When setting up a trust with UTGL, one of the crucial steps is to name a beneficiary or beneficiaries. This decision is essential for ensuring that your trust assets are distributed according to your wishes after you pass away. In this article, we will discuss the importance of naming a beneficiary, who can be designated as one, and the information required by UTGL to execute the asset distribution when needed.

Why Do I Need to Provide a Beneficiary?

1. Clear distribution of assets: By naming a beneficiary, you provide clear instructions on how your assets should be divided and to whom they should be given after your death. This helps to avoid confusion and potential disputes among family members or loved ones.

2. Avoiding probate: When you name a beneficiary for your trust, the assets within the trust can be transferred directly to the beneficiary without going through the lengthy and often costly probate process. This ensures a quicker and more efficient distribution of your assets.

3. Maintaining control: Designating a beneficiary allows you to maintain control over your assets even after you are gone. You can specify how and when the assets will be distributed, providing you with peace of mind knowing that your wishes will be carried out.

Who Can Be a Beneficiary?

1. Individuals: You can name one or more individuals as beneficiaries of your trust. These can be family members, friends, or anyone else you choose. You can also specify the percentage of assets each beneficiary will receive.

2. Organizations: You can designate a charitable organization, non-profit, or other entity as a beneficiary of your trust. This is a great way to leave a legacy and support causes that are important to you.

3. Trusts: In some cases, you may wish to name another trust as the beneficiary of your trust. This can be useful for complex estate planning situations or to provide for the long-term care of a loved one with special needs.

4. Minors: If you wish to name a minor as a beneficiary, you will need to appoint a trustee to manage the assets until the child reaches a specified age. This ensures that the assets are used for the child's benefit and are not mismanaged.

Information Required by UTGL

To execute the asset distribution when needed, UTGL will require the following information about your beneficiaries:

1. Full name: Provide the complete legal name of each beneficiary to ensure accurate identification.

2. Contact numbers: Include the primary phone number and an alternate number (if available) for each beneficiary to facilitate communication when necessary.

3. Relationship: Specify the relationship between you and each beneficiary (e.g., spouse, child, friend, or organization) to help UTGL understand the nature of the connection and to ensure proper distribution of assets.

When setting up a trust with UTGL, it is essential to carefully consider who you will name as a beneficiary and to provide accurate and up-to-date information about each beneficiary. It is also crucial to review and update your beneficiary designations regularly, especially after significant life events such as marriages, divorces, births, or deaths.

In conclusion, providing a beneficiary and their essential information is a critical aspect of setting up a trust with UTGL. It ensures that your assets are distributed according to your wishes, avoids the probate process, and allows you to maintain control over your legacy. By understanding the importance of naming a beneficiary, who can be designated as one, and the information required by UTGL, you can make informed decisions when creating your trust.

*Be aware that each plan has different limitations on the number of beneficiaries allowed. Check the details below:

Lite: 0 beneficiaries

Standard: 1 beneficiary

Premium: 2 beneficiaries

Platinum: unlimited beneficiaries