Tag Archives: children

Estate Planning

Why New Parents Need an Estate Plan

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If you are expecting a baby or you have just had a child, you know that your world has totally changed. While all of the decisions you must make can be overwhelming, it is important to create or update your estate plan. Your child is the most important thing in your life, so you should take every step necessary to protect him or her now and in the future.

Below are a few reasons why new parents need to create or update their estate plan:

  • Appoint a guardian for your minor children. Nobody likes to think about not being there for their child, but none of us know the future. Thus, if something should unexpectedly happen to you or your spouse, it is important to choose who will raise your child. You should confer with the person you want to appoint to serve as the guardian of your minor children to verify that he or she is willing to do it. You should also name alternates in case your first choice is unwilling or unable to serve as the guardian when the time comes.
  • Create a trust. A trust can help ensure that your child’s financial future is protected. A trust provides you flexibility in deciding when and under what conditions your child will inherit from you, which may include a provision stating that your child must reach a certain age before distributions from the trust should be made.
  • Select a trustee to manage each child’s inheritance. You will want to consider appointing a trustee who will invest wisely on behalf of your child.
  • Provide for any special needs. If your child has special needs, you must take care in creating your estate plan. You will want to create a special needs trust to ensure that your child’s needs will continue to be provided for without jeopardizing his or her eligibility to receive government assistance.

If you are expecting a child or you are a new parent who would like to learn more about creating an estate plan to protect your child’s best interests, call 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.

 

Estate Planning

Using 529 Plans as Part of Your Estate Planning

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As the cost of higher education continues to rise, many parents are worried about whether or not their children will be able to afford to attend college or other advanced school. If you are interested in helping your children, grandchildren or other loved ones with paying for college, you may want to consider using a 529 plan as part of your estate planning efforts. A 529 plan gets its name from Section 529 of the Internal Revenue Code, which established the education plans in 1996.

A 529 Plan is a savings plan created solely for the purpose of funding an individual’s education. These plans are operated by state or educational institutions. A 529 Plan allows your family to make donations throughout the child’s life to assist with saving for future expenses related to their education.

Each state offers at least one type of 529 plan, each with its own benefits. Thus, it is important to confer with your estate planning attorney to discuss which plan best fits your needs. You do not have to choose the 529 savings plan offered by the state where you reside. You can choose any plan and the money saved in it can be used to pay for any qualified educational institution across the country. The state where your 529 plan was created does not impact where you must attend college.

To learn more about the tax benefits of establishing a 529 plan, please read our blog titled “Do 529 Plans have Tax benefits?”

Finally, it should be noted that some people prefer to use an irrevocable trust for education because of the flexibility a trust provides and the ability to control the funds while serving as the trustee. If you are trying to decide whether a 529 or an irrevocable trust would be more beneficial for you and your loved ones, 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.

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

Setting Boundaries for Your Bequests

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When you create an estate plan, you have the flexibility to decide how and when your assets will be passed to your loved ones. You can also send a message regarding your values and priorities along with your wealth. If this is important to you, let one of our knowledgeable estate planners help you accomplish this goal.

There are numerous ways your estate plan can transfer not only your property, but also provide some instructions or directions to your beneficiaries. For example:

  • If you want to ensure that your beneficiaries do not spend their inheritance too quickly, you can put the money into a trust with instructions on when disbursements should be made (such as when the beneficiary reaches a certain age, graduates from college, etc)
  • If you have a “blended family,” you may leave direction regarding who you specifically consider as family or as your intended beneficiaries
  • Your estate plan can allow you to leave unequal amounts to your loved ones. This is especially important if you have a less privileged and/or disabled child. You may also want to discuss the reasoning behind your decision with your other beneficiaries so there are no hurt feelings.
  • If you have concerns regarding creditors or bitter ex-spouses (yours or those of your beneficiaries) attacking your assets, you can place inheritances into a trust.

Your estate plan can be tailor-made to suit your needs. We have assisted numerous clients (over 2000) with complicated family relationships and complex finances. Whether you want to provide your loved ones with financial guidance from the grave or you want to motivate them to accomplish certain important goals, 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.

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, 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.

Estate Planning

Should your Estate Plan Include a Prenuptial Agreement?

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MarriageMost people incorrectly believe that prenuptial or ante-nuptial, or premarital agreements are only advantageous for the wealthy or famous. However, having a prenuptial contract can be an important part of your estate planning process, especially if you have been married more than once and you have children from a prior marriage. In fact, it is possible for a new spouse to invalidate your estate plan if you don’t take action to protect it.

By way of example: You and your spouse have children from previous marriages, you and your spouse are living in the home your children were raised in, and you want your children to inherit the house. Without taking the appropriate estate planning steps, it is possible your new spouse could inherit the home and pass it on to his or her own children upon his or her death.

You can prevent this from happening by either having a prenuptial agreement or by setting forth your wishes in a comprehensive and updated estate plan. It is important to have your intentions set forth in writing. If you sign a prenuptial agreement, you must ensure that the contract is entered without undue influence and the parties made full financial disclosures. In an estate plan, you can dictate how your assets should be distributed under a will or trust. Estate planning provides you with flexibility in determining who should inherit and when the distribution should take place (such as when your children reach a certain age). A prenuptial agreement also has the benefit of protecting your assets from being decimated by a new spouse in the event of divorce.

If you are interested in learning more about protecting your loved ones with an estate plan, please contact 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.

Uncategorized

Dividing Your Estate Between Your Children

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children on beach_edited-1When you are raising your children, you want to be fair and treat them equally. However, when it comes to estate planning, you may want to use a different strategy. Every person is unique and your children have different life circumstances and needs. Therefore, it is important to consider whether each child should be treated differently in your estate plan. In many situations, treating your children exactly the same in your planning could lead to negative consequences.

You may be worried about how your children will feel about being treated differently. Giving your children different types of inheritances does not mean that you can’t treat them equally. Consider the following:

  • If you have one child that is an adult and one that is still a minor, you may want to consider leaving the adult child a lump sum payment while leaving the minor’s inheritance in a trust for distribution at a certain age.
  • You may have one child that is better-suited to serve as the executor than another child. Regardless of your children’s order of birth, you should appoint the child best equipped for administering the estate (even if it is your youngest child).
  • If you have a child that is unable to properly manage finances, consider leaving a scheduled payment plan, or the share in trust for him or her instead of giving an outright payment. This can be extremely important in providing for your child for a longer period of time.
  • If you have the financial ability to make gifts during your lifetime, you may want to take advantage of the annual gift tax exclusion and make gifts to your children while you can enjoy watching them take advantage of it or for purposes of reducing inheritance tax. For other children who are not ready to receive their inheritance, you can place their gifted money into a trust.

Estate planning provides you with flexibility. You can provide for your children in any number of ways to meet their individual needs. To learn more about creating an estate plan that provides for your children’s unique needs, 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.

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When Should I Update my Estate Plan?

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AlarmClockMany individuals think that their estate planning is complete as soon as they have created their estate plan. However, it is important to remember that your estate plan should be updated as your life circumstances change. It is commonly stated that you should have your estate plan reviewed every few years (at a minimum), or when one of the following events occurs:

  • Marriage. Don’t assume that your spouse will automatically be appointed as the executor of your estate. If you die without a will (intestate), the law of the applicable state will determine how your assets are distributed. By regularly updating your estate plan, you can ensure that the person you want to administer your estate is appointed and you can set forth how you want your estate distributed.
  • Children. When you have a child (including adoption), your estate plan should be updated to include the child. An estate plan can appoint a guardian for any minor children in the event both parents die. You can also create a trust as part of your plan and dictate when and how your children will receive their inheritance.
  • Divorce or death. You should review your estate plan if you get a divorce or your spouse dies to determine whether they still reflect your wishes. Most people want to name somebody other than their ex-spouse as their health care proxy, power of attorney, or as a beneficiary of your estate.
  • Remarriage. If you get remarried, your estate plan should be updated to include your new spouse. This is especially important if you or your new spouse has children from prior marriages because you will want to ensure that your children are provided for as you intend.
  • Retirement. When you reach retirement age, it is essential to review all of your finances, including your estate planning documents.
  • Significant financial changes. If your finances undergo a significant change, especially if your estate has dramatically increased in value, it is important to update your estate plan to determine if you need to shelter assets or take action to avoid certain taxes.

The above are just a few examples of events that warrant reviewing your estate plan. If you have an existing estate plan that you have not reviewed in several years, let us help you ensure it still reflects your wishes.

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.