Understanding the differences between a revocable and irrevocable trust

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Posted on 22nd May 2011 by admin in Probate

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In very simple terms, the main difference between a revocable trust and an irrevocable trust is that a revocable trust, as the name implies, can be revoked. An irrevocable trust cannot. It is crucial that the grantor (party who creates the trust) understands this difference when creating the trust. The differences in the legal and tax consequences of each are significant.

Revocable Trusts – Also referred to as a Revocable Living Trust or a Living Trust, the grantor maintains ultimate control of the trust. The grantor, at any time can change the trust or revoke it altogether. Since the grantor maintains ultimate control, the trust will still be considered a personal asset of the grantor for creditor and estate tax purposes. There are a few good reasons for creating a revocable trust:

  1. If the grantor becomes legally incapacitated, the trust can be managed by the Trustee instead of a court-supervised guardian or conservator.
  2. Trust assets would, upon the death of the grantor pass directly to the beneficiaries named in the trust agreement and outside of probate.
  3. By avoiding probate, the grantor can keep the details about trust assets private. Probate records are made public.

Irrevocable Trusts – An irrevocable trust is simply a trust that can’t be modified or revoked after the agreement has been signed. The reasons for creating an irrevocable trust include:

  1. For purposes of estate planning, irrevocable trusts are used to remove the value of property from the grantor’s estate. If the grantor no longer owns the assets they cannot be taxed upon death.
  2. An irrevocable trust can also be used for charitable estate planning. If the grantor transfers assets into the trust while living, the grantor receives a tax deduction for the tax year the contribution was made. Or, the transfer can wait until the grantor’s death, in which case, the grantor’s estate will receive the deduction.
  3. Another common use for an irrevocable trust is to provide asset protection. Similar to the tax planning concept, a creditor cannot claim assets if the grantor no longer owns them.

There are many more reasons for establishing revocable and irrevocable trusts than can be covered in the space of this article. The best course of action for anyone contemplating a trust would be to seek the advice of an experienced Trusts and Estates attorney.

This article is provided as information only and not intended as legal advice in any means or manner whatsoever, Attorney Adrian Philip Thomas is an Estate Planning Attorney in Florida , and has provided this for informational purposes only.

Hit and Run Accidents in the US – What You Have to Know

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Posted on 20th May 2011 by admin in Legal Info

A hit and run accident is an accident where the driver of an automobile hits a person, another vehicle or property and does not stop to identify themselves as having committed the act, or having been involved in the accident at all. There are roughly 700,000 hit and run accidents every year and they make up 11% of all car accidents in the United States.

The causes of hit and run accidents are the same things that cause most automobile accidents. Among those causes are driving under influence of drugs or alcohol, the driver being distracted, falling asleep behind the wheel, street racing, road rage and a lack of experience driving. The difference between most car accidents and hit and run accidents is the reason why the driver wouldn’t report it. In many cases, the drivers are committing a secondary crime, such as being unlicensed, uninsured, or driving a stolen vehicle and simply do not want to be caught.

The worst part about hit and run accidents is the progressive rise in their number over the past ten years. There are several possible reasons for this rise, such as the number of unlicensed drivers on the road increasing or the economy causing people to hold off in reporting the accident in fear that it could cost them a lot of money if they are proven at fault.

The severity of a hit and run accident in the eyes of the law, like with most laws, is entirely determined by the state which one lives. Some states see minor hit and run accidents where property isn’t damaged and nobody is hurt as a misdemeanor or no offense what so ever. Other states see it as a felony to commit any hit and run accident. Some states even set a price on where a hit and run accident becomes a felony.

Due to the amount of variation in the laws concerning hit and run accidents, it is a good idea to know the law in one’s state. To do so, it’s best to either contact a lawyer for legal assistance or ones local police department for clarification.

This article is provided as information only and not intended as legal advice in any means or manner whatsoever, Kenneth J Allen & Associates P.C. provides focused legal counsel and representation within the area of Auto Accidents and has provided this for informational purposes only.

Common Causes of Medical Malpractice

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Posted on 2nd May 2011 by admin in Legal Info

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When an illness or injury occurs, many people rely on the expertise of medical professionals to provide excellent treatment for recovery. However, since medical care providers are human, errors are possible for numerous reasons. Some of the common causes for medical malpractice are errors with medication doses, a failed diagnosis and surgical errors.

Estimates show that nearly 15 million medical mistakes occur in the United States annually, many resulting in medical malpractice lawsuits. Several types of medical professionals might commit medical malpractice. Typically, a hospital could be held liable when an employee commits malpractice.

Medication Errors

Many adults take a combination of over-the-counter medications, dietary supplements and prescription medications. Unless patients inform their physician about certain medicines, the physician may prescribe medication that interacts negatively with other medicines. Physicians should also know about previous diagnoses before prescribing medications. It is recommended that patients keep a list of all medications – including dosage information at all times.

Improper communication of medication orders at the pharmacy may also cause errors. These may include sloppy handwriting, similar drug names, improper use of decimal points and zeros and confusion about dosing units.

Misdiagnosis of an Illness

A delay in treatment or failure to make a proper diagnosis of an illness might lead to medical malpractice. This is particularly true if the delay or misdiagnosis causes an additionally injury or the progression of a life-threatening disease. Malpractice is a concern when a timely diagnosis could have halted the progression.

Another possible cause of medical malpractice occurs when a patient receives treatment for a condition or disease he or she does not have. The patient is harmed by the medication prescribed or treatment. While the patient receives treatment for the wrong condition, the real health issue is left untreated, possibly causing more harm.

In some cases, a misdiagnosis can occur because of poor communication between the physician and patient. Asking questions or receiving full explanation about treatments and diagnostic tests may stem the problems of medical malpractice.

Surgical Errors

Generally, thousands of patients suffer from surgical mistakes each year. Some of the surgical mistakes that occur include operating on the wrong side of the body, or operating on the wrong patient. Failure to discuss the details about a surgical procedure with the surgeon increases the risks of errors.

Laws regarding medical malpractice are typically for protecting the rights of patients who pursue compensation because of medical negligence. However, most medical malpractice lawsuits can become costly and complex.

This information is for general purposes only and is not a substitute for legal advice. A person should consult an experienced Connecticut Medical Malpractice Lawyer concerning a possible medical malpractice issue.