Frequently Asked Questions (FAQs)
What is an Estate?
An Estate is a property (Real or Personal) in which you have a right or an interest.
Why do you need to plan your Estate?
- Preserve property for the maximum benefit of owners.
- Enable owners to transfer property to heirs with minimum shrinkage.
- Minimize Federal and State Income and Inheritance Taxes.
- Reduce probate and other transfer costs.
- Conserve and enhance net worth currently and for future heirs.
- Avoid pitfalls and mistakes
What is Probate?
- The practice of proving a Will
- In practice, it is a state mandated system for changing title to property
- It is expensive
- It is time-consuming
- It is a public process
Why have a Will?
- A Will distributes your property to your heirs and Devisees according to your wishes.
- A Will appoints fiduciaries to administer your estate.
- Personal Representatives
- Guardians
- Custodians
What is a Living Trust?
A Legal Entity that:
- Is created by Trustor(s) for the benefit of Beneficiary(s) to be administered by Trustee(s).
- May own property.
- Separates legal and equitable title.
Who needs a Trust?
Anyone with property subject to Probate, i.e.,
- Real Estate
- Bank/Credit Union Accounts
- Money Market, CDs and Brokerage Accounts
- More than four automobiles (in Utah)
What is a Living Will?
A directive under the Utah Personal Choice and Living Will Act. You direct your physician not to use heroic means to preserve your life under terminal circumstances.
Does it matter if children are married?
All children means ALL children, no matter the status.
How do we set up an Estate plan?
Go to our Estate Plan form and enter as much information as you feel comfortable with. You will be contacted by our office to finish gathering any remaining information.
Can someone challenge a Will or Trust even if it says you can't?
Yes - however, there must be reasonable cause. If a case is lost the person challenging the Will or Trust is usually disinherited.
Can anyone write a will?
Yes - A "Holographic Will" (Own Handwriting)
Do you keep copies of my Estate Planning?
We encourage clients to make copies for themselves, and send our office a copy.
Do these documents transfer from state to state?
Yes - James Baker has done Estate planning in about 42 of the 50 states. There are some differences that usually need to be addressed, but essentially the same required documents are accepted.
It's both an honor and a burden to serve as someone's executor. An executor is entrusted with responsibility for winding up someone's
earthly affairs -- a big or little task, depending on the situation. Essentially, an executor's job is to protect a deceased person's
property until all debts and taxes have been paid, and to see that what's left is transferred to the people who are entitled to it.
The law does not require an executor (also called personal representative) to be a legal or financial expert. But it does require the
highest degree of honesty, impartiality, and diligence. This is called a "fiduciary duty" -- the duty to act with scrupulous good
faith and honesty on behalf of someone else.
Executors have a number of duties, depending on the complexity of the deceased person's financial and family circumstances.
Typically, an executor must:
- Decide whether or not probate court proceedings are needed.
- Figure out who inherits property. If the deceased person left a will, the executor will read it to determine who gets what. If there's no will, the person in charge (sometimes called the administrator) will have to look at state law (called "intestate succession" statutes) to find out who the deceased person's heirs are.
- File the will (if any) in the local probate court.
- Find the deceased person's assets and manage them during the probate process.
- Handle day-to-day details. This may include terminating leases and credit cards, and notifying banks and government agencies
- Set up an estate bank account.
- Use estate funds to pay continuing expenses. The executor may need to pay for example, mortgage payments, utility bills, and homeowner's insurance premiums.
- Pay debts.
- Pay taxes.
- Supervise the distribution of the deceased person's property.
Complete Estate Planning - Living Trusts - Living Wills - Power of Attorney
