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(EMAILWIRE.COM, March 25, 2011 ) South Jordan, Utah – According to Utah estate planning lawyer Randall Sparks, estate planning is not just for the wealthy. Everyone should have an estate plan in place, even if they don’t have considerable financial wealth. Some even suggest that a modest estate has a greater need for careful planning to ensure that your resources are better preserved. Certainly large estates have need for estate planning. While there are certainly many financial benefits to estate planning, there are also many important aspects of estate planning aside from wealth preservation, transfer of wealth, or tax savings. Your individual situation will dictate the level of sophistication necessary.
A huge percentage of Americans donÂ’t have even the most basic estate planning documents, such as a will to direct disposition of their assets, or a living will, medical power of attorney, or healthcare directive to protect them if they are incapacitated. According to a survey conducted by Harris Interactive and reported by Forbes, 65% of Americans donÂ’t have a will. Even fewer Americans have living wills in place. Those with children, regardless of their financial situation, should have guardianship documents nominating guardians for minor children should something happen to the parents. Most of the respondents mistakenly believed that those without large assets didn't need to plan.
The client preferred method of estate planning is through the use of Revocable Trusts, sometimes referred to as Living Trusts. Planning with Revocable Trusts is a comprehensive approach with many benefits. Some of the key benefits of trust based estate planning include control of your property while you're alive; the ability to pass your property to whom you want, how you want, when you want; and considerable tax saving potential. Other benefits include the following: cost savings; preserving a legacy (encourage family values); avoiding the stress, cost, time, and publicity of probate proceedings; and avoiding guardianship proceedings in the event of incapacity. Additionally, revocable trusts are flexible and easily amended, and are not public records as a will would be in probate. They also centralize preservation and distribution of assets, reduce the risk of contests and conflicts and provide potential creditor protection for heirs.
The first step in creating a revocable trust is to meet with an estate planning attorney to create the trust document, which functions like a bucket. You nominate yourself as trustee of the trust. The trusteeÂ’s responsibility is to hold the bucket and take care of what it holds inside. You also nominate a successor trustee(s) in the event of your death or incapacity. You create rules outlining how, when, and to whom property in the trust is distributed.
The next step is to fill the Bucket. Before the trust can function properly, you must fill it. We call this “funding the trust.” Trust funding is accomplished by transferring title of assets such as your home or investment accounts to the trust, or by designating the trust as a beneficiary of life insurance policies. Your estate planning attorney will advise you how to properly fund the trust.
During your lifetime you maintain control over the bucket and the assets inside. You may continue using the assets inside as you had prior to the creation of the trust. ItÂ’s business as usual. You manage the assets according to your desires. You can amend or revoke the trust at any time.
Upon your death, the trust becomes irrevocable. Your pre-designated successor trustee takes control of the bucket and distributes the assets inside to whom you want, how you want, when you want. The assets in the trust pass easily without the stress, time, and cost of probate.
Randall Sparks JD, LL.M., a Utah estate planning attorney at Randall Sparks Law, P.C. has a specialized practice focused on the estate planning needs of those of modest wealth as well as those with considerable wealth. Every individual situation requires estate planning specifically tailored to those individual needs. Common planning techniques include wills, pour-over wills, living wills, medical powers of attorney, advanced healthcare directives, financial powers of attorney and revocable trusts, also referred to as living trusts.
Randall Sparks Law, P.C. also provides more advanced planning techniques where appropriate. More advanced estate planning techniques may include the use of irrevocable life insurance trusts (ILITÂ’s), domestic asset protection trusts or intentionally defective grantor trusts (DAPTÂ’s or IDGTÂ’s), special needs trusts, special power of appointment trusts, and business planning, including business formation and the use of limited liability companies, corporations, and buy-sell agreements. Contact Randall Sparks Law, P.C. at 877-404-6767 or visit www.randallsparkslaw.com.
Randall Sparks Law, P.C. is dedicated to providing Utah clients with the unique planning they need based on their individual situation. Some clients need very simple plans while others require more sophisticated planning. Regardless of your situation, Randall Sparks Law, P.C. ensures that you receive professional estate planning advice and service. Let Randall Sparks Law, P.C. lift the weight off your shoulders so you can carry more important things.
This press release is for informational purposes only and does not constitute legal advice. Please contact Randall Sparks Law, P.C. at 877-404-6767 to discuss your estate planning needs or visit www.randallsparkslaw.com.
Attorney Randall Sparks is a member of the national attorney network on LawyerCentral.com.
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