Things to Know Before Establishing a Trust
Establishing a trust is one of the best ways to protect your property and ensure the distribution of it is smooth after you pass away. However, for individuals and families who are considering this step, there are many important factors to understand. Below, our Utah estate planning lawyer outlines things to know before establishing a trust.
What are Trusts?
Trusts are legal arrangements that allow a person, known as the grantor, to transfer property to the name of the trust. A trust is a legal document that names a trustee who will manage the property for the benefit of the beneficiaries, who are also named in the trust. Trusts have many purposes, including protecting your family’s wealth and ensuring that children and other dependents are cared for after you pass away.
You can customize a trust according to your own goals and preferences. You can control how your property is distributed, and even when. It is this flexibility that makes trusts a powerful estate planning tool.
Factors to Consider Before Establishing a Trust
Establishing a trust is a process that requires professional guidance and careful thought. Some of the most important things to consider before drafting your document include:
- Identifying your goals: Before drafting a trust, consider what you want to achieve with your trust. Is your priority to help your family avoid probate? Or do you want to protect property from creditors? Perhaps you want to establish specific conditions for beneficiaries. Understanding your goals shapes the type of trust you will establish.
- Selecting the right trustee: The trustee you choose will be responsible for managing the trust and the property that is placed within it. You should ensure that you trust your trustee implicitly and are confident they can make sound legal and financial decisions.
- Understanding the associated costs: Trusts are slightly more complex and costly to establish than simply drafting a will. Still, the long-term benefits usually outweigh these expenses. It is important to discuss the costs of establishing a trust with your attorney so you can make sure you are planning within your means.
- Creating a comprehensive estate plan: Trusts are just one part of a comprehensive estate plan. To ensure your family and property are protected, integrate your trust with other estate planning tools such as a will, power of attorney, and healthcare directives.
- Working with an attorney: All states, including Utah, have very specific laws that govern trusts. Working with an attorney can ensure that your trust is legal, that its terms will be enforced, and that it effectively meets your objectives.
Our Estate Planning Lawyer in Utah Can Help Establish Your Trust
At AGS Law, our Utah estate planning lawyer can review your situation, help you identify your goals, and draft your trust so you can move forward with confidence and know your family is protected now, and in the future. Call us today at 801-477-6144 or chat with us online to request a consultation with our experienced attorney and to get the legal advice you need.
Source:
le.utah.gov/xcode/Title75/Chapter7/C75-7-P6_1800010118000101.pdf
