According to divorce lawyers, January is “Divorce Month.” There are plenty of reasons for why January ends up being the busiest month in which to file divorce. Usually, families want to stick it out through the holidays before making a big chance. Who knows, maybe someone’s New Year’s Resolution is to get divorced. 

Whatever the reason, there are some things you need to know when you’re in the process of getting divorced. And no, we won’t put you through the, “Are you sure you want to get divorced?” question. Here are five things to know about getting a divorce. 

1. Get Your Financial Documents Together 

Divorce relies heavily on documentation for the purposes of things such as alimony, marital property, and child support. Financial records, phone records in some cases, mortgages, and receipts for sale are all things you might have to show to a court to prove financial status or lack thereof. Start digging around for that stuff now, whether you have copies online or in boxes somewhere. It’s always wise to make copies of physical documents, just in case. 

2. Update Your Estate Plan 

You probably don’t want your spouse as your power of attorney, especially if you are dumping them, or vice versa. Update your estate plan to make sure that they are stricken from the plan where you want them to be. While in some states, divorce automatically invalidates some provisions, the pre-divorce limbo period doesn’t invalidate anything. 

3. Ask an Attorney about Joint Bank Accounts/Credit Cards 

Joint bank accounts and joint credit cards are tricky. They might have seemed like a good idea at the time, but now they’re a mess because the finances are all tangled up. Talk to an attorney about getting the finances separated and handling the joint bank accounts. You might need to call in an accountant, but the first step is talking to an attorney. 

4. Custody Issues 

A lot goes into custody. The prevailing standard in most states is the best interests of the child or children, and that “best interests test” depends on a whole penumbra of factors. You will likely need to sit down and work out your work schedule, financial stability, and housing situation when you’re discussing custody. The court will look to the best interests test when determining custody. It is best to keep custody battles between you and your spouse and avoid dragging kids into back-and-forth between the two of you.

5. Know When You Are/Aren’t Single 

This one’s about adultery. If you’re still legally married, it is unwise to move in with or start a relationship with someone else, as your spouse could claim that as adultery. Even if you’re living separately, some jurisdictions will look on that as adultery. Adultery doesn’t affect the division of marital property, but it can affect other considerations of the process. Save relationships and dating for when this process is over. You’ll likely be far less stressed out and better able to focus on a new relationship when the divorce is settled, at any rate.

According to the CDC, the US divorce rate is 3.2 per 1,000 people. While this is a decrease, the decrease is caused by people not getting married, as opposed to just being better at getting married. All this to say: divorce is common. Don’t be afraid to ask for help or advice, as you are not alone through this process, though it might seem like that at times. Help is out there, and the first step is to talk to an attorney.  

So, here’s the thing about New Year’s resolutions: they don’t always work out. Whether it’s a new diet, exercise plan, or attempt to become more organized, it’s not always easy to get a huge list of resolutions straightened out. Let us present to you a new idea: just one resolution. You can make the resolution to get your finances in order. This broad scope is not only going to be a huge accomplishment; it also will have a lot of long-term benefits.

The Problem with the Big List 

A New Year’s resolution list can operate somewhat like a “To-Do” list, though it’s couched in more goal-achieving language. If you’ve always disliked to-do lists, fear not: Harvard Business Review is on your side. Harvard Business Review did a study on the effectiveness of to-do lists and found that they “don’t work.” Your brain can really only handle seven options before it mentally checks out. When it does check out, you end up ticking off the easy things on the list for a quick dopamine rush, avoiding the bigger projects. 

An alternative to this is a different way to set goals: scheduling their completion at a certain time. So, if you choose to get your finances in order, you can schedule appointments with an estate planning attorney or sign up for money-management classes. This way, you avoid the to-do list rut and actually set yourself on a path to success.

What “Finances” to Get in Order

“Get your finances in order” can mean a lot of things. Whether you’re trying to cut spending or pay off bills, financial health involves a lot of different, occasionally unpleasant things. We’d all rather buy a fun gift for ourselves than pay off an overdue bill. However, financial healthiness is a goal that will involve some hard work.

Asset Protection 

One part of achieving financial health is asset protection, and this doesn’t have to be painful at all. Setting up an estate plan will allow you to decide where you want your assets to go after you die. It also allows you to set up end-of-life and sick care for yourself in the event that you become unwell. Another type of asset protection can involve setting up a trust for loved ones, thereby providing for their financial health too. That’s the beauty of this goal—it helps protect other people as well.

Figure Out What the Issue Is 

When it comes to achieving financial health, we usually have to figure out first what the problem is. Luckily, most of us probably have some sense of where the financial health issue is. If you don’t, go look at your bank account. That will tell you what you’ve been spending money on, whether it’s Amazon purchases or other needless spending. This will help you recognize where you need improvement. You can always talk to a financial advisor about getting yourself in check. Remember, this goal is more of a long-term one. 

Long- vs. Short-Term Thinking 

Just like the common goals of losing weight or eating healthy, achieving financial wellness is one of those goals that isn’t going to have immediate, drastic results right away. Often, you can simply chip away at problems until they become manageable. But that is a good start, in and of itself. Estate planning, especially, is a financial tool that will pay off in the long-term.

Hopefully, we’ve convinced you to give our way a try. Instead of big, exhaustive New Year’s list, which can seem daunting at worst and a throwaway item at best, try just one New Year’s resolution that will have long-term impacts: improving your finances. 

As a grandparent (or a loved one of a grandparent), you know how much you love your grandkids. You want to be able to provide for them, at least in part, whether that involves time, attention, or even money. If you want to protect your assets and help your grandchildren out later, you can do so through the establishment of a trust. In this article, we’ll talk about the benefits of establishing a trust for your grandkids. This is by no means an exhaustive look—it’s more of an overview—but it’ll get the basics down. 

What is a Trust? 

Essentially, a trust is a legal construct. It is a three-party relationship between you, your grandchildren, and a trustee. You transfer nominal title of the property to a trustee, who then transfers actual title of the property to your grandchildren at an agreed-upon time period. Sometimes, grandparents will choose certain milestones to release property or money to their grandchildren (eighteenth birthday, college graduation, etc.). Or, they’ll set aside money to be transferred when the grandchild is attempting to meet a specific goal, like buying a home or starting their own business.

How Do I Set One Up? 

Trusts aren’t too difficult to set up. An attorney will need to work with you to set one up, and you also might have to involve your bank to discuss investment options or other financial planning considerations. What is for sure is that you’ll need an attorney. An attorney will help you decide how you want to structure your trust. For example, if you set up a gift trust, you will not be able to revoke it and reclaim your money. If that doesn’t sound appealing to you, there are other types of trusts you can create. However, the bottom line is that you will need a lawyer.

Types of Trusts

Individual 

If you’re leaving money or assets to just a few grandchildren, you may consider setting up an individual trust for each grandchild. Grandparents usually put equal amounts of money into every grandchild’s trust. Again, this is dependent on what works best for your family size. A family pot type of trust is another option.

Family 

The family trust fund is another option. If you have a lot of people in your family (and thus a lot of beneficiaries), you might start a large fund and have your trustee distribute assets at certain times or upon certain occasions. This pot of money, so to speak, is a single trust for all your grandchildren and their descendants. Note that these trusts require the trustee to have a lot of discretion, so make sure you are okay with that. 

What Do These Include? 

Don’t worry—these trusts are not a free for all. You can set up your trust with instructions and rules that govern the disbursement of the money. For example, you might set up a milestone distribution program as discussed above, or you could set aside money to pay for college tuition. Involve your trustee in these discussions. 

Protecting the Trust

Last, but certainly not least, is the idea of protecting your trust.  Grandchildren don’t always behave according to plan. There might be substance abuse issues or similar problems that would caution a reasonable person to hold back on fund distribution. Again, this is where discretion to the trustee comes in handy. You can leave instructions with him or her to hold back on disbursing funds in the event of an issue with the proposed beneficiary.   

An estate planning attorney will help you work out the nitty-gritty. You will need to talk to your family and work with them to decide how you want to structure your trust and what specifications you need to think about. It goes without saying, but every family is different. Your family has its own set of challenges, and structuring a trust with those in mind will be a great long-term benefit.

Let’s be honest: one of the best things about the holidays is the presents. Regardless of what holiday you celebrate, gifts are bound to be at least a small part of the celebrations. When it comes to holiday spending, let us introduce another idea. While you can’t exactly wrap a “secure financial future” in a shiny box; you can still make that one of your gifts this year. Here’s how. 

Keeping Track of What Really Matters

When you get past the gifts and decorations, what really matters is family. You’ve probably been planning a family get-together over the holidays for some time now. We all want to catch up with relatives we don’t see often. So, as family is certainly one of the biggest reasons we’re all celebrating, it makes sense that a gift should include whatever benefits family most. And a secure financial future is one of the best ways to benefit your loved ones.

Benefits of an Estate Plan 

With an estate plan, things are not uncertain. You can divvy up where your assets will go after you pass on, and you will save your family the immense time and headache that comes from probate court (where people without an estate plan or only a partial one go). In probate court, a judge will divide up your assets, paying off your creditors first. Your family may not get anything. Through estate planning, you can use financial tools and trusts to transfer property to your family that creditors likely will not be able to touch. 

Who Can Set One Up?

Anyone can set up an estate planning appointment. You can set one up for your parents or grandparents, or you can set one up for yourself. Sometimes, people believe that they don’t need an estate plan because they don’t have much of an estate. That’s simply not true—you don’t to be millionaire (or even have a fraction of a million dollars) to get your affairs in order and plan for the future. Think about setting up an appointment for a loved one or for yourself.

Things to Think About

When you’re considering setting up an estate plan, it helps to go through your assets and family individually. This isn’t a small project. Estate plans also include directives for end-of-life and sick care. An estate plan can also include the appointment of a power of attorney. Make sure you talk with your family to keep them included in the estate plan. This is another reason why the holidays are the best time to take action. You’re already with your family, so that may help you get your bearings on how you want your estate plan to look.

Think in the Long Term 

Luckily, big project though it is, an estate plan is not a one-and-done deal. You and your attorney will create an estate plan together, but that certainly won’t be the end of the road. Families change over time, as do family dynamics. What you want at one point might not be what you want at another. Maybe you will decide to change your power of attorney or add on a new person to receive an inheritance. Again, this is a long-term process. While it doesn’t have to be arduous (and it usually is not), you don’t have to worry about getting it 100% complete the first time you take a crack at it.

Hopefully, we’ve managed to convince you (at least a little) of the benefits of including your loved ones in an estate plan this year. While this might not seem flashy, it is a gift that will last a lifetime—and beyond.

Thanksgiving is a time to give grace for what you have. Undoubtedly, at the top of almost everyone’s “Giving thanks” list will be their families and friends. Family and friends are what make our lives worthwhile, and we want to make sure that we provide for them even after we are gone. One way to do that is through estate planning. This Thanksgiving, give thanks in a tangible way by protecting your family long after you’re gone. Here is how: 

Using a Trust 

Trusts are one of the best ways to give thanks tangibly. A trust is a three-party relationship between a beneficiary, donor, and a trustee. The donor is the person who signs over title to the property to the trustee. The trustee is entrusted (see, some legal terms do make sense) with the property until a designated date. The date, picked by the donor, is the date on which the trustee transfers actual and legal title of the property to the beneficiary. The beneficiary is the intended recipient of the trust from the start.

Types of Trusts 

As with anything in the law, nothing is ever 100% straightforward, and there are many different types of trusts from which to choose. While these options might seem confusing, the variety of choices is actually a good thing. An estate planning attorney will be able to tell you which, in his or her professional judgment, is the best setup for you and your situation. 

We’ll talk about five common types of trusts today: revocable, irrevocable, asset protection, charitable, and constructive. 

Revocable v. Irrevocable Trusts 

As mentioned, a trust is a legal document. Trusts can be made revocable or irrevocable. Revocable trusts are not quite tools of asset protection in the same way that irrevocable trusts are. Revocable trusts are also called living trusts. With a revocable trust, the donor (person granting the property) still holds onto the ability to take away the property during their lifetime. However, once the donor dies, the revocable trust usually becomes irrevocable. 

A revocable trust helps you avoid probate. An irrevocable trust cannot be changed or removed by the donor. No one can take the property from the trust or modify the terms. It’s effectively set in stone.  

Asset Protection Trusts 

These types of trusts are designed to ward off claims from future creditors. This trust insulates your assets from creditors, and they are usually irrevocable for aa set term of years and the donor is not the beneficiary. The trust places the assets out of the hands of creditors. After a period of time, undistributed assets that were in the trust revert back to the donor. These undistributed assets usually are returned to the donor as long as there is no remaining creditors to try to take the property. 

Charitable Trusts 

If you have a charity that you really like, you might consider a charitable trust. These trusts can benefit a specific charity, or they can be used to benefit the public in general. These trusts are useful as a way to avoid gift or estate taxes. Consider these trusts both an altruistic tool, as well as a savvy financial one.

Constructive Trusts 

A constructive trust is the trickiest on this list, though it sounds deceptively simple on the surface. A constructive trust is implied. The court creates it based on certain facts. The court might decide, for example, that the owner of property intended to form a trust even though there was no formal trust document. Therefore, the court might honor the owner’s intent and distribute the property to someone else. Constructive trusts generally take fairness into account.

These are really just the basics. One good thing about estate planning law is that it doesn’t skimp on the types of tools and financial ways to protect your assets. There are many more ways you can transfer property to family members or friends, and consulting an estate planner is the best first step towards doing so.

According to Pew Research Center, there are approximately forty million Americans with special needs. This is about 12.6% of the population. Special needs has a very distinct legal definition by law, and the law has also evolved to ensure that families and friends are able to help special needs people carry out their lives as normally as possible. In this article, we’ll talk about the basic need-to-know information regarding special needs planning. 

What are “Special Needs?”

That question is very, very broad, and the law takes paragraph after paragraph to explain what it considers to be a special needs individual. Basically, there are two groups of people with special needs: children and adults. 

Special needs children are minors who require necessities and care that other children do not. This may be due to a physical, mental, and/or emotional disability. The state usually declares a child “special needs” for the purpose of offering them assistance and benefits to provide for the child’s well-being, which requires special attention to grow.

A special needs adult is an adult who has reached majority and has a mental, emotional, and/or physical disability. Often, these adults have carried over a developmental disability from childhood. As with children, the state designates adults as special needs for the purposes of providing benefits and assistance to help these adults maintain their well-being, as they are, to one degree or another, unable to do so in comparison to the non-special-need population.

Obviously, these definitions are not exhaustive. On paper, these definitions seem simple and somewhat understated, but caring for those with special needs is never quite so simple. 

What Can Special Needs Planning Include 

Special needs planning, such as setting up a special needs trust, provides for benefits that a beneficiary could not otherwise obtain because these aren’t covered by the government or by a private agency. These can include dental expenses, vision, special equipment, spending money, special dietary needs, and other costs that are essential to quality of life but may not be covered under social security or disability. A special needs trust allows you to provide for a special needs individual without defeating their eligibility for government assistance.

Setting Up a Special Needs Trust

A special needs trust allows you to set aside money and assets to be conferred to the special needs beneficiary at your direction. These trusts can be set up with the help of an attorney. Generally, such a trust will have a provision that will terminate it if the beneficiary would be made ineligible for government assistance as a result of the trust.

Who Can Best Benefit From Special Needs Planning 

Parents with special needs children are the main people who (aside from the beneficiaries themselves, of course) benefit from special needs planning. According to Pew Research Center, the most common disabilities are those that involve issues with independent living or walking. Over 20 million adults have “serious difficulty” walking. 13 million American adults also reported having serious cognitive impairments, while 14 million adults reported having major difficulties running errands alone. These independent living and mobility concerns mean that there are many small, niche costs and expenses that government assistance might not foresee. Therefore, providing for your child and helping them with independent or semi-independent living is one of the main reasons to set up a special needs estate plan.

Special needs is a whole field of law that consists of attorneys, educators, legislators, and advocates who fight to make sure that everyone in America is treated equally and given the same opportunities, regardless of ability. Some disabilities are visible, while others are invisible, but all special needs individuals should be cared for. Special needs planning will allow you to provide for your loved ones’ special needs after you’re gone, giving you peace of mind that they will be cared for.