Wednesday, 4 July 2018

Lottery Trust

If you’re one of the lucky few to strike it rich in the state lottery, congratulations! But before you jet off to the tropics, break ground on that new four-story mansion, or start giving out a bunch of cash to your friends and relatives, you’ll most likely need some help managing all of that newfound wealth. Establishing a “lottery trust” in the form of a blind trust, revocable trust, or some other legal entity can help alleviate potential problems. For instance, a blind trust allows lottery winners to maintain their privacy in states that prohibit winners from remaining anonymous.

Lottery Trust

This article provides the basics of establishing a lottery trust, but there is no one-size-fits-all approach as the needs of each lottery winner will vary. Generally, those who choose to form a trust for their lottery winnings will need to do so before claiming their prize.

When You Might Need a Lottery Trust

Not everyone will need or want a new trust through which to manage their lottery winnings, but it’s very important to work with a reputable financial planner. If you’re married and already have a trust set up in you and your spouse’s name, you can simply deposit the winnings into that account. But you may also want to include additional bells and whistles often used by wealthy couples, such as a bypass trust that automatically names the surviving spouse as the beneficiary upon your death and helps reduce your family’s tax obligations.

Factors to consider before deciding on whether to establish a lottery trust include (but are not limited to) the following:

  • Anonymity – Just a handful of states protect the anonymity of lottery winners; by putting your winnings into a trust, only the name of the trust becomes public.
  • Multiple Winners – It’s very common for coworkers or family members to pool their resources and enter the lottery using the same number; but since only one entity may claim a lottery prize, the establishment of an irrevocable trust in the name of the winners will ensure fair distribution.
  • Payments or Lump Sum? – The way in which you receive your lottery winnings will have an impact on your tax obligation; if the winner dies before all payments are made, for example, a trust can help manage those annual tax bills.
  • Married? – You’ll want to look into the marital property implications of your lottery winnings; consider getting a prenuptial agreement if you get married after winning the lottery.

Set Up a Lottery Trust

If you’ve just won the lottery, you’re probably excited to cash it in as soon as possible and pay off debts, go on a spending spree, and send checks to your relatives. But time is on your side, and it’s important to take a deep breath and consider your options first. A financial planner can help you manage your wealth, while an estate lawyer will be able to draft a lottery trust for you and your family.

As with any other trust, a lottery trust — whether it’s a blind, revocable, or irrevocable trust — is managed by an appointed trustee. The winner may appoint him or herself as the trustee, but appointing another individual will help protect your privacy. You will then name beneficiaries to the trust, which may be your family members or just yourself. Lottery winners often set up individual trusts for each family member, as well as charitable or other types of trusts.

Blind Trusts

When you create a blind trust — in which you (and other named beneficiaries) are not involved in the day-to-day management of the funds — you essentially donate your winning ticket to the trust before claiming the prize. The trust, then, claims the ticket in its name and invests the funds (without your input) as it sees fit. Since the lottery winner isn’t involved in the investment or management decisions, it’s best to appoint someone with expertise in such matters.

Irrevocable Trusts

An irrevocable trust, meanwhile, is considered the best legal entity to use when multiple individuals are claiming a single prize, such as workplace lottery pools. Irrevocable trusts allow the funds to be dispersed to each of the winners in the pool without having to simply rely on a single winner’s honesty (while avoiding the tax consequences of transferring the winnings to multiple parties). And since it may not be revoked or altered, it helps prevent future disputes among the parties.

Other types of trusts or legal structures may be suggested by a trusts attorney, who can help determine the best route by assessing your needs and goals.

Free Initial Consultation with a Lottery Trust Lawyer

If you’ve won the Lottery – protect your assets and call Ascent Law for your free Lottery Trust consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Tuesday, 3 July 2018

Basics of Common Law Marriage

In the United States, common law marriage has been in existence since the horse and buggy days of 1877. While it might sound like an archaic form of matrimony, it’s still technically around today in one form or another in ten (10) states and the District of Columbia. Additionally, five (5) states recognize common law marriages with some restrictions.

Basics of Common Law Marriage

Definition of Common Law Marriage

A common law marriage is one in which the couple, usually a man and woman, lives together for a period of time and holds themselves out to friends, family and the community as “being married,” but never go through a formal ceremony or get a marriage license. Here are three requirements for most states. Just “living together” is not enough to validate a common law marriage.

  1. You must live together (amount of time varies by state).
  2. You both must have the legal right or “capacity to marry”
  • Both must be 18 years old (varies by State);
  • Both must be of sound mind;
  • Both must not be married to someone else.
  1. You both must intend to be married.
  2. You both must hold yourself out to friends and family as being a married couple such as:
  • Taking the same last name;
  • Referring to each other in public as “husband” or “wife;”
  • Joint bank accounts;
  • Joint credit cards.

States that Recognize Common Law Marriage

The following states fully recognize common law marriage:

  • Colorado
  • District of Columbia
  • Iowa
  • Kansas
  • Montana
  • Rhode Island
  • South Carolina
  • Texas (calls it “informal marriage”)
  • Utah

States with Limited Recognition of Common Law Marriages

The following states formerly recognized common law marriages, and will generally still recognize them if couples satisfied all the requirements before the ban was in place.

  • Georgia (if created before January 1, 1997)
  • Idaho (if created before January 1, 1996)
  • New Hampshire (for inheritance purposes only)
  • Oklahoma (if created before November 1, 1998)
  • Ohio (if created before October 10, 1991)
  • Pennsylvania (if created before January 1, 2005)

Same-Sex Marriage and Common Law

Iowa, Rhode Island and the District of Columbia were the first to recognize common law same-sex marriages. Most other common law states make the law gender-specific so only a man and a woman can enter into a common law marriage.  Now the entire United States recognizes Same-Sex marriage.

What If We Couldn’t Get Married When We Started Living Together?

Even if you don’t have capacity to marry when you start living with someone, you can still end up in a common law marriage.

This could happen if:

  • You or your partner gets a divorce while you are living together in a common law state; or
  • You move in with someone who is married, and their spouse dies while you are living with them.

Does a Common Law Marriage End When We Split Up?

No. Once established, a common law marriage is just as valid and binding as a formal wedding and marriage would be. It lasts until a court grants a divorce or one partner dies.

What Happens if My Common Law Spouse Dies?

You will have to prove your marriage to be able to inherit and receive insurance benefits, Social Security Survivor’s Benefits or pension benefits.

How to Tell If a Common Law Marriage Exists

Generally speaking, the strongest evidence that both partners intended to be married would be a written agreement between them. Ultimately, you only know for sure if there is a common law marriage when a judge says so.

Here are some factors a court would look at to determine if you are or were in a common marriage

These include:

  • Did you two live together?
  • Did the woman use the man’s last name?
  • Did you sign contracts together to buy a home? A car?
  • Did you file joint tax returns?
  • Did you have joint bank accounts?
  • Did you each refer to each other as husband and wife?
  • Did you share household duties and expenses?
  • Did you have and raise children together?

The most important thing you should do when you want to have a common law marriage established in Utah is to talk to a lawyer and get the court process done. If you don’t do it while you are both alive, it will be extremely difficult to do after a spouse has passed away.

Free Consultation with Family Law Attorney in Utah

If you have a question about divorce law or family law in Utah call Ascent Law at (801) 676-5506 for your free consultation. We will help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Life Insurance Policy to Lower Estate Tax

Before we get started, you may not need to worry about transferring your life insurance policy unless your estate will be subject to the federal estate tax. As of 2017, only estates worth over $5.49 million are subject to any estate taxes, although this can be changed by Congress at any time.

Life Insurance Policy to Lower Estate Tax

If your estate could be subject to the estate tax, then it’s important to understand that only assets owned in your name at your death count towards the value of your estate. According to estate law, if you transfer your life insurance policy, when you pass away the proceeds will not be in your name and would therefore not be included in the value of your estate at your death.

In general, there are two ways that you can accomplish this goal. First, you can transfer ownership of the policy to another adult, even the named beneficiary. Second, you can create an irrevocable life insurance trust and transfer the policy to the ownership of the trust. Be aware, however, that if you get life insurance through your job, you may not be able to transfer ownership rights.

Transferring Ownership to Other Adults

Although it can be easier, transferring ownership of your life insurance policy to another adult has its drawbacks. Perhaps most significant is that once you transfer ownership you can’t change your mind or go back and alter the policy.

For example, if you transfer your life insurance policy to your best friend, but then have a falling out, you can’t get your life insurance policy back. These transfers tend to work well in situations when you transfer a policy to an adult child with whom you have a good relationship.

The Three-Year Rule

Whenever transferring ownership of life insurance policies, the three-year rule applies. Under this rule created by the IRS, if the transfer takes place within the three years before death and is made without any consideration, then the proceeds from the policy are counted in the estate for tax purposes. So, if you’re considering transferring ownership of your life insurance policy, you should do so sooner rather than later.

Other Applicable IRS Rules

There are other rules and regulations that the IRS follows to determine the ownership of life insurance policies for estate tax purposes, as discussed below.

Retaining Ownership

If a deceased person kept any “incidents of ownership” over the policy after a transfer, then the policy is still considered to be owned by the deceased at death and counted for estate tax purposes. Incidents of ownership exist where, after a transfer, the deceased retains the power to:

  • Cancel, surrender or convert the policy;
  • Use the policy as collateral to borrow money;
  • Change the named beneficiary on the policy; or
  • Select the method of payment for the policy (installments or a lump sum).

Gift Tax Concerns

Under current laws (as of 2017), any gift of more than $14,000 is subject to a gift tax. Therefore, if you transfer a life insurance policy that has a present value of more than $14,000, any amount over that will be taxed when the policy is paid out.

However, even with this tax, it’s still worthwhile to transfer the policy instead of keeping it within your estate. If your estate will already be subject to the estate tax, then the full amount of your life insurance policy will be included in your estate and be subject to the estate tax at your death. However, if you transfer the policy before your death, only the amount that the policy was worth at transfer will be taxed.

How to Transfer Life Insurance Policies

Much like giving other pieces of property, you can give away your life insurance policies either by signing a document called an “assignment of rights” or a “transfer”, or by transferring the policy into a life insurance trust. Let’s take a look at both options.

Assigning/Transferring Rights

Most life insurance companies have their own forms to transfer ownership, which are best to use to avoid confusion. You can request an assignment or transfer form directly from your life insurance company, but you may also have to change the policy to indicate that the insured is no longer the owner.

After the transfer has been completed, the new owner is responsible for making all premium payments. If you continue to make the payments on the policy, the IRS may view this as evidence that you are still the true owner and will count any life insurance proceeds in your estate for tax purposes.

In general, there are two types of life insurance policies that can be transferred. The first is a prepaid, single-payment policy. The upside of transferring this type of policy is that there are no premiums that the new owner must continually pay. However, if the policy is worth more than $14,000 when it is transferred, a gift tax will be assessed on your death. The second type is a policy that asks for yearly premium payments. If the policy is worth less than $14,000 each year, then there will be no gift tax assessed upon your death because you are giving a gift of less than $14,000 each year.

Life Insurance Trusts

In order to transfer your policy to a trust for estate tax purposes, you must create an irrevocable life insurance trust and then place the policy inside of the trust. After you transfer the policy, you are no longer the policy owner and the policy benefits will not be included in your estate.

There are a few reasons why this may be better than transferring ownership to another person. First of all, there may not be anyone that you trust to take ownership and control of the policy. Or, even if there is someone you trust, you may not want that person to incur the responsibility of paying the policy premiums.

In addition, by placing the life insurance policy inside of a trust, you may continue to have some control over the policy remotely. For example, you can set up the trust in such a way that you guarantee that the policy will continue to have its premiums paid while you are still alive by simply putting those conditions inside of the documents that create the trust.

There are three requirements in order to create a valid life insurance trust, which include:

  1. The trust that you place your life insurance policy in must be irrevocable. This means that you will not have the right to revoke the trust. If you do, you are still considered the owner of the trust and it will be counted towards the value of your estate;
  2. You cannot be the trustee of the trust; and
  3. The trust must be created at least three years prior to your death (per the three-year rule).

Free Consultation with a Utah Estate Lawyer

If you are here, you probably have an estate issue you need help with, call Ascent Law for your free estate law consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Monday, 2 July 2018

10 Ways Your Spouse Can Hide Money in Divorce

Is your spouse hiding money from you? The ten areas listed below have been used many times. If your spouse has lied to you about money issues, there’s a good chance your spouse is hiding money through his or her employment.

Many divorcing spouses that will likely have to pay alimony or support complain about their poor financial situation in the hopes of persuading the other spouse, their lawyer and the court that they simply have no money.

10 Ways Your Spouse Can Hide Money in Divorce

Income Tricks in Divorce

If you believe your spouse is hiding money in an effort to lower child support and alimony awards, you and your attorney should work to uncover hidden income and assets and to prove the actual amount of money available for purposes of support and alimony. The categories listed below will give you a starting point for finding hidden income and assets.

1. Salary deferred until after the divorce

Your spouse may defer a portion of salary until after the divorce. Look for letters or notes asking someone to defer your spouse’s income. The past history of your spouse’s earnings could also be very telling. If your spouse is accustomed to receiving $50,000 per year in commissions and is suddenly not receiving any, this is a suspicious fact that your attorney can use.

2. Expense accounts and other “perks”

“Perks” refer to benefits over and above direct compensation that a company may offer its employees. Some companies offer very little to no perks, while the perquisites of other companies are so valuable that they almost equal the salary being paid. Some common perks are as follows:

(a) A company car for personal use

(b) Paid parking space

Some companies pay all or a portion of their employees’ monthly parking rates.

(c) An expense account

Expense accounts range from small to large. Your spouse may have an expense account to take customers to fancy restaurants, sporting events, or other functions. Look at the documents to see whether you spouse is taking clients to inexpensive restaurants and keeping a portion of the weekly expense account for him/herself. Your spouse may charge all or most meals to his/her employer, but list them as an expense in the divorce.

(d) Meal allowance

(e) Clothing and uniform allowance

3. Bonuses

Some employees receive bonuses in addition to their net pay. Look for deals where partial bonuses are paid and the other portion is put into a separate account accruing to the benefit of the employee. Bonuses can be deferred for future distribution. Look for a pattern of bonus payments in the past.

4. Vacation or business trip

Does your spouse’s employer pay for days at hotels when the business part of the trip has been completed? Some employees are allowed to take their spouses on business trips. Check to see whether your spouse took someone else a guest.

5. Vacation pay

If your spouse gets four weeks vacation and only takes two weeks off, he or she may be entiitled to two weeks of additional pay.

6. Sick days/personal days

If your spouse doesn’t use personal or sick days, he or she may get paid for the unused days.

7. Stock options

A stock option is the right to buy stock in a company at a reduced rate. If your spouse exercised employee option(s), he or she may be sitting on valuable assets of which you are not aware.

8. Country club and health club

Your spouse’s employer may be paying for these expenses.

9. Loans

A common way divorcing spouses increase debts and look “poor,” is to create a loan with a friend, employer, or family member. The loan may be a sham, which never has to be paid back, but it will be listed as a debt in the divorce.

10. Special arrangements with employer

Look for possible signs that your spouse may have a special arrangement with his or her employer. For example, your spouse’s employer may pay your spouse a percentage of the company’s profits. Also, try to confirm whether your spouse actually owns a percentage of the company and is, therefore, not an employee but an owner or partner who is entitled to additional profits or returns.

Free Consultation with Divorce Lawyer in Utah

If you have a question about divorce law or if you need to start or defend against a divorce case in Utah call Ascent Law at (801) 676-5506. We will fight for you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Difference Between a Divorce and Annulment

Divorce is often used as a generic term for ending a marriage. However, not every marriage that comes to an end is the result of a divorce. Rather than opt for legal separation, countless people throughout Utah have chosen to end their marriage with an annulment. But what is the difference between a divorce and annulment? Because there are many myths about annulments, it is important to discuss them with a divorce lawyer. Let’s take a closer look at some of these differences.

Difference Between a Divorce and Annulment

SEPARATING FACT FROM FICTION

Divorce is the process of terminating and dissolving a legally valid marriage. An annulment erases a marriage by declaring it null and void. Although the marriage is erased, the official records of the marriage are still kept on file. It is also important to understand that religious annulment are not recognized as a legal dissolution of a civil marriage.

IS YOUR MARRIAGE A MISTAKE?

Life doesn’t always go according to plan. There are many people who get married against their will or even without their own knowledge. Annulments are often seen as a “do-over”. It gives people the ability to turn back the clock to when they were single and wipe out the marriage. To receive an annulment in Utah, the marriage must satisfy the following conditions.

  • Misrepresentation and fraud:This happens when one party is misled into marriage. In some cases, a spouse may have lied to their partner or withheld important information. For example, some people are tricked into marriage by another person who is already married. Misrepresentation can also include a person’s inability to produce children.
  • Concealment:Unfortunately, it happens to far too many people in Utah. Many people suddenly discover their spouse has a criminal record or children from another relationship or have a sexually transmitted disease. When this information is kept from one partner, it can be grounds for annulment.
  • Misunderstanding:Many people enter marriage to have children and raise a family. However, some enter marriage under false pretenses. To receive an annulment on these grounds, the level of misunderstanding must be substantial.
  • Incest and impotency:If one party is unable to consummate the marriage, it can be ground for annulment. Any sexual act involving a sibling, grandchildren, first cousins, aunts, and uncles are grounds for annulment.
  • Lack of consent:For any marriage to be legally valid, both parties must have the mental capacity to consent to marriage. If a person enters marriage due to threats or is forced into marriage by drug or alcohol impairment, it can be grounds for an annulment.

WHAT IF YOUR EX SPOUSE ABDUCTS YOUR CHILD?

Child custody is one of the most emotionally charged aspects of divorce. When one parent loses the rights to their children, it can be devastating. In some cases, it can also bring out the worst in people. Once a divorce settlement is finalized, both parties are required to honor to terms of conditions handed down by the court. While most people abide by the laws of Utah family courts, there are others who take the law into their own hands. The results can be disastrous. Among the most serious is child abduction.

WHEN CHILD CUSTODY TURNS INTO KIDNAPPING

We have all seen movies about children being kidnapped and taken for ransom by the bad guys. But what if the bad guy happens to be your former spouse and one of your child’s parents? It can make the situation even more complicated. Police generally do not get involved in family disputes. But when it comes to domestic violence and kidnapping, it is vital to get law enforcement involved as soon as possible. In today’s Digital Age, Amber alerts have become a valuable tool to recover missing and kidnapped children throughout the country. Once a child abduction has been reported and confirmed by police, Amber alerts are immediately transmitted to smartphones and digital devices with an extensive radius of where the abduction took place.

TURNING TO A PRIVATE INVESTIGATOR FOR ASSISTANCE

When a child is abducted, it is important to turn to as many legal resources as possible. Many parents in Utah have chosen to hire a private investigator. Although these services can be expensive, they can also be very effective. Unlike traditional law enforcement, Salt Lake City private investigators are able to devote more time to the needs of their clients.

THE BENEFITS OF RESTRAINING ORDERS

Many child abductions can be prevented by getting a restraining order. If you have an ex-spouse who is abusive, makes threats or is constantly stalking, obtaining a restraining order can be your best defense. With help from an experienced and knowledgeable Salt Lake City divorce attorney, obtaining a restraining order becomes much easier.

INTERNATIONAL CHILD CUSTODY DISPUTES

Perhaps the most complicated child custody matters are those that go beyond our borders. Unfortunately, once a parent abducts a child and flees to another country, the laws become more difficult to enforce. The best case scenarios involve fleeing parents that enter a country that has agreed to an international treaty with the United States. A prominent public official may be able to negotiate the safe return of your child. However, if a child is taken to a country without a treaty, it is the best contact an attorney that specializes in international disputes.

Free Consultation with a West Jordan Divorce Lawyer in Utah

If you have a question about divorce law or if you need to start or defend against a divorce or annulment case in Utah call Ascent Law at (801) 676-5506. We will help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Sunday, 1 July 2018

10 Ways to Reduce Estate Taxes

The Federal estate tax can be reduced through various legitimate estate planning techniques. Following is a list of ten methods you should think about as ways to reduce your estate taxes.

10 Ways to Reduce Estate Taxes

  1. MARITAL TRANSFERS. Except where a spouse is a noncitizen, neither lifetime gifts nor bequests at death to one’s spouse are subject to estate taxes. However, the estate of the spouse will have to pay estate taxes on the spouse’s entire taxable estate, including the amount transferred to the spouse pursuant to the lifetime transfer, at the spouse’s death. Utah probate law allows these transfers and they are completely legal. Accordingly, this tool merely defers estate taxes; it does not entirely eliminate them.
  2. LIFETIME GIFTS TO CHILDREN AND GRANDCHILDREN. Each person can make annual gifts of $12,000 to any number of persons, typically children or grandchildren, without incurring a gift tax. If a husband and wife both engage in gifting, they can collectively give away $24,000 per year per recipient without incurring a gift tax. Over a period of several years the amount of money that can be transferred to a couple’s intended beneficiaries under this method is substantial, thereby reducing the size of the taxable estate.
  3. UNIFORM TRANSFER TO MINORS. This is a form of gifting used where the children are still minors. The gift is given to a custodian for the benefit of the child, and is distributed to the child when he/she reaches the age of majority. As with other gifts, the annual exclusion for lifetime gifts is used under this approach.
  4. AB TRUSTS AND QTIP TRUSTS. For 2006 through 2008, each person is currently scheduled to have the first $2 million of his/her estate pass to his/her heirs without estate taxes. This is referred to as the “unified credit” or “personal exemption.” An AB Trust is a trust designed to make sure the unified credit of each spouse is used to the full extent possible, while allowing the surviving spouse to have the use of the assets of the deceased spouse during the remainder of the surviving spouse’s lifetime. A QTIP Trust permits a spouse to transfer assets to his/her trust while still maintaining control over the ultimate disposition of those assets at the spouse’s death. QTIP Trusts are particularly popular in situations where a person is married for a second time but has children from a first marriage for whom he/she would like to reserve assets.
  5. IRREVOCABLE LIFE INSURANCE TRUSTS. By transferring small amounts of the estate (equal to the amount of a life insurance premium) to an irrevocable life insurance trust, a person can reduce the size of his or her taxable estate while creating a much larger asset (the life insurance proceeds) outside of the estate. The life insurance proceeds are generally not taxable.
  6. FAMILY LIMITED PARTNERSHIP. The family limited partnership provides a valuable estate planning tool to assist families in transferring ownership of family-owned closely held businesses to the next generation, and in protecting family assets from creditors. It also permits taxation of partnership income at the children’s lower tax rates. Additional attractive features of the family limited partnership are flexibility and revocability.
  7. PRIVATE ANNUITY. A private annuity is a sale of an asset to a younger generation in exchange for an unsecured promise to pay annual amounts to the seller for the seller’s lifetime. The sold asset is thus removed from the seller’s estate, although the amounts of the payments to the seller (unless spent) will be part of the seller’s estate.
  8. QUALIFIED FAMILY-OWNED BUSINESS INTEREST (QFOBI). The Internal Revenue Code permits a “qualified family-owned business interest” to be deducted from a gross estate. To qualify for the deduction, the following requirements must be met:
    • The decedent or family members must have owned and participated in the business for at least five of the last eight years
    • The business interest must make up at least 50 percent of the decedent’s adjusted gross estate
    • The decedent and his/her family must have owned 50 percent of the business
    • The decedent must have been a U.S. citizen or resident
    • The business must be located in the U.S.
  9. SPECIAL USE REAL ESTATE VALUATION. For federal estate tax purposes, real estate is usually valued at its “highest and best use” value. This can sometimes produce unfair results, such as where a family farm is located adjacent to more valuable commercial real estate. To address this unfairness, the Internal Revenue Code permits certain real estate to be valued at its “actual use” rather than its “highest and best use.”
  10. CHARITABLE TRANSFERS. Lifetime charitable transfers or gifts to charities upon death can reduce the size of the estate and thereby reduce estate taxes. Lifetime gifts provide the added benefit of an income tax deduction. Gifts can also be made in a manner that lets the donor retain the right to use the gifted asset or income therefrom until death.

Free Consultation with a Utah Estate Lawyer

If you are here, you probably have an estate issue you need help with, call Ascent Law for your free estate law consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Making a Trust

Maybe you’re thinking about how to better manage your property, or you want to make sure your family will be taken care of after you’re gone. If you’re having these thoughts, you might want to think about setting up a trust. A trust is basically a transfer of legal title from the owner (the grantor, trustor, or settlor) to an institution or person (a trustee). The trustee then administers the trust according to the trust terms for the benefit of a beneficiary. There are various factors to consider when setting up a trust. These factors include the size of the estate, the age, and marital status of the grantor.

Making a Trust

In this section you can find helpful tips and information on how to amend an existing trust, how to choose a trustee, and how a trust ends. You can also find articles giving guidance on how to put money and other assets – such as stocks and property – into a living trust, and instances in which setting up a trust may not be necessary.

What is a Trust?

A trust is an estate planning tool that can be used while you’re alive or for the benefit of your heirs. Each state has it’s own laws governing trusts but several states have adopted the Uniform Trust Code, making their laws very similar. There are several types of trusts. Living trusts, AB trusts, charitable trusts are all just a few types of trusts available to people. The type of trust you’ll want to set up will depend on what you would like to achieve with the trust.

Is a Living Trust Necessary?

Living trusts have many benefits but they also have some drawbacks. For example, a living trust involves routine maintenance and is harder to change than a will. In addition, it’s best to use an attorney when setting up a living trust, which can be expensive. These drawbacks can be outweighed by the benefits of a living trust depending on certain factors – such as age, marital status, and estate size.

A person who is under the age of 55 and healthy, probably doesn’t need a living trust because of it takes a decent amount of time and energy to maintain a trust. Marriage can also be a factor when deciding whether or not to set up a living trust. If married couples plan on leaving their property to each other, there are mechanisms in place for an easy transfer of assets after the death of one spouse. Finally, the size of the estate is also a factor in whether it’s a good idea to set up a living trust. Smaller estates generally don’t have a problem going through the probate process, making a living trust unnecessary.

Hiring a Lawyer

A trust can be fairly easy to set up, so a lawyer is not always necessary. However, a person with a large or complex estate or a unique situation may want to consult with an estate planning attorney for help with setting up a trust. Regardless of the size of estate, it might be a good idea to talk to an estate planning attorney if you have questions or concerns about setting up a trust.

Free Consultation with a Trust Lawyer in Utah

If you are here, you probably need a trust. If so, call Ascent Law for your free trust consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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