Category Archives: Asset Protection

Asset Protection

Are you in the “Sandwich Generation?”

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You may have heard the term “Sandwich Generation” being used to reference individuals who have become a caretaker not only for their children but also for their own parents or their in-laws. Being in this position can be extremely difficult and leave you exhausted and stressed. Additionally, it can take a major toll on your finances to spread them among three generations. As a result, it is imperative that you plan ahead and safeguard your immediate family as well as your parents and/or in-laws.

Where do you start? You should immediately have a conversation with your parents/in-laws about planning ahead. If they do not have a comprehensive estate plan, they should contact us immediately to create one. This includes establishing a will and/or trust setting forth how your assets should be distributed, health care directives, power of attorney, and possibly whether you should purchase long-term care insurance. You should also have an open and honest discussion regarding whether your parents want to be kept alive with life-sustaining equipment or measures. Your parents will likely feel a sense of relief knowing that their affairs are in order and that their wishes will be carried out.

While every situation is different, if you have taken on the role of caretaker for your parents it is important to protect your own finances. In other words, find a balance between providing for your parents and children, while also protecting your savings, retirement funds, and your future. Remember, your children can obtain student loans or work while they are in school to pay for their education. Additionally, your parents should use their own finances and assets to pay for their care as long as possible.

If you or your parents need help planning for the future, we can help. Let us review both your and your parent’s individual circumstances and determine the best strategy for you to take.

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 Con Artists Use Social Media to Scam the Elderly

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Due to their dependence on others, the elderly are often the victims of financial scams. It is becoming increasingly common for seniors to have an active online life. Whether they are using the internet to monitor their stock purchases or to view pictures of their grandchildren, technology allows them a way to connect with others. Unfortunately, it also provides a way for scam artists to use information found online to perpetrate fraud against the elderly.

For example, a common scam against older adults begins with a telephone call to a grandparent. The scammer has discovered personal information on Facebook or some other social media website that the scammer uses to get the senior to trust him or her. They may say they are a friend of the elder’s grandchild (using the grandchild’s name) and claim that the grandchild is in trouble and needs financial assistance. This type of call is often made later at night when the elderly are more likely to be easily confused. In some cases, the con artist even pretends to be the grandchild requesting money, and then an alleged physician or arresting officer gets on the phone. For a trusting grandparent eager to help, this type of telephone call can quickly lead to him or her becoming the victim of financial abuse.

If you have a loved one that is an older adult who has social media websites, it is important to discuss these types of scams with him or her. It is essential that they never wire money or provide their account information without verifying the “story” first. One quick telephone call to a family member of even to their grandchild to confirm the truth of the telephone call can save your loved one a substantial amount of money and hassle.

For more information on how our elder law attorneys can assist you and your loved one, contact our office 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, Estate Planning

Special Needs Trusts in Utah

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When you have a child with disabilities, it is imperative that you obtain help from a knowledgeable and experienced estate planning attorney. You will want to plan for your child’s care when you are no longer able to provide it, but you cannot leave outright funds to your special needs child. An inheritance from you could result in your child exceeding the limit for assets or income allowed in qualifying your child to receive government benefits. The most effective way for protecting your child is to create a Special Needs Trust.

A Special Needs Trust, also commonly referred to as a Supplemental Needs Trust, permits an individual with a physical or mental disability to hold an unlimited amount of property and assets in a trust for his or her benefit. If this type of trust is drafted properly, the assets it holds will not be considered when determining if the beneficiary qualifies for certain government benefits such as Supplemental Security Income (SSI), Medicaid, and other benefits that are based upon need. The Special Needs Trust provides for additional care and luxuries over and above the benefits provided by the government.

It is important to understand that the Supplemental Needs Trust be created before the beneficiary turns 65 years old. It is typically recommended that this type of Trust be created early in the child’s life as a long-term means for holding property for the benefit of the disabled individual. This can prove beneficial if the disabled family member receives money or gifts from personal injury settlements, transfers from relatives or friends, insurance proceeds, or similar payments.

The expenses related to establishing the Trust may be tax deductible. However, if the trust receives funds outright, it could have some tax consequences. Thus, it is crucial that you confer with a seasoned estate planning attorney that can ensure the Trust is properly drafted and that you are fully aware of the tax implications. In certain instances, it may be wise to allow the trust to pay the taxes and invest the net proceeds. Let us review your individual circumstances and give you the advice and guidance you need to protect your loved one with special 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.

Asset Protection

Protecting Assets the Right Way

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If you are interested in asset protection tools, it is important to seek legal advice from an attorney. There are several options for correctly and legally protecting your assets, but there are also many ways you can get yourself into trouble if you do not do it properly.

One of the key steps in asset protection is timing. You can accomplish the most when you do not have any potential liabilities. In other words, if you have known creditors and you take action to protect your assets, your activity could be seen as a fraudulent transfer or conveyance.

A fraudulent conveyance occurs when an individual attempts to transfer assets outside of the reach of a creditor. A common example occurs when an individual transfers a valuable piece of property to a relative so it is no longer owned by that person and the property is outside the reach of transferor’s creditors.

A common misunderstanding is that a transfer cannot be fraudulent if the asset is “sold” to a third-party. However, if you transfer the property for less than its full value, it can still be deemed to be an improper transfer. For example, if you sell a piece of artwork for $100 when it is valued to be worth $6,000, creditors that are harmed by this action could argue that the sale was a fraudulent transfer. It’s also important to know that you don’t have to commit fraud to have a “fraudulent transfer”. For example, it’s not unusual for spouses to transfer assets between themselves for estate planning purposes. But a transfer for less than full value can still be a fraudulent conveyance from a creditors viewpoint.

It is important to understand that there are numerous ways we can help you protect your assets. A few examples include creating a:

  • Trusts
  • Limited Liability Company
  • Family Limited Liability Company
  • Limited Partnership
  • Corporation
  • Offshore Trusts
  • Other forms of ownership entities for your assets

If you are interested in learning if now is the ideal time for you to take asset protection measures, contact our office to schedule your 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

Important Facts About Offshore Trusts

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If you are interested in protecting your assets, you may want to consider establishing an offshore trust. Offshore trusts allow you to transfer your property and assets into the trust and the trustee becomes the party responsible for managing the assets and distributing them to beneficiaries as set forth in the trust document.

Assets You Can Transfer Into an Offshore Trust

There are a wide variety of types of assets that can be held be an offshore trust, including:

  • Funds deposited in bank accounts
  • Investments
  • Real property
  • Intellectual property
  • Life insurance policies issued on your life
  • Most other types of assets

Advantages of an offshore trust

Offshore trusts offer numerous benefits. They are an effective tool for wealth protection, they offer privacy, and they can be tailored to meet the specific needs of your family. Offshore trusts are recognized in most jurisdictions and they be an important tool in estate tax planning.

In determining if an offshore trust is the best solution for you, we can review your individual circumstances and help you understand all of your options. In general, an offshore trust benefits individuals who want to protect their wealth against uncertainty in the economy or within their own family. It can help you distribute your property and assets to your heirs in a tax-efficient manner and in a way that minimizes estate taxes. An offshore trust also allows you to consolidate the ownership of assets that may be located in a variety of locations (including on different continents) in one place.

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

Retirement Planning

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It is difficult to think about planning for your retirement when you are saving for your children’s college and simply trying to pay for daily expenses, but it is important to do so. Of course, the priority of your retirement will vary depending on what stage of life you are in, but you must have a plan. Below are 5 phases of retirement planning:

  1. Retirement planning can begin as soon as you enter the workforce. You can start setting aside funds for your retirement by taking advantage of your employer’s 401k and/or pension plan. It may be necessary to start with small contributions and increase them over time, but it is vital that you get started as soon as possible. You can earn a significant amount of money by compounding your savings.
  2. When you are approximately 15 years away from when you want to retire, you should start investigating your options for the conversion of your employer retirement savings into an Individual Retirement Account (IRA). You should also begin educating yourself about Social Security and other benefits. It is also imperative that you update your estate planning documents, including verifying that your end of life decisions have been made.
  3. During the time between the day you retire until you are approximately 70 years old, you should assess your finances, your investments and your living situation. You should confer with a professional for a projection of your cash-flow in comparison to your needs to help insure that you will be adequately protected.
  4. By the time you are 70 years old, it is essential that you discuss what you want to happen when your health begins to decline. While this discussion can be difficult, it is important that your family understands your wishes and that you document them (if you haven’t already done so) in a healthcare directive.
  5. As you grow older and your health worsens, you can rest easy knowing that your planning has paid-off. Your estate plan will allow your loved ones to carry out your wishes and you can have the peace of mind that you have done everything possible to protect yourself and your loved ones.

If you are interested in learning more about retirement planning and estate planning, contact our office today to schedule your 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, Estate Planning

Credit Shelter Trusts

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Many people are surprised to learn that there are a variety of different types of trusts that can be used in estate planning. One type of trust is called the “Credit Shelter Trust,” which is also sometimes referred to as a bypass or family trust. This type of trust permits two parties (typically spouses) to divide their assets between two trusts.

For 2015, the first $5.43 million of an estate is exempt from federal estate taxes. With a Credit Shelter Trust, a married couple could potentially have no estate tax with an estate that is less than $10.86 million. This could potentially double that portion of your children’s inheritance by avoiding estate taxes. Additionally, once assets are put into a Credit Shelter Trust, they are free from estate tax. This is true even if the value of the assets increase. Therefore, if the surviving spouse invests the trust assets wisely and doesn’t need the assets for support, your children’s inheritance can continue to grow, free of any estate tax. As we often tell clients (just to make a point), the Credit Shelter Trust could grow to a BILLION DOLLARS and no estate tax will be paid when they receive their inheritance.

The Credit Shelter Trust also protects your children in the event the surviving spouse remarries. Typically the trust will contain provisions that prohibit its use for anyone except your spouse and your children or grandchildren.

There is another advantage that most people fail to consider. When a Credit Shelter Trust is created, it protects the assets of the trust from the creditors of a surviving spouse. In other words, no matter what happens to the surviving spouse, the nest egg represented by the amount set aside in the Credit Shelter Trust is protected from claims for the life of the surviving spouse.

Typically, when the first spouse dies, the surviving spouse is left a certain amount in trust for their benefit (not to exceed the current federal estate-tax exemption). The remainder of the estate passes to the surviving spouse tax-free through a marital trust or outright bequest (with any remainder to pass to your children upon the death of the surviving spouse). The Internal Revenue Code does not consider the assets in the Credit Shelter Trust as included in the surviving spouse’s estate for the purpose of calculating estate taxes. The theory is that the surviving spouse did not have full ownership of the assets held by the Credit Shelter Trust. The beauty is that they have the benefits and use of the Credit Shelter Trust, but it is asset protected and protected from the estate tax.

It should also be mentioned that the estate tax is portable between the spouses. In other words, if the first spouse to die does not use all of his or her $5.43 million exemption, the surviving spouse’s estate can take advantage of it. The surviving spouse must make this election on the first spouse’s estate tax return.

In short, the Credit Shelter Trust is beneficial if you want to protect your surviving spouse financially. This type of trust provides your spouse with a source of income if needed, while also protecting him or her from creditors, and protecting your children from loss of inheritance. It’s an excellent planning tool.

To learn more about how a trust can benefit your family, 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.

Asset Protection, Estate Planning

How to Prevent Financial Abuse of Senior Citizens

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Because many senior citizens are particularly reliant on others, they are vulnerable to becoming the victim of financial abuse and scams. If you suspect a relative, caregiver or third-party of taking advantage of your loved one, it is important to contact one of our experienced elder law attorneys for assistance.

Below are a few tips on how to prevent a senior citizen from becoming a victim of financial abuse:

  • Make sure that more than one family member is actively involved in caring for the senior and is helping with their finances
  • Avoid having money or checks delivered to your loved ones’ home – have the funds deposited directly into his or her bank account
  • Help make sure the elderly individual stays involved in community activities as much as possible
  • If your loved one has a caregiver that is not a family member or friend, conduct a thorough investigation (including checking references) of the caregiver’s history
  • Monitor the use of funds for or by any caregivers. It’s not uncommon for a caregiver to use ATM cards or credit cards to assist the family member, but it’s a prime source of financial abuse – where the caregiver withdraws funds and continually explains it was for meals or clothing or a myriad of needs that are not traceable without receipts
  • Watch out for disappearing jewelry or other property

The above tips are not a guarantee that your loved one will not be subjected to financial abuse or become the victim of a scam, but they will reduce the likelihood of it happening. The more people that are involved in the senior’s life, the more protected he or she will be.

How do you know if your loved one is the victim of financial abuse? Each case is different, but below are a few of the warning signs:

  • Significant, unexplained withdrawals of cash
  • Valuable items are disappearing from the elder’s home
  • The senior becomes isolated from others
  • Costly or inexplicable charges on credit cards
  • Your loved one is fearful of the caregiver
  • Numerous checks made out to “cash”

Not only is financial abuse a crime that can be reported to Adult Protective Services, there are other legal options that are available. To learn more, contact one of our elder law attorneys 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, Estate Planning

Succession Planning & Your Family Business

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When you have a family business, it can be difficult to balance work and family. Keeping family issues separate from business matters can be tough. As a result, it is important to establish a strategy for transitioning the company to future generations.

It is common for the owner of a family business to want his or her children to manage and run the company once he or she is gone. Even if your children have the desire to take-over the business, it doesn’t mean they have the skill or ability to do so effectively. When you are creating a succession plan, you want to pick somebody that has a combination of skills such as management, marketing, accounting and several others.

If you have more than one child working in the family business, you should observe how he or she is able to handle the daily operations as well as the other demands of the business. This isn’t the time to be “fair” or politically correct. It is the time to choose the best leader for your company. You should also observe how the children work together. If they aren’t good partners with one another, transferring the family business to them will not be a blessing.

Most business owners want to protect all of their children involved in the family business, but also be fair to those children not in the business. One option for accomplishing this is to provide the other children with non-voting stock. This allows all of the children to own a stake in the business. You could also establish a board of directors consisting of all of your children so that they can give advice and guidance, but the decision-making authority rests with the child or other relative you appointed to run the business. There are really too many options to emphasize just one or two here. Each family and business has unique problems and concerns.

If you are a family business owner and you want to learn more about creating a succession plan or a comprehensive estate plan to protect your loved ones, 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.

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.