Arizona Living Trusts
What is a living trust? A family trust, also known as an inter vivos family trust, is an arrangement that designates a “trustee” to hold legal title of property for another person or beneficiary. When creating a living trust, you can designate yourself as the trustee in order to keep full control of the property placed in trust. The living trust is just what it sounds like: a trust you put in place when you are still alive instead of one that is created according to the terms of your Will upon your death. When the topic of a living trust comes up, the most common response from most clients is, “But I don’t have enough money to need a trust.” This brings to light a major misconception about estate planning. Equating the need for legal documentation/protection to the amount of money and assets you have leads individuals with the wrong conclusions about estate planning.
Individuals who believe that their modest estate means that they have no need of estate planning couldn’t be more mistaken. While it is true that a substantial estate necessitates a different type of trust (Revocable Trust) in order to lower applicable estate taxes; the primary reason to put a Living Trust in place is to avoid probate.
Arizona Living Trust | Do You Need a Living Trust in Arizona
Spares your family the costs and delays associated with probate court proceedings.
Arizona uses the Uniform Probate Code; simplifying the probate process.
The simplified probate process is available for any estates valued under $50,000.
If your estate is under $50,000 when you pass away, the probate process is fairly inexpensive. This makes it unnecessary to worry about trying to avoid the probate process for financial reasons.
Putting a living trust in place doesn’t negate the need for a Will. A Will provides a necessary backup plan for property not included in the trust.
The benefits of a living trust vary depending upon your specific situation. Talk to an experienced estate planning attorney regarding the needs of your estate that can provide for your family upon the untimely event of your death. If you are not positive whether or not the living trust is the option that best suits your situation, you should discuss your situation in detail with an experienced estate planning lawyer. It can be difficult to accommodate the multitude of variables when attempting to keep yourself and your family covered by appropriately planning for the needs of your estate.