Latest news with #assets
Yahoo
a day ago
- Business
- Yahoo
How prenups and postnups can benefit married couples – and what to watch out for
Pre and postnuptial agreements have become increasingly popular in recent years as couples seek to protect their assets and ensure financial clarity in the event of a divorce. As a senior associate in the family law team at Knights, I've seen first-hand how this shift has only fuelled misconceptions on the key rules and benefits when using these legal instruments, which heightens the emotions of the parties entering a formal relationship arrangement. Some couples can benefit from having a nuptial agreement but it's vital to know how they work before signing on the dotted line. Here are some of the key questions I commonly receive from clients considering some form of nuptial agreement. A prenuptial agreement is entered into before marriage, setting out how a couple agrees to separate their finances if they later divorce, whereas a postnuptial agreement is entered into after marriage. Prenuptial agreements are often used where one spouse is much wealthier than the other, has an asset they want to protect such as a property or business, or is anticipating coming into wealth during the marriage – such as from an inheritance. The agreements aim to provide for something other than an equal division and pooling of the assets. The premise of a postnuptial agreement remains the same: to regulate how assets will be divided in the event of a divorce. There are two main scenarios where a postnup might come into play. One is when someone who is already married anticipates that they will come into some wealth during the marriage and wants to ensure that this wealth is not shared equally with their partner. Another scenario is when a couple has already entered into a prenuptial agreement, but one or both partners wish to review and change the terms. Prenuptial and postnuptial agreements are living documents that should be kept under regular review – such as after five years or after significant life events or changes in circumstances, like the birth of a child. One common misconception is that these agreements are only for the wealthy. In reality, they can be beneficial for anyone who wants to protect specific assets, ensure financial clarity, and reduce the potential for conflict in the event of a divorce. Another misconception is that these agreements are unromantic or indicate a lack of trust. On the contrary, they can actually provide peace of mind and strengthen a relationship by ensuring both parties are clear about their financial expectations and responsibilities. The courts have ultimate discretion over how assets are divided upon divorce. Pre or postnuptial agreements cannot fully override this discretion and therefore are not legally binding. However, if the agreements follow a proper process – including full financial disclosure, separate legal advice for both parties and a fair and reasonable negotiation – they are likely to be upheld. While these agreements must be fair and transparent, they provide a strong framework for how assets should be divided, and courts typically respect them if they meet these criteria. Yes, pre and postnuptial agreements can include provisions that each party is responsible for their own debts and not liable for the other's debts. While it's difficult to predict such scenarios, these agreements can stipulate that personal debts remain the responsibility of the individual who incurred them. Overall, the outcome of the agreement must be fair and meet both parties' financial needs and those of any children of the family. Common assets that are often protected in pre and postnuptial agreements include family businesses, inherited wealth, property, and trust funds. For example, a family business can be preserved for future generations by ensuring it is not diluted in a divorce. Similarly, a personal injury settlement intended to cover lifelong care and living expenses can be protected to ensure it is not diluted in the event of a divorce. If you want to organise a prenup you should do so well ahead of your wedding. Ideally the agreement should be signed off more than 28 days prior to the wedding date. If an agreement is entered into too close to a wedding, this can lead to it not being upheld as it can suggest that potential duress is at play. Agreements may also not be upheld if the financial information provided is not accurate – and particularly if one or both partners were found to have withheld disclosure of an asset. Make sure everything is included, and that you're both honest about your financial situations. Prenuptial agreements should generally be reviewed after five years or upon certain trigger events, such as the birth of a child. It is important that the agreement reflects the financial circumstances and needs of both partners, as if it is out of date this could be a reason it will not be upheld. The review process ensures that the agreement remains fair and relevant to the couple's current circumstances. If necessary, the terms can be updated through a postnuptial agreement to reflect any significant changes. Yes, pre and postnuptial agreements can include provisions to protect future inheritance. This is particularly important in families where assets are intended to be passed down through generations. By setting out clear terms regarding inheritance, couples can prevent potential disputes and ensure that family assets are preserved for future generations. These agreements can be structured to protect the interests of children from previous relationships. For instance, they can ensure that certain assets are preserved for the benefit of these children, rather than being divided in the event of a divorce. This is especially important in blended families, where financial arrangements can be more complex. Pre and postnuptial agreements are valuable tools for couples seeking to protect their assets, ensure financial clarity and reduce potential conflicts. By understanding the benefits and legal nuances of these agreements, couples can make informed decisions that contribute to a more secure and harmonious marriage. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Washington Post
2 days ago
- General
- Washington Post
Asking Eric: Husband and wife divided over stepchildren's inheritance
Dear Eric: My husband and I just turned 80. We are in good health but began talking about estate planning. We each have two children from previous marriages, and at first this was an easy fix. After considering donating to nonprofits, we thought the rest of our assets would be equally divided among our children.
Yahoo
2 days ago
- Business
- Yahoo
What is estate planning?
Estate planning is the process of legally deciding who receives your assets following your death and how they need to settle your affairs. Making an estate plan can be valuable for anyone who has any assets, though different types of plans can be more beneficial for those with more wealth. Estate plans help make things easier for your loved ones and ensure that your assets go to the people you want to have them. Estate planning is the process of arranging who will receive your assets when you die. One goal of estate planning is to make sure your wealth and other assets go to those you intend to receive them — and not to others — with a particular emphasis on minimizing taxes so that your beneficiaries can keep more of your wealth. Here's a rundown on estate planning and why you and your loved ones absolutely need it, regardless of how much wealth is involved. Your estate is the accumulation of everything you own: your car, real estate, checking accounts, savings accounts, furniture, life insurance, investments and personal possessions, such as artwork or jewelry. Estate planning involves deciding who receives those assets following your death, how the process of moving your wealth will be legally administered and who will do so. Unfortunately, many people fail to establish an estate plan, even those who would benefit significantly from it. There's an extreme lack of estate planning among people of all levels, says Jenny Xia Spradling, co-founder of FreeWill, a site that creates legally binding wills and trusts at no charge. But good estate planning can also reduce family strife and provide clear end-of-life directives should an individual become incapacitated before ultimately passing away. Get started: Match with an advisor who can help you achieve your financial goals Estate planning can come in a variety of forms, from basic beneficiary designations when you open a bank or brokerage account to more complex and comprehensive plans. Below are a few of the most common elements of an estate plan and what you might want to consider. Pros: Easy to set up at financial institution, can be changed at any time, supersedes any other plans Cons: Supersedes any other plans, so if you don't keep it updated, your wishes may not be carried out Who is it good for: Anyone with a financial account, regardless of wealth Whenever you open a financial account, typically a bank, brokerage or insurance account, you'll be asked to provide a beneficiary for the account. The beneficiary is first in line to receive any funds from the account on your death. You may divide your assets among multiple beneficiaries, if you wish, and name contingent beneficiaries in case the primary beneficiaries are not alive. Naming a beneficiary is quite important: Your beneficiary designation typically supersedes any other declaration in your estate. That's why experts urgently recommend you to name your beneficiaries. If you die without a will, accounts with named beneficiaries may at least still go directly to your heirs. Pro tip: Don't forget about your investing accounts. If you have retirement or brokerage accounts, those can all pass to beneficiaries designated within those specific accounts too. Get started: How financial advisors can help with estate planning Pros: Can be relatively easy to set up, needn't be especially expensive, can be done via free online sites, especially basic wills Cons: Estates could be stuck in probate, can be superseded by beneficiary designations, estates can be made public Who is it good for: Anyone with assets, regardless of how much A will is another key document in the estate plan. At death, it directs where the assets go that you own individually that lack a designated beneficiary. Without a will, the government gets to decide how everything is split and who takes guardianship of children and pets, a process that can vary by state. Property that's owned jointly, such as with a spouse, passes directly to the surviving owner or owners. An executor will be appointed by the court to carry out the will and manage the distribution of assets when the time comes. 'Wills have been around for a long time and it doesn't take a lot to make a will,' says FreeWill's Xia Spradling. 'The legal code was actually designed to be easy for people to make their last wishes known.' Wills that come into effect are examined in probate court, a public process that allows potential creditors to make a claim against the estate. Only after the estate is settled with creditors will the remaining assets be distributed to heirs in accordance with the will. Probate can be a notoriously tortuous process, and it's not unusual for probate to take a year or even two to be completed. And it could be pricey as well, with fees of up to 5 percent of the estate. Wills can be a cornerstone of an estate plan, but many people are turning to trusts these days because they can make settling the estate much less cumbersome, tricky and slow. Pros: Can help speed estates to settlement, keeps estates private, can help mitigate taxes Cons: Can be pricier to set up, especially for complex estates, requires legal expertise Who is it good for: Those with more significant assets to protect and pass on Trusts come in many varieties, and while it may sound complex, a trust is relatively simple at its core. A trust is a legal vehicle that allows a third party, the trust, to hold assets on behalf of a beneficiary. Trusts allow you a number of estate-planning options, not least of which is the ability to sail through probate court while maintaining a relatively high level of privacy. Trusts allow you to control how your assets are directed after your death, not only to whom the money will be given but also under what circumstances. This control can be a valuable feature when directing assets to individuals with questionable ability or maturity to handle money. You can also choose the trustee(s) you want to manage and direct the trust on your passing. While trusts can be complex, one of the simplest and easiest to execute is the revocable trust. Such a trust helps shepherd your assets through probate and directs the assets according to your wishes. You can even serve as the trustee and make changes during your lifetime. Trusts become worthwhile with surprisingly little money, as well, with at least one expert suggesting they begin to make up for the start-up costs for those who have at least $150,000 in assets. More complex trusts with various stipulations (such as keeping spouses or profligate children at bay) may require the expertise of a skilled lawyer. And of course, you can also use trusts to bypass at least some taxes, one of the reasons for the perennial popularity of trusts. Pros: Specifies your health care choices if you're incapacitated Cons: Your decision may change when you're incapacitated but you may not be able to change the plan Who is it good for: Anyone Death is not the only situation in which you may be unable to make a decision. You may be alive yet incapacitated, and in this scenario it's quite useful to have a clear statement of your wishes. That's where a living will can be valuable, because it lays out your end-of-life care, including specific medical treatments to take or refrain from taking. A living will is often combined with a durable power of attorney and sometimes an advance medical directive. A durable power of attorney can serve as your financial proxy if you are living and can no longer manage your affairs. A medical or health care power of attorney manages your medical care if you can't. An advance medical directive is the combination of a power of attorney for health care, a living will and HIPAA release forms. An advance health care directive describes what medical procedures you do or don't want and who has the right to make medical decisions for you if you can no longer make them yourself. You'll need to figure out all your assets, including all financial accounts, as well as all tangible assets, such as cars, furniture, paintings and other collections. It can be helpful to document everything for heirs so that it's easier for them to find all the accounts and items. Anything that's missing from the list may not be subject to your will. As you compile your assets, gather the necessary documents too. Keeping these documents updated and organized can save your family and your executor a lot of time and stress. You may need: Real estate deeds Bank account information Investment account information Safe deposit box documentation Information about cryptocurrency you hold Certificates for stocks, bonds and annuities Information on retirement plans: 401(k) accounts, IRAs and pensions Funeral prepayment plans Instructions for any final arrangements Your debts: credit cards, loans, mortgages or utilities Tax information Insurance policies Any information on military death benefits In addition to keeping these documents organized, make sure that your power of attorney and the executor of your estate are legally allowed to have access to these documents and have the necessary information, such as usernames, passwords and access codes. It can be useful to establish contingency plans for your family, in case you and/or a spouse pass away earlier than expected. You can name guardians for minor children, set up life insurance and determine who is willing to act as executor for your estate. You'll need at least a will, a power of attorney and a living will (also known as an advance health care directive). You may also want to name a health care power of attorney to carry out your medical wishes. The will directs where your assets go and who will distribute them, while the power of attorney allows a confidant to take care of your affairs if you're unable. Power of attorney expires at death though. The living will allows you to specify your health care wishes if you're incapacitated and unable to make the decision at the time. A health care power of attorney grants someone the authority to make decisions for you based on the living will or advance health care directive. Once your plan is established, you need to review it regularly. You may have opened new financial accounts and closed others. Your family situation may be different or you may simply want some assets to go to someone else instead. If you don't keep your plan up to date, your heirs will not be able to adjust your will after your death. These are the core steps for setting up an estate plan, though you'll want to carefully consider other aspects of a plan with this checklist for estate planning. Get started: Match with an advisor who can help you achieve your financial goals Estate planning helps you avoid many unfortunate situations, and while it can take some time and money upfront, you can avoid many worse problems later on. For example, if you don't provide a clear estate plan, the state will do what appears best in its judgment, which is unlikely to coincide with what you would choose to do. Don't leave your estate up to the state. If you plan ahead, you can minimize the amount of your estate that goes to Uncle Sam and maximize the amount that goes to Aunt Sally. Clever structuring of flexible retirement accounts such as a Roth IRA, can help funnel more tax-free money to your heirs, while other tax-planning strategies such as strategic charitable giving can help you mitigate the tax bite. Now is a particularly advantageous time for a Roth IRA conversion due to some changes in the tax code and historically low tax rates, though this strategy won't work for everyone. Your family may normally get along well, but it's still wise to write a will so that things remain that way. The possibility of a cash grab may rile up some relatives, while others may hide a sentimental treasure that they hope goes unnoticed. Regardless of your wealth, careful estate planning helps prevent your family from squabbling, whether it's a little tiff or an all-out lawsuit. When you don't have an estate plan, your family will be forced to jump through quite a few government hoops in order to distribute your assets. An estate plan can minimize taxes and expenses and help your loved ones avoid legal hassles. Plus, an estate plan may be designed to prevent your assets from becoming public, which can protect your family's privacy. A good estate plan can also protect your heirs in a number of ways. If your children are minors, your estate plan can instruct who will take care of them and how they will receive money. It can also protect heirs from recrimination if a relative would otherwise accuse them of stealing. A living will can also help heirs avoid some of the difficult health decisions during a parent's end of life. Learn more: When to get a financial advisor Part of the value of the will is telling people how you feel about them and what they meant to you, says Xia Spradling. You may have always intended for your niece to get that heirloom, but unless it's written out in the estate, anyone can make a dash for it. An estate plan ensures your assets go to the person you want to have them. By clearly spelling out your wishes — often with the help of a lawyer — you can help your loved ones remember you fondly or at least get what you intended. Set up your estate right — think, a well-crafted trust — and you'll sail through probate court, likely the most annoying and time-consuming step of the entire process. Because of the ease of using a trust, more and more people are doing an end-run around the hassles of probate and setting up their estate this way. Plus, you don't need as much wealth as you might think to make it worthwhile. Trusts can also be a valuable way to ensure that your money stays in the family. Structured correctly, a trust can keep a spendthrift nephew from blowing your lifetime of hard work in a few years. It may also keep money in the family if an ex-spouse tries to extract some of it. Whether you're providing financial security, planning for your final memorial or burial services, supporting a cause you care about, or passing on traditions and values, an estate plan also helps you leave behind a legacy for your family to hold onto. Planning ahead and keeping your will and other legal documents up-to-date will ensure that your family and loved ones are well taken care of and in the family, no matter what. Estate plans are important and there are plenty of ways to get the basic elements of your plan together at a low cost on your own. But it's easy to make mistakes along the way — and those mistakes could cause additional stress and turmoil for your loved ones after you're gone. Here are a few estate planning pitfalls to watch out for. Avoiding the process: It's never too early to create an estate plan, and waiting until a health crisis or other emergency strikes can leave you unprepared. Not speaking with a lawyer: While the internet is a great resource, it's not an ideal place to get legal advice. Trying to make an estate plan on your own can lead to incomplete or faulty documents, and potential legal problems down the road for the heirs. Speaking with an estate planning attorney is always a smart move. Not sharing your estate plan: Not talking about your estate plan with your loved ones — or at least telling them where they can find a copy of the plan after you pass away — can lead to misunderstandings and disagreements after you're gone. Ignoring digital assets: Make sure to include digital assets, like who will manage your social media accounts and who will inherit your cryptocurrency holdings, in your estate plan. Not updating your plan: Major life changes — such as marriage, divorce, the birth of a child or the death of a family member — are ideal times to update your estate plan. Failing to do so can lead to potential legal battles among family members. A change in accounts or assets can also be a good time to update your plan. Not including debt: When you die, debt is taken out of your estate's total worth if not accounted for. This can include credit card debt, personal loans, tax debts, outstanding auto loans, student loans and even mortgages. An estate plan is not something you put together and then never touch again. Your estate plan can and should be molded to fit your changing needs throughout your life. Here are a few major life events that should cause you to re-evaluate your estate plan to make any necessary changes: Getting married Having children Large purchases such as buying a house Getting a divorce The death of a spouse or child Opening new financial accounts Changes in beneficiaries Changing jobs Increasing or decreasing income Inheritance Moving to a different state Purchasing real estate in another state A major change in tax laws Plans to make a large gift Estate planning can help prevent a number of potentially troubling problems from arising, even if you don't have a lot of money. By determining how you want to handle your estate before you pass, you'll save your loved ones a lot of effort, money and grief when it comes to dividing your estate. And more importantly, you'll get what you want, even if you're not around to see it. Explore: What to do when you're the executor of an estate
Free Malaysia Today
3 days ago
- Business
- Free Malaysia Today
Prosecution seeks to freeze RM1.1bil in Jersey assets linked to Daim's widow
Naimah Khalid is said to hold US$157.5 million (RM667 million) and 85 million pounds (RM490.7 million) in assets allegedly acquired in Malaysia but not declared to the tax authorities. (Bernama pic) PETALING JAYA : The prosecution has applied to the High Court to block Naimah Khalid, the widow of former finance minister Daim Zainuddin, and her associates from dealing with assets worth more than RM1.1 billion located in Jersey, a British crown dependency. Deputy public prosecutor Maziah Mohaide said the ex parte application was filed under Section 53 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Amla), The Edge reported. She said the application comes after investigations conducted under Section 113 of the Income Tax Act 1967 and Section 4(1) of Amla. 'This follows assets obtained by Naimah or her associates in Malaysia that have not been declared to the Inland Revenue Board. These assets are worth approximately US$157.5 million (RM667 million) and 85 million pounds (RM490.7 million) in Jersey,' she was quoted as saying. However, Naimah's lawyer, Syed Afiq Syed Albakri, has applied to intervene in the case and asked the court to serve the cause papers to his client. He said there had been two earlier attempts this month to freeze her assets through separate High Court applications. 'In the interest of natural justice, we should be allowed to intervene and get the cause papers. We also seek the prosecution to inform us of any attempt to apply any prohibitory orders,' he said. Justice Jamil Hussin directed Syed Afiq to file a formal intervention, which will be heard on Aug 22. This is the third attempt by the prosecution to freeze Naimah's overseas assets, following earlier bids to block 132 million pounds in the UK and RM544 million in Singapore. Naimah, currently facing an asset declaration charge, is accused of failing to declare her ownership in various companies, several plots of land in Kuala Lumpur and Penang, and two vehicles.
Globe and Mail
4 days ago
- Business
- Globe and Mail
LPL Financial's May Brokerage & Advisory Assets Rise Y/Y
LPL Financial LPLA witnessed a rise in total brokerage and advisory assets in May 2025. The metric was $1.85 trillion, which grew 3.7% from the prior month and 26.5% year over year. LPLA's Performance Breakdown Of LPLA's total assets, brokerage assets were $832.9 billion and advisory assets amounted to $1.02 trillion. Brokerage assets rose 2.9% from April 2025 and 26.8% year over year. Advisory assets were up 4.4% from the previous month and 26.2% from May 2024. Total net new assets (NNAs) were $6.5 billion in May. Total organic NNAs were $6.5 billion as well, including $1 billion off-boarded assets as part of the previously disclosed planned separation from misaligned large offices of supervisory jurisdiction. Excluding these assets, organic NNAs were $7.5 billion. The company reported $49.2 billion of total client cash balance in May, down 5% from the prior month but up 10.6% from May 2024. Of the total balance, $33.4 billion was insured cash, $10.6 billion was deposit cash, and the remainder was money-market sweep and client cash balance. Our Take on LPLA Stock LPL Financial's impending acquisition of Commonwealth Financial, the buyouts of Investment Center and Atria Wealth, and solid advisor productivity and recruiting efforts are expected to bolster advisory revenues. However, uncertainty about the performance of the capital markets and substantial goodwill on the balance sheet are headwinds. In the past three months, LPLA's shares have risen 9.3%, outperforming the industry 's growth of 7.8%. Currently, LPL Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Performance of LPLA's Peers in May Charles Schwab SCHW released its monthly activity report for May 2025. The company's total client assets were $10.35 trillion, up 12.4% from May 2024 and 4.6% from April 2025. SCHW's client assets receiving ongoing advisory services were $5.24 trillion, growing 12.6% from the year-ago period and 3.9% from the prior month. Interactive Brokers Group, Inc. IBKR released the Electronic Brokerage segment's performance metrics for May 2025. The segment deals with the clearance and settlement of trades for individual and institutional clients globally. It reported a rise in client Daily Average Revenue Trades (DARTs) from a year ago. IBKR's total client DARTs in May were 3,384,000, representing a 43% increase from May 2024 but an 11% decline from April 2025. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> The Charles Schwab Corporation (SCHW): Free Stock Analysis Report Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report
