A lot of individuals who decide to set up a trust do so because they want their wealth to continuously grow for the next generations. However, the legal document used for appointing trustees, who shall manage and administer the trust estate, can be quite confusing. As such, it is vital to consult with reliable Orem estate planning attorneys who can help make things easier for you especially when dealing with estate administraion.
What this article will cover are:
- Legal documents for setting up a trust
- Opting for trusts to avoid probate proceedings
- Other advantages of this estate planning tool
- The need for reliable Orem estate planning attorneys
Legal Documents for Setting Up a Trust
A revocable living trust allows a trustor to appoint a specific trustee who will be managing and administering trust property. Usual options are loved ones and trust companies, but grantors themselves can also be appointed as trustees.
Under relevant trust law, a living trust you create may be revoked or amended, at your discretion, essentially anytime during your lifetime. Under this estate plan, no trust assets are transferred to any beneficiary of a trust (who you decided to appoint, be it a surviving spouse or would-be heirs) until after death.
Additionally, your trust beneficiary will benefit from the flexibility and privacy protection it offers. As would be explained to you by a trusted Orem estate planning attorney, a revocable trust is an ideal choice for trustors who are seeking privacy in terms of their personal affairs. These estate planning documents help keep private records and information on probate estate.
Avoiding Probate Proceedings
Drafting this estate planning document enables one to articulate how property in trust shall be managed when you die. Here, estate assets (bank account, personal property, real property, other investments, and the remainder of your possessions) are placed in the name of the trust account.
Revocable trusts enable you to avoid transferring property to a loved one through probate court. Since assets of the deceased person are owned by the trust and not by the decedent, they need not be brought to court and probated. This will allow your surviving spouse, children, or even grandchildren to be spared from probate costs and the stress that comes with such a proceeding.
Other Advantages of these Estate Planning Documents
Additionally, an individual who creates trust will be able to decide on guardianship while he or she is still alive. Aside from naming the actual guardian, it can specifically be used to control the spending habits of your minor children’s guardian. A revocable living trust could likewise give authority to another individual to make decisions for you in case you become disabled or incapacitated. A grantor can appoint someone who could manage financial affairs without having to obtain a durable power of attorney.
On top of all these, there are other benefits that people with specific circumstances can avail of. A married couple who have a substantial property that was acquired before the marriage would likely opt to establish a trust. Trust documents are useful for segregating such from those considered as community property.
Finally, while a trust document is not primarily used to minimize estate taxes, provisions in the trust can allow for a transfer of wealth through a credit shelter trust (that is established upon death). To set up a credit shelter trust effectively reduces what is taxed for large estates that go beyond usual estate tax exceptions.
Legal Help from Reliable Estate Planning Lawyers
Experts in estate planning laws can advise you on which tool is most appropriate for you and your circumstances. While last wills and testaments are widely used, they are not the most ideal estate planning option. This is partly because wills could lead to disputes between heirs you appoint. A family member, for example, could try and contest your last will and testament. Commonly used grounds are supposed undue influence or supposed lack of testamentary capacity. In contrast, when you create trust, you could specifically disinherit some who pose a challenge to your death wishes. This is in addition to all the advantages mentioned above. As such, it is important to get in touch with an expert on estate planning law.
Consult with a professional from a reliable estate planning law firm to learn more about asset protection in light of different types of trusts. Whether it is a revocable or irrevocable living trust, these documents must be taken seriously. Call us at Waldron Law Group and consult with competent Orem estate planning attorneys.