Page 17 - December 2018 | Cleveland Metropolitan Bar Journal

for the very purpose of later divorcing.” Daniel
S. Rubin, Protecting Your Assets From a Future
Former Spouse, Tax Stringer (June 1, 2017). If the
attacking party was able to surmount that very
large hurdle, they would have to do so within
to defraud, if the marriage lasts more than 18 One
the applicable statute of limitations. In Ohio,
that action must be brought within 18 months of
the qualified disposition under R.C 5816.07(B)
(2). Therefore, even in the case of actual intent
months there is an absolute bar to recovery from
the Legacy Trust. If the Legacy Trust was created
and fully funded prior to the date of marriage, legacy.
then the timeline would be even shorter. If it was
established 18 months and one day to prior to the
wedding date, there would be an absolute bar to
attack by the day of the actual wedding! That is
powerful premarital planning.
A Legacy Trust also eliminates the possibility Working together,
that a domestic relations judge will overturn a
prenup addressing the business interest of one we can make a difference.
party. In a traditional prenup a party’s business
must be reasonably valued as of the date of the
marriage. If this is not done, then the judge may By assisting with gifts to The Power of Every One Centennial
overturn the prenup since there was not a full
disclosure of assets. Additionally, if either spouse Campaign, you are helping clients make an important investment
is actively participating in the business, then in their own lives and the lives of Cleveland Clinic patients.
some judges will deem the growth of the business Thank you.
to be marital property even if the prenup says
that any growth is also separate property. If that Learn more at powerofeveryone.org or contact Stacey McKinley, Esq.,
party had set up a Legacy Trust instead, they mckinls@ccf.org or 216.445.8552.
could have retained the right to income from the
business AND the entire value of the business
would have been protected since the shares of
the business would be owned by the third-party
trustee outside the scope of the divorce action.
While a Legacy Trust has many benefits, it
is not a perfect solution for everyone. First, the
Settlor must relinquish substantial control over
the trust assets to a third-party trustee (remember
the Settlor can be the primary beneficiary, retain
the ability to access a certain portion of the assets
and void distributions, but they cannot serve as Cleveland Clinic offers same-day appointments.
their own trustee). Second, a Settlor cannot place
all their assets into the Legacy Trust rendering
them insolvent. Third, a Settlor should only place
assets that they do not need on a regular basis 11684-6 CCDEV_2018PlannedGiving_4.77x7.46_CMBA.indd 1 9/12/18 11:50 AM
into the trust since they must to go through the funding a Legacy Trust; or (4) taking a hybrid
CREATIVE DEPARTMENT
JOB NUMBER & COMPONENT
Initials
Prepared by:
trustee to access them. A prenup has no such approach of a Legacy Trust for some assets with Client: Cleveland Clinic Rebecca Yingst Price of the Law Office Date AEs
Approval
DELIVERABLES:
11684-6 CCDEV_2018PlannedGiving_4.77x7.46_CMBA
restrictions — all a party’s premarital assets may a prenup for others. The ultimate question of Division: Development of Rebecca Yingst Price, LLC, focuses Laser
Copywriter
1370 W 6th St, 3rd floor
be governed by the agreement, they can continue which avenue to take may depend not only on Project: 2018 Planned Giving CD - Copy Comp
her legal career on helping families
PUBLICATION or MEDIUM
Cleveland, OH 44113
using them as they like during the marriage, and the nature of the premarital assets, but whether Flat Size: 0” x 0” and individuals with estate planning, PDF
216.574.9100
Cleveland Metropolitain Bar Association (NP)
Designer/AD
Trim Size: 4.77” x 7.46”
there are no administrative costs of dealing with one wants to disclose the premarital planning to Live Area: 0” x 0” and estate & trust administration. PDF (No Slug)
CD - Design
a 3 party trustee. INSERTION DATE Bleed: 0” Quality JPG
rd
their future spouse. This article focuses solely on
She believes that there is no substitute for proper
12.01.18
Line Screen: 150
planning! She has been a CMBA member since
Therefore, Ohio couples can protect their the legal options available and does not dive into COLOR: Assurance Flash
Production Notes:
premarital assets by: (1) gambling on state law; the fundamental issue of whether it is a good idea 4 Color BW Proofreader Native Files
2007. She can be reached at (216) 239-5043 or at
(2) entering into a prenup; (3) creating and to start a marriage with a secret trust! 2 Color Other Production
price@ohiowills.net.
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