top of page
TRUST CREATION WITH BAINUM LAW
A trust can be an invaluable tool for your estate planning. While a will must undergo probate and become a public record after your death, a trust goes into effect as soon as it is signed, it is a private document, and does not have to go through the probate process.
Call Cache Valley attorney Craig M. Bainum for an estate planning consultation today.
WHAT IS A TRUST AND HOW DOES IT DIFFER FROM A WILL?
A trust is a legal estate planning arrangement where the possessions, assets, and property of an individual or married couple are transferred into the trust. A trustee is appointed to manage the trust and ensure that the assets are distributed according to the dictates of the trust document.
A will goes into effect upon the death of the testator, however, a trust is effective immediately following the signing of the legal trust documents. Additionally, your will must go through probate, a legal process in which the courts determine the will’s validity and turn the execution of the will over to the executor. Probate can sometimes be lengthy and use a portion of the estate’s assets to cover probate costs. Upon the death of the testator, a will becomes a public record as part of the legal system. A trust is effective as soon as it is signed, and therefore, no probate is necessary. This means that the trust document is never required to become a public record.
DIFFERENT TYPES OF TRUSTS
A trust is designed to provide protection for your assets and guidance on how they are to be used and distributed. There are many types of trusts, however, there are four primary trust types, namely, revocable trusts, irrevocable trusts, living trusts, and testamentary trusts. A living trust is created during the trustor’s lifetime and goes into effect immediately. A testamentary trust is created through a testator’s will upon death. A revocable trust is a type of living trust that goes into effect upon the signing of the documents but can be altered during the lifetime of the trustor. Irrevocable trusts are often created for tax purposes and cannot be altered after creation. While you can add additional assets to the trust, you cannot remove your assets from the trust.
There are also trusts that are specially designed to meet the unique needs of individuals, families, or organizations in many different situations. These include charitable trusts, special needs trusts, irrevocable funeral trusts, generation-skipping trusts, and more. If you need to make provisions for a special needs child, a trust is the best tool available to help you guide the use of your assets to care for that child for life.
WHAT ARE THE PRIMARY BENEFITS OF A TRUST
Wills And Trusts are both important estate planning tools, and they are often used together. Below are listed a few of the main benefits of utilizing a trust as an important part of your estate planning:
● Increased privacy because the trust isn’t in public records
● Bypass probate to save time and money after your passing
● Protecting assets from creditors, including lawsuits
● Name your children as beneficiaries of your life insurance policy
● Possible tax advantages, both gift and inheritance taxes
● Control of assets after your death
● Making provisions for a child with special needs
TRUSTS FROM BAINUM LAW
Craig M. Bainum is an experienced Cache Valley attorney. He has been practicing law in the State of Utah for over 30 Years. His primary goal is to provide excellent legal services to his local Cache Valley Community. He has seen many examples of good estate plans as well as poor estate plans and can help you create a sound, legal will and trust for your peace of mind. If you are unsure whether you would be better off creating a will or a trust (or both) call today, or click here to learn more about wills from Bainum Law.
bottom of page