Tag Archives: deceased

Estate Planning

Probate Property – What is it?

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When you think about your estate going through probate, you may wonder what it means for your property. Probate is the procedure used by the court to administer the estate (i.e. pay creditors and locate assets) of a deceased person, including distributing his or her assets as directed by a will or under the law.

So, what constitutes probate property? Any assets held solely in the name of the decedent are considered property of the probate estate. Common examples of probate property include:

  • Real property (houses, commercial property, land, rental property)
  • Cars, trucks, boats, ATVs, and motorcycles
  • Bank accounts
  • Investments
  • Stocks and bonds
  • Proceeds from a life insurance policy (if payable to the decedent or his/her estate)
  • Any other personal or real property

The above list is not exhaustive and there could be a variety of other types of assets that could be included in your probate case. Thus, it may be easier to understand the types of assets that will not be included in a probate action such as:

  • Property the decedent owned jointly with another party
  • Assets where there is a designated beneficiary upon death such as life insurance and retirement assets
  • Pay-on-Death or Transfer-on-Death accounts
  • Life estate assets of the decedent

Again, this list is not exhaustive. In sum, however, assets that are not included in the probate process are those that no longer belong to the decedent at the time of his or her death because they transferred by operation of a contract or under the law.

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

Personal Representatives in Utah

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A personal representative is the name used to refer to the individual who administers the estate of a deceased person. To be eligible to serve as a personal representative, you must be 21 years of age or older, of sound mind, and have no conflicts of interest with the estate.

In some cases, more than one qualified individual may want to serve as the personal representative of an estate. If this occurs, appointment occurs in this order:

  • the person appointed in the will being probated
  • the deceased’s surviving spouse who is an heir of the deceased
  • other devisees of the deceased
  • the surviving spouse of the deceased
  • other heirs of the deceased
  • if no other individual has been appointed within 45 days after the person dies, a creditor can be appointed

It is also possible for an estate to have more than one personal representative serving at the same time. They are referred to as “joint personal representatives” or “co-personal representatives.

Once a personal representative has been appointed, he or she has numerous duties and obligations under the law, including:

  • obtaining control over the estate’s assets
  • preparing an inventory and appraisal of the property owned by the decedent
  • providing financial reports to “interested persons” who request it
  • filing tax returns and paying an taxes due
  • giving notice to creditors
  • paying valid debts of the decedent, including expenses related to administering the estate
  • determining and making the distributions to be made to heirs and beneficiaries
  • Closing the probate action

If you have been appointed as a personal representative and you need help, contact us for 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

Is Probate Necessary if my Estate is Small?

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Many people believe that they do not need an estate plan because their estate is small. However, it is important for everyone to have an estate plan. It doesn’t have to be complex, but it is important to have one. The truth is, if you don’t consciously create a plan, there is one that applies anyway.

That being said, in Utah, if an individual dies with an estate that is less than $100,000 and none of the individual’s assets include real property (house, time share, rental property or a building lot), a probate will not be needed. The deceased’s assets can be distributed to the individuals who are entitled to receive it by submitting an affidavit to the banks or other entities who hold the property. This method can be used whether the individual died with or without an estate plan.

If your estate is eligible for the affidavit process, you do not need a revocable trust in order to avoid probate. However, at the very least, you should still have a will, power of attorney, healthcare directive and other estate planning documents. Additionally, if there is a possibility that your estate will increase over time or the value is more than $100,000, it becomes more compelling to create a revocable trust anyway. A trust can also be beneficial for an elderly individual who wants to avoid a court-supervised conservatorship in the event he or she becomes incapacitated.

In short, you should never assume that your estate is too small to warrant creating an estate plan. Let us review your individual circumstances and help you understand whether you need a plan and what type of estate planning would be most beneficial for 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

What is an Estate Tax?

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Estate taxes can be complex and difficult to understand, especially since the law is frequently changing in this area. If you have estate tax planning concerns, you should seek the advice and guidance of a knowledgeable estate planning attorney. Below are a few pointers for a general understanding of estate taxes.

The estate tax is a federal tax on transfers that is imposed on the estate of a deceased person. Nine months after an individual dies, the estate tax return and the payment of taxes, if any, is due.

The good news is that the majority of estates do not owe taxes because of the various exemptions that are available for each decedent. The amount of the applicable exemption changes fairly frequently, so it is important to be aware of the current amount allowed. In 2002 and 2003, the exemption amount was $1 million. It was increased to $1.5 million in 2004 and 2005, $2 million in 2006 through 2008, then up to $3.5 million in 2009. There was no estate tax at all for individuals who died in 2010. In 2011, the exemption was raised to $5 million per person in 2011, it was $5,120,000 per person in 2012, and in 2013 it was $5,250,000. In 2014, it was $5,340,000 and the 2015 estate-tax exemption is $5.43 million per individual. This means that if your estate does not exceed the exempt amount, now $5.43 Million, your estate will not pay an estate tax!

In order to get an estimate of how much estate tax will be due, you should add up all of the property in the estate that is subject to an estate tax. Essentially, this is everything you own or control, including pension plan assets, IRA’s, 401(k)’s, and life insurance you have control of. From this total, you subtract all of the applicable exemptions and deductions (this isn’t intuitive, so if your total assets add up to $5.43 Million or more, you need to see counsel to review this with you). If the end result is more than zero, there may be some estate tax due.

A qualified estate planning attorney should be able to advise you about this and help you understand whether you are subject to the estate tax or not. Surprisingly, there are attorneys that claim to be estate planners who do not understand the estate tax. Ask those specific questions to the attorney you are working with. If he or she is the least bit unclear about this area of law, they are not the estate planning attorney for you!

To learn more about what property is subject to estate taxes or what exemptions and deductions may apply, contact us 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.