Children

Over the River and Through the Woods . . .

by RobRoy on 10 January 2012 - 11:14am

It is becoming more common these days for families to own vacation homes. Often, these second homes become the center of a lifetime of fond memories for generations. In many cases, the sentimental feelings attached to these vacation homes are more pronounced than the feelings attached to the family’s actual residence. It’s not hard to see why.

In our regular homes, kids do homework, complete chores, get disciplined by parents, etc. But at a vacation home, parents tend to relax, kids make fun memories with aunts, uncles, cousins, and siblings. There are often fun activities and lots of good food that go along with the time spent there.

Over the holidays I had the opportunity to spend a few days with my family at just such a vacation home. It was hard to come back to reality after that weekend, but I so enjoyed watching my kids have the time of their lives with their cousins playing in the snow, wrestling, playing hide and seek, beating their uncles in checkers and more.

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Special Needs Planning Issues Following Divorce

by RobRoy on 7 October 2011 - 11:29am

Divorce can be complicated, frustrating, disappointing, expensive, along with a whole range of other emotions, as anyone who has endured this type of proceeding can attest. As difficult as the issues can be in a divorce proceeding, can you imagine what happens when divorce involves a child with a disability?

We will focus on one case study to illustrate how much more difficult the issues can be when a child with a disability is involved in the marital split, and how important it is to have someone knowledgeable in government benefits and special needs planning issues participate in the proceedings.

The Facts
Consider the following situation: Husband and wife divorce in 1996, when their child, who is disabled, was 4 years old. The husband was ordered to pay approximately $2,800 per month in child support (considered to be about three times an ordinary child support order based upon his assets and income) for the life of the child. While it is unusual to see lifetime child support payments, and the award was larger than is customary, the husband agreed to this primarily because of the guilt he felt around the divorce. He also knew that his daughter was disabled and would require as much help as possible.

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Give Your Kids a Gift They Can't Give Themselves, Part II

by RobRoy on 31 May 2011 - 11:15am

Last week, I explained how using a spendthrift trust can protect the inheritance you leave to your children from divorces, lawsuits, and creditors that your children may encounter in the future.

However, even in those states that do recognize the validity of a spendthrift trust, there is nothing that you can do to prevent a creditor from attaching (getting their hands on) those assets once they've been distributed to the beneficiary (your child). In order to protect such distributions from the reach of creditors, the creation of a discretionary trust is very effective.

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Give Your Kids a Gift They Can't Give Themselves, Part I

by RobRoy on 25 May 2011 - 9:23am

What would you say if I told you that you could give your children a gift that they can never give themselves and that this gift could possibly save your family hundreds of thousands, or even millions, of dollars? Sound too good to be true? It's perfectly legal (see the Utah Uniform Trust Code) and fairly simple with an asset protection trust.

Asset Protection Is Not Just for the Wealthy
Because asset protection is commonly associated with offshore planning, such as forming an asset protection trust in the Cook Islands, you might be thinking, "Asset protection? That's only for the ultra rich or for people involved in tax evasion!" But spendthrift trusts (a form of asset protection trusts) are readily recognized by many states and courts (including Utah) as a valid means of protecting assets for third-party beneficiaries (i.e., your children).

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It's Graduation Time...Make Sure You Avoid This Mistake

by RobRoy on 18 May 2011 - 11:04am

It's hard to believe that another school year is ending already, and for some of you, that means your child is graduating from high school and maybe even going away to college.

It's an exciting time, but did you know that once your child turns 18, you no longer have access to their medical records or their financial information without their permission? Although your graduating senior may always be your baby, in the eyes of the law, he or she is now an adult. And the privacy laws that medical and financial institutions must abide by also apply to your 18-year-old child.

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Careful With That Bank Account, Eugene

by RobRoy on 10 May 2011 - 12:25pm

Financial exploitation of the elderly is increasingly common today. Some estimates put the number of individuals who have had money stolen directly from their bank accounts at around 2 million just last year, with an average of $1,200 stolen per person.

As an elder law attorney, I run into this far more than I'd like to. Unfortunately, more often than not, those who are doing the exploiting are the family members of the elderly - children, grandchildren, siblings, etc. So often, when people are placed into positions of trust, it becomes very easy for those people to justify helping themselves to mom or dad's cash. This problem is far more widespread than most people think. Very recently, actor Mickey Rooney testified before Congress about his own abuse and exploitation by a family member.

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Special Planning for Special Needs, Part II

by RobRoy on 3 May 2011 - 12:13pm

Last week, I introduced you to Special Needs Planning and Special Needs Trusts. This week, I'd like to talk about a very important distinction between the two main types of Special Needs Trusts and why it is critical that you know the difference.

Kinds of Special Needs Trusts

There are basically two types of Special Needs Trusts: 1) "First Party" Special Needs Trusts, and 2) "Third Party" Special Needs Trusts.

A First Party Special Needs Trust (also called a "Self-settled" or "Self-created" Special Needs Trust) is a trust established with assets that belong to the person with disabilities. Typically, these assets come in the form of personal injury settlements or judgments, inheritances, lump sum Social Security payments, or other funds belonging directly to the person with disabilities.

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Special Planning for Special Needs, Part I

by RobRoy on 27 April 2011 - 9:32am

Families who have children with special needs have very little exposure to the legal issues that surround planning for these children. Just as with any type of estate planning, unless we take control and make our own plan that fits our unique family circumstances, the state has its own backup plan for our families. And often, it's not what you would have wanted.

"Who will care for my loved ones when I'm gone?" is something every parent worries about. But for parents of special needs children, this worry can be even more acute.

For families of special needs children, planning for the future involves thinking about a lifetime of care like: where the child will live, if they will have adequate financial resources to support themselves, and who will be involved in their day-to-day care. Answering questions like these requires a comprehensive planning process called Future Care (or Special Needs) Planning.

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Reverse Mortgages: Scam or Godsend?

by RobRoy on 5 April 2011 - 2:08pm

If you've been watching the local TV stations or have been driving down I-15 in Utah County recently, you may have seen ads with local TV personality Dick Norse endorsing a reverse mortgage company. The ads suggest that Dick Norse would trust this company with his family's future, blah, blah, blah. And maybe that's true. I know nothing about this particular company endorsed by Mr. Norse, but I can give you some information on reverse mortgages that can help you cut through some of the myths that surround this industry.

A reverse mortgage is exactly what it sounds like. Instead of you paying money to the bank over time so that you can live in your home while you build up equity in it, a reverse mortgage allows you to continue to live in your home while the bank pays you. What the bank gets in return, is a mortgage on the equity in your home. So when you and your spouse move out of the home (to go to a nursing home for example) or when you both pass away, the proceeds of the sale of your home will be used to pay back the bank for the money they advanced to you while you were living in your home. Generally, if there is any equity left after paying back the loan, it will go to your heirs.

That's the basic concept. However, the bigger question is this: Is a reverse mortgage right for you?

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Man Murders Mother-in-law, Inherits Her Estate

by RobRoy on 11 January 2011 - 1:09pm

 Brandon Palladino, a 23 year-old man from New York murdered his mother-in-law when she discovered him stealing jewelry from her to support his heroin addiction. Although he'll be going to jail for about 25 years, when he gets out, he'll be getting approximately $250,000 (plus 25 years of interest on that money) from his mother-in-law's estate. Shocking? Yes. Wrong? In my opinion, yes. Legal? Yes, again.

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