A trust is a legal entity used to allow a trust to give another party, the trustee, the right to hold a title, many properties or manage assets for the benefit of a third party. Trust provide legal protection to assets. They ensure that assets are distributed according the individual’s wishes.
Trusts come in various forms that are tailored to each individual circumstances. They provide protection to assets. There are many key components to a trusts. First is the grantor. The grantor establishes the trust and transfers assets into it. The trustee is the person that manages the trust assets and distributes them according to the terms of the trust. Trust plays crucial role in estate planning and wealth preservation. They allow for probate avoidance, minimize tax liabilities, privacy, and protection on many assets. With the right representation a trust will allow for all of those to take place.
Common trust types used in estate planning in Utah include:
- revocable living trust
- irrevocable living trust
- supplemental needs trust
Trusts are a valuable asset when planning for the future. By understanding the ins and outs of trust individuals are able to make informed decisions to achieve their estate planning objective and allow their legacy to continue for generations to come.