What Are the Benefits of Having a Living Trust in Arizona?
Are you looking for assistance with developing a living trust in Arizona? Here are some of the benefits that come with this type of a trust.
Would it surprise you that only 33% of Americans have any estate planning in place? While most would likely recognize the importance of planning for the future and making arrangements for a loved one, they haven't done it yet. Understanding the benefits of creating a living trust in Arizona will help to make sure your wishes are followed and your loved ones and assets are protected.
Are you concerned about what will happen to your children or pets, or possessions if you pass while you're residing in Arizona? Do you want to make sure your wishes are followed accordingly?
Read our blog article to learn more about a living trust and the many benefits having one can provide for you and your loved ones.
What Is a Living Trust?
A living trust is a legal document that becomes a key part of your estate planning. The living trust, sometimes called a revocable living trust, is created while you're alive.
The intention is that the trust contains your assets while you're alive and is controlled by the trustee. The goal is that the living trust makes for easy transfer of assets to beneficiaries when you eventually die.
This allows your beneficiaries to avoid the costly probate process. It also gives you more control of how your assets are used when you're alive and after you're gone.
Benefits of an Arizona Living Trust
As you consider your estate planning and the benefits of creating a living trust, you might wonder about the advantages of doing this planning. Let's take a closer look at the benefits of creating a living trust.
Protect Your Business
If you're a business owner, you've probably given some thought to what happens to your business when you're not around anymore to run it.
A living trust allows you to spell out exactly how you want your business handled once you're gone. You can place the business in the trust and designate how the business will proceed once you are gone.
Protect Your Assets
One thing you may know about creating a trust is the tax advantages that come with it.
You can transfer your assets to a trust. It doesn't mean you lose control of them. You can still act as the trustee while alive and make decisions about the handling of those assets.
If you ever run into financial troubles, your assets remain protected as they are now part of the trust. That only applies for some specific types of Trust.
Confidentiality
Many people believe simply having a will is enough to designate where their belongings go once they're gone.
One thing many don't realize is that a will is a matter of public record. This means anyone can see it and learn about your affairs once you're gone.
The advantage to a living trust is that it's confidential. The information contained in the living trust is part of a legal document that remains confidential, unlike a will that will be part of the probate process. A probate process is a public process.
Estate Planning
A living trust becomes an important part of estate planning. You might already know where you want your assets to go. But you might also wish to have them to be for a specific purpose.
Perhaps you have money set aside for future education for your children or grandchildren. You may have a child with special needs and want money set aside for their long-term needs.
The living trust allows you to designate not only where your assets go but also how they will be used. If properly created it can also protect your assets for your children, that way a bad marriage or other types of law suits will not be able to claim your assets. That specific type of living trust is usually referred to as a Dynasty Trust.
Avoids Probate
Probate is a legal process the courts use to determine the authenticity of a last will and testament or to handle the affairs of the deceased if there is no will.
Probate can be time-consuming and expensive for the heirs of an estate.
Creating a living trust helps to avoid the hassles and expense that the probate process creates. To avoid probate the trust do need to be properly funded.
Types of Living Trusts
The good news about creating a living trust as part of your estate planning is that there are many different kinds of trusts, depending on your needs.
Many people feel nervous about transferring assets to a trust. A living trust means you can maintain control of those assets even inside the trust. You can continue to make changes until you're no longer able or aren't living anymore.
Let's take a look at some other specialized types of trusts you can use based on your needs.
Charitable Trust
If you've spent much of your life supporting a particular charitable organization, you might want that to continue after you're gone.
You can use some of your assets and have it set up to continue to support your charitable preferences.
Education Trust
An education trust, as the name implies, can be established to support your education goals. This might mean you want a scholarship delivered in the name of the trust each year.
It could also mean the assets are set aside for the education of your heirs into the future.
Special Needs Trust
A special needs trust can be set up to care for an heir who has special needs and may need long-term support.
It's important to note that this type of trust can be set up in a way that still allows the special needs heir to receive any government support they might be eligible for.
Spendthrift Trust
Do you have an heir who leaves you concerned about their ability to handle money once they get it? Many families have that person who isn't as responsible with money as they should be.
A spendthrift trust allows this person to inherit assets, while you still have some control over how much and how the assets are used, even after you're gone.
Steps to Creating a Living Trust In Arizona
Every state has varying laws related to creating a trust. You will want to work with an estate planning attorney who understands the Arizona living trust rules.
The estate planning lawyer can help you navigate the Arizona living trust law to create the legal portfolio you want for your estate.
You will need to evaluate your assets and decide on a trustee to handle the trust once you no longer are able.
Your estate attorney can help you arrange what assets should go to the trust so that it's properly and legally funded.
Arrange Your Living Trust in Arizona
If you're considering a living trust in Arizona, it's important to work with a knowledgeable attorney who is familiar with state laws and requirements. You can them take advantage of all benefits that a living trust offers to you and your family.
Do you have questions about creating a living trust? Let Citadel Law Firm help you organize your estate and create a living trust specific to your needs. Our estate planning attorneys in Chandler, AZ will be pleased to help. Contact us today to set up your free consultation, click here or call (480)565-8020.