TRUST & ESTATE PLANNING IN ARIZONA

Navigating the intricacies of estate planning requires a delicate balance of legal expertise and personal understanding. At Obsidian Ridge Law, we prioritize your peace of mind, ensuring that your assets and loved ones are protected for the future.

WHAT IS A TRUST

There are many different types of trusts, but the most common is the revocable living trust. Unlike a will, which only takes effect upon death, a revocable living trust is effective immediately. It serves you during your lifetime, any potential period of disability, and even after death. When properly funded, a trust bypasses the probate court, ensuring your affairs remain private.

Legally, a revocable living trust establishes a formal relationship where you, the trustmaker, appoint an individual (trustee) to manage your accounts and property for your benefit and the benefit of other beneficiaries. Its "living" nature means it's operational during your lifetime and can be modified as needed.

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Key Features of a Trust Include:

  • Specifies how property is divided and identifies beneficiaries

  • Avoids probate court when fully funded

  • Appoints a successor trustee for posthumous affairs and a trustee for active management during incapacitation

  • Continuous property and account management

  • Incorporates estate and income tax planning

  • Provides asset protection for heirs/beneficiaries

  • Flexibility to amend during the trust maker’s lifetime

  • Costs more initially than a simple will but may offer more value in the long run

However, it's crucial to note that a trust doesn't designate guardians for minors or name an executor/personal representative. This might be unnecessary if the trust is fully funded and beneficiary designations are in place.

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WHY HIRE A TRUST ATTORNEY IN ARIZONA?

Arizona's legal landscape presents unique challenges and opportunities in trust and estate planning. Engaging a professional trust attorney ensures that your trust is not only legally sound but also tailored to Arizona's specific regulations. With the right trust lawyer, you can optimize tax benefits, ensure asset protection, and guarantee that your trust aligns with your wishes.

FREQUENTLY ASKED QUESTIONS

WHAT IS THE DIFFERENCE BETWEEN A TRUST AND A WILL?

While both are estate planning tools, a will takes effect after death, whereas a trust is effective immediately and operates during the trustmaker's lifetime and after.

HOW DOES A REVOCABLE TRUST DIFFER FROM AN IRRECOVABLE TRUST?

A revocable trust, often referred to as a living trust, can be altered, amended, or revoked by the trustmaker during their lifetime. In contrast, an irrevocable trust, once established, generally cannot be changed or terminated without the consent of the beneficiaries. Each type has its own advantages, depending on the goals of the trustmaker.

CAN ASSETS IN A TRUST BE ACCESSED BY CREDITORS?

It depends on the type of trust. Assets in a revocable trust are typically accessible to the trustmaker's creditors because the trustmaker retains control over the assets. However, irrevocable trusts, especially those designed for asset protection, can offer more robust protection against creditors, as the trustmaker relinquishes control over the transferred assets.

DO ALL TRUSTS AVOID
PROBATE?

Not all trusts avoid probate, but one of the primary benefits of a revocable living trust is that it can help assets bypass the probate process, allowing for a quicker and often more private distribution to beneficiaries. Assets outside the trust, or not properly titled in the trust's name, might still go through probate.

WHAT HAPPENS TO A TRUST UPON THE DEATH OF THE TRUSTMAKER?

For revocable trusts, upon the death of the trustmaker, the trust typically becomes irrevocable. The named successor trustee then steps in to manage or distribute the trust assets according to the trust's terms. For irrevocable trusts, the trust continues to operate based on its established terms, regardless of the trustmaker's death.

DO TRUSTS HAVE TAX ADVANTAGES?

Trusts can offer various tax advantages, depending on their structure and purpose. Some trusts can help minimize estate taxes, while others can distribute income in a way that is tax-efficient for beneficiaries. It's essential to consult with a tax professional or estate planning attorney to understand the specific tax implications of any trust.

READY TO SECURE YOUR FUTURE WITH A TRUST TAILORED TO YOUR NEEDS?

Book a consultation with Obsidian Ridge Law, your trusted trust attorney in Arizona, today and experience the difference of personalized, expert advice.