Fit Premises Act: What Renters Need to Know About Unsafe or Uninhabitable Housing

When you rent a home or apartment in Utah, your landlord has legal responsibilities to maintain the property in a safe, sanitary, and fit condition for human occupancy. But what happens when your landlord fails to make necessary repairs?

The Fit Premises Act provides renters with specific rights and remedies when their rental unit has a qualifying deficient condition.

A faulty toilet, lack of hot water, a broken staircase, exposed electrical wires, dangerous holes in the floor, or rodents and other infestations that are not caused by the renter may be examples of conditions that require attention under Utah law. Utah law requires owners to meet certain standards relating to the condition and maintenance of residential rental units.

Understanding your rights—and following the required procedures—is important. Simply telling your landlord about a problem does not necessarily mean that you have properly exercised your rights under the Fit Premises Act.

What Is the Fit Premises Act?

The Fit Premises Act, found in Utah Code 57-22, establishes certain responsibilities for landlords and provides remedies for renters when a rental unit has a qualifying deficient condition.

Under Utah Code § 57-22-6, a deficient condition is a condition of a residential rental unit that violates a standard of habitability or a requirement of the rental agreement and is not caused by the renter, the renter’s family, guest, or invitee, or by a use that violates the rental agreement or applicable law.

What Are Examples of Deficient Conditions?

Depending on the circumstances, conditions affecting a rental property may include:

  • Plumbing problems, such as a faulty toilet

  • Lack of hot or cold water

  • Problems with electrical systems

  • Unsafe stairways or common areas

  • Dangerous holes or other hazardous conditions

  • Rodents or other infestations that were not caused by the renter

  • Other conditions that violate a statutory standard of habitability or a requirement of the rental agreement

Not every maintenance issue automatically qualifies as a deficient condition under the Act. The specific facts of your situation matter.

What Should You Do If Your Rental Has an Unsafe Condition?

If you believe your rental unit has a deficient condition, your first step should generally be to notify your landlord.

Your rental agreement may specify how notices regarding repairs or other issues must be delivered. However, if your landlord fails to address a qualifying condition, Utah law may provide you with additional remedies.

Importantly, being under a lease does not necessarily mean you must continue living with a qualifying deficient condition without recourse.

The Notice of Deficient Condition

To exercise the remedies provided by the Fit Premises Act, a renter may need to provide the landlord with a written Notice of Deficient Condition that complies with Utah law.

The notice must identify each deficient condition, state the applicable corrective period, identify the remedy the renter has selected if the landlord does not take substantial action toward correcting the condition within that period, and provide permission for the landlord to enter the rental unit to make the necessary corrections. The notice must also be served in accordance with the applicable service requirements.

How Long Does a Landlord Have to Make Repairs?

The corrective period depends on the type of deficient condition.

Under current Utah law:

  • Three calendar days applies to a deficient condition involving a statutory standard of habitability.

  • Ten calendar days applies to a deficient condition involving a requirement imposed by the rental agreement.

Because the applicable corrective period can affect your rights and remedies, it is important to properly identify the nature of the deficient condition.

What Remedies Are Available to Renters?

If the landlord fails to take substantial action toward correcting the deficient condition within the applicable corrective period, Utah law provides two primary renter remedies: the Rent Abatement Remedy and the Repair and Deduct Remedy.

1. Rent Abatement Remedy

If the renter selects the Rent Abatement Remedy in the Notice of Deficient Condition, the statute provides that:

  • The renter’s rent is abated as of the date the notice is provided to the owner.

  • The rental agreement is terminated.

  • The owner must immediately pay the renter the entire security deposit paid under the rental agreement and a prorated refund of prepaid rent, including rent paid for a period after the notice was provided.

  • The renter must vacate the rental unit within 10 calendar days after the corrective period expires.

These requirements are governed by Utah Code § 57-22-6 and should be followed carefully.

2. Repair and Deduct Remedy

Under the Repair and Deduct Remedy, the renter may be able to correct the deficient condition and deduct the cost from future rent.

The statute provides that the renter may:

  • Correct the deficient condition identified in the notice.

  • Deduct the amount paid to correct the condition from future rent, up to an amount equal to two months’ rent.

  • Maintain receipts documenting the amount paid to correct the deficient condition.

  • Provide copies of those receipts to the owner within five calendar days after the beginning of the next rental period.

Because the Repair and Deduct Remedy has specific statutory requirements, renters should carefully document the condition, repairs, and expenses.

Do Not Simply Stop Paying Rent

One of the most important things for renters to understand is that the Fit Premises Act does not simply allow a renter to stop paying rent because the rental property has a maintenance problem.

A renter must comply with the applicable requirements of Utah law and the rental agreement in order to qualify for the remedies provided by the Act. Utah Code § 57-22-6 specifically provides that a renter is not entitled to a renter remedy if the renter is not in compliance with the requirements referenced in the statute.

Before taking action, make sure you understand your obligations under both the lease and the Fit Premises Act.

Proper Notice and Documentation Matter

If you are considering using the Fit Premises Act, documentation is extremely important.

Keep copies of:

  • Your Notice of Deficient Condition

  • Photographs or videos of the condition

  • Communications with your landlord

  • Repair requests

  • Receipts and invoices

  • Proof that your notice was delivered

  • Any responses you receive from your landlord

Texts, emails, and phone calls may document your attempts to communicate with your landlord, but they may not satisfy the specific statutory requirements for a Notice of Deficient Condition.

The notice must be served in the manner required by Utah law or your rental agreement. Current Utah Code § 57-22-6 provides that the notice must be served as provided under Utah Code § 78B-6-805 or the rental agreement.

What If the Condition Is Dangerous?

Utah law also addresses certain dangerous conditions. A dangerous condition is defined as a deficient condition that poses a substantial risk of imminent loss of life or significant physical harm.

If a renter believes a dangerous condition exists, the renter may notify the owner by a means that is reasonable under the circumstances. The owner must then commence remedial action within 24 hours and diligently pursue the remedial action to completion.

Because dangerous conditions can involve immediate health or safety concerns, renters should not rely solely on the ordinary repair process when an immediate danger exists.

What Happens If Your Landlord Will Not Make the Repairs?

If your landlord refuses to correct a qualifying deficient condition, you may have legal remedies under the Utah Fit Premises Act. However, the requirements are specific, and failing to follow the statutory process can affect your ability to use those remedies.

Before withholding rent, making repairs yourself, terminating your lease, or taking other action, make sure you understand the legal requirements that apply to your particular situation.

Need Help With a Utah Fit Premises Act Issue?

The Fit Premises Act can be difficult to navigate, particularly when you are dealing with an unresponsive landlord, an unsafe rental property, or the possibility of an eviction or other legal proceeding.

If you are unsure whether your situation qualifies as a deficient condition or are unsure how to properly provide notice and exercise your rights, our Licensed Paralegal Practitioner, Brooke, is ready to assist you.

Call Brooke at 801-612-9299 for a free consultation.

This article provides general information about Utah landlord-tenant law and is not a substitute for legal advice about your specific situation. Laws and legal requirements can change, and the facts of each case are different.

Posted in Noteworthy News | Comments Off on Fit Premises Act: What Renters Need to Know About Unsafe or Uninhabitable Housing

Security Deposits

Most tenants are in belief that when they pay a security deposit, they won’t ever see it again. This misconception has caused many to lose their deposit unnecessarily.  When a tenant vacates a rental property at the end of their leasing agreement, they have rights regarding their security deposit.

Utah Code 57-17-3 specifies the timeframe and obligation a landlord has regarding a renter’s security deposit. Under this code, a landlord can apply a deposit toward payment of rent, damages to the premises beyond reasonable wear and tear, other costs and fees provided for in the lease agreement or cleaning of the unit

Within 30 days after the date a tenant vacates and returns possession of the rental property to the landlord, the landlord shall deliver to the tenant at their last known address: A- the balance of any deposit, B- the balance of any prepaid rent; and C- If any deductions were made from the deposit, a written notice that itemizes and explains the reason for each deduction.

When a tenant does not receive the information as required under Utah Code 57-17-3 within thirty (30) days of vacating the rental unit, they can complete and serve upon the landlord a Notice to Provide Deposit Disposition. This notice tells the landlord that they have five (5) business days to comply with the code by refunding the security deposit, and providing a notice of any deductions made on the tenant’s security deposit.

Supposing that the landlord fails to provide the requested documentation within five (5) days of being served the Notice to Provide Deposit Disposition; they are required to refund the entire security deposit, along with a penalty of $100.00 to the tenant for failure to respond to the notice. If the landlord fails or refuses to return the security deposit and the penalty fee, the tenant can pursue litigation under the statute requesting the entirety of their security deposit, the penalty for failure to comply with the written notice, along with court costs and attorney fees.

If all fails and you need to know your rights regarding a security deposit, do not navigate it alone. We are happy to assist you with this process. Please contact our office at 801-612-9299 and request to speak with Brooke for more information and assistance.

https://www.utcourts.gov/en/self-help/categories/housing/landlord/refunding-deposits.html

[1] https://le.utah.gov/xcode/Title57/Chapter17/57-17-S3.html?v=C57-17-S3_2018050820180508

Posted in Noteworthy News | Comments Off on Security Deposits

Noncompetes- important 2024 updates

Beginning sometime after August 20, 2024, new noncompete agreements between employers and employees will no longer be allowed under a new FTC rule passed April 23, 2024.

In brief: After the rule becomes effective (not before August 20, 2024), new noncompete agreements are prohibited and most existing agreements cannot be enforced. The exception to enforcement is for senior executives – those existing noncompete agreements may continue to be enforced. In addition, employers must notify employees that the employer will not be seeking to enforce the agreement.

Prior to the new rule, about 1 in 5 workers were required to enter into noncompete agreements as a condition of employment. At a minimum, noncompete agreements prohibited the affected employee from working in the same field (sometimes, any field) in a defined geographic area during and after employment. The employee is bound to the employer – the employee cannot quit and find other employment without violating the agreement. If the employee is terminated by the employer, even without cause, the employee would have difficulty obtaining a job for which they are qualified due to the noncompete in place.

Beginning in August, employers can no longer require – or even ask – any employees to enter into noncompete agreements. Moreover, they cannot enforce the ones they already have, with a very narrow exception. Employees at most levels will be free to move to jobs they may enjoy more, that may pay more, or that have better benefits, including starting their own businesses.

The only exception will be existing noncompete agreements with senior executive employees. A senior executive employee is one making over $151,164 per year and involved in policy decisions or planning. If a senior executive employee is currently subject to a noncompete, the restriction is allowed to continue. However, no new noncompete agreements can be made after August 21, 2024, regardless of the employee’s level.

This sounds like a bigger blow to the employer than it really is. Some states have already passed legislation to prohibit noncompete agreements to some degree. California, Minnesota, North Dakota, Oklahoma and Washington DC have already banned noncompete agreements in most circumstances. Nine other states have established compensation floors below which Noncompetes cannot be used. And other states, like Utah, have curtailed the scope of the noncompete. In Utah, Noncompetes cannot be effective for more than one-year post-employment, and may only prevent competition within the least restrictive geographic area possible.

The restrictions by the states are a result of employer abuses having an adverse effect on the employees and the workforce in general, as well as competition and innovation. I was involved in one situation where the employee was prevented from working anywhere in the world, in any profession, for five years after employment terminated. I have seen noncompete agreements applied to skilled and unskilled trades as well as entry level positions earing minimum wage and having no access to company secrets and no ability to determine policy or direction. Basically, the trend was to make everyone sign one. There is no legitimate business interest that can justify those restrictions.

Not all is lost for the employer. Noncompetes were originally intended to allow an employer to share processes, methods, ideas, and strategic policies with employees without fear the employee would take them to a competitor or use the information to open employee’s own business. Employers may continue to use nondisclosure agreements to accomplish this goal. Nondisclosure agreements prohibit the employee from using or providing specific information obtained in the employer’s employ for the benefit of any other party, including the employee. They serve the same goal noncompete agreements were initially created to further.

If you need assistance with creating a nondisclosure agreement for your employees, or to discuss your rights as an employer under this new rule, please contact my office at 801-612-9299 for a consultation.

Posted in Noteworthy News | Comments Off on Noncompetes- important 2024 updates

Eviction Expungments

Being evicted from a rental unit can be detrimental to not only your wallet, but also your credit score. When an eviction occurs and pings on your credit, you may struggle with obtaining a new place to live, and landlords may require additional deposits before allowing you to move into their unit. Utah has passed a law that can assist those with evictions on their records by expungement. Expunging a record means to destroy, obliterate or strike out records in a file.

Utah legislative has created a new system to assist the burden of renters being unable to find places to live due to evictions being on their credit scores. There are three ways an eviction expungement can occur: 1: Automatic expungement. 2: Asking for expungement by filing a petition and 3: Settlement expungement agreement with all parties to matter.

Automatic expungements occur automatically if; A. the entire case was dismissed, there is no appeal pending and at least three years have passed from the date the case was filed. B. the parties to the case agree to the expungement and file a stipulation with the Court that states the parties stipulate the Court to expunge the eviction. If a case is eligible for expungement under one of the automatic expungement requirements, the Court will order the expungement immediately once it qualifies. No party to the case receives any notice regarding the expungement. Mycase can be utilized to locate if the eviction has been expunged.

If an automatic expungement does not work for your case, the next way an eviction can be expunged is by asking for the expungement by filing a petition. In order to file a petition to request an expungement on an eviction, you must meet the following requirements: A. Your eviction was for nonpayment of rent or staying in the property after your lease expired (an unlawful detainer matter). B. If a judgment was entered against you, it has been satisfied and a Satisfaction of Judgment has been filed with the Court.

In the event the Court grants your expungement, either by automatic or requested expungements, the case should be treated like it never happened. Any third parties who have information about your case will be prohibited from giving out any information about your case. This includes, but is not limited to: government agencies, such as the sheriff and tenant screening agencies. The Court posts a list of case numbers that were expunged to inform third parties to remove the case from their files.[1]

Not every eviction matter will be eligible for expungement. In the event a case is not eligible, there are still options to pursue! If your eviction is causing you difficulty in finding a place to live, you can A: try to pay down the debt owed. This can be difficult for some, but a judgment on your credit report can make finding a place to live more difficult. Paying off the debt and reporting the payoff to the credit reporting agency can make the judgment less harmful. If you are struggling to manage your debts, you can contact Fair Credit[2] to see if they can assist you. Ask for a letter of reference from a previous landlord or others to show prospective landlords. Contact 2-1-1 Utah[3] for help and connection to other resources.

If all fails and you need to know your legal rights under an eviction, do not navigate it alone! We are happy to assist you in this process. Please call our office at 801-612-9299 to speak with Brooke for more information and assistance.

https://www.utcourts.gov/en/self-help/categories/housing/landlord/expunge.html#:~:text= You%20can%20ask%20to%20expunge,been%20filed%20with%20the%20court

[1] https://apps.utcourts.gov/CourtsPublicWEB/index.jsp?option=EVICT

[2] https://faircredit.org/

[3] https://211utah.org/

Posted in Noteworthy News | Comments Off on Eviction Expungments

LICENSED PARALEGAL PRACTITIONER

Utah recently passed a law that allows paralegals to independently practice in specific areas of law, in certain circumstances. The areas of law currently open for Licensed Paralegal Practitioners, as of right now, are: Family Law; Landlord/Tenant disputes; and, Debt Collection Law (under the small claims amount, currently $11,000).

Licensed Paralegal Practitioner’s (aka LPPs) can assist in limited ways. They can file court documents, serve as mediators, complete settlement negotiations, review court documents and sit with a client during a court proceeding. Licensed Paralegal Practitioners are not allowed to represent a client in court, and are not allowed to prepare documents for court that are not court provided.

The decision to allow LPP’s to practice in limited fields and in limited ways was created by the Utah Supreme Court Task Force as a way to address the large number of litigants who are unrepresented or forgo access to the Utah Judicial system because of the high cost of retaining a lawyer (UTcourt.gov ). The three practice areas LLPs are currently allowed to practice in were determined to have the highest number of unrepresented litigants in need of low-cost legal assistance. (Id).

LPP’s are licensed and monitored by the Utah State Bar. They are subject to the Ethical Standards and Discipline, including the requirement of confidentiality, like attorneys. They are required to complete continuing education yearly, and must renew their licenses annually. It is exciting to see how this innovation will play out.

We are happy to announce that our paralegal, Brooke, has successfully passed and been admitted as a Licensed Paralegal Practitioner, licensed in Landlord/Tenant disputes and Debt Collection. Please contact our office at 801-612-9299 to speak with her about your legal needs.

References: https://www.utcourts.gov/rules/view.php?type=ucja&rule=14-802

Posted in Noteworthy News | Comments Off on LICENSED PARALEGAL PRACTITIONER

Utah Covid-19 Rental Assistance

CDC Moratorium:

Covid-19 has caused tension and confusion when it comes to the rights and laws on evictions. Until July 31, 2021 tenants may be protected under the CDC moratorium. This protection is for nonpayment of rent; a tenant can still be evicted (through the normal process) for nuisance, lease violation, etc.

To be protected under the CDC moratorium, the tenant must complete and sign a declaration which is then presented to the landlord. This program is set to terminate on July 31, 2021; although it has been extended several times since it first began. (See Utah.gov for more information) After July 31, there is no prohibition for eviction of tenants for non-payment of rent.

Under CDC moratorium, rent is not forgiven – merely deferred – and landlords can still charge late fees and penalties to any tenant behind on their payment.

While the current deadline for the CDC moratorium protection is nearing an end (if not extended again), do not pursue evictions until you are certain they are not prohibited. Failure to comply with the CDC moratorium can result in fines up to $250,000 and up to one year in jail, so there can be serious consequences to noncompliance.

Once the moratorium has ended, confirm you follow the legally required eviction procedure when evicting a tenant. Please note Utah courts have issued separate procedures before a landlord can evict a tenant. This entails completing a COVID Eviction Declaration, serving it on the tenant as required by law, and filing it when you start your eviction case. To find more information on this requirement, read the Administrative Order of the Supreme Court attached here:  https://www.utcourts.gov/alerts/docs/20201002%20%20Amended%20Pandemic%20Administrative%20Order.pdf

Utah Emergency Rental Assistance Program:

If you prefer to not evict an otherwise good tenant, you can guide them in obtaining relief (for you and them) through the Emergency Rental Assistance Program. It was designed for this exact situation, where a tenant has been a good tenant, takes care of the premises and paid well, up until they encountered a COVID related hardship. This program began on March 15, 2021 to assist tenants who are struggling with their rent obligations. To qualify for this program the tenant must have;

  1. Combined household income at or below 80% of the area median income where they reside.
  2. Someone in the household who qualified for unemployment or has experienced a reduction in household income, incurred significant costs, or experienced financial hardship due to Covid-19.
  3. Household experiencing housing instability (received past due utility or rent notice or eviction notice, or living in unsafe or unhealthy living conditions) due to Covid-19.
  4. Applicant resides in the household and is on the lease.

If your tenant meets the four requirements above, assistance can be applied for online at: https://rentrelief.utah.gov/  by either the property owner or the tenant. Documentation is needed (from both parties); communication is key to this procedure. The documents which must be provided are:

  1. Full lease agreement (all pages)
  2. A copy of the landlord’s W-9 or landlord contact information
  3. A ledger from the landlord showing outstanding rent and/or other fees
  4. Income Certification from the Tenant
  5. 2020 1040 tax form (or W-2, 1099, K-1, etc.)
  6. Tenant’s recent paystubs (30 days)
  7. Unemployment insurance weekly payment history (if applicable)
  8. Past-due utility bill (if applicable)
  9. Eviction notice (if applicable)

Our office is happy to assist you with applying for the Emergency Rental Assistance Program. Give us a call at 801-612-9299 for more information.

You and the tenant must be aware the program does not cover all costs of housing. The program only covers the following:

  • Current rent plus 3 months of prospective rent (with a termed lease) [so long as the lease agreement includes the prospective period];
  • Past-due rent;
  • Eligible fees;
  • Security deposit; and
  • Utilities, internet and home energy costs (such as gas and electricity).

If all else fails and you need to evict a tenant, please don’t do it alone. We are happy to assist you in this process. Call our office at 801-612-9299 for more information and assistance.

Mention this blog and get 10% off your total price of your eviction.

https://www.utcourts.gov/howto/landlord/eviction-landlord.html

Posted in Noteworthy News | Comments Off on Utah Covid-19 Rental Assistance

Utah Employers could require Covid-19 vaccine

Climbing into the near year, tensions are stiff with the new Covid-19 vaccine being distributed. We came across a simple but effective article discussing Utah employers possibly requiring employees to take the vaccine once it is offered. Spencer Phillips made it clear that due to Utah being an ‘Employment At-Will” state, “They could say you either get a vaccine or you don’t have a job here anymore.” (Fox13, 2020)

Employment at will means that an employer may generally terminate an employee at any time and for any reason, unless a law or contract provides otherwise. Some examples of ways an employee could argue against a mandatory vaccine requirement would be if they had a disability or a sincerely held religious belief that prevented them from getting the vaccine. Employers must look extremely close at these exceptions; it will be the duty of the employer to offer accommodations to these employers who do not receive the vaccine under an exception.

While the effects and results of the vaccine are still unknown, being prepared of your rights as an employee and/or as an employer will assist you in the upcoming months. The rules and regulations surrounding Covid-19 and employment are not set in stone. There is a lot of gray area that could cause problems for many in the workplace during the distribution of these vaccines. If you are unsure of your rights, reach out to an employment attorney.

Read the whole article here! https://www.fox13now.com/news/local-news/employment-lawyer-utah-employers-can-require-employees-to-get-covid-19-vaccine

*This article is for informational use only, none of the facts or laws have been reviewed*

Posted in Noteworthy News | Comments Off on Utah Employers could require Covid-19 vaccine

Cannabis potentially useful in blocking covid-19 infection.

Right now, everyone is on high alert surrounding the Covid-19 pandemic. We fell across an interesting article discussing the use of Cannabis in blocking coronavirus receptors.  Alberta researcher, Igor Kovalchuk at the University of Lethbridge has discovered that cannabis extracts (high CBD) are showing potential in growing human resistance to the Coronavirus.  Mr. Kovalchuk’s research has shown that some strains of cannabis have reduced the number of virus receptors by 73 percent!

Continued research shows that the anti-inflammatory property of CBD appears to be critical in reducing virus receptors. Reducing virus receptors results in less chance of being infected, the researcher says. Being as CBD is the medical portion of Cannabis; they focused on the CBD in higher quantities. Taking CBD in higher doses does not generally cause side effects; THC is not being used in this research as strongly as CBD is. The article discusses the use of CBD in the form of mouth wash, gargle, inhalants or gel caps if the studies confirm CBD does reduce the virus receptors. This is cheaper for the population and has fewer side effects with a larger effect on reduction throughout the population.

If this research is proven correct, the amount of people who can be reached may assist the population in reducing the number of virus receptors each person carries in their body, hopefully resulting in a decline of positive cases. Since CBD is so widely available in multiple states, and many have already found medical benefits to its use, the continued use of CBD to potentially limit the virus receptors one carries could be extremely beneficial to the population.

While some may not be willing to take this route, even if proven effective, there may be enough who do to reduce the numbers of people suffering from this pandemic. This is not a lead to a vaccine, but hopefully will become another weapon against Covid-19.

Read the whole article here! https://calgaryherald.com/cannabis/cannabis-shows-promise-blocking-coronavirus-infection-alberta-researcher/

*This article is for informational use only, none of the facts have been reviewed by the CDC or other governmental agency, and is  not intend to advocate for the use of marijuana, THC, or CBD, except as prescribed by a doctor*

Posted in Noteworthy News | Comments Off on Cannabis potentially useful in blocking covid-19 infection.

Utah Estate Planning

RELATED BLOG POSTS:
Getting the Most from an Estate Planning Initial Consultation
Plan for Estate Plan in January

            When most people speak of “estate planning,” they are generally referring to wills and trusts.  However, “estate planning” broadly includes any systematic arrangement of one’s property.  An “estate” is simply your property.  Your property can be arranged in a manner so as to hold or protect your assets, provide for life-time gifts, create individual privacy, implement tax savings, provide for your children’s education, open financial accounts, or be used for planning for one’s death.  An estate plan can include trusts, wills, family partnerships, life and health insurance, powers of attorney, health care directives, guardianship declarations, and much more depending on your needs and desires.

Why meet with an attorney?

            There are a number of well-written computer programs that can create many necessary estate plan documents.  The attorney who offers you an “entire” “estate plan” for only $500 is roughly equal to a well-written computer program.  Although the one-size-fits-all approach is a viable alternative for many individuals, the problem is that you and your property are not like any other person and his or her property.  Can you think of any person who has the same property and situation as you?

            For example, you may have a handicap child.  Your spouse may be in a nursing home.  You may have a child that lives with you or is not mature.  You may not have any children, but have several pets that are priceless to you.  You may have an incompetent child.  You may have a child that is a drug user that would spend any inheritance on methamphetamines, but you still desire to help him or her.  You may have children that would be prone to fight over an inheritance.  You may have a child that is not trustworthy.  You may have Alzheimer’s in your genes.  You may intend to qualify for Medicaid or may seek to avoid government involvement in your life at all costs.  You may desire to donate all of your property to a charity.  You may have a child that will likely require governmental assistance.  You may own your own business.  The list goes on and on.  These issues are extremely important and must be reviewed or you risk irreparable damage to your property or your family.  Software programs and $500 “estate plan” attorneys do not review or consider these problems.  These programs will not even let you know that you have other options.

            If you are like me, one-size-fits-all does not work for you and unfortunately, many people mistakenly believe that they have to conform to fit the one-size-fits-all.  A good attorney will find out what your needs are and develop a comprehensive plan that will work for you personally – not Jane and Joe Smith across the street.  It is our policy to closely examine the needs of our clients prior to recommending an estate plan to suit their needs.

What is generally provided in an estate plan?

            The answer to this question again depends largely on the needs of the individual.  Notwithstanding, here are a few key documents that you would likely have in your estate plan:

  • Trust
  • Certificate of Trust
  • Last Will and Testament
  • Power of Attorney
  • Health Care Directive
  • Guardianship Declaration
  • Warranty Deed

How much does an estate plan cost?

            As you are probably aware, attorneys are always quick to answer “It depends.”  Unfortunately, the answer does depend on your individual situation.  For more simple estate plans with a trust, you can expect to pay from $1,200 to $1,500 for a single person.  If you have extraordinary needs and desires the cost will rise depending on the extra time of your attorney.  We do promise that we will quote your exact cost at our first meeting (or shortly thereafter) prior to beginning any work on the estate plan.  We also do not charge you for our first meeting.  There will not be any additional costs unless you decide to completely redesign your estate plan.  Once you agree to begin the work, we do require that you pay half of the cost upfront and the remaining half is due at signing.

What should I do before I call or meet with you?

            You don’t need to do anything prior to setting up an appointment with us.  Call us at (801) 612-9299.  Before our next meeting, we recommend that you complete the Client Estate Plan Worksheet.  You should at the very least be ready to discuss the topics and questions detailed in the Client Estate Plan Worksheet.

Why should I have a trust?

            The number one reason to have a trust is to avoid probate.  Probate is not where the government takes your property – that’s called the IRS.  Probate is where a Utah court (assuming you live in Utah) makes an official determination that your will is valid and who your heirs are.  If you die intestacy (i.e., without a will), your heirs will likely still have to go through the probate process.  Probate usually lasts over six months and often continues for a couple of years.  To assist heirs in a simple and non-contested probate, we charge approximately $2,800.

            If your property is held in a trust, you can avoid probate.  The reason a trust avoids probate is because the trust (not you) owns the property at your death.  Generally, the trust will have a new trustee appointed and new beneficiaries identified in accordance with the trust terms.

            Other important reasons to have a trust include implementing asset protection, disability planning, tax planning, or having strings attached to your property at your death (e.g., your minor child not receiving property until he is 25 years old).

Is the trust amendable or revocable?

            Most trusts we provide are revocable and amendable.  However, there are important reasons to have an irrevocable trust set up.  Irrevocable trusts are often used for tax and Medicaid planning.  Further, even an amendable and revocable trust will customarily become non-amendable and irrevocable upon your death or incapacity.

Utah Estate Planning

Posted in Attorney, Consultation, Estate Planning, Estate Planning Attorney, Noteworthy News, Ogden, Trusts, Utah, Wills | Comments Off on Utah Estate Planning

Getting the Most from an Estate Planning Initial Consultation

Getting the Most from an Estate Planning Initial Consultation – Part I
The first step in getting your estate plan established is preparing for the initial attorney consultation.  You should have two goals in mind for the initial consultation: 1) determining whether the attorney is right for you; and, 2) deciding, with the attorney, on the right estate plan.
What do I mean when I say “determining whether the attorney is right for you?”  Well, among other things, do you communicate well together?  Do you understand her?  Does she understand you?  Do the suggestions make sense to you?  Are you comfortable talking to her?  You will likely have some sort of relationship with your attorney for a long time.  You don’t have to be BFFs, but you shouldn’t feel dread or fear when you need to call her.
Helping the attorney guide you to the right estate plan requires a bit of preparation on your part.  Before the attorney can help you decide what to do with your estate, the attorney must have a good idea what your estate is – and so should you. 
Putting this information together shouldn’t take much time.  Most of it is delivered to you by mail or email on a monthly, quarterly, or annual basis.  You just need to gather it up, review it, and make it available to your attorney at the initial consultation. 
Put together a folder with the most recent statement on each of your bank accounts; checking, savings and money market.  Add the most recent statements from any brokerage accounts.  Bring the most recent property tax statement for the real estate you own.  Copy the declarations page from your life, liability, homeowners and automobile insurance policies (the declarations page shows what your coverage amounts or limits are).  If you collect anything – cars, guns, art, action figures – estimate the value of the collection.  It never ceases to amaze me how often people overlook antiques and collectibles when they think about their assets. 
Once this information is in a folder, you are nearly ready to go to your initial consultation.  Next time, we’ll discuss the final step you need to take before meeting with the attorney.
Now is a good time to set up the initial appointment.  This may seem self-evident, but many of us fail to get things done because we fail to take that first small step.  You may know exactly what you want, but if you never meet with an attorney to have your estate planning documents prepared, you’ll never get it done. If you haven’t already done so, pick up the phone and call an attorney experienced in estate planning.  Like me, many offer free consultation.  No cost, no risk to you, other than your time.  It’s a busy time of year, but you can find a couple of minutes to pick up the phone and make the call.  You’ll be glad you did.
Posted in Attorney, Consultation, Estate Planning, Estate Planning Attorney, Noteworthy News, Ogden, Probate, Trusts, Utah, Wills | Comments Off on Getting the Most from an Estate Planning Initial Consultation