With so many options available for estate and future planning, it can be easy to feel overwhelmed. Working with a trusted estate expert who knows about the state of Utah’s legal requirements can help you to find peace of mind knowing your affairs are in order.
Today, we’re exploring the differences between a testamentary trust and regular, living trust. We’ll also be exploring the benefits of a testamentary trust and how you can arrange a one to organize your affairs in the event of your passing.
Read on to learn more about what a testamentary trust is and how it can help you to manage your assets in the state of Utah.
What is a testamentary trust?
A testamentary trust is a separate legal entity that manages one’s assets in alignment with his or her preferences, which are outlined in the will. It also is known by several other names, such as a trust under will, or a “will trust,” more casually.
What’s the difference between a living trust and a testamentary trust?
A living trust continues to manage the assets once it’s created by the grantor and lasts for the duration of their lifetime. Once the person who created the trust (a.k.a. the grantor) dies, the trust may either be passed to another original trust grantor or it will function as an irrevocable trust. At this point, the trustee of the trust will begin working to distribute the outlined assets, in accordance with the preferences outlined in the paperwork. Using a living trust to house your assets can be less emotionally taxing on trustees and family members, as you generally can avoid the heartache and effort that goes into an otherwise lengthy court process.
A testamentary trust is a type of legal entity that is created in the person’s will and will not be in play until the passing of the grantor. Legal professionals can help you to set up a legally binding testamentary trust if you’d like to avoid the fees and other disadvantages that can come from unmanaged assets.
What are the benefits of a testamentary trust?
There are several benefits to pursuing a testamentary trust. Most notably, many are able to avoid or minimize the occurrence of estate tax liabilities, while protecting their interests and the dispersal process. It also can work actively to protect the assets in your trust from posthumous creditor inquiries and to ensure that the inheritance is protected even if the grantor was in debt.
It’s also helpful to have in place in case of a divorce, protecting certain assets from division in family court. The same benefit can be applied to any sort of division via remarriage and preservation of assets for a beneficiary who may have been a victim of a divorce split: such as children with your divorced spouse.
In many situations, testamentary trusts can help you to avoid excessive capital gains taxes, as well as protections in the case of recurring payments through stipends or programs (i.e. pensions) – but this depends on your unique situation. Your attorney can help you to work through any relevant laws that would apply in the state of Utah and determine if a testamentary trust is a right step for you.
What are the disadvantages to using a testamentary trust?
There is no “perfect” solution to your future asset planning process, but it’s important to be aware of both the benefits and disadvantages to each option that you consider.
With testamentary trusts, you may run into additional costs and fees when it comes to administrating the trust. Items such as administrative fees, accountancy fees and other types of costs associated with testamentary trusts should be accounted for before you make your final future planning decisions. Speaking to your family’s wealth advisor, accountant or attorney can help you to determine if a testamentary trust is right for you.
How can you arrange a testamentary trust?
If you’re looking to arrange a testamentary trust for your asset management in the event of your passing, there are a few key steps that you need to take.
Speaking with a lawyer that handles future planning in the state of Utah is the first step if you’re considering opening a testamentary trust. They will help you to designate your trustee and any beneficiaries that you may want to be listed. They’ll also help you with the document dictating the transfer process of any assets you would like housed in the trust, as well as the distribution process that will occur once the grantors pass away.
Ascent Law is here to help with future planning in Utah
If you’re considering making your arrangements, the experts at Ascent Law are here to help. Our team has years of experience creating custom future planning solutions for complex and extensive asset libraries. For more information and to book your free intro call today, please visit our website. We look forward to connecting with you soon!
Salt Lake City
Salt Lake City, Utah
|City of Salt Lake City|
“The Crossroads of the West”
|Named for||Great Salt Lake|
|• Type||Strong Mayor–council|
|• Mayor||Erin Mendenhall (D)|
|• City||110.81 sq mi (286.99 km2)|
|• Land||110.34 sq mi (285.77 km2)|
|• Water||0.47 sq mi (1.22 km2)|
||4,327 ft (1,288 m)|
|• Rank||122nd in the United States
1st in Utah
|• Density||1,797.52/sq mi (701.84/km2)|
| • Urban
||1,021,243 (US: 42nd)|
| • Metro
||1,257,936 (US: 47th)|
| • CSA
||2,606,548 (US: 22nd)|
|Time zone||UTC−7 (Mountain)|
|• Summer (DST)||UTC−6|
|Area codes||801, 385|
|GNIS feature ID||1454997|
|Major airport||Salt Lake City International Airport|
|Website||Salt Lake City Government|
Salt Lake City (often shortened to Salt Lake and abbreviated as SLC) is the capital and most populous city of Utah, as well as the seat of Salt Lake County, the most populous county in Utah. With a population of 199,723 in 2020, the city is the core of the Salt Lake City metropolitan area, which had a population of 1,257,936 at the 2020 census. Salt Lake City is further situated within a larger metropolis known as the Salt Lake City–Ogden–Provo Combined Statistical Area, a corridor of contiguous urban and suburban development stretched along a 120-mile (190 km) segment of the Wasatch Front, comprising a population of 2,606,548 (as of 2018 estimates), making it the 22nd largest in the nation. It is also the central core of the larger of only two major urban areas located within the Great Basin (the other being Reno, Nevada).
Salt Lake City was founded July 24, 1847, by early pioneer settlers, led by Brigham Young, who were seeking to escape persecution they had experienced while living farther east. The Mormon pioneers, as they would come to be known, entered a semi-arid valley and immediately began planning and building an extensive irrigation network which could feed the population and foster future growth. Salt Lake City’s street grid system is based on a standard compass grid plan, with the southeast corner of Temple Square (the area containing the Salt Lake Temple in downtown Salt Lake City) serving as the origin of the Salt Lake meridian. Owing to its proximity to the Great Salt Lake, the city was originally named Great Salt Lake City. In 1868, the word “Great” was dropped from the city’s name.
Immigration of international members of The Church of Jesus Christ of Latter-day Saints, mining booms, and the construction of the first transcontinental railroad initially brought economic growth, and the city was nicknamed “The Crossroads of the West”. It was traversed by the Lincoln Highway, the first transcontinental highway, in 1913. Two major cross-country freeways, I-15 and I-80, now intersect in the city. The city also has a belt route, I-215.
Salt Lake City has developed a strong tourist industry based primarily on skiing and outdoor recreation. It hosted the 2002 Winter Olympics. It is known for its politically progressive and diverse culture, which stands at contrast with the rest of the state’s conservative leanings. It is home to a significant LGBT community and hosts the annual Utah Pride Festival. It is the industrial banking center of the United States. Salt Lake City and the surrounding area are also the location of several institutions of higher education including the state’s flagship research school, the University of Utah. Sustained drought in Utah has more recently strained Salt Lake City’s water security and caused the Great Salt Lake level drop to record low levels, and impacting the state’s economy, of which the Wasatch Front area anchored by Salt Lake City constitutes 80%.
About Salt Lake City, Utah
Neighborhoods in Salt Lake City, Utah
Poplar Grove, The Avenues, Ballpark, Lower Avenues, Downtown, Woodbury, Central City, Neighborhood House, Salt Lake City Community Development, Rio Grande, The Neighborhood Hive, Neighborhood Services, University Neighborhood Partners, Salt Lake City, Neighborhood Auto Service, Sunnyside Park, Building at Rear, 537 West 200 South, Washington Square Park, Area 51, Brigham Young Historic Park
Things To Do in Salt Lake City, Utah
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Reviews for Ascent Law LLC Salt Lake City, Utah
We've gotten divorce and child custody work from Ascent Law since the beginning because of my ex. We love this divorce firm! Staff is gentle, friendly and skilled. Tanya knows her stuff. Nicole is good and Ryan is fun. Really, all the staff here are careful, kind and flexible. They always answer all my questions, explain what they're doing and provide great legal services. I personally think they are the best for divorce in Utah.
I have had an excellent experience with Ascent Law, Michael Reed is an absolutely incredible attorney. He is 100% honest and straight forward through the entire legal process of things, he also has a wonderful approach to helping better understand certain agreements, rights, and legal standing of matters, to where it was easy to know whats going on the entire process. I appreciate the competency, genuine effort put forth, and assistance I received from Ascent and attorney Michael Reed, and I will be calling these guys if ever I have the need again for their legal assistance! 5star review Wonderful attorneys!
This review is well deserved for Ryan and Josh. New clients should know they are worth the 5 star rating we give them. We needed 2 sessions from them because of the complexity of the matter, but they are both very passionate about his helping others in need. My sister needed bankruptcy and I needed divorce. Sometimes they go hand in hand but a large shout out to this team - also Nicole is one of the sweetest people you ever did meet - she offered me warm cookies!
Mike Anderson and his colleagues & staff are knowledgeable, attentive and caring. In a difficult and complex case that eventually went to trial, Mike was the voice of reason and the confidence I needed. His courtroom abilities are amazing and I felt his defense of me was incredible. His quick thinking and expertise allowed for a positive result when I felt the World was crumbling. His compassion, after the case, has helped me return to a good life. I trust Mike and his staff. They are friendly and very good at what they do.
I worked with Attorney Alex and Paralegal Ami in my divorce case. I got to know the team very well over the course of two years. I cannot think of a better team to have worked with. Ami and Alex are not only exceptional law professions who are very knowledgeable and thorough, they are also the best human beings who empathize with the emotions I was experiencing. Alex was conscious of my budget and worked efficiently to try to reduce unnecessary legal expenses. My case also involved some dealings with a foreign country that Alex and his team had previously dealt with. They did an amazing job addressing cultural barriers in a very respectful manner and did not fall short in quality of work or in standards when dealing with some of these new challenges. Ami deserves a medal for being extremely professional, calming, and compassionate when it is needed most. When you need family law attorneys, call this firm. I now feel I can move forward with grace and dignity.