Monthly Archives: February 2015

Estate Planning

What does a Utah Probate Cost?

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If you are handling the estate of a loved one, you are probably wondering how much a probate action will cost. No two cases are identical, so there is no easy answer to this question, but below is some general guidance:

Attorney’s fees

You will need to ask your probate attorney if they charge an hourly rate, a set fee, or a combination of both types of fees. The attorneys at the Astill Law Firm try to fully inform you upfront what our fees will be so you know what your budget will be. You should never retain a lawyer without understanding how you will be billed.

Paying an attorney out of the estate

In Utah, a lawyer is not permitted to charge a percentage fee based on the assets of the estate. However, the personal representative is allowed to use estate funds to pay the lawyer’s fees.

Additional expenses

Some of the other costs related to a probate action include a court filing fee which must be paid to the court clerk at the time the probate is filed. If disputes arise within the probate case, you may be required to pay mediation fees in order to reach a settlement. There are some costs related to publishing notice of the probate to creditors in local newspapers. If the decedent owned real property or other valuable assets, an appraisal may be needed. Finally, if disputes cannot be settled and lawsuits are filed, there may be additional expenses. It is important to ask your lawyer to explain any anticipated costs so you know what to expect.

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

What Happens if a Trustee Distributes My Inheritance to Somebody Else?

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If you have been named as the beneficiary of a trust and the trustee is not acting appropriately, it is important to get help as soon as possible. Improper distributions of trust assets can be made by mistake or by intentional wrongdoing. Whatever the cause, the quicker you take action, the more likely you are to obtain a successful result.

It is important to understand that a trustee must be fair in his or her treatment of the beneficiaries. The trustee is also obligated to comply with the terms of the trust. Failure to comply with his or her duties could result in you having a claim against the trustee. Some of the possible claims you may have against the trustee of a trust include:

  • The trustee made a distribution of property or the payment of money to a party that was not named as a beneficiary of the trust.
  • The trustee gave a beneficiary an excessive payment not authorized by the trust, which caused a reduction in the distribution to you.
  • One of the contingent beneficiaries that is entitled to receive the distribution of a primary beneficiary that died before the settlor of the trust did not receive his or her share.

There are other forms of misconduct by a trustee that may warrant legal action. If you have concerns regarding how a trustee is managing a trust or about the accuracy of your distributions from the trust, it is important to contact us immediately to protect your inheritance.

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

Is a Limited Liability Company the Right Entity for your Business?

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If you are starting a new business and you want to incorporate it as a separate legal entity, you should educate yourself regarding the pros and cons of the different available business structures. It is important to understand that if a business is not properly organized from the start, it can have costly consequences. If you want to save yourself time and money in the long run, contact us to ensure your business is properly organized.

One business entity you may want to consider is a limited liability company (LLC). Below are a few of the benefits of a LLC:

  • Members (owners) enjoy limited liability
  • There is no limit on the number or type of members
  • Centralized management is available (in other words it can be managed by a Manager or President or other structure you want to set up)
  • Profits from the business are subject only to one tax (at the individual member level)
  • Members can use business losses to offset other income on personal income tax returns
  • Unequal distributions can be made to members

There are some disadvantages to forming a LLC, including:

  • Certain formalities must be met for organization and operation
  • Your business must qualify to do business in other states
  • Reporting to governmental entities may be required
  • Member interests are not freely transferable with all rights intact
  • Business profits are taxed as income to the individual members (which could result in self-employment tax or income tax, even if no distributions of income are made)

To learn more about creating a limited liability company or for assistance in determining what type of business structure would be most advantageous for your business, contact our business formation attorneys 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

Personal Representatives in Utah

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A personal representative is the name used to refer to the individual who administers the estate of a deceased person. To be eligible to serve as a personal representative, you must be 21 years of age or older, of sound mind, and have no conflicts of interest with the estate.

In some cases, more than one qualified individual may want to serve as the personal representative of an estate. If this occurs, appointment occurs in this order:

  • the person appointed in the will being probated
  • the deceased’s surviving spouse who is an heir of the deceased
  • other devisees of the deceased
  • the surviving spouse of the deceased
  • other heirs of the deceased
  • if no other individual has been appointed within 45 days after the person dies, a creditor can be appointed

It is also possible for an estate to have more than one personal representative serving at the same time. They are referred to as “joint personal representatives” or “co-personal representatives.

Once a personal representative has been appointed, he or she has numerous duties and obligations under the law, including:

  • obtaining control over the estate’s assets
  • preparing an inventory and appraisal of the property owned by the decedent
  • providing financial reports to “interested persons” who request it
  • filing tax returns and paying an taxes due
  • giving notice to creditors
  • paying valid debts of the decedent, including expenses related to administering the estate
  • determining and making the distributions to be made to heirs and beneficiaries
  • Closing the probate action

If you have been appointed as a personal representative and you need help, contact us for 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.

Estate Planning

Utah Probate Basics

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Many of our clients come to us because they have lost a loved one and they have no idea if a probate action is necessary or not. Below are some of the most commonly asked questions and answers, but we encourage you to contact us for help with your individual situation.

 Is a probate necessary if the decedent left a will?

Probably. If the decedent left assets or property that needs to pass to heirs, a probate action is necessary whether or not the deceased left a will. A court will follow the terms of the will to determine the heirs and beneficiaries of the deceased’s property.

Is a probate necessary if the person died without a will?

Again, if the individual left assets that need to pass to heirs, a probate action is required. Without a will to provide guidance, the court will follow Utah’s laws of intestacy (Utah Probate Code, sections 75-2-101 through 75-2-103). You may hear the probate case for a person who died without a will referred to as an “appointment action,” which refers to the appointment of a Personal Representative by the court.

Is a probate necessary if there is a Trust?

Maybe. If a Trust has been created and all of the deceased’s property was left in the Trust, it can be an effective way to avoid probate. However, if the decedent left property out of the trust, a probate action may be necessary. A probate may also be needed to defend against lawsuits filed by creditors of the deceased or if the decedent left a minor child who needs to have a guardian appointed.

Can a will from another state be probated in a Utah probate court?

A will drafted in another state can be submitted for probate if the maker of the will resided in Utah or had property located in Utah at the time of his or her death. The will must be valid in the state where it was executed in order to binding in Utah.

If you are wondering if a probate is needed, contact us for the answers 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.