aspect of their lives are impacted by divorce more than they ever would have anticipated. If you and your former spouse have decided that divorce is your best option, it is likely that your finances will be affected, and sometimes, bankruptcy becomes a necessity for one or both spouses. Navigating bankruptcy can complicate the divorce process, however. The following will review some important things to consider if you have facing both bankruptcy and divorce. Do Not Simultaneously File for Divorce and Bankruptcy It is often best to not proceed through divorce and bankruptcy at the same time. After filing for bankruptcy, an “automatic stay” is placed on a person’s account, which prevents creditor harassment and freezes a person’s assets and property. If the two overlap, an automatic stay will be placed on a person’s assets and will make it impossible for the divorce court to divide assets. While it is often best to not file for both bankruptcy and divorce at the same time, a person should carefully choose which process to navigate first. If a marriage ends and the former spouses are still friendly with one     Read More

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