Frequently Asked Questions

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Showing 1–12 of 43 questions

Can a trustee distribute trust property immediately after a death?

A trustee generally should not distribute trust property immediately after a death. The trustee must first confirm their authority, identify and secure the property, review the trust’s instructions, address expenses and tax matters, and determine what each beneficiary should receive. In some cases, a carefully planned partial distribution may be appropriate, but only after the trustee understands the trust’s remaining obligations.

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Can Cardon Law help if another attorney prepared the trust?

Yes. A trustee or surviving spouse may choose Cardon Law to provide trust administration guidance even if another attorney or law firm prepared the trust. The trust is not tied to the drafting attorney. Cardon Law can review the documents, explain the trustee’s responsibilities, and help organize the administration.

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Can I create my own estate plan with AI or an online document service?

Yes. AI tools and online services can help you create your own estate plan, and some services offer attorney assistance. Before relying on the result, understand who will evaluate whether it fits your circumstances and what work remains after signing. If you proceed without professional review, you are also responsible for recognizing what the plan may have missed.

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Can my revocable trust own an LLC that holds rental property?

Yes. A revocable trust can generally own an LLC that holds rental property. The LLC remains the titled owner of the real estate, while the trust owns the membership interest in the LLC. This can help coordinate the property with your incapacity and succession plan, but it does not turn the revocable trust into an asset-protection trust.

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Can the way I own my assets undermine my estate plan?

Yes. A trust or will may state where you want property to go, but an asset’s title, account agreement, or beneficiary designation may create a different path. For example, survivorship ownership may transfer property directly to a co-owner. Adding a child as an account owner to help with bills may also give that child rights you did not intend.

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Can trust planning help reduce taxes when selling a business?

Potentially, yes.

For some founders and business owners, advance trust planning may create opportunities to reduce or defer certain taxes associated with a future business sale.

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Do trustees usually get paid?

Trustees may receive payment for their work, although some family members choose to serve without compensation. Professional trustees generally charge for their services. The trust’s terms should be checked first. Under Utah law, if the trust does not specify compensation, the trustee is entitled to an amount that is reasonable under the circumstances. Payment generally comes from trust assets.

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Does a revocable trust protect assets from lawsuits or creditors?

Generally, no. Revocable trusts are primarily designed for probate avoidance and continuity planning — not liability protection.

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Does a revocable trust protect rental property from lawsuits or creditors?

No. A revocable trust does not protect rental property from the Settlor’s creditors or create the liability separation provided by an LLC. If a revocable trust owns an LLC that holds rental property, the LLC and appropriate insurance provide the primary protection against property-related claims. The revocable trust serves a different purpose: incapacity planning, probate avoidance, and succession.

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How can trust planning help prepare for a business sale?

Preparing for a business sale often involves more than negotiating a purchase price. The structure of your ownership, entities, and estate plan can have a significant impact on taxes, asset protection, and how sale proceeds are ultimately transferred and managed.

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How do distributions work?

Trust distributions occur when a trustee transfers money or property to a beneficiary or allocates it to a continuing trust for that beneficiary. The trust controls when distributions may occur, what may be distributed, and how much discretion the trustee has. Even broad discretion must be exercised in good faith and consistently with the trustee’s fiduciary duties.

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How do I know whether my estate plan will actually do what I think it will?

Start by confirming that your signed documents reflect your wishes. Then check how your assets are titled and who is named on each beneficiary designation. An estate plan works through both its documents and the steps taken to put them into effect. Reviewing those pieces together can reveal an account, property, or business interest that would otherwise follow a different path.

Read the full answer: How do I know whether my estate plan will actually do what I think it will?