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Revocable Living Trust – Benefits in Chandler, Arizona

5 Benefits of establishing a Living Trust in Arizona

5 Benefits of Establishing a Living Trust in Chandler AZ

Do you need help with establishing a revocable living trust in Arizona? Read our blog article to understand the benefits of it.

Death anxiety is common but only between 3% and 10% of people report feeling that they are more nervous about the thought of dying than others.

The fear of death makes people not want to talk about the inevitable, which can prevent them from setting up their families and estate after they are gone. However, living trusts exist for this reason.

In addition to setting up your family upon your death, there are many benefits to revocable living trusts. Keep reading to learn five of them.

1. Avoid Probate

When you establish a revocable living trust in Chandler, AZ, you can avoid probate. The probate process involves distributing an estate after an individual's death through court supervision.

Probate can be a costly and lengthy process depending on the individuals, assets, and estates. Probate can lead to a delay in distributions to beneficiaries and a cut some of what they inherit.

When you place an estate in a revocable living trust, you avoid probate because the successor trustee will distribute the assets based on the instructions left by you as the creator. A revocable trust as part of your estate plan is not just legal document, it is a powerful instrument to help your family achieve peace of mind and save time and money. Probate court can get messy also if heirs and beneficiaries decide to fight.

Trust administration means no court intervention and a faster distribution to heirs. Instead of waiting months and years for your assets to be distributed, it will only take a few weeks. The costs are also much lower.

If you own property in a different state, avoiding probate is especially important. The property would pass to the heir without being subject to probate in that state. Estate plan is specially important if you are a resident in Arizona but you have property in another state. Although the threshold for federal estate taxes is very high at the moment it is always subject to change.

2. Save Money

A revocable living trust can save money by avoiding probate expenses, but that is not all. Living trusts tend to hold up better than a will if someone comes forward to contest the asset distribution. A knowledgeable attorney will work with you to avoid probate and save your family members some headache. You do need to properly fund your trust with all real property, bank accounts, etc.

Estate contests are a pain emotionally and financially for beneficiaries to deal with. Legal costs can also get out of control fast and the estate assets will stay frozen until all the dispute is resolved.

However, the initial cost to find a living trust lawyer and create this document will be higher than if you create only a last will and testament. This is due to a revocable living trust being more complex and requiring more actions than a will.

You need to fund the trust with your assets and transfer property ownership to the trust. Despite saving in the long run, there are important fees to know about. Depending on your trust, creating it can include paying for:

  • Setup cost for the revocable living trust
  • Title transfer (beneficiary deeds) for real estate
  • Paying the trustee to administer the trust after you pass away

Although there isn't a difference between estate and income tax savings with a living trust, they can still provide savings for married couples that create joint living trusts.

A married couple without a living trust in the state of Arizona by have to go to probate twice. By having a marital trust properly funded you will not have to go to probate court twice, once for each spouse.

If you want to provide your heirs with the least amount of expenses when you are no longer here, living trusts are the way to go.

3. Protect Privacy

The probate process can be extremely public. With a living trust properly funded, you will not need probate . Yo will protect your privacy and the privacy of your heirs.

Living trusts are private documents between only the involved parties. The trust document will not become part of the public record. No one can search through public records and find out about the distribution of your estate.

Wills are public records. Everything in a will is not private and becomes public information.

4. Provide Peace of Mind

Living trust lawyers understand the ins and outs of these complex documents. When written correctly, a living trust becomes a clear plan to handle all of your assets and it is an important part of your estate planning.

Living trusts provide owners peace of mind because you won't unintentionally disinherit someone and you can protect your assets from certain individuals. Some special types of trust can be created also to protect your beneficiaries against future creditors. Trust can also help you protect your minor children. A Trustee that you trust is essential as part of marital trusts and solid estate plans.

If you need to provide care for a loved one with special needs, a living trust becomes a plan for that as well. Talk to an estate planning attorney today about all the possibilities of a living trust in Arizona.

Knowing that your estate will be handled exactly as you want it to can give you the certainty you need. A trust provides you with greater control over how your assets are distributed.

For example, if your beneficiary is a minor, you might wish that their assets be used for a specific occasion or purpose. You have the power to provide them with their funds when they reach a certain age or if they go to college.

Additionally, a living trust can help you plan for 'what ifs' in your lifetime, it's not only for providing you with peace of mind after you die. You can also leave assets for other beneficiaries.

If you become incapacitated or ill and cannot manage the trust yourself, you can provide instructions for these circumstances. You can decide to use the trust fund to pay for your care and your estate.

This means your chosen successor trustee will handle paying your bills, filing your taxes, and distributing trust funds. You can also use a professional trustee as part of your estate planning in case you don't have a person that you trust.

Your loved ones will be going through a hard time when you are gone, but a living trust has everything laid out for them to lighten the additional stress load.

5. Greater Flexibility

Revocable living trusts are flexible. If your circumstances, estate planning goals, or the people in your life change, you can make adjustments to your documents with a living trust attorney. Our legal team at our law firm can guide you.

In some cases, you can make changes to an irrevocable trust as well, but the process is a lot more complex.

Revocable trusts tend to be the preferred option because the individual that creates the trust has complete control over their assets.

In contrast, irrevocable trusts can only be changed with a court order or with approval from the beneficiaries listed in the trust.

Get a Living Trust in Chandler, AZ

There are more protections for individuals with a living trust compared to a will and testament. For these reasons and more, many people decide to create a living trust before they die.

With a living trust, you decide when and where your assets will go. A quality Chandler living trust attorney can help you create documents that provide you with peace of mind.

Ready to get started? Contact us today for a free consultation. You can call (480)565-8020, or click here to set up your free estate planning consultation.