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Do I Need Estate Planning?

AFFORDABLE ESTATE PLANNING, WILLS & TRUSTS FOR ALL OF UTAH

Estate planning is the process of writing and signing instructions of what to do with your assets when you die or become incapacitated. It usually involves a will and trust and often other documents that will accomplish many things. It also involves naming the correct owner and beneficiary of every asset. A good estate planning attorney will enlighten you on many things you are unaware of and had not even thought of. He will also write documents that carry out your wishes and instruct you on naming the correct owner and beneficiary of each asset.

When do I need a will or estate planning?

You need a will or estate planning if you have enough assets that you care about what happens to them when you die or become incapacitated. Examples might be a home, life insurance, or a business. You also need planning if you have a child under age 18 so that you can name their guardian if you die. Estate planning is extremely helpful in a second or later marriage with children from a prior marriage to resolve who receives your assets at death. If you own over $5 million of assets, estate planning can greatly reduce or eliminate taxes at death.

Do I need a will and a trust?

Nearly everyone who owns significant assets or has a child under age 18 needs a will. It will name the manager (personal representative) of your estate at death and instruct what to do with the assets of your estate. It will also name the guardian of children under age 18. Most people also choose to have a trust in addition to a will in order to avoid probate, manage assets in the best way if incapacity arises, and have assets managed after death on behalf of children who are too young or on behalf of grandchildren through a deceased child.

What is probate and why should I avoid it?

Probate is the process of filing papers in court to have a judge name who can sign for you and manage your estate when you die. It may also include asking the judge to rule that a document is your last will. Most people seek to avoid it by having a living trust that will reduce costs at death, provide more rapid access to assets at death, and keep the provisions of their will from being a public record that anyone can look at.

What happens to my children and my assets when I pass away?

When you pass away, your assets will pass to those you have named through joint tenancy ownership, beneficiary designations, your will, and your trust. If you have no will or trust, then the State will decide who will receive some of your assets. When you pass away, your children who are under age 18 will be cared for by their other parent or, if this parent has died or renounces their rights, then a guardian needs to be appointed by a judge to care for them.

Do I need to worry about estate or inheritance taxes at death?

If you own no assets outside of Utah and are a U.S. citizen, then you do not need to worry about estate or inheritance taxes at death under current law unless the total value of all of your assets and your spouse’s assets exceeds $5,340,000. However, listen on the news for any changes to this since Congress has made numerous changes in this dollar limit. If you own assets outside of Utah, you or your attorney should verify what amount of assets are subject to taxes at death where your assets are located. If you are not a U.S. citizen, much smaller amounts can be subject to taxes at death in the United States.