Important Considerations Before Establishing a Trust

Trusts are simply legal documents grantors (people establishing a trust) use to transfer their property to the name of the trust. Grantors also name trustees, often themselves, to manage the property within a trust. Successor trustees are also named. Successor trustees will take over management of the trust and its assets if the grantor becomes incapacitated or passes away. Trustees must follow the instructions left within the trust.

If you have considered establishing a trust, there are some important factors to consider. Below, our Utah estate planning attorney outlines what these are.

Identify Your Goals

Trusts can help you achieve many goals. For example, they can help your loved ones avoid probate and in certain situations, they can protect your assets from creditors and divorce. You can also use a trust to leave property to your loved ones and outline specific conditions for distribution. For example, you may want a beneficiary to receive smaller distributions of property over a longer period of time instead of all at once.

Your own goals will shape what type of trust you establish, the property you transfer into it, and the instructions you leave. Due to this, it is critical to identify your goals and how you want the trust to perform.

Choose the Right Trustee

Trustees have many responsibilities. They must manage the trust and the property within it. As such, it is critical that your trustee is a person you trust implicitly to make reasonable legal and financial decisions. You also do not have to choose an individual you know, such as a friend or family member. You can also choose a professional trustee such as a trust company or a financial institution.

Know the Costs

Trusts do have greater upfront costs than simply drafting a will. However, the benefits they provide often outweigh the expense. For example, trusts are harder to challenge in court than wills. It is important to speak to an attorney before drafting any estate planning documents so there are no surprise costs.

Draft a Comprehensive Estate Plan

Trusts are very powerful estate planning tools, but they are just one of many. To ensure that your property and loved ones are fully protected, it is important to integrate any trust you establish with other legal tools such as a power of attorney, wills, and advance health care directive. An attorney can review your individual situation and assets, determine which estate planning documents are right for you, and ensure they are executed properly so you and your family are protected.

Consult an Estate Planning Attorney in Utah

There are very specific laws governing trusts in Utah. It is critical to work with a Utah estate planning attorney who is familiar with these documents and can ensure yours is executed properly. At AGS Law, we are committed to helping clients create personalized estate plans. Whether you need to establish a trust or review an existing one, we can help. Call us now at 801-477-6144 or contact us online to schedule a consultation with our experienced attorney and to learn more about how we can help with your case.

Source:

le.utah.gov/xcode/Title75/Chapter7/C75-7-P6_1800010118000101.pdf