There are many different trusts in Utah that can be used for estate planning. In selecting which type of trust to create, a property owner and his attorney must consider several key factors. Heber lawyers can assist you in drafting a trust if you wish to make a permanent disposition of property.
Your goal of creating trust is key. A trust can be used to ensure that your wishes are carried out, even after your death.
In every trust, there is also a person who benefits from your trust, known as a beneficiary. The capacity and needs of the beneficiary are frequently a concern in setting up a trust, especially if someone who cannot make decisions on their own, like a minor or elderly person, needs to be cared for.
The estate laws of Utah are a consideration, as they govern the creation and operation of trusts in the state. State and Federal tax laws are also a consideration, as trusts are frequently used to shelter an estate from taxes and pass it to heirs.
Types of Trusts
Depending on what you need and would want, several types of trusts are usually available to achieve any given goal.
A living trust is established while you, the grantor, are still alive. It is used when you want to make the property available to a beneficiary at once, without waiting for death.
You can set up the trust using a trust instrument and is still alive and able to ensure that the terms of the trust are properly carried out. No court supervision is necessary so long as the living trust Utah is carried on according to the wishes of the grantor.
The opposite of a living trust is a testamentary trust. This is set up by your will or other documents that only come into operation after your death. Probate is usually necessary to give operation to a testamentary trust. There are advantages to a testamentary trust; the property owner retains control of his property during his lifetime.
A revocable trust is one that a grantor can revoke, or cancel, during their lifetime. If you become dissatisfied or wish to change the arrangement that has been made, the trust can be canceled, and the property in the trust is disposed of according to your new wishes.
Once you die, the trust becomes permanent. The advantage of such a trust is that you can change the terms of the trust as circumstances change in your life or your beneficiary’s life.
The opposite of a revocable trust is an irrevocable trust. If you are certain about the matter, a living trust can be set up irrevocably. Once you place the property in an irrevocable trust, it passes permanently to the trust and must be used according to the terms of the trust.
The advantage of such an irrevocable trust is that the property is settled, and its use is fixed. If a property owner wishes to ensure the care of a dependent adult or minor, such a trust could be very useful.
A number of different trusts can be established for passing property to charities. These include the Charitable-Lead Trust, the Charitable Remainder Trust, and the Charitable-Lead Annuity Trust. The differences between these trusts depend upon the type of property placed in the trust and the time at which the property passes into the trust.
Special Needs Trust
A dependent with disabilities often needs help managing affairs or is unable to manage affairs at all. In such instances, a special needs trust can be the perfect means to ensure that a loved one is properly cared for after the death of parents or caregivers.
Many other trusts are available. This is a highly specialized area of law, and not all attorneys handle the work. Consultation with Heber estate planning attorneys like the Gordon Law Group can assist you with your needs if you wish to create a trust. Call today for an appointment.