Living Trust vs Living Will in Arizona

A recent survey found that 67% of Americans do not have an estate plan in place. That means that only 33% of Americans are prepared for this time in life.

If you are working on estate planning, you may have considered a living will versus living trust. It is important to understand the legal lingo so that you can choose the right option. Our estate planning law firm will be pleased to help you.

A lot of legal terms during estate planning sound very similar. But all of these terms have different details that have an impact on your plan. It is common to also make confusion between living will and living trust, as well as living will and last will and testament.

Many people ask is living trust better than will? Keep reading to find out the difference between a living trust in Arizona vs living will. Wills and trusts are both important estate planning tools that your estate planning lawyer may use to address some of your estate planning needs.

What Is a Living Trust?

A Living Trust is also know as a revocable living trust or a revocable trust. When you are planning your estate, you need to consider every variable. One option you have is creating a revocable living trust that transfers ownership of your assets to a revocable trust.

These assets are transferred to a trust account that will be taking care of by the trustee of the Arizona living trust. They will be responsible for the managing the trust assets.

These assets can be distributed upon your death or at any time you prefer. You are the grantor since you are signing the trust agreement to create your living trust.

The document will usually include details about the purpose of the trust and what it holds. It will also describe the responsibilities of the trustee and who the beneficiaries are.

To create a living trust, you need to transfer legal ownership of your assets to the trust, like bank accounts and real property. If you want a revocable living trust, you can assign yourself as the trustee first, have your surviving spouse as the successor trustee, and someone else after your death or if you became incapacitated.

If you don't want your revocable living trust to stay as revocable you can make it irrevocable after your death or in case you became incapacitated. An irrevocable trust can't be changed by the successor trustee. An estate planning attorney that works with revocable trusts can help you with it.

Personal property is usually assigned to your trust using a will or pour over will that is created at the same time as your trust is created.

Here are some pros and cons to consider about this trust before making your decision.

Pros

One of the main advantages of a living trust is that it skips probate court. This allows your beneficiaries to access the assets at the time of your death. The probate process is not only more expensive than trust administration, it is also stressful. You want to make sure your loved ones are not subject to the probate process.

If the trust is irrevocable, it can also protect your assets from creditors for your future beneficiaries. This ensures that your beneficiaries get exactly what you want them to. That is usually called an asset protection trust or a dynasty trust.

A living trust is also a good option for other kinds of situations. For instance, you may become unable to manage your assets yourself. This could be due to a physical or a mental issue where you need somebody else to act as the successor trustee, your living trust in Arizona should allow for that.

A living trust in Arizona is also not public record, the probate process is a matter of public record. Living trusts help to protect the privacy of your family and give you complete control of your property. Estate plans are important to make sure your assets and property go to your loved ones. Living trusts achieve that by having trust beneficiaries. Your don't one your children's inheritance with a first spouse to end up at the wrong hands.

Cons

A Arizona living trust is not something you create once and your forget about it. Estate planning attorneys usually recommend reviewing your trust every 3 to 5 years.

You need to update it to includes new assets you acquire over time or when your circumstances change as you age, or have a child, or you get a divorce. Although estate taxes are not an issue at the moment they may change overtime.

Hiring an estate planning lawyer is important to ensure everything is done correctly. If you create an irrevocable trust, you will most likely not be able to change it after creating it, although some exclusions may apply.

What Is a Living Will?

A living will is a legal document that allows individuals to specify their healthcare preferences and decisions in advance, particularly in situations where they become unable to communicate or make decisions for themselves.

A lot of people get confused between a living will and a last will and testament.

A last will and testament is a legal document that outlines an individual's wishes for the distribution of their assets and the handling of their affairs after their death. A Last will and testament alone do not avoid probate, you will be subject to probate proceedings following Arizona law.

A Last will and testament is specially important for anyone that has minor children. Although you should consider creating a trust for your children a last will will tell the court who will be their guardians in case you are no longer with us.

A Living will specifies the kind of care the individual wants if they become ill. You can create this well if you worry that you will become unable to communicate your wishes in the future due to an illness.

A living trust vs living will is very different when it comes to what you are creating. A living will expresses issues related to your health care, not your assets or property. To address assets you need to either create a will or a trust document.

A hospital will use your living will to address end of life decisions. For instance, you could include whether you do or do not want life-sustaining treatment.

This helps to take the pressure off your loved ones in the case of a medical emergency. It also ensures that your rights are upheld, and your wishes are followed through on.

Pros

A living will is perfect for people who have health concerns. For instance, you may have cancer and want specific treatments in the case of an emergency.

You may become unable to communicate what you want to your physicians or family. Having this document helps the process of getting medical care go smoother. A living will is usually created together with health care power of attorney.

The hospital doesn't have to wait for permission or for your family to decide. It also ensures that your family will not disagree over the kind of treatment you will get.

Cons

Are you wondering what is a living will? This is a very common question since people don't understand this document.

It is important to create this will before you believe you will need it. If you wait too long, it may not apply if your mental capacity has been diminished.

In this case, a doctor could determine that the document is not valid. There is also still a chance that your wishes may not be upheld.

Family can argue against it to try to change the care you will receive. That is why it is so important to make sure it is created correctly with the help of an attorney.

Living Trust vs Living Will: What You Need to Know

If you are working on estate planning, you may be wondering what is a living trust. Understanding a living trust vs living will is very important. Talk to your Arizona estate planning attorney to find out exactly what wills vs living trusts and which is the best option for you!

A living trust is more focused on how your assets will be distributed. A living will is focused on the type of medical care you will receive at your end of life stage.

Are you interested in discussing your estate planning needs in Arizona? Contact us today at Citadel Law Firm to book a free estate planning consultation, click here. You can also call (480) 565-8020 to schedule your free consultation, we will be pleased to help. call us today if you need a living trust in Phoenix, AZ. Our living trusts USA will be design for your family and your assets.

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