You have probably heard that a Trust can be a valuable estate planning tool. Before making any decisions about whether to have one, what kind to create, and whether or not to have any other estate planning tools, make sure you understand all the benefits of a Trust and all the things one can do.
A Trust is a written document that allows you to legally transfer your real property and your personal property to your loved ones upon your death. Think of a Trust like a bucket; it holds all your property and it just needs a guiding hand to pour it out in the right way.
Avoid Probate
Although probate in Utah is not as awful as it can be in some states, it can still be expensive and burdensome. A Trust can distribute your assets more efficiently than the probate process can, and without the hundreds or thousands of dollars in court and attorney fees associated with probate.
Also, by avoiding probate, the terms of your Trust remain private. If you have a Trust and become incapacitated, you avoid the need for the court to appoint a conservator, which is another public proceeding. With a will, an announcement needs to be placed upon your death so that creditors can file claims they may have against you and relatives can contest your will. This is avoided with a Trust, and your beneficiaries will remain confidential.
Probate can take months or even years. If you have a Trust, your estate can be settled in just a short time after your death because there won’t be court delays or judicial interferences.
Maintain Control
Your Trust document contains instructions for managing your assets in the event of your death or incapacity. While you are able, you still have full control to buy, use, spend, or even give away your Trust property. You can sell property, change your beneficiaries, change your Trustee, or even revoke the Trust as a whole. Then when the time comes when you are unable to handle your own affairs, your previous work in establishing the Trust will make sure your affairs are handled according to your wishes.
Eliminate or Reduce Estate Taxes
With a Trust agreement, you may reduce or even eliminate estate taxes which could otherwise be charged against your estate upon your death.
Effective Pre-Nuptial Planning
A Trust can be an effective pre-nuptial planning tool. Any property that you place in your Trust before you marry is the property of that Trust. That means it stays separate from any property accumulated during your marriage, making it your separate property and not marital property for divorce purposes.
The Astill Law Office has provided high quality legal services for over 30 years. We specialize in Wills, Trusts, Estate planning, and Asset Protection. If you have any questions about creating a Trust, Will, or estate planning in general, contact The Astill Law Office at 801-438-8698.