When a loved one w, it is nt nl a difficult and mtinl tim, but l a tim whn mn utin ri to distribution of that lvd ones assets. Th rimr utin that i kd mt ftn i: D tht rn Will have t be rbtd? If th ddnt hd assets in hi/hr own nm withut a bnfiir designation, then in order to ditribut th assets, hi/hr Will must b admitted t rbt.
Probate is th lgl process whrb th person nmd r nmintd Exutr undr the decedents Will must titin th unt Surrgt Court in order for th Curt to vlidt the Will nd giv formal lgl uthrit (Lttr Testamentary) t the nominated Exutr t dminitr th estate. If th ddnt did nt have a Will, thn a fmil member must mmn n Administration proceeding in th Cunt Surrgt Curt in rdr to b appointed Administrator of th ddnt estate. In Utah, the Administrator is called a “personal representative” of the Estate.
Fr lint wh hv rtd nd fundd Rvbl nd Irrvbl Trut, upon thir dmi, thir fmili will nt hv t mmn a probate r administration proceeding t ditribut th assets f th Trut in rdn with th Trust rviin. Rthr, th ditributin n b dn withut Curt intrvntin by th successor Trut() named in th Trut dumnt. However, th successor Trustee(s), still has imilr Fiduciary rnibiliti n Executor or Administrator h.
It is nt unmmn fr l t b nfud but th lgl definition f a trut nd how it wrk within the legal tm. A trust refers t property given t a trustee t mng for th benefit f nthr rn, wh i dild within th documents of th official lgl r. In most the bnfiir riv intrt and dividnd n th trut t fr a rdtrmind munt of tim, and thi is uull fr a numbr f years. Under th conditions f a trut, an agreement is made where one person trnfr th title th hld to a ifi property to another rn wh gr t mng it for a third rt. This i a beneficial process as the party wh h trnfrrd the title (th bnfiir) tnd to greatly benefit frm hving nthr person oversee it fr thm.
An individul m ntrl the ditributin f their rrt by tblihing trm nd conditions within a written trut. Thi can thn be ud while th r living r ftr thir death. Thr r mn different t of trut, whih hv different ur nd funtin. A trut m b intndd fr th benefit f the rn wh created the trust, r it can be for their urviving u r minr children, r fr a hrit. Hwvr, n trut that are created with th intntin f vding rditr or thr lawful obligations will b vidd b th courts. In gnrl, trut are rtd during a person’s lif in ntiitin f thir death. This n b dn early n in lif r later in lif, and mdifitin n b made tim proceeds as lng a ulifid real tt lwr in involved t help. Trusts are th perfect w t nur that th ln you hv for ur assets – mn, rrt, t. – r ufull carried out n u hv d nd n n lngr t it tht they r fllwd through in th w u riginll dird.
The individul wh rt a trut i the settlor, whr th person wh mng th rrt fr nthr rn’ bnfit i lld th trut. It i th bnfiir who benefits frm th trust, not th trut. A trut has a duty t t in gd fith with trit honesty in rgrd t dminitring th trust nd serving th intrt f th bnfiiri of the trust. A brh of th trut’ dut, knwn as a fiduciary dut, can result in ngtiv rmifitin inluding a court tin nd vn riminl hrg. Thrfr, it is vr important that a lgl professional is involved in the r in rdr t nur tht n unintntinl breaches r md whih uld wrk hv down th line.
Whn u hv grd t be a trut, u are assuming a lrg rnibilit tht you mut rr ut in full rdn with th law. An attorney n help u in more w than one b nuring tht u follow all rr rtl so u adhere t the lw. Furthrmr, if u do nuntr an IRS invtigtin, r if you r tkn to urt by n f the bnfiiri, n attorney n protect your rights in a lawsuit. A a trustee you have many duties that inlud: keeping all fund in a rt trut account, you mut avoid nflit f intrt, u mut manage th fund b mking sure they gt some kind f finnil return whil avoiding high-rik invtmnt, u mut mintin xllnt records, u are ruird t th taxes on any trut inm, and u r ruird to tk vr good care f the bnfiiri nd nt vilt the trust instructions in rgrd t thm.
Whnvr u r uming a great legal responsibility it i in your best intrt to nult with an attorney. This i especially true whn it m to matters f tt lnning nd trut dminitrtin. In th intn, you will be xtd t vr the assets tht r hld within a trust, nd as uh, u will ntill be tking on th same responsibilities as a legal rrt wnr. In ft, this is a type of wnrhi, ithr of personal rrt or rl tt rrt; th difference i tht it is n wnrhi that i bing split btwn th trustee nd th rn who ntrutd thir belongings t thm. It i therefore u to th trut administrator t vr th trust, including the distribution of assets, t. dirtd b th rtr of the riginl trust. Bu thi is a mlitd r nd n tht i highl rnl in ntur, it i one tht mut b hndld with th utmt care nd ttntin. Thrfr, taking measure to ensure tht u act undr th lgl guidn of a rfinl rl estate ttrn uld make a wrld f difference in hw your l ut. Ett planning attorney n rvid u with invlubl counsel int your legal bligtin nd rnibiliti rtining t trut administration. Th n also tell you wht t you can take to vid mking any tl lgl mitk during your appointment as a trustee.
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