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Frequently Asked Questions
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Q: What is the difference between a living trust and a will?
A: A will takes effect when you die and states who is to receive your estate and
who should administer your estate. A trust is made effective before you die.
Property is transferred to the trust and administration of the trust is determined
at that time. A trust often provides for final distribution of your estate upon
your death.
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Q: What is an irrevocable trust?
A: An irrevocable trust means that the person establishing the trust has designated
what property the trust owns, how that property will be administered and who will
administer the trust. Once determined, those designations may not be altered- the
trust is irrevocable. Some people create irrevocable trusts and, unknowingly, lose
all control over what was their property. Thorough discussion and legal advice is a
must before creating an irrevocable trust.
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Q: How will a trust protect my assets from paying for nursing home care?
A: Under current law, transfers to trust must be irrevocable and the person
creating the trust and now seeking for the government to pay for long-term care
must have relinquished all control of his assets. Careful legal planning is required.
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Q: Can I disinherit my spouse and children?
A: You can only disinherit your spouse with your spouse's written consent. You
may disinherit your adult children; however, it is important to disinherit
them specifically rather than by ignoring them or failing to mention them. You
may not disinherit minor children.
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Q: What if the value of the estate is too small to probate?
A: An estate that includes no real estate and is valued at less than $100,000.00
may be gathered and distributed without probate being filed. This is done by
using non-probate legal documents.
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Q: Can I do a power of attorney instead of a will or trust?
A: A power of attorney loses effect when the principal dies. A power of attorney
can not effectively replace a will or a trust for estate planning.
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Q: What if I transfer my home, bank account, and other property
to my children before I die instead of doing a will?
A: This can cause any or all of the following problems: You and your children
cannot agree about the use and/or management of property they now own; you lose
the property you now own; you lose the property to your children's creditors;
your children refuse to share with each other as you would have liked; there
are gift-tax and capital gains tax consequences. The problems created can be
much more expensive than proper estate planning.
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Q: If I die without a will, will the state get my property?
A: No. The law provides that your family will get your property even if you
die without a will. However, by executing a valid will you can greatly ease
the burdens of estate administration and lessen the probate expenses your
family may incur when you die.
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Q: How much money does estate planning cost?
A: Estate planning may cost from a few hundred dollars to over a thousand
dollars, depending on the complexity of your circumstances. Bear in mind that
proper estate planning generally costs 25% to 50% of what it costs to
administer an estate without proper estate planning.
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Q: How do I provide for a disabled child after my death?
A: You may set up a trust or other plan. You may designate guardians. Careful
planning is required to not jeopardize government entitlements.
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Q: Who will take care of my minor children when I die?
A: You may designate guardians for your minor children in your Last Will
and Testament. This allows the judge that must make these important
decisions to know your desires even though you have died.
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Q: What is a living will?
A: A living will is directive to doctors telling them that you do not want
life-support, a feeding tube, etc. should you be terminally ill and in a
persistant negative state. It allows you to express your enforceable wishes
beforehand.
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Q: Can I use a will or trust I found on the internet?
A: Many people have copied over wills that others have used. Many people
buy forms for estate planning. Much litigation surrounds the validity
and effect of those documents. Such a will may be valid, the trouble is,
you will not be around to find out. When you hire an experienced and competent
attorney to prepare your estate documents you get your questions answered,
you get documents prepared to your needs and specifications, and you have
the peace of mind that your wishes have been legally and validly documented
and must be followed upon your death.
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Q: Should I deed my property to my children?
A: Deeding your property to your children to avoid proper estate planning
can have disastrous consequences to you and your children, including
otherwise unnecessary taxation.
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Q: How much does it cost?
A: Steve Buhler does all his estate planning on a flat fee basis.
You should expect to pay about $425 for an individual will, $525
for you and your spouse to do wills, and from $885 to $1200 to do
wills with a living trust. Premarital agreements usually cost
between $400 and $600. A guardianship case can cost from $900 to $1800.
A probate usually costs between $1500 and $2000. Steve Buhler does
almost all of his work on a flat fee basis which he will discuss
with you before you hire him. The price Steve charges always includes
your court costs, filing fees, publication charges, and, where
required (a guardianship case for an incapacitated adult) the cost
of hiring a second attorney. There are never hidden fees.
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Q: What should I expect?
A: Steve Buhler will talk to you on the telephone when you call.
When you come in for your appointment, Steve will make sure that
your goals can be accomplished. He will tell you what he will do,
and what you need to do. He will set a fee that will include all
the work needed to accomplish your goal. Steve will always start
to work on your case the very day you hire him - while the
information is still fresh.
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Q: What is common law marriage?
A: In Utah, there is no set number of years for people to live together in
order to be common-law married. No one knows if they are common law married
until a court determines the answer to that question. To qualify for court
determination of common-law marriage, the parties must both be capable of
legally getting married to each other, must have held themselves out and
acquired a reputation as husband and wife, lived together and mutually
assumed joint obligations.
Call the Law Office of Stephen J. Buhler at (801) 964-6901 or contact us
at sjblawyer@aol.com.
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Although the information provided on this website is of a legal nature,
it does not constitute legal advice. The legal advice that you need depends
on your particular facts and circumstances. You should contact a lawyer to
discuss your particular circumstances and legal needs.
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Copyright 2009
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