Monthly Archives: May 2015

Estate Planning

Preventing Elder Abuse

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Most families who have a loved one fall victim to elder abuse claim they never thought it would happen to them. Sadly, elder abuse is a growing problem. Con artists are getting more creative and better at their job, making it more difficult for families to discover an elderly loved one has been taken advantage of until it is too late.

Financial abuse can include a wide variety of actions such as:

  • having money or property stolen
  • coercing a senior citizen to transfer assets by using deceit or undue influence
  • forging the senior’s signature
  • falsely promising care in exchange for money or property

The above are just a few examples, but financial abuse is any act by a person who scams an elderly person for his or her own financial gain.

Unfortunately, anyone in a senior citizen’s life could take advantage of him or her. The elderly are naturally more vulnerable because they are usually dependent on others. This opens the door to predators seeking to illegally gain a profit. Additionally, family members facing financial struggles may see the older person’s wealth as their inheritance, so they believe they have the right to take advantage of it now. Further, if an individual serves as the senior’s caregiver, he or she may feel entitled to take what they want.

If you have an older loved one that is lonely, isolated, facing physical or mental disabilities, or exposed to people with financial struggles, he or she has an increased chance of becoming a victim of financial abuse. Many older individuals are reluctant to report abuse because they are embarrassed or worried it will cause them to lose their independence. In most cases, by the time the senior or his/her family realizes the scam has occurred, it is too late to do anything about it.

If you would like assistance with protecting your elderly loved ones and taking action to prevent financial abuse, contact 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

Why is Estate Planning such a Big Deal?

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Most people believe that estate planning is important, yet they don’t think it is necessary for them. We often hear people say their estate isn’t big enough or that they will get around to creating an estate plan when they are older. However, an estate plan is important for everyone at all levels of net worth. Below are three central reasons why YOU need an estate plan:

  • You want to protect your family. If you fail to create an estate plan and you die, your loved ones are left with a big mess. Not only can financial disputes occur, probate can be time-consuming and costly. Your estate plan can not only safeguard your assets, but it can also provide your loved ones with peace of mind and guidance once you are gone.
  • You want to save money. Sadly, many people postpone creating an estate plan because they think it will be too expensive. The cost of creating a comprehensive estate plan is minimal when compared to what can be lost financially if you die without a plan in place. Your estate plan can provide asset protection, save on taxes, and prevent litigation expenses. Consider this: in one estate we read about recently the husband died leaving a business owned by two sons and a mom. It has easily cost the family over $500,000 in fees and has taken more than four years to get resolved and the family will never heal. Another case recently reviewed showed that a girlfriend of 18 months, much younger than the decedent, sued to become the common law spouse and inherited millions in property.
  • You want peace of mind. Once you create an estate plan, you will have the peace of mind that you are saving your family from stress and conflict. It will also give you the comfort of knowing that your own future and senior care is planned and provided for. By creating power of attorney documents and a trust, your loved ones will be equipped to handle your long-term care without the time, cost, and stress of going to court to obtain authority to manage your affairs.

There are many other reasons to create an estate plan, but they all center on the three goals outlined above. Whatever you want to accomplish in your estate plan, 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.

Estate Planning

Why do I need a Power of Attorney?

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When you think about creating an estate plan, you probably think about a Last Will and Testament or a trust. However, an equally important part of your estate plan is the power of attorney (POA) document. A POA addresses matters that are not covered by a Will or trust. The POA document is applied while you are still living and it ceases to be effective upon your death (yes – that’s right, a POA terminates when the person dies!). As a result, it is an important document to have as part of your estate plan.

Don’t get confused when considering a POA. Many people think of their health care decisions when considering a POA. Under current law, a POA only works to assist you in managing financial affairs. An Advanced Health Care Directive (“AHCA”) is needed to assist in health care decisions.

Financial POA

When you appoint a POA over your property, it allows the appointee to have authority over your assets. This means your financial POA can access and manage your finances and also safeguard your assets. You can set forth what your appointee can and cannot do in the POA document. Most financial POA’s are granted broad authority.

It is important to understand that the POA document may provide that it is not effective until you are mentally incapacitated. You can also make it effective on the day you sign it. We usually recommend it be effective immediately, unless the person you are appointing is not someone you feel comfortable giving immediate authority. Whatever approach you take, it is essential that you appoint someone that you trust and that will have the ability to effectively manage your finances.

Advanced Health Care Directive

An AHCA can grant authority to another person to make medical decisions on your behalf if you are unable to make those decisions for yourself. This includes decisions regarding your medical care, hospitalization and long-term care. In some cases, your physician may have to determine whether you are unable to make medical decisions for yourself. Most of the time it is obvious.

Your AHCA provides you flexibility to set forth your wishes regarding end-of-life care or your wishes regarding certain treatments. The law requires that your express wishes govern your care and your health care agent must abide by your wishes as set forth in the AHCA. If your AHCA document does not address certain matters, your Agent will make the decision based upon what he or she believes is in your best interests.

If you are interested in learning more about power of attorney documents or other estate planning matters, call 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

Can You Trust Estate Planning Software?

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If you are considering creating your estate plan by using Do-it-Yourself software, you should reconsider. Many people believe they will save money by not hiring an estate planning attorney, but what you do not know can cost you dearly. Below are a few facts you should consider before trusting a software program to create your estate plan:

  • When you use a DIY program, the documents you are provided may not have been created by an attorney. Even if a service center is available to answer your questions, the individuals you speak to are prohibited by law from giving you legal advice if they are not licensed attorneys. As a result, if you require any assistance that is outside filling-in blanks on a form, the software program or the company’s representatives cannot provide help or give you advice because it would constitute the unauthorized practice of law.
  • An estate planning lawyer is required to stay on top of changes in the law (include tax laws), which can occur frequently. When you use a computer program to establish your estate plan, you have no guarantee that the forms you are using comply with the current law. In fact, inaccuracies in DIY forms are usually not discovered until it is too late to do anything about it.
  • Generic documents and a software program cannot consider your individual circumstances like your lawyer can. If you have situations that are outside the norm, a computer program will not have the flexibility or expertise to properly handle it.

 

Don’t fall into the trap of believing a DIY software program can replace a knowledgeable and experienced attorney. The small fee you pay a lawyer to assist you will be minimal when compared to the time, money and stress it will save you and your family. Think of it this way – if you own assets valued at $400,000 (if you include IRA’s, life insurance and house, this is a very modest estate), and it costs you $2,000 to do your estate plan, that’s ½ of 1% of your assets. Is it worth it to spend a minute fraction of your assets to make sure you don’t waste them on probate or taxes, and they go to who you want – without a dispute?

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

Probate Property – What is it?

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When you think about your estate going through probate, you may wonder what it means for your property. Probate is the procedure used by the court to administer the estate (i.e. pay creditors and locate assets) of a deceased person, including distributing his or her assets as directed by a will or under the law.

So, what constitutes probate property? Any assets held solely in the name of the decedent are considered property of the probate estate. Common examples of probate property include:

  • Real property (houses, commercial property, land, rental property)
  • Cars, trucks, boats, ATVs, and motorcycles
  • Bank accounts
  • Investments
  • Stocks and bonds
  • Proceeds from a life insurance policy (if payable to the decedent or his/her estate)
  • Any other personal or real property

The above list is not exhaustive and there could be a variety of other types of assets that could be included in your probate case. Thus, it may be easier to understand the types of assets that will not be included in a probate action such as:

  • Property the decedent owned jointly with another party
  • Assets where there is a designated beneficiary upon death such as life insurance and retirement assets
  • Pay-on-Death or Transfer-on-Death accounts
  • Life estate assets of the decedent

Again, this list is not exhaustive. In sum, however, assets that are not included in the probate process are those that no longer belong to the decedent at the time of his or her death because they transferred by operation of a contract or under the law.

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

Using 529 Plans as Part of Your Estate Planning

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As the cost of higher education continues to rise, many parents are worried about whether or not their children will be able to afford to attend college or other advanced school. If you are interested in helping your children, grandchildren or other loved ones with paying for college, you may want to consider using a 529 plan as part of your estate planning efforts. A 529 plan gets its name from Section 529 of the Internal Revenue Code, which established the education plans in 1996.

A 529 Plan is a savings plan created solely for the purpose of funding an individual’s education. These plans are operated by state or educational institutions. A 529 Plan allows your family to make donations throughout the child’s life to assist with saving for future expenses related to their education.

Each state offers at least one type of 529 plan, each with its own benefits. Thus, it is important to confer with your estate planning attorney to discuss which plan best fits your needs. You do not have to choose the 529 savings plan offered by the state where you reside. You can choose any plan and the money saved in it can be used to pay for any qualified educational institution across the country. The state where your 529 plan was created does not impact where you must attend college.

To learn more about the tax benefits of establishing a 529 plan, please read our blog titled “Do 529 Plans have Tax benefits?”

Finally, it should be noted that some people prefer to use an irrevocable trust for education because of the flexibility a trust provides and the ability to control the funds while serving as the trustee. If you are trying to decide whether a 529 or an irrevocable trust would be more beneficial for you and your loved ones, 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

Tips for Managing Your Important Records

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Creating an estate plan is one of the most important things you can do for your loved ones. However, it is still essential that you keep your supporting records organized. This will make it easier for your family to handle your affairs when you die. Below are a few suggestions for organizing your records:

  • Establish a storage system. Go through your paperwork and get rid of any unnecessary documents. Sort the important records and create a filing system that keeps them organized.
  • Protect important records. It is important to safeguard your original documents that cannot be replaced in a fire-proof safe or a safety deposit box. We strongly urge clients to use safety deposit boxes. Unless you have a very expensive “in wall” safe, set in concrete, it is unlikely the safe will really stand up to a home fire. Examples of documents you should store safely include your estate planning documents, passports, insurance policies, deeds to real property, titles to vehicles, birth/marriage certificates, and other similar records.
  • Separate tax materials. If you maintain a separate file for the documents you will need for your tax filings, it will make the process much simpler when tax time comes.
  • Confer with professionals. You should let your attorney and financial advisors keep a copy of all of your essential records.
  • Consider online back-up. You may wish to scan and store your records online. There are a variety of websites that provide these services or you can upload your documents to a password-protected hard drive.

The above steps may seem a bit overwhelming to you, but once you establish a document system for your records, it will be easy to maintain. If your home should catch fire or be destroyed in a storm, you will feel relief knowing that your important records are 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.

Estate Planning

Do you want to be an Organ Donor?

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Our estate planning attorneys are well aware of the heartache associated with trying to decide if a loved one would want to have his or her organs donated to save others. This is an extremely difficult decision for your loved ones to make on your behalf, so it is important to make your wishes known in your estate planning documents.

The statistics from the website for Donate Life America speaks volumes:

  • More than 123,000 men, women and children currently require life-saving transplants
  • Every 10 minutes, another name is added to the National Organ Transplant Waiting List
  • On average, 21 people die each day due to the lack of organs available for transplant
  • 90% of Americans say they support donation, but only 30% know the essential steps to take to be a donor

When we create your estate plan, you can make your wishes concerning organ donation clear using an Advanced Health Care Directive. Many individuals make their wishes known regarding organ donation by designating it on their driver’s license or executing an organ donor card. However, when you make organ donation decisions in your estate plan, you are more likely to discuss them with your loved ones. You can also specify which organs you want or do not want to donate. However you do it, making your organ donation wishes known to your loved ones will make it easier on them and for the healthcare professionals that are caring for you.

Let us help you make decisions regarding your future. We can assist you with creating your advance directives, which includes instructions on end of life care. Making decisions regarding your health and organ donation is extremely personal, so let us ensure that your wishes are legally documented and accessible if an emergency occurs.

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

Are your Assets Protected if you are Sued?

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Lawyers and financial advisors spend a lot of time telling their clients that they need to take measures to protect their assets. However, most individuals do not realize that they are at risk for being sued. As you go about your daily life, you may not even be aware of the various potential sources of potential liability you encounter.

If you own a business or otherwise provide services to other parties, you are vulnerable to a lawsuit. Even owning property, driving a vehicle or other similar activities can expose you to the risk of litigation. To determine your own personal risk of a lawsuit, visit a one of the numerous websites where you can take a quiz and get an idea of where you are vulnerable. An example is the “Personal Liability Risk Scorecard” developed by ACE Private Risk Services.

The online quizzes can provide you with a general idea of how much risk you have for being named in a lawsuit. You might be surprised by the amount of risk you have in your life. However, for an extensive understanding, let one of our experienced asset protection attorneys review your unique circumstances and assist you with creating an effective strategy for minimizing your vulnerabilities.

Don’t assume that you are not at risk for being sued or that you do not need to take measures to protect your assets. Let us help you understand and address any areas of concern. Pre-planning can save you time, money and heartache. Taking action now, before any problems occur, will provide you the most protection available.

Many people shy away from using a lawyer for asset protection because of the expense. But DIY (Do It Yourself) plans rarely work. A qualified lawyer can help you evaluate your risk and help you understand the strategies that can be employed to avoid the risk. Some obvious things are:

(a) increasing your insurance, but more importantly, the right type of insurance;

(b) if you own a business, properly organizing and operating your business; or

(c) if you own rental properties, setting up proper business organizations to own the properties in order to isolate risk.

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

Preserving Collections as Part of your Estate Planning

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If you are a “collector” of something, you probably want to pass your collection on to your loved ones when you pass. Your collection may range from something sentimental like your family photographs to monetarily valuable items such as classic cars, artwork or antiques. Whatever type of collection you have, it is essential that you take certain measures to preserve them so that they can be passed down through the generations of your family. Consider the following:

  • Physical Storage. Depending on the type of collection, you should likely store the items in an acid-free and cool storage space. In most circumstances, you should avoid storing your items in hot attics or damp basements.
  • Digital Storage. Keeping a digital copy of your collection has gotten easier with the numerous websites that offer this type of service. Having a digital copy of your collection can allow you to display or share your collection with others while maintaining the original collection in a safe place. If your collection includes photographs, digitizing them is a simple way to store them online.
  • Assist with Preservation. There are numerous archival products, such as buffered tissue or polyethylene sleeves, that can assist you with preserving your collections. It is important to understand how to properly store your collection and take advantage of the products that can assist you with doing it properly.
  • Inventory. It is important to catalogue your items and the value of your collection. This is one of the most helpful things you can do for your loved ones who may not understand the value of your collection or why it meant so much to you.

Your collection represents a lifetime of work and care for something that is important to you. In order to ensure that your collection is transferred the way you want in your estate plan, contact us today. Collections present a unique challenge in your estate plan, sometimes because of value and sometimes because of the nature of the asset. Making decisions now can help your family avoid serious disputes and destruction of what you spent years putting together.

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.