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An irrevocable trust is one whose existence will continue as long as the terms and conditions mentioned in that trust isn’t fulfilled. A trust in simple word is a contractual arrangement. As per this written arrangement a person or an organization is assigned the duty to take care of the tangible, intangible assets of a person. The person who has created a trust is called the settlor. The person or the organization who takes care of the property in benefit of the other person is known as the trustee.
The concept of trust law has developed from England when the feudal system was prevalent. The concept has been incorporated not only in USA bur also in other nations of the world. In USA the presence of this law reflects the legacy of the British colonial era.
One of the several types of trust mentioned above is the irrevocable trust. These types of trusts are not without its advantages and disadvantages. Some advantages of this type of trust are as follows:-
1) It gives protection to your assets. The settlor can’t be sued for anything because he owns nothing.
2) After the death of the person setting up the trust there is no estate tax whatsoever. This is because the person doesn’t own anything technically.
3) The property of the person doesn’t go through the probate process.
4) Since, the property comes from an irrevocable trust there is no taxes on a gifted property.
5) There is peace of mind in case of this trust. This is because there is no way by which a property mentioned under this trust can be taken away by lawsuit.
Cheque kiting is a type of embezzlement: appoint a criminal lawyer -Embezzlement is a fraudulent appropriation of a monetary fund by one or more people to whom the fund has been entrusted. Like all other crimes this offense too is covered by the statute of limitation. It is a type of misappropriation crime. The offender writes a value in the cheque greater than the actual deposited amount with the bank. Some forms of this embezzlement method involve more than one person and banks.
There are several types of cheque kiting that distinguishes on from the other depending on their nature:-
1) Circular kiting- It involves more than one bank account. One or more people may be involved in this action. Cheque of $ 100 of bank-1 is deposited in Bank-2 (with previous deposit of $100) and again a cheque of $200 is deposited in bank-1 account. Although the actual balance in bank-2 is $100. Funds that are being transferred are artificial.
2) Retail based kiting- Instead of a bank, another sources are now targeted. An offender makes payment with a cheque in a supermarket and gets cash back on the total purchase. The cheque takes some time to clear. Although the offender has very little money in his account compared to the amount of cheque. The offender in the meantime has made similar payments on other purchases. By the time the shopkeepers understand what has happened to them they are duped of their goods as well as cash back amount. This offense is common in suburbs where there is a presence of supermarket chains.
3) Corporate kiting- This obviously involves large sums of money. By virtue of their size and transaction volume they easily gain access to funds. This is done against the facility given to big companies to deposit money without temporary hold, For example the case of E. F. Hutton & Co. was a stock brokerage firm (since 1904).
Big cities like Miami, New York, etc. where transaction involving huge amounts and big corporations exist is where this offence also exists. In case your shopping establishment has faced loss due to kiting, approach a Criminal Lawyer. This of course holds true if you are a local of Miami.