In this issue

Jonathan Tobin: Defending the Right to a Jewish State

Heather Hale: Compliment your kids without giving them big heads

Megan Shauri: 10 ways you are ruining your own happiness

Carolyn Bigda: 8 Best Dividend Stocks for 2015

Kiplinger's Personal Finance editors: 7 Things You Didn't Know About Paying Off Student Loans

Samantha Olson: The Crucial Mistake 55% Of Parents Are Making At Their Baby's Bedtime

Densie Well, Ph.D., R.D. Open your eyes to yellow vegetables

The Kosher Gourmet by Megan Gordon With its colorful cache of purples and oranges and reds, COLLARD GREEN SLAW is a marvelous mood booster --- not to mention just downright delish
April 18, 2014

Rabbi Yonason Goldson: Clarifying one of the greatest philosophical conundrums in theology

Caroline B. Glick: The disappearance of US will

Megan Wallgren: 10 things I've learned from my teenagers

Lizette Borreli: Green Tea Boosts Brain Power, May Help Treat Dementia

John Ericson: Trying hard to be 'positive' but never succeeding? Blame Your Brain

The Kosher Gourmet by Julie Rothman Almondy, flourless torta del re (Italian king's cake), has royal roots, is simple to make, . . . but devour it because it's simply delicious

April 14, 2014

Rabbi Dr Naftali Brawer: Passover frees us from the tyranny of time

Greg Crosby: Passing Over Religion

Eric Schulzke: First degree: How America really recovered from a murder epidemic

Georgia Lee: When love is not enough: Teaching your kids about the realities of adult relationships

Cameron Huddleston: Freebies for Your Lawn and Garden

Gordon Pape: How you can tell if your financial adviser is setting you up for potential ruin

Dana Dovey: Up to 500,000 people die each year from hepatitis C-related liver disease. New Treatment Has Over 90% Success Rate

Justin Caba: Eating Watermelon Can Help Control High Blood Pressure

The Kosher Gourmet by Joshua E. London and Lou Marmon Don't dare pass over these Pesach picks for Manischewitz!

April 11, 2014

Rabbi Hillel Goldberg: Silence is much more than golden

Caroline B. Glick: Forgetting freedom at Passover

Susan Swann: How to value a child for who he is, not just what he does

Cameron Huddleston: 7 Financial Tasks You Should Tackle Right Now

Sandra Block and Lisa Gerstner: How to Profit From Your Passion

Susan Scutti: A Simple Blood Test Might Soon Diagnose Cancer

Chris Weller: Have A Slow Metabolism? Let Science Speed It Up For You

The Kosher Gourmet by Diane Rossen Worthington Whitefish Terrine: A French take on gefilte fish

April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review Jan. 17, 2006 / 17 Teves, 5766

Consider the risks of premarital agreements; the charitable remainder trust is underutilized planning tool

By Jan L. Warner & Jan Collins

Printer Friendly Version
Email this article

http://www.JewishWorldReview.com | Q: I'm thinking about getting married to a man who has been married twice before. This would be my third marriage, as well. Each of us has grown children. Although he has had some financial reversals, including a bankruptcy and tax liens, he appears to be doing fine now. Since we met last year, he has been very generous to me financially, and says he will continue to be. When we decided to marry, I became nervous and thought it would be a good idea to get a premarital agreement, but he has balked. He says we don't need one, and has threatened to walk away if I don't trust him. Is there any way, short of an agreement, for me to protect myself? I am 71 and he is 64.

A: While premarital agreements may be binding between husband and wife, third parties — like the IRS — are not bound. In addition, there are other potential problems, including: (1) Without a waiver of estate rights, your spouse will be entitled to receive an "elective share" — generally one-third — of your estate, no matter what your will provides; (2) If you file joint income tax returns with your spouse during your marriage, you could well be signing a note to be responsible for past due taxes, interest and penalties that you may not even know about; (3) Under the "necessaries doctrine," you will probably be responsible for your spouse's medical and other bills when his funds run out; (4) If your spouse enters a nursing home and spends all of his assets before he will be able to qualify for Medicaid you will be required to spend down your assets to the maximum allowed in your state; (5) By being financially generous to you during marriage — and possibly before — he could be gaining an equitable interest in your property. If you live in a community property state, different rules may apply.

Bottom Line: If your husband-to-be has had tax liens and a bankruptcy, we think you are getting yourself into a risky situation, with or without a premarital agreement. We strongly suggest that you contact an experienced lawyer in your state to help you make some decisions. However, based on your boyfriend's track record — and, frankly, yours when it comes to marriage — our gut reaction would be to let him walk away. Q: Like many middle-class seniors who are on fixed incomes, my wife and I are having difficulty making ends meet. We own our home and have liquid resources of $150,000. We also have my IRA of $75,000, one automobile, and some antiques that we inherited.

We don't want to withdraw our cash to pay current bills because we may need it later (we are in our early 70's), but we do need more cash flow every month. We had our antiques appraised at $150,000 and while we don't want to sell them, it looks like that is our only choice. However, we are told that if we sell the antiques, we will have to pay federal and state capital gains taxes — which we don't want to do. Are there other alternatives for us?

A: Aside from a reverse mortgage on your home that could be used to create an equity line to draw on to pay extra expenses (such as annual insurance premiums, property taxes, etc.), an underutilized planning tool when folks need more cash flow and have appreciated assets is the charitable remainder trust.

Long used to reduce estate taxes, these trusts can be used in appropriate circumstances to create additional cash flow — without payment of capital gains taxes — through the sale of appreciated assets. The charitable remainder trust provides the donor with an income tax deduction, to boot!

There are two types of charitable remainder trusts — a unitrust (CRUT) and an annuity trust (CRAT). In a thumbnail sketch, here's how a charitable remainder trust works:

If you decide to sell $150,000 worth of antiques that have a cost of, say, $50,000, you could contribute the antiques to the irrevocable charitable trust and, in turn, the trustee would sell the antiques without paying capital gains taxes on the $100,000 gain. The trustee would then invest the total sales proceeds of $150,000. Each year — depending on whether you prefer to receive the same amount every year (CRAT), or a percentage of the value of the trust assets each year (CRUT) — you would receive distributions based upon the life expectancies of you and your wife, or of just one of you. The trust does not pay income taxes, and you will be able to deduct the value of the remainder interest as a charitable contribution. After the death of the last beneficiary, the balance remaining in the trust — called the remainder — would be distributed to the charity you choose. Once you contribute to the trust, you can't take back your property. You can act as grantor, trustee and beneficiary.

Taking the NextStep: This is a rather complicated process, and you should consult with qualified lawyers and tax professionals and understand all ramifications before you act. In addition, if either you or your wife enters a nursing facility in the future and all assets are used up and an application for Medicaid is made, the gift to the charity may result in a period of disqualification, especially under the draconian bill now before the U.S. House of Representatives.

Every weekday JewishWorldReview.com publishes what many in in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.

JAN L. WARNER received his A.B. and J.D. degrees from the University of South Carolina and earned a Master of Legal Letters (L.L.M.) in Taxation from the Emory University School of Law in Atlanta, Georgia. He is a frequent lecturer at legal education and public information programs throughout the United States. His articles have been published in national and state legal publications. Jan Collins began co-authoring Flying SoloŽ in 1989. She has more than 27 years of experience as a journalist, writer, and editor. To comment or ask a question, please click here.


© 2006, Jan Warner