Estate Plans Can Protect Families with a Restrictive Prenup
Virginia Beach, VA (Law Firm Newswire) August 26, 2014 – Sometimes, one of the partners constructing a prenuptial agreement is a business owner. Typically, the document will then be designed to ensure that preexisting assets are completely protected in case of divorce.
This often leads to restrictive prenuptial agreements that keep all preexisting assets separate. Unfortunately, that safe, restrictive prenup can prevent the surviving spouse from receiving assets upon the other spouse's death.
“A prenup is essential for protecting your assets in case of divorce, but it doesn't always account for problems that may occur if you were to die,” said Andrew Hook, a Virginia estate planning attorney with the Hook Law Center. “By forming an estate plan, you can make sure that your family is provided for in the case of untimely death.”
Even with a restrictive prenup, it is possible to leave money and other assets to a surviving spouse without sacrificing the integrity of the prenup.
Family limited partnerships are a strong option for individuals with a successful business who would like to allow their family to receive earnings from that business in the event of their death. A family limited partnership allows the surviving spouse to receive income from the business without gaining control over the business's operations.
To protect both spouses from litigation against the business, general partnerships in family limited partnerships should be held through a limited liability company.
Initially, the business owner holds the majority of limited partner ownership in the family limited partnership. After the individual's death, a portion of the limited partnership interest would be transferred to the surviving spouse, and the shares would be gifted into a testamentary trust, providing income for the spouse and family.
Hook Law Center
295 Bendix Road, Suite 170
Virginia Beach, Virginia 23452-1294
5806 Harbour View Blvd.
Suffolk VA 23435
- A retirement savings account can include health savings accounts
As companies divert the costs of health insurance to their employees, health savings accounts (HSAs) and health reimbursement accounts (HRAs) have become increasingly popular. According to the Employment Benefit Research Institute (EBRI), adults in the U.S. retained $23.8 billion among 11.8 million HSAs and HRAs. This represents an increase of 2,725 percent from 2006. HSAs […]
- What men can learn from women about saving for retirement
Although men’s 401(k) balances tend to be larger than women’s, there is evidence to suggest that women may outperform men where retirement planning is concerned. Vanguard observed that at the majority of income levels, women are more inclined to take part in their employer’s 401(k) plan, more inclined to enroll in the plan on a […]
- The new reverse mortgage rules: Are they right for your retirement plan?
The reverse mortgage rules that became effective on Aug. 4, 2014 should address any concerns held by married couples who are contemplating taking out such loans. Reverse mortgages, which are also called Home Equity Conversion Mortgages (HECM), are home loans for those who are age 62 or older that allow them to convert the equity […]
- Spending down Medicaid assets safely
“Spending down” your assets is the term used to describe the reduction of your assets in order to qualify for Medicaid. There are some assets that are not required to be sold or spent in order to be eligible for Medicaid. These are called noncountable assets, and they include the home, a car, household goods […]
- How to spend down Medicaid assets (safely)
Spending down your assets is the term used to describe the reduction of your assets in order to qualify for Medicaid. There are some assets that are not required to be sold or spent in order to be eligible for Medicaid. These are called noncountable assets, and they include the home, a car, household goods […]