» Estate Plans Can Protect Families with a Restrictive Prenup

Estate Plans Can Protect Families with a Restrictive Prenup

Hook Law Center (formerly Oast & Hook)

Hook Law Center (formerly Oast & Hook)

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
Phone: 757-399-7506
Fax: 757-397-1267

SUFFOLK
5806 Harbour View Blvd.
Suite 203
Suffolk VA 23435
Phone: 757-399-7506
Fax: 757-397-1267
http://www.hooklawcenter.com/

  • Penalty Periods and the 5-Year Lookback: Some Good News
    On April 17, the acting director of the Centers for Medicare and Medicaid Services issued a policy clarification to all state Medicaid Directors regarding the imposition of penalty periods for individuals requesting Home and Community Based Services.  This clarification may be beneficial to many hoping to receive services in their home. Individuals requesting Medicaid assistance […]
  • April 17th Marks the Tax Deadline! Have You Filed Your Return?
    Tuesday, April 17th, 2018 is the deadline for most taxpayers to file their federal income tax return and pay any tax liability that is owed. If you miss the deadline to file, you may be assessed penalties for failing to file and failing to pay your tax liability on time. The good news is that […]
  • Administration of Small or Insolvent Estates
    Many people do not understand the complexities involved in administering a decedent’s estate. Estate administration can be even more problematic when the estate is relatively small. As a result, one of the first things we assess when meeting with a new client is the size and solvency of the estate. An estate valued below $50,000 […]
  • The Surprising Things Medicaid Won’t Pay For
    Many people know that they won’t become eligible for Medicaid until their countable assets are down to a very low number. In Virginia, that number is $2,000.00. While some people might worry about having to “spend down” their assets before they can qualify for Medicaid because it will leave virtually no inheritance for their children […]
  • Elder Abuse, Neglect, and Exploitation, Part One: What is it and Can it Happen to You?
    On February 22, 2018, the Department of Justice issued a press release announcing the “largest coordinated sweep of elder fraud cases in history.” It turns out that more than 250 defendants victimized more than a million Americans, most of whom were elderly, and caused losses in excess of half a billion dollars. The sweep involved […]

See other news sources publishing this article. BETA | Tags: , , , , ,



Get headlines from Law Firm Newswire sent right to your inbox.

* indicates required