Can a layperson (a non-attorney) create a trust?

Can a layperson (a non-attorney) create a trust?


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Madison Smith
Assistant at Parklin Law

A layperson can not really create a trust—the purpose of a trust is to hold assets, and in order to do that, you need to be the owner of said assets. Only an attorney or appointed trustee can actually create a trust.

The purpose of a trust is to keep the end-beneficiary (usually an heir) from having to pay tax on the property when it comes into their possession. It is also used to limit the distribution of funds, so that there is a more specific plan for how the money will be distributed, and so that there are fewer hands in the cookie jar—therefore spending less money overall for taxes.

The trust itself is written by an attorney, but then it has to be signed off by another person, who becomes the trustee. The trustee manages the trust and keeps track of its distributions. If you have a lot of assets (either liquid or not), you may want to look into this option. A lawyer who deals with these kinds of things may be able to help you decide if this would work for you, and what kind of trust would best suit your needs.

A trust is a legal entity that can hold assets (such as cash or property) for the benefit of another (such as a family member). Trusts can be very useful, but they're generally reserved for high-net-worth individuals who have assets worth more than $150,000. However, everyone has access to certain types of trusts, like living trusts and healthcare directives. The difference is that in a non-legal trust, the creator of the trust (the person who will manage its assets during his or her lifetime) is not the same person as the beneficiary of the trust (the person who will receive the assets once the creator dies). Neither is an attorney involved in creating it. So in that sense it's possible for a layperson to create a non-legal trust for his or her own purposes.

If you have any questions or in need a Trust Attorney, we have the Best Attorneys in Utah. Please call this law firm for free consultation.

We help you with Estate Planning, Wills, Trusts, Power of Attorney, Health Care Directive, Estate Administration, Probate and More

Parklin Law - Estate Planning

5772 W 8030 S, # N206

West Jordan UT 84081

(801) 618-0699

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Parklin Law
Estate Planning Attorney in West Jordan
https://parkin-law.business.site/

40.605070, -112.027530

Disclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.

Location: Farmington, UT, USA

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