If you are considering creating an estate plan, you are probably looking at using a trust. Trusts are very effective estate planning tools and they provide you with significant flexibility in ensuring your wishes are carried out. Additionally, a trust spares your family from the cost and delay of having your estate go through the probate process. A “living trust,” or one that is created while you are alive, can be revocable or irrevocable.

Revocable trusts

One of the primary purposes of creating a revocable trust is to avoid probate. However, in Utah the probate process is not nearly as burdensome as it is in many other states. However, there are still many other reasons for having a revocable trust, including:

• You can maintain control of your assets
• You can avoid a conservatorship if you should become incapacitated
• You have the ability to change the terms of the trust during your lifetime, including the named beneficiaries or adding/removing assets from the trust
• You can revoke or cancel the trust
• You can maintain privacy with a trust

Irrevocable trusts

An irrevocable trust cannot be changed or revoked by you once the trust agreement has been finalized and signed. Thus, once the assets are transferred into the trust, you are no longer the owner of them because the trust holds title to them. An irrevocable trust can be helpful in a few important ways:

• The income to the trust may not be taxable to you as the trustor
• The assets in the trust may not be subject to death taxes in the estate of the trustor
• It allows you to leave an inheritance for minor children or other beneficiaries and control the timing and the circumstances under which they receive the money
• It can protect the trust assets from beneficiary’s creditors

With any type of trust, it is important to remember that the trust is not effective until it has been funded. This means you must transfer title to your real estate, bank accounts and other assets out of your individual name and into the trust’s name.

Let us help you decide which type of trust will benefit you and your family the most. 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.

One of the most important documents that a business-owner can have is a buy-sell agreement. It serves many important functions. One of the most important is to govern how the ownership interests in the business entity can be transferred upon a defined triggering event, such as an owner’s death, incapacitation, retirement, bankruptcy or divorce. Providing a roadmap for dealing with business disputes while all the parties are getting along can save everyone time, money and stress when difficulties arise.

The buy-sell agreement should provide business owners who are unable to resolve disputes on their own, a means for resolving their differences. It should also address exit strategies if the disputes cannot be adequately resolved, including an agreed upon method for valuing ownership interests. In effect, the agreement provides a way for you to avoid litigation while still resolving disputes.

The three types of buy-sell agreements are:

• Redemption agreements. When an owner leaves the business, or attempts to sell their interest, the entity may purchase his/her interest.
• Cross-purchase agreements. When an owner departs from the entity, the remaining owners may purchase the departing owner’s interest.
• Hybrid agreement. True to its name, it is a combination of both types of agreements. The exiting owner’s interest is offered to the remaining owners to buy. If the remaining owners decide not to purchase it, then the entity may buy the exiting owner’s interest.

The buy-sell agreement may provide for maintaining life insurance to cover the cost of a buyout in the event of an owner’s death.

The buy-sell agreement can be a complex document and it requires strategic planning. There are many events that can give rise to exercising a purchase option among co-owners of a business. We can help you understand the tax consequences to each owner and to the entity. We can also work with you to create an agreement that will not only help ensure the successful operation of your business, but also provide exit strategy options to help avoid litigation in the future.

If you are interested in learning more about protecting your business with a buy-sell agreement, 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.

The key to effective asset protection planning is to start early. If you take action while things are good, you will be protected if you get caught in difficult situations later. More importantly, by taking action now, you can help protect yourself from being held in contempt or for fraud. Below are a few general pointers if asset protection planning, but it is imperative to obtain legal counsel regarding your unique situation.

• Plan Now. There are many protective measures you can take now before a claim arises that you will not be allowed to do afterwards because after a claim arises, your actions could be considered “fraudulent transfers.” In fact, attempting to protect assets after a claim arises will typically make matters much worse.
• Insurance. It is important to maintain liability and professional insurance. Asset protection planning is not a substitute for these types of insurance, but rather a supplement to them.
• Trusts. Your personal assets are not always protected just because you have a business entity such as a LLC, corporation or partnership. Personal assets can be put into jeopardy if a creditor pierces the corporate veil or successfully proves an alter ego theory. Thus, it is important to place personal assets into a properly drafted trust and take steps to properly fund the trust.
• Control. You must find a balance between retaining some control over the assets, but not too much that a creditor will be able to successfully argue that the debtor and the asset protection structure are alter egos or essentially the same.
• Simplicity. This may seem counter-intuitive, but having an extremely complicated asset protection plan can backfire. You should assume that at some point your plan will be reviewed by creditors and/or a judge. If you cannot explain how the assets are held or why they were transferred, your creditors and/or the court are likely to get suspicious.

If you are interested in learning more about asset protection planning, 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.

Many people incorrectly believe that they do not need a trust because they do not have a large estate full of expensive assets. However, a trust is an estate planning tool that can be extremely beneficial for estates of all sizes. Don’t simply assume that you do not need a trust. Let us review your individual circumstances and help you create the best estate plan to fit your unique needs and goals. It’s rare that a person cannot benefit from the use of a trust.

In determining whether a trust would be a good estate planning option for you, it is important to consider numbers factors such as:

• Do you own real property, a business or other type of significant real estate asset?
• Do you want to avoid your estate being used to pay taxes?
• If you have a disabled family member, would you like to provide for him/her without disqualifying him/her from government assistance?
• Does your estate have a net worth of at least $100,000?
• Do you want to direct who inherits from you and when your estate is paid to them?
• If you spouse should become disabled, do you want to provide for him/her and avoid guardianship proceedings?
• Do you want to provide for your spouse while he/she is living, but be able to dictate who receives the remainder of your estate after your spouse dies (often used in a second marriage and you want your children to inherit)?
• Do you want to avoid the expense of a probate action?
• What will happen and who will manage your assets for you if you become incapacitated? Do you want to avoid probate court conservatorship proceedings?
• Do you own property in more than one state?

The above list is not exhaustive, but it gives you an idea of the factors that should be considered when creating a comprehensive estate plan. Let an experienced estate planning attorney help you decide if a trust would be beneficial to 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.

If you have a loved one who is no longer able to take care of him/herself, you may want to consider being appointed as a guardian. A guardian is an individual appointed by the court to be a substitute decision-maker for another person. The procedure for having incapacity declared is strictly governed by law, not by what a physician says. However, medical information is necessary to assist the court in making its decision. Thus, it is important to have a knowledgeable lawyer assist you in the guardianship process.

You begin the process by filing a petition with the court to determine incapacity and appoint a guardian for your loved one (the “respondent”). The petition must be properly served on the respondent. Utah law requires the respondent to be represented by a lawyer, whom the respondent may choose or the court can appoint one.

The respondent is typically examined by a physician. The respondent must attend the hearing, or if he/she is unable to do so, the court will appoint an objective party called the “court visitor” to investigate the ability of the respondent to appear unless clear and convincing evidence has been presented as to why the respondent cannot attend (such as being in a coma)

After hearing all of the evidence regarding the respondent’s incapacity, the court will decide if a guardian should be appointed. Once a guardian is appointed, the respondent is called a “ward.” Depending on the severity of the incapacity, the guardian will be given limited powers or full authority to act for the ward. A limited guardianship means that the guardian only has the decision-making authority in defined or limited areas of the ward’s life. A plenary or full guardianship transfers all rights from a ward to a guardian.

The guardianship process can be emotional and overwhelming. Let us help you decide if it is the right decision for your loved one. 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.