The Martin Law Firm Blog

1.  Encourage your children to talk openly about their feelings.

2.  Emphasize that the divorce was not their fault.

3.  Understand that your children's behavior may reflect feelings of anger, fear, confusion, sadness and loss.

4.  Be honest with your children about the finality of divorce according to what is age appropriate.

5.  Keep your children informed about family-life changes such as moving, visitation, activities, schedules, etc.

1. 1.  How long have you practiced law in the area of divorce?

1. 2.  What is your strategy for my case?

1. 3.  How long will it take to resolve my case?

1. 4.  How long do you take to return phone calls?

1. 5.  Will anyone else in your office be working on my case?  What experience do they have?

1. 6.  What is your hourly rate?  What is your retainer up front?

1. 7.  What costs other than your own do you expect will be involved (for example, for private investigators, forensic accountants, physicians and/or psychologists), and how much will you charge me for them?

1. 8.  What is your estimate of the total cost to me of this divorce?  (Do not be alarmed that most divorce attorneys will resist answering this question as the cost of divorce depends greatly upon the level of conflict in your case.  However, the way in which the attorney answers this question may help you size up the attorney.  An honest attorney will often answer that it is difficult to estimate the costs in advance.  An attorney that gives you an unrealistically low amount may just be trying to get your business).

1. 9.  How can I keep the cost of my divorce down?  Are there tasks that I can do myself to cut down on the amount you will charge me?

1. 10.  Based on what you know about my case, how would you predict a judge would rule on it?

     Life insurance is a highly useful tool in the estate planning process.  Life insurance can provide liquidity to an estate, thereby avoiding forced sales of assets at depressed prices to pay estate taxes.  In addition, life insurance can replace the lost income of a decedent and meet the immediate and future needs of surviving family members.

     Oftentimes, an individual with a significant amount of life insurance must take that into account in developing his or her estate plan.  Even though Pennsylvania's Inheritance Tax exempts life insurance proceeds, federal Estate Tax does not; therefore, a decedent's estate may be subject to estate tax as a result of the life insurance.

     One method of reducing the estate tax exposure for life insurance is through the use of an Irrevocable Life Insurance Trust ("ILIT").  Properly structured, the ILIT can result in large amounts of insurance proceeds passing to children and even grandchildren without estate tax in either the insured or the insured spouse's estate.  Simply put, the insured establishes an irrevocable trust that serves as both the owner and the beneficiary of one or more life insurance policies.  The insured selects and determines those beneficiaries whom the insured wishes to receive the proceeds after his or her death, typically spouse and children.  If properly established, the proceeds payable from an ILIT avoid federal estate taxes.

     Establishing and maintaining an ILIT entails a host of necessary formalities.  This is why an individual should seek the assistance of an experienced estate planning attorney.  The following sets forth the eight (8) essential steps for properly establishing and maintaining an ILIT:

Step 1:  Preparation of the Irrevocable Trust Agreement.

What is the Gift Tax?

     The  gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return.  The tax applies whether the donor intends the transfer to be a gift or not.

     Generally, the following gifts are not taxable gifts:

1.  Gifts that are not more than the annual exclusion for the calendar year.