Law Office of Angela Barker, LLC
In This Issue:

Tax-Free Accounts for First-Time Home Purchasers
  
Are You Ever Too Old to Make a Will?

Beware the Perils of the Pre-Nuptial Agreement

More Women Paying Spousal Support to Their Former Husbands
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Tax-Free Accounts for Homes   

For years we have had tax-free accounts for savings for college and retirement.  Recently a coalition that includes real estate developers and investors has suggested the idea of tax-free accounts that would enable you to save towards to down payment of a home.

 

Not withstanding the real estate crises, home ownership is still the number one wealth generator for families.  However, many lenders are demanding that prospective home buyers make a deposit or down payment of 20% of the purchase price of a home. For first time home buyers in the Northeastern states, such a down payment amount can easily top $50,000 to $100,000.

 

Proponents of the plan argue that the tax-free savings accounts would make it easier for potential home buyers to save for a down payment.   The program would be limited to first-time buyers who could make pretax contributions to such an account for up to 10 years. 

 

Tax-free savings plans for first time home purchasers are a good idea because it serves as an incentive to save.  Of course, it is only one small solution towards the home ownership crises we are now facing, but it is definitely a step in the right direction. 

  

For more information please see: Tax-Free accounts for Homes
By:  Lisa Prevost
"The New York Times" August 8, 2013



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A Family Law, Wills & Trusts and Real Estate Newsletter
September 2013
Greetings!  

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Thank you for taking the time to visit my website and reading this newsletter. 

Summer is over and Fall is upon us infusing the air with a feeling of excitement for transition and new beginnings. September always finds me inspired and looking forward to new challenges. I suspect that the yearly pattern established by my having spent over 9 years in post-high school education in addition to elementary and high school, and having been a teacher for 6 years prior to practicing law, has taught my spirit that September is the time for me get back into high gear after taking the time off to rest and renew in August.
  
Hopefully, you too have had the opportunity to rest and renew and are ready to make some decisions that would enable you to continue on your road towards reaching your full potential and the goals you have set for yourself.  
  
Life is a series of transitions, and at the Law Office of Angela Barker, LLC, we are committed to helping ease the transitions through the various life stages: whether it be a change in the family structure as a result of death, marriage, divorce, or separation. We are there for you as you buy or sell your home, and we assist our clients in planning for their loved ones' golden years and help them pass their assets on to the next generation. People are our business. For the benefit of our clients and the communities we serve, we have developed this newsletter as a legal and consumer resource. Enjoy!    
  

Beware the Perils of the Pre-Nuptial Agreement
The average age of first marriages in the United States is increasing with many first-time marriages now taking place between couples in their late twenties and early thirties. By then, many prospective spouses have accumulated significant assets that they would like to protect in the event of a divorce. To safeguard these assets many enter into pre-nuptial agreements. Pre-nuptial agreements, may include, among other things, provisions for property division and spousal support in the event of a divorce.
 
Pre-nuptial agreements are very common and absent fraud and duress are often upheld. However, they must be carefully drafted. Close attention must be paid to every detail of the execution of a prenuptial agreement, and state law governing them must be precisely followed.
 
A recent case from New York State illustrates the importance of precision. In that case the parties, now seeking a divorce, entered into a pre-nuptial agreement. Each party agreed that they read and signed the agreement. Each party agreed that they understood the agreement and each party agreed that there was no duress, fraud or any other issues in the drafting and signing of the agreement. However, the wife sought to void the prenuptial agreement on the basis that the notary public who witnessed her husband's signature on the agreement did not comply with all the formalities required by New York State. The court agreed and voided the pre-nuptial agreement. The lesson that must be learned is that courts will scrutinize pre-nuptial agreements very carefully, so extreme care must be taken in the drafting and signing of pre-nuptial agreements to ensure that all requirements of the law are complied with.  

Are You Ever Too Old to Make a Will?

Huguette Clark, a copper mining heiress, signed a Will at the age of 98.  She died six years later at the age of 104.  In that Will she gave the bulk of her $300 million estate to various non profit groups, including a hospital (where she lived for 20 years prior to her death) and an art gallery.  She also left significant sums to her longtime nurse, her goddaughter, some employees and her attorney.

Ms. Clark's bequest in her most recent Will was a dramatic departure from her previous Will executed six weeks earlier.  In that Will she have the bulk of her estate to 21 distant relatives.

Of course Ms. Clark's relatives have sued, claiming that the second will should be thrown out and that the first Will should be recognized as Ms. Clark's last Will and Testament.

The case is currently in court awaiting trial.  Whatever the outcome, the facts of the case are unfortunately very similar to many cases where it is alleged that the decease was taken advantage of by their caregivers and others close to them whether or not there is evidence to support that claim.  

In these cases, the elderly person is vulnerable due to chronic illness and decreased mental capacity.  Moreover, they are often isolated from their friends or relatives with their caregiver being the only source of regular contact. These conditions are ripe for exploitation of the person and the misuse or outright theft of that person's assets.

You are never too old to make a Will. But for a court to recognize a writing as a valid Will, it must ensure that the Will was signed by the deceased at a time when that person had the mental capacity to enter into the Will, and that the person was not in any way forced to sign a Will that was not in keeping with their wishes.

More Women Paying Spousal Support to Their Former Husbands

More women are now paying spousal support to their former husbands. This increase is attributed to the growing number of women who are the primary breadwinners in the household and the increasing role of men in the raising of children. In many families, men are performing the majority of the child-rearing responsibilities.
 
Women are often shocked when they are told that they now have to pay spousal support to their former spouses. Many declare that they were the primary breadwinners not by choice, but because their spouses either could not find a well-paying job, or because they refused to work. Whatever the reason for one spouse earning more than the other, it is imperative that women understand that when it comes to making a decision to award spousal support, courts will look to what was the status quo of the marriage. Therefore, the party that was the major breadwinner in the marriage, regardless of gender, will be often be the one charged with supporting the non-earning or low-earning spouse.
 
As in all things, in marriage, it is essential that both parties are clear as to the roles each will pay.  The argument: "I told my spouse to work but they refused" may not be persuasive when it comes to determining spousal support awards.