Tag Archives: trust

Estate Planning

What if an Heir Dies First?

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When it comes to administering a loved one’s estate, you are likely to be faced with a broad range of issues. As a result, you should confer with a seasoned estate planning attorney to ensure that you comply with the law and that you do not incur personal liability. One of the most significant problem areas for estate administrators occurs when it comes to distributing the assets of the estate. For example, what should happen if an heir dies while the estate is being administered?

All estate administration cases are unique and depend on the terms of the will or trust. In general, if a beneficiary is not related to the deceased by blood, then depending on when they died, his or her gift lapses or fails. This means that it becomes a part of the residue of the estate and will be distributed as provided in the estate planning documents.

If the beneficiary is related by blood to the deceased and the will does not set forth an alternate disposition, the descendants of the deceased beneficiary will probably inherit as follows:

  • The inheritance intended for the deceased heir may pass directly to his or her estate
  • If the heir died and left an estate plan, his or her inheritance will likely be distributed to the beneficiaries according to the terms of the estate plan
  • If the heir dies without an estate plan, his or her inheritance will be distributed as provided under the laws of intestate succession

In order for an inheritance to be distributed to the beneficiaries of the deceased heir’s estate, a separate probate case may need to be filed for the deceased heir, depending on the type of assets and the value of the decedent’s estate.

We know that these types of issues are complicated and we are here to 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

Choosing the Trustee for a Special Needs Trust

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If you have a loved one with special needs, you know that it can be physically, mentally and financially demanding to care for them. It can also be extremely nerve-racking to worry about who will take care of the special needs individual when you are no longer able to do so. To find peace of mind, it is important for you to take action now to insure that your loved one will be not only provided for, but also properly cared for after you are gone.

One of the most effective tools for protecting an individual with special needs is to establish a special needs trust. One of our estate planning attorneys can walk you through the process and make sure you understand all of your options. However, one of the most difficult decisions to make is often selecting the trustee for the special needs trust.

There are a wide variety of government programs that provide benefits to disable individuals. However, these programs typically determine the individual’s eligibility based upon financial need. As a result, it is vital that you carefully plan how any money or assets are given to your loved one to ensure that he or she is not disqualified from receiving the much-needed government assistance. By creating a special needs trust and working with an experienced estate planning attorney, you can provide assistance and financial support to your loved one in addition to the government benefits he or she is already receiving.

When it is time to choose the trustee to administer the special needs trust, it is important that you select someone who is familiar with the laws and guidelines involved in state and/or federal programs. Or, if the person you appoint is not experienced in these types of matters, make sure he or she has the assistance of your estate planning attorney. If the trustee spends the funds of the special needs trust improperly, it could put the beneficiary at risk of losing his or her eligibility in the government programs. Don’t let all of your hard work to provide for your loved one be put in jeopardy. Contact one of our knowledgeable attorneys for the advice and guidance you need in creating a special needs trust and choosing the right trustee to manage it.

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 a Living Trust Can do for You

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Most people associate a trust with somebody who is wealthy or famous. However, creating a living trust can provide numerous benefits to people with all sizes of estates. For example:

  • Trusts provide you significant flexibility in controlling when, how and who inherits your assets.
  • Trusts allow your loved ones to avoid the time-consuming and expensive probate process.
  • Trusts help ensure that your affairs remain private. A will that is submitted for probate usually becomes a matter of public record.
  • Trusts can provide a means for avoiding certain taxes.
  • A living trust permits you to choose another party to manage your financial affairs if you should become incapacitated and unable to handle them yourself.
  • A living trust can avoid certain claims that could be made in a probate estate.

It is important to understand that you will not receive the benefits of a trust if it is not properly “funded.” In other words, you must transfer your property and assets out of your individual name into the name of the trust. This means that the trust becomes the lawful owner of your property and assets. Common examples of property and assets that should be transferred into a trust include real property, business interests, bank accounts, investment accounts, royalty contracts, patent/copyrights, antiques and other valuables. Generally speaking, you should transfer your most valuable assets into the trust.

When you create a trust, you should also create a “pourover will.” This type of will provides that anything you did not specifically transfer into the trust is “poured” over into the trust upon your death. In effect, it is a catch-all to make sure all of your possessions are transferred into your trust.

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 is Estate Planning such a Big Deal?

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Most people believe that estate planning is important, yet they don’t think it is necessary for them. We often hear people say their estate isn’t big enough or that they will get around to creating an estate plan when they are older. However, an estate plan is important for everyone at all levels of net worth. Below are three central reasons why YOU need an estate plan:

  • You want to protect your family. If you fail to create an estate plan and you die, your loved ones are left with a big mess. Not only can financial disputes occur, probate can be time-consuming and costly. Your estate plan can not only safeguard your assets, but it can also provide your loved ones with peace of mind and guidance once you are gone.
  • You want to save money. Sadly, many people postpone creating an estate plan because they think it will be too expensive. The cost of creating a comprehensive estate plan is minimal when compared to what can be lost financially if you die without a plan in place. Your estate plan can provide asset protection, save on taxes, and prevent litigation expenses. Consider this: in one estate we read about recently the husband died leaving a business owned by two sons and a mom. It has easily cost the family over $500,000 in fees and has taken more than four years to get resolved and the family will never heal. Another case recently reviewed showed that a girlfriend of 18 months, much younger than the decedent, sued to become the common law spouse and inherited millions in property.
  • You want peace of mind. Once you create an estate plan, you will have the peace of mind that you are saving your family from stress and conflict. It will also give you the comfort of knowing that your own future and senior care is planned and provided for. By creating power of attorney documents and a trust, your loved ones will be equipped to handle your long-term care without the time, cost, and stress of going to court to obtain authority to manage your affairs.

There are many other reasons to create an estate plan, but they all center on the three goals outlined above. Whatever you want to accomplish in your estate plan, 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.

Estate Planning

Can You Trust Estate Planning Software?

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If you are considering creating your estate plan by using Do-it-Yourself software, you should reconsider. Many people believe they will save money by not hiring an estate planning attorney, but what you do not know can cost you dearly. Below are a few facts you should consider before trusting a software program to create your estate plan:

  • When you use a DIY program, the documents you are provided may not have been created by an attorney. Even if a service center is available to answer your questions, the individuals you speak to are prohibited by law from giving you legal advice if they are not licensed attorneys. As a result, if you require any assistance that is outside filling-in blanks on a form, the software program or the company’s representatives cannot provide help or give you advice because it would constitute the unauthorized practice of law.
  • An estate planning lawyer is required to stay on top of changes in the law (include tax laws), which can occur frequently. When you use a computer program to establish your estate plan, you have no guarantee that the forms you are using comply with the current law. In fact, inaccuracies in DIY forms are usually not discovered until it is too late to do anything about it.
  • Generic documents and a software program cannot consider your individual circumstances like your lawyer can. If you have situations that are outside the norm, a computer program will not have the flexibility or expertise to properly handle it.

 

Don’t fall into the trap of believing a DIY software program can replace a knowledgeable and experienced attorney. The small fee you pay a lawyer to assist you will be minimal when compared to the time, money and stress it will save you and your family. Think of it this way – if you own assets valued at $400,000 (if you include IRA’s, life insurance and house, this is a very modest estate), and it costs you $2,000 to do your estate plan, that’s ½ of 1% of your assets. Is it worth it to spend a minute fraction of your assets to make sure you don’t waste them on probate or taxes, and they go to who you want – without a dispute?

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

Protecting Assets in a Trust During a Dispute

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When there is a dispute regarding the management of the trust, it often begins because the objecting party does not have sufficient information to determine the true value of the trust and/or if trust assets are being depleted. In this situation, it is imperative that you take steps to ensure the trust assets are being safeguarded while the dispute is being resolved.

The most common way to protect trust assets during litigation is to “freeze” them. This means that the court enters an order for injunctive relief, typically on an emergency basis in order to provide protection to the assets as quickly as possible. In order to prove that an injunction order is necessary, it must be shown that there is a likelihood of irreparable harm to the property in the trust and no other adequate remedy at law. Further, you must demonstrate the likelihood of your success on the merits to the court as well as that your interests outweigh any possible damage to the trust.

When trust assets are frozen, they cannot be used or otherwise depleted. In many cases, the court will appoint a fiduciary to supervise and maintain the property in the trust until the dispute has been resolved.

While no two cases are identical, below are a few warning signs that a trust is not being managed properly and you should confer with an attorney:

  • Trustee fails to file tax returns for the trust
  • Trustee fails to file an annual report on the trust
  • Trustee refuses to make financial disclosures, including investments made using trust funds
  • You discover a conflict of interest on the part of the trustee
  • You discover proof that the Will or its original terms and conditions were tampered with
  • The trust has experienced unexplained financial losses

If you believe that a trustee has breached his or her fiduciary duties, contact us for the advice and guidance you need. We can help you determine whether the assets of the trust should be frozen and the best strategy for resolving your concerns.

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

How to Protect Your Assets from Paying for a Nursing Home

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We have all heard stories about how expensive nursing home care is, but hoping that you don’t ever need that type of long-term care is not enough. If you want to prevent your life savings from being used to pay the nursing home while also qualifying for government assistance, it will take a significant amount of pre-planning.

Medicaid has restrictions on when and how you can gift your assets in order to qualify for assistance. Certain transfer penalties can be applied. The general transfer penalty law has a five-year look-back period, so the sooner you start your planning, the better off you will be.

Below are three suggestions on how to pre-plan your gifting of assets while also retaining sufficient wealth to provide for your care during the five-year look-back period:

  1. Early inheritance. If you can afford to give your children a portion of their inheritance while retaining sufficient assets to privately pay for any necessary long-term care during the five years, it can be an effective means for protecting your assets and your loved ones. It also allows you to see your beneficiaries enjoy the money while you are still alive.
  2. Long–term care insurance. If giving an early inheritance to your loved ones is not feasible for you, purchasing long-term care insurance is an option to consider. It is important to research the long-term care insurance policies and make sure you truly understand what is and is not covered.
  3. Asset protection trust. An asset protection trust is often a very advantageous option for you and your family. You can transfer property into a Medicaid irrevocable trust that will safeguard your assets from being vulnerable to paying for nursing home expenses. You should discuss whether an asset protection trust would be beneficial for you with one of our experienced estate planning attorneys.

The above three options are just a few considerations if you are concerned about the costs of long-term care. The sooner you begin your asset protection planning, the easier it is for us to find the most beneficial means for protecting your family and your assets.

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.

Estate Planning

Important Questions to ask Your Estate Planning Attorney

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Creating an estate plan is one of the most important things you can do for your loved ones. Thus, it is critical that you work with a seasoned and knowledgeable estate planning attorney. Below are a few questions you should consider asking lawyers you are considering hiring:

What percentage of the lawyer’s practice is estate planning?

Estate planning is a complex area of the law, so it is essential to work with a lawyer who focuses on estate planning, estate tax reduction, and stays current on the applicable laws. An attorney who merely dabbles in estate planning will not be prepared to handle complicated and family and financial issues. You want to work with a professional who has handled situations similar to yours and who can help you accomplish your estate planning goals. Ask the question, how many trusts, wills or estate planning clients have you met with this week or this month. The answer will be very important to you. If an attorney isn’t meeting with multiple clients each week on estate planning matters, you should consider someone else who is.

Will the lawyer provide assistance after the documents are drafted?

It is important to have an attorney who will properly draft your estate plan and provide assistance with the practical side of it too. For example, your trust document will only benefit you if it is properly funded. A good estate planning lawyer will provide you guidance and detailed written instructions on how to properly title your assets in the name of the trust.

How will you be billed for the lawyer’s services?

Before you retain an attorney, you should understand whether you will be charged a fixed fee for the majority of the services or if the law firm uses an hourly rate. If you agree to a flat fee, you should understand what services are and are not included in the fee. You should also understand how you will be charged for services that are not included in the fixed fee.

The above are just a few examples of questions you should cover with a lawyer before you hire him or her to create your estate plan. One of the most important questions, however, is one you must ask yourself. That is, do you trust and feel comfortable with the attorney? It is important to work with an estate planning lawyer that you not only trust is sufficiently knowledgeable and skilled to assist you, but also one that you can comfortably discuss some of your most personal and private information with.

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 Your Estate Plan Complete?

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If you have an estate plan, you may be wondering if it is complete and comprehensive. This is especially true if your plan was created several years ago and your life circumstances have changed. Below is a checklist of questions you should consider regarding your current estate plan:

  • Do you have a Will and/or Trust, Healthcare Proxy and Power of Attorney?
  • Are the individuals or entities named as your executor, successor trustee, power of attorney or healthcare agent still the persons you want to serve in these roles?
  • Have you relocated since your estate planning documents were drafted? If so, do your documents still comply with the applicable law where you live?
  • Are you transferring any personal property to a person under the age of 18 years?
  • Are the beneficiaries you are giving your assets to capable of properly handling the bequests or new wealth?
  • Are there any specific gifts to certain individuals that you want to make?
  • Are any of your assets held in joint accounts or where you have a designated beneficiary? If so, do your estate planning documents match your designations?
  • Is your property being distributed to your beneficiaries outright or in trust?
  • Do any of your beneficiaries have special needs that should be considered?
  • Will your estate plan provide you with tax advantages?
  • Have you notified your loved ones of where your estate planning documents are located?
  • Have you left information regarding how to access your digital assets?

The above list is not exhaustive, but it provides you with a good start in determining where your estate plan stands. If you need assistance understanding the consequences of your plan as it is currently drafted or whether it should be updated, we can help. If you are like most people (and most of our clients), you understood your documents when they were signed, but they can be complex and you may not be clear now. A review with a good estate planning attorney can give you great peace of mind, or help you spot changes you may want to consider.

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.