Titling Assets in the Name of Your Trust
One of the key purposes of a trust is to avoid probate and simplify the transfer of assets. For your trust to work as intended, assets must be titled correctly:
- Real estate: Work with an attorney or title company to prepare and record a deed transferring ownership into the trust.
- Bank or brokerage accounts: Contact your financial institution and request their process to retitle accounts in the trust’s name.
- Vehicles: Utah law allows most vehicles to pass outside probate. Before retitling a vehicle to the trust, ask whether it’s the best option for your situation.
Payable on Death (POD) and Transfer on Death (TOD) Designations
Beneficiary designations are another important way to align your estate plan.
- Review existing designations on bank accounts, retirement accounts, and life insurance policies.
- Update designations so they are consistent with your trust and overall estate plan.
- In many cases, the trust should be named as the primary or contingent beneficiary, but confirm with your attorney before making changes.
Changing Beneficiaries to the Trust
Certain types of accounts require specific forms to change beneficiaries:
- Retirement accounts (401(k), IRA, etc.): Use the custodian’s official form to designate the trust if recommended.
- Life insurance policies: Submit a change-of-beneficiary form to your insurer if the trust is intended as the beneficiary.
Updating Your Estate Plan
Your estate plan should reflect your current circumstances and wishes.
- Do not make handwritten changes to your documents. These notes are generally invalid and may create disputes.
- Updates must follow the same legal process as your original plan, including notarization and/or witnessing as required under Utah law.
- Contact our office if you need to:
- Update your trust or will
- Change your Power of Attorney
- Revise your Advance Health Care Directive
Guidance for Trustees and Loved Ones
If you are a trustee or family member handling an estate, here are important next steps.
Immediate Next Steps
- Locate the estate plan documents (trust, will, powers of attorney, and health care directive).
- Obtain certified copies of the death certificate. These are usually ordered through the funeral home, the Utah Department of Health, or sometimes through a county health department.
Trust Administration
- The successor trustee should carefully follow the instructions in the trust regarding distribution of assets, payment of debts, and any required notices.
- Trustees often meet with an attorney to ensure the trust administration process is handled properly.
Probate
Even with a trust, probate may still be necessary in certain situations.
- Probate may be required if assets were not properly titled in the trust or lack valid beneficiary designations.
- A will (called a “pour-over will”) directs those assets into the trust, but court involvement may still be required.
Taxes and Reporting
- The trustee or personal representative is responsible for filing final income tax returns and, if applicable, estate tax returns.
- Professional guidance is strongly recommended to ensure compliance with state and federal requirements.
Contact Our Office
Your family or successor trustee should contact our office promptly to review the next steps. Our team will walk you through the process to ensure everything is handled with care and in accordance with Utah law.