Category Archives: Asset Protection

Asset Protection

Top Threats to a Professional’s Assets

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If you are a professional or a business owner, it is important to understand that you are a potential target for a lawsuit. This is especially true if you have substantial assets. Thus, it is imperative that you take action to protect your assets from some of the top threats you face, including:

  • Breach of contract claims. When you are conducting business and have established a contractual relationship with other parties, any failure (whether intentional or not) to meet the terms of the agreement can result in a lawsuit.

  • Allegations of sexual harassment. If you own a business or you supervise other employees, even frivolous accusations can result in litigation.

  • Worker’s compensation cases. When an employee is hurt on the job, you can be held liable to pay for his treatment and/or rehabilitation, although the law typically requires an employee to carry worker’s compensation insurance.

  • Work-related car accidents. If you own a business that employs drivers, you could be included in a lawsuit resulting from your employee’s car accident. Even if it is your driver’s fault, you have the deep pockets.

  • Slip-and-fall accidents. If a customer or client slips and falls while visiting your place of work, you can bet his or her attorneys will target you as the liable party.

  • Product liability. If you manufacture, design or market products, you could be liable for damages if a consumer is injured by a faulty product.

  • Employment discrimination. Whether justified or not, an employee can allege discrimination is occurring in the workplace and file a lawsuit against you.

  • Trademark infringement. As competition increases, owners of trademarks are getting more aggressive about protecting their rights.

We all know that bad things happen to good people. Professional liability is a real threat to everyone because you don’t have to be negligent to get sued. Asset protection tools are available to help protect your wealth and assets from creditors in the event you are named in a lawsuit or your business is forced into bankruptcy. Contact us today to learn more about asset protection and how we can help.

If you are interested in learning more about being appointed as a guardian or conservator for a loved one, call 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.

Asset Protection

Tips for Minimizing your Business’s Liabilities

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If you own a business, it is imperative that you take steps to safeguard your company and yourself from liability claims. Sadly, threats of liability to businesses and their owners are more abundant than ever. Most business owners are unaware of the broad range of actions that can place their personal and their business assets in jeopardy.

The following are a few items to consider in how to protect your business:

  • Have you properly incorporated your business as a C-corporation, an S-corporation, or a limited liability company (LLC)? If so, are you following the corporate formalities to ensure your business is treated as a legal separate entity and to protect you from personal liability?
  • Do you have a written agreement with your business partners?
  • Does your business have adequate liability insurance in amount and scope of coverage?
  • Is your stock owned by a Trust or other separate legal entity to ensure that you are protected from personal liability if the corporate veil of the business is pierced?
  • Do you maintain separate corporate entities for each business venture in order to segregate liability?
  • Are your personal assets protected by a Trust?
  • Do you have an attorney assisting your business with tax-saving opportunities?
  • Does your business have guidelines and policies that comply with applicable government regulations? If your business has employees, does your employee handbook comply with the law?

Advising business clients for nearly 30 years, we can help you navigate these issues with ease and peace of mind. Protection of your personal and business assets is a primary focus of our firm. Don’t wait until an issue arises and your entity is in trouble. Take preventative and protective action now to save yourself time, money and heartache in the future.

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, Estate Planning

Don’t Overlook the Importance of Life Insurance

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When it comes to creating an estate plan, you want to be as comprehensive as possible. Many people may not consider life insurance as part of their estate plan, but it is an important component in protecting your loved ones. In fact, if you have young children or a loved one with a disability, obtaining life insurance can be an effective way to ensure that they are provided for after you die. It allows your loved ones to obtain immediate cash at a critical time.

Determining the amount of life insurance you need may not be simple. You must consider both your long-term and short-term goals, as well as the needs of your family members who have been dependent on your income.

When you have minor children, you must consider how long it will take before they will be financially independent. If you have older children that are employed, they may require less monetary support than the younger children.

As general guidance, you must calculate the long-term needs of your dependents. This includes figuring how much of your income is provided to them every year, subtract the value of the assets you will pass down to them as well as any monetary support they will receive from other family members. This gives you an estimate on what each dependent will need.

In considering the short-term needs of your dependents, consider whether they will require quick access to money or assets. If most of your property is not easy to access or able to be immediately liquidated, then proceeds from life insurance can provide money for your loved ones to live on while they convert assets to cash.

It is our goal to provide you with the most comprehensive estate plan and asset protection plan as possible. Let us review your individual circumstances and help you create the best strategy for you and your family.

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

Talking to your Family about Money

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Many families run like fine-oiled machines when it comes to handling chores, errands and daily activities. However, when it comes to their finances it is an entirely different story. Talking about money is often uncomfortable, but it is also one of the most important things for you to be on the same page about.

Out of convenience, it is common for one family member to be tasked with paying the bills. While this can help keep the process organized, it only works if all family members are abiding by the budget. For example, if one partner is working to save money and maintain a balanced budget and the other partner is spending frivolously, it can lead to financial problems quickly. Resentment and anger over money can lead to fighting and, in extreme cases, it can be a major contributor to divorce.

It is imperative for spouses to communicate openly and honestly about their finances. When your children are old enough, they should play a role in creating a financial plan for the family. Teaching your children about the value of money is a lesson that will benefit them for the rest of their lives. It can be as simple as teaching them to earn an allowance by performing chores or making sure they are aware of what items cost at the store. When you allow your children to take part in financial decisions it helps them feel important while also teaching them how to be financially responsible.

Money management skills are a lifetime gift to your children. When they become adults and you are ready to discuss their inheritance or how you wish for your estate to be administered, it will be a much more comfortable discussion. It can make the estate planning process easier and less stressful when you have your family’s input and support.

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.

Asset Protection

Qualifying for Veteran’s Benefits

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If you have attempted to navigate the numerous state and federal medical insurance programs, you have quickly realized that the bureaucratic systems can be quite confusing. Working with an experienced elder law attorney at Astill Law Office can save you stress, time and money. In fact, we may be able to assist you in discovering benefits that you were not aware that you qualified for, including the Veteran’s Affairs (VA) Aid and Attendance Program for war veterans.

The VA Aid and Attendance benefit is one that is paid not only to veterans, but also to their spouse or surviving spouse. It is also a benefit that is paid in addition to the veteran’s basic pension. As a matter of fact, eligibility to the VA basic program can assist you in receiving this benefit.

Who qualifies for VA Aid and Attendance benefits? The benefits are paid to applicants who require financial assistance to pay for in-home care, assisted living facilities or nursing homes. It is important to note that the disability does not have to be the result of military service, but you cannot receive non-service and service-connected compensation at the same time. The VA Aid and Attendance benefits are paid to applicants who:

  • Are eligible for a VA pension
  • Were discharged from service under conditions other than dishonorable
  • Meet the minimum service requirements
  • Meet certain disability requirements
  • Meet income and asset limitations as set by law

There are many veterans (and their spouses) who are unaware that they qualify for this benefit. It is common for veterans and their families to tell us that they were never informed that this program exists.

If you or a loved one is a veteran and you are interested in learning more about the benefits you may qualify to receive, let us help. The application process can be complicated, but we will walk you through the process step by step.

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, Estate Planning

Credit Shelter Trusts – Not Only for the Wealthy!

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If you are interested in taking advantage of state and federal estate tax exemptions, a credit shelter trust may be a good option to consider. Most people associate this type of trust with millionaires, but there are several reasons to use this type of estate planning even if you have more modest means.

In 2015, the initial $5.43 million in an estate is exempt from federal taxes. This amount increases to $10.86 million for a husband and wife’s joint estate. Additionally, the estate tax is “portable” between spouses, so if the first spouse to die does not use all of his or her $5.43 million exemption, the estate of the survivor spouse can use it. However, it requires a significant amount of proper planning in order for the exemption of the first spouse to die to be effectively used. A credit shelter trust (also referred to as an A/B or bypass trust) is a tool for preserving both spouses’ exemptions. This is especially important in case the surviving spouse remarries. This could cause the loss of the previous’ spouse unused credit.

Many states have an estate or inheritance tax with thresholds that are often much lower than the current federal one. As a result, while it may not make sense to establish a credit shelter trust for federal tax purposes, it may be wise to do so for state tax purposes. For example, if a state inheritance tax applies to estates in excess of $1 million, when the first spouse dies and passes everything to the surviving spouse, the remaining estate could easily exceed the state’s $1 million threshold, leaving it subject to a substantial state inheritance tax. Gratefully, Utah does not have such a tax; but can you guarantee that you will live in Utah at your death? That presents a dilemma that we all face. Life changes and we can’t always predict what those changes will be.

By creating a credit shelter trust, the estate that exceeds the applicable state or federal exemption amount is split between the spouses for each to create a trust to “shelter” the first exemption amount in the estate of the first spouse to die. The terms of the trust typically provide for the trust income to be paid to the surviving spouse and the trust principal to be available to the surviving spouse as determined by the trustee’s discretion. If properly drafted, the credit shelter trust assets will not be considered part of the surviving spouse’ estate at their subsequent death and therefore not subject to estate or inheritance taxation. In short, the couple in our example can safeguard up to $2 million from estate tax while also making the entire estate accessible to the surviving spouse if necessary.

Even better, a credit shelter trust is also protected from creditors of the surviving spouse. Thus, if the surviving spouse becomes liable to creditors for any reason, i.e., medical expenses, personal injury, bankruptcy, divorce after remarriage, or otherwise, those assets in the credit shelter trust are protected from creditors. Sometimes that reason alone is enough to encourage clients to use credit shelter trusts.

If you are considering creating a credit shelter trust, it is important to seek the help of a qualified attorney. 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, Estate Planning

Elder Abuse – It Occurs in a Variety of Ways

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If you have a family member or other loved one that is in their “golden years,” the most important thing you can do is to be involved in their life. Although you don’t want to believe elder abuse could happen to your loved one, the truth is that seniors are extremely vulnerable to being taken advantage of. Sadly, many victims of abuse don’t seek help because they are scared nobody will believe them, they are embarrassed, or they worry it will lead to the loss of their independence. In more severe cases, the senior citizen may believe there abuser will retaliate and their situation will get worse.

Most people associate elder abuse with the individual being physically hurt, but there are different types of elder abuse:

  • Physical Assault. Physical abuse can include a wide range of actions such as hitting, kicking, slapping, unreasonable physical restraint, depriving the victim of food or water, sexual assault, or any other tactic used to cause physical harm. The inappropriate use of medication can also be considered physical assault. A recent unusual case was prosecuted in Utah, when the spouse of a person who was determined to be incapacitated had sexual intercourse with them. The lesson here is that if you can’t make everyday decisions, you can’t consent to sexual relations.
  • Neglect. Any action that results in the victim being put in unreasonable danger can be considered neglect. This includes failure to provide help with personal hygiene, malnutrition, dehydration, failure to provide clothing or shelter or preventing health or safety hazards.
  • Emotional Abuse. When the victim is subjected to fear, isolation, confinement, or serious emotional distress, it can constitute emotional abuse. Common examples of emotionally abusive tactics include threats, intimidation and verbal assaults that invoke fear in the victim. Elders are very prone to this when they are isolated and afraid of being left alone. Caregivers can take advantage under these circumstances.
  • Financial Abuse. When an elderly person is no longer able to handle his or her own finances, it opens the door to financial abuse. This may include theft or embezzlement of money an/or assets from the senior citizen. Financial abuse can be anything from having money taken out of the victim’s wallet to having real property frudulently transferred to the abuser.

If you believe your loved one is the victim of elder abuse, it is imperative that you take immediate action.

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

How to Protect Your Assets from Paying for a Nursing Home

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We have all heard stories about how expensive nursing home care is, but hoping that you don’t ever need that type of long-term care is not enough. If you want to prevent your life savings from being used to pay the nursing home while also qualifying for government assistance, it will take a significant amount of pre-planning.

Medicaid has restrictions on when and how you can gift your assets in order to qualify for assistance. Certain transfer penalties can be applied. The general transfer penalty law has a five-year look-back period, so the sooner you start your planning, the better off you will be.

Below are three suggestions on how to pre-plan your gifting of assets while also retaining sufficient wealth to provide for your care during the five-year look-back period:

  1. Early inheritance. If you can afford to give your children a portion of their inheritance while retaining sufficient assets to privately pay for any necessary long-term care during the five years, it can be an effective means for protecting your assets and your loved ones. It also allows you to see your beneficiaries enjoy the money while you are still alive.
  2. Long–term care insurance. If giving an early inheritance to your loved ones is not feasible for you, purchasing long-term care insurance is an option to consider. It is important to research the long-term care insurance policies and make sure you truly understand what is and is not covered.
  3. Asset protection trust. An asset protection trust is often a very advantageous option for you and your family. You can transfer property into a Medicaid irrevocable trust that will safeguard your assets from being vulnerable to paying for nursing home expenses. You should discuss whether an asset protection trust would be beneficial for you with one of our experienced estate planning attorneys.

The above three options are just a few considerations if you are concerned about the costs of long-term care. The sooner you begin your asset protection planning, the easier it is for us to find the most beneficial means for protecting your family and your assets.

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

Should You Take Over Your Parents’ Finances?

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As your parents enter their golden years and they need help attending to their affairs, it is essential that you approach the topic with them carefully. The most effective way to handle this process is by preplanning, which may include establishing a trust, guardianship, conservatorship, and durable power of attorney. One of our experienced estate planning attorneys can assist you with any of these legal documents that can provide you a legal means for taking over your parents’ finances when they need help. The absolute best method (and least costly overall) is to help them create a trust where you, or some other trusted family member (or a bank), become a co-Trustee to help them manage their finances.

It can be difficult to approach your parents with this topic. Depending on your family relationships, you may want to consider whether you should appoint one person to discuss it with them, have a family meeting or include an attorney in the meeting. Whatever you decide is the best strategy for your family, it is imperative that you take action while they have the necessary mental capacity to execute the necessary legal documents.

One thing you should make clear to your parents is that you are not attempting to take control over their finances at this time. Rather, you are merely taking steps to prepare for when it may become necessary. If your parents are reluctant, you should also inform that it is not necessary for them to make a full finanical disclosure to you (or anyone else) at this time. All that is required is that you are told where their financial information is located and how to access it. Remember, you will want them to include their online login information and passwords so you can access their digital assets.

If you need help discussing these matters with your parents or you believe the information will be better received from an estate planning lawyer, we can help. If your parents will view this discussion as part of their estate planning process, it may help them not be as defensive about it.

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.