Below is some basic information about trusts in the state of Arizona. For more information or for answers to specific questions, call an experienced Estate Planning Attorney in Phoenix AZ today.
A trust is a legal relationship that allows a third party to hold another party’s assets on behalf of another. The person who creates the trust is known as the settlor or grantor (you/owner of the asset(s)), and the party who takes legal title of the trust assets is called the trustee. The party or parties from whom the assets are held are known as the beneficiary or beneficiaries. Trusts are very flexible and can be carefully tailored to meet very specific needs. Some of the more common kinds of trusts that are often utilized are detailed below.
A living trust is simply a trust that is formed while the grantor is still alive. In many cases, people choose to act as the trustee of their own living trust (often to retain control of the assets while they are alive) and to help reduce estate taxes.
As the name implies, an irrevocable trust is one that cannot be modified by the person who created the trust. On the other hand in revocable trusts, the grantor can modify the terms of the trust or take the property from the trust at any time. While both kinds of trusts can be used to protect assets, avoid probate, and create certain tax benefits, irrevocable trusts generally confer more significant benefits (such as protecting property from creditors/liability) but are not appropriate for everyone.
There is no Arizona law that requires individuals to hire an attorney to create a valid trust. That being said, it is generally advisable to do so. If a trust agreement is improperly drafted, it can result in the trust failing, potentially leaving the trust assets open to collection attempts from creditors. In addition, trusts can be created to fulfill a very specific purpose and may even be used to induce certain behavior from future generations. An experienced lawyer can help you identify your financial and estate planning goals and create a trust that is carefully drafted to help meet these goals in the most effective way possible.
Trusts can be an effective estate planning tool that can protect assets well into the future and avoid the costs associated with probate. There are significant complexities associated with creating an effective and enforceable trust, however, making it important for anyone considering forming one to talk to an experienced lawyer as soon as possible.
Estate Planning Law Firm in Phoenix
CityScape, 1 E Washington St #500,
Phoenix, AZ 85004
Phoenix Estate Planning Lawyer is located on 1013 S Stapley Dr, Mesa, Arizona. From Phoenix Sky Harbor International Airport (PHX), take S 41st to E Sky Harbor Blvd. Next, take AZ-202/AZ-202Loop E, AZ-101 Loop S and US-60 E to S Stapley Dr in Mesa. Take Exit 181 from US-60 E. Use the left 2 lanes to turn left onto S Stapley Dr and our office will be on the right in about 1 mile.
We’re open 9AM – 5PM Monday – Friday and we are closed on Saturday and Sunday.
For additional questions you can call us at (480) 999-2321.
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