Estate Planning Resource

If you've been researching estate planning, you've probably heard the term living trust.

Friends may have told you that you need one. You may have seen advertisements

claiming that everyone should have a trust. Or perhaps you recently read our article, 

"Do I Need a Trust in Utah", and now you're wondering exactly what a living trust is and how it works.

A living trust is one of the most common estate planning tools used by Utah families. It

can help manage your assets during your lifetime, provide a plan if you become unable

to manage your affairs, and simplify the transfer of property after your death. However,

many people misunderstand what a trust actually does.

In this guide, we'll explain living trusts in plain English so you can decide whether one

may be right for your family. If at any time you’d like to discuss whether a Living Trust is

appropriate for you and your family, our Integrity Law Attorneys would be happy to

explain and answer any will, trust or estate planning question in person during a free

consultation. Let’s begin!

What Is a Living Trust?

A living trust is a legal document that holds and manages your assets during your

lifetime and directs how those assets should be managed after your death.

Unlike a will, which generally takes effect after you die, a living trust is created and

becomes effective while you are still alive.

The person who creates the trust is called the grantor (sometimes called the trustor or

settlor).

Most people also serve as their own trustee, meaning they continue to manage their

own money and property just as they always have.

In other words, Creating a living trust does not mean giving up control of your

assets. You were the one that created the trust, you’ll be the one running it and you’ll be

the one that can modify it, get rid of it or have it help you and your family

Why Is It Called a "Living" Trust?

The word living simply means the trust is created while you're alive.

This distinguishes it from a testamentary trust, which is created through a will and

generally comes into existence after death.

When most people say "living trust," they are referring to a revocable living trust.

How Does a Living Trust Work?

Think of your trust as a secure fence. Everything you put inside the fence now avoids

probate and transfers easily to loved ones.

Instead of owning certain assets in your individual name, you transfer ownership to your

trust.

For example...

Instead of your home's deed saying: John and Jane Smith

it may read: John and Jane Smith, Trustees of the Smith Family Revocable Living

Trust

Even though the title changes… you still: live in your home, you can sell your home, you

can refinance your mortgage, even get a reverse mortgage or home equity line of credit.

For most families, very little changes in daily life. But the benefits of avoiding court,

making things easy for your family when you pass are invaluable.

What Is a Revocable Living Trust?

A revocable living trust allows you to:

• Change the trust
• Add or remove assets
• Change beneficiaries
• Change your successor trustee
• Revoke the trust entirely

As long as you have legal capacity, you remain in control.

We'll discuss revocable trusts in greater detail in another article.

Why Do People Create Living Trusts?

Every family has different goals, but some of the most common reasons include:

1. To Help Avoid Probate

One of the primary reasons people establish a living trust is to help avoid probate for

assets that have been properly transferred into the trust.

Probate is the court-supervised process of administering a deceased person's estate.

While probate isn't always lengthy or expensive in Utah, many families prefer to

minimize court involvement whenever possible. It’s almost always preferred to handle

concerns as a family or in a conference room over a courtroom. Courts have judges

who are trained attorneys, and attorneys who are trained as attorneys, so they typically

expect to be compensated as attorneys, which adds up and can get expensive quickly.

If you'd like to learn more about probate, read our article "What Is Probate in Utah?" (Coming soon)

2. To Plan for Incapacity

Estate planning isn't only about death.

If you become unable to manage your finances because of illness, injury, or age-related

incapacity, your successor trustee can often step in and manage trust assets according

to your instructions.

This can help provide continuity without requiring a court-appointed conservator for

those assets.

3. To Keep Your Estate Organized

A trust provides one central document explaining:

• Who manages your assets
• Who receives your property
• When beneficiaries receive their inheritance
• How your wishes should be carried out

Many families appreciate having a clear plan in place.

What Can Be Placed into a Living Trust?

Many different assets can be transferred into a trust, including:

Real Estate

• Primary residence
• Vacation homes
• Rental property
• Land

Financial Accounts

• Checking accounts
• Savings accounts
• Brokerage accounts

Business Interests

• LLC interests
• Closely held businesses

Personal Property

• Valuable collections
• Household furnishings
• Jewelry
• Vehicles

Some assets—such as retirement accounts—often require separate planning and

beneficiary designations rather than changing ownership. Our Integrity Law attorneys

can help determine the best approach specific to your family needs.

Does Everyone Need a Living Trust?

No.

Every family's situation is different.

A trust may be worth considering if you:

• Own a home
• Own multiple properties
• Have children
• Own a business
• Want to simplify the administration of your estate
• Want a plan in place if you become incapacitated
• Value privacy

For some individuals, a will may be sufficient.

If you're still deciding whether a trust is appropriate, we recommend reading our article:

Do I Need a Trust in Utah?

Common Misconceptions About Living Trusts

"Only wealthy people need trusts."

Not true.

Many middle-income Utah families create trusts because they want an organized estate

plan, a smoother transition for loved ones, avoid probate and keep their estate private.

"I lose control of my assets."

No.

Most people serve as their own trustee and continue managing everything themselves.

"A trust eliminates all taxes."

Not necessarily.

A standard revocable living trust does not automatically reduce estate or income taxes.

Tax planning depends on your individual circumstances. Passing Real Property to loved

ones after death results in a stepped-up tax basis and can avoid capital gains. We

advise you to speak with a professional tax planner about your individual details.

"Once I sign my trust, I'm finished."

Not quite.

Creating the trust is only the first step. The trust must also be funded, meaning appropriate 

assets are transferred into it.

We'll explain this process in our article:

"How to Fund a Living Trust in Utah." (Coming Soon)

Common Mistakes

Some of the most common mistakes include:

• Creating a trust but never funding it
• Forgetting to update the trust after major life events
• Choosing the wrong successor trustee
• Assuming a trust replaces every estate planning document
• Failing to review beneficiary designations
• 
  

Many assume having a will, trust or an estate plan is sufficient. However, a

complete and comprehensive estate plan often includes:

• Living Trust
• Pour-Over Will
• Durable Financial Power of Attorney
• Utah Advanced Healthcare Directive
• Declaration of Trust
• Certification of Trust
• Assignment of Personal Property
• Instructions
• A letter that describes each paragraph in layman’s terms, so you can understand

all the documents you have paid for, as well as what you have and when you’d

typically use it.

• A table of contents for your Trust that highlights all of the many legal rights

protected in your Trust. (Short trusts may not properly protect you)

• Attorneys that are able to be contacted via telephone at any time to answer any

questions that you might have regarding your documents

Frequently Asked Questions

Is a living trust the same as a will?

No.

A will and a trust serve different purposes, and many estate plans include both.

Can I change my trust later?

Yes.

If it's a revocable living trust, you can generally amend or revoke it while you have legal

capacity.

Does a living trust avoid probate?

Assets that have been properly transferred into the trust often avoid probate. However,

the trust must be properly funded.

Is a living trust public?

Generally, no.

Unlike probate proceedings, which become part of the public court record, a living trust

is typically a private document.

Can I be my own trustee?

Yes.

Most people serve as the initial trustee of their own revocable living trust.

About the Author

Bryan Cowley, Esq.

Estate Planning Attorney | Founder of Integrity Law

Bryan Cowley is the founder of Integrity Law in

Tooele, Utah, His practice focuses exclusively on

estate planning, including revocable living trusts, wills,

powers of attorney, healthcare directives, and trust

administration.

Bryan has the heart of an educator and wants his

clients to understand and not be overwhelmed.

Through articles like this, he is committed to

educating Utah families on wills, trusts and estate

planning so they can make informed decisions about

protecting what matters most.

📞 (435) 277-0529

 📍7 S Main Street Suite 316 Tooele, Utah

Schedule a Consultation →

Article Information

Last Updated: August 7, 2026

Reviewed By: Bryan Cowley, Utah Estate Planning

Attorney

Practice Areas:

• Revocable Living Trusts
• Wills
• Powers of Attorney
• Trust Administration