What Is a Utah Trust or Utah Living Trust?
A trust is a legal agreement that holds property in the name of a trustee on behalf of the beneficiaries. The trust can contain myriad of terms and conditions that control how the trust property is maintained and distributed. Trusts may be revokable, which allows you to change or revoke the trust which you are alive and competent, or they may be irrevocable, with cannot be be changed or revoked. Our Utah Trust Attorneys can help struct a trusts to provide a number of benefits:
- Avoid probate – Because the property held in trust is controlled by contract, those assets will completely avoid Probate, which is often expensive, time consuming, and public. Assets that are transferred into the trust, are not probated. Instead, the assets are controlled by the trustee or successor trustee according to the terms and conditions of the trust.
- Avoid or reduce estate taxes – A trust that is drafted and funded correctly can literally save hundreds of thousands or millions of dollars in estate taxes.
- Superior Control – Trusts offer superior control of wealth preservation and distribution over Wills. Wills simply designate what property will be distributed to whom. Trusts on the other hand can hold the property indefinitely and distribution portions to its beneficiaries over time based upon about any triggering event imaginable.
- Asset Protection – Trusts can provide significant asset protection if drafted correctly. Some common scenarios we
- Life Planning/Disability Planning – Utah living trusts can avoid Guardianship proceedings by designating in advance who will take control of the trust assets in the event of a mental disability, thereby avoiding litigation and court intervention.
Not all Utah trusts are equal. Despite the possibilities, many trust that we review will not meet the expectations of the trustmaker. We have seen the following common weaknesses with many trusts:
- outdated because either the law or your circumstances have changed
- does not adequately address mental disability
- is not fully funded (assets not transferred correctly)
- does not address remarriage issues
- does not adequately address creditor restrictions
- does not adequately address predator restrictions
- does not promote family values or life lessons
We can help you develop a comprehensive estate plan that meets your goals. For a free initial consultation to help you develop your estate plan, contact us today.