How Long Does it Take to Receive Inheritance from a Will After Probate is Granted

How Long After Probate Is Granted Does It Take To Receive Inheritance

One common question we often encounter is: ‘how long does it take to receive inheritance from a will?’ The answer largely depends on the probate process. It’s not uncommon for the beneficiaries of a will to become impatient with estates’ executors as the probate process drags on and on. However, the executor may not be moving slowly. She must complete several tasks before she can make the decedent’s bequests to his beneficiaries. If she jumps the gun and distributes bequests too soon, the court holds her personally responsible if she runs out of money to pay the decedent’s taxes and debts. You’ll usually get the grant of probate (or letters of administration) within 8 weeks of sending in your original documents. You should not make any financial plans based on the date you expect to receive it, as it may take longer.

Get access to financial assets

You can ask for financial assets to be transferred to an agreed ‘executorships account’. This can be either:
• an executor’s bank account
• an account that’s been set up only for dealing with the estate
Every executor named on the grant of probate may need to be present when you withdraw assets. Different asset holders have different rules, so check with them first.

Pay debts

As the executor or administrator you must pay off any debts or outstanding payments before distributing the estate. This could include:
• outstanding bills
• tax owed
• benefit overpayments
Place a notice in The Gazette to give creditors the chance to claim anything they’re owed. This will protect you from responsibility for any debts. You can use money from the estate to pay any solicitor’s fees as part of the probate process.

Money in a joint bank account automatically passes to the other owners. You still have to include this money as part of the estate when you work out Inheritance Tax. If the person who died owned the whole of the home with another person (‘joint tenancy’), ownership passes to the other owner. Otherwise, their share goes to the beneficiary named in the will.

Distribute the estate

Once all debts and taxes have been paid, you can distribute the estate as detailed:
• in the will
• by the law if there’s no will
Beneficiaries may have to pay Income Tax if the assets they inherit generate income for them. After this you can prepare the estate accounts. These must be approved and signed by you and the main beneficiaries. Oftentimes, one of the first questions that a beneficiary of an estate or a trust asks is, “When will I get my inheritance?” Unfortunately for the beneficiary, handing out the inheritance cash or checks is the very last thing that the Personal Representative of the estate or Successor Trustee of the trust will do.

The Personal Representative or Successor Trustee has to take the following steps before the estate can be closed or the trust can be terminated:

• Inventory the decedent’s documents and assets. Before a Personal Representative can be appointed by the probate court or a Successor Trustee can take over the administration of a trust, all of the decedent’s estate planning documents and other important papers must be located. The decedent’s estate planning documents may include a Last Will and Testament, funeral, cremation, burial or memorial instructions, and/or a Revocable Living Trust. The decedent’s important papers may include bank and brokerage statements, stock and bond certificates, life insurance policies, corporate records, car and boat titles, and deeds; and information about the decedent’s debts, including utility bills, credit card bills, mortgages, personal loans, medical bills and the funeral bill.
• Get appointed as Personal Representative of the probate estate or accept appointment as Successor Trustee. Once the decedent’s important documents are located, if probate is necessary then a Personal Representative will need to be appointed by the probate court, or if the decedent had a Revocable Living Trust, then the Successor Trustee will need to accept appointment.
• Value the decedent’s assets. Once the Personal Representative or Successor Trustee is in place, then the date of death value of the decedent’s assets will need to be determined. This will be important information for the beneficiaries since capital gains will be calculated using the date of death value versus the value when the inherited property is sold (resulting in a step down or a step up in basis). In addition, the total value of the decedent’s assets reduced by outstanding debt will determine if the estate or trust will be subject to state estate taxes, state inheritance taxes, and/or federal estate taxes.
• Pay the decedent’s final bills and ongoing administration expenses. Once the value of the deceased person’s assets has been established, the Personal Representative or Successor Trustee will need to pay the decedent’s final bills, such as cell phone bills, credit card bills and medical bills, as well as the ongoing expenses of administering the estate or trust, such as storage fees, utilities and attorney’s fees.
• File applicable tax returns and pay applicable taxes. In addition to paying the decedent’s final bills and ongoing administration expenses, the Personal Representative or Successor Trustee will also need file all applicable estate tax returns and/or inheritance tax returns (state and/or federal: IRS Form 706), the decedent’s final income tax return (state and/or federal: IRS Form 1040), and initial and final estate or trust income tax returns (state and/or federal: IRS Form 1041). Of course, any taxes that are due must be paid in a timely manner to avoid interest and penalties.

• Distribute what’s left to the beneficiaries. And so we come to the very last step in the process of settling an estate or trust – write the inheritance checks to the beneficiaries. This is the very last step because if the Personal Representative or Successor Trustee fails to take care of all five of the prior steps and simply gives the beneficiaries their share of the estate or trust, then the Personal Representative or Successor Trustee will be held personally liable for all of the decedent’s unpaid bills, the administrative expenses, and all unpaid taxes.
There is quite a bit involved in settling an estate or trust. But in general, how long does the settlement process take will depend on many factors, including the types of assets the decedent owned, the value of those assets, whether the estate is taxable at the state and/or federal level, how many beneficiaries are involved, whether the beneficiaries get along, and the skills and diligence of the Personal Representative or Successor Trustee. Taking these factors into consideration, a simple estate or trust may be settled within a few months, while a complicated estate or trust may take one or more years to settle. Wills and inheritance Dealing with a Will can be difficult, especially when you’re grieving your family member or friend.
The main purpose of the Will is to:
• appoint one or more people (called executors) to carry out the instructions in the Will and the other tasks involved with administering the person’s estate
• set out instructions about passing on the estate of the person who’s died (any property, money and possessions).
Finding a Will
In most cases the Will should be easy to find, but sometimes it isn’t quite so straightforward. If you already know who the executor is, they may know where to find the Will. For example, it could be in the financial paperwork of the person who’s died, or it might be stored with a solicitor or bank. The executor will have responsibility for administering the estate and will often take a key role in arranging the funeral. If the person who died had a bank account, tell the bank that they have died. The bank will normally allow the executor to immediately pay funeral expenses from the account, providing the account has money in it and the executor can provide a copy of the death certificate and the original funeral invoice. Dying without making or leaving a valid Will is called dying intestate. The estate will still need to be sorted out and the person who takes on this task is called the administrator. Usually this will be the next of kin. If there’s no Will, a person’s estate will be distributed according to rules of intestacy set out in law. The intestacy laws don’t pass anything on to an unmarried partner, stepchildren, friends, charities or other organizations. However, if you were financially dependent on the person who died, you may be able to claim a share of their estate (this may include their home). This could also apply if you were co-dependent with them for example, if you shared household bills. But you’ll need to get advice from a solicitor about this. If a person leaves a Will but the instructions in it don’t cover the whole estate, then intestacy laws will apply to the bit that’s not covered. This situation is called partial intestacy. Partial intestacy can also apply if the Will appoints executors who have already died or don’t wish to take on the role, and an administrator needs to take over.

Receiving an inheritance

You may have been left money, property, investments or other things by the person who died. The inheritance tax on the person’s estate is paid before you get this money or other items. The executor or administrator (the person in charge of distributing the estate of the person who’s died) has to pay off any debts before they can pass over money and items to the people inheriting them. If you’ve been left an asset (e.g. a property) in the Will, but there isn’t enough money in the estate to pay the person’s debts, the item you’re due to inherit may need to be sold. You can get advice from a solicitor on this. Sometimes, when you’ve been left money, the executor or administrator may ask if you’d like to accept some assets instead. It could be jewellery, or some antiques, depending on what’s in the estate. You don’t have to agree to this. You don’t have to accept an inheritance at all if you don’t want to. If you refuse it, the executor or administrator decides who gets it instead. It’s possible to change the Will of a person after they’ve died as long as anyone who’s inheriting and would be made worse off by the changes agrees to it. To do this, you need a deed of variation. This can be complex, so it’s best to get advice from a solicitor. The variation must be made within two years of the death.
All probates open with submission of the will to the court. Generally, the executor named in the decedent’s will takes care of this, and she applies for official appointment at the same time. Depending on your state, court appointment can take anywhere from a few days to a few weeks. Therefore, if you’re trying to gauge when your inheritance might become available, you can reasonably expect that the probate process won’t even begin for about two weeks. Some states, have statutory delays built into the probate process for heirs and beneficiaries to contest the will. A will is not even accepted for probate in Utah until 10 days have passed from the date of death, allowing anyone who wants to object to the will to do so during this time. If your state’s code has such a provision, add at least an additional week, or about a month overall.

Inventory and Valuations

After an executor takes office, she has a period of time in which to prepare an inventory of the decedent’s assets for the court. This includes a list of all his property, as well as values. Values of significant assets, such as real estate, require appraisals, and a professional appraisal can take more than a month to complete. In Utah, an executor’s deadline for accomplishing all this is three months, but she can ask for an extension. Three months is a typical time frame for this step. Therefore, you can expect that probate of the will won’t reach this point until approximately four months have passed. After the oath swearing, the grant of probate usually takes between 3-4 weeks to be received. The remaining probate process usually takes up to 6 months to complete but can easily go past 12 months. The revenue and customs authority can take up to five months to process capital gains tax and the inheritance tax. You should pay inheritance tax to make sure the process takes the shortest time possible to complete. Therefore the probate cost will vary depending on the deceased person’s assets and property value. Generally, as you can see, the higher the value of the asset, the more the probate costs.
A grant of representation is a legal document that an individual should acquire to deal with the deceased person’s estate. This document confirms your legal status and your ability to deal with all things related to the Estate of the person that has died. You should also note that the grant of representation may still be needed irrespective of whether the person that died left a Will. The testator usually appoints the person who should serve as the executor. If the will of the testator doesn’t nominate such a person, it won’t be possible for one party to apply for probate. In such instances, one of the beneficiaries is allowed to apply for legal documents allowing them to act as administrators.
If the deceased’s will (or a later will) is discovered after the grant of probate has already been issued, the original grant can be revoked by a district judge or registrar. On the late discovery of a will the grant can be revoked:
• if a will has been discovered where there was thought to be no will, after the grant of the letters of administration; or
• if a later will is discovered, after the grant of probate.
If a codicil to the deceased’s will is discovered after the grant of probate has been already issued, it can be sent to the Probate Registry on its own (without the need for revoking the grant of probate) providing it does not change the deceased person’s executors. If the codicil does change the executors, the original grant of probate must be revoked.
Other instances where the grant may be revoked include:
• if the grant has been made through a lack of care (this may be referred to as per incuriam); or
• if the name of the deceased as stated on the grant is incorrect.

Consequences of revocation

If the grant is revoked, a new grant of probate should be applied for according to the terms of the new will. If the estate has been distributed already the new personal representatives should seek specialist professional advice on recovering the incorrectly distributed parts of the estate in order to correctly distribute the assets. The recipient of any cash gifts (who would not be entitled to the legacy under the new will) may be liable for the full sum. If the existing grant of probate or letters of administration is revoked, the personal representatives may be concerned about their liability for incorrectly distributing the deceased’s estate. The personal representatives may be protected from liability provided the court is satisfied that they acted in good faith and believed there was no will or the original will was valid at the time of making the distribution. Provided the court is satisfied, the personal representatives may retain or reimburse themselves in respect of any payments and/or dispositions made under the original grant.

Probate Lawyer in Utah Free Consultation

When you need to receive your inheritance, please call Ascent Law LLC for your free consultation (801) 676-5506. We can help you with: Estate Planning. Probates. Intestacy. Will Administration. Trust Administration. Trust Preparation. Trust Accounting. Reading of the Will. Drafting Powers of Attorney. And much more. We want to help you.

 

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506

 

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Is It Illegal To Withdraw Money From A Deceased Person’s Account?

It is illegal to withdraw money from an open account of someone who has died unless you are actually named on the account before you have informed the bank of the death and been granted an order of probate from a court of competent jurisdiction. Typically, when someone dies banks and building societies freeze their accounts until the person dealing with their estate has applied for an official document known as a Grant of Probate. An executor is named in the Will and is the person entitled to apply for probate. If the deceased died leaving no will then the law state that is entitled to apply for probate, known as an administrator. The executor or administrator also called personal representatives takes responsibility for dealing with the estate.

What is the Punishment for Taking Money From a Deceased Account?

The punishment for illegally withdrawing money from a deceased person’s account can vary significantly depending on the specifics of the crime and jurisdiction in question. In general, this action is regarded as theft, and the penalties can include fines, restitution, and potential imprisonment. The severity of these penalties is typically proportional to the amount of money that was taken. If the deceased account was a part of the estate going through probate, this action can complicate the process and potentially delay the rightful distribution of assets to the heirs. Moreover, taking money from a deceased’s account without proper authorization can lead to a charge of fraud, especially if the act was intended to avoid inheritance taxes or debts owed by the deceased. Fraud penalties also often include fines and imprisonment, as well as potential civil lawsuits from other affected parties. In summary, it is crucial to abide by the legal processes associated with deceased individuals’ accounts to avoid such penalties.

This might come as a relief to bereaved families who believe this makes a loved one’s estate easier to deal with, however, this certainly raises numerous issues, a few of which are detailed below:

• The person who presents themselves at the bank with the death certificate may be the personal representative but it is possible they are not the person entitled to benefit from the estate.

• There have been many instances where the person who provides the death certificate to the bank is not the personal representative, nor are they entitled to receive a share in the estate. The personal representatives then have to rely on this individual to pay this sum to the estate so that it can be correctly distributed. This could result in matters becoming contentious if relations between the parties involved are not harmonious.

• When the personal representative files the inheritance tax account they might believe that because the bank has already released the funds without probate that they do not have to be included. The personal representatives are therefore not delivering a true account and potentially not paying the correct inheritance tax.

Contact banks, utility companies and insurers

Now you have the official will, death certificate and grant of probate (or letters of administration if there was no will), you can inform any banks, building societies, utility companies and insurers of the death.

Current and savings accounts

Bank accounts remain open until all the money is retrieved and the account formally closed. However, direct debits and standing orders will be cancelled. Remember, it is illegal to withdraw money from an open account of someone who has died unless you are the other person named on a joint account before you have informed the bank of the death and been granted probate. This is the case even if you need to access some of the money to pay for the funeral.

As the executor, it is down to you withdraw any money and distribute it to the beneficiaries according to the will. A solicitor will be able to help you with the process. If someone died without leaving a will, rules of intestacy apply. There is, of course, the real possibility you do not know the details of all the deceased’s bank accounts or that some details have been lost. In that case, there are online tools that can help you discover lost accounts.

Debts

Debts such as mortgages, loans or credit cards are not passed on to the inheritors, but must be paid off before the remainder of the estate is distributed as per the instructions laid out in the will. If you are unsure of what or how much money is owed, you’ll need to place a notice in the official public record of deceased estates. If you fail to do this and a creditor later comes forward with a claim against the estate, you might personally be liable for the unidentified debt. Two months and one day after the notice is published and provided no other creditors have come forward, you can distribute the remaining estate amongst the beneficiaries. Any debts taken out in a joint name become the sole responsibility of the survivor when one of you dies.

If you own an account in your own name, and don’t designate a payable-on-death beneficiary then the account will probably have to go through probate before the money can be transferred to the people who inherit it. If, however, the total value of your probate assets is small enough to qualify as a small estate under your state’s law, then the people who inherit from you will have simpler, less expensive options. Depending on your state’s law, they may be able to use a simplified probate procedure or simply prepare an affidavit (sworn statement) stating that they are entitled to the money, and present that to the bank. Not all states offer both options
After death, the beneficiary can claim the money by going to the bank with a death certificate and identification. Your beneficiary designation form will be on file at the bank, so the bank will know that it has legal authority to hand over the funds.

Jointly Owned Accounts

If you own an account jointly with someone else, then after one of you dies, in most cases the surviving co-owner will automatically become the account’s sole owner. The account will not need to go through probate before it can be transferred to the survivor.

Accounts With the Right of Survivorship

Most bank accounts that are held in the names of two people carry with them what’s called the right of survivorship. This means that after one co-owner dies, the surviving owner automatically becomes the sole owner of all the funds. Sometimes it’s very clear that the account has the right of survivorship. If your account registration document at the bank simply lists your names, and doesn’t mention joint tenancy or the right of survivorship, it might be a joint tenancy account, but it might not. If you’re in doubt, check with the bank and make sure the right of survivorship is spelled out if that’s what you want. If you and your spouse open a joint bank account together, it’s very unlikely that anyone would argue that the two of you didn’t intend for the survivor to own the funds in the account. But if you have a solely owned account and add someone else as a co-owner, it may not be so clear what you want to happen to the funds in the account after your death.

Some people add another person’s name to an account just for convenience for example, perhaps you want your grown daughter to be able to write check on the account, to help you out when you’re busy, traveling, or not feeling well. or you might want to give a family member easy access to the funds in an account after your death, with the understanding that the money will be used for your funeral expenses or some other purpose you’ve identified.
Legally, however, the person whose name you add to the account will become the outright owner of the funds after your death. Unless there’s something in writing, there’s no way to know or enforce the terms of any understanding the two of you reached about how the money would be used. The new owner is free to spend the money without any restrictions. If other relatives think you had something else in mind, they may be resentful or angry if the surviving owner uses the money for personal purposes instead of paying expenses or sharing the money with other family members.
If you want someone to have access to your funds only so they can use them on your behalf, there are better ways to do it. Consider giving a trusted person power of attorney (this gives them authority during your life), or leave a small bank account and instructions for its use after your death. Don’t make someone a co-owner on an existing account unless you want them to inherit the money without any strings attached.

Bank Accounts Held in Trust

If you’ve set up a living trust to avoid probate proceedings after your death, you can hold a bank account in the name of the trust. After your death, when the person you chose to be your successor trustee takes over, the funds will be transferred to the beneficiary you named in your trust document. No probate will be necessary. To transfer the account to your trust, tell the bank what you want to do. It may have some forms for you to fill out. Then the bank should adjust its records, and your account statements will show that the account is held in trust.

The owners of many bank accounts, especially savings accounts and certificates of deposit (CDs) name payable-on-death (POD) beneficiaries for the accounts. That means that when the account owner (or the last surviving owner, in the case of a joint account) dies, the payable-on-death (POD) beneficiary can simply claim the money from the bank. The deceased person’s will doesn’t come into play, and there’s no need for any probate court involvement, either.

The Executor’s Role

When money is left to a payable-on-death beneficiary, it doesn’t pass under the terms of the deceased person’s will. That means the money is not part of the deceased person’s probate estate, and it isn’t under the control of the executor. So if you’re the executor (or administrator appointed by the court), it’s not really your job to help transfer the funds to the payable-on-death {POD) beneficiary who inherits them.

You may also be the one to notify payable-on-death (POD) beneficiaries that they have in fact entitled to some money. Otherwise, unless the deceased person told them, beneficiaries may not know. You’ll be able to see that there’s a payable-on-death beneficiary when you look at the deceased person’s bank statements; just look for the term payable-on-death in the account name.

How to Claim the Funds

To collect funds in a payable-on-death( POD)bank account, all the beneficiary needs to do is go to the bank and present ID and a certified copy of the death certificate (if the bank doesn’t already have one on file). The bank will have the paperwork, signed by the deceased owner, which authorized the beneficiary to inherit the funds. The beneficiary can withdraw the money or open a new account.

With a time deposit, such as a certificate of deposit (CD), the beneficiary has a few options:

• Leave the funds in the certificate of deposit until its maturation date. This would make sense if the beneficiary doesn’t need the money right now and the interest rate being earned by the money is higher than what’s available in other investments.

• Withdraw the funds. There is usually a penalty for withdrawing money from a certificate of deposit before its maturation date, but when the certificate of deposit is inherited, the new owner generally does not have to pay an early-withdrawal fee.

• Re-title the certificate of deposit in the beneficiary’s name. If the beneficiary wants to transfer the funds into his or her own name, the bank will probably need to rewrite the certificate of deposit at whatever interest rate is currently being offered. So if rates have gone up since the original certificate of deposit was bought, this could make sense.

Potential Complications

Payable-on-death designations are widely used because they’re simple both for the person who sets them up and the beneficiaries who inherit. Sometimes, however, circumstances can make for complications. If there’s a disagreement over who inherits the funds in an account, consult a local attorney who’s knowledgeable about state probate law.

Divorce

If someone names his or her spouse as a payable-on-death beneficiary, and then the couple divorces, the payable-on-death designation may or may not be automatically canceled. Just like the effect on the will, it depends on state law. Any former spouse who wants to claim a payable-on-death account should check the law to make sure the designation is still in effect.

Multiple Beneficiaries

It doesn’t have to be a problem when more than one person is named as a payable-on-death beneficiary of a single account commonly, the beneficiaries simply split the money evenly. Problems arise only if the beneficiaries can’t agree on what to do about money tied up in a certificate of deposit, or if they’ve inherited an asset that isn’t easily divided. As always, compromise offers the best solution both for everyone’s pocketbook and for long-term family relations.

Ineligible Beneficiaries

It’s uncommon, but some state laws still restrict who can be named as a Payable-on-death beneficiary. It’s never a problem to name a natural person, but there may be prohibitions against designating a charity or other organization to inherit in this way.

Contradictory Will Provisions

Almost always, the Payable-on-death designation wins it’s a contract with the bank, and can’t be changed by will. There are exceptions, however. Some states allow people to revoke Payable-on-death designations in their wills if the will specifically identifies the account.

Free Initial Consultation with Probate Lawyer

When you need legal help with an estate, probate or trust administration, please 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
84088 United States
Telephone: (801) 676-5506

 

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Do You Need a Divorce Lawyer?

Divorce is never an easy decision to make, and the legal process that comes with it can be just as daunting. At Ascent Law, we have seen countless clients facing the complexities of divorce and the many questions that arise during this challenging time. One of the most common questions is: “Do you need a divorce lawyer?” In this comprehensive blog post, we will explore this question in-depth, providing you with the information you need to make an informed decision. So, let’s dive in!

Understanding Divorce: The Basics

Before we answer the central question of this post, let’s first understand what divorce is and how it works in Utah. Divorce, also known as the dissolution of marriage, is the legal process that terminates a marriage or marital union. It involves the reorganizing or canceling of the legal duties and responsibilities of marriage, thus dissolving the bonds of matrimony between a married couple under the rule of law. In the state of Utah, the grounds for divorce include irreconcilable differences, adultery, impotency, desertion, and more.

What Does a Divorce Lawyer Do?

A divorce lawyer is a legal professional who specializes in family law, with a focus on issues related to divorce, including property division, child custody, child support, and spousal support. They provide guidance, advice, and representation throughout the divorce process to protect their clients’ rights and interests. Here are some of the primary responsibilities of a divorce lawyer:

1. Client Consultation: A divorce lawyer begins by meeting with clients to discuss their situation, understand their goals, and provide an overview of the divorce process. This initial consultation is an opportunity for the lawyer to assess the case and offer preliminary advice.
2. Gathering Information: The divorce lawyer collects essential information about the client’s assets, debts, income, expenses, and other relevant details. This information helps the lawyer build a strong case and develop a strategy for property division, child custody, and support.
3. Preparing Legal Documents: Divorce lawyers draft and file various legal documents on behalf of their clients. These can include divorce petitions, financial affidavits, property settlement agreements, parenting plans, and more. They ensure that all paperwork is completed accurately and filed within the required deadlines.
4. Negotiating Settlements: One of the primary roles of a divorce lawyer is to negotiate with the opposing party or their legal representative to reach a fair and equitable settlement. This may involve discussions on property division, child custody arrangements, and financial support. The lawyer’s goal is to reach an agreement that is in their client’s best interests while minimizing conflict and delays.
5. Court Representation: If a divorce case goes to trial, the divorce lawyer represents their client in court. They present evidence, argue on their client’s behalf, and question witnesses to protect their client’s rights and interests.
6. Ensuring Compliance: A divorce lawyer also ensures that their client complies with all court orders, such as child support payments, property transfers, and custody arrangements. They can help enforce these orders if the other party fails to comply.
7. Post-Divorce Modifications: In some cases, a divorce lawyer may be involved in post-divorce modifications. This can include changes to child custody arrangements, child support payments, or spousal support due to significant changes in the circumstances of either party.

The Pros and Cons of Hiring a Divorce Lawyer

Now that we have a basic understanding of what divorce entails, let’s dive into the benefits and drawbacks of hiring a divorce lawyer.

Benefits of Hiring a Divorce Lawyer

1. Expertise and Experience: Divorce lawyers have the knowledge and expertise to navigate the complexities of divorce law. They are well-versed in Utah’s legal system and can advise you on the best course of action for your specific situation.
2. Objective Guidance: A divorce lawyer can provide objective guidance and advice during an emotionally charged time. They can help you make rational decisions and prevent you from making impulsive choices that could negatively impact your future.
3. Efficient Process: With a divorce lawyer, the process of obtaining a divorce can be more efficient. They can help you gather the necessary documentation, file the appropriate paperwork, and ensure that deadlines are met.
4. Protecting Your Rights: A divorce lawyer will advocate for your rights and interests, ensuring that you receive a fair settlement in terms of property division, child custody, and spousal support.
5. Reducing Stress: Having a divorce lawyer on your side can help reduce the stress associated with the divorce process. They will handle the legal aspects, allowing you to focus on your emotional well-being.

Drawbacks of Hiring a Divorce Lawyer

1. Cost: Hiring a divorce lawyer can be expensive. Depending on the complexity of your case, legal fees can add up quickly.
2. Increased Conflict: In some cases, having lawyers involved in a divorce can escalate the conflict between the parties, making the process more contentious and challenging.

When You Should Consider Hiring a Divorce Lawyer

While there are both benefits and drawbacks to hiring a divorce lawyer, there are specific situations where having legal representation is crucial. These include:

1. Contested Divorce: If you and your spouse cannot agree on critical issues, such as child custody, property division, or spousal support, a divorce lawyer can help negotiate and advocate on your behalf.
2. Complex Assets: If you have substantial assets, such as real estate, retirement accounts, or a family business, a divorce lawyer can help ensure that these assets are divided fairly and according to the law.
3. Domestic Violence or Abuse: If your divorce involves allegations of domestic violence or abuse, a divorce lawyer can help protect your rights and ensure your safety.
4. Spousal Support: If you are seeking or contesting spousal support, a divorce lawyer can help determine the appropriate amount and duration based on your specific circumstances.
5. Child Custody and Support: If you and your spouse have children, a divorce lawyer can help negotiate custody arrangements and ensure that the best interests of your children are protected. They can also help you calculate and negotiate child support payments according to Utah’s guidelines.
6. Modifications to Existing Agreements: If you need to modify existing custody, child support, or spousal support agreements due to changes in circumstances, a divorce lawyer can guide you through the process and advocate for your interests.

IV. When You May Not Need a Divorce Lawyer

There are situations where you might not need to hire a divorce lawyer. These include:

1. Uncontested Divorce: If you and your spouse agree on all major issues, such as property division, child custody, and spousal support, you may be able to proceed with an uncontested divorce. In this case, you can use a mediator, online divorce service, or self-representation to complete the process.
2. Limited Financial Resources: If you have limited financial resources and cannot afford a divorce lawyer, you may need to explore alternative options, such as free legal aid, pro bono legal services, or self-representation.
3. Simplicity of the Case: If your divorce case is relatively simple, with few assets and no children involved, you may be able to navigate the process without the assistance of a lawyer.

V. Alternative Options to Hiring a Divorce Lawyer

If you decide not to hire a divorce lawyer, there are alternative options to help you through the process:

1. Mediation:Mediation is a voluntary process where a neutral third party, called a mediator, helps the divorcing couple reach an agreement on issues like property division, child custody, and support. Mediation can be a more cost-effective and collaborative way to resolve disputes, especially in uncontested divorces.
2. Online Divorce Services:There are various online divorce services available that can help you complete and file the necessary paperwork for an uncontested divorce. These services are typically more affordable than hiring a lawyer, but they do not provide legal advice or representation.
3. Self-Representation: Some people choose to represent themselves in their divorce cases. If you decide to go this route, it is essential to educate yourself on Utah’s divorce laws and procedures, which can be found on the Utah State Courts website.
4. Limited Scope Representation: Also known as “unbundled legal services,” limited scope representation allows you to hire a lawyer to handle specific aspects of your divorce case, such as drafting documents or providing legal advice, while you handle other parts of the case yourself. This option can help reduce legal costs while still benefiting from professional assistance.

Conclusion

So, do you need a divorce lawyer? Deciding whether or not to hire a divorce lawyer depends on your specific situation, needs, and resources. It is essential to consider the complexity of your case, the level of conflict with your spouse, and your ability to navigate the legal system on your own. If you find yourself in a situation where hiring a divorce lawyer is necessary, Ascent Law, based in West Jordan, Utah, is here to help guide you through the process and protect your interests. If you are unsure about your need for a divorce lawyer, consider scheduling a consultation to discuss your options.

The post Do You Need a Divorce Lawyer? appeared first on Ascent Law.

source https://ascentlawfirm.com/do-you-need-a-divorce-lawyer/

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Chapter 13 Bankruptcy Utah

Chapter 13 Bankruptcy Utah

Many people think of bankruptcy court as the final stop on a path to financial ruin, the only option left when repaying debts seems impossible. But there’s hope even in bankruptcy, and Chapter 13 of the federal bankruptcy code offers the closest thing to a soft landing. Chapter 13 allows those with enough income to repay all or part of their debts as an alternative to liquidation. It’s bankruptcy for those whose biggest problem is dealing with creditors’ demands for immediate payment, not lack of income. One of its most attractive features is the chance to keep your home after Chapter 13 bankruptcy as long as you can pay the mortgage and any amount required by your Chapter 13 repayment plan.

Under Chapter 13, people have three to five years to resolve their debts while applying all their disposable income to debt reduction. The option allows applicants to eliminate unsecured debts while catching up on missed mortgage payments. Short-circuiting home foreclosure is one of the option’s most attractive features. Though keeping your home can be a major relief, you’re required to spend years living under the supervision of a court-appointed trustee who will collect and distribute your payments.

How Chapter 13 Works

Chapter 13 bankruptcy is like Chapter 11, which generally applies to businesses. In both cases, the petitioner submits a reorganization plan that safeguards assets against repossession or foreclosure and typically requests forgiveness of other debts. They both differ from the more extreme Chapter 7 filing, which liquidates all assets except those specifically protected. No bankruptcy filing eliminates all debts. Child support and alimony payments aren’t dischargeable, nor are most student loans and some types of taxes. But bankruptcy can clear away many other debts, though it will likely make it harder for the debtor to borrow in the future.

To be eligible to file for Chapter 13 bankruptcy, an individual must have no more than $419,275 in unsecured debt, such as credit card bills or personal loans. They also can have no more than $1,257,850 in secured debts, which includes mortgages and car loans. These figures adjust periodically to reflect changes in the consumer price index. One of Chapter 13 allows you to stop an effort to foreclose on your home. Filing a Chapter 13 petition suspends any current foreclosure proceedings and payment of any other debts owed. This buys time while the court considers the plan, but it does not eliminate the debt. Hopefully, the bankruptcy plan will free enough of your income that you’ll be able to make regular mortgage payments and keep your house.

The Chapter 13 Process

First, you should find a bankruptcy lawyer who can provide you with a free evaluation and estimate to file. The cost to file Chapter 13 bankruptcy consists of filing fees and fees charged by a bankruptcy attorney.

Petitioners (or “debtors”) need to pay a $313 filing fee to the bankruptcy court. They also need to provide:
• A list of creditors and the amount of their claims
• Disclosure of the amount and sources of the debtor’s income
• A list of the debtor’s property, as well as an accounting of all contracts and leases in the debtor’s name
• A breakdown of the debtor’s monthly living expenses
• Tax information, including a copy of the debtor’s most recent federal tax return and a statement of any unpaid taxes.

Chapter 13 petitioners must stipulate that they haven’t had a bankruptcy petition dismissed in the 180 days before filing due to their unwillingness to appear in court. Also, anyone seeking bankruptcy protection must undergo credit counseling from an approved agency within 180 days of filing a petition. Shortly after filing bankruptcy, the debtor also must propose a repayment plan. A bankruptcy judge or administrator will hold a hearing to determine whether the plan meets the requirements of the bankruptcy code and is fair. Creditors may raise objections to the plan, but the court has the final say.

Debtors can arrange to make up delinquent payments over time, but under Chapter 13 rules, all new mortgage payments from the time of filing must be made on time. The debtor also must work with a trustee, who distributes payments to the creditors. The debtor is not required to have any direct contact with his or her creditors under Chapter 13. In fact, all creditors are required by law to cease any attempts to recover the debts covered under the Chapter 13 process if all terms of the agreement are being met. You must stick to the basics of your Chapter 13 repayment plan. If you make late payments or miss payments, the trustee may move to dismiss your case. In some cases, you may be allowed to accelerate your payments and seek an early discharge from the agreement. Conversely, if your financial situation worsens, it’s up to you to inform the bankruptcy trustee and seek a modification of the plan, if necessary. Failure to comply with the terms, especially failure to make payments on time, could result in your Chapter 13 case being dismissed.

Meeting Qualifications

Businesses, such as corporations and LLCs, cannot file Chapter 13. The bankruptcy code also prohibits stockbrokers and commodity brokers from filing under Chapter 13, even if their debts are personal. Individuals who can demonstrate they have the means to pay regular monthly payments are eligible to file. They must disclose their sources of income and submit the information to the court within 14 days of filing a petition.

Income can come from a variety of sources, including pension income, Social Security payments, unemployment compensation, royalties and rent and proceeds from a property sale. You also need to be current in you tax filings. You are required to submit proof that you filed state and federal tax returns for the past four years. If you can’t do this, your case can be delayed until you can, and will be dismissed if you are unable to produce or offer transcripts of your returns. The trustee will review the debts and income statements, and then schedule a hearing to decide whether the plan is acceptable. When the repayments are completed, the Chapter 13 case will be discharged. This typically takes three to five years.

Typical Chapter 13 Bankruptcy Case

What does a successful Chapter 13 bankruptcy applicant look like?

Consider Steven and Cathy, a married couple with a home that carriers a $150,000 mortgage. Steven works, Cathy doesn’t, but they file jointly for Chapter 13 protection. The couple also owes $7,000 on a car loan and has nearly $20,000 in credit card debt.

Two weeks after filing a petition, they submit a Chapter 13 repayment plan that shows how Steven’s income can be used to make mortgage and car payments, and can repay part of the unsecured credit card debt. Their plan includes three categories of debt: priority, secured and unsecured. Priority claims, which must be fully paid, include the cost of the bankruptcy proceeding, some taxes and child support. Secured debts are those with collateral, like a house or a car, also must be paid in full (unless an exception applies) according to the bankruptcy plan. Repayment of unsecured debts, like money you owe on credit and charge cards, is flexible. The judge will review your income and the length of the repayment plan, and then decide how much you’ll owe your unsecured creditors. The amount could range from nothing to complete repayment.

For Steven and Cathy, this means paying all the court costs and whatever back taxes they might owe. It also means they will become current on their mortgage and car payments. But the judge will decide how much they’ll need to pay the credit card companies. Once their plan is accepted, the couple will begin making payments to a court-appointed trustee who will be responsible for monitoring their progress and conveying the money to the creditors.

Chapter 7 vs. Chapter 13

Chapter 7 bankruptcy forces you to liquidate a great many assets to repay creditors. But the process can be concluded relatively quickly, and any wages and property you acquire after the bankruptcy filing, except inheritances, aren’t subject to distribution to your creditors. Typically, the entire process is completed within six months. But Chapter 7 has disadvantages, too.

Lenders who have already filed to foreclose on your home are only temporarily stalled, and other debts such as mortgage liens can be collected after the case is concluded. Cosigners on your debt are still obligated to pay. In addition, you have to meet the Chapter 7 income limit to qualify. Seeking Chapter 13 protection allows you to keep all your property. It simply extends the amount of time you have to repay what you owe after the bankruptcy court issues its ruling. It is possible to file a Chapter 13 bankruptcy after a Chapter 7 is completed, allowing you to seek a reduction in whatever debts remain from a Chapter 7 discharge.

Chapter 13 also protects your loan cosigners against collection efforts if the bankruptcy settlement obligates you to repay the debt yourself. If you need to file a second bankruptcy, Chapter 13 is only a two year waiting period versus eight years for Chapter 7. There are disadvantages to Chapter 13 bankruptcy as well. Legal fees can be higher in Chapter 13 cases than Chapter 7 cases and your obligation to repay can last for years. In Chapter 7, the Chapter 7 discharge ends most debt obligations.

Life after Chapter 13 Bankruptcy

Once the court approves a repayment plan, it is up to the debtor to make the budget plan work. Failure to make agreed-upon payments will bring the matter back to court for further review, which could include selling the debtor’s property to pay debts. Alternatively, the trustee can simply request the case be dismissed.

Bankruptcy may give debtors a breather from creditors, but there is a penalty to be paid on their credit reports. Under the federal Fair Credit Reporting Act, a Chapter 13 bankruptcy will be listed on the report for seven years. Debtors in this situation may find it difficult to get additional credit for years. Chapter 13 bankruptcy can be a useful financial tool for people with serious debts who worry about losing their homes to bankruptcy. Anyone considering this course should consult a bankruptcy lawyer.

Before Filing a Bankruptcy Petition

Though bankruptcy filings are sometimes the best way to resolve debts, they are not the only alternative. Before deciding if you should file for bankruptcy, consider steps to resolve your debt. Then speak with an attorney to determine if bankruptcy is right for you. Each of these alternatives has its own set of pros and cons and only an attorney can advise you as to the best course of action in your particular case.

• Credit Counseling – Seek help from a nonprofit credit counselor. Churches, charitable organizations and government agencies might provide counseling without charge, or they can refer you to a counselor. The goal is to review your finances and suggest solutions for your debt.
• Debt Management – The next step is to visit a nonprofit credit counseling firm that can devise a specific plan for managing debt. A plan might consider which debts to pay first and detail how your income will be applied to debt. You can meet with debt managers personally or use online tools to set goals and create a plan. The plan might involve establishing a repayment pecking order, having you focus on paying down high-interest debts first while making minimum payments on other debts. Debt management plans also take 3-5 years to complete.
• Debt Consolidation: Some firms will, for a fee, work with your creditors to devise a debt consolidation plan. If you owe balances on multiple credit cards, a debt consolidator will create a plan that allows you to make a single monthly payment which will then be used to repay what you owe.
• Debt Settlement: As a final step to remediate debt problems and avoid bankruptcy, a nonprofit debt settlement firm negotiates with creditors to reduce what you owe in exchange for a workable payment plan that you commit to. Though this strategy is hardly foolproof, creditors sometimes are willing to take reduced payments if they know they can recover part of what they’re owed.

Chapter 13 Eligibility

Chapter 13 bankruptcy isn’t for everyone. Here are a few requirements you should know upfront.

• Debt limits: Secured debts and unsecured debts cannot exceed certain amounts. (Find the figures in What Are Chapter 13 Bankruptcy Debt Limitations?) A “secured debt” gives a creditor the right to take property (such as your house or car) if you don’t pay the debt. An “unsecured debt” (such as a credit card or medical bill) doesn’t give the creditor this right. If your total debt burden is too high, you’ll be ineligible, but you can file an individual Chapter 11 bankruptcy, instead.
• Steady income: When you file a Chapter 13 case, you’ll have to prove to the court that you can afford to meet both your monthly household obligations and pay into a repayment plan. If your income is irregular or too low, the court won’t confirm (approve) your proposed repayment plan.
• Not a business: This chapter isn’t available to companies, meaning that only an individual can file for Chapter 13 bankruptcy. However, business-related debts that you’re personally responsible for will be part of your plan, and therefore, from a practical standpoint, a sole proprietorship might be able to benefit from this chapter.

Bankruptcy is a federal court process designed to eliminate debts or repay them under the protection of the bankruptcy court. For individuals, most people file either Chapter 7 or Chapter 13, because a court order can call an automatic stay, prohibiting most creditors from hounding you in order to collect what you owe. However, you should consider the costs, both financially and personally, before taking action. If you declare bankruptcy, renting an apartment or buying a house or a car will be extremely difficult because of your credit. In addition, future job opportunities could be compromised, perhaps leading to more financial issues.

Many debtors assume that Chapter 7 bankruptcy is better than Chapter 13 bankruptcy because, Chapter 13 bankruptcy requires debtors to repay some debt, whereas Chapter 7 bankruptcy wipes out qualifying debt without a repayment plan. But it isn’t that simple.

For instance, Chapter 7 is quicker, many filers can keep all or most of their property, and filers don’t pay creditors through a three to five years Chapter 13 repayment plan. But not everyone qualifies to file for Chapter 7 bankruptcy and in some cases; Chapter 7 doesn’t provide the help the filer needs. Each bankruptcy chapter has unique tools that help solve distinct problems. For instance, a debtor who’d like to save a home from foreclosure will likely be better off filing for Chapter 13 bankruptcy because Chapter 7 bankruptcy doesn’t have a mechanism that will allow you to keep property when you’ve fallen behind on your payment. However, sometimes Chapter 13 bankruptcy is the only option because a debtor isn’t eligible for Chapter 7 bankruptcy.

Some debtors cannot file for Chapter 7 bankruptcy leaving Chapter 13 bankruptcy as the only option. You cannot file for Chapter 7 bankruptcy if both of the following are true:

• Your current monthly income over the six months before your filing date is more than the median income for a household of your size in your state.
• Your disposable income, after subtracting certain expenses and monthly payments for debts you would have to repay in Chapter 13 bankruptcy, exceeds certain limits set by law. These calculations are referred to as the means test. They determine whether you have the means to repay a certain amount of your debt through a Chapter 13 repayment plan. If you do, you flunk the test and are ineligible for Chapter 7 bankruptcy.
The means test can get fairly complex, and, to make matters worse, uses unique definitions of disposable income, current monthly income, expenses and other important terms, which sometimes operate to make your income seem higher, and your living expenses lower, than they are. Even if you are eligible for Chapter 7 bankruptcy, there are some situations when filing for Chapter 13 bankruptcy might be more advantageous than filing for Chapter 7 bankruptcy.

How the Automatic Stay Works

The automatic stay is an order that’s put in place as soon as you file for bankruptcy. All collection efforts to collect money you owe other than child support and alimony, including calls, letters, and other techniques, must come to an immediate halt. It stops almost anyone who is trying to collect from you.
A few things that a creditor cannot do once the stay is in place include:
• garnishing your wages (taking money out of your paycheck)
• levying on your bank account (instructing the bank to withdraw funds)
• foreclosing on your house
• repossessing your car, or
• Moving forward with a civil lawsuit requesting a money judgment.

In most cases, the automatic stay will protect you throughout your case. But not always. If you’ve filed more than one bankruptcy case within a year, you might not receive as much or any protection. Depending on the number of times you’ve filed during the previous year, the stay could be limited to 30 days (you filed one other matter) or might not apply at all (you filed two or more cases). If you find yourself with this problem and want the protection of the stay, you’ll have to file a motion asking the court to extend it or put it in place. The court will consider doing so if you explain why you filed the previous case and demonstrate that you aren’t gaming the system by repeatedly filing for bankruptcy.

Also, it’s common for a creditor to file a motion to lift the automatic stay (a motion to remove the stay order) if, in a Chapter 13 case, you stop making your house payment and the creditor wants to move forward with a foreclosure. If the court grants the request, the judge will withdraw the stay order and allow the creditor to continue with collection efforts.

Advantages of Chapter 7 Bankruptcy

Chapter 7 bankruptcy is an efficient way to get out of debt quickly, and most people would prefer to file this chapter, if possible. Here’s how it works:
• It’s relatively quick: A typical Chapter 7 bankruptcy case takes three to six months to complete.
• No payment plan: Unlike Chapter 13 bankruptcy, a filer doesn’t pay into a three- to five-year repayment plan.
• Many, but not all debts get wiped out: The person filing emerges debt-free except for particular types of debts, such as student loans, recent taxes, and unpaid child support.
• You can protect property: Although you can lose property in Chapter 7 bankruptcy, many filers can keep everything that they own. Bankruptcy lets you keep most necessities, and, if you don’t have much in the way of luxury goods, the chances are that you’ll be able to exempt (protect) all or most of your property.
• You can keep a house or car in some situations. You can also keep your house or car as long as you’re current on the payments, can continue making payments after the bankruptcy case, and can exempt the amount of equity you have in the property.
Chapter 7 works very well for many people, especially those who:
• own little property
• have credit card balances, medical bills, and personal loans (these debts get wiped out in bankruptcy, and
• Whose family income doesn’t exceed the state median for the same family size.
You’ll take the means test to see if your income qualifies for this chapter. If your income is below the average income for a family of the same size in your state, you’ll automatically qualify. If your income is higher than the median, you’ll have another opportunity to pass. However, if after subtracting allowed expenses, including payments for child support, tax debts, secured debts (such as a mortgage or car loan), you have income left over to make a significant payment to your creditors (called disposable income), you won’t qualify to file for Chapter 7 bankruptcy.

Chapter 7 bankruptcy isn’t the best choice for everyone. Chapter 7 won’t help people whose debts won’t get wiped out (discharged), like certain income tax debt, student loans, and domestic support obligations. High-income filers find it hard to qualify. It’s also not a good fit for people who would lose substantial equity in a home or other property if they filed for Chapter 7 bankruptcy, or those facing foreclosure or repossession. For those individuals, Chapter 13 bankruptcy would likely be a better choice.

Disposable Income

Disposable income is the amount that remains after subtracting allowed bankruptcy expenses from your monthly gross income. Your disposable income will determine whether you qualify to discharge (wipe out) debt in Chapter 7 or Chapter 13 bankruptcy. When you claim your deductions, you’ll be able to use the actual cost of some expenses. For others, such as the allowance for food, clothing, and housing, you’ll use the national and local standards.
Here’s a list of some of the deductions you’ll be allowed to take:
• food and clothing
• housing and utilities
• transportation costs
• taxes
• involuntary payroll deductions
• life insurance
• court-ordered payments, such as family support
• certain education costs
• childcare expenses, and
• Health care costs.
In a Chapter 7 case, you’ll complete the Chapter 7 Means Test Calculation form. You’ll deduct allowed expenses to find your disposable monthly income. Next, you’ll multiply that amount by 60 months. If the figure exceeds the maximum amount currently allowed (which will be listed on the form), you won’t qualify for a discharge. Additionally, you might not qualify if your disposable income is sufficient to pay 25% or more of your unsecured, no priority debt (such as credit card balances, medical bills, and personal loans).

In a Chapter 13 matter, you’ll fill out the Chapter 13 Calculation of Your Disposable Income form. The amount that remains after deducting expenses is your monthly disposable income. You’ll pay that number to your unsecured, non-priority creditors each month over the course of your three- to five-year repayment plan. Because each case is different, determining whether you qualify for bankruptcy can be challenging. When in doubt, contact a knowledgeable bankruptcy attorney.

Here are a few other things filers find challenging about Chapter 13 bankruptcy:
• You must complete the entire three- to five-year repayment plan before any qualifying debt balances get wiped out (unless the court lets you off the hook early for hardship reasons).
• If you owe non-dischargeable past due taxes, or support arrearages, you’ll have to pay off the entire balance in your plan (many people don’t have sufficient income to do so).
• To keep a house or car, you’ll need to repay the arrearages over the course of your plan (while continuing to pay your regular monthly payment).
• Many people who file for Chapter 13 bankruptcy don’t complete their plans, so filers run a very real risk that their debts won’t be discharged.
Despite these potential problems, Chapter 13 bankruptcy is a good option for people who have a regular income to pay into a repayment plan, and who would otherwise lose their house to foreclosure or who need time to pay back tax or support arrearages.

The Chapter 7 Bankruptcy Process

You’ll fill out several forms listing your income, assets and debt. You have to list everything, or it might not be erased and may even be considered an act of fraud. You’ll then pay a fee to file a petition for bankruptcy court and a date will be set. The petition automatically prevents creditors from garnishing your wages or suing you. Your creditors will be informed and you’ll receive a court-appointed trustee to oversee the process.
About a month after you file, you’ll attend a hearing in which creditors can view your debt and the trustee will arrange to sell off your nonexempt items. Depending on the state you live in, you could lose your second home, second car, stock or bond certificates, certificates of deposit, heirlooms and any valuable collections such as coins or stamps.

After that, you will not have to pay dischargeable debt, which includes late rent and utility bills, credit cards, medical bills and documented loans from friends and family. By law, creditors cannot try to collect from the original debt. However, some non-dischargeable debts may still exist, and if creditors deem them fraudulent, you can still be approached by collection agencies.

The petition creates a separate, taxable bankruptcy estate consisting of all assets that belonged to you before you filed. Your trustee is responsible for preparing and filing taxes attached to the estate, but you’re responsible for taxes not connected, such as income tax Remember, Chapter 7 stays on your credit for 10 years.

The Chapter 13 Bankruptcy Process

You’re only required to make one monthly payment to your trustee, who will distribute the funds to the various creditors. They are paid based on priority (tax authorities, child support/alimony and administration costs). Lenders are then paid, followed by credit card companies, medical providers, utilities and more. Just like Chapter 7, you’ll fill out the same papers, pay a fee and receive a court-appointed trustee. You have to submit a plan for repayment, which the court can either accept or reject.

After you have filled out a form listing your assets and income and set up a confirmation hearing, your trustee will begin making payments to your creditors based on the court-approved repayment schedule.

You’ll pay back your debts from your own income, and if some survive after your bankruptcy is closed, you have to keep paying back those debts. The petition does not create a separate taxable estate, so you’ll continue to pay taxes just like you did before you filed.

Difference Between Chapter 7 And Chapter 13 Bankruptcy

Before you decide which type of bankruptcy is best for you, it’s important to understand the differences between the two.
Chapter 7
• Certain assets can be liquidated to pay off outstanding debts.
• Could be completed in as little as three or four months.
• Once complete, no further payments need to be made by the consumer.
• Stays on a credit report for 10 years.
• Income must be less than the median income in your state.
Chapter 13
• You’ll receive a court-approved debt repayment plan. The amount you must repay depends on your income and the size of debt.
• There is no liquidation of assets, which means you keep everything, including your home and car, all while making regular payments.
• The entire process can take three to five years to complete.
• Stays on your credit report for seven years.

Requirements when Filing Chapter 7 or Chapter 13

If you’re considering either Chapter 7 or Chapter 13 bankruptcy, there are certain income requirements that must be met. Anyone contemplating Chapter 7 bankruptcy must go through what’s called a means test. This will assess whether you meet the necessary conditions to qualify. The first part of the Means Test is to figure out if your income is below the median income level in the state where you reside. If it is, then you pass and are eligible for Chapter 7 bankruptcy. However, if your income is above the median level, a deeper look into your disposable income is required. If your disposable income equals more than a predetermined amount, the courts will assume you have enough money to at least pay part of your debt and you won’t pass the means test. Anyone who fails the means test will be required to file for Chapter 13 bankruptcy protection.

Free Initial Consultation with Lawyer

It’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, 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
84088 United States
Telephone: (801) 676-5506

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In Estate Planning you need to determine who you want to get what from your estate, and who will handle all those matters if you ever become incapacitated or die. Sometimes it can create discord to appoint an immediate family member as your power of attorney (POA) unless it is your spouse. It can also have the opposite effect if you decide on someone who is not a family member. Give it quite a bit of thought before you decide. Discuss it with family members if you think it will help. You may also want to get some direction from friends and neighbors. You could make an appointment to get feedback from an estate attorney. Estate attorneys typically provide the first consul for free. Just make sure you’re armed with specific direction before any estate documents are created.
Several Pieces Of The Estate Planning Puzzle Include The Following:
• Estate Attorney – Although, you can do it yourself, you may want to hire an estate attorney to assist you in your estate planning. Estate attorneys should be well-versed on the federal and state laws that govern estates. This is especially advantageous when you don’t have the time to research it and do it yourself.
• Power of Attorney (POA) – Who will you designate as your POA? This will be the person you will include in your will to conduct the affairs of your estate after you become incapacitated and after your death. You’ll want to weigh this heavily before deciding. You may want to appoint two different POAs – one to address your health and one to address your financial affairs should you become incapacitated.
• Living Will – You need to complete one and sign it in the presence of a notary. This will dictate your wishes should you become too ill to determine the course of your own health.
• A Will – Your will determines how your property will be disbursed upon your death. It may also include provisions from your living will.
• Payment on Death (POD) – Contact your banks and securities holdings companies to complete a POD for each of your accounts. This will simplify the transfer of all assets in these accounts to go directly to your beneficiaries, bypassing the probate process.
• Transfer on Death (TOD) – Contact your mortgage company and other secured loans holders to complete a TOD. The TOD will facilitate the transfer of ownership from you to your beneficiaries upon your death eliminating the need for the assets to go through a lengthy and expensive probate process.
• Insurance Policies – Make sure you have 1st and 2nd beneficiaries designated on all your life insurance policies.
• Retirement Savings – Be sure to designate 1st and 2nd beneficiaries on your retirement savings programs.
• Business Interests – You’ll need to designate a TOD on any business interests or holdings you have to ensure a smooth transition of assets to your beneficiaries upon your death.
• A Trust – Depending on your resources, you may want to create a trust to protect your assets. Creating a trust bypasses the probate process after your death. It directly transfers your assets from the trust to your beneficiaries.
Get Help From an Estate Planning Lawyer to Create a Valid Will
If you earn and spend, there must be some personal possessions. In case you die without a will, these would be distributed according to the rules and regulations of your state. Moreover, this does not include your material possessions only, it also includes any minor children you have. You need to consult an estate planning lawyer to deal with the matter. It is, therefore, essential to plan about what would happen to your assets in case of your death. Statistics show that only approximately 30-35% Tremonton Utah has a will. You need to think about estate planning to ensure the security of your loved ones when you are not there to take care of them.
What needs to be mentioned in a will? Here is a quick checklist of it.
1. Your full name and date of birth
2. The names, dates of birth and addresses of the individuals who would inherit the assets
3. The details of your assets and liabilities
4. The details of who gets what
5. The name of the executor/administrator of the will
The next thing to consider is what comes under the category of your assets. All material possessions are distributed by the will. This includes real estate properties, motor vehicles, cash, bank accounts, safe deposits, jewelry, furniture, heirlooms, and so on. Whatever seems worthy is suitable to be included in your will. An added advantage of creating a will is that you can ensure the future of your minor children with its help. It is quite simple; all you need to do is mention the name of the individual who would be appointed as a guardian for the child in the case of your death. You could also leave some portion of your property for the child’s upbringing. Another common question is why opt for an estate planning lawyer when you can do the task on your own. You can draft your will according to your wishes. However, without the help of a good legal professional it may have flaws like errors and omissions. Such a will won’t be acceptable to the state and would never serve its purpose.
You can distribute all you possess as per your wishes with the help of a will. Most states would allow this. However, the state authorities would not permit giving effect to something like destruction of your property in case something happens to you. Your estate planning lawyer would be able to help you understand the best possible way to make a valid will. You can opt for any of the proficient Tremonton Utah Estate Planning Lawyers to help you deal with the process. He/she would be able to draft the document in the right legal way, check for errors and omissions, file it and see that it attains the status of a valid will.
What is an Executor in Estate Planning?
Estate planning is the process of accumulating and disposing of wealth before the death of an individual or married couple. The most important goal of estate planning is to make sure that the greatest amount of the estate is passed to the estate owner’s intended beneficiaries while paying the least amount of taxes. An executor in the will, normally is the lawyer or someone who you trust will carry out your intentions in the will after you die. Since you have named someone as your will executor, in general the executor will gather up all your assets and after paying all your debts, he or she will distribute the remaining assets to the beneficiaries.
1. Paying funeral expenses: Funeral expenses are usually paid out from the assets of the deceased, although sometimes the executor considers the wishes of the deceased person’s relatives.
2. Paying all other debts: The executor is also responsible to pay off all the debts of the deceased person including all credit cards and charge cards, personal loan, and other debts.
3. Notify all beneficiaries who are named in the will.
4. Submit the necessary probate documents to the court to get probate before he or she can handle the deceased’s estate.
5. Notify the government pension office, if the deceased person received pension payment before his or her death.
6. File the income tax for the deceased person and pay all income tax if owed and get a tax clearance.
7. Distribute remaining assets to estate beneficiaries.
Estate Planning Tips – Five Things to Ease the Process
Estate planning is never an easy conversation to have whether you’re planning ahead for yourself or assisting a loved one in the process. Knowing how and where to get started is the first step. Here are five tips to ease the process.
1. Keep organized files. One of the best ways to make the pre-need planning process easier for you and your family is to organize and clearly label your files, including your will, assets, taxes, burial wishes, information pertaining to life insurance and bank account details. These items can be stored in a deposit box for safekeeping.
2. Keep it simple. There are many estate planning software options that will help you to organize your information. These software packages will guide you through initial preparations and legal documents. Planning software allows you to stay organized and prevent you and your loved ones from feeling overwhelmed with all of the details.
3. Have the tough conversations. The next important step-albeit a difficult one-is to discuss your wishes with your spouse, children and other loved ones. You’ll also need to choose an executor. Once your decisions are organized and accessible, your loved ones will have a road map for your wishes.
4. Write out all details. In addition to the “administrative” tasks surrounding details like insurance and finances, it’s important to outline your burial wishes. Traditional burial planning will entail details about burial plot location and casket choice. Cremation planning may involve choosing a final resting place for ashes and urn selection. In either case, consider details like the funeral home, type of ceremony, whether there will be visitation, obituary information or memorial contributions.
5. Remember your virtual life. Though an online presence may not be the first thing we think of addressing in pre-need planning, the web is increasingly a public place-and a lot of personal information may be stored in various accounts. Make note ahead of time about how to delete or remove social media and web-based email accounts. Also note details for cell phone, insurance and credit card online bills, online bank accounts and any sites that store personal photos and videos.
What A Personal Property Memorandum Can Do For Your Estate Plan
When you make a will as part of your estate plan there is a portion that is reserved for specific bequests or items that you want to give to a person. Instead of listing all of your personal property one by one in your will there is a manner that will allow you to give items away to specific people in a much easier way.
A Personal Property Memorandum that is available in most states is a document that is separate from a will that is referenced in a will that allows the maker of the will to dispose of tangible personal property in a matter and time they later wish. This means that when you make your will all you have to say is that there will be a PPM and it will be acceptable. Tangible personal property is property that you can touch such as household items as furniture, but not property with a title, such as a car, or intangible physical items such as a stock certificate or cash. The Personal Property Memorandum can be in your own handwriting or typed as long as it is signed and dated. You can change or update the memorandum at any later time without the need of an attorney or notary public. All household tangible property that a married couple own automatically pass to the surviving spouse in some states, so it is only necessary to include items on the memorandum that would not go to the spouse, such as a family heirloom to a child. For an unmarried person all household tangible property would pass in the residuary of the will, or all assets not listed as a specific bequest in the will, so it would only be necessary to name items not going to the person listed as the beneficiary of the residuary under the will. You can gift items before you die, but after death items in the house cannot be gifted unless as directed under the will or personal property memorandum. Just because an item was designated verbally, such as a child should get my antique vase, has no effect unless it is included in the will or memorandum. It is important to give away items that have a high sentimental value to a specific person before you die or in a memorandum because these are the items that cause the most family fights even when the items have a small monetary value.

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