Is a Trust Necessary if You Have a Will?
If you have already written a will, you are further along with your estate plan than approximately half of Americans. For many people, though, having only a will leaves some important gaps in their estate plan. Revocable trusts are very effective at filling these gaps. Still, not everyone needs to draft a trust along with a will. Whether it makes sense for you depends on the property you own, who your beneficiaries are, and if you need to simplify matters for your loved ones.
The short answer for most people in Utah with meaningful assets and minor children is that they need both. Below, our Utah estate planning lawyer explains in greater detail.
What Your Will Can and Cannot Do
Wills are very powerful documents. It informs the court who you want to inherit your property, appoints a guardian for any minor children, and names a personal representative who will administer your estate. However, a will cannot protect all of your property. These documents still have to go through probate and so, the assets you want to leave for loved ones can be at risk of creditor claims and more.
Wills also only become effective after you pass away. This means if you become incapacitated and can no longer manage your own affairs, your family members and the courts will have to determine who will.
How Can a Trust Help?
A revocable trust is not a replacement for your will. Instead, it works alongside it and addresses issues your will cannot.
Firstly, a trust will protect your assets during your lifetime, and after. The courts do not have to approve or confirm a trust and so, the property within it stays outside of the courtroom. Creditors cannot try to seize it for unpaid debt and the property can transfer directly to your beneficiaries after you pass away. Unlike anything that happens in court, the contents of a trust also remain confidential.
Lastly, if you become incapacitated and cannot manage your own financial affairs, your successor trustee can step in and handle them on your behalf. Your successor trustee is the individual you name to manage the trust according to your instructions in the event that you pass away or do not have the mental capacity to do it yourself.
Without a trust, your loved ones may have to petition the court so a conservator can be appointed. This can be a long and expensive process and in the meantime, your property will not be managed.
Our Estate Planning Lawyer in Utah Can Advise on the Documents You Need
There are some situations in which a will alone is enough but when it is not, failing to establish a trust can leave important property, and your beneficiaries, at risk. At AGS Law, our Utah estate planning lawyer can review the facts of your case, determine what documents you should include in your plan, and execute them properly so you and your loved ones are protected. Call us today at 801-477-6144 or fill out our online form to schedule a consultation and to learn more about how we can help.
Source:
le.utah.gov/xcode/Title75/Chapter7/C75-7-P6_1800010118000101.pdf