All posts by Dennis Astill

Estate Planning Tip: Gifting to Grandchildren

If you are entering your senior years and you are interested in spreading your wealth, you are probably considering ways you can help financially protect your grandchildren. Gifting to your grandchildren is not only an act of generosity and love, but it can also be financially smart for you too.

When it comes to gifting, it can be difficult to know where to start. The first step is to determine what amount you can comfortably give. The Internal Revenue Service currently allows you to give a maximum of $14,000 yearly free of any gift tax to each of your grandchildren. A married couple is allowed to give $28,000 yearly to each grandchild if they each make a gift. Again, it is important to verify that whatever amount you decide to gift will not have a negative impact on you. However, if you can afford it, gifting is a beneficial estate planning tool.

How do you “gift” money to your grandchildren? Outside of simply cutting them a check, below are a few ways you can help plan for your grandchildren’s futures:

  • Create a 529 Plan educational account and deposit the funds into it
  • Establish a trust for the benefit of minor grandchildren. Through a trust you can control the gifted funds or investments for many years, and provide asset protection of the gifted amounts for the benefit of your grandchildren.
  • Ask your bank to set-up a custodial account for each grandchild
  • Buy a life insurance policy that has a cash-value component and name the grandchild as the beneficiary
  • Establish a brokerage account in the grandchild’s name and transfer stock purchases into it
  • Investigate options provided by websites such as Upromise and Babymint

The above list is not exhaustive, so if you are interested in learning more, contact an experienced estate planning attorney at The Astill Law Firm to discuss your options! Also, check back to our blog for more detailed discussions on your gifting options.
If you have any questions about gifting to your grandchildren, contact The Astill Law Office at 801-438-8698. We have been providing 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, give us a call.

How a Power of Attorney Helps You

Many people associate only senior citizens as needing a power of attorney (POA). In fact, everyone should consider having a power of attorney document in place, regardless of age, health or any other factor. A POA is written authorization from you that gives authority to another individual to act on your behalf in personal and/or business matters. A POA can also be used by parents to transfer their parental rights over their children for a certain period of time. For example, if you are traveling out of the country and you want your child’s caretaker to be able to make medical decisions for them in an emergency. A POA is an essential part of even the simplest estate plans.

The POA permits you to appoint an individual that you trust to act as your agent or attorney in fact. This means that the person can manage your personal or financial affairs if you are unable to do so for yourself, but even more importantly, it also imposes a fiduciary obligation on him/her to act in your best interest and in accordance with your wishes. Most people choose to appoint a relative or close friend to act as their POA, but you can also name a lawyer, bank or other third-party.

Unless you specify otherwise, your POA will be revoked automatically if you should become incompetent. However, you can create a “durable” POA while you are competent and specifically set forth that your POA should remain intact upon your incapacity. You can also create a POA that does not become effective until certain conditions set forth by you are met. This is referred to as a “springing” POA. The most common condition for causing a POA to “spring” into effect is your incapacity. Typically, your incompetence must be verifiable by a qualified health care professional.
If you are interested in learning more about a power of attorney and how it can benefit you, 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 how longevity insurance may fit in with your estate plan, contact The Astill Law Office at 801-438-8698.

Are YOUR Children Protected if Something Happens to You?

Nobody likes to think about the possibility of not being there for their children. One of the most difficult decisions a parent can make during the estate planning process is who should raise their child if they should die or become incapacitated. It is also one of the most critical decisions they can make.

Parents must plan for their children’s future, including who would raise their children if they both should die. While this is an unlikely event, it does happen. We understand that nobody else will raise your children exactly as you would, so it can be very difficult to decide who to appoint. We also understand that the individual you select to raise your children may not be the best choice to manage the finances for them.

These are issues we can discuss and help you create an estate plan that addresses each of them. In your Will you can appoint a guardian of your minor children. This is the individual you want to have physical custody of your children and to raise them until they reach the age of 18 years old.

If you create a trust, you can name a trustee over the property you leave to your children. This is the individual who will supervise and manage the money and assets you leave for the benefit of your children. If appropriate, this person can be the same person you appoint as the guardian over your children

There are pros and cons to having the same person serve as the guardian over your children and their finances. It allows the individual raising your children the ability to provide for their needs in an efficient and effective way. It can be easier on everyone involved. However, in some cases it can also create problems if the guardian is not financially responsible. Thus, you have to do a “gut check” and decide whether you truly trust the guardian to invest wisely and only use the funds for the best interests of your children, and not for their own personal gain.

Estate planning can provide you with flexibility in how your children’s inheritance is distributed. You can create a trust that sets forth unique instructions from you. For instance, you can set a certain age your child must reach before they receive the money. You can also create a schedule for when each child receives a distribution of funds. We can help you create a plan that works for your family and ensures that your wishes will be carried. Most importantly, we can help you create a plan that protects your children.

If you have questions regarding appointing a guardian for your children, 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.

WHAT IS A POWER OF ATTORNEY?

Almost everyone has heard of a Power of Attorney (POA), but not everyone actually understands what a POA is, or why having one is important. A POA is a written document that allows you to legally assign another person to do specific acts for you. This can be especially important if you are getting older, leaving the country, or are otherwise indisposed.

Basic Estate Planning Tips

Estate planning is an intimidating concept for many people. Yet, it is also one of the most essential actions you can take to safeguard your family now and in the future. Below are a few basic tips for your consideration:

  • Comprehensive estate plan. Having a comprehensive estate plan requires more than just signing a Will. You should also consider establishing a Trust, appointing a power of attorney, appointing a guardian for your minor children, and taking advantage of other tools available to protect your assets and wealth. An estate plan can reduce tax liability, ensure assets are distributed according to your wishes when you die, and help avoid the time and expense of probate.
  • Assets. When creating an estate plan, it is beneficial to inventory all of your assets. This includes real estate, retirement savings, investments, insurance policies and business interests.
  • Make difficult decisions. There are many tough decisions that must be made when creating an estate plan. Who will inherit your assets? Who will make your medical decisions if you are incapacitated? Who will handle your financial affairs when you are unable to do so? Who will raise your children if both you and your spouse die?
  • Make tax-free gifts. If you want to help your loved ones while you are living and reduce your taxable estate, consider making tax-free gifts.
  • Be charitable. Donations to a charitable fund or community foundation are an investment that grows tax-free. You can select the charities to receive your contributions both while you are alive and after you die.

Both federal and state laws must be considered when establishing an estate plan, so it is imperative that you obtain counsel from an experienced estate planning attorney. Let us help you get started on your estate plan 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.

Documents to Collect For Estate Planning

Whether you are just not starting the estate planning process or feel like you have completed your estate plan, you should keep all your estate planning documents together in one place. This will make it easier when you meet with an attorney to begin your estate plan, and it will help your family distribute your estate after you have passed away.

The documents you should keep together are your will, trust, power of attorney, medical directives, life insurance policies, investment account statements, and safety deposit box information.

If you have a will, make sure to have a copy of it, as well as copies of codicils and any previous versions of your will. If an attorney helped draft your will, have the attorney’s name and law firm information easily available as well. Keep the original will in a safe deposit box.

If you have a trust, make sure to have a copy of the Trust Agreement. Keep the original Trust Agreement in a safe deposit box with your will. If there are any bank accounts of pieces of property associated with the trust, keep their statements and deeds near your copy of the Trust Agreement. You should also have the contact information of the attorney who helped create and fund the trust.

If you have a power of attorney, have the original and a copy of the document readily available.

Let your attorney or a trusted family member know the location of your safety deposit box, and also tell them where the keys are.

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.

Charitable Gifts in Your Estate Plan

It is very common for individuals to want to leave a legacy to their favorite charity. Gifts to charities can be worked into any estate plan, and will be tremendously appreciated. However, if an estate plan is not properly structured, it can create a lot of stress and expense for the beneficiaries. Large fees and taxes can be avoided with proper estate planning.

There are many different options and estate planning tools to make charitable gifts. What works best for you will depend on your goals and estate.

One option is a charitable lead trust. This type of trust is called a charitable lead trust because the charity gets funds immediately, and the principal of the trust ultimately comes back to the donor or donor’s family. A charitable lead trust pays income to your chosen charity for a specified number of years after your death (or before your death if you wish). When that period is up, the trust principal passes to your family members or other heirs without any estate or gift tax consequences.

Another option is a charitable remainder trust, which works in the opposite way of a charitable lead trust. This trust will give your family member beneficiary or other heirs a lifetime stream of income, but when they die, the charity of your choosing will get any remainder.

You can also name your chosen charity as a beneficiary of an IRA or other employer-sponsored retirement plan. The charitable gift will be deductible for estate tax purposes, and the charity will not have to pay income tax on the funds it receives.

You can also establish a private foundation or donor advised fund. A private foundation offers you the considerable freedom to control distributions by placing restrictions on how your gifts are used by charities. A donor advised fund will allow you to maximize your income tax savings on your regular monthly or weekly contributions to church or charities. This is a favorite legacy tool for many wealthier clients because their children can operate the foundation and make donations to causes that their parents favored.

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 charitable gifts or foundations, or creating a Trust, Will, or estate planning in general, contact The Astill Law Office at 801-438-8698.

What is a Special Needs Trust?

The parents of children with special needs have unique estate planning concerns. They have oftentimes been the full caregivers for their children, and want to ensure someone will be there when they pass. They also do not want their children to potentially lose any government benefits they receive, like Supplemental Security Income (SSI) or Medicaid, because health care costs can be massive, and the special needs child often lacks the ability to support himself or herself.

There are several types of estate planning tools tailored to address these unique planning challenges. The two most often used are Support Trusts and Special Needs Trusts.

With a Support Trust, the Trustee makes distributions for a child’s support. The assets of a Support Trust can only be used for necessities such as shelter, food, medical care, clothing, and educational services. The beneficiary of a Support Trust is not eligible to receive additional financial assistance through SSI or Medicaid. Therefore, if a child relies on those benefits, a Support Trust is not the best estate planning tool.

A Special Needs Trust also makes distributions for a child’s support, but it’s special design allows the beneficiary to maintain eligibility for SSI and Medicaid. This makes a Special Needs Trust an extremely effective tool for looking after a child with a disability. The creator of a Special Needs Trusts can make it a stand-alone trust funded with separate assets or it can be a sub-trust in an existing trust.

Just as there are many options when it comes to taking care of a child with special needs, there are also different kinds of Special Needs Trusts. One type of Special Needs Trust is a Third-Party Special Needs Trust, which is funded by a child’s parents’ as part of an estate plan. Another type of Special Needs Trust is a Self-Settled Special Needs Trust, which is usually funded with the child’s own assets from a lawsuit settlement.

Special Needs Trusts are a necessary estate planning tool for families caring for someone with a disability or special 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 Special Needs Trust, contact The Astill Law Office at 801-438-8698.

What is a Testamentary Trust?

A testamentary trust is a trust that is established through and governed by a will. It becomes effective only after the grantor’s death. The grantor, also called a testator, is the person who drafted the will. A testamentary trust can be used to exert some control over how assets left in a will can be used after the grantor’s death. A will can set up more than one testamentary trust.

As with any Trust, from the time of the grantor’s death until the expiration of the testamentary trust, the beneficiaries may ask a Court to check to make sure the trust is being handled properly.

Generally, if a person’s estate is small compared to his or her potential life insurance proceeds or other proceeds that will be paid to the estate at death, a testamentary trust may be a good estate planning tool. However, testamentary trusts are not very popular because a living trust can accomplish most of the purposes of a testamentary trust while still giving the grantor some benefit during his lifetime.

A living trust, sometimes called an inter vivos trust (also referred to as a “revocable trust” or “family trust”), is a trust that is established during the lifetime of the grantor. At the grantor’s death, the assets pass to the trust beneficiaries. Living trusts are estate planning tools that are often used in combination with a will, with the goal of avoiding probate. Under Utah law, a living trust may be either revocable or irrevocable.

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.

Trusts for… Pets?

You may have heard or even joked about Pet Trusts, but they are a real, enforceable part of estate planning. They may sound crazy at first, because simply asking a friend of family member to watch over your pets may seem sufficient. However, informal agreements concerning your pet’s care upon your death or incapacity are not enforceable and leave far too much to chance. A Pet Trust is a valid way to make sure your furry family members do not end up in the pound.

Utah law allows for “honorary trusts,” which can be set up for the care of any pet or other domestic animal, including horses, dogs, cats, and birds. When a Pet Trust is created, funds are set aside to provide for your animals’ on-going maintenance and care in the event of your incapacity or death. Like with any other trust, when creating a Pet Trust you appoint a trustee who will be in charge of managing those funds. The trustee may only use those specific funds to take care of your animals.

Through a pet trust, you can specifically designate how the funds should be used and invested, and you can outline what should be done with any remaining funds after the passing of your pets. For example, many people choose to leave the remainder to a charity. A Pet Trust terminates when no living animal is covered by the trust.

A Pet Trust is the only guaranteed way of making sure your animals will receive continued care when you are not capable of giving it to them. It is better than leaving money for your pet in a will because money left in a will can be contested by heirs during probate. A trust avoids this possibility entirely, giving you complete control over the designated assets.

The Astill Law Office has provided high quality legal services for over 30 years. We represent individuals and business owners and specialize in wills, trusts, estate planning, and asset protection. If you have any questions about estate planning, contact The Astill Law Office at 801-438-8698.