A Registered Agent (аlѕо known аѕ a Resident Agеnt, Stаtutоrу Agеnt, or Agent fоr Service of Process) iѕ a соmраnу оr individuаl appointed tо rесеivе Service оf Prосеѕѕ (SOP) аnd оthеr imроrtаnt communication оn bеhаlf оf a company. A Rеgiѕtеrеd Agent muѕt have a physical оffiсе аddrеѕѕ, оftеn rеfеrrеd to as a Registered Office, in the ѕtаtе.
As a Utah business lawyer, we can help your business by serving as your registered agent.
Rеgiѕtеrеd Agеnt Service in Utah
Utаh State lаw rеԛuirеѕ every fоrmаl buѕinеѕѕ entity in Utаh (LLCѕ, соrроrоаtiоnѕ, LPѕ, LLPѕ, еtс.) tо арроint аnd maintain a rеgiѕtеrеd agent. Utаh rеgiѕtеrеd аgеntѕ ассерt ѕеrviсе оf рrосеѕѕ on behalf of thе buѕinеѕѕ tо they rерrеѕеnt as agent. In lау tеrmѕ, thаt means Utah registered аgеntѕ rесеivе nоtiсе of a lаwѕuit whеn a buѕinеѕѕ еntitу like аn LLC оr corporation iѕ ѕuеd. Whilе thiѕ iѕ their primary рurроѕе, it’ѕ not a Utah rеgiѕtеrеd agent’s оnlу dutу. Rеgiѕtеrеd agents in Utаh аlѕо rесеivе аnnuаl rероrtѕ, tаx nоtifiсаtiоnѕ, and other imроrtаnt mail from thе ѕtаtе.
Rеԛuirеmеntѕ
Utah rеgiѕtеrеd agents’ statutory duties аrе lаid оut in thе state’s Mоdеl Rеgiѕtеrеd Agеnt Aсt. Thе асt ѕtiрulаtеѕ that in order tо be a rеgiѕtеrеd agent, аn individuаl оr соmраnу muѕt:
Hаvе аn асtuаl ѕtrееt аddrеѕѕ or rurаl route box number in Utаh whеrе service оf рrосеѕѕ can bе physically dеlivеrеd. P.O. boxes оr virtuаl оffiсеѕ аrе not ассерtаblе. Sоmеоnе muѕt sign fоr аnd ассерt thе service оf рrосеѕѕ.
Keep thе еntitу’ѕ current information оn filе with thе Utah Diviѕiоn оf Corporations аnd Cоmmеrсiаl Cоdе.
Bе аblе to rесеivе ѕеrviсе оf any process, nоtiсе, or dеmаnd rеԛuirеd оr реrmittеd by lаw to be served on thе entity (during normal buѕinеѕѕ hours).
Fоrwаrd any ѕеrviсе оf process ассерtеd оn thе bеhаlf оf a Utаh еntitу to thаt еntitу.
Althоugh not liѕtеd specifically in thе Aсt, thе rеgiѕtеrеd аgеnt iѕ аlѕо uѕuаllу еxресtеd tо forward аnnuаl rероrtѕ to thе entity, as well as any other оffiсiаl nоtiсе оr соmmuniсаtiоn from the ѕtаtе.
All Utah businesses are rеԛuirеd tо designate a registered аgеnt with thе Division оf Cоrроrаtiоnѕ. Enѕurе that уоu gеt рrоmрt nоtiсе frоm a liсеnѕеd аttоrnеу of any legal notice оr lаwѕuit.
Ensure thаt уоur annual fееѕ аrе раid tо thе ѕtаtе оf Utah each year tо mаintаin gооd ѕtаnding
Wе will keep uр оn аnу changes in the law with rеgаrdѕ to аnnuаl filingѕ аnd fееѕ, аnd notify уоu of thоѕе сhаngеѕ whеn we are serving аѕ уоur Rеgiѕtеrеd Agent
Provide additional рrivасу (legal nоtiсеѕ аrе uѕuаllу ѕеrvеd оn uѕ, instead оf uроn you аt your place оf buѕinеѕѕ оr residence)
Mаkе you lеѕѕ аttrасtivе tо a lаwѕuit, аѕ thе Rеgiѕtеrеd Agеnt is рubliс information, and it will bе арраrеnt thаt уоu аrе rерrеѕеntеd by a buѕinеѕѕ attorney аnd likеlу hаvе your lеgаl аffаirѕ in оrdеr
Whу Utah Rеgiѕtеrеd Agеntѕ аrе Imроrtаnt
Your Utаh rеgiѕtеrеd agent will be аrе rеѕроnѕiblе fоr hаndling your mоѕt рrivаtе dосumеntѕ. It’ѕ truе thаt some buѕinеѕѕ оwnеrѕ might соnѕidеr Utаh’ѕ rеgiѕtеrеd agent rеԛuirеmеnt a nuisance. Wе at Registered Agеntѕ Inc. tаkе оur rеѕроnѕibilitу seriously. We ѕtrivе tо mаkе a роtеntiаllу fruѕtrаting rеԛuirеmеnt аn invаluаblе ѕеrviсе.
With еvеrу Rеgiѕtеrеd Agеntѕ Inс. оrdеr in Utаh, each client will receive аmаzing rеgiѕtеrеd аgеnt service in Utah. Thiѕ iѕ why сliеntѕ choose uѕ:
Experience: Thiѕ iѕ whаt wе dо, dау in аnd dау оut. Wе’rе оnе оf thе lаrgеѕt registered agent ѕеrviсе рrоvidеrѕ in Utаh.
Reliability: With a combination оf thоughtful dеѕign аnd solid experience, we have been аblе to еliminаtе еrrоrѕ frоm оur ѕуѕtеmѕ. Yоu can rеѕt assured thаt nоnе оf thе dосumеntѕ оr соmmuniсаtiоn wе accept оn уоur соmраnу’ѕ bеhаlf will be lоѕt.
Speed: Wе ѕсаn уоur lеgаl dосumеntѕ to уоu right аwау from оur Utah registered office. If wе’rе уоur agent in another state, it’ѕ nо different: we’ll scan and upload dосumеntѕ in rеаl-timе frоm our rеgiѕtеrеd оffiсе in thаt state. Wе’rе in every state уоur buѕinеѕѕ needs us to bе.
Free Consultation with a Utah Business Lawyer
If you are here, you probably have a business law issue you need help with, call Ascent Law for your free business law consultation (801) 676-5506. We want to help you.
Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088United States
Telephone: (801) 676-5506
Though you and your spouse have already decided to divorce, translating your reasoning and personal decision to your children can be difficult. I’ve seen as a divorce lawyer, that at any age, it is important to be aware of the way that you handle tough divorce questions, navigate life after divorce, and coach your children can have an impact. Even the most informed and well-intentioned parents can make mistakes or negatively affect a child without knowing it.
Dealing with Tough Questions in Divorce
A recent HBO documentary titled, Don’t Divorce Me! Kids’ Rules for Parents on Divorce, children of divorce articulate the challenges of divorce and offer parents tips on how to best navigate the transition. Here are some tips from kids for divorcing and divorced parents in Salt Lake City, Utah:
“Don’t make me choose.”
“Make traveling from house to house easy.”
“Spend a lot of time with kids and make sure they know it’s not their fault.”
“Don’t put me in the middle.”
“Don’t take your anger out on me.”
“Tell me it’s not my fault.”
“Don’t give too much information at once. It can be difficult to understand. Kids need time.”
While most parents know that children have a difficult time with divorce, they may not know the best way to approach tough questions, deal with a split household, or address the emotional needs of their children. Children usually have a clear idea about how divorce impacts them personally and emotionally. It is important to listen to children and to talk to them about the issues that they are facing at home or at school. Remember that while you are having a tough time, your children are also working to adjust to the transition. Take the time to listen to while you also work to protect your rights and the best interests of the family.
DEALING WITH EX-IN-LAWS DURING THE HOLIDAYS
Holidays can be stressful, especially during divorce negotiations or after a divorce has been finalized. When children are involved, Christmas and other holidays can become even more complicated. If you are facing the holiday season after divorce, there are steps you can take to prevent unwanted and unnecessary stress for you and your family. Here are some tips for divorced or divorcing couples in Salt Lake City, Utah for dealing with ex-in-laws during the holidays:
Custody and holiday visitation. Custody arrangements can be complicated during the holidays and can create stress for you, your ex, as well as your in-laws. Remember that it is important for your children to spend time with you as well as your ex and your in-laws. You do have the right to protect a custody arrangement, but remember to keep your child’s best interests in mind.
Sending Christmas cards. Should you send Christmas cards to ex family members? Is sending cards after a divorce offensive? Remember that you have had relationships with your ex-in-laws for years or even decades. You should do what feels natural to you, without worrying too much about what things “mean.”
Gift giving. Should you purchase gifts for you ex-in-laws? Again, this depends on your relationships. If you have maintained a relationship with your ex’s parents, you should base your continued practice on individual circumstances and what would feel appropriate for you. Either way, you should never feel pressured to give gifts, but if you have maintained a relationship, there is no reason to discontinue the tradition.
Holidays can be stressful, but remember you are not alone. To protect your rights after divorce, you may need an experienced attorney to work out a custody settlement on your behalf. Remember that divorce can be complicated, especially during the holidays.
Free Consultation with Divorce Lawyer
If you have a question about divorce law or if you need to start or defend against a divorce case in Utah call Ascent Law at (801) 676-5506. We will help you.
Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088United States
Telephone: (801) 676-5506
When I decided to ask my Wife to marry me I felt pressure to purchase a ring that – at the time – was way too expensive for me. I wasn’t a bankruptcy lawyer at the time. I loved her – so why wouldn’t I do everything I could to show my love? Right? I had access to credit. The bank reassured me that it would be easy to repay. Well, I was wrong. I made a stupid decision. I went into debt. I went into debt at the wrong time for the wrong reason with little to no income to pay it back. And that ring? Well, it was a really nice ring but my Wife later lost it – twice! (….a great story for another day).
The debt for that ring was hard to pay off. I remember struggling to pay back the debt and feeling like a failure. The harder I worked the more difficult it seemed. My entire paycheck was gone before I even received it! I had no control over my finances because the creditor controlled me.
Feeling ashamed for our debt is a real thing.
Don’t believe me? Check this out:
“Money is also intimately linked with our inner lives. Its presence, or lack thereof, has profound physical, mental and emotional repercussions. Perhaps in more ways than we would like to admit, money has tremendous power over us. … Any of the aforementioned negative emotional responses to debt may be serious enough to require medical or psychological intervention.” from debt.org
National Foundation for Credit Counseling – “[C]onducted a poll asking participants to finish this sentence: “I’d be most embarrassed to admit my…” And respondents made it clear that debt shame in the United States is worse than even diet shame. A whopping 37% of people answered that their credit card debt was the most embarrassing, followed by 30% of respondents admitting they wouldn’t want to fess up to their credit score. Weight made only 12% of people sweat, and came in a distant third place.”
I don’t think anyone is immune to money problems. So I assume that you’ve all had some type of similar situation. Being in debt at the wrong time for the wrong reasons. You may or may not be to blame for the money issues (e.g. medical debt), but you know what it feels like to stay up late at night wondering how you’re going to get out of the situation you’re in.
You know what it feels like to feel there is no way out. You know what it is like to think about your debt hour after hour. You lose sleep over it. You think that people close to you judge. You may ever start to think that you are less of a person because of it.
Now, imagine being in that type of situation and then having a debt collector call you and appear to confirm to you all of the irrational fears mentioned above. You may be told that you are a terrible person. That you did this to yourself. That your family is embarrassed because of you. And for some reason, there are thousands of us who believe these debt collectors! A client recently told me that a debt collector threatened to call the police and have her arrested for not paying a debt! Can you believe that? It happens more than you would think.
It’s been my life’s work and passion to help people realize that no matter what life has thrown their way they shouldn’t feel embarrassed or broken when it comes to debt. I stress over and over to my Clients that they should not despair – there is almost always a way out that doesn’t turn out to be nearly as bad as they might think.
Sometimes the way out is bankruptcy and sometimes it is not. It all depends on the situation. Regardless of whether my clients end up filing for bankruptcy – all of us have the following rights when it comes to harassing debt collectors. To provide some sense of relief, here are some quick basics on the rights you do have:
The Fair Debt Collection Practices Act (FDCPA) is a federal law that can prohibit debt collectors from using practices that may be abusive, unfair or deceptive. In addition to the Federal law, your state should have a consumer protection statute that can also prohibit deceptive practices as well as unfair or unconscionable practices. You should become familiar with both the FDCPA and your state’s consumer protection law(s). A good way of doing so it to schedule a consultation with a local attorney
Make them prove it: If you receive a phone call from a debt collector demanding payment, demand to receive proof of the debt. Simply paying out of fear can be costly. You may be waiving your statute of limitations defense or paying a debt that doesn’t belong to you! A jury recently awarded a Kansas City woman $83 million against a debt collector suing for wrongfully suing her for a $1,000 credit card bill that wasn’t hers.
Phone Call Limit: I don’t believe any Court has ruled on a specific number of calls per day that would be prohibited. A court would likely look into the situation on a case-by-case basis to determine if the debt collector’s calls were harassing. In general, the FDCPA prohibits debt collectors from calling you with excessive frequency. This would include repeated calls or continuous calls so as to be annoying, harassing or abusive. Obviously, if a debt collector calls with a series of calls one after another this would be prohibited
Contacting you at work: The FDCPA allows a debt collector to call you at work unless the debt collector knows – or has reason to know – that you or your employer prohibit such contact. Simply telling the debt collector to stop calling you at work should do the trick. However, if you can get the request in writing you would be better off
Calling your cell phone: The FDCPA can prohibit debt collectors from calling your cell phone in certain situations. For example, a debt collector cannot call you at an inappropriate time. If you inform the debt collector that the call was made to your cell phone while you are at work this is an inappropriate time. Another federal law, the Telephone Consumer Protection Act can also prohibit certain debt collector contact to your cell phone
There are recent attempts to fix the wrongs committed by debt collectors. Debt collection practices are so horrible that the “U.S. Consumer Financial Protection Bureau has proposed new rules for the debt collection industry that include limiting collectors’ communication with debtors.”
Law changes can take time. So, until the laws tighten up on debt collectors use these tools and stop shaming yourself. There is a way out. And the way out will be easier than you think. Don’t let your debt define and control you.
Free Consultation with a Bankruptcy Lawyer
If you have a bankruptcy question, or need to file a bankruptcy case, call Ascent Law now at (801) 676-5506. Attorneys in our office have filed over a thousand cases. We can help you now. Come in or call in for your free initial consultation.
Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088United States
Telephone: (801) 676-5506
As kids, many of us may have imagined one day having our own money bin full of money like Scrooge from A Christmas Carol. We want it protected from the outside world and free to dive into. As adults, we’ve realized this would be an unsafe to have a big pile of cash laying around. It’s not a good way to protect and store the wealth we’ve earned. But with so many financial options out there, where do we even start? One of your options is setting up a trust or series of trusts. While it’s no giant money bin, a trust can be an effective method of preserving your wealth for your future and for generations to come.
Definition of a Trust
What is a trust fund and how does it work? A trust is “a legal entity that holds property for the benefit of another person, group, or organization,” according to The Balance. The word “fund” in the term “trust fund” refers to a sum of money held by or made available to the trust. Regardless of type or provisions, all trusts have three things: a grantor, a beneficiary, and a trustee. Because I’m an estate planning lawyer, I tell my clients that The grantor is the person who sets up the trust, giving the trust its property and deciding the terms. The beneficiary is the intended manager of the assets in the trust. They can only access the trust as set out by the grantor. The trustee is responsible for overseeing the management of the trust. It can be an individual, institution, or group of advisors.
To be upfront with you, this organization does establish all of the different types of trusts mentioned here. If this is what you need, there is a number and a form on this page to get some extra help or to move forward on getting the right kind of trust established.
Types
There are several types of trusts designed to fit the individual needs of the grantor and beneficiary. CNN says that there are two basic kinds of trusts: living and testamentary. A living trust is set up during a person’s lifetime, and takes effect during it. A testamentary trust only goes into effect after the person’s death. Beyond these qualifications, trust types break down into revocable and irrevocable. A revocable trust allows the grantor to retain control of all assets in the trust, allowing the ability to revoke or change the terms of the trust at any time. Irrevocable trusts, however, are no longer held directly by the grantor. Changes to an irrevocable trust usually can’t be made without the beneficiary’s consent. A big benefit is that appreciated assets within the trust aren’t typically subject to estate taxes. This depends on how it was established.
Once a grantor has chosen his or her trust type, transferred the assets into it, and established the terms, the trust is active.
Managing Your Estate
Everyone has an estate – from millionaires in mansions to a family of four struggling to make ends meet. Your estate encompasses everything you own. Having an estate plan in place means that your assets and property go directly where you want them to after you die. Generally, you have two main options for your estate plan: a living trust and a will. But what’s the difference?
Wills
A willis a written document that indicates how your property will be distributed after your death. It is revocable and can be amended anytime during your lifetime. However, a drawback to a will is that when it’s enacted, everything must go through probate court. A judge must make a ruling before the assets in your estate can get to your friends and loved ones. This is the case whether or not you have a will; your estate still goes through probate. In that case, assets are distributed according to state statutes. Regardless, probate can be a very expensive and time-consuming process. The deceased is not around to fight back, so, in many cases estates are depleted by lawyer fees.
Living Trust
A living trust, on the other hand, provides property and estate management. It not only goes into effect after your death, but can start managing your assets right away. The grantor (the one who set up the trust) is often the initial trustee (who manages the trust) and beneficiary (who receives its benefits). Living trusts are usually revocable and become irrevocable after death. At that time, a successor trustee steps in and new people or entities typically become beneficiaries. Most often the beneficiaries receive trust assets under the terms of the trust. They also avoid extra expenses and the publicity of probate court. The successor trustee that you appoint can be in charge of the trust whenever you want them to. Examples of when this would kick in are upon death or in the case of a mental or physical disability.
Setting up a living trust may be one of the best ways to prepare for your future, and the future of your loved ones. There are several other reasons to set up a trust, including the following:
Caring for minor children – Trusts can specify when the child will have access to the assets
Caring for dependents with special needs – Trusts allow more flexibility than a will in how those heirs can access the inherited property. This is because you can designate dates, amounts, exceptions, etc.
Lowering estate tax – If your estate will be subject to tax, setting up a trust with tax provisions helps avoid some of it
Privacy – Wills become public record after your death, but a trust does not.
Free Initial Consultation with an Estate Planning Lawyer
When you need a probate or estate planning lawyer, call Ascent Law for your free consultation (801) 676-5506. We want to help you.
Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088United States
Telephone: (801) 676-5506
In most child custody cases, children do not spend an equal amount of time with both parents. As a family lawyer, I think this is the unfortunate part of the divorce many families face today, especially small children who often feel they do not spend enough time with mom or dad. Then, parental alienation comes in the picture.
A divorcee may influence his or her child against the other parent causing the child a lot of emotional distress. Attorneys dealing with these types of cases find it difficult as a parent may request having sole custody of the child or the child having little contact with the ex-spouse. While some parents’ irresponsible behavior may have provoked these harsh battles, collaboration between parents and focusing on the best interests of the child can be very helpful when developing a child custody plan.
HOW CAN PARENTAL ALIENATION AFFECT CHILD CUSTODY?
Parents who don’t agree during child custody battles can impact their children in a negative way. According to recent studies, children who have been involved in these battles tend to have more mental and addiction problems. Due to the severe impact parental alienation can have on the children, the court may order a change of custody after they find out that one of the parents is trying to alienate the children.
In some cases, parents can be a bad influence on minor children, therefore, the little contact they may have with them is excused. These cases are generally linked to child abuse, domestic violence, and drug abuse. Parental alienation is quite different. This is when a child rejects a parent with no foundation. In other words, someone is influencing the child negatively against the other parent. Another factor that may contribute to the child’s dislike or rejection of one parent is the family social dynamics.
There are different levels of parental alienation. It all depends on the behavior of both parent and child. A good example of parental alienation is when one parent talks about the other in a disrespectful manner, tries to change child visitation arrangements, says that the child was abandoned by the other parent, and interferes in the child’s relationship with the other divorcee. Family law attorneys know how to effectively navigate these complex cases. They may file a motion for a change of custody based on the magnitude of the alienation.
Get Legal Help
Parents involved in child custody disputes should seek legal assistance and be supportive during this difficult time in their lives. Children as well as divorcees can greatly benefit from mutual cooperation. A family law attorney well versed in child custody matters can explain what your options are and achieve a positive outcome on your behalf. You need someone to help you present to the court your suspicion of parental alienation. Some judges may be ignorant of how parental alienation can impact the child negatively, and your attorney may have to educate them. Your attorney will work along mental health experts who can testify in court and diagnose the problem when necessary.
CAN AN EX GET ALIMONY TO COVER COST OF FREEZING EGGS?
There are many considerations made when calculating alimony in Utah. The court may consider factors such as the earning ability of each spouse, the financial needs of each party and the length of the marriage; but what about the cost of broken dreams? Can a court put a price tag on something like a failure to have children during marriage? And if they could, should an ex-spouse be reimbursed for the lost shot at parenthood?
That is what one lawyer is trying to find out. He is representing a woman who, at the age of 38, does not want to lose her chance at motherhood. With time running out in terms of her biological ability to conceive, she wants to freeze her eggs. As part of her divorce settlement, she is asking her soon-to-be-ex to pay $20,000 to cover the procedure, as well as related expenses.
The lawyer explains that because the couple had unsuccessfully tried in vitro fertilization several times during the marriage, those fertility treatments should be considered a part of the marital lifestyle and maintained even after divorce.
There are likely to be opinions on both sides of the tracks. On one hand, some believe it may make sense to award alimony for eggs, because losing a chance to have a child while married may be seen as a form of sacrifice. On the other hand, there is the worry that putting a price tag on fertility could lead to putting a price tag on other things, such as the price of a face-lift to make up for lost youth during a marriage. Either way, the outcome of this case will likely affect future divorces, as there has been no state case law on the topic thus far.
Free Consultation with Divorce Lawyer
If you have a question about divorce law or if you need help with a family law case in Utah call Ascent Law at (801) 676-5506. We will help you.
Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088United States
Telephone: (801) 676-5506
A home is oftentimes a person’s most valuable and long term asset. That said, in today’s very litigious society it is very important that people protect any exposed assets of value; especially their homes. The Qualified Personal Residence Trust is an excellent strategy to protect your home is to talk to an asset protection lawyer. A QPRT can even extend to secondary residences and vacation homes (depending on certain tax code conditions). In addition to the asset protection properties of the Qualified Personal Residence Trust or QPRT it also has several tax benefits.
What is a QPRT?
A Qualified Personal Residence Trust is a type of irrevocable living trust. It is designed to reduce the amount of gift and estate tax. Oftentimes, one incurs these taxes when transferring an asset to a beneficiary. The asset protection in a Qualified Personal Residence Trust comes into effect partially because it is an irrevocable trust. As a trust of this nature, it can protect the assets therein that it passes down to your beneficiaries. The law sees it as a valid legal method to protect an individual’s assets for their beneficiaries.
How it Protects Assets
It protects those assets, accordingly, from creditors and judgments. The trust’s irrevocable status means that you cannot readily change the conditions of the trust while the trust is in effect. That means once you put an irrevocable trust into effect no one can readily change it. Plus, the parties are not, by and large, legally obligated to comply with order an individual to change it. This helps to ensure that a judge cannot simply order a person to hand those protected assets to creditors. Plus, legal provisions typically forbid the judiciary from ordering a change of the conditions of the trust; for example, making one’s enemies at law the beneficiaries of the trust.
Lifetime Use of Home
With the Qualified Personal Residence Trust (QPRT) homeowners place their homes into the trust. The transferee(s) retain(s) the right to live in that home for a set number of years. During this time when the owner is living in the house he would not be paying rent. He would be responsible for all housing expenses like repairs, real estate taxes, and maintenance fees which is covered by Revenue Procedure 2003-42 [2003-23 IRB 993 section 4 Art. II (B) (2)]. Suppose the owner is alive after that predetermined number of years. In that case, the trust automatically transfers ownership of the home to the owners’ beneficiaries. The trust does this without triggering the estate tax.
Now I know what you may be thinking. “I outlived the trust and now I do not have a house to live in because it belongs to my beneficiaries.” You can easily solve this by placing certain provisions in the trust. One such provision is that the beneficiaries must rent the home out to the original owner of the house.
The attractive part is this. By paying rent after the QPRT has ended, a person is transferring additional assets to their beneficiaries; without having to pay any gift or estate tax. There is nothing stopping the kids from paying the rent money back to Mom and Dad. Plus they can use this money to cover their parent’s expenses. Plus if you decide to sell the house, the trust can use the proceeds to purchase another residence. In addition, it can cover other items for the parents, as the beneficiaries see fit.
5 Qualified Personal Residence Trust Benefits
Asset Protection from Lawsuits
The Qualified Personal Residence Trust offers the benefits of a trust to protect a residence. At the same time, the owner can still live in the house while the trust is in effect. This means while the residence is held within the QPRT it is protected from judgments and creditors. The structure provides this shield for the lifetime of the trust. The owner can also live in the residence during the duration of the QPRT. They are able to maintain control of the residence. This means that the owner can still remodel or update the home. They can proceed without any restrictions from the trust.
Gift Tax Benefits
The protection of the home is not the only benefit of the Qualified Personal Residence Trust. The Qualified Personal Residence Trust’s main advantage is its tax benefits. It provides these to both the property owner and the beneficiaries of the trust. When you transfer a home to the Qualified Personal Residence Trust it counts as a gift but a typical IRS gift tax. Instead, the IRS calculates a modified gift tax. The IRS determines this through their published tables and the amount of time the home stays in the Qualified Personal Residence Trust. They apply this to the value of the home. The predetermined amount of time is agreed upon when creating the QPRT. When this time has passed and the owner is still alive then the trust passes the home on to the beneficiaries. Again, this is free of any gift or estate tax.
So, how does the gift tax apply when the trust passes the house on to the beneficiaries? If the home has appreciated in value since its initial appraisal, the gift tax would be based on the initial value of the home. Incidentally, the IRS determines this using their own calculations – and not on the final value of the home. This would save the beneficiaries a great deal of money. That is because they would have to pay a gift tax on the initial value of the home and not on the appreciated value. What if the home’s value did not increase or stayed the same? In that case, the beneficiaries would not have to pay any gift tax on the home.
Lifetime Use of Home
So now you may be thinking, “After passing my home to my heirs I may still want to live in it.” As mentioned above, the Qualified Personal Residence Trust allows for the original owner to pay rent, at a fair market rate, on the property. This seems like a strange notion but there is a tax benefit. By paying rent, the original homeowner is transferring assets to his beneficiaries without having to pay any sort of gift or estate tax on those assets.
In a QPRT the homeowner is essentially betting that they will live longer than the lifespan of the trust. But what happens if the owner dies before the trust ends? In that case the grantor (the homeowner) of the Qualified Personal Residence Trust, thereby, protects the home from seizure in lawsuits during his/her lifetime. Taxwise, the modified gift tax percentage on the property is placed back into the calculation. In that case, the normal tax laws apply. IRC section 2036(a)(1) governs the return of the property to the deceased homeowner’s estate.
Estate Tax Benefits
Another benefit of the Qualified Personal Residence Trust is that it can enhance the tax benefits if a husband and wife own the home jointly. According to Treasury Regulations section 25.2702-5(c)(2)(iv) a husband and wife can both transfer half their ownership in the home into two separate Qualified Personal Residence Trusts. Each separate QPRT allows the husband and wife owners to live in the residence for a set number of years based on the conditions of each trust. Suppose one of the homeowners die before the QPRT ends. The half that was in the trust is now put into the estate and estate and gift taxes apply.
Ability to Change Residences
So what happens if you want to sell the house that is in the trust and buy a new home? The trustee would simply sell the old home and buy a new one in the name of the existing Qualified Personal Residence Trust. If the new home is worth more than the old one then the trustee would have to pay out of pocket for the difference and would retain ownership of that percentage of the home.
If the new home’s value is less than the old one then Treasury Regulation section 25.2702-5(c)(7) and (8) would go into effect. In this case the excess funds would go back to the Qualified Personal Residence Trust grantor. But this would defeat the purpose of much of the tax benefits. The other option is to place the excess funds into the trust and convert those specific assets into a Grantor Retained Annuity Trust or GRAT, which would provide the trust’s grantor an annuity payment until the Qualified Personal Residence Trust ends.
7 Steps to Use a QPRT
Draft the Trust
The first step in a Qualified Personal Residence Trust is to have a professional write up the irrevocable trust agreement. You and your professional would decide who the trustees and the beneficiaries are. Then you decide how long you would retain the right to live in the residence before it is transferred to the beneficiaries. This initial planning stage is very important because as an irrevocable living trust it is very difficult if not near impossible to change its conditions once it goes into effect.
Place Home in Trust
The second step is to fund the Qualified Personal Residence Trust with your residence. You accomplish this by creating a new deed that transfers the home from the owner’s name to the Qualified Personal Residence Trust’s name. You record this deed in the local county recorder’s office of the property.
Appraise Home
The third step is to have an appraiser performs an appraisal on or near the date you transfer into the Qualified Personal Residence Trust. You do this to get the fair market value of the property to determine the gift tax.
Report to IRS
The fourth step is to report the gift to the IRS. This is done by filling out a Form 709, United States Gift and Generation-Skipping Transfer Tax Return. You complete and file this form with the IRS on April 15th of year you transfer the property into the Qualified Personal Residence Trust.
Reside in the Home
The fifth step is by far the easiest and that is to reside in the home and live your life as usual.
Transfer to Beneficiaries
The sixth step occurs once the predetermined number of years for the Qualified Personal Residence Trust ends. The property is transferred to beneficiaries as detailed in the Qualified Personal Residence Trust. You accomplish by recording a new deed that transfers the residence from the trust’s name to the beneficiary’s names and documenting it in the land records for the property.
Fair Market Rent
The seventh and final step is to pay a fair market rent for the property. That is, if the former owner wants to continue living there. The rent will transfer more assets to the beneficiaries free of gift taxes. Thus, it will reduce the size of the taxable estate.
Free Initial Consultation with a Lawyer
If you are here, chances are you need a lawyer to help you. Call Ascent Law for your free consultation (801) 676-5506. We want to help you.
Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088United States
Telephone: (801) 676-5506
HOW DO JOINT AND SOLE CUSTODY ARRANGEMENTS DIFFER IN UTAH
During the divorce process, many Utah parents wonder how their decision to end their marriage will impact the relationships they have with their children. In order to protect their children’s well-being, parents will either be awarded joint or sole custody once their divorce is finalized. As a Divorce and Custody Lawyer, I’ve seen it all, but I want to help you through this process.
SOLE CUSTODY
In sole custody arrangements, according to the American Bar Association, one parent is responsible for taking care of his or her children the majority of the time. This parent is also responsible for making major decisions about his or her children. However, when sole custody is awarded, the noncustodial parent is almost always given visitation rights. When this occurs, this parent may be able to care for his or her children on overnight visits or during vacation periods.
JOINT CUSTODY
When a joint custody arrangement is awarded, parents may either be given joint legal custody of their children, joint physical custody of their children or both. According to the Utah Courts, parents who have joint legal custody of their children have the authority to make major decisions about them. For example, in these situations, both parents have the right to determine what religion, if any, their children will participate in, where they will go to school and what type of medical care they will receive.
Comparatively, joint physical custody means that the children spend at least 111 nights in the homes of each of their parents every year, states the Utah Courts. In these situations, it is usually best if the divorced parents are able to live near each other.
FACTORS THE COURT CONSIDERS
If parents devise a custody agreement with their ex-spouse and the court determines that it reflects the children’s best interests, this arrangement will be legally granted. However, if parents cannot come to an agreement, the decision of what type of custody will be awarded is left up to the court, states the Utah Courts. When determining what the children’s best interests are, the court will consider a number of different factors. These include some of the following:
Which type of custody will benefit the children’s different emotional, physical and psychological needs
Whether or not both parents participated in raising their children before ending their marriage
The parents ability to work together and make joint decisions about their children
When a child custody determination is left up to the court, parents in Utah may have concerns about how these factors and others will affect their ability to acquire sole or joint custody. If you and your spouse have decided to end your marriage, speak with an attorney to receive legal guidance during this difficult time.
WHAT ARE THE MOST COMMON TYPES OF PATERNITY TESTS?
They have been poked fun on the Maury Povich Show and on Internet memes. But paternity tests are no laughing matter. There are currently countless children and grown adults throughout Utah who do not know the identity of their fathers. It is one of the most serious and common matters in Salt Lake City family law. The consequences can be emotionally and financially severe for everyone involved. Paternity tests not only determine the identity of the father, they can also provide insight into family medical history. By correctly identifying the father, mothers can begin the process of receiving child support and other benefits.
THE PROCESS
During pregnancy, most states require an Acknowledgment of Paternity form to be completed at the hospital. Once the document is signed, the couple has a limited amount of time to complete a DNA paternity test to amend the AOP. If time has expired and the couple has not completed the test, then the person listed on the AOP is legally responsible for the child. Even if the person listed on the AOP is later tested and not found to be the biological father, they are still legally responsible for the child. Many states require unmarried couples to take paternity tests to list a father’s name on a birth certificate.
There are three different types of paternity tests. Each one is to be performed during pregnancy. Testing can be done as soon as the end of the first trimester. The results are kept confidential. Each test poses no health risks to the mother or the developing baby. Depending on the procedure, prices can range from $400 to $2,000.
Amniocentesis:In addition to verifying the father, it is also one of the most effective tests to determine whether the child will be born with downs syndrome. Taken during the second trimester, amniocentesis involves the use of a long needle into the uterus and through the abdomen. The needle is used to remove amniotic fluid, which is to be tested. A doctor’s consent is required to complete the procedure.
Non-Evasive Prenatal Paternity (NIPP):Of all the paternity test, NIPP is considered the most accurate and utilizes state-of-the-art technology of analyzing a baby’s DNA found in the mother’s bloodstream. The test simply requires blood samples from the alleged father and mother. NIPP can be performed at any time after the eighth week of pregnancy.
Chronic Villus Sampling (CVS):One of the advantages of CVS is it can be completed relatively early in the pregnancy. (10-13 weeks) It consists of using long needle or tube to be inserted from the vagina into the cervix. The needle is guided through ultrasound to collect chorionic villi. These pieces of tissue contain the same genetic makeup as the fertilized egg of the fetus.
If you are a single mother, it is extremely important to identify the father of your baby. To learn more on how test results can be used in court, contact a Salt Lake City family law attorney today.
Free Consultation with Child Custody Lawyer
If you have a question about child custody question or if you need help in a divorce, please call Ascent Law at (801) 676-5506. We will help you.
Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088United States
Telephone: (801) 676-5506
