Many things happen when a couple divorces; it becomes essential to know what changes can occur in divorce law. Since the new administration took over, several bills have been proposed by the GOP (Grand Old Party) Congress. One bill recently passed is on taxation for families who get divorced or separated after January 1st, 2021.
The Origins of the New Tax Law
This tax reform was initially brought forth on December 14th, 2017, by Rep. Kevin Brady (R-Texas) and Sen. Rob Portman (R-Ohio). I guess they felt that this would help families coming out of divorce or separation reap some relief from some extra burdens while trying to move on with their lives.
The New Tax Law
This law applies to all separated or divorced couples, regardless of how it occurs (brought on because of death). Here is an overview of the changes:
This new tax reform will allow couples filing for divorce after January 1st, 2021, to take advantage of the alimony deduction regardless of their marriage lasting over ten years; this currently does not happen until December 31st, 2019! Dividing assets can be complicated; this reform could make trust litigation easier by allowing the property to include vehicles and personal effects (like clothing) during the marriage rather than moving them into the trust at separation or divorce. This way, beneficiaries will still receive what they need using assets to pay for debts (like trust litigation). There will be an added 5.8% tax deduction on trust income when trust beneficiaries are over 14 years old; this is in place until December 31st, 2026.
The Importance of understanding many changes is imperative that the trust beneficiaries understand these changes, so that trust litigation attorneys can adequately explain them to their clients. This way, trust litigation can continue in the best interest of trust beneficiaries, and trust property will be transferred accordingly.
Many couples plan for divorce; many do not. It's usually during difficult times like this that trust litigation is an essential aspect of the law that trust litigation attorneys can assist beneficiaries with. These changes could also mean that trust litigation may become more expensive, so be ready for higher trust litigation attorney fees.
Estate planning is significant for married couples, and it's even more critical for those who are divorced or separated. The property will need to be distributed appropriately during administration and litigation. It's vital to prepare trust beneficiaries for the changes from trust litigation and trust administration by explaining these new tax laws!
Trust law does not end with separation or divorce; trust litigation attorneys can help beneficiaries through administration and litigation. It's essential to understand the new tax law changes to make trust litigation easier!
There are many changes coming in the way of families. Most cases are handled--most notably with the at takes effect norm, which takes effect January 1st, 2021. Knowing how this could affect your family and trust litigation Miami families who need help after divorce or separation is essential. Contact a trust litigation attorney in Miami to learn more!
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