Salt Lake City Trusts Attorney
Helping You Plan for the Future
At Pearson Butler, our Salt Lake City trusts lawyers are dedicated to helping clients plan for the future. We understand that the idea of creating a trust can be overwhelming, but we are here to help. Our team has extensive experience in this area of law and can guide you through the process from start to finish. We will help you understand your options and make informed decisions about your future.
What is a Trust?
A trust is a legal arrangement that allows a third party, known as the trustee, to hold assets on behalf of a beneficiary or beneficiaries. The person who creates the trust is known as the grantor.
Trusts can be used to hold a wide range of assets, including real estate, bank accounts, investments, and more. The trustee is responsible for managing the assets in the trust and distributing them to the beneficiaries according to the terms of the trust.
There are several different types of trusts, including:
- Revocable Living Trust: Allows the settlor to retain control of the assets during their lifetime. It can be modified or revoked by the settlor.
- Irrevocable Trust: Cannot be easily altered or revoked once established. It provides potential tax advantages and asset protection.
- Testamentary Trust: Created through a person's will and only takes effect upon their death. Allows for the distribution of assets to beneficiaries according to the terms specified in the will.
- Charitable Remainder Trust: Provides income to the beneficiary for a specified period, after which the remaining assets go to a charitable organization.
- Charitable Lead Trust: Provides income to a charitable organization for a specific period, after which the remaining assets go to non-charitable beneficiaries.
- Special Needs Trust: Created to provide for individuals with disabilities without affecting their eligibility for government benefits.
- Asset Protection Trust: Designed to protect assets from creditors and legal judgments.
- Family Limited Partnership (FLP) and Family Limited Liability Company (LLC): Business entities that can be used as part of an estate plan to transfer and manage family assets.
- Qualified Personal Residence Trust (QPRT): Allows a person to transfer their primary residence or vacation home to an irrevocable trust while retaining the right to live in it for a specified period.
- Dynasty Trust: Designed to pass wealth from generation to generation while minimizing estate taxes.
Each type of trust has its own unique benefits and drawbacks. Our Salt Lake City trusts attorneys can help you determine which type of trust is right for you and your family.
Why Create a Trust?
Creating a trust in Utah can offer various benefits depending on your specific goals and circumstances. Here are some potential advantages of establishing a trust in Utah:
- Probate Avoidance: One significant benefit of a trust is that it can help your estate avoid probate. Probate can be a time-consuming and costly process, and a trust allows for the efficient transfer of assets to beneficiaries without court involvement.
- Privacy: Probate proceedings are public record, exposing your assets and distribution plans. A trust, on the other hand, provides a level of privacy as the details of your estate plan are not part of the public record.
- Flexibility: Trusts offer greater flexibility in managing and distributing assets. You can customize the terms of the trust to meet your specific wishes and address the unique needs of your beneficiaries.
- Asset Protection: Certain types of trusts, such as irrevocable trusts, can provide a level of asset protection. These trusts can shield assets from creditors and legal judgments.
- Tax Planning: Trusts can be used for effective tax planning. Depending on the type of trust and the specific provisions, you may be able to minimize estate taxes and provide for tax-efficient wealth transfer to beneficiaries.
- Continuity of Management: Trusts allow for the seamless management of assets in the event of the settlor's incapacity or death. The appointed trustee can step in to manage the trust without the need for court intervention.
- Special Needs Planning: Special Needs Trusts in Utah can be established to provide for individuals with disabilities without jeopardizing their eligibility for government assistance programs.
- Family Wealth Preservation: Dynasty trusts can be set up to preserve family wealth and provide for future generations, allowing assets to pass down without being subject to estate taxes at each generation.
- Reduced Risk of Will Contests: Trusts are less susceptible to legal challenges compared to wills. The structured nature of a trust can make it more difficult for disgruntled heirs to contest the distribution of assets.
- Smooth Succession Planning: Family Limited Partnerships (FLPs) or Family Limited Liability Companies (LLCs) can be used within a trust structure for smooth succession planning, particularly in family businesses.
How Our Salt Lake City Trusts Lawyers Can Help
Creating a trust is a complex process that requires careful planning. Our Salt Lake City trusts attorneys can help you create a trust that meets your needs and the needs of your family.
Our Salt Lake City trusts lawyers can help you with all of your trust-related needs, including:
- Creating a trust
- Funding a trust
- Modifying a trust
- Administering a trust
- Resolving trust disputes
Whether you are interested in creating a trust or need help administering a trust, our Salt Lake City trust attorneys are here to help. We will work closely with you to develop a comprehensive estate plan that meets your needs and the needs of your family. Our team is committed to providing you with the personalized legal services you deserve.