WILLS & TRUSTS

David K. Lauritzen, P.C. provides full service legal assistance in estate-related matters, from basic powers of attorney to comprehensive estate planning for businesses and families.

The following is a brief explanation of how the law works in the state of Utah with specific emphasis on the distribution of assets when an individual dies.

Wills:

A will is a letter of instruction to the Judge stating where you want your assets to go upon your death. It can be a formal will drawn up by an attorney and witnessed by two non-interested parties; it can be handwritten, which is called a holographic will, which should also be witnessed by two non-interested parties. In either case, a will should state the name of the person(s) who will be court appointed by a Judge to serve as Personal Representative or Administrator of your assets. A will should contain your wishes as to distribution of your property, both real and personal. A probate proceeding will be necessary to effectuate the distribution of your estate; this can take from three months to several years.

Intestate Succession:

Utah’s laws of Intestate Succession are your “default” estate plan. It’s the law that dictates who gets what when someone dies without a will or trust. Here are a few examples of how it works:

Decedent is single with no children, in order of priority:

Parents, divide the estate in equal shares;
Brothers and sister, divide the estate in equal shares; if a sibling dies first, leaving children, then the children of the deceased will take the sibling’s share;
Grandparents or their issue (aunts, uncles, cousins, etc.), divide the estate in equal shares;
The Court appoints a Personal Representative over the estate;
Mediation can assist in the negotiation of a Personal Representative and the distribution of assets.

Decedent is married with no children:

Spouse gets all properties, unless otherwise provided.

Decedent is married with children:

Spouse gets all properties, unless otherwise provided.

The intestate laws of the State of Utah are designed to pass your assets to your family. If you have no family living to inherit your property, then your estate will be turned over to the State of Utah.

Joint Tenancy, Life Tenancy and Beneficiary Designations:

These options, although easy to initiate, can create disasters upon death. Any accounts you hold in joint tenancy will go to the living tenant. However, if both the joint tenants die together, then the account is subject to the probate process. Life tenancy is allowing someone else to enjoy an asset of yours during THEIR lifetime; this asset too will be subject to the probate process. If the account designates a beneficiary, whoever is designated will get the money upon your death.

One drawback to the “quick and easy” estate plan is the distribution of your real estate. If you die and your name is alone on the deed, the property will go through the probate proceeding. If you choose to put someone else’s name on your property with you and this person is sued, then your property becomes subject to the satisfaction of the lawsuit.

Trusts:

There are numerous types of trusts available. A customized trust package, taking into consideration all of the pertinent information for each client can be evaluated at an initial consultation. Trusts can be very helpful and actually essential in transferring assets to beneficiaries without tax consequences and without probate. The following is a list of trusts most commonly used. There are many other trusts available to clients.

Family Living Trusts/Inter Vivos Trusts

Revocable Trusts

Charitable Remainder Trusts:

Irrevocable Insurance Trusts:

Corporations, Limited Liability Companies, Limited Partnerships, Etc.