Estate Administration Lawyer Chandler, AZ
Estate planning law can be complex and complicated, often adding more stress to the already anxiety-inducing process of determining how you want your property to be distributed after you have passed away. At Citadel Law Firm PLLC, our estate planning lawyers have extensive legal experience helping clients with all aspects of planning for the future. In addition, our Chandler, Arizona estate administration lawyers frequently assist those tasked with managing the estates left behind by deceased loved ones.
The following are some of the most common legal terms that many clients may need to become familiar with when navigating the process of determining how they want their family taken care of after they are gone. Please note that if you have any questions about these terms, you can connect with an experienced Chandler, AZ estate administration lawyer at any time.
- Trust: A trust is a legal arrangement where the ownership of assets is transferred to a trustee who will manage the assets and distribute them to beneficiaries based on the terms and instructions of the trust.
- Grantor: The person who sets up the trust. Also referred to as the trustor or settlor of the trust.
- Trustee: The person who will hold legal title of the trust and be responsible for managing the assets and distributing them in accordance with the instructions left by the Grantor.
- Successor Trustee: If the original trustee is unable to perform their fiduciary duties, the successor trustee will take over management of the trust.
- Trust Property: Also referred to as trust estate. These are the assets which are placed into the trust. These assets can include bank accounts, brokerage accounts, real estate, stocks, bonds, partnership interests, and other types of legal and financial interests. If you have any concerns about managing trust property, a Chandler, AZ estate administration lawyer can help.
- Irrevocable Trust: This is a trust which cannot be amended, modified, or revoked once it has been established. There are often tax benefits to irrevocable trusts since the property is no longer in the grantor’s taxable estate and will not be subject to any estate tax when they die.
- Revocable Living Trust: This type of trust becomes effective immediately upon being set up. The trust can be amended, modified, or revoked at any time while the grantor is still alive. The benefits of a revocable living trust are that it avoids probate for the assets placed into the trust, provides management of funds should the grantor become incapacitated without the need for appointing a conservator or guardian, can specifically address any family needs or circumstances, and address the final distribution of the grantor’s estate to his or her heirs.
- Special Needs Trust: This is a type of trust that can be set up for a disabled individual in order to provide financial support for them without affecting any government assistance program the disabled individual is eligible to receive.
- Gift Trust: This is an irrevocable trust which is set up to hold gifts to the beneficiaries upon the grantor’s death. The trust is setup in such a way that these “gifts” never become part of the taxable estate of the grantor. This is also legally referred to as a crummey trust.
- Insurance Trust: An insurance trust is an irrevocable trust that is set up to hold the life insurance policy the grantor has on themselves. The policy is placed in the trust so that any proceeds from policies that are paid out when the grantor dies go directly to the beneficiaries and not included in the grantor’s taxable estate.
As you can see, the very nature of estate planning is complex. Any number of legal resources exist in order to specifically and effectively address the needs of any individual’s unique situation. Please consider connecting with a Chandler, AZ estate administration lawyer today so that you can either create or manage an estate plan efficiently and effectively.