Monthly Archives: December 2014

Estate Planning

Can your Loved Ones Inherit your Frequent Flyer Miles?

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Airplane propellerIf you are somebody who travels a lot and you have accumulated a large number of frequent flyer miles or reward points, you know they are a valuable asset. Many people don’t think about including them in their estate planning efforts, which is a big mistake. With some aforethought and planning, you may be able to transfer your valuable loyalty program points to your loved ones.

Every rewards program is different, so each has its own rules that apply to transferring points or miles. The best approach for transferring the program benefits is to start giving them away while you are alive. If you are no longer traveling or you have more points accumulated than you will ever use, start gifting them to family and friends now. Many companies allow you to purchase airline tickets with your miles to be used by anyone. Additionally, you can use your points to buy gift cards, hotel stays or other benefits.

If you are still using your points or miles and you are not ready to gift them to others, you should create a list of your accounts, user names and passwords. This will allow your loved ones to access your accounts if you should die. Many companies that do not allow you to transfer points allow somebody who logs into your account to redeem points or miles.

You should also check into adding family members to your account. Some credit card companies that provide points or miles for every dollar you spend may allow you to add your spouse or other secondary user to your account. If you don’t want this other person to be able to make charges on your credit card, stick it in a safe deposit box with your estate planning documents. Once you pass, the secondary user may have access to your accumulated benefits.

Lastly, you should consider setting forth who you want to leave your program benefits to in your estate plan. Many companies will honor the transfer of points or miles if they are specifically transferred in a will or other estate planning document.

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.

 

Asset Protection

Guidelines for Asset Protection Planning

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16430757_sIf you are wondering if you should be taking steps to protect your assets, you probably should. Whether you have a high-risk job or you are an average person who wants to make sure you are protected if a difficult situation arises, you should contact us to discuss your options.

Asset protection planning can take a variety forms, but all of them focus on strategies for safeguarding your most valuable assets from potential creditors. Just as important, however, is to take steps to ensure that nobody ends up in legal trouble, including going to jail for contempt or fraud for engaging in the process.

Below are a few guidelines to keep in mind when you are developing asset protection strategies:

  • Start planning as soon as possible. It is imperative that you create asset protection tools before a claim or liability arises. The longer your protections have been in place, the less likely a creditor can claim they are a “fraudulent transfer.”
  • Be wary of late planning. Any asset protection planning that occurs after a claim arises will likely make matters worse. In fact, a debtor and whoever assists him in fraudulent transfers can be held liable for the creditor’s attorney fees. You also lose any chance of obtaining a bankruptcy discharge.
  • You still need insurance. Even if you have established an effective asset protection plan, you still need liability and professional insurance. Your insurance will help pay any legal fees, pay to settle claims, and even help you survive a fraudulent transfer claim.
  • Business entities protect business assets. If you form a corporation, partnership or limited liability company, it should be used to protect business assets. Placing your personal property in a business entity does not ensure they are protected because an entity can be pierced by a creditor under a theory of “alter ego.” If successful, the creditor will have access to your personal assets. It is much smarter to create a trust to protect your personal property. However, many people misperceive that their estate planning trust protects their assets. This is not the case. Only certain types of irrevocable trusts work for asset protection.
  • Don’t keep too much control. An effective asset protection plan strives to provide you with sufficient control so that the assets don’t disappear, but not so much control that other parties can argue that you and the asset protection tools are one and the same.

If you are interested in exploring your asset protection options, call us today. 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.

Estate Planning

Does your College Student need an Estate Plan?

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Graduate Teddy BearUnder the law, your child is considered a legal adult when he or she reaches the age of 18 years. Most parents do not want to think about their young adult needing an estate plan, but in some situations, it is important to do so. If a young person is moving far away from you for college or a job opportunity, you should consider establishing a health care proxy, power of attorney or even a will or trust for him or her.

Why would your 18 year old need these types of legal documents? As soon as he or she becomes a legal adult, HIPPA prohibits healthcare professionals from sharing private medical information to anyone without consent. If your child is seriously injured or otherwise incapacitated and cannot communicate his or her consent for you to be involved in medical decisions, it can get complicated quickly. To prevent any confusion, you should have a loved one appointed as a healthcare agent, especially for a young adult living away from home.

Another important topic to discuss with your young adult is whether he or she desires to be kept alive by heroic measures if he or she would not have a meaningful quality of life. While this can be extremely difficult to discuss, it is essential for family members to talk about in case the worst case scenario occurs. You should also talk about organ donation and whether your young adult prefers to be buried or cremated.

Although most young adults have not accumulated significant wealth, ownership of any gifted funds or assets vest in your child at the age of 18. If your child should die before you, his or her assets may need to go through the probate process. Without an estate plan, your child’s estate will pass to the heirs-at-law, which usually will be you, as the parents. However, if you have been working to reduce your estate for tax purposes or asset protection purposes, the inheritance of such assets could disrupt your strategy. It may worth considering establishing a simple estate plan for your young adult directing assets to be left to siblings or other family members.

To learn more, please contact us for an appointment. 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.

Estate Planning

Should your Estate Plan Include a Prenuptial Agreement?

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MarriageMost people incorrectly believe that prenuptial or ante-nuptial, or premarital agreements are only advantageous for the wealthy or famous. However, having a prenuptial contract can be an important part of your estate planning process, especially if you have been married more than once and you have children from a prior marriage. In fact, it is possible for a new spouse to invalidate your estate plan if you don’t take action to protect it.

By way of example: You and your spouse have children from previous marriages, you and your spouse are living in the home your children were raised in, and you want your children to inherit the house. Without taking the appropriate estate planning steps, it is possible your new spouse could inherit the home and pass it on to his or her own children upon his or her death.

You can prevent this from happening by either having a prenuptial agreement or by setting forth your wishes in a comprehensive and updated estate plan. It is important to have your intentions set forth in writing. If you sign a prenuptial agreement, you must ensure that the contract is entered without undue influence and the parties made full financial disclosures. In an estate plan, you can dictate how your assets should be distributed under a will or trust. Estate planning provides you with flexibility in determining who should inherit and when the distribution should take place (such as when your children reach a certain age). A prenuptial agreement also has the benefit of protecting your assets from being decimated by a new spouse in the event of divorce.

If you are interested in learning more about protecting your loved ones with an estate plan, please contact us to schedule an appointment. 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.

Estate Planning

The Initial Meeting with your Estate Planning Lawyer

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Business handshakeYour estate plan is a personal matter that should be discussed with and drafted by a lawyer you trust. While it can be helpful to obtain referrals from family members and friends, it is important to understand that the right attorney for them may not be the best fit for you. Many people also find lawyers by contacting their local bar association for a list of local, qualified estate planning lawyers. Don’t get pressured into using a professional that you are not comfortable with using. However you locate your attorney, it is essential to prepare for your initial consultation with him or her.

Before you first meeting with a lawyer, you should make a list of questions you want to ask so you don’t forget to get the answers you need. It is helpful if your documents and records are organized. You should also consider what your goals are for your estate plan. This will assist your attorney with making recommendations for the type of plan you should create.

A few pieces of information that will be helpful for your attorney to have include:

  • A list of your beneficiaries, including anyone you want to specifically exclude from your estate plan
  • Individuals who you want to appoint to serve as the trustee or personal representative of your estate
  • An accounting of your most significant assets, including bank accounts, real estate, investment accounts, IRA or 401(k), life insurance, or other valuable items. It is also helpful if you know how assets are titled, i.e., joint tenants, individual names, etc.
  • If you have minor children, you should consider who you want to appoint as their guardian
  • If there are any special circumstances about your family or your estate that may impact the way your estate planning is handled (such as a special needs family member), be sure to discuss this with your lawyer

Taking the time to prepare for your initial consultation with your estate planning attorney will help expedite the process, which in turn saves you money. It is important that you remain active in the estate planning procedure and don’t rely on the lawyer to simply “handle things” for you. This is not your attorney’s legacy, so you want to ensure it is done the way you want! Your attorney should be a good listener, so that he makes sure he understands your needs, and then tailors your documents to fit those needs.

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.

Estate Planning

When Should I Update my Estate Plan?

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If you have created an estate plan, you have taken a very important step in protecting your family. However, it is important to understand that you cannot simply file your estate plan away and forget it. This can result in unintended and costly consequences. Not only does your life change, but so do the tax laws. You put a lot of time and effort into creating your estate plan, so it is essential to review it regularly and ensure that it still reflects your wishes and that you will obtain the maximum benefit from it.

25765577_sWhen your estate plan was drafted, your attorney considered a variety of factors such as estate tax, gift tax, income tax and other rules governing the distribution of your estate. The tax laws are always changing and your finances have likely changed too. Having your estate plan reviewed can verify that your financial goals are still being accomplished in the most effective way.

So, when should you have your estate plan reviewed? In most situations, having an estate planning attorney look over your estate plan every few years is sufficient. However, if you have experienced a major life event or had a substantial change in your finances, you should update your plan. This includes events such as marriage, divorce, birth of a child, adoption, death of a spouse or other similar events that could impact the distribution of your estate.

Is it expensive to have my estate plan updated? Usually, a simple review of your estate plan is not expensive. However, the longer you wait in between reviews the more updates that are likely to be needed. In order to keep the cost low, many attorneys suggest having your estate plan reviewed each year. In all events you should review it annually to make sure that the guardians, trustees and personal representatives are kept updated.

Whether you need to draft the initial documents to create an estate plan or you have an existing plan that needs to be updated, 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.

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Starting a Business? Avoid these Pitfalls

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Handshake and teamworkEntrepreneurs make a wide variety decisions when starting a new business. It is important to make the right decisions and get your entity off to a successful start. If you are a first-time business owner, you must understand the legal risks involved in each of your decisions. Below are a few common pitfalls you should avoid:

  • Relying on verbal promises. When you first start your company, people will make you promises that you want to rely upon, but you shouldn’t. Even if you have a personal relationship with the other person, you should still get the agreement in writing. You should not rely on your ability to work out any disputes later. Having a written contract in place can not only protect both parties, but it can also help preserve your relationship.We like to think that a contract is like a good fence. Good fences make good neighbors and good contracts keep partners honest and clear on what is expected. A buy-sell agreement between partners is critical to success.
  • Patent infringement. If your business is going to be based upon a certain idea, it is imperative that you conduct a search to ensure the idea doesn’t already exist. Being sued for patent infringement can be very costly. You also don’t want to invest in your idea until you are certain it belongs to you. A patent or intellectual property attorney can conduct a search to determine if your idea has been patented already or if you should take action to obtain a patent to safeguard it.
  • Unfair competition. Recruiting your competitor’s employees can seem like a good strategic move, but it could also result in litigation. You do not want to hire an employee to convert business from the competitor in violation of unfair competition laws.
  • Form of Business Entity. The type of business entity and tax elections for that entity are crucial decisions for a new company. Many people think that they can make those decisions later. But the formation of the company is the best time to make these decisions.

The business world can be full of legal pitfalls, so one of the most important actions you can take is to retain an experienced business attorney to help protect your best interests. The Astill Law Office has provided high quality legal services for over 30 years. We specialize in wills, trusts, estate planning, business law 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.

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Who Can Serve as an Executor in Utah?

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9017410_sWhen you are creating an estate plan, it is important to choose an individual you trust to serve as the executor, personal representative, or trustee of your estate. This can be one of the most important decisions you make in your estate plan and in protecting your loved ones.

In order to serve as an executor of an estate in Utah, the individual must be 21 years of age or older and fit to serve. The court will decide if a person is fit to serve, but it typically must find that he or she is of sound mind. It must also be established that the individual does not have a conflict of interest with administrating the estate which would inhibit his or her ability to act fairly and impartially.

If nobody has been appointed to serve as the executor and more than one qualified person desires to serve, the court will appoint in the following order:

  • the deceased’s surviving spouse
  • children of the decedent, with equal priority
  • other heirs or named beneficiaries of the decedent
  • a creditor, if no other individual or interested party is appointed with 45 days after the death of the decedent

You should ask yourself if you want to leave it to chance and the discretion of the court and your children or spouse. If you have questions regarding creating a comprehensive estate plan or who to appoint as the executor of your estate, we can 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.

 

 

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Dividing Your Estate Between Your Children

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children on beach_edited-1When you are raising your children, you want to be fair and treat them equally. However, when it comes to estate planning, you may want to use a different strategy. Every person is unique and your children have different life circumstances and needs. Therefore, it is important to consider whether each child should be treated differently in your estate plan. In many situations, treating your children exactly the same in your planning could lead to negative consequences.

You may be worried about how your children will feel about being treated differently. Giving your children different types of inheritances does not mean that you can’t treat them equally. Consider the following:

  • If you have one child that is an adult and one that is still a minor, you may want to consider leaving the adult child a lump sum payment while leaving the minor’s inheritance in a trust for distribution at a certain age.
  • You may have one child that is better-suited to serve as the executor than another child. Regardless of your children’s order of birth, you should appoint the child best equipped for administering the estate (even if it is your youngest child).
  • If you have a child that is unable to properly manage finances, consider leaving a scheduled payment plan, or the share in trust for him or her instead of giving an outright payment. This can be extremely important in providing for your child for a longer period of time.
  • If you have the financial ability to make gifts during your lifetime, you may want to take advantage of the annual gift tax exclusion and make gifts to your children while you can enjoy watching them take advantage of it or for purposes of reducing inheritance tax. For other children who are not ready to receive their inheritance, you can place their gifted money into a trust.

Estate planning provides you with flexibility. You can provide for your children in any number of ways to meet their individual needs. To learn more about creating an estate plan that provides for your children’s unique needs, contact us today to schedule an initial consultation. 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.

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Are there Different Types of Probate in Utah?

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ResearchUnlike certain types of clothing, “one size fits all” does not apply in probate. Luckily, Utah law provides for different types of probate actions depending on the estate to be administered. You will need to confer with a probate attorney to determine what type of probate case to file for your particular matter, but below is some general guidance:

  • Small Estate Affidavit. If the estate to be administered is small enough, you may be allowed to avoid the probate process by filing a “small estate affidavit.” Currently, if the net value of the deceased person’s property does not exceed $100,000, the estate qualifies. If the estate involves a house or other real property, you cannot use the small estate affidavit.
  • Informal Probate. Like its name indicates, an informal probate is used for simple, uncontested estates. It is the most commonly filed type of probate in Utah and it typically is less expensive than formal probate. Although the court is involved, that involvement is minimal and no court appearances need to be made. However, an inventory of the estate must still be made. An attorney is essential to this process.
  • Formal Probate. If one or more heirs or beneficiaries object to the personal representative appointed, challenge the validity of the will, if you can’t find the original will, or there are other disputes involved in the administration of the estate, a formal probate proceeding is required. A formal probate typically involves the filing of several pleadings, court hearings, and active involvement of attorneys.
  • Petition to Determine Heirs. If the decedent died without a will or more than three years have passed since the individual died and the will was not filed for probate within that time, a Petition for an Order Determining Heirs must be filed. In these types of cases, the Utah Uniform Probate Code sets forth who the heirs are and what they are entitled to inherit. An attorney is necessary to properly manage this process.
  • Ancillary Probate. If the decedent was domiciled outside the state of Utah at the time he or she died, a probate has been filed in the other state, and the decedent owned real property in Utah, an Ancillary Probate for Out-of-State Decedents can be filed to properly administer the Utah property. Ancillary probates are relatively simple and involve merely filing copies of probate documents from the other state with a Utah court.

If you are interested in learning more about the probate process or how you can avoid the process with a comprehensive estate plan, contact us today to schedule an initial consultation. 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.