Types of Trusts in Arizona
It is important to understand the types of trusts in Arizona. An Arizona irrevocable trust cannot be changed. This means that the revocable living trust is more flexible as it allows for changes throughout the life of the trust. Potential changes could include: beneficiaries, terms, trustee, etc.
The Arizona revocable living trust can be changed or canceled completely up until the date of death. At the time of death, the revocable living trust becomes an irrevocable trust.
The irrevocable trust can only be changed if there is a trust protector in place. This is a concept that is fairly new and many irrevocable trusts do not have one. A trust protector in compliance with the Internal Revenue Code 672(c) is allowed to change the trustee for the trust. Even with a trust protector, the ability to change an irrevocable trust can be limited.