Will vs Trust

[Utahman]

What is the name of your state (only U.S. law)? Utah

My mother-in-law has a will but most of her assets are in a trust. Does the Will trump the Trust or vice versa?

 

[anteater]

The trust document controls assets in the trust.

 

[Utahman]

Thanks. So what good is a will if 90% of the assets are in a trust?

 

[DAD10]

Including items in the will if any-the trust has beneficiaries that supersede the will for the purposes of said trust.

 

[anteater]

Thanks. So what good is a will if 90% of the assets are in a trust?

Well, for starters, what about the disposition of the 10% of assets that are not in the trust. And, after the trust is created and the initial asset transfer to the trust, people often acquire other assets and forget to title them in the name of the trust.

Often, in conjunction with creating a trust, what is known as a pourover will is also created. Such a will basically says, "Whatever I own that is not already in the trust gets dumped into the trust when I pass away."

 

[DAD10]

With that being said a trust is limited to everything within said trust.

 

[curb1]

Utahman,

You asked, "So what good is a will if 90% of the assets are in a trust?"

The will is to take care of the other 10% among other things. Many revocable trusts have an adjacent will.

 

[Utahman]

Thanks to everyone for your replies. One other question. My brother-in-law borrowed money from his father (now deseased) and signed a piece of paper that he would pay it back to the estate or have it deducted from his inheritance. Would it be easier for him to avoid this repayment or deduction if most all assets are held in a trust or executed by the will?

 

[anteater]

Other than having a ready-made legal forum for enforcement, if necessary, when a probate estate is opened, it should not make a difference. The executor or the trustee or one of the interested parties will have to bring the matter before the court if the borrower attempts to avoid repayment.