Patricia Annino Receives “Best in Wealth Management” Award

The Euromoney Legal Media Group chose Patricia Annino, Chair of Prince Lobel’s Estate Planning and Probate Practice Group, to receive the prestigious “Best in Wealth Management” award at the second annual Americas Women in Business Law Award ceremony held May 24, 2012, in New York City.

Selected from a short-list of eight well-known, highly-qualified nominees, Patricia’s award was based on extensive peer review research conducted by Euromoney’s research team, her professional accomplishments during the past 12 months, and her advocacy and influence in the field of wealth management.

Following the success of similar award ceremonies in Europe and Asia, the Americas Women in Business Law Awards was launched by Euromoney Legal Media Group to give law firms and professional services firms the recognition they deserve for their efforts in helping women advance in the legal profession.

Patricia Annino is a nationally recognized expert on estate planning and taxation, with more than 25 years of experience serving the estate planning needs of families, individuals, and owners of closely held and family businesses. She speaks regularly on many issues of concern to family owned businesses, including succession planning, risk management, managing a business with multiple stakeholders, the risk of divorce, and more. Annino is a graduate of Smith College and Suffolk University School of Law.

Patricia is the author of two widely utilized professional texts: Estate Planning in Massachusetts, and Taxwise Planning for Aging, Ill, or Incapacitated Clients. Patricia’s recent books for consumers include, Cracking the $$ Code: What Successful Men Know and You Don’t (Yet), Women in Family Business: What Keeps You up at Night, and Women & Money, A Practical Guide to Estate Planning.

About Prince Lobel

Prince Lobel Tye LLP is a full-service law firm providing a wide range of services for Fortune 1000 companies, closely held businesses, and individuals. Prince Lobel’s attorneys are guided by the highest standards of legal excellence, professionalism, and service – whether they are addressing complex business issues or providing advice on personal legal matters. Practice areas and industries served encompass corporate law, data privacy and security, domestic relations, employment law, estate planning and probate, insurance and reinsurance, intellectual property and Internet law, litigation, media law, nanotechnology, real estate, telecommunications law, construction law, environmental law, renewable energy, health care, and education. For more information, visit Prince Lobel at PrinceLobel.com.

Patricia Annino is a sought after speaker and nationally recognized authority on women and estate planning.  She educates and empowers women to value themselves and their contributions in order to ACCOMPLISH GREAT THINGS in the world – and in so doing PROTECT THEMSELVES, those they love, and the organizations they care about.  Annino recently released an updated version of her successful book, Women and Money: A Practical Guide to Estate Planning to include recent changes in the laws that govern how we protect our assets during and beyond our lifetime.  To download Annino’s FREE eBook, Estate Planning 101 visit, http://www.patriciaannino.com.

PERSONAL FINANCE: When Valentines and prenups go together

I participated in this article and wanted to share it because it has some great information about the prenup process.  Enjoy!

By Kathleen Kingsbury (a Reuters contributor. The opinions expressed are her own.)

NEW YORK, Feb 15 (Reuters) – With a flurry of Valentine’s Day marriage proposals over, it could be time for new fiancees to take a financial reality check.

Four million Americans got engaged on Tuesday, as estimated by an American Express survey released in January. Unromantic as it may seem, everyone needs a frank conversation about finances before they walk down the aisle, including one that touches on
whether or not to sign a prenuptial agreement.

“All marriages terminate, whether it is in divorce or death,” says Patricia Annino, a Boston-based attorney and estate planner.  “Signing a prenuptial agreement is assurance your assets go where you want them to.”

Money issues are one of the most commonly cited reasons for marital strife. So, adding a candid financial assessment to one’s wedding to-do list might go a long way toward minimizing disagreements down the road.

 

WHO SHOULD SIGN A PRENUP

A common misconception about prenups is that they only apply if one partner brings in significantly more assets to a marriage, or in the case of May-December romances, where there’s a wide age gap. But they should also be considered by those marrying in
mid-career, or those remarrying.

“Statistics tell us that couples are marrying later in life, after they’ve had careers and separately built their own wealth. Or people are marrying for the second or third time,” says Steve Hartnett, associate director of education at the American Academy of Estate
Planning Attorneys. “These are the exact situations where prenups are critical.”

Equally important are situations where there are children from a previous marriage. “Parents will often want to be sure their children are provided for in case of their death, ” says Elaine Morgillo, a certified financial planner in North Andover, Massachusetts.

For younger couples, prenups are often sought when one partner stands to receive a large inheritance or holds a stake in a family business. Morgillo recalls one couple who had never been married and had similar incomes, but the bride-to-be expected an inheritance and the groom owned several rental properties.

“Inheritances aren’t always sacred, but she wanted hers protected and it helps to show intent,” Morgillo says. “She knew he felt the same way about his properties.”

 

GROWING IN POPULARITY

When her boyfriend of six years sat her down on their living room couch last Valentine’s Day, Christen Petitt Hailey thought she was about to get a vacuum cleaner. Instead, he proposed and the Tampa, Florida, couple were married last November.

“Before we were married, we came up with an arrangement where I always covered the mortgage and utilities, and she paid for groceries or entertainment,” says Shaun Hailey, 36, a mortgage underwriter. “She had slightly less income, so this division seemed to work out to be the fairest.”

Indeed, this kind of ad hoc divvying up is how most modern couples handle their finances. Many are realizing this might not be the smartest route, however.

“We like to say marriage vows today have become ‘love, honor, merge your finances,'” says Anthony Fittizzi, a wealth advisor for U.S. Trust, which recently launched a financial empowerment program to counsel clients ages 20 to 35. “Couples don’t necessarily take into account issues like the start-up costs of marriage, insurance, cash management or dividing property.”

Fittizzi’s motto: Sign on the bottom line before you say “I do.” Nearly a third of single Americans said they would ask their significant other for a prenup, according to a February 2010 poll by Harris Interactive. A second poll, by the American Academy of Matrimonial
Lawyers, found that 73 percent of divorce attorneys had seen an increase in prenups signed from 2005 to 2010, with more women initiating the process than ever before.

No doubt the high divorce rate has made prenups more acceptable, but the economy may be playing a role, too.

“With this uncertain economy, there is more insecurity about assets,” says Arlene Dubin, a New York City attorney and author of the book “Prenups for Lovers: A Romantic Guide to Prenuptial Agreements.” “Clients see prenups as vital to protecting what they’ve
built.”

 

MAKING A PRENUP STICK

Prenups generally cover real estate, estate planning, division of bank accounts, and alimony, in case the marriage should end. Child custody or support can’t be included, and protecting retirement or pension benefits may require extra steps. There are also steps that
should be taken to ensure that the prenup holds up in court. These include:

 

POPPING THE (PRENUP) QUESTION EARLY

Many lovebirds might find asking their betrothed to sign a prenup awkward, but waiting until the last minute can backfire. “You shouldn’t be bringing it up in the limo on the way to the church,” says Evan Sussman, a Beverly Hills-based divorce attorney. “From a
legal standpoint, you don’t want the other person to be able to claim duress later.” Sussman recommends the subject be broached before wedding invitations go out, or at least several weeks before the event.

 

AVOIDING FINANCIAL INFIDELITY

Prenups aren’t for every couple, but considering one often brings forth key financial questions that bring more honesty into a marriage. A 2010 poll by the non-profit CESI Debt Solutions found 80 percent of spouses spent money their partner didn’t know about.

Some attorneys recommend asking for a credit report. At the very least, Dubin says, “You need a line-by-line statement of assets and liabilities so you can deal with the ramifications.” Student loans, credit card balances, and IRS liens are some of the debts a spouse can later be held responsible for.

Still, Dubin says, “Before you start this process, prepare yourself for whatever may come. And know at what point you’d have to walk away.” The same, of course, goes for asking for a prenup and having your partner turn you down.

 

RETAINING SEPARATE LAWYERS

A second means to challenge a prenup in court is if the couple are not represented by separate attorneys. This is to guarantee that one spouse, usually the less-wealthy partner, is not taken advantage of.

“Imagine if Mark Zuckerberg wanted to marry his housekeeper who didn’t speak English and he insisted she sign a prenup,” Hartnett says. “Having a competent lawyer on both sides of the table means each party gets a fair agreement.”

That said, when choosing legal representation, be sure the attorney you choose understands this is the start of a marriage, not the end.

“When a lawyer is overly adversarial, it can lead to a lot of distrust and ‘do you love me’ questions,” says Cicily Maton, partner at the Chicago firm Aequus Wealth Management. “You should choose an advocate, but do your due diligence about their style.”

Of course, prenuptial agreements can always be renegotiated as a marriage evolves. “The first draft can always be torn up,” says Ginita Wall, a San Diego-based certified financial planner. “I had one set of clients on the sixth iteration of their prenup when they decided to divorce.”

For the Haileys, being engaged meant much financial discussion. They chose in marriage to keep all their finances separate, including their tax filings. They didn’t opt for a prenup, but “getting it all out on the table upfront means no surprises,” Shaun Hailey says.

Instead, he says, “We can concentrate on saving for the important things, like a honeymoon.” (Editing by Jilian Mincer, Bernadette Baum and Andrew Hay)

Source: © Thomson Reuters 2011. Business & Financial News, Breaking US & International News | Reuters.com http://www.reuters.com/assets/print?aid=USL2E8DFF4Y20120215

Patricia Annino is a sought after speaker and nationally recognized authority on women and estate planning.  She educates and empowers women to value themselves and their contributions in order to ACCOMPLISH GREAT THINGS in the world – and in so doing PROTECT THEMSELVES, those they love, and the organizations they care about.  Annino recently released an updated version of her successful book, Women and Money: A Practical Guide to Estate Planning to include recent changes in the laws that govern how we protect our assets during and beyond our lifetime.  To download Annino’s FREE eBook, Estate Planning 101 visit, http://www.patriciaannino.com.

How Can We Ask Our Daughter to Sign a Prenuptual Agreement?

Question:  My daughter is getting married soon. We have significantly more money than her fiancée’s family. Since her fiancé will be a part of our family we are uncomfortable bringing this up as we are concerned that it will send a message that we don’t like him. How can we start this discussion with our daughter?

Answer:

Love and money are very tricky topics. You are wise to ask your daughter to consider signing a prenuptial agreement prior to her marriage. A prenuptial agreement is a contract entered into before marriage. It sets forth the rights that each person has to their own assets and to the assets that are earned or acquired during the marriage if divorce strikes. Today it is very common for a child of wealthy parents to ask her fiancé to waive off all rights to any assets that the child will receive from her parents by gift or inheritance. The waiver typically includes any appreciation in the value of those assets. The agreement may not address what happens to any asset that the couple earns together during the course of their marriage-that can be negotiated if divorce occurs.

When you have the discussion with your daughter it is important to stress to her that the agreement is intended to protect her-the goal of the agreement is to put her in control of the disposition of any family asset she receives. Assuming the marriage goes well she can always choose to override the agreement and put her assets in joint name or execute an estate plan that leaves him her entire net worth.

The goal of the prenuptial agreement is to shield those assets and keep them for her benefit if the marriage does not work. A valid prenuptial agreement takes those assets of the table in any divorce discussion. No matter how difficult it may be, it is important that she discuss and execute the prenuptial agreement well in advance of the wedding-a typical rule is before the invitations are mailed out.

Delaying the discussion can lead to an argument that the agreement is not valid and was signed under duress.

Patricia Annino is a nationally recognized authority on women and estate planning.  She educates and empowers women to value themselves and their contributions in order to ACCOMPLISH GREAT THINGS in the world – and in so doing PROTECT THEMSELVES, those they love, and the organizations they care about.  For more visit:  www.patriciaannino.com


How to Negotiate a Prenuptual Agreement

Protect Your Assets:  Q&A with Patricia M. Annino, Esquire

Question:  I am 43 years old and am marrying a 58 year old man who is significantly wealthier than I am. He is divorced and has three grown children from his prior marriages. He has made it clear to me that he expects me to sign a prenuptial agreement. He has been very generous with me and I am concerned that if I negotiate the terms he suggests it will appear that I am marrying him for his money. What should I focus on?

Answer:

A prenuptial agreement is a very serious contract. It addresses what rights you have to his assets if you divorce or he dies. The courts are increasingly upholding prenuptial agreements if they are fair and reasonable. Some cases have gone so far as to say that a prenuptial agreement will be upheld unless it is unconscionable not to do so. Generally to be valid a prenuptial agreement should meet three criteria:

1)      The agreement should be fair and reasonable when the marriage is entered into and fair and reasonable when the marriage terminates

2)      Both parties should fully discuss their assets and liabilities

3)      Both parties should be represented by separate attorneys who explain to them what their rights are.

It is interesting that fair and reasonable does not mean that you are entitled to a higher standard of living because you married a man that is wealthy. For example, in a recent landmark case a man with a family business worth over $100,000,000 married a woman of modest means. They negotiated a prenuptial agreement that provided that if the parties divorced the wife would receive the home they last lived in, $35,000 in annual alimony adjusted for inflation and a new car. After seven years of marriage and one child they divorced. The wife tried to convince the court that the prenuptial agreement was invalid because it was not fair and reasonable. The judge ruled for the husband, ruling that both parties to the contract were adults represented by lawyers who understood the terms of the agreement.

So be careful-walking that tightrope between agreeing to something that you feel is fair and not appearing to be after his net worth is very tricky.

You may negotiate the agreement so that at certain intervals of marriage-5 years, 10 years, 15 years, etc the amount increases. Of course, there are risks with those intervals because right before an increase the marriage can be re-evaluated. It is also possible to negotiate that the prenuptial agreement sunsets-or stays in effect only for a certain number of years. The agreement can be amended during the marriage-and both parties must want to do that.

The bottom line is understanding that unless there is fraud; what you do agree to will probably be upheld by a Judge.

Patricia M. Annino, Esquire, is the author of the highly acclaimed book, Cracking the $$ Code: What Successful Men Know And You Don’t (Yet). Patricia is in demand nationally as a speaker for womens’ organizations on assorted topics.  Patricia works with organizations and women looking to educate and empower them to plan and work smarter with their finances and estates.  For more information visit:  www.patriciaannino.com

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