Utah Estate Plans

More Sample Plan Information

Single person without children
Single person with children
Married couple with minor children
Married couple with adult children
Second marriage with children from prior marriage
Married couple with a taxable estate

        The sample estate plans that follow include information not found on the home page for Utah Estate Plans, such as who serves as trustee and successor trustee, how the trusts are funded, and how to change the beneficiary designation on life insurance so that it is consistent with the estate plan.

        In these sample plans, it is assumed that the person or persons planning their estate have signed, in addition to any documents mentioned in the sample plan, a Financial Power of Attorney, a Medical Power of Attorney, and a Directive to Physicians and Providers of Medical Services (also known as a "Living Will").

        Also, because these plans are just examples, they are for the purpose of illustration only, they may not fit a person's particular circumstances, and they are not intended to substitute for legal, tax, or other professional advice. In preparing your own estate plan, you should not rely solely on these sample plans but should instead seek the services of a competent estate planning professional.

Sample estate plan for a single person without children

(click for detailed diagram)
Steven Single has no children. He creates a Pourover Will and a Revocable Trust. The trust names him as the initial trustee and beneficiary, names his brother Bob and his sister Sylvia as the final trust beneficiaries, and names Sylvia (an accountant) as the successor trustee. He funds his trust with his valuable property, such as his condominium, his stock brokerage account, etc. His trust gives him the following lifetime benefits:

As the initial trustee, he maintains complete control of the trust property
His trust is private
No change occurs in his income tax reporting
If he were to become incapacitated, his sister Sylvia (as successor trustee) would manage the trust property for him

If Steven were to die, his Pourover Will would send any previously unfunded property to his trust. Steven designed his trust so that one-half of his trust property would be distributed directly to Sylvia, and the other half would be held in trust for Bob, who needs help managing his finances.

Consistent with this design, in the beneficiary designations of his life insurance policies, Steven would name his trust as the primary beneficiary, so that the death benefits would be paid to the trustee and Bob's one-half share of those death benefits would also be held in trust for his benefit.
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Sample estate plan for a single person with children

(click for detailed diagram)
Sarah Single has two children, Sam and Samantha. She creates a Pourover Will and a Revocable Trust. The trust names her as the initial trustee and beneficiary, names her children as the final trust beneficiaries, and names her brother Brad as the successor trustee. She funds her trust with her valuable property, such as her home, her investment real estate, etc. Her trust gives her the following lifetime benefits:

As the initial trustee, she maintains complete control of the trust property
Her trust is private
No change occurs in her income tax reporting
If she were to become incapacitated, her brother Brad (as successor trustee) would manage the trust property for her

If Sarah were to die, her Pourover Will would send any previously unfunded property to her trust. Depending on how she designed her trust, her trust property would either be distributed directly to her children, or would be held in trust for their benefit to provide continued financial management.

In the beneficiary designations of her life insurance policies, Sarah could either name her children as primary beneficiaries (so that the death benefits would be paid directly to them), or could name the trust as primary beneficiary (so that the death benefits would be paid to the trustee and would be distributed to her children according to the trust).
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Sample estate plan for a married couple with minor children

(click for detailed diagram)
This plan assumes that the couple's estate is not subject to estate tax. Husband and wife create Pourover Wills and a Joint Revocable Trust. The trust names them as the initial trustees and beneficiaries, names their children as the final beneficiaries, and names a successor trustee. They fund their trust with their valuable property, such as their home, investment assets, etc. Their trust gives them the following lifetime benefits:

As the initial trustees, they maintain complete control of the trust property
Their trust is private
No change occurs in their income tax reporting
If either spouse were to become incapacitated, the other spouse or the successor trustee would manage their finances for them

At the death of the first spouse to die, the trust continues for the benefit of the surviving spouse. At the death of the second spouse, that spouse's Pourover Will nominates guardians for the minor children and sends any previously unfunded property to the trust. The trust property is held in trust for the children's support until they reach a given age. Then, depending on how the couple designed their trust, the trust property is either distributed directly to the children, or is held in trust for their benefit to provide continued financial management.

If either spouse has life insurance on his or her life, the other spouse would be named as the primary beneficiary of that insurance and the trust would be named as the secondary beneficiary, so that if the insured spouse is the second to die, the death benefits from that spouse's life insurance would be paid to the trustee and distributed according to the trust.
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Sample estate plan for a married couple with adult children

As the initial trustees, they maintain complete control of the trust property
Their trust is private
No change occurs in their income tax reporting
If either spouse were to become incapacitated, the other spouse or the successor trustee would manage their finances for them

At the death of the first spouse to die, the trust continues for the benefit of the surviving spouse. At the death of the second spouse, that spouse's Pourover Will sends any previously unfunded property to the trust. Depending on how the couple designed their trust, the trust property either is distributed directly to the adult children, or is held in trust for their benefit to provide continued financial management.

If either spouse has life insurance on his or her life, the other spouse would be named as the primary beneficiary of that insurance. The secondary beneficiary either could be the children (so that if the insured spouse is the second to die, the death benefits would be paid directly to them) or could be the trust (so that if the insured spouse is the second to die, the death benefits would be paid to the trustee and distributed according to the trust for the children's benefit).
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Sample estate plan for a second marriage with children from prior marriages

This plan assumes that the couple's estate is not subject to estate tax. Also, for ease of explanation, in the example the husband dies before the wife.

Husband and wife create Pourover Wills and separate Revocable Trusts. Each trust names the trustmaker as the initial trustee and beneficiary, names the trustmaker's children as the final beneficiaries, and names a successor trustee. They each fund their separate trust with their own valuable property. The trusts give them the following lifetime benefits:

They each maintain complete control of the property in their separate trust
Their trust is private
No change occurs in their income tax reporting
If either spouse were to become incapacitated, the successor trustee of their trust would manage their finances for them

At the husband's death, his trust property is held in trust for the wife's support during the remainder of her life. At the wife's death, the husband's remaining trust property is distributed to his children from a prior marriage, and the wife's trust property is distributed to her children from a prior marriage. For each trust, depending on how the trust was designed, the trust property either is distributed directly to the children of that deceased spouse, or is held in trust to provide continued financial management for their benefit.

If either spouse has life insurance on his or her life, the insured spouse's trust would be named as the primary beneficiary of that insurance, so that if the insured spouse is the first to die, the death benefits would be paid to the trustee of the insured spouse's trust, who would hold those benefits for the surviving spouse's support during the remainder of his or her life, and then would distribute the remaining death benefits to the insured spouse's children according to the insured spouse's trust. The secondary beneficiary of life insurance on either spouse could be the insured spouse's children, so that if the insured spouse is the second to die and the trustee of the insured spouse's trust disclaims the benefits, the death benefits would be paid directly to the insured spouse's children.
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Sample estate plan for a married couple with a taxable estate

In this example, for ease of explanation, it is assumed that the husband dies before the wife.

Husband and wife create Pourover Wills and Separate Revocable Trusts. They fund their trusts with their valuable property. The trusts give each of them the following lifetime benefits:

They each maintain complete control of the property in their separate trust
Their trusts are private
No change occurs in their income tax reporting
If either husband or wife is incapacitated, the successor trustee of their trust will manage the trust property in that trust for the benefit of the incapacitated spouse

        At the husband's death, his trust divides into two trusts, called the "Marital" and "Family" trusts. The Marital trust is either controlled by the wife, or provides support for the remainder of her life. The death benefits of any retirement accounts owned by the husband can be paid either directly to the wife or to the trustee of the husband's trust.

        At the wife's death, the remaining property in the Marital and Family Trusts is combined with the wife's trust and is distributed to separate lifetime trusts created for the benefit of each child. The death benefits from any retirement accounts owned by the wife are paid to the trustee of her trust, so that the death benefits become part of the children's lifetime trusts.

        The benefits of the children's lifetime trusts include the following:

The child can be their own trustee
The child's inheritance is protected from creditors
The child's inheritance is not subject to estate tax
Full use is made of the Generation Skipping Transfer Tax (GSTT)exemption, greatly reducing tax on generations below each child

In addition to the foregoing planning, any life insurance on the life of husband or wife is owned by an irrevocable insurance trust, so that the death benefits are outside of the estates of the husband and wife.
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This document is designed to provide an accurate general overview with regard to the subject
matter covered. It is published with the understanding that the author and publisher are not
engaged in rendering legal, accounting, or other professional service. If legal advice or other
expert assistance is required, the services of a competent professional should be sought.