Couples with taxable estates in Utah should consider Disclaimer Trusts as a way to reduce their estate tax liability and provide flexibility for their surviving spouse and beneficiaries.
A Disclaimer Trust is a trust that is created in a will or living trust, and it is funded only if the surviving spouse chooses to disclaim a portion of the estate. By disclaiming, the surviving spouse chooses to forego their right to receive a portion of the estate and instead, directs the assets into the Disclaimer Trust.
Here are some reasons why couples with taxable estates in Utah should consider using Disclaimer Trusts:
- Estate Tax Savings: A Disclaimer Trust can be an effective way to reduce the estate tax liability for the couple. By disclaiming a portion of the estate, the surviving spouse can direct assets into the trust, which can reduce the value of their estate subject to estate tax.
- Flexibility for the Surviving Spouse: A Disclaimer Trust can provide flexibility for the surviving spouse to decide how to allocate the assets in the trust. The surviving spouse can choose to receive income from the trust, and may also have access to the principal of the trust in certain circumstances.
- Protection for Beneficiaries: A Disclaimer Trust can provide protection for the beneficiaries named in the trust. By directing assets into the trust, the assets are shielded from the claims of creditors, lawsuits, and other potential risks.
- Privacy: A Disclaimer Trust can provide privacy for the family. The assets in the trust are not part of the probate process and are not made public, which can help protect the family’s privacy.
In conclusion, couples with taxable estates in Utah should consider using Disclaimer Trusts as a way to reduce their estate tax liability and provide flexibility for their surviving spouse and beneficiaries. It is important to work with an experienced estate planning attorney to determine if a Disclaimer Trust is the right choice for your unique situation.
