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Domestic US Trusts

Utah Self Settled Trust

Utah allows an individual to create an irrevocable trust that is generally not reachable by creditors. This self-settled asset protection trust faces the same problems that every other domestic faces, federal law and the Full Faith and Credit Clause, the bankruptcy code and the challenges subject to prior debt and creditor attack.  

The Uniform Trust Code provides rules and procedures consistent from state to state, reducing the need for individuals to deal with different laws as they move or set up trusts in different states.

Utah Dynasty Trusts allow assets to remain within the trust for 1,000 years unlike some other states with much shorter terms. 

Under Utah law, trusts are not registered with the state, no public filings are required, and accountings can be waived. If a court proceeding is needed, the court may seal the record so neither the trust instrument nor the court proceeding becomes a matter of public record.

Utah has adopted the Prudent Investor Rule, a legal doctrine that provides guidance to investment advisors regarding the standards for managing an investment portfolio.

Utah law permits the grantor to separate trust investment management fiduciary responsibilities from a trustee's administrative and safekeeping fiduciary functions. This is not possible in Alaska.  In Utah, the grantor is able to appoint an investment advisor independent from the trustee, with separate and exclusive fiduciary authority and responsibility for managing the trust's assets.

For new trusts or trusts new to Utah, Utah does not impose state income tax on any accumulated trust income, except Utah source income. Distributions of trust income will be taxed by the state where the recipient beneficiary resides.