Are Beneficial Interests in Irrevocable, Spendthrift Trusts a Divisible Asset in Divorce?
The Massachusetts Appeals Court recently determined that anirrevocable spendthrift trust, created by the husband’s fatherin 2004 and funded from his family’s operation of variouscorporations for the benefit of the husband and his siblings, wasproperly included in the marital estate and subject to division inthe husband’s divorce. BACKGROUND The parties were married in 2000 and lived…
Special Needs Trusts for Disabled Children of Military Retirees
If you are a military retiree and a parent of a special needschild, a bill in Congress will make it easier for you to providefor your special needs child after you die. The military allowsretirees with special needs children to participate in theSurvivor Benefit Plan, which permits monthly benefit stipendsup to 55% of the military…
What’s a Judge to Do? Custody Disputes in Massachusetts
On occasion, disputes occur between divorcing parents concerningthe care of their children. When they do, the court may appoint anattorney to serve as a Guardian Ad Litem. Unlike an attorney whoadvocates a client’s position, the Guardian Ad Litem is requiredto investigate the issues identified by the court, determine whatis in the best interest of the…
Stock Options: Valuable Assets to be Divided in Divorce
Stock options are no longer reserved for only high-levelexecutives. Options are being offered to rank and fileemployees with much greater frequency. Accordingly,stock options have become increasingly valuable assets ofthe marital estate. If spouses decide to divorce, those stockoptions become a complex and often contentious aspect ofthe division of the parties’ property.Under Massachusetts law, stock options,…
Diversity Visa “Green Card” Lottery to Open Soon
Countries with high rates of immigration are NOT qualified. These typically include Brazil, China, the Dominican Republic, El Salvador, Guatemala, Haiti, India, Jamaica, Mexico, Poland, and the UK among others. By contrast, most African and European countries are typically eligible. Nationality is determined by the country of birth of the applicant, his or her spouse,…
Income Tax Deductions, Exemptions and Credits that May Be Available When Providing for a Special Needs Dependent
Caring for a family member with special needs can be financially costly. Many of these expenses may be deductible on one’s income tax returns. Unfortunately, many families are not aware of the many income tax deductions for medical and related expenses that exist in the tax code. The following is a summary of tax deductions,…
Rules of Taxpayer Representation – Part 3
PART I I I – IRS COLLECTIONSThis article is the third in a three-part series. It discusses theIRS Collections process and strategies. The Collections processbegins after the audit, appeal, any other adversarial proceeding,and the tax has been assessed. The client now owes money andthe IRS is attempting to collect what is owed. I am always…
The Backdoor Roth IRA
In a typical Traditional IRA, a taxpayer makes tax deductible contributions (i.e., pre-tax contributions), the investment growth is tax deferred and the money is subject to ordinary income tax when withdrawn. High-income earners are disallowed from making pre-tax contributions to a Traditional IRA if 1) their modified adjusted gross income exceeds certain thresholds, and 2)…
Social Security Appeals – A Tale of the Two OBRA ‘93
Have you received a negative decision by the Social Security Administration for benefits involving an OBRA `93 Trust? You should be aware that you have the right to appeal a decision by the Social Security Administration that you do not agree with. For many of our clients, Supplemental Security Income (SSI) is the only financial…