Tag Archives: estate plan

Asset Protection, Estate Planning

Don’t Overlook the Importance of Life Insurance

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When it comes to creating an estate plan, you want to be as comprehensive as possible. Many people may not consider life insurance as part of their estate plan, but it is an important component in protecting your loved ones. In fact, if you have young children or a loved one with a disability, obtaining life insurance can be an effective way to ensure that they are provided for after you die. It allows your loved ones to obtain immediate cash at a critical time.

Determining the amount of life insurance you need may not be simple. You must consider both your long-term and short-term goals, as well as the needs of your family members who have been dependent on your income.

When you have minor children, you must consider how long it will take before they will be financially independent. If you have older children that are employed, they may require less monetary support than the younger children.

As general guidance, you must calculate the long-term needs of your dependents. This includes figuring how much of your income is provided to them every year, subtract the value of the assets you will pass down to them as well as any monetary support they will receive from other family members. This gives you an estimate on what each dependent will need.

In considering the short-term needs of your dependents, consider whether they will require quick access to money or assets. If most of your property is not easy to access or able to be immediately liquidated, then proceeds from life insurance can provide money for your loved ones to live on while they convert assets to cash.

It is our goal to provide you with the most comprehensive estate plan and asset protection plan as possible. Let us review your individual circumstances and help you create the best strategy for 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.

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

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

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

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.

Estate Planning

End of Life Marriages

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We’ve all heard the story where a much younger individual marries a much older person and inherits millions when he or she dies. If you have an elderly loved one that got married in his or her final years, you probably have questions regarding the new spouse’s ability to inherit. No two cases are the same, so if you have suspicions regarding the validity of the marriage and/or the revised estate planning documents, it is important to confer with an estate planning attorney regarding your legal options.

If you were a named beneficiary of your loved one’s estate plan prior to the marriage, your main tool for recourse is to object to the newly drafted Will and/or Trust that names the new spouse as the sole beneficiary. Some of the most common objections include lack of capacity, undue influence or mistake. You may also want to submit evidence that the marriage was a sham. For example, if your loved one was incapacitated, you may be able to have the marriage voided.

It is important to understand that objecting to an estate plan or attempting to set aside a marriage is not an easy task. Thus, you should obtain the advice and assistance of a skilled attorney.

It should be noted that if you have concerns regarding an elderly family member being taken advantage of by another party, you can avoid many of the problems by obtaining a power of attorney and establishing a trust for the person. These types of documents can help you avoid litigation and protect the individual, saving you a considerable amount of time and money. It will also allow you to protect your loved senior citizen from being taken advantage of later in life.

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 Trust Attorney Utah
Estate Planning, Uncategorized

What does an Estate Plan Cost?

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If you are considering establishing a comprehensive estate plan, you are probably wondering how much it will cost you. Like most things, the answer depends upon your individual circumstances. Your family and your finances are unique, so your estate plan will be designed to fit your specific needs and goals.

Before one of our seasoned estate planning lawyers can provide you with an estimate to create your estate plan, we must review your financial documents and learn about your family structure. It is important that you do not jump to the conclusion that an estate plan is too expensive! In fact, when compared to what it will cost you and your family if you do not have an estate plan, the cost is typically very minimal.

If you die without a Will, Trust and other estate planning documents, it is likely that significant portion of your estate will go to pay taxes. Additionally, it can be expensive for your family to handle the administration of your estate through the probate procedures. By paying for your estate plan now, you can save you and your family thousands of dollars in the future. Finally, you should also consider how an estate plan may help protect your assets from creditors.

To learn more about what your estate plan will cost and how it can save you money, contact our office today. We can create an estate plan that is tailor-suited to meet your unique needs and that will provide you the peace of mind that you, your family and your wealth is protected.

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.