Trusts: Making The Most Of Your Estate Planning Tools

Trusts are useful for accomplishing specific estate planning goals. There are different types of trusts for different scenarios. Do you need one? How do they work? Is there a downside?

The experienced lawyers of the Law Office of Penniann J. Schumann PLLC can explore the use of trusts in conjunction with your will and other estate planning documents. We have helped people from all walks of life take advantage of the benefits of a customized trust arrangement. Our founding attorney has unique insights as a former trust administrator.

What Is A Trust?

A trust takes assets out of your estate and sets them aside on behalf of someone else. Those assets are managed by a trust administrator (trustee), who could be a family member or a professional administrator. One of the primary benefits is that assets held in trust do not go through the probate process; they pass directly to the beneficiaries without the wait time and expense of probate.

What Are The Purposes Of A Trust?

Unlike a will, not everyone needs a trust. It depends on the size of the estate, the complexity of the assets and your goals. Some of the common types of trusts include:

• Revocable living trust – This moves assets outside your estate but allows you to still access funds or alter the trust during your lifetime.
• Irrevocable trust – This offers the greatest asset protection from creditors, lawsuits and other threats. But once assets are placed in the trust, you no longer own or control them. They are often used in charitable planning, planning to protect money for heirs when you might need Medicaid assistance for long-term care, or planning with life insurance to save on possible estate taxes.
• Special needs trusts – This provides supplemental spending money, travel and quality of life perks for a family member with disabilities while still preserving their eligibility for government benefits such as Medicaid.

This is only a thumbnail of the possibilities. Our lawyers have sophisticated knowledge of the various types of trusts for accomplishing specific purposes.

Answering Your Questions About Trusts In Utah

A trust can be an effective way to manage assets, protect beneficiaries and streamline the transfer of property. Below, we address issues Utah residents often raise when deciding if and how a trust fits into their long‑term plans.

What does a trustee do, and who is permitted to serve in that position?

The trustee is responsible for carrying out the instructions in the trust, managing trust property and acting in the best interests of the beneficiaries. This involves tasks such as safeguarding assets, keeping accurate records, making distributions according to the trust terms and making certain all actions comply with state law.

Utah allows a range of individuals or entities to serve as a trustee. Examples include a trusted family member, a close friend or a professional fiduciary such as a corporate trustee. A crucial consideration is that the trustee is reliable, organized and capable of handling financial and administrative duties with care.

After I create a trust, am I able to modify its terms or cancel it entirely?

Your ability to change or revoke a trust depends on the type of trust you establish. A revocable living trust allows you to amend its terms, add or remove assets, update beneficiaries or dissolve the trust altogether as long as you are alive and have legal capacity. This flexibility is one reason revocable trusts are widely used for estate planning in Utah. 

In contrast, an irrevocable trust generally cannot be altered once it is signed, because its purpose is to remove assets from your control for tax, asset protection or long‑term planning reasons. Understanding this distinction helps you choose the structure that best aligns with your goals.

If I set up an irrevocable trust, is it possible to reverse the decision later?

An irrevocable trust is designed to be permanent, and Utah law typically does not allow the creator to take back assets or rewrite the trust once it is executed. However, limited exceptions may apply in specific circumstances. 

For example, beneficiaries may sometimes agree to modify certain terms, or a court may approve changes when the original provisions no longer serve the trust’s purpose. Such situations are rare and require careful legal analysis. In most cases, it is safe to assume that an irrevocable trust will remain in place exactly as written.

Decades Of Experience In Trust Planning And Trust Management

Penniann Schumann formerly worked as a trust officer for a national bank, administering trust assets on behalf of the states of Utah and Idaho. That perspective helps ensure that trust language is properly drafted and gives clear guidance to the trustee. We also follow up to assist grantors and trustees with properly funding the trusts and complying with accounting and reporting requirements.

To discuss how trusts can fit into your estate plan, call our law firm at 801-839-4891 or contact us online to arrange a consultation. We serve the Salt Lake City area and Summit County.