While We Were Out

It's been a while since our last posting to the PA Employment Law Blog. While it's really inexcusable, I must let you know that we have been working on some upcoming projects that we are excited to reveal in the coming weeks.

Most recently, Chris Hausner spoke with a reporter from Money Magazine.  The magazine features an article highlighting 9 Tips to Tough Out the Times. Chris' advice appears in the section of the article dealing with employment, How to Maximize Your Take if You Get Laid Off. The article is available online and featured in the November issue, on newsstands now.

 

Is Divorce Really On The Rise?

I believe there is a general assumption that the divorce rate in Pennsylvania and around the country is continually rising. It seems we are constantly bombarded with the statement that "half of all marriages end in divorce." But is that really the case? A recent examination of the marriage and divorce statistics released by the Pennsylvania Department Health indicates otherwise. The marriage and divorce statistics for Pennsylvania go back as far as 1950. Some of the more interesting statistics indicate that the number of marriages in Pennsylvania peaked in 1973 at 101,076 and has been steadily decreasing. The most recent year for which data was available was 2006, when there were 71,511 marriages in Pennsylvania. Along with the decrease in the number of marriages, there has been a similar decrease in the number of divorces, with the number of divorces peaking in 1991 at 41,321 and has been continually decreasing to 34,894 in 2006. Divorce rates seem to be declining, although not nearly as quickly. The divorce rate is calculated as the number of divorces per 1,000 people. In 1990, the divorce rate in Pennsylvania was 3.3. Then in 1995, it declined to 3.1 and has remained steady through 2004 (last year statistics were available).The good news for Pennsylvania residents is that our divorce rate is well below the national rate of 3.6. 

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New Rights for Trust Beneficiaries

Previously under Pennsylvania law, it was possible for a person to be a beneficiary of a trust and be unaware of the existence of the trust. This lack of information was particularly disturbing because protections for the beneficiaries generally depended upon the vigilance of the beneficiary to enforce his or her rights. 

Under the relatively new Pennsylvania Uniform Trust Act, trustees of Pennsylvania trusts have until November 6, 2008 to comply with the new notice requirements to send information about certain trusts, their investments and provisions.

The Act applies only to trusts that are funded and those where the terms are not going to change. Accordingly, the revocable trusts that are frequently used in estate planning would not be affected as long as the Settlor, the creator of the trust, is alive and competent. 

The events that trigger the sending of notices are as follows:

  1. The death of the Settlor.
  2. New current beneficiaries, for example, a beneficiary taking a deceased beneficiaries' share. The term "current beneficiary" is a person who is 18 years of age or older to or for whom income or principal of a trust must be distributed currently, or a person 25 years of age or older, to or for whom income or principal may, in the trustee's discretion, be distributed currently.
  3. The change of trustee for an irrevocable trust.
  4. The incapacity of the Settlor.
  5.  Beneficiaries who "opt-in" which includes persons who sent the trustee a written request for notice.

 The notice must include the following:

  1. The trust's existence.
  2. The identity of the Settlor.
  3. The trustee's name, address and telephone number.
  4. The beneficiary's right to receive upon request a copy of the trust. 
  5. The beneficiary's right to receive upon request a written report of the trust's assets and their market values (if that is possible).
  6. The trust's liabilities and the trust's receipts and disbursements since the date of the last report.

New Child Support Guidelines Proposed

Pursuant to federal law, the statewide support guidelines must be reviewed at least once every four (4) years. The support guidelines currently in place were adopted in September 2005 and became effective in January 2006. Recently, the Pennsylvania Supreme Court Domestic Relations Procedural Rules Committee published for comment new child support guidelines. The public comment period ends on October 31, 2008.

The most significant change to the guidelines relates to the maximum monthly net income included in the guidelines. Under the proposal, the support guidelines would apply to all cases in which the parties' combined monthly net income falls below $30,000. Under the current guidelines, cases in which the parties' combined monthly net incomes exceed $20,000 are governed by Melzer v. Witsberger. Raising the maximum income permitted under the guideline formula will provide consistency and predictability in child support cases for clients in higher income brackets.

The guidelines are in circulation for comment only and may be revised by the Domestic Relations Rules Committee prior to adoption. As the recommended guidelines make their way through the process, we will keep you updated about changes that may affect you.