If you have your own business or you are starting a new company, you may be wondering if you should form a legal entity. The quick answer to this question is usually “yes.” There are several different types of legal structures to consider, each with having its own pros and cons. This blog will focus on limited liability companies, C-corporations and S-corporations.

Limited Liability Company (LLC)
A limited liability company (LLC) is a popular choice for many small or new businesses because it is a cross between a partnership and a corporation. The members of an LLC own and manage the business jointly. The LLC structure allows the members to share in the business’s profits and losses, which can be allocated disproportionately among the owners. Similar to a partnership, the LLC members enjoy pass-through tax treatment.
Similar to a corporation, an LLC is its own, separate legal entity. This is important because it provides limited liability to the owners and protects their personal assets in most lawsuits. However, the protection is limited because in certain situations, such as if fraud has occurred, the members can be held liable

C-Corporation
A C-Corp is a more complex and expensive legal structure. It requires a significant amount of record-keeping and compliance obligations, but it also offers many advantages. A C-Corp is not a pass-through entity for tax purposes, so the entity is taxed separately. Thus, owners are only responsible for paying taxes on money they receive from the entity. The C-Corp structure allows you to create different classes of stock, which means owners can have differing shares with a variety of rights and obligations. This is important for businesses that need to be able to do fundraising to pay the start-up costs and other expenses.

S-Corporation
The S-Corp has many of the same benefits as the corporation. However, the S-Corp is a pass-through entity for tax purposes. Thus, its profits and losses flow directly through the entity to the individual shareholders. The S-Corp is limited to 100 investors, all of which must be individuals and legal residents of the United States. If necessary, a S-Corp can be converted to a C-Corp later on. It shares characteristics of the LLC and the C-Corp.

There are many tax and non-tax reasons to consider forming one entity over another. There is no one-size fits all pattern. Expert help is needed to make these decisions.
Don’t put your business in jeopardy by not selecting the most beneficial legal structure available. 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 at 801-438-8698.

If you have lost a spouse, your world has changed dramatically. With all the changes in your life, it is important to remember that you need to re-examine and update your estate plan. Consider the following steps:

• Take inventory of your assets. You should inventory your assets and determine how they are owned. There are certain assets that you may want to change how they are owned such as those that were owned jointly with your spouse. You may need to change the title to be in your name only or in the name of your trust. If you inherited assets from your spouse in trust, you will want to protect them from creditors by keeping them in trust. You should consult with your estate planning attorney on changes in tax basis for assets you held with your spouse.
• Update your estate plan. Many times, the death of a spouse results in dramatic changes in your finances, which may require your estate plan to be changed. You should also review determine whether you named your spouse as trustee, executor or power of attorney. If so, you should appoint a new person. Additionally, if you remarry, you should update your estate plan to reflect how you want your new spouse and your children to inherit from you.
• Protect your wealth. Even though you may have inherited a certain amount of wealth from your spouse, it is important to protect your finances. It is typically not a good idea to lend money to new love interests or friends, because there are many scam artists who target lonely individuals. You and your spouse worked hard to accumulate your savings, so safeguard your future by conferring with a seasoned estate planning attorney who will help ensure your best interests are protected. If you consider remarriage, only do so with a premarital agreement in place. This can avoid a lot of grief for you and your family.

If you have recently lost a spouse and you are interested in creating a new estate plan or updating an existing one, contact us for the advice and guidance you need. 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.

There are numerous benefits offered by creating an estate plan, but one of the primary goals for many individuals is to help keep the peace in their family after they are gone. Below are a few steps you can follow to help prevent litigation over your estate plan:

• Mental capacity. A common issue that is raised in many lawsuits over estates is whether the decedent had the required mental capacity to execute the documents. If there is any doubt about mental capacity when the estate planning documents are signed, a simple visit to a physician immediately prior to signing the documents to verify the requisite capacity can eliminate this argument.
• Attorneys. Retaining separate lawyers to represent the testator and other family members can prevent an unhappy party from arguing a conflict of interest.
• Executor. If you are concerned that there will be family fighting over your estate, you should consider appointing a professional executor. While this may cost money, it will be worth it if it prevents disputes among your loved ones.
• Disinheritances. If any parties are being disinherited, you must make the disinheritance clear and concise. The wording must make it evident that the disinheritance is intentional. However, a reason should not be given for the disinheritance because this could open the door for the disinherited individual to challenge it.
• Take action. It is important to take action while you are healthy to get your affairs are in order. Creating an estate plan ensures that your wishes are carried out and that your family is protected.

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.

As medical technology advances, humans are living longer. While this is good news, it does come with a cost. Long term care (“LTC”) is becoming a necessity for most senior citizens and it is very expensive. However, LTC can be a requirement for anyone, at any age, who has been involved in a serious accident. LTC includes all the services that are necessary on a continuous basis to help an individual recover after an injury or illness. In fact, many LTC services are not medical, but they are related to basic personal tasks of everyday life. This includes nursing home care, home health care, respite care and other types of assistance with daily activities.

Due to the costs of LTC, it is vital to know whether your HMO, Medicare or a Medicare Supplement will pay for your LTC. Generally speaking, Medicare pays for some of the costs of skilled care in approved nursing homes or for a short period of home health care for a limited period of time after a stay in the hospital. However, Medicare does not pay for non-skilled assistance with activities of daily life such as eating, bathing, dressing, and other similar necessary activities (except in connection with an illness, and then only for a short period of recovery). A Medicare supplement typically covers your co-payments, deductibles and the services partially covered by Medicare. Most long term expenses are covered by Medicaid, but only if you qualify (meaning you have no assets); otherwise you must pay for these long-term expenses from your own funds.

Understanding the difference between government programs and private financing options for long term care can be confusing. Every type of assistance has its own pros and cons, as well as its own set of rules for eligibility requirements, the services its covers, copayments and premiums. Let us help you understand your available options and create a strategy for covering your LTC expenses.
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.

All adults should have a living will and/or advanced health care directive so their medical directives will be carried out even if they are unable to communicate them. A living will is a document that allows you to set forth your wishes regarding end-of-life treatment. An advanced health care directive allows you to appoint a trusted family member or friend to make medical decisions for you if you are unable to do so for yourself. In Utah and in many other states the advanced health care directive combines both the appointment of an agent, and your living will. As your life circumstances change, however, it is important to understand that you have the ability to revoke or otherwise alter your health care documents, and you should do so as frequently as necessary.

Revocation
You have the ability to revoke or terminate your advanced health care directive and/or living will. Typically, you can accomplish this by (i) writing “VOID” on the original document, (ii) executing and dating a letter of revocation, (iii) physically destroying the original document, or (iv) by executing a new living will and specifically revoking any prior living wills. If you alter your health care directives, it is imperative that you notify your health care providers and ensure that they update their records accordingly. This is very important in this new digital age where your records may be available across an entire health care system.
You should sign a new advanced health care directive as often as life events dictate. A few examples are:

• Your agent moves out of state or has died or you no longer have a close relationship.
• You are diagnosed with a disease that may require special treatment plans or even a Do Not Resuscitate Order.
• You may now have an adult child who could carry out your wishes.
• You may have remarried after a divorce or loss of a spouse.
• You might have other life events that cause you to consider a change.

Divorce
In Utah, an order of separation, annulment or divorce automatically revokes a living will that designates the former spouse as your health care agent, unless otherwise specified in the decree or you affirm the appointment after the divorce occurs. It is important to update all of your estate planning documents if a separation, annulment or divorce occurs.

Court Intervention
If somebody questions the validity of your living will or the actions of your health care proxy, it is possible for a court to get involved. Typically, judges do not want to make health care decisions. As a result, your documents will likely be upheld unless the objecting party proves you were not of sound mind when you executed them or that your health care agent is not following your wishes.

Death
Your health care documents terminate upon your death. However, other documents containing provisions regarding the disposition of your body are valid and enforced. The disposition of your body is not normally a part of your advanced health care directive.

The Astill Law Office has provided high quality legal services for over 30 years. We specialize in wills, trusts, estate planning, and asset protection. We provide specific counseling with our clients in regard to Advanced Health Care Directives. 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 are considering asset protection planning, you may be wondering if an offshore trust would be beneficial to you. An offshore trust is similar to a typical trust created in the United States, with the settlor and beneficiary being the same person. The most commonly used jurisdictions for offshore trusts include the Cook Islands, Nevis, Bermuda and the Cayman Islands.

The most important decision in creating an offshore asset protection trust is selecting the trustee. The trustee should be an individual who is not a U.S. citizen or a trust company that has no affiliation with the U.S. Most offshore trusts have trust advisors who are not under the settlor’s control, but have the authority to step in to protect the trust assets. In fact, an offshore trust is the most effective if the settlor is willing to relinquish control over the trust and all parties to the trust, except the settlor, are outside the jurisdiction of the U.S. Thus, it is imperative to select an offshore trust plan with a trustee that is professional, trustworthy, and willing to defend the trust against creditor attacks.

The use of an offshore trust is probably the most effective asset protection strategy, but it is one that should be used cautiously and it is an expensive solution. This type of trust is not used for purposes of reducing or avoiding U.S. income taxes. In fact, there are very stringent rules about tax reporting that must be complied with if you have an offshore trust. If you fail to properly report you can incur substantial fines and penalties. If you are interested in creating an offshore trust, it is essential to work with a knowledgeable and experienced attorney that can assist you with finding the right offshore parties to partner with in establishing the trust. We have assisted clients in offshore trust planning and have relationships with offshore trustees and advisors.

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 decided it is time to protect your family and create an estate plan, there are several steps you can take to assist your attorney. Below are a few tasks you should consider:

• Financial Accounts. Make a list of all of your financial accounts and any log-in information for the accounts you access online.
• Safe Deposit Boxes. If you own a safe deposit box, you should have another person’s name on it and provide them with a key. Failure to do so makes it more difficult for your family to access it when you are gone. If you own a home safe, make sure you leave the combination to it with somebody you trust. Consult with your attorney before deciding who this should be. Your attorney should provide specific counsel on this.
• Life Insurance. You might be surprised to learn that many policies never have a claim made on them because the beneficiaries were unaware that the policy existed. It is important to make a list of your life insurance policies and where they can be located, along with who the beneficiaries are. Making sure the insurance is considered as party of your estate plan should be a task your attorney assists with.
• Personal Information. It can be extremely helpful to your loved ones to have a record of your personal data. For example, your Social Security number, driver’s license number, loan numbers, credit cards, and any other identifying information or financial matters that will need to be taken care of once you are gone.
• Benefits. You should keep a record of the benefits you receive, including Social Security, retirement or pension payments, military benefits and other similar types of payments.
• Professionals. Provide your loved ones with the contact information for the accountants, attorneys, real estate agents and any other professionals you routinely use to handle your business or financial matters.

The above information will assist your attorney in creating a comprehensive estate plan. It will also make the handling of your estate as simple as possible for your loved ones. Taking a few hours to assemble the above lists can save your family months of trying to locate the information, as well as ensure that your loved ones obtain the payments you intended for them to receive upon your death. My favorite story about preparation came from a client whose spouse died unexpectedly. At the time of death, the client found that the spouse had created a file on their computer titled “If I Die” which contained all of the above and more information.

Don’t let the foregoing list prevent you from getting the essential estate planning documents prepared. Your attorney will assist you in deciding the priorities and essential information for the plan and documents to be prepared for you. The rest of the information is extremely helpful and will be valuable to your heirs, and make administration of your will or trust easier.
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 family member with special needs, your estate plan may need to include a Special Needs Trust. If you leave a special needs person a lump sum payment to assist with the cost of care, it could make them ineligible to receive government benefits that he/she would otherwise be entitled to receive.

Pursuant to 42 U.S.C. § 1396p(d)(4)(A) and Utah Code Ann. § 62A-5-110, this type of trust allows an individual under the age of 65 years to be provided resources beyond that which Medicaid supplies without disqualifying the recipient from receiving the government benefits. You can create a Special Needs Trust while you are alive, or you can create a will that directs funds to flow into the trust when you die. There are other provisions of law regarding Social Security Disability Income, provisions for health care subsidies, subsidized housing and others which need to be considered in setting up a Special Needs Trust.

If you have a disabled dependent, the creation of a Special Needs Trust can provide your loved one the ability to receive services or have some of the luxuries of life that the government benefits do not cover. This may include specialized equipment, travel expenses for medical appointments, education, therapies, or other similar costs not covered by Medicaid or other programs, including clothing or other needs.

If properly constructed, the assets held by a Special Needs trust are not included when the government determines the individual’s eligibility for benefits because the funds are not available to the beneficiary on demand. Distributions from the trust are given on a discretionary basis by the Trustee.

It is ideal for the trust to have available funds throughout the disabled individual’s life. One common way a Special Needs Trust is funded is by naming the trust as the beneficiary of the parent’s life insurance policy. It is imperative that the trust assets are carefully invested so they continue to grow. Family members and friends can also make gifts to the Trust, including naming the Trust as the beneficiary of their own Will or Trust or even a life insurance policy.
Planning for a loved one with special needs can be complex and confusing and Special Needs Trusts require specialized knowledge. 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.

There are certain requirements that must be met when creating an estate plan. The law requires that the individual signing the Will, Trust or other similar legal documents must have adequate mental “capacity.” In general, capacity means that the person understands the consequences of executing the documents, understands who their family is, and has a basic understanding of their assets. However, determining whether a person is competent to sign legal documents is not always easy.

Each state has its own definition of competency, but below are a few general guidelines:

• Comprehension. The individual signing the estate planning documents must have the ability to understand what it means to sign the Will. The signer must understand the extent and nature of the estate being disposed of by the Will. The signer must also comprehend the relationship he/she has with those individuals who would have some claim to the estate.
• Timing. When it comes to capacity, it is possible for the individual’s abilities to change from day to day. The testator must have capacity at the time the Will is signed. If there is any question regarding the signor’s capacity, it is imperative that you document the individual’s capacity on the day the documents are signed.
• Document type. The required capacity of the signer may be greater for some legal documents than it is for others. It important to confer with an experienced attorney to help ensure that the capacity requirements will be met.

If you have questions regarding capacity or you need assistance in creating an estate plan, let us help. We can make sure the appropriate steps are taken to establish the competency and capacity of the person signing the estate planning documents.

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.