Estate Planning For Young Families

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One of the most critical reasons why we guide parents with minor children toward a living trust is to help them bypass the stressful and expensive process of probate. For reference, a will is a letter to the probate court judge. Therefore, in Utah, if you only have a will, your estate will almost certainly go through probate court. While Utah’s probate system can be more streamlined than in some other states, it still involves court fees, attorney fees, and can drag on for many months, sometimes over a year.

More importantly, if you pass away without a trust, and your minor children inherit assets directly, the probate court will likely appoint a conservator to manage those assets until your children turn 18. This court-supervised conservatorship is incredibly burdensome, lacks flexibility, and incurs additional, ongoing costs. A judge, a stranger to your family, will oversee how your children’s inheritance is used, potentially requiring court approval for even basic expenses.

With a properly funded living trust, we can help you ensure your estate bypasses probate entirely. Your chosen successor trustee can immediately access and manage assets for your children’s benefit, without any court oversight. This means their needs are met without delay or unnecessary expense, and their financial affairs remain private, unlike public probate records.

Minor children simply can’t legally own or manage substantial assets. A living trust empowers you to dictate exactly how and when your children will receive their inheritance. Instead of a large, potentially overwhelming lump sum at age 18 (which many young adults aren’t ready to handle), you can set up staggered distributions at various milestones you deem appropriate. For example you could designate a portion at 21 for college, another at 25 for a down payment, and the remainder at 30.

Customization is our specialty.  We will work with you to include specific instructions for how funds should be used—whether it’s for your children’s education, healthcare, or home ownership. You can also specify when funds are not be given directly to a child such as in the event of a child’s bankruptcy, disability, or in the case of a child struggling with addiction.  We can also build in provisions for children with special needs, ensuring their care without jeopardizing crucial government benefits.

Your foresight  now can protect your children from potentially mismanaging their inheritance and ensures the funds genuinely support their long-term well-being and development, in a way that reflects your values.

While your will is typically where you nominate legal guardians for your minor children, a living trust complements this vital decision by ensuring those guardians have immediate access to funds to care for your children. Without a trust, even if you’ve named guardians in your will, those funds could be tied up in probate, leaving your chosen caregivers to cover expenses out of their own pockets during an already incredibly stressful time. A trust provides the necessary liquidity, eliminating financial strain on those stepping in to raise your children. At the same time, the trust adds another essential pair of eyes on your finances by separating the money from the guardian. The Utah living trust plan gives you the flexibility to appoint one person to raise the kids and another to coordinate the funds used to support them. This creates a check and balance that ensures your money will be spent according to your wishes.

A living trust isn’t just about what happens after you’re gone. It’s a critical tool for incapacity planning. If you become unable to manage your affairs due to illness or an accident, without a living trust, your family might be forced into court to establish a conservatorship (for your financial affairs) and/or a guardianship (for your personal care). This process is emotionally draining, expensive, and public.

With a living trust, your designated successor trustee can seamlessly step in to manage your assets and finances on your behalf, ensuring your children’s needs are met without any court intervention. This provides immense peace of mind, knowing that your financial well-being and your children’s stability are secure, even if you can’t manage them yourself.

Probate is a public process; your will and the details of your estate become public record. A living trust, however, is a private document. This privacy is a significant advantage, especially for families who prefer to keep their financial affairs confidential. It also helps prevent potential disputes among family members by clearly outlining your wishes and distributing assets outside of public scrutiny.

Estate planning is not just for the wealthy. It is for anyone who wants clarity, control, and peace of mind about their future and their legacy. Whether you are creating a will, naming a guardian, or setting up a trust, every decision you make provides security for your loved ones and confidence for yourself.