If you are considering creating an estate plan, you are probably looking at using a trust. Trusts are very effective estate planning tools and they provide you with significant flexibility in ensuring your wishes are carried out. Additionally, a trust spares your family from the cost and delay of having your estate go through the probate process. A “living trust,” or one that is created while you are alive, can be revocable or irrevocable.

Revocable trusts

One of the primary purposes of creating a revocable trust is to avoid probate. However, in Utah the probate process is not nearly as burdensome as it is in many other states. However, there are still many other reasons for having a revocable trust, including:

• You can maintain control of your assets
• You can avoid a conservatorship if you should become incapacitated
• You have the ability to change the terms of the trust during your lifetime, including the named beneficiaries or adding/removing assets from the trust
• You can revoke or cancel the trust
• You can maintain privacy with a trust

Irrevocable trusts

An irrevocable trust cannot be changed or revoked by you once the trust agreement has been finalized and signed. Thus, once the assets are transferred into the trust, you are no longer the owner of them because the trust holds title to them. An irrevocable trust can be helpful in a few important ways:

• The income to the trust may not be taxable to you as the trustor
• The assets in the trust may not be subject to death taxes in the estate of the trustor
• It allows you to leave an inheritance for minor children or other beneficiaries and control the timing and the circumstances under which they receive the money
• It can protect the trust assets from beneficiary’s creditors

With any type of trust, it is important to remember that the trust is not effective until it has been funded. This means you must transfer title to your real estate, bank accounts and other assets out of your individual name and into the trust’s name.

Let us help you decide which type of trust will benefit you and your family the most. The Astill Law Office has provided high quality legal services for over 30 years. We specialize in wills, trusts, estate planning, and asset protection. If you have any questions about creating a Trust, Will, or estate planning in general, contact The Astill Law Office at 801-438-8698.

One of the most important documents that a business-owner can have is a buy-sell agreement. It serves many important functions. One of the most important is to govern how the ownership interests in the business entity can be transferred upon a defined triggering event, such as an owner’s death, incapacitation, retirement, bankruptcy or divorce. Providing a roadmap for dealing with business disputes while all the parties are getting along can save everyone time, money and stress when difficulties arise.

The buy-sell agreement should provide business owners who are unable to resolve disputes on their own, a means for resolving their differences. It should also address exit strategies if the disputes cannot be adequately resolved, including an agreed upon method for valuing ownership interests. In effect, the agreement provides a way for you to avoid litigation while still resolving disputes.

The three types of buy-sell agreements are:

• Redemption agreements. When an owner leaves the business, or attempts to sell their interest, the entity may purchase his/her interest.
• Cross-purchase agreements. When an owner departs from the entity, the remaining owners may purchase the departing owner’s interest.
• Hybrid agreement. True to its name, it is a combination of both types of agreements. The exiting owner’s interest is offered to the remaining owners to buy. If the remaining owners decide not to purchase it, then the entity may buy the exiting owner’s interest.

The buy-sell agreement may provide for maintaining life insurance to cover the cost of a buyout in the event of an owner’s death.

The buy-sell agreement can be a complex document and it requires strategic planning. There are many events that can give rise to exercising a purchase option among co-owners of a business. We can help you understand the tax consequences to each owner and to the entity. We can also work with you to create an agreement that will not only help ensure the successful operation of your business, but also provide exit strategy options to help avoid litigation in the future.

If you are interested in learning more about protecting your business with a buy-sell agreement, let us help. The Astill Law Office has provided high quality legal services for over 30 years. We specialize in wills, trusts, estate planning, and asset protection. If you have any questions about creating a Trust, Will, or estate planning in general, contact The Astill Law Office at 801-438-8698.

The key to effective asset protection planning is to start early. If you take action while things are good, you will be protected if you get caught in difficult situations later. More importantly, by taking action now, you can help protect yourself from being held in contempt or for fraud. Below are a few general pointers if asset protection planning, but it is imperative to obtain legal counsel regarding your unique situation.

• Plan Now. There are many protective measures you can take now before a claim arises that you will not be allowed to do afterwards because after a claim arises, your actions could be considered “fraudulent transfers.” In fact, attempting to protect assets after a claim arises will typically make matters much worse.
• Insurance. It is important to maintain liability and professional insurance. Asset protection planning is not a substitute for these types of insurance, but rather a supplement to them.
• Trusts. Your personal assets are not always protected just because you have a business entity such as a LLC, corporation or partnership. Personal assets can be put into jeopardy if a creditor pierces the corporate veil or successfully proves an alter ego theory. Thus, it is important to place personal assets into a properly drafted trust and take steps to properly fund the trust.
• Control. You must find a balance between retaining some control over the assets, but not too much that a creditor will be able to successfully argue that the debtor and the asset protection structure are alter egos or essentially the same.
• Simplicity. This may seem counter-intuitive, but having an extremely complicated asset protection plan can backfire. You should assume that at some point your plan will be reviewed by creditors and/or a judge. If you cannot explain how the assets are held or why they were transferred, your creditors and/or the court are likely to get suspicious.

If you are interested in learning more about asset protection planning, let us help. The Astill Law Office has provided high quality legal services for over 30 years. We specialize in wills, trusts, estate planning, and asset protection. If you have any questions about creating a Trust, Will, or estate planning in general, contact The Astill Law Office at 801-438-8698.

Many people incorrectly believe that they do not need a trust because they do not have a large estate full of expensive assets. However, a trust is an estate planning tool that can be extremely beneficial for estates of all sizes. Don’t simply assume that you do not need a trust. Let us review your individual circumstances and help you create the best estate plan to fit your unique needs and goals. It’s rare that a person cannot benefit from the use of a trust.

In determining whether a trust would be a good estate planning option for you, it is important to consider numbers factors such as:

• Do you own real property, a business or other type of significant real estate asset?
• Do you want to avoid your estate being used to pay taxes?
• If you have a disabled family member, would you like to provide for him/her without disqualifying him/her from government assistance?
• Does your estate have a net worth of at least $100,000?
• Do you want to direct who inherits from you and when your estate is paid to them?
• If you spouse should become disabled, do you want to provide for him/her and avoid guardianship proceedings?
• Do you want to provide for your spouse while he/she is living, but be able to dictate who receives the remainder of your estate after your spouse dies (often used in a second marriage and you want your children to inherit)?
• Do you want to avoid the expense of a probate action?
• What will happen and who will manage your assets for you if you become incapacitated? Do you want to avoid probate court conservatorship proceedings?
• Do you own property in more than one state?

The above list is not exhaustive, but it gives you an idea of the factors that should be considered when creating a comprehensive estate plan. Let an experienced estate planning attorney help you decide if a trust would be beneficial to you and your family.

The Astill Law Office has provided high quality legal services for over 30 years. We specialize in wills, trusts, estate planning, and asset protection. If you have any questions about creating a Trust, Will, or estate planning in general, contact The Astill Law Office at 801-438-8698.

If you have a loved one who is no longer able to take care of him/herself, you may want to consider being appointed as a guardian. A guardian is an individual appointed by the court to be a substitute decision-maker for another person. The procedure for having incapacity declared is strictly governed by law, not by what a physician says. However, medical information is necessary to assist the court in making its decision. Thus, it is important to have a knowledgeable lawyer assist you in the guardianship process.

You begin the process by filing a petition with the court to determine incapacity and appoint a guardian for your loved one (the “respondent”). The petition must be properly served on the respondent. Utah law requires the respondent to be represented by a lawyer, whom the respondent may choose or the court can appoint one.

The respondent is typically examined by a physician. The respondent must attend the hearing, or if he/she is unable to do so, the court will appoint an objective party called the “court visitor” to investigate the ability of the respondent to appear unless clear and convincing evidence has been presented as to why the respondent cannot attend (such as being in a coma)

After hearing all of the evidence regarding the respondent’s incapacity, the court will decide if a guardian should be appointed. Once a guardian is appointed, the respondent is called a “ward.” Depending on the severity of the incapacity, the guardian will be given limited powers or full authority to act for the ward. A limited guardianship means that the guardian only has the decision-making authority in defined or limited areas of the ward’s life. A plenary or full guardianship transfers all rights from a ward to a guardian.

The guardianship process can be emotional and overwhelming. Let us help you decide if it is the right decision for your loved one. The Astill Law Office has provided high quality legal services for over 30 years. We specialize in wills, trusts, estate planning, and asset protection. If you have any questions about creating a Trust, Will, or estate planning in general, contact The Astill Law Office.

Many families across our country are “blended.” In other words, one or both spouses have been previously married and have children from that prior marriage. Many times the couple goes on to have children of their own as well. Thus, when it comes to estate planning for a blended family, there are some unique issues that must be considered.

You must consider the different interests involved. How will you provide for your surviving spouse, children and step-children? In many cases there is child support, several residences and multiple accounts that must be dealt with in the estate plan. To ensure your estate plan is comprehensive and achieves the results you want, it is vital that you obtain advice from an experienced attorney.

It can be difficult to decide how to divide your assets between your surviving spouse and your biological children. If you are close to your step-children, their interests must be considered as well. If your biological children are minors, you must also address the issues regarding child custody. With so many factors at play, you should make these decisions while you are healthy and can take time to carefully craft your estate plan to best protect your family. Failure to do so could result in:

• You children unintentionally being disinherited
• Your children’s inheritance being delayed until your surviving spouse dies
• Your former spouse making a claim to your assets
• Family disputes over your estate or authority to act

If you have a blended family and you want to ensure that your wishes are clearly documented, contact us today. We can help you prevent family conflict when you are gone.

The Astill Law Office has provided high quality legal services for over 30 years. We specialize in wills, trusts, estate planning, and asset protection. If you have any questions about creating a Trust, Will, or estate planning in general, contact The Astill Law Office.

When it comes to estate planning, there is a lot of confusion and misinformation out there. Below are a few topics that many people get confused about:

• You are more likely to die if you create an estate plan. This is fiction! While it may seem silly to you, there are many people who use this as an excuse not to create an estate plan. None of us know when our time will come, but creating an estate plan is an effective means for protecting your family while you are able to do so.
• A trust is all I need. Not true! Most families can benefit greatly from creating a trust; however, your estate planning is not done by simply creating a trust. You must “fund” the trust before it is effective. In other words, you must transfer your assets into the trust. In creating a comprehensive estate plan, you should also include a Will, medical directives, appointment of guardians for minor children, and power of attorney.
• You should routinely review your estate plan. Fact! Don’t file your estate plan away and forget about it. As your life changes, so should your estate plan. Thus, it is a good idea to review your estate plan each year to make sure it still reflects your wishes or to respond to family changes.
• Estate planning is only for the wealthy. False! If you own anything such as a home, car, boat, bank account, retirement plan or other assets, an estate plan can benefit you. It is also beneficial if you have minor children and you want to avoid family fighting once you are gone. An estate of any size can benefit from having a plan.

Estate planning can be an intimidating and confusing process, but it is important to you and your family. Let us help. We will be by your side each step of the way. The Astill Law Office has provided high quality legal services for over 30 years. We specialize in wills, trusts, estate planning, and asset protection. If you have any questions about creating a Trust, Will, or estate planning in general, contact The Astill Law Office.

You might think that making the decision to sell your business was the difficult part, when buyers start their due diligence part of the process it can be stressful too. Buyers will want to know what they are getting when the deal closes, which is fair, the process can produce a lot of anxiety for the seller. Thus, it is important to take certain measures to reduce the stress where possible.

Take action
As soon as you make the decision to sell your company, you should start planning for the due diligence phase of the transaction. You should be proactive in collecting and organizing all of the legal documentation you know the buyers will want to review. For example, buyers will want to see your formation documents, key business contracts, financials, tax returns, employee files, and records related to your intellectual property. The more prepared and organized you are when the buyers show-up to examine your documentation, the less suspicious the buyers are likely to be.

Open Door Policy
The buyers are going to want to obtain as much information about your business as possible before agreeing to purchase it. While you may be tempted to hide any negative factors related to your business, this is not wise. Skeletons in your closet will come out eventually and, if you hid them from the buyer, it can result in very unfavorable consequences. If you are open and honest during the due diligence process, it will make the process go quicker as well as instill confidence.

Boundaries
You want to limit the due diligence procedure to buyers that are serious. Thus, you should only permit buyers who have executed a letter of intent to examine your records. You should also set an agreed “drop-dead” date to avoid wasting the parties’ time and resources. It is also important to designate an individual within your company to handle any inquiries from buyers.

Confidentiality
The due diligence process requires your business to provide a great deal of confidential data to others. Therefore, it is essential that all interested buyers sign a non-disclosure agreement. The agreement should clearly set forth that the use of any proprietary information is limited to the negotiations of the sale and closing the transaction.

The Astill Law Office has provided high quality legal services for over 30 years. We specialize in business formation, wills, trusts, estate planning, and asset protection. If you have any questions about creating a Trust, Will, or estate planning in general, contact The Astill Law Office.

A personal representative is the individual appointed by the deceased to manage and administer his/her estate. Many people appoint a family member or trusted friend to serve as their personal representative. While this is a good choice for selecting somebody you know you can trust, the person may not have the skills or experience in handling estate administration. Therefore, it is often necessary for a personal representative to retain a knowledgeable lawyer to assist with the various tasks involved in administering the decedent’s probate estate.

The probate process is often complex and time-consuming, especially if there are disputes or difficult legal issues involved. The probate procedure involves many requirements and deadlines, which most non-attorneys are unfamiliar with (even most lawyers are not familiar with this process), and missing a deadline or mis-understanding the process can cause significant issues in a probate case.

A personal representative also has many obligations that must be fulfilled. Having an attorney to advise you of your rights and duties under the law is crucial. A fiduciary duty is imposed upon a personal representative, which also means that you can be held personally liable if you do not act accordingly. A lawyer that is on your side and is focused on protecting you will provide you the peace of mind that the estate is being handled professionally and that your interests are being safeguarded each step of the way.

If you have been appointed to serve as a personal representative and you are not sure where to start, call us for help. The sooner we get involved, the smoother the probate process will go. We will help ensure the case is handled correctly and efficiently.

The Astill Law Office has provided high quality legal services for over 30 years. We specialize in wills, trusts, estate planning, and asset protection. If you have any questions about creating a Trust, Will, or estate planning in general, contact The Astill Law Office at 801-438-8698.

One common question our clients ask is whether they should name their revocable living trust as the beneficiary of their 401k or other retirement account. There are several factors that should be considered, including the tax consequences of doing so. The Pension Protection Act of 2005 was passed by Congress providing that a revocable trust is eligible to be the beneficiary of a retirement plan.

The primary benefit of appointing a revocable trust as the beneficiary of your retirement plan is that it provides the ability to control the distribution of the proceeds from the retirement plan when the holder of the account dies. Additionally, it helps you avoid some of the problems that can otherwise arise, including:

• Money held in a retirement account is generally protected from claims by creditors. However, if your retirement account does not have a surviving beneficiary and the default beneficiary is the estate of the account holder, the retirement funds could be vulnerable to claims by the deceased account holder’s creditors.
• When a person is named as the beneficiary and he/she dies before the account holder, it can cause complications that a trust does not have. In fact we can’t predict the result unless we read the account documents, and each one are different.
• Naming an individual as the beneficiary can result in the retirement proceeds ending up in an unintended person’s hands. For example, the named beneficiary could go through a divorce or have creditors trying to collect from him/her. Once your retirement proceeds transfer to the beneficiary, it is subject to attack by creditors and/or a divorcing spouse.
• Retirement account funds left to an estate do not receive favorable IRS treatment and beneficiaries lose important options. If properly drafted, a trust can preserve those options and allows for favorable tax treatment.

If you have a trust and you are considering naming it as the beneficiary of your 401(k), IRA or other retirement account, we can answer your questions. We can also help you create a trust that can protect your assets and ensure that the right people (your loved ones) end up with your estate, and preserve the tax options available to you.

The Astill Law Office has provided high quality legal services for over 30 years. We specialize in wills, trusts, estate planning, and asset protection. If you have any questions about creating a Trust, Will, or estate planning in general, contact The Astill Law Office at 801-438-8698.