Transfer Wealth through Trusts

Sunday, October 4th, 2009

Transferring wealth to the next generation is a very noble goal.  However, you may be hesitant to transfer wealth through a trust because you think that it may be expensive.  But if you think about it thoroughly, you will realize that simply handing it over to your children or grandchildren have a lot of risks, especially if the beneficiaries are still minors. 

Let’s face it - kids may sometimes be impulsive and easily influenced.  So how do you give inheritance to someone who’s not mature enough to handle their own money?  One way is through trusts.  You will have full control because you’ll be the one to establish its terms and conditions.  For example, you can make it restrictive and give the money to the beneficiary only when the right time or reasons come.

Of course you need to do a cost-benefit analysis for this purpose.  It doesn’t make sense for you to create a trust if you intend to fund it with only $500.  It’s not to say that $500 is not a lot of money, but just don’t make the mistake of spending three times as much in setting up a trust if you will only put $500 in it.  It’s best to consult an attorney regarding this concern if you want a sound advice.

Tags: advice, attorney, beneficiary, children, control, grandchildren, inheritance, kids, trust, trusts, wealth
Posted in Family Trust | No Comments »

Estate Planning is for Children Too

Wednesday, September 30th, 2009

Do you know that when your children reach 18 years old, you will no longer be allowed to make medical decisions for them?  Actually, your right to see their medical records or speak to their doctor is no longer compulsory enforced.

Any parent has a fear of hearing that their child was involved in a medical emergency - whether it’s a physical catastrophe or a car accident, they would usually be notified or rushed into action.  However, under the law, your own 18-year old and above children need to name you as a health-care proxy first before you can have anything to say about their medical treatment.

Health-care proxies are documents allowing you to assign another person to make medical decisions for you if you’re unable to do it yourself.  Another document, called the living will, is a statement of medical wishes if you become ill.

Therefore, estate planning is not only for seniors.  Adult children should also have durable power of attorney as well as a health-care proxy too.  Since these are complicated documents, it’s best to speak to your family attorney.  If you don’t have one, just seek advice from any qualified estate planning attorney in your state.

Tags: adult, attorney, children, documents, Estate Planning, health-care proxy, law, living will, medical, parent, seniors, will
Posted in Estate Planning, Wills | No Comments »

Murdoch Family Trust

Saturday, August 8th, 2009

Rupert Murdoch, chairman of News Corp (NWS) has three wives and six children.  In addition, he also has two living sisters, a 100-year old mother, one deceased sister, and a father who passed away in 1952.

His biographer, Michael Wolff, divulged more facts about the Rupert’s family.  He said that Rupert’s first wife is Patricia Murdoch.  She was an intern at his paper but the family disapproved this marriage so it lasted only from 1956-1967.  Then during the recession from 1990-1991, Rupert’s wife was Anna Torv Murdoch and he promised her that he will retire as soon as the company goes out the mess. 

Unfortunately, this didn’t happen because in 1999, the couple was divorced.  Then on the same year, Rupert was married to Wendi Deng, a young executive in News Corp where he had two more children later on.  Everybody could have been happy except that when Rupert was divorced, he left the voting shares of his News Corp to a trust controlled by four of his children - called the Murdoch Family Trust.  In addition, he agreed to Anna’s stipulation in the trust that no new children should be admitted to this trust.

But Wendi can’t accept this arrangement and so a new one has to be created.  Suddenly, the kids of Wendi are now allowed into Murdoch Family Trust (without voting participation).  Rupert also paid $150 million to each of his first four children.  

Tags: Anna Torv Murdoch, chairman, children, Michael Wolff, Murdoch Family Trust, NWS, Patricia Murdoch, Rupert Murdoch, trust, Wendi Deng
Posted in Family Trust | No Comments »

Trust for Special Needs

Friday, June 26th, 2009

When children have special needs, the parents would most likely worry about their future.  After, they’re gone, they are wondering who will take care of the needs of these children.

So if you’re a parent with this concern, you might consider “special needs trust.”  This is a trust used for disabled children.  It’s designed so that a child can receive government aid and still receive the benefits or inheritance from their parents.  The extra money can be used to enhance their self esteem and improve the quality of their life.  These items may include salon services, appliances clothing, automobiles, and computers.  However, it cannot be used for cash, food, or rent.

Wait-and-See Approach Trust and Omnibus Budget Reconciliation Act (OBRA) Trust are widely used.  Wait-and See Approach is used for high functioning child that may need government aid later while the OBRA is used when a child with special needs receives money from a lawsuit award or inheritance before trust is established.

Setting up a special needs trust may cost a little more, but remember that it’s a one-time setup cost.  You can have quick access to privacy and funds as well as avoid estate taxes.

Tags: children, OBRA, special needs, special needs trust, Wait-an-See Approach
Posted in Family Trust | No Comments »

Lawyers Advise to Teens: One Prank may Ruin You

Wednesday, June 17th, 2009

Attorneys from Public Defender’s Office gave lectures to junior-high and high-school pupils during the year regarding the differentiation of pranks and criminal acts.  “We are responsible for disseminating the information, and the children should be the one responsible for their choices,” shared Esther Goldfield, Katzir B junior high’s educational consultant in Rehovot.

In 2007, police figures show that around 10% of all caught felons were minors - almost 14,000 teenagers and children.  Moreover, there were 33,000 files of teenagers for property offenses and violence.

“When you walk with a knife inside your pocket, it might give you security so when other children want to assault or hurt you, you’ll just take it out in response.  However, you have to know that possessing the knife is already breaking the law and may give you five years in prison,” said attorney Gil Edelman.

Another example is taking a cell phone that belongs to another pupil.  “When you use force without the permission of the owner, then it’s a qualified theft according to the law.  And if you demand money for the return of the phone, it will be considered as extortion by threat,” he added.

The lecture program has assumed that most teenagers are not too familiar with the law.  They may not realize that a simple prank joke can become a criminal act.

Tags: attorney, attorneys, children, Criminal, criminal acts, Esther Goldfield, felons, Gil Edelman, Katzir B, minors, pranks, Public Defender's Office, Rehovot
Posted in Criminal, Criminal News | No Comments »