Category Archives: Estate Planning

Estate Planning

Initial Steps to Follow when a Loved One Dies

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When a loved one dies, it can leave you wondering where to turn to next. Not only are you dealing with your grief, but you must also step-up and manage the deceased’s affairs. Before you get overwhelmed with the numerous tasks you must tackle, below is a short checklist of the initial issues you must address:

  • Contact a funeral home or mortuary. You must decide which funeral home or mortuary should be contacted. If your loved one had a specific religious preference, you should notify the appropriate minister, advisor or other leader to assist with the services.
  • Notifications. Drafting a list of friends and family members that should be contacted can be extremely helpful. Making notification calls can be emotionally stressful and you should ask for help. If you have a prepared contact list, it can make this process simpler for everyone.
  • Death Certificate. Usually your loved one’s physician or medical examiner will finalize and execute the death certificate. You will need several certified copies of the death certificate to provide to your loved one’s banks, insurance companies and other similar interested parties. Do not allow the removal of a body from the home without the medical examiner or law enforcement acknowledgement and approval. This can complicate getting a death certificate.
  • Estate plan. If your loved one had a Last Will and Testament, Revocable Trust and/or other estate planning documents, you should confer with a qualified estate planning lawyer to discuss how to handle the probate and distribution of your loved one’s estate.

The above are examples of the initial matters that require your attention soon after a loved one dies. Our next blog titled “Affairs to Handle after a Loved One Dies” will go more in-depth in discussing the other tasks that should be handled after the funeral or other services. Remember, our attorneys are here to help you with everything you are facing when a loved one dies. Also, if you or a family member needs assistance in preparing an estate plan, 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.

Estate Planning

Divorce & Revising Your Estate Plan

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When you get a divorce (or legally separate from your spouse), it impacts every part of your life. Divorce constitutes a major life event, which means that you should review and revise your estate plan. Below are a few of the areas of your estate plan that you should consider updating after your divorce has been filed:

  • Beneficiaries. Most married couples have an estate plan that provides that all of their assets should transfer directly to their spouse upon their death. Presumably, you will want to remove your ex-spouse and name a new beneficiary of your estate.
  • Incapacitation. If your ex-spoue is named as your healthcare agent or financial power of attorney, you should name an adult child, parent, or trusted friend to handle your affairs if you become unable to act for yourself.
  • Account beneficiaries. Updating your estate plan will not change the beneficiary designations you have made on certain accounts and policies. For example, if you have life insurance policies that have your ex-spouse listed as your pay-on-death beneficiary, it is important to contact the life insurance company and update your beneficiary designations. The same is true for accounts such as your retirement accounts or bank accounts.

We understand that going through a divorce is an extremely difficult time in your life. However, to avoid unintended transfers of your assets or having important decisions made on your behalf by your ex-spouse, it is essential to update your estate planning documents as quickly as possible.

If you are facing divorce or another major life event, let us help. We can help you understand the areas of your estate plan that should be reviewed and updated.

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

Is Estate Planning Easier for Singles?

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It seems most things in life are more difficult if you are single and having to handle everything on your own. However, when it comes to estate planning, singles may have it easier. Creating an estate plan means making numerous important financial decisions. When you are single, you don’t have to confer with anyone else or make compromises during the decision-making process. Once you have decided who you want to be your beneficiaries, your power of attorney or trustee, there is no further debate or argument. On the other hand, a single individual with no children can have some agonizing decisions to make over individual bequests to friends or family or even charities.

Estate planning is especially important for single adults. As we have written in prior blogs, spouses or children are already heirs under the probate code. But if you are single and have no children, your parents are your first heirs, then siblings and then nieces and nephews. That group of beneficiaries is not as intuitive as spouse or children. Also, because you do not have a spouse that can make certain decisions on your behalf under the law, you need to appoint somebody to make decisions if you become incapacitated. In other words, appointing a healthcare proxy or a power of attorney to have the legal authority to make decisions on your behalf is a crucial part of a single person’s estate plan.

An even more compelling case can be made for a single person to complete their estate planning if they have children. Sometimes couples are complacent about planning, because they believe that the survivor will take care of things (not a good plan mind you). A single person can’t rely on a surviving spouse. There is no one who can be relied upon to handle the kids inheritance or set things up if the single person dies. It’s something they just need to do.

Similarly, retirement planning can be easier or more difficult if you are single. Married couples may be better able to save for their future if they have two incomes to rely on for the contributions. It is also helpful if you have somebody to be accountable to when trying to save money. There is an extra incentive to stick to the plan when your partner is there to hold you accountable. On the other hand, inability to agree on goals and objectives, extra expense if only one spouse is employed, and indecision can make it more difficult for married couples. This is particularly true in couples where one is a spender and the other is a saver because the save is not always able to keep the other on track. But a single person has to make affirmative decisions about retirement planning and designating beneficiaries who will receive assets after death.

Whether you are single or married, estate planning and retirement planning are essential to your future. Let us help you create a strategy that will protect yourself 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, 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.

Estate Planning

Do you need an Estate Plan? Take this Quiz to Find Out!

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Many of our blogs discuss why you need an estate plan and most people will tell you that they intend to create one …. eventually. In fact, it is common for people to believe they don’t need an estate plan until later in life. Below is a short quiz that will help you determine whether you should be estate planning now instead of later.

1. Are you a homeowner?

If you own any type of real property, you have at least one valuable assets that requires estate planning. Your home cannot be divided among your beneficiaries and selling it may take months, which means your loved ones will have to wait to receive their share of the proceeds. Even if you have a “small estate,” because it is real estate, probate becomes necessary. For larger estates, there could be estate tax issues. Lastly, if you are married, you will want to ensure that your spouse can continue living in the home after you are gone.

2. Do you have minor children?

If you have any children under the age of 18 years, it is extremely important that you appoint a guardian if something should happen to you and your spouse. Completing the proper documentation will ensure that your children are not placed into foster care or become wards of the state if there are loved ones willing to care for them. You should also consider appointing a trustee for them to hold any financial assets until they reach a suitable age.

3. Do you want to decide when your heirs will receive their inheritance?

If you do not have a comprehensive estate plan in place, your property will most likely go through several processes. Insurance, IRA’s, 401(k)’s or similar assets may be distributed by beneficiary designations. Other assets may go through the probate process before they can be distributed. Probate can be complicated and expensive if you have not planned for it. But worse, you may have assets going in several different directions in an uncoordinated way, without any control by you. With an estate plan, you have the ability to coordinate where everything goes, and you decide the timing and circumstances under which your heirs will receive their inheritance. For example, you may want your children to graduate from college or reach the age of 25 years (or older) before their inheritance is distributed to them.

4. Do you want to leave medical or end-of-life instructions?

If you are adamant that you do not want to be kept alive by machines or have your estate diminished by this type of end-of-life care, you need to have an advanced healthcare directive that sets forth your instructions if you are in a vegetative state, have a terminal illness or are dying.

The above four questions are simple examples of why estate planning is necessary for everyone, regardless of the size of their estate. Estate planning impacts a variety of areas in your life, so it is important to stop procrastinating and take action now. Let us help you determine what kind of planning will benefit you and your loved ones.

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 Common Sense in Your Estate Planning

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When you think about estate planning, you probably envision it being a very complex process. While it can involve complicated issues, estate planning should also encompass a significant amount of common sense. For one, take time to really think about what you want to accomplish with your estate plan. You take time to plan your daily tasks and figure out ways to make life easier, so apply these same principles to your estate plan:

  • Stop procrastinating. If you wait until you are under a deadline (or until it is too late), it makes the process more expensive as well as more stressful. The more you can pre-plan your estate plan, the more likely you will have success in meeting your goals. In fact, there are certain areas of estate planning (such as Medicaid, retirement and long term care) that you should start thinking about years before you believe you’ll actually need it.
  • Get organized. You have probably learned that making a list of what you need before you go to the store makes your shopping trip easier and quicker. The same principle applies to estate planning because the more forethought you put into setting your goals, the easier it is for your lawyer to efficiently achieve those goals.
  • Understand it is an investment. Don’t be tempted to use the cheapest attorney you can find without investigating his or her experience and reputation in the area of estate planning. Your estate plan is an investment for the future, so you want to ensure that your plan will stand the test of time.
  • How do you know whether you have found someone with experience and ability? Try this test: (i) ask how many will or trust clients they met with in the last week and month; (ii) ask whether they understand probate and tax laws; and (iii) go online and see what areas of law they practice. If their online presence includes personal injury, divorce, DUI, criminal defense, bankruptcy, etc. they are not a specialist in estate planning.
  • You may not make everyone happy. It is important to realize that your estate plan may not please all of your heirs. However, it is your property, assets and wealth that is being distributed, so you should do what you want in creating your estate plan.

If you do not have an estate plan or you have one that is outdated, let us 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

Three Estate Planning Documents for your 18 Year Old

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Once your child reaches 18 years of age, he or she is considered to be an adult under the law. Many parents do not realize that this means that they will now need written authority to make medical or financial decisions on their young adult’s behalf. This may include the simplest things such as requesting your child’s immunization records to more serious decisions such as the appropriate medical treatment when your child is involved in a serious accident. This is true, even if your child is still in high school!

If your young adult will be receiving his or her high school diploma soon or turning 18 in the next year, below are three documents you should strongly consider having drafted and signed:

Advance Health Care Directive. Although nobody wants to think about anything bad happening to their child, it is important for your young adult to appoint a parent (or another loved one) to be their health care agent. This grants authority to the appointed individual to make medical decisions if your child is in a condition where they can’t make their own decisions, or if you just want to take them to the Doctor or hospital. It can also set forth his or her wishes regarding long-term care or the use of life support if he or she is left in a permanent vegetative state or is dying.

HIPAA Forms. To ensure that you can confer with your child’s doctors and other medical staff, your young adult should sign HIPAA forms. An Advanced Health Care Directive also accomplishes this.

Power of Attorney. Your young adult may encounter an emergency in which you will want the ability to access his or her bank accounts or to otherwise be able to act financially for him or her. Having a financial power of attorney gives you this power.

As your child progresses in life and begins to accumulate possessions and wealth, it is imperative that he or she create an estate plan. Even a modest estate should be protected and we can help your young adult determine what strategy is best for his or her situation.

Sending your adult child out into the world can be difficult, but having the proper documentation in place can provide you with the peace of mind that you can be there and have the authority to help if needed.

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

Beneficiary Mistakes to Avoid

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Although estate planning can provide you with significant protections, most people want to take measures to provide for their loved ones. When it comes to designating your beneficiaries, there are numerous common mistakes that you will want to avoid. Of course, working with a knowledgeable estate planning attorney will help you prevent such errors, but below are examples of mistakes you want to avoid when designating the beneficiaries to your estate plan, life insurance, or retirement plan:

  • Failure to name a beneficiary
  • Failure to name a contingent beneficiary
  • Failure to update or change your named beneficiary if you divorce
  • Designating a beneficiary who receives needs-based government benefits (such as an individual with special needs)
  • Naming minor children as beneficiaries
  • Failure to change a beneficiary designation when your original beneficiary dies
  • Designating a beneficiary that has serious creditor problems
  • Naming a beneficiary that is incapable of properly managing money or assets
  • Mistakenly believing that your estate planning documents will control your life insurance or retirement account beneficiaries

The above mistakes are often made when people attempt to draft their estate planning documents without professional guidance. You only get one opportunity to create your estate plan, so don’t put it at risk of not being done right. Estate planning involves fitting numerous pieces of a puzzle together and beneficiary designations are an important piece. Avoiding mistakes in naming your beneficiaries ensures that your property will be passed how and when you choose.

Let us help you create or update your estate plan and your beneficiary designations. 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 You shouldn’t Transfer Your House to your Child

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If your home is your primary asset, you may believe you can accomplish your estate planning goals by transferring ownership of your house to your child while you are still alive. Although this can keep your house from going through the probate process, it can also create significant issues such as:

  • Transferring your house while you are alive means that you will lose any property discounts that you are eligible for (many states offer discounts to persons over 65) which will result in an increase in your property taxes. Some states also charge a fee for every transfer. Not understanding this can be very costly to you. Depending on your financial situation, this could get you into tax trouble.
  • If your child has had financial struggles, transferring your house to him or her could put it into jeopardy. Once title to the home is in your child’s name, it becomes vulnerable to your child’s creditors and other legal troubles. What if your child files bankruptcy? Your house is their asset!
  • Although you may have a strong relationship with your child, nobody knows the future. If you were to have a falling out, your child will not be legally obligated to allow you to continue to live in your home without a lawsuit.
  • If you have more than one child, transferring title of your home to only one child can cause sibling rivalry and disputes. However, putting all of your children’s names on the title to your home can also cause fighting if they can’t agree on what to do with it. Having numerous names on the title can also make the home vulnerable to all of their creditors.

The transfer of title to your children is subject to the federal gift tax. While it may be exempt from payment of a tax (depending on the size of your estate), it still requires filing of a gift tax return.

You could lose the step-up in basis under the tax laws which means your children pay income tax on the future sale of your home.

Your creditors can still set aside the transfer to your children. The Fraudulent Conveyance Act protects creditors where you transfer assets without adequate consideration.

It is important to remember that even if you transfer your home out of your name, there are other assets in your estate that may still make a probate action necessary. If you hope to avoid probate, lower tax liability, and save you and your family money, contact us for an appointment. Creating an effective estate plan does not have to be expensive – let us help! To be perfectly honest, we almost never recommend transfer of a house to your children as a strategy to avoid probate or taxes. There are better and more effective tools.

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.