Estate Planning

Many Utah families have fond memories of spending time together at a "family cabin." Whether it's up at Sundance, Bear Lake, Heber, Park City, or any other number of beautiful locations throughout the country, a family cabin often is a repository for a wealth of happy memories. Because of these frequently strong sentimental attachments to vacation homes, those who own them often want to ensure that the cabin stays within the family and will continue to be used over generations to keep family members close to one another. However, harmonious use of such properties can often go quickly awry without proper "cottage planning."

What is "cottage planning?" First and foremost, it is recognizing that a family cabin is a much different asset than a typical asset passed on through a traditional trust-based estate plan. Once you recognize that, then cottage planning can focus on designing and implementing a plan for the successful transition of a cherished family vacation property to future generations. If done properly, you can greatly increase the chances that the family cabin will stay within the family and be used for its intended purpose - to maintain and strengthen family relationships.

Unfortunately, many family cabin owners never think about the numerous pitfalls that lurk in the shadows when it comes to passing on the family cabin.

Blog Post by:  Melissa Christensen Platt, Esq.

This is by far the most frequently asked question we get, and I cringe every time I hear it (or variations of it) because I know the answer will be unsatisfactory to the person who has just asked the question and to me as well.

The biggest problem with this question is that it is impossible to answer directly. Why can’t a respectable estate planning attorney just quote you a fee right off the bat? Because estate planning is not “one size fits all” or even “one size fits most,” so estate planning fees can’t be one size fits all either. The question assumes that a will (or a trust) is right for everyone.

It’s kind of like walking onto a car dealer’s lot and asking, “How much for a car?” The answer will depend on whether you want an SUV, truck, van, or sedan, whether you want to buy used or new or lease, whether you want all the options or a stripped down model, and so on.

Many of my clients have heard me quip about how Bill Gates and Warren Buffett should be worried beginning New Year’s Day, 2010 because of the large target that Congress has placed squarely upon their backs. Now, to be honest, there is most likely no actual, physical threat to their lives because they have probably done appropriate estate planning. But this quip helps me to illustrate a point about Estate Taxes. On New Year’s Day 2010 – unless something happens within the next few weeks over in Washington D.C. – the Estate Tax or “Death Tax” will go away in a puff of smoke. In other words, as the laws currently stand, any one individual who dies in 2010 owning over $3.5 million worth of property will not have to pay Uncle Sam 1 red cent in estate taxes.

For the sake of illustration, let’s assume that Mr. Gates died “intestate” (i.e. without any wills or trusts in place) and that he wasn’t married.

The Ohio Supreme Court recently slapped a $6.4 million penalty upon two companies, American Family Prepaid Legal Corp. and Heritage Marketing and Insurance Services Inc., for the illegal practice of law (running a "Trust Mill") in that state.  These companies have also been banned from ever operating in Ohio again.

What is a "Trust Mill?"  Trust Mills are typically made up of individuals who sell insurance, annuities or other types of high-commission financial products.  

Blog Post by Melissa Platt, Esq.

Lesson #3: Every family with children must put into place a plan that specifies what should happen to their children, both in the short-term and the long-term, in the case of a parent’s death or incapacity.

Michael Jackson’s untimely death is another heartbreaking reminder that we never know when or how we’ll die. Responsible parents can no longer afford to think, “That won’t happen to me,” or “I’ll get around to it later.” Whatever you may think about MJ as a person, it’s undeniable that he was a devoted father.